WEBVTT - Arm Surges and Disney Reaches One-Year High 0:00:01.560 --> 0:00:05.840 From Mahard where Innovation, money and power Collie in Silicon 0:00:05.960 --> 0:00:10.399 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.640 --> 0:00:23.880 Ed Ludlow. 0:00:25.079 --> 0:00:27.960 I'm Caroline Heider Bloomberg's world headquarters in New York, and 0:00:27.960 --> 0:00:29.600 I'm Ed Ludlow in San Francisco. 0:00:29.840 --> 0:00:31.800 This is Bloomberg Technology coming up. 0:00:31.960 --> 0:00:35.680 Chip design firm ARM surgers in the most since it's 0:00:35.720 --> 0:00:38.559 IPO after a bullish outlook on sales, will sit down 0:00:38.600 --> 0:00:41.280 with the CEO Renee has to discuss. 0:00:41.880 --> 0:00:45.800 Plus the mousehouse spikes as cost cutting benefits and international 0:00:45.840 --> 0:00:48.200 theme park strength boost the company's results. 0:00:48.240 --> 0:00:49.440 Full coverage ahead. 0:00:49.680 --> 0:00:52.440 And Amma's limited release of its vision pro fetching as 0:00:52.520 --> 0:00:54.920 much as five thousand dollars in the resale market. 0:00:55.240 --> 0:00:59.480 This is the story ARM a massive surge in the stock. 0:00:59.520 --> 0:01:01.600 It's to say this is the biggest jump since they 0:01:01.640 --> 0:01:04.680 listed in September, but we are up fifty eight percent 0:01:05.200 --> 0:01:07.760 and it is the outlook for the current period going 0:01:07.840 --> 0:01:08.960 way beyond estimates. 0:01:08.959 --> 0:01:10.000 Evidence that this is. 0:01:09.959 --> 0:01:13.199 No longer a name offering the building blocks or blueprints 0:01:13.200 --> 0:01:17.400 for semiconductors, with royalties and licensing on the underlying code 0:01:17.400 --> 0:01:20.800 that allows a chip to communicate with the software that 0:01:20.880 --> 0:01:21.400 it runs. 0:01:22.040 --> 0:01:23.479 It's not a smartphone story. 0:01:23.480 --> 0:01:27.160 There's evidence that the diversification that Rene has has been 0:01:27.160 --> 0:01:30.800 pushing for is now there. We are seeing evidence there 0:01:30.800 --> 0:01:33.560 are questions around the AI story for sure. Then look 0:01:33.560 --> 0:01:36.760 at parents soft Bank SOFTWAK owns ninety percent of the company, right, 0:01:37.120 --> 0:01:39.840 but they are saying overnight in their own earnings, we 0:01:39.880 --> 0:01:43.160 are putting ARM front and center, Caroline, in of our 0:01:43.560 --> 0:01:44.520 AI strategy. 0:01:44.680 --> 0:01:46.600 What does that look like? This is a wild. 0:01:46.360 --> 0:01:49.600 Market reaction, but it's vindication for a story this company 0:01:49.600 --> 0:01:50.440 has been trying to tell. 0:01:50.920 --> 0:01:53.920 Absolutely extraordinary market reaction and on the back of that, 0:01:54.200 --> 0:01:57.200 we want to welcome our Bloomberg TV and radio audiences. 0:01:57.600 --> 0:02:00.880 ARM shares more than fifty percent higher. The bullish outlook 0:02:00.920 --> 0:02:03.320 is something we can now discuss. For the CEO, Renee 0:02:03.400 --> 0:02:06.360 has joining us, and Renee you must feel vindication. 0:02:06.560 --> 0:02:08.640 You are trying to tell this story at the IPO 0:02:09.080 --> 0:02:10.240 and boom your deliver. 0:02:11.800 --> 0:02:14.920 Well, thank you, Carolyn. Yes, we're really happy with the 0:02:14.960 --> 0:02:19.960 results that we posted. Additionally, very very good feelings about 0:02:20.000 --> 0:02:23.400 the forecast going forward. But as you said, this is 0:02:23.480 --> 0:02:25.519 really the results of strategy that were put in place 0:02:25.520 --> 0:02:28.080 a number of years ago that are now just really starting. 