Hello. We've got an update on the ongoing turmoil at Activision Blizzard. Plus, after years of making earbuds smaller and less conspicuous, wired headphones are cool again.
Let's get to it.
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1. Activision's CEO reportedly knew about sexual-misconduct allegations for years. According to a bombshell report from The Wall Street Journal, Activision Blizzard CEO Bobby Kotick didn't inform the company's board about various reports, including about alleged rapes at the company. Some key details from the report:
- In at least one case, Kotick is said to have intervened to keep a studio head who was accused of harassment — despite the company's HR recommendation that he be fired.
- Kotick has also been accused by women of mistreatment, per the report. In 2006, one of his assistants said he left her a voicemail threatening to have her killed. He settled out of court.
The report comes months after the state of California filed a lawsuit against the video game giant. A two-year investigation found it had a "pervasive frat boy" culture, with women facing "constant sexual harassment," according to the suit.
- The company fell as much as 7% on Tuesday following the report, and a group of workers said it was staging a walkout and demanded that Kotick "be replaced as CEO."
Here's what else you need to know.
In other news:
2. JPMorgan is suing Tesla for $162 million. The lawsuit alleges the electric carmaker "flagrantly" breached a contract related to stock warrants. Here, we explain what that means (and what it has to do with Elon Musk's notorious tweets).
3. Uber Eats wants to deliver groceries in as little as 15 minutes. Ultra-fast delivery is getting competitive, and Uber execs want a piece of the action — and said they're eyeing partnerships with other delivery players like Gopuff to gain a foothold in the space. Here's what else execs told us.
4. Peloton is suing two of its rivals. The company has hit fitness rivals Echelon and iFit Health with lawsuits, claiming they copied its home-workout tech and tried to get a "free ride" off its "innovative technology." More on that here.
5. Female founders share how they avoided gender biases when pitching VCs. Some prominent female founders in Europe said they wouldn't wear pink or mention their children while meeting with male venture capitalists. They describe the "pale, male, and Yale" problem among investors.
6. Prosecutors say Facebook deleted crucial evidence in a crackdown on extremist groups. In 2020, Facebook deleted accounts for the New Mexico Civil Guard, a militia group. Now, prosecutors are asking the company to hand over that information so they can learn members' identities. Everything we know so far.
7. Google Cloud's CEO is shaking up the unit as it races to catch Amazon and Microsoft. Cloud boss Thomas Kurian recently reshuffled leaders in an effort to catch up with rivals. We viewed internal data to build an interactive org chart of the 155 execs and staff helping Kurian lead the division — take a look at our exclusive org chart.
8. Amazon has slashed the cost of its Go cashierless store technology by 96%. Since 2017, the internet has continually reduced the expense of operating its in-person stores. Read more about how it has made the massive reduction.
9. Hyundai revived an iconic 1980s model as a sleek electric car. The Grandeur EV's exterior screams 1986, but it's been updated with screens, red velvet seats, leather trim, and a secret spot for your watch. Check out the retro EV refitted for the 21st century.
10. Gen Z is making corded headphones cool again. It's partially an aesthetic thing: corded headphones radiate a cool, grungy, early 2000s vibe. But it's also a statement — they don't want to look like Patagonia-wearing "finance bros." Why Gen Z is resurrecting corded headphones.
What we're watching today:
- "Tiger King" season two starts streaming on Netflix.
- Sweetgreen is expected to announce its final IPO pricing.
- Earnings are expected from NVIDIA, Cisco, Target, and more. Keep up with earnings here.
- President Biden will visit GM's electric vehicle assembly plant in Detroit.
Curated by Jordan Parker Erb in New York. (Feedback or tips? Email [email protected] or tweet @jordanparkererb.) Edited by Michael Cogley in London.