WEBVTT - Netflix Growing Again and Women Leaders Quitting 0:00:02.200 --> 0:00:05.560 From the heart of where Innovation, money and power Collie 0:00:06.320 --> 0:00:10.840 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.920 --> 0:00:26.319 Emily Jay Him Emily Chang in New York. And this 0:00:26.360 --> 0:00:29.240 is Bloomberg Technology coming up in the next hour. Hollywood 0:00:29.240 --> 0:00:34.199 breathes a sigh of relief. Netflix is growing again. Expectations 0:00:34.200 --> 0:00:37.800 were low after the streaming giant lost subscriber's last quarter 0:00:37.840 --> 0:00:42.960 and suddenly pivoted to ads. What's working we'll discuss. Plus, 0:00:43.240 --> 0:00:45.920 women are leaving the top ranks of companies at higher 0:00:46.000 --> 0:00:48.440 rates than ever before, according to a new report from 0:00:48.520 --> 0:00:51.960 McKenzie and lean in what they're calling the Great Breakup 0:00:52.360 --> 0:00:56.120 later this hour, And what has Zuck been so quiet 0:00:56.200 --> 0:01:00.120 about Facebook these days? The mediceo seems to be ignoring 0:01:00.160 --> 0:01:03.320 his flagship social network to focus on luring people into 0:01:03.360 --> 0:01:06.319 a vacant virtual world. We're gonna get to all of 0:01:06.360 --> 0:01:08.280 that in a moment, but first or more on Netflix, 0:01:08.319 --> 0:01:11.160 I want to bring in Bloomberg's Lucashaw Okay, Luke Lucas 0:01:11.319 --> 0:01:14.640 are what are the good things you're seeing in this report? 0:01:14.959 --> 0:01:16.959 Why are we seeing a turnaround before a lot of 0:01:16.959 --> 0:01:20.240 these new changes have even been put into effect. Well, 0:01:20.280 --> 0:01:22.959 it's it's growing again. So it added two point four 0:01:23.000 --> 0:01:26.000 million subscribers in the most recent quarter. That's way above 0:01:26.040 --> 0:01:28.640 what they forecast, way above what Wall Street forecast. They 0:01:28.680 --> 0:01:32.000 also estimated four point five million editions in the fourth quarter. 0:01:32.400 --> 0:01:34.319 So Netflix is still going to have its worst year 0:01:34.400 --> 0:01:37.560 in a in a really long time. But people had 0:01:37.560 --> 0:01:39.880 been jittery because it had shrunk for two quarters in 0:01:39.880 --> 0:01:41.680 a row. The fact that it's growing again as seen 0:01:41.760 --> 0:01:43.880 as as a positive sign. The fact that it has 0:01:43.959 --> 0:01:45.679 all these hit shows that came out in the most 0:01:45.720 --> 0:01:48.480 recent quarter also a positive sign. If you wanted to 0:01:48.480 --> 0:01:50.200 be a bit of a pessimist, you could say, why 0:01:50.240 --> 0:01:52.320 did they only add two point four million when it 0:01:52.400 --> 0:01:54.880 had all those hits, And that's that's a legitimate question. 0:01:55.200 --> 0:01:57.160 But I think there was you know, the the response 0:01:57.200 --> 0:01:59.920 to its slowdown had been so dramatic that a lot 0:02:00.040 --> 0:02:01.960 people are just breathing a side relief that it seems 0:02:02.000 --> 0:02:04.320 to be back on a more stable trajectory. Now, what 0:02:04.400 --> 0:02:08.040 do we know about the ad supported tier and how 0:02:08.160 --> 0:02:11.400 is that impacting your outlook on how much better we 0:02:11.440 --> 0:02:15.320 can get here? Well, it's gonna release the new tier 0:02:15.760 --> 0:02:17.840 or start selling it in November. It will cost seven 0:02:17.880 --> 0:02:20.960 bucks a month. You'll watch about four or five minutes 0:02:20.960 --> 0:02:24.360 of commercials per hour. Most of the programs that people 0:02:24.400 --> 0:02:26.480 watch or care about will be available, but not all. 0:02:26.600 --> 0:02:28.880 You won't have ads in new movies, you don't have 0:02:28.919 --> 0:02:30.960 ads and kids programming, although you may have sort of 0:02:31.200 --> 0:02:33.120 a pre roll add just not ads in the middle 0:02:33.160 --> 0:02:36.000 of it. Um And so that means that Netflix's add 0:02:36.000 --> 0:02:38.640 tier is cheaper than HBO, Max's add to, or cheaper 0:02:38.639 --> 0:02:40.840 than Disney Plus is forthcoming add tier, a little more 0:02:40.880 --> 0:02:43.720 expensive than some of the smaller rivals. I think people 0:02:43.720 --> 0:02:47.280 are pretty optimistic that this should boost the company's performance 0:02:47.280 --> 0:02:49.560 in the years ahead, at the very least give people 0:02:49.560 --> 0:02:52.040 a reason not to cancel. But Netflix is saying it 0:02:52.080 --> 0:02:54.800 doesn't expect to see any material impact on a business 0:02:54.880 --> 0:02:58.320 in the fourth quarter, more likely in in the coming year. 0:02:58.400 --> 0:03:00.480 It could, of course, just be trying to manage that infectations. 