Filed under: Deals, TV, General Electric (GE), Time Warner (TWX), Private equity, CBS Corp ‘B’ (CBS), Comcast Cl’A’ (CMCSA)
Whomever purchases The Weather Channel will probably see nothing but blue skies.ss
According to The New York Times‘ DealBook, The Walt Disney Company (NYSE: DIS), CBS Corp. (NYSE: CBS), General Electric Company (NYSE: GE)’s NBC, Time Warner Inc. (NYSE: TWX), Comcast Corp. (NASDAQ: CMCSA) and Liberty Media Inc. (NASDAQ: LINTA) are all vying to purchase the Weather Channel from closely held Landmark Communication.
“Also, a handful of private equity firms, including Bain Capital, Providence Equity Partners and Madison Dearborn have reportedly indicated an interest, though they’re unlikely to be serious bidders because of the tight credit markets,” according to the paper.
Landmark reportedly is anticipating to get $5 billion for the property though bidders tell the Times that $4 billion is a more realistic figure. I would venture that the company will get the higher figure because properties like this don’t often come on the market.
Not only is the cable channel one of the most lucrative, its Web site is wildly popular as well. Unlike CNN, people don’t just tune in when there is big news. Energy traders hang onto the channel’s each word when they make bets on the hugely volatile commodities for oil, natural gas and electricity. People also rely on the company’s forecasts to plan their lives. Moreover, The Weather Channel is in a good position to benefit from the public’s growing interest in global warming.
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