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Microsoft, Verizon Wireless move closer to search deal

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On November 12, 2008, 12:08 PM EST

Microsoft may beat out Google to become the default search provider on Internet-enabled phones used by Verizon Wireless customers. If a report in the Wall Street Journal is right, then Microsoft is about to close the search deal with the wireless carrier by promising payments of approximately $550 to $650 million over five years – about twice what Google offered.

The agreement would call for Microsoft to share search advertising revenue with Verizon. Searching information on mobile phones is relatively new for many, but the practice is expected to expand quickly, and of course Microsoft’s super aggressive offer shows just how worried it is about Google seizing the market.

In separate negotiations, Microsoft is also trying to have its Windows Mobile software installed in more Verizon devices.

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