Speaker 1: From the heart of where Innovation, money and power Collie
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay Him Emily Chang in New York. And this
Speaker 1: is Bloomberg Technology coming up in the next hour. Hollywood
Speaker 1: breathes a sigh of relief. Netflix is growing again. Expectations
Speaker 1: were low after the streaming giant lost subscriber's last quarter
Speaker 1: and suddenly pivoted to ads. What's working we'll discuss. Plus,
Speaker 1: women are leaving the top ranks of companies at higher
Speaker 1: rates than ever before, according to a new report from
Speaker 1: McKenzie and lean in what they're calling the Great Breakup
Speaker 1: later this hour, And what has Zuck been so quiet
Speaker 1: about Facebook these days? The mediceo seems to be ignoring
Speaker 1: his flagship social network to focus on luring people into
Speaker 1: a vacant virtual world. We're gonna get to all of
Speaker 1: that in a moment, but first or more on Netflix,
Speaker 1: I want to bring in Bloomberg's Lucashaw Okay, Luke Lucas
Speaker 1: are what are the good things you're seeing in this report?
Speaker 1: Why are we seeing a turnaround before a lot of
Speaker 1: these new changes have even been put into effect. Well,
Speaker 1: it's it's growing again. So it added two point four
Speaker 1: million subscribers in the most recent quarter. That's way above
Speaker 1: what they forecast, way above what Wall Street forecast. They
Speaker 1: also estimated four point five million editions in the fourth quarter.
Speaker 1: So Netflix is still going to have its worst year
Speaker 1: in a in a really long time. But people had
Speaker 1: been jittery because it had shrunk for two quarters in
Speaker 1: a row. The fact that it's growing again as seen
Speaker 1: as as a positive sign. The fact that it has
Speaker 1: all these hit shows that came out in the most
Speaker 1: recent quarter also a positive sign. If you wanted to
Speaker 1: be a bit of a pessimist, you could say, why
Speaker 1: did they only add two point four million when it
Speaker 1: had all those hits, And that's that's a legitimate question.
Speaker 1: But I think there was you know, the the response
Speaker 1: to its slowdown had been so dramatic that a lot
Speaker 1: people are just breathing a side relief that it seems
Speaker 1: to be back on a more stable trajectory. Now, what
Speaker 1: do we know about the ad supported tier and how
Speaker 1: is that impacting your outlook on how much better we
Speaker 1: can get here? Well, it's gonna release the new tier
Speaker 1: or start selling it in November. It will cost seven
Speaker 1: bucks a month. You'll watch about four or five minutes
Speaker 1: of commercials per hour. Most of the programs that people
Speaker 1: watch or care about will be available, but not all.
Speaker 1: You won't have ads in new movies, you don't have
Speaker 1: ads and kids programming, although you may have sort of
Speaker 1: a pre roll add just not ads in the middle
Speaker 1: of it. Um And so that means that Netflix's add
Speaker 1: tier is cheaper than HBO, Max's add to, or cheaper
Speaker 1: than Disney Plus is forthcoming add tier, a little more
Speaker 1: expensive than some of the smaller rivals. I think people
Speaker 1: are pretty optimistic that this should boost the company's performance
Speaker 1: in the years ahead, at the very least give people
Speaker 1: a reason not to cancel. But Netflix is saying it
Speaker 1: doesn't expect to see any material impact on a business
Speaker 1: in the fourth quarter, more likely in in the coming year.
Speaker 1: It could, of course, just be trying to manage that infectations.
Speaker 1: What about when it comes to the content strategy. I
Speaker 1: mentioned Britain is my favorite show, but but you know
Speaker 1: it's been a while, and you know they talked about
Speaker 1: Monster that the Jeffrey Dahmer's story. What are you seeing
Speaker 1: as kind of the next generation of big Netflix hits well?
Speaker 1: I think there's a perception and then there's the reality. Right,
Speaker 1: there's a perception in the marketplace right now that programming
Speaker 1: on Netflix has gotten a lot worse, that their funding
Speaker 1: lots of bad shows, bad movies, and that people have
Speaker 1: moved on to HBO Max, to Apple TV Plus, to
Speaker 1: Disney Plus. And while I think there's some truth to
Speaker 1: that that, and even Netflix has said that perhaps it's
Speaker 1: making too much, for the most part, Netflix is still
Speaker 1: making a lot of shows that people want to watch.
