WEBVTT - Disney Earnings and Musk's Tesla Stock Sale (Podcast) 0:00:02.240 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.320 Emily Jay. I'm Emily changing San Francisco, and this is 0:00:27.320 --> 0:00:30.720 Bloomberg Technology. Coming up in the next hour. Vacations are back, 0:00:30.840 --> 0:00:33.320 at least at the happiest place on Earth. Disney Parks 0:00:33.320 --> 0:00:37.120 have a blowout quarter and streaming subscribers beat with revenue 0:00:37.200 --> 0:00:41.199 up from a year ago. And a new ad supported 0:00:41.200 --> 0:00:44.400 tier is coming to Disney. Plus more on earnings in 0:00:44.440 --> 0:00:48.520 a moment. Plus Musque sells more Tesla shares unloading nearly 0:00:48.560 --> 0:00:51.479 thirty two billion dollars in Tesla stocks since November, and 0:00:51.520 --> 0:00:53.920 he's pointing the finger at Twitter. I'll speak with one 0:00:53.920 --> 0:00:56.760 of his longtime friends, David Sacks, who has been subpoenaed 0:00:57.280 --> 0:01:01.760 by Twitter ahead of the trial. And a key metric 0:01:01.840 --> 0:01:06.480 for Roadblocks and shares tumbling, overall bookings unexpectedly dropping in 0:01:06.520 --> 0:01:08.720 the second quarter. What does that tell us about the 0:01:08.760 --> 0:01:11.920 making of the metaverse. Later this hour, Roadblocks CEO Dave 0:01:11.959 --> 0:01:15.160 Bazuki joins me one on one. All of that in 0:01:15.200 --> 0:01:17.520 a moment, but first I want to dig into Disney's 0:01:17.520 --> 0:01:19.759 results a little bit more. Now, bringing Ross Garber, CEO 0:01:19.760 --> 0:01:24.080 of Garber Kawasaki, longtime Disney's shareholder, of course, So a 0:01:24.200 --> 0:01:28.720 mixed bag adding fourteen and a half million new subscribers 0:01:28.760 --> 0:01:31.200 to Disney Plus. The bulk of those came from India, 0:01:31.640 --> 0:01:35.240 others from other countries, and just a hundred thousand new 0:01:35.319 --> 0:01:39.000 subscribers from the US and Canada. What's your take, Well, 0:01:39.040 --> 0:01:40.520 I don't look at this mixed bag at all. I 0:01:40.520 --> 0:01:43.720 look at this blowout results. I mean you're looking at 0:01:43.840 --> 0:01:47.680 Netflix struggling to add subscribers and the tremendous you know, 0:01:47.760 --> 0:01:52.000 competition and the streaming business and Disney still growing tremendously, 0:01:52.200 --> 0:01:56.240 not only Disney Plus, but Hulu as well and ESPN Plus. 0:01:56.280 --> 0:01:59.200 So when you look at their streaming business, although it's 0:01:59.280 --> 0:02:02.560 losing still lot of money, the future looks very bright 0:02:02.640 --> 0:02:05.920 for that. And Disney was a great company before streaming. 0:02:05.960 --> 0:02:08.520 And what's really exciting about the earnings report is the 0:02:08.560 --> 0:02:11.840 parks are back with over two billion dollars of profits, 0:02:12.080 --> 0:02:15.960 five million of it just from consumer products at the park. So, 0:02:16.200 --> 0:02:21.680 you know, the operating results of this company have improved dramatically, right, 0:02:21.720 --> 0:02:24.400 sort of a broad based recovery that we're seeing. We've 0:02:24.400 --> 0:02:26.360 been listening into Bob J. Peck, the CEO on the 0:02:26.360 --> 0:02:28.480 earnings call. Let's take a quick listen to some of 0:02:28.480 --> 0:02:32.480 what he's had to say. And significant subscriber growth at 0:02:32.480 --> 0:02:36.919 our streaming services, which added fifteen point five million subscriptions 0:02:36.919 --> 0:02:42.160 in the quarter, including fourteen point four million Disney Plus subscribers, 0:02:42.200 --> 0:02:45.440 of which six million were Core Disney Plus and eight 0:02:45.480 --> 0:02:49.040 million were Hot Stars. As of the close of Q three, 0:02:49.320 --> 0:02:53.240 we now have two hundred and twenty one million total 0:02:53.280 --> 0:02:57.959 subscriptions across our streaming offering. Hot Star. By the way, 0:02:58.040 --> 0:03:00.840 is that service that's offered mostly in India. What do 0:03:00.880 --> 0:03:02.399 you make of you know, the addition of this ad 0:03:02.400 --> 0:03:05.200 supported tier. It's something that we were expecting. Netflix is 0:03:05.240 --> 0:03:08.720 doing it as