Janowski: What went wrong with BloombergBlack

Aug 1, 2013 @ 12:00 am

Runtime: 2:12

Davis Janowski takes a closer look at what might have led to the early demise of Bloomberg's digital wealth management tool, BloombergBlack.

Video Transcript

There's been a bit of an interesting ripple in the do-it-yourself investing and technology front. A recently announced product coming out of Bloomberg L.P. called BloombergBlack was end of [unk] quite suddenly without much fanfare in weeks past. When Bloomberg said to pull the plug, they had originally announced that just this past April they had more than 40 employees working on the project and all at once it was decided to pull the plug, BloombergBlack would've competed in some senses with a few other start-ups like wellfront.com, personalcapital.com, FutureAdvisor and about a half dozen other well-known, well, not so well-known, but growing start-ups in this particular area. Part of the shtick with BloombergBlack was that they would provide actionable advice to folks that had accounts largely in the form of online either low cost brokers, say eTrade or Schwab and help them decide what to actually invest in as well as some financial planning tools and other research. And it seemed they natural placed for Bloomberg to approach the market though many rumors are abounding as to why they pulled the plug. Bloomberg itself was- has no comment on that other than a release they briefly put out saying it just did not seem to make business sense for them. One of many other rumors is that based on the spying scandal that erupted a month or so ago in which some Bloomberg reporters were being able to tell where sources were looking on their Bloomberg terminals that this could further disenfranchise some intermediary users of their service for which the bulk of revenue coming out of Bloomberg depends and hence may have pulled the plug in order to not further upset those customers.

0
Comments

What do you think?

InvestmentNews Video Channels