Moneyline Telerate Backer To Fund Resolution of Reuters Billing Dispute
Moneyline Telerate has announced that it has reached an agreement with Reuters to settle their suit against them for alleged nonpayment of invoices. The key to the settlement was twofold: Moneyline Telerate and Reuters agreed that an independent audit would settle what fees if any are owed to Reuters, and that Moneyline Telerate would fund an escrow account with USD 18.3 million in funds to cover whatever resolution the auditors may require. The funding for the escrow is to be provided by One Equity Partners, the major financial backer of Moneyline Telerate. As Shore Senior Analyst Jack McConville noted from the road today, "The move by One Equity Partners should send a strong sign to the markets and any nervous institutional customers that Moneyline Telerate will remain a viable vendor in the market data space." Everyone saves face in this maneuver, especially Reuters, who was risking cutting off its nose to spite its face by creating chaos for firms that take in their competitors' services - clients that for the most part still use Reuters services as well. "See what they made me do" is not a good plan for client relations, in content or any other business.