0:03:00.639 --> 0:03:02.720 What about when it comes to the content strategy. I 0:03:02.840 --> 0:03:05.360 mentioned Britain is my favorite show, but but you know 0:03:05.800 --> 0:03:08.440 it's been a while, and you know they talked about 0:03:08.440 --> 0:03:11.840 Monster that the Jeffrey Dahmer's story. What are you seeing 0:03:11.919 --> 0:03:16.919 as kind of the next generation of big Netflix hits well? 0:03:16.960 --> 0:03:19.240 I think there's a perception and then there's the reality. Right, 0:03:19.240 --> 0:03:21.720 there's a perception in the marketplace right now that programming 0:03:21.720 --> 0:03:23.760 on Netflix has gotten a lot worse, that their funding 0:03:23.760 --> 0:03:26.640 lots of bad shows, bad movies, and that people have 0:03:26.720 --> 0:03:29.120 moved on to HBO Max, to Apple TV Plus, to 0:03:29.200 --> 0:03:31.640 Disney Plus. And while I think there's some truth to 0:03:31.680 --> 0:03:33.919 that that, and even Netflix has said that perhaps it's 0:03:33.960 --> 0:03:36.720 making too much, for the most part, Netflix is still 0:03:36.760 --> 0:03:38.680 making a lot of shows that people want to watch. 0:03:38.680 --> 0:03:40.760 It had Movies and The Gray Man and Purple Hearts 0:03:40.760 --> 0:03:43.040 that people watched. It had Dahmer, which was one of 0:03:43.040 --> 0:03:45.440 its biggest hits, that had the new season of Stranger Things, 0:03:45.480 --> 0:03:48.440 that had this Korean show Extraordinary Attorney Woo that was 0:03:48.560 --> 0:03:51.720 hugely popular. Uh, And so I think you'll see a 0:03:51.720 --> 0:03:55.160 lot more of that. Netflix just making a wide range 0:03:55.200 --> 0:03:57.000 of shows that appeal to people on the coast, of 0:03:57.000 --> 0:03:58.680 people in the middle of the country, people all over 0:03:58.720 --> 0:04:01.200 the world. And we'll you over time if if they're 0:04:01.240 --> 0:04:03.400 doing enough to get people to come in. I think 0:04:03.400 --> 0:04:05.840 there's also a lot of concern about how much Netflix 0:04:05.880 --> 0:04:08.760 is spending on marketing, and the company is just starting 0:04:08.800 --> 0:04:11.000 to adjust its approach there, So what are folks saying 0:04:11.040 --> 0:04:13.600 in Hollywood? Obviously Netflix isn't doing all of this in 0:04:13.640 --> 0:04:16.279 the vacuum. You've got all of the competitors out there 0:04:16.320 --> 0:04:20.960 making their changes as well well. I think people are, 0:04:21.400 --> 0:04:24.799 on the one hand, relieve because Netflix's problems had impacted 0:04:24.800 --> 0:04:26.599 the stock price and the strategy for a lot of 0:04:26.600 --> 0:04:29.960 its competitors. So even though they are rivals to one another, 0:04:30.000 --> 0:04:32.960 nobody wants to see Netflix collapse because every other company 0:04:33.320 --> 0:04:36.120 basically bet their future on streaming. At the same time, 0:04:36.160 --> 0:04:38.279 you do hear a lot of sort the whispers and 0:04:38.320 --> 0:04:41.200 snickers about the quality of programming on Netflix and how 0:04:41.200 --> 0:04:42.560 it's not as good as it used to be and 0:04:42.600 --> 0:04:44.479 not as fun as it used to be. Like I said, 0:04:44.520 --> 0:04:46.039 I think there's some truth to that, but some of 0:04:46.040 --> 0:04:48.159 that is also just a little bit of kind of 0:04:48.240 --> 0:04:51.279 lack of understanding of what people are actually watching. But 0:04:51.360 --> 0:04:54.040 we'll also see in the next few weeks what the 0:04:54.080 --> 0:04:57.080 results are like from Warner