Microsoft has beaten out Google and Yahoo for a search deal with mobile giant Verizon, Reuters reported. Microsoft CEO Steve Ballmer was set to unveil this as part of his CES keynote later Wednesday, according to Verizon CEO Ivan Seidenberg.

The agreement follows more than a year of speculation on whom would become the default mobile search provider for Verizon Wireless, which is set to surpass AT&T Inc as the No. 1 U.S. mobile carrier after it closes its purchase of smaller operator Alltel later this week.

According to CNET, this deal is expected to generate between $550 million to $650 million in guaranteed revenue a year.

[via CNET]