Ironically, The Weather Channel was one of the few divisions that consistently made a profit.
IBM’s strategy to divest itself of its profitable divisions?
When I started in the IT business doing Tech support in 1981, IBM was the undisputed leader of the computer industry, and no one was a close second.
Now they are ditching the weather channel and basically a forgotten company run by bean counters.
Yes, and at a loss of 50% of what they paid for it 7 years ago. Great business model.
IBM doesn’t own the Weather Channel:
The Weather Channel (TWC) is an American pay television channel owned by Weather Group, LLC, a subsidiary of Allen Media Group.[2][3]
The Weather Channel was a subsidiary of the Weather Company until the latter was bought by IBM in 2016.[7][8] The Weather Channel licenses its weather data from IBM.[9]
https://en.wikipedia.org/wiki/The_Weather_Channel
It worked wonders for GE :)
BTT
Yes, because that is the division that is worth something.
Having been through this a few times, being the profitable division sometimes means you are sold to support the “real” business.
It makes sense to sell something that makes a profit. That is attractive to a buyer. They probably have lots of "assets" that aren't attractive to a buyer.
The article suggests that IBM is losing money on the deal.