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 cleanroom worker in an II-VI laser components factory. Photo: Apple

Apple Laser Deal Signals AR Expansion

By Mathew Olson · May 6, 2021 11:20am PDT · 2 comments

Better AR capabilities could be finding their way into more iPhones before too long. Apple this week announced that it will pump more money, to the tune of $410 million, into a major laser supplier that develops key AR components. The recipient is II-VI, a Pennsylvania-based optics and laser company with several factories across the... Better AR capabilities could be finding their way into more iPhones before too long. Apple...

Didi’s offices in Hangzhou, China. Photo: Bloomberg

China’s Ride-Hailing Giant Didi Plans Separate IPO of Grocery Business

By Yunan Zhang · May 6, 2021 6:01am PDT · 2 comments

Didi Chuxing, a Chinese ride-hailing giant that plans to go public in New York this summer, is already making plans to spin off its newly created grocery-delivery service a year or two after the initial public offering. Didi executives have told investors in the grocery service that it intends to take the grocery business public sometime between... Didi Chuxing, a Chinese ride-hailing giant that plans to go public in New York this summer, is...

Microsoft executive Lori Wright outside the courtroom in Oakland, Calif., today. Photo by Bloomberg

Trial Testimony Cracks Open Microsoft’s Black Box

By Martin Peers · May 5, 2021 5:01pm PDT

Greetings!The big news coming out of today’s proceedings in the Epic–Apple trial had nothing to do with either company. It was that Microsoft does not now, and never has made any money from the sale of its Xbox console. For a device that has been on the market for 20 years, it’s surprising that Microsoft has yet to figure out the economics so... Greetings!The big news coming out of today’s proceedings in the Epic–Apple trial had nothing to...

Snap said Wednesday it would launch a marketplace to connect creators with brands. Photo: Bloomberg

How Snap and Facebook Creator Marketplaces Could Stumble

By Kaya Yurieff · May 5, 2021 3:00pm PDT

Snap said Wednesday it would launch a marketplace to connect creators with brands. Photo: Bloomberg

Creator Economy

How Snap and Facebook Creator Marketplaces Could Stumble

By Kaya Yurieff · May 5, 2021 3:00pm PDT

Snap and Facebook are joining TikTok in establishing marketplaces to connect creators with brands, elbowing into territory dominated by influencer marketing agencies. Snap on Wednesday revealed it was launching its own creator marketplace to connect advertisers with creators for sponsorship deals. These match-making services, which might ... Snap and Facebook are joining TikTok in establishing marketplaces to connect creators with...

A Fortnite player at E3 in 2019. Photo by Bloomberg

Epic's AR Anxiety

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

On Monday, the first day of the Epic-Apple trial, we learned that Epic had made a curious pitch for a Sony VR game. Yesterday’s proceedings revealed something quite different: AR’s rise influenced Epic’s decision to fight Apple. That suggests Epic may be anxious about holding onto its content edge in AR.During the cross examination of Epic CEO... On Monday, the first day of the Epic-Apple trial, we learned that Epic had made a curious pitch...

Big Tech Firms Are Corporate Outliers: Growing Fast and Sending Cash to Shareholders

By Berber Jin · May 5, 2021 10:25am PDT · 1 comment

The March quarter earnings results for big tech demonstrated more clearly than ever before just how unusual a position companies such as Apple, Alphabet and Facebook are in. They’re growing at 30% to 50% a year, like relatively young companies, and yet they’re returning cash to shareholders at the pace of an old, slow-growing... The March quarter earnings results for big tech demonstrated more clearly than ever before just...

Branded president Michael Ronen. Photo provided by Branded

The Big Interview

Branded Joins Frenzy of Startups Acquiring Amazon Merchants, Finds Profits

By Mark Di Stefano · May 5, 2021 6:01am PDT · 1 comment

Michael Ronen recently learned more than he ever thought he’d know about soap. Ronen runs Branded, a startup that buys up successful small businesses who sell their wares on Amazon. He was courting the American proprietor of a profitable online soap merchant, a business he was considering acquiring. “He can just talk to you all day... Michael Ronen recently learned more than he ever thought he’d know about soap. Ronen runs...

