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

Russian-born Sergey Brin, a Google co-founder. Photo by Bloomberg.

Google Shuts Down Russia Engineering Office

By Amir Efrati · Dec 11, 2014 2:47pm PST · 1 comment

Google plans to shut down its engineering operations in Russia, following similar recent departures by other Western and Russian software companies and engineers, according to people informed of the decision. Google plans to shut down its engineering operations in Russia, following similar recent...

Art by Jessica Lessin.

Fast Climbers

By Jessica E. Lessin · Dec 11, 2014 11:34am PST · 2 comments

Skyrocketing private tech valuations are the norm these days, causing us to wonder how the pace of growth of today’s high-fliers compares to high-fliers of the recent past. The Information crunched data supplied by PitchBook to identify private VC-backed companies whose valuations have climbed the fastest between financings since 2011. ... Skyrocketing private tech valuations are the norm these days, causing us to wonder how the pace...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

The Serious Problem With Satire on Facebook

By Tom Dotan · Dec 11, 2014 7:01am PST · 1 comment

Late last month, while the debate around President Obama’s decision to grant some amnesty to undocumented immigrants was happening, a story with the headline “Sarah Palin: Send Immigrants ‘Back Across Ocean’ to Mexico” appeared in many people’s Facebook News Feeds. The story was, of course, untrue. But scores... Late last month, while the debate around President Obama’s decision to grant some amnesty...

Art: Matt Vascellaro

Tapping India’s Massive Mobile Ad Market

By Steve Nellis · Dec 10, 2014 10:12am PST

Art: Matt Vascellaro

Q&A

Tapping India’s Massive Mobile Ad Market

By Steve Nellis · Dec 10, 2014 10:12am PST

With 200 million users, India is the world’s third-largest Internet market. But the overwhelming majority of those people connect solely through phones, which means some ad-targeting approaches common in the U.S. don’t work. One executive working on new types of targeting is Dippak Khurana, the CEO of Mumbai-based Vserv. He has... With 200 million users, India is the world’s third-largest Internet market. But the...

Baidu CEO Robin Li. Photo by Bloomberg.

Stealth Chinese Apps Gather Data on Global Users

By Steve Nellis · Dec 10, 2014 7:00am PST

Selling utility apps such as battery savers and speed boosters might not seem like the path to world domination. But China’s biggest Internet firms are doing just that to amass hundreds of millions of international users—and gain an understanding of their browsing habits. Companies like Baidu, China’s dominant search engine,... Selling utility apps such as battery savers and speed boosters might not seem like the path to...

Art by Sam Lessin.

Subscriber Survey

Economy Soars, Uber Drops in The Information Survey

By Jessica E. Lessin and Sam Lessin · Dec 9, 2014 12:12pm PST · 4 comments

Maybe it was the bullish jobs report. Maybe it was the drumbeat of mammoth fundraising rounds for private tech companies.Whatever the reasons, The Information subscribers are notably more optimistic about the overall economy than a month ago—and in a more upbeat mood about the tech sector too. In December’s monthly sentiment survey,... Maybe it was the bullish jobs report. Maybe it was the drumbeat of mammoth fundraising rounds for...

Google CEO Larry Page. Photo by Bloomberg.

The Hole in Google’s Mobile Strategy

By Amir Efrati · Dec 9, 2014 7:01am PST · 3 comments

This article is part one of a series. Part two is here. Google has a mobile problem, and it goes beyond the fact that people are searching differently on phones than on computers. Fast-growing smartphone apps from Snapchat to Yik Yak are being born every day, occupying bigger slices of people’s time. Google hasn’t built or acquired... This article is part one of a series. Part two is here. Google has a mobile problem, and it goes...

Art by Sam Lessin.

The Race to Become the Apple of Drones

By Sam Lessin · Dec 8, 2014 10:54am PST · 3 comments

Art by Sam Lessin.

Modest Proposals

The Race to Become the Apple of Drones

By Sam Lessin · Dec 8, 2014 10:54am PST · 3 comments

One of the biggest technology battles brewing is the war over the flying camera. On one hand, there’s GoPro, the action camera company whose plans to build drones leaked last month. And then there is DJI, the Chinese consumer drone manufacturer, whose easy-to-fly quadcopters have been gaining traction with consumers. The latter recently... One of the biggest technology battles brewing is the war over the flying camera. On one hand,...

Photo by Associated Press.

Netflix Reverses Stock Option Policy in Hunt for Talent

By Martin Peers · Dec 8, 2014 7:01am PST

Question: Who in Silicon Valley would choose to work for a company that didn’t pay bonuses and only gave employees stock options if they were willing to forgo part of their salary in exchange? Apparently, not too many, if Netflix’s experience is anything to go by. That unusual stock-for-salary allocation approach has been a central... Question: Who in Silicon Valley would choose to work for a company that didn’t pay bonuses...

Journalism’s Dying Journalism Model

By Jessica E. Lessin · Dec 5, 2014 10:21am PST · 5 comments

Last year, I wrote about journalism’s business model being broken. This year, I’m concerned that journalism’s journalism model is also on life support. Some old issues persist. Sensationalism still prevails over substance, and far too much energy is wasted on commodity news or, worse, “news” straight from... Last year, I wrote about journalism’s business model being broken. This year,...

Netflix CEO Reed Hastings. Photo by Associated Press.

