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Need Any More Proof Why Microsoft Wants to Back Up the Money Truck to Verizon Wireless?

Here is an amazing chart from a story in The Wall Street Journal recently about mobile phone search preferences, which says a whole lot about why Microsoft (MSFT) is so eager to hand a pile of money over to Verizon Wireless (VZ) to become the default search on its many devices.

Well, as in the PC market and on social-networking sites, because of–wait for it–Google (GOOG), of course.

According to another Journal story recently:

“Under the terms now being considered, Microsoft would share revenue with Verizon from ads shown in response to cellphone Web searches, with guaranteed payments to the carrier of approximately $550 million to $650 million over five years, or roughly twice what Google offered, these people said.”

Why so much of a premium, especially since the widgetization of smartphones makes it easier for all players to compete?

The chart tells the tale:

Please see this disclosure related to me and Google.

Comments

  1. Heaven forbid customers of these companies should ever have to think for themselves and make a choice.

    Posted by Mac Beach at November 21st, 2008 at 10:39 am
  2. Indeed. We call the cell phone companies “The Soviet Ministries” here at ATD (a Walt Mossberg original).

    Posted by Kara Swisher at November 21st, 2008 at 7:35 pm

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About Kara

Kara Swisher started covering digital issues for The Wall Street Journal's San Francisco bureau in 1997 and also wrote the BoomTown column about the sector. With Walt Mossberg, she co-produces and co-hosts D: All Things Digital, a major high-tech and media conference.

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Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.

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