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

Understanding the Hidden ‘Costs’ of Products

By Sam Lessin · Aug 24, 2015 11:13am PDT · 4 comments

If you ask someone about the cost of a product, either hardware or software, you typically get an answer in dollars. HBO, for example, is $15 a month, and Facebook is free. The reality, however, is a bit more complicated.All products—virtual or physical—have financial costs and cognitive costs, both upfront and on an ongoing basis.... If you ask someone about the cost of a product, either hardware or software, you typically get an...

Art by Matt Vascellaro.

The Big Interview

Slack’s Enterprise Playbook

By Steve Nellis · Aug 24, 2015 7:06am PDT

Slack’s strategy for expanding in the business market is simple: focus on tiny firms.“My favorite customer is the five person graphic design team in Omaha that pulls out the credit card and then never contacts us,” said Slack CEO Stewart Butterfield in an interview with The Information. “There are hundreds of thousands of... Slack’s strategy for expanding in the business market is simple: focus on tiny firms....

The Information You Missed

By The Information Staff · Aug 22, 2015 8:06am PDT

Good Morning!Friday was a bleak day for the public markets—especially tech—and Monday is going to be important for seeing whether the fear spreads. For now, we’re looking back over the week when we examined areas where private tech investors are getting a little anxious. Good Morning!Friday was a bleak day for the public markets—especially tech—and Monday...

What I Learned From NYT’s Amazon Story

By Jessica E. Lessin · Aug 21, 2015 7:06am PDT · 4 comments

What I Learned From NYT’s Amazon Story

By Jessica E. Lessin · Aug 21, 2015 7:06am PDT · 4 comments

Almost a week since the New York Times’s Amazon.com exposé, the piece is still riling people. Was it fair? (me: undoubtedly). Is Amazon.com unique? (me: yes and no).Many technologists and tech reporters were dismissive, calling allegations of a “bruising workplace” of cut-throat competition and long working hours in... Almost a week since the New York Times’s Amazon.com exposé, the piece is still...

Gilt Groupe Chairman Kevin Ryan. Photo by Bloomberg.

Mutual Funds Show Markdowns On Private Stocks

By Alfred Lee · Aug 20, 2015 7:16am PDT · 2 comments

In the public market, bad news for a company typically sends its stock plunging. In the private market, of course, there’s no opportunity for such an immediate reaction. But the growing number of institutional investors in private companies can still take their own writedowns, providing a window into how valuations in the private tech... In the public market, bad news for a company typically sends its stock plunging. In the private...

Palantir CEO Alexandar Karp. Photo by Bloomberg.

Mutual Funds Showing up Across Private Tech

By Alfred Lee · Aug 20, 2015 7:06am PDT · 2 comments

The private tech explosion has become less private, as rising valuations attract mutual funds often held by retirement accounts and retail investors. Mutual funds hold shares in at least 48 U.S. and overseas-based private startups valued at more than $1 billion, according to a search of regulatory filings, including more than half of American... The private tech explosion has become less private, as rising valuations attract mutual funds...

Google CEO Sundar Pichai. Photo by Bloomberg.

What Sundar Pichai’s Team is Up Against

By Amir Efrati · Aug 19, 2015 1:29pm PDT · 10 comments

At Google, the political game among executives has always been to get as close as possible to co-founder Larry Page. Last week, that game changed for good.As new CEO Sundar Pichai makes Google his own, he's going to draw on a small group of senior leaders to help execute his plans and hope that they stick around for the next chapter of a... At Google, the political game among executives has always been to get as close as possible to...

Postmates CEO Bastian Lehmann. Photo by Bloomberg.

Investors Asking Tough Questions of On-Demand Apps

By Tom Dotan and Steve Nellis · Aug 19, 2015 12:39pm PDT · 1 comment

Postmates CEO Bastian Lehmann. Photo by Bloomberg.

Investors Asking Tough Questions of On-Demand Apps

By Tom Dotan and Steve Nellis · Aug 19, 2015 12:39pm PDT · 1 comment

For the past few years, investors have showered money on on-demand apps to deliver everything from food to massages. That may be starting to change.As some food-delivery firms, such as SpoonRocket, struggle under the weight of high food and operating costs, investors are asking tough questions about whether those expenses eat away at potential... For the past few years, investors have showered money on on-demand apps to deliver everything...

SoFi's new chief operating officer Joanne Bradford. Photo by Flickr/TechCrunch

Online Lenders Facing Marketing War

By Tom Dotan · Aug 18, 2015 7:06am PDT

Enthusiasm around online lending has created a handful of companies with multi-billion dollar valuations and an even bigger group of up-and-comers such as Upstart and SoFi. But competition among more well-funded players is driving up the costs of luring new customers, clouding the long-term prospects for some in the industry.Rising customer... Enthusiasm around online lending has created a handful of companies with multi-billion dollar...

Microsoft CEO Satya Nadella. Photo by Bloomberg.

Microsoft Has Been in Buyout Talks with Mesosphere

By Amir Efrati · Aug 17, 2015 6:08pm PDT

Microsoft has expressed interest in acquiring a cloud-computing software startup called Mesosphere, according to two people who were briefed about the recent talks, raising the possibility of a deal that could reshape the cloud infrastructure landscape. The approach was made about a month ago and it’s unclear whether the talks are still... Microsoft has expressed interest in acquiring a cloud-computing software startup called...

Art by Matt Vascellaro.

Meet Google’s New Money Man, Philipp Schindler

By Amir Efrati · Aug 17, 2015 1:45pm PDT

Amid the Alphabet-Google news last week, one major change went unnoticed: Google has a new sales chief, Philipp Schindler.Mr. Schindler succeeds Omid Kordestani, Google’s chief business officer and a close confidant of Google co-founder Larry Page. Mr. Kordestani is departing as Mr. Page vacates his Google CEO post to run Google’s... Amid the Alphabet-Google news last week, one major change went unnoticed: Google has a new sales...

