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

Tax Crackdown; Robinhood’s Rough Start; The Graph Grows

By Hannah Miller · Jul 29, 2021 3:05pm PDT

A bipartisan proposal that would deliver hundreds of billions of dollars in infrastructure improvements in part through stronger tax enforcement on cryptocurrencies has, unsurprisingly, put some in the crypto world on edge.The bill would aim to raise $28 billion from crypto holders by tightening reporting thresholds, including requiring... A bipartisan proposal that would deliver hundreds of billions of dollars in infrastructure...

Chart: Mike Sullivan

BlackRock, Fidelity, Vanguard Among Most Exposed to China Tech-Stock Volatility

By Juro Osawa, Shai Oster and Aidan Ryan · Jul 29, 2021 1:10pm PDT · 1 comment

Money manager BlackRock and mutual fund managers the Vanguard Group and Fidelity are among six Western institutional investors who—if their holdings have remained the same since the first quarter—will have lost some $15 billion collectively in some of the biggest U.S.-listed China tech stocks that have tumbled in the wake of... Money manager BlackRock and mutual fund managers the Vanguard Group and Fidelity are among six...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

Wall Street’s Question for Facebook: How Much Is the Metaverse Worth?

By Mathew Olson · Jul 29, 2021 11:00am PDT

Earlier this week, I gave Mark Zuckerberg some credit for talking about the metaverse without relying on speculative, buzzword-y language. In fact, compared to some of Facebook’s vague talk around its AR/VR hardware, Zuckerberg’s thoughts on what the metaverse is and what people will use it for have been clear, even if it’s a bit basic.Even so,... Earlier this week, I gave Mark Zuckerberg some credit for talking about the metaverse without...

Photos by Bloomberg; Shutterstock. Art by Mike Sullivan

Amazon’s Roads to Nowhere

By Paris Martineau · Jul 29, 2021 6:01am PDT

Photos by Bloomberg; Shutterstock. Art by Mike Sullivan

Amazon’s Roads to Nowhere

By Paris Martineau · Jul 29, 2021 6:01am PDT

For months, residents of Margo Drive, a narrow residential street on the outskirts of Charlotte, N.C., have puzzled over this question: Why do gigantic semitrucks hauling cargo for Amazon keep rumbling down their one-lane, dead-end road? While Amazon has a warehouse nearby that opened late last year, its entrance is located through an impassable... For months, residents of Margo Drive, a narrow residential street on the outskirts of Charlotte,...

FTC Chair Lina Khan. Photo by Bloomberg

FTC’s Khan Accuses Big Tech of Promoting Fraud, Targets S. 230

By Martin Peers · Jul 28, 2021 5:02pm PDT

Lina Khan ratcheted up the rhetoric against big tech on Wednesday, accusing digital platforms owned by “some of the world’s largest companies” of promoting fraud. Gee, who could the FTC chair be talking about? What she said next should make it clear, if there was any doubt: “Business models singularly focused on scale and engagement coupled with... Lina Khan ratcheted up the rhetoric against big tech on Wednesday, accusing digital platforms...

Photo by Bloomberg

Creator Economy

Bringing Order to the Chaos of Influencers’ Hotel Discount-Seeking

By Kaya Yurieff · Jul 28, 2021 4:17pm PDT

For several years, hotels have found themselves in awkward situations with social media influencers who contact them for free rooms in exchange for posts that promote their properties. Some interactions between ornery hotel owners and thirsty Instagram personalities have even gone viral.Instead of rolling his eyes, Michael Keriakos saw an... For several years, hotels have found themselves in awkward situations with social media...

Bitcoin After Inflation; Games Build Bridge to DeFi

By Hannah Miller · Jul 28, 2021 2:46pm PDT · 1 comment

Bitcoin prices got a lift after the Federal Reserve said on Wednesday that it was keeping interest rates near zero on Wednesday, despite rising inflation. The cryptocurrency is currently just under $40,000, an increase of 4.1% over the past 24 hours, a sign that at least some investors still see value in bitcoin as an inflation hedge.But Fed... Bitcoin prices got a lift after the Federal Reserve said on Wednesday that it was keeping...