well. Does you know Disney potentially have 0:03:08.840 --> 0:03:11.240 something on Netflix here when it comes to an ad 0:03:11.240 --> 0:03:15.120 supported model. Um no. I think actually it will be 0:03:15.120 --> 0:03:18.519 more benefits for Netflix the ad supported model because for 0:03:18.639 --> 0:03:21.360 many reasons, but I think for Disney because they have 0:03:21.840 --> 0:03:25.160 you know, networks and cable channels and stuff. So you're 0:03:25.160 --> 0:03:28.160 sort of competing against yourself a little bit from the ads, 0:03:28.240 --> 0:03:31.000 or you're spreading your ads on another property. It's a 0:03:31.000 --> 0:03:33.600 little bit more complex for them, But it just allows 0:03:33.600 --> 0:03:35.840 more consumers to watch the content they're making, which is 0:03:35.840 --> 0:03:38.520 a net positive because they sell through so many other 0:03:38.600 --> 0:03:41.440 things to the fans, whether it's going to the park 0:03:41.560 --> 0:03:45.360 or products and such. So for Disney, the most important thing. 0:03:45.600 --> 0:03:47.880 You know, I don't love Bob Chpeck, but he's proving 0:03:47.920 --> 0:03:51.200 he's a great operator during difficult times. He's not an 0:03:51.200 --> 0:03:54.440 exciting guy, but he's got the theme park, the profit 0:03:54.560 --> 0:03:58.280 drivers of the business back, and the losses that they're 0:03:58.440 --> 0:04:01.840 driving from Disney Plus will ultimately turned to gains over time. 0:04:02.200 --> 0:04:05.160 So I think they're managing the business pretty well. And 0:04:05.160 --> 0:04:07.280 and you know, there's no recession at Disneyland. I can 0:04:07.320 --> 0:04:11.960 tell you that. So what are you looking for in 0:04:12.160 --> 0:04:15.160 the coming quarter? Obviously, when it comes to streaming, it 0:04:15.160 --> 0:04:17.400 all comes down to content. Of course, Disney has a 0:04:17.520 --> 0:04:21.760 huge library, but you know, there's been some concern about 0:04:21.800 --> 0:04:24.799 how much of the content will continue to appeal to adults, 0:04:24.880 --> 0:04:28.280 something that Netflix, uh maybe doing a little bit better. 0:04:28.440 --> 0:04:31.279 You know, how do you think about those two players 0:04:31.320 --> 0:04:36.039 in a rapidly evolving streaming environment. So so I'm still 0:04:36.080 --> 0:04:39.400 having trouble calling myself an adult, even though I'm one 0:04:39.440 --> 0:04:42.880 and a half um and as an adult, I watched 0:04:42.880 --> 0:04:45.320 Disney Plus the minute you know, Obi Wan was a 0:04:45.320 --> 0:04:48.839 great show. I mean the minute they dropped anything Star Wars, 0:04:49.160 --> 0:04:51.800 I watch it. I you know what am I supposed 0:04:51.839 --> 0:04:54.080 to do? So I don't think they have a lot 0:04:54.080 --> 0:04:57.480 of trouble. And they've got Hulu for for really adult content, 0:04:57.520 --> 0:05:00.000 but they just recently dropped some R rated movies onto 0:05:00.000 --> 0:05:02.359 Disney Plus like Deadpool, which are a great content. But 0:05:02.920 --> 0:05:06.240 you know, it's really a high quality set of assets 0:05:06.240 --> 0:05:08.920 on Disney Plus, and Hulu is much more like television, 0:05:09.240 --> 0:05:12.960 So they really are appealing to lots of different demos 0:05:13.000 --> 0:05:15.359 and I don't think they lose the older demo at all. 0:05:15.480 --> 0:05:20.320 And parents like me absolutely trust Disney content with my kids. 0:05:20.320 --> 0:05:22.520 And you know, just recently I took YouTube away from 0:05:22.520 --> 0:05:25.840 them because YouTube shorts has become the garbage hole of 0:05:25.920 --> 0:05:29.800 hell and I don't want my kids watching garbage whole content, 0:05:29.880 --> 0:05:32.040 and if I put it on Disney Plus, there's nothing 0:05:32.080 --> 0:05:34.800 they can watch that's bad. So I think parents really 0:05:34.839 --> 0:05:37.320 trust the brand and and and that's starting to really 0:05:37.360 --> 0:05:40.640 pay off for them. That's quite a way to describe 0:05:40.839 --> 0:05:43.840 YouTube kids as a mom. Can you can you expand 0:05:43.839 --> 0:05:47.479 on that I'm not YouTube kids, YouTube shorts. You know, 0:05:47.520 --> 0:05:50.760 they