WEBVTT - Chips in Focus and Epic Games' Mobile Storefront 0:00:01.200 --> 0:00:04.880 From markhard where Innovation, Money and Power co line in 0:00:05.000 --> 0:00:09.920 Silicon Valley, NBN. This is Bloomberg Technology with Caroline Hyde 0:00:09.960 --> 0:00:10.360 and Ed. 0:00:10.400 --> 0:00:11.080 Loved Love. 0:00:24.560 --> 0:00:26.880 Live from New York and San Francisco. This is Bloomberg 0:00:26.880 --> 0:00:30.360 Technology coming up. Chips in focus as equipment maker of 0:00:30.440 --> 0:00:33.280 prime materials. It does the points on its forecast, while 0:00:33.320 --> 0:00:36.840 Texas Instruments scores cash from the Chips act Plus. 0:00:36.840 --> 0:00:40.479 Epic Games launches a new mobile storefront. After years of 0:00:40.560 --> 0:00:43.199 legal wrangling with Apple and Google and. 0:00:43.159 --> 0:00:47.120 Seagrammare Edgar Brundman Junior as close to making a rival 0:00:47.159 --> 0:00:51.360 offer for Paramount is a bidding war brewing. First. I 0:00:51.440 --> 0:00:54.080 was checking on these markets because it is a good week. 0:00:54.640 --> 0:00:54.720 Ed. 0:00:54.840 --> 0:00:56.680 If you are along these markets, then that's that one 0:00:56.760 --> 0:01:00.000 hundred having its best week in the year since November. 0:01:00.080 --> 0:01:02.480 We're almost five percent. That is a call one point 0:01:02.560 --> 0:01:05.560 three trillion dollars being added to the overall benchmark. And 0:01:05.600 --> 0:01:09.520 it is a significant well sigh of relief post volatility 0:01:09.520 --> 0:01:11.560 of the last couple of weeks. Once again, we've got 0:01:11.560 --> 0:01:13.880 some consumer data just showing sentiment is on the up 0:01:13.920 --> 0:01:16.080 to date. It counts counteracts some of that weakness, and 0:01:16.080 --> 0:01:18.120 the housing data on the day. No, we're just done 0:01:18.120 --> 0:01:19.520 a little bit on the day, but it is a 0:01:19.560 --> 0:01:22.319 strong week. What are you looking at on the microad I'm. 0:01:22.200 --> 0:01:25.400 Going to go straight to Applied Materials and a company 0:01:25.440 --> 0:01:27.920 that makes the machines that make the chips. It's down 0:01:27.959 --> 0:01:31.280 three percent, be in the courter gone, but there were 0:01:31.319 --> 0:01:35.360 really high expectations in its forecast for the current period. 0:01:35.400 --> 0:01:38.160 Where the market wants to see that all this investment 0:01:38.520 --> 0:01:42.720 around AI in particular is translating into more equipment or 0:01:42.920 --> 0:01:46.400 chip manufacturing equipment investment. We'll get to that in just 0:01:46.560 --> 0:01:49.560 a moment. The other top story in the semiconductor space, 0:01:49.680 --> 0:01:53.040 Texas Instruments set to receive one point six billion dollars 0:01:53.320 --> 0:01:56.160 in Chip ACT grants and three billion dollars in loans 0:01:56.480 --> 0:02:00.160 the Buying Administration announced today marks the latest major award 0:02:00.280 --> 0:02:05.240 from the program that's designed to boost American semiconductor manufacturing. 0:02:05.440 --> 0:02:07.400 We're joined by Bloomozi and King here on set in 0:02:07.400 --> 0:02:10.400 San Francisco. A lot of the money's been allocated Texas 0:02:10.440 --> 0:02:13.800 Instruments makes all kinds of more basic chips. Just the 0:02:13.880 --> 0:02:16.040 terms that they've agreed with the administration here. 0:02:16.520 --> 0:02:18.280 Yeah, I mean, the way to look at this is 0:02:18.440 --> 0:02:21.520 nothing is set. A lot of money has been promised, 0:02:21.960 --> 0:02:24.920 But from a taxpayer's perspective, it's like, Okay, you have 0:02:25.000 --> 0:02:27.079 to do this, you have to go into production, actually 0:02:27.080 --> 0:02:29.280 build this, and then we'll give you the money. So 0:02:29.639 --> 0:02:32.680 that's the way to look at it from a general perspective. 0:02:32.760 --> 0:02:34.760 The flip side of it, Wall Street is like, this 0:02:34.800 --> 0:02:38.680 is how many dollars, how many cents on the EPs 0:02:38.720 --> 0:02:41.320 that they'll be gaining, how much less CAPEX will be spending. 