Verizon has agreed to acquire the TV business from Intel. Intel is selling off their TV business in order to focus on their core businesses such as mobile processors. Verizon will gain an edge in delivering live TV over the Internet through the acquisition. Verizon will be using Intel’s OnCue technology for delivering video through their Fios fiber-optic home broadband service and 4G wireless network service.
“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,” stated Verizon Chairman and Chief Executive Lowell McAdam in a statement. “Verizon already has extensive video content relationships, fixed and wireless delivery networks, and customer relationships in both the home and on mobile. This transaction provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation.”
Verizon did not reveal how much they spent on the Intel Media service, but the deal is pegged at hitting somewhere between $200 and $500 million. Verizon and Intel’s CEO’s have been negotiating this deal over the last 3 months. Intel Media employees will become Verizon employees, but will remain in Silicon Valley.