can expand on that. Yeah. See what's happened is 0:05:50.800 --> 0:05:53.920 all that the creators on TikTok are now posting on 0:05:53.920 --> 0:05:58.320 on YouTube shorts and YouTube shorts is basically TikTok. And 0:05:58.360 --> 0:06:01.720 what they're getting now is lower quality content that now 0:06:01.839 --> 0:06:05.200 switches between so many different topics where you know, I 0:06:05.279 --> 0:06:08.400 monitor my kids YouTube because they watch gamers and and 0:06:08.440 --> 0:06:10.560 they'll watch Unspeakable and that's fine, but then it will 0:06:10.560 --> 0:06:12.760 flip them to a video of you know, like a 0:06:12.839 --> 0:06:15.920 Russian flame ly, you know, exploiting their children, throwing them 0:06:15.920 --> 0:06:17.359 in the pool or something. I'm like, what do you 0:06:17.440 --> 0:06:20.839 what are you doing? You know, so with shorts, I 0:06:20.880 --> 0:06:23.440 can't monitor it, and in two minutes it's it's a 0:06:23.480 --> 0:06:26.920 garbage horoll of content. It's just garbage, Ross Gerber, we 0:06:27.000 --> 0:06:31.279 never disappoint provocative as always. Thank you so much, Ross 0:06:31.360 --> 0:06:36.120 for sharing your thoughts with us. CEO Gerber Kawasaki now 0:06:36.200 --> 0:06:39.240 to a bloomberg scoop. Apple is stepping up and spending 0:06:39.240 --> 0:06:42.200 on original podcast The Tech Giant, signing an agreement with 0:06:42.200 --> 0:06:45.120 a Pulitzer Prize winning studio and holding talks with other 0:06:45.240 --> 0:06:48.760 companies about more deals. According to Bloomberg sources, that deal 0:06:48.800 --> 0:06:52.840 with Futuro Studios will fund development and production of podcasts, 0:06:52.839 --> 0:06:55.560 and in exchange, Apple will have the first chance to 0:06:55.600 --> 0:07:08.159 turn any podcast into a film or television show. Shortly 0:07:08.200 --> 0:07:11.160 after cheasing the possibility of share buy backs, Elon Musk 0:07:11.200 --> 0:07:14.560 has sold nearly seven billion dollars in Tesla, stuck Tesla 0:07:14.600 --> 0:07:17.960 and Twitter shareholders, appearing to welcome the news. It is 0:07:18.040 --> 0:07:21.320 Musk's biggest sale ever, and he says it's to avoid 0:07:21.360 --> 0:07:23.120 a last minute sell off if he's forced to go 0:07:23.160 --> 0:07:26.000 ahead with the deal to buy Twitter. Musk says he'll 0:07:26.040 --> 0:07:29.720 buy Tesla shares again if the deal doesn't close. Meantime, 0:07:30.040 --> 0:07:32.280 a number of people in Musk's inner circle have been 0:07:32.360 --> 0:07:35.440 roped into this legal fight, among them Oracles, Larry Ellison, 0:07:35.720 --> 0:07:38.920 venture capitalist Mark Andreson, as well as my next guest, 0:07:38.960 --> 0:07:43.559 longtime tech investor and entrepreneur David Sacks of Craft Ventures. David, 0:07:43.680 --> 0:07:46.760 good to have you back with us. So you got subpoena. 0:07:47.160 --> 0:07:48.800 I know you said you were getting a lawyer to 0:07:48.880 --> 0:07:51.040 try to make this go away. What's the latest on that? 0:07:51.200 --> 0:07:55.240 Any update? Uh? No, no update there yet, but I 0:07:55.920 --> 0:08:00.200 do have this very very large, very fraud subpoena. It's 0:08:00.240 --> 0:08:03.800 probably the thickest subpoena I've ever gotten. And I'm I 0:08:03.800 --> 0:08:06.080 know you're not supposed to talk about these things in 0:08:06.120 --> 0:08:08.280 these situations, but I have to kind of wonder if 0:08:08.280 --> 0:08:10.640 that's the point. Is I've been a vocal critic of 0:08:10.640 --> 0:08:14.200 Twitter's management. Maybe they don't want me talking about these issues. 0:08:15.120 --> 0:08:16.960 But look, I can just sort of save them a 0:08:16.960 --> 0:08:20.960 lot of time and hopefully some some legal fees. Uh, 0:08:21.000 --> 0:08:23.440 you know, I don't. I've never been in possession of 0:08:23.560 --> 0:08:27.880 non public information related to their contract dispute with Ellen. 0:08:28.000 --> 0:08:32.040 I've commented based on all the public information that's been 0:08:32.080 --> 0:08:35.280 out there, and and I'm usually when I tweet, I'm 0:08:35.360 --> 0:08:38.440 usually linking directly to that information that I'm commenting on. 0:08:38.520 --> 0:08:42.800 So this is sort of a overly broad phishing expedition 0:08:42.840 --> 0:08:45.440 and I look forward to hopefully being done with it soon. 0:08:46.200 --> 0:08:48.360 So look, we all know you go way back with Ellen. 