NBC, CBS seen bidding for Weather Channel

By Jui Chakravorty Das

NEW YORK (Reuters) - CBS Corp and GE's NBC Universal plan to bid for the Weather Channel in the second round, with bids expected to range between $3.5 billion and $4 billion, people familiar with the matter said on Tuesday.

Privately held Landmark Communications, which has put the channel up for sale along with other businesses, had originally sought $5 billion for the asset, sources have said. The sources asked not to be identified because the talks are confidential.

The bids for the channel, due May 8 from less than five strategic bidders, come after Landmark earlier this year hired JP Morgan and Lehman Brothers to study its options. The first round of bids was in March.

Landmark could not be immediately reached for comment. Both CBS and NBC declined comment.

But CBS Chief Executive Les Moonves, when asked about his interest in cable deals, including the weather channel, said: "We look at everything. There are lots of media deals out there, when they become presented, we look at them.

"There are no plans to announce anything major, but we do look at everything," Moonves said, speaking on the company's earnings conference call.

While considered a prized asset, auction of the Weather Channel has failed to attract private equity as the credit crunch has restricted financing for major leveraged buyouts, sources have said.

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