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

Colorado Governor John Hickenlooper. Illustration by Matthew Vascellaro.

Q&A

In Colorado, a Startup Culture Built on Lifestyle

By Jonathan Weber · Jul 24, 2014 1:38pm PDT

Colorado has long punched above its weight in the tech business, led by telecom and aerospace companies that benefited from the state’s central location and wide-open spaces. In recent years, the city of Boulder in particular has been a hotbed of startup activity; Colorado ranked eighth nationally among all states in VC investment last quarter,... Colorado has long punched above its weight in the tech business, led by telecom and aerospace...

Jawbone CEO Hosain Rahman. Photo by TechCrunch.

Jawbone’s Big Vision Clouded by Market Realities

By Katie Benner · Jul 24, 2014 7:31am PDT · 5 comments

Ask about Jawbone for long enough and the word genius inevitably comes up. The product genius. The design genius. The genius of chief executive Hosain Rahman, who is described by peers and investors as a mastermind, a stylist and a contender for the title of “Next Steve Jobs.” “This is the genius of Jawbone,” says... Ask about Jawbone for long enough and the word genius inevitably comes up. The product genius....

Apple CEO Tim Cook. Photo by Bloomberg.

Apple’s Mobile Wallet Talks Heat Up

By Amir Efrati · Jul 23, 2014 1:45pm PDT · 5 comments

Conversations between Apple and payments-industry companies have heated up in recent months, with several people briefed on the talks saying that Apple executives have discussed launching a mobile “wallet” as soon as this fall for people to use their iPhones to pay for goods in physical stores. Apple has long been expected to make... Conversations between Apple and payments-industry companies have heated up in recent months, with...

Artwork by Pius Uzamere.

Welcoming Our First Group of Contributors!

By Pius Uzamere and Jessica Lessin · Jul 23, 2014 7:20am PDT · 11 comments

Artwork by Pius Uzamere.

Welcoming Our First Group of Contributors!

By Pius Uzamere and Jessica Lessin · Jul 23, 2014 7:20am PDT · 11 comments

We’re very excited to announce that we are testing a new commenting system for The Information. We’re fortunate to have insightful subscribers and enjoy hearing from them regularly. So we reached out to a handful of them whose views and insights we think all our subscribers would enjoy and have asked them to comment from time to... We’re very excited to announce that we are testing a new commenting system for The...

Vice Media CEO Shane Smith. Photo by Associated Press.

At Vice Media, Getting Paid for the ‘Cool’ Factor

By Tom Dotan · Jul 23, 2014 7:02am PDT · 7 comments

Vice Media has built a billion-dollar company by declaring itself as the news source with a direct line to hip millennials. But the company’s remarkable success to date is based largely on convincing brand marketers to pay a big premium for the ineffable “cool” factor—a strategy that could prove hard to sustain in the... Vice Media has built a billion-dollar company by declaring itself as the news source with a...

Wealthfront CEO Adam Nash. Photo by Bloomberg.

Sector Spotlight

Startup Money-Managers Banking on the ‘Mass Affluent’

By Katie Benner · Jul 22, 2014 7:51am PDT · 1 comment

It’s easy to understand why banking is often described as “ripe for disruption.” The industry is slow, complicated and known for hidden fees, fine print and rules that seemingly favor Wall Street at the expense of Main Street. While payments companies and Bitcoin-related businesses try to improve financial services, a new breed... It’s easy to understand why banking is often described as “ripe for...

Jason Fried, CEO of Basecamp. Photo by Jason McELweenie.

For Self-Funded Companies, Low Pressure Can Mean High Margins

By Eric Newcomer · Jul 21, 2014 12:51pm PDT

Companies like Box and Square make headlines, but not profits, in Silicon Valley. Another breed of company tends to post high profit margins but flies under the radar: the self-funded. Think Craigslist, Valve, Plenty of Fish, Basecamp, Mailchimp and Gawker, all of which were bootstrapped by their founders without large direct investments... Companies like Box and Square make headlines, but not profits, in Silicon Valley. Another breed...