Speaker 1: It had Movies and The Gray Man and Purple Hearts
Speaker 1: that people watched. It had Dahmer, which was one of
Speaker 1: its biggest hits, that had the new season of Stranger Things,
Speaker 1: that had this Korean show Extraordinary Attorney Woo that was
Speaker 1: hugely popular. Uh, And so I think you'll see a
Speaker 1: lot more of that. Netflix just making a wide range
Speaker 1: of shows that appeal to people on the coast, of
Speaker 1: people in the middle of the country, people all over
Speaker 1: the world. And we'll you over time if if they're
Speaker 1: doing enough to get people to come in. I think
Speaker 1: there's also a lot of concern about how much Netflix
Speaker 1: is spending on marketing, and the company is just starting
Speaker 1: to adjust its approach there, So what are folks saying
Speaker 1: in Hollywood? Obviously Netflix isn't doing all of this in
Speaker 1: the vacuum. You've got all of the competitors out there
Speaker 1: making their changes as well well. I think people are,
Speaker 1: on the one hand, relieve because Netflix's problems had impacted
Speaker 1: the stock price and the strategy for a lot of
Speaker 1: its competitors. So even though they are rivals to one another,
Speaker 1: nobody wants to see Netflix collapse because every other company
Speaker 1: basically bet their future on streaming. At the same time,
Speaker 1: you do hear a lot of sort the whispers and
Speaker 1: snickers about the quality of programming on Netflix and how
Speaker 1: it's not as good as it used to be and
Speaker 1: not as fun as it used to be. Like I said,
Speaker 1: I think there's some truth to that, but some of
Speaker 1: that is also just a little bit of kind of
Speaker 1: lack of understanding of what people are actually watching. But
Speaker 1: we'll also see in the next few weeks what the
Speaker 1: results are like from Warner Brothers, Discovery with HBO, Max,
Speaker 1: from Disney with Disney Plus. Unfortunately don't really yet numbers
Speaker 1: for Apple TV and an Amazon broken out, but the
Speaker 1: positive results for Netflix should be a sign that if
Speaker 1: you can program. Well, there's still plenty of growth to
Speaker 1: be had in streaming. So look, obviously, you know we're
Speaker 1: in the middle of a major macro economic downturn. You
Speaker 1: have consumers reevaluating the priorities. How many subscriptions do we
Speaker 1: really want to have? There's been a big reset in
Speaker 1: the content business. Where do you think this stands Let's
Speaker 1: say a year from now, how does this all shake out? Well,
Speaker 1: the big question is at what point some of these
Speaker 1: players decide that they'd be better off consolidating. Right. You
Speaker 1: know you talked about people being more sensitive with how
Speaker 1: much they're spending. I think even the most optimistic person
Speaker 1: would say that people don't want to have to pay
Speaker 1: for more than four or five streaming services. And there
Speaker 1: are a number of services going for that mass scale.
Speaker 1: So does that mean that a paramount plus Warner Brothers,
Speaker 1: Discovery with HBO, Max, uh, you know, a a peacock
Speaker 1: from NBC Universal. Do some of those companies consolidate in
Speaker 1: some way. We've already seen Disney and Fox come together,
Speaker 1: We've already seen Viacom and CBS come together. There's been
Speaker 1: a lot of speculation that at some point there will
Speaker 1: be bigger deals we just don't know when. All right,
Speaker 1: Luca Shaw, thank you as always for your analysis and
Speaker 1: insights here. Appreciate it. Intel self driving technology companies mobilized
Speaker 1: targeting evaluation far below previous expectations for its I p
Speaker 1: O Intel and recently lowered and expected valuation of Mobile
Speaker 1: I from fifty billion to thirty billion due to turbulent
Speaker 1: market conditions. Now that's closer to sixteen billion here to
Speaker 1: discuss our Bloomberg Deal's reporter Crystal Z. So clearly the
Speaker 1: market condition is not helping here. But what's behind this
Speaker 1: another another valuation cut? Yeah, So basically I p O
Speaker 1: takes a long time to prepare. They probably came up
Speaker 1: with the idea of listening this unit Mobile IE when
Speaker 1: market was no booming, and right now it's went from
Speaker 1: fift to sixteen then sixteen. I would like to say
Speaker 1: it's not probably the final evaluation launch with the range.
Speaker 1: I think it could go lower, it could go higher,
Speaker 1: it could go lower. If we're optimistic, we think it
Speaker 1: could go higher. But it's not the final evaluation um
Speaker 1: and we will know next week when they actually do
Speaker 1: a price to deal. And are you expecting them to
Speaker 1: to go ahead with this I mean, is there any
Speaker 1: kind of cold feet on the other side, like, maybe
Speaker 1: we shouldn't do this right now. So if the market
Speaker 1: on the pricing day falls on a day like today
Speaker 1: where things are doing okay, like they could well go ahead.
Speaker 1: But everything is market dependent. It could just price on
Speaker 1: a day where everything is in the red and it
Speaker 1: would just be a total disaster. And we shall see.
Speaker 1: But right now I think they have the intention to
Speaker 1: go ahead with this listing. And what is the exact
Speaker 1: timeline we should expect a listing next week, perhaps the
Speaker 1: middle of the week. There's this question of, you know,
Speaker 1: the unprofitable I p O and whether that era is
Speaker 1: coming to an end. And obviously you've covered so many
Speaker 1: I p o s in boom times and now you're
Speaker 1: covering the lack thereof you know, how are companies thinking
Speaker 1: about strategy in terms of what they want to get
Speaker 1: out of a public offering. Yeah, so anyone who has
Speaker 1: raised money in the past year when valuation was still good,
Speaker 1: when money was still available, will unlikely be looking at
Speaker 1: an I p O. I think the mentality very much
Speaker 1: right now is that if you don't have to do it,
Speaker 1: don't do it. And I'm sure that's what the bankers
Speaker 1: are advising their clients as well. But if you're a
Speaker 1: company like Mobile I, where you have a parent company
Speaker 1: that is looking to return some money, then you would
Speaker 1: go ahead with this listing. But for people who have
Speaker 1: a choice, they will most likely not. So that also
Speaker 1: give it an interesting power dynamic. If you're an investor
Speaker 1: and you know that this company needs to go public,
Speaker 1: you have more pricing power. So how long does the
Speaker 1: drought last and your view, well, a lot of bankers
Speaker 1: are saying that we should expect the rest of the
Speaker 1: year to be quiet, or even the first quarter of three.
Speaker 1: So we will likely see some deals coming back meaningfully
Speaker 1: in the second quarter of twenty three, and it would
Speaker 1: most likely start with companies that are potentially revenue you positive,
Speaker 1: or even profitable. The things that we have covered in
Speaker 1: the last year where they have no revenue of that
Speaker 1: no profit. Those who have to wait. All right, Crystals,
Speaker 1: We'll keep checking back in with you and see if
Speaker 1: the timeline changes. Thank you. I want to move on
Speaker 1: to another I p O that's been highly anticipated, that
Speaker 1: is instat car Let's bring in Adam Burnbaum to discuss.
