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

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Recent Editions

How Subscription Take Rates Compare; Interview With a TikTok Baker

Creator Economy

How Subscription Take Rates Compare; Interview With a TikTok Baker

By Mahira Dayal · Jan 27, 2022 5:10pm PST

Some companies, like Substack and Patreon, earn revenue by taking a cut of subscriptions, the monthly recurring fees that followers pay to access creators’ content. Other social media companies have caught on and realized that subscriptions are a way to expand creators’—and the platforms’—revenues. Our latest chart shows how different... Some companies, like Substack and Patreon, earn revenue by taking a cut of subscriptions, the...

Photo by AP. Art by Mike Sullivan.

Robinhood to Take Crypto International; Meta’s Diem Dreams End in Fire Sale

By Hannah Miller · Jan 27, 2022 4:09pm PST

The end of 2021 didn’t bode well for Robinhood. The company reported its fourth-quarter financial results on Thursday, posting a loss of $423 million for the quarter, compared with net income of $13 million for the same period last year. Monthly active users on the trading platform also fell to 17.3 million in the fourth quarter, down from 18.9... The end of 2021 didn’t bode well for Robinhood. The company reported its fourth-quarter financial...

A look at the forward-facing cameras in Magic Leap's new AR headset. Credit: Magic Leap.

New Details on the Magic Leap 2; Twitter Says Goodbye to Oculus

By Mathew Olson · Jan 27, 2022 11:10am PST

Earlier this week, Magic Leap disclosed some new information about its upcoming headset at a conference held by the International Society for Optics and Photonics. In particular, Magic Leap detailed plans for the Magic Leap 2’s controller and operating system that make the device sound promising.While pivoting to enterprise AR to and reset its... Earlier this week, Magic Leap disclosed some new information about its upcoming headset at a...

Chinese premier Xi Jinping marks the centenary of the Chinese Community Party, July 1, 2021. Photo by Bloomberg

Top China VC Seeks U.S. Investors for $1.5 Billion Fund, Bucking Political Headwinds

By Juro Osawa · Jan 27, 2022 10:45am PST · 2 comments

Chinese premier Xi Jinping marks the centenary of the Chinese Community Party, July 1, 2021. Photo by Bloomberg

Top China VC Seeks U.S. Investors for $1.5 Billion Fund, Bucking Political Headwinds

By Juro Osawa · Jan 27, 2022 10:45am PST · 2 comments

Matrix Partners China, one of the most prolific early-stage venture capitalists in China, is looking to raise at least $1.5 billion, mainly from U.S. institutional investors, for its biggest-ever fund, according to people with knowledge of the matter. If successful, it would become one of the largest pools of money dedicated to young startups... Matrix Partners China, one of the most prolific early-stage venture capitalists in China, is...

Zoom CEO Eric Yuan. Photo by Bloomberg.

Zoom, Palo Alto Networks, ServiceNow Stocks Deserve More Respect

By Martin Peers · Jan 27, 2022 9:03am PST · 1 comment

Talk about a descent to earth. Zoom Video, the rocket ship of the pandemic, has turned into a modern-day blimp in the stock sell-off of the past 12 months. Its stock has dropped 75% from the highs set in the fall of 2020 to Wednesday’s close of $140.33 as investors abandoned high-growth stocks. But Zoom has fallen too far. In a rising... Talk about a descent to earth. Zoom Video, the rocket ship of the pandemic, has turned into a...

Photos by AP; Bloomberg

M&A Watch: 8 Potential Targets as Tech Stocks Sink

By Aidan Ryan · Jan 27, 2022 6:00am PST · 2 comments

A sharp sell-off in tech stocks over the past few months has caused investors a lot of pain—but could be the trigger for more mergers. A drop in valuations could make companies more attractive to buyers, said Barry O’Brien, co–chief operating officer of global tech, media and telecom investment banking at Goldman Sachs.... A sharp sell-off in tech stocks over the past few months has caused investors a lot of...

Photo by AP.

Tiger Global, Alkeon Slash Startup Valuations Amid Public Stock Selloff

By Berber Jin and Kate Clark · Jan 26, 2022 6:28pm PST · 5 comments

For more than a year, startup founders have watched in awe and some trepidation as hedge funds and other large investors flooded private startups with big checks, pushing up valuations and making it easier than ever to raise money. Those freewheeling days may be numbered as a sell-off in public tech stocks bleeds into the startup world. Among... For more than a year, startup founders have watched in awe and some trepidation as hedge funds...

