Such a move would add live television channels to the on-demand video service already offered by the company's Amazon Prime service and come as a challenge to cable or satellite television service providers.
The effort by Amazon is nascent and it remains to be seen whether it comes to fruition, according to the Journal.
Television giants tend to be reluctant to make distribution deals that might upset long-standing partners whose fees and payments have fueled industry growth.
The Wall Street Journal previously reported that Amazon is working on a set-top box for streaming video from the Internet.
(Also see: Amazon to make five original TV series)
(Also see: Intel launches marketing campaign aimed at cloud)
The US telecom giant said the acquisition "will accelerate the availability of next-generation video services," delivered to devices including mobile phones and tablets.
The deal includes intellectual property rights and other assets for Intel's OnCue Cloud TV platform. Verizon will also offer to keep the 350-person Intel unit, which will continue to be based in Santa Clara, California.