Amazon CEO Jeff Bezos. Photo by Bloomberg

Why Amazon’s Accountants Keep Quiet About Cloud Business

By Amir Efrati · Jul 21, 2014 7:31am PDT

Amazon CEO Jeff Bezos. Photo by Bloomberg

Why Amazon’s Accountants Keep Quiet About Cloud Business

By Amir Efrati · Jul 21, 2014 7:31am PDT

Speaking at the Fortune Brainstorm conference last week, Amazon.com executive Andy Jassy described Amazon Web Services, the company’s fast-growing cloud-services business, as “completely separable—and organized and managed that way—from the rest of Amazon.” But Amazon's public filings don’t list any... Speaking at the Fortune Brainstorm conference last week, Amazon.com executive Andy Jassy...

Is Uber More Like Amazon.com or an Airline?

By Jessica Lessin · Jul 18, 2014 2:02pm PDT

In one of the most interesting rivalries to watch in tech right now, Uber, Lyft and even much smaller on-demand ride competitors continue to duke it out for market share by slashing prices. My wallet thanks them. But my brain has increasingly started to wonder: Where does it stop? And how good a business can these companies be over the long-term... In one of the most interesting rivalries to watch in tech right now, Uber, Lyft and even much...

Intel President Renée James at Fortune's Brainstorm conference. Photo by Kevin Moloney.

The Next Wave: Feeding the Corporate Tech Beast

By Jonathan Weber · Jul 18, 2014 7:24am PDT

ASPEN, Co.—At the Fortune Brainstorm conference in Aspen this week, one early-stage investor and loyal veteran of the tech conference circuit had a simple complaint: “Too many suits,” he grumbled, referring to what he perceived as an unusually large presence of big, old-line companies. One segment of the event felt like a... ASPEN, Co.—At the Fortune Brainstorm conference in Aspen this week, one early-stage...

Samsung Vice Chairman Jay Y. Lee at Sun Valley a year ago. Photo by Bloomberg.

Smartwatches Drive New Wedge Between Samsung, Google

By Jessica Lessin · Jul 17, 2014 10:11am PDT

Tensions between Google and Samsung are escalating again—this time over wearables. Last week, in a tense private meeting at the Allen & Co. conference in Sun Valley, Google CEO Larry Page told Samsung Vice Chairman Jay Y. Lee that he was frustrated Samsung was investing more in smartwatches running Samsung’s Tizen operating... Tensions between Google and Samsung are escalating again—this time over wearables. Last...

Silicon Valley Bank CEO Greg Becker. Photo by Bloomberg.

The Hidden Costs of Venture Debt

By Katie Benner · Jul 17, 2014 7:21am PDT

Silicon Valley Bank CEO Greg Becker. Photo by Bloomberg.

The Hidden Costs of Venture Debt

By Katie Benner · Jul 17, 2014 7:21am PDT

Biotech entrepreneurs are increasingly borrowing money rather than raising equity. So-called venture debt seems like a tempting option for all startups that need large up-front investments but will generate almost no revenue for many years. Companies say they’re attracted to the deals because debt doesn’t dilute existing... Biotech entrepreneurs are increasingly borrowing money rather than raising equity. So-called...

General Electric CIO Jamie Miller. Illustration by Matthew Vascellaro.

Q&A

Marching General Electric into the Cloud Era

By Jonathan Weber · Jul 16, 2014 12:34pm PDT

As senior vice president and chief information officer at General Electric, Jamie Miller has the daunting task of managing the sprawling industrial conglomerate’s transition to next-generation enterprise computing. Part of the task involves moving the company’s internal computing infrastructure to the cloud. Part of it involves providing better... As senior vice president and chief information officer at General Electric, Jamie Miller has the...

Google's Android chief, Sundar Pichai, introduces Android One in June. Photo by Bloomberg.

Google Plans India Ad Blitz in Smartphone Bid

By Amir Efrati · Jul 16, 2014 7:21am PDT

Google is planning a major spending effort on marketing its new Android One phones in India, in an ambitious play into a challenging but potentially huge market for smartphones. The company, which announced the new Android One specifications for phones targeted at the developing market in June, has told potential partners that it would... Google is planning a major spending effort on marketing its new Android One phones in India,...

