The Briefing by Martin Peers, Jessica Lessin and the team at The Information

Five times/week

The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

By providing your email, you agree to The Information’s Privacy Policy

Recent Editions

So Your Startup Died. What Do You Do With All That Swag?

By Cory Weinberg · Jun 18, 2022 7:00am PDT · 5 comments

Megan Auringer started as a project manager at construction startup Katerra in January 2018, the same month it announced an $865 million fundraising round led by SoftBank’s Vision Fund, the world’s largest private tech investor. Over the next few years, the company kept collecting checks from venture capitalists, while Auringer collected free... Megan Auringer started as a project manager at construction startup Katerra in January 2018, the...

TikTok CEO Shouzi Chew. Photo by Bloomberg.

TikTok’s Oracle News Recalls Trump’s War on the App

By Martin Peers · Jun 17, 2022 5:00pm PDT

Talk about déjà vu! TikTok’s blog post today declaring that all of its U.S. user data is now on Oracle cloud servers in the U.S. took us back in time, to the summer of 2020, when the big story in tech business was Trump’s war on TikTok. Trump’s threats to ban TikTok—over concerns about the security of U.S. user data—didn’t pan out, of course.... Talk about déjà vu! TikTok’s blog post today declaring that all of its U.S. user data is now on...

Art by Clark Miller.

How Canned Iced Tea Became a Viral Crypto Project

By Margaux MacColl · Jun 17, 2022 2:00pm PDT

When the value of the terra stablecoin started to plummet last month, things looked grim for the crypto market. Artists Brian Moore, Mike Lacher and Chris Baker decided to create a stablecoin whose value would never waver. The three of them, who are collectively known as Mossy, created a stablecoin pegged to AriZona Iced Tea, the sugary beverage... When the value of the terra stablecoin started to plummet last month, things looked grim for the...

Art by Clark Miller.

San Francisco Is Back. Sort of. Maybe.

By Kate Clark · Jun 17, 2022 12:00pm PDT · 16 comments

Art by Clark Miller.

San Francisco Is Back. Sort of. Maybe.

By Kate Clark · Jun 17, 2022 12:00pm PDT · 16 comments

Earlier this month, hundreds of Bay Area techies swarmed 5A5 Steak Lounge, a private dining venue blocks from San Francisco’s Ferry Building where patrons feast on Wagyu beef and sip $16 Japanese whisky cocktails. They were there for a spring party put on by Modernist, a members-only club in San Francisco tailored to the tech elite. There was an... Earlier this month, hundreds of Bay Area techies swarmed 5A5 Steak Lounge, a private dining venue...

Art by Laurent Hrybyk.

Welcome to the E-Commerce Winter

By Mark Di Stefano and Malique Morris · Jun 17, 2022 6:02am PDT · 3 comments

Every tech downturn has a locus of weakness—the companies that fall first and spread the carnage. But few in Silicon Valley thought retail and payments companies would be among the biggest victims. The implosion in public tech-driven retail and payments companies has been breathtaking—with investors losing tens of billions of... Every tech downturn has a locus of weakness—the companies that fall first and spread the...

Elon Musk. Photo by Bloomberg.

Musk’s Q&A Glossed Over the Key Question About Twitter Buyout

By Martin Peers · Jun 16, 2022 5:00pm PDT

Elon Musk’s question-and-answer session with Twitter employees today should have been good news for shareholders. After all his bluster about spambots, the fact that Musk was willing to spend an hour or so answering questions from employees suggests that he intends to go through with the acquisition. And yet afterward, Twitter shares remained... Elon Musk’s question-and-answer session with Twitter employees today should have been good news...

Maitree Mervana Parekh, a principal at Acrew Capital. Photo: Maitree Mervana Parekh

Creator Economy

TikTok’s Rising Venture Capitalists; Yanked Brand Deals; Viral Entomology

By Kaya Yurieff · Jun 16, 2022 3:30pm PDT

Some venture capital firms are experimenting with TikTok as a marketing tool to reach people in their mid-20s. Maitree Mervana Parekh, 29, a principal at Acrew Capital, sees it differently: As a way to portray her interests outside work and experience what it means to be a creator, which she says gives her a deeper understanding of founders and... Some venture capital firms are experimenting with TikTok as a marketing tool to reach people in...

