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

Box CEO Aaron Levie. Photo by Bloomberg.

Discounts in Focus as Markets Turn on Cloud Companies

By Katie Benner · May 12, 2014 7:30am PDT

As the shares of publicly traded SaaS and cloud computing companies plummet, one of the questions that’s emerging about the category is the extent to which companies are using discounting to boost short-term revenues and gain prestige clients. It’s a strategy that can have bigger consequences down the line than many investors... As the shares of publicly traded SaaS and cloud computing companies plummet, one of the questions...

Jonah Peretti and Jessica Lessin. Photo by Jason Andrews/ DLD Conference.

Is Native Advertising a Savior or a Niche?

By Jessica E. Lessin · May 9, 2014 11:05am PDT

There has been a mini-maelstrom of debate about whether sponsored stories, aka a type of “native advertising,” are good for the news industry or a devious way to dupe readers. I have a different question: Are they good for business? Publishers from BuzzFeed to the New York Times are selling articles that are advertisements in droves,... There has been a mini-maelstrom of debate about whether sponsored stories, aka a type of...

By Matt Vascellaro · May 9, 2014 9:11am PDT

David Bonderman, founding partner of TPG. Photo by Bloomberg.

Private Equity Investors Press for Control

By Katie Benner · May 8, 2014 11:41am PDT

David Bonderman, founding partner of TPG. Photo by Bloomberg.

Private Equity Investors Press for Control

By Katie Benner · May 8, 2014 11:41am PDT

As the public markets become less friendly to high-growth tech companies, private equity firms will loom large in more ways than one. These investors tend to do large, late-stage investments that help companies avoid having to go public, which could be a great alternative if the IPO window closes. But the terms on private equity-led deals... As the public markets become less friendly to high-growth tech companies, private equity firms...

Comcast CEO Brian Roberts. Photo by Bloomberg.

Comcast Plots Big Push in Web Video Ads

By Amir Efrati · May 8, 2014 7:49am PDT

As debate over Comcast’s control of Internet and TV in American households plays out in front of regulators reviewing its bid for Time Warner Cable, the cable industry leader is quietly planning a major foray into the Web advertising business. Comcast will aim to help “premium” video producers such as Disney, FOX, Viacom and... As debate over Comcast’s control of Internet and TV in American households plays out in...

Josh Mendelsohn. Illustration by Matthew Vascellaro.

Q&A

A Political Agenda for the Startup World

By Jonathan Weber · May 7, 2014 11:19am PDT

A veritable alphabet soup of tech industry lobbying groups plies the halls of Congress these days, advocating on issues including patent reform, immigration and Internet access. But most of them do the bidding of a handful of big companies like Google and Microsoft. Engine, a San Francisco-based advocacy group, aims to be a voice for a very... A veritable alphabet soup of tech industry lobbying groups plies the halls of Congress these...

Jack Ma, founder of Alibaba. Photo by Bloomberg.

Alibaba Faces Mobile Threat as IPO Approaches

By Eric Newcomer · May 7, 2014 7:38am PDT

Alibaba Group, which filed to go public Tuesday, has its fingers in everything from the private car service Lyft to China’s largest payment processor. But its long-term prospects largely depend on one thing: maintaining its dominant market share in mobile e-commerce. Alibaba currently has about about 75% of the Chinese mobile commerce... Alibaba Group, which filed to go public Tuesday, has its fingers in everything from the private...

Mark McLaughlin, CEO of Palo Alto Networks. Photo by Bloomberg.

Security Industry Awaits Fall of the ‘Wedding Cake’

By Katie Benner · May 6, 2014 7:57am PDT

Mark McLaughlin, CEO of Palo Alto Networks. Photo by Bloomberg.

Security Industry Awaits Fall of the ‘Wedding Cake’

By Katie Benner · May 6, 2014 7:57am PDT

For every cybersecurity problem there are lots of solutions; CB Insights tracks nearly 500 private companies in the space, which sucked in $1.74 billion in venture and private equity investments in 2013 alone. But taken altogether they create an ecosystem that’s just too darn complicated—and thus especially ripe for consolidation. ... For every cybersecurity problem there are lots of solutions; CB Insights tracks nearly 500...

Matthew Vascellaro

‘Subprime’ Advertising Threatens Online Ad Ecosystem

By Tom Dotan · May 5, 2014 7:39am PDT

The online ad industry is making little progress in addressing the problem of non-viewable ads, raising new questions about the value of programmatic advertising that relies on trading and re-packaging of low-quality online ad inventory. A study released late last month by the video advertising firm BrightRoll shows that an average of 65... The online ad industry is making little progress in addressing the problem of non-viewable ads,...

Redefining the Local “Tech Scene”

By Jessica E. Lessin · May 2, 2014 12:02pm PDT

I spent this week in New York for interviews, meetings and the DLD conference, where I interviewed two veteran journalists (Wired’s Steven Levy and New York Times’s John Markoff) and one disruptor disrupting them (Buzzfeed’s Jonah Peretti). And seemingly everywhere I went, people wanted to talk about the same thing: the... I spent this week in New York for interviews, meetings and the DLD conference, where I...

Renaud Laplanche, CEO of Lending Club. Photo by Bloomberg.

Banks, Hedge Funds Remake Peer-to-Peer Lending

By Tom Dotan · May 2, 2014 7:25am PDT

Peer-to-peer lending was nearly left for dead in 2008 when federal regulators came down hard on the two biggest players, Prosper and Lending Club. But a major shift in strategy has revived the fortunes of the two companies: all they had to do was abandon the peer-to-peer model of individuals lending to other individuals and instead become places... Peer-to-peer lending was nearly left for dead in 2008 when federal regulators came down hard on...