0:02:27.800 --> 0:02:28.520 To come to fruition. 0:02:29.160 --> 0:02:32.440 Yeah, when we think about the vindication, when we think 0:02:32.440 --> 0:02:37.079 though still about basically more of your technology going into 0:02:37.120 --> 0:02:40.160 more types of equipment. You managed to see a diversification 0:02:40.320 --> 0:02:43.640 out of phones. Paint us the strategy of ARM going forwards, 0:02:43.680 --> 0:02:46.520 because many would say, actually, you're not just well the 0:02:46.560 --> 0:02:49.520 overall designer of chips, you're basically making the chips. 0:02:49.520 --> 0:02:50.799 You're fabulous in some way. 0:02:50.919 --> 0:02:54.040 Is how do you see that relationship going forward with Qualcom, 0:02:54.080 --> 0:02:56.960 for example, Well, a lot of folks. 0:02:56.680 --> 0:02:59.160 You know, as you said, didn't really understand the company 0:02:59.200 --> 0:03:01.440 well and where we fit. And obviously we had a 0:03:01.440 --> 0:03:05.000 lot of growth attached to the smartphone market. But ARM 0:03:05.120 --> 0:03:06.919 is in a lot of devices that people may not 0:03:07.040 --> 0:03:07.880 naturally think about. 0:03:08.160 --> 0:03:10.520 We're in a Tesla vehicle, We're in a Ford f one. 0:03:10.560 --> 0:03:14.240 Fifty, We're in a Ring smart camera, We're in the 0:03:14.280 --> 0:03:18.520 Samsung TV, a Samsung smart appliance. So just about every 0:03:18.560 --> 0:03:21.600 device you can think of has ARM inside, and just 0:03:21.639 --> 0:03:23.880 about every device you can think of needs more and 0:03:23.880 --> 0:03:27.520 more compute, particularly as AI is now driving a whole 0:03:27.560 --> 0:03:28.359 new demand cycle. 0:03:28.840 --> 0:03:31.240 Talk to us about AI. Jeffrey is really singling that 0:03:31.320 --> 0:03:33.720 out the analyst. They're saying that this really shows your 0:03:33.760 --> 0:03:35.000 beneficiary from AI. 0:03:35.160 --> 0:03:37.800 But where does the AI focus come You, of course 0:03:38.120 --> 0:03:39.280 were in video before. 0:03:39.320 --> 0:03:42.760 They are all about AI accelerators and I'm interested as 0:03:42.800 --> 0:03:44.560 to whether or not that would be an area that 0:03:44.600 --> 0:03:46.120 you get into other than servers. 0:03:47.200 --> 0:03:49.640 Well, right now, in video is a great partner their 0:03:49.720 --> 0:03:53.040 Gracehopper chip, a super chip uses a lot of arm 0:03:53.120 --> 0:03:56.360 CPUs in combination with their GPU, which is a really 0:03:56.360 --> 0:03:59.440 really great solution for high end AI training in the 0:03:59.520 --> 0:04:02.480 data center as well as inference. But when you start 0:04:02.520 --> 0:04:06.520 moving to smaller devices, say smartphones or PCs, well AI 0:04:06.680 --> 0:04:08.440 is going to run there too. If you look at 0:04:08.440 --> 0:04:11.560 some of the recent announcements by by Samsung and Google 0:04:11.800 --> 0:04:14.640 relative to their smartphones, there's a lot of things such 0:04:14.680 --> 0:04:17.359 as circling and image on a browser and then having 0:04:17.360 --> 0:04:20.400 that browser go off and do search based on the circle. 0:04:20.839 --> 0:04:23.800 That's AI that's actually running in a smartphone. And what 0:04:23.839 --> 0:04:27.240 we're seