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 Unicorns That Weren’t

By Amir Efrati · Nov 20, 2014 11:49am PST · 5 comments

It’s been a headline-grabbing year for Internet M&A, with large-cap companies such as Apple, Facebook and Amazon.com making their biggest acquisitions in a long time, or ever. There have also been some multibillion-dollar consolidations (Zillow-Trulia, Priceline-OpenTable) as well as several high-profile spin-off announcements that... It’s been a headline-grabbing year for Internet M&A, with large-cap companies such as...

Goji developer Josh Williams. Photo by Tim Van Damme.

New iOS Apps Take Page from Android Playbook

By Eric Newcomer · Nov 20, 2014 7:01am PST

For years, Android has been the home of mobile feature customization, while Apple has tightly controlled iOS. But in iOS 8, Apple has loosened its restraints, giving developers more opportunities build apps that let people input information from the home screen, send elaborate communications from their keyboard or track their favorite articles... For years, Android has been the home of mobile feature customization, while Apple has tightly...

Illustration by Matt Vascellaro.

Q&A

PayPal Plots Its Future

By Steve Nellis · Nov 19, 2014 11:22am PST

You probably didn’t realize you’re tapping PayPal’s technology every time you take an Uber ride, rent a room on Airbnb or Venmo a friend after a round of beers. And Hill Ferguson, PayPal’s chief product officer, doesn’t have a problem with that. As PayPal gears up to become an independent public company by spinning... You probably didn’t realize you’re tapping PayPal’s technology every time you...

Google co-founder Sergey Brin pushed for an anti-censorship stance in China. Credit: Steve Jurvetson

Google’s China App Store Talks Heat Up

By Amir Efrati · Nov 19, 2014 7:01am PST · 3 comments

Google co-founder Sergey Brin pushed for an anti-censorship stance in China. Credit: Steve Jurvetson

Google’s China App Store Talks Heat Up

By Amir Efrati · Nov 19, 2014 7:01am PST · 3 comments

Google intends to launch a version of its Google Play app store in China, hoping to exercise greater influence over a market that accounts for roughly half the people who use its Android mobile operating system, say several people with knowledge of the company’s plans. In recent months, the company has indicated its intention to reverse a... Google intends to launch a version of its Google Play app store in China, hoping to exercise...

Nest CEO Tony Fadell. Photo by Bloomberg.

The Race to Cash In on the Connected Home

By Steve Nellis · Nov 18, 2014 10:56am PST · 1 comment

Expectations that the smart home will become one of the next big technology markets are running high. But who will pay what amount for Internet-connected thermostats, security systems and services—and to whom—isn’t yet clear. It’s a big question—some $300 billion big, according to Gartner Research, which estimates... Expectations that the smart home will become one of the next big technology markets are running...

Netflix content chief Ted Sarandos. Photo by Associated Press.

Netflix’s Profit Puzzle

By Martin Peers · Nov 18, 2014 7:01am PST

When it comes to online streaming businesses, Netflix has become the gold standard. But what is often overlooked is that Netflix has yet to show that its streaming service will generate gold in the form of robust profits. That’s an issue not only for shareholders who now value Netflix at $23 billion—in the range of mid-sized... When it comes to online streaming businesses, Netflix has become the gold standard. But what is...

Art by Sam Lessin.

Modest Proposals

Uber As Gatekeeper to the Physical World

By Sam Lessin · Nov 17, 2014 8:06am PST · 1 comment

Uber and Spotify this morning announced a new feature that will allow Uber customers to listen to their playlists while riding in Uber cars. At first blush, it may sound like a media stunt conveniently timed to Spotify’s need for some non-Taylor Swift news. But I feel a hint of something much more important and exciting going on. Could it... Uber and Spotify this morning announced a new feature that will allow Uber customers to listen to...

Qi Lu, executive vice president of Microsoft's applications and services group. Photo by Bloomberg.

Inside Microsoft Office’s Plans to Compete with Google Apps

By Steve Nellis · Nov 17, 2014 7:01am PST

Qi Lu, executive vice president of Microsoft's applications and services group. Photo by Bloomberg.

Inside Microsoft Office’s Plans to Compete with Google Apps

By Steve Nellis · Nov 17, 2014 7:01am PST

Microsoft is waging a charm offensive to convince developers to integrate their products with Office 365, its cloud-based productivity apps, a sign that it is stepping up competition with Google Apps. A compelling signal of how much is at stake: Microsoft has been striking alliances with companies it considers competitors. Since October,... Microsoft is waging a charm offensive to convince developers to integrate their products with...

Why Investors Should Bet on Disruptors, Not Innovators

By Jessica E. Lessin · Nov 14, 2014 9:13am PST · 3 comments

There’s a feeling in Silicon Valley that the latest breed of big startups—companies like Uber, Dropbox and Airbnb—are “all grown up,” meaning they’ve had their run up in valuations and investors seeking big returns must look elsewhere. But there’s also a feeling that the next big wave is proving hard to... There’s a feeling in Silicon Valley that the latest breed of big startups—companies...

John Pleasants, executive vice president of Samsung Media Solutions Center .

Samsung Preps New Mobile Video Service

By Jessica E. Lessin · Nov 13, 2014 11:07am PST

Samsung Electronics is rebooting its mobile video strategy in a test of whether short-form video content can drive mobile revenues just as games have. The South Korean company has earmarked several tens of millions of dollars to invest in short-form video for a new mobile product, according to people Samsung talked to about the effort.... Samsung Electronics is rebooting its mobile video strategy in a test of whether short-form video...

