Boston, MA 11/26/2013 (wallstreetpr) – It seems Intel Corporation (NASDAQ:INTC) is not going to carry on with its planned ambitious web television. The company is reported to be seeking for buyers of the plan and hopes to close the deal by the end of this year so that it can concentrate on other revenue growth opportunities. Though the web TV business was yet to see revenue, INTC had already built assets for the business through startup acquisitions. The company is now asking for about $500 million for the assets of the web-TV.
Exiting the TV business is a shift that the company is making in the best interest of its investors given that the situation in which the company operates presently doesn’t offer the best opportunity to take a plunge into media business. Basically, there a lot of issues to do with content acquisition and all that pertain to such media operations. It thus seems wise for the company to recoup the investment dollar in the business by selling it out to interested bidders.
Verizon Communications Inc. (NYSE:VZ) is seen as the likely front runner to acquire the web-TV assets to boost its TV reach so as to capture areas that are not already served by FiOS. Going into web-TV business as an idea that Verizon has been reportedly toying with for a long time and acquiring Intel Corporation (NASDAQ:INTC)’s web-TV assets would be the much needed springboard to launch into this TV segment.
Besides Verizon, another potential bidder is LIBERTY GLOBAL PLC (NASDAQ:LBTYA) which is also seeking to expand its TV coverage with strong web presence. Selling the web-TV assets at $500 million is a good deal for Intel Corporation (NASDAQ:INTC) as it can now use the proceeds to boost its other operations.
With the realization that its business in PC processor making is declining, the company has been avoiding lackluster investments so as to expand its smartphone and tablet processor business to take capture the lucrative dollar in the segment. Intel Corporation (NASDAQ:INTC) is also considering the options of opening its factories for foundry manufacturing in what is viewed as attempts to rival Taiwan Semiconductor Manufacturing (NYSE:TSM) which is already doing that and making good profits out of it.