Landmark in direct talks on Weather Channel: sources

By Jui Chakravorty Das and Kenneth Li

NEW YORK (Reuters) - Weather Channel owner Landmark Communications is in direct talks Time Warner Inc and a rival group made up of NBC Universal, Blackstone Group LP and Bain Capital to sell the cable network, sources said Friday.

No more formal bids are expected for the network, which produces national, regional and local weather-related programs, but the two sides are negotiating for the best contract and the best price, sources familiar with the matter said.

The Wall Street Journal also reported that another round of bids were due on Friday, but people familiar with the matter said that was not the case.

A decision will probably be made in the next few days, one source said.

Separately, Time Warner Chief Financial Officer John Martin told investors the company is interested in buying the Weather Channel, but would be cautious about the price.

"A combined CNN-Weather would give us a very, very interesting cross-platform play in an online play," Martin said on Thursday.

"Having said that ... we are going to be extremely price disciplined and price sensitive on this. At a certain level it might make sense."

Time Warner, Blackstone and Landmark declined comment, while NBC and Bain Capital were not immediately reachable for comment.