Private equity bought out your doctor and bankrupted Toys”R”Us. Here’s why that matters.

Private equity bought out your doctor and bankrupted Toys”R”Us. Here’s why that matters.

The idea behind private equity or PE is simple: a private equity firm gathers up a bunch of cash, raises some investor cash and takes on a lot of debt to buy various companies, often taking them off the public stock market. Then, they usually install new management and embark on aggressive cost cutting and turnaround programs – mostly because they have to pay down all that debt pretty fast. Then, the company can be sold or taken public again for a hefty profit. But don’t worry—if it doesn’t work out, the PE firms are extracting fees at every step of the process so they get paid no matter what happens. In another world, these PE deals are just boring financing strategies or maybe the backbone of the occasional juicy corporate takeover story. In Decoder world, PE is everywhere. Since the modern PE industry kicked off in the 1980’s, it’s grown virtually unchecked, and as author Brendan Ballou explains, that’s had seriously negative consequences for all kinds of markets and consumers. Private equity affects everything from the modern nursing home industry, to the Solarwinds hack, one of the biggest hacks in U.S. history. Brendan Ballou is the author of Plunder: Private Equity’s Plan to Pillage America. Brendan is also a federal prosecutor and he served as Special Counsel for Private Equity in the antitrust division at the Department of Justice, so he’s uniquely suited to writing a book like this. Although he will be the first to tell you, the book does not reflect the views of the DOJ. This is a wonky episode, but it’s essential. Links: Plunder by Brendan Ballou How Private Equity Buried Payless - The New York Times Barnes & Noble is going back to its indie roots to compete with Amazon - Decoder, The Verge How arson led to a culture reboot at Traeger, with CEO Jeremy Andrus - Decoder, The Verge Opinion | Private Equity Is Gutting America — and Getting Away With It - The New York Times Ticketmaster, Taylor Swift, and antitrust – explained - The Verge What is chokepoint capitalism, with authors Cory Doctorow and Rebecca Giblin Credits: Decoder is a production of The Verge, and part of the Vox Media Podcast Network. Today’s episode was produced by Jackie McDermott and Raghu Manavalan, and it was edited by Callie Wright. The Decoder music is by Breakmaster Cylinder. Our Editorial Director is Brooke Minters, and our Executive Producer is Eleanor Donovan. Learn more about your ad choices. Visit podcastchoices.com/adchoices

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 Recode Decode: Ashton Kutcher

Recode Decode: Ashton Kutcher

Actor, producer and investor Ashton Kutcher talks with Recode's Kara Swisher about his life as both a TV star and a tech obsessive. Kutcher, who starred in shows like "Two and a Half Men" and "That '70s Show," has invested over the past five years in companies like Uber, Airbnb and Square. But he passed on Snapchat — twice — because he hated the app's design and feared what would happen when it got hacked. He's currently starring in the Netflix sitcom "The Ranch," and says denying the rise of digital media platforms in Hollywood is like denying climate change. Learn more about your ad choices. Visit podcastchoices.com/adchoices

17 Loka 201659min

Recode Decode: 'Iron Man' director Jon Favreau

Recode Decode: 'Iron Man' director Jon Favreau

Jon Favreau, the actor and director known for films such as "Swingers," "Iron Man" and "The Jungle Book," talks with Recode's Kara Swisher about his new efforts in virtual reality, starting with the interactive short film "Gnomes & Goblins." Favreau says that VR is a powerful artists' tool, but advances in digital filmmaking won't replace actors, or the need for fundamental storytelling skills. He hopes to use virtual reality to create powerful connections between the viewer and virtual characters, and explains how other tech trends like Netflix have changed Hollywood forever. Learn more about your ad choices. Visit podcastchoices.com/adchoices

