Intel Corporation (INTC) In Talks With Liberty Global To Sell TV Service

Intel LogoBy The original uploader was VD64992 at English Wikipedia [Public domain], via Wikimedia Commons

Liberty Global PLC (NASDAQ:LBTYA) (NASDAQ:LBTYB) (NASDAQ:LBTYK), a European cable operator is reportedly holding talks to acquire Intel Corporation (NASDAQ:INTC) Media, according to a report from Bloomberg citing unidentified sources. This deal may create problems for Verizon Communications Inc. (NYSE:VZ), which was expected to be in advanced discussions to take over the internet-based subscription TV service.

Buyers with vast experience

Both prospective buyers are immensely experienced in subscription TV. Verizon provides its TV service through its FiOS unit, whereas London-based Liberty Global recently took over Virgin Media for $24 billion. Virgin Media is the second best service provider in the U.K. with about 5 million customers. John Malone’s Liberty Media holds a substantial stake in pay-TV providers including a stake in Charter Communications, the fourth largest company in the U.S.

Launch delayed

Earlier in the year, Intel revealed plans to launch hardware and software allowing access to live TV, on demand TV and content streaming. The launch was supposed to be offered this year, but Intel postponed the launch to 2014.

Hurdles faced by Intel

The chip maker has been struggling to launch the service despite the fact that it hired hundreds of people including Microsoft Corporation (NASDAQ:MSFT) and BBC executive Erik Huggers to lead its business. It even tested the services at the employees’ homes.

Time Warner Cable Inc (NYSE:TWC) and other cable TV providers have been convincing other channel owners to break the deal with Intel and also with other internet based TV providers, which made it tough for Intel to seal a partner for TV programming.

Shares of Liberty Global dropped 1.2% to $79.48 on the New York exchange yesterday. Year-to-date, shares are up 26%. Intel Corporation (NASDAQ:INTC) shares gained 0.3% yesterday and year-to-date the stock is up 17%.

A spokesman for both Intel and Liberty Global declined to comment on the development, according to Bloomberg.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at

Be the first to comment on "Intel Corporation (INTC) In Talks With Liberty Global To Sell TV Service"

Leave a comment

Your email address will not be published.