Verizon close to buying Intel’s TV service

intel-screenVerizon is near an agreement to purchase Intel’s internet-based pay-TV startup OnCue, according to Bloomberg.

Verizon will use OnCue to extend its pay-TV offering beyond the footprint of its FiOS fibre-optic service. Such a move would bring more competition to cable companies, as well as to satellite DTH platforms with wide coverage that lack the interactive capability of the internet.

Intel has been developing its over-the-top TV service for a number of years, but the company changed its strategy by deciding to sell of this business unit and seeking around $500 million for it. However, recent reports suggest that Verizon is willing to pay $200 million or less for the venture.