FRANCHISE HERALD
Monday October 26, 2020

updated - October 26, 2020 Monday EDT

IBM Close to Acquiring Digital, Data Assets of Weather Co., Deal Would be Valued at More Than $2 Billion

Oct 29, 2015 01:04 AM EDT | By Jean-Claude Arnobit
Tags
IBM, Weather Co., digital and data assets, acquisition
Close
IBM Close to Acquiring the Digital and Data Assets of Weather Co., Deal Would be Valued at More Than $2 Billion
(Photo : Sean Gallup | Getty Images News)

International Business Machines Corp. (IBM) is close to acquiring Weather Co.'s digital and data assets, people familiar with the matter told The Wall Street Journal.

One of the people said that the deal would be valued at more than $2 billion.

The Wall Street Journal adds that IBM is particularly interested in getting Weather Co.'s WSI, its forecasting group.

The division keeps the technology and weather data that Weather Co. collects, manipulates and licenses to other companies.

The people told The Wall Street Journal that the deal doesn't include the traditional TV business of Weather Co.

It does include, however, the website and app, intellectual property, infrastructure and data.

IBM and Weather Co. are not new with each other as they have already partnered before, according to Reuters.

The two companies, through Weather Co.'s WSI, have already signed a deal in March.

Reuters adds that the deal was to integrate Weather Co.'s weather data service with IBM's cloud services.

Bloomberg adds that Blackstone Group LP, Bain Capital LLC and Comcast Corp.'s NBCUniversal, Weather Co.'s owners, have already been exploring a sale since August.

The three companies have been working with Morgan Stanley PJT Partners Inc. in looking for a potential buyer.

Bloomberg adds that the three companies acquired Weather Co. in 2008 for about $3.5 billion.

People told The Wall Street Journal that a year ago Google had an opportunity to bid on Weather Co.'s digital assets.

Google wasn't interested, though, and no bidding happened.

The Wall Street Journal adds that Weather Co. is best known for its Weather Channel and the friendly meteorologists that the company has, like Jim Cantore.

But the tough media environment has dimmed the prospects for the TV channel.

The Wall Street Journal adds that people cutting down their pay-TV cord and slicing cable packages have raised fears for the company.

Investors fear that the recent media environment will be hard for a small network like Weather Co. to grow subscription fees.

One of the people told The Wall Street Journal that David Kenny, the CEO of Weather Co., is expected to join IBM after the transaction closes.

Get the Most Popular Franchiseherald Stories in a Weekly Newsletter
© 2015 Franchise Herald. All rights reserved.
>>>>>>> 10460c7d066ded6bd40ea293096592303635a9b7 <<<<<<< HEAD ======= >>>>>>> 10460c7d066ded6bd40ea293096592303635a9b7
<<<<<<< HEAD ======= >>>>>>> 10460c7d066ded6bd40ea293096592303635a9b7

Connect With Franchise News

Email Newsletter

TOP 10 FRANCHISES OF 2020

  • RANK
    FRANCHISE NAME
    STARUP COSTS
  • 1nc
    Hampton Hotels
    $3.7M - 13.52M
  • 2nc
    Subway
    $85.2K - 260.35K
  • 3up
    Jiffy Lube Int'l. Inc.
    $196.5K - 304K
  • 4down
    7-Eleven Inc.
    $30.8K - 1.64M
  • 5up
    Supercuts
    $103.55K - 196.5K
  • 6up
    Anytime Fitness
    $56.3K - 353.9K
  • 7down
    Servpro
    $133.05K - 181.45K
  • 8down
    Denny's Inc.
    $1.18M - 2.4M
  • 9down
    McDonald's
    $1M - 2.16M
  • 10down
    Pizza Hut Inc.
    $295K - 2.15M
Real Time Analytics