Speaker 1: He's the executive director at GP Bullhound, a tech advisory
Speaker 1: and investment firm with a billion dollars under management. So
Speaker 1: instacart adam another one that's had you know, massive valuation
Speaker 1: cuts and believe it was, you know, valued at thirty
Speaker 1: nine billion dollars at the height of its popularity in
Speaker 1: the middle of the pandemic. Now we're down to thirteen
Speaker 1: billion dollars. What's your expectation with this one. I think,
Speaker 1: you know, Insta carts in an interesting position because they
Speaker 1: don't really need the money right now. They've done a
Speaker 1: few things that are very vering suit when they raised
Speaker 1: capital and a higher valuation. Secondarily, they got their business
Speaker 1: models such that they became cash flow positive. And number
Speaker 1: three is they've evolved their business models so that they
Speaker 1: have alternative sources for it. So they have an advertising
Speaker 1: model which is doing extremely well. All that adds up
Speaker 1: to they don't need to do a offering right now.
Speaker 1: The the reason for doing an offering and would just
Speaker 1: be to get some liquidity to a ten year old
Speaker 1: companies for some of their employees. But I don't think
Speaker 1: they need to force to do it. I think there's
Speaker 1: another there's another dynamic thim that's out there. Emily and
Speaker 1: that is interesting. And this is this legislation that's floating
Speaker 1: around Washington right now, which is the reclassification of gig words.
Speaker 1: That's something that would have a material impact on the
Speaker 1: cost structure for these shoppers, going from being independent contractors
Speaker 1: to being treated as employees. That I think the company
Speaker 1: is certainly up for it. It's a very well managed company.
Speaker 1: FIGI does a great is doing a great job, and
Speaker 1: so to Prova. And this is a company that went
Speaker 1: from two hundred thousand shoppers to five hundred thousand shoppers
Speaker 1: UH during the height of the pandemic. Just a well
Speaker 1: managed business. But all that's being said is that there's
Speaker 1: no need right now for them to have to do
Speaker 1: an I p O in a very very auspicious market department.
Speaker 1: So are you saying that you think if they have
Speaker 1: to classify these workers as employees, it's not going to
Speaker 1: dramatically negatively impact the company that they're prepared for it.
Speaker 1: I'm what I'm saying is that I think that they
Speaker 1: would be able to handle it because I there, because
Speaker 1: it's gonna but it's going to certainly impact the valuation
Speaker 1: models that institutions are looking at for sure, And I
Speaker 1: think that in and of itself is a reason you
Speaker 1: hold off on rushing into an I p O market
Speaker 1: when you don't need to do it. It's this is
Speaker 1: a consumer facing business. The the aura of an I
Speaker 1: p O is important, and there's no reason to rush
Speaker 1: into a market, you know, when you're in an invariument
Speaker 1: like we're in right now, where there's there's so much
Speaker 1: read on the screens of institutional investments from past I
Speaker 1: p O s, you know, you really need to you know,
Speaker 1: to pull off a transaction successfully. What you really need
Speaker 1: to do is you have to have everything aligned so
Speaker 1: you don't need this other variable right now out there
Speaker 1: which is impacting their cost structure. So I guess what
Speaker 1: I'm saying is they don't need to do it right now.
Speaker 1: I think they're up for the task if that's where
Speaker 1: the legislation happens. But that's that's far from the FADA
Speaker 1: company right now. Well, just talk to Crystal about the
Speaker 1: era of the unprofitable I p O, which was hugely popular,
Speaker 1: especially among technology companies instat carts, saying it's turned the
Speaker 1: corner on profitability, So I imagine that might be one
Speaker 1: less thing for investors to worry about you know, is
Speaker 1: the is the era for unprofitable I pos is that over?
Speaker 1: I think I think I wouldn't say it's you never
Speaker 1: say never, so I wouldn't say it's over forever, but
Speaker 1: I definitely say it's over for the short term. I'd
Speaker 1: say that, you know, the there's there's a focus and
Speaker 1: we're seeing this in our business across the board. We
Speaker 1: do a lot of M and H transactions, We're doing
Speaker 1: a lot of capital raising. We just raised five hundred
Speaker 1: million dollars for business. Uh, there's a there's a big
Speaker 1: focus on more mature models that have provided a pathway
Speaker 1: to profitability or demonstrating that their that their models are involved.
Speaker 1: The days of companies going out with a you know,
Speaker 1: somewhat somewhat of a pipe tree into the public markets,
Speaker 1: which frankly they shouldn't have been in the public markets
Speaker 1: to begin with. I think that at least with the
Speaker 1: near term, we're not going to see them for a while.
Speaker 1: So how are you changing your strategy and what are
Speaker 1: you telling your clients admits to these evolving conditions. Well,
Speaker 1: I think what we're what we're telling people is one
Speaker 1: the M and A market continues to be open, particularly
Speaker 1: from very very good areas, things like cybersecurity E s G.
Speaker 1: We do a lot of work with digital analytic businesses
Speaker 1: and digital transformation companies. These are companies that have core
Speaker 1: organic growth within their within their addressable markets, which you're
Speaker 1: going to continue. What we are telling people is that
Speaker 1: for those who are considering the I p O market
Speaker 1: right now in this environment, that is not something that
Speaker 1: we would strongly recommend. Uh. For sure, it's definitely not
Speaker 1: some thing it needs to be done. I think that
Speaker 1: there are you know, in between all this negative discussion,
Speaker 1: is that still this year we're gonna have a reckoned
Speaker 1: amount of capital coming into venture venture funds. It's just
Speaker 1: going to be more concentrated. Uh. And I just think
Speaker 1: there's a flight that's just a general flight to quality.
