that the consortium of NBC Universal, along with private equity firms Blackstone Group LP and Bain Capital are the lead with a $3.5 billion bid against their top competitor Time Warner Inc. CBS fell out of the auction after scooping up Cnet Networks Inc. for $1.8 billion last week.
A winning bid by NBC and the private equity firms would offer both parties benefits as they attempt to add value to the Weather Channel. Corporate Dealmaker's Suzanne Stevens
For Blackstone and Bain, there are some obvious benefits to teaming up with NBC U. With credit markets tight, it brings capital and network management expertise to the table. It also owns the rival weather property NBC Weather Plus, which could offer opportunities for cost cutting. Finally, NBC U could buy out its partners down the line, providing a smooth exit for the PE firms.
So, what's the motivation for NBC U? It's just a guess, but Blackstone has experience restructuring in the television industry -- Adelphia Communications Corp., Charter Communications Inc. and Bresnan Communications, among other cable system and television operators. And while the Weather Channel has been a solid performer for privately held parent Landmark Communication Inc., if there's any reconfiguring to be done, NBC U may be happy to leave the work to its PE partners.
It's turned out to be only partly sunny for Landmark Communications Inc. in the auction for the Weather Channel as final bids only reached as high as $3.5 billion, instead of the $5 billion the company had hoped for when it put the unit on the block.
