Bloomberg, 77, who served three terms as NY mayor from 2002 to 2013, has flirted with presidential runs before, ultimately deciding not to run in 2008, 2012 and 2016. Alabama has an early filing deadline and is among the states that vote on Super Tuesday, named for the large number of state contests that day.
He could file the necessary paperwork as early as this week, the New York Times reported.
There have been reports saying Bloomberg is eyeing a bid for the White House for the past several weeks. The 77-year-old would pose an immediate ideological challenge to former Vice-President Joe Biden, who is running as a moderate and hopes to appeal to independents and Republicans who have soured on Trump.
Howard Wolfson of the Bloomberg Foundation wrote on Twitter that "we now need to finish the job and ensure that [Donald] Trump is defeated - but Mike is increasingly concerned that the current field of candidates is not well positioned to do that". Elizabeth Warren (D-MA) could defeat President Donald Trump in 2020.More news: Playtonic Denies That It's Making a New Banjo Kazooie
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Two months later, Bloomberg reportedly held meetings with top Iowa Democrats during a multi-city tour through the first state that has a say in a presidential race.
His entry would bloat an already crowded field of contenders, with 17 candidates now vying for the right to take on Trump as the Democratic nominee.
Bloomberg's entrance into the race would be a shake-up to a race that has seen criticism of the ultra-wealthy from progressive Democrats like Sens. "[Therefore] Mike was encouraged to take another look and reassess the race".