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 Unbundled Economy

By Jessica E. Lessin · May 1, 2015 7:33am PDT · 2 comments

During a breakfast meeting in New York this week, I couldn’t help admire my dining companion’s shoes—so much so that I tried to buy them on Amazon.com while walking to my next meeting. Sold out. It seemed like a good time to try a personal shopping app, PS Dept, that promises to search the Internet for a variety of fashion items and then deliver... During a breakfast meeting in New York this week, I couldn’t help admire my dining companion’s...

Amazon CEO Jeff Bezos. Photo by Bloomberg.

Perils of Unknown for Investors Wading Into Amazon

By Martin Peers · Apr 30, 2015 10:01am PDT · 3 comments

When Amazon.com reported first-quarter earnings last week, the company surprised investors by revealing that its cloud computing unit, Amazon Web Services, was making a substantial profit, while its e-commerce business wasn’t as profitable as some thought. It was the opposite of what some had expected and a reminder that the inner workings of... When Amazon.com reported first-quarter earnings last week, the company surprised investors by...

Comcast CEO Brian Roberts. Photo by Bloomberg.

Next for Comcast: Web Video Outside Cable Footprint

By Amir Efrati · Apr 30, 2015 7:01am PDT

Now that Comcast has abandoned its takeover of Time Warner Cable, the cable company can proceed with its long-planned move to take on YouTube and others with a national online video service offering short-form programs. The proposed video service would mark a brand new chapter for Comcast, which would be able to play in a loosely regulated... Now that Comcast has abandoned its takeover of Time Warner Cable, the cable company can proceed...

Photo by Bloomberg.

Drop in Discover Traffic Poses Questions for Snapchat

By Tom Dotan · Apr 29, 2015 12:03pm PDT

Photo by Bloomberg.

Drop in Discover Traffic Poses Questions for Snapchat

By Tom Dotan · Apr 29, 2015 12:03pm PDT

Three months after Snapchat launched Discover, the section of the social networking app where media firms can post short articles and videos, the initial buzz has faded—along with the audience. But some of Discover’s arrangements with media firms are due to expire in June, giving Snapchat an opportunity to tweak both its content lineup and... Three months after Snapchat launched Discover, the section of the social networking app where...

Art by Matt Vascellaro.

Q&A

Lighting a Spark Beneath Big Data

By Steve Nellis · Apr 29, 2015 7:00am PDT · 1 comment

The so-called Big Data industry is a jumble of open-source software projects with such odd mascots that it resembles a box of animal crackers. There’s Hadoop (an elephant), Pig (see Porky, The) and Hive (an elephant’s head and a hornet’s body). The latest flavor is called Spark, whose logo is (mercifully) just a spark. Spark has become wildly... The so-called Big Data industry is a jumble of open-source software projects with such odd...

Data via PitchBook

Tech Deal Activity Drops In Q1 But Still High

By Martin Peers and Peter Schulz · Apr 28, 2015 10:05am PDT · 1 comment

After a boom in tech M&A in 2014, the first quarter of this year saw a downturn in deal activity, new data shows. But dealmaking remains elevated when looked at over a longer time frame, suggesting that this year could be another big year for mergers and acquisitions, even if not quite the blockbuster of 2014. As the attached chart shows,... After a boom in tech M&A in 2014, the first quarter of this year saw a downturn in deal...

Art by Jeff Greco.

Ties that Bind U.S. and China Tech

By Steve Nellis · Apr 28, 2015 7:01am PDT

You can tell a lot about a company based on where it puts its money. Take Chinese tech giants Baidu, Alibaba, Tencent and Xiaomi, each flush with cash, courtesy of their booming businesses. Increasingly they’re putting some of that money to work in emerging U.S. Internet companies, creating a new Web of U.S.-China tech alliances. (An earlier... You can tell a lot about a company based on where it puts its money. Take Chinese tech giants...

*Calculation: More Optimistic - Less Optimistic = The Information Score

Tech Bullishness Rising

By Jessica E. Lessin and Peter Schulz · Apr 27, 2015 9:31am PDT

*Calculation: More Optimistic - Less Optimistic = The Information Score

Subscriber Survey

Tech Bullishness Rising

By Jessica E. Lessin and Peter Schulz · Apr 27, 2015 9:31am PDT

The Information subscribers were more optimistic about the tech sector than the overall economy for the first time in four months, another good sign for tech. We tallied the survey a week before the Nasdaq hit a record close on strong tech earnings last week. The Information subscribers were more optimistic about the tech sector than the overall economy...

Art by Sam Lessin.

Modest Proposals

The Downside of Positive Feedback

By Sam Lessin · Apr 27, 2015 7:01am PDT · 2 comments

It is well known that anonymous and pseudo-anonymous feedback forums online, like Yelp and Craigslist, have a negativity problem. In emotionally disconnected and consequence-free environments, users tend towards over-the-top and unhelpful negative feedback, and just plain meanness. I am starting to believe that apps whose services involve human... It is well known that anonymous and pseudo-anonymous feedback forums online, like Yelp and...

The Truth About Female Networking

By Jessica E. Lessin · Apr 24, 2015 10:15am PDT · 1 comment

As the inbox of any female founder will prove, all-female networking is alive and well in the tech industry. There’s a “women” version of virtually every conference on the books and by my count, I’m a member of about a dozen groups of females in tech or media that convene regularly. But if women want to start closing the leadership gap that... As the inbox of any female founder will prove, all-female networking is alive and well in the...

Trying out Samsung's VR headset and phone. Photo by Bloomberg.