0:02:42.000 --> 0:02:45.079 Still, they are spending a lot, and it is all 0:02:45.120 --> 0:02:47.280 about the focus on chips at the moment and the 0:02:47.280 --> 0:02:49.679 focus on AI. Just take us back to applying materials 0:02:50.200 --> 0:02:53.640 moment in because look, the numbers were good, but the 0:02:53.639 --> 0:02:56.240 forecast perhaps just not living up to the AI euphoria. 0:02:57.520 --> 0:02:59.760 Yeah, I mean there are two things going on here. 0:03:00.560 --> 0:03:03.200 Anything that's to do with high end logic, which is 0:03:03.280 --> 0:03:07.280 for data centers and by extension, AI is doing really well. 0:03:07.280 --> 0:03:09.680 There's a lot of demand for that. On the flip side, 0:03:09.760 --> 0:03:13.080 some of the types of chips that say, are for 0:03:13.280 --> 0:03:17.000 automakers or for industrial equipment, there's not a lot of 0:03:17.400 --> 0:03:20.680 strong demand growth there at the moment, So perhaps machinery 0:03:20.760 --> 0:03:22.960 orders for that particular sector are a little bit weaker. 0:03:23.080 --> 0:03:25.880 There's kind of a balance of factors going on there. 0:03:25.720 --> 0:03:28.880 That automotive parts kind of consistent with NXP that we've 0:03:28.919 --> 0:03:31.639 heard it on an ongoing basis. Just real quick, what's 0:03:31.680 --> 0:03:35.000 the difference between applied materials and ASML. You know, if 0:03:35.000 --> 0:03:37.920 you think about what those machines are actually used for. 0:03:38.120 --> 0:03:41.480 Yeah, I mean think about applied Materials as much more generalists. 0:03:41.520 --> 0:03:44.880 They make a whole range of different pieces of equipment. 0:03:45.120 --> 0:03:49.520 ASML is very specific. It's making lithography. They're essentially the 0:03:49.600 --> 0:03:52.320 lasers that are burning the holes to make the pattern 0:03:52.360 --> 0:03:55.240 on the chips. Applyed Materials is putting materials on those 0:03:55.440 --> 0:03:56.320 silicon wafers. 0:03:57.040 --> 0:03:59.560 Bloombergsy and King, thank you very much. Let's take a 0:03:59.600 --> 0:04:03.840 closer look at chips globally. Japan is applying foreign trade 0:04:03.840 --> 0:04:07.040 regulations to chip making equipment as part of its effort 0:04:07.160 --> 0:04:10.720 to secure stable supply chains, The Ministry of Finance said 0:04:10.840 --> 0:04:14.120 earlier today, foreign investors are now required to give prior 0:04:14.240 --> 0:04:18.760 notice when conducting direct investment in equipment tieds chip making. 0:04:18.800 --> 0:04:21.599 This in an effort to address the risk of key 0:04:21.839 --> 0:04:24.640 technology leaks and interesting global story carrac and so. 0:04:24.640 --> 0:04:26.720 Much going on with ships. In fact, overall they are 0:04:26.720 --> 0:04:29.480 weighing on the overall benchmarks today because of that apply 0:04:29.600 --> 0:04:32.159 materials number. Just get broad a look at the tech 0:04:32.160 --> 0:04:34.880 market right now. Janet Mumors with us RBC Brewint, head 0:04:34.880 --> 0:04:39.760 of market Analysis, and Janet, we've had an extraordinary few weeks. 0:04:39.800 --> 0:04:42.960 To put it bluntly, what are you making of AI 0:04:43.080 --> 0:04:46.440 euphoria reality and what it means for the tech benchmarks 0:04:46.520 --> 0:04:46.920 right now? 0:04:48.040 --> 0:04:50.799 Hi, good one night, Caroline, Thanks for having I think 0:04:51.400 --> 0:04:53.920 one thing is that the evaluations are some of these 0:04:54.880 --> 0:04:58.560 megacap starks and AI exposed starks have come down. I 0:04:58.600 --> 0:05:00.800 think that is good news for in sirs who are 0:05:00.800 --> 0:05:03.359 not invested yet. They can actually get in with a 0:05:03.400 --> 0:05:08.640 better valuation into companies that still have great long term prospects. 