IBM to buy digital branch of Weather Company, leaves Weather Channel behind - The Washington Post

In a major shakeup to the weather industry, IBM announced on Wednesday that it will purchase the Weather Company’s digital assets, including weather.com, WSI and Weather Underground, as well as the overarching Weather Company brand. It did not, however, include the Weather Channel in the agreement, leaving the future uncertain for the network’s meteorologists and employees.

IBM is particularly interested in the company’s “big data” platform, which powers both the in-house Weather Company apps in addition to serving up data for 26 billion third-party requests each day. What makes this acquisition interesting is the potential combined power of the Weather Company’s treasure trove of meteorological data and IBM’s artificial intelligence computer, Watson.

At least in part, this acquisition makes good on IBM’s $3 billion commitment to develop Internet of Things-related services. “Upon closing of this deal, the Weather Company will continue to be able to help improve the precision of weather forecasts and further deepen IBM’s Watson IoT capabilities,” said David Kenny, chief executive of the Weather Company.

This deal is one of the best possible outcomes for the digital side of the Weather Company, which can now shift focus entirely to the data and technology side of weather with IBM’s behemoth resources, without distraction from acting as a media company simultaneously.

But while the news is sunny for the digital arm of the Weather Company, the future of the Weather Channel itself — the founding organization and brand since 1982 — is extremely uncertain. When this deal closes, the Weather Channel will still be owned by Bain Capital, Blackstone Group and NBC Universal, and it will be forced to license what used to be its own weather data from IBM.

It’s been a rough couple of years for the 24/7 weather network. In December 2013, the Weather Channel went to battle with DirecTV, which threatened to cut the network from its lineup. The disagreement revolved around carriage fees and the increasing amount of reality television in the Weather Channel’s repertoire, as well as consumers’ digital trends.

Then in March, Verizon FiOS dropped the channel completely, adding the competing AccuWeather channel in its place. Verizon cited the changing habits of consumers in their reasoning for allowing the agreement with the Weather Channel to expire.

Recent changes — including new weather-focused shows like WxGeeks and Weather Underground, and the canceling of most of their reality TV programming — have brought the channel back in favor with its fans and the weather community. But whether these changes will save the channel in an increasingly Web and app-driven weather world is unclear. Consumers are relying less on their TVs and more on their devices for weather information, much of which is provided by the company’s former technology division.

The day-to-day operations will continue as scheduled at the network, while another purchaser is likely sought. “The Weather Channel operates as a distinct and separate business with its own leadership team, which enables this to be a smooth and seamless transition,” said Shirley Powell, chief communications officer for the Weather Company. “We believe a bright future lies ahead for the television business as the most trusted source of weather information.”