Speaker 1: So that's what where you know, we're advising people that
Speaker 1: don't rush ahead to do something unnecessarily, but there's certainly
Speaker 1: market and there's certainly transactions to be done. The transactions
Speaker 1: to be done a very very fair valuations for companies
Speaker 1: that have more sure business models and and have the
Speaker 1: economics to support. How long do you think the downturn
Speaker 1: will last? We're hearing, you know, six months for the
Speaker 1: I p O window to reopen. I'm hearing from from
Speaker 1: some other more skeptical folks two to three years before
Speaker 1: we're out of this. Yeah, it's a it's a great
Speaker 1: question when you look, when you look at what has
Speaker 1: happened over a period of time right now, all these
Speaker 1: valuation models that that institutional buy look at are predicated
Speaker 1: on the on an interest rate. When you don't know
Speaker 1: what that interest rate is gonna be, it's very very
Speaker 1: hard to build the models accordingly, so you know, you
Speaker 1: it's it becomes very very challenging when you have a
Speaker 1: FED that is focused on breaking the back of inflation,
Speaker 1: and and that's certainly the right thing for them to
Speaker 1: be doing, but it's hard. It's hard to do that.
Speaker 1: I would I think that once you get to a
Speaker 1: sole period of time in interest rate raisings and you
Speaker 1: start to see that we're entering into and you start
Speaker 1: seeing the labor statistics supporting that, I think you're going
Speaker 1: to see a you're gonna see a a market that's
Speaker 1: going to be more receptive. And when markets and when
Speaker 1: markets start opening to the I p O market, the
Speaker 1: companies that go out and those environments have to be
Speaker 1: primo they have to be the best companies in their
Speaker 1: environment and those and that's really what's traditionally happens in
Speaker 1: any in any sort of bed I p O market,
Speaker 1: the market comes back because the best, the best go
Speaker 1: out there, they work, the institutions start feeling a little
Speaker 1: bit more comfortable, and then they and then you start
Speaker 1: seeing additional companies come out. I would say, you know,
Speaker 1: to answer your question, uh, I'm thinking mid midtime next year,
Speaker 1: I would say, you know, Q four no Q one
Speaker 1: still feels a little early. I would say maybe Q two,
Speaker 1: Q three start seeing it. And again, you know, the
Speaker 1: equity capital markets are an environment that's you know, a
Speaker 1: front owner. So we're gonna be out in front of
Speaker 1: the economy. You are on the more optimistic side than
Speaker 1: Adam Burg. Bam g people Hound, thank you. Good to
Speaker 1: hear your perspective. Right coming up, Apple drops after a
Speaker 1: report about iPhone production, plus the company unveils new iPads
Speaker 1: for the first time in five years. We're gonna talk
Speaker 1: about how the pandemic has changed the company's approach to tablets.
Speaker 1: This is Bloomberg. Apple just launched its first fully redesigned
Speaker 1: entry level iPad in five years, but shares dropped on
Speaker 1: a report the company will cut production of the iPhone
Speaker 1: fourteen plus. Let's bring in Bloomberg's Mark German to discuss
Speaker 1: marcus report coming from the information. What's your assessment about
Speaker 1: these production cuts. I'm not sure what else Apple or
Speaker 1: investors or analysts should really expect when the phone comes
Speaker 1: out three weeks later than the other variations. It's basically
Speaker 1: last year's phone, but a little bit bigger. Really no changes,
Speaker 1: and it's only eight dollars per month, less than the
Speaker 1: iPhone four Team Pro Max. There's really not a good
Speaker 1: reason to buy that nine iPhone fourteen plus when again
Speaker 1: on installments, a much better phone, the one you're showing
Speaker 1: on screen right now. It's only eight dollars per month.
Speaker 1: So if you're already spending nine on the phone, chances
Speaker 1: are you can spend eleven hundred dollars, especially if you
Speaker 1: break over break up that difference over twenty four or
Speaker 1: thirty months. Interesting. You've also got some new reporting on
Speaker 1: the iPads. New iPod pads tell us how big a
Speaker 1: change you're seeing here, and and you know why the
Speaker 1: change in strategy from Apple. So two new iPads. One
Speaker 1: is the new iPad Pro with the M two chip.
Speaker 1: The second is a new entry level iPad. I'll start
Speaker 1: with the iPad Pro. That will be a lot quicker,
Speaker 1: smallest update in the history of the iPad Pro. The
Speaker 1: first one came out seven years ago. They've essentially added
Speaker 1: just that faster processor. It's about fift faster. I don't
Speaker 1: think you're going to see major day to day gains
Speaker 1: from last year's model. There's a new Apple pencil hover
Speaker 1: feature you're showing, which now if you take the stylus
Speaker 1: over the screen, it can sense twelve millimeters away that
Speaker 1: you're there, so you don't actually have to touch the screen.
Speaker 1: It's kind of a cool but more of a software
Speaker 1: based tweak. Now the entry level iPad, I have no
Speaker 1: idea why anyone would buy the iPad air. The iPad
Speaker 1: air with the M one chip six This iPad entry
Speaker 1: level has the A fourteen chip, so a little bit slower,
Speaker 1: but for over a hundred dollars less expensive. So I
Speaker 1: think it's going to be an incredibly hot seller. I
Speaker 1: think it's going to do well. The question is what
Speaker 1: is Apple thinking right now with its iPad strategy. It's
Speaker 1: really all over the place. You have five or six
Speaker 1: distinct models. You have a lot of overlap in both
Speaker 1: pricing and functionality, and capacities and design and colors. The
Speaker 1: software story is not in good shape. People have been
Speaker 1: asking for major multitasking improvements for years now. I don't
Speaker 1: think Stage Manager, which they're launching with iPad O sixteen
Speaker 1: and these new iPads next week, is the answer. I
Speaker 1: think they will do well the holiday season, particularly with
Speaker 1: the new colorful entry level iPad, but I think they
Speaker 1: need to give the iPad pro some serious juice, both
Speaker 1: in terms of hardware and software, and really define what
Speaker 1: the vision in the future of the iPad is. I
Speaker 1: think it's going to be bigger screens and Mac like multitasking,
Speaker 1: but we'll see what they have up their sleeves in
Speaker 1: twenty three and twenty four. Mark, you never sugre account anything.
