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

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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.

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Recent Editions

Art by Mike Sullivan/Shutterstock

Inside SpaceX’s Lucrative New Government Satellite Program

By Becky Peterson · Dec 9, 2022 6:00am PST

Every two hours or so, a satellite that SpaceX built for the Department of Defense circles Earth. The exact purpose of the satellite isn’t clear: The project is confidential. But its significance for SpaceX, the rocket company founded and led by Elon Musk, is coming into focus. That satellite is part of Starshield, a business SpaceX... Every two hours or so, a satellite that SpaceX built for the Department of Defense circles Earth....

Photo by Bloomberg

The FTC is Fighting All the Wrong Fights

By Jessica Lessin · Dec 8, 2022 5:00pm PST · 2 comments

The Federal Trade Commission made headlines today, suing to block Microsoft’s $69 billion dollar deal for Activision, which makes some of the most popular videogames in the world. I’m a big fan of federal regulators paying closer attention to tech companies’ hidden power, especially how they use customer data. But the FTC should just let this... The Federal Trade Commission made headlines today, suing to block Microsoft’s $69 billion dollar...

Photo from Bloomberg

Creator Economy

Twitter’s Apple Workaround Could Inspire Copycats

By Mahira Dayal · Dec 8, 2022 4:37pm PST · 1 comment

Jellysmack, a startup that provides the technology for creators to post their videos across social media platforms, has laid off 55 people, The Information is the first to report. The layoffs were conducted across the company, which employs just under 1,000 people. Jellysmack, a startup that provides the technology for creators to post their videos across...

Photo by Bloomberg.

Walmart Plans to Offer Buy Now, Pay Later Loans Through its Fintech Venture

By Ann Gehan · Dec 8, 2022 2:47pm PST

Photo by Bloomberg.

Walmart Plans to Offer Buy Now, Pay Later Loans Through its Fintech Venture

By Ann Gehan · Dec 8, 2022 2:47pm PST

The ambitious fintech venture backed by Walmart is planning to launch buy now, pay later loans as soon as next year, three people familiar with the matter said. That could put the world’s largest retailer in competition with fintech lenders like Affirm and Klarna, as well as Apple, another consumer giant set to launch its own installment... The ambitious fintech venture backed by Walmart is planning to launch buy now, pay later loans as...

Union Square Ventures managing director Albert Wenger. Photo via Getty Images

How Union Square Ventures Knew Venture Capital Had Peaked

By Kate Clark · Dec 8, 2022 11:30am PST

Union Square Ventures managing partner Albert Wenger, 55, has been meaning to write a blog post about Tesla’s self-driving technology, he tells me about half hour into our interview at the firm’s New York headquarters last week. Sitting between two framed NFTs, he’s already covered the fall of FTX (“a setback”), the signs that venture capital... Union Square Ventures managing partner Albert Wenger, 55, has been meaning to write a blog post...

Albert Wenger of Union Square Ventures. Photo by Getty Images. Art by Shane Burke.

Union Square Ventures Doubles Down on Climate With $200 Million Fund

By Kate Clark · Dec 8, 2022 10:58am PST

Union Square Ventures, the venture capital firm known for its early stakes in Twitter, Coinbase and Etsy, has raised $200 million for its second fund focused on early investments in climate tech startups, managing partner Albert Wenger confirmed to The Information. The fund amounts to a doubling down on the sector for the New York firm, a sign... Union Square Ventures, the venture capital firm known for its early stakes in Twitter, Coinbase...

Elon Musk. Art via Getty Images/Shutterstock

Elon Musk Micromanages Twitter, as Subscription Push Nears

By Erin Woo · Dec 8, 2022 7:00am PST · 4 comments

Elon Musk is bringing new meaning to the term “hands-on management” in his overhaul of Twitter. In the weeks since he took control of the social media company, a period in which over two-thirds of its employees have departed through either resignations or firings, Musk has immersed himself in the projects he is most interested in. He... Elon Musk is bringing new meaning to the term “hands-on management” in his overhaul...

From left: Stewart Butterfield, Marc Benioff and Bret Taylor. Photos by Getty; Bloomberg.

