This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Verizon Gets Stronger TV Signal With Intel Assets

NEW YORK ( TheStreet) -- Intel (INTC - Get Report) and Verizon (VZ - Get Report) forged an imaginative transaction that turns out to be a win-win for both companies.

Last week's deal, plus Verizon's planned acquisition of the part of Verizon Wireless it doesn't already own, will put the company head to head against such competitors as Netflix (NFLX).

Who would have thought the combined imagination and financial prowess of Verizon and Intel would complete a deal that gives Intel a much-needed cash infusion and Verizon some precious technology to be able to offer an online pay-TV service?

On Jan. 21, Verizon and Intel announced VZ will buy the intellectual property rights to Intel's TV technology. The purchase price was approximately $200 million, and with Intel's latest struggles to increase income and revenue that would turn out to be a hefty shot in the arm while calming the fears of some investors who wonder if Intel will be able to raise its dividend payout sometime soon.

The official INTC press release revealed just enough to confirm rumors that had been floating around. The deal, it says, will "accelerate the availability of next-generation video services, both integrated with Verizon FiOS fiber-optic networks and delivered 'over the top' to any device. Verizon will purchase intellectual property rights and other assets that enable Intel's OnCue Cloud TV platform."

The deal is expected to close early in the first quarter of 2014, which would imply well before March 31. Lowell McAdam, chairman and CEO of Verizon, said the deal "provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation. We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices."


Translated another way, this huge, imaginative leap empowers Verizon, with that Verizon Wireless buy from Vodafone (VOD), to eventually compete against Netflix as well as Amazon.com (AMZN), which are busy trying to launch their own versions of this TV technology.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
INTC $28.91 -0.34%
VZ $46.67 0.24%
AAPL $122.37 -0.50%
FB $95.21 -1.84%
GOOG $632.59 0.10%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs