The Latest Microsoft-Google Front: Verizon

Sam Gustin writes: Now that Microsoft has apparently moved on from Yahoo, the software giant is looking for new avenues to attack Google, its arch-enemy. The latest battlefront is mobile search, and the Wall Street Journal is reporting that Microsoft is  close to securing a major strategic beachhead.

If consummated, the deal would represent a 180-degree about-face for Verizon Wireless, which just three months ago was said to be close to handing Google the right to become the default search provider on Verizon Wireless phones.

Although Google's search engine is much more popular than Microsoft's offering, the software giant is hoping to win the business the old fashioned way: with cold, hard cash.

Microsoft has apparently doubled Google's bid for the Verizon mobile search contract, by offering guaranteed payments of $550 million to $650 million over five years, doubling Google's offer, according to the paper.

In addition, Microsoft is talking with Verizon about a deal to put the software giant's Windows Mobile operating system on more Verizon phones. The paper says the two deals could be worth over $1 billion.

In August, Verizon was close to a mobile search deal with Google, a pact which seemed to represent a thawing in Verizon's relationship with Google. The two companies have sparred repeatedly over network neutrality and the rules governing the F.C.C.'s wireless spectrum auction earlier this year, which Verizon won.

With no love lost between Verizon and Google, the cell-phone giant may be more than happy to take Microsoft's offer all the way to the bank. Google definitely has the cash, but does it have the appetite to top Microsoft's bid?