Kara Swisher

Recent Posts by Kara Swisher

The Entire Internal Microsoft Memo on New Dell and Verizon Deal

BoomTown loves a good memo and here’s one that two of Microsoft’s top online execs, Yusuf Mehdi and Satya Nadella sent out about the deal the tech giant signed with Dell (DELL) and Verizon (VZ) to distribute its search and other products.

Microsoft (MSFT) is opening its fat wallet to do such a deal and try to best archrival Google (GOOG). It was announced last night at Microsoft CEO Steve Ballmer’s keynote kickoff for the Consumer Electronics Show in Las Vegas.

Here’s the memo:

From: Yusuf Mehdi
Sent: Wednesday, January 07, 2009 6:29 PM
To: OSD R&D FTE World Wide; Online Audience Business Group FTE; APSP FTE–Adv & Pub Solutions Platform
Cc: Yusuf Mehdi; Satya Nadella; Qi Lu
Subject: Announcing Dell and Verizon Strategic Partnerships!


This evening, in his keynote address at the Consumer Electronics Show in Las Vegas, Steve Ballmer announced two major new distribution partnerships that will significantly increase the reach of our Online businesses to end users.

Starting in February, Dell–the number one PC manufacturer in the US and number two worldwide – will begin to distribute Live Search and Windows Live Essentials on a majority of consumer and small business PCs shipped globally. Under the terms of the agreement, Live Search will be the default search engine in the Web browser, as well as including a Live Search-powered toolbar on all new PCs over the next several years.

Steve also announced a five-year partnership with Verizon–the number one wireless carrier in the US–that covers mobile search and display advertising. The deal will provide more than 70 million subscribers in the U.S the ability to use Live Search to find local business and shopping information, access maps and directions, find ringtones and other online mobile products and services.

Partnering with the #1 PC manufacturer and the #1 wireless carrier in the US is a huge win for our Online Services business. More importantly, the partnerships will benefit our mutual customers as we make it easier to access their email, IM, homepage, and Search services from their PC and Phone.

As you know, these are just two–albeit big ones!–examples of our partnering to grow our audience through distribution and bring our services to new users. Our momentum is building from previous and existing partnerships with Sun Microsystems, Facebook, Lenovo, and most recently HP for all their PCs in North America.

A big thanks to the many individuals across the company that helped secure these partnerships. Now onward to executing very well on our product offerings and marketing to make the most of our investment!

Satya and Yusuf