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

The Information’s 411 — Package Deal

By Tom Dotan · Jul 22, 2016 3:04pm PDT

Amir talks about the three brothers at Apple helping to build the software in its self-driving car. Zara explains why WeChat is different—and can do more—than any app Americans are familiar with. Amir talks about the three brothers at Apple helping to build the software in its self-driving...

Photo by Bloomberg.

Why Yahoo is a Bad Deal at Any Price

By Jessica E. Lessin · Jul 22, 2016 7:01am PDT · 6 comments

As I watch the sideshow that is the sale of Yahoo, I have one piece of advice for the bidders that sent offers to the Yahoo board this week: Back out. There are three reasons to buy a company, at any price. The first is that you basically have an easy way to make more than you paid, including the opportunity cost of the capital and the effort... As I watch the sideshow that is the sale of Yahoo, I have one piece of advice for the bidders...

Brian Sumner, a software engineer inside Apple's Titan car unit, speaks about his work during the MesosCon convention last year. Photo by Harrison Roberts.

At Apple, the Sumner Boys Help Build a Car

By Amir Efrati · Jul 21, 2016 7:01am PDT · 1 comment

In early 2011, when software engineer Brian Sumner joined Apple to work on Siri, a voice assistant for the iPhone that was still under wraps, the team was struggling to recruit engineers. So after his first months there went well, Mr. Sumner suggested to Siri’s leaders that they hire his brother, Kevin, another infrastructure engineer.... In early 2011, when software engineer Brian Sumner joined Apple to work on Siri, a voice...

Dreamworks Animation CEO Jeffrey Katzenberg. Photo by Bloomberg.

Jeffrey Katzenberg’s Next Venture

By Tom Dotan and Jessica E. Lessin · Jul 20, 2016 10:05am PDT

Dreamworks Animation CEO Jeffrey Katzenberg. Photo by Bloomberg.

Jeffrey Katzenberg’s Next Venture

By Tom Dotan and Jessica E. Lessin · Jul 20, 2016 10:05am PDT

Dreamworks Animation CEO Jeffrey Katzenberg is contemplating a new venture to produce high-quality short videos. The veteran movie executive has been trying to recruit people, according to two media executives who have either talked to Mr. Katzenberg about the project or have heard from people who have been pitched.Mr. Katzenberg reached a deal... Dreamworks Animation CEO Jeffrey Katzenberg is contemplating a new venture to produce...

Symphony Communication Services CEO David Gurle. Photo by Bloomberg.

Symphony Moves to Google’s Cloud

By Steve Nellis · Jul 20, 2016 7:31am PDT

Symphony Communication Services, the bank-backed messaging startup taking on Bloomberg LP, is moving most of its cloud computing business to Google from Amazon Web Services, Symphony CEO David Gurle told The Information in an interview.The deal is a symbolic win for Google, which is running a distant third behind Amazon Web Services and... Symphony Communication Services, the bank-backed messaging startup taking on Bloomberg LP, is...

Chinese commuters using WeChat on the Beijing subway. Photo by Hao Xia.

China’s WeChat Way of Life

By Zara Zhang · Jul 20, 2016 7:01am PDT · 5 comments

When I was in China last month, I went out to eat with several friends. When it came time to pay the bill, I started calculating who owed what. Laughing at me, my Chinese friends whipped out WeChat Wallet, which has a button called “Go Dutch.” Once you put in the amount of the bill and the number of people involved, WeChat generates... When I was in China last month, I went out to eat with several friends. When it came time to pay...

A scene from Starz's "Outlander" series. Photo by Starz.

Amazon a Surprise Force in Internet TV

By Tom Dotan · Jul 19, 2016 10:00am PDT · 2 comments

Late last year Amazon.com added a new aisle in its store: selling subscriptions to online streaming services like Starz and Showtime as an add-on to a Prime membership. The new offering has proved surprisingly popular, new figures show, demonstrating Amazon’s potential to become a powerhouse in subscription TV.For instance, Amazon has sold... Late last year Amazon.com added a new aisle in its store: selling subscriptions to online...

Art by Matt Vascellaro.

Chinese Startups to Watch

By Yunan Zhang and Zara Zhang · Jul 19, 2016 7:02am PDT · 2 comments

Art by Matt Vascellaro.

Chinese Startups to Watch

By Yunan Zhang and Zara Zhang · Jul 19, 2016 7:02am PDT · 2 comments

There are two tech markets that consistently generate billion-dollar tech companies: the U.S. and China. And the Chinese juggernauts often take longer to make themselves known than American firms. (Didi Chuxing, for instance, the on-demand ride company now valued at more than $25 billion, was underestimated and misunderstood for years in the... There are two tech markets that consistently generate billion-dollar tech companies: the U.S. and...

Chan Zuckerberg Initiative principals Priscilla Chan and Mark Zuckerberg. Photo by Bloomberg.

Zuckerberg Philanthropy May Target Housing

By Cory Weinberg · Jul 18, 2016 10:01am PDT · 2 comments

The philanthropic organization started by Mark Zuckerberg and Priscilla Chan is exploring ways to help alleviate the Bay Area’s most vexing problem: the high cost of housing.Representatives from the Chan Zuckerberg Initiative LLC have met with several housing experts affiliated with local governments, real estate groups and academia in... The philanthropic organization started by Mark Zuckerberg and Priscilla Chan is exploring ways to...

Art by Sam Lessin.

