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

Quibi CEO Meg Whitman. Photo by Bloomberg

The Investors Who Face Big Losses From the Quibi Collapse

By Tom Dotan and Jessica Toonkel · Oct 21, 2020 2:27pm PDT · 9 comments

On Wednesday, video startup Quibi told its investors that it will shut down, a dramatic collapse of a digital media startup that launched just six months ago. Now those investors—from Quibi CEO Meg Whitman to Google, Facebook and J.P. Morgan—are facing losses and figuring out what they may recoup from the flop. Quibi revealed to... On Wednesday, video startup Quibi told its investors that it will shut down, a dramatic...

Actor Tye Sheridan, from left, with filmmaker Zach Wechter and Quibi chief product officer Tom Conrad during a keynote at CES in January. Photo by Bloomberg

Quibi to Shutter in Stunning End to Ambitious Venture

By Tom Dotan and Jessica Toonkel · Oct 21, 2020 12:39pm PDT · 10 comments

Jeffrey Katzenberg’s video streaming service Quibi is shutting down, said a person familiar with the situation, bringing down the curtain on the short-form video streaming service just six months after it launched. The closure is a stunning end to Katzenberg’s hopes of creating a new category of video entertainment, short... Jeffrey Katzenberg’s video streaming service Quibi is shutting down, said a person familiar...

A sign for Palantir hangs over the New York Stock Exchange on the day it went public last month. Photo by Bloomberg.

Cost of Direct Listings May Be a Lower Valuation

By Ross Matican · Oct 21, 2020 6:02am PDT · 3 comments

How do you define a successful direct listing? That’s a question more people might be asking, three weeks after Palantir and Asana went public by directly listing their existing shares rather than selling new stock in an initial public offering. Their listings brought to five the number of companies to go public using this route, including... How do you define a successful direct listing? That’s a question more people might be...

Snap's Jared Grusd. Photo by Erin Beach.

Snapchat’s Indian Users Rise 150% as Growth Stalls in Home Market

By Alex Heath · Oct 21, 2020 5:00am PDT · 1 comment

Snap's Jared Grusd. Photo by Erin Beach.

Snapchat’s Indian Users Rise 150% as Growth Stalls in Home Market

By Alex Heath · Oct 21, 2020 5:00am PDT · 1 comment

Snapchat, which once faced a boycott in India, has more than doubled its users there in the last year as it has benefited from “changes in the competitive landscape” and a stream of deals with local celebrities, media companies and mobile carriers, said a senior executive. The messaging app’s users rose 150% in the country... Snapchat, which once faced a boycott in India, has more than doubled its users there in the last...

Google CEO Sundar Pichai. Photo: Bloomberg

The Real Threat to Google and Alphabet Isn’t Antitrust Case

By Nick Bastone and Christopher Stern · Oct 20, 2020 5:45pm PDT

The just-filed U.S. antitrust case against Google’s web search dominance likely will take years to be resolved and, even if successful, may not cut into Google’s business by much. Instead, competition from powerful companies such as Amazon and Facebook as well as young foes like TikTok pose the biggest risk to Google’s... The just-filed U.S. antitrust case against Google’s web search dominance likely will take...

Attorney-General Bill Barr. Photo by Bloomberg

Google’s Antitrust Moment: The Information’s Tech Briefing

By Martin Peers · Oct 20, 2020 5:31pm PDT

The day finally arrived: The current swell of antitrust investigations of big tech resulted in an actual case with the filing of the U.S. Department of Justice’s lawsuit against Google. Years from now though, when Google’s influence declines—which it almost certainly will eventually—this lawsuit isn’t likely to be... The day finally arrived: The current swell of antitrust investigations of big tech resulted in an...

Jeffrey Katzenberg. Photo by Bloomberg

Katzenberg May Shut Down Quibi as Options Run Short

By Tom Dotan and Jessica Toonkel · Oct 20, 2020 4:19pm PDT · 3 comments

Jeffrey Katzenberg may be nearing the end of the road with his mobile video streaming service Quibi. He recently tried to sell its catalog of programming to companies such as NBCUniversal and Facebook. Both passed, according to several people familiar with the matter. Meanwhile, Katzenberg has told people in the industry that he may have to... Jeffrey Katzenberg may be nearing the end of the road with his mobile video streaming service...

