The combination of technology and expertise from the two companies will serve as the foundation for the Watson Iot Cloud platform, building on a US$3billion commitment IBM made in March last year to invest in the Internet of Things.
The acquisition includes weather.com, Weather Underground, The Weather Company brand and WSI, its global business to business brand.
The Weather Channel is an American-based weather forecast TV channel which delivers up to 26 billion forecasts daily and is one of the world’s largest IoT data platforms.
"The Weather Company's extremely high-volume data platform, coupled with IBM Cloud and the advanced cognitive computing capabilities of Watson, is unsurpassed in the Internet of Things," said John E. Kelly, IBM's senior vice president, cognitive solutions and research.
"This rich platform provides our clients significant competitive advantage as they link their business and sensor data with weather and other pertinent information in real-time. We can arm entire industries with deep multimodal insights to help enterprises gain clarity and take action on the oceans of data being generated around them."
The deal sees David Kenny, who was chairman and CEO of The Weather Company, and previously president of Akamai Technologies, assumes leadership of the IBM Watson platform business.
Kelly said Kenny brings deep expertise in building platforms used by tens of millions of people daily as IBM continues to scale the Watson technology platform. He will oversee the build out of the Watson partner and developer ecosystem, key APIs and emerging solutions powered by Watson.
Kenny joins Harriet Green, formerly CEO of Thomas Cook, who leads Watson IoT, Education and Commerce, and Deborah DiSanzo, formerly CEO of Philips Healthcare, who leads Watson Health.
Michael Rhodin, who launched the Watson business and drove the formation of Watson Health and Watson IoT, will now lead Watson Business Development, and will identify and incubate the next major industries and domains for Watson as well as overseeing a related acquisition strategy.
The Weather Company will be led by Cameron Clayton, who was most recently its president, product and technology, and becomes part of IBM's Data and Analytics Platform business unit.