As expected, Verizon (NYSE: VZ) has agreed to buy Intel's over-the-top video project Intel Media from Intel (Nasdaq: INTC). The companies had reportedly been in advanced negotiations over Intel Media's would-be OnCue product since late November.
The deal will help speed the deployment of "next generation video service, both integrated with Verizon FiOS fiber-optic networks and delivered 'over the top' to any device," the companies said in a press release. Terms weren't disclosed; Bloomberg had reported last year that Intel wanted $500 million for OnCue.
After the deal closes, Verizon will probably first focus on using the technology it is acquiring to improve its FiOS pay-TV product. Eventually, the company could expand the "breadth and scope of its video offerings," to include mobile in the future, the press release said.
Selling to Verizon gives Intel Media "access to the marketplace and ability to scale," Erik Huggers, the Intel executive in charge of the project said in a press release.
For more:
- see the press release
- and FierceCable's coverage
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