After successfully partnering with SBC, Yahoo says it will now be working with Verizon Online. Verizon customers will get the same ability SBC DSL users get – single sign for Verizon and Yahoo services, a customized Yahoo home page and content, plus all the usual trimmings. Right now the deal is for DSL, but seems like it could be extended to Verizon FIOS as well. Yahoo is now an option for those Verizon users who don’t much care for MSN portal.

Yahoo! receiving monthly per-subscriber fees. Verizon Online will share in revenues from premium services subscriptions, searches and advertising.

Yahoo seems to be using the partnership route and is leveraging its content to fight off Google and its growing dominance in the search space. John Battelle has not weighed in on this so far. Some studies show that both Yahoo and MSN are inching in on Google in search.