In an era where information and capital are increasingly concentrated, understanding the entities that wield significant power becomes paramount. Among these, BlackRock emerges as a towering figure, particularly in the global financial landscape. But What Is Blackrock Company exactly, and why does its influence extend far beyond Wall Street, even into the media you consume daily?
This article delves into the core of BlackRock, exploring its operations, its massive scale, and its expanding reach across various sectors, including a significant stake in the media industry. By understanding BlackRock, we can gain critical insights into the forces shaping our world.
Oligarchy by jvandoor via Flickr
BlackRock’s Media Footprint: Ownership in Major News Outlets
The original article highlighted a concerning trend: the consolidation of media ownership into the hands of a few powerful corporations. When examining who controls these corporations, the name BlackRock consistently surfaces. Harvard researchers, in a study on media ownership, revealed the extent of BlackRock’s holdings in major media companies. These holdings are not insignificant; they represent a substantial ownership stake in the narratives and information disseminated to the public.
Consider these figures, as highlighted in the original article:
- Fox: 18% owned by BlackRock.
- CBS (and 60 Minutes): 16% owned by BlackRock.
- Comcast (NBC, MSNBC, CNBC, Sky): 13% owned by BlackRock.
- CNN: 12% owned by BlackRock.
- Disney (ABC, FiveThirtyEight): 12% owned by BlackRock.
- Gannett (USA Today and over 250 daily newspapers): 10-14% owned by BlackRock.
- Sinclair Local Television News: 10% owned by BlackRock (controls 72% of US households’ local TV).
- Graham Media Group (Slate, Foreign Policy): A large, unspecified stake owned by BlackRock.
This extensive portfolio reveals that BlackRock is not just a financial institution; it’s a significant stakeholder in the flow of information and news that shapes public perception.
The Rise of Passive Investing and BlackRock’s Dominance
To understand how BlackRock amassed such influence, it’s crucial to grasp the concept of passive investing. The original article touches upon this shift, noting the increasing investor preference for passive funds since the 2008 financial crisis.
Passive funds, such as index mutual funds and exchange-traded funds (ETFs), are designed to mirror the performance of a specific market index, like the S&P 500. Instead of actively picking and choosing stocks, passive funds simply hold all or a representative sample of the stocks within that index. This approach has gained immense popularity due to its lower fees and, in many cases, comparable or even superior performance to actively managed funds.
BlackRock has capitalized on this trend, becoming the world’s largest asset manager primarily through its dominance in the passive investing space, particularly with its iShares ETF brand. This massive shift towards passive investing has inadvertently concentrated corporate ownership in the hands of a few giant asset managers like BlackRock and Vanguard (which, notably, is BlackRock’s largest shareholder, and also owns a significant portion of State Street, the third of the “Big Three” asset managers).
BlackRock’s Staggering Scale: Managing Trillions
The sheer scale of BlackRock’s operations is difficult to comprehend. As the original article points out, BlackRock manages approximately $9.5 trillion in assets. To put this into perspective, this figure dwarfs the assets of the world’s largest banks and even surpasses the GDP of many countries.
This immense financial power gives BlackRock considerable leverage. As a major shareholder in thousands of publicly traded companies across various sectors, BlackRock’s decisions and priorities can have far-reaching consequences. The original article highlights Senator Elizabeth Warren’s concern about BlackRock being “too big to fail,” emphasizing the potential systemic risk associated with such a massive entity.
Influence Beyond Finance: BlackRock’s Entanglement with Government
BlackRock’s influence extends beyond the corporate world and into the realm of government. The original article details BlackRock’s close ties to the US government, particularly in times of financial crisis.
- 2008 Financial Crisis: BlackRock was selected by the Obama administration to manage toxic assets during the 2008 financial meltdown, acting as a crucial partner in the government’s response.
- 2020 COVID-19 Pandemic: BlackRock played a central role in the economic response to the COVID-19 pandemic, proposing and managing programs to stabilize markets. It was granted a no-bid contract to manage a massive fund, leveraging it for trillions in Federal Reserve credit.
- Personnel “Revolving Door”: The article points out the “revolving door” between BlackRock and government, with numerous BlackRock executives moving into high-level positions in the US Treasury and economic advisory roles in both Democratic and Republican administrations.
These connections raise questions about potential conflicts of interest and the extent to which private financial power shapes public policy.
Criticisms and Controversies Surrounding BlackRock
BlackRock’s immense size and influence have not gone unnoticed, and the company faces increasing scrutiny and criticism. The original article mentions some of these criticisms, including:
- “Oligarchy” Concerns: Critics argue that BlackRock contributes to a financial oligarchy, concentrating power and reducing competition. Its significant ownership stakes across competing companies within the same industries raise concerns about potential anti-competitive behavior.
- “Shadow Bank” Accusations: Some critics label BlackRock a “shadow bank,” operating with significant financial power but with less regulatory oversight than traditional banks.
- Environmental and Social Responsibility Concerns: While BlackRock CEO Larry Fink has emphasized environmental, social, and governance (ESG) investing, the company faces criticism from both sides of the spectrum. Some activists argue BlackRock’s ESG commitments are merely “greenwashing,” while others criticize the company for “woke capitalism” and prioritizing social issues over shareholder returns.
- China Investments: BlackRock’s expansion into China has drawn criticism, particularly regarding investments in Chinese companies with ties to human rights abuses and national security concerns, as highlighted by George Soros in the original article.
Conclusion: Understanding BlackRock’s Expanding Role
What is BlackRock company? It is more than just an asset manager. It is a financial behemoth with unprecedented reach into media, government, and the global economy. Its rise reflects the changing landscape of finance and the increasing concentration of corporate power.
Understanding BlackRock is crucial for navigating the complexities of the modern world. Its influence touches numerous aspects of our lives, from the news we consume to the policies shaping our economies. As BlackRock’s power continues to grow, critical analysis and public discourse about its role and responsibilities are more important than ever.