Nasdaq Private Market executive Jeff Thomas, right. Photo by Flickr/Dow Jones Events

Brokering Private Stocks Yet to Yield Big Profits

By Alfred Lee · Aug 17, 2015 7:06am PDT

Nasdaq Private Market executive Jeff Thomas, right. Photo by Flickr/Dow Jones Events

Brokering Private Stocks Yet to Yield Big Profits

By Alfred Lee · Aug 17, 2015 7:06am PDT

The secondary market for private tech shares is booming again, after a slowdown following the Facebook IPO. With valuations rising and startups staying private longer, investors in search of growth have been striking more deals with private company employees seeking to sell their shares.But that boom doesn’t appear to be yet translating... The secondary market for private tech shares is booming again, after a slowdown following the...

Larry Page and ‘Retirement’ 2.0

By Jessica E. Lessin · Aug 14, 2015 8:24am PDT · 3 comments

Hardly a year has gone by in Silicon Valley without a big CEO transition—some rockier than others. Gates, Yang, Jobs, Ellison, Ballmer, Donahoe, Costolo. So why does Larry Page’s decision to hand over the reins of Google as we know it feel so different, so significant?It’s not just the fact he birthed Google’s algorithm... Hardly a year has gone by in Silicon Valley without a big CEO transition—some rockier than...

Elon Musk. Photo by Bloomberg.

The Information Series

Four Questions for SpaceX

By Amir Efrati · Aug 13, 2015 10:26am PDT

Space Exploration Technologies, Elon Musk’s rocket company, has accomplished a lot since it was one failed launch away from going out of business, in 2008.The company, which Mr. Musk hopes will be his vehicle for starting a human colony on Mars, charges far less than any other competitor to send satellite and other equipment to space. Its... Space Exploration Technologies, Elon Musk’s rocket company, has accomplished a lot since it...

Discovery CEO David Zaslav. Photo by Bloomberg.

The Next Issue for Media Firms: Rising Debt

By Martin Peers · Aug 13, 2015 7:01am PDT · 2 comments

Last week’s media stock implosion reflected an overdue recognition that cord-cutting is hurting media companies’ core television businesses. But there’s another risk that deserves more attention: Debt levels among major media companies have crept up to levels that could become worrisome if their business continues to deteriorate. What makes this... Last week’s media stock implosion reflected an overdue recognition that cord-cutting is hurting...

Photo by Bloomberg.

Alphabet’s Next Startup: M is for Mosquito?

By Amir Efrati · Aug 12, 2015 7:01am PDT

Photo by Bloomberg.

Alphabet’s Next Startup: M is for Mosquito?

By Amir Efrati · Aug 12, 2015 7:01am PDT

A senior executive within Google, soon to be Alphabet, told colleagues he wanted to develop genetically engineered mosquitoes to help fight disease, according to people who know him. Linus Upson, the man who helped build Google’s Chrome browser alongside new CEO Sundar Pichai, recently said he intended to start a biology project involving... A senior executive within Google, soon to be Alphabet, told colleagues he wanted to develop...

Dan Loeb, center, of Third Point. Photo by Bloomberg.

Third Point Says KidoZen Numbers Were Too Good To Be True

By Reed Albergotti · Aug 11, 2015 4:15pm PDT

Last summer, Jesus Rodriguez, founder of a South Florida startup called KidoZen that helped businesses create mobile apps, hosted several dinners for venture capitalists, financial analysts and other technology luminaries at upscale restaurants like Fleur de Lys in San Francisco. While expensive bottles of wine were served to guests, Mr.... Last summer, Jesus Rodriguez, founder of a South Florida startup called KidoZen that helped...

From left, Dennis Woodside and CEO Drew Houston of Dropbox. Photo by Bloomberg.

Inside Dropbox’s Sales Culture

By Steve Nellis · Aug 11, 2015 7:00am PDT · 1 comment

For the past couple of years, two competing business-to-business sales cultures have existed within Dropbox. One is the traditional wine-and-dine approach that can land big customers but brings big costs. The other is a more predictable, automated approach that focuses on finding and converting the most reliable customers, even if the individual... For the past couple of years, two competing business-to-business sales cultures have existed...

Google CEO Larry Page. Photo by Bloomberg.

What Alphabet Means

By Jessica E. Lessin and Amir Efrati · Aug 10, 2015 3:05pm PDT · 3 comments

Google’s morphing into Alphabet was many years coming. It’s no secret that Google’s founders haven’t considered themselves a search company for a while—Larry Page said so in so many words two years ago at TED. But why now? The answer, according to people involved, is simple: Google’s growing ambitions were complicating an already complicated... Google’s morphing into Alphabet was many years coming. It’s no secret that Google’s founders...

Clips of A+E's Duck Dynasty are on Vessel. Photo by Bloomberg.

Will Vessel’s Network Gamble Pay Off?

By Tom Dotan · Aug 10, 2015 10:01am PDT · 1 comment

Clips of A+E's Duck Dynasty are on Vessel. Photo by Bloomberg.

Will Vessel’s Network Gamble Pay Off?

By Tom Dotan · Aug 10, 2015 10:01am PDT · 1 comment

For a site launched as a place for paid early access to YouTube videos, Vessel has shown a surprising interest in going after exclusive TV clips. But even as more cable network content is set to join the site in the coming weeks, media executives remain uncertain about the site’s business model. Vessel is currently in talks with at least two... For a site launched as a place for paid early access to YouTube videos, Vessel has shown a...