Intel wants $500 million for an online pay-TV service that nobody got to use.
Called OnCue, the service provides pay-TV programming over an internet connection. Intel dreamed up OnCue during a time when it reportedly wanted to explore new spaces. Such ambitions have since dissipated, largely thanks to Brian Krzanich, Intel's new chief executive officer, who prefers to focus Intel's efforts on mobile device chips.
Bloomberg, citing unnamed sources, reported that Intel developed set-top boxes, servers and mobile streaming apps for the OnCue platform. And now the company wants to sell everything. It hopes to recoup all costs by the end of 2013. Intel's asking price? A cool $500 million.
It seems Verizon is one of a few companies currently interested in spending a half-billion dollars on the failed business, and it already started talking with broadcasters about terms for the streaming TV service. Samsung Electronics and Liberty Global also reportedly met with Intel.
Nothing is set in stone yet. But this new report echoes what Reuters already claimed last week. That is, Krzanich believes Intel "could not afford the distraction or expense" of creating a new product in a new market.