The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

Scroll CEO Tony Haile. Art by Matt Vascellaro.

The Trouble With News Bundles

By Tony Haile · May 26, 2017 7:00am PDT · 15 comments

Last week, The Information Editor-in-Chief Jessica Lessin suggested in a column that an aggregated news bundle on the cable model could be a solution to the news industry’s business model woes. An all-access pass could indeed be better for consumers and make for a more elegant web experience. And it isn’t going to happen. Given the... Last week, The Information Editor-in-Chief Jessica Lessin suggested in a column that an...

The office of Airbnb, one of the private tech firms that gets a lot of attention from private tech stock analysts. Photo by Flickr/Open Grid Schedular.

Life as a Private Tech Stock Analyst

By Alfred Lee · May 25, 2017 10:17am PDT · 4 comments

In his last job, stock market analyst Santosh Rao regularly met with executives from the public telecom companies he wrote reports about. In his current job, Mr. Rao can barely even get his phone calls returned.Mr. Rao is one of a small but growing group of private tech research analysts who publish reports about venture-backed companies for... In his last job, stock market analyst Santosh Rao regularly met with executives from the public...

SoftBank Chairman and CEO Masayoshi Son. Photo by Bloomberg.

SoftBank’s $93 Billion Vision Problem

By Shai Oster · May 25, 2017 7:02am PDT · 2 comments

Nearly two decades ago, SoftBank founder Masayoshi Son stunned his peers when he made a $20 million bet on then-unknown Alibaba. Today, his stake in the online marketplace is valued at $90 billion. Fueled by that outsize success, he is taking an even bigger gamble—with much higher risks—as he launches the world’s biggest-ever... Nearly two decades ago, SoftBank founder Masayoshi Son stunned his peers when he made a $20...

Snap CEO Evan Spiegel. Photo by Bloomberg.

Inside Snap’s Growth Struggles

By Tom Dotan · May 24, 2017 7:00am PDT · 6 comments

Snap CEO Evan Spiegel. Photo by Bloomberg.

Inside Snap’s Growth Struggles

By Tom Dotan · May 24, 2017 7:00am PDT · 6 comments

Last summer, members of Snap’s growth team presented CEO Evan Spiegel and other executives with worrying data showing user growth had slowed sharply. In one week, the company had lost 1 million daily active users, out of its total of around 150 million.The growth team spelled out to Mr. Spiegel a number of likely causes. Among the top... Last summer, members of Snap’s growth team presented CEO Evan Spiegel and other executives...

AWS CEO Andrew Jassy. Photo by Bloomberg.

The Bright Side of AWS’s Slowing Revenue Growth

By Eugene Kim · May 23, 2017 11:13am PDT · 2 comments

When shopping startup Moovweb first launched a decade ago, it used Amazon Web Services, paying by the hour like many startups do. Now, the company pays 40% of its million-dollar annual AWS bill a year in advance—and gets a 30% discount in exchange.Moovweb is one of a growing number of companies committing to use AWS for as long as three... When shopping startup Moovweb first launched a decade ago, it used Amazon Web Services, paying by...

Anthony Levandowski discussing Uber's self-driving car effort last December. Photo by AP.

At Uber, Waymo Lawsuit Brings New Risks

By Amir Efrati · May 23, 2017 7:01am PDT · 4 comments

Shortly after Alphabet’s self-driving car unit Waymo filed a lawsuit in late February alleging Uber stole its trade secrets, Uber CEO Travis Kalanick told employees in a weekly, companywide staff meeting that “we looked at everything” and determined the company did nothing wrong, said two people who heard the remarks. Later, at... Shortly after Alphabet’s self-driving car unit Waymo filed a lawsuit in late February...

A vending machine equipped with batteries for rental. Photo by Laidian.

