by Cynthia Littleton via Variety.com
Adding another pillar to his growing TV and film portfolio, Byron Allen’s Entertainment Studios has reached a deal to acquire cable’s Weather Channel in a transaction valued at about $300 million.
Entertainment Studios is buying the Weather Group, parent company of the cabler and the Local Now streaming service, from Comcast and private equity giants Blackstone and Bain. That group purchased Weather Channel for $3.5 billion in July 2008. The digital operations of Weather Channel were acquired in 2015 by IBM in a deal pegged at around $2 billion.
“The Weather Channel is one of the most trusted and extremely important cable networks, with information vitally important to the safety and protection of our lives,” said Allen, who is chairman-CEO of Entertainment Studios. “We welcome the Weather Channel, which has been seen in American households for nearly four decades, to our cable television networks division. The acquisition of the Weather Channel is strategic, as we begin our process of investing billions of dollars over the next five years to acquire some of the best media assets around the world.”
The Weather Channel, which made its on-air bow in 1982, is one of cable’s most well-known brands but its linear prospects have been challenged by the ubiquitous availability of weather-related data via digital sources. Nonetheless it’s a big step for Allen’s company, which already operates eight linear TV channels including Pets.TV, Comedy.TV and Cars.TV that target niche audiences. Weather Channel will be the most widely distributed outlet in Allen’s portfolio.
“We are excited to join Entertainment Studios, and we are especially proud to be part of one of the largest emerging global media companies,” said Dave Shull, CEO of Weather Channel. “Byron Allen’s purchase of our innovative and forward-thinking organization will increase the value we bring to our viewers, distributors, and advertisers.”
Allen’s Entertainment Studios has also been moving aggressively in the independent film arena in recent years with the launch of Entertainment Studios Motion Pictures. Last year the fledgling distributor saw respectable box office returns last year from the thriller “47 Meters Down” and the Western “Hostiles.” Allen Group is the sole owner of Entertainment Studios.