Brothers, Discovery with HBO, Max, 0:04:57.279 --> 0:05:00.719 from Disney with Disney Plus. Unfortunately don't really yet numbers 0:05:00.720 --> 0:05:04.640 for Apple TV and an Amazon broken out, but the 0:05:04.960 --> 0:05:07.920 positive results for Netflix should be a sign that if 0:05:07.960 --> 0:05:10.200 you can program. Well, there's still plenty of growth to 0:05:10.200 --> 0:05:12.560 be had in streaming. So look, obviously, you know we're 0:05:12.560 --> 0:05:15.120 in the middle of a major macro economic downturn. You 0:05:15.160 --> 0:05:18.960 have consumers reevaluating the priorities. How many subscriptions do we 0:05:19.040 --> 0:05:21.920 really want to have? There's been a big reset in 0:05:21.960 --> 0:05:24.280 the content business. Where do you think this stands Let's 0:05:24.279 --> 0:05:28.280 say a year from now, how does this all shake out? Well, 0:05:28.400 --> 0:05:30.880 the big question is at what point some of these 0:05:30.880 --> 0:05:33.480 players decide that they'd be better off consolidating. Right. You 0:05:33.520 --> 0:05:35.800 know you talked about people being more sensitive with how 0:05:35.880 --> 0:05:39.400 much they're spending. I think even the most optimistic person 0:05:39.480 --> 0:05:41.280 would say that people don't want to have to pay 0:05:41.320 --> 0:05:43.600 for more than four or five streaming services. And there 0:05:43.640 --> 0:05:46.920 are a number of services going for that mass scale. 0:05:46.960 --> 0:05:50.159 So does that mean that a paramount plus Warner Brothers, 0:05:50.200 --> 0:05:54.080 Discovery with HBO, Max, uh, you know, a a peacock 0:05:54.120 --> 0:05:56.840 from NBC Universal. Do some of those companies consolidate in 0:05:56.880 --> 0:05:59.080 some way. We've already seen Disney and Fox come together, 0:05:59.120 --> 0:06:02.960 We've already seen Viacom and CBS come together. There's been 0:06:02.960 --> 0:06:05.920 a lot of speculation that at some point there will 0:06:05.960 --> 0:06:09.240 be bigger deals we just don't know when. All right, 0:06:09.440 --> 0:06:12.159 Luca Shaw, thank you as always for your analysis and 0:06:12.200 --> 0:06:24.480 insights here. Appreciate it. Intel self driving technology companies mobilized 0:06:24.480 --> 0:06:28.560 targeting evaluation far below previous expectations for its I p 0:06:28.720 --> 0:06:32.680 O Intel and recently lowered and expected valuation of Mobile 0:06:32.680 --> 0:06:35.800 I from fifty billion to thirty billion due to turbulent 0:06:35.839 --> 0:06:40.120 market conditions. Now that's closer to sixteen billion here to 0:06:40.160 --> 0:06:43.120 discuss our Bloomberg Deal's reporter Crystal Z. So clearly the 0:06:43.160 --> 0:06:45.840 market condition is not helping here. But what's behind this 0:06:46.120 --> 0:06:50.080 another another valuation cut? Yeah, So basically I p O 0:06:50.160 --> 0:06:53.000 takes a long time to prepare. They probably came up 0:06:53.040 --> 0:06:56.360 with the idea of listening this unit Mobile IE when 0:06:56.360 --> 0:06:58.760 market was no booming, and right now it's went from 0:06:58.760 --> 0:07:01.200 fift to sixteen then sixteen. I would like to say 0:07:01.200 --> 0:07:04.640 it's not probably the final evaluation launch with the range. 0:07:04.680 --> 0:07:06.880 I think it could go lower, it could go higher, 0:07:06.960 --> 0:07:09.200 it could go lower. If we're optimistic, we think it 0:07:09.240 --> 0:07:12.920 could go higher. But it's not the final evaluation um 0:07:12.960 --> 0:07:14.840 and we will know next week when they actually do 0:07:14.880 --> 0:07:17.320 a price to deal. And are you expecting them to 0:07:17.320 --> 0:07:18.960 to go ahead with this I mean, is there any 0:07:19.040 --> 0:07:20.800 kind of cold feet on the other side, like, maybe 0:07:20.840 --> 0:07:22.760 we shouldn't do this right now. So if the market 0:07:23.240 --> 0:07:25.680 on the pricing day falls on a day like today 0:07:25.680 --> 0:07:28.320 where things are doing okay, like they could well go ahead. 