Speaker 1: That's why we're laughing. Thank you for giving us giving
Speaker 1: it to a straight Bloomberg s Mark German, as always,
Speaker 1: Welcome back to Bloomer Technology. I'm Emily Chang in New York.
Speaker 1: I want to get to what has been dubbed the
Speaker 1: Great Breakup, which is the phenomenon of women leaders leaving
Speaker 1: their companies at higher rates than ever before and the
Speaker 1: gap between women and men leaders quitting that's the largest
Speaker 1: it has ever been. This is according to Women in
Speaker 1: the Workplace study by McKinsey and Lenan dot Org. I
Speaker 1: want to talk about why we're seeing all of this
Speaker 1: with McKenzie Senior partner, Lorena and Lena dot Org co
Speaker 1: founder and CEO, Rachel Thomas. Lorena and Rachel. I'm always
Speaker 1: looking forward to this report every year, mostly for our
Speaker 1: progress update, but this one is not so good. Rachel,
Speaker 1: explain what you mean by the great breakup. Well, it's
Speaker 1: exactly what you said. For the first time that we've
Speaker 1: been tracking. Women leaders are highly ambitious. There's ambitious as men,
Speaker 1: but they're lee in the company at the highest rate
Speaker 1: we've ever seen and at higher rates than men. And
Speaker 1: we already know women are under represented in leadership, so
Speaker 1: companies cannot afford to lose their precious few women leaders.
Speaker 1: And to put the scale of this in the perspective
Speaker 1: for you, Emily, for every woman director who gets promoted,
Speaker 1: two women directors are choosing to leave their company. That's
Speaker 1: one up and two out. And that's a problem. Lorena,
Speaker 1: you've been working in corporate America for so long. Why
Speaker 1: is this happening. Well, we see some very persistent headwinds,
Speaker 1: none of which are going to surprise you, and we
Speaker 1: see a change in the mindset of women. So some
Speaker 1: of those headwinds. Emily, we've seen lots of different stabs
Speaker 1: and cuts every day, but we saw that clearly about
Speaker 1: women leaders said that someone took credit for their idea
Speaker 1: in their meetings. This year, we saw that there were
Speaker 1: two times more likely than men to be mistaken for
Speaker 1: someone junior actually kind of undercutting their leaders up and
Speaker 1: the list goes on, and these are the day to
Speaker 1: day headwinds. They're also not getting credit for being great
Speaker 1: people leaders. And so what we see is that when
Speaker 1: women give more, when they make sure that work works
Speaker 1: remotely and flexibly, when they actually take care of wellness,
Speaker 1: when they pay attention to D and I, they rarely
Speaker 1: receive credit. So those are some of the headwinds which
Speaker 1: are signals to women you're not going to advance. And
Speaker 1: the other thing that I mentioned is women's mindsets are shifting.
Speaker 1: They're saying, look, I am positively ambitious, I would like
Speaker 1: to get promoted, I would like another opportunity, and if
Speaker 1: that means I need to break up with you and
Speaker 1: go to another company, go to a competitor, go to
Speaker 1: a smaller company to get that promotion, to get that raise.
Speaker 1: I'm willing to bet on myself to do it. And
Speaker 1: yet far fear or women are being promoted to manager
Speaker 1: for the eighth year in a row. Uh, you're seeing this, Rachel?
Speaker 1: Can you explain this to me? Because I feel like
Speaker 1: we're getting a lot of conflicting information. You know, I've
Speaker 1: also heard more women are being promoted in a house
Speaker 1: or that you are are actually seeing that as a
Speaker 1: potential path to success. Uh, perhaps a more accessible path
Speaker 1: to success them bringing in new women to leadership roles
Speaker 1: from the outside. Rachel, Emily, you're right, eighth year in
Speaker 1: a row, that broken wrong at that first critical step
Speaker 1: up to manager is still broken. For every hundred women
Speaker 1: who were promoted to manager last year, I mean for
Speaker 1: every hundred men, only eight seven women were in eighty
Speaker 1: two women of color. And here's why that matters. At
Speaker 1: the typical company, when you look at the manager level,
Speaker 1: six managers or men and managers or women, which means
Speaker 1: literally there are fewer women to promote. So that's company's
Speaker 1: first pipe pipeline problem. And now we're talking about their
Speaker 1: second pipeline problem, which is on top of that, women
Speaker 1: leaders are leaving. So our message to organizations this year
Speaker 1: is we've got a really double triple down on holding
Speaker 1: on to our women leaders and up and coming women leaders.
Speaker 1: The report uh sites one in four uh C suite
Speaker 1: leaders as a woman, and only one in twenty is
Speaker 1: a woman of color. Um Lorena, our startups doing at
Speaker 1: all any better of a job than corporate America at
Speaker 1: getting these numbers up. I wish we could say, yes, Emily,
Speaker 1: we see pretty consistent lackluster results across any sized company
Speaker 1: in the United States. And so to give you a
Speaker 1: flavor of this, if you're a Black woman, if you're
Speaker 1: a Latino woman, if you're an Asian woman, as you
Speaker 1: try and climb up, you just face so many challenges.
