Tech website All Things D cited sources who said Intel Corp had been planning to do away with its television service business. All Things D also said in its report that the chipmaker had been engaging with Verizon Communications Inc to reach a buyout agreement. The report disclosed that it was unclear whether Intel would be turning over the full control of its business to Verizon or if the former plans to retain an ownership stake.

Intel decided to tap the television market by launching an an Internet TV service earlier this year. Reuters said the venture was an alternative way for Intel to generate revenue as it struggled with its core chip-making business.

Intel's television unit offered real-time and on-demand content to customers. However, Intel struggled to gain a significant market share as it had entered into an already saturated market. Apple Inc, Sony Corp and Microsoft Corp, and Google Inc had been fighting for the major market share in Internet TV. Netflix Inc and Amazon.com Inc, on the other hand, are veteran service providers with millions of subscribers who had availed their streaming video services.

When asked for comment about the deal, Intel and Verizon had not immediately responded to Reuter's request for a statement.