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

Ethereum’s Makeover; a Startup Aims to Be Crypto’s Cameo

By Hannah Miller · Aug 5, 2021 2:16pm PDT · 3 comments

The price of ether is on the rise after a new upgrade to the cryptocurrency’s Ethereum blockchain went live Thursday. Ether, which has the second-largest market capitalization of any crypto after bitcoin, climbed 4% to $2,807 over the past 24 hours. The changes, designed to make Ethereum transactions faster and less expensive, have the potential... The price of ether is on the rise after a new upgrade to the cryptocurrency’s Ethereum blockchain...

Reese Witherspoon. Photo by Bloomberg

Just How Rich Was Hello Sunshine’s Sales Price? Five Times Public Media Stock Values

By Jessica Toonkel and Sahil Patel · Aug 5, 2021 11:53am PDT · 1 comment

Since a Blackstone-led group agreed to buy Hello Sunshine at a valuation of $900 million this week, there’s been lots of talk about the rich prices Hollywood studios are fetching amid a shortage of quality programming for streaming. Just how rich, though, has remained murky—until now. The Information has learned that Hello Sunshine,... Since a Blackstone-led group agreed to buy Hello Sunshine at a valuation of $900 million this...

Sony's first VR headset. Photo by Sony

Epic to Take Another Crack at Defining the Metaverse; Sony's VR Ambitions

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

Next Tuesday, Marc Petit of Epic Games plans to talk on the metaverse at the annual SIGGRAPH computer graphics conference. It’ll be a chance for someone other than CEO Tim Sweeney to explain Epic’s vision for this next stage of computing. Hopefully, given the venue, it’ll be more substantive than Sweeney’s tweets and testimony in the Epic v.... Next Tuesday, Marc Petit of Epic Games plans to talk on the metaverse at the annual SIGGRAPH...

Know anyone who'd like The Electric?

By Steve LeVine · Aug 5, 2021 9:17am PDT

Know anyone who'd like The Electric?

By Steve LeVine · Aug 5, 2021 9:17am PDT

Hi! We’re now a few weeks into The Electric, and I hope you’ve found it valuable so far. The full archive is here.I’m writing with a request. I’m hoping that as many people as possible benefit from the free pilot we’re conducting. Until it ends and the paid beta begins, anyone can sign up and read the weekly deep-dives, receive important flash... Hi! We’re now a few weeks into The Electric, and I hope you’ve found it valuable so far. The full...

Chinese President Xi Jinping. Photo: Bloomberg

Chinese Government Invested in the Same Tech Companies It’s Now Attacking

By Shai Oster and Juro Osawa · Aug 5, 2021 6:00am PDT

A month ago, China’s top internet regulator launched a cybersecurity probe into Chinese truck-hailing company Full Truck Alliance, causing its share price to plunge less than two weeks after its initial public offering on the New York Stock Exchange. Yet the same internet regulator controls an investment fund that owns shares in the... A month ago, China’s top internet regulator launched a cybersecurity probe into Chinese...

Instacart's new president, former Facebooker Carolyn Everson

Facebookers Crowd Instacart's C-Suite With Big Ad Plans

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

Facebook staff’s takeover of Instacart appears to be complete. The grocery delivery service’s hiring Wednesday of former Facebook exec Carolyn Everson as president means that three key positions at the grocery delivery service are held by former Facebookers, including the CEO and COO roles. And that doesn’t count the more than 50 others hired... Facebook staff’s takeover of Instacart appears to be complete. The grocery delivery service’s...

Creator Economy

One Surprising Source of Influencers’ Monthly Income

By Kaya Yurieff · Aug 4, 2021 3:59pm PDT · 1 comment

In May, we published a chart showing how reliant creators are on sponsored deals with advertisers to make money. But our readers also wanted to know how much influencers earn on different social networks. Influencer marketing firm NeoReach gave us an early look at a new survey it conducted to answer that question. The research, which... In May, we published a chart showing how reliant creators are on sponsored deals with advertisers...