Illustration by Jesus Escudero.

Overvalued Tech SPAC Deals Face Looming Deadlines

By Maria Heeter · Jun 16, 2022 1:51pm PDT

Illustration by Jesus Escudero.

Overvalued Tech SPAC Deals Face Looming Deadlines

By Maria Heeter · Jun 16, 2022 1:51pm PDT

Tech companies that planned to go public via a merger with a special purpose acquisition company are facing a fork in the road: They can list now at valuations that look pricey next to comparable public stocks and run the risk of a steep sell-off after their market debuts. Or they can scrap their deals and shop for financing elsewhere—say,... Tech companies that planned to go public via a merger with a special purpose acquisition company...

Shutterstock.

Partner Content

Event Recap: Why Creators Should Tap the Metaverse

By The Information Staff · Jun 16, 2022 12:43pm PDT · 1 comment

Poised to reshape the world, the metaverse is science fiction turned reality. As the seismic shift takes place, understanding the relationship between consumers and online engagement may help companies break through. The Creator Economy Summit on May 25th assembled executives to talk shop. One session—New Frontiers: Creators and the... Poised to reshape the world, the metaverse is science fiction turned reality. As the seismic...

Art by Mike Sullivan

Musk Will Take Questions from Twitter Employees—Twitter Should Answer His

By Andrea Stroppa · Jun 16, 2022 8:00am PDT · 7 comments

Roughly 2,000 years ago, Roman philosopher Lucius Annaeus Seneca wrote to his friend Licinio, “Growth is slow, but ruin is fast.” Twitter has grown a lot in its 16 years, with 229 million active daily users and an oversize footprint in the political debate. But the company risks losing the trust of users and investors if it... Roughly 2,000 years ago, Roman philosopher Lucius Annaeus Seneca wrote to his friend Licinio,...

Databricks Chief People Officer Amy Reichanadter.

Q&A

Databricks Pushes Ahead With Hiring Spree to Add 2,500 Workers This Year

By Mark Matousek · Jun 16, 2022 6:08am PDT · 2 comments

Layoffs and hiring freezes are sweeping across Silicon Valley, but Databricks is still recruiting heavily. The data management company, most recently valued at $38 billion last August, is aiming to end the year with 5,500 employees, up from 3,000 at the start of 2022, Databricks Chief People Officer Amy Reichanadter said in an interview with The... Layoffs and hiring freezes are sweeping across Silicon Valley, but Databricks is still recruiting...

Fed chairman Jerome Powell.

As Era of Cheap Money Ends, Fast Deliveries Dry Up

By Martin Peers · Jun 15, 2022 5:00pm PDT

Fed chairman Jerome Powell.

As Era of Cheap Money Ends, Fast Deliveries Dry Up

By Martin Peers · Jun 15, 2022 5:00pm PDT

As the era of cheap money comes to a close, tech’s couch potato era also appears to be ending. It seems fitting that on the day the Fed unveiled another hike in interest rates, fast-delivery startup Jokr said it was ending its operations in the U.S. If ever there was a business that relied on easy availability of money, it would be the crop... As the era of cheap money comes to a close, tech’s couch potato era also appears to be ending. It...

Art by Mike Sullivan

Creator Economy

YouTube Says 1.5 Billion People Watch Shorts; Twitch Ramps Up Ad-Share

By Mahira Dayal · Jun 15, 2022 2:57pm PDT

YouTube on Wednesday released new statistics on the growth in Shorts, the short-form video feature it launched to rival TikTok: More than 1.5 billion people who log into YouTube every month watch Shorts. On its surface, that statistic is impressive. It’s 50% more than the 1 billion monthly users TikTok reported in September. And it's 75% of... YouTube on Wednesday released new statistics on the growth in Shorts, the short-form video...

Celsius CEO Alex Mashinsky. Photo by Bloomberg. Art by Mike Sullivan.

What the Celsius Freeze Could Mean for Crypto; Recapping Coinbase’s Turbulent Month

By Aidan Ryan · Jun 15, 2022 2:44pm PDT

As crypto prices continue to plunge, all eyes are on big crypto investors and the lenders that helped speculative investors juice their bets. Trouble in recent days at crypto lender Celsius and crypto hedge fund Three Arrows Capital has placed the industry on edge just weeks after the implosion of the algorithmic stablecoin TerraUSD—in turn... As crypto prices continue to plunge, all eyes are on big crypto investors and the lenders that...

