Verizon has reportedly agreed to buy Intel's Internet Television startup for less than $200 million.
On May 2013, under its new CEO Brian Krzanich, Intel started focusing on reviving Intel's effort to win chip orders from smartphone and tablet makers. As a result, the company decided to let go of its Internet TV efforts and began searching for a buyer.
According to sources of Bloomberg, the telecommunications network and the multinational semiconductor chip maker announced that they have finally closed the deal. Also, roughly 350 staffs of Intel, led by former BBC executive Erik Huggers, will be absorbed by Verizon.
As part of the agreement, the Santa Clara, Calif.-based telecoms will purchase intellectual property rights and other assets associated with the Internet TV's platform.
The purchase, which will be offered as an Internet-based service on mobile devices and outside of its coverage area, will hasten the production of new features for Verizon's FiOS network, a fiber-optic home broadband service.
Verizon CEO Lowell McAdam stated, "We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices."
Additionally, in a statement to Media Post, McAdam said, "Verizon already has extensive video content relationships, fixed and wireless delivery networks, and customer relationships in both the home and on mobile. The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it."
Intel's TV, which is called OnCue, is designed to offer pay-TV programming over high-speed Internet connection. It is seen as a threat to cable television services. Its system includes servers, set-top boxes and applications that can stream content to TVs, mobile phones, and tablets.
Verizon is not the only company attempting to launch an Internet TV service, Sony Corp. is also reportedly doing the same as announced during the Consumer Electronics Show in Las Vegas.
