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

Airbnb's founders displayed on Nasdaq's Times Square screen in New York today. Photo by Bloomberg

Airbnb’s $100 Billion Day: The Information’s Tech Briefing

By Martin Peers · Dec 10, 2020 5:02pm PST

Airbnb’s opening day stock trades, at more than double its $68 a share IPO price, demonstrate just how much ultra-low interest rates are inflating asset prices, even if they aren’t causing inflation among everyday goods and services. At today’s closing price of $144.71, Airbnb’s valuation of nearly $100 billion is more... Airbnb’s opening day stock trades, at more than double its $68 a share IPO price,...

Airbnb co-founders Joe Gebbia, Brian Chesky and Nathan Blecharczyk, shown on Dec. 10, the day Airbnb shares began trading on Nasdaq. Image: Airbnb

Airbnb’s Blockbuster IPO Cements Bond Among Founders

By Cory Weinberg · Dec 10, 2020 1:49pm PST · 1 comment

Airbnb went public Thursday having achieved something rare in Silicon Valley: Its founding trio of executives has stayed with the firm from its inception through to today’s public market debut. The leadership stability brought by co-founders Brian Chesky, Nathan Blecharczyk and Joe Gebbia has been key to the company’s success,... Airbnb went public Thursday having achieved something rare in Silicon Valley: Its founding trio...

Clockwise from top-left: Jane Wiseman (photo courtesy of Netflix), Kevin Reilly (photo by Shutterstock), Nina Wolarsky (photo courtesy of Netflix), Sofia Chang (photo courtesy of WarnerMedia), Amy Emmerich (photo provided by Ms. Emmerich), Marc Debevoise (photo courtesy of CBS), Chris Spadaccini (photo courtesy of HBO)

On the Market: Entertainment Veterans From Old and New Media

By Jessica Toonkel and Tom Dotan · Dec 10, 2020 6:02am PST

This has been a year of upheaval for the entertainment industry as a combination of the pandemic-triggered freeze in business and the impact of cord cutting prompted several of the big companies to slash costs and trim their executive ranks. At the same time, streaming giant Netflix reshuffled key positions, as it routinely does, leading to some... This has been a year of upheaval for the entertainment industry as a combination of the...

Facebook CEO Mark Zuckerberg testifies before a House Financial Services Committee hearing on in Washington, D.C. on Oct. 23, 2019. Photo: AP

Facebook’s Big Risk From Antitrust Suit Is Losing WhatsApp

By Alex Heath and Christopher Stern · Dec 9, 2020 6:20pm PST · 2 comments

Facebook CEO Mark Zuckerberg testifies before a House Financial Services Committee hearing on in Washington, D.C. on Oct. 23, 2019. Photo: AP

Facebook’s Big Risk From Antitrust Suit Is Losing WhatsApp

By Alex Heath and Christopher Stern · Dec 9, 2020 6:20pm PST · 2 comments

Facebook has yet to make much money off WhatsApp, the private messaging app it bought for $19 billion more than six years ago. But if the federal government succeeds in a landmark antitrust lawsuit that seeks to unwind Facebook’s marquee acquisitions, losing WhatsApp would hurt the company’s future ambitions the most. While Instagram... Facebook has yet to make much money off WhatsApp, the private messaging app it bought for $19...

Facebook CEO Mark Zuckerberg. Photo by Bloomberg.

The Antitrust Case Against Facebook Begins: The Information’s Tech Briefing

By Martin Peers · Dec 9, 2020 5:32pm PST

The long-anticipated antitrust battle against Facebook has begun. Separate lawsuits, from the feds and the states, read at times like a business thriller. For example, the states’ lawsuit quotes an email from CEO Mark Zuckerberg to Instagram co-founder Kevin Systrom warning of the competitive threat Instagram faced if it turned down... The long-anticipated antitrust battle against Facebook has begun. Separate lawsuits, from the...

DoorDash CEO Tony Xu

DoorDash CEO on 85% IPO Stock Pop: ‘Everyone Is Entitled to Their Opinion’

By Amir Efrati · Dec 9, 2020 4:52pm PST

Tony Xu, CEO of DoorDash, whose stock jumped 85% on its first day of trading following an initial public offering on Wednesday, said in an interview that “the market will clear what the market will clear,” referring to the share price and the hefty business expectations it implies. Xu said during a Zoom video interview from his San... Tony Xu, CEO of DoorDash, whose stock jumped 85% on its first day of trading following an initial...

