This July, we’re seeing several different web-related trends. First, one of the few things that’s hotter than the weather is the iPhone, and by association, mobile web.
Second, at the end of the quarter, some large online/tech companies suffer from disappointing financial reports while others continue flourishing.
And lastly, many of these media giants are attempting to forge relationships with one another. But as we will report, these partnerships are a lot like romantic relationships: full of coyness, complications, and give-and-take principles.
iPhone Leads the Mobile Web March
As some of you may know, during its first weekend, Apple sold over 1 million 3G iPhones. This is an amazing development for mobile web in general, and we can only expect to see more competition from other companies who hope to repeat the 3G iPhone’s success. You would think that all of the media hype over the product has generated a spike in stock value for Apple. Which leads us to…
End-of-the-Quarter Results
It wasn’t the iPhone that made a splash for Apple. Higher iPod and Macintosh computer sales were responsible for Apple’s third-quarter profits, which exceeded expectations on Wall Street. On the other hand, profit margins were smaller when compared to last year’s third quarter, and investor confidence was slightly down. Perhaps some investors were skittish about other things, such as the speculation over CEO Steve Jobs’ health.
Similarly, Google witnessed a profit increase but still managed to disappoint, sending share value down. Yahoo had it even worse on Wall Street, probably due to its recent struggles with an ambiguous Microsoft deal and an attempted takeover.
On the bright side, the veteran (at least by web standards) site eBay came in strong with higher sales and profits. And for online marketers, spending on web advertising is still expected to rise.
Big Companies Attempt to Woo Each Other
So, what are companies doing to reassure investors and to guarantee a more stable future? One popular response seems to be: let’s work together! Of course, company alliances require trust and compromise, much like a courtship. Currently, you can find these partnerships at different stages:
Google and Digg are having “the talk.”
You know how you’ve been dating someone for a while, and you both decide to sit down and talk about where it’s all headed? Establishing a long-term relationship involves terms (“Is marriage a possibility in the future?” “What about kids?”) and negotiation (“You need to make more time for me if this is going to work”).
Likewise, it’s rumored that Digg is in final talks for a full acquisition by Google. If the deal goes through, Digg’s 3-year ad relationship with Microsoft will come to an end.
NYTimes.com and LinkedIn are taking it slow.
Some partnerships are not all about exclusivity (or acquisitions, if you will). Some are strictly strategic and do not require ownership of the other.
According to BtoB Magazine, the two companies have reached an agreement that will grant each other more traffic and, thus, revenue. Readers of the online newspaper will be able to “share and discuss stories with LinkedIn members in their network.” And members of LinkedIn will have articles recommended to them from the NYTimes.com sections of Technology and Business.
What’s interesting about this alliance is that it focuses on shared content (although contextual ads are to be expected). NYTimes.com gets to take advantage of impersonal information gathered by LinkedIn, such as each user’s current job and industry, allowing for target marketing. In the meantime, LinkedIn gets a boost in credibility and prestige by its association with an established media giant.
Yahoo and Microsoft may never work out their differences.
Ever been in one of those on-again, off-again romances? Well, it seems that Yahoo and Microsoft have been stuck in a tug-of-war of negotiations, never quite reaching an agreement as to the direction and nature of their partnership.
Earlier this week, “investor Carl Icahn and two of his nominees” will take seats on the shareholders board for Yahoo. The new appointment is being seen as a compromise between Yahoo CEO Jerry Yang and Icahn, who previously wanted to take over the company in order to sell it to Microsoft.
With Digg almost lost to Google and with Yahoo remaining independent, Microsoft seems to losing out on major partnerships. Poor Microsoft! Will it never find the right one to settle down with?
