Fired by Salomon Brothers, Bloomberg Turned a Setback into a $109 Billion Business Empire

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Mike Bloomberg’s professional journey reached a turning point in 1981 when he was unexpectedly let go from his partner role at Salomon Brothers after a 15-year tenure. At that time, Salomon Brothers, a powerhouse in the securities industry, merged with Phibro Corporation, a commodities trading firm listed on the stock exchange. Although Bloomberg had advanced from an entry-level position to overseeing systems development as a partner, he was not retained after the merger, though he did receive a $10 million severance. Bloomberg later described this as a “bittersweet” experience, but it ultimately spurred him to build his own media and technology conglomerate.

The day following his dismissal, Bloomberg established Innovative Market Solutions, which would later become Bloomberg LLC. With the support of Thomas Secunda, Duncan MacMillan, and Charles Zegar, he invested his severance payout into creating financial software and data services. Their main product, the Bloomberg Terminal, transformed the way real-time financial information was delivered, becoming indispensable to 325,000 finance professionals worldwide. By 2025, Bloomberg LLC’s annual revenue approaches $15 billion, with Bloomberg himself holding an 88% stake and a personal fortune estimated at $109 billion.

Bloomberg’s time at Salomon Brothers strongly influenced his management style. He stressed the importance of being adaptable, pointing out that even the most detailed plans can change unexpectedly and that resilience is key. In an interview, he remarked, “The best-laid plans often go awry, and you have to be able to roll with changes and adapt to them.” His experience also deepened his commitment to recognizing loyalty. At Bloomberg LLC, employees are honored with commemorative pylons for reaching service milestones, contributing to an average staff tenure of 7.8 years—well above the national average of 3.9 years.

The move from Salomon Brothers to founding Bloomberg LLC also underscored New York City’s status as a center for innovation. Bloomberg’s choice to start his company in New York, even during a nationwide economic downturn, highlighted the city’s wealth of skilled professionals, financial resources, and access to international markets. According to the Manhattan Institute, New York’s concentration and variety of industries have long supported reinvention, a quality that Bloomberg’s enterprise embodies.

Reflecting on his career, Bloomberg offers a thoughtful view on setbacks and new possibilities. “Getting fired was hard, but I never held it against the people involved,” he shared. “I took much more from the job than a paycheck.” He credited mentors at Salomon, such as John Gutfreund and William Salomon, with teaching him the importance of ethics and diligence. These values, he believes, were crucial to his later achievements, turning a professional setback into the basis for his global impact in finance, media, and philanthropy.

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