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

A trader on the floor of the New York Stock Exchange. Photo by Bloomberg

Netflix Stock Slump Drags Down TV Stocks

By Martin Peers · Jan 21, 2022 5:00pm PST

Greetings!Another day, another market sell-off. And things are getting a little indiscriminate. Take today’s 5% to 7% drop in the stocks of Disney, Discovery and ViacomCBS, apparently triggered by a 22% plunge in the price of Netflix. It’s a little like a teacher punishing an entire class for the misdeeds of one student. Penalizing TV stocks for... Greetings!Another day, another market sell-off. And things are getting a little indiscriminate....

Art by Mike Sullivan

Advertisers Love TikTok. Now They’re Looking to Double Their Spending on It.

By Sahil Patel · Jan 21, 2022 2:21pm PST

A top ad agency will triple its spending on TikTok this year to 5% of its roughly $2 billion social media ad budget, and TikTok’s share of the budget will double to 10% in 2023, a senior executive at the agency told The Information. At another ad agency, Mekanism, spending on TikTok has gone from zero a few years ago to roughly... A top ad agency will triple its spending on TikTok this year to 5% of its roughly $2 billion...

Art by Haejin Park.

Dear Parentverse: My 8-Year-Old Is Clamoring for Animal Crossing Amiibos—Any Reason to Say No?

By Emily Dreyfuss · Jan 21, 2022 12:00pm PST · 2 comments

This is Parentverse, The Information Weekend’s advice column for tech-savvy parents. Email us your questions at [email protected]. Or, if you don’t mind sharing them with your fellow subscribers, post them in the comments below. Dear Parentverse: My 8-year-old loves the game Animal Crossing, and she keeps pestering me about getting... This is Parentverse, The Information Weekend’s advice column for tech-savvy parents. Email us...

Illustration by Josh Brill.

The Shoe Industry Is Hyping Virtual Sneakers for the Metaverse. So Far, Real Sneakerheads Aren’t Buying

By Malique Morris · Jan 21, 2022 12:00pm PST

Illustration by Josh Brill.

The Shoe Industry Is Hyping Virtual Sneakers for the Metaverse. So Far, Real Sneakerheads Aren’t Buying

By Malique Morris · Jan 21, 2022 12:00pm PST

TJ Keasal has been dressing up her videogame characters in new-release Nikes and Adidas since she was in middle school. Long before Fortnite let players outfit their avatars, Keasal, a 32-year-old Michigan native, would win tokens in games like NBA Live and use them to upgrade her players’ on-court style with whatever was hottest at the time, be... TJ Keasal has been dressing up her videogame characters in new-release Nikes and Adidas since she...

Art by Haejin Park. Photo courtesy Caroline Spiegel.

Caroline Spiegel’s Porn Revolution

By Annie Goldsmith · Jan 21, 2022 12:00pm PST · 8 comments

Birds chirp and wind rustles through leaves—the sounds of early fall. “Man, it’s beautiful out here,” remarks a deep, crackly male voice. “All the trees, the green. The leaves are just starting to turn colors. “What are you looking at me like that for?” he continues, chuckling. “No, I know that look. You are up to something naughty. “Whoa, whoa,... Birds chirp and wind rustles through leaves—the sounds of early fall. “Man, it’s beautiful out...

Susanne Daniels. Photo by Bloomberg. Art by Mike Sullivan

Why YouTube Sees Hollywood’s Future in the Creator Economy

By Andrew A. Rosen · Jan 21, 2022 10:00am PST

Tuesday’s letter from YouTube Chief Business Officer Robert Kyncl to its 2 million–strong creator community—announcing that original content chief Susanne Daniels had resigned—read like the final salvo in YouTube’s recent PR campaign touting its creator economy successes. Consider: When Daniels started in her role... Tuesday’s letter from YouTube Chief Business Officer Robert Kyncl to its 2...

Image: Gopuff

Inside Gopuff’s Ambitious and Costly Bid to Dominate European Instant Delivery

By Mark Di Stefano and Berber Jin · Jan 21, 2022 6:00am PST

Executives at Gopuff, a U.S. instant-delivery company that has planned to go public this year, recently told investors that its foray into Europe, which began last year, has topped expectations: The business is on pace to generate $100 million in annual revenue there, or about 5% of its overall revenue currently, and is growing three times... Executives at Gopuff, a U.S. instant-delivery company that has planned to go public this year,...