0:08:48.760 --> 0:08:53.280 You work together at PayPal um, and you know you 0:08:53.360 --> 0:08:57.160 have expressed support um for him, at least in the 0:08:57.240 --> 0:08:59.640 last several months. When it comes to this Twitter deal. 0:09:00.400 --> 0:09:02.160 Looking at some of your tweets, the big question is, 0:09:02.200 --> 0:09:06.760 did you have any non public information. You talk about bots, 0:09:06.800 --> 0:09:09.760 you talk about you, you suggest that Jack Dorsey masterminded 0:09:09.800 --> 0:09:12.880 this whole thing. Is this all really just your opinion 0:09:13.360 --> 0:09:17.400 or do you know something the public doesn't. No, I don't. 0:09:17.679 --> 0:09:20.320 Um these look I'm a commentator. UM. You know I 0:09:20.360 --> 0:09:22.480 do a paw that's I've been doing a pod for 0:09:22.520 --> 0:09:25.240 a couple of years. I've been writing blog posts for years. Um, 0:09:25.360 --> 0:09:29.280 I've been tweeting for years. I express my opinion on 0:09:29.360 --> 0:09:32.240 these topics. This is all based on the public information, 0:09:32.600 --> 0:09:35.800 which again in the screenshot that you're showing, I'm linking 0:09:35.840 --> 0:09:39.520 to the public information that I'm reacting to. That was 0:09:39.520 --> 0:09:43.600 a screenshot from a court filing that Elon's lawyers filed, 0:09:43.960 --> 0:09:45.839 and those are the facts that I'm siting. So I'm 0:09:45.880 --> 0:09:50.080 just a public commentator on this issue. Um. And you 0:09:50.120 --> 0:09:53.400 know Twitter and Ellen they have a fully integrated merger 0:09:53.440 --> 0:09:55.480 agreement that was negotiated by some of the best lawyers 0:09:55.520 --> 0:09:58.720 in the world. I don't know what the relevance is 0:09:58.960 --> 0:10:03.720 of my public commentary on a on a contract dispute 0:10:03.760 --> 0:10:06.480 between them. It just doesn't make any sense. But lots 0:10:06.480 --> 0:10:08.400 of people were kind of roped into this. You saw 0:10:08.440 --> 0:10:11.640 that Joe Lonsdale tweeted that somehow he was roped into it, 0:10:11.679 --> 0:10:14.720 despite his only connection being a few snarky comments. So, 0:10:15.120 --> 0:10:18.880 I think this is just a very overbroad fishing expedition 0:10:18.920 --> 0:10:22.600 type subpoena. But when you, you know, multiplied by the 0:10:22.640 --> 0:10:26.280 number of people that they're uh that they're basically subpoena 0:10:26.400 --> 0:10:29.360 ng it, it kind of amounts to harassment. So I 0:10:29.720 --> 0:10:32.920 hope that the court will will limit will limit the suit. 0:10:34.080 --> 0:10:36.400 You mentioned your podcast, You and You're All In pod 0:10:36.559 --> 0:10:40.120 crew actually interviewed Musk a few months ago. I believe 0:10:40.280 --> 0:10:43.640 at your summit. Have you had communications with him over 0:10:43.640 --> 0:10:47.240 the last several months, private communications, and if so, you know, 0:10:47.880 --> 0:10:50.520 do any of them pertain to the deal and could 0:10:50.559 --> 0:10:54.880 it be at all relevant? Well, you're referring to an 0:10:54.880 --> 0:10:57.480 interview we did in public at the All In summit, 0:10:57.559 --> 0:10:59.200 and it's on YouTube as you want to go see it. 0:10:59.360 --> 0:11:02.320 I mean the news that that interview did make some news, 0:11:02.400 --> 0:11:05.680 but you can just go watch it to see. Um. 0:11:05.760 --> 0:11:08.920 You know, the question is do I have relevant information 0:11:09.080 --> 0:11:12.840 that pertains to this um contractual lawsuit? I don't think 0:11:12.920 --> 0:11:17.360 I do. UM, there's just nothing that that I know 0:11:18.000 --> 0:11:20.760 about this that wasn't already in the public sphere. What 0:11:20.880 --> 0:11:25.240 I've really offered our opinions, my own opinions, and they're 0:11:25.280 --> 0:11:30.079 not at anybody's behest or instigation or anything like that. Well, 0:11:30.200 --> 0:11:31.640 and I don't don't know. I don't know why that. 0:11:32.040 --> 0:11:33.480 I don't I don't know why that would be hard 0:11:33.520 --> 0:11:36.440 for anyone to understand, because, as you all know, Emily, 0:11:36.520 --> 0:11:39.600 I'm a person who hasn't been shy about expressing his 0:11:39.640 --> 0:11:43.720 opinions over the years. Absolutely, and right here on the show. Look, 0:11:43.760 --> 0:11:46.760 one concerned that you know, Twitter, Twitter might have is 0:11:46.800 --> 0:11:49.320 that Ellen has been texting all of his friends and 0:11:49.360 --> 0:11:53.280 asking them to tweet about bots. Um. You know what, 0:11:53.440 --> 0:11:55.760 what's your response to that, even though these people might 0:11:55.760 --> 0:11:59.640 not necessarily know or have any expert data or you know, 0:11:59.679 --> 0:12:03.640 spec show information about Twitter spot issues. No, I mean, 0:12:03.880 --> 0:12:06.439 like I said, none of this is at Elon's instigation 0:12:06.720 --> 0:12:10.040 or behest Um. It seems to me that Twitter does 0:12:10.120 --> 0:12:12.120 have a body issue based on my own users of 0:12:12.160 --> 0:12:14.679 the site. I mean, I remember, in particular, when I 0:12:14.720 --> 0:12:17.400 was tweeting about, for example, the Ukraine War, all of 0:12:17.440 --> 0:12:21.240 a sudden, these brand new accounts that had just been 0:12:21.240 --> 0:12:24.400 created with zero followers, they were you know, started in 0:12:24.880 --> 0:12:27.120 whatever March of this year. There all of a sudden, 0:12:27.120 --> 0:12:29.600 we're tweeting things back at me, and it felt like 0:12:29.800 --> 0:12:31.800 all of a sudden they were trying to drown me out. 0:12:32.200 --> 0:12:35.560 There's many examples like that. So you know, the information 0:12:35.600 --> 0:12:39.080 I'm relying on is what's come out publicly, and what 0:12:39.200 --> 0:12:42.320 got revealed is that the way that Twitter determines whether 0:12:42.360 --> 0:12:45.760 it has a body issue is that they're sampling a 0:12:45.840 --> 0:12:49.120 hundred accounts today. I mean, in my view, that does 0:12:49.160 --> 0:12:53.719 not sound sufficient. Now look, I'm not a statistician. This 0:12:53.800 --> 0:12:56.640 is just my opinion. You know, I'm sure they'll call 0:12:56.640 --> 0:13:00.320 sorts of expert witnesses, but in my in my view, 0:13:01.280 --> 0:13:05.120 having operated companies before, if you have a serious issue 0:13:05.200 --> 0:13:08.600 that could affect your company an excellential level, you do 0:13:08.760 --> 0:13:11.960 more than just sort of statistically sample a hundred accounts 0:13:11.960 --> 0:13:15.800 a day. That feels like a perfunctory exercise. So that's 0:13:15.840 --> 0:13:18.040 basically when I tweeted, and you know, I linked to 0:13:18.480 --> 0:13:21.920 the public information about this, and that's really all there 0:13:22.000 --> 0:13:27.000 is to it. Elon Musk at a Tesla event last week, 0:13:27.320 --> 0:13:31.200 had this to say about Twitter. Take a listen. I 0:13:31.240 --> 0:13:34.760 do understand the product quite well, so I think I've 0:13:34.800 --> 0:13:38.600 got a good sense of of where where to point 0:13:38.640 --> 0:13:44.160 the engineering team Twitter to make it radically better. So 0:13:44.200 --> 0:13:46.040 this is as he's still trying to get out of 0:13:46.040 --> 0:13:49.800 the deal. What do you make of those remarks, Um, David. 0:13:50.120 --> 0:13:53.079 If he is, like, say, the court forces him to 0:13:53.080 --> 0:13:54.640 buy Twitter, what do you think he does with it? 0:13:54.640 --> 0:13:57.600 Does he turn around and resell it or does he 0:13:57.640 --> 0:14:01.800 stick with it and try to quote unquote fix it. Well, 0:14:01.880 --> 0:14:04.320 I've always hoped that Ellen would buy Twitter. I mean, 0:14:04.400 --> 0:14:08.200 let's be clear, I'm so I've supported the deal and 0:14:08.240 --> 0:14:10.760 the idea of this deal, and I wanted it to 0:14:10.800 --> 0:14:12.640 go through because I think it would be a societal 0:14:12.720 --> 0:14:17.000 good if Ellen restored Twitter to being a free speech platform. 