Microsoft in talks with Verizon on iPhone rival: Report

Reports surfaced yesterday that said Verizon Wireless were holding talks with Apple about a deal to allow the carrier to sell a version of the iPhone. Today, the Wall Street Journal is reporting that Verizon Wireless is holding talks with Microsoft on a deal to launch a touch-screen phone based on Microsoft’s secretive Project Pink.

The new phone is rumored to involve combining elements of Windows Mobile with some pieces acquired through the company’s Danger unit, which provides software for the T-Mobile Sidekick phone.

Citing “people familiar with the matter,” the WSJ says the new phone plans to build on the Windows Mobile operating system and use the new Windows Marketplace for Mobile application store.