The Briefing by Martin Peers, Jessica Lessin and the team at The Information

Five times/week

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.

By providing your email, you agree to The Information’s Privacy Policy

Recent Editions

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

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...

Art by Sam Lessin.

Oculus Is for the Elderly

By Sam Lessin · Aug 10, 2015 7:01am PDT · 3 comments

Art by Sam Lessin.

Modest Proposals

Oculus Is for the Elderly

By Sam Lessin · Aug 10, 2015 7:01am PDT · 3 comments

When I am at home, for better and worse, I mostly only spend time with people who are very sophisticated in their technology consumption and tend to be about my age (give or take a few decades). In traveling for vacation to the East Coast this past week I have spent more time than usual watching people outside of my age range and outside of the... When I am at home, for better and worse, I mostly only spend time with people who are very...

Announcing Our First Subscriber Summit (And a Request)

By Jessica E. Lessin · Aug 7, 2015 9:24am PDT

I’m going to keep this short because I’m technically on vacation on the East Coast, where the heat is reminding me why I moved to San Francisco :) But I wanted to share some exciting news. We’re holding our first The Information Subscriber Summit in San Francisco this fall (probably early October)—and we want YOU to be a part of it. I’m going to keep this short because I’m technically on vacation on the East Coast, where the...

SolarCity co-founders Pete and Lyndon Rive. Photo by Bloomberg.

A Rare Look Inside a Private Tech Stock Loan

By Alfred Lee · Aug 7, 2015 7:23am PDT

The business of helping shareholders in private tech companies turn their stock into cash is not without risk. But for those investors willing to lend money against stock in companies before they go public, the returns can be generous. One such investor, 137 Ventures, appears to have made at least a 50 percent return in 17 months on a loan it... The business of helping shareholders in private tech companies turn their stock into cash is not...

Vessel co-founder Jason Kilar. Photo by Bloomberg.

As Pay TV Pie Crumbles, Question Is Where Spending Goes

By Martin Peers · Aug 6, 2015 7:01am PDT

The years-long debate about whether mainstream TV networks are vulnerable to pay TV cord-cutting should now be over, thanks to Walt Disney’s disclosure on Tuesday that its near-term cable channel profits would be affected by ESPN subscriber losses. Little wonder that media stocks plunged on Wednesday. The more interesting question now is how big... The years-long debate about whether mainstream TV networks are vulnerable to pay TV cord-cutting...

Photo by Amir Efrati. Art by Matt Vascellaro.

Pinterest’s Revenue Man Tries to Bring Ad Plan into Focus

By Amir Efrati · Aug 5, 2015 11:03am PDT

Photo by Amir Efrati. Art by Matt Vascellaro.

The Big Interview

Pinterest’s Revenue Man Tries to Bring Ad Plan into Focus

By Amir Efrati · Aug 5, 2015 11:03am PDT

Every work day, Tim Kendall, Pinterest’s head of monetization, dons a T-shirt emblazoned with the word “Focus.” He started wearing it at the beginning of last year when he was still the company’s “head of product”—a misnomer, given that CEO Ben Silbermann effectively ran product—and wanted to inspire colleagues and himself. He said he’d continue... Every work day, Tim Kendall, Pinterest’s head of monetization, dons a T-shirt emblazoned with the...

The Information’s Latest Startups To Watch

By The Information Staff · Aug 5, 2015 7:00am PDT

The second installment of The Information’s Startups To Watch series highlights how international the startup scene is. Among the companies profiled is one that was dreamed up in an English barn, another with Chinese roots, one developed by an Australian living in San Francisco and a fourth created by three Canadians. As was the case with our... The second installment of The Information’s Startups To Watch series highlights how international...

Source: SEC Filings; Graphic by Peter Schulz

Private Tech Draws Wide Array of Mutual Funds

By Alfred Lee · Aug 4, 2015 7:01am PDT

Uber broke boundaries when it took investments from Fidelity and BlackRock last year. Suddenly, mutual funds widely held by 401(k)s were plunging into private tech. But institutional investing in Uber is more widespread than previously understood. Scores of mutual funds now own shares in the ridesharing company, according to regulatory filings... Uber broke boundaries when it took investments from Fidelity and BlackRock last year. Suddenly,...

YouTube star Tyler Oakley. Photo by Bloomberg.

The Problem with Being YouTube Famous

By Tom Dotan · Aug 3, 2015 10:00am PDT · 4 comments

Here’s an issue for all those media firms jockeying to cash in on the enormously popular YouTube stars and their giant audiences: is the nature of the medium making stars out of people too early, stunting their chances of growing into sustainable acts? That question came to mind at last month’s Vidcon—the annual conference of online video stars,... Here’s an issue for all those media firms jockeying to cash in on the enormously popular YouTube...

Art by Matt Vascellaro.

Chinese Tech Investors to Watch

By Tom Dotan and Jessica E. Lessin · Aug 3, 2015 7:00am PDT · 1 comment

Art by Matt Vascellaro.

