Microsoft is working to steal a deal with Verizon Wireless away from Google, Reuters is reporting, while the latter is tied up in a regulatory fight with Yahoo over a now-failed advertising partnership.

According to the article, Microsoft snuck in and offered Verizon "a sweeter deal to put its search service and related advertising on Verizon phones." It's also offering more generous revenue sharing and a guarantee of substantially higher payments to Verizon, the report said.

Anyone got popcorn? This one is getting interesting—we think.