People using VR to see scenes of Syrian cities being shelled. Photo by AP

New Study Casts Doubt on VR’s Value as Empathy Machine

By Mathew Olson · Jul 28, 2021 11:00am PDT

People using VR to see scenes of Syrian cities being shelled. Photo by AP

New Study Casts Doubt on VR’s Value as Empathy Machine

By Mathew Olson · Jul 28, 2021 11:00am PDT

The conventional wisdom in tech is that virtual reality helps people empathize more easily. Like so many popular ideas in tech, this belief caught on thanks in large part to a TED Talk. In 2015, VR designer Chris Milk gave a presentation in which he said VR is “a machine, but through this machine we become more compassionate, we become more... The conventional wisdom in tech is that virtual reality helps people empathize more easily. Like...

Bumble signage at the Nasdaq when it went public in February. Photo by Bloomberg.

Where Has the IPO Lockup Gone? Tech Firms Trim Them Back

By Aidan Ryan · Jul 28, 2021 9:19am PDT · 2 comments

Some of last year’s most valuable tech initial public offerings, including Airbnb, Doordash and Snowflake, allowed pre-IPO shareholders to sell their stock before the traditional six-month waiting period expired. A more recent crop of listings, as well as Robinhood's imminent IPO, show the shift away from rigid lockups not only has... Some of last year’s most valuable tech initial public offerings, including Airbnb, Doordash...

Mike Sullivan

Revenue Surges at Google, Snap as Shift to Digital Ads Accelerates

By Sarah Krouse, Sylvia Varnham O'Regan and Sahil Patel · Jul 28, 2021 6:01am PDT

Dell is rethinking how it spends this year’s ad budget. The computer maker is likely to shift as much as 15% of the nearly $100 million it typically spends on TV advertising in the Americas to digital ads, according to a person familiar with the plans. The company and other large brands are accelerating a yearslong shift in spending toward... Dell is rethinking how it spends this year’s ad budget. The computer maker is likely to...

Alphabet CEO Sundar Pichai. Photo by Bloomberg.

Big Tech's Boffo Performance

By Martin Peers · Jul 27, 2021 5:00pm PDT

Apple, Microsoft and Alphabet each reported impressively robust earnings results for the June quarter, demonstrating that these giant companies continue to go from strength to strength even as they face greater regulatory scrutiny. If there is any downside for the companies and their shareholders, it’s that the results will only concentrate... Apple, Microsoft and Alphabet each reported impressively robust earnings results for the June...

Pinterest CEO Ben Silbermann. Photo by Bloomberg

Pinterest’s Interest in Creators Comes Back From the Dead

By Kaya Yurieff · Jul 27, 2021 4:45pm PDT

Pinterest CEO Ben Silbermann. Photo by Bloomberg

Creator Economy

Pinterest’s Interest in Creators Comes Back From the Dead

By Kaya Yurieff · Jul 27, 2021 4:45pm PDT

Pinterest doesn’t immediately come to mind as a top attraction for content creators. But like other content platforms, it’s been fighting for the attention of influencers by adding new ways for them to make money. On Tuesday, the app announced features allowing creators to earn commissions from directing Pinterest users to buy specific products... Pinterest doesn’t immediately come to mind as a top attraction for content creators. But like...

Stronghold Eyes $100 Million IPO; Binance Plots a Makeover

By Hannah Miller · Jul 27, 2021 2:16pm PDT

FTX and Binance aren’t the only cryptocurrency companies with dreams of going public. Bitcoin miner Stronghold Digital Mining filed for a $100 million initial public offering on Tuesday. It is the latest sign that despite growing environmental concerns about bitcoin’s power consumption, companies that fuel the calculations needed to verify... FTX and Binance aren’t the only cryptocurrency companies with dreams of going public. Bitcoin...

Facebook's Oculus Quest 2. Facebook on Tuesday suspended sales of the headset temporarily. Image courtesy Facebook/Oculus

Facebook Kicks Off a Metaverse Reorganization

By Mathew Olson · Jul 27, 2021 11:00am PDT · 2 comments

Mark Zuckerberg wasn’t kidding when he said last week he hopes Facebook will morph from a social media giant into a metaverse company. As the company revealed Monday, his ambition is beginning to have real effects on Facebook’s org chart.As reported, Facebook is creating a new Metaverse product group under Facebook Reality Labs. Andrew Bosworth’... Mark Zuckerberg wasn’t kidding when he said last week he hopes Facebook will morph from a social...

