What is Henry Blodget's Net Worth and Salary?
Henry Blodget, an American entrepreneur, investor, and journalist, boasts a net worth of $50 million. He is renowned for founding Business Insider, now known as Insider.com. Previously, he was a senior Internet analyst at CIBC Oppenheimer and head of global Internet research at Merrill Lynch. After a civil trial conviction for violating securities laws, Blodget faced a permanent ban from the securities industry and a $4 million fine.
When Axel Springer acquired Business Insider for $343 million in 2015, Blodget's estimated 5-10% stake yielded him a pre-tax gain of $17-34 million.
Early Life and Education
Born in 1966 on Manhattan's Upper East Side, Henry Blodget attended Phillips Exeter Academy, a prominent independent school in New Hampshire. He later earned a bachelor's degree in history from Yale University.
Career Beginnings
After graduating from Yale, Blodget taught English in Japan and later moved to San Francisco, California, where he gave tennis lessons and freelanced for Harper's Magazine.
Equity Research and Investment
Blodget joined Prudential Securities' corporate finance training program in 1994. By 1996, he began his equity research career at Oppenheimer & Company, predicting within a year that Amazon's stock would rise from $240 to $400. This correct prediction brought significant media attention. He subsequently became Merrill Lynch's head of global Internet research, earning $12 million in a single year and frequently appearing on CNBC.
Before the dot-com bubble burst in 2000, Blodget invested $700,000 in tech stocks, losing most of it over the years. Following a buyout, he left Merrill Lynch in 2001.
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Securities Fraud and Consequences
In 2002, New York State Attorney General Eliot Spitzer released emails showing Blodget had privately given stock assessments contrary to public reports. In 2003, the SEC charged Blodget with civil securities fraud. He settled, accepting a permanent industry ban and paying $4 million in fines and disgorgement.
After leaving securities, Blodget wrote for publications such as Slate, Fortune, the New York Times, Euromoney, and the Financial Times. He also led the research and consulting firm Cherry Hill Research as CEO.
Business Insider
In 2007, Blodget co-founded Silicon Alley Insider with Dwight Merriman and Kevin P. Ryan. This site evolved into BusinessInsider.com, and ultimately Insider.com.
On September 29, 2015, German media conglomerate Axel Springer acquired 88% of Business Insider for $343 million, increasing its stake to 97%, with Amazon's Jeff Bezos holding the remaining 3%. Blodget's 5-10% stake provided a substantial pre-tax gain of $17-34 million.
Books
Blodget continues to write for several prominent publications, including Newsweek and New York magazine, addressing investors' return-limiting actions. In 2007, he published The Wall Street Self-Defense Manual: A Consumer's Guide to Intelligent Investing. He also maintains the tech blog Silicon Alley Insider.
