Bloomberg Q&A

I received this inquiry from an investment advisor today:

Hi…I see that Bloomberg acquired Eagle Eye… Why wouldn’t Bloomberg just buy Onvia if they really wanted to be in this space? Any thoughts? Thanks.

And here is my answer:

I have several blog posts on this here http://blog.federaldirect.net/
but to answer your question-

1) we don't know yet what Bloomberg's focus is - are they going after Congressional Quarterly, the Hill & National Journal? Are they targeting contract info like Input, Fed Sources & Onvia? Are they going to use the contract data to advise investors? All of the above? Something else? Is this an invasion or an incursion?

2) My guess is they didn't but Onvia because it is publicly traded and would not be cheap. Eagle Eye was truly the low cost point of entry. It came with a solid data repository, but it did not come with much of a customer base.

3) We will be able to discern more after we see what they buy next!

Stay tuned - and thnx for asking.

Best
Mark

The follow up message read:

Thanks…I would think 100MM would be drop in the bucket for Bloomberg….

And my answer-

No argument from me, but it depends on their strategy and how much they think they can gain on the strength of their name. Judging from the press releases, they think the name Bloomberg will big equity in DC.

They are wrong.

Bloomberg & BGov take 5 - what are they DOING?

These two posts are from January 27 FishbowlDC posts. FishbowlDC provides the inside scoop on DC media. You should subscribe if DC media is of interest to you (if you have PR responsibility or are just a media junkie, FishbowlDC is a great source). My personal thanks and kudos to FishbowlDC for following this so closely.

http://www.mediabistro.com/fishbowlDC/news_notes/new_bloomberg_initiative_takes_aim_at_hill_rags_150213.asp

1/27/10, 4:59 PM
"Sources tell FishbowlDC that an underground project, slated to put a hurtin' on NJ, CQ-Roll Call, The Hill and Politico is underway at the Washington bureau of Bloomberg News. Rumor has it that the project's aim is to specifically report and track Cap Hill news using a dashboard site similar to Bloomberg's existing technology. "

Few details about the initiative have surfaced but the competition has already begun in the HR department. Reportedly led by former CQ Editor and VP Mike Riley, we hear that recruiting efforts have already snagged several CQ folks including top salesperson Joanna Matthews.
At the time of this post, Bloomberg could not comment on the project or specific hires but a rep tells FishbowlDC, "We are hiring globally and Washington is increasingly important to our subscribers, readers, listeners and viewers. Naturally we are adding staff in the DC bureau."

http://www.mediabistro.com/fishbowlDC/news_notes/bloombergs_bgov_details_begin_to_surface__150240.asp

1/27/10
"Bloomberg News still isn't talking about the development of their new product, designed to take on The Hill, CQ-Roll Call and other Cap Hill pubs but details about the venture have started seeping out since FishbowlDC first reported this afternoon.
Sources at the organization say the initiative is being overseen by execs Chris Walters and Don Baptiste who have traveling to Washington on a weekly basis. Additionally, Chris Roush from UNC's "Talking Biz News" tells us that the project is expected to have a $100 million budget, will create 40-50 editorial positions and is being referred to as "BGov" internally."

Amtower analysis (see my previous posts on this over the last 10 days): Bloomberg is looking to become a major paid information provider on multiple fronts.

- On one front, they will take on the Capitol Hill pubs (National Journal, Roll Call, etc), which includes the Hill and K street (lobbying) audience.

- On another front they will apply their traditional market expertise (finance/investment) to the complex government contracting community and provide an investment service to Wall Street that focuses on Global One - selling to the government (Federal, state and local). Input already announced they were providing an investment tool, Government Investment Advisor (GovIA), providing. Frankly a product like this is long overdue. "

- On yet a third front, Bloomberg will compete against Input, Federal Sources, Onvia and others in providing emerging contract opportunity data to the contracting community.

An Napoleon and others found out, fighting wars on multiple fronts is not a winning proposition.

Bloomberg does have deep pockets and can buy some of the competition, and this is what I expect to happen. With their apparently aggressive growth goals, the "purchase the competition" method is most likely.

Stay tuned....

Bloomberg Enters B2G Market

I heard rumblings late last year that financial news giant Bloomberg was looking for a play in the B2G market.

Today I heard that Bloomberg bought government contract and grant research firm Eagle Eye Publishers. While the details are blurry, here is what I hear:

1) Bloomberg bought the data, and left founder & owner Paul Murphy with the name;
2) Mr Murphy will stay as a consultant for 6 months;
3) Bloomberg may not be done buying stuff;
4) Bloomberg has very aggressive sales goals.

What this means to the B2G world:

1) Onvia, Federal Sources, Input, Carroll Publishing and others now have another competitor - well actually the same number, as Eagle Eye is gone. But Bloomberg will be better financed and more aggressive.

2) Contractors will be getting sales calls from a new player that will be merciless in its pursuit of marketshare.

3) Maybe Washington Technology and WFED will have a new advertiser!

What value does Bloomberg bring to the market? That remains to be determined, but suffice it to say they have the resources to be a real player. If they can jettison any attitude that might accompany their entrance ("We're Bloomberg and you're not" a la Chevy Chase on Saturday Night Live from the old days), they should do well.