From left, DataRobot executives Tom Levey, Dan Wright (CEO) and Damon Fletcher (CFO). Art by Mike Sullivan

As DataRobot Struggled, Executives Sold Private Shares at Peak Valuation

By Kevin McLaughlin · Jun 15, 2022 6:00am PDT · 3 comments

Last year, five top executives at artificial intelligence software startup DataRobot collectively sold $32 million worth of shares to investors, according to confidential documents outlining the sales. The sales occurred after the company was privately valued at $6.3 billion in a funding round. The other 1,200 or so employees, some of whom had... Last year, five top executives at artificial intelligence software startup DataRobot collectively...

Coinbase CEO Brian Armstrong. Photo by Bloomberg.

The Questions Raised by Coinbase's Job Cuts

By Martin Peers · Jun 14, 2022 5:00pm PDT

Coinbase CEO Brian Armstrong. Photo by Bloomberg.

The Questions Raised by Coinbase's Job Cuts

By Martin Peers · Jun 14, 2022 5:00pm PDT

How quickly we’ve switched from companies “slowing hiring” to mass layoffs. Coinbase wasn’t the only company from the broadly defined tech sector to institute job cuts today (see below). But the crypto exchange’s decision on Tuesday to slash its workforce by 18% was the most clearly symbolic of how fast the environment has changed, in crypto and... How quickly we’ve switched from companies “slowing hiring” to mass layoffs. Coinbase wasn’t the...

Kim Nortman, co-founder and CEO of Tellie. Credit: Kim Nortman

Creator Economy

Startup Tellie to Test Whether Creator NFTs Can Withstand a Crypto Winter

By Mahira Dayal · Jun 14, 2022 4:07pm PDT

Cryptocurrencies and crypto companies are in a tailspin. On Tuesday, crypto exchange Coinbase laid off 18% of its staff, CEO Brian Armstrong suggested we’re headed for a “crypto winter,” and the price of bitcoin fell to more than 50% from its peak. The violent reversal from the crypto euphoria experienced just a few months ago poses a big test... Cryptocurrencies and crypto companies are in a tailspin. On Tuesday, crypto exchange Coinbase...

The separator that QuantumScape claims prevents dendrites. Photo: QuantumScape

The Electric: An Executive Departure Rocks a Highly Touted Battery Maker

By Steve LeVine · Jun 14, 2022 3:37pm PDT

For almost two years, QuantumScape, a prominent U.S. next-generation battery company, has counseled investors to be patient while it builds factories to manufacture lithium-metal batteries that would increase electric vehicle range by up to 50%. By 2024 or 2025, it said, its batteries will be ready to power electric automobiles made by... For almost two years, QuantumScape, a prominent U.S. next-generation battery company, has...

Warner Bros. Discovery CEO David Zaslav. Photo by Bloomberg.

Warner Bros Discovery to Cut as Much as 30% of Advertising Sales Force

By Jessica Toonkel · Jun 14, 2022 12:54pm PDT

Warner Bros. Discovery will this week offer buyouts to members of its U.S. ad sales team, as part of a plan to shrink the global sales force by as much as 30%, according to people familiar with the situation. The buyouts are one of the first big cost-cutting steps taken since the formation of the company from Discovery’s acquisition of... Warner Bros. Discovery will this week offer buyouts to members of its U.S. ad sales team, as part...

Netflix co-CEO Reed Hastings. Photo by Bloomberg.

Netflix Talks With Roku, Comcast About Getting Help on Ad Sales, Ad Tech

By Jessica Toonkel · Jun 14, 2022 6:00am PDT

Netflix co-CEO Reed Hastings. Photo by Bloomberg.

Netflix Talks With Roku, Comcast About Getting Help on Ad Sales, Ad Tech

By Jessica Toonkel · Jun 14, 2022 6:00am PDT

To jump into advertising, Netflix is getting a little help from its rivals. Executives from the streaming giant in recent weeks have met with representatives of both Roku and Comcast to discuss arrangements under which those companies would handle either the ad sales or the technical infrastructure for Netflix’s forthcoming ad-supported... To jump into advertising, Netflix is getting a little help from its rivals. Executives from the...