Bloomberg News' parent will invest in startups

The New York Times | BuzzFeed


Bloomberg Beta, a $75 million venture capital fund, "is the first time that Bloomberg L.P. will reap profits from direct investments in some of the technology companies that its news operation covers," Nicole Perlroth reports in The New York Times.

It is already an awkward time for the company, which is under fire because its reporters used Bloomberg’s financial terminals to snoop on companies they covered, including Goldman Sachs, and the fund raises questions on journalism ethics.

“If an entrepreneur wants Bloomberg Beta’s money because they think they’ll have a higher chance of getting covered by a Bloomberg journalist, then they shouldn’t take our money,” Bloomberg Beta honcho Roy Bahat tells Perlroth.

Bloomberg reporter Edmund Lee noted the following on Twitter Wednesday:

The New York Times Co. is an investor in Betaworks.

In an arguably related piece, Charlie Warzel wrote earlier this week about journalists succumbing to the siren song of startups:

While leaving a traditional newsroom for a younger tech company is still risky, there’s at least the promise of stock options and the lure of a grand exit, which are both exciting as well as rare opportunities in media, a field not known for its exorbitant salaries.

  • Andrew Beaujon

    Andrew Beaujon reported on the media for Poynter from 2012 to 2015. He was previously arts editor at TBD.com and managing editor of Washington City Paper. He's the author of the 2006 book "Body Piercing Saved My Life," about Christian rock and evangelical Christian culture.

Comments

Related News

Email IconGroup 3Facebook IconLinkedIn IconsearchGroupTwitter IconGroup 2YouTube Icon