Intel Seeking $500 Mil Unload Internet

Intel wants to sell its over-the-top pay TV service for $500 million, while Verizon — one of the potential buyers — has been discussing Internet distribution rights with programmers, Bloomberg reported.

Intel, after spending more than two years developing a set-top box and service that would challenge incumbent cable and satellite TV services, has abandoned efforts to launch the offering. Originally, execs had expected to debut the service by the end of 2013.

Intel and Verizon reps declined to comment on the report.

SEE ALSO: Why Intel’s Huge Project to Challenge Pay TV Could End Up in Pay-TV Land

John Malone’s Liberty Global and Samsung Electronics have also met with Intel to discuss acquiring the OnCue division, according to reports.

Intel Media, led by former BBC exec Erik Huggers, hired more than 350 employees and took over a building on the chip maker’s Santa Clara, Calif., campus. But after the arrival of CEO Brian Krzanich earlier this year, Intel has tabled the project to refocus on core semiconductor business.

“(W)e believe the problem is Intel’s appetite for the size of the financial risk required to launch, which includes large commitments to programmers, direct-to-consumer marketing, subsidized consumer premises equipment and the buildup of a subscriber support team,” BTIG Research analyst Rich Greenfield wrote in a note earlier this month.

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