Next round of bids for Weather Channel due in May-sources

By Jui Chakravorty Das

NEW YORK, April 10 (Reuters) - A handful of media companiesare gearing up to submit second round bids for the Weather Channel, although a sale of the asset could go for significantly less than the $5 billion its owners originally sought, two sources familiar with the situation told Reuters.

Fewer than five companies are putting together the second-round bids, which will be due in early to mid-May, the sources said. All the bidders are media companies and the buyer, likely to be announced by early June, could pay as low as $3 billion for the U.S. cable network, the sources said.

Separately, another source briefed on the matter said Time Warner Inc (TWX.N: Quote, Profile, Research, Stock Buzz) is in talks to buy the Weather Channel from privately held Landmark Communications. Landmark announced earlier this year it hired JP Morgan and Lehman Brothers to study its options.

Several sources told Reuters last month that General Electric Co's NBC Universal (GE.N: Quote, Profile, Research, Stock Buzz), CBS Corp (CBS.N: Quote, Profile, Research, Stock Buzz) and Comcast Corp (CMCSA.O: Quote, Profile, Research, Stock Buzz) had examined the financial materials that were assembled for the auction.

It is unclear if any of those companies made a bid for the channel. CBS declined comment and Comcast was not immediately available for comment.

In an interview with Reuters earlier this week, NBC Universal Chief Executive Jeff Zucker declined to comment on whether NBC had made a bid for the Weather Channel but said: "The Weather Channel is a very good opportunity and certainly something we would take a look at."

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.

The Weather Channel appeals to media companies looking to enter cable or expand their holdings, since the network's time-sensitive broadcasts and programming about hot-button issues on the environment have proven to be attractive to audiences and advertisers, industry experts have said.