A Lyft driver hub in San Francisco. Photo by Bloomberg

Lyft's Q1 Numbers Show Pandemic Recovery on the Way

By Martin Peers · May 4, 2021 5:00pm PDT · 1 comment

A Lyft driver hub in San Francisco. Photo by Bloomberg

Lyft's Q1 Numbers Show Pandemic Recovery on the Way

By Martin Peers · May 4, 2021 5:00pm PDT · 1 comment

Greetings!There’s a saying, most recently popularized by former Obama adviser and Chicago mayor Rahm Emanuel, that one should “never let a good crisis go to waste.” It seems that the executives at Lyft, at least, took that advice to heart when it came to the pandemic. Brutal cost-cutting forced by last spring’s lockdowns has put the company much... Greetings!There’s a saying, most recently popularized by former Obama adviser and Chicago mayor...

An attendee plays Fortnite during the E3 Electronic Entertainment Expo June 11, 2019. Photo: Bloomberg

Creator Economy

Epic Cites Its Creators; TikTok Rival Preps Relaunch; YouTube in the Living Room

By Kaya Yurieff · May 4, 2021 2:52pm PDT

In one of the most high-profile antitrust trials in recent memory, Epic CEO Tim Sweeney is pointing to Apple’s power over Fortnite creators as additional evidence the iPhone maker is engaging in anti-competitive behavior in how it operates the App Store. According to courtroom pool reporters, Sweeney on Tuesday said the multi-player game... In one of the most high-profile antitrust trials in recent memory, Epic CEO Tim Sweeney is...

Epic CEO Tim Sweeney returned to the U.S. district court after a break in Oakland, Calif., on Monday. Photo: Bloomberg

Epic v. Apple Unearths a VR Bargaining Chip

By Mathew Olson · May 4, 2021 11:48am PDT · 2 comments

As Epic Games CEO Tim Sweeney took the stand on the first day of the Epic-Apple trial yesterday, a small detail in one exhibit caught my attention. In early 2018, Epic Vice President of Business Development Joe Kreiner floated an idea to Sony PlayStation: What if Epic were to commit to the launch of a VR game for Sony’s “next VR platform?”That... As Epic Games CEO Tim Sweeney took the stand on the first day of the Epic-Apple trial yesterday,...

Inside Rounds Hit Record $30 Billion as Investors Double Down

By Kate Clark · May 4, 2021 6:00am PDT · 1 comment

Venture capitalists may be getting too comfortable with marking up their own portfolios. The number of inside rounds, or VC deals in which only a startup’s previous investors participate, reached a high of over 1,000 in the U.S. last year and could top that record by the end of 2021, according to data provided to The Information by... Venture capitalists may be getting too comfortable with marking up their own portfolios. The...

Yahoo's headquarters in 2018. Photo by Bloomberg

Verizon Dumps Yahoo-AOL for Rock-Bottom Price

By Martin Peers · May 3, 2021 6:12pm PDT

Yahoo's headquarters in 2018. Photo by Bloomberg

Verizon Dumps Yahoo-AOL for Rock-Bottom Price

By Martin Peers · May 3, 2021 6:12pm PDT

Greetings!For digital history buffs, Verizon’s $5 billion sale today of its Yahoo-AOL media group to Apollo is an opportunity to take a stroll down memory lane, marveling at how much the value of the two former internet titans has shriveled in 20 years. But the pitiful amount of money the business fetched isn’t just of academic interest—it's a... Greetings!For digital history buffs, Verizon’s $5 billion sale today of its Yahoo-AOL media group...

TikTok's Kudzi Chikumbu. Photo: Daniel Prakopcyk

Creator Economy

Twitter’s Clubhouse Rival Gets Serious; Q&A With TikTok’s Chikumbu

By Kaya Yurieff · May 3, 2021 3:22pm PDT

Twitter unveiled an expanded version of its social audio feature Spaces, and with it, the first big test of whether Clubhouse can withstand the attack of clones coming from big tech companies. Any Twitter user with 600 or more followers will now be able to host a live audio conversation. The expansion gives it a big leg up over... Twitter unveiled an expanded version of its social audio feature Spaces, and with it, the first...

Trends in Cloud Adoption

By The Information Staff · May 3, 2021 12:53pm PDT

The Information recently surveyed our subscriber community on trends in cloud adoption and the shift to XaaS (Anything-as-a-Service). The survey was sponsored by PwC. Companies continue to move away from maintaining their software and hardware infrastructure on-premise to cloud based with over 80% of companies surveyed reporting they are... The Information recently surveyed our subscriber community on trends in cloud adoption and the...

