Sunday, June 23, 2024

Mike Bloomberg plans to leave the company to Bloomberg Philanthropies


Billionaire Mike Bloomberg is planning to leave his business empire for his own philanthropic organization – and it will be one of the largest charitable donations in history.

“If he does not die soon, the company is committed to bequeathing it to Bloomberg Philanthropies,” said Ty Trippett, a spokesman for the company. told financial Times In a piece published this week.

Bloomberg, who turned 81 in February, has assets of about $ 94 billion. He will likely transfer ownership of the company bearing his name to a trust, overseen by friends and family, that will finance Bloomberg Philanthropies in perpetuity. The organization focuses on education, the arts, the environment, government innovation, and public health.

Yvonne Chouinard, the founder of Patagonia, took a similar step with her outerwear company last year, handing it over to a trust that will use profits to help fight climate change.

But this is hardly a common strategy. As Chouinard remarked at the time, “We are turning capitalism on its head by making the earth our sole shareholder.”

Such an arrangement, envisioned by Bloomberg who runs one of the world’s most valuable private companies, would be on a much larger scale than Patagonia. Bloomberg Philanthropies invested some $1.6 billion last year, while Patagonia estimates it will give $100 million annually to its trust, the FT reports.

Bloomberg is already known for his philanthropy. In 2010, he Put signature on To give promise, a commitment by billionaires to donate most of their wealth to meet social needs. In 2019, he announced a $500 million investment to combat climate change.

Some highlights from Bloomberg Philanthropies’ donation:

Earlier this year, it announced Pledged $420 million over four years for initiatives to reduce tobacco use, bringing its total commitment since 2005 to more than $1.5 billion.

last november, it announced Public Art Challenge, encouraging mayors of US cities with 30,000 residents or more to apply for funding of up to $1 million to “create temporary public art projects that address important civic issues”.

the month before that announced An additional $50 million has been committed to the Global Polio Eradication Initiative, bringing its total since 2013 to $225 million.

last september, it committed to invest With more than $200 million committed to protect oceans, coastal communities and marine ecosystems, “the health of the ocean is critically important to the lives and livelihoods of people around the world.”

While there is no doubt about which direction Bloomberg Philanthropies will take more funding, uncertainty still surrounds Bloomberg’s preference for a successor to the business.

According to the FT, Jean-Paul Jammit, who has been in charge of terminal sales as chief commercial officer, is considered the most likely candidate to take over. But Bloomberg, known for being private and patient, is keeping his team guessing—and may choose an outsider.