Verizon will buy the intellectual-property rights of Intel’s cloud-TV platform, the companies said Tuesday. Media reports had said Intel was seeking around $500 million.
For the past couple of years, Intel has been planning a service that would stream television channels over the Internet. The Santa Clara, Calif., company’s set-top box was widely praised by media executives as significantly easier to use than those offered by typical cable-TV operators.
But securing access to TV channels proved to be a challenge. Some programmers said they would offer their content only if peers of similar size jumped in, media executives said. Price also was a barrier as programmers insisted on a premium to protect the cable and satellite companies that are the programmers biggest customers.
The deal will help Verizon, which is based in New York, accelerate its offerings of next-generation video services as its revenue from traditional fixed-line services wanes.
“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,” Verizon Chief Executive Lowell McAdam said Tuesday.
Verizon said it would offer jobs to about 350 employees of the Intel Media division, which is based in Santa Clara. The deal is expected to close this quarter and is subject to regulatory approval.