Peloton bikes in a company store. Photo by Bloomberg.

Why Apple Will Buy Peloton

By Martin Peers · Jan 20, 2022 5:00pm PST · 4 comments

Peloton bikes in a company store. Photo by Bloomberg.

Why Apple Will Buy Peloton

By Martin Peers · Jan 20, 2022 5:00pm PST · 4 comments

Tim Cook, please call Peloton’s head office. Today’s CNBC scoop that Peloton has temporarily halted production of its bikes and treadmills feels like the prelude to an acquisition of the troubled fitness equipment maker. Surely Apple must be the obvious buyer if it comes to that. Judging by Peloton’s 24% stock plunge today to $24.22—85% below... Tim Cook, please call Peloton’s head office. Today’s CNBC scoop that Peloton has temporarily...

Andreessen Horowitz co-founder Ben Horowitz. Photo by Bloomberg.

Andreessen Horowitz Targets Record-Breaking Crypto Fund; Twitter and Meta Explore NFT Features

By Akash Pasricha · Jan 20, 2022 4:35pm PST

Andreessen Horowitz is set to regain its position as the creator of the largest crypto fund to date. The venture capital giant is planning to raise $4.5 billion for two new cryptocurrency funds, according to the Financial Times. A $3.5 billion fund will continue its crypto investments and a $1 billion fund will target seed-stage digital asset... Andreessen Horowitz is set to regain its position as the creator of the largest crypto fund to...

Workweek co-founders Adam Ryan and Becca Sherman. Photo: Sarah Karlan

Creator Economy

Workweek Launches Venture Fund Where Creators Source the Deals

By Kaya Yurieff · Jan 20, 2022 3:27pm PST

We recently wrote about the rise of creators on cap tables and how founders are eager to tap into their audiences and know-how. But not all creators are in a financial position to invest, while others are unfamiliar with navigating the process. Workweek, a media startup that works with business-focused creators, saw an opportunity to get... We recently wrote about the rise of creators on cap tables and how founders are eager to tap into...

A detailed city simulation made to promote the new "Matrix" film. Credit: Epic Games.

What a Veteran VR Philosopher Thinks of the Metaverse; Google’s Project Iris

By Mathew Olson · Jan 20, 2022 11:20am PST

David Chalmers, a professor of philosophy and neural science at NYU, has been studying the potential of life in VR for years, long before Mark Zuckerberg promised to build virtual worlds that make people “feel present” and totally immersed. And in a new book, he says he believes that while it’s already possible to have good experiences in... David Chalmers, a professor of philosophy and neural science at NYU, has been studying the...

Photo by Flickr/Mike Mozart

FTC Pursues TurboTax Fraud Case Despite Supreme Court Mauling

By Josh Sisco · Jan 20, 2022 8:00am PST · 1 comment

Photo by Flickr/Mike Mozart

FTC Pursues TurboTax Fraud Case Despite Supreme Court Mauling

By Josh Sisco · Jan 20, 2022 8:00am PST · 1 comment

For three years, the Federal Trade Commission and state attorneys general have tried to exact financial and other penalties from Intuit, maker of TurboTax. The case stems from the company’s decision—first reported by ProPublica—to not inform millions of paying, low-income TurboTax customers that they could use the app to file... For three years, the Federal Trade Commission and state attorneys general have tried to exact...

Microsoft's Chetan Nyak. Photo by Microsoft. Art by Mike Sullivan

The Big Interview

Microsoft Quantum Computing Executive Sees Progress After Lagging Rivals

By Sarah Krouse · Jan 20, 2022 6:00am PST

For more than 15 years, researchers at Microsoft have been chasing the idea of building a better quantum computer, an ultrapowerful machine that promises to accelerate everything from drug discovery to the development of electric batteries. Along the way, the company has suffered setbacks as it takes a novel—and risky—approach to... For more than 15 years, researchers at Microsoft have been chasing the idea of building a better...

A trader on the floor of the New York Stock Exchange earlier this month. Photo by Bloomberg.

