Telecommunications giant Verizon has made a major purchase from Intel that will expand its offerings of Web-based television services.
In a joint statement Tuesday, the two companies announced an agreement for Verizon to acquire Intel's online TV assets, including the OnCue cloud TV platform, for an undisclosed sum. (Via Al Jazeera)
Though the terms of the deal were not disclosed, previous media reports indicate Intel was seeking around $500 million for the Santa Clara-based media division, which boasts around 350 full-time employees.
The move highlights a growing focus on video content delivered via the Web as opposed to broadcast or cable-based TV technology. (Via YouTube / TomsTop5)
Verizon executives say the move will allow them to use Intel media technology to deliver video content over both its fiber-optic home broadband service, FiOS, and its 4G wireless network. (Via YouTube / International CES)
In a statement, Verizon said: "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." (Via Intel)
CNET explains Intel media worked two years to build OnCue, a subscription-based service that would allow "users to watch live TV, recently aired content and ... on-demand programming in their homes and on mobile devices."
The company finished the product; however, The Verge says it went up in smoke after it wasn't able to get the content it needed.
That's where Verizon, with its "extensive relationships with content providers," comes in. Intel will provide the technology and Verizon the network to deliver content.
The deal marks Verizon's second Web-based acquisition in as many months. Last month the company purchased Internet startup EdgeCast Networks for an undisclosed sum.