Yahoo CEO Marissa Mayer. Photo by Bloomberg.

Yahoo Grabbed ‘Community’ from Hulu in Last-Minute Bid

By Tom Dotan · Jul 15, 2014 7:05am PDT

Yahoo made waves late last month when it paid tens of millions of dollars for a sixth season of the cancelled NBC sitcom “Community.” But previously-unreported backroom negotiations show how badly the company wanted the series, as it continues to pay top dollar for flashy video programming that, for now, generates little revenue. In... Yahoo made waves late last month when it paid tens of millions of dollars for a sixth season of...

Rakuten CEO Hiroshi Mikitani at Sun Valley, Idaho, last week.

Knocking Amazon Strategy, Rakuten CEO Bets on Messaging

By Amir Efrati · Jul 14, 2014 11:13am PDT

Rakuten CEO Hiroshi Mikitani at Sun Valley, Idaho, last week.

Knocking Amazon Strategy, Rakuten CEO Bets on Messaging

By Amir Efrati · Jul 14, 2014 11:13am PDT

Amazon.com has raised eyebrows by pursuing a strategy of launching smartphones, tablets and TV hardware to try to boost its shopping and video content. Hiroshi Mikitani, CEO of Japan-based Rakuten, Amazon’s e-commerce rival in Asia and elsewhere, thinks that strategy is misguided. In an exclusive interview on the sidelines of the Allen... Amazon.com has raised eyebrows by pursuing a strategy of launching smartphones, tablets and TV...

Snapchat CEO Evan Spiegel. Photo by TechCrunch.

Snapchat Pushes in New Directions as Usage Soars

By Eric Newcomer · Jul 14, 2014 7:48am PDT

The ephemeral messaging application Snapchat is entering a new phase. Long known primarily as a way for teens to share pictures without the permanence and seeming omniscience of Facebook, Snapchat is quickly evolving into a sophisticated multimedia messaging system and social network with a variety of features. Celebrities and big brand... The ephemeral messaging application Snapchat is entering a new phase. Long known primarily as a...

The ‘Page Doctrine’ and the Future of Google

By Jessica Lessin · Jul 11, 2014 12:40pm PDT

The part of the Allen & Company Sun Valley media and technology conference that outsiders don’t see isn’t glamorous. It’s an old, generally over-air-conditioned conference room where attendees gather to hear talks closed off from the media. The topics vary from year to year, but many of the names stay the same: Michael Bloomberg, Warren... The part of the Allen & Company Sun Valley media and technology conference that outsiders don...

John Hering, CEO of mobile security company Lookout. Photo by Bloomberg.

Consumer Tech Gets Little Love in Sun Valley

By Jessica Lessin and Amir Efrati · Jul 11, 2014 7:47am PDT

SUN VALLEY, Idaho—There’s a question buzzing around this week’s Allen & Co. media and technology conference: Where are all the new consumer technology companies? Sure, the CEOs from Google, Facebook and Twitter are in attendance as usual. But when it comes to the newly invited entrepreneurs—the ones whom Allen... SUN VALLEY, Idaho—There’s a question buzzing around this week’s Allen & Co....

IAC Chairman Barry Diller. Photo by Bloomberg.

In Sun Valley, Moguls Divided on TV Mergers

By Jessica Lessin · Jul 10, 2014 2:25pm PDT

IAC Chairman Barry Diller. Photo by Bloomberg.

In Sun Valley, Moguls Divided on TV Mergers

By Jessica Lessin · Jul 10, 2014 2:25pm PDT

SUN VALLEY, Idaho—The scuttlebutt heading into this year’s Allen & Co. media and technology conference was that the television programming industry is ripe for consolidation. Content needs scale, the theory goes, so someone will soon gobble up Time Warner, Discovery, Scripps and Viacom. The media was so primed for the story that... SUN VALLEY, Idaho—The scuttlebutt heading into this year’s Allen & Co. media and...