Google and Microsoft tangle again — over Verizon
Chalk one up for Microsoft — sort of.
If today’s report in the Wall Street Journal is right, then Microsoft is about to land an agreement with Verizon Wireless to become the default search provider on its cellphones.
In its battle with Google, that should count as a win for Microsoft, even if the company had to offer much, much better terms than its rival.
From the article: “Verizon is tilting toward Microsoft because the software giant is offering significantly better financial incentives, but the telecom company is still in discussions with Google and the situation is fluid with both companies, these people said.”
The WSJ says the deal would likely call for Microsoft to share revenue with Verizon when advertisements come up in response to a search. It reports that there would likely be guarenteed payments to Verizon of $550 million to $650 million over five years. That’s about twice what Google offered, according to the report.
If accurate, Microsoft’s super aggressive offer shows just how worried it is about Google. It needs wins, particularly when it comes to search deals. But as Silicon Alley Insider points out, Google is under some pressure, too.
“Google is now probably getting quietly desperate, too (stock price $300), so it will be interesting to see if it panics and does something economically stupid. Probably not, but possible, given how much Google is betting on the growth of mobile.”
And so the battle rages on…
Keep an eye on:
- Dentsu, Japan’s largest advertising company, cut its annual profit outlook by 20 percent and said it would buy a U.S. ad agency as it seeks growth outside the stagnant and mature domestic market (Reuters)
- Conde Nast’s online media division laid off more than three dozen staffers from ad sales to infrastructure (AdAge.com)
- Shares in struggling Midway Games Inc. – media mogul Sumner Redstone’s pricey gamble on the video game business – sank to a fresh all-time low (NY Post)