The Wall Street Journal reported that the deal is expected to close in the first quarter, assuming there are no regulatory hurdles in the way, and that informed sources estimated the deal was worth $200 million.
Intel Media has been developing the OnCue service that allows subscribers access to live and on-demand content on the Internet.
The program allows users to record programing on Intel servers, which eliminates the need for a digital video recorder, the Journal said.
Verizon said it would likely retain many of the 350 workers who are employed at the Intel campus in Santa Clara, Calif.
Similar to the recent purchase of Edgecast Networks, Intel Media expands Verizon's position in Internet services.
"Strategically we're setting ourselves up in order to respond to the ecosystem as it evolves," said Verizon Chief Financial Officer Fran Shammo.
Intel, meanwhile, is divesting itself of a project begun by former Chief Executive Officer Paul Otellini that was not favored by CEO Brian Krzanich, who took over the reins at Intel in May.
Krzanich said he was wary of a service that meant complicated negotiations with content providers.
Verizon was better equipped to make use of Intel Media, because it was subscriber-based, Krzanich said.
"We talk to content providers all the time about content being delivered in the mobile world," said Shammo, Verizon's CFO.
"But it's hard for them because it disrupts their business model on linear TV," he said.