"Microsoft is getting closer to a deal to become the default search provider for Verizon Wireless, according to a report Tuesday in The Wall Street Journal that cited people close to negotiations.

Microsoft would share ad revenue with Verizon under terms being considered, with guaranteed payments to the wireless carrier of $550 million to $650 million over five years, or twice what is Google was offering, according to people familiar with the deal. Microsoft is also reportedly negotiating to put its Windows Mobile operating system on more Verizon devices. The combined deals are valued at $1 billion.

Reports that Microsoft was trying to hijack the Verizon deal from Google surfaced last week after Google bowed to federal regulators' opposition and killed its controversial advertising partnership with Yahoo. Microsoft showed its desire to move into Google's search territory earlier this year when it made a multibillion-dollar bid to buy Yahoo.
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Link:
http://news.cnet.com/8301-1035_3-10094749-94.html