Verizon Communications announced on Tuesday that it would acquire assets of Intel’s digital TV division, a deal that will move it deeper into the television business.þþThe deal, which is awaiting regulatory approval, will most likely enable Verizon to accelerate development of its video service, through which it hopes to be able to stream video to any device.þþThe companies did not disclose the terms of the deal. It is expected to close this quarter after receiving regulatory approval.þþManagers for Intel’s TV unit will now work for Verizon. And Verizon will make employment offers to nearly all of the roughly 350 employees working for Intel’s TV unit.þþ“Intel provided us with the technological know-how and resources to develop products and services that will fundamentally change the way we experience TV, and now Verizon gives us access to the marketplace and the ability to scale,” Erik Huggers, corporate vice president and general manager of Intel Media, said in a statement. “It’s the next logical step, and we’re excited about the road ahead.”þþVerizon’s current television offering is part of a bundle of services called FiOS, which also includes telephone and Internet services. The company has 5.3 million subscribers to its FiOS video service, which is likely to get a quick makeover from the deal with Intel.þþ“They realize the user interface game has moved ahead quickly, particularly with Comcast,” said Craig Moffett, an independent telecom analyst. “This was a make-versus-buy decision for Verizon, where they concluded they could move faster and more effectively by piggybacking on design work that Intel had already done.”þ
Source: NY Times
