IBM considers sale of weather unit as part of streamlining efforts; deal likely valued at over $1B

RALEIGH — IBM is reportedly exploring a sale of its weather operation as part of its efforts to streamline its operations. According to a recent article in the Wall Street Journal, an auction for the business is in the early stages and private equity is the most likely buyer, with the deal valued at over $1 billion.

IBM acquired The Weather Company’s business-to-business, mobile, and cloud-based businesses, including Weather.com, in 2015 for more than $2 billion as part of an effort to provide weather forecasts and help companies control costs using its cloud infrastructure. The Weather Channel was not included in the deal but licensed weather forecast data and analytics from IBM.

IBM has since divested businesses, including Kyndryl Holdings Inc. and its healthcare-data and analytics assets, to focus on its hybrid-cloud and artificial-intelligence business strategy.

In January, the company said it would shed about 3,900 jobs.