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

Art by Matt Vascellaro.

Amazon Studios’ New Power Player

By Tom Dotan and Priya Anand · Nov 2, 2017 7:01am PDT

Earlier this year, as Hollywood agents and producers struggled to divine a programming strategy coming from Amazon Studios and its leader Roy Price, some employees at the studio quietly delivered a message to the creative community: Avoid the confusion and bring your projects to Sharon, one industry executive recalled.It was a reference to... Earlier this year, as Hollywood agents and producers struggled to divine a programming strategy...

VMWare CEO Pat Gelsinger. Photo: Bloomberg

VMware to Acquire VeloCloud, Doubling Down on Networking

By Kevin McLaughlin and Sarah Kuranda · Nov 1, 2017 3:05pm PDT

VMware has struck a deal to acquire software-based networking startup VeloCloud Networks, according to a person close to VeloCloud, in a move that is likely to escalate VMware’s rivalry with Cisco Systems. Terms of the deal couldn’t be learned. For VMware, a data center software company, acquiring VeloCloud is a sign of its... VMware has struck a deal to acquire software-based networking startup VeloCloud Networks,...

Source: The Information

Subscriber Survey

Subscribers Say Big Tech Is Too Powerful

By Wendy Pollack and Mike Sullivan · Nov 1, 2017 11:25am PDT · 5 comments

Large technology companies like Apple and Facebook wield too much power, say more than two-thirds of The Information subscribers responding to our latest survey. A nearly equal share believe big tech should face heavier regulation than it does now.The survey was undertaken last month, ahead of this week’s congressional hearings about the... Large technology companies like Apple and Facebook wield too much power, say more than two-thirds...

Facebook General Counsel Colin Stretch at Tuesday's Senate hearing. Photo by Bloomberg.

The Cost of Facebook’s Political Baggage

By Cory Weinberg · Nov 1, 2017 7:02am PDT · 5 comments

Facebook General Counsel Colin Stretch at Tuesday's Senate hearing. Photo by Bloomberg.

The Cost of Facebook’s Political Baggage

By Cory Weinberg · Nov 1, 2017 7:02am PDT · 5 comments

When WhatsApp surveyed people in India last year about their perceptions of the firm, it discovered that few knew WhatsApp was owned by Facebook, according to two people briefed on the survey. WhatsApp was happy about that because Facebook’s brand was hurt in India after a 2015 political controversy involving its free-internet efforts. ... When WhatsApp surveyed people in India last year about their perceptions of the firm, it...

Virginia Sen. Mark Warner, during a news conference in Washington, D.C., on Oct. 19. Photo: Bloomberg

The People to Watch as Facebook, Google Face Congress

By Cory Weinberg · Oct 31, 2017 10:02am PDT

Facebook, Google and Twitter are expected to face tough questions on Capitol Hill today and Wednesday about how their platforms might have been used to manipulate voters. The job of addressing lawmakers’ concerns will fall to a group of attorneys who have relatively low profiles in Silicon Valley.The general counsels for Facebook, Google... Facebook, Google and Twitter are expected to face tough questions on Capitol Hill today and...

Source: Company Filings

Amazon’s Properties Tripled

By Priya Anand · Oct 31, 2017 7:02am PDT · 2 comments

Amazon.com’s purchase of Whole Foods prompted lots of talk that it has become a brick and mortar retailer. But Amazon already had a huge amount of property in North America, thanks to its expansion in e-commerce and cloud computing. And its properties are increasingly crowded with workers.Amazon’s North American properties more than... Amazon.com’s purchase of Whole Foods prompted lots of talk that it has become a brick and...

A Senate Judiciary Committee hearing in May on Russian interference in the 2016 elections. Photo by AP

Catching Up on Wednesday’s Facebook, Google, Twitter Hearings

By The Information Staff · Oct 30, 2017 12:13pm PDT · 4 comments

The tech world’s focus this week will be on testimony by executives from Facebook, Google and Twitter about Russian influence on last year’s election. To help our readers sort through—and catch up on—the hours of testimony, The Information in association with POLITICO will be holding a conference call for subscribers.The... The tech world’s focus this week will be on testimony by executives from Facebook, Google...

