Intel Wants $500 Million for Internet TV Biz: Report
Verizon is already talking with programmers about streaming content, while Intel also has spoken with Samsung and Liberty, Bloomberg says.Intel reportedly is looking for $500 million for its Internet TV service and wants to finalize a deal by the end of the year. According to a Bloomberg report citing unnamed sources "with knowledge of the process," Verizon Communications officials already are contacting broadcast and cable channels to talk about programming for a streaming service, while Intel executives have also spoken to Samsung Electronics and Liberty Global about the giant chip maker's OnCue service. Intel wants to rid itself of the Internet TV service, which reportedly was spiked by CEO Brian Krzanich after he took over the top spot from Paul Otellini in May, but wants any deal not only to meet the asking priced but to include an agreement that Intel would supply the chips for the hardware, according to Bloomberg. Intel had been working on its ambitious Web pay-TV initiative two years ago as part of Otellini's efforts to expand the reach of the company into new markets in the wake of falling PC sales worldwide, which has impacted such companies as Intel, Advanced Micro Devices, Hewlett-Packard and Dell. The idea was to build an Intel-powered set-top box that enabled consumers to stream TV shows, on-demand content, live events and other services into their televisions and other devices via the Internet. Through the service, users would order and pay for the shows they wanted, without having to pay for content and channels they didn't want.
The OnCue service would have put Intel into tight competition in the TV services market with the likes of DirecTV, Dish and Time Warner Cable, while also running up against such tech vendors as Apple, Google and Sony, all of whom reportedly are interested in developing Internet TV capabilities.