Nasdaq’s Belated Correction

By Martin Peers · Jan 19, 2022 5:00pm PST

The big news this afternoon was that the Nasdaq’s sell-off put it in “correction territory,” Wall Street lingo for a drop of more than 10%, since the tech-heavy index hit a high in mid-November of 16,057. In reality, declaring a correction today is akin to a baby boomer discovering last week that TikTok is a big deal. Many tech stocks have... The big news this afternoon was that the Nasdaq’s sell-off put it in “correction territory,” Wall...

KRH founder Katie Haun and Autograph co-founder Tom Brady. Photos by Katie Haun, AP. Art by Mike Sullivan.

Katie Haun Backs Tom Brady in $170 Million Fundraise

By Hannah Miller · Jan 19, 2022 4:13pm PST

The latest investment from Katie Haun’s new crypto VC firm has major starpower behind it. The venture founded by Haun, a departing Andreessen Horowitz general partner, participated in a $170 million Series B round for Autograph, star quarterback Tom Brady’s non-fungible token (NFT) startup. TechCrunch first reported the deal, and Haun’s... The latest investment from Katie Haun’s new crypto VC firm has major starpower behind...

Instagram head Adam Mosseri. Photo: AP

What Instagram’s Move Into Subscriptions Means for TikTok—and Patreon

By Mahira Dayal · Jan 19, 2022 3:49pm PST

Instagram head Adam Mosseri. Photo: AP

Creator Economy

What Instagram’s Move Into Subscriptions Means for TikTok—and Patreon

By Mahira Dayal · Jan 19, 2022 3:49pm PST

Back in May, Instagram head Adam Mosseri told The Information the photo-sharing app was exploring subscriptions for its influencers. On Wednesday, his boss Mark Zuckerberg took the wraps off the feature, announcing on his personal Facebook page that Instagram would test subscriptions with a limited number of U.S.-based creators. Creator and... Back in May, Instagram head Adam Mosseri told The Information the photo-sharing app was exploring...

Promotional artwork for the original PlayStation VR headset. Credit: Sony.

Parsing Meta Ad Patents; Sony’s Xbox-Inflicted Stock Hit

By Mathew Olson · Jan 19, 2022 1:30pm PST

Meta Platforms is evidently eager to figure out a Facebook-like advertising model for AR and VR. A recent report on Meta’s patent portfolio from the Financial Times points to technologies the company could use to heighten the targeted advertising techniques it honed in social media.But many of these ad concepts warrant a heavy emphasis on “... Meta Platforms is evidently eager to figure out a Facebook-like advertising model for AR and VR....

Art by Jesús Escudero

China’s Tech Crackdown Is a Geopolitical Play

By Kendra Schaefer · Jan 19, 2022 10:14am PST · 3 comments

It hardly bears repeating that 2021 was a rough year for China’s platform companies. The firehose of new regulations and rolling crackdowns on everything from data security to overseas listings cost Chinese shares—including those of Didi, Meituan, Pinduoduo, JD.com, Tencent, and ByteDance—42% of their cumulative value in the... It hardly bears repeating that 2021 was a rough year for China’s platform companies. The...

Benchmark partner Sarah Tavel. Photo: Benchmark

Benchmark’s Approach to Crypto Takes a Page From Web 2.0

By Berber Jin · Jan 19, 2022 6:00am PST · 2 comments

In the past year, venture capital firms with dedicated crypto arms like Andreessen Horowitz and crypto specialists such as Paradigm have gobbled up some of the hottest startups in the industry. Benchmark’s approach has been more of a nibble: The blue-chip VC firm has invested in just two new crypto startups during the same period. That... In the past year, venture capital firms with dedicated crypto arms like Andreessen Horowitz and...

Sarah Tavel. Photo by Flickr/TechCrunch. Art by Mike Sullivan

Full Interview With Benchmark’s Sarah Tavel

By Berber Jin · Jan 19, 2022 6:00am PST

Sarah Tavel. Photo by Flickr/TechCrunch. Art by Mike Sullivan

Q&A

Full Interview With Benchmark’s Sarah Tavel

By Berber Jin · Jan 19, 2022 6:00am PST

In an interview, Benchmark general partner Sarah Tavel elaborated on her views about the evolving crypto market for venture capitalists—and where the premier early-stage investor fits in a landscape crowded by multibillion-dollar funds and specialist VC firms. She also talks about the prospects for decentralized autonomous organizations,... In an interview, Benchmark general partner Sarah Tavel elaborated on her views about the evolving...