The Information

Apple CEO Tim Cook visiting a Luxshare plant in China in 2017. Photo by Luxshare

Apple to Make New Headphones in Vietnam in Shift From China

By Wayne Ma and Juro Osawa · May 19, 2020 7:01am PDT · 1 comment

Apple is about to face a big test of its ability to manufacture its devices outside China—by making a brand-new product in Vietnam. Apple has tapped factories in Vietnam to make its own forthcoming over-ear headphones, a new phase in its effort to diversify manufacturing away from China amid political and trade tensions between... Apple is about to face a big test of its ability to manufacture its devices outside...

CloudKitchens founder Travis Kalanick

Two Senior Engineers Quit Kalanick’s CloudKitchens

By Amir Efrati · May 15, 2020 3:23pm PDT

Two senior engineers who last year joined CloudKitchens, the commercial kitchen startup founded by former Uber CEO Travis Kalanick, abruptly resigned this week, The Information has learned. Their departures raise questions about whether the company could lose other engineers at a time when it is seeking to significantly expand its... Two senior engineers who last year joined CloudKitchens, the commercial kitchen startup founded...

Devoted Health cofounder Todd Park when he was the U.S. chief technology officer in 2013. Photo: Bloomberg

Devoted Health Valued at $3 Billion With New Funds

By Kate Clark · May 15, 2020 1:42pm PDT · 1 comment

Devoted Health, a startup co-founded by serial health-tech entrepreneurs Ed and Todd Park, is raising at least $200 million in a deal that values the company at more than $3 billion, according to two people familiar with the matter.The round is not yet closed as the company plans to keep raising additional capital, one person said. The company... Devoted Health, a startup co-founded by serial health-tech entrepreneurs Ed and Todd Park, is...

Disney will bring a movie version of "Hamilton" to Disney+ in July. Photo by AP

Disney Streaming Unit Slows Hiring Despite Subscriber Gains

By Tom Dotan · May 14, 2020 11:03am PDT

Disney will bring a movie version of "Hamilton" to Disney+ in July. Photo by AP

Disney Streaming Unit Slows Hiring Despite Subscriber Gains

By Tom Dotan · May 14, 2020 11:03am PDT

The Walt Disney Co.’s new streaming service may be the best thing going right now at the struggling entertainment giant, which is facing a once-in-a-generation crisis that has ravaged its movie, theme park and cruise businesses. But the company hasn’t spared the division that includes the fast-growing service—Disney+—from... The Walt Disney Co.’s new streaming service may be the best thing going right now at the...

Andrew Farah, co-founder and CEO of Density. Photo provided by Density

A Sales Surge for Tech That Helps Social Distancing in Offices

By Kevin McLaughlin · May 14, 2020 7:01am PDT · 2 comments

As more businesses start planning to reopen their workplaces, technology for managing office space is poised to shed its backwater status. Makers of workplace management technology—which businesses rely on to use their spaces more efficiently—are now seeing a boom in sales from companies who need expert input... As more businesses start planning to reopen their workplaces, technology for managing office...

Rick Osterloh and Mario Queiroz. Photos by Bloomberg. Illustration by Mike Sullivan.

Google’s Pixel Division Undergoes Shakeup After Disappointing Launch

By Nick Bastone · May 13, 2020 7:01am PDT · 11 comments

When Google announces its latest Pixel smartphone in the coming weeks, it will be without some key architects of its previous model, which drew rare internal criticism from the company’s head of hardware, Rick Osterloh, The Information has learned.The mastermind behind Google’s Pixel camera, Marc Levoy, who last year showed off his... When Google announces its latest Pixel smartphone in the coming weeks, it will be without some...

Dara Khosrowshahi, CEO of Uber, in June 2019. Photo by Bloomberg

Uber Managers Asked for Pay Cut to Save Jobs. The CEO Said No

By Amir Efrati · May 12, 2020 3:07pm PDT · 7 comments

In late April, Uber CEO Dara Khosrowshahi called a meeting of the executives in charge of the ride-hailing firm’s nearly 4,000-person engineering department to tell them they needed to plan to cut headcount by 20%. Some of the engineering leaders responded that they and other managers would be willing to cut their own pay if it meant they... In late April, Uber CEO Dara Khosrowshahi called a meeting of the executives in charge of the...

