image348 Google and Microsoft fighting for Verizon Deal: Isn’t it burning all that cash?

It appears that the deal with Verizon has become a matter of pride or should I say guarding one’s honor for both Microsoft and Google. We reported earlier that Microsoft is doing everything it can to bag in Verizon but Google won’t let that happen just like that. Reports have it that both will be attempting to get Verizon, the reason for Microsoft is definitely most probably will be to step in to compete the dominance of Google in the mobile world. Mobile users already prefer Google as their sole search engine so Google trying to make default by shaping up some with Verizon would more or less be putting in money where you are a winner already and given that Verizon having a deal with Microsoft wont block users’ access to Google. In a recent analysis, Mark Mahaney stated:

GOOG & MSFT Are Competing To Be The Default VZ Mobile Search Provider – Microsoft has reportedly offered guaranteed payments to the carrier of approximately $550-$650MM over five years or roughly twice what Google has offered. We have attempted to test the economics behind such a deal. We label this a Beta Take because underlying Mobile Search usage metrics and revenue drivers are extremely uncertain at this time.