Chipzilla has confirmed that it is trying to sell its broken streaming TV project to its partner Verizon for half a billion dollars.
OnCue has been having problems getting off the ground since it was officially launched in February. Intel’s new CEO, Brian Krzanich has decided that the problems are terminal and he can’t be doing with the expense anymore.
OnCue is a provide pay-TV programming over any high-speed internet connection. It was supposed to be a major threat to cable-TV services that deliver shows over dedicated lines. Intel developed a system that includes servers, set-top boxes and applications that stream content to phones and tablets.
According to Bloomberg, Krzanich ‘s move happened as Chipzilla came close to sorting out deals with some of the major programmers for content which had been the main sticking point. However, the terms were such that Intel would have faced upfront outlays in the hundreds of millions regardless of how quickly the service caught on.
A $500 million sale would let the company recoup its costs as it retreats on its plans while still supplying chips to the new owner.
It had been widely rumoured that Intel was giving up the ghost on the project, but it seems to think that there is value in selling it off, even if it does not have a ghost of a chance of making any money for years.