Over the Top: Part Four

How Media Companies Let Netflix in the Henhouse

By Tom Dotan · Dec 5, 2014 7:00am PST

The term disruptor gets used liberally in regard to tech companies, but it’s hard to find a more apt descriptor to explain what Netflix has done to the entertainment industry. Its rise from a DVD-by-mail service to perhaps the entertainment industry’s most significant buyer of video content is lore in both media and tech. Like other... The term disruptor gets used liberally in regard to tech companies, but it’s hard to find a...

Photo by Bloomberg.

How Microsoft Lost Hollywood

By Tom Dotan · Dec 4, 2014 10:19am PST

Photo by Bloomberg.

Over the Top: Part Three

How Microsoft Lost Hollywood

By Tom Dotan · Dec 4, 2014 10:19am PST

Former Microsoft CEO Steve Ballmer spent more than a year luring his friend Nancy Tellem to Microsoft to head up a new division that would deliver original television shows to Xbox users. Before she officially committed in September 2012, the one-time president of CBS wanted to be sure the software giant in Redmond, Wash. was serious about... Former Microsoft CEO Steve Ballmer spent more than a year luring his friend Nancy Tellem to...

Art: Matt Vascellaro

Q&A

There’s a Crisis Happening in the Russian Tech Industry

By Amir Efrati · Dec 4, 2014 7:00am PST

It’s been a brutal year for Russia, and next year may be worse for its citizens and the business community amid an economic recession and continued friction between its government and the West. There have also been a variety of shockwaves sent through the Russian tech industry, which doesn't get much attention in the West despite being... It’s been a brutal year for Russia, and next year may be worse for its citizens and the...

Employees of Shape Security. Credit: Shape Security via Flickr

For Cybersecurity Startups Raising Cash, Customers Not Required

By Amir Efrati · Dec 3, 2014 10:15am PST

Cybersecurity startups are reaping tens of millions of dollars in funding despite a lack of big customer contracts, raising the likelihood of a shakeout in the years to come. The valuations being placed on some of the most high-profile startups in the sector—often higher than $200 or $300 million—might not seem eye-popping in an era... Cybersecurity startups are reaping tens of millions of dollars in funding despite a lack of big...

Apple CEO Tim Cook with U2. Photo by Bloomberg.

Why Tech Companies Should Pay Up for Music

By Martin Peers · Dec 3, 2014 7:01am PST

As Pink Floyd tells it in their 1975 song “Have a Cigar,” a hit record was a way for record companies to “ride the gravy train.” If Pink Floyd was to update the song, they’d have to put those words into the mouths of executives from Silicon Valley. Overlooked in all the debate about whether Spotify is correctly... As Pink Floyd tells it in their 1975 song “Have a Cigar,” a hit record was a way for...

Yahoo chief information security officer Alex Stamos, formerly of Artemis Internet.

Encryption Wave Poses Big Questions for Advertising

By Steve Nellis · Dec 2, 2014 10:30am PST

Yahoo chief information security officer Alex Stamos, formerly of Artemis Internet.

Encryption Wave Poses Big Questions for Advertising

By Steve Nellis · Dec 2, 2014 10:30am PST

In the year and a half since Edward Snowden disclosed mass surveillance programs at the National Security Agency, Silicon Valley firms have raced to prove that handing them data isn’t one small step removed from handing it over to the U.S. government. Anxious to rebuild trust with customers, Silicon Valley companies from Apple to Facebook... In the year and a half since Edward Snowden disclosed mass surveillance programs at the National...

Art by Matt Vascellaro.

Over The Top: Part Two

An Uneasy Union: When Disney Met Maker

By Tom Dotan · Dec 2, 2014 7:06am PST

When Disney CEO Bob Iger struck up a conversation with Maker Studios CEO Ynon Kreiz at Allen & Co.’s Sun Valley conference in 2013, it wasn’t obvious to him why Disney would need the money-losing startup that managed YouTube videos for online stars like Swedish video game fanatic Felix “PewDiePie” Kjellberg. But over... When Disney CEO Bob Iger struck up a conversation with Maker Studios CEO Ynon Kreiz at Allen...

Art by Sam Lessin.

Modest Proposals

As Technology Kills GDP, What’s Next?

By Sam Lessin · Dec 1, 2014 10:01am PST · 1 comment

Gross Domestic Product has long been criticized as a flawed measure of the strength of an economy. But as technology topples the core economic assumptions of our society, GDP is rapidly becoming a completely broken metric. So what should replace GDP as an easily expressed yardstick for our economy and society? How should we measure the economy... Gross Domestic Product has long been criticized as a flawed measure of the strength of an...

Art by Matt Vascellaro.

Over the Top: Part One

A Song of Carrier and Content

By Tom Dotan · Dec 1, 2014 7:01am PST · 2 comments

There’s a joke about the difference between tech and media that people in Hollywood have been telling in recent years. A group of entertainment and tech bigwigs are holed up in a cabin during a snowstorm. The power is out and the Hollywood types are huddled together around a crackling fire. They look over to the other side of the house to... There’s a joke about the difference between tech and media that people in Hollywood have...

What Companies Give Up Staying Private

By Jessica E. Lessin · Nov 28, 2014 8:57am PST · 3 comments

What Companies Give Up Staying Private

By Jessica E. Lessin · Nov 28, 2014 8:57am PST · 3 comments

This year has been full of evidence technology companies are in no rush to go public, the latest of which is the news that Uber is on track to raise around $1 billion at a valuation approaching $40 billion—more than 1.5 times the public market value of Twitter. I suspect that 2015 will bring more of the same and force the industry to... This year has been full of evidence technology companies are in no rush to go public, the latest...