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

Art by Sam Lessin.

Modest Proposals

Why VCs are the New Investment Bankers

By Sam Lessin · Jun 29, 2015 7:01am PDT · 3 comments

On Friday, Jessica wrote about how special purpose vehicles, SPVs, are good for VCs and for companies looking to maximize valuations. I think there’s another interesting angle that’s been coming up in discussions of late: how technology, coupled with the intersection of Sarbanes-Oxley and the JOBS Act, is turning VCs shopping SPVs into... On Friday, Jessica wrote about how special purpose vehicles, SPVs, are good for VCs and for...

Silicon Valley’s Easiest Money

By Jessica E. Lessin · Jun 26, 2015 7:19am PDT

As Uber looks for investors to buy more preferred stock valued at $50 billion, it has been turning to the usual late-stage funds. But it also enlisted one of its earliest investors, Shervin Pishevar, to shop a side fund, or special purpose vehicle, to bring individual investors into the round, three people have told me. SPVs have become... As Uber looks for investors to buy more preferred stock valued at $50 billion, it has been...

At left, YouTube CEO Susan Wojcicki. Photo by Fortune Live Media.

YouTube Subscriptions Hit Creator Roadblock

By Tom Dotan · Jun 25, 2015 12:54pm PDT

Late last year, YouTube’s CEO Susan Wojcicki began speaking up at conferences about a coming subscription service, where people would pay for an ad-free version of the video streaming site. But while YouTube executives are currently leaning hard on content owners to sign up in exchange for the promise of shared subscription dollars, some are... Late last year, YouTube’s CEO Susan Wojcicki began speaking up at conferences about a coming...

At left, James Slavet of Greylock Partners. Photo by TechCrunch.

Amid Funding Frenzy, Startups Dodge Diligence

By Reed Albergotti · Jun 25, 2015 7:01am PDT · 3 comments

At left, James Slavet of Greylock Partners. Photo by TechCrunch.

Amid Funding Frenzy, Startups Dodge Diligence

By Reed Albergotti · Jun 25, 2015 7:01am PDT · 3 comments

Bob Kocher, a physician and partner at Venrock Capital who focuses on healthcare IT, knew something didn’t feel quite right about the pitch. The startup touted its vast relationship with healthcare giant Kaiser Permanente, claiming it would eventually gain access to thousands of users and millions of dollars in revenue. But when Dr. Kocher did... Bob Kocher, a physician and partner at Venrock Capital who focuses on healthcare IT, knew...

Photo by Bloomberg.

The Information Series

Four Questions for Snapchat

By Tom Dotan · Jun 24, 2015 10:18am PDT · 5 comments

When people ask about the future of Snapchat, what they often mean is “How long can Evan Spiegel and company keep this up?” The torrid growth rate; the seemingly endless investment rounds; the deliberate rollout of new products releases that have thus far avoided alienating users. Eventually, each one of these defining characteristics of... When people ask about the future of Snapchat, what they often mean is “How long can Evan Spiegel...

Apple CEO Tim Cook. Photo by Bloomberg.

Apple Moves to Block iPhone App-Scanning

By Amir Efrati · Jun 24, 2015 7:00am PDT · 2 comments

In order to decide what ad to show to a person, Facebook and Twitter have sometimes drawn on data about other apps that are already installed on that person’s phone. If that person has downloaded a lot of games, including ones that cost money, they may be shown an ad for a paid game that they don’t already have. But now Apple is quietly moving... In order to decide what ad to show to a person, Facebook and Twitter have sometimes drawn on data...

Data via Crunchbase, Company Filings

How Long Will the Online Lending Boom Last?

By Tom Dotan and Peter Schulz · Jun 23, 2015 10:01am PDT · 1 comment

The amount of money transacted through leading online loan services has skyrocketed to $5.1 billion in four years. And so, it is no surprise that VCs and private equity firms are throwing more money into services like Prosper and lesser-known startups like CommonBond. But with the field of online lending services now well-seeded with startups,... The amount of money transacted through leading online loan services has skyrocketed to $5.1...

