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NEW YORK - Microsoft Corp. and Verizon Wireless are moving closer to a search agreement in which the software giant will become the default search provider on Verizon's cell phones, The Wall Street Journal reported Wednesday citing unnamed people familiar with the matter.
The paper said that under the terms being considered, Microsoft would share advertising revenue with Verizon, with guaranteed payments of about $550 million to $650 million over five years.
A Verizon Wireless spokesman said the company has no comment.
In August, the Journal reported that Google was close to sealing a deal with Verizon Wireless to make its search function the default choice on the phones. On Wednesday, the paper reported that the guaranteed payments would be roughly twice what Google had offered.
Google is the default search provider on Sprint Nextel Corp. phones, while AT&T Inc. uses Yahoo Inc.
Verizon Wireless is a joint venture between Verizon Communications Inc. and Vodafone Group PLC. Verizon owns the majority stake.
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