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

Amazon's Dash button. Photo courtesy Amazon.

Amazon’s Counter to Apple Watch: a Button for Soap

By Steve Nellis · Apr 14, 2015 11:15am PDT · 2 comments

It may not look like it, but the most formidable competitor to the Apple Watch may not be any other piece of wearable technology. It may be the device Amazon unveiled on March 31: The Dash button. In case you’re not familiar, the Dash is a small wireless device that has one button and an adhesive underside. You press the button and it orders a... It may not look like it, but the most formidable competitor to the Apple Watch may not be any...

Data via Prof. Jay Ritter, University of Florida

A New Low in Profitable Tech IPOs

By Tom Dotan and Peter Schulz · Apr 14, 2015 7:01am PDT · 4 comments

Here’s a sobering statistic for anyone worried about where we are in the tech cycle: Last year, a higher proportion of money-losing tech companies went public than at any time since 2000. The proportion of tech IPOs turning a profit has declined in the past four years, according to data collected by University of Florida Professor Jay Ritter, a... Here’s a sobering statistic for anyone worried about where we are in the tech cycle: Last year, a...

Art by Sam Lessin.

Modest Proposals

A Call for New Type of Mapping Platform

By Sam Lessin · Apr 13, 2015 10:00am PDT · 3 comments

Here’s a Pop Quiz. Maui is 2,336 miles away from San Francisco and Montgomery, Vermont is 2,067 miles away. Which is closer? A map might suggest that they are both about the same distance away. But if you want to go to either, it turns out that Montgomery is almost twice as far away—ten to twelve hours of total travel time versus 6 to 7,... Here’s a Pop Quiz. Maui is 2,336 miles away from San Francisco and Montgomery, Vermont is 2,067...

Art by Matt Vascellaro.

The Information’s Free Agents, From Coast to Coast

By The Information Staff · Apr 13, 2015 7:00am PDT

Art by Matt Vascellaro.

The Information’s Free Agents, From Coast to Coast

By The Information Staff · Apr 13, 2015 7:00am PDT

With the tech sector hot as ever, the talent market is tightening up, and few people are staying on the sidelines for long. The Information’s Free Agents highlights executives between full-time roles, though the sixth installment includes one major exception: a top executive at an older firm who is currently interviewing for jobs elsewhere,... With the tech sector hot as ever, the talent market is tightening up, and few people are staying...

Data via Datafox. Chart by Peter Schulz.

IPO Mythbusting

By Jessica E. Lessin · Apr 10, 2015 11:58am PDT · 2 comments

Lately, I’ve had the sense that as we all sit back and assume that companies like Uber, Airbnb and Dropbox are going to wait forever to go public, we’re going to be surprised. I think we are going to see some big names go out this year—Square?—and more go out next year—Uber? Dropbox? I don’t have new facts to report about what the companies are... Lately, I’ve had the sense that as we all sit back and assume that companies like Uber, Airbnb...

Andy Jassy, chief of Amazon Web Services. Photo by Steve Nellis.

Meet the Amazon Web Services Mafia

By Steve Nellis · Apr 10, 2015 7:01am PDT

It could be called the great AWS diaspora. Later this month Amazon.com is expected to confirm that AWS is the world’s leader in public cloud services when it breaks out the unit’s financials for the first time. Yet many of the people who conceived, built and sold the service won’t be around to enjoy the moment, having long ago left the firm. AWS... It could be called the great AWS diaspora. Later this month Amazon.com is expected to confirm...

Photo by Bloomberg.

The Race To Create Video for Virtual Reality

By Tom Dotan · Apr 9, 2015 10:00am PDT · 2 comments

The ever-approaching day when virtual reality is no longer vaporware has kicked off a race among media and tech firms to start churning out content for the world’s newest consumer devices. Yes, we’re still years away from any sort of wide-scale VR adoption. (Of the major tech firms, only Samsung’s Gear VR headset has been released to the public,... The ever-approaching day when virtual reality is no longer vaporware has kicked off a race among...

