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Intel slaps $500m price-tag on web TV service

Intel wants to sell its Internet TV service with the asking price for the yet-to-be-launched service thought to be around $500 million [£309 million].

Unidentified sources told Bloomberg that Intel wants to tie up a deal to sell OnCue before the year is out and the $500 million [£309 million] sale would see the chipmaker completely withdraw from the pay TV market.

Verizon Communications is one such company that is interested in the acquisition with Bloomberg’s sources revealing that it has spoken to content providers in order to launch a streaming TV service.

Both Intel and Verizon declined to comment on the rumours.

The game looked to be up for Intel’s TV project last month when rumours started to emerge that Samsung, Amazon and Netflix had all refused to fund the service meaning it would be delayed until 2014.

The company first confirmed the existence of an online TV service back in February after rumours had gathered pace in the preceding months that it was ready to enter the space.

Erik Huggers, general manager of Intel Media, stated that it would sell a set-top box able to stream live TV as well as movies and was capable of providing on-demand content. Reuters also confirmed it had gone as far as to negotiate deals with content providers.

The first doubts about the project going ahead emerged in July when the company’s new CEO Brian Krzanich played down the firm’s plans for a pay TV service with content at the heart of his reasoning.

"We believe we have a great user interface and the compression-decompression technology is fantastic. But in the end, if we want to provide that service it comes down to content. We are not big content players," Krzanich said at the time when questioned on Intel’s TV plans.