Periodically

The Takeaway

By Jessica E. Lessin

An inside perspective on tech, media and startups from a reporter and founder who tells the truth about Silicon Valley.

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Recent Editions

The Takeaway

Tim Cook and Contradicting the Founder-CEO

By Jessica E. Lessin · Feb 20, 2015 11:22am PST
In Silicon Valley, people like to talk about there being two types of CEOs: the “visionary founder” who started the company or the “professional manager” who steps in when the founder leaves or is pushed aside. And there’s no doubting which of the two people prefer. Founder-led companies thrive, the stereotype goes (think Google and Facebook).... In Silicon Valley, people like to talk about there being two types of CEOs: the “visionary...
The Takeaway

Why There Will Never Be Another Google

By Jessica E. Lessin · Feb 13, 2015 10:39am PST · 2 comments
The talent shortage in the technology industry has been creating headaches for years, driving up compensation and the time managers spend recruiting engineers and business leaders. But another consequence of the crunch is less discussed: its impact on the size and structure of companies. The difficulty of finding key people to fill certain jobs... The talent shortage in the technology industry has been creating headaches for years, driving up...
The Takeaway

The Tech Sector May Not Be as Overheated as Some Think

By Jessica E. Lessin · Feb 6, 2015 10:14am PST · 1 comment
There’s no doubt that some tech companies are drawing valuations they won’t live up to. Risk is alive and well in the sector. But evidence is mounting that the private and public tech markets are more rational than some headlines make you think. This isn’t to say that we’re not nearing the peak of a cycle. Markets are cyclical, and there will be... There’s no doubt that some tech companies are drawing valuations they won’t live up to. Risk is...
Is Time the New Click Bait?
By Jessica E. Lessin · Jan 30, 2015 2:59pm PST · 1 comment
The Takeaway

Is Time the New Click Bait?

By Jessica E. Lessin · Jan 30, 2015 2:59pm PST · 1 comment
So Snapchat wants to become a media company. This week it showed off the long-rumored Discover, a way to watch and read stories from publishers like Yahoo and Vice by swiping to a new screen on the messaging service. It’s too early to say what Discover will mean for Snapchat or publishers. (For my suspicions on the latter, see this.) But... So Snapchat wants to become a media company. This week it showed off the long-rumored Discover, a...
The Takeaway

Why YouTube is a Bigger Deal Than I Thought

By Jessica E. Lessin · Jan 23, 2015 7:03am PST · 3 comments
Rest assured. This is not a “Gee, YouTube is going to be big” column. That would be nearly a decade late. But I recently realized that, despite appreciating the sheer volume of videos watched on YouTube, I’ve missed something big about the site’s potential to disrupt the media business. One of the most impressive things about YouTube isn’t just... Rest assured. This is not a “Gee, YouTube is going to be big” column. That would be nearly a...
The Takeaway

A Key Difference in How Chinese and U.S. Tech Cos. Approach Deals

By Jessica E. Lessin · Jan 16, 2015 10:30am PST · 4 comments
Here’s a riddle. Why do the biggest Chinese tech companies prefer to invest in companies strategic to their businesses while U.S. tech leaders prefer to acquire such companies outright? Tencent and Alibaba, for example, have bought partial stakes in everything from on-demand cab companies to peer-to-peer lenders to games. Mobile phone maker... Here’s a riddle. Why do the biggest Chinese tech companies prefer to invest in companies...
The Takeaway

Don’t Be Fooled by Boatloads of Cash

By Jessica E. Lessin · Jan 9, 2015 7:01am PST
You hear it a lot in the technology sector these days. Company X is flailing, but don’t worry: “They have a lot of cash. They’ll figure it out.” Cash in the bank, the theory goes, can reverse a company’s fortunes by helping it buy its way to relevance. And tech companies have plenty of it, even deducting the stockpiles stuck overseas they aren’t... You hear it a lot in the technology sector these days. Company X is flailing, but don’t worry: “...
The Information’s 2015 Book List
By Jessica E. Lessin · Jan 2, 2015 10:40am PST · 1 comment
The Takeaway

The Information’s 2015 Book List

By Jessica E. Lessin · Jan 2, 2015 10:40am PST · 1 comment
The Information subscribers love a good read. So just as we did last year (2014 selections reprised at the end), we asked some of you to suggest the best books you read in 2014. You generated an eclectic list with recommendations on everything from graphic memoirs to management tomes to cookbooks. Here’s the group with notes from the... The Information subscribers love a good read. So just as we did last year (2014 selections...
The Takeaway

Why Uber and Google Will Become Big Rivals

By Jessica E. Lessin · Dec 26, 2014 9:23am PST · 3 comments
Anyone who has been in Silicon Valley long enough knows all big tech companies eventually encroach upon each other’s turf. And I think 2015 will be the year we see the early signs of a new tech battle for the ages: Uber vs. Google. Both companies would have you believe they are more friend than foe. After all, Google senior vice president... Anyone who has been in Silicon Valley long enough knows all big tech companies eventually...
The Takeaway