Atrium of the headquarters of Airbnb in San Francisco. Photo by Dllu

Laid-Off Airbnb Employees Lost Mountain of Canceled Stock

By Cory Weinberg · Dec 9, 2020 9:58am PST · 6 comments

Airbnb’s initial public offering, which is expected to be priced Wednesday evening, will give thousands of current and former employees a long-awaited opportunity to sell shares. Some who joined the company in the early years will get a windfall. Others, including those who lost their jobs this year, will face a difficult question: What... Airbnb’s initial public offering, which is expected to be priced Wednesday evening, will...

Workers at a Foxconn assembly line in Shenzhen, China. Photo by Bloomberg

Apple Turned Blind Eye to Supplier Breaches of Chinese Labor Laws

By Wayne Ma · Dec 9, 2020 6:00am PST · 2 comments

Workers at a Foxconn assembly line in Shenzhen, China. Photo by Bloomberg

Apple Turned Blind Eye to Supplier Breaches of Chinese Labor Laws

By Wayne Ma · Dec 9, 2020 6:00am PST · 2 comments

In 2014, Apple executives became alarmed when China enacted a new labor law meant to protect workers’ rights. The law required that no more than 10% of a factory’s workforce be temporary workers. Typically these employees have fewer benefits and legal protections than permanent ones, but Apple’s suppliers increasingly relied on... In 2014, Apple executives became alarmed when China enacted a new labor law meant to protect...

Tesla CEO Elon Musk. Photo by Bloomberg

Tesla Cashes In on Roaring Market: The Information’s Tech Briefing

By Martin Peers · Dec 8, 2020 5:30pm PST

For the third time this year, Elon Musk is selling new shares in Tesla to raise cash. It’s a smart move by Musk, given how much money is flowing into the stock market. And it raises the question of why other growth companies that need cash, like Netflix, haven’t taken the same approach. Tesla said today it would sell up to $5 billion... For the third time this year, Elon Musk is selling new shares in Tesla to raise cash. It’s...

Art by Mike Sullivan

2020’s Biggest VC Winners

By Kate Clark and Ross Matican · Dec 8, 2020 10:46am PST · 10 comments

When Airbnb and DoorDash go public later this week, it will be a home run for a number of VC firms but particularly for Sequoia Capital, which has been an investor in both companies since their early days. The exits cap a remarkable year for the venerable VC firm, which had a stake in nearly every major public debut of a tech company, including... When Airbnb and DoorDash go public later this week, it will be a home run for a number of VC...

Groceries being distributed from a local shop working with Didi Chuxing. Photo provided by Didi Chuxing.

Shaved Heads, 84-Hour Work Week as China Tech Gets Into Groceries

By Yunan Zhang · Dec 8, 2020 6:01am PST · 5 comments

When Didi Chuxing, China’s biggest ride-hailing app, launched its online grocery business six months ago, some operations employees shaved their heads to show their commitment. In Chengdu, a city of 16 million in the southwestern province of Sichuan, these employees worked until midnight, slept in cots in their office and toiled... When Didi Chuxing, China’s biggest ride-hailing app, launched its online grocery business...

Uber CEO Dara Khosrowshahi. Photo by Bloomberg

Uber’s Costly Exit From Self-Driving Car Business: The Information’s Tech Briefing

By Martin Peers · Dec 7, 2020 5:01pm PST

Uber CEO Dara Khosrowshahi. Photo by Bloomberg

Uber’s Costly Exit From Self-Driving Car Business: The Information’s Tech Briefing

By Martin Peers · Dec 7, 2020 5:01pm PST

Uber finally unloaded its self-driving car unit, after five years and the expenditure of $2.5 billion. As The Information noted in an in-depth article in late September, that effort had produced a car that couldn’t drive more than half a mile without encountering a problem. The final bill is even higher. Uber is investing $400 million in... Uber finally unloaded its self-driving car unit, after five years and the expenditure of $2.5...

Art by Mike Sullivan.

Record Number of U.S. Firms Invested in Europe Tech This Year

By Mark Di Stefano · Dec 7, 2020 10:20am PST · 3 comments

Alex Lim, a partner at Menlo Park, Calif.-based venture firm IVP, flew to Europe six times in the 12 months before the coronavirus outbreak to visit founders and startups in the region. The pandemic abruptly halted those visits. But Lim’s interest in Europe didn’t flag. In the course of six months, he led his firm’s two... Alex Lim, a partner at Menlo Park, Calif.-based venture firm IVP, flew to Europe six times...

