Verizon has agreed to acquire the Intel pay-TV startup to boost its Internet-based TV services offering. Intel Media is Intel’s division dedicated to the development of Cloud TV products and services.
The transaction will accelerate the availability of next-generation video services, both integrated with Verizon FiOS fiber-optic networks and delivered “over the top” to any device.
Once the transaction is closed, Verizon expects to integrate IP-based TV services with FiOS video to further differentiate FiOS from traditional cable TV offerings and to reduce ongoing deployment costs. FiOS customers are also expected to benefit from elegant search and discovery, interactivity and cross-screen ease of use – integrated with the Verizon Wireless 4G LTE network.
Verizon will purchase intellectual property rights and other assets that enable Intel’s OnCue Cloud TV platform. Verizon will also make employment offers to substantially all of the approximately 350-person Intel unit, which will continue to be based in Santa Clara, CA and be led by its current management team.
The transaction expected to close early in Q1.
Said Lowell McAdam, chairman and CEO of Verizon: “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. 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. We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices.”
RBR-TVBR observation: Back in November, John Malone’s Liberty Global was reportedly in talks to acquire OnCue, the advanced set-top box being developed by Intel since at least early 2012. This type of box, also called a home media gateway, offers features that permit pay-TV service providers to better meet the needs of today’s connected consumer. Some key features are multi-room personal video recording, streaming IP video, and support for TV Everywhere.