Neil Young. Photo by Bloomberg.

What Neil Young’s Protest Means to Spotify

By Martin Peers · Jan 26, 2022 5:00pm PST · 2 comments

Neil Young. Photo by Bloomberg.

What Neil Young’s Protest Means to Spotify

By Martin Peers · Jan 26, 2022 5:00pm PST · 2 comments

You can be a huge fan of Neil Young (guilty!) but still acknowledge that his decision to pull his music off Spotify, in a protest over its hosting of Joe Rogan, probably won’t cause millions of people to cancel their Spotify accounts. Yes, Spotify subscribers could switch to Apple. Given the likely age of the 76-year-old rocker’s typical fan,... You can be a huge fan of Neil Young (guilty!) but still acknowledge that his decision to pull his...

David Yovanno, CEO of Impact. Credit: Impact

Creator Economy

Influencer Startup Impact Plans IPO Filing for Third Quarter

By Mahira Dayal · Jan 26, 2022 4:16pm PST

For some creator economy startups whose growth took off during the pandemic, the prospect of going public is now a reality. But one of the most turbulent stock markets in two years could muddy those plans. Impact, a provider of marketing software that last valued at $1.5 billion, aims to file confidentially to go public in the third quarter... For some creator economy startups whose growth took off during the pandemic, the prospect of...

Robinhood CEO Vlad Tenev. Photo by AP. Art by Mike Sullivan.

Robinhood Earnings Preview; Ripple Labs Boosts Valuation Amid SEC Lawsuit; Diem’s Potential Demise

By Hannah Miller · Jan 26, 2022 4:06pm PST

Robinhood will report fourth-quarter financial results on Thursday, only the third report it has issued since it went public in July. Eyes will be on the money the company earns from crypto trading. In the third quarter of 2021, Robinhood reported $51 million in revenue from crypto transactions, a 78% decline from the $233 million it made during... Robinhood will report fourth-quarter financial results on Thursday, only the third report it has...

Population: One, a Meta-owned VR game with many cosmetic options. Credit: BigBox VR/Meta.

Meta VP Tempers Gaming NFT Hype; Snap Upgrades Its AR Shopping

By Mathew Olson · Jan 26, 2022 11:00am PST

You have to hand it to Meta. While the company has talked up the potential of the metaverse, it hasn’t gone overboard with the potential riches of NFTs the way some in the NFT market have. Instead, Meta executives have stuck to talking about the potential of NFTs for small businesses and digital items like concert merchandise. On Tuesday,... You have to hand it to Meta. While the company has talked up the potential of the metaverse, it...

Art by Shutterstock; Mike Sullivan

Bitcoin Is Failing Its Original Mandate. That Doesn’t Mean It’s Worthless

By Eswar Prasad · Jan 26, 2022 9:00am PST · 12 comments

Art by Shutterstock; Mike Sullivan

Bitcoin Is Failing Its Original Mandate. That Doesn’t Mean It’s Worthless

By Eswar Prasad · Jan 26, 2022 9:00am PST · 12 comments

By plenty of standards, Bitcoin is a failure. Transactions on the Bitcoin blockchain take at least 10 minutes to process, which would make it cumbersome for day-to-day transactions if its wildly fluctuating price hadn’t already rendered it useless as a means of exchange. As the product of an algorithm with no inherent value or claim to a... By plenty of standards, Bitcoin is a failure. Transactions on the Bitcoin blockchain take at...

Snowflake CEO Frank Slootman (left) and Databricks CEO Ali Ghodsi. Photos by Snowflake, Bloomberg. Collage by Mike Sullivan

Snowflake vs. Databricks: How Onetime Friends Became Fierce Cloud Rivals

By Kevin McLaughlin · Jan 26, 2022 6:00am PST · 2 comments

A few years ago, Snowflake and Databricks were up-and-coming cloud software startups that were so friendly, their sales teams regularly passed customer leads to each other. Both companies made unglamorous but critical components for businesses—from Shell Oil to DoorDash—that helped them boost sales or reduce costs by making better... A few years ago, Snowflake and Databricks were up-and-coming cloud software startups that were so...

YouTube CEO Susan Wojcicki. Photo by Bloomberg. Art by Mike Sullivan.

YouTube Explores NFTs for Creators; Recur Sells NFTs From Big Brands

By Hannah Miller · Jan 25, 2022 5:10pm PST

YouTube is the latest social media giant exploring ways to integrate non-fungible tokens (NFTs). The details are vague, but Susan Wojcicki, CEO of the video platform, said in a blog post on Tuesday that the platform is looking ahead at ways it can help YouTube creators take advantage of the increasingly popular digital collectibles.On the... YouTube is the latest social media giant exploring ways to integrate non-fungible tokens (NFTs)....

