Microsoft and Verizon in Talks To Develop iPhone Rival

We know Verizon is talking to Apple about taking on the iPhone, and now the WSJ claims they are playing both sides by talking with Microsoft about developing an iPhone rival.

Naturally, details are scarce—although the word is that the device will be a multimedia touchscreen that will push both Windows Mobile and the Windows Marketplace. It is also rumored that a third party may handle the manufacturing of the device. Could this be the Zune software "Pink" project we have heard so much about? [WSJ]