- CNBC, the US business news television network, has acquired a 12.5 per cent stake in Archipelago, the electronic communications network which trades shares and aims to become a national stock market.
Chicago-based Archipelago is though to be the third- or fourth-largest of the ECNs, which are proving to be legitimate competitors to traditional stock markets.
The company has recently attracted investors including investment banks Goldman Sachs and JP Morgan and Instinet, the leading ECN owned by Reuters and electronic stock broker E*Trade. Its most recent investor was the investment bank, Merrill Lynch, which invested between $25 and $30 million last week. CNBC is the first broadcast news organisation to invest in Archipelago.
Under the terms of the agreement, no direct link will be established between CNBC and Archipelago, although it does provide an indirect link for Archipelago with the NBC television network, which draws almost 100 million viewers a week.
CNBC's motives are thought to be primarily financial rather than operational.