Verizon Communications Inc. is reportedly buying Intel’s up-and-coming Internet TV service next week.
Rumors about the acquisition deal have begun in October but none of the two parties involved confirmed it. However, sources familiar to the matter told Wall Street Journal that the largest mobile network operator in the U.S might finalize the deal as early as next week.
Verizon plans to offer below $200 million for the Intel operations – a price way below than the amount expected which was between $300 million to $400 million.
The chipmaker’s plan to create an Internet TV service started in 2012 and was affirmed early this year. The company also intended to launch it by the end of this year. However, the chances of meeting that time frame became impossible, thus prompting Intel to look for partners before the end of summer.
Former British Broadcasting Corp. executive Erik Huggers lead Intel’s Internet-based TV service, which is rumored to be called OnCue, and roughly 350 employees have been working for the project in a separate facility in Santa Clara, Calif.
A new set-top box, on-screen interface software and a farm of server systems to store and deliver content over the internet are all included in Intel’s OnCue offering. However, efforts to license content took time.
If this deal will be closed, it could bring additional video offerings and augment profitable data traffic.
Verizon has been busy buying Internet and video streaming services. A month ago, it announced its plan of buying upLynk, a company that delivers high definition Adaptive Streaming to different platforms, like Android, iOS, Windows 8 and all PC, Mac, and Linux browser combination by encoding video on the cloud using a non-proprietary adaptive streaming system. Another is EdgeCast Networks, a delivery network that could help the carrier place ads and tailor content to individual users with unlimited video streaming service.
