In a sprawling discussion on the a16z podcast, investor and author Balaji Srinivasan argued that the bitter conflict between Silicon Valley and legacy media is not fundamentally ideological, but economic. The collapse of the newspaper business model, he contends, created a desperate institution that was easily captured by political incentives, leading it to wage war on the very industry that disrupted it. It wasn't "go woke, go broke," Srinivasan explained, but rather, "go broke, *then* go woke."
Speaking with a16z General Partner Erik Torenberg, Srinivasan laid out his framework for understanding the media landscape, the rise of creator-led content, and the urgent need for a new, cryptographically verifiable truth infrastructure. The conversation diagnosed the root cause of the media’s hostility toward tech, tracing it back to the cratering of advertising revenue around the 2008 financial crisis—the precise moment Google and Facebook’s revenue curves went vertical. This financial gutting, Srinivasan posits, transformed journalism from a profitable business into a subsidized one, making it dependent on patrons and political agendas rather than reader value.
This desperation created a power vacuum. Legacy media filled it not with innovation, but with ideology.
The core of the conflict, according to Srinivasan, can be understood through his “State vs. Network” framework. The “State” represents legacy, top-down institutions that seek control and maintain the status quo, while the “Network” represents decentralized, bottom-up forces that build new things. In this model, legacy media has become a state-aligned actor, focused on exerting control, whereas the tech industry is fundamentally about creation. He captured this stark difference in worldviews with a powerful contrast: “For them, the best thing they can do is to put a man out of work. And for us, the best thing we can do is we can put a man on the moon.”
This fundamental misalignment of purpose—control versus creation—is why “going direct” is no longer an optional strategy for founders and technologists. Relying on legacy media as an intermediary is to subject oneself to an entity whose business model may now depend on portraying you as a villain. Srinivasan argues that legacy journalism, having lost its economic power, now wields its remaining influence as a weapon. He quotes an article from the Columbia Journalism Review, stating that “journalism, particularly at the highest level, is about raw power.”
For founders and investors navigating this landscape, the message is clear: the media is not a neutral referee. The battle for narrative control is a direct consequence of a tectonic shift in economic power. Understanding this history is the first step toward building a new infrastructure for information, one based not on institutional authority but on verifiable truth.
