Internet & Media
Q3 e-commerce spending up 9% to $32B, the fourth consecutive quarter of growth, according to research by Comscore. e-commerce spend is increasingly concentrated: the top 25 retailers command 75% market share up 5.5% share points from last year. 58% of e-jcommerce spending accrues to online only channel retailers.
EA announced a 5 year strategic partnership to use Facebook credits at a 70/30 revenue share. The agreement will impact Playfish games. Part and parcel of this agreement is a rumored cost reducing advertising deal for EA on Facebook.
Microsoft increased their forecasts for Kinect sales from 3 to 5M after observing strong initial demand for the motion sensing add-on to the XBOX 360.
Google is preventing Facebook from importing GMail contacts in effort to highlight Facebook’s closed data policies.
Facebook released Places and Deals in a mobile specific event. Places enables users to check in and Deals is a self-serve local offers platform. The implications of this launch will be profound for deal companies and mobile check-in services alike. Additionally, the company announced 200M mobile users. Lastly, the company announced single sign on for applications on both iPhone and Android.
Japanese mobile gaming behemoth, DeNA reported $336M (+216% y/y) in quarterly revenue and $169M (+342% y/y) in operating income mostly from virtual item sales. The company also announced their average revenue per user is 15 times greater than Zynga and 30 times greater than Facebook.
Zynga has released its first Android game, Live Poker, which will use Facebook’s mobile single sign on. This release is an indicator of the increasing importance developers are placing on Android.
Comscore data indicates Android is the fastest smart phose growing OS in the US and rapidly approaching Apple in market share at the expense of RIM and Microsoft.
The Samsung Galaxy S, an Android device, is the top selling phone in Japan, ousting the iPhone which held the distinction for 18 weeks.
In separate statements, Dell, Bank of America and Dell announced last week they will be migrating to Windows 7 for Dell and iPhone for BoA and Citi leaving their current BlackBerry infrastructure.
7% of mobile internet accessing Americans use location based services according to a study released by Pew.
Investments and M&A
Amazon will acquire Diapers.com for $540M. Diapers.com generated $89M, $182 and $275M (est.) in 2008, 2009 and 2010. The company had raised $78.5M in equity and $20M in debt.
Neustar has acquired Quova which provides 95% of the world’s geography IP lookups. Terms were not disclosed.
European venture investment fell to the lowest level in 10 years, €916 million, according to VentureSource. IT investments fell by 29% in volume and 11% in Euros invested.
Andreessen Horowitz announced a new $650M multi-stage fund bringing total assets under management to $1B in less than 1 year.