VCs Flock to China’s Latest Rental Craze: Smartphone Batteries

By Yunan Zhang · May 22, 2017 10:02am PDT · 2 comments

If you’re caught in a downpour in China, you can rent an umbrella to keep you dry. If you’re looking for a game of pickup basketball, you can rent the ball. And now you can rent batteries to charge your smartphone, ensuring you’re no longer stranded far from home with a dead device. Millions of Chinese are using these services... If you’re caught in a downpour in China, you can rent an umbrella to keep you dry. If...

Art by Sam Lessin.

Time to Pay Attention to Cryptocurrencies

By Sam Lessin · May 22, 2017 7:02am PDT · 11 comments

Art by Sam Lessin.

Modest Proposals

Time to Pay Attention to Cryptocurrencies

By Sam Lessin · May 22, 2017 7:02am PDT · 11 comments

In the last few weeks there have been massive runups in several cryptocurrencies. The market capitalization of Bitcoin has doubled since the start of the year to the equivalent of more than $30 billion. Currencies like Ethereum and Ripple are up even more sharply in the last two months. Ethereum is up 10 times to a capitalization of more than... In the last few weeks there have been massive runups in several cryptocurrencies. The market...

Modest Conversations

Modest Conversations: The Near Future of AI

By Sam Lessin · May 21, 2017 1:43pm PDT · 1 comment

For this week’s modest conversation we have a double header on the near future of AI. Lukas Biewald, the founder of Crowdflower and intern at OpenAI takes us through his thinking on what happens next in the land of AI.Daniel Gross, formerly of Greplin and Apple, and now partner at Y Combinator on the AI vertical shares his views of... For this week’s modest conversation we have a double header on the near future of AI....

The Weekly Digest

The Information You Missed This Week

By The Information Staff · May 20, 2017 8:01am PDT

Good Morning!We learned this week another reason why Silicon Valley and Washington, D.C., will never be aligned. In the tech world, oversharing is a key feature in your product strategy. In D.C., it causes grave international security concerns. Good Morning!We learned this week another reason why Silicon Valley and Washington, D.C., will...

The Information’s 411 — Airbnb in China

By Tom Dotan · May 19, 2017 12:50pm PDT · 1 comment

Alfred talks about Spotify's losses and its unusual path to going public. Juro explains how Airbnb is coming up against cultural challenges in China. Alfred talks about Spotify's losses and its unusual path to going public. Juro explains how...

Art by Matt Vascellaro.

What’s Next in the Business of News

By Jessica E. Lessin · May 19, 2017 7:02am PDT · 13 comments

Art by Matt Vascellaro.

What’s Next in the Business of News

By Jessica E. Lessin · May 19, 2017 7:02am PDT · 13 comments

I am a big believer that history provides more clues than we give it credit for. And this is a good lesson to keep in mind as we wonder which business models will take hold in industries disrupted by technology. In the news business, the patterns are strong. Today’s interest in premium newsletters and sponsored content, to take just two... I am a big believer that history provides more clues than we give it credit for. And this is a...

Spotify CEO Daniel Ek. Photo by Bloomberg.

Spotify’s Loss Widens Despite Big Jump in Revenue

By Alfred Lee · May 18, 2017 8:09am PDT · 3 comments

Spotify’s operating loss rose significantly to between 300 million and 400 million euros last year, the music streaming company has told its investors, from 184 million euros in 2015. That’s despite a 50% increase in revenues to 2.9 billion euros ($3.1 billion), according to two people briefed on its numbers. The wider loss... Spotify’s operating loss rose significantly to between 300 million and 400 million euros...

Huawei's former chief designer of user experience Abigail Brody. Photo by Florian Brody

Huawei Loses Ex-Apple Designer Hired to Revamp Smartphone Software

By Juro Osawa · May 18, 2017 7:01am PDT

A former longtime Apple designer who joined Huawei two years ago with much fanfare to help improve the oft-criticized user interface of the Chinese company’s smartphones, has recently quit. Abigail Brody’s departure highlights the risks and challenges facing Chinese technology giants as they step up their recruitment in Silicon... A former longtime Apple designer who joined Huawei two years ago with much fanfare to help...

