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

The Mystery and Myths of Mutual Fund Markdowns

By Jessica E. Lessin · Nov 13, 2015 7:20am PST · 2 comments

“It’s like we went public without even knowing it.”I heard this sentiment from leaders of major private tech companies this week, as mutual funds grabbed headlines for marking down Snapchat, Blue Bottle and other massive private tech companies. All of a sudden these founders, who have been hell-bent on staying out of the public... “It’s like we went public without even knowing it.”I heard this sentiment from...

Microsoft cloud and enterprise group evp Scott Guthrie. Photo by Bloomberg.

Eyeing AWS, Microsoft Hunts for Data Center Space

By Steve Nellis · Nov 12, 2015 7:01am PST

Microsoft is looking to lease a big chunk of data center space to bolster its Azure cloud computing service in Silicon Valley, in an effort to catch up to its biggest rival, Amazon Web Services.Microsoft is in talks with data center companies Digital Realty and Vantage Data Centers to lease more than 10 megawatts of capacity in the San Francisco... Microsoft is looking to lease a big chunk of data center space to bolster its Azure cloud...

Photo by AP.

VCs’ Message: Winter is Coming

By Steve Nellis and Reed Albergotti · Nov 11, 2015 11:51am PST

At Andreessen Horowitz’s annual summit last week, the venture firm invited its portfolio companies to listen to a series of pep talks from the likes of Golden State Warriors player Andre Iguodala. The event also featured a fireside chat between Amazon.com CEO Jeff Bezos and Marc Andreessen.But on the sidelines, not all the chatter was... At Andreessen Horowitz’s annual summit last week, the venture firm invited its portfolio...

Google's director of Android engineering, David Burke. Photo by Bloomberg.

The Case Against a Google Phone

By Amir Efrati · Nov 11, 2015 7:01am PST · 5 comments

Google's director of Android engineering, David Burke. Photo by Bloomberg.

The Case Against a Google Phone

By Amir Efrati · Nov 11, 2015 7:01am PST · 5 comments

Whether to build a phone from scratch and sell it directly to consumers is a matter of debate inside of Google, as we reported on Tuesday. Given the risks of such a move and the low chance of success, it seems a bad idea for Google to pull the trigger.Among the issues: Google could alienate its handset maker partners, like Samsung or Huawei, by... Whether to build a phone from scratch and sell it directly to consumers is a matter of debate...

Google CEO Sundar Pichai at Mobile World Congress earlier this year. Photo by Bloomberg.

Google Discussing Building Phone

By Amir Efrati and Jessica E. Lessin · Nov 10, 2015 12:26pm PST · 1 comment

About one year after selling Motorola, executives inside Google are once again discussing whether to build an Android phone from scratch.People who work at Google say there is debate and discussion about the topic right now—as there is with myriad ideas at “Googphabet,” one of the many internal nicknames for the new... About one year after selling Motorola, executives inside Google are once again discussing whether...

Source: CrunchBase

When Startups Don’t Raise

By Steve Nellis and Peter Schulz · Nov 10, 2015 7:02am PST · 4 comments

A mark of a growing company is a need to raise fresh funds to help finance expansion. Even when they’re making money, companies that have raised in the past tend to do so again to take advantage of higher valuations. By the same token, companies that haven’t raised money in a couple of years could be in trouble.To get a sense of some... A mark of a growing company is a need to raise fresh funds to help finance expansion. Even when...

Art by Sam Lessin

Modest Proposals

The New Winners and Losers in the Boredom Market

By Sam Lessin · Nov 9, 2015 10:01am PST · 6 comments

Imagine trying to size the total number of hours people are mentally under-engaged each year. Let’s talk about it as the total boredom market—the fastest growing and most competitive part of the media world.It’s the market that apps like Facebook, Instagram, Snapchat and Twitter have seized control of. But that’s only... Imagine trying to size the total number of hours people are mentally under-engaged each year....

Chris Wanstrath, CEO of GitHub, which uses a bot to help run its business. Photo by Bloomberg.

State of the Business Bot Economy

By Steve Nellis · Nov 9, 2015 7:01am PST · 2 comments

Chris Wanstrath, CEO of GitHub, which uses a bot to help run its business. Photo by Bloomberg.

State of the Business Bot Economy

By Steve Nellis · Nov 9, 2015 7:01am PST · 2 comments

Ade Olonoh runs a startup called Formstack, which makes software for building web forms. But in recent months he’s launched another product that’s totally different—Flock, a so-called “bot” that hops around in his company’s chat program to gather information from team members about what they’re working... Ade Olonoh runs a startup called Formstack, which makes software for building web forms. But in...

Larry Page, CEO of Google's parent Alphabet. Photo by Bloomberg.

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Nov 7, 2015 8:02am PST

Good Morning! What with news on Square’s hoped-for IPO price range, Facebook’s stellar earnings and Activision’s purchase of King Digital Entertainment, November is already shaping up to be a big month. Good Morning! What with news on Square’s hoped-for IPO price range, Facebook’s...