Workers from Instacart at a grocery store in Frederick, Maryland, last year. Photo: AP

Instacart Weighs New Financing That Would Boost Valuation by at Least 50%

By Amir Efrati · May 12, 2020 12:21pm PDT · 1 comment

Workers from Instacart at a grocery store in Frederick, Maryland, last year. Photo: AP

Instacart Weighs New Financing That Would Boost Valuation by at Least 50%

By Amir Efrati · May 12, 2020 12:21pm PDT · 1 comment

Instacart, the grocery delivery company whose business has surged amid Covid-19 lockdowns, is in talks to raise several hundred million dollars from existing and new investors, according to two people with knowledge of the situation.The deal would put the company’s pre-money valuation at between $12 billion and $14 billion, one of these... Instacart, the grocery delivery company whose business has surged amid Covid-19 lockdowns, is in...

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...

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...

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...

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

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 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...

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...

Sundar Pichai, CEO of Alphabet and Google, left, and Eric Yuan, CEO of Zoom. Photos by Bloomberg

Google Engineers Flirted With a Zoom Acquisition—Before a Push to Beat It

By Kevin McLaughlin · May 4, 2020 7:01am PDT · 1 comment

Sundar Pichai, CEO of Alphabet and Google, left, and Eric Yuan, CEO of Zoom. Photos by Bloomberg

Google Engineers Flirted With a Zoom Acquisition—Before a Push to Beat It

By Kevin McLaughlin · May 4, 2020 7:01am PDT · 1 comment

Not long ago, Google and Zoom Video Communications had cordial relations. In 2018, several thousand Google employees were using Zoom as an alternative to Google’s own videoconferencing product, said a person with direct knowledge of the situation. The popularity of Zoom within Google even prompted some Google Cloud engineers to discuss... Not long ago, Google and Zoom Video Communications had cordial relations. In 2018, several...

Apple Watch announcement in September 2019. Photo by Bloomberg.

The ‘Old Dogs’ Who Build Apple Products

By Wayne Ma · Apr 30, 2020 7:01am PDT · 5 comments

Apple can’t get enough of Mike Janicek. The firm needed him so much that he worked at the tech giant three times over four decades. First, in 1984, he worked as a contractor at an Apple keyboard and mouse factory. The second time, between 2002 and 2009, he supervised the manufacturing of connectors and cases. He rejoined a third time in... Apple can’t get enough of Mike Janicek. The firm needed him so much that he worked at the...

Uber CTO Thuan Pham. Photo by Bloomberg

Uber Discusses Plan to Lay Off About 20% of Employees

By Amir Efrati · Apr 28, 2020 12:48pm PDT · 5 comments

Executives at Uber are discussing plans to cut around 20% of the company’s employees, as it copes with a sharp decline in its ride-hailing business due to the coronavirus pandemic, The Information has learned.Layoffs of that magnitude, which haven’t been finalized but could be announced in stages in the coming weeks, could result in... Executives at Uber are discussing plans to cut around 20% of the company’s employees, as it...

Yelitza Esteva, a contractor for Instacart, bagging groceries for an order in Florida this month. Photo by AP

Instacart Swings to First Profit as Pandemic Fuels Surge in Grocery Delivery

By Amir Efrati · Apr 27, 2020 7:01am PDT · 4 comments

Instacart’s financial picture has been completely redrawn by the pandemic.In recent weeks, the online grocery delivery service has turned profitable for the first time ever, thanks to skyrocketing sales. Instacart sold about $700 million worth of groceries per week in the first two weeks of April, up 450% on sales in December, according to... Instacart’s financial picture has been completely redrawn by the pandemic.In recent weeks,...

Airtable CEO Howie Liu. Photo by Erin Beach

Airtable May Triple Valuation as Top Startups Attract Top Dollar, Even in Downturn

By Kate Clark · Apr 24, 2020 1:10pm PDT

Airtable CEO Howie Liu. Photo by Erin Beach

Airtable May Triple Valuation as Top Startups Attract Top Dollar, Even in Downturn

By Kate Clark · Apr 24, 2020 1:10pm PDT

As some startups implore venture capitalists for lifelines, others are negotiating deals at eye-popping valuations without offering so much as a pitch deck. Airtable, which makes cloud-based software for collaboration, has spoken to investors about raising at least $50 million in a round that would value the business at between $2.5 billion... As some startups implore venture capitalists for lifelines, others are negotiating deals at...