Art by Matt Vascellaro.

Making Microsoft a Little More Like Google

By Steve Nellis · Jun 23, 2015 7:01am PDT · 2 comments

Art by Matt Vascellaro.

Q&A

Making Microsoft a Little More Like Google

By Steve Nellis · Jun 23, 2015 7:01am PDT · 2 comments

Julie Larson-Green has had a lot of jobs at Microsoft over the past two decades. Her latest might be the most important, even though it dropped her lower on the org chart. Since last year, Ms. Larson-Green has been in charge of unifying the look and feel of all major software groups, from Office to Bing to Skype. Her job, in a nutshell, is to... Julie Larson-Green has had a lot of jobs at Microsoft over the past two decades. Her latest might...

Microsoft CEO Satya Nadella. Photo by Bloomberg.

Behind Microsoft’s Deals, a Desire to Block Rivals

By Steve Nellis · Jun 22, 2015 7:01am PDT · 1 comment

When Microsoft paid more than $100 million for the calendar app Sunrise in February, eyebrows raised across Silicon Valley. The app duplicated features some of Microsoft’s products already had, and Sunrise didn’t yet generate revenue. Microsoft had good reason to pay up. Sunrise had already attracted attention from Dropbox, which held talks with... When Microsoft paid more than $100 million for the calendar app Sunrise in February, eyebrows...

The Myth of the Consumer-Enterprise Hybrid

By Jessica E. Lessin · Jun 19, 2015 7:30am PDT

Evernote, Square, Dropbox: all billion-dollar companies whose days as fast-growing tech darlings are over. While they’re taking in tens of millions or more in revenues, none has yet proven it can be profitable over the long-term. And they’re wobbling. Phil Libin of Evernote told Amir this week that he’s searching for his replacement,... Evernote, Square, Dropbox: all billion-dollar companies whose days as fast-growing tech darlings...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

Facebook Reckons with Music Piracy in Videos

By Tom Dotan · Jun 18, 2015 2:11pm PDT

As Facebook continues to flex its muscles in video to challenge YouTube, it’s running up against a problem that’s dogged video-streaming sites for years: music. Unlike YouTube, which has deals with the record labels allowing users to upload some videos with copyrighted songs playing in the background, Facebook hasn’t yet struck deals with any of... As Facebook continues to flex its muscles in video to challenge YouTube, it’s running up against...

Aparna Chennapragada runs Google Now. Photo by Bloomberg.

Google’s War Against Apps

By Amir Efrati · Jun 18, 2015 7:12am PDT · 7 comments

Aparna Chennapragada runs Google Now. Photo by Bloomberg.

Google’s War Against Apps

By Amir Efrati · Jun 18, 2015 7:12am PDT · 7 comments

Google’s battle to erode the importance of apps is intensifying. The search giant last fall secretly acquired an “app streaming” startup called Agawi whose technology allows people to access apps on their smartphone without downloading them first. The acquisition, which hasn’t been previously reported, provides strong clues about the direction... Google’s battle to erode the importance of apps is intensifying. The search giant last fall...

Lachlan, Rupert and James Murdoch. Photo by Bloomberg.

What Everyone Is Missing About Fox’s Management Change

By Martin Peers · Jun 17, 2015 10:06am PDT · 2 comments

James Murdoch’s promotion to CEO of 21st Century Fox has been greeted as the answer to the years-long question of who would succeed his father, Rupert Murdoch, in control of the family empire. In reality, it may kick-off a decades-long sibling rivalry between James and his brother Lachlan. After all, while much of the media coverage focused on... James Murdoch’s promotion to CEO of 21st Century Fox has been greeted as the answer to the...

Art by Matt Vascellaro.

