Intel may be exiting the TV game, according to a report form All Things D, Intel may be turning over their web-based TV service to none other than Verizon. Sources “familiar with the talks” describe both companies as being in the late stages of discussions, though no timeframe is known for a conclusion.

What isn’t know is whether or not Verizon would take control of the media unit of Intel as a whole, or simply the web TV project. Verizon could also simply take a leadership role for a joint venture, with Intel remaining part of the operations and management. Neither company would comment on the matter.

Part of the issue surrounds Intel’s inability to secure licensing arrangements from networks. While Intel was said to be seeking a partnership for the venture last month, talks may have turned into the chip maker simply jettisoning the venture altogether. Many believed the service would fall into the hands of Amazon, who is reportedly working on a set-top box for streaming media content. Amazon also creates their own content, and the web TV project would have created an interesting wrinkle for legacy content providers.

Verizon has Redbox, which is where this could eventually end up, but that remains to be seen. They also own and operate FIOS, though the footprint for that is remarkably small. The web TV project could also be a bigger play to compete with AT&T’s U-Verse service, should Verizon end up with control of it.