0:05:08.680 --> 0:05:11.040 And I also think that the rebounds, the very quick 0:05:11.080 --> 0:05:14.719 rebound that we've seen suggests that, you know, if the 0:05:14.800 --> 0:05:18.240 data is okay, continues to suggest that the US economy 0:05:18.279 --> 0:05:18.880 is still growing. 0:05:19.200 --> 0:05:21.320 You know, there's still a lot of demand for these 0:05:21.360 --> 0:05:22.360 high quality sauce. 0:05:22.680 --> 0:05:25.960 And I will say our position would be to keep 0:05:27.080 --> 0:05:30.320 being focused on high quality growth companies, which a lot 0:05:30.320 --> 0:05:32.800 of these AIS old starts are. And I think some 0:05:32.839 --> 0:05:37.240 of the observations from companies' guidance, from the big tech 0:05:37.240 --> 0:05:39.839 companies for example, is that they prefer to actually spend 0:05:39.839 --> 0:05:42.640 more on AI instead of being left behind. So I 0:05:42.680 --> 0:05:46.640 think that this is still very much a very important trade. 0:05:47.120 --> 0:05:52.160 Why then, was everyone suddenly so nervous around it, Janet? 0:05:52.320 --> 0:05:55.719 Why do you think that, Yeah, we're still twelve percent 0:05:55.720 --> 0:05:57.360 of of our highs on the socks and next, But 0:05:57.440 --> 0:06:00.479 why haven't we managed to rebound to the extent that 0:06:00.560 --> 0:06:01.640 has your level of conviction? 0:06:03.640 --> 0:06:05.279 Yes? I think so. 0:06:05.680 --> 0:06:09.040 Generally speaking, a lot of focus is still placed on 0:06:09.160 --> 0:06:10.799 the economic data. 0:06:11.720 --> 0:06:13.120 We got some relief I think in. 0:06:13.080 --> 0:06:15.400 The past week or so with solid economic data and 0:06:15.440 --> 0:06:18.400 slower inflation, but I think there are still uncertainty surrounding that. 0:06:18.600 --> 0:06:21.760 I think particularly for cheap companies. I think the politics 0:06:21.760 --> 0:06:23.800 of that still played a pretty important part. 0:06:24.160 --> 0:06:27.800 I remember when esmlt. 0:06:26.720 --> 0:06:31.320 UH and then there is this suggestion that Donald Trump 0:06:31.400 --> 0:06:34.039 is going to uh, you know, make a stricter for 0:06:34.160 --> 0:06:40.200 US companies to export high tech equipment and things like that, 0:06:40.680 --> 0:06:43.920 and also of course the Biden administration tightening the stands. 0:06:43.960 --> 0:06:46.040 I think these are still ongoing concerns. 0:06:46.040 --> 0:06:47.599 So I think that is the reason why the cheap 0:06:47.640 --> 0:06:50.080 makers are not bouncing bad as much as the other 0:06:50.240 --> 0:06:50.920 wider stocks. 0:06:52.200 --> 0:06:54.600 Janet Hired zed in San Francisco. I've been reading your 0:06:54.600 --> 0:06:58.359 research and you've been thinking about reads real estate investment trusts. 0:06:58.720 --> 0:07:01.240 So have I, and I've been writing about how you 0:07:01.279 --> 0:07:04.159 can look at their pipeline in the context of data 0:07:04.200 --> 0:07:07.400 center investments. I didn't realize it was such a focus 0:07:07.400 --> 0:07:10.520 of opportunity for some of the reads out there. Is 0:07:10.560 --> 0:07:12.880 that an area that you look for for data sets 0:07:12.880 --> 0:07:15.000 to kind of work out how long this investment cycle 0:07:15.040 --> 0:07:15.640 has to run. 0:07:17.640 --> 0:07:20.000 Yes, I think in terms of reads, I think data 0:07:20.040 --> 0:07:23.440 center is one of the more resilient areas actually throughout 0:07:23.440 --> 0:07:26.280 the previous sell off, and I think that that is 0:07:26.280 --> 0:07:29.240 still a very valid investment point. But what we're looking 0:07:29.280 --> 0:07:32.520 at in terms of reads is basically broadening out of 0:07:32.600 --> 0:07:36.160 the other reeds area because simply the valuation has gone 0:07:36.360 --> 0:07:40.560 much more attractive. And I think particularly right now, we're 0:07:40.600 --> 0:07:42.240 at the stage where the fan is going to cut 0:07:42.320 --> 0:07:45.560 interest rates, and you know, expectation is building that they 0:07:45.600 --> 0:07:48.559 will be you know, further cuts well into twenty twenty 0:07:48.600 --> 0:07:50.800 five and beyond, so I think, you know, being a 0:07:50.880 --> 0:07:54.120 very interest rate sensitive sector is likely to benefit from 0:07:54.160 --> 0:07:58.000 this monetary policy development, and I think the valuation is 0:07:58.080 --> 0:08:00.360 just adding to that attractive Jesus. 