Microsoft secures Verizon mobile search deal

Jan 08, 2009 By John Letzing

Microsoft Corp. has bested rivals Google Inc. and Yahoo Inc. by securing an agreement to become the default provider of Internet search service to mobile phone customers of Verizon Wireless, a Verizon executive said Wednesday.

Speaking at the annual Citigroup entertainment, media and telecommunications conference, Verizon Communications Inc. Chief Executive Ivan Seidenberg said that "Microsoft's (Chief Executive) Steve Ballmer will announce a mobile search deal with Verizon" at the Consumer Electronics Show in Las Vegas.

Ballmer was scheduled to deliver a keynote address at CES Wednesday evening.

Seidenberg said Ballmer's announcement will focus on ways the deal will be "generating lots of new revenue growth in the short term," though he did not offer specific details.

Speculation about which Internet giant would secure the search deal with Verizon has been ongoing for months.

In November, The Wall Street Journal reported that Microsoft was nearing a deal with Verizon that would have Microsoft guaranteeing payments to the carrier of roughly $550 million to $650 million over five years, "or roughly twice what Google offered."

A Microsoft spokesman did not respond to a request for comment.

Internet companies including Microsoft, Google and Yahoo see the mobile phone market as essential for expanding the use of their respective services in the future, as more customers are expected to start browsing the Web through a cell phone rather than a desktop or notebook computer.

Winning the contract to provide default search services for Verizon customers was seen as key, because Verizon is poised to surpass AT&T Inc. to become the U.S.'s largest wireless carrier in terms of subscribers following its $28 billion purchase of Alltel Corp. That acquisition is expected to close Friday.

___

© 2009, MarketWatch.com Inc.
Visit MarketWatch on the Web at www.marketwatch.com
Distributed by McClatchy-Tribune Information Services.

Explore further: Can Etsy keep its folksy brand and make shareholders money?

add to favorites email to friend print save as pdf

Related Stories

New insight found in black hole collisions

Feb 26, 2015

New research by an astrophysicist at The University of Texas at Dallas provides revelations about the most energetic event in the universe—the merging of two spinning, orbiting black holes into a much larger ...

US revenge porn kingpin agrees to guilty plea

Feb 19, 2015

The mastermind behind a US revenge porn website has agreed to plead guilty to computer hacking and identity theft charges, in a deal with federal prosecutors in Los Angeles.

Recommended for you

Car industry welcomes Google, Apple but battles loom

Mar 05, 2015

It could be the battle of the titans. Auto giants at the Geneva Motor Show say they welcome the potential move of Silicon Valley players into their sector but experts warn of major disruptions.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.