0:14:17.080 --> 0:14:20.440 That's been my main interest in this whole thing, is 0:14:20.480 --> 0:14:25.040 that I'd like to see uh censorship restrained and free 0:14:25.040 --> 0:14:28.520 speech restored on a major social network like Twitter. So 0:14:28.960 --> 0:14:31.360 I've always hoped that this deal will go through. At 0:14:31.400 --> 0:14:34.480 the same time, I've taken Ellen and his word when 0:14:34.480 --> 0:14:37.600 he tweeted that there's this body issue, that that is 0:14:37.640 --> 0:14:41.080 a serious issue, and you know, he has tried to 0:14:41.080 --> 0:14:43.400 get to the bombom of it, and it seems like 0:14:43.560 --> 0:14:47.160 Twitter hasn't been fully transparent about that, and so I 0:14:47.200 --> 0:14:50.440 can understand that issue from his point of view. I 0:14:50.440 --> 0:14:53.200 want to get your thoughts on another issue having to 0:14:53.240 --> 0:14:56.440 do with social media. We've got this hashtag civil war 0:14:56.520 --> 0:15:00.480 now trending on social media after the FBI searched Trump's 0:15:01.040 --> 0:15:04.480 moral lago property. As you've you've talked about many times 0:15:04.480 --> 0:15:06.400 on this show and in your writing, you are a 0:15:06.400 --> 0:15:10.200 free speech advocate, a free speech advocate on social media. 0:15:10.320 --> 0:15:13.200 But in this particular case, how do you think these 0:15:13.200 --> 0:15:19.040 platforms Twitter, read It, et cetera should handle something like this. Well, 0:15:19.120 --> 0:15:22.000 first of all, I would just if anyone is calling 0:15:22.040 --> 0:15:24.800 for violence, I would condemn that, and in fact, you 0:15:24.840 --> 0:15:28.080 could take down any post that is trying to incite 0:15:28.240 --> 0:15:31.600 violence or a crime. The content like that is not 0:15:31.640 --> 0:15:34.360 protected under the First Amendment. So even as a probe, 0:15:34.480 --> 0:15:36.800 you think the hashtag in itself, like anything with that 0:15:36.880 --> 0:15:39.160 hashtag should be taken No that that that The last 0:15:39.200 --> 0:15:40.960 what I was about to go with this is is 0:15:40.960 --> 0:15:43.040 saying is to say, look, first of all, you can 0:15:43.200 --> 0:15:47.560 take down, um, you know, content that would seek to 0:15:47.600 --> 0:15:50.960 incite violence and be consistent with the First Amendment. However, 0:15:51.400 --> 0:15:54.160 I don't think that's what this hashtag is necessarily doing. 0:15:55.000 --> 0:15:57.680 What I see is that people on the right are 0:15:57.720 --> 0:16:02.000 criticizing this raid on our lago, on President Trump's private home, 0:16:02.720 --> 0:16:06.000 in which thirty FBI agents who are dressed up as soldiers, 0:16:06.000 --> 0:16:08.960 wearing body armor and carrying, you know, a R fifteen 0:16:09.720 --> 0:16:13.360 weapons of war with their fingers just outside the trigger guard. 0:16:13.400 --> 0:16:18.640 I mean, it looked like a raid of something like, um, 0:16:18.680 --> 0:16:22.240 you know, Pablo Escobar's home. They're wondering whether this is 0:16:22.280 --> 0:16:24.720 the whether this is the beginning of a civil war, 0:16:25.000 --> 0:16:28.840 whether civil war is being declared on them, And I 0:16:28.840 --> 0:16:31.120 think that's a legitimate question to ask, and you've got 0:16:31.120 --> 0:16:33.760 to see it in the context of not just this event, 0:16:33.800 --> 0:16:36.680 but things have been happening for the last nineteen months. 0:16:36.760 --> 0:16:41.000 I mean, you've had draconian COVID policies that have given 0:16:41.440 --> 0:16:45.360 unelected bureaucrats ticutorial powers. Even here in California, Gavin Newsom 0:16:45.400 --> 0:16:47.960 as still ruling in their state of emergency. You've got 0:16:48.280 --> 0:16:51.280 the Department of Homeland Security, which is a law enforcement agency. 