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: Sunil Rajaraman

Recode Decode: Sunil Rajaraman

The Bold Italic CEO Sunil Rajaraman talks with Recode's Kara Swisher about "This Is Your Life in Silicon Valley," a series of satirical articles that went viral earlier this year. Rajaraman set out to shine a light on some harsh truths most techies won't discuss openly, and the surprise success of his pieces has him thinking about adapting them into a book. He also discusses starting and then being ousted as CEO of content marketing firm Scripted.com and how The Bold Italic is trying to preserve local journalism in San Francisco. Learn more about your ad choices. Visit podcastchoices.com/adchoices

21 Nov 201635min

 Recode Decode: Kayak co-founder Paul English

Recode Decode: Kayak co-founder Paul English

Tracy Kidder and Paul English, the author and subject of "A Truck Full of Money: One Man's Quest to Recover From Great Success," talk with Recode's Kara Swisher about English's dual life as a tech entrepreneur and philanthropist. English co-founded Kayak and, after selling it to Priceline, started another travel company called Lola. For Kidder, "Truck" is a return to tech several decades after his seminal book "The Soul of a New Machine." They discuss the challenges faced by entrepreneurs, the future of technologies like artificial intelligence and whether some forms of mental illness can be good for a tech CEO. Learn more about your ad choices. Visit podcastchoices.com/adchoices

14 Nov 201649min

Recode Decode: U.S. Chief Data Scientist DJ Patil

Recode Decode: U.S. Chief Data Scientist DJ Patil

DJ Patil, America's first Chief Data Scientist, talks about his nearly two years in the White House’s Office of Science and Technology Policy, working on initiatives around health care and policing. Patil grew up in Silicon Valley, and has worked at Skype, LinkedIn and eBay; he says that techies in the private sector should consider a "tour of duty" in the government to be one of their civic duties. He says opening up the vast amounts of data collected by government agencies can make everyone better-off — as long as personal data like health records can be properly secured. Learn more about your ad choices. Visit podcastchoices.com/adchoices

7 Nov 20161h 2min

 Recode Decode: How does tech fix its diversity problem?

Recode Decode: How does tech fix its diversity problem?

On this special bonus episode of Recode Decode, we look back at our past guests' most insightful comments about diversity in tech and media. Interviewees including Chamath Palihapitiya, Samantha Bee and Dick Costolo explain why discrimination based on sex, age and ethnicity are so common, and what might be done to fix the problem. You can find the full interviews excerpted in this show at Recode.net/Podcasts or in the podcast feeds for Recode Decode and Recode Media. Learn more about your ad choices. Visit podcastchoices.com/adchoices

2 Nov 201644min

Recode Decode: Dennis Crowley and Jeff Glueck, co-founder and CEO, Foursquare

Recode Decode: Dennis Crowley and Jeff Glueck, co-founder and CEO, Foursquare

Foursquare co-founder Dennis Crowley and CEO Jeff Glueck talk with Recode's Kara Swisher about how the location intelligence company is generating sellable data for partners like Apple, Uber and Twitter based on its users' check-ins. Glueck, who took over as CEO for Crowley in January 2015, compares the company's new business model to "Robin Hood" because it simultaneously helps small businesses and charges the big ones. The two also discuss where they'd like to see location tech go, including the idea of a talking virtual assistant — similar to Scarlett Johansson's character Samantha from the movie "Her" — that speaks to you like a friend and recommends new places to go. Learn more about your ad choices. Visit podcastchoices.com/adchoices

31 Okt 201649min

Recode Decode: Ted Leonsis, Founder, Revolution Growth

Recode Decode: Ted Leonsis, Founder, Revolution Growth

Revolution Growth founder and partner Ted Leonsis talks with Recode's Kara Swisher about being a longtime executive at AOL and how the company changed dramatically when it merged with Time Warner in 2000. Leonsis says AOL correctly anticipated the social nature of the internet, but left several windows open for Google to beat it at its own game. After the merger, it had to turn its energies toward defending Time Warner's legacy businesses and missed still more opportunities. He also discusses his majority ownership of several sports teams, including the NBA's Washington Wizards and the NHL's Washington Capitals, and why he thinks Vice's cable channel Viceland is "the biggest con ever." Learn more about your ad choices. Visit podcastchoices.com/adchoices

26 Okt 20161h 1min

Recode Decode: 'Mr. Robot' creator Sam Esmail

Recode Decode: 'Mr. Robot' creator Sam Esmail

"Mr. Robot" creator Sam Esmail talks with Recode's Kara Swisher about his hit TV show, whose star Rami Malek recently won an Emmy for Outstanding Lead Actor in a drama. Esmail says he grew up loving both movies and technology, and was disappointed by Hollywood's seeming inability to portray hackers in TV shows and movies authentically. The secret to the success of 'Mr. Robot,' he says, is that he's more interested in the complex humanity of both the characters and the people who make technology, rather than the tech itself. He also discusses how platforms like Netflix and Amazon have shaped his line of work and explains why he's interested in working in several mediums, such as video games and virtual reality, simultaneously. Learn more about your ad choices. Visit podcastchoices.com/adchoices

24 Okt 201649min

Recode Decode: Secretary of Commerce Penny Pritzker

Recode Decode: Secretary of Commerce Penny Pritzker

U.S. Secretary of Commerce Penny Pritzker talks with Recode's Kara Swisher about cooperation between government and the tech industry and the new challenges of the digital economy. Secretary Pritzker says artificial intelligence will upend many jobs, but the solution is to focus on retraining workers for new industries like cybersecurity, where American companies have hundreds of thousands of open positions. She also explains the recent battle over the Commerce Department's oversight of the internet and why handing over that oversight to the international nonprofit ICANN was the best way to protect the open web. Learn more about your ad choices. Visit podcastchoices.com/adchoices

19 Okt 201637min

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