Deliv CEO Daphne Carmeli. Photo by Bloomberg

Amazon’s Growth Speeds Demand for Deliv

By Priya Anand · Oct 30, 2017 10:52am PDT · 1 comment

Deliv CEO Daphne Carmeli. Photo by Bloomberg

The Big Interview

Amazon’s Growth Speeds Demand for Deliv

By Priya Anand · Oct 30, 2017 10:52am PDT · 1 comment

Daphne Carmeli, CEO of same-day delivery startup Deliv, freely admits that demand for her business is driven almost entirely by retailers’ fear of Amazon. Now that the e-commerce giant is offering delivery as fast as one hour, brick-and-mortar retailers such as Macy’s and Best Buy are increasingly using Deliv to offer speedy delivery... Daphne Carmeli, CEO of same-day delivery startup Deliv, freely admits that demand for her...

Visualization by Mike Sullivan

The People Who Matter at Didi Chuxing

By Yunan Zhang · Oct 30, 2017 7:01am PDT

Didi Chuxing, which absorbed Uber’s China operations last year, lately has taken a page from Uber’s early management playbook. Just as Uber hired a number of Goldman Sachs bankers in its early days to work in operations, Didi has lately installed veterans of Western investment banks in key positions—including several Goldman... Didi Chuxing, which absorbed Uber’s China operations last year, lately has taken a page...

The Weekly Digest

The Information You Missed This Week

By The Information Staff · Oct 28, 2017 8:02am PDT

Good Morning!News is Apple had to dumb down its FaceID in order to release the product on time. Now the phone thinks all VCs look exactly the same. Good Morning!News is Apple had to dumb down its FaceID in order to release the product on time....

The Information’s 411 — A Sad Spectacle

By Tom Dotan · Oct 27, 2017 12:48pm PDT

Reed and Tom explain how Snap way overshot their expectations for Spectacles sales. Serena talks about boardrooms avoiding discussions around sexual harassment and the investigation within DFJ. Reed and Tom explain how Snap way overshot their expectations for Spectacles sales. Serena talks...

The Case Against Video

By Jessica E. Lessin · Oct 27, 2017 7:02am PDT · 7 comments

The Case Against Video

By Jessica E. Lessin · Oct 27, 2017 7:02am PDT · 7 comments

Any way you slice it, a golden age of video is upon us. Faster mobile networks, lower production costs and a thirst for TV ad dollars are driving both video supply and demand. But the euphoria is covering up an important point: Video is a tremendous medium for occupying time, aka serving the “boredom” market. But it is a terrible... Any way you slice it, a golden age of video is upon us. Faster mobile networks, lower production...

Photo by Flickr/Open Grid Schedular

Airbnb China Chief Was Ousted Over Relationship With Subordinate

By Yunan Zhang and Cory Weinberg · Oct 26, 2017 7:45am PDT · 1 comment

Hong Ge, vice president of Airbnb’s China division, resigned earlier this week after the company learned of allegations about an inappropriate personal relationship between him and a subordinate, a person briefed on the decision said.Mr. Ge, who reported directly to CEO Brian Chesky as Airbnb’s first China chief, left after about... Hong Ge, vice president of Airbnb’s China division, resigned earlier this week after the...

Dell Technologies CEO Michael Dell. Photo by Bloomberg.

Dell’s EMC Bet Looking Shaky

By Kevin McLaughlin and Amir Efrati · Oct 26, 2017 7:01am PDT · 1 comment

When Michael Dell bought EMC a year ago for $67 billion, he was betting he could defy the shift towards public cloud services like Amazon Web Services that’s eroding sales of older hardware like EMC’s data storage equipment. He hoped to sell Dell’s servers with EMC’s equipment and dominate the market for traditional... When Michael Dell bought EMC a year ago for $67 billion, he was betting he could defy the shift...

