According to Bloomberg,
) is looking to sell its yet-to-be-launched online pay-TV
service, OnCue and has held talks with potential buyers like
Verizon Communications Inc.
) in this regard. Intel reportedly needs $500.0 million to cover
costs although it's not clear yet whether the service will fetch
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Samsung Electronics and Liberty Global have expressed interest in
the deal but Verizon could be the ultimate winner. Verizon is a
renowned name in the pay-TV business, so OnCue would complement
the business well, thereby consolidating its position.
OnCue was developed to increase competition for cable companies
by providing live TV, streaming and on-demand content over a high
speed Internet connection. In order to test the efficiency of the
service, Intel had already developed servers, set-top-boxes and
applications for smartphones and tablets.
However, Intel (and Otellini) probably did not anticipate the
difficulty in securing content deals, which is the main reason
the service never took off. Once Krzanich took his place, the
company turned focus to core competencies.
Intel will now focus on its core competencies, expanding its core
business lines and by forging manufacturing agreements with other
OEM manufacturers instead of adding new business lines and moving
into the consumer electronics market with flashy new products as
tools for achieving growth.
Intel Corporation is one of the world's largest semiconductor
chipmakers. Intel reported third-quarter revenues of $13.48
billion, within the guidance range of 13.5 billion (+/-$500
million). This was up 5.2% sequentially and 0.2% year over year
Currently, Intel has a Zacks Rank # 3 (Hold). Better ranked
stocks in the same sector include
Microchip Technology Inc
), both with a Zacks Rank # 2 (Buy).