Verizon has signed an agreement with Intel Corporation to purchase the assets of Intel Media, a business division dedicated to the development of Cloud TV products and services. The transaction, which is subjected to customary regulatory approvals and closing conditions 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. It will aslo enable FiOS customers to perform elegant search and discovery, enable interactivity and provide 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. Upon the completion of the transaction which is expected to closed early in the first quarter of 2014, 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.
“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.”
Brian Krzanich, CEO of Intel Corporation, said: “Intel Media’s over-the-top TV products are truly innovative and under Verizon’s ownership have the potential to change how people interact with content. The critical factor in gaining efficient access to content is based on your ability to scale quickly in subscribers and end users, which is why selling these assets to Verizon makes perfect sense, with its millions of FiOS network and wireless customers. This sale also enables Intel to further align our focus and resources around advancing our broad computing product portfolio in segments ranging from the Internet-of-Things to data centers.”