Snap Chief Strategy Officer Imran Khan on the floor of the New York Stock Exchange when Snap went public in March. Photo by Bloomberg.

Why Snap Is Putting a Lid on Costs

By Tom Dotan · Oct 25, 2017 7:01am PDT · 2 comments

In the summer of 2016, a team of Snap engineers began building a feature known as Snap Map, which would display people’s locations and publicly posted stories on a map. Then, a month before its release to the public last June, Snap acquired Zenly, a French company that had a similar mapping product.The news took many people who worked on... In the summer of 2016, a team of Snap engineers began building a feature known as Snap Map, which...

DFJ founding partner Steve Jurvetson. Photo by Bloomberg.

DFJ Investigating Allegations About Jurvetson

By Serena Saitto and Amir Efrati · Oct 24, 2017 4:23pm PDT · 8 comments

DFJ founding partner Steve Jurvetson. Photo by Bloomberg.

DFJ Investigating Allegations About Jurvetson

By Serena Saitto and Amir Efrati · Oct 24, 2017 4:23pm PDT · 8 comments

DFJ, the 32-year-old venture capital firm that backed Elon Musk’s Tesla and SpaceX, has hired an external law firm to investigate allegations against founding partner Steve Jurvetson, the firm said.The Menlo Park, Calif. based firm started the investigation in August after rumors began circulating about Mr. Jurvetson, prompting press... DFJ, the 32-year-old venture capital firm that backed Elon Musk’s Tesla and SpaceX, has...

Uber's headquarters in San Francisco. Photo by AP.

Two Women File Complaints Against Uber Over Unequal Pay

By Priya Anand · Oct 24, 2017 9:08am PDT

Two women have filed complaints with the state of California against Uber for allegedly paying them less than men in similar roles. The previously unreported claims were filed with the California Labor and Workforce Development Agency this summer through the Private Attorneys General Act, in what is typically the first step toward a public... Two women have filed complaints with the state of California against Uber for allegedly paying...

Sources: theBoardlist and Qualtrics

Boards Stay Silent on Sexual Harassment

By Serena Saitto · Oct 24, 2017 7:01am PDT · 8 comments

Only 23% of company boards have discussed sexual harassment or gender discrimination in recent months, according to a survey of 600 company directors done in August. And only 12% of boards have taken any action to address the issues in their companies. The findings suggest that an onslaught of sexual harassment allegations against business... Only 23% of company boards have discussed sexual harassment or gender discrimination in recent...

Photo: Bloomberg

After Beating Uber, Didi Faces New Rivals in China

By Yunan Zhang, Juro Osawa and Shai Oster · Oct 23, 2017 10:00am PDT · 2 comments

Chinese ride-hailing service Didi Chuxing is facing fresh competition at home, as companies such as on-demand services app Meituan-Dianping see an opportunity to leverage their huge customer base in new areas. When Uber abandoned China last year, many thought Didi had won the battle to become the country’s dominant ride-hailing service.... Chinese ride-hailing service Didi Chuxing is facing fresh competition at home, as companies such...

Customers standing outside Snap's Spectacles store in New York in December last year. Photo by Bloomberg.

Snap’s Misfire on Spectacles

By Tom Dotan and Reed Albergotti · Oct 23, 2017 7:00am PDT · 4 comments

Customers standing outside Snap's Spectacles store in New York in December last year. Photo by Bloomberg.

Snap’s Misfire on Spectacles

By Tom Dotan and Reed Albergotti · Oct 23, 2017 7:00am PDT · 4 comments

Snap badly overestimated demand for its Spectacles and now has hundreds of thousands of unsold units sitting in warehouses, either fully assembled or in parts, according to two people close to the company. The disclosure undercuts Snap CEO Evan Spiegel’s recent contention that Spectacles sales of more than 150,000 had topped the... Snap badly overestimated demand for its Spectacles and now has hundreds of thousands of unsold...