Bloomberg proposes to set up a 100% subsidiary for this purpose.
Bloomberg, the leading global financial information service provider, has drawn up plans to operate a television news programme agency in India.
The proposed television software venture will produce and distribute business and financial news television programmes in English to local television channels.
According to sources close to the development, the company proposes to set up a 100 per cent subsidiary in the country for this purpose. The sources also said the company had applied to the Foreign Investment Promotion Board (FIPB) for permission to start operations.
As per Bloomberg’s plans, it is expected to charge its new Indian entity $300,000 in the first year of operations towards technical services fee.
Subsequently, the company will charge it $100,000. Additionally, Bloomberg may also charge the Indian arm for access to Bloomberg data, news and other facilities.
The new Indian entity will also build and operate a data screen in the style used by Bloomberg in its international television operations.
The Bloomberg datascreen, which is generated by a proprietary software application, when connected to the feed of Bloomberg market data and news, populates a display area allowing viewers to see the data and video programmes on a unique screen.
The company proposes to generate and operate a datascreen and news that will be relevant to investors and business in India.
Bloomberg currently operates a 100 per cent subsidiary in India which undertakes electronic information services such as data, audio text and video text services. The government gave Bloomberg permission to start it’s existing operations in 1995.
In 1999, the government allowed Bloomberg to provide financial and database services to Indian companies via the Internet and other means of communication.
Bloomberg is a private financial information service company founded by the former New York mayor Michael Bloomberg in 1981. In 1987, Merril Lynch became a shareholder of the company. At present Bloomberg Inc owns 80 per cent in the company, with remaining equity being held by Merril Lynch.
Bloomberg also provides global news, television, radio and internet operations. Bloomberg Television, which started operations in 1990, has grown to a network of 10 television channels providing financial market news and data in seven different languages to 200 million homes.