The Information

Cisco CEO Chuck Robbins. Photo by Bloomberg.

Former Cisco Execs Reunite to Form New Networking Startup

By Kevin McLaughlin · Feb 9, 2017 11:20am PST · 1 comment

Plans by four former Cisco executives to create a new startup have come together with the registration last month of a company called Pensando Systems. The company may develop a new kind of chip for networking and storage, said a person close to the startup, although product plans haven’t been finalized.The new company, whose name is... Plans by four former Cisco executives to create a new startup have come together with the...

Alibaba founder Jack Ma. Photo by Bloomberg.

Alibaba’s Ant Financial Raising Money for Global Expansion

By Juro Osawa · Feb 8, 2017 11:29am PST

China’s most valuable online finance company is on an acquisition spree to build a global powerhouse stretching from India to Texas. To fund its overseas deals, Ant Financial Services Group—an affiliate of online shopping giant Alibaba Group—is in early discussions with bankers to raise more than $3 billion, possibly by issuing... China’s most valuable online finance company is on an acquisition spree to build a global...

Snap co-founder Bobby Murphy (left) and Google's Urs Hölzle in 2014. Photo by Bloomberg.

Behind Snap’s Marriage to Google and the Cloud

By Amir Efrati · Feb 7, 2017 7:01am PST · 17 comments

Snap is the biggest consumer internet company to be built from scratch on top of cloud computing infrastructure it doesn’t own. That makes it an important symbol for the public cloud industry led by Amazon, Microsoft and Google, all of whom would like future Snaps to grow up on their clouds.Last week Snap disclosed in its IPO filing that... Snap is the biggest consumer internet company to be built from scratch on top of cloud computing...

Eric Schmidt, executive chairman of Alphabet. Photo by Bloomberg.

NetEase Offers Google a Way Back to China

By Juro Osawa, Shai Oster and Amir Efrati · Feb 6, 2017 9:01am PST · 1 comment

Eric Schmidt, executive chairman of Alphabet. Photo by Bloomberg.

NetEase Offers Google a Way Back to China

By Juro Osawa, Shai Oster and Amir Efrati · Feb 6, 2017 9:01am PST · 1 comment

Ever since Google left mainland China nearly seven years ago, it’s been looking for a way back in. The latest hope is a proposed tie-up to launch Google’s mobile app and digital-media store in China with NetEase, one of the country’s first internet brands.NetEase has approached Google to form a joint venture to launch the... Ever since Google left mainland China nearly seven years ago, it’s been looking for a way...

Snap's chief strategy officer, Imran Khan, in September. Photo by Bloomberg.

What Matters and What Doesn’t in Snap’s S-1

By Tom Dotan and Amir Efrati · Feb 1, 2017 7:53pm PST · 2 comments

The first stage of Snap’s roadshow for investors is set to begin after the public release of its S-1, detailing its IPO offering, which could happen by the end of this week. The subsequent pitch to investors will rely both on the user growth, engagement, and financial figures (some of which The Information has learned, including last... The first stage of Snap’s roadshow for investors is set to begin after the public release...

Google Vice President Carl Schachter in 2013. Photo by Denisse Springer, Lotus Eyes Photogrphay

Senior Google Cloud Exec Departs After Reorg

By Kevin McLaughlin · Feb 1, 2017 4:02pm PST · 1 comment

Carl Schachter, a Google vice president who was one of the public faces of its cloud computing business under Diane Greene, is leaving the company, The Information has learned. The move came as a surprise to many at the fast-growing Google unit, as Mr. Schachter had been promoted in 2015 and received additional responsibilities late last year.... Carl Schachter, a Google vice president who was one of the public faces of its cloud computing...

Snap CEO Evan Spiegel. Photo by Flickr/TechCrunch.

Snap Is Working on Smarter Lenses

By Tom Dotan · Feb 1, 2017 7:01am PST · 2 comments

Snap is working on a new version of its Lenses product that lets people overlay images onto landscapes in the real world, not just faces. The new technology is a notable expansion of the object recognition within Snapchat’s Lenses, one that could lead to more ad-friendly products.The new Lenses are currently being tested on Snap’s... Snap is working on a new version of its Lenses product that lets people overlay images onto...

