NBC Universal, Bain Capital and The Blackstone Group Sign Agreement to Acquire The Weather Channel Properties from Landmark Communications
NEW YORK, July 6 /PRNewswire/ -- NBC Universal, Bain Capital and The
Blackstone Group today announced the signing of a definitive agreement to
acquire The Weather Channel properties from Landmark Communications. The
Weather Channel will be operated as a separate entity, based in Atlanta,
with management services to be provided by NBC Universal. Financial terms
of the transaction were not disclosed.
The transaction includes The Weather Channel Networks, the
third-most-distributed cable network, seen in more than 97% of cable
television homes in the U.S.; The Weather Channel Interactive, which
includes weather.com, the nation's leading weather website, with nearly 40
million unique visitors per month, and a leading mobile business; and
Weather Services International, a global leader in weather forecasting,
with more than 5,500 clients worldwide. The transaction is expected to be
completed by year-end, and is subject to receipt of customary regulatory
approvals. NBC Universal, Bain Capital and The Blackstone Group announced
on June 13, 2008, that they had entered into exclusive negotiations to
purchase The Weather Channel properties.
Commenting on the planned acquisition, Jeff Zucker, President and CEO,
NBC Universal, said: "This will further position NBC Universal as the
leading provider of news, information and weather, both online and on
television. Joining with The Weather Channel properties plays to our
strengths in developing and programming cable networks, and in producing
and distributing high-quality content across multiple platforms."
Ian Loring, a Managing Director at Bain Capital, said: "We are
delighted to have the opportunity to join our partners in acquiring the
premier franchise in weather information. The Weather Channel is a true
pioneer and innovator in the space across a variety of delivery platforms.
We are extremely excited about the growth potential of the business, and
strongly believe the partnership among the team at The Weather Channel, the
management at NBC Universal, and private equity firms with deep media
industry experience will continue to develop this unique media asset."
Michael Chae, Senior Managing Director at The Blackstone Group, said:
"This is a premier media asset with a unique position across all three
screens -- television, PC, and mobile -- and exciting growth prospects in
each of them. We are looking forward to working toward its continued
success with the management of The Weather Channel, the team at our
corporate partner NBC Universal and our colleagues at Bain Capital."
Landmark Chairman and CEO Frank Batten, Jr. commented: "When Landmark
launched The Weather Channel more than 25 years ago, we could never have
imagined that it would become the multi-platform leader which 120 million
people use monthly. While we are extremely proud of how far we've come, I
know that as part of the NBC Universal consortium, The Weather Channel and
its employees will have increased opportunities for growth."
Landmark President and COO Decker Anstrom added: "The Weather Channel
team has built an iconic cable network and brand, a top 15 website, the No.
1 mobile content provider, the world's leading B2B weather business and the
No. 1 weather radar provider, generating consistently outstanding financial
results and wide recognition as a model employer and leader in diversity.
We deeply appreciate the terrific support that the cable industry has
provided, both at our creation and throughout our development, and we look
forward to a smooth transition with NBC Universal, which has a great track
record in building and growing high-quality news and information
businesses, and its partners."
Upon completion of the transaction, NBC Universal's news and
information assets will include NBC News, MSNBC, CNBC, The Weather Channel,
and their highly trafficked websites. With the addition of weather.com, NBC
Universal and its affiliated websites have a total unduplicated reach of
nearly 70 million visitors per month, ranking No. 7 against all U.S.-based
Internet properties. In addition, NBC Universal will be the leading
provider of news and information on the web, with sites including msnbc.com
and cnbc.com.*
Deutsche Bank Securities Inc. acted as the lead financial advisor for
the consortium with Allen & Co. and Credit Suisse also providing financial
advice. Weil Gotshal & Manges and Ropes & Gray acted as legal advisors for
the consortium.
Deutsche Bank Securities Inc., GE Commercial Finance, GSO Capital
Partners and Sankaty Advisors, LLC will provide the debt financing for the
transaction.
JPMorgan acted as Landmark's financial advisor. Landmark was
represented by the Norfolk, VA firm of Willcox & Savage and the Atlanta
firm of Kilpatrick Stockton. Venable and Skadden, Arps advised on tax and
other specialty issues.
