IBM announced on Tuesday that it is selling its weather unit, which includes The Weather Channel mobile app, Weather.com, Weather Underground, and Storm Radar. The buyer is Francisco Partners, a private equity firm specializing in technology.
The transaction, valued at an undisclosed amount, is set to be completed by April and encompasses the weather unit’s forecasting technology and enterprise data services used in broadcasting, media, aviation, and advertising.
Francisco Partners intends to shift part of the weather business towards consumer engagement, introducing new tools focused on health and well-being.
IBM, however, will retain access to the weather data essential for its artificial intelligence models. These models, enhanced with NASA satellite data, are designed for environmental, social, and governance (ESG) analysis and climate monitoring.
Deal Includes The Weather Channel and Forecasting Tech, Aligns with IBM’s Focus on AI and Cloud ServicesIBM acquired the weather unit for $2 billion in 2016 and has been considering a sale since at least April as part of its broader strategy to streamline operations. Reports suggested the deal could exceed $1 billion. This move is consistent with IBM’s shift towards concentrating on core areas like software, cloud services, and AI.
A major part of IBM’s focus is Watsonx, an AI development tool unveiled in May, expected to launch in the third quarter. Watsonx aims to lead in user-friendly AI solutions for businesses, addressing the high demand for AI expertise.
It features AI-generated code, an AI governance toolkit, and a library of extensive AI models, which will include weather data from The Weather Company that IBM will continue to use.