Legislative Battle Shows Industry’s New Muscle; the Crypto Knowledge Gap

By Hannah Miller · Aug 4, 2021 2:33pm PDT

Legislative Battle Shows Industry’s New Muscle; the Crypto Knowledge Gap

By Hannah Miller · Aug 4, 2021 2:33pm PDT

Since the $550 billion infrastructure bill was introduced last week, crypto industry groups have complained that the language about increasing tax reporting requirements for crypto businesses was too broad and would unfairly burden bitcoin miners, digital wallet manufacturers and other crypto companies. Now, it looks like that... Since the $550 billion infrastructure bill was introduced last week, crypto industry groups have...

A HTC Vive headset, an example of a PC VR headset. Photo by Bloomberg.

Debunking the Theory of PC VR’s Premature Death

By Mathew Olson · Aug 4, 2021 11:02am PDT

Today’s installment of Reality Check is all about death—but it doesn’t involve anyone or anything actually dying.Over the weekend, VR developer Cix Liv declared that PC VR was “dead,” reigniting an ongoing debate amongst designers and enthusiasts that itself refuses to die. As far as I can tell, the most common argument in favor of this take is... Today’s installment of Reality Check is all about death—but it doesn’t involve anyone or anything...

SoftBank, Insight Top List of 10 Fastest-Growing Tech Investors

By Kate Clark · Aug 4, 2021 10:01am PDT

Startup valuations aren’t the only thing going through the roof. Tech investors’ already supersized venture funds have recently gotten a lot, lot bigger. U.S. VC firms have raised $74 billion so far this year, nearly topping last year’s record of $81 billion. At the current pace, the total raised will clear $100 billion for the... Startup valuations aren’t the only thing going through the roof. Tech investors’...

Art by Mike Sullivan

Modest Proposals

The End of Venture Capital as We Know It

By Sam Lessin · Aug 4, 2021 6:01am PDT · 38 comments

All signs seem to indicate that by 2022, for the first time, nontraditional tech investors—including hedge funds, mutual funds and the like—will invest more in private tech companies than traditional Silicon Valley–style venture capitalists will. Many people are quick to write this off as a momentary blip where extremely cheap... All signs seem to indicate that by 2022, for the first time, nontraditional tech...

A Lyft drivers hub in San Francisco. Photo by Bloomberg

Lyft’s Pandemic Is Far From Over

By Martin Peers · Aug 3, 2021 5:04pm PDT · 1 comment

A Lyft drivers hub in San Francisco. Photo by Bloomberg

Lyft’s Pandemic Is Far From Over

By Martin Peers · Aug 3, 2021 5:04pm PDT · 1 comment

After the rush of the advertising-based internet firms reporting blockbuster growth, we’re coming down to earth this week with the ride-sharing companies Lyft and Uber reporting their second-quarter results. The verdict, at least so far: meh. Lyft went first today, reporting 125% growth in revenue from last year’s pandemic-crushed second... After the rush of the advertising-based internet firms reporting blockbuster growth, we’re coming...

Patreon CEO Jack Conte. Photo credit: Patreon

Creator Economy

Patreon’s Jack Conte: ‘Phase Two’ of Creator Tools Will Help Them Build Companies

By Kaya Yurieff · Aug 3, 2021 4:28pm PDT

On Monday, we wrote about the rise of fan membership services. Many of them are following the model of Patreon, the platform for artists and other creators. CEO Jack Conte, who co-founded the startup eight years ago because he was frustrated with his band’s slim earnings from YouTube ads, has played a pioneering role in developing new ways for... On Monday, we wrote about the rise of fan membership services. Many of them are following the...

SEC’s Gensler Vows Tighter Crypto Rules; Digital Yuan Risks

By Hannah Miller · Aug 3, 2021 2:54pm PDT

Gary Gensler has put the crypto industry on notice. While speaking at the Aspen Security Forum on Tuesday, the Securities and Exchange Commission chair made clear that he plans to bring more oversight to crypto trading, lending and decentralized finance platforms—and wants lawmakers to give the agency additional power to better regulate the... Gary Gensler has put the crypto industry on notice. While speaking at the Aspen Security Forum on...

