Billionaire Mike Bloomberg plans to donate his business empire to his philanthropic organization in one of the largest charitable donations in history.
“He has committed to gifting the company to Bloomberg Philanthropies when he dies, if not sooner,” company spokesman Ty Trippet said told the financial times in an article published this week.
Bloomberg, who turned 81 in February, is worth about $94 billion. He will likely transfer ownership of his namesake company to a trust overseen by friends and family that will fund Bloomberg Philanthropies on an ongoing basis. The organization focuses on education, arts, environment, government innovation and public health.
Patagonia founder Yvon Chouinard took a similar step last year with his outdoor clothing company and gave it to a foundation that will use profits to fight climate change.
But it’s hardly a common tactic. As Chouinard commented then: “We are turning capitalism on its head by making the earth our sole shareholder.”
Such an arrangement by Bloomberg, which operates one of the most valuable private companies in the world, would have a much larger scope. Bloomberg Philanthropies spent about $1.6 billion last year, while Patagonia estimates it will give its trust $100 million annually, the FT reports.
wealth reached out to Bloomberg for comments outside of normal business hours, but did not receive an immediate response.
Bloomberg is already known for its philanthropy. 2010 he has signed The give deposit, a commitment for billionaires to donate most of their wealth to societal needs. 2019 he has announced a $500 million investment to fight climate change.
Some highlights from Bloomberg Philanthropies giving:
Earlier this year, it announced a pledge of US$420 million over four years to a tobacco reduction initiative, bringing total commitments since 2005 to more than US$1.5 billion.
Last November, it announced Public Art Challenge, which encourages mayors of US cities with populations of 30,000 or more to apply for up to $1 million in grants to “create temporary public art projects that address important civic issues.”
The month before that, it announced an additional $50 million commitment to the Global Polio Eradication Initiative, bringing the total to $225 million since 2013.
Last September, it promised an investment of more than $200 million to protect the ocean, coastal communities and marine ecosystems, noting that “ocean health is critical to the life and livelihoods of people around the world.”
While there is little doubt about the direction Bloomberg Philanthropies would take with more funding, there is still uncertainty about Bloomberg’s preference for his successor at the company.
According to FT, the most likely candidate for the takeover is Jean-Paul Zammitt, who as Chief Commercial Officer is responsible for the sale of the terminals. But Bloomberg, known for being reserved and patient, leaves his team guessing — and possibly choosing an underdog.
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