L to R: Rashida Jones, Rebecca Blumenstein, Lydia Polgreen, Marc Lacey, S. Mitra Kalita. Photos by NBC, Hubert Burda Media, AP, Cornell and CNN.

Who Could Lead CNN if Zucker Leaves

By Jessica Toonkel · Oct 20, 2020 9:00am PDT

L to R: Rashida Jones, Rebecca Blumenstein, Lydia Polgreen, Marc Lacey, S. Mitra Kalita. Photos by NBC, Hubert Burda Media, AP, Cornell and CNN.

Who Could Lead CNN if Zucker Leaves

By Jessica Toonkel · Oct 20, 2020 9:00am PDT

As WarnerMedia CEO Jason Kilar overhauls the media firm to make it more digitally savvy and consumer focused, he is expected to zero in on its news and sports business, particularly CNN, for a shakeup, according to people familiar with the situation. What could trigger a restructuring of the business is the possible departure of news and sports... As WarnerMedia CEO Jason Kilar overhauls the media firm to make it more digitally savvy and...

Art by Sam Lessin

Modest Proposals

How to Prevent Social Media’s Editorial Role From Becoming Censorship of Speech

By Sam Lessin · Oct 20, 2020 6:00am PDT · 6 comments

While you can quibble with the details, the social platforms did the right thing in initially limiting the distribution of last week’s New York Post article on Hunter Biden. As others have noted, in the wake of the 2016 election, platforms like Facebook and Twitter were forced to make certain commitments to increasing moderation of... While you can quibble with the details, the social platforms did the right thing in initially...

Tesla CEO Elon Musk. Photo by Bloomberg

The Role of Tech Founders in Stock Performance: The Information’s Tech Briefing

By Martin Peers · Oct 19, 2020 5:30pm PDT · 1 comment

Are founder-led firms necessarily better bets for investors than those led by managers? An article on Reuters concluded as much, reporting that “Major founder-led tech firms have seen their share prices double so far this year, comfortably beating a 7.8% gain for the S&P 500 index” and also doing better than those led by hired... Are founder-led firms necessarily better bets for investors than those led by managers? An...

Rep. David Cicilline. Photo: Bloomberg

News Publishers Gain Political Support in Fight With Google, Facebook

By Christopher Stern · Oct 19, 2020 5:22pm PDT

For more than a decade, the world’s largest news publishers, such as News Corp and Axel Springer, have attempted, mostly without success, to get Facebook and Google to pay the media companies for headlines and other news content that appears on the tech companies’ platforms. Now, the momentum is suddenly shifting in favor of the... For more than a decade, the world’s largest news publishers, such as News Corp and Axel...

Elon Musk speaks during the Tesla China-Made Model 3 Delivery Ceremony at the company's Gigafactory in Shanghai, China, in January 2020. Photo by Bloomberg.

How Tesla is Winning From the U.S.-China Trade War

By Juro Osawa · Oct 19, 2020 6:02am PDT · 1 comment

Elon Musk speaks during the Tesla China-Made Model 3 Delivery Ceremony at the company's Gigafactory in Shanghai, China, in January 2020. Photo by Bloomberg.

How Tesla is Winning From the U.S.-China Trade War

By Juro Osawa · Oct 19, 2020 6:02am PDT · 1 comment

On Nov. 1 last year, Tesla invited executives from dozens of China-based automotive parts suppliers to the carmaker’s new Shanghai factory, where its first made-in-China Model 3 sedans were about to roll out. At the event, Roshan Thomas, Tesla’s senior executive in charge of managing suppliers, gave a speech explaining that Tesla... On Nov. 1 last year, Tesla invited executives from dozens of China-based automotive parts...

Brynne Kennedy. Photo by Byrnne Kennedy for Congress

From Tech Founder to Politician—Meet Brynne Kennedy

By Jessica E. Lessin · Oct 17, 2020 7:45am PDT

While tech leaders with opinions about politics are a dime a dozen, those who actually jump in and run for office are very rare—which is why I was intrigued when I learned that Brynne Kennedy was running for Congress. Kennedy is clearly ahead of her time as both a female executive in tech and the founder of a company that makes software to... While tech leaders with opinions about politics are a dime a dozen, those who actually jump in...

