Intel is looking to sell off OnCue, a web-based TV service startup, for about $500 million.
According to Bloomberg, Intel had been developing OnCube, but had recently decided to change plans and instead sell it off.
A source told the news site that Verizon Communications could potentially buy the startup from Intel, but first it was talking with broadcast and cable channels over the issue. Other companies that have looked into the purchase are Liberty Global Ltd. and Samsung electronics Co.
The $500 million price tag would let Intel recoup development costs for OnCue and supply chips to whichever company purchased the startup.
Variety reports that Intel had originally planned to launch OnCue towards the end of 2013. The chip company had been developing the streaming TV service for the past two years.
Since the hiring of Brian Krzanich to be CEO, Intel has altered its focus back to its primary semiconductor business and so OnCue was put up for sale.
BTIG Research analyst Rich Greenfield noted, "we 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."
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