Mike Sullivan

Airbnb’s Biggest IPO Winners

By Cory Weinberg · Dec 7, 2020 6:00am PST · 15 comments

Sequoia Capital’s early bet on Airbnb will likely propel it to one of the greatest hauls in the history of venture capital, turning a $260 million investment made over the past 11 years into a stake that is now worth about $4.8 billion. But what hasn’t been previously reported is that the firm’s relationship with its portfolio... Sequoia Capital’s early bet on Airbnb will likely propel it to one of the greatest hauls in...

The Truth About Evaluating Founders—Even This One

By Jessica E. Lessin · Dec 5, 2020 8:01am PST · 4 comments

What makes a great founder? It’s been a question on my mind this week, driven partly by the news. Slack’s sale to Salesforce for $27.7 billion was a huge moment of success for founder Stewart Butterfield, the company and its shareholders. Was it also a sign that the company couldn’t succeed independently over the long term, as... What makes a great founder? It’s been a question on my mind this week, driven partly by the...

A DoorDash delivery person. Photo by Bloomberg

DoorDash’s Sky-High Valuation: The Information’s Tech Briefing

By Martin Peers · Dec 4, 2020 5:31pm PST

A DoorDash delivery person. Photo by Bloomberg

DoorDash’s Sky-High Valuation: The Information’s Tech Briefing

By Martin Peers · Dec 4, 2020 5:31pm PST

Next week is shaping up to be a big one for tech IPOs, with both DoorDash and Airbnb expected to hit the market. Both raise interesting questions for investors, given how each has fared through the pandemic. DoorDash’s offering arguably poses the biggest risks. The restaurant-meal delivery service on Friday raised its pricing range to... Next week is shaping up to be a big one for tech IPOs, with both DoorDash and Airbnb expected to...

The Information’s 411 — Slacking Benioff’s Thirst

By Tom Dotan · Dec 4, 2020 4:18pm PST · 2 comments

Cory speaks with Kevin McLaughlin, our enterprise reporter and soothsayer, about the reasons Salesforce spent big to acquire Slack. Tom talks to Paris about why Generation Z is both Amazon's biggest critic and a loyal customer base. Cory speaks with Kevin McLaughlin, our enterprise reporter and soothsayer, about the reasons...

WarnerMedia CEO Jason Kilar. Photo by Bloomberg.

WarnerMedia Considering CNN Streaming Service

By Jessica Toonkel · Dec 4, 2020 11:15am PST · 2 comments

AT&T’s WarnerMedia, long a giant in cable TV, was a late arrival to streaming video. Under its new CEO, Jason Kilar, Warner is trying to make up for lost time. Warner executives are discussing launching two new streaming services. One would be a subscription offering based on content from CNN and could launch next year. Another would... AT&T’s WarnerMedia, long a giant in cable TV, was a late arrival to streaming video....

Cue Health Monitoring System for testing for COVID-19 virus. Image by Cue Health

Covid Test Startup Cue Health in Talks for $2 Billion-Plus Valuation

By Kate Clark · Dec 4, 2020 10:00am PST

Cue Health, a startup that makes handheld coronavirus tests, is in discussion with investors about a new round of capital that could boost the company’s valuation to more than $2 billion, or at least four times the valuation in a fundraising just six months ago, according to two people familiar with the discussions. The San Diego... Cue Health, a startup that makes handheld coronavirus tests, is in discussion with investors...

Data Governance Top of Mind for Tech Policy Chiefs

Data Governance Top of Mind for Tech Policy Chiefs

By The Information Staff · Dec 4, 2020 9:27am PST

Data Governance Top of Mind for Tech Policy Chiefs

Data Governance Top of Mind for Tech Policy Chiefs

By The Information Staff · Dec 4, 2020 9:27am PST

On Thursday, The Information hosted a roundtable on what's next in tech regulation with PwC. Here's what was top of mind for our attendees, who included the heads of policy at a dozen tech companies. Europe's Digital Services Act: Expected soon, this legislation could limit how big tech companies use data across their products... On Thursday, The Information hosted a roundtable on what's next in tech regulation with PwC....