Reuters and Nasdaq form JV to deliver independent analysis

Reuters says around half of all publicly held companies have two or fewer analysts and approximately 35% of all public companies have no analyst coverage at all. According to Reuters Estimates, 691 companies have lost analyst coverage since since January 2002.

The JV, called the Independent Research Network (IRN), will aggregate multiple, independent research providers to procure and distribute equity research on behalf of under-covered companies.

Devin Wenig, president, business divisions, Reuters, says: "A significant reduction in the scope and scale of independent research coverage has resulted in a real 'information gap' for thousands of companies and their investors."

Bob Greifeld, president and CEO, Nasdaq, says: "The Independent Research Network's model addresses the issues of independence, credibility and distribution that have held the research category back. We believe IRN can begin to reverse the trend away from less information for investors to more and provide a better window into public companies," adds Greifeld.

Reuters says the service will be targeted to all companies listed in the US as well as private companies looking for research coverage, although neither Nasdaq, Reuters nor IRN will play a role in preparing the research or issuing recommendations.

But the vendor will provide research aggregation and distribution technology to IRN, including a content management system that was developed in connection with the 2003 Global Analyst Research Settlements.