0:07:28.360 --> 0:07:31.920 But everything is market dependent. It could just price on 0:07:31.920 --> 0:07:33.720 a day where everything is in the red and it 0:07:33.760 --> 0:07:38.080 would just be a total disaster. And we shall see. 0:07:38.120 --> 0:07:39.960 But right now I think they have the intention to 0:07:39.960 --> 0:07:42.320 go ahead with this listing. And what is the exact 0:07:42.320 --> 0:07:46.000 timeline we should expect a listing next week, perhaps the 0:07:46.000 --> 0:07:49.240 middle of the week. There's this question of, you know, 0:07:49.280 --> 0:07:52.440 the unprofitable I p O and whether that era is 0:07:52.840 --> 0:07:55.360 coming to an end. And obviously you've covered so many 0:07:55.360 --> 0:07:57.720 I p o s in boom times and now you're 0:07:57.720 --> 0:08:02.440 covering the lack thereof you know, how are companies thinking 0:08:02.480 --> 0:08:04.680 about strategy in terms of what they want to get 0:08:04.720 --> 0:08:08.240 out of a public offering. Yeah, so anyone who has 0:08:08.360 --> 0:08:10.960 raised money in the past year when valuation was still good, 0:08:10.960 --> 0:08:13.960 when money was still available, will unlikely be looking at 0:08:14.000 --> 0:08:16.360 an I p O. I think the mentality very much 0:08:16.480 --> 0:08:18.320 right now is that if you don't have to do it, 0:08:18.400 --> 0:08:20.640 don't do it. And I'm sure that's what the bankers 0:08:20.680 --> 0:08:23.280 are advising their clients as well. But if you're a 0:08:23.320 --> 0:08:26.320 company like Mobile I, where you have a parent company 0:08:26.360 --> 0:08:28.880 that is looking to return some money, then you would 0:08:28.920 --> 0:08:31.360 go ahead with this listing. But for people who have 0:08:31.400 --> 0:08:34.760 a choice, they will most likely not. So that also 0:08:35.040 --> 0:08:37.480 give it an interesting power dynamic. If you're an investor 0:08:37.520 --> 0:08:39.560 and you know that this company needs to go public, 0:08:39.880 --> 0:08:41.800 you have more pricing power. So how long does the 0:08:41.880 --> 0:08:44.920 drought last and your view, well, a lot of bankers 0:08:44.960 --> 0:08:46.439 are saying that we should expect the rest of the 0:08:46.520 --> 0:08:49.800 year to be quiet, or even the first quarter of three. 0:08:49.880 --> 0:08:52.920 So we will likely see some deals coming back meaningfully 0:08:53.040 --> 0:08:55.720 in the second quarter of twenty three, and it would 0:08:55.800 --> 0:09:00.640 most likely start with companies that are potentially revenue you positive, 0:09:00.880 --> 0:09:03.920 or even profitable. The things that we have covered in 0:09:03.920 --> 0:09:05.920 the last year where they have no revenue of that 0:09:06.080 --> 0:09:09.120 no profit. Those who have to wait. All right, Crystals, 0:09:09.360 --> 0:09:11.160 We'll keep checking back in with you and see if 0:09:11.160 --> 0:09:14.600 the timeline changes. Thank you. I want to move on 0:09:14.679 --> 0:09:17.840 to another I p O that's been highly anticipated, that 0:09:17.920 --> 0:09:20.320 is instat car Let's bring in Adam Burnbaum to discuss. 0:09:20.320 --> 0:09:24.120 He's the executive director at GP Bullhound, a tech advisory 0:09:24.120 --> 0:09:27.320 and investment firm with a billion dollars under management. So 0:09:27.400 --> 0:09:31.960 instacart adam another one that's had you know, massive valuation 0:09:32.040 --> 0:09:34.520 cuts and believe it was, you know, valued at thirty 0:09:34.600 --> 0:09:38.120 nine billion dollars at the height of its popularity in 0:09:38.160 --> 0:09:40.800 the middle of the pandemic. Now we're down to thirteen 0:09:41.480 --> 0:09:45.199 billion dollars. What's your expectation with this one. I think, 0:09:45.400 --> 0:09:48.480 you know, Insta carts in an interesting position because they 0:09:48.480 --> 0:09:50.480 don't really need the money right now. They've done a 0:09:50.480 --> 0:09:53.199 few things that are very vering suit when they raised 0:09:53.240 --> 0:09:57.000 capital and a higher valuation. Secondarily, they got their business 0:09:57.040 --> 0:10:00.839 models such that they became cash flow positive. And number 0:10:00.880 --> 0:10:03.760 three is they've evolved