From the article:
Verizon Chief Executive Ivan Seidenberg said on Wednesday that Microsoft CEO Steve Ballmer would announce the deal later in the day at the Consumer Electronics Show in Las Vegas. Seidenberg, speaking at a Citigroup conference, gave no further details.
The deal follows more than a year of speculation on who would become the default mobile search provider for Verizon Wireless, which is set to surpass AT&T Inc as the No. 1 U.S. mobile carrier after it closes its purchase of smaller operator Alltel later this week.
“It’s certainly a feather in Microsoft’s cap. Tough news for Google and tougher news for Yahoo,” CCS Insight analyst John Jackson said of the agreement.
Microsoft made a bid for Yahoo last year, but walked away after they disagreed on price.
What we think?
What a raw nerve and what a hot pot of nearly every mobile search provider in the world and Verizon.
Verizon uses Get it Now Search from Medio Systems (white label). The portal storefront search is run by Motricity Infospace. Jumptap provides the white label search to newly bought arm Alltel. Google, Yahoo and Microsoft have all had trials.
The winner – Microsoft.
The reason? Can only be a back hander from Microsoft as its mobile search is worse that Google Mobile – which is really saying something.
On the other hand – with mobile search failing to peak for some years now – the cheapest option for Verizon is a shrewd move. Not only that – it has backbone white label search from the biggest providers – with continuing revenue streams.
Mid last year Medio the white label mobile search provider got big time into vertical search and can now pull data from Yahoo and Google into its search results…. so in this light Verizon is getting the best of all worlds.
Medio – provides own content, Google and Yahoo! search
JumpTap – On device portal search via Alltel
Microsoft – the top level search on the portal
Motricity – storefront search
We are waiting for confirmation of this story… and we have a Verizon Razr here in Germany and will do some testing as soon as anything changes – but it might just be the start of a collaboration….