CNBC Sells Stake in Archipelago

Traders Magazine, October, 2003 by Gregory Bresiger

CNBC, the financial cable news organization, has sold its 4.85 percent stake in Archipelago. The stake was valued by CNBC sources at between $10 million and $12 million. It was sold to Archipelago shareholders, who had the first right to buy it. Another suitor, the Toronto Stock Exchange had been interested in buying the stake, sources said.

A CNBC spokesman declined comment. However, Archipelago officials said the sale worked out for them.

"We see it as a good sign. It shows that our own shareholders believe we're going in the right direction," said a spokeswoman for Archipelago. She noted that Archipelago, and its ArcaEx trading platform, have been in the black since earlier this year.

Analysts agreed that the private firm is profitable, but only marginally. The total equity of Archipelago is about $200 to $250 million, based on the value of the CNBC stake.

"Archipelago ...