Photo by Flickr/Ian Lamont.

Top Sales Executive Quits Dropbox

By Eugene Kim · May 17, 2017 2:28pm PDT

Dropbox’s top global sales executive, Thomas Hansen, has quit suddenly, less than two years after joining, The Information has learned.Mr. Hansen, who came from Microsoft in July 2015, oversaw the company’s effort to sell more to corporate customers. His hiring was considered a key step in Dropbox’s desire to expand out of the... Dropbox’s top global sales executive, Thomas Hansen, has quit suddenly, less than two years...

Sentient CEO Babak Hodjat. Photo by Bloomberg.

Early AI Startup Sentient Diversifies As AI Field Gets More Crowded

By Kevin McLaughlin · May 17, 2017 7:00am PDT

Sentient CEO Babak Hodjat. Photo by Bloomberg.

Early AI Startup Sentient Diversifies As AI Field Gets More Crowded

By Kevin McLaughlin · May 17, 2017 7:00am PDT

Sentient Technologies was an AI startup years before AI became fashionable. Now that the field has become crowded with big and small rivals, Sentient wants to diversify its business.The company, whose founders include the engineers who went on to found high-profile AI startups Siri and Viv, has been looking to raise what would be its first round... Sentient Technologies was an AI startup years before AI became fashionable. Now that the field...

Jana CEO Nathan Eagle. Photo by Flickr/PopTech

The Big Interview

Verizon-backed Jana Rides India’s Mobile Web Boom and Bust

By Cory Weinberg · May 16, 2017 11:51am PDT

One small beneficiary of the investment rush into Indian internet companies two years ago was Jana, a Boston-based startup that sells ads on an app store for Indian phone users. Jana sold ad space to Indian firms like Flipkart and U.S. companies Amazon.com and Twitter, each hoping to reach Jana’s 40 million registered users. That business... One small beneficiary of the investment rush into Indian internet companies two years ago was...

Source: SEC Filings, mutual fund reports

Mutual Funds Double Down on Snap—Will They Hold On?

By Alfred Lee and Mike Sullivan · May 16, 2017 7:00am PDT

Fidelity Investments and T. Rowe Price more than doubled their stakes in Snap in the month after the company went public, buying around $500 million of stock between them, an analysis of SEC filings and online portfolio reports show. As a result, the two funds appear to have maintained their pre-IPO status as the biggest mutual fund investors in... Fidelity Investments and T. Rowe Price more than doubled their stakes in Snap in the month after...

Uber CEO Travis Kalanick. Photo by Bloomberg.

Uber to Give Ex-Employees More Time to Exercise Options

By Amir Efrati · May 15, 2017 5:42pm PDT · 3 comments

Longtime employees of Uber will find it easier to quit the company, thanks to a change in how it deals with stock options.The ride-sharing firm is dropping the requirement that employees who quit must exercise any options they have within 30 days, or lose them, according to three people briefed on the change. Instead the departing employees will... Longtime employees of Uber will find it easier to quit the company, thanks to a change in how it...

HBO's former programming chief Michael Lombardo with Silicon Valley producer Mike Judge. Photo by AP.

Apple in Search for Programming Chief

By Tom Dotan · May 15, 2017 2:41pm PDT

HBO's former programming chief Michael Lombardo with Silicon Valley producer Mike Judge. Photo by AP.

Apple in Search for Programming Chief

By Tom Dotan · May 15, 2017 2:41pm PDT

HBO’s former programming head Michael Lombardo met with Apple executives earlier this year to discuss Apple’s video programming strategy, says a person familiar with the talks. The talks suggest Mr. Lombardo could be a candidate to run Apple’s video efforts. Apple has been looking to fill that role, said another person briefed... HBO’s former programming head Michael Lombardo met with Apple executives earlier this year...