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INTC Stock – Intel to Sell Internet TV Service to Verizon

Workforce reduction also to come this year


Intel Corp (INTC) is selling its business unit that focuses on online TV products to Verizon (VZ).

After news of the sale, INTC stock did not see much traction.

While the sale figure was not released, INTC previously had been shopping it for some $500 million.

intc stock IntelIntel had been looking to sell the service by the end of 2013 and Verizon had been in talks with the company for some time. Samsung and Liberty Global (LBTYA) also met with the chipmaker to discuss the potential sale of the service.

The online service — OnCue — is seen as a big boost for Verizon as it offers pay-TV programming using a high-speed Internet connection. The service allows customers to stream content on their phones and tablets as well.

The move comes as Intel begins a slight restructuring, which means some house cleaning. On Friday afternoon, Intel confirmed that it would be reducing its workforce by some 5% this year.

“This is not a layoff,” said Intel Spokesman Chris Kraeuter last week. “It’s not a giant, one time action. This is a target employment rate for the end of the year.”

In the past few years, INTC has been hit with declining revenues and rising costs, so both moves intend to push the company forward.

For investors of INTC stock, the chipmaker needs to become less dependent on the slow growing personal computer market. INTC stock investors and insiders are outwardly pushing for the company to become more engaged in mobile technology.

For the year, INTC shares are up about 18%, while the broader electronic technology sector is up more than 30%.

Article printed from InvestorPlace Media,

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