Boston, MA 12/19/2013 (wallstreetpr) – Verizon Communications Inc. (NYSE:VZ) now remains as the obvious bidder for Intel Corporation (NASDAQ:INTC)’s online television service. Other companies that had been reported to be interested in Intel’s TV venture but have seemingly backed off include Liberty Global and Samsung Electronics.
The deal between Verizon Communications Inc. (NYSE:VZ) and Intel over the online TV service code-named OnCue could material as early as this week according to sources familiar with the talks. The two companies have however not updated their official positions on the matter.
In February this year, Intel started talking much about its set-top-box gadget that could be used to stream Internet television programs on phones and tablets. Then when the company installed a new Chief Executive Officer Brian Krzanich, the talk about the TV service took a backseat. And before long, the company was looking for buyers.
A buy deal for this online TV venture has been dragging on for several months and even the offering price seems to have contracted. Initially Intel was reported to be asking buyers to pay about $500 million for the venture. But the latest reports indicate that the company could settle for $200 million with VZ.
The so-called OnCue was supposed to launch this year to give Intel a stake in the Internet programs streaming business. But change of guard at the company and reality about obtaining programming deals began to bog this dream down. It would not be a bad deal if Intel is able to fetch $200 from this venture.
On the side of Verizon Communications Inc. (NYSE:VZ), it would be an added advantage to the company as it seeks to strengthen its position in the Internet programs streaming business. VZ is also said to be contacting is content suppliers to see if it could roll out new programs through OnCue under the same contracts. Doing this would save the company in operating cost for its new online TV service.
The stock of Verizon Communications Inc. (NYSE:VZ) is trading in the range of $48.32 per share and the company has a market value of $137.79 billion with approximately 2.86 billion shares outstanding.