An AR/VR-focused GDC event in San Francisco in 2019. Image: GDC

Facebook’s VR Fitness Challenge

By Mathew Olson · May 3, 2021 11:46am PDT · 2 comments

If you are a Facebook employee reading this newsletter, and you don’t already own an Oculus Quest 2, what are you waiting for? Last week, CEO Mark Zuckerberg unveiled a new perk for all Facebook employees: Any purchase of a Quest 2 can now be reimbursed under the company’s wellness plan. Since the Quest 2’s launch last year,... If you are a Facebook employee reading this newsletter, and you don’t already own an Oculus...

Kim Posnett, head of investment banking services for Goldman Sachs. Photo: Goldman Sachs

The ‘Tech Supercycle’ for Listings Is Accelerating: Top Goldman Sachs Banker

By Berber Jin · May 3, 2021 9:30am PDT

Kim Posnett, head of investment banking services for Goldman Sachs. Photo: Goldman Sachs

The Big Interview

The ‘Tech Supercycle’ for Listings Is Accelerating: Top Goldman Sachs Banker

By Berber Jin · May 3, 2021 9:30am PDT

For tech investors used to last year’s massive initial public offerings and price pops, the last few weeks have been sobering. UiPath priced its IPO below its last private valuation, Compass slashed the size of its IPO and once-hot cloud-computing stocks have tumbled. But according to Kim Posnett, global head of investment banking services... For tech investors used to last year’s massive initial public offerings and price pops, the...

At Booming Google, Search Chief Gives More Love to Product Managers

By Sarah Krouse and Kevin McLaughlin · May 3, 2021 6:01am PDT · 1 comment

Even as Google’s business booms and hiring accelerates, senior leaders have made changes to the unit housing its biggest moneymakers—web search and advertising. For instance, the sales team for Google Maps is being moved from Prabhakar Raghavan’s 20,000-person search, maps and ads product group to Google Cloud, the unit... Even as Google’s business booms and hiring accelerates, senior leaders have made changes to...

Why There Is More to the Big Tech Growth Story

By Jessica E. Lessin · May 1, 2021 7:47am PDT · 7 comments

Ahead of the largest tech companies’ earnings reports this week, expectations were high. But when Google, Facebook, Amazon, Microsoft and Apple reported their quarterly numbers, they exceeded analysts’ expectations and sent their stocks (mostly) soaring. There is one easy explanation: the pandemic. Our lives and businesses were... Ahead of the largest tech companies’ earnings reports this week, expectations were high....

Apple's Phil Schiller, a key figure in the upcoming trial.

Europe Opens New Front in War on Apple’s App Store

By Martin Peers · Apr 30, 2021 5:10pm PDT

After the earnings party comes the hangover. The European Commission’s preliminary ruling today accusing Apple of abusing its “dominant market position” in its treatment of music streaming rivals like Spotify crystallizes the regulatory risks facing the iPhone maker. Related issues will be litigated starting next week in the trial of Epic’s... After the earnings party comes the hangover. The European Commission’s preliminary ruling today...

Shouzi Chew, TikTok's new CEO, and Zhang Yiming, CEO and founder of TikTok-owner ByteDance. Photos: Bloomberg

With New TikTok CEO, ByteDance Roots Itself Firmly in Asia

By Alex Heath and Jessica E. Lessin · Apr 30, 2021 2:04pm PDT

Shouzi Chew, TikTok's new CEO, and Zhang Yiming, CEO and founder of TikTok-owner ByteDance. Photos: Bloomberg

With New TikTok CEO, ByteDance Roots Itself Firmly in Asia

By Alex Heath and Jessica E. Lessin · Apr 30, 2021 2:04pm PDT

TikTok said Friday that it had tapped Shouzi Chew as its new CEO, installing a lieutenant from its parent company, ByteDance, to oversee one of its most important and challenging businesses. The move is a big departure from the hiring of former Disney executive Kevin Mayer, the flashy U.S. executive ByteDance lured to lead TikTok before former... TikTok said Friday that it had tapped Shouzi Chew as its new CEO, installing a lieutenant from...