12 Loka 201649min

Recode Decode: 'The Late Late Show' host James Corden

Recode Decode: 'The Late Late Show' host James Corden

James Corden, host of "The Late Late Show" on CBS and viral video star, talks with Recode's Kara Swisher about redesigning a talk show for the YouTube generation, built around segments like "Carpool Karaoke." Corden has a complicated relationship with technology, and worries that the internet's appearance of freedom of choice is making us all more narrow-minded. He also chats about encounters with drones and social media bullies and why he thinks the technology industry is misleading the public by using the term "the cloud." Learn more about your ad choices. Visit podcastchoices.com/adchoices

10 Loka 20161h 1min

 Recode Decode: Aileen Lee, managing partner, Cowboy Ventures

Recode Decode: Aileen Lee, managing partner, Cowboy Ventures

Cowboy Ventures founder and managing partner Aileen Lee, previously a partner at Kleiner Perkins Caufield & Byers, talks with Recode's Kara Swisher about being one of the few female venture capitalists in Silicon Valley. After leaving Kleiner Perkins in 2012, Lee set out to amass data about the small percentage of startups that become breakout success stories, and she coined the term "unicorn" to describe the small fraction that would be valued at more than $1 billion. She says entrepreneurs today have to be tougher now that investors' fervor has cooled off, and says those investors will have to change, too, by becoming more diverse. Learn more about your ad choices. Visit podcastchoices.com/adchoices

3 Loka 201651min

 Recode Decode: Bradley Tusk, CEO, Tusk Holdings

Recode Decode: Bradley Tusk, CEO, Tusk Holdings

Tusk Holdings CEO Bradley Tusk talks with Recode's Kara Swisher about his unique political consulting firm Tusk Ventures, which trades equity in companies like Uber, FanDuel and DraftKings for regulatory guidance. Tusk previously worked for former New York City mayor Michael Bloomberg, and explains in detail how Uber undermined the city's current mayor, Bill de Blasio, with a series of blistering attacks last year. He also talks about the tech challenges facing America's next president, including autonomous driving, drone regulation and how sharing-economy workers are classified. Learn more about your ad choices. Visit podcastchoices.com/adchoices

26 Syys 201655min

Recode Decode: Margrethe Vestager, Commissioner for Competition, European Commission

Recode Decode: Margrethe Vestager, Commissioner for Competition, European Commission

In this special bonus episode, Margrethe Vestager, Europe's Commissioner for Competition, talks with Recode's Kara Swisher about the high-profile cases she has brought against Apple and Google for alleged unfair tax breaks and antitrust violations, respectively. Vestager says "there is a limit to everything," including the assistance successful companies should get from the government, and their access to consumers' data. She rejects President Obama's past allegation of European regulators singling out American companies, and explains why Silicon Valley should be put under the microscope. Learn more about your ad choices. Visit podcastchoices.com/adchoices

20 Syys 201642min

 Recode Decode: John Hanke, CEO, Niantic

Recode Decode: John Hanke, CEO, Niantic

Niantic CEO John Hanke talks with Recode's Kara Swisher and Ina Fried about the company's hit mobile game Pokémon Go and what happens now that the initial hype around it has "stabilized." Future updates to the game will include new types of Pokémon, trading with other players and possibly battling with your friends. Hanke also reflects on his first company Keyhole, which was bought by Google and became Google Earth, and why augmented reality is a more important technology than virtual reality. Learn more about your ad choices. Visit podcastchoices.com/adchoices

19 Syys 201655min

 Recode Decode: Benchmark partner Bill Gurley

Recode Decode: Benchmark partner Bill Gurley

Benchmark general partner Bill Gurley talks with Recode's Kara Swisher about life as a venture capitalist and why he's still worried about a bubble, a topic he has written about extensively. Great entrepreneurs could raise money at any time, Gurley argues, but when funding is easy to come by, it invites in entitled and less talented startup founders, as well as unwanted government regulation. He also discusses sitting on the board of Uber, challenges faced by its CEO, Travis Kalanick, and why the ridesharing company is unlikely to go public "any time in the near future." Learn more about your ad choices. Visit podcastchoices.com/adchoices

12 Syys 201658min

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