Verizon is in final stage of the deal to buy Intel’s internet-based TV business, OnCue for approximately $200 million and the deal might close this week itself.
Intel was first seeking for the partners with existing internet subscriber base or content rights and later was also looking for OnCue buyers for $500 million in November, but after all bargains and checking, Verizon will be buying the internet TV business for merely $200 million or lesser.
But, Wall Street Journal said,
One person familiar with the talks said a deal with Verizon at one point had been expected to close before the end of November, with Intel seeking between $300 million and $400 million.
Intel began to focus on TV business in 2011, when it hired Erik Huggers, former BBC and Microsoft executive to lead the OnCue project and the service would have been started as subscription OTT service by anytime now via set-top box, as planned, but it seems to be selling it before starting the service to public.
Some rumors also points that Intel’s decision to ditch the TV business and focus on its core microchip business has came after the board elected Brian Krzanich as the firm’s CEO.
What will be the benefit of OnCue for Verizon? Bloomberg noted,
Verizon, the second-largest U.S. communications company, will use OnCue to extend its pay-TV offering beyond the geographic footprint of its FiOS fiber-optic service. That could shake up pay TV, by bringing more competition to cable companies that dominate territories, as well as satellite companies with wide coverage that lack the interactive capability of the Web.