Speaker 1: And one thing that's really important to note is women
Speaker 1: of color are extremely ambitious. In fact, Black and Asian
Speaker 1: women want to succeed and rise up to leadership rules
Speaker 1: the most out of all people in your organization, and
Speaker 1: yet they face these challenges. So, just as an example,
Speaker 1: if you are a black woman, you are more likely
Speaker 1: three times more likely in fact, to be questioned on
Speaker 1: your credibility, and you know you received the least amount
Speaker 1: of support from your manager, and all of these things
Speaker 1: add up. And in a world where we have one
Speaker 1: in twenty women of color at the very top, and
Speaker 1: given all the emphasis that companies have talked about and
Speaker 1: are aware in terms of racial reckoning, you would think
Speaker 1: that we would be making more progress. And the fact
Speaker 1: of the matter is that we're not. Oh, let's talk
Speaker 1: about the silver linings. You talk about remote work. You
Speaker 1: mentioned remote work earlier, but given these numbers, Rachel, how
Speaker 1: is remote work really showing up for women in the workplace.
Speaker 1: We know, before the pandemic, all employees in particularly women,
Speaker 1: really valued flexibility. We also know that companies, many of them,
Speaker 1: are continuing some commitment to at least a level of flexibility.
Speaker 1: But when you look at remote in hybrid work, what's
Speaker 1: really interesting is it's not just about flexibility for women.
Speaker 1: They're actually having a better workplace experience and when they're
Speaker 1: working from home, they're less likely to experience those micro
Speaker 1: aggressions we often talk about getting mistaken for someone more junior,
Speaker 1: having someone take credit for your ideas, and those obviously
Speaker 1: have a huge impact on women. So it's just one
Speaker 1: stat women with disabilities are half as likely to experience
Speaker 1: microaggressions when they're working at home at their kitchen table
Speaker 1: then when they're when they're working in the office. So certainly,
Speaker 1: flexibility is not the end all v all answer, but
Speaker 1: it's important to women because it allows them to fit
Speaker 1: work into their lives and it's also delivering a better
Speaker 1: work experience. So let's talk about a plan of action, Lorena.
Speaker 1: How can companies and managers and leaders use this information
Speaker 1: to use this as an opportunity to get better exactly?
Speaker 1: And so what this does is it points a spotlight
Speaker 1: on what's not working. And granted, there are a lot
Speaker 1: of things that are not working, but there are solutions
Speaker 1: out there. We take a look at better companies, companies
Speaker 1: that are making more progress year over year. There are
Speaker 1: a couple of things they do. One, they actually hold
Speaker 1: themselves and managers accountable. They don't just have dashboards that
Speaker 1: say that they need to improve, but they actually hold
Speaker 1: leaders accountable for that in their business reviews, in their
Speaker 1: performance evaluations. Another thing that we see is that they
Speaker 1: empower managers. They give them the tools to do better
Speaker 1: because certainly the positive intent is there and the last
Speaker 1: thing is that we see that they do better in practices,
Speaker 1: so they really go beyond the basics. It's one thing
Speaker 1: to have an anti bias training once a year. It's
Speaker 1: another thing to say, I'm going to have an anti
Speaker 1: bias observer and I'm going to really bust that bias
Speaker 1: in the moments that matter, which are performance reviews and evaluations.
Speaker 1: It's a whole another thing to invest in career development
Speaker 1: versus just networking on women. Those are just a couple
Speaker 1: of examples, Emily, but there are some really concrete things
Speaker 1: that company can do, and I'm extremely optimistic that they
Speaker 1: can step forward and do these things. So I have
Speaker 1: to ask you about, of course, the founder of lenan
Speaker 1: who started this movement, and that is Cheryl Sandberg. Oh.
Speaker 1: You know, now just a few weeks ago, uh left
Speaker 1: after a very long tenure at Facebook, Rachel, what can
Speaker 1: you tell us about Cheryl's next act? And you know
Speaker 1: how much more time She's now going to be spending
Speaker 1: with lenin and focused on these issues that you know,
Speaker 1: as part of a movement that really she catalyzed. Yeah, So,
Speaker 1: first of all, I love the cheryld got to a
Speaker 1: point in her career where she was ready to leave
Speaker 1: because we all as women have a right to make
Speaker 1: choices about her career. As you know so well, Emily,
Speaker 1: and as she said publicly, she's always been incredibly involved
Speaker 1: with the Foundation and the work we do and fighting
Speaker 1: to knock down the BIA season barriers they get in
Speaker 1: women's way in the workplace, and she's going to continue
Speaker 1: to do that. And we are thrilled to have Morna
Speaker 1: Cheryl Sandberg with us every day and really speaking up
Speaker 1: on these issues that are so critically important. So, Lorena,
Speaker 1: last question, there's a lot to be worried about. What
Speaker 1: can we be optimistic about We should be optimistic about
Speaker 1: young women. Um So, I'm so glad you asked so.
Speaker 1: In the survey this year, we founded lot of people
Speaker 1: wonder women under thirty, gen X, gen Z, what what's
Speaker 1: they're feeling? And I have some good news on that.
Speaker 1: They are so ambitious. They want to be senior leaders
Speaker 1: and that has increased over the last couple of years.
Speaker 1: And they have a very clear view in a workplace
Speaker 1: that works for them and they're going to step up
Speaker 1: and live into that. And so when we think about
Speaker 1: the future of women at work, I look at young
Speaker 1: women and I say, look, that is our future. We
Speaker 1: have to invest in them, develop them and bring them
Speaker 1: up into the senior ranks. All right, mckensley's Lorena ye
Speaker 1: lenand dot org its co founder and CEO, Rachel Thomas,
Speaker 1: thank you both, and thank you for the work that
Speaker 1: you do on this report every year. We appreciate it. Alright.
