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

Photo: Instagram

Creator Economy

Charting Instagram’s Obsession With Video; A Twist on Clubhouse From Mark Cuban

By Kaya Yurieff · Oct 5, 2021 2:01pm PDT

Instagram is taking a second whack at long-form video, as competition with two video-centric rivals, YouTube and TikTok, intensifies. On Tuesday, Instagram announced a new standalone app called Instagram TV, which includes videos and livestreams from creators. The app is a do-over of its bold attempt, launched in 2018, to take on YouTube... Instagram is taking a second whack at long-form video, as competition with two video-centric...

What Crackdown? VCs Keep Betting on China Even as Public Stocks Sink

By Juro Osawa and Shai Oster · Oct 5, 2021 11:52am PDT

It seems as if investors see two different versions of China. While publicly traded Chinese stocks flounder, venture capitalists keep pouring more money into Chinese startups. Even after the Chinese government’s regulatory crackdown wiped $1 trillion off the value of Chinese stocks this summer, there has been no sign of a slowdown for... It seems as if investors see two different versions of China. While publicly traded Chinese...

All of Facebook's services went down in Monday's outage, including its VR meeting app Workrooms. Credit: Facebook

Facebook’s Disappearance Illustrated Its Metaverse Achilles Heel

By Mathew Olson · Oct 5, 2021 11:00am PDT

If Mark Zuckerberg really wants to turn Facebook into a metaverse company, he needs to learn a lesson from Monday’s outage of Facebook services. Most obviously, Facebook should rethink its current approach of using Facebook accounts as a point-of-entry to all sorts of products—both internal and external.That arrangement is fundamentally at odds... If Mark Zuckerberg really wants to turn Facebook into a metaverse company, he needs to learn a...

Art by Mike Sullivan

Staff Exits Complicate FTC Chief Lina Khan’s Agenda

By Josh Sisco · Oct 5, 2021 6:01am PDT · 2 comments

Art by Mike Sullivan

Staff Exits Complicate FTC Chief Lina Khan’s Agenda

By Josh Sisco · Oct 5, 2021 6:01am PDT · 2 comments

WASHINGTON, DC—Passing bipartisan legislation to curb the dominance of big tech companies seems doomed in the current Congress. That’s what staffers on Capitol Hill, officials at federal antitrust agencies, private lawyers and advocacy groups backing the various bills told me last week during a visit to Washington and New York. They... WASHINGTON, DC—Passing bipartisan legislation to curb the dominance of big tech companies...

Facebook's Silicon Valley headquarters. Photo by Bloomberg.

Facebook’s Outage and its Future

By Martin Peers · Oct 4, 2021 5:00pm PDT

Fixing the problems caused by Facebook turned out to be easier than everyone thought. Just turn off the site! Today’s global outage affecting all parts of Facebook seems an appropriate coda to the spate of news stories about Facebook’s negative impact on society in recent weeks. The New York Times opined that the recent spate of revelations in... Fixing the problems caused by Facebook turned out to be easier than everyone thought. Just turn...

ConsenSys Founder and CEO Joseph Lubin. Photo by Bloomberg.

Ethereum Co-founder Dishes on Solana; BofA Publishes a Crypto Creed

By Hannah Miller · Oct 4, 2021 4:01pm PDT

My colleague Kate Clark and I broke the news today that Sky Mavis, developer of the non-fungible token game Axie Infinity, raised about $150 million at a valuation near $3 billion in a Series B round led by Andreessen Horowitz. The firm has now backed two of the biggest names in blockchain gaming, having also invested in startup Yield Guild... My colleague Kate Clark and I broke the news today that Sky Mavis, developer of the non-fungible...

Photo: Encantos

Creator Economy

Education Startup Encantos Takes on YouTube Kids; Why Facebook’s Outage Is a Wake-Up Call for Influencers

By Kaya Yurieff · Oct 4, 2021 2:14pm PDT

Most people probably don’t think of school teachers as creators. But the edtech startup Encantos does and is rolling out a new product that lets them and other subject matter experts teach kids about topics such as Black history or life skills such as problem solving, CEO Steven Wolfe Pereira tells The Information. The new “storyteaching”... Most people probably don’t think of school teachers as creators. But the edtech startup Encantos...

