The hardware and software were built, the personalized user interface was ready and deals with content companies were all but signed and just like that, it's over.
Intel's plan for the OnCue platform was to enable users to watch live or recently aired content on-demand in their homes and on mobile devices.
The services will deliver programming through Verizon FiOS network and "over the top" to any device.
The companies confirm 350 Intel workers who helped build the service will be hired by Verizon.
The transaction is expected to close early in the first quarter of 2014.
—By CNBC's Christina Medici Scolaro.