IBM (NYSE:IBM) will keep its attention and resources focussed only on the metaphoric cloud going forward, as it today announced the sale of its weather media interests which include The Weather Channel.
The Weather Company, the holding company that owns the channel and associated assets, is being sold to private equity buyer Francisco Partners with the deal comprising all IBM's digital consumer-facing offerings including the TV channel along with the weather.com website and domain.
IBM will, however, as part of the deal, retain access to weather data for its AI-driven climate modelling systems that power business-to-business intelligence products.
A deal value was not disclosed in the statement though reports earlier this year, in April, rumoured that IBM was seeking a sale of at least US$1 billion.
IBM highlighted that the transaction will help the company focus more on key business drivers like AI and cloud computing services.
"Over the last few years, we've evolved IBM to be a hybrid cloud and AI company,” Rob Thomas, IBM senior vice president, said in a statement.
“We regularly review our portfolio to make sure our business areas are core to that strategy, and today's news reflects our continued focus on these two transformational technologies."
Thomas added: “We're proud of what The Weather Company team has accomplished with IBM, and we are confident that the best path forward is as a standalone company benefiting from Francisco Partners' expanded investment, dedication and expertise.”
IBM expects the transaction to close in the first quarter of 2024, subject to regulatory approval.