Alex Mather. Photo by Erin Beach

The Athletic Burned Through $95 Million Between 2019 and 2020

By Jessica Toonkel · Oct 4, 2021 1:45pm PDT

Alex Mather. Photo by Erin Beach

The Athletic Burned Through $95 Million Between 2019 and 2020

By Jessica Toonkel · Oct 4, 2021 1:45pm PDT

Digital sports news firm The Athletic hemorrhaged nearly $100 million cash between 2019 and 2020, according to a presentation prepared for investors, exceeding the $73 million in revenue the company brought in over that same period. The heavy losses reflect primarily the cost of building up a 600-person–strong reporting staff to cover... Digital sports news firm The Athletic hemorrhaged nearly $100 million cash between 2019 and 2020,...

Art from the Axie Infinity NFT game. Photo: Axie Infinity

Andreessen Horowitz Values Developer of NFT Game Axie Infinity at $3 Billion

By Kate Clark and Hannah Miller · Oct 4, 2021 1:19pm PDT · 2 comments

Sky Mavis, the developer of the popular crypto-based online game Axie Infinity, is raising approximately $150 million in Series B funding at a valuation near $3 billion in a new round led by Andreessen Horowitz, according to two people with direct knowledge of the deal. The valuation for the three-year-old startup reflects the tremendous growth... Sky Mavis, the developer of the popular crypto-based online game Axie Infinity, is raising...

A VR design meeting in Project Hubble. Each room is a virtual testing space for AR apps. Credit: Unity

Inside Unity’s Project Hubble, a Different Spin on VR For Work

By Mathew Olson · Oct 4, 2021 11:00am PDT

If you want to get a sense of how digital design work could be transformed by AR and VR, look to Unity’s Project Hubble. The gaming engine’s XR design team, which has long been spread across several time zones, started using Hubble in VR for its weekly design review meetings when Covid hit. Hubble is a curious thing to experience as an... If you want to get a sense of how digital design work could be transformed by AR and VR, look to...

ConsenSys CEO Joseph Lubin. Photo by Bloomberg. Art by Mike Sullivan

Q&A

ConsenSys CEO Lubin: SEC Isn’t Hurting Crypto Innovation

By Hannah Miller · Oct 4, 2021 6:01am PDT · 1 comment

The crypto industry’s leaders and U.S. regulators have few kind words to say about each other these days. Coinbase CEO Brian Amstrong has slammed the Securities and Exchange Commission for “some really sketchy behavior.” SEC Chair Gary Gensler has likened the industry to the Wild West—or a casino. But Joseph Lubin, 57,... The crypto industry’s leaders and U.S. regulators have few kind words to say about each...

Chile's Atacama Desert, the source of a third of the world's lithium supply. Photo: Cristobal Olivares/Bloomberg

A Looming New Supply Shortage Threatens the EV Industry’s Hopes for the 2020s

By Steve LeVine · Oct 3, 2021 2:00pm PDT

Chile's Atacama Desert, the source of a third of the world's lithium supply. Photo: Cristobal Olivares/Bloomberg

A Looming New Supply Shortage Threatens the EV Industry’s Hopes for the 2020s

By Steve LeVine · Oct 3, 2021 2:00pm PDT

Welcome back to The Electric.A reminder to RSVP for the next Live Chat—Winning the EV Wars: The Establishment vs. The Upstarts. In the first subscriber-only event, I am delighted to present a conversation with Ford Motor's Darren Palmer. Palmer is general manager of Ford's electric vehicle program and a founding member of the company’s “Team... Welcome back to The Electric.A reminder to RSVP for the next Live Chat—Winning the EV Wars: The...

Facebook headquarters in Menlo Park, Calif. Photo by Bloomberg

Facebook Staff Demand Answers as Latest Crisis Hits

By Sylvia Varnham O'Regan · Oct 2, 2021 10:16am PDT · 6 comments

The mood on Monday at the meeting of Instagram managers with Adam Mosseri, head of the photo-sharing app, was subdued. Instagram had just announced that it would be shelving plans for a version of the app for children under 13, following a Wall Street Journal exposé about Instagram’s impact on teens. On the video call, the employees... The mood on Monday at the meeting of Instagram managers with Adam Mosseri, head of the...

Zillow co-founder and CEO Rich Barton. Photo by Bloomberg.