GoPro CEO Nick Woodman. Photo by Bloomberg.

Don’t Count GoPro Out

By Martin Peers · Apr 9, 2015 7:00am PDT · 5 comments

GoPro CEO Nick Woodman. Photo by Bloomberg.

Don’t Count GoPro Out

By Martin Peers · Apr 9, 2015 7:00am PDT · 5 comments

Consumer electronics is, by and large, a very tough business. Whether it’s TV sets or smartphones, margins tend to be low and there’s always the danger of a cheap knockoff hitting the market. Indeed, that seems to be the fear investors have about GoPro, the once-hyped action camera maker. After going public last June at $24 per share, the stock... Consumer electronics is, by and large, a very tough business. Whether it’s TV sets or...

Mural from Stance-sponsored concert in Austin. Photo by Bloomberg.

Taking a Stance Against Online Advertising

By Reed Albergotti · Apr 8, 2015 10:01am PDT

At a time when most marketers are debating how much money to spend on Google search, Facebook or YouTube, sock company Stance is betting its future elsewhere. The San Clemente, Calif. company has spent only $250,000 on advertising since its 2009 launch. Yet it has sold a total of 15 million pair of socks in that period, relying on free social... At a time when most marketers are debating how much money to spend on Google search, Facebook or...

Art by Matt Vascellaro.

Q&A

Is This the Fate of Native Ads?

By Tom Dotan · Apr 8, 2015 7:01am PDT

Native advertising, savior of the online publishing industry, could already be doomed. And if that’s the case, the disease that kills it may have been accidentally hatched in the very labs that were trying to fix its biggest weakness. Let’s back up a bit. Native ads, traditionally described as advertising that matches the form and function of a... Native advertising, savior of the online publishing industry, could already be doomed. And if...

Yahoo CEO Marissa Mayer with Adam Cahan, mobile and emerging products group senior VP.

At Yahoo and Tumblr, Organizational Changes Afoot

By Amir Efrati · Apr 7, 2015 4:40pm PDT

A major shake-up is brewing at Yahoo that could end Tumblr’s run as a standalone unit and rearrange the upper ranks of the Web firm’s product organization, which has struggled under CEO Marissa Mayer. She discussed some of the coming changes last week during an executive off-site meeting. A major shake-up is brewing at Yahoo that could end Tumblr’s run as a standalone unit and...

Dropbox CEO Drew Houston. Photo by Bloomberg.

Dropbox’s Softbank Deal Highlights Enterprise Push

By Steve Nellis · Apr 7, 2015 11:59am PDT · 1 comment

Dropbox CEO Drew Houston. Photo by Bloomberg.

Dropbox’s Softbank Deal Highlights Enterprise Push

By Steve Nellis · Apr 7, 2015 11:59am PDT · 1 comment

Dropbox’s announcement late Monday that it will use SoftBank to sell Dropbox to businesses in Japan highlights a new reality for the company: uncertainty about growth in the consumer market means enterprise customers are likely to be of increasing importance. But the company is playing from behind in terms of features prized by corporate... Dropbox’s announcement late Monday that it will use SoftBank to sell Dropbox to businesses in...

Data via Quettra

Which Apps Retain Their Users—And Which Ones Don’t

By Amir Efrati and Peter Schulz · Apr 7, 2015 7:00am PDT · 7 comments

The hardest thing about building a mobile company isn’t gaining users; it’s retaining them. And by this measure most social apps, including Snapchat, Vine and Twitter, are doing badly compared to Facebook and, surprisingly, Blackberry Messenger, particularly in Asia’s emerging markets. The Information asked a startup called Quettra for... The hardest thing about building a mobile company isn’t gaining users; it’s retaining them. And...

