The move means an end to Dow Jones' European Business News and Asia Business News. The effective date of the merger is Jan. 12.
In the U.S., where Dow Jones does not have a TV network, CNBC will pool its resources with Dow Jones' print media, newswire services and ad sales business.
NBC will be responsible for transmission, distribution, marketing and ad sales.
64 MIL CABLE HOMES
CNBC's international advertisers gain the opportunity to reach a potential 64 million cable TV homes, including 40 million in the U.S. The new channel will transmit part time on NBC Europe in 56 million homes, and part time to 30 million homes in Asia. The merger in Europe requires European Commission approval.
"All four channels [ABN, EBN, and CNBC Asia and Europe] were young news services losing money. This is to rectify that," said Allan Horlick, president of the existing CNBC Europe and of the new European operation.
He said one reason for retaining the CNBC brand is because the channel is very profitable in the U.S.
"CNBC is recognized as a strong brand. And we can now deal with advertisers with growing media plans," he said.
MULTIMEDIA AD PACKAGES
Through the new CNBC, NBC can offer international advertisers multimedia packages in Europe, Asia and the U.S., because the partnership with Dow Jones gives the advertisers access to Dow Jones' print brands, including The Wall Street Journal's regional editions.
Additionally, advertisers will be offered space on MSNBC, the Internet service jointly owned by NBC and Microsoft Corp., and in which Dow Jones has now taken a small stake.
Dow Jones' role in the revamped venture will be as content provider, having licensed to CNBC the worldwide rights to its editorial material. That includes video links to the offices of Dow Jones' 1,650-plus editors and reporters.
"We're content providers, not broadcasters," said Philip Revzin, Brussels-based editor and publisher of The Wall Street Journal Europe. "Rather than trying to create three channels [in Europe, Asia and the U.S.], we linked up."
The fate of current advertisers on EBN, ABN, and CNBC Asia and Europe was not