Alan Eustace oversees Google’s search organization.

Google Search Diaspora Shows Demand for Big Data Handlers

By Amir Efrati · Nov 13, 2014 7:00am PST · 2 comments

Google has hired and trained the world’s best search engineers. And so it is no surprise that some continue to trickle to fast-growing startups like Pinterest and Airbnb as well as Twitter, Facebook and even Wal-Mart Stores. This has accelerated in recent years as the company’s own search efforts have gone through some turmoil, with... Google has hired and trained the world’s best search engineers. And so it is no surprise...

Matthew Vascellaro

Hiring the Leader Tech Startups Live or Die By

By Eric Newcomer · Nov 12, 2014 11:23am PST · 1 comment

Matthew Vascellaro

Q&A

Hiring the Leader Tech Startups Live or Die By

By Eric Newcomer · Nov 12, 2014 11:23am PST · 1 comment

Startup founders may get the most public adulation, but a company’s head of engineering can play an equally pivotal role in shaping top technology companies. It can be the most highly paid position at a company, CEO included. When startups like Uber, Dropbox and Twitter needed a vice president of engineering, they tapped Riviera Partners,... Startup founders may get the most public adulation, but a company’s head of engineering can...

Photo by Bloomberg.

New Subscription IPOs Pose Test for Sector

By Steve Nellis · Nov 12, 2014 7:00am PST

Valuing subscription businesses is always challenging for investors, given the sector’s reliance on obscure and non-standard financial metrics that companies release selectively. Two young and fast-growing cloud software companies that filed to go public this week, both of which rely on such metrics, will test investor appetite. New Relic... Valuing subscription businesses is always challenging for investors, given the sector’s...

Art by Sam Lessin.

Subscriber Survey

The Information Subscribers Say…

By Eric Newcomer and Sam Lessin · Nov 11, 2014 10:35am PST · 1 comment

The Information subscribers are nine times more optimistic about the tech sector than they are about the overall economy, according to The Information’s first monthly Subscriber Viewpoint survey.And they’re increasingly optimistic about the long-term prospects of Apple, Alibaba and Airbnb. They’re far less bullish on Square and... The Information subscribers are nine times more optimistic about the tech sector than they are...

Time Warner Cable CEO Rob Marcus. Photo by Bloomberg.

How Cable Companies Prop Up Subscriber Numbers

By Martin Peers · Nov 11, 2014 7:00am PST

In the debate around cord cutting, one reality is often overlooked: Aggressive price promotions are helping prop up the number of video subscribers among cable and phone companies. And that appears to be creating a false sense of security throughout the TV industry. With cord cutting not taking off as expected, there’s less pressure on... In the debate around cord cutting, one reality is often overlooked: Aggressive price promotions...

Native Apps: A Game Startups Can’t Win

By Sam Lessin · Nov 10, 2014 11:05am PST · 6 comments

Modest Proposals

Native Apps: A Game Startups Can’t Win

By Sam Lessin · Nov 10, 2014 11:05am PST · 6 comments

Any software startup launching in 2014 has to abide by two rules.The product must be mobile-first, if not mobile-only. The desktop, at least from a consumer perspective, is on its way to extinction.Secondly, developers must build native apps for Android and iOS. A few years ago, there was hope that HTML5 would deliver a viable cross-platform... Any software startup launching in 2014 has to abide by two rules.The product must be...

Photo by Bloomberg.

Tech Companies Eye Credit to Fuel Customer Growth

By Tom Dotan · Nov 10, 2014 7:00am PST

There are few large technology companies that haven’t taken a stab at payments. Between Apple, Amazon, Google and offerings from countless varieties of startups, the desire for Silicon Valley to assert its control over the flow of commerce has been fully expressed in 2014. But if payments is an abiding interest for tech, credit is only... There are few large technology companies that haven’t taken a stab at payments. Between...

The Truth About Tech Companies and Professional Content

By Jessica E. Lessin · Nov 7, 2014 9:18am PST · 4 comments

It’s time to question the Faustian bargain big and small media companies keep making with fast-growing technology platforms. This week, reports surfaced that publishers including BuzzFeed, CNN, Time and ESPN are in talks to contribute to a new part of Snapchat that will showcase professional content. Snapchat is wise to court... It’s time to question the Faustian bargain big and small media companies keep making with...

Oracle founder and chief technology officer Larry Ellison. Photo by Bloomberg.

Database Startups Nip at Oracle

By Steve Nellis · Nov 7, 2014 7:00am PST

A sleepy corner of the technology world is getting a shakeup. For years, the database industry has been dominated by Oracle, with IBM, Microsoft and SAP rounding out the big players. But now investors and customers like eBay, LinkedIn and Netflix are flocking to new database firms trying to get an edge over incumbents by lowering costs and... A sleepy corner of the technology world is getting a shakeup. For years, the database industry...

Media Cos. Should Stop Milking and Start Investing

By Martin Peers · Nov 6, 2014 10:36am PST

Media Cos. Should Stop Milking and Start Investing

By Martin Peers · Nov 6, 2014 10:36am PST

If there were ever a time when traditional media companies should be investing in growth, this should be it. Given weak TV ratings and ad revenues, and a pay-TV market that is only likely to decline, businesses built on pay television need to diversify. Instead, as this week’s Data Point chart shows, most traditional media companies are... If there were ever a time when traditional media companies should be investing in growth, this...