Reuters Group

Reuters Group plc was a British multinational media and financial information company built around the Reuters news agency. Its origins date to 1851, when Paul Reuter established a London news and market-information office after recognizing that the electric telegraph could transform the speed of communication between financial centers. The company initially supplied stock prices and international news, and gradually developed a reputation for rapid overseas reporting and comparatively independent journalism. Its early network used a combination of telegraph links and, before direct cable connections were available, homing pigeons to bridge gaps in communications infrastructure. The business was incorporated as Reuters Telegram Company Limited in 1865. During the nineteenth and twentieth centuries, Reuters expanded its news-gathering operations and became one of the world's leading international news agencies. Its reporting service supplied newspapers, broadcasters, governments, businesses, and other media organizations. The agency's reputation was associated with speed, international reach, and standards intended to protect editorial independence. Reuters was also known for reporting major international events and financial developments, including prominent news from outside the United Kingdom. A major transformation followed the company's 1984 public offering on the London Stock Exchange and NASDAQ. Reuters used its public-company capital to expand its global reporting network and move further into subscription-based financial data, market infrastructure, trading technology, and specialized business information. The company launched products including Equities 2000, Dealing 2000-2, Business Briefing, Reuters Television for financial markets, the 3000 Series, and Reuters 3000 Xtra. By the time of its acquisition, financial-market information and related services represented the overwhelming majority of group revenue, while news reporting accounted for less than one-tenth. The group broadened its technology and information portfolio through acquisitions and joint ventures. These included Instinet, Bridge Information Systems assets, Multex.com, EcoWin, Action Images, ClearForest, StarMine, and other providers of market data, analytics, trading systems, fund information, imagery, and text analysis. Reuters also participated in the creation of Factiva with Dow Jones and worked with the Chicago Mercantile Exchange on Globex, an automated futures-trading system. In the 1990s it made a limited move into radio in London and established a technology investment fund. In 2007, Reuters Market Light introduced a mobile information service for Indian farmers, combining commodity prices, news, and weather information. Reuters' public-company structure included safeguards intended to protect its editorial principles. Its 1984 constitution restricted any single shareholder from owning more than 15 percent, and the Reuters Founders Share Company held a special share associated with the Reuters Trust Principles of independence, integrity, and freedom from bias. The ownership restriction was tested when News Corporation increased its exposure to Reuters through an Australian acquisition; the holding was subsequently reduced. During negotiations with Thomson, the founders-share structure was adjusted because its representatives concluded that securing the company's future through the combination took precedence over preserving Reuters as an independent listed company. The Thomson Corporation agreed to acquire Reuters in May 2007 in a transaction valued at approximately US$17.6 billion. The transaction closed on 17 April 2008, creating Thomson Reuters. Reuters Group therefore ceased to exist as an independent corporate group, although the Reuters news brand, reporting operation, products, and trust principles continued within the combined company. The combined headquarters moved to Toronto, while the Reuters identity remained an important pa…

