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: Nick Denton, Gawker Media Founder, and Jason Epstein, Investor

Recode Decode: Nick Denton, Gawker Media Founder, and Jason Epstein, Investor

Gawker Media founder Nick Denton and new board member Jason Epstein, who just bought a minority share of the company, sit down with Peter Kafka to discuss the online media company's rapidly changing outlook. For example, Denton says he's no longer trying to fight against the growing force of Facebook. Plus: How will Gawker deal with the lawsuit from professional wrestler Hulk Hogan heading to trial? Learn more about your ad choices. Visit podcastchoices.com/adchoices

28 Tammi 201629min

Recode Decode: John Zimmer, Lyft President

Recode Decode: John Zimmer, Lyft President

Lyft President John Zimmer sits down with Kara Swisher to talk about the company's transition from ridesharing to autonomous cars, the focus of a recently announced partnership with GM. He also discusses whether Lyft is being aggressive enough in its competition with Uber and the regulatory challenges both companies face in Europe. Learn more about your ad choices. Visit podcastchoices.com/adchoices

25 Tammi 201635min

Recode Decode: Shani Hilton, BuzzFeed Executive Editor of News

Recode Decode: Shani Hilton, BuzzFeed Executive Editor of News

BuzzFeed’s Executive Editor of News Shani Hilton talks with Peter Kafka about how she rose to a leadership role within one of the world's most talked-about new media companies. She discusses how the site's strategies have changed as she manages a staff of more than 100 people. Plus: Why millennials don't need special news. Learn more about your ad choices. Visit podcastchoices.com/adchoices

21 Tammi 201629min

Recode Decode: Max Levchin, Affirm CEO

Recode Decode: Max Levchin, Affirm CEO

Affirm CEO and PayPal co-founder Max Levchin talks with Kara Swisher about being a serial entrepreneur and discovering more about himself in the process. He also discusses why startup founders and investors are increasingly flocking to finance, the problems with banking that tech can solve and what Marissa Mayer is doing right at Yahoo. Learn more about your ad choices. Visit podcastchoices.com/adchoices

17 Tammi 201642min

Recode Decode: Chris Altchek, Mic CEO

Recode Decode: Chris Altchek, Mic CEO

Mic CEO Chris Altchek talks with Peter Kafka about building a news site for millennials and why such a thing should exist in the first place. He explores the differences among newsreading generations and explains what Mic has learned from four years of scaling from a few hundred viewers to tens of millions. Plus: Why there's no silver bullet for social media success. Learn more about your ad choices. Visit podcastchoices.com/adchoices

14 Tammi 201628min

Recode Decode: Trae Vassallo and Michele Madansky, Co-Authors, "The Elephant in the Valley"

Recode Decode: Trae Vassallo and Michele Madansky, Co-Authors, "The Elephant in the Valley"

Former Kleiner Perkins Caufield & Byers partner Trae Vassallo and former Yahoo exec Michele Madansky sit down with Kara Swisher to talk about "The Elephant in the Valley," their new report on gender bias and harassment in tech. The report examines the different facets of sexism through both data and anecdotes from hundreds of women. Later on: Lauren Goode and Kara Swisher are launching a new podcast! Learn more about your ad choices. Visit podcastchoices.com/adchoices

11 Tammi 201643min

Recode Decode: Albert Wenger, Union Square Ventures Partner

Recode Decode: Albert Wenger, Union Square Ventures Partner

Union Square Ventures partner Albert Wenger talks with Peter Kafka about being an investor at a time of bubble anxiety and political debate about the trade-off between privacy and security. He argues that tech companies and the government should work together, and also discusses the growing class of mission-driven "benefit corporations." Learn more about your ad choices. Visit podcastchoices.com/adchoices

7 Tammi 201635min

Recode Decode: Happy Re/New Year 2016; CES Preview

Recode Decode: Happy Re/New Year 2016; CES Preview

It's an all-star lineup of reporters from Re/code and The Verge in this special episode, featuring Kara Swisher, Lauren Goode, Casey Newton and Noah Kulwin. The team discusses the top tech stories of 2015, including online harassment, Google's restructuring and the wearable revolution that wasn't. Then, they preview CES 2016 and reflect on whether the annual trade show is still relevant. Learn more about your ad choices. Visit podcastchoices.com/adchoices

4 Tammi 201650min

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