IBM sells The Weather Company assets to Francisco Partners
IBM has announced that it has identified a buyer for The Weather Company, the weather forecasting and information firm it bought in 2015. Company Francisco Partners will buy The Weather Company assets from IBM. The deal’s parameters are not public yet. The deal will conclude by the end of Q1 2024, subject to regulatory clearances and standard closing conditions.
Francisco Partners will be responsible for consumer-facing applications from The Weather Company, such as The Weather Channel mobile, Weather.com, Weather Underground, and Storm Radar. The Weather Company’s enterprise services for broadcast, media, aviation, ad tech, and “data solutions.”
According to IBM, The Weather Company will provide Francisco Partners with its technological platform and forecasting scientific services. After the acquisition, IBM will continue to operate The Weather Channel’s sustainability software division. This includes its “environmental intelligence suite” for ESG reporting. Additionally, it will keep utilizing The meteorological Company’s meteorological data for “climate-related use cases,” such as the geographic AI model it provides in Watsonx, its AI and data platform.
“We’re proud of what The Weather Company team has accomplished with IBM, and we’re confident that the best path forward is as a standalone company benefiting from Francisco Partners’ expanded investment, dedication and expertise,” Rob Thomas, SVP of software and chief commercial officer at IBM, said in a press release. “Over the last few years, we’ve evolved IBM to be a hybrid cloud and AI company. 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.”
IBM’s most recent fiscal quarter saw sales of about $15.5 billion, a 0.4% decrease from last year. The company’s infrastructure division plummeted to $3.6 billion, down 14.6%, while its mainframe business alone lost 30%. With its stock price at its lowest level in more than 20 years, IBM has announced intentions to reduce its workforce by 3,900 individuals, with most of the cuts coming to its Watson AI division and Kyndryl-managed infrastructure business. Additionally, IBM recently sold Watson Health to Francisco Partners in a deal valued at around $1 billion.
“Amid the growing volatility of weather, The Weather Company’s unique set of consumer, media and industry-specific products provide mission critical, data-driven weather insights to individuals and businesses around the world,” Alan Ni, partner at Francisco Partners, said in a canned statement. “We’re excited to partner with the management team to grow The Weather Company’s robust portfolio of technology offerings and deliver a great product experience for its customers.”