Speaker 1: Coming up, why one crypto aventure capitalist is asking the
Speaker 1: public to public to look at crypto as a technology
Speaker 1: not a token. That's next. This is Bloomberg. Blockchain is
Speaker 1: a technology which is real deployed in many places. We
Speaker 1: deploy it with ink with Onyx, which some of you
Speaker 1: were part of and link with. Some of you were
Speaker 1: part of the JP Morgan coin, which is a stable
Speaker 1: coin backed by a U. S. Dollar deposit at JP Morgan.
Speaker 1: And there are a lot of these technologies gonna work.
Speaker 1: They're gonna replace ledgers, they're gonna make things cheaper. I
Speaker 1: think banks will be big users of that. And yes
Speaker 1: it may distant to me a certain part of banking.
Speaker 1: So be it that we have that problem, like with
Speaker 1: technology for the last fifty years and so my issue
Speaker 1: has always been with what you guys call a cryptocurrency,
Speaker 1: which I call a crypto token that doesn't do anything,
Speaker 1: JP Morgan CEO Jamie Diamond last week, doubling down on
Speaker 1: his disdain for crypto tokens but backing blockchain technology. Earlier,
Speaker 1: Michael Anderson, co founder of the crypto venture capital firm
Speaker 1: Framework Ventures, reacted to what Diamond has had to say
Speaker 1: on Bloomberg Crypto take a listen. I think you know
Speaker 1: the part about blockchain being real. He's completely right. Um,
Speaker 1: there are a number of different application categories that are
Speaker 1: built on blockchain today. Cryptocurrency and bitcoin just happens to
Speaker 1: be one of them. N f t s happened to
Speaker 1: be another. Um, We're starting to see the rapid innovation
Speaker 1: of what these concepts can bring about, not just from
Speaker 1: a cost savings perspective for existing businesses, but new types
Speaker 1: of economic transactions that can exist in a new ecosystem
Speaker 1: that can connect into the financial ecosystem. You know, and
Speaker 1: you touched on it in the previous segment. But gaming
Speaker 1: happens to be one of those segments of the market
Speaker 1: that's just completely new in a new business model for
Speaker 1: gaming will bring about a huge amount of economic activity.
Speaker 1: He makes an interesting point about the coins. Michael and
Speaker 1: I've always wondered myself. I mean, even if you see
Speaker 1: the beauty and the blockchain, aside from you know, um
Speaker 1: faith from the group, what's the reason that these token
Speaker 1: should be worth a lot of money considering the fact
Speaker 1: that you don't really need even a full token to
Speaker 1: get on the blockchain and they're infinitely divisible. Yeah. Well,
Speaker 1: you know, I think one of the hardest things that
Speaker 1: we did for ourselves as an industry is called this
Speaker 1: industry the cryptocurrency industry. Uh, you know what it should
Speaker 1: have been. You know, maybe crypto commodities would have been
Speaker 1: a better monitor for some of these assets, but really
Speaker 1: it's just a new technology platform. Uh. You know, there
Speaker 1: are reasons why tokens need to exist in these ecosystems
Speaker 1: to secure networks. You know, one of the ways that
Speaker 1: the proof of state ecosystem for Ethereum works is you're
Speaker 1: taking Ethereum tokens and putting them up as economic security
Speaker 1: to validate transactions and provide security in that network. You know,
Speaker 1: there is a there's a core reason for that, and
Speaker 1: Ethereum in particular has a number of transaction the amount
Speaker 1: of transaction revenue that's going through it every single day
Speaker 1: is tantamount to something that's a massively scalable and profitable
Speaker 1: company if it were to be traded on the NASTAC
Speaker 1: like a salesforce or a work day. UM. So if
Speaker 1: you if we look at them from that perspective, you
Speaker 1: know there are assets in this ecosystem that are fundamentally valuable.
Speaker 1: How how or tell us about some of the businesses
Speaker 1: you're invested in that are doing actual work with the
Speaker 1: blockchain that has nothing to do with the value of
Speaker 1: the token, for example, smart contracts or recording UM events.
Speaker 1: I mean, what what what can the blockchain do that
Speaker 1: that you're actually seeing it? Uh, seeing work in your companies? Yeah. Well,
Speaker 1: one of the companies that we just announced a large
Speaker 1: series A fundraise for with Stardust UM Hannah Miller. Hats
Speaker 1: off to her broke that story earlier today. UM. They
Speaker 1: just raised a new round of funding UM, which we
Speaker 1: continued on with our existing investment. What they do is
Speaker 1: they provide an ecosystem for traditional game developers to develop
Speaker 1: their games and integrate blockchain. Just with the ease of
Speaker 1: integration of an API and and some tooling and some infrastructure. UM.
Speaker 1: We liken it to be to being sort of the
Speaker 1: coin base for Web three gaming, where it'll just be
Speaker 1: the arm ramps for hundreds of developers who are building
Speaker 1: in this ecosystem who wanted to integrate n f t S.
Speaker 1: And frankly, the integration of n f t S just
Speaker 1: represents a new business model for game developers. It's not
Speaker 1: you know, a speculative fervor as we've seen with MC
Speaker 1: gaming so far. The tens of the helpers that are
Speaker 1: building on top of it are are actually you know,
Speaker 1: building in succeeding today. Um, and we're just gonna continue
Speaker 1: to see that, try and continue Frame Work Ventures co
Speaker 1: founder Michael Anderson. Let's take a look at Facebook now,
Speaker 1: which some might have think has been abandoned, so to speak,
Speaker 1: by Mark Socckerberg in favor of this new child Meta.