The Coming VR Software War

By Jessica E. Lessin and Tom Dotan · Apr 24, 2015 7:01am PDT · 3 comments

Since 2007, Google, Apple and others have been sparring over who controls the software that powers our phones. Now, a battle that some hope could similarly reshape power structures is brewing over software that powers virtual reality. It’s early days for the simulation technology, and even some of VR’s biggest supporters say it may not go... Since 2007, Google, Apple and others have been sparring over who controls the software that...

Data via The Information Research and Amazon

Tracking Amazon’s Cloud Profits to the Source

By Steve Nellis · Apr 23, 2015 3:32pm PDT · 1 comment

Data via The Information Research and Amazon

Tracking Amazon’s Cloud Profits to the Source

By Steve Nellis · Apr 23, 2015 3:32pm PDT · 1 comment

Amazon.com disclosed Thursday that its cloud computing unit is both bigger in revenue terms and a more important profit contributor to the retail giant than many analysts expected. But the figures also show the unit’s profit margin is declining, highlighting questions about which part of the cloud business is driving most of the growth at the... Amazon.com disclosed Thursday that its cloud computing unit is both bigger in revenue terms and a...

Short-selling specialist Jim Chanos. Photo by Bloomberg.

Shorting Private Stocks Would Be Good for Tech

By Martin Peers · Apr 23, 2015 7:00am PDT · 2 comments

Public market investors are pouring more into the private tech markets, able to put big sums to work and be well-positioned in the event a company goes public. But one thing these investors can’t do in the private-company market is to bet on a stock going down in price, by selling short. That should change. Investors who sell short—selling... Public market investors are pouring more into the private tech markets, able to put big sums to...

Photo by Bloomberg.

Rosenberg Takes Over Google Robotics, Temporarily

By Jessica E. Lessin and Amir Efrati · Apr 22, 2015 10:41am PDT · 1 comment

Google’s robotics unit—the former pet project of Andy Rubin—has had its leadership shuffled as it remains in limbo. The unit is now reporting to Jonathan Rosenberg, who oversaw Google’s products when Eric Schmidt was CEO but recently has taken a back seat, doing things like leading the operating committee at Motorola Mobility (before Lenovo... Google’s robotics unit—the former pet project of Andy Rubin—has had its leadership shuffled as it...

Art by Matt Vascellaro.

Q&A

Has Live Video Arrived in the West?

By Amir Efrati · Apr 22, 2015 7:00am PDT · 1 comment

Visiting the live-video app or website of YouNow can quickly become a voyeuristic journey into the narcissism of American Millennials, or their counterparts in other parts of the world. At any moment, hundreds or thousands of them are cursing, crying, laughing, rapping, singing, playing guitar, gossiping or even sleeping. They use the... Visiting the live-video app or website of YouNow can quickly become a voyeuristic journey into...

Data via Jana and Google Play

How Apps Get Skinny

By Amir Efrati and Peter Schulz · Apr 21, 2015 10:01am PDT · 2 comments

Data via Jana and Google Play

How Apps Get Skinny

By Amir Efrati and Peter Schulz · Apr 21, 2015 10:01am PDT · 2 comments

For mobile apps trying to make it big around the world, size matters. Storage space on low-end Android phones that dominate markets like India and China is severely limited. Every megabyte counts. The Information charted some of the smallest apps to see who has mastered the process of keeping it light and how. In a sign of the importance of the... For mobile apps trying to make it big around the world, size matters. Storage space on low-end...

Jawbone CEO Hosain Rahman. Photo by Bloomberg.

Inside Jawbone’s Up3 Misstep

By Reed Albergotti · Apr 21, 2015 7:01am PDT

Jawbone founder and chief executive officer Hosain Rahman was dealt bad news in late summer of 2014. Early tests of his company’s forthcoming flagship product, a health-tracking bracelet called the Up3 designed with swimmers in mind, showed the product wasn’t consistently water-resistant. Scheduled to be released during the holiday season late... Jawbone founder and chief executive officer Hosain Rahman was dealt bad news in late summer of...

Xero Chief Executive Rod Drury. Photo by Bloomberg.

Subscription Software’s New Playbook

By Steve Nellis · Apr 20, 2015 9:35am PDT · 1 comment

Selling software to small business isn’t for the faint of heart. But companies that do so are drawing big interest from venture capitalists optimistic about their ability to deploy certain best practices and tactics to retain customers. These tactics are also valuable for the growing number of startups selling subscriptions, such as food... Selling software to small business isn’t for the faint of heart. But companies that do so are...

Photo by Bloomberg.

Partners Push Snapchat to Reveal More Audience Data

By Tom Dotan · Apr 20, 2015 7:01am PDT

Snapchat CEO Evan Spiegel tweeted out a week ago that the app’s Coachella Live Story, a curated collection of video snippets submitted by people at the music festival, had drawn more than 40 million viewers over the weekend. For Snapchat’s advertisers and media partners, the question is who’s in that audience. And while the company has started... Snapchat CEO Evan Spiegel tweeted out a week ago that the app’s Coachella Live Story, a curated...

What Technologists Get Right in Criticizing Government

By Jessica E. Lessin · Apr 17, 2015 10:04am PDT

What Technologists Get Right in Criticizing Government

By Jessica E. Lessin · Apr 17, 2015 10:04am PDT

It sounds like a plot line out of HBO’s “Silicon Valley”: Techies, miffed by government interference in their business, proposing entities outside of government influence where they can run their businesses without worrying about laws. The tech industry has a long history of such ideas. Larry Page has sometimes mused about creating... It sounds like a plot line out of HBO’s “Silicon Valley”: Techies, miffed by government...