Reuters Group grew from Paul Reuter's nineteenth-century effort to use new communications technology for the rapid transmission of news and market information. Reuter established his London office in 1851, shortly before the successful opening of a submarine telegraph cable between England and continental Europe. Before direct telegraph coverage was complete, he had used homing pigeons to carry information across a gap between Aachen and Brussels. In London, he negotiated access to prices from the London Stock Exchange and supplied brokers in Paris with European market quotations. The enterprise was reorganized as Reuter's Telegram Company Limited in 1865. Its news operation expanded across Europe and then internationally, producing a reputation for speed and for obtaining important foreign reports early. Reuters became a core supplier to newspapers and broadcasters, while its financial-information operation served brokers, exchanges, and other professional users. Its editorial identity was later expressed through the Reuters Trust Principles, which emphasized independence, integrity, and freedom from bias. In 1984, Reuters became a public company with listings in London and the United States. The flotation financed a period of rapid international growth and product development. Rather than remaining primarily a traditional news agency, Reuters built a broad information-services group. It developed electronic dealing products, financial-data terminals and services, market-analysis tools, business briefings, television services, and systems for electronic trading. Products launched during this period included Equities 2000, Dealing 2000-2, Business Briefing, Reuters Television for financial markets, the 3000 Series, and Reuters 3000 Xtra. The company also pursued acquisitions, investments, and partnerships in financial technology and specialist information. It acquired Instinet in stages, completed a major transaction involving Bridge Information Systems in 2001, and bought or invested in businesses such as Multex.com, EcoWin, Action Images, ClearForest, and StarMine. Reuters participated in the Factiva joint venture with Dow Jones and worked with the Chicago Mercantile Exchange on Globex. These moves expanded the group into trading, quantitative research, fund data, text analytics, imagery, and electronic market infrastructure. Reuters maintained governance mechanisms designed to limit the risk that a dominant shareholder could influence its journalism. The 1984 public-company constitution included a 15-percent ownership ceiling, and the Reuters Founders Share Company held a special share with powers related to changes affecting the Trust Principles. This arrangement was tested by News Corporation's Reuters holding in the late 1980s, after which News Corporation reduced its stake. The ownership rule was ultimately waived in connection with the Thomson transaction. The founders-share company argued that preserving Reuters' long-term viability through the combination was more important than maintaining the previous corporate structure. The Thomson Corporation announced its acquisition of Reuters in May 2007. The approximately US$17.6 billion transaction closed in April 2008, creating Thomson Reuters. At that point, Reuters Group ceased to be a separate listed company. Although the corporate entity ended, the Reuters name and news organization continued within Thomson Reuters, whose headquarters were moved to Toronto. The acquisition reflected the final stage of Reuters' transformation from a news agency with financial services into a diversified global provider of financial information, technology, and professional content.

1. 2008Reuters Group becomes part of Thomson Reuters

   The acquisition closed on 17 April 2008, ending Reuters Group as an independent corporate entity.

   Source
2. 2007Thomson announces the Reuters acquisition

   The Thomson Corporation agreed to acquire Reuters in a transaction valued at approximately US$17.6 billion.

   Source
3. 2005Reuters moves its London headquarters to Canary Wharf

   The company left its long-standing Fleet Street headquarters for a larger building at 30 South Colonnade in Canary Wharf.

   Source
4. 2001Reuters completes the Bridge Information Systems transaction

   The transaction expanded Reuters' financial-information and market-technology capabilities and was described as the group's largest acquisition at the time.

   Source
5. 1999Factiva joint venture launches

   Reuters and Dow Jones established Factiva as a combined business-news and information service.

   Source
6. 1994Reuters expands into business briefings and financial television

   Business Briefing and Reuters Television for financial markets broadened the group's professional content and broadcast offerings.

   Source
7. 1988Globex joint venture is formed

   Reuters and the Chicago Mercantile Exchange began developing an automated futures-trading system.

   Source
8. 1987Equities 2000 launches and Reuters acquires Instinet

   Reuters expanded its electronic financial-data offering and completed its acquisition of Instinet, an electronic trading business in which it had previously held a minority stake.

   Source
9. 1984Public flotation and creation of the founders-share safeguards

   Reuters listed in London and the United States and established mechanisms intended to protect its editorial principles from control by a single shareholder.

   Source
10. 1865The enterprise becomes Reuter's Telegram Company Limited

    The private business was reorganized as a limited company, providing a formal corporate structure for its expanding news and market-information operations.

    Source
11. 1851Paul Reuter establishes the London news and market-information business

    Paul Reuter moved to London and established a telegraph-based service shortly before the opening of the submarine cable linking England with continental Europe.

    Source

Reuters Group positioned itself as a trusted, globally connected provider of independent news, financial-market data, and technology for professional users. Over time, its center of gravity shifted from the news agency to high-value information services, trading infrastructure, analytics, and workflow products for financial institutions and other businesses.

• Reuters news agencyInternational news1851

  The original and most recognizable Reuters business supplied international reporting to newspapers, broadcasters, governments, companies, and other media organizations. Its value proposition rested on rapid transmission, broad geographic coverage, and standards intended to preserve independence and reduce editorial bias.

• Reuters 3000 XtraFinancial information service1999

  Reuters 3000 Xtra was part of the group's professional financial-information portfolio. It provided market data and analytical capabilities for users who needed access to securities, economic, and related financial information in an institutional workflow.

• Dealing 2000-2Electronic dealing system1992

  Dealing 2000-2 represented Reuters' expansion into electronic foreign-exchange and professional dealing technology. It supported the company's strategy of embedding market information directly into transaction and trading workflows.