0:08:01.880 --> 0:08:03.760 Earlier in the show, Caroline was looking at the NASA 0:08:03.880 --> 0:08:06.960 one hundred on the weekly basis. We've had a lot 0:08:06.960 --> 0:08:10.640 of conflicting economic data. What has the data all told 0:08:10.680 --> 0:08:13.600 by Friday Afternoon told you about the state of the 0:08:13.600 --> 0:08:15.160 global economy. 0:08:16.000 --> 0:08:19.440 I think everything is still fine. 0:08:19.480 --> 0:08:23.000 I think the labor market is obviously is lowing down, 0:08:23.040 --> 0:08:26.960 but it is actually as expected, and in fact, it 0:08:27.040 --> 0:08:29.320 is a trend that the Fatter Reserve would like to see. 0:08:29.400 --> 0:08:33.160 If you look at the job opening unemployed person is 0:08:33.920 --> 0:08:36.840 going down, but it is basically what I would describe 0:08:36.880 --> 0:08:39.439 at a normalization back to where it's pre COVID. 0:08:39.480 --> 0:08:41.440 So I think this is all positive development. 0:08:41.760 --> 0:08:45.920 I think we're saying a slowdown in consumer because the 0:08:46.040 --> 0:08:50.319 savings are being depleted, but I think the key thing 0:08:50.360 --> 0:08:52.920 is that real wage book is very much positive. I 0:08:53.000 --> 0:08:55.959 think that that is a very fundamental supportive factor out there. 0:08:56.760 --> 0:09:01.000 So overall speaking, the economy is still fine, slowing but 0:09:01.240 --> 0:09:04.000 as expected, and we're not seeing the economy falling off 0:09:04.040 --> 0:09:06.240 a cliff, and soft lending is still very much in 0:09:06.280 --> 0:09:06.840 play here. 0:09:07.559 --> 0:09:11.280 Janet what is then the most important piece of data 0:09:11.280 --> 0:09:14.920 in the next few weeks. Is it fed Macro? Is 0:09:14.960 --> 0:09:18.520 it August twenty eighth in video results. 0:09:18.960 --> 0:09:22.760 Yeah, Nabidia is It's definitely a very important corporate earnings 0:09:22.800 --> 0:09:26.440 I think yeah, that would be a very important point 0:09:26.480 --> 0:09:30.400 for us to watch. Basically we know the volatility around 0:09:30.400 --> 0:09:33.199 that event and the ability to actually spill over to 0:09:33.240 --> 0:09:36.760 the rest of the megacap industry. And also investors will 0:09:36.800 --> 0:09:41.240 be seeking validation on whether that AI orders is still 0:09:41.440 --> 0:09:43.960 very strong. And of course I think any data that 0:09:44.080 --> 0:09:47.000 relates to the labor market will be a big focus. 0:09:47.040 --> 0:09:49.760 I think inflation side of things, we got more confirmation 0:09:49.880 --> 0:09:54.240 that is okay and unlikely to see a volatility around inflation, 0:09:54.360 --> 0:09:56.280 So I think labor market data for sure. 0:09:57.800 --> 0:10:00.280 Such such a good question by Caroline though August twenty 0:10:00.280 --> 0:10:04.120 eight from Video and Macro level event. Maybe Janet Mouie, 0:10:04.200 --> 0:10:06.720 RBC Brewing, head of Market Analysis. Great to have you 0:10:06.760 --> 0:10:08.720 back on the show. Thank you very much. Now, coming up, 0:10:08.840 --> 0:10:10.679 we're going to be joined by Josh Chapman, who is 0:10:10.720 --> 0:10:13.760 a managing partner at Convoy, a firm focused on the 0:10:13.840 --> 0:10:16.400 video games industry, and we're going to discuss epic Games's 0:10:16.679 --> 0:10:19.439 new mobile storefront, which is out today. By the way, 0:10:19.480 --> 0:10:22.000 heading to break, we're looking at shares of Rivian. I 0:10:22.000 --> 0:10:25.160 broke this story overnight with Kyle Porter that they've had 0:10:25.160 --> 0:10:27.559 to pause the line that makes the delivery vans for 0:10:27.600 --> 0:10:31.080 Amazon due to a part shortage. The stock declines are 0:10:31.080 --> 0:10:34.199 really accelerated in the session, almost three percent. It won't 0:10:34.240 --> 0:10:37.960 affect long term their production targets. They'll make that up. 0:10:38.200 --> 0:10:41.319 They're not changing guidance, and all the workers will We've paid, 0:10:41.360 --> 0:10:43.920 et cetera. But it's interesting that this continues to be 0:10:43.960 --> 0:10:46.280 an issue in the supply chain for Rivian, such a 0:10:46.280 --> 0:10:50.199 closely watched ev name. Keep tuned, Stay tuned. This is 0:10:50.200 --> 0:10:51.679 Blombow Technology. 