Tomahawk, WI 01/23/2014 (BasicsMedia) – Verizon Communications Inc. (NYSE:VZ) has announced a deal with Intel Corporation. In this deal, the latter will sell its video services to the former. The deal between the two giants started when Intel announced its plans to launch a Smart TV service. However, it discovered that the road to achieving its vision was full of numerous roadblocks it could not surmount, primarily due to the huge amount of vested interests in matters to do with television industry. Intel was unable to overcome these challenges simply because it lacked the capacity to handle them well.

Verizon Came to Intel’s Rescue

The challenge that Intel had to contend with was that its services would help improve the overall experience in viewing television using its set top box. It seems most of the content providers it went to were afraid of helping Intel to launch a service that would later lead to death of their businesses. Eventually Intel saw the wisdom in selling this program to Verizon, which has the financial clout required to set foot in the television industry, and give consumers what they really want. With this deal between the two giants, customers will now enjoy Intel’s better technology.

Verizon had always wanted to go deeper into television and video entertainment services. With this deal, it now has the chance of actualizing its dream.  Therefore, VZ hopes that this deal with Intel will help it to be a more competitive player in terms of providing and delivering the highest quality of content. This deal comes hot in the wake of the previous ones that have seen Verizon successfully acquiring upLynk and EdgeCast, two companies that had already simplified and expedited the process of delivering content for online video services.

Deal With Intel Will Make Verizon More Competitive

The deal that Verizon has signed with Intel, will give it the platform it needs to provide stiffer competition to its erstwhile rivals in this industry, Time Warner and Comcast. When the technology developed by Intel in terms of delivering quality online video content finally succeeds, this will give it the assurance it needs to continue delving into new fields as part of its diversification program. Similarly, the success of this program will help Verizon get the assurance it needs that it can be a major player in this sector and increase its revenue.

The deal between Intel and Verizon has huge benefits to both companies. Investors ought to watch how the video service that Intel sold to Verizon performs in the industry. Because of this deal, Verizon is now listed as one of the companies or stocks to watch in 2014. The same applies to Intel, thus indicating the importance of such deals, beyond what a company gains in terms of finances alone. Intel realized that it lacked the resources to introduce the video service to the market, but instead of killing the dream, sold it to Verizon, which is equipped for such ventures.

Such kinds of deals will continue pushing Verizon’s stock higher and make it more attractive to investors, while driving its revenues and sales figures higher, and on to new levels.

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