If they come in with the attitude, many of us will be available to point it out.

Regardless, this will be fun to watch unfold.

2010 forecast for THE FEDERAL, STATE, and MUNICIPAL MARKET- free webinar

This will provide great info for companies either in the government market, or those seeking to enter the government market in 2010. Real information from two experts Michael Balsam of Onvia and me) - and it is free.

https://onviaevents.ilinc.com/perl/ilinc/lms/register.pl?activity_id=vxbtzmt&user_id=

Here are the dollars:

$5.5 trillion a year.
$105 billion a week.
$15 billion a day.
$625 million an hour.
$10 million a minute.
$175,000 a second.

Spending by federal, state, and municipal governments now represents almost half of total U.S. GDP, and that percentage is expected to increase in the coming years.

Companies that ignore the government sector are significantly disadvantaged.

The Next Economy: 2010 Government Market Outlook Report and Webinar will give you the insight your business needs to capitalize on the enormous opportunity in the government marketplace.

Register to get industry insight on:

-Government investments in Infrastructure, Energy, and Information Technology - from regional health information networks and intelligent transportation systems to smart power grids
-Continued impact of Economic Recovery funding
-Subcontractor and supplier opportunities due to lower barriers of entry
-and much more

https://onviaevents.ilinc.com/perl/ilinc/lms/register.pl?activity_id=vxbtzmt&user_id=

Some current and upcoming B2G Stuff

A couple items of interest to the B2G community.

My friends at World Wide Technology are hosting a webinar on Putting Stimulus Doallrs to Work:
http://www.wwt.com/external_content/stimulus_registration.html
WWT is a major provider of Cisco, Sun and other high-end IT products to the government.

The Montgomery County (Maryland) Chamber and its GovConNet program is hosting a Procurement Conference and Expo Wed May 13 - here is the link:
http://www.montgomerycountychamber.com/pubs/main/Procurement_Confer_1.cfm
The lineup is very impressive.

My friends at Onvia are hosting a webinar on May 20, 2009
https://onviaevents.ilinc.com/perl/ilinc/lms/register.pl?activity_id=pwmyvmp&user_id=
This is regarding the economic recovery initiatives that are under way. Onvia is always a good source for this information. Onvia Webcast: Recovery Projects are Underway – How to Secure your Success.

I am back on StartUpNation
http://www.startupnation.com/articles/9439/1/government-contracting-gsa-schedules.htm

For those of you not familiar with http://www.startupnation.com/, is is an information portal for new and small businesses, filled with articles, podcasts, etc, from a variety of niche experts. Take a little time to browse the site.

I am also in the current Maryland Daily Record in an article regarding private business clubs - see
http://www.mddailyrecord.com/article.cfm?id=11411&type=UTTM

End-of Week Wrap, Free ebook and New CD Programs

Aside from having a cold this week and taking a few naps, the week was fairly productive.

Although I missed the ASBC (http://www.theasbc.org/) Business Over Breakfast Wednesday, I did speak the the Coalition for Government Procurement (http://www.thecgp.org/) MAS Bootcamp that afternoon to a group of 30 or so. And it was a really good event.

I did attend the ASBC quarterly State of the ASBC meeting Friday, and the ASBC Board of Advisors meeting after the general session. There was a great group of 65+ for the general members-only session.

And I made it into Washington Technology with Angela Dingle of http://www.exnihilo-mgmt.com/ . If you'd like to see the article, go here - http://washingtontechnology.com/articles/2009/02/02/survival-guide.aspx

And on the home page of this blog, somewhere to the right of where you are now reading, I have a free ebook called Diving in the Deep End: The Top Things a CEO Needs to Know Before Entering the Government Market. This is a free ebook - you don't even have to give me your email address. Contributors to this ebook inlcude
Michael Balsam of http://www.onvia.com/
Judy Bradt of http://www.summitinsight.com/
Steve Charles of http://www.immixgroup.com/
Lisa Dezzutti of http://www.marketconnectionsinc.com/
Courtney Fairchild of http://www.globalservicesinc.com/
Michael Keating of http://www.govpro.com/
Bob Lohfeld of http://www.lohfeldconsulting.com/
Robert Silverman of http://www.reachsolutions.com/
Guy Timberlake of http://www.theasbc.org/
and I'd like to thank each of them.

Finally, we have finished producing our two latest audio programs and we will have those available to ship next week. The first, The Ulitmate Jumpstart Program for Getting PR is a 5 CD set with me being interviewed by Guy Timberlake for the first 4 CDs, and by Glenn Garnes of http://www.perfectnetworker.com/ on the final CD. Why interview me on this? Over the past 14 years I have appeared in about 200 publications and over 150 web sites and ezines. I have also been interviewed on over 50 radio stations (including web radio) web around the country, and in Canada and the U.K. I know how to generate publicity and show you exactly how I do it.

The second program is a 2 CD set called The Ultimate Jumpstart Program for Social Networking, where Glenn Garnes again interviews me on my use of LinkedIn. Cjheck out my profile on LinkedIn and see what I am up to in social networking.

If you can't wait until next week to place an order, email me at markamtower gmail com.

Have a great weekend, wherever you are! Vaya con dios!