Modest Proposals

How to Profit from Political Correctness

By Sam Lessin · Jul 18, 2016 7:01am PDT · 4 comments

I have had trouble using third-party keyboards. Some offer some nice bells and whistles, but iOS and Android invest so much in their native keyboards that beating them at their own game is hard. That said, there is one keyboard idea that would be quite a good business—if anyone wants to build it. And that is a keyboard that checks your... I have had trouble using third-party keyboards. Some offer some nice bells and whistles, but iOS...

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Jul 16, 2016 8:02am PDT

Good Morning!We’re hoping you’re not spending too much time trying to evolve your Eevee. After all, there was a lot going on outside the Pokemon GO craze this week. Good Morning!We’re hoping you’re not spending too much time trying to evolve your...

The Information’s 411 — False Prophets

By Tom Dotan · Jul 15, 2016 1:18pm PDT

The Information’s 411 — False Prophets

By Tom Dotan · Jul 15, 2016 1:18pm PDT

Jessica explains why she's not sold on the augmented reality in Pokemon GO, or smartphones generally. Cory and Yunan delve into the headwinds for WeWork both in the US and in China. And Alfred lays out the trends in private tech financing. Jessica explains why she's not sold on the augmented reality in Pokemon GO, or smartphones...

Top Comments of the Week

By The Information Staff · Jul 15, 2016 11:19am PDT

Here are this week’s top comments as selected by our reporters and editors. Here are this week’s top comments as selected by our reporters and editors.

People playing Pokemon Go in New York City this week. Photo by Bloomberg.

My Problem with Pokemon GO

By Jessica E. Lessin · Jul 15, 2016 7:02am PDT · 4 comments

I have a confession to make. I don’t think Pokemon GO is all that awesome. Now, I’m not into games to begin with, so my reaction is hardly surprising. The bigger point is that the game reminds me of the broader problems with augmented reality.Our mobile phones are really crummy for layering digital information onto the real world.... I have a confession to make. I don’t think Pokemon GO is all that awesome. Now, I’m...

WeWork CEO Adam Neumann. Photo by Flickr/TechCrunch.

Property Developers Balk at Co-Living Firms

By Cory Weinberg · Jul 14, 2016 10:01am PDT · 3 comments

It looked like a perfect match: a 235-unit apartment building planned for San Francisco's hot South of Market neighborhood and WeWork's millennial-friendly co-living division, dubbed WeLive. But WeWork's efforts to lease the proposed building last year unraveled for an all-too-familiar reason—a banker got skittish.The... It looked like a perfect match: a 235-unit apartment building planned for San Francisco's...

Hony Capital Chairman Zhao Linghuan. Photo by Hony Capital.

WeWork’s China Challenge

By Yunan Zhang · Jul 14, 2016 7:01am PDT

Hony Capital Chairman Zhao Linghuan. Photo by Hony Capital.

WeWork’s China Challenge

By Yunan Zhang · Jul 14, 2016 7:01am PDT

After six years of disrupting co-working markets in the U.S. and around the world, WeWork may have met its match in China, where local, well-connected players compete fiercely for tenants in an oversaturated market.WeWork is planning to open five locations in China by the end of 2016, said Ole Ruch, managing director and head of operations... After six years of disrupting co-working markets in the U.S. and around the world, WeWork may...

Source: PitchBook; The Information Research

Investors Drive Hard Bargains in Private Tech

By Alfred Lee · Jul 13, 2016 6:54am PDT · 1 comment

If you’re looking for proof that the private tech market has chilled, consider this. The number of highly valued private tech firms raising new rounds of financing dropped by 63% to 11 in the first quarter. And average valuations in fundraisings grew only 35%, down sharply from 152% averaged in the fourth quarter.Fundraisings that were... If you’re looking for proof that the private tech market has chilled, consider this. The...

Source: PitchBook; The Information Research

Most Valuable Tech Firms Grant Fewest Investor Protections

By Alfred Lee · Jul 13, 2016 6:53am PDT

Small business lender Kabbage hit a billion-dollar valuation in the fourth quarter of last year, despite a challenging fundraising environment. But it also granted more investor protections than most other high-value private tech companies. That puts Kabbage near the top of The Information’s company rankings by deal terms friendly to... Small business lender Kabbage hit a billion-dollar valuation in the fourth quarter of last year,...

Source: PitchBook; The Information Research

When Tech Investors Can Block the Exits

By Alfred Lee · Jul 13, 2016 6:50am PDT · 2 comments

Investors looking to boost their returns have long attached strings to how private tech companies can sell or go public. But those purse strings can look more like chains as more high-value companies offer investors concessions like the right to block IPOs or accrue dividends paid out in an acquisition. Twenty-four percent of high-value... Investors looking to boost their returns have long attached strings to how private tech companies...

Source: The Information Research

Markdowns Squeeze Employee Stock

By Alfred Lee · Jul 13, 2016 6:49am PDT · 1 comment

Source: The Information Research

Markdowns Squeeze Employee Stock

By Alfred Lee · Jul 13, 2016 6:49am PDT · 1 comment

It’s no secret that the gap has been steadily narrowing between what mutual funds think some private tech firms are worth and where those firms have issued employee stock options. But in the past couple of quarters the gap has disappeared entirely for some companies.In the past six months, the half-dozen biggest mutual fund investors in... It’s no secret that the gap has been steadily narrowing between what mutual funds think...