...well this is novel.
The Weather Channel properties cost about $3.5 billion to acquire. How Network Weather, a very small startup, would be able to swallow such a big fish is beyond me. It has happened - tiny Capital Cities Communications ended up buying ABC, thanks in large part to Warren Buffet - but it's still unlikely.
That said, I can see The Weather Channel being sold.
Network Weather Channel posted this on Facebook: " *** URGENT MESSAGE FROM NETWORK WEATHER CHANNEL ***
There have been rumors running around that our company should buy The Weather Channel. Yes, we are heavily considering that option and a press release will be put out to the press explaining this situation. More in the coming days. STAY TUNED"
Whaaaaaaaatttttttt. Would NBC even consider that? Can't wait to hear more..
The one thing that I keep saying is that NBCUniversal does not own The Weather Channel. It owns a stake in The Weather Channel. Bain Capital and Blackstone Group hold the rest. In fact, I've heard NBC's stake referred to as a MINORITY one, meaning that Bain and Blackstone probably have more control of the company than NBC.
That said, Bain and Blackstone are private equity firms. They buy companies, they invest into them, and then they eventually sell their stakes or take the company public. They don't own companies forever. At some point they're gonna sell.
What I can see, more than any other outcome, is Bain and Blackstone selling their stakes to NBC/Comcast, giving them 100% control.
And hopefully some adult supervision.