Pinterest CEO Ben Silbermann. Photo by Bloomberg.

What Pinterest and Peloton Have in Common

By Martin Peers · Jan 25, 2022 5:00pm PST

Here’s a thought experiment: How would Pinterest or Peloton be doing today if they weren’t controlled by their co-founders? Both companies appear to be in disarray—Pinterest is losing users and lately a string of executives, as The Information scooped today. Peloton’s challenges…well, let’s just say they’ve been well chronicled. Both companies... Here’s a thought experiment: How would Pinterest or Peloton be doing today if they weren’t...

Koji co-founders Dmitry Shapiro (left) and Sean Thielen. Photo: Koji

Koji, the Creator Economy’s App Store, Raises $20 Million from Jump Capital

By Kaya Yurieff · Jan 25, 2022 3:04pm PST

Koji co-founders Dmitry Shapiro (left) and Sean Thielen. Photo: Koji

Creator Economy

Koji, the Creator Economy’s App Store, Raises $20 Million from Jump Capital

By Kaya Yurieff · Jan 25, 2022 3:04pm PST

Koji, a startup that hosts a virtual store for apps used by creators, has raised $20 million in Series B funding led by Jump Capital. New investors include HBSE Ventures and Electric Feel Ventures, a venture firm set up by one of rapper Post Malone’s managers. The San Diego-based startup offers what’s known as link-in-bio web pages for... Koji, a startup that hosts a virtual store for apps used by creators, has raised $20 million in...

Workers in an Amazon fulfillment center in Robbinsville, New Jersey, last November. Photo by Bloomberg

Amazon Pauses ‘Pay to Quit’ Offers for Warehouse Workers

By Paris Martineau and Mark Di Stefano · Jan 25, 2022 2:02pm PST · 1 comment

Faced with an increasingly tight labor market, Amazon has quietly paused a longstanding program through which it paid warehouse workers up to $5,000 to quit their jobs after the busy peak season, The Information has learned. Amazon instituted the program—known inside the company as Pay to Quit or simply The Offer—in 2014 to help the... Faced with an increasingly tight labor market, Amazon has quietly paused a longstanding program...

Ready Player Me avatars sporting New Year's outfits. Credit: Wolf3D/Ready Player Me.

Why Wolf3D Went All-In on Avatars With Ready Player Me

By Mathew Olson · Jan 25, 2022 11:03am PST

Everyone will need an avatar (at least one) in the metaverse, or so the thinking goes. That’s probably one of the few things that the tech giants, startups and non-profit groups driving toward its creation can agree upon. But while making convincing digital humans is one notoriously hard problem, building customizable avatars that can move from... Everyone will need an avatar (at least one) in the metaverse, or so the thinking goes. That’s...

Pinterest headquarters office in San Francisco. Photo by Bloomberg

Pinterest Has Lost at Least 7 Senior Execs in Recent Weeks

By Jessica Toonkel and Sahil Patel · Jan 25, 2022 6:00am PST · 1 comment

Pinterest has lost at least seven senior executives in roles ranging from creator marketing to corporate development in recent weeks as the online scrapbooking app grapples with a drop in U.S. users and slowing ad revenue growth. Among the executives leaving are Gary Johnson, Pinterest’s head of corporate development, and Omar Seyal, head... Pinterest has lost at least seven senior executives in roles ranging from creator marketing to...

Robinhood Hits New Low Amid Crypto Selloff; Lit Protocol Connects NFT Owners

Robinhood Hits New Low Amid Crypto Selloff; Lit Protocol Connects NFT Owners

By Akash Pasricha · Jan 24, 2022 5:10pm PST

Robinhood Hits New Low Amid Crypto Selloff; Lit Protocol Connects NFT Owners

Robinhood Hits New Low Amid Crypto Selloff; Lit Protocol Connects NFT Owners

By Akash Pasricha · Jan 24, 2022 5:10pm PST

Cryptocurrencies are down from their historic highs seen in November, as is Coinbase, the leading American cryptocurrency exchange by trading volume. But Robinhood, the company operating a popular retail trading platform for both stocks and cryptocurrencies, has had the worst decline of the bunch. Bitcoin and ethereum are both down more... Cryptocurrencies are down from their historic highs seen in November, as is Coinbase, the leading...