Snap CEO Evan Spiegel. Photo by Flickr/TechCrunch.

How Snap Is Guarding Against IPO Lawsuits

By Alfred Lee · Jan 30, 2017 7:01am PST

Snap CEO Evan Spiegel. Photo by Flickr/TechCrunch.

How Snap Is Guarding Against IPO Lawsuits

By Alfred Lee · Jan 30, 2017 7:01am PST

In the world of corporate law, Snap will set a precedent with its expected IPO. It will likely be the first company to go public with a novel legal defense against an increasingly common kind of IPO-related lawsuit, one sparked when a company’s stock price falls after the public offering. Snap added a provision to its charter last October... In the world of corporate law, Snap will set a precedent with its expected IPO. It will likely be...

Fitbit products on display. Photo by Flickr/Mike Mozart.

Fitbit To Cut Jobs After Weak Q4

By Reed Albergotti · Jan 29, 2017 5:16pm PST · 12 comments

Fitbit is to cut between 5% and 10% of its employees, the company will announce on Monday, while disclosing that its fourth-quarter results were below expectations. The disclosures are the latest sign of a slowdown in the wearables market, according to two people briefed on the news. About 1,600 people work at Fitbit so the job cuts affect... Fitbit is to cut between 5% and 10% of its employees, the company will announce on Monday, while...

Jawbone CEO Hosain Rahman. Photo by Bloomberg.

Jawbone Was Late Paying Employees

By Reed Albergotti · Jan 27, 2017 2:25pm PST · 4 comments

Jawbone was about a week late paying employees this month, according to people familiar with the matter, news that is sure to feed uncertainty about the company’s future.At least some employees didn’t get paid at the company’s last scheduled pay date in the middle of the month, the people said. The payment was eventually made... Jawbone was about a week late paying employees this month, according to people familiar with the...

Stan Meresman and his wife, Sharon, at a Meals on Wheels gala in 2015. Photo by Drew Altizer Photography.

Snap’s IPO Whisperer

By Tom Dotan · Jan 26, 2017 7:00am PST

Six months before LinkedIn went public in 2011, the company tapped a longtime Silicon Valley financial executive, Stanley Meresman, to join its board. As head of the audit committee, Mr. Meresman played a key role in preparing the company for the rigors of being publicly traded, said one former LinkedIn board member.Nearly six years later, Mr.... Six months before LinkedIn went public in 2011, the company tapped a longtime Silicon Valley...

Greg Duffy. Photo by Flickr/TechCrunch.

Dropcam’s Greg Duffy Joins Apple

By Reed Albergotti · Jan 25, 2017 11:30am PST · 2 comments

Greg Duffy. Photo by Flickr/TechCrunch.

Dropcam’s Greg Duffy Joins Apple

By Reed Albergotti · Jan 25, 2017 11:30am PST · 2 comments

Greg Duffy, a former Nest manager who famously called Nest co-founder Tony Fadell a “tyrant bureaucrat,” has joined Apple—the company where Mr. Fadell made his name. Mr. Duffy’s hiring was confirmed by an Apple spokeswoman. His role couldn’t be learned. But given his background, starting security camera firm... Greg Duffy, a former Nest manager who famously called Nest co-founder Tony Fadell a “tyrant...

Tilt CEO James Beshara. Photo by Bloomberg.

Airbnb In Talks To Buy Payments Company Tilt

By Cory Weinberg · Jan 24, 2017 8:31am PST · 2 comments

Airbnb is nearing a deal to buy Venmo-competitor Tilt, said two people briefed on the discussion, for a price said to be between $10 million and $20 million. The deal would be a stunning comedown for a company that has raised a total of $62 million in equity, at a reported valuation most recently of $400 million.But Airbnb is buying Tilt for its... Airbnb is nearing a deal to buy Venmo-competitor Tilt, said two people briefed on the discussion,...

Magic Leap CEO Rony Abovitz. Photo by Bloomberg.

