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

Traders on the floor of the New York Stock Exchange last June. Photo by Bloomberg

IPO Rumblings: The Information’s Tech Briefing

By Martin Peers · May 11, 2020 7:31pm PDT

It’s no surprise that the market for initial public offerings has been one of the casualties of the economic upheaval of the past couple of months. But in technology, optimism is an endlessly renewable resource, and it seems to be fueling hopes for a re-opening of the IPO window in the coming months. One example is Vroom, an online... It’s no surprise that the market for initial public offerings has been one of the...

Microsoft CEO Satya Nadella. Photo by Bloomberg

Microsoft’s Secret Ally Against Amazon in Cloud Deal: Oracle

By Christopher Stern · May 11, 2020 10:58am PDT

Shortly after Microsoft’s come-from-behind win over Amazon in a $10 billion Pentagon cloud computing contract last October, its CEO, Satya Nadella, credited the victory to the software giant’s decision to rise above politics and focus on the needs of the client.What Nadella didn’t mention is that Microsoft for over a year... Shortly after Microsoft’s come-from-behind win over Amazon in a $10 billion Pentagon cloud...

Henrique Dubugras, co-founder and chief executive office of Brex. Photo by Bloomberg

As Recession Looms, Brex Stockpiles Cash, Cuts Credit

By Kate Clark · May 11, 2020 7:00am PDT

Before the coronavirus outbreak, Brex had become the poster child of Silicon Valley largesse. By offering fellow startups high-limit charge cards, its 24-year-old founders had attracted illustrious investors like Kleiner Perkins, rocketing Brex to a $2.6 billion valuation. Flush with cash, it blanketed downtown San Francisco with advertisements,... Before the coronavirus outbreak, Brex had become the poster child of Silicon Valley largesse. By...

Airbnb CEO Brian Chesky. Photo by Bloomberg

The Truth About Airbnb and Uber Layoffs

By Jessica E. Lessin · May 9, 2020 7:47am PDT · 3 comments

Airbnb CEO Brian Chesky. Photo by Bloomberg

The Truth About Airbnb and Uber Layoffs

By Jessica E. Lessin · May 9, 2020 7:47am PDT · 3 comments

When Cory broke the news that Airbnb was planning to lay off 25% of its staff this week, I wasn’t surprised by the cuts. The pandemic has wiped out demand for travel. It has been clear that no travel business would be spared from cost-cutting. But the scope of the cuts—a quarter of the company or some 1,900 people—did... When Cory broke the news that Airbnb was planning to lay off 25% of its staff this week, I...

The Information’s 411 — Uber in a Pandemic

By Tom Dotan · May 8, 2020 6:48pm PDT

Amir joins to talk all things ride hailing, including why Uber and Lyft had to undergo massive layoffs. We also explain how Uber's side businesses like food delivery and bikes are on diverging paths during the crisis. Amir joins to talk all things ride hailing, including why Uber and Lyft had to undergo massive...

Tesla's Fremont, Calif. factory. Photo by Bloomberg

Navigating State-by-State Reopening Rules: The Information’s Tech Briefing

By Martin Peers · May 8, 2020 6:21pm PDT

Every day brings news of companies gingerly trying to reopen for business amid a patchwork of different state rules. Today, we learned that Apple plans to reopen a handful of U.S. stores next week, in Idaho, South Carolina, Alabama and Alaska, where local rules allow. It’s another reminder of the brave new world we now inhabit where... Every day brings news of companies gingerly trying to reopen for business amid a patchwork of...

Illustration by Danielle Davis

Covid-19 Crashes the Class of 2020

By Zoë Bernard · May 8, 2020 7:02am PDT · 3 comments

It wasn’t supposed to be this way. Until a few months ago, college seniors were looking forward to entering a robust economy. Many were interviewing for jobs and internships, and some had already secured them. But with weeks or days left in their final year of college, the class of 2020 is facing bleak employment prospects, even in... It wasn’t supposed to be this way. Until a few months ago, college seniors were looking...

