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

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Recent Editions

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Feb 6, 2016 8:01am PST

Good Morning!Happy Super Bowl weekend. And to San Francisco residents tired of the traffic snarls caused by the hubbub, hang in there—we’re almost through. On to the news... Good Morning!Happy Super Bowl weekend. And to San Francisco residents tired of the traffic snarls...

The Information's 411

The Information’s 411 — Enviable Titles

By Tom Dotan · Feb 5, 2016 11:30am PST

Twitter’s earnings next week are bound to draw attention as the instability at the company continues.On this week’s podcast, Amir elaborated on his story previewing Twitter’s revenue and user growth. It’s not all bad news for the company, as brand ads are outperforming expectations. But direct response ads are starting to... Twitter’s earnings next week are bound to draw attention as the instability at the company...

The End of Tech Startups

By Jessica E. Lessin · Feb 5, 2016 7:01am PST · 14 comments

There’s no doubt we’ve been through an unprecedented startup boom over the past decade or so, for one obvious reason. Technologies like cloud computing, collaboration tools and distribution platforms (app stores, social media) have fundamentally driven down the cost of starting a company. This is true across industries. It’s... There’s no doubt we’ve been through an unprecedented startup boom over the past...

Hortonworks CEO Rob Bearden. Photo by Hortonworks.

Overhang on Hortonworks Stock: Yahoo

By Steve Nellis · Feb 4, 2016 11:15am PST · 1 comment

Hortonworks CEO Rob Bearden. Photo by Hortonworks.

Overhang on Hortonworks Stock: Yahoo

By Steve Nellis · Feb 4, 2016 11:15am PST · 1 comment

Big-data firm Hortonworks’ stock price has dropped by half recently, ahead of the company’s sale of stock. But the shares could come under more pressure if Yahoo sells its big chunk of Hortonworks shares.Yahoo owns 13.8% of Hortonworks, whose technology was invented by a group of Yahoo engineers. Yahoo invested when they formed... Big-data firm Hortonworks’ stock price has dropped by half recently, ahead of the...

GitHub product chief Kakul Srivastava. Photo by Flickr/Yahoo.

What Happened at GitHub

By Steve Nellis · Feb 4, 2016 7:01am PST · 1 comment

Underlying the exodus of several GitHub executives over the past few months has been a key strategic debate: whether the company should focus on the needs of its millions of users or a small group of companies that write big checks, say several people with knowledge of GitHub’s inner workings.It’s a debate with echoes in the... Underlying the exodus of several GitHub executives over the past few months has been a key...

Twitter COO Adam Bain. Photo by Flickr/Sportsfile.

The Good and Bad In Twitter’s Ad Business

By Amir Efrati · Feb 3, 2016 7:01am PST · 3 comments

Twitter’s active user growth in the fourth quarter of last year was disappointing to people inside the company, according to one person briefed on the figures. That suggests next week’s earnings aren’t likely to change gloomy investor attitudes toward the company.But Twitter’s advertising business isn’t a monolith.... Twitter’s active user growth in the fourth quarter of last year was disappointing to people...

Salesforce COO Keith Block, left, with Michael Dell at the World Economic Forum in Davos last year. Photo by Bloomberg.

The Meaning Behind Salesforce’s Executive Moves

By Steve Nellis · Feb 2, 2016 9:32am PST

With the promotion of Salesforce.com’s Keith Block to chief operating officer, announced Tuesday, the company gains a potential successor to CEO Marc Benioff who can take on more of the Salesforce founder’s responsibilities with customers and within the company.Salesforce’s previous chief operating officer, George Hu, was more... With the promotion of Salesforce.com’s Keith Block to chief operating officer, announced...

Sources: RBC Capital Markets; Company Filings; The Information Research

How Twitter Stacks Up Against Rivals

By Tom Dotan and Peter Schulz · Feb 2, 2016 7:01am PST · 1 comment

Sources: RBC Capital Markets; Company Filings; The Information Research

How Twitter Stacks Up Against Rivals

By Tom Dotan and Peter Schulz · Feb 2, 2016 7:01am PST · 1 comment

Anyone wondering why Twitter might be of interest to a potential acquirer should look at the accompanying chart. It shows just how much revenue per user Twitter generates compared with its more highly valued social media rivals.Twitter’s estimated revenue per user for 2015 is two thirds of Facebook’s and many multiples of Snapchat.... Anyone wondering why Twitter might be of interest to a potential acquirer should look at the...

Facebook COO Sheryl Sandberg. Photo by Bloomberg.

Instagram’s Next Test

By Cory Weinberg · Feb 1, 2016 10:01am PST

When it wanted to promote the Los Angeles Marathon to younger runners, the race operator Conqur Endurance Group decided to try advertising on Instagram. The photo-sharing app was cheaper than Facebook, where Conqur already spent money, according to Ryan Cavinder, the race company’s marketing manager. The experience worked well enough that... When it wanted to promote the Los Angeles Marathon to younger runners, the race operator Conqur...

Google CEO Sundar Pichai. Photo by Bloomberg.

Google Signals Apple-like Direction for Nexus Phones

By Amir Efrati · Feb 1, 2016 7:01am PST · 1 comment

Google CEO Sundar Pichai and his lieutenants have signaled to colleagues and outsiders that the company wants to take greater control over its program for making “Nexus” smartphones, which are powered by Google’s Android software. The change would effectively reduce the level of involvement of hardware partners that make the... Google CEO Sundar Pichai and his lieutenants have signaled to colleagues and outsiders that the...

