Verizon Communications has announced the purchase of Intel Media, a division dedicated to the development of cloud television services.
The communications company will take ownership of all intellectual property rights as well as other assets, which include Intel’s OnCue Cloud TV platform.
“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,” said chairman and chief executive officer (CEO) of Verizon, Lowell McAdam.
“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.”
Bloomberg reported last year Intel wanted to sell their OnCue service for US$500 million, allowing it to recoup the costs of establishing the business.
The announcement comes just a few days afterthe company publicised it would be reducing its global workforce by five per cent, the equivalent of about 5,000 positions.
Verizon is planning on integrating the IP based video service with FiOS fibre optic service bundle, creating a further divide between TV.
“FiOS customers are also expected to benefit from elegant search and discovery, interactivity and cross-screen ease of use – integrated with the Verizon Wireless 4G LTE network,” Intel said in a statement.
The terms of the transaction were not disclosed but it is expected to be finalised early in the first quarter of 2014.