Uber Maps, Mobile APIs and More Next Big Things

By Jessica E. Lessin · Dec 19, 2014 11:23am PST · 3 comments
A few months ago I predicted a few Next Big Things based on rumblings from industry insiders. With the new year approaching, I thought it was time for another batch. Mobile Maps 2.0: Mobile maps have been the killer app of the smartphone era, proving why it’s useful to have a computer in your pocket. Now, I think we’re... A few months ago I predicted a few Next Big Things based on rumblings from industry...
The Takeaway

When Shareholders Fight

By Jessica E. Lessin · Dec 12, 2014 11:21am PST
Back in 2012, five software developers who helped found a company that made technology to monitor health care fraud sued the venture capitalists who had invested in their company. They argued their ownership stakes had been diluted by the VCs, who held preferred stock and had padded their own wallets through a merger. The court allowed the case... Back in 2012, five software developers who helped found a company that made technology to monitor...
Journalism’s Dying Journalism Model
By Jessica E. Lessin · Dec 5, 2014 10:21am PST · 5 comments
The Takeaway

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,...
The Takeaway

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...
The Takeaway

In Uber Saga, No Calls for ‘Adult Supervision’

By Jessica E. Lessin · Nov 21, 2014 10:04am PST
Travis Kalanick is having a bad week. Critics including late night comedian Seth Meyers and Sen. Al Franken have called him “thuggish,” “arrogant” and “tone deaf” for his handling of the revelation that Uber executive Emil Michael, at a private-ish dinner, proposed spying on journalists. But it is worth... Travis Kalanick is having a bad week. Critics including late night comedian Seth Meyers and Sen....
The Takeaway

Why Investors Should Bet on Disruptors, Not Innovators

By Jessica E. Lessin · Nov 14, 2014 9:13am PST · 3 comments
There’s a feeling in Silicon Valley that the latest breed of big startups—companies like Uber, Dropbox and Airbnb—are “all grown up,” meaning they’ve had their run up in valuations and investors seeking big returns must look elsewhere. But there’s also a feeling that the next big wave is proving hard to... There’s a feeling in Silicon Valley that the latest breed of big startups—companies...
The Truth About Tech Companies and Professional Content
By Jessica E. Lessin · Nov 7, 2014 9:18am PST · 4 comments
The Takeaway

The Truth About Tech Companies and Professional Content

By Jessica E. Lessin · Nov 7, 2014 9:18am PST · 4 comments
It’s time to question the Faustian bargain big and small media companies keep making with fast-growing technology platforms. This week, reports surfaced that publishers including BuzzFeed, CNN, Time and ESPN are in talks to contribute to a new part of Snapchat that will showcase professional content. Snapchat is wise to court... It’s time to question the Faustian bargain big and small media companies keep making with...
The Takeaway

Why Twitter’s Latest Narrative Concerns Me

By Jessica E. Lessin · Oct 31, 2014 11:11am PDT · 3 comments
I have been scratching my head all week about what’s going on at Twitter, and I’m worried. I’m not concerned that it posted a $175 million quarterly loss or that company executives issued lower-than-expected guidance for next quarter. What worries me is the confusing story it is telling. Twitter CEO Dick Costolo and CFO Anthony... I have been scratching my head all week about what’s going on at Twitter, and I’m...
The Takeaway

On Valuations, Stop Looking at the Outliers

By Jessica E. Lessin · Oct 24, 2014 11:17am PDT
Like most of you, I’ve been searching for some numbers to make sense of the private tech market, the dollars flowing in and the upward pressure on pricing. And while I haven’t devised one perfect indicator, I have concluded that the method many people are using to evaluate whether the market is overpriced is deeply flawed. ... Like most of you, I’ve been searching for some numbers to make sense of the private tech...
The Takeaway

Silicon Valley’s Frontman Problem

By Jessica E. Lessin · Oct 17, 2014 12:22pm PDT · 2 comments
Media interest in Silicon Valley is intensifying, often around a few vocal individuals. Marc Andreessen’s tweets about all matter of topics are being picked up by media outlets right and left. Every word out of Elon Musk, crazy or otherwise, spawns some (highly clickable) headlines. Peter Thiel’s remarks about Twitter management and pot hit a... Media interest in Silicon Valley is intensifying, often around a few vocal individuals. Marc...
Why the Conventional Wisdom Around Messaging is Wrong
By Jessica E. Lessin · Oct 10, 2014 11:40am PDT
The Takeaway

Why the Conventional Wisdom Around Messaging is Wrong

By Jessica E. Lessin · Oct 10, 2014 11:40am PDT
Investors are tripping over themselves to invest in messaging startups again. Eric, Tom and I hear Sequoia Capital and other VCs have been considering putting another round into productivity service Slack. We also hear Slack, which launched last year, has been seeking a valuation of as much as $1 billion, citing as a comparable the $1.2 billion... Investors are tripping over themselves to invest in messaging startups again. Eric, Tom and I...