The Information's 411

The Information’s 411 - Ad Stars

By Tom Dotan · Nov 6, 2015 1:29pm PST

Despite the greatest efforts of tech companies, ads don’t sell themselves. They need people to bridge the gap between digital technology, advertising and media. As Tom explains on this week’s podcast, these people are often behind-the-scenes types who typically don’t get much publicity. But they’re playing a crucial role,... Despite the greatest efforts of tech companies, ads don’t sell themselves. They need people...

Why Apps Are Getting Complicated Again

By Jessica E. Lessin · Nov 6, 2015 8:01am PST · 1 comment

The bloated app is back and, with it, new business realities.Over the past year or so, apps have gotten skinny. Facebook cleaved off Messenger and launched more standalones like Moments. Foursquare split into two, and others followed. As many have pointed out, the unbundling has been driven by the fact there’s just less real estate on... The bloated app is back and, with it, new business realities.Over the past year or so, apps have...

Google CEO Sundar Pichai. Photo by Bloomberg.

With Apple in Mind, Google Seeks Android Chip Partners

By Amir Efrati · Nov 5, 2015 1:43pm PST

Google CEO Sundar Pichai. Photo by Bloomberg.

With Apple in Mind, Google Seeks Android Chip Partners

By Amir Efrati · Nov 5, 2015 1:43pm PST

Google recently talked with some microchip makers about developing chips based on Google's own preferred designs, part of a push by the company to bring more uniformity to the fragmented universe of Android phones. That, Google hopes, would make its Android mobile operating system more competitive with Apple’s phones at the high end... Google recently talked with some microchip makers about developing chips based on Google's...

Google's new Nexus phones, unveiled in September. Photo by Bloomberg.

What Google Wants for Android

By Amir Efrati · Nov 5, 2015 1:40pm PST

In recent discussions with chipmakers, Google gave them a road map for how it is thinking about the future of Android and what will be required to get there. In recent discussions with chipmakers, Google gave them a road map for how it is thinking about...

Nest CEO Tony Fadell. Photo by Bloomberg.

Getting Smart Devices To Talk to Each Other

By Reed Albergotti · Nov 5, 2015 7:02am PST

The Internet of Things is a mess, but there’s light at the end of the tunnel. Bluetooth, once dismissed as a possible communications tool for smart devices, is re-emerging as a contender that could help standardize what is now a fragmented universe. For years, the problem with “smart devices” was that few could talk to... The Internet of Things is a mess, but there’s light at the end of the tunnel. Bluetooth,...

Stock screen showing Etsy's trading price on the day it went public. Photo by Bloomberg.

When VCs Sell Early

By Alfred Lee · Nov 4, 2015 7:01am PST · 1 comment

About three years before Box went public this past January, two of the company’s biggest shareholders, venture capital firms Draper Fisher Jurvetson and U.S. Venture Partners sold 6% of their stakes for a collective total $20 million, a big gain on the $1.6 million the shares cost.Box wanted early investors to sell some shares as part of a... About three years before Box went public this past January, two of the company’s biggest...

King Digital chief Riccardo Zacconi. Photo by Bloomberg.

Will Candy Crush Melt In Activision’s Mouth?

By Tom Dotan · Nov 3, 2015 11:38am PST · 1 comment

King Digital chief Riccardo Zacconi. Photo by Bloomberg.

Will Candy Crush Melt In Activision’s Mouth?

By Tom Dotan · Nov 3, 2015 11:38am PST · 1 comment

What is Activision really buying in its recent $5.9 billion acquisition of Candy Crush maker King Digital? Profit. Last year the company produced $575 million in net income.Assuming profits stayed that high, it would take Activision 12 years to recoup the purchase price. But King’s profits have been trending downward in recent quarters, as... What is Activision really buying in its recent $5.9 billion acquisition of Candy Crush maker King...

Discovery Borrowing More To Boost Buybacks

Discovery Borrowing More To Boost Buybacks

By Martin Peers · Nov 3, 2015 10:43am PST

Here’s a development of interest for anyone watching media companies’ slavish interest in stock buybacks. Standard & Poor’s cut Discovery Communications’ credit rating, and Moody’s indicated it was considering doing the same, after the company said it was willing to increase its debt-to-earnings ratios higher... Here’s a development of interest for anyone watching media companies’ slavish...

Source: comScore

Netflix Still Below AOL’s Peak Market Share

By Peter Schulz and Martin Peers · Nov 3, 2015 10:01am PST · 1 comment

In its heyday, AOL’s dial up service was more popular than Netflix is today. That’s one of the takeaways from our analysis of major tech companies and the percentage of U.S. Internet users that used each service at its peak. The stats in the accompanying charts illustrate how dominant each giant was back when. In the Netflix case, it... In its heyday, AOL’s dial up service was more popular than Netflix is today. That’s...

Cronologics CEO Leor Stern. Photo by Amir Efrati.

Startup to Watch

Why the Smartwatch is Behind the Times

By Amir Efrati · Nov 3, 2015 7:01am PST

In its zeal to create consistency in how people use Android smartwatches, Google has limited the selection of watches available, stifling growth in the category. A startup led by two former Googlers is trying to break open the market with its own version of Android software that will work with any watch and be compatible with any... In its zeal to create consistency in how people use Android smartwatches, Google has limited the...

By Matt Vascellaro · Nov 2, 2015 10:14am PST

By Matt Vascellaro · Nov 2, 2015 10:14am PST