Speaker 1: That's just one interpretation, including from our own Max Chafkin,
Speaker 1: who wrote this piece for Bloomberg Business Week, focused on
Speaker 1: what Mark Sockerberg is talking about now and it's not Facebook,
Speaker 1: it's the metaverse. But is he really ignoring Facebook? I mean,
Speaker 1: this is a huge platform and it's not just Facebook,
Speaker 1: it's Instagram. It's what's appen Okay, so Facebook and and
Speaker 1: what's happened Instagram. This is still the core of Meta's
Speaker 1: business UM. And and and to you know, in some extent,
Speaker 1: they're they're continuing to um, you know, make the trains
Speaker 1: run on time and try to generate revenue and profit.
Speaker 1: And and to be clear, this part of the business
Speaker 1: generates huge amounts of profit. And if you just looked
Speaker 1: at that part of the business by itself, you'd say, wow,
Speaker 1: you know, Mark Zuckerberg is doing a really good job. UM.
Speaker 1: But then when you sort of look at it in
Speaker 1: the context of this pivot which is towards the metaverse UM,
Speaker 1: which happened, you know, a little less than a year ago.
Speaker 1: Company changed his name of course, away from Facebook UM
Speaker 1: to this new thing. And then when you look at
Speaker 1: just like the the comparison of user numbers, right, um,
Speaker 1: you know, basically three billion people every single day are
Speaker 1: coming into Facebook's properties. Uh, that including Instagram. What's happened
Speaker 1: so on? Uh, it looks like about two hundred thousand
Speaker 1: people are in Horizon Worlds, which is the flagship virtual
Speaker 1: world that that Zuckerberg was touting last week at Connect.
Speaker 1: And that's the kind of product that's a product that
Speaker 1: like if face, if this happened with some other product
Speaker 1: that Facebook was offering, they would kill it, you know, instantaneously.
Speaker 1: This is the kind of thing Mark zucker I don't
Speaker 1: think gets up in the morning for you know, two
Speaker 1: thousand uniques. Um. But of course the company has decided
Speaker 1: that this is the future and they're pushing towards it.
Speaker 1: And I would argue pushing towards it, you know, had
Speaker 1: great risk to the brand and maybe to society in general.
Speaker 1: Facebook still has a lot of issues, Instagram has issues.
Speaker 1: We've got an election coming up. If he's not paying
Speaker 1: so much attention to these platforms, what hope does that
Speaker 1: give us that that these problems are going to be fixed? Right? Well,
Speaker 1: it's important to say, you know, the company would argue that, yes,
Speaker 1: of course we're paying attention to these things. It's the
Speaker 1: core of our business. You know. Nick Clay has been
Speaker 1: elevated to this you know, more important role, you know,
Speaker 1: overseeing uh, you know, stuff that includes elections. That said,
Speaker 1: I think when you go back, say two years ago
Speaker 1: and look at you know, what the company was talking about,
Speaker 1: what Mark Zuckerberg was talking about, they were very focused
Speaker 1: not just on elections, but on the responsibility that Facebook
Speaker 1: owes to its to its users to society. Zuckerberg was
Speaker 1: talking all the time about you know, COVID vaccines, and
Speaker 1: right now we're talking about, um, you know, getting as
Speaker 1: many off workers into the metaverse, which, um, which I
Speaker 1: don't think has anything to do with those um you know,
Speaker 1: issues of societal responsibility might in fact work against them.
Speaker 1: And also, um, I'm not sure anyone even really wants that.
Speaker 1: I mean, he's they're talking about, um, you know, uh
Speaker 1: sending workers to the metaverse at a time when most
Speaker 1: CEOs are trying to get their CEOs back to the office,
Speaker 1: back in person. So it feels like they're they're working
Speaker 1: against a bunch of trends and maybe even working against
Speaker 1: their business. So the question is is this gonna work
Speaker 1: in the hindsight? Are we gonna you know, is he
Speaker 1: gonna be able to look I was right? I mean,
Speaker 1: is it similar to mobile when Facebook transition to mobile
Speaker 1: and everybody not everybody, but it seemed like a big
Speaker 1: leap at the time. Is this the same? Words this different?
Speaker 1: It's it's certainly possible. And if that happens, I think
Speaker 1: you know, we will all you know, bow down before
Speaker 1: you know, Mark Zuckerberg's prognostication because they'll have done this, um,
Speaker 1: you know, amazing pivot two times now. A couple of things,
Speaker 1: you know, one is that that pivot to mobile mobile
Speaker 1: Cheryl Sandberg was you know, very involved. He had help
Speaker 1: that maybe he doesn't have today. And and just because
Speaker 1: he executes one pivot correctly, I'm not sure you can
Speaker 1: sort of say, well, he's going to execute the next
Speaker 1: pivot correctly. And the sort of leaks and the news
Speaker 1: that we've seen coming out of Facebook is not super encouraging.
Speaker 1: I mean, this is as as we learned last week
Speaker 1: and reports from the Verge in the New York Times, Um,
Speaker 1: Facebook is having trouble keeping its own employees, um, you
Speaker 1: know interested in its metaverse app, which kind of makes
Speaker 1: you wonder, how are they going to get other, you know,
Speaker 1: people who don't actually work for Mark Zuckerberg excited about this.
Speaker 1: All right, we'll check out Max's latest piece in Bloomberg
Speaker 1: Business Week. Masks Chafkin. Always good to have you, good
Speaker 1: to see you here in person. Thank you, And that
Speaker 1: does it for this edition of Bloomberg Technology. Coming up Wednesday,
Speaker 1: we're gonna be talking with the co CEO of Warby
Speaker 1: Parker and Neil Bloomenthal. Talking about the future of his
Speaker 1: business after stock has tumbled a bid. Since they're I
Speaker 1: p O and don't forget to check out our podcast
Speaker 1: wherever you get your podcasts. I'm Emily Chang in New
Speaker 1: York today. This is Bloomberg