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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.
Dawn Kawamoto covers enterprise security and financial news relating to technology for CNET News. E-mail Dawn. 
Whatever happened to putting the consumer first?
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?
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
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?
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.
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
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. . .
Verizon Apple technology support stinks.
Go Google!
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.
- by AppleSuxLeo January 7, 2009 10:52 PM PST
- For better or for worse...Money talks , BS walks.
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