Intel looking to exit TV business: report

Intel looking to exit TV business: report

9:57am EDT

(Reuters) – Chipmaker Intel Corp is having second thoughts about its nascent television service and is in talks with Verizon Communications Inc to take over the business, according to a report on tech website All Things D, citing people familiar with the matter. While discussions were in the advanced stages, it was still unclear if Verizon plans to take full control of Intel’s media unit or Intel would maintain a stake in the unit, the report said. Representatives from Intel and Verizon did not immediately respond to requests for comment. Earlier this year, Intel decided it would launch an Internet TV service with live and on-demand content in a bid to find an alternative revenue stream as its core business of providing chips to computer makers erodes. It’s a crowded field as Apple Inc, Google Inc, Sony Corp and Microsoft Corp jockey for position to own the living room through TV, while Netflix Inc and Inc’s streaming video services have millions of subscribers. Intel has also struggled to reach content deals with media companies.Intel Said to Be in Talks on Verizon Takeover of TV Service

Intel Corp. (INTC) is in talks with Verizon Communications Inc. (VZ) about having the phone company take over its effort to deliver TV over the Internet using a new kind of set-top box, according to a person familiar with the negotiations.

While the two sides have no agreement in place, a deal would probably end Intel’s involvement in the project, said the person, who asked not to be identified because the talks are private. The AllThingsD website previously reported on the discussions.

Intel, the world’s largest chipmaker, had planned to offer a pay-TV service in the U.S. that would compete with Comcast Corp. and DirecTV. (DTV) The idea was to use Intel-designed set-top boxes, which would receive programming via the Internet. Intel’s new management decided to scale back its involvement earlier this year because it wanted to focus on the company’s existing business and efforts to sell more mobile-phone chips, a person familiar with the company’s plans said in September.

Verizon, the second-largest U.S. phone company, already has a pay-TV service. The company has been exploring methods to deliver more of its FiOS video through pathways that are outside the reach of its fiber-optic network, such as wireless and over-the-Internet delivery. The company recently ended a joint development agreement with the cable companies and it has been focused on Redbox Instant as a potential streaming service.

Deidre Hart, a spokeswoman with New York-based Verizon, declined to comment, as did Intel.

Intel shares fell less than 1 percent to $24.50 at the close in New York, leaving them up 19 percent this year. Verizon declined 1.1 percent to $50.53.

Web-Based TV

Intel has been working on a Web-based TV product since at least early 2012. Erik Huggers, general manager of Intel Media and a former British Broadcasting Corp. executive, said in February that the company planned to start service this year.

The service was designed to give consumers access to content across TV sets, smartphones and mobile devices. Intel, based in Santa Clara, California, had planned to offer both live programming and a large library of video-on-demand content.

To contact the reporter on this story: Ian King in San Francisco at

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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