0:11:00.960 --> 0:11:04.680 Epic debut for Epic Games, A Fortnite maker is launching 0:11:04.720 --> 0:11:07.800 a new mobile storefront after four years of legal wrangling 0:11:07.800 --> 0:11:11.079 with Apple and Google over their app store practices, now 0:11:11.080 --> 0:11:13.640 the Epic CEO saying it may have lost up to 0:11:13.720 --> 0:11:16.480 one billion dollars in revenue after Fortnite was removed from 0:11:16.520 --> 0:11:20.000 Apple's App store Whennipek tried to circumvent that fee with 0:11:20.080 --> 0:11:23.280 its own storefront back in twenty twenty, joining us now 0:11:23.400 --> 0:11:27.120 Josh Chapman managing partner of Convoy and look, it's returning 0:11:27.120 --> 0:11:31.360 to iPhones in Europe, to Android devices worldwide? Can people 0:11:31.360 --> 0:11:33.040 get it? Access it? What's the pickup? 0:11:34.200 --> 0:11:34.600 Right now? 0:11:34.640 --> 0:11:37.720 You can only access the Epic Games Store in the 0:11:37.760 --> 0:11:40.440 EU if you're on the iOS, and globally on Android. 0:11:40.440 --> 0:11:43.640 As you mentioned, it is an absolute pain to download 0:11:43.760 --> 0:11:46.640 on both stores. So Apple and Google are fighting this 0:11:46.760 --> 0:11:49.120 tooth and nail that I just watched some videos that 0:11:49.200 --> 0:11:50.760 came out this morning. We're going to be trying it 0:11:50.800 --> 0:11:54.199 all day today. Is this is requiring anywhere from ten 0:11:54.240 --> 0:11:57.280 to twenty steps. There's lots of flags and alerts on 0:11:57.400 --> 0:12:00.960 both phone devices saying hey are you sure? Are you 0:12:01.040 --> 0:12:03.880 sure you want to download this? So these stores are 0:12:03.920 --> 0:12:05.439 going to fight this tooth and nail. 0:12:06.400 --> 0:12:09.720 An Apple spokesperson clarified to Bloomberg that it is a 0:12:09.760 --> 0:12:14.199 five step process in Europe at least, not fifteen. I'm 0:12:14.200 --> 0:12:15.160 glad to have you on the show. 0:12:15.240 --> 0:12:15.360 Right. 0:12:15.400 --> 0:12:18.200 You're a firm that invests in video games startups that 0:12:18.240 --> 0:12:21.240 want to disrupt the industry. That's what Sam Sweeny's trying 0:12:21.280 --> 0:12:23.640 to do. The argument that if you have more stores, 0:12:23.679 --> 0:12:26.160 you have a more competitive market. One hundred and eighty 0:12:26.200 --> 0:12:28.880 billion dollar video games market, half of which is mobile. 0:12:29.320 --> 0:12:30.920 Is he right about that argument? 0:12:31.880 --> 0:12:34.000 He is right that there is It is better for 0:12:34.040 --> 0:12:36.800 the games industry if there are more stores, more options, 0:12:36.800 --> 0:12:40.120 and more competitive pricing. That said, I think what he's 0:12:40.160 --> 0:12:42.960 fighting for is fantastic and will be positive in this 0:12:43.240 --> 0:12:47.000 development today is positive for the games industry. That said, 0:12:47.040 --> 0:12:50.240 Apple is well within their right having the platform they've built, 0:12:50.440 --> 0:12:52.560 to defend it as much as they can, and so 0:12:52.600 --> 0:12:55.160 the courts of the US have decided that yes, they're 0:12:55.240 --> 0:12:57.719 not a monopoly. They but they have to allow for 0:12:58.320 --> 0:13:01.560 third party payments to be processed. Essentially, the way I 0:13:01.640 --> 0:13:03.080 read that and the way we read that as a 0:13:03.120 --> 0:13:06.520 firm here at Convoys that that's kind of a meet 0:13:06.559 --> 0:13:09.560 in the middle. Right, let's let them do off platform payments. 