Verizon Communications, a New York based broadband and telecommunications company, will soon be buying Intel Media, a unit of the company for delivering movies and more to televisions via the internet cloud.
The deal amount is still undisclosed, however as per the previous reports, Intel was looking for a USD 500 Mn proposition. As per Verizon, the buyout will finally be closed in next month.
As a part of the deal, Verizon will get access to intellectual property rights and other assets for Intel’s OnCue Cloud TV platform. Verizon will also offer to keep the 350-person Intel unit, which will continue to be based in Santa Clara, California.
OnCue is able to provide pay-TV programming over any high-speed internet connection, making it a threat to cable-TV services that deliver shows over dedicated lines installed by territory. The service could also affect the market of several dish-TV operators.
Originally expected to debut by the end of 2013, it took more than two years of development to make a set-top box and service that would challenge incumbent cable and satellite TV services. Apart from creating set-top boxes for the platform, Intel, during the course of working on the project, developed mobile applications for smartphones and tablets from which subscribers would be able to stream content.
“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,” said Lowell McAdam, chairman and chief executive of Verizon.
Verizon is also looking forward to acquire 45% stake in Verizon Wireless from British-based Vodafone.
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