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

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...

Richard Yu, who leads the devices group at Huawei Technologies. Photo by Bloomberg.

Under U.S. Scrutiny, Huawei Aims for Small Victories

By Amir Efrati · Jun 11, 2015 7:01am PDT

Last fall, the Washington Redskins football team announced a deal with world’s largest telecom-equipment provider, Huawei Technologies of China, to outfit its stadium with a Wi-Fi network. Several weeks later, the deal was quietly unwound. American firms Verizon and Cisco Systems got the assignment instead. Huawei and the Redskins won’t say why,... Last fall, the Washington Redskins football team announced a deal with world’s largest...

Spotify CEO Daniel Ek. Art by Matt Vascellaro.

Spotify, Apple and the Race to $100 Billion

By Jessica E. Lessin · Jun 10, 2015 3:25pm PDT

Whenever a big company enters a startup’s turf, the founder is quick to say the move “validates the category.” The phrase induces some eye-rolling. But if there was ever a time to hear it, it would be now with Spotify. The Stockholm-based streaming music company has been on a mission to get people to pay $10 a month to access a library of music... Whenever a big company enters a startup’s turf, the founder is quick to say the move “validates...

Tencent CEO Pony Ma Huateng. Photo by Bloomberg.

U.S. Studios Fuel Video Arms Race in China

By Tom Dotan · Jun 10, 2015 7:01am PDT

As Netflix executives publicly contemplate the company’s path into China, that country’s tech giants aren’t standing still. Firms like Xiaomi, Alibaba and especially Tencent are jockeying for position in the Chinese streaming market, striking licensing deals with U.S. studios for exclusive content. And it’s becoming increasingly likely that the... As Netflix executives publicly contemplate the company’s path into China, that country’s tech...

Data via Information Research

The Real Costs in TV Dealmaking

By Martin Peers and Peter Schulz · Jun 9, 2015 7:01am PDT

Data via Information Research

The Real Costs in TV Dealmaking

By Martin Peers and Peter Schulz · Jun 9, 2015 7:01am PDT

Pay television and broadband companies are increasingly consolidating to insulate themselves from slowing growth. But in doing so, they are inheriting a financial straitjacket while their potential competitors in Silicon Valley are cash-rich. AT&T is awaiting regulatory approval to buy DirecTV, while Charter Communications recently struck a... Pay television and broadband companies are increasingly consolidating to insulate themselves from...

Apple CEO Tim Cook. Photo by Bloomberg.

What Apple Could (But Won’t) Do To Save News

By Jessica E. Lessin · Jun 8, 2015 1:05pm PDT · 2 comments

I spend a lot of time thinking about the future of news and its business models. And lately my thinking has boiled down to this: Television has a killer business model, with networks like ESPN and Bravo getting fees from distributors and advertising revenues. How does traditional print and digital news replicate the approach? Well, the first... I spend a lot of time thinking about the future of news and its business models. And lately my...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

Facebook Dumps Secret Plan to Build Satellite

By Amir Efrati · Jun 8, 2015 7:00am PDT

Silicon Valley’s space race has ended before getting off the ground. Facebook has abandoned plans to spend as much as $1 billion to build and launch a satellite to provide Internet service on continents such as Africa, says a person with direct knowledge of the project and a person briefed about it. Facebook’s decision follows a pull-back by... Silicon Valley’s space race has ended before getting off the ground. Facebook has abandoned plans...

Nest CEO Tony Fadell. Photo by Bloomberg.

Exclusive (Brief)

More Details about Nest’s Plans in Home Security

By Jessica E. Lessin and Reed Albergotti · Jun 5, 2015 12:46pm PDT

Tony Fadell and Nest have long set their sights on reimagining home security. We wrote about it when we were the first to report that they were in talks to buy Dropcam, which they did. And the company has also pursued partnerships with companies like ADT. We’ve heard a few more details about a new standalone security product. In one design, the... Tony Fadell and Nest have long set their sights on reimagining home security. We wrote about it...

Ben Silbermann and the New Math on E-Commerce

By Jessica E. Lessin · Jun 5, 2015 7:01am PDT · 1 comment

Ben Silbermann and the New Math on E-Commerce

By Jessica E. Lessin · Jun 5, 2015 7:01am PDT · 1 comment

Sometimes the best way to determine how a CEO will act is to consider his or her background. A CEO plucked from the media business is likely to talk a lot about content. One raised outside the U.S. is more likely to focus on international users. It’s a maxim I often turn to when thinking about Pinterest and its noticeably... Sometimes the best way to determine how a CEO will act is to consider his or her background. A...