Report: Microsoft beats out Yahoo, Google on Verizon deal

Microsoft is preparing to announce Wednesday it has been selected as the search provider for Verizon mobile phones, beating out archrival Google and Yahoo, according to a Reuters report.

Yahoo shares spiked during mid-day trading as news surfaced that Verizon had chosen a mobile search provider, but then fell back to earth after the Microsoft disclosure.

There has been much speculation over the past year about who would sign the coveted search deal with Verizon, which is expected to overtake AT&T as the No. 1 U.S. carrier after Verizon closes on its purchase of Alltel, Reuters said. Increasingly, consumers and businesses are turning to their mobile phones as a means to interact with the Internet and advertisers are well aware of the trend.

Verizon CEO Ivan Seidenberg, revealed the carrier's search choice during a presentation at an investment conference, noting Microsoft's CEO Steve Ballmer is expected to make a similar announcement at the Consumer Electronics Show in Las Vegas.

Although Seidenberg did not delve into further details about the deal, it is expected to generate between $550 million to $650 million in guaranteed revenue a year.

For Yahoo and Google, the announcement is a blow to their mobile efforts.

Yahoo in November announced a deal with T-Mobile USA to power its search and mobile Web portal. And although Yahoo recently was able to extend its relationship with Verizon to provide its Web portal to computer users, it fell short in doing the same for Verizon's mobile customers.

[i_am_still_wade]

Boo! Again BOO! Verizon SHOULD NOT SELL search engine rights. Already, Verizon overcharges you and cripples your phone. The crippling phones is the reason why I avoid Verizon like the plague. And now Verizon is screwing you another way.

Whatever happened to putting the consumer first?

[LAST_DJ_AZ]

In all reality, there is NO CORPORATION, OR LARGE COMPANY ON THIS EARTH, for that matter that gives even a small crap about anyone other than those who collects the checks at the VERY TOP. The consumer will always be an after thought, unless maybe there is no one else to blame. After all, it is always the consumers fault when the board of directors checks fall short. Maybe I sound a little bitter, okay, I am!!! ;-O Don't worry about me, I've already lost my job.

[Kwasiowusu]

"Boo! Again BOO! Verizon SHOULD NOT SELL search engine rights"

And why not?
Every single cell phone company out there i selling search engine rights and making money from it. Why should Verzon do any different? In these hard econmic times, any company that fails to monetize their assets, should have their CEO sacked.
Why don't you go whine at AT&T?

"Whatever happened to putting the consumer first? "

Putting a good search engine on a cell phone is somehow anti-consumer?
Since when?

[clombard44]

Hey...thanks Dawn for the news that Microsoft will be the Verizon search
provider...Great article.
Now can you please tell that knuckle head Seidenberg that all of us
Verizon customers were waiting for an excuse to dump Verizon (similar to
the monster dump of Windows as our OS when Vista came out)? Hello Linux.
Wow...just think...now we can look forward to the "blue" screen on our
cell phones! Hello AT&T.
chow
cj

[Kwasiowusu]

Stop posting garbage.
Verizon is already on track to overtake AT&T as the biggets cell phone provider in the US. It's irrelevant if Microsoft-hating clowns of your sort go take a flying leap or not.
This deal is good business for Verizon. It will put money in their pokects and provide a good search engine for their consumers as well. What are you wninning about?

[fortyonejb]

You do realize you in effect just said "goodbye Napoleon, hello Hitler".

Of course I'm referring to Verizon and AT&T. While I'm not emphatic about Microsoft being chosen, this alone is still not enough to get me to switch to the absolute most horrid Telecom short of Comcast.

Speaking of which, I also refuse to pay any company if their broadband division is currently lowering its QoS, AT&T and Comcast want to give me less access while Verizon is providing more. I expect this trend to follow to their wireless divisions. Just wait until your iPhones get cut off by AT&T for too much data usage.

[csg7]

Blue screen on your phone due to MS search !! HAHA, please stop !

[clombard44]

Hey...thanks Dawn for the news that Microsoft will be the Verizon search
provider...Great article.
Now can you please tell that knuckle head Seidenberg that all of us
Verizon customers were waiting for an excuse to dump Verizon (similar to
the monster dump of Windows as our OS when Vista came out)? Hello Linux.
Wow...just think...now we can look forward to the "blue" screen on our
cell phones! Hello AT&T.
chow
cj

[badmojo42]

You are an idiot. please stop posting.

[zizzybaloobah]

luckily there's still Google 411

[ChuckRB]

I don't know what the big deal is, I guess folks use the "default search" that's provided by the carrier. I use Google's add-in on my BlackBerry which is a Verizon phone and it works great.

[shivaswrath]

I have a Verizon Blackberry and had the Google-ad in as well; no big deal, I can google search on the fly, not sure why everyone is complaining?!!

In the end, it's hardly like the flip phone users are going to be doing searches due to airtime overcharges; it's the bberyy and PDA customers, who can access whatever they want through their own browser, that are most affected.

Now if VZW blocks the google add-in's, I'll be po'ed. . .

[roland827]

This will mean microsoft will be given the license to eat up your precious airtime bytes allowed on your dataplan and show you useless results and bloated ads unless you specifically choose other search engines.

[technewsjunkie]

And this is why I dumped Verizon for AT&T.

Verizon Apple technology support stinks.

Go Google!

[jackdaniels08]

I have Verizon service. I use Google Search and Google services. If I will not be able to use Google Search with Verizon I will DUMP them for a carrier where I can use Google services. Remember, the customer is always right and the majority of customers use Google. I see many customers dumping Verizon. HEY EVERYBODY WITH VERIZON SERVICES, LET'S DUMP VERIZON TOGETHER!

[jackdaniels08]

Desperate Verizon and desperate Microsoft in a desperate economy formed a disfigured abominal marriage and the majority will be disgusted by this sick display just so that Verizon can squeeze a few extra dollars out in the short term. Well I don't think so. Customers will not be happy and customers are always right. They don't want to be force fed Microsoft search garbage. Verizon customers will dump Verizon for a carrier that offers superior services. With the premium price Verizon customers are paying each month, they deserve nothing less than premium service and Microsoft is certainly the worst there is. Microsoft services are just pitiful. HORRIBLE! HORRID! Verizon customers deserve the best. And in the long term Seidenberg will regret his big mistake. My hope is that Google will form a deal with AT&T. No matter, bottom line is Google Android is where it's going. 2009 and onward will be a great for Google Android. Monkeyboy Steve Ballmer of Microsoft can scream and holler on stage all he wants like Frankenstein as people throw eggs at him. It wont make a difference.

[ppgreat]

If I ever had any misgivings about getting out of my Verizon contract before, this pact makes me feel a lot better that I left.

Microsoft's search tech leaves a lot to be desired and their mobile tech is in desperate catch-up mode. If you're just paying vendors to take on your apps so you can brag about numbers, you're making the case for pursuing other options.

[AppleSuxLeo]

For better or for worse...Money talks , BS walks.