Verizon will purchase intellectual property rights and other assets for Intel's OnCue Cloud TV platform.
"This sale also enables Intel to further align our focus and resources around advancing our broad computing product portfolio in segments ranging from the Internet-of-Things to data centers," said Intel CEO Brian Krzanich.
The intention is to integrate IP-based TV services with Verizon's FiOS video services to further differentiate them from competing cable TV services. This will include interactivity and integration with the Verizon Wireless 4G LTE network.
"The OnCue platform and team will help Verizon bring next-generation video services to audiences who increasingly expect to view content when, where and how they want it," said Lowell McAdam, chairman and CEO of Verizon.
Verizon said this will open up opportunities for mobile video in the future.
"Intel Media's over-the-top TV products are truly innovative and under Verizon's ownership have the potential to change how people interact with content," said Krzanich.
"The critical factor in gaining efficient access to content is based on your ability to scale quickly in subscribers and end users," said Krzanich.
Verizon will also make employment offers to substantially all of the approximately 350-person Intel unit, which will continue to be based in Santa Clara and be led by its current management team.
The transaction is subject to customary regulatory approvals and closing conditions and is expected to close early in the first quarter of 2014.
Flat year projected at Intel