The Nasdaq in New York. Photo by Bloomberg

Nasdaq’s Milestone: The Information’s Tech Briefing

By The Information Staff · May 7, 2020 6:34pm PDT

The Nasdaq in New York. Photo by Bloomberg

Nasdaq’s Milestone: The Information’s Tech Briefing

By The Information Staff · May 7, 2020 6:34pm PDT

We hit a milestone of sorts today. The Nasdaq rallied back to the point it was at on Dec. 31, good news for tech investors. After all, flat is the new up!What’s more noteworthy is how much the Nasdaq has outperformed the broader market, which is still down 11% for the year. It’s another reflection of how big tech companies are... We hit a milestone of sorts today. The Nasdaq rallied back to the point it was at on Dec. 31,...

Zoox CEO Aicha Evans. Photo by Bloomberg

Zoox, Self-Driving Car Startup Valued at $2.7 Billion, Is for Sale

By Amir Efrati · May 7, 2020 11:06am PDT

Zoox, one of the most ambitious self-driving car developers that was valued at $2.7 billion in 2018, is contemplating a sale.The startup, which has raised $1 billion in equity, has hired Qatalyst Partners to help it find a buyer, said two people familiar with the situation. At the same time, however, it is also trying to raise fresh equity in a... Zoox, one of the most ambitious self-driving car developers that was valued at $2.7 billion in...

Stephen Zhu. Photo by Didi.

The Big Interview

Exclusive: Top Didi Executive Outlines How Ride-Hailing Will Bounce Back

By Yunan Zhang and Shai Oster · May 7, 2020 7:01am PDT · 2 comments

After a two-month lockdown, China is coming back to life. Even without a big marketing push or substantial discounts, Didi Chuxing has seen use of its ride-hailing apps recover to about 70% of their levels before Covid-19, as The Information previously reported. But Didi’s senior vice president Stephen Zhu hints that the West may not... After a two-month lockdown, China is coming back to life. Even without a big marketing push or...

Airbnb CEO Brian Chesky. Photo by Bloomberg

Curbing Tech Ambitions: The Information’s Tech Briefing

By Martin Peers · May 6, 2020 6:13pm PDT

Today brought so many tech headlines it’s hard to know where to begin. Uber confirmed the layoffs Amir previously reported. And then there was more big news from Facebook, as well as first quarter updates from Lyft and Peloton. I've been wondering lately whether Silicon Valley companies, as they downsize, are going to pare back... Today brought so many tech headlines it’s hard to know where to begin. Uber confirmed the...

Endeavor CEO Ari Emanuel. Photo by Bloomberg.

Endeavor Looks to Sell Stake in Epic Games

By Jessica Toonkel · May 6, 2020 10:43am PDT · 5 comments

Endeavor CEO Ari Emanuel. Photo by Bloomberg.

Endeavor Looks to Sell Stake in Epic Games

By Jessica Toonkel · May 6, 2020 10:43am PDT · 5 comments

Entertainment firm Endeavor Group is looking to sell part of its minority stake in videogame firm Epic Games as it seeks to raise cash, say people familiar with the situation. Endeavor, which owns the WME talent agency as well as extensive live-event businesses, has been hit hard by the coronavirus pandemic.The sale could raise as much as... Entertainment firm Endeavor Group is looking to sell part of its minority stake in videogame firm...

Art by Sam Lessin

Modest Proposals

How Google and Apple Need to Play the Covid Contact Tracing Debate’s Next Phase

By Sam Lessin · May 6, 2020 7:01am PDT · 4 comments

The challenge platform companies face in managing the balance between privacy and security is a perennial issue for the tech industry. Nowhere is this challenge more immediate or stark, however, than in what we see unfolding with Covid-19 digital contact tracing.There is a clear choice to make. Contact tracing capabilities can be built in a way... The challenge platform companies face in managing the balance between privacy and security is a...

Disney's headquarters in Burbank, Calif. Photo by Bloomberg

Disney’s Dividend Symbolism: The Information’s Tech Briefing

By Martin Peers · May 5, 2020 6:36pm PDT

Greetings!We got more evidence today that the pandemic is likely to accelerate the shift in economic power from entertainment to tech. Disney, the mightiest of the Hollywood giants, suspended its half-yearly dividend, symbolizing just how much entertainment has been devastated by the current crisis. Last week, when big tech companies reported... Greetings!We got more evidence today that the pandemic is likely to accelerate the shift in...

