Introduction
Thomson Reuters, a formidable global information and news provider, stands as a towering presence in the world of financial, media, and corporate markets. In this article, we delve into the rich history, evolution, and key takeaways that have shaped Thomson Reuters into the industry leader it is today.
Inception and Early Growth
Founded in London, England, in 1851 by Paul Julius Reuter, the company initially operated as Reuter's Telegram Company. Reuter's pioneering vision focused on swiftly delivering business news using telegraph and even carrier pigeons. The groundbreaking contract signed with the London Stock Exchange (LSE) marked the company's journey to international prominence. This contract allowed Reuter's to provide information on Paris stock exchange prices in exchange for conveying London prices to overseas destinations, creating a global information network that would pave the way for future achievements.
International Reach and Innovation
The company's first newspaper client, the London Morning Advertiser, set the stage for numerous others to follow. Reuter's rapidly gained recognition for its international reach and was even recognized as the first European newsgroup to break the news of U.S. President Abraham Lincoln's assassination in 1865. As the mid-20th century approached, Reuter's had firmly established itself as a major international news agency.
The Reuters Dealing System Revolution
By the mid-1970s, Reuter's financial information terminals were ubiquitous in banks and financial institutions across the globe. Their revolutionary Reuters Dealing System, introduced in 1992, eliminated the need for traditional brokers, providing subscribers with the ability to conduct financial transactions directly. In 1999, the Reuters Dealing 3000 system further transformed trading by introducing live market data, automated matching of trades, secure messaging, and data analysis with Microsoft Excel functionality. It facilitated the trading of foreign exchange, stocks, bonds, options, and commodities.
The Dealing 3000 system was succeeded by the Thomson Reuters Eikon system in 2013, now known as Refinitiv Eikon. This sophisticated software, compatible with both desktop and mobile devices, boasts over 190,000 users, commanding 23 percent of the market share. While the Bloomberg Terminal holds the number one position with 33 percent market share, the Thomson Reuters Eikon remains a strong and influential player in the financial markets software arena.
Thomson’s Acquisition of Reuters
The merger between Thomson Corporation and Reuters Group PLC in 2008 was a pivotal moment in the company's history. The U.S. Department of Justice and the European Commission approved the transaction, with minor divestments as conditions. Subsequently, the Canadian Competition Bureau gave its clearance. On April 17, 2008, the Thomson Corporation officially acquired Reuters Group PLC, giving birth to Thomson Reuters. The company's dual-listed entities—Thomson Reuters Corporation and Thomson Reuters PLC—were listed publicly. In 2009, Thomson Reuters unified its listings, delisting from the London Stock Exchange (LSE) and Nasdaq, and is currently only listed as Thomson Reuters on the New York Stock Exchange (NYSE) and Toronto Stock Exchange (TSX). Over the decade following the merger, from 2008 to 2018, Thomson Reuters completed around 200 additional acquisitions, expanding its portfolio to encompass software systems, computing, financial data, media, analytics, and legal tools.
Conclusion
In summary, Thomson Reuters, with its remarkable history, technological innovations, and strategic acquisitions, has solidified its position as a global powerhouse in the realms of financial data, news, and media. With a legacy that dates back to the mid-19th century, the company continues to adapt and evolve, shaping the future of the information industry.
By providing comprehensive content, analytics, trading, and messaging capabilities through the Thomson Reuters Eikon system, and offering a wide array of text, graphics, video, and pictures via its news agency, Thomson Reuters is not only a global news agency but also a major player in financial markets trading and analytical software. With a vast network of over 2,600 journalists in more than 200 locations worldwide, reporting in 16 languages, Thomson Reuters remains a source of trusted, timely, and invaluable information for professionals and enthusiasts across the globe.
Thomson Reuters' journey from its humble telegraph origins to its current status as a leader in the digital age is a testament to its enduring commitment to delivering accurate, timely, and relevant information to the world. As the company continues to expand and innovate, its influence on the information and financial industries shows no signs of waning.