their business models so that they 0:10:04.200 --> 0:10:06.880 have alternative sources for it. So they have an advertising 0:10:06.880 --> 0:10:09.440 model which is doing extremely well. All that adds up 0:10:09.480 --> 0:10:12.120 to they don't need to do a offering right now. 0:10:12.320 --> 0:10:15.000 The the reason for doing an offering and would just 0:10:15.000 --> 0:10:17.280 be to get some liquidity to a ten year old 0:10:17.280 --> 0:10:19.720 companies for some of their employees. But I don't think 0:10:19.760 --> 0:10:21.840 they need to force to do it. I think there's 0:10:21.840 --> 0:10:24.439 another there's another dynamic thim that's out there. Emily and 0:10:24.480 --> 0:10:28.520 that is interesting. And this is this legislation that's floating 0:10:28.559 --> 0:10:32.360 around Washington right now, which is the reclassification of gig words. 0:10:32.400 --> 0:10:35.480 That's something that would have a material impact on the 0:10:35.600 --> 0:10:39.640 cost structure for these shoppers, going from being independent contractors 0:10:39.840 --> 0:10:43.080 to being treated as employees. That I think the company 0:10:43.120 --> 0:10:45.560 is certainly up for it. It's a very well managed company. 0:10:45.559 --> 0:10:47.960 FIGI does a great is doing a great job, and 0:10:47.960 --> 0:10:50.480 so to Prova. And this is a company that went 0:10:50.559 --> 0:10:54.200 from two hundred thousand shoppers to five hundred thousand shoppers 0:10:54.600 --> 0:10:57.200 UH during the height of the pandemic. Just a well 0:10:57.240 --> 0:11:00.880 managed business. But all that's being said is that there's 0:11:00.920 --> 0:11:03.440 no need right now for them to have to do 0:11:03.720 --> 0:11:06.920 an I p O in a very very auspicious market department. 0:11:07.160 --> 0:11:09.520 So are you saying that you think if they have 0:11:09.559 --> 0:11:12.560 to classify these workers as employees, it's not going to 0:11:13.240 --> 0:11:17.200 dramatically negatively impact the company that they're prepared for it. 0:11:17.960 --> 0:11:20.320 I'm what I'm saying is that I think that they 0:11:20.360 --> 0:11:23.840 would be able to handle it because I there, because 0:11:23.840 --> 0:11:26.479 it's gonna but it's going to certainly impact the valuation 0:11:26.559 --> 0:11:30.040 models that institutions are looking at for sure, And I 0:11:30.080 --> 0:11:32.600 think that in and of itself is a reason you 0:11:32.720 --> 0:11:34.680 hold off on rushing into an I p O market 0:11:34.679 --> 0:11:37.000 when you don't need to do it. It's this is 0:11:37.040 --> 0:11:40.720 a consumer facing business. The the aura of an I 0:11:40.840 --> 0:11:43.120 p O is important, and there's no reason to rush 0:11:43.160 --> 0:11:44.959 into a market, you know, when you're in an invariument 0:11:45.080 --> 0:11:48.560 like we're in right now, where there's there's so much 0:11:48.640 --> 0:11:51.599 read on the screens of institutional investments from past I 0:11:51.720 --> 0:11:54.160 p O s, you know, you really need to you know, 0:11:54.200 --> 0:11:57.719 to pull off a transaction successfully. What you really need 0:11:57.760 --> 0:11:59.600 to do is you have to have everything aligned so 0:11:59.640 --> 0:12:02.040 you don't need this other variable right now out there 0:12:02.080 --> 0:12:04.520 which is impacting their cost structure. So I guess what 0:12:04.600 --> 0:12:06.760 I'm saying is they don't need to do it right now. 0:12:06.800 --> 0:12:08.600 I think they're up for the task if that's where 0:12:08.600 --> 0:12:12.160 the legislation happens. But that's that's far from the FADA 0:12:12.160 --> 0:12:15.000 company right now. Well, just talk to Crystal about the 0:12:15.080 --> 0:12:18.480 era of the unprofitable I p O, which was hugely popular, 0:12:18.559 --> 0:12:22.320 especially among technology companies instat carts, saying it's turned the 0:12:22.360 --> 0:12:25.760 corner on profitability, So I imagine that might be one 0:12:25.920 --> 0:12:29.360 less thing for investors to worry about you know, is 0:12:29.400 --> 0:12:32.120 the is the era for unprofitable I pos is