Verizon buys Intel's failed TV unit Verizon Communications confirmed reports that it will buy Intel's struggling start-up internet TV service, Intel Media, from the semiconductor chipmaker. The deal was announced as Verizon, the second-largest US telecommunications group, announced better than expected fourth-quarter results driven by the continued growth of its mobile operations, which continued to add subscribers despite fierce competition. Verizon also announced that its $130bn purchase of the 45 per cent stake in Verizon Wireless that it does not already own, from Britain's Vodafone group, will close on February 21, potentially clearing the way for rival AT&T to bid for the remaining Vodafone assets. No price for the Intel Media deal was disclosed but people close to the negotiations over the purchase, which includes the OnCue Cloud TV technology developed by Intel Media, have indicated it could be worth up to about $500m. Intel had previously announced plans to launch a "competitively priced" internet-based TV service by the end of 2013, but struggled to negotiate the agreements it needed with content providers. In contrast, Verizon already has extensive video content relationships through its FiOS TV operations. "This transaction provides us with the capabilities to build a powerful, capitally efficient engine for future growth and innovation," said Lowell McAdam, Verizon's chief executive. We will have the opportunity to enhance, expand, accelerate and integrate our delivery of video products and services to better serve audiences on a wide array of devices. Verizon reported consolidated earnings per share of $1.76 in the latest quarter, compared with a loss of 1.48 a share a year earlier. Results in both periods reflected substantial charges and gains. On a comparable basis, Verizon reported 66 cents in adjusted earnings per share in the latest quarter, a 73.7 per cent increase compared with adjusted earnings per share of 38 cents in the fourth quarter of 2012 that also included 7 cents per share in impacts from superstorm Sandy. Total operating revenues in the fourth quarter of 2013 were $31.1bn, a 3.4 per cent increase compared with a year earlier, with 84 per cent of revenues generated by Verizon Wireless, FiOS and strategic enterprise services. Verizon Wireless continued to enjoy strong growth in retail net connections and service revenues, an increase in smartphone penetration, and continued low rate of churn for its retail, postpaid customers. Total revenues in the fourth quarter increased 5.7 per cent to $21.1bn. Service revenues in the quarter increased 8 per cent to $17.7bn. The mobile unit added 1.7m retail net connections in the fourth quarter, including 1.6m retail postpaid net connections and ended the year with 102.8m retail connections, a 4.7 per cent increase year over year including 96.8m retail postpaid connections. Seventy per cent of its customers have smartphones.