• Reuters Television for financial marketsFinancial television1994

  This service delivered television and multimedia content tailored to financial-market users. It complemented Reuters' text-based reporting and data products by providing broadcast news and market-oriented video for professional audiences.

• GlobexElectronic trading infrastructure1988

  Developed with the Chicago Mercantile Exchange, Globex was an automated futures-trading system. The joint venture illustrated Reuters' movement from supplying information to helping build the electronic infrastructure through which financial products were traded.

• Reuters Market LightMobile agricultural information2007

  Reuters Market Light was a mobile-phone service for Indian farmers. It combined localized commodity prices with news and weather information, adapting Reuters' information model for users outside its traditional institutional financial audience.

• FactivaBusiness information1999

  Factiva was created as a Reuters and Dow Jones joint venture to provide searchable business news and information. Reuters sold its 50-percent interest to Dow Jones in 2006, leaving Dow Jones as the sole owner.

• 2007Accept Thomson's acquisition offerM&A

  Reuters was facing weak performance and needed a structure that could support the future of its global news and financial-information businesses.

  What changed. Reuters agreed to be acquired by The Thomson Corporation, with the transaction announced on 15 May 2007.

  Aftermath. The transaction closed in April 2008 and created Thomson Reuters. The prior individual ownership restriction was waived in connection with the combination.

  Transaction value. Approximately US$17.6 billion (2007 announced transaction; closed 2008)

  Source
• 1999Create Factiva with Dow JonesProduct launch

  Demand was growing for searchable, consolidated business-news and information services.

  What changed. Reuters entered a joint venture with Dow Jones to create Factiva.

  Aftermath. Reuters sold its 50-percent stake to Dow Jones in 2006, after which Factiva became wholly owned by Dow Jones.

  Source
• 1988Invest in Globex electronic futures tradingProduct launch

  Financial markets were moving toward automated, electronically connected trading systems.

  What changed. Reuters formed a joint venture with the Chicago Mercantile Exchange to develop Globex, an automated futures-trading platform.

  Aftermath. The initiative demonstrated Reuters' strategic shift toward market infrastructure and transaction technology in addition to information distribution.

  Development cost. Over US$100 million (1988)

  Source
• 1984Adopt public-company safeguards for editorial independenceStrategy

  Reuters needed public capital to expand, but its leaders were concerned that concentrated ownership could compromise the independence of its news reporting.

  What changed. The company imposed a 15-percent limit on individual shareholdings and created the Reuters Founders Share Company with a special share linked to the Reuters Trust Principles.

  Aftermath. The safeguards became a defining part of Reuters' governance and were later carried forward in modified form into Thomson Reuters.

  Source

• 2008Thomson Reuters is formed

  The Thomson acquisition of Reuters closed on 17 April 2008, ending Reuters Group's existence as an independent company and creating Thomson Reuters.

  M&A
  Source
• 2007Reuters acquires ClearForest

  Reuters acquired ClearForest, whose text-tagging and analytical technology helped clients extract business information from unstructured textual content.

  M&A
  Source
• 2007Thomson agrees to acquire Reuters

  The Thomson Corporation announced an agreement to acquire Reuters in a transaction valued at approximately US$17.6 billion. Thomson was expected to control about 53 percent of the combined company.

  M&A
  Source
• 2007Reuters launches Reuters Market Light for Indian farmers

  Reuters Market Light introduced a mobile-phone service providing localized commodity prices, news, and weather information to farmers in India.

  Product launch
  Source
• 2001Reuters completes major Bridge Information Systems acquisition

  Reuters completed a partial acquisition of Bridge Information Systems, described in the reference material as the largest acquisition in Reuters' history at that point, strengthening its financial-information and market-technology activities.

  M&A
  Source
• 1999Reuters forms Factiva venture with Dow Jones

  Reuters and Dow Jones created Factiva as a business-news and information service. Reuters later sold its interest to Dow Jones in 2006.

  M&AProduct launch
  Source
• 1988Reuters and Chicago Mercantile Exchange develop Globex

  The companies formed a joint venture to build an automated futures-trading system, extending Reuters' activities beyond news and data into electronic market infrastructure.

  Product launchOther
  Source
• 1984Reuters becomes a publicly listed company

  Reuters floated its shares on the London Stock Exchange and NASDAQ, raising capital for international expansion while adopting ownership and governance protections intended to defend editorial independence.

  Other
  Source

1. Reuters Group