The Weather Channel Properties
The Weather Channel Networks are made up of television networks and
products for radio, newspapers, digital cable services, and interactive
television. The Weather Channel is received by more than 96 million U.S.
households. Weatherscan, The Weather Channel's all-local, all-the-time
service, is distributed primarily on digital cable. The Weather Channel HD
is a service for subscribers with High Definition TV capability and
includes programming content shot in native HD.
The Weather Channel Interactive includes weather.com, and products for
broadband and wireless platforms. The No. 1 destination for weather
information on the web, weather.com reaches nearly 40 million unique users
each month, ranking it among the top 15 most popular websites. In addition,
the company operates the No. 2 mobile business in the U.S., with more than
6 million unique visitors per month.
Weather Services International primarily provides business-to-business
weather services, particularly for the media, aviation, marine and energy
sectors, serving over 5,500 clients in 45 countries. For more than 25
years, WSI has focused on becoming the best in the world at predicting,
detecting, and visualizing disruptive weather.
The Weather Channel also holds a minority interest in Pelmorex, a
Canadian weather company.
NBC Universal
NBC Universal is one of the world's leading media and entertainment
companies in the development, production, and marketing of entertainment,
news, and information to a global audience. Formed in May 2004 through the
combining of NBC and Vivendi Universal Entertainment, NBC Universal owns
and operates a valuable portfolio of news and entertainment networks, a
premier motion picture company, significant television production
operations, a leading television stations group, and world-renowned theme
parks. NBC Universal is 80% owned by General Electric and 20% owned by
Vivendi.
Bain Capital
Bain Capital, LLC (http://www.baincapital.com) is a global private investment
firm that manages several pools of capital including private equity,
high-yield assets, mezzanine capital and public equity with more than $75
billion in assets under management. Since its inception in 1984, Bain
Capital has made private equity investments and add-on acquisitions in over
300 companies around the world, including investments in a broad range of
companies such as Warner Music Group, AMC Entertainment, Burger King, Toys
"R" Us, Cumulus Media, Dunkin' Brands, DoubleClick, Ameritrade and
ProSiebenSat1 Media. The firm has a team of over 300 professionals
dedicated to investing in and supporting its portfolio companies.
Headquartered in Boston, Bain Capital has offices in New York, London,
Munich, Tokyo, Hong Kong and Shanghai.
The Blackstone Group
Blackstone (NYSE: BX) is one of the world's leading investment and
advisory firms. Blackstone seeks to create positive economic impact and
long- term value for its investors, the companies it invests in, the
companies it advises and the broader global economy. The Firm accomplishes
this through the commitment of its extraordinary people and flexible
capital. Blackstone's alternative asset management businesses include the
management of corporate private equity funds, real estate funds, hedge
funds, funds of funds, debt funds, collateralized loan obligation vehicles
(CLOs) and closed-end mutual funds. The Blackstone Group also provides
various financial advisory services, including mergers and acquisitions
advisory, restructuring and reorganization advisory and fund placement
service. Further information is available at http://www.blackstone.com.
Landmark Communications
Based in Norfolk, VA, Landmark is a privately-held diversified media
and business services concern with interests in cable programming,
newspapers, broadcasting, specialty classified advertising products,
interactive marketing, and information, broadband and data services.
Landmark's subsidiaries include The Weather Channel, weather.com, WSI
Corporation (provides B2B weather services); CBS-TV affiliates NewsChannel5
Network in Nashville and KLAS-TV in Las Vegas; Q Interactive (a leading
Internet-based direct marketing company); a number of franchise recruitment
websites; and Continental Broadband. Landmark's newspapers include The
(Norfolk) Virginian-Pilot, the Greensboro (NC) News & Record, The Roanoke
(VA) Times, The Capital (Annapolis, MD), and Landmark Community Newspapers,
which publishes more than 50 community newspapers. Landmark also owns
Dominion Enterprises, a media and information services company serving
employment, real estate, automotive, recreation and industrial markets.
* Source: comScore Media Metrix unduplicated audience report, May 2008
