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: Donna Dubinsky and Jeff Hawkins, co-founders, Numenta

Recode Decode: Donna Dubinsky and Jeff Hawkins, co-founders, Numenta

Donna Dubinsky and Jeff Hawkins — the co-founders of Palm, Handspring and Numenta — talk with Recode's Kara Swisher about their efforts to decode the human brain. They say everything that makes us human, from language to art to engineering, derives from the same learning algorithm, and Numenta hopes to ultimately teach that algorithm to a machine. Dubinsky and Hawkins explain why we shouldn't be afraid that machines will take over the world and why they believe artificial intelligence will drive advancements in technology for the rest of the century. Learn more about your ad choices. Visit podcastchoices.com/adchoices

27 Kesä 201643min

Recode Decode: Daphne Koller, president, Coursera

Recode Decode: Daphne Koller, president, Coursera

Coursera president and co-founder Daphne Koller talks with Recode's Kara Swisher about how she helped build the popular online learning platform after a successful early experiment at Stanford University. Koller says the future of higher education is a mixture of online and offline learning, with people continually going back to school in some form throughout their lives, rather than stopping in their 20s. She discusses whether universities themselves are at risk of going extinct and whether technologies like artificial intelligence and virtual reality could replace a college professor. Learn more about your ad choices. Visit podcastchoices.com/adchoices

20 Kesä 201639min

Recode Decode: Chelsea Handler

Recode Decode: Chelsea Handler

Chelsea Handler, the host of Netflix's new talk show "Chelsea," chats with Recode's Kara Swisher about going digital after seven years on the cable channel E! She runs "Chelsea" like a normal TV show, just not a late-night one, because her viewers might watch at any time, in any order. Handler says re-entering the public eye meant adjusting to changes in social media (hello, Snapchat!) and discusses what she thinks of transgender bathroom rights, Donald Trump and Tesla's Elon Musk. Learn more about your ad choices. Visit podcastchoices.com/adchoices

13 Kesä 201642min

Recode Decode: Kim Kardashian

Recode Decode: Kim Kardashian

Reality TV star and entrepreneur Kim Kardashian talks with Recode's Kara Swisher about why she doesn't use Facebook, but loves Snapchat. Kardashian credits her family's career success to social media and has successfully tapped digital partners at Whalerock to develop a paid-subscription app and the emoji app Kimojis, which has rocketed to the top of the charts on both iPhone and Android. Coming soon: Kimojis merch. She also chats about her penchant for naked selfies, being a parent and her husband Kanye West's yearning for a self-driving car. Learn more about your ad choices. Visit podcastchoices.com/adchoices

6 Kesä 201633min

Recode Decode: LeBron James's business manager, Maverick Carter

Recode Decode: LeBron James's business manager, Maverick Carter

Maverick Carter, the business manager for basketball superstar LeBron James of the Cleveland Cavaliers, talks to Recode's Kurt Wagner about how the internet has radically changed athletes' place in the media world. Athletes are no longer reliant on newspapers and TV networks to tell their stories, which means that they -- and the people they trust -- can hone and craft the narrative more than ever before. Carter also talks about what he learned working at Nike, the controversial live TV special "The Decision" and James's acting roles in "Trainwreck" and, maybe, "Space Jam 2." Learn more about your ad choices. Visit podcastchoices.com/adchoices

30 Touko 201641min

Recode Decode: JPMorgan Chase CEO Jamie Dimon

Recode Decode: JPMorgan Chase CEO Jamie Dimon

JPMorgan Chase president, chairman and CEO Jamie Dimon talks with Recode's Kara Swisher about how big banks are both competing against and collaborating with Silicon Valley. He explains why tech company IPOs have sharply declined in 2016 but says he's certain they will return. Dimon also reflects on the anger directed at banks throughout the 2016 election and what the next president needs to do to make things right. Learn more about your ad choices. Visit podcastchoices.com/adchoices

23 Touko 201640min

Recode Decode: Rep. Nancy Pelosi

Recode Decode: Rep. Nancy Pelosi

U.S. Rep. and House Minority Leader Nancy Pelosi sits down with Recode's Kara Swisher to talk about the 2016 election, immigration reform and how Congress is trying to work with and learn from the tech industry. Pelosi says she's certain that Hillary Clinton will defeat Donald Trump in the presidential race and explains why she sides with Apple in its ongoing encryption battle against the FBI. Learn more about your ad choices. Visit podcastchoices.com/adchoices

16 Touko 201647min

Recode Decode: Walt Mossberg

Recode Decode: Walt Mossberg

On this special episode of "Recode Decode," we celebrate the relaunch of Recode.net with an extended interview between Recode co-founders Kara Swisher and Walt Mossberg. In 1991, Mossberg was laughed out of the Secretary of State's office for announcing that he would start writing about technology. Three media companies and 25 years later, he reflects on the changing landscape of tech journalism. Plus: Kara and Walt preview the upcoming Code Conference and look back on a decade of conference highlights and lowlights. Learn more about your ad choices. Visit podcastchoices.com/adchoices

9 Touko 201648min

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