Illustration by Matt Vascellaro

The Ascension of Google’s Sridhar Ramaswamy

By Amir Efrati · Apr 6, 2015 7:00am PDT · 2 comments

In late 2013, Google’s top two ad executives, Sridhar Ramaswamy and Susan Wojcicki, were at war. They complained about each other to colleagues and tussled over an important new ad technology initiative. Tensions culminated in a meeting when Mr. Ramaswamy suggested Ms. Wojcicki and her team were “hiding the truth,” according to... In late 2013, Google’s top two ad executives, Sridhar Ramaswamy and Susan Wojcicki, were at...

IBM CEO Ginni Rometty. Photo by Bloomberg.

Cloud Proves Big for Everyone But Cloud Providers

By Steve Nellis · Apr 3, 2015 7:01am PDT · 1 comment

Cloud computing has long been seen as the next big thing in tech. But while the cloud has proved valuable for businesses needing access to cheap computing power, selling public cloud services hasn’t become a big money-making business for anyone yet. Nine years after Amazon launched the first major cloud service, total revenue for cloud hardware... Cloud computing has long been seen as the next big thing in tech. But while the cloud has proved...

Graphic by Jeff Greco. Images by NewhouseSU/Flickr and CBS.

John Malone’s CBS Play and Other Deals to Watch

By Martin Peers · Apr 2, 2015 10:01am PDT · 1 comment

Graphic by Jeff Greco. Images by NewhouseSU/Flickr and CBS.

John Malone’s CBS Play and Other Deals to Watch

By Martin Peers · Apr 2, 2015 10:01am PDT · 1 comment

TV deal-making rumors have run high in the past month, as big media companies continue to brace for more change and bankers get antsy. One unreported idea that media investors have been buzzing about: Liberty Media chairman John Malone could buy control of CBS and build a diversified entertainment conglomerate on a par with Walt Disney or 21st... TV deal-making rumors have run high in the past month, as big media companies continue to brace...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

How LiveRail Became Central to Facebook’s Ad Push

By Reed Albergotti · Apr 2, 2015 7:01am PDT

If U.S. immigration officials had been a little tougher back in 2008, Facebook’s new mobile advertising unit LiveRail might never have seen the light of day. The firm, acquired last July for around $500 million, is intended to be a pillar of the social network’s new Advertising Technology unit, with a focus on mobile. It’s a key part of... If U.S. immigration officials had been a little tougher back in 2008, Facebook’s new mobile...

Apple CEO Tim Cook. Photo by Bloomberg.

Why Analysts are Flying Blind on Forecasting New Markets

By Martin Peers · Apr 1, 2015 10:00am PDT

News reports last month of Apple’s latest attempt to launch an online video service prompted Wall Street firm Nomura Research to publish two research reports. One said any new Apple service wouldn’t be attractive to current “core pay TV customers.” The other implied that Apple’s new service could sign up at least 18.5 million consumers by 2017,... News reports last month of Apple’s latest attempt to launch an online video service prompted Wall...

Art by Matt Vascellaro.

Q&A

Meet the Woman Who Runs Founders Fund

By Jessica E. Lessin · Apr 1, 2015 8:11am PDT · 1 comment

Venture capital is a clubby industry and, as we know, full of men. So it’s all the more interesting when women do rise through the ranks, women like Lauren Gross, the energetic and very under-the-radar chief operating officer of Founders Fund. Since late 2013, the 32-year-old Ms. Gross has been keeping Founders Fund—the high-profile firm founded... Venture capital is a clubby industry and, as we know, full of men. So it’s all the more...

Data via SEC filings, DataFox

Bending the Subscription Software Sales Cost Curve

By Steve Nellis and Peter Schulz · Mar 31, 2015 10:01am PDT · 3 comments

Data via SEC filings, DataFox

Bending the Subscription Software Sales Cost Curve

By Steve Nellis and Peter Schulz · Mar 31, 2015 10:01am PDT · 3 comments

In most subscription software companies, there’s a direct correlation between revenue growth and sales and marketing spending. Any company that gets more growth off the same amount of sales spending has a shot at eventually generating profits—in an industry where that feat is rare. Workday appears to be on track to do so. As the accompanying... In most subscription software companies, there’s a direct correlation between revenue growth and...