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Intel Corp. is reportedly asking for about $500 million for OnCue, the online pay-TV service that the world’s largest chipmaker created but never launched, according to a story by Bloomberg that cited unnamed sources.
Intel is trying to find a buyer by year-end. One suitor, Verizon Communications, has begun talking to other owners of broadcast and cable TV channels about the terms it would offer for a streaming TV service, Bloomberg said.
Intel developed the pay TV service under former chief executive Paul Otellini, but the effort slowed under new CEO Brian Krzanich, who took on the role at Intel in May. The sale price would let Intel recoup its investment in the division. Others who talked to Intel include Samsung Electronics and Liberty Global.
Bill Calder, a spokesman for Intel, declined to comment on the Bloomberg report.
The OnCue system is able to provide pay-TV programs over any high-speed Internet connection. That makes it a threat to cable-TV services delivered over cable TV lines for certain territories. Intel’s system includes servers, set-top boxes, and applications that stream content to phones and tablets, according to Bloomberg.
Verizon has its own FiOS fiber-optic service that provides broadband connectivity and TV services to consumers, in competition with cable TV. OnCue could let Verizon sell pay-TV outside of FiOS.