Microsoft is moving closer to an agreement with Verizon Wireless to become the default search provider on the wireless carrier’s cell phones, the Wall Street Journal said, citing people familiar with the discussions. Under the terms being considered, Microsoft would share with Verizon revenue from ads shown in response to cell phone Web searches, with guaranteed payments to the carrier of about $550 million to $650 million over five years, roughly twice what Google Inc offered, the people told the paper, according to a Reuters report.
Microsoft is negotiating a deal to put its Windows Mobile software in more Verizon devices “The combined value of the two deals could top $1 billion, the people told the paper.”
Verizon is tilting toward Microsoft because the software giant is offering significantly better financial incentives, the paper said citing the people.
More details are expected, when Satya Nadella is scheduled to speak at PubCon in Las Vegas on Thursday.