Attorney-General Merrick Garland. Photo by Bloomberg

DOJ Weighing a Lawsuit to Block UnitedHealth’s $8 Billion Change Purchase

By Josh Sisco · Aug 3, 2021 2:42pm PDT

The U.S. Department of Justice is weighing a possible lawsuit to block UnitedHealth’s $8 billion purchase of health care analytics and technology vendor Change Healthcare, according to people familiar with the matter. If the DOJ proceeds with litigation, it would be the latest sign that the Biden administration is aggressively pursuing... The U.S. Department of Justice is weighing a possible lawsuit to block UnitedHealth’s $8...

Workers at a store in Brazil, in May 2020. With more shoppers at home, online e-commerce surged in Brazil and elsewhere in Latin America last year. Photo: Bloomberg

Nuvemshop, a Shopify Rival in Latin America, Valued at $2 Billion by Tiger Global

By Berber Jin · Aug 3, 2021 12:35pm PDT

Workers at a store in Brazil, in May 2020. With more shoppers at home, online e-commerce surged in Brazil and elsewhere in Latin America last year. Photo: Bloomberg

Nuvemshop, a Shopify Rival in Latin America, Valued at $2 Billion by Tiger Global

By Berber Jin · Aug 3, 2021 12:35pm PDT

Nuvemshop, a Latin American e-commerce startup similar to Shopify, is raising a new round of funding led by Tiger Global Management that could value the company at $2 billion including the new capital, according to a person familiar with the matter. The Series E round would add to the $90 million the São Paulo–based Nuvemshop raised... Nuvemshop, a Latin American e-commerce startup similar to Shopify, is raising a new round of...

Google's hardware chief Rick Osterloh. Photo by Bloomberg.

Google’s New Mobile Chip Is For AI First, AR Second

By Mathew Olson · Aug 3, 2021 11:00am PDT

With its upcoming line of Pixel 6 phones, teased on Monday months before the fall release, Google demonstrated just how much it is prioritizing artificial intelligence-powered improvements over AR-focused enhancements. It’s one way Google is differentiating the phones from Apple, which has gone all-in on new AR capabilities on the iPhone thanks... With its upcoming line of Pixel 6 phones, teased on Monday months before the fall release, Google...

Facebook CEO Mark Zuckerberg in Munich in 2020. Photo: Bloomberg.

Facebook Researchers Hope to Bring Together Two Foes: Encryption and Ads

By Sarah Krouse and Sylvia Varnham O'Regan · Aug 3, 2021 6:10am PDT · 2 comments

Facebook is bulking up a team of artificial intelligence researchers, including a key hire from Microsoft, to study ways of analyzing encrypted data without decrypting it, the company confirmed. The research could allow Facebook to target ads based on encrypted messages on its WhatsApp messenger, or to encrypt the data it collects on billions of... Facebook is bulking up a team of artificial intelligence researchers, including a key hire from...

Square's Jack Dorsey. Photo by Bloomberg

What Dorsey’s Square Deal for Afterpay Means For Affirm

By Martin Peers · Aug 2, 2021 5:00pm PDT

Affirm CEO Max Levchin owes Jack Dorsey big time. Just two weeks ago, news that Apple was working on an Affirm-like buy-now-pay-later consumer service sent Affirm shares plunging 14%. Today, after Dorsey’s Square unveiled plans to buy Affirm’s bigger rival, Australia-based Afterpay, Affirm’s stock jumped back 15%. Competition from Square cancels... Affirm CEO Max Levchin owes Jack Dorsey big time. Just two weeks ago, news that Apple was working...

Maroon 5 performs on Feb. 27, 2020. Photo: AP

The Rise of Fan Membership Services; Pearpop’s Maroon 5 Challenge

By Kaya Yurieff · Aug 2, 2021 4:09pm PDT

Maroon 5 performs on Feb. 27, 2020. Photo: AP

Creator Economy

The Rise of Fan Membership Services; Pearpop’s Maroon 5 Challenge

By Kaya Yurieff · Aug 2, 2021 4:09pm PDT

For some creators, brand sponsorships are losing their luster, even though they remain the top way to make money. Subscriptions, a path to earn recurring income directly from fans, have emerged as an attractive second option. That’s fueled the success of OnlyFans and Patreon. Now other startups and big social networks are following suit.... For some creators, brand sponsorships are losing their luster, even though they remain the top...