that over? 0:12:33.240 --> 0:12:35.760 I think I think I wouldn't say it's you never 0:12:35.800 --> 0:12:38.280 say never, so I wouldn't say it's over forever, but 0:12:38.280 --> 0:12:40.760 I definitely say it's over for the short term. I'd 0:12:40.760 --> 0:12:44.200 say that, you know, the there's there's a focus and 0:12:44.200 --> 0:12:46.480 we're seeing this in our business across the board. We 0:12:46.520 --> 0:12:48.880 do a lot of M and H transactions, We're doing 0:12:48.880 --> 0:12:51.000 a lot of capital raising. We just raised five hundred 0:12:51.040 --> 0:12:54.560 million dollars for business. Uh, there's a there's a big 0:12:54.600 --> 0:12:59.040 focus on more mature models that have provided a pathway 0:12:59.120 --> 0:13:03.440 to profitability or demonstrating that their that their models are involved. 0:13:03.640 --> 0:13:07.360 The days of companies going out with a you know, 0:13:07.440 --> 0:13:10.079 somewhat somewhat of a pipe tree into the public markets, 0:13:10.320 --> 0:13:12.280 which frankly they shouldn't have been in the public markets 0:13:12.280 --> 0:13:14.640 to begin with. I think that at least with the 0:13:14.720 --> 0:13:16.360 near term, we're not going to see them for a while. 0:13:16.440 --> 0:13:19.679 So how are you changing your strategy and what are 0:13:19.720 --> 0:13:25.840 you telling your clients admits to these evolving conditions. Well, 0:13:25.880 --> 0:13:28.760 I think what we're what we're telling people is one 0:13:28.840 --> 0:13:31.960 the M and A market continues to be open, particularly 0:13:32.080 --> 0:13:36.240 from very very good areas, things like cybersecurity E s G. 0:13:36.840 --> 0:13:39.439 We do a lot of work with digital analytic businesses 0:13:39.520 --> 0:13:42.880 and digital transformation companies. These are companies that have core 0:13:44.040 --> 0:13:47.720 organic growth within their within their addressable markets, which you're 0:13:47.720 --> 0:13:50.640 going to continue. What we are telling people is that 0:13:50.679 --> 0:13:53.360 for those who are considering the I p O market 0:13:53.520 --> 0:13:56.120 right now in this environment, that is not something that 0:13:56.160 --> 0:13:59.679 we would strongly recommend. Uh. For sure, it's definitely not 0:13:59.760 --> 0:14:02.080 some thing it needs to be done. I think that 0:14:02.679 --> 0:14:06.960 there are you know, in between all this negative discussion, 0:14:07.480 --> 0:14:09.839 is that still this year we're gonna have a reckoned 0:14:09.880 --> 0:14:13.640 amount of capital coming into venture venture funds. It's just 0:14:13.640 --> 0:14:16.160 going to be more concentrated. Uh. And I just think 0:14:16.160 --> 0:14:18.360 there's a flight that's just a general flight to quality. 0:14:18.559 --> 0:14:21.200 So that's what where you know, we're advising people that 0:14:21.680 --> 0:14:25.240 don't rush ahead to do something unnecessarily, but there's certainly 0:14:25.320 --> 0:14:28.560 market and there's certainly transactions to be done. The transactions 0:14:28.600 --> 0:14:31.600 to be done a very very fair valuations for companies 0:14:31.640 --> 0:14:34.840 that have more sure business models and and have the 0:14:34.880 --> 0:14:38.920 economics to support. How long do you think the downturn 0:14:39.000 --> 0:14:41.040 will last? We're hearing, you know, six months for the 0:14:41.080 --> 0:14:43.760 I p O window to reopen. I'm hearing from from 0:14:43.840 --> 0:14:47.640 some other more skeptical folks two to three years before 0:14:47.640 --> 0:14:50.560 we're out of this. Yeah, it's a it's a great 0:14:50.640 --> 0:14:53.120 question when you look, when you look at what has 0:14:53.200 --> 0:14:56.920 happened over a period of time right now, all these 0:14:57.000 --> 0:15:01.520 valuation models that that institutional buy look at are predicated 0:15:01.520 --> 0:15:04.160 on the on an interest rate. When you don't know 0:15:04.280 --> 0:15:07.000 what that interest rate is gonna be, it's very very 0:15:07.040 --> 0:15:09.880 hard to build the models accordingly, so you know, you 0:15:10.120 --> 0:15:13.040 it's