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IDG, the publisher of InfoWorld, ComputerWorld, MacWorld and other technology magazines has been shifting away from paper to online editions. This New York Times article mentions that the transition has generated more revenue than the company expected:

Today, I.D.G. says, the InfoWorld Web site is generating ad revenue of $1.6 million a month with operating profit margins of 37 percent. A year earlier, when it had both print and online versions, InfoWorld had a slight operating loss on monthly revenue of $1.5 million.

This is remarkable given that some IDG titles like CIO magazine are distributed free of free of charge. Advertisers subsidize the content for both the web-based and print editions. While some IDG titles like InfoWorld are online only, CIO is still available in a twice-monthly print edition, largely because advertisers believe the target audience is less likely to read the online version. CIO also features longer articles than InfoWorld these days.

IDG has also added multiple RSS feeds to its web sites, to capture readers who prefer to use feed aggregators.

Many of these IDG magazines have been cited in previous billso.com articles, such as this post from 7 May 2008. I also list some of these titles on my references page, which contains many reliable and authoritative sources for researchers, managers and my students.

The Microsoft-Yahoo takeover battle may be resolved soon, according to Wired:

One of the better insights came from Citigroup analyst Mark Mahaney, who handicapped the outcomes of the Microsoft-Yahoo war. Mahaney reckons there’s a 45 percent chance Yahoo sells out at a higher offer; a 40 percent chance Microsoft goes hostile; a 10 percent chance Microsoft walks away; and a 5 percent chance they both agree to the current price.

Yesterday’s New York Times had additional details. Saturday, 26 April 2008, was the deadline that Microsoft had set for Yahoo’s response to its recent purchase offer. According to this New York Times analysis, it seems unlikely that Microsoft CEO will abandon the company’s pursuit of Yahoo, because failure might send the wrong signals to the market.

Microsoft’s CFO, Chris Liddell, has led the company to spend more on acquisitions, and take on debt for the first time in the company’s 33-year history. He was profiled in Reuters article, which also discusses his management style.

To merge or not to merge

Microsoft doesn’t really need Yahoo, according to a recent research report. Michael Cusumano suggested in this New York Times article by Randall Stross that Yahoo is a poor fit with Microsoft’s enterprise software ambitions. SAP would be a better choice for Microsoft, especially after Oracle’s acquisition of BEA.

Another ZDnet report and this Wired article indicate that Yahoo has increased its severance packages for employees.

On 25 February 2008, Yahoo CEO asked his number two, Sue Decker, to join him on-stage at an important presentation, according to the New York Times. Decker has excellent ties with the advertising industry, and she was the real architect of Yahoo’s advertising business strategy.

Yang needs all the help he can get when facing nervous customers. At the event, Yang called Microsoft’s bid a “galvanizing event” for Yahoo managers, employees and board members. That’s some deep thinking… deep like a puddle. Threats of acquisition and unemployment can really command attention. The company’s plan to recapture its former dominance as an Internet portal is about seven years too late.

Photos courtesy of Carsten Knoch (top) and code_martial (bottom) through a Creative Commons license.

Related posts on billso.com

• 18 April 2008: Antitrust regulators would fight a Yahoo-Google combination
• 5 April 2008: Microsoft’s offer for Yahoo may disappear
• 17 February 2008: Shareholders may bring Microsoft and Yahoo together
• 4 February 2008: Microsoft acquistion of Yahoo faces roadblocks
• 1 February 2008: Microsoft makes offer for Yahoo
• 25 January 2008: Oracle, BEA and middleware

Should Apple just sell its Mac computers and iPods with a two-year subscription, like AT&T does with the iPhone? Subscription plans are a great way to lock in customers. At the end of the contract, the user could keep their device, or trade up for a newer model and a new two-year contract.

There are two common issues with Apple products: usability and reliability.

Users tend to praise the usability and design features of Apple products. The company keeps tight control over its hardware, as I mentioned on 15 April 2008 in my billso.com article about the Open Computer. Mac software tends to be more reliable than Windows software because developers have to deal with a narrower range of hardware and operating systems

It’s very easy to damage or break a laptop computer, as I have mentioned in my billso.com articles of 3 March 2008 and 30 September 2006. The iPhone and iPod Touch ranges use flash memory instead of hard drives to increase their shock resistance. Hard drives aren’t the only point of failure in laptops, of course, Jacks, connectors, and power supplies are vulnerable components.

The iPhone and iPod Touch have special indicators in the headphone jacks that change color if they are dunked in water; see this article on Wired and this HardMac post for more information. I guess Apple has had enough warranty returns because users took their iPods out in the rain or the pool, or dropped them in the toilet.

Display screens are the most fragile part of a laptop computer, of course.

From the Motley Fool and BrandWeek comes two updates on a favorite example of mine: Borders. Amazon had been handling Border’s e-commerce and web storefront, until Borders management ended the agreement in early 2007. Now there’s reports that Borders management is considering selling part or all of the company, after the company suspended its stock dividen and took on additional debt.

As both of the 2008 articles point out, Borders has plenty of competition. Warehouse stores sell bestsellers at steep discounts, and that keeps some potential Borders customers from making that extra trip. Barnes & Noble isn’t in great shape, but at least they’re competitive.

As I mentioned on 24 March 2008, the book publishing business is undergoing significant changes. So it’s not surprising that bookstores are struggling.