NBC Universal a top Weather Channel bidder: source

By Jui Chakravorty Das

NEW YORK (Reuters) - A joint NBC Universal-Blackstone Group LP partnership is a leading contender to buy the Weather Channel cable network, a source familiar with the matter said on Friday.

Time Warner Inc is also in the running, another source familiar with the matter said.

The bids are expected to come in between $3 billion and $4 billion, the sources said, with the winning bid closer to the midpoint of that range. The deadline for bids was moved to Friday from May 8, one source said, adding that a decision could be made as early as next week.

Privately held Landmark Communications, which put the channel up for sale along with other businesses, had originally sought $5 billion for the asset, sources have said.

Weather Channel's time-sensitive broadcasts and programming about hot-button issues on the environment have proven to be attractive to audiences and advertisers, analysts say.

The network produces national, regional and local weather-related programs and has more than 96 million U.S. subscribers. It can be seen in more than 97 percent of all cable TV homes nationwide.

Along with NBC, CBS Corp was expected to be a top contender, but another source familiar with the auction said such a bid appeared increasingly unlikely. CBS last week acquired web media company CNET for $1.8 billion.

Landmark, CBS and Time Warner declined comment on Friday. NBC Universal was not immediately available for comment.

NBC'S WEATHER PLUS

For General Electric Co's NBC Universal, the Weather Channel could be combined with its own digital weather network NBC Weather Plus.

The Weather Channel's website attracts about 35 million unique users each month, Landmark has said. That puts it among the Web's 20 most popular sites, and the top destination for online weather, news and information.

Landmark's interest in selling The Weather Channel comes amid broader shifts in the cable TV landscape. Sundance Channel, the joint venture between CBS, NBC Universal and Sundance founder Robert Redford, was sold to Cablevision for $496 million earlier this month.

Discovery Communications, which includes the Discovery Channel, Science Channel and Animal Planet networks, is expected to become a publicly traded company in the second quarter.

In addition, IAC/InterActiveCorp is spinning off its HSN shopping network as part of a larger restructuring, and E.W.Scripps Co plans to split itself into two publicly traded companies, one that will center on its cable channels and another that will include its newspapers and broadcast TV stations.

(Additional reporting by Kenneth Li and Paul Thomasch; editing by Dave Zimmerman and Derek Caney)