Facebook CEO Mark Zuckerberg addresses the F8 conference. Photo by Bloomberg.

Social Media Split: Facebook, Twitter Take Different Paths

By Eric Newcomer · May 1, 2014 12:54pm PDT

Facebook CEO Mark Zuckerberg addresses the F8 conference. Photo by Bloomberg.

Social Media Split: Facebook, Twitter Take Different Paths

By Eric Newcomer · May 1, 2014 12:54pm PDT

Social media powerhouses Facebook and Twitter, long considered to be on a possible collision course, showed in quick succession this week how their strategies are diverging. Twitter, which reported better-than-expected financial results but modest user growth this week, is increasingly focused on major news events and media exposure to... Social media powerhouses Facebook and Twitter, long considered to be on a possible collision...

Y Combinator President Sam Altman. Photo by Bloomberg.

Startup Employees in the Dark on Equity

By Katie Benner · May 1, 2014 4:51am PDT

A few years ago, a venture-backed ad tech company was sold for about three times the amount that investors had put into the company—but employees got a rude surprise. The VCs who held preferred stock got $6.80 per share, while employees who held common stock got about $1.40, according to documents related to the sale. One employee... A few years ago, a venture-backed ad tech company was sold for about three times the amount that...

Q&A

Carlota Perez: Self-Centered Tech Industry Needs to Wake Up

By Amir Efrati · Apr 30, 2014 11:14am PDT

Carlota Perez, a London School of Economics professor who focuses on technology and economic development, has many admirers in the tech industry. But she disagrees with the popular Silicon Valley belief that we’re at the beginning of a new golden age of prosperity driven by technological innovation, though she understands why that belief... Carlota Perez, a London School of Economics professor who focuses on technology and economic...

Airbnb CEO Brian Chesky. Photo by Bloomberg.

Political Heat May Bring a Reckoning for Airbnb

By Eric Newcomer · Apr 30, 2014 7:57am PDT

Airbnb, the home sharing juggernaut, is running into regulatory trouble in some key markets and may soon face a day of reckoning on a crucial issue: whether to go along with efforts to make information about its customers public in order to help local authorities enforce rental laws. The company, which recently raised a reported $450 million in... Airbnb, the home sharing juggernaut, is running into regulatory trouble in some key markets and...

Sundar Pichai, head of Android. Photo by Bloomberg.

Google Takes Aim at the iPhone with Android “Silver” Program

By Amir Efrati · Apr 29, 2014 7:47am PDT

Sundar Pichai, head of Android. Photo by Bloomberg.

Google Takes Aim at the iPhone with Android “Silver” Program

By Amir Efrati · Apr 29, 2014 7:47am PDT

Google is gearing up for a major effort to spur development of premium Android smartphones and re-assert control over the Android ecosystem as it seeks to better compete with the Apple iPhone and blunt the growing power of Samsung, the leading maker of Android phones. The expensive effort involves dumping the four-year-old Google Nexus phone... Google is gearing up for a major effort to spur development of premium Android smartphones and...

Elon Musk, founder of SpaceX. Photo by Bloomberg.

Crowded Skies Challenge Earth Imaging Upstarts

By Eric Newcomer · Apr 28, 2014 7:54am PDT

Booming demand for up-to-date, high-definition pictures of the earth’s surface has set off an unusual competitive battle among upstarts racing to deploy traditional satellites, constellations of small satellites, drones and manned aircraft to produce the best aerial images at the lowest cost. Tech giants including Google... Booming demand for up-to-date, high-definition pictures of the earth’s surface has set off...

Misleading Pushback on Media Reports Does Nobody Good

By Jessica E. Lessin · Apr 25, 2014 12:56pm PDT

I try not to dwell too much on the inner workings of journalism in these columns. But there’s a big shift happening in the media business that no one is talking about, and I believe it has big implications for journalists and companies alike. Companies are going on the PR offensive, disputing stories and firing off feisty comments in... I try not to dwell too much on the inner workings of journalism in these columns. But...

Brian Rogers, chairman of T. Rowe Price, with Dick Costolo, CEO of Twitter. Photo by Bloomberg.

Surge in Late-Stage Investing Crimps Post-IPO Gains

By Katie Benner · Apr 24, 2014 12:45pm PDT

It’s almost every week now that another private company takes late-stage funding from hedge funds, mutual funds, private equity firms and lenders, even amidst a jittery stock market. On Wednesday Pure Storage announced a $225 million investment led by asset managers T. Rowe Price, Tiger Global and Wellington Management. Tiger recently... It’s almost every week now that another private company takes late-stage funding from hedge...

Reed Hastings. Photo by Bloomberg.

HBO Deal Shows Divergent Paths of Netflix, Amazon

By Tom Dotan · Apr 24, 2014 7:58am PDT

Reed Hastings. Photo by Bloomberg.

HBO Deal Shows Divergent Paths of Netflix, Amazon

By Tom Dotan · Apr 24, 2014 7:58am PDT

HBO’s deal to license some of its prestigious back catalog to Amazon, announced Wednesday, was widely seen as a blow to Netflix. Netflix CEO Reed Hastings has coveted HBO’s content for as long as his company has been in business of streaming TV shows on-demand. And it was never in the running for this particular deal. Calling... HBO’s deal to license some of its prestigious back catalog to Amazon, announced...