0:13:10.440 --> 0:13:12.280 But you're not a monopoly, and you got to let 0:13:12.280 --> 0:13:14.120 Epic Games launch a store on your app store. 0:13:14.240 --> 0:13:16.800 I mean, the reason that this is happening for iOS 0:13:16.800 --> 0:13:19.280 in Europe and not here is because the Digital Markets 0:13:19.320 --> 0:13:22.560 Act and the fact that Europe's decided that Apple is 0:13:22.559 --> 0:13:24.840 acting as a gatekeeper in some way Google too with 0:13:24.880 --> 0:13:27.360 these app stores, and they've got to change. But often 0:13:27.360 --> 0:13:30.560 what happens in Europe ends up happening here in the US. 0:13:31.240 --> 0:13:34.840 So when if you're saying they're pushing and fighting tooth 0:13:34.880 --> 0:13:36.840 and nail, will we ever see it occurring here in 0:13:36.880 --> 0:13:39.960 the US unless there's our own antitrust issues that are 0:13:40.000 --> 0:13:40.719 set to bear here. 0:13:41.679 --> 0:13:43.679 So it took about four years to get to this 0:13:43.760 --> 0:13:46.360 point just in the EU. So I think that we're 0:13:46.360 --> 0:13:49.439 looking at another just a prediction three to five years 0:13:49.440 --> 0:13:51.559 before we see this really happen in the United States 0:13:51.920 --> 0:13:54.840 unless a huge ruling comes down from the Supreme Court 0:13:55.200 --> 0:13:57.080 in the United States, if they decide to take this 0:13:57.200 --> 0:14:00.000 court and take the appeal, which they rejected I believe 0:14:00.040 --> 0:14:02.560 earlier this year last year. And so I think we're 0:14:02.600 --> 0:14:04.800 looking at a very long drawn out battle. And in 0:14:04.800 --> 0:14:08.880 the meantime, Apple is making billions and billions a week 0:14:09.160 --> 0:14:11.600 off of the app store. In about sixty to seventy 0:14:11.640 --> 0:14:15.040 percent of all revenue on Google's App Store and on 0:14:15.559 --> 0:14:19.040 Apple's App Store comes from the video gaming space alone. 0:14:19.120 --> 0:14:22.000 And so the reason why they were fighting, yeah, well. 0:14:21.960 --> 0:14:23.640 Let me just jump in and Carra, I'm sorry us 0:14:24.520 --> 0:14:27.400 we're talking about that Apple side of the story. Let's 0:14:27.400 --> 0:14:30.440 be under no illusions. Epic want to make money from 0:14:30.440 --> 0:14:33.400 this arrangement, right, they have the target of one hundred 0:14:33.440 --> 0:14:38.720 million downloads by a certain period of time. Ambitious. Will 0:14:38.760 --> 0:14:40.600 they be successful is the question. 0:14:42.040 --> 0:14:44.560 I think Epic Games is going to make a lot 0:14:44.600 --> 0:14:46.880 of money off of this move today. I think they'll 0:14:46.880 --> 0:14:49.920 make it primarily through Android globally, and then I think 0:14:49.960 --> 0:14:52.440 they'll secondarily make it on iOS. I think it'll be 0:14:52.440 --> 0:14:55.400 in that order of magnitude. But Epic Games as a 0:14:55.440 --> 0:14:59.040 private company that owns Fortnite and Rocket League and Fall guys. 0:15:00.160 --> 0:15:03.440 They have now recently launched uefn, which is basically their 0:15:03.520 --> 0:15:06.800 Roadblocks competitor. They watched Roadblocks have success, so they're launching 0:15:06.800 --> 0:15:10.640 their own sort of user generated content platform. This is 0:15:10.680 --> 0:15:13.360 a continued effort for Epic Games to increase their margin. 0:15:13.400 --> 0:15:16.000 Profile Mobile is a perfect way to do that, and 0:15:16.040 --> 0:15:18.600 whether that's an acquisition or an IPO in the future, 0:15:18.800 --> 0:15:20.920 Epic Games is playing their hand very well and this 0:15:20.960 --> 0:15:22.520 will work out in their favor for sure. 0:15:23.400 --> 0:15:26.720 I think the data showed that some thirty five million 0:15:26.760 --> 0:15:30.240 people played Fortnite for more than six hundred million hours 0:15:30.280 --> 0:15:33.600 in July on Xbox in PlayStation. Just give us the 0:15:33.680 --> 0:15:37.000 context of how popular Fortnite is compared to the rest 0:15:37.040 --> 0:15:38.160 of the gaming landscape. 