it becomes very very challenging when you have a 0:15:13.120 --> 0:15:17.280 FED that is focused on breaking the back of inflation, 0:15:17.680 --> 0:15:19.960 and and that's certainly the right thing for them to 0:15:20.000 --> 0:15:22.760 be doing, but it's hard. It's hard to do that. 0:15:22.880 --> 0:15:24.960 I would I think that once you get to a 0:15:25.080 --> 0:15:28.800 sole period of time in interest rate raisings and you 0:15:28.840 --> 0:15:32.160 start to see that we're entering into and you start 0:15:32.200 --> 0:15:35.160 seeing the labor statistics supporting that, I think you're going 0:15:35.280 --> 0:15:39.440 to see a you're gonna see a a market that's 0:15:39.440 --> 0:15:41.800 going to be more receptive. And when markets and when 0:15:41.800 --> 0:15:45.240 markets start opening to the I p O market, the 0:15:45.360 --> 0:15:47.800 companies that go out and those environments have to be 0:15:48.920 --> 0:15:51.640 primo they have to be the best companies in their 0:15:51.720 --> 0:15:55.160 environment and those and that's really what's traditionally happens in 0:15:55.200 --> 0:15:57.920 any in any sort of bed I p O market, 0:15:58.200 --> 0:16:00.440 the market comes back because the best, the best go 0:16:00.520 --> 0:16:03.640 out there, they work, the institutions start feeling a little 0:16:03.640 --> 0:16:06.280 bit more comfortable, and then they and then you start 0:16:06.280 --> 0:16:08.800 seeing additional companies come out. I would say, you know, 0:16:08.840 --> 0:16:13.800 to answer your question, uh, I'm thinking mid midtime next year, 0:16:13.920 --> 0:16:17.120 I would say, you know, Q four no Q one 0:16:17.200 --> 0:16:20.520 still feels a little early. I would say maybe Q two, 0:16:20.600 --> 0:16:22.720 Q three start seeing it. And again, you know, the 0:16:22.720 --> 0:16:25.680 equity capital markets are an environment that's you know, a 0:16:25.760 --> 0:16:28.000 front owner. So we're gonna be out in front of 0:16:28.000 --> 0:16:32.040 the economy. You are on the more optimistic side than 0:16:32.720 --> 0:16:35.520 Adam Burg. Bam g people Hound, thank you. Good to 0:16:35.560 --> 0:16:40.480 hear your perspective. Right coming up, Apple drops after a 0:16:40.520 --> 0:16:43.960 report about iPhone production, plus the company unveils new iPads 0:16:44.360 --> 0:16:46.400 for the first time in five years. We're gonna talk 0:16:46.400 --> 0:16:50.120 about how the pandemic has changed the company's approach to tablets. 0:16:50.280 --> 0:17:03.360 This is Bloomberg. Apple just launched its first fully redesigned 0:17:03.440 --> 0:17:06.080 entry level iPad in five years, but shares dropped on 0:17:06.119 --> 0:17:09.520 a report the company will cut production of the iPhone 0:17:09.520 --> 0:17:13.080 fourteen plus. Let's bring in Bloomberg's Mark German to discuss 0:17:13.160 --> 0:17:17.400 marcus report coming from the information. What's your assessment about 0:17:17.440 --> 0:17:21.679 these production cuts. I'm not sure what else Apple or 0:17:21.680 --> 0:17:24.680 investors or analysts should really expect when the phone comes 0:17:24.680 --> 0:17:28.359 out three weeks later than the other variations. It's basically 0:17:28.480 --> 0:17:31.240 last year's phone, but a little bit bigger. Really no changes, 0:17:31.640 --> 0:17:34.280 and it's only eight dollars per month, less than the 0:17:34.320 --> 0:17:37.960 iPhone four Team Pro Max. There's really not a good 0:17:38.000 --> 0:17:42.359 reason to buy that nine iPhone fourteen plus when again 0:17:42.440 --> 0:17:45.080 on installments, a much better phone, the one you're showing 0:17:45.080 --> 0:17:47.680 on screen right now. It's only eight dollars per month. 