It was first rumored back in October 2013 that Verizon might be interested in acquiring Intel’s internet TV service which failed to take off. While it was rumored that the service might have other suitors as well, Verizon’s name came up repeatedly. Both companies were said to be in direct talks, and it was rumored last month that an announcement was possible within the week. Though the expected time-frame has not quite been met, but Verizon has formally announced that it is going to purchase Intel Media, the division behind its internet TV service.

Verizon has not disclosed terms of the transaction, though it is believed the Intel wanted as much as $500 million for the division. The deal gets Verizon all assets and intellectual property rights behind Intel OnCue Cloud TV, which it will put to use in order to accelerate the availability of next-generation video services integrated with its existing FiOS service. The Intel Media division worked for over two years on this service, the plan was to launch OnCue by the end of 2013. However, the company’s new CEO decided that the chipmaker had to refocus on its core business, so it had to find a new partner for the internet TV service. This ultimately turned into a search for a potential buyer, which we now know is Big Red.

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