Computing giant IBM says it will buy the digital assets of The Weather Company, parent of TV’s Weather Channel.
The deal doesn’t include the TV operations, but is focused on the Weather Company’s range of digital weather information assets including smartphone apps, websites and also data sets. Terms of the deal call for the TV channel to license its weather data from IBM under a long-term contract. Financial details were not disclosed.
In a statement, Dave Shull, CEO of The Weather Channel Television Network, said the network will “continue to be owned and supported by our existing shareholders — Bain Capital, Blackstone and NBCUniversal — and operate as a standalone business.”
The Weather Company is currently owned by two private equity firms — Blackstone Group and Bain Capital — and by NBCUniversal. The three had been contemplating a variety of strategic options for more than a year, and approached several potential buyers. The trio paid $3.5 billion for the company in 2008.
Written by Arik Hesseldahl of Re/Code