0:15:39.160 --> 0:15:41.400 Before Fortnite was kicked off the app Store, we as 0:15:41.440 --> 0:15:45.880 a firm did an estimate that Fortnite was responsible alone 0:15:45.920 --> 0:15:49.520 for almost one percent of all revenue on the Apple 0:15:49.520 --> 0:15:51.760 App Store before it was kicked off. That was sort 0:15:51.800 --> 0:15:55.600 of an estimate that we kind of did internally. The 0:15:55.640 --> 0:15:58.680 significance that Fortnite is is a title on console, which 0:15:58.680 --> 0:16:02.640 you just mentioned is absolutely massive, and on mobile, which 0:16:02.680 --> 0:16:08.320 is more accessible globally around the emerging market countries especially, 0:16:08.480 --> 0:16:12.080 which is why Android's important. Fortnite is, you know, one 0:16:12.080 --> 0:16:14.480 of the top five forever titles we call them forever 0:16:14.560 --> 0:16:17.840 titles in the game and industry in the world right 0:16:17.920 --> 0:16:19.960 alongside that as things like Call of Duty and Grand 0:16:19.960 --> 0:16:21.200 Theft Auto and many others. 0:16:23.240 --> 0:16:27.440 Josh Chapman, managing partner at Convoy, a particularly great voice 0:16:27.440 --> 0:16:29.680 to have on a daylight today, Thank you very much. 0:16:29.880 --> 0:16:31.880 There's another big story in the world of entertainment. We're 0:16:31.880 --> 0:16:36.880 looking at Paramount seagramat Edgar Brontham Junior is close to 0:16:36.920 --> 0:16:40.240 making an offer four Paramount Global, setting off a potential 0:16:40.320 --> 0:16:42.880 bidding war for the film and TV company that owns 0:16:42.920 --> 0:16:45.680 CBS in MTV. That's because the Bloomberg's Hannah Miller and 0:16:45.680 --> 0:16:46.960 Hannah I will say the same thing to you I 0:16:47.000 --> 0:16:50.120 said several weeks ago, I'm confused and I have deja vu. 0:16:50.440 --> 0:16:53.480 So that there's a new bidder and then another bidding war. 0:16:53.720 --> 0:16:56.440 Good morning, yes, good morning. 0:16:57.000 --> 0:17:00.960 So yeah, we know Bronklin has been interested in Paramount 0:17:01.000 --> 0:17:04.119 for a while and things have shifted since then. You know, 0:17:04.200 --> 0:17:07.439 obviously there's this Skydance deal that has been agreed to, 0:17:07.800 --> 0:17:10.040 and that there's this forty five day go shop period. 0:17:10.280 --> 0:17:12.320 So it looks like Bronfman is going to put in 0:17:12.359 --> 0:17:15.560 a bid, But unlike his earlier interests, he's no longer 0:17:15.600 --> 0:17:19.120 working with Bain Capital on this and has been discussions 0:17:19.200 --> 0:17:24.360 with a couple of different entities, including Roku Fortress and 0:17:24.400 --> 0:17:25.760 the film producer Stephen Paul. 0:17:26.960 --> 0:17:33.080 So I'm sat here as a B class shareholder, not voting, 0:17:33.600 --> 0:17:36.080 trying to work out what ultimately is going to be 0:17:36.080 --> 0:17:40.040 better for me. How does he push away from what 0:17:40.160 --> 0:17:42.280 David Ellison is going to offer in terms of technology, 0:17:42.320 --> 0:17:43.959 in terms of studios, How is he going to make 0:17:44.000 --> 0:17:45.360 a different kind of appeal. 0:17:46.960 --> 0:17:49.480 Yeah, so you know, Brockman is coming in with years 0:17:49.480 --> 0:17:52.600 of experience in the Badia industry. He's arguing that this 0:17:52.800 --> 0:17:57.199 is a better deal for shareholders. You know, he is 0:17:57.440 --> 0:17:59.800 saying that he can take this company to the next level. 