0:17:47.720 --> 0:17:50.520 So if you're already spending nine on the phone, chances 0:17:50.520 --> 0:17:52.720 are you can spend eleven hundred dollars, especially if you 0:17:52.760 --> 0:17:56.000 break over break up that difference over twenty four or 0:17:56.119 --> 0:17:58.879 thirty months. Interesting. You've also got some new reporting on 0:17:59.080 --> 0:18:02.480 the iPads. New iPod pads tell us how big a 0:18:02.600 --> 0:18:06.080 change you're seeing here, and and you know why the 0:18:06.160 --> 0:18:10.120 change in strategy from Apple. So two new iPads. One 0:18:10.359 --> 0:18:13.040 is the new iPad Pro with the M two chip. 0:18:13.160 --> 0:18:15.720 The second is a new entry level iPad. I'll start 0:18:15.760 --> 0:18:17.520 with the iPad Pro. That will be a lot quicker, 0:18:17.960 --> 0:18:20.800 smallest update in the history of the iPad Pro. The 0:18:20.840 --> 0:18:25.000 first one came out seven years ago. They've essentially added 0:18:25.080 --> 0:18:29.080 just that faster processor. It's about fift faster. I don't 0:18:29.080 --> 0:18:30.920 think you're going to see major day to day gains 0:18:30.960 --> 0:18:33.920 from last year's model. There's a new Apple pencil hover 0:18:33.960 --> 0:18:36.480 feature you're showing, which now if you take the stylus 0:18:36.520 --> 0:18:39.879 over the screen, it can sense twelve millimeters away that 0:18:39.920 --> 0:18:41.760 you're there, so you don't actually have to touch the screen. 0:18:41.960 --> 0:18:43.920 It's kind of a cool but more of a software 0:18:43.920 --> 0:18:47.840 based tweak. Now the entry level iPad, I have no 0:18:47.880 --> 0:18:50.520 idea why anyone would buy the iPad air. The iPad 0:18:50.520 --> 0:18:54.080 air with the M one chip six This iPad entry 0:18:54.119 --> 0:18:57.000 level has the A fourteen chip, so a little bit slower, 0:18:57.280 --> 0:19:00.359 but for over a hundred dollars less expensive. So I 0:19:00.359 --> 0:19:02.639 think it's going to be an incredibly hot seller. I 0:19:02.720 --> 0:19:04.919 think it's going to do well. The question is what 0:19:05.080 --> 0:19:08.160 is Apple thinking right now with its iPad strategy. It's 0:19:08.160 --> 0:19:10.639 really all over the place. You have five or six 0:19:10.880 --> 0:19:14.760 distinct models. You have a lot of overlap in both 0:19:14.840 --> 0:19:19.199 pricing and functionality, and capacities and design and colors. The 0:19:19.280 --> 0:19:22.560 software story is not in good shape. People have been 0:19:22.600 --> 0:19:26.240 asking for major multitasking improvements for years now. I don't 0:19:26.240 --> 0:19:29.320 think Stage Manager, which they're launching with iPad O sixteen 0:19:29.320 --> 0:19:32.560 and these new iPads next week, is the answer. I 0:19:32.600 --> 0:19:35.399 think they will do well the holiday season, particularly with 0:19:35.440 --> 0:19:38.040 the new colorful entry level iPad, but I think they 0:19:38.040 --> 0:19:40.920 need to give the iPad pro some serious juice, both 0:19:40.920 --> 0:19:43.480 in terms of hardware and software, and really define what 0:19:43.560 --> 0:19:45.600 the vision in the future of the iPad is. I 0:19:45.640 --> 0:19:48.520 think it's going to be bigger screens and Mac like multitasking, 0:19:48.680 --> 0:19:50.199 but we'll see what they have up their sleeves in 0:19:50.280 --> 0:19:53.639 twenty three and twenty four. Mark, you never sugre account anything. 0:19:53.680 --> 0:19:56.520 That's why we're laughing. Thank you for giving us giving 0:19:56.520 --> 0:19:59.200 it to a straight Bloomberg s Mark German, as always, 0:20:07.000 --> 0:20:09.440 Welcome back to Bloomer Technology. I'm Emily Chang in New York. 0:20:09.480 --> 0:20:12.040 I want to get to what has been dubbed the 0:20:12.160 --> 0:20:16.639 Great Breakup, which is the phenomenon of women leaders leaving 0:20:16.640 --> 0:20:19.639 their companies at higher rates than ever before and the 0:20:19.680 --> 0:20:23.800 gap between women and men leaders quitting that's the largest 0:20:23.960 --> 0:20:27.119 it has ever been. This is according to Women in 0:20:27.160 --> 0:20:29.520 the Workplace study by McKinsey and Lenan dot Org. I 0:20:29.560 --> 0:20:32.040 want to talk about why we're seeing all of this 0:20:32.160 --> 0:20:34.760 with McKenzie Senior partner, Lorena and Lena dot Org co 0:20:34.880 --> 0:20:38.920 founder and CEO, Rachel Thomas. Lorena and Rachel. I'm always 0:20:39.160 --> 0:20:42.760 looking forward to this report every year, mostly for our 0:20:42.800 --> 0:20:46.840