Q&A

Area Man Skeptical of All These Digital Roll-Ups

By Tom Dotan · Jun 17, 2015 7:02am PDT · 1 comment

For a site that’s designed to be a sendup of the news business, The Onion bears amazing resemblance to the very subject it mocks. Born 27 years ago as a print publication at the University of Wisconsin, The Onion has transitioned to a digital business (theonion.com), dropped the paper, expanded into online video (Onion Studios), dabbled in... For a site that’s designed to be a sendup of the news business, The Onion bears amazing...

Data via Calpers, Cambridge Associates

A Snapshot of Venture Capital Returns

By Steve Nellis and Peter Schulz · Jun 16, 2015 7:00am PDT

For all their braying about efficiency and the magic of open markets, venture capitalists are notoriously secretive about the only thing that actually matters in their own business: how much money they make for their investors. Returns are often a closely guarded secret. But data from Calpers, the $300 billion California public pension fund that... For all their braying about efficiency and the magic of open markets, venture capitalists are...

Evernote CEO Phil Libin. Photo by Evernote.

CEO Change Brewing at Evernote

By Amir Efrati · Jun 15, 2015 4:14pm PDT · 1 comment

Evernote CEO Phil Libin. Photo by Evernote.

CEO Change Brewing at Evernote

By Amir Efrati · Jun 15, 2015 4:14pm PDT · 1 comment

Evernote CEO Phil Libin has long said he wants to build a 100-year company. Now he’s actively looking for his own replacement to take the startup into its second decade. The eight-year-old, privately-held company, which makes productivity software in a crowded market, is talking to candidates for the position and “may be close to something,” Mr.... Evernote CEO Phil Libin has long said he wants to build a 100-year company. Now he’s actively...

Art by Sam Lessin.

Modest Proposals

‘It’s a Trap’: The Danger Zone for Series B and C Startups

By Sam Lessin · Jun 15, 2015 9:28am PDT · 2 comments

In “Return of the Jedi” the rebel fleet drops out of light speed to attack what they think is a not-yet-operational deathstar. In what has become one of the most meme-ized lines from the Star Wars saga, Admiral Ackbar, a minor character, exclaims “It’s a Trap!” This is how I feel about some of the sky-high valuations and huge amounts of capital... In “Return of the Jedi” the rebel fleet drops out of light speed to attack what they think is a...

Benchmark general partner Bill Gurley. Photo by Bloomberg.

Startups Focus on Cyber Security Earlier as Regulatory Risks Multiply

By Reed Albergotti · Jun 15, 2015 7:00am PDT

Young tech entrepreneurs may understand computers better than most, but by all accounts they’re among the worst among businesspeople at implementing cyber security measures. But there are signs attitudes are beginning to change. More corporate security breaches as well as regulatory blowback on both public and private companies found to have... Young tech entrepreneurs may understand computers better than most, but by all accounts they’re...

Why Didn’t the Twitter Board Have a Better Plan?

By Jessica E. Lessin · Jun 12, 2015 7:31am PDT

The piece of news that surprised me most yesterday wasn’t that embattled Twitter CEO Dick Costolo was stepping down. It was that Twitter’s first CEO and long-time groupie Jack Dorsey was stepping in. Costolo and Dorsey would have you think the transition to Dorsey as interim CEO is perfectly natural and part of the plan, a notion that ran... The piece of news that surprised me most yesterday wasn’t that embattled Twitter CEO Dick Costolo...

Netflix CEO Reed Hastings. Photo by Bloomberg.

Netflix’s Originals Push Faces Marketing Squeeze

By Martin Peers · Jun 11, 2015 10:01am PDT · 2 comments

Netflix CEO Reed Hastings. Photo by Bloomberg.

Netflix’s Originals Push Faces Marketing Squeeze

By Martin Peers · Jun 11, 2015 10:01am PDT · 2 comments

Netflix has mastered getting buzz for originals like “House of Cards” through public relations and word of mouth. But as its slate of Netflix-only shows grow, the company will likely have to boost marketing in the competitive U.S. market or risk wasting the estimated $450 million it is spending on originals this year. The streaming service is... Netflix has mastered getting buzz for originals like “House of Cards” through public relations...