Intel asks $500m for OTT service

US tech giant Intel is asking potential suitors for US$500m to buy its troubled over-the-top TV service, a project spearheaded by former BBC digital chief Erik Huggers.

The world’s largest computer chip maker is looking to secure a sale for OnCue by the end of the year, according to a Bloomberg report.

Liberty Global, led by US magnate John Malone, is reportedly in talks to acquire the proposed service and would look to incorporate OnCue into its international cable systems.

Other potential suitors include US communications giant Verizon and Samsung, according to Bloomberg.

A sale that meets Intel’s asking price would let the company recoup its costs as it retreats from its plan to enter the pay TV business while still supplying chips to the new owner.

Intel promised to launch OnCue earlier this year but the project is now said to have been sidelined after the company failed to reach content agreements with media firms.

In October, there was also speculation that Huggers was hoping to take the top job at Hulu, amid reports that OnCue was in jeopardy.

If rolled out, OnCue would be able to provide pay TV programming over any high-speed internet connection, making it a threat to cable TV services that deliver shows over dedicated lines installed by territory.