IBM Explores Sale of Weather Business

International Business Machines is exploring a sale of its weather operation, WSJ reported, citing people familiar with the matter, as the technology company seeks to streamline its operations. From a report: An auction of the business is at an early stage, the people said, and there may not be a deal. Should there be one, private-equity is most likely the buyer in a deal that could be valued at more than $1 billion, the people said. IBM agreed to buy the business in 2015, purchasing The Weather Company's business-to-business, mobile and cloud-based businesses including Weather.com, which provides weather forecasts around the globe. The deal price at the time was pegged at more than $2 billion. The Weather Channel wasn't part of the deal, but agreed to license weather-forecast data and analytics from IBM. The deal was part of a push by IBM to use its cloud infrastructure to provide accurate weather forecasts and help companies control costs. The business issues more than 25 billion forecasts a day, according to the company's website. A sale of the weather unit would be a part of a broader push by IBM to streamline its operations as the once-dominant company's shares languish near levels they traded at more than 20 years ago.

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