Intel is asking for $500M for TV business

November 26, 2013 08.02 Europe/London By Robert Briel

intel-screenBloomberg reports Intel has set an asking price of $500M for the assets of its would-be Web TV service, and is hoping to reach a deal by year’s end.

According to Bloomberg Verizon is looking to use the Intel’s TV platform as a springboard to offer its own web TV service, one that would expand its TV footprint to areas not covered by its FiOS network.

Verizon has reportedly been asking content owners if it would need new contracts to offer a Web TV service, or if it could simply amend its FiOS deals.

Earlier, Bloomberg also reported that John Malone’s Liberty Global was interested in acquiring the fledgling TV business from Intel. Korean manufacturer Samsung was also said to be interested in acquiring the business.

Called OnCue, the company has been developing its own over-the-top TV platform with a new UI and a cloud PVR for its service. The company hired Erik Huggers to run the project. However, since Intel’s new CEO Brrian M. Krzanich took the reins, the company has been trying to offload the TV business.

Broadband TV Views. Intel retracting from the TV business is yet another example of a relative outsider who thought it could game change the TV business by setting up an OTT TV platform.

One of the reason the venture did not materialise were the financial demands the rights holders were making – forcing Intel to spend hundreds of millions of dollars before even starting the business.

Microsoft and Google also tried their luck jun entering the TV business and so far have not been very successful.

And so far Apple TV never materialized except for Steve Jobs’ hobby project Apple TV set-top box.

All these instances show that the traditional TV business (and for that matter, also the Hollywood movie studios) seem determined to keep new players out of the market – or at least make life very difficult for them.