Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (10351)	12/9/1997 1:52:00 PM
From: Moonray	Respond to of 22053

Dow Jones, NBC to Combine Global TV, Internet Units New York, Dec. 9 (Bloomberg) -- Dow Jones & Co. and General Electric Co.'s National Broadcasting Co. said they'll combine their Asian and European business TV units and join forces in the U.S. to reduce losses and share the costs of expanding globally. The move allows the companies to cross-market brand names such as the Wall Street Journal and other Dow Jones business news services, the CNBC cable channel and MSNBC, which is an Internet and cable venture between NBC and Microsoft. Losses at Dow Jones's and NBC's television operations in Europe and Asia have been a drain on their resources. Analysts, though, said the appetite for business news around the world could make the channels profitable once the availability of digital television reduces their costs. ''This is going to allow them to combine a lot of operating expenses and perhaps make profitable what hasn't been,'' said John Morton, an independent analyst. Dow Jones's shares fell 13/16 to 53 13/16 in midday trading of 142,600, compared with the three-month daily average of 312,000. GE gained 9/16 to 74 1/8. Both companies will take unspecified charges against 1997 fourth-quarter earnings to reorganize the overseas units. They also plan to cut about 200 jobs in Europe and Asia, including 150 at CNBC in Hong Kong. The agreements are expected to be complete early next year. Terms weren't disclosed. CNBC is losing about $25 million in Asia and $15 million in Europe a year, according to some estimates. Dow Jones, meantime, is losing about $48 million a year from its television business, according to those same estimates. Global Competition Expectations of a link-up have grown this year amid intensifying competition in the small and fast-growing business news TV market. In Europe, for example, Dow Jones's European Business News channel competes with Bloomberg Television, Reuters TV and Financial Times TV as well as CNBC. Under the agreement, Dow Jones will merge its Asia Business News and European Business News units with CNBC. The resulting channels will keep the CNBC names and reach 9 million households in Asia on a full-time basis and 15 million in Europe. ''This partnership isn't going to turn them into profitable businesses in the next six months, but with the partnership the channels will become profitable sooner than they would have as separate entities,'' said Peter Kann, chairman and chief executive of Dow Jones. In the U.S., CNBC will pay a licensing fee for the next 15 years for the rights to Dow Jones editorial content, including stories from the Wall Street Journal and the company's news wires. CNBC, which is available in 65 million households, will be designated as a ''service of NBC and Dow Jones'' during the day and early evening hours. ''The Wall Street Journal name is a very strong franchise,'' Morton said. The agreement also joins two companies who just six years ago fought a bitter battle to buy the Financial News Network. NBC eventually paid $154 million in cash and assumed debt for the cable channel and merged it with CNBC. ''Whenever you put together a structure like this there's an opportunity to look for efficiencies,'' said Allan Horlick, president and managing director of NBC Europe. Stakes Tele-Communications International Inc., meantime, agreed to convert its 49.25 percent interest in Asia Business News into an unspecified subordinated interest. Flextech Plc, which holds an interest in European Business News, will convert its stake to a limited partnership. The two companies will combine their advertising teams now located in New York, London and Singapore. ''We will create a global television business news and information presence that is unrivaled in speed and depth,'' NBC President Bob Wright said. The third part of the agreement calls for Dow Jones and CNBC to develop cable, satellite and other TV business news for MSNBC, a venture between NBC and Microsoft. Dow Jones will take an interest in MSNBC Business Video, which is now co-owned by NBC and Microsoft. The MSNBC World Wide Web sight will use the CNBC and Wall Street Journal brand names and include highlights from the newspaper. Dow Jones, NBC and Microsoft will also co-own the rights to develop CNBC video for interactive media through computers and other non-television sources. o~~~ O