Thomson Reuters merger 'has not yet paid off'
It has been reported that Reuters' acquisition of Thomson has caused problems.
The combination of Reuters Group and Thomson Corp in 2008 - a process that may have used merger and acquisition consultants - has caused issues within the company.
During a conference call on Thursday (February 9th), Thomson Reuters' chief executive Jim Smith said "external world and market valuations have changed" since the purchase took place in 2008 - a process that cost $17 billion (£10.76 billion).
He added some aspects of the Markets business have not yet formed as strongly as was expected since the deal took place.
A goodwill writedown worth $3 billion was inflicted upon the company during the fourth quarter of 2011 as a result of a falling value within the financial services sector, causing Thomson Reuters profits to swing to a loss.
Mr Smith noted the firm is to focus on increasing its sales of the Eikon products, claiming: "My new team is off to a flying start."
Claudio Aspesi, senior analyst at Sanford Bernstein, was quoted as saying by Reuters that employment will continue to be pressurised in the immediate future, so "headwinds in financial services will be very hard".
Posted by Ken Hayes
Source: Press reports, February 10th