Microsoft close to signing Verizon Wireless search deal
IT LOOKS LIKE Microsoft might beat Google to the punch when it comes to closing the deal with Verizon Wireless to become the default search provider on the wireless carrier's mobiles.
Sources at the Wall Street Journal claim the Vole is this close to sealing a deal with Verizon, which would involve revenue sharing from ads shown on mobile web searches and guaranteeing Verizon $550 million to $650 million over five years, about twice what Google offered for the same deal.
Microsoft is also trying to plug its Windows Mobile software to Verizon, with the FT claiming it will either pay Verizon to use it or give it away for free. Both desperate-sounding measures. Together, say the secret WSJ sources, both deals could have a value of over $1 billion.
Google is apparently still fighting for a partnership with Verizon, but with Microsoft doing its damndest to undercut the Search engine giant, it looks like Verizon is definitely leaning more the Vole’s way. Microsoft, however, generates much less cash per search than Google, so the financial logic behind Microsoft’s desperate bid is perplexing.
With Google’s share prices taking a bit of a hit lately, and with the firm really throwing itself into mobile growth, Google may also be feeling a little desperate and ready for a little hardball and undercutting as well.
Frankly, if Microsoft wants in on Internet search, mobile search seems a poor and unlikely place to start. It certainly seems a bit of a waste that Microsoft is throwing all this cash Verizon Wireless’ way, when Yahoo, the Vole’s real chance into hitching a ride up the Search market ranking table, is practically begging for a deal right now.
Search us when it comes to figuring out the dynamics behind this particular move. µ
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As a Verizon Wireless customer for many years, I can only say that using Verizon to search for anything is like using a frying pan to search for a turd in a cesspool.
If MS wants in on Internet searcher in a bigger way than they have now, then mobile is the wway to go. It makes sense when you think of the near future of mobile devices that are internet capable/friendly. Its' going to be getting bigger for a while, it might eventually beat home connectivity involving internet searches.