Verizon Wireless Goes With Microsoft Search

Microsoft announced a five year deal with Verizon Wireless to put Microsoft Live Search on their smart phones and mobile devices. At least one blogger speculates that Verizon still holds a grudge with Google for bidding up the price of wireless spectrum last year.

That may be true, but I think there may be a much simpler explanation here. Both Yahoo! and Google have been aggressive players in mobile search while Microsoft seemed to rely on their mobile operating system. It wasn't a winning strategy. Microsoft has virtually no share in mobile search. Their only choice is to get out of the market or buy their way in, and Verizon was more than willing to take a great deal when they saw it.

• Google and the Open Handset Alliance
• Review of GrandCentral