Verizon and Intel have announced that the former will purchase the assets of Intel Media, Intel's cloud TV arm. As well as acquiring the intellectual property rights and assets of Intel's OnCue Cloud TV platform, Verizon will offer jobs to most of the 350 employees at Intel Media, which will remain based in Santa Clara.
Verizon says that the deal will help to speed up the development of next-generation video services, including its own fibre-optic networks and those delivered "over the top".
"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," said Lowell McAdam, Chairman and CEO of Verizon, in a joint 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."
McAdam stressed that the transaction would provide an opportunity for Verizon to improve the delivery of its video services. Following the purchase, the company plans to integrate IP-based TV services with its fiber-optic services with a view to reducing deployment costs and improving the user experience for its fibre-optic customers.
Intel is expected to refocus on its more traditional market of computing chips, in particular with wearable devices in mind. "This sale also enables Intel to further align our focus and resources around advancing our broad computing product portfolio in segments ranging from the Internet-of-Things to data centers," said Chief Executive of Intel, Brian Krzanich.
The transaction is expected to be completed in the first quarter of this year pending regulatory approvals.