Intel Corp wants USD 500 million for online pay TV service OnCue- sources
Sources told Bloomberg that Intel Corp wants USD 500 million for its online pay television service. People with knowledge of the matter said the world's biggest chipmaker is looking to sell OnCue by the end of the year. The people spoke on the condition of anonymity because the discussions are confidential.
According to the people, one of the firms interested in acquiring OnCue is Verizon Communications Inc. They added that Verizon has already initiated talks with broadcast and cable channel owners regarding the terms of a streaming TV service. Earlier, the sources also told Bloomberg that Samsung Electronics Co and Liberty Global were also the other suitors for OnCue.
Intel developed the OnCue system which makes pay TV programming available through any high-speed Internet connection. Servers, set-top boxes and applications that make streaming available to mobile devices like smartphones and tablets form part of the system. OnCue is seen as a threat to cable television companies which make shows available to subscribers by installing dedicated lines in their respective territories.
As the chipmaker backs down on its plan to enter the pay-TV market, Bloomberg reported that a sale of OnCue that follows Intel's asking price will enable the company to recover the costs of developing OnCue while still acting as the chip supplier to the new owner. When Chief Executive Officer Brian M. Krzanich assumed leadership in May, he has concentrated on putting chips into mobile devices and slowed down on Intel's TV efforts, the report added.
Verizon is one of the largest phone and wireless operators in the US. It currently competes with cable providers through its FiOS fiber optic service. The people said OnCue will allow Verizon to sell its pay TV service outside the firm's FiOS system. They added that the firm has been inquiring from media firms if new contracts were necessary for a streaming service or if only amendments to the existing FiOS TV contracts were needed.