Producers of Group Nine's short film "Two Distant Strangers" at the Oscars. Photo by AP.

How Vice, Vox and BuzzFeed Are Cashing In on the Streaming Boom

By Sahil Patel · Jul 27, 2021 9:01am PDT · 3 comments

“Land of the Giants” is a podcast series from Vox Media’s Recode covering the history of tech companies including Amazon and Netflix. It will soon be a TV show, made by Vox for a major cable network for a fee of several millions of dollars, according to people familiar with the matter. Digital media firms which have long... “Land of the Giants” is a podcast series from Vox Media’s Recode covering the...

Zhang Lei (left) and Neil Shen. Photos by Bloomberg; AP

Sequoia Capital vs. Hillhouse: Inside China’s Fiercest Investor Rivalry

By Juro Osawa and Shai Oster · Jul 27, 2021 6:01am PDT

Zhang Lei (left) and Neil Shen. Photos by Bloomberg; AP

Sequoia Capital vs. Hillhouse: Inside China’s Fiercest Investor Rivalry

By Juro Osawa and Shai Oster · Jul 27, 2021 6:01am PDT

Last fall, Sequoia Capital China, the Silicon Valley VC firm’s affiliate led by investor Neil Shen, pledged to invest $400 million in a new funding round for Full Truck Alliance, China’s “Uber for trucks.” Days later, Zhang Lei, the rival head of private-equity giant Hillhouse Capital Group, flew to Nanjing, met Full... Last fall, Sequoia Capital China, the Silicon Valley VC firm’s affiliate led by investor...

The Electric Flash Analysis: Elon Musk’s Shift to Iron-Based Batteries Will Upend EV Industry

By Steve LeVine · Jul 26, 2021 5:14pm PDT

Tesla CEO Elon Musk. Photo by BloombergHappy Monday!The first three issues of The Electric said the electric vehicle industry would likely shift to cheap lithium-iron-phosphate (LFP) batteries. Tesla CEO Elon Musk just made it official.Musk said in an earnings conference call on Monday that he ultimately expects most of his electric vehicle and... Tesla CEO Elon Musk. Photo by BloombergHappy Monday!The first three issues of The Electric said...

A Meituan food delivery courier in Beijing in April. Photo by Bloomberg.

China’s Tech Crackdown Rattles Investors

By Martin Peers · Jul 26, 2021 5:00pm PDT · 1 comment

American critics of U.S. tech giants must be looking a little enviously at how China is clamping down on its tech industry. On almost every issue that tech’s U.S. detractors have focused on—alleged antitrust breaches, data privacy and most recently, the rights of workers handling food delivery—the Chinese government has taken action against... American critics of U.S. tech giants must be looking a little enviously at how China is clamping...

Photo by Bloomberg

Creator Economy

TikTok’s Toilsome Virality; Olympians’ Personal Videos Break Out

By Kaya Yurieff · Jul 26, 2021 4:00pm PDT

From the outside, TikTok’s four-year ascent can seem almost serendipitous or out of the blue. But Chris Stokel-Walker’s new book “TikTok Boom” goes further than any other journalist to capture the astounding amount of work by TikTok’s Chinese parent company ByteDance to make the viral-video app go viral.TikTok today might qualify as a... From the outside, TikTok’s four-year ascent can seem almost serendipitous or out of the blue. But...

The Amazon Effect; Reducing Trading Risk; New Service From Spring Labs

By Hannah Miller · Jul 26, 2021 3:19pm PDT · 1 comment

The Amazon Effect; Reducing Trading Risk; New Service From Spring Labs

By Hannah Miller · Jul 26, 2021 3:19pm PDT · 1 comment

Signs that Amazon might venture into cryptocurrency appeared to help drive bitcoin’s price sharply higher Monday, pushing the coin toward $40,000 only days after it fell below $30,000. While the crypto market seemed cheered by the prospect of an Amazon crypto initiative, which would represent another mainstream seal of approval for digital... Signs that Amazon might venture into cryptocurrency appeared to help drive bitcoin’s price...