IBM Edges Closer To Buying Weather Co.

IBM Headquarters

IBM is nearing a deal that would give the company all of the digital and data assets of Weather Co., owner of the Weather Channel.

The $2 billion could be announced as early as Wednesday, a source close to the deal told Fox Business.

IBM would own the rights to the company’s digital businesses, such as the website, app,¬†intellectual property, infrastructure and data.

The company’s Weather Channel property is not part of the estimated $2 billion deal.

IBM is particularly interested in Weather Co.’s forecasting group, WSI. That division collections billions of points of data which is then sold to insurance companies and other interested parties.

Weather Co. is owned by a consortium that includes private-equity firms Bain Capital and Blackstone Group, and Comcast’s NBCUniversal. They bought the company in 2008 for roughly $3.5 billion.

Weather Co. Chief Executive David Kenny is expected to join IBM after the deal closes.

Weather Co. has been attempting to court a new buyer for some time now. Last year the company approached Google but the tech giant wasn’t interested in an acquisition.

Weather Co.’s data and forecast information is already being pushed out via IBM cloud computing and the tech giant also provides Weather Co. with analytics.


Written by Lane Hanson

Lane Hanson

Lane Hanson is BusinessPundit's Economy Editor. He reports on major changes in the US and Global Economies. He can be reached at College Reviews.