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Google Wins the Verizon Wireless Sweepstakes

by: Sam Gustin August 24, 2008 | about stocks: GOOG / VZ    

Sam Gustin

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It's good to be the (search) king.

When it comes to Web search, size matters. Verizon (VZ) is close to picking Google (GOOG) for mobile search after considering rival offerings, including from Microsoft (MSFT), because it concluded that people now "reflexively" use Google for search, according to the Wall Street Journal.

For Google the pact would be a big win for the Web giant as it eyes the cell phone market.

Google has made no secret of its desire to move into the mobile space. Just last week, Google chief executive Eric Schmidt predicted that the mobile market could be more lucrative than its existing desktop-based Web search franchise.

"We can make more money on mobile than we do on the desktop, eventually," Schmidt said.

Nearly a year ago, the company announced its intention to enter the cell phone business with Android, the open-source mobile operating system. That effort will soon bear fruit, with HTC's Android-powered cell-phone, known as "Dream," which is set to be offered by T-Mobile. Google hopes to serve targeted advertising to mobile users tailored to their interests and location.

As part of the Android push, Google announced the Open Handset Alliance, a consortium of industry players, including Sprint Nextel (S), T-Moblie, Samsung, Motorola (MOT), LG, and HTC. But Verizon Wireless was conspicuously missing from the alliance.

At a minimum, a Google pact with Verizon would signal a thawing in relations between the two companies, which have sparred bitterly in recent years over Net neutrality and the rules governing the F.C.C.'s recent wireless spectrum auction.

At a maximum, the deal could pave the way for for the cell phone giant to jump on board the Android bandwagon, giving a big shot in the arm to Google's mobile efforts.

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This article has 4 comments:

  •  
    Aug 24 10:40 AM
    Sam thanks for your article,if you could only buy one of the two( GOOG and VZ) what would be your first choice? I think I already know your answer but I still need to hear it from you since you don t seem to own neither of the two?
    Reply
  •  
    Aug 24 12:28 PM
    I echo User138602's request.

    I like both of VZ and GOOG but I want to buy one. VZ ofcourse is more complex to address because of its combination of fixed line business as well as wireless business - however may have lot better valuation compared to GOOG.
    Reply
  •  
    Aug 24 08:25 PM
    well thank you for your answer sam and for being so rude with your readers.
    Reply
  •  
    Aug 27 01:52 PM
    VZ defintley needs Google at this point. It's the kind of innovation and freshness the company needs. It will create the kind of buzz they need to compete with the AT&T/Apple alliance.
    Reply
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