Report: Microsoft Close To Mobile Deal(s) With Verizon

    November 12, 2008

If Google doesn’t do something special, a mobile search deal between Microsoft and Verizon may be cemented in the near future.  A new rumor has Microsoft offering Verizon a far more lucrative arrangement than what the Mountain View-based search giant originally suggested.

Amol Sharma and Nick Wingfield spoke to "people familiar with the discussions," and found that "Microsoft would share revenue with Verizon from ads shown in response to cellphone Web searches, with guaranteed payments to the carrier of approximately $550 million to $650 million over five years, or roughly twice what Google offered."

Microsoft Logo

Furthermore, any chance that Android would receive some attention is getting slimmer.  "Microsoft is negotiating a deal to put its Windows Mobile software in more Verizon devices," the report continues.

All of which would leave Google in an awkward position.  While its current G1 offering seems to be doing all right, T-Mobile is America’s fourth-biggest mobile carrier, and Verizon, which ranks second, has more than twice as many subscribers.  Gaps that big are hard to close.

Assuming things proceed logically, then, we can expect either a prompt new bid from Google or a resolution between Microsoft and Verizon.  Given the economy’s problems, none of these companies are going to want to leave cash and potential users floating around unclaimed.