SAN FRANCISCO (Reuters) - Intel Corp is trying to sell its yet-to-launch Internet television service for $500 million and wants to complete a deal by year-end, Bloomberg reported on Monday.
Verizon Communications, one of the suitors, has spoken with content providers about a streaming television service, Bloomberg also said, citing unnamed sources.
Intel declined to comment on the report.
Intel’s project, called OnCue, has faced challenges getting off the ground since it was officially launched in February. The chipmaker’s new CEO, Brian Krzanich, ultimately decided Intel could not afford the distraction and expense, sources familiar with the decision told Reuters last week.
While Intel came close to finalizing deals with some of the major programmers, according to industry sources on both sides of the talks, the terms were such that Intel would have faced upfront outlays in the hundreds of millions regardless of how quickly the service caught on, the same sources say.
Reporting by Noel Randewich; editing by Andrew Hay