updated 06:12 pm EST, Fri December 13, 2013
Verizon may announce Intel TV buy next week
Verizon Communications could announce a deal to buy Intel's unreleased Internet television startup as early as next week. This according to Bloomberg, which cites sources close to negotiations between the two tech giants as saying that Verizon is quite close to closing a deal for Intel's OnCue service. The communications giant's thinking is that it has the clout to succeed where the chipmaker has so far failed.
Verizon will reportedly roll OnCue into its own pay-TV offerings, a move that would expand its influence in the segment beyond the geographical confines of its existing FiOS fiber-optic service. Details on the price Verizon will pay are unspecific, but Intel was reportedly asking roughly $500 million for the service earlier this year.
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OnCue has been in development for roughly two years, as Intel has been looking to diversify its revenue streams in light of the ongoing downturn in the consumer PC industry. Reports earlier this year had the firm close to a deal with a number of content providers, with an Intel-branded OnCue device slated for release in December of this year. Later reports had Intel offering exorbitant licensing deals to television content providers in order to secure the major television properties for distribution on its service.
Broadcasters and production companies, though, were reluctant to go along with Intel's proposal, which involved offering content a la carte. The current paradigm, which sees customers paying for "bundles" of content, has proven lucrative for many content providers, even at the expense of consumer complaints.
When Intel's chief executive, Brian Krzanich, took control of the company in May of this year, the OnCue project reportedly began to lose steam. Krzanich has been focused on improving Intel's standing in the mobile processor segment, a market where, despite its established standing and brand as a processor maker, it trails ARM.