0:17:59.800 --> 0:18:03.600 And we were putting this potential bin together. But it'll 0:18:03.600 --> 0:18:06.240 be interesting to see what happens. Ultimately, it's up to 0:18:06.280 --> 0:18:10.600 Sherry Redstone, her holding company, National Amusements, think is the 0:18:10.600 --> 0:18:13.960 biggest shareholder in Paramount, and what she says, what she 0:18:14.000 --> 0:18:16.640 says goes. If she prefers guidance, that's what's going to be. 0:18:17.400 --> 0:18:19.840 Anna Milla telling it straight. We thank you so much. 0:18:27.640 --> 0:18:30.879 Let's talk politics and creators because as the election campaign 0:18:30.920 --> 0:18:34.440 picks up, the creator economy has been on the administration's mind. 0:18:34.680 --> 0:18:37.679 Two hundred content creators will be credentialed to cover the 0:18:37.680 --> 0:18:41.000 twenty twenty four DNC in Chicago next week. This follows 0:18:41.040 --> 0:18:44.760 actually the White House itself hosting the Creator Economy Conference, 0:18:45.040 --> 0:18:47.400 where it convene a group of digital creators and professionals 0:18:47.440 --> 0:18:50.680 to discuss the industry's most pressing issues. Let's talk about 0:18:50.680 --> 0:18:53.880 it with LTK co founder president Ama Ven's Box who 0:18:54.200 --> 0:18:57.040 you weren't there yourself, but a lot of the influencers 0:18:57.080 --> 0:19:01.200 that you represent that you help monetize were there. Why 0:19:01.280 --> 0:19:04.480 is it important? Why why are we seeing such political 0:19:04.560 --> 0:19:07.000 interest in the influencer economy right now? 0:19:08.680 --> 0:19:11.520 Well, our LTK team was on the ground, they were there, 0:19:11.720 --> 0:19:15.000 And you know, when I think about creators and politics, 0:19:15.359 --> 0:19:17.840 I don't know of any better marketing machine than the 0:19:17.960 --> 0:19:20.760 RNC and the DNC. And what we're seeing is that 0:19:21.080 --> 0:19:23.600 even government is realizing that in order to reach people, 0:19:23.640 --> 0:19:25.280 you need to be where they are. They're spending six 0:19:25.320 --> 0:19:27.160 and a half hours a day on their phones, they're 0:19:27.200 --> 0:19:30.199 in these aggregated content channels. The content that they're viewing 0:19:30.600 --> 0:19:33.959 is created by creators themselves. The new media has arrived, 0:19:33.960 --> 0:19:37.320 it's here, and it was hugely validating for the Creator 0:19:37.359 --> 0:19:39.719 Economy Conference to be held at the White House. This 0:19:39.800 --> 0:19:42.679 is an industry that we started thirteen years ago. The 0:19:42.720 --> 0:19:46.280 word influencer was only added to the dictionary five years ago, 0:19:46.359 --> 0:19:48.080 so we've come a long way. This was a really 0:19:48.080 --> 0:19:49.680 big moment for our entire industry. 0:19:50.640 --> 0:19:53.120 And what can I get political with you for a moment. 0:19:53.160 --> 0:19:55.440 I don't want anyone to take sides, but just from 0:19:55.440 --> 0:19:59.320 a perspective of a creator, an influencer who's doing it 0:19:59.359 --> 0:20:02.960 better at the moment, who's managing to reach the US 0:20:03.680 --> 0:20:08.400 voter base via influencers most efficiently. Is it DNC Democrats? 0:20:08.440 --> 0:20:09.719 Is that are and see Republicans? 0:20:11.560 --> 0:20:13.520 You know, both are using these tactics, and they both 0:20:13.600 --> 0:20:16.120 used them for the last several elections, and we've seen 0:20:16.160 --> 0:20:20.080 it across all of the different platforms. That said, I think, 0:20:20.280 --> 0:20:22.919 really this is important for the entire industry. Whether you 0:20:22.920 --> 0:20:26.119 are someone who as a creator that is following politics, 0:20:26.119 --> 0:20:29.200 who is reporting on politics, this is it. It's a 0:20:29.280 --> 0:20:31.919 validating moment. And for some creators they don't want to 0:20:31.920 --> 0:20:33.960 touch the elections at all, But I think what this 0:20:34.040 --> 0:20:36.879 points to in this moment is that they are looking 0:20:36.920 --> 0:20:38.879 to see that this industry is important and that they 0:20:38.880 --> 0:20:40.400 need to be thinking about the things they're thinking about. 0:20:40.440 --> 0:20:42.159 And there are definitely a handful of things the air 0:20:42.200 --> 0:20:44.080 Top of Mind that we showed up in Washington to 0:20:44.119 --> 0:20:46.400 talk about what. 0:20:46.359 --> 0:20:51.000