Amazon delivery trucks in Richmond, Calif. on Tuesday. Photo by Bloomberg

Amazon’s Less Than Prime Day: The Information’s Tech Briefing

By Martin Peers · Oct 16, 2020 6:01pm PDT

Has Amazon’s Prime Day shopping event peaked? There were some hints this week that the two-day bargain extravaganza—held in October instead of its usual July date—wasn’t as bountiful for the retail giant as it has been in past years. For one thing, as Citigroup analyst Jason Bazinet reportedly pointed out, Amazon... Has Amazon’s Prime Day shopping event peaked? There were some hints this week that the...

Hopin's virtual events software. Screen shot provided by Hopin

Virtual Events Startup Hopin Discusses Valuation As High as $2 Billion in New Round

By Kate Clark · Oct 16, 2020 4:33pm PDT · 1 comment

The pandemic-related shutdown of conferences could make one startup a tech unicorn in a fraction of the time it normally takes to pass that $1 billion valuation milestone. Only four months after Hopin, a startup that powers online events, was valued by investors at around $350 million, the company has held discussions with venture capital firms... The pandemic-related shutdown of conferences could make one startup a tech unicorn in a fraction...

The Information’s 411 — Working Remotely, or Not Remotely Working?

By Tom Dotan · Oct 16, 2020 2:34pm PDT

The Information’s 411 — Working Remotely, or Not Remotely Working?

By Tom Dotan · Oct 16, 2020 2:34pm PDT

Tom talks to Kate Clark about the state of funding for female-led startups, which has sunk even lower during the pandemic. We also interview Tracy Chou, founder of Blockparty, and Sara Mauskopf, co-founder of Winnie, who discussed their experiences raising money for their startups. And Cory talked to Nick Bastone and Humu’s Liz Fosslien to... Tom talks to Kate Clark about the state of funding for female-led startups, which has sunk even...

The People With Power at Stripe as It Gets Closer to an IPO

By Kate Clark · Oct 16, 2020 6:01am PDT

Stripe CEO Patrick Collison has said the e-commerce payments company he and his brother co-founded 10 years ago needs to finish “core pillars of the product” before it goes public. In the meantime, the Collisons have been hiring senior Amazon and General Motors executives with the critical experience to do just that. The... Stripe CEO Patrick Collison has said the e-commerce payments company he and his brother...

Twitter's San Francisco headquarters. Photo by Bloomberg

Twitter Is Democrat Heaven: The Information’s Tech Briefing

By Martin Peers · Oct 15, 2020 5:31pm PDT

A study out today by the Pew Research Center on Twitter use concluded that just 10% of users produced an astounding 92% of all Tweets—and 69% of the “highly prolific users” are Democrats. That should put to rest any illusions that anyone has that Twitter represents anything like the real world. Breaking down the numbers even... A study out today by the Pew Research Center on Twitter use concluded that just 10% of users...

Snap CEO Evan Spiegel. Photo by Bloomberg

Ad Boycott of Facebook Proved to Be Boon to Snap and Pinterest, Data Shows

By Tom Dotan · Oct 15, 2020 11:50am PDT · 1 comment

When Facebook reports third-quarter earnings later this month, the results are expected to show that the summer advertiser boycott had little discernible impact on its advertising revenues. But what was likely crumbs falling from the table for Facebook appears to have been a feast for its smaller rivals, Snap and Pinterest. Snap in particular... When Facebook reports third-quarter earnings later this month, the results are expected to show...

The Rise of ‘Retention Rates,’ the Software Metric Investors Are Obsessing Over

By Kevin McLaughlin · Oct 15, 2020 6:00am PDT · 2 comments

The Rise of ‘Retention Rates,’ the Software Metric Investors Are Obsessing Over

By Kevin McLaughlin · Oct 15, 2020 6:00am PDT · 2 comments

When database startup Snowflake filed for an initial public offering in late August, investors honed in on one measure of its performance: net revenue retention rate, which reflects a company’s ability to keep customers and get them to increase their spending over time. The figure may have become the most important metric no one has heard... When database startup Snowflake filed for an initial public offering in late August, investors...