Rony Abovitz, founder and CEO of Magic Leap, arrives at Allen & Co. in 2017. Photo by Bloomberg

Magic Leap in Talks to Raise Money From ‘Major Health Care Company,’ CEO Tells Staff

By Alex Heath · May 5, 2020 1:17pm PDT · 3 comments

Magic Leap is in talks to secure funding from a health care company, according to emails CEO Rony Abovitz sent to staff. The capital could save the highly valued startup from making further cuts to its already diminished workforce. Abovitz said last week that Magic Leap signed a term sheet and was in advanced negotiations with “a major... Magic Leap is in talks to secure funding from a health care company, according to emails CEO Rony...

Airbnb CEO Brian Chesky. Photo: Bloomberg

Airbnb to Cut 25% of Work Force

By Cory Weinberg · May 5, 2020 12:01pm PDT · 4 comments

Airbnb CEO Brian Chesky. Photo: Bloomberg

Airbnb to Cut 25% of Work Force

By Cory Weinberg · May 5, 2020 12:01pm PDT · 4 comments

Airbnb is planning to lay off 1,900 employees, or roughly a quarter of its total work force, CEO Brian Chesky told employees Tuesday, as the coronavirus pandemic takes a brutal toll on the travel business.Revenue this year is expected to be less than half what it was in 2019, Chesky said in a memo. The company had $4.8 billion in revenue last... Airbnb is planning to lay off 1,900 employees, or roughly a quarter of its total work force, CEO...

WarnerMedia CEO Jason Kilar. Photo by Bloomberg

AT&T Had Talks About Selling Crunchyroll

By Tom Dotan and Jessica Toonkel · May 5, 2020 11:52am PDT · 1 comment

AT&T’s WarnerMedia has had discussions about selling Crunchyroll, a streaming service that specializes in Japanese anime, according to people familiar with the matter.Possible buyers include Sony, which owns a rival anime service called Funimation and which has had discussions with WarnerMedia in recent months. There are no active... AT&T’s WarnerMedia has had discussions about selling Crunchyroll, a streaming service...

From left to right: Michael Greenfield, Peter Hollens and Jade Sherman. Art by Mike Sullivan

How YouTube Stars Are Getting Paid During the Pandemic

By Nick Bastone · May 5, 2020 7:02am PDT

Patrick Lacey, a YouTube creator who runs the 2 million subscriber TierZoo channel, was pulling in nearly $11,000 a month from ads on videos that rated wild animals as if they were players in a video game. Then came the coronavirus shutdowns and a dive in spending from advertisers. His paycheck from YouTube ads in April plunged to around $4,800.... Patrick Lacey, a YouTube creator who runs the 2 million subscriber TierZoo channel, was pulling...

Apple CEO Tim Cook. Photo by Bloomberg

Silver Lake’s Expanding Portfolio: The Information’s Tech Briefing

By Martin Peers · May 4, 2020 5:57pm PDT

Greetings!Financial crises are great opportunities for investors with cash to burn. They’re able to grab opportunities that others fear to touch. Exhibit A is Silver Lake, which on Monday spent another $750 million investing in India’s Jio Platforms, following closely Facebook’s investment in the same firm.Silver Lake’s... Greetings!Financial crises are great opportunities for investors with cash to burn. They’re...

Lime scooters in Gothenburg, Sweden, last year. Photo: AP

Uber in Talks to Lead $170 Million Lime Investment at Lower Valuation

By Cory Weinberg and Amir Efrati · May 4, 2020 4:52pm PDT · 1 comment

Lime scooters in Gothenburg, Sweden, last year. Photo: AP

Uber in Talks to Lead $170 Million Lime Investment at Lower Valuation

By Cory Weinberg and Amir Efrati · May 4, 2020 4:52pm PDT · 1 comment

Uber is in talks to lead a $170 million financing in scooter rental firm Lime, whose business has dropped sharply amid the coronavirus pandemic, executives at the startup told investors last week. The potential deal would value Lime on paper at $510 million, after the proposed cash infusion, a 79% drop from its previous valuation.Uber already... Uber is in talks to lead a $170 million financing in scooter rental firm Lime, whose business has...