Zillow Throws Down Gauntlet to FTC

By Martin Peers · Oct 1, 2021 5:00pm PDT

Zillow Group isn’t typically counted in the list of big bad tech companies that deserve antitrust restraint, but it has become clear that, under Lina Khan, the Federal Trade Commission is casting a wide net for tech targets. As we reported on Thursday, Khan has reopened a review of Zillow’s $500 million purchase of ShowingTime, which schedules... Zillow Group isn’t typically counted in the list of big bad tech companies that deserve antitrust...

HR and Bill-Paying Startups Lead Software Growth Curve

By Kevin McLaughlin and Mahira Dayal · Oct 1, 2021 9:00am PDT

The pandemic triggered a boom in software firms selling tools to other businesses, most obviously videoconferencing and employee collaboration. But while that burst of new business is petering out for some companies now that people are starting to return to the office, most enterprise software firms are still seeing accelerating growth. An... The pandemic triggered a boom in software firms selling tools to other businesses, most obviously...

Instacart chief revenue officer and former Amazon ad sales executive Seth Dallaire in 2016. Photo by Bloomberg

Instacart Raids Another Tech Giant for Ad Talent: Amazon

By Mark Di Stefano and Sahil Patel · Oct 1, 2021 6:00am PDT

Instacart chief revenue officer and former Amazon ad sales executive Seth Dallaire in 2016. Photo by Bloomberg

Instacart Raids Another Tech Giant for Ad Talent: Amazon

By Mark Di Stefano and Sahil Patel · Oct 1, 2021 6:00am PDT

Much has been written about the “Facebookification” of Instacart, after the grocery-delivery firm recruited a string of top executives, including CEO Fidji Simo, from the social media giant. But another Instacart talent raid has been largely overlooked—one it conducted on Amazon, including the retailer’s advertising sales... Much has been written about the “Facebookification” of Instacart, after the...

Senator Marsha Blackburn at today's hearing. Photo by Bloomberg.

The Limits of Washington’s Facebook Theater

By Martin Peers · Sep 30, 2021 5:00pm PDT

There’s so much theater in the frequent congressional interrogation of tech executives nowadays that you could almost stage these hearings on Broadway. It certainly would be a long-running show, though one that plays to mostly empty seats given how boringly repetitive these hearings have become. That was demonstrated with today’s installment, as... There’s so much theater in the frequent congressional interrogation of tech executives nowadays...

Ledger’s new editor-in-chief, Ariel Wengroff. Photo: Ledger

Infrastructure Bill Is Back; Ledger Hires an Editor-in-Chief (Exclusive)

By Hannah Miller · Sep 30, 2021 4:07pm PDT

As TI Crypto Global went to press today, the crypto industry was waiting to see whether the bipartisan infrastructure bill would pass in the House of Representatives. The bill, which already passed in the Senate, contains new tax-reporting requirements for crypto businesses that critics have argued are impossible for some types of companies... As TI Crypto Global went to press today, the crypto industry was waiting to see whether the...

Deel co-founders Shuo Wang and Alex Bouaziz. Photo provided by Business Wire

Coatue Expected to Invest in Remote Hiring Startup Deel at $5.5 Billion Valuation

By Berber Jin and Kate Clark · Sep 30, 2021 3:37pm PDT · 1 comment

Deel, a startup that develops payroll tools to help companies hire remote workers internationally, is in discussions to raise a new round of funding at a valuation of $5.5 billion, said four people with direct knowledge of the round. Coatue Management, the New York-based investment firm that has raised over $16 billion for private investments... Deel, a startup that develops payroll tools to help companies hire remote workers...

Dwayne 'The Rock' Johnson. Photo: AP

Facebook Research Showed Teen Celebs Bad for Self Image, ‘The Rock’ Was Good

By Kaya Yurieff · Sep 30, 2021 3:09pm PDT

Dwayne 'The Rock' Johnson. Photo: AP

Creator Economy

Facebook Research Showed Teen Celebs Bad for Self Image, ‘The Rock’ Was Good

By Kaya Yurieff · Sep 30, 2021 3:09pm PDT

A new trove of internal Facebook research on Instagram and teens showed the social network’s data scientists tried to find out whether widely followed influencers helped—or worsened—the self images of women and teen girls. The findings confirm that the most followed personalities online have tremendous influence on the app, which has more than 1... A new trove of internal Facebook research on Instagram and teens showed the social network’s data...