Who Will Win? Microsoft Doubles Google's Offer to Verizon

Now that Microsoft (MSFT) has apparently moved on from Yahoo (YHOO), the software giant is looking for new avenues to attack Google (GOOG), its arch-enemy. The latest battlefront is mobile search, and the Wall Street Journal is reporting that Microsoft is close to securing a major strategic beachhead.

If consummated, the deal would represent a 180-degree about-face for Verizon Wireless (VZ), which just three months ago was said to be close to handing Google the right to become the default search provider on Verizon Wireless phones.

Although Google's search engine is much more popular than Microsoft's offering, the software giant is hoping to win the business the old fashioned way: with cold, hard cash.

Microsoft has apparently doubled Google's bid for the Verizon mobile search contract, by offering guaranteed payments of $550 million to $650 million over five years, doubling Google's offer, according to the paper.

In addition, Microsoft is talking with Verizon about a deal to put the software giant's Windows Mobile operating system on more Verizon phones. The paper says the two deals could be worth over $1 billion.

In August, Verizon was close to a mobile search deal with Google, a pact which seemed to represent a thawing in Verizon's relationship with Google. The two companies have sparred repeatedly over network neutrality and the rules governing the F.C.C.'s wireless spectrum auction earlier this year, which Verizon won.

With no love lost between Verizon and Google, the cell-phone giant may be more than happy to take Microsoft's offer all the way to the bank. Google definitely has the cash, but does it have the appetite to top Microsoft's bid?

Comments

[brewer:]

As an APPL investor, I hope Verizon goes with Microsoft search. That will only help the iPhone, as if it weren't already crushing RIM in the marketplace. The Verizon 'smart' phones are already bad enough. Put MS search on there, and the market will go totally iPhone.

People do not equate Microsoft with search. That is a fact, and for good reason.

2008 Nov 13 12:33 PM

[GSlusher:]

This is yet another reason to switch from Verizon to an ATT iPhone. MSFT wants to bribe Verizon to give its customers lower performance. I'll bet that Verizon jumps at the chance.

2008 Nov 13 06:09 PM

[BertNo!:]

I disagree with both of the above comments. VZ and RIMM should see a good numbers with the Storm. The iPhone is cool and all but it's really just a toy and sales are projected to decrease. Let's also add that AT&T is a horrible provider. Complain all you want about VZ service, AT&T just doesn't work. I also have no love for Google either. Where is all the innovation GOOG owners drool over? They're an add company plain and simple.

2008 Nov 16 10:08 PM

[SEO Web Mar...:]

Microsoft's and Google's Offer to Verizon - Who will win? Article

I reckon Verizon will probably taken on Microsoft's offer, especially due to what happened with Google. Google is predominately an ad company but as so innovative they appear in so many formats, and I do think the real winner will always be the company that pleases the end user. I am sure Google and Microsoft have all the phone companies in consideration, and it is only a matter of time until a smarter Android phone is produced that is more user friendly for the internet and the end user.

It is just which company will win the race, and I am sure there is a likelihood of another "non-internet" company joining the race for world internet/phone/news and ad media.

Interesting article Seeking Alpha...! Kind regards - Susan x
www.seowebmarketing.co...

2008 Nov 25 01:16 PM