Chinese Tech Investors to Watch

By Tom Dotan and Jessica E. Lessin · Aug 3, 2015 7:00am PDT · 1 comment

In investing, everyone wants an “in” in China. So we assembled a list of the local Chinese investors insiders know and rely on to scout the best tech investments in the country. These are the people who global funds like Tiger Global, DST and Coatue network with as they look for the next Alibaba. Many of them are early-stage and invest alongside... In investing, everyone wants an “in” in China. So we assembled a list of the local Chinese...

Qatalyst CEO Frank Quattrone. Photo by Bloomberg.

Cloud Giants Eye Mesosphere

By Amir Efrati and Steve Nellis · Aug 2, 2015 5:22pm PDT

Software startup Mesosphere has hired investment banking firm Qatalyst Partners to evaluate a buyout bid it recently received from a major cloud computing company and to engage with other potential bidders, according to a person involved in that process and a person who was briefed about it. Because the bid came from a major public cloud... Software startup Mesosphere has hired investment banking firm Qatalyst Partners to evaluate a...

The Hazard of Hype in Tech Reporting

By Jessica E. Lessin · Jul 31, 2015 10:22am PDT · 2 comments

There’s something about tech media coverage that isn’t sitting well with me right now. It’s actually more of a question I keep coming back to: How do you cover a very hyped industry without hyping it up more? It’s not an easy question to answer. Even writing about something while pointing out its flaws is a little hypey. Take, for instance a... There’s something about tech media coverage that isn’t sitting well with me right now. It’s...

*Calculation: More Optimistic - Less Optimistic = The Information Score

Subscriber Survey

Steady Pessimism Around Some Private Tech

By Martin Peers and Peter Schulz · Jul 31, 2015 7:00am PDT

Nine months into our subscriber survey, some clear trends are emerging. The biggest standout from the data is that sentiment around Square, Lyft and Dropbox has been consistently pessimistic.Overall, there’s been more negativity towards private companies than public ones. In the latest month, attitudes towards Lyft and Pinterest worsened,... Nine months into our subscriber survey, some clear trends are emerging. The biggest standout from...

Buzzfeed COO Jonah Peretti. Photo by Bloomberg

Buzzfeed’s Quest For Media Partners

By Tom Dotan and Martin Peers · Jul 30, 2015 1:47pm PDT

Buzzfeed COO Jonah Peretti. Photo by Bloomberg

Buzzfeed’s Quest For Media Partners

By Tom Dotan and Martin Peers · Jul 30, 2015 1:47pm PDT

Discussions between new and traditional media companies are heating up but in a way that highlights the profitability and audience problems afflicting each side. The negotiations that seem to be in vogue these days involve an online video outlet partnering up with a television network to get TV ad dollars and subscription fees. The TV companies... Discussions between new and traditional media companies are heating up but in a way that...

Fitbit CEO James Park. Photo by Bloomberg.

The Tax Accounting Behind Fitbit’s Big Profit Swing

By Alfred Lee · Jul 30, 2015 7:00am PDT

When Fitbit filed to go public this spring, investors focused on its dramatic swing to profitability—a narrative that helped launch one of the most successful IPOs of the year. The stock has more than doubled since its June debut on Wall Street. Some of that attention is warranted: First quarter profits soared on higher sales of the... When Fitbit filed to go public this spring, investors focused on its dramatic swing to...

Art by Matt Vascellaro.

The Big Interview

Sebastian Thrun’s Big Business Model Shift

By Steve Nellis · Jul 29, 2015 10:47am PDT · 2 comments

Over the past few years, investors have dumped hundreds of millions of dollars into online education, and now companies like Coursera, Udemy and edX are searching for profitable long-term business models. That’s led Udacity founder Sebastian Thrun to abandon his initial approach of charging for videos and to instead charge for degrees in... Over the past few years, investors have dumped hundreds of millions of dollars into online...

Source: Pitchbook

How to Avoid the Series A Crunch

By Peter Schulz and Reed Albergotti · Jul 28, 2015 10:12pm PDT

It’s no secret everyone wants to build an app company and lots of investors want to fund one. But new data show the degree to which individual firms in the sector face taller odds of raising the next round of funding compared with startups other areas like financial software and network management. The Information asked Pitchbook, which collects... It’s no secret everyone wants to build an app company and lots of investors want to fund one. But...

SugarCRM CEO Larry Augustin. Contributed photo.

Navigating a Startup’s Awkward Teenage Years

By Steve Nellis · Jul 28, 2015 7:00am PDT

SugarCRM CEO Larry Augustin. Contributed photo.

Navigating a Startup’s Awkward Teenage Years

By Steve Nellis · Jul 28, 2015 7:00am PDT

The $23.2 billion market for sales software is ripe for consolidation. Five big players—Salesforce.com, SAP, Oracle, Microsoft and IBM—dominate the market, but about half is controlled by a slew of smaller companies. Perhaps the most prominent of those smaller players is Cupertino-based SugarCRM, whose rapid growth in the past few years could... The $23.2 billion market for sales software is ripe for consolidation. Five big players—...