Thomson Reuters about to dominate competition - Motley Fool

This in turn would be a meaningful move in the right direction in terms of increasing its revenue, which could be a major positive for its share value, Canadian investment website The Motley Fool said.

Under the headline Why Thomson Reuters Corporation Is About to Dominate the Competition, it said that part of the reason the company has struggled to grow its revenue in the financial and risk segment is stiff competition. Its main rival in that segment is Bloomberg. There are many other small competitors, too.

“In order for Thomson Reuters to grow in that sector, it has to distinguish itself from the competition, and the latest developments show that it may accomplish exactly that,” the Fool said.

“While Thomson Reuters and Bloomberg each control about a third of the business, the latter may soon start to lose its position. Wall Street has grown somewhat annoyed with Bloomberg’s dominance in the sector, particularly after it came to light that Bloomberg journalists were obtaining some highly confidential information through the terminal. As a result, other companies have been working on programs that would be stronger competitors to Bloomberg’s offerings.

“So how does this relate to Thomson Reuters? While Bloomberg may be suffering from a bit of negative PR, Thomson Reuters just got a really healthy dose of positive PR. Thomson Reuters recently had a game-changing business development when it won the right to manage the daily silver fix with CME group. This win has positioned the company well to also win the right to manage the daily gold fix.” ■