Top Contenders for Weather Channel Emerge
Via WSJ
Top Contenders for Weather Channel Emerge
By MERISSA MARR and SAM SCHECHNER
>EXCERPT
Time Warner Inc. and a partnership between General Electric Co.’s NBC Universal and Blackstone Group LP have emerged as leading contenders to win an auction for the Weather Channel, ahead of Friday’s deadline for a second round of bids, people familiar with the auction say.
NBC Universal may have the strongest case for buying the cable channel. It owns competitor NBC Weather Plus. Owning Landmark’s related WSI Corp., which provides weather data and services to local TV stations, could help it cut costs. But NBC’s bidding flexibility is constrained by Blackstone’s backing of its offer.
Time Warner has emerged as a more aggressive contender than initially expected. While its cable network division has been enthusiastic about the assets, Time Warner’s corporate head office has been distracted with other transactions. Now the head office is also on board, according to people familiar with the situation.
Part of Time Warner’s thinking is that it could twin the Weather Channel with its cable news channel CNN. Like the Weather Channel, CNN is based in Atlanta, offering an opportunity to merge staffs.
>Read it all at WSJ.
I am somewhat intrigued by the possibilities regardless of which scenario plays out. With that said, CNN is the king of weather on cable news.. besides TWC. And I’ve been rather disappointed with MSNBC’s lackluster weather coverage. But, they do have a whole bunch of affiliates via WeatherPlus. IMO, NBC would definitely have more to gain by this acquisition.
Comment by Terance — May 23, 2008 @ 11:25 am
I agree with you Terance. NBC gains the most from this. It would allow Weather+ to be strengthened by a more national cable presence since most of Weather+ airs on digital sub-channels or digital cable. But, at Shell there is the NBC at the Pump stuff.
Comment by Aaron — May 23, 2008 @ 4:38 pm