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Microsoft clinches Verizon mobile search deal

Stuart O'Brien
Microsoft clinches Verizon mobile search deal

Software giant beats Google to win contract as search land grab continues.

US operator Verizon Wireless has confirmed it has chosen Microsoft as its exclusive mobile search and advertising provider.

The five-year agreement will go into effect in the first half of this year, when Microsoft Live Search will be available on new Verizon Wireless feature phones and smartphones.

Microsoft will also manage search and display advertising on Verizon Wireless's mobile portal.

It's certainly been a long-running battle for the Verizon contract, fought out between incumbent Google, Microsoft and Yahoo.

The Microsoft-Verizon deal means the US mobile search segment is something of a patchwork - Yahoo has deals in place with T-Mobile and AT&T, while Google has Sprint.

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Terms of the new agreement haven't been disclosed, but in November there was heavy speculation that it would include guaranteed payments to Verizon of up to $650 million, based on mobile ad revenue generated by Microsoft.

That's twice what Verizon earned from its previous Google deal, according to estimates.

Tags: verizon wireless , google , microsoft , yahoo , mobile search