Jack Dorsey. Photo by AP.

What’s Up at Twitter

By Jessica E. Lessin · Jan 31, 2016 5:27pm PST · 14 comments

It is hard to overstate how important the next 10 days are for Twitter, a Silicon Valley sensation turned soap opera that continues to garner more public fascination than its business probably warrants.CEO Jack Dorsey has been scrambling to announce several new board members alongside the company’s Feb. 10 earnings report, which is... It is hard to overstate how important the next 10 days are for Twitter, a Silicon Valley...

The Information You Missed This Week

By The Information Staff · Jan 30, 2016 8:01am PST

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Jan 30, 2016 8:01am PST

Good Morning! Lots of tech news this week. Companies released quarterly earnings, generating either euphoria (Facebook) or pessimism (Amazon, Apple) or something in between (Microsoft). It only intensifies anticipation for next week, when Alphabet reports non-Google results separately for the first time. Good Morning! Lots of tech news this week. Companies released quarterly earnings, generating...

The Information's 411

The Information’s 411 — Shrinking Pies

By Tom Dotan · Jan 29, 2016 1:52pm PST

Whether you think it’s an industry-wide correction or isolated examples, the specter of down rounds have been circling Silicon Valley’s unicorns. Both Foursquare and Jawbone had their valuations cut down in recent fundings, yet investors and executives have argued that these down rounds are employee friendly. Jessica looked at the... Whether you think it’s an industry-wide correction or isolated examples, the specter of...

Foursquare Executive Chairman Dennis Crowley. Photo by Bloomberg.

The Truth About “Employee-Friendly” Financing Deals

By Jessica E. Lessin · Jan 29, 2016 7:01am PST

There’s a new buzzword in Silicon Valley that should be raising eyebrows: employee-friendly.You saw it earlier this month when Foursquare discussed a new round of financing at less than half the company’s highest valuation. You saw it when Jawbone CEO Hosain Rahman told the Financial Times that the company’s recent... There’s a new buzzword in Silicon Valley that should be raising eyebrows:...

IRS commissioner John Koskinen. Photo by AP.

The Ticking Time Bomb in Startups’ Books

By Reed Albergotti · Jan 28, 2016 2:39pm PST · 6 comments

There’s often tension between a private tech firm and its accountants over 409A stock option valuations. If set too much below a company’s market value, the IRS might come calling. If set too high, employees might not be happy as their upside would be less.But those tensions could surface more this year if a wave of acquisitions... There’s often tension between a private tech firm and its accountants over 409A stock...

Information Score = More Optimistic - Less Optimistic

Silicon Valley’s Most Popular Dealmakers

By Steve Nellis and Peter Schulz · Jan 28, 2016 7:00am PST

Information Score = More Optimistic - Less Optimistic

Subscriber Survey

Silicon Valley’s Most Popular Dealmakers

By Steve Nellis and Peter Schulz · Jan 28, 2016 7:00am PST

The Information subscribers appear to have a thing for Goldman Sachs. The investment banking giant, which has been trying to bolster its tech credentials for years, won our subscriber poll of investment banks in every category we asked about. Subscribers identified it as the bank they’d most likely select to help go public, as well as the... The Information subscribers appear to have a thing for Goldman Sachs. The investment banking...

Snapchat CEO Evan Spiegel. Photo by Flickr/TechCrunch.

Snapchat Eyes App Install Ads

By Tom Dotan · Jan 27, 2016 7:01am PST · 2 comments

As Snapchat faces down a big year, and a true test of its ability to create a sustainable business, the company may be dipping its toe into Facebook’s domain for mobile revenue: app install ads.Snapchat’s sales representatives have indicated in recent discussions with ad agencies it is considering selling app install ads, according... As Snapchat faces down a big year, and a true test of its ability to create a sustainable...

Prosper executive chairman Stephan Vermut. Photo by Bloomberg.

How Colder Deal Climate Could Change Payouts

By Alfred Lee · Jan 26, 2016 11:01am PST

Last fall, New York startup BillGuard was acquired by Prosper Marketplace for a price of between $25 million and $30 million, depending on future performance. In many ways it was an unremarkable exit. While the price was below BillGuard’s previous valuation in the $40 million range, it was hardly a fire sale. Series A investors even made... Last fall, New York startup BillGuard was acquired by Prosper Marketplace for a price of between...

Come to China With The Information!

By Jessica E. Lessin · Jan 26, 2016 7:51am PST · 2 comments

As you know, we’re very excited about China at The Information. And so, we’re thrilled to invite a small number of our subscribers to join me for a special opportunity for exclusive, on-the-ground access to technology leaders in Beijing the week of March 14, 2016.We’re looking for a small number of U.S. entrepreneurs,... As you know, we’re very excited about China at The Information. And so, we’re...

Source: Dell Procurement & Engineering

Flash Startups Squeezed by Falling Prices

By Steve Nellis and Peter Schulz · Jan 26, 2016 7:01am PST · 6 comments

Source: Dell Procurement & Engineering

Flash Startups Squeezed by Falling Prices

By Steve Nellis and Peter Schulz · Jan 26, 2016 7:01am PST · 6 comments

In a big development for the storage industry, solid state “flash” drive prices are falling so much that later this year they’ll be nearly as cheap as enterprise-grade disk drives, after years of flash drives being the pricier option. That promises to cut costs for data centers. But it will create more competition among... In a big development for the storage industry, solid state “flash” drive prices are...