0:16:51.680 --> 0:16:55.600 They redefined misinformation as terrorism, and then they hired a 0:16:55.640 --> 0:16:58.640 Democratic Party operative to run a new agency, a sort 0:16:58.680 --> 0:17:01.960 of Ministry of truth, devoted to defining what that misinformation 0:17:02.000 --> 0:17:04.359 would be. And now you got this raid on President 0:17:04.359 --> 0:17:07.560 Trump's home, which is utterly unprecedented. And you know, I 0:17:07.600 --> 0:17:10.439 think I don't know what ultimately this was about, but 0:17:10.880 --> 0:17:14.520 I do think that these agencies deserve the public deserves 0:17:14.520 --> 0:17:17.159 an explanation from these agencies in terms of what they 0:17:17.160 --> 0:17:21.080 were after and what they were doing. All right, well, uh, 0:17:21.240 --> 0:17:25.639 once again you expressing your opinions. I should just underscore, um. 0:17:25.640 --> 0:17:29.760 But David always appreciate hearing your thoughts here on the show, UM, 0:17:29.800 --> 0:17:32.560 and will continue to follow h this Twitter story and more. 0:17:32.600 --> 0:17:36.439 Craft Ncher's general partner, David Zaxs appreciate it. Coming up 0:17:36.520 --> 0:17:40.000 much more of Bloomberg Technology. Stay with us. This is Bloomberg. 0:17:53.080 --> 0:17:55.920 Another story we're watching. Samsung just unveiled the latest generation 0:17:55.960 --> 0:17:59.720 of foldable phones. The new Galaxy Z Fold four and 0:18:00.240 --> 0:18:04.320 Flip four, come with a suite of incremental upgrades. Upgraded cameras, 0:18:04.320 --> 0:18:08.400 a more adorable display, a slimmer hinge. Samsung kept prices 0:18:08.640 --> 0:18:11.719 the same despite surging costs of materials and shipping. Prices 0:18:11.720 --> 0:18:25.280 are going to go up though for Samsung's accessory Climer. Well. 0:18:25.320 --> 0:18:27.600 Come back to Bloomer Technology. Emily changing in San Francisco. 0:18:27.640 --> 0:18:29.760 I want to get back to earnings and shows of 0:18:29.880 --> 0:18:33.200 Sons after hours, I'd let they're back with us, and yeah, 0:18:33.320 --> 0:18:36.560 not good news. Sons down almost twenty percent, that's right, 0:18:36.600 --> 0:18:39.040 and twenty percent in after hours. They cut their full 0:18:39.119 --> 0:18:41.760 year of sales outlook to one point seven three to 0:18:41.880 --> 0:18:45.400 one point seven six billion. They previously forecast one point 0:18:45.520 --> 0:18:48.359 nine five billion to two billion dollars. And they're listing 0:18:48.520 --> 0:18:52.040 every single thing we've already heard in this earning season 0:18:52.040 --> 0:18:54.600 in terms of what's going wrong here. A stronger dollar 0:18:54.960 --> 0:18:58.080 is hurting consumers in all kinds of markets around the world. 0:18:58.320 --> 0:19:01.359 Inflation is putting off consumer spending. But they're also citing 0:19:01.400 --> 0:19:05.640 some elements of shifting consumer behaviors, CEO Patrick Spence saying 0:19:05.640 --> 0:19:08.480 that they're seeing consumers spend less on goods, more on 0:19:08.600 --> 0:19:12.199 services and travel. They're also hurt by supply chain and 0:19:12.240 --> 0:19:14.920 a backlog. They basically had miss sales opportunities in the 0:19:15.000 --> 0:19:18.320 quarter because the supply chain for their hardware has still 0:19:18.400 --> 0:19:22.480 not fixed itself. So real severe reaction here and after ours. 0:19:23.200 --> 0:19:25.399 I mean, this was a stock that has suffered anyway 0:19:25.440 --> 0:19:29.120 down year to date, but there was some hope that 0:19:29.400 --> 0:19:31.560 you know, at least on the supply side, so Nose 0:19:31.640 --> 0:19:35.359 could have improved things. They also recently, for example, launched 0:19:35.359 --> 0:19:39.199 their own version of Alexa and a voice recognition to 0:19:39.280 --> 0:19:41.600 compete in that market. But as we know, they're very 0:19:41.600 --> 0:19:44.159 sensitive to what Amazon is doing as well. This is 0:19:44.160 --> 0:19:46.880 not good news for Sons. Really severe reaction after ours, 0:19:47.000 --> 0:19:49.399 one will look at on Thursday as well. All right, 0:19:50.160 --> 0:19:54.359 thank you. Meantime, as the pandemic has ammed, that means 0:19:54.440 --> 0:19:57.360 less time playing games and add to that rising prices 0:19:57.400 --> 0:20:01.520 and also less money being spent in game purchases, dressing 0:20:01.600 --> 0:20:05.439 up avatars and such. That's left some game publishers, console 0:20:05.520 --> 0:20:08.439 and PC makers struggling to maintain the surge and growth 0:20:08.440 --> 0:20:13.080 seen during the pandemic. Enter Roadblocks, which just reported bookings 0:20:13.080 --> 0:20:15.920 that were disappointing to some, but the company is still 0:20:15.960 --> 0:20:19.160 growing and expanding into the metaverse. I want to bring 0:20:19.160 --> 0:20:21.919 in Roadblocks CEO and co founder David Buzuki now for 0:20:22.040 --> 0:20:24.439 more on that. David, great to have you back with 0:20:24.520 --> 0:20:27.639 us in an exclusive interview. Look, there's no question the 0:20:27.640 --> 0:20:30.359 macro environment has been tough for a lot of companies, 0:20:30.440 --> 0:20:33.439 tech companies and gaming companies in particular. How are you 0:20:33.480 --> 0:20:40.399 seeing these macro economic forces impact Roadblocks in particular. Hey, Emily, 0:20:40.440 --> 0:20:43.359 thank you for having us on the show, and we 0:20:43.440 --> 0:20:45.520 reach out to everyone who's having a tough time in 0:20:45.520 --> 0:20:50.280 these economic times. Roadblocks just had our biggest month in 0:20:50.400 --> 0:20:54.000 history as far as engagement, as far as users in 0:20:54.040 --> 0:20:57.120 the US and Canada, around the world, and in all 0:20:57.240 --> 0:21:00.720 age demographics, and we are not pointed at all. We 0:21:00.800 --> 0:21:04.399 had an amazing July and a wonderful Q two. I 0:21:04.440 --> 0:21:07.560 think what it highlights is that Roadblocks is not a game, 0:21:07.800 --> 0:21:12.240 or maybe even not a game platform. It's a immersive 0:21:12.320 --> 0:21:16.399 human experience platform where people come together to play, but 0:21:16.480 --> 0:21:18.960 they come together to learn, they come together to go 0:21:19.080 --> 0:21:23.360 to concerts, and ultimately the type of technology we're working 0:21:23.400 --> 0:21:26.640 on is almost more of a utility that people use 0:21:26.760 --> 0:21:31.080 in their daily lives. Your fastest demographic in the US 0:21:31.119 --> 0:21:34.280 and Canada at least is actually, you know, seventeen to 0:21:34.359 --> 0:21:37.239 twenty four years old, outpacing the younger kids. You know, 0:21:37.359 --> 0:21:40.640 my my son, as I've talked with you about, who's 0:21:40.680 --> 0:21:43.840 in that younger cohort and loves playing Roadbox. What do 0:21:43.880 --> 0:21:47.800 you think is driving that. We've always had the vision 0:21:48.040 --> 0:21:52.200 that Roadblocks is a civil platform for people of all ages. 0:21:52.400 --> 0:21:56.520 It brings them together, allows them to connect authentically, to 0:21:56.680 --> 0:22:00.919 do things together, whether it's playing, whether it dissecting a 0:22:01.000 --> 0:22:05.440 frog in school, whether it's graduating from high school. And 0:22:05.720 --> 0:22:08.320 I think what we're seeing is as the players on 0:22:08.440 --> 0:22:12.639 Roadblocks get older, they're inviting friends. This is this growth 0:22:12.640 --> 0:22:16.000 in seventeen through twenty four is driven by three three things. Really. 0:22:16.000 --> 0:22:19.959 One is amazing content. Almost half of the content on 0:22:20.119 --> 0:22:24.080 Roadblocks is now played more by over thirteen players than 0:22:24.200 --> 0:22:27.560 under third team players. Is driven by the core virility 0:22:27.640 --> 0:22:32.560 of our platform as driven by constant technical innovation, new 0:22:32.680 --> 0:22:37.960 amazing things around avatars, around immersive UM, layered clothing that 0:22:38.000 --> 0:22:41.080 allows people to be more closely identified with who they 0:22:41.119 --> 0:22:44.480 want to be, uh, spatial audio that we rolled out, 0:22:44.680 --> 0:22:47.919 higher fidelity materials. So it's is really a bunch of 0:22:47.920 --> 0:22:53.280 things driving this growth. How is engagement and monetization different 0:22:53.400 --> 0:22:59.360 for a slightly older age cohort? Yeah, what is UM. 0:22:59.520 --> 0:23:05.080 What's interesting is we've been monetizing very well across all ages. 0:23:05.760 --> 0:23:10.000 One can imagine as we start looking at older demographics, 0:23:10.160 --> 0:23:14.439 they do generally tend to spend more money online. And 0:23:14.480 --> 0:23:17.160 some of the products we are working on right now 0:23:17.320 --> 0:23:21.280 that we've hinted on including a visionary ad server product 0:23:21.359 --> 0:23:25.440 that's immersive and native and actually feels fun rather than 0:23:25.480 --> 0:23:28.080