Boston, MA 03/27/2013 (wallstreetpr) – Intel Corporation (NASDAQ:INTC) is reporting that its talks with Time Warner Cable Inc. (NYSE:TWX), NBCUniversal Media LLC, which is owned jointly by Comcast Corporation (NASDAQ:CMCSA) and Viacom, Inc. (NASDAQ:VIAB) are going well as it works to acquire content for a first-of-a-kind online pay-TV service. This content includes TV programming and films owned by the respective companies. Intel Corporation is the largest maker of chips for computers in the world, with net income of $2,468 million reported in the fourth quarter of 2012 ending December 29 on total revenue of $13,477.00 million.
Access to content, particularly that offered by Time Warner Cable Inc.’s CNN and USA Network and Viacom, Inc.’s MTV, Intel Corporation would be in position to offer critical mass necessary to be a viable alternative to already established pay-TV providers. The company plans on developing and offering a set-top box to offer its online pay-TV product this year.
Intel Corporation is also in financial negotiations with The Walt Disney Company (NYSE:DIS) and CBS Corporation (NYSE:CBS) as well as Fox Films, a unit of New Corp (NASDAQ:NWSA) to purchase additional content for the pay-TV service. According to people close to the discussions, these talks are at a preliminary stage.
CBS Corporation Chief Executive Officer Leslie Moonves mentioned in a February 14 earnings call to investors that the company is in talks with Intel Corporation concerning content for the pay-TV service. Time Warner Cable Inc. Chief Executive Officer Jeff Bewkes also indicated a willingness to offer its content for pay-TV internet based services.
Analyst David Bank at RBC Capital, New York, observed that the results of any deal between Intel Corporation and the media companies will be a financial boon for the media companies. Since offering pay-TV content is new for Intel Corporation, media companies will charge a premium before releasing any content. Intel Corporation shares closed at $21.76, trading down by 2.91%.
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