Magic Leap Stock Takes a Tumble

By Alfred Lee and Reed Albergotti · Jan 24, 2017 7:01am PST

Investors have slashed the price they’re willing to pay for Magic Leap stock in the secondary market by about 20% in recent weeks, say stockbrokers, a turnabout for one of last year’s most coveted private tech stocks.The stock slump follows a critical report in The Information in early December that called into question the mixed... Investors have slashed the price they’re willing to pay for Magic Leap stock in the...

LeEco co-founder Jia Yueting. Photo by Bloomberg.

LeEco Loses High Profile Marketing Exec

By Amir Efrati · Jan 23, 2017 3:32pm PST

Todd Pendleton, a high-profile former Samsung marketing executive who joined Chinese consumer electronics firm LeEco in the first quarter of last year, has quit the company, The Information has learned.Mr. Pendleton was the highest-profile hire made by LeEco as part of an aggressive recruiting push in the San Francisco Bay Area last year. The... Todd Pendleton, a high-profile former Samsung marketing executive who joined Chinese consumer...

Hotel Tonight CEO Sam Shank. Photo by Bloomberg.

Why Priceline Has Passed On Hotel Tonight—So Far

By Cory Weinberg · Jan 19, 2017 7:00am PST · 7 comments

Hotel Tonight CEO Sam Shank. Photo by Bloomberg.

Why Priceline Has Passed On Hotel Tonight—So Far

By Cory Weinberg · Jan 19, 2017 7:00am PST · 7 comments

In late 2015, Priceline held discussions with Hotel Tonight about possibly buying the smaller hotel-booking rival. Executives at Priceline liked the startup’s young, affluent user base and boutique hotel selection. But Hotel Tonight was on pace to lose $37 million that year on revenue of just $33 million. Priceline executives didn’t... In late 2015, Priceline held discussions with Hotel Tonight about possibly buying the smaller...

Google CEO Sundar Pichai launching Android One in India in 2014. Photo by Bloomberg.

Google’s New Stab at Boosting Android Brand in U.S.

By Amir Efrati · Jan 17, 2017 4:30pm PST · 4 comments

Google is expanding its “Android One” program for low-cost smartphones to the U.S in coming months, promising phone makers major new promotional dollars if they play by its rules, say three people briefed on the plan.The first phone to launch in the U.S. with Google’s Android One seal of approval, backed by an ad campaign... Google is expanding its “Android One” program for low-cost smartphones to the U.S in...

Lyft co-founder and president John Zimmer. Photo by Bloomberg.

Lyft’s 2016 Financials Show Business Gains

By Amir Efrati · Jan 12, 2017 1:26pm PST · 2 comments

Lyft, the ride-hailing app that’s a distant No. 2 to Uber in the U.S., lost about $600 million last year after generating $700 million in revenue, according to data reviewed by The Information and people with knowledge of the company’s finances.Despite the size of the loss, the 2016 results were a big improvement on the previous year... Lyft, the ride-hailing app that’s a distant No. 2 to Uber in the U.S., lost about $600...

Art by Matt Vascellaro

Washio’s Tumble and the Decline of On-Demand

By Tom Dotan · Jan 9, 2017 7:00am PST · 9 comments

Of all the on-demand businesses that swept through tech in the past couple of years, few were as hyped and strange as laundry. At the center of that spin cycle was Washio, a Los Angeles startup that promised to be an “Uber for Laundry.” Customers could use an app to order their dirty laundry picked up and returned clean the next... Of all the on-demand businesses that swept through tech in the past couple of years, few were as...

Oracle Cloud Hardware Exec Departs

By Kevin McLaughlin · Jan 5, 2017 6:25pm PST

Oracle Cloud Hardware Exec Departs

By Kevin McLaughlin · Jan 5, 2017 6:25pm PST

Scott Genereux, an Oracle senior vice president in charge of hardware sales in North America, recently left the company, said two people with knowledge of the matter. He will join storage vendor Veritas Technologies later this month as executive vice president of worldwide field operations, a Veritas spokeswoman said. Mr. Genereux, who joined... Scott Genereux, an Oracle senior vice president in charge of hardware sales in North America,...