GigaOm and The Globe and Mail have great articles on the strategic rationale for Verizon’s purchase of the assets of Intel Media. Specifically, that Verizon is attempting to go head-to-head against it’s former partner, Comcast, in delivering content. Since Verizon bought out Vodafone’s 45% stake (resulting in a clearer vision for the Company) and made some key promotions, it’s not hard to see what Verizon would like to do — namely, build out it’s existing FiOS service and offer TV over the web. Currently, FiOS video subscribers can stream some channels over mobile devices, but it’s a limited selection and most can’t be viewed outside the home. Verizon thinks that in five years, the entire TV market will be ‘over the top’ — TV signals delivered via the web like Netflix, Hulu or Amazon. Some more competition from Verizon wouldn’t be bad for customers so can’t wait to see more of this!
Terms of the deal were not disclosed but Verizon did say it would be offering jobs for most of the 350 employees at Intel Media. The press release can be found here.