January 21, 2014
Verizon announced Tuesday it has purchased Intel’s TV service for an undisclosed amount of money.
Intel made the announcement on its blog, revealing that the communications company purchased “intellectual property rights and other assets that enable Intel’s OnCue Cloud TV platform.”
Verizon also plans to offer employment opportunities to the 350 people formerly employed in Intel’s TV unit.
Intel had originally intended to launch its own web-based TV service that would allow subscribers to watch on-demand TV on their Smartphones and other devices.
Intel had promised a product launch by the end of last year, but it never happened.
According to its blog, Verizon has plans to utilize the OnCue platform to make Web TV a reality and plans on providing “next-generation video services to audiences who increasingly expect to view content when, where and how they want it.”
“This transaction provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation,” says Verizon CEO and chairman Lowell McAdam. “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.”
In other words, Verizon plans to build on Intel’s TV service and offer it via it’s FiOS network and to wireless customers.
Intel is playing the sale off as strategic marketing, its corporate vice president, Erik Huggers, calling the deal “the next logical step.”
“Intel provided us with the technological know-how and resources to develop products and services that will fundamentally change the way we experience TV, and now Verizon gives us access to the marketplace and the ability to scale … we’re excited about the road ahead.”
Megan Abraham is a staff writer for SiteProNews.