How Slack’s Marriage to Salesforce Crumbled

By Kevin McLaughlin · Dec 8, 2022 6:00am PST · 2 comments

From left: Stewart Butterfield, Marc Benioff and Bret Taylor. Photos by Getty; Bloomberg.

How Slack’s Marriage to Salesforce Crumbled

By Kevin McLaughlin · Dec 8, 2022 6:00am PST · 2 comments

Two years ago, Salesforce co-founder and CEO Marc Benioff gushed about his software company’s $28 billion purchase of messaging app Slack, describing it as a “match made in heaven.” It was also the most expensive subscription software acquisition of all time, with Salesforce paying around 26 times Slack’s forward... Two years ago, Salesforce co-founder and CEO Marc Benioff gushed about his software...

Elon Musk. Photo by Bloomberg

Twitter to Change Blue Pricing After Apple Spat

By Erin Woo · Dec 7, 2022 6:30pm PST

Twitter has informed some employees that it plans to charge customers $11 a month if they subscribe to Twitter Blue through Twitter’s app for iPhones and $8 if they do so through the web, according to a person briefed on the plans. Twitter’s owner Elon Musk had previously said the company would charge $8 a month for a new version of... Twitter has informed some employees that it plans to charge customers $11 a month if they...

Orlando Bravo. Photo by Bloomberg.

Thoma Bravo’s Fundraising Suggests More Software Buyouts Are Coming

By Martin Peers · Dec 7, 2022 5:00pm PST

If you thought private equity was on a software spending spree this year, just wait until 2023. Thoma Bravo’s announcement today that it had finished raising money for buyout funds with $32.4 billion in capital commitments is a strong sign that more deals are on the way. This year alone, Thoma Bravo has completed the purchase of identity... If you thought private equity was on a software spending spree this year, just wait until 2023. ...

Instagram head Adam Mosseri. Photo: Bloomberg

Creator Economy

Instagram Cuts Incentives to Some Reels Creators

By Kaya Yurieff · Dec 7, 2022 4:10pm PST

I’m hearing that Instagram has again cut the amount of money some creators can earn from the Meta Platforms app’s bonus program to spur more short-form Reels. It’s the latest sign that the big social networks are quietly backing away the generous cash payouts they dangled to encourage creators to make content for their apps. One... I’m hearing that Instagram has again cut the amount of money some creators can earn from the Meta...

Robinhood CEO Vlad Tenev. Photo by Bloomberg.

Robinhood’s Crypto Trading Surges After FTX Meltdown—Boding Well for Coinbase

By Aidan Ryan · Dec 7, 2022 2:27pm PST

Robinhood CEO Vlad Tenev. Photo by Bloomberg.

Robinhood’s Crypto Trading Surges After FTX Meltdown—Boding Well for Coinbase

By Aidan Ryan · Dec 7, 2022 2:27pm PST

Signs are emerging that FTX’s dramatic collapse last month has benefited other major crypto trading platforms—at least in the short term. One example is stock and crypto trading app Robinhood, which reported November trading metrics on Wednesday. Most of the data it reported were similar to its October figures, with total funded accounts... Signs are emerging that FTX’s dramatic collapse last month has benefited other major crypto...

Abraham Shafi, CEO of IRL (left), and Masayoshi Son, CEO of Softbank.

SEC Probes Whether SoftBank-Backed Messaging App Misled Investors

By Mark Matousek and Amir Efrati · Dec 7, 2022 12:59pm PST · 2 comments

The Securities and Exchange Commission has been investigating whether SoftBank-backed messaging app IRL violated securities laws, including in the way the startup described its business performance during talks with investors, according to people with knowledge of the situation. The SEC investigation began after The Information reported in May... The Securities and Exchange Commission has been investigating whether SoftBank-backed messaging...

Art by Mike Sullivan.

The DeFi Conundrum: Why Crypto Exchanges Like Uniswap Are Struggling to Reach Critical Mass

By Akash Pasricha · Dec 7, 2022 11:07am PST · 1 comment

In theory, the implosion of FTX should be the biggest catalyst yet for the adoption of decentralized finance. In practice, it’s not so simple. Even Uniswap, the world’s largest decentralized exchange, still has a lot of work to do to get big traders to use its service. The crypto startup, which raised $165 million in October at a... In theory, the implosion of FTX should be the biggest catalyst yet for the adoption of...

