In a deal that could be valued from $200 million to $500 million, Verizon would add to its recent purchases that enhance its presence in video offerings, the Journal reported.
In November, Intel purchased UpLynk, a service that makes it easier to upload or stream videos. This week, it said it would purchase EdgeCast, a customer-tailored ad-delivery network that could boost the company's ad revenues.
InternetTV is still in a start-up phase of development. About 350 staff members have been working on a variety of television upgrades, including work on set-top boxes and on television-Internet interface programming, the Journal said.
The company's top executive, Erik Huggers, has also said InternetTV is working on live television delivery and content storage.
Intel had been seeking around $500 million for the company, but a report in November said the two companies were discussing a deal for about $350 million.