updated 05:55 am EST, Tue January 21, 2014
OnCue Cloud TV platform could be rolled into Verizon FiOS
Verizon has agreed to buy Intel's Internet television business, the two companies have confirmed. Intel Media, which is working on Intel's OnCue Cloud TV platform, will remain in Santa Clara and continue to use its existing management team, with Verizon hoping to retain the 350 employees in the unit once the acquisition is completed sometime in the first quarter of this year.
It is thought that the technology behind OnCue will be rolled into Verizon's own paid television services, through both Verizon FiOS and online. The entire project has had trouble gaining traction, with content deals from pay-TV companies being slow to complete, and with reports suggesting that Intel offered content providers up to 75 percent more for licensing when compared to normal cable provider rates.
Intel CEO Brian Krzanich
In a joint statement, Verizon CEO and chairman Lowell McAdam said "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." Brian Krzanich, CEO of Intel, advised that "the critical factor in gaining efficient access to content is based on your ability to scale quickly in subscribers and end users, which is why selling these assets to Verizon makes perfect sense, with its millions of FiOS network and wireless customers." Krzanich also claims that the sale will let it refocus on other important computing products.
Though terms of the deal remain undisclosed, earlier reports speculated the purchase to cost Verizon $500 million.