IBM Eyes Sale Of Weather Business Worth $1B: Report

International Business Machines Corp IBM is reportedly weighing a sale of its weather operation. An auction of the business is at an early stage.
A private equity is the most likely buyer in a deal worth over $1 billion, the Wall Street Journal reports.
Also Read: IBM's 1Q Earnings Face Headwinds From IT Budgets Uncertainty, Says Morgan Stanley Analyst
The report adds that IBM is amid a yearslong makeover, focusing on transforming itself into a hybrid-cloud and artificial intelligence business.
IBM has spun off or divested businesses, including IT infrastructure and data-center management firm Kyndryl Holdings, Inc KD, and sold the healthcare data and analytics assets that were a part of its IBM Watson Health operation.
IBM agreed to buy the business in 2015, purchasing The Weather Company's business-to-business, mobile, and cloud-based businesses, including Weather.com, for more than $2 billion.
The report mentions that the deal was part of a push by IBM to use its cloud infrastructure to provide accurate weather forecasts and help companies control costs.
In January, IBM jumped the tech downsizing bandwagon, shedding roughly 3,900 jobs in the case of Big Blue.
In January, IBM reported fourth-quarter revenue of $16.69 billion, which beat average analyst estimates of $16.4 billion. The company said its top-line results were flat on a year-over-year basis.
IBM's fourth-quarter adjusted earnings of $3.60 per share were in line with consensus estimates.
Price Action: IBM shares closed lower by 1.4% at $128.54 on Wednesday.

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