MS Verizon Deal Rumor

Microsoft is launching a two-pronged effort on Verizon to both lead the company's mobile searches but also its smartphone operating systems, say sources for the Wall Street Journal. In addition to an attempt to usurp Google's position as the default search engine and ad partner with a deal that would double Google's payout to between $550 million and $650 million, the Redmond, Washington developer is also said to be offering a financial incentive for Verizon to use more Windows Mobile devices.

Details of this latter deal are vague, according to the newspaper, though it believes the combination of the search and smartphone deals combined would top $1 billion. The Windows Mobile agreement is most likely to either involve a direct cash incentive from Microsoft to use its phone operating system or else steep discounts on licenses to use the software.

Negotiations are described as still being "fluid" and don't necessarily guarantee a deal, the alleged sources note.

Both deals reflect pressure on Microsoft from competitors that have otherwise successfully damaged its influence in key markets. The company has long been determined to undermine Google in online search and advertising but has had little success on the desktop, where Google continues to dominate and Microsoft's failed attempt to buy Yahoo has left it without more than a small stake on the web.

Windows Mobile has also shown signs of losing favor as a smartphone operating system. The platform missed yearly sales targets in mid-year and has been substantially outsold in the US and some other territories by newer competing smartphone software. The iPhone 3G and BlackBerry Curve have not only been the most popular smartphones in the country but are now considered the best-selling overall while Windows Mobile has failed to gain a high rank in either category.

By Electronista Staff