Intel is asking for about $500 million oncue for its paid network TV service

Intel has priced about $500 million for its paid network TV service, OnCue, a person close to the situation said.

Intel hopes to sell OnCue by the end of the year, said people familiar with the matter. Verizon Communications, which is interested in acquiring OnCue, has begun discussions with radio and cable channels to launch streaming television services.

Selling oncue at about 500 million dollars will enable Intel to recoup its upfront development costs and supply chips to potential buyers. Samsung and Liberty Global are also in contact with Intel to acquire OnCue, sources said. After Krzanich (Brian m.) became CEO, Intel slowed its march into the television industry and focused on developing mobile device chips.

Neither Intel nor Verizon Communications commented.

OnCue provides pay-TV services to users through high-speed Internet connections, posing a threat to cable television services. Intel develops systems that include servers, set-top boxes, and applications that transmit content to mobile phones and tablet PCs.

Verizon Communications provides television services to users through its FiOS business. OnCue will enable Verizon Communications to provide television services to users in markets outside FiOS coverage. Verizon Communications has been talking about streaming TV services and content providers.