Art via Shutterstock.

TikTok Pushes Social Features as Growth Cools

By Kaya Yurieff and Sylvia Varnham O'Regan · Dec 7, 2022 6:00am PST

For the past year or so, Meta Platforms has been fiddling with its Instagram app to make it look more like TikTok, the short-video juggernaut that has been siphoning away its audience. Lately, though, TikTok has started borrowing a few social media tricks from the likes of Meta’s Instagram and upstart photo-sharing app BeReal. One of the... For the past year or so, Meta Platforms has been fiddling with its Instagram app to make it look...

Crypto and AI-Focused Sequoia Partner Is Leaving the Firm

By Aidan Ryan · Dec 6, 2022 5:15pm PST · 6 comments

Crypto and AI-Focused Sequoia Partner Is Leaving the Firm

By Aidan Ryan · Dec 6, 2022 5:15pm PST · 6 comments

Sequoia Capital partner Divya Gupta is leaving the firm just weeks after the storied venture capital firm apologized to limited partners about its $214 million investment in the now-bankrupt crypto exchange FTX. Gupta worked on seed- and early-stage investments in cryptocurrency and artificial intelligence at Sequoia, and has worked at the firm... Sequoia Capital partner Divya Gupta is leaving the firm just weeks after the storied venture...

Photo by Bloomberg.

Microsoft’s Growing Bet on Consumer Services Is Risky

By Jessica Lessin · Dec 6, 2022 5:00pm PST · 4 comments

Of the many troubles to hit the tech sector over the past year, the identity crises the largest tech giants are dealing with are perhaps the most commonly overlooked.From Meta to Microsoft, companies seem to be looking beyond their core business. That’s in part because investors are antsy for growth. But a bigger factor is because they have made... Of the many troubles to hit the tech sector over the past year, the identity crises the largest...

The Information reporters Kate Clark, Kaya Yurieff, Maria Heeter and Paris Martineau in portraits generated by Lensa AI.

Creator Economy

Lensa AI’s Avatars Return Startup Prisma to the Limelight

By Kaya Yurieff · Dec 6, 2022 2:54pm PST

My social media feeds are full of cartoon selfies of people, thanks to a new feature called Magic Avatars on Lensa AI, a photo and video editing app. Although the app is four years old, the new feature has made it a hit in the past week, with people forking over $8 for 50 different personalized avatars. The app was No. 1 for free apps on Apple... My social media feeds are full of cartoon selfies of people, thanks to a new feature called Magic...

Zhang Lei, chairman and chief executive officer of Hillhouse Capital Group. Photo by Bloomberg.

Chinese Investment Giant Hillhouse Capital Seeks to Expand Outside China

By Juro Osawa and Shai Oster · Dec 6, 2022 10:42am PST · 2 comments

Hillhouse Capital Group, the Chinese sprawling investment powerhouse that has drawn comparisons to Tiger Global Management, has a new challenge: growing outside China. The firm is best known for investments in Chinese tech giants such as Tencent, JD.com, Didi Global and TikTok owner ByteDance. But the devastation of China’s private equity... Hillhouse Capital Group, the Chinese sprawling investment powerhouse that has drawn comparisons...

Illustration by Josh Brill.

A Raise May Be Out of the Question, but You Do Have Other Options

By Niya Dragova · Dec 6, 2022 9:01am PST · 10 comments

Illustration by Josh Brill.

A Raise May Be Out of the Question, but You Do Have Other Options

By Niya Dragova · Dec 6, 2022 9:01am PST · 10 comments

Layoffs have swept through the tech industry (and more may be on the horizon), flooding the job market with qualified candidates—just like you—as even the large companies are fighting to stay afloat. It’s crazy how we can go from graciously accepting $200,000 “stock refreshers” to expressing gratitude simply for... Layoffs have swept through the tech industry (and more may be on the horizon), flooding the job...