Intel is officially out of the Internet TV business.
After months of predictions and rumors, Verizon Communications has agreed to buy Intel's OnCue cloud television unit, a business that had fallen out of favor after Brian Krzanich took over as CEO of the giant chip maker in May 2013.
The two companies announced the deal Jan. 21, though no financial details were released. The acquisition is expected to close early in the first quarter. Verizon will get the intellectual property rights and all the technology that enables the OnCue Cloud TV platform, and will offer employment to the about 350 employees of the Intel Media division.
Krzanich praised the innovative technologies developed by the Intel Media group, and said they will help Verizon as the wireless company looks to expand its reach. The deal also will enable Intel to continue focusing on areas that the CEO said is most important to the chip vendor.
"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," he said in a statement. "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."
Like many other tech vendors, Intel has been hit by the significant slowdown in global PC sales over the past couple of years as more consumer money is spent on tablets and smartphones. The chip maker has been roundly criticized for being slow in responding to the rise of mobile devices, most of which are powered by systems-on-a-chip (SoCs) designed by ARM and made by the likes of Samsung, Qualcomm and Texas Instruments.
Intel officials are driving down the power consumption of the company's Atom platform and Core processors, using them as the basis for its efforts in smartphones, tablets, PCs and new form factors, such as all-in-ones and 2-in-1 systems, which can be used as both a tablet and a notebook. Intel also has created a new family of chips, called Quark, which are small and more power efficient than Atom SoCs and are aimed at the Internet of things (IoT) and wearable computing devices.