Verizon Communications and Intel have announced an agreement for Verizon to purchase Intel Media's assets.
Revealed Tuesday, the U.S. carrier and tech giant said that the acquisition "will accelerate the availability of next-generation video services," delivered across Verizon FiOS fiber-optic networks and "over the top" to any device. The intellectual property rights for the technology which supports Intel's OnCue Cloud television platform now belong to Verizon, and the unit's 350-employee team will continue to work in Santa Clara, led by the same management.
Financial terms of the deal were not disclosed, and the transaction is expected to close in Q1 2014.
Lowell McAdam, chairman and CEO of 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. 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."
Once the transaction is closed, Verizon expected to integrate IP-based TV services with FiOS video to reduce ongoing deployment costs and 'differentiate' FiOS from traditional cable television features. The firm says it expects the deal to become a springboard for future video and mobile services in the future.
Last year, reports suggested that Intel was asking potential buyers for. Due to the decision of Intel's CEO Brian M. Krzanich to steer more towards chip and mobile than television, the service has struggled since its launch in February last year. At the time, Verizon, Samsung and Liberty Global were touted as potential buyers.
In December, the New York-based firmin a deal believed to be worth $350 million. According to Verizon, the acquisition will hep the firm better enable site delivery services and offer content to media firms, retailers and enterprises. In addition, Verizon purchased upLynk technology which streamlines the upload and encoding processes associated with live and video-on-demand content.