Intel seeks $500 million for OnCue Internet TV service

The tech giant is asking potential suitors for $500 million to purchase OnCue, and hopes to finalize a deal before the end of the year.


Intel is asking for roughly $500 million to hand over the OnCue project, an online pay-television service.

According to Bloomberg, the world's largest chipmaker hopes to secure a sale by the end of the year, and potential suitors include U.S. carrier Verizon, Samsung and Liberty Global.

Citing anonymous sources, the publication says that Verizon has begun talking with executives from broadcast and cable channels to ascertain the terms of potential contracts for a streaming television service.

OnCue has struggled since officially launching in February. The streaming television service has fallen by the wayside as Intel's CEO Brian M. Krzanich decided to steer the firm's focus to chip development for mobile devices. Sources told Reuters that the chief executive, who took hold of the reins in May, believes that Intel cannot afford the "distraction and expense" of the project.

However, the sale of the service -- which threatens traditional cable operators by offering programmes online -- could help Intel recoup some of the cost of the project.

This month, Intel chairman Andy Bryant admitted to investors that he was "personally embarrassed" that Intel seemed to have lost its way, as it was caught unprepared for the shift in consumer patterns. As the general public moved away from desktops and notebooks, preferring to spend out on tablets and smartphones instead, Bryant said the company is "paying the price" for not jumping on the bandwagon quickly enough.

As a result, Intel has pledged to quadruple the number of tablets with Intel chips in 2014.