It’s confirmed: Verizon is buying Intel’s OnCue TV service

OnCue, meet your new owner: Verizon (S VZ) is buying the assets of Intel’s (S INTC) Intel Media unit, both companies announced Tuesday morning. “The transaction 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,” according to a press statement sent out by Intel and Verizon.

Terms of the deal were not announced, but the final price is believed to be somewhere in between the $500 million Intel had asked for and the $200 million Verizon had offered. Both companies are expecting to close the deal in the first quarter of 2014. Reports about Intel selling Intel Media to Verizon first surfaced in October.

Verizon said Tuesday that the transaction included “intellectual property rights and other assets that enable Intel’s OnCue Cloud TV platform.” Part of the deal is also a future for “substantially all of the approximately 350-person Intel unit,” which will continue to be based in Santa Clara and led by its current management, including Intel Media boss Erik Huggers.

Intel first officially announced its plans to enter the TV biz in February of 2012, with Huggers saying at the time that the service would be available to consumers before the end of last year. Intel didn’t reveal the branding of the service at the time, but Gigaom broke the news in July that it was going to be called OnCue.

Intel tested Oncue with 3,400 employees across three of its campuses. The service consisted of live TV programming as well as a catch-up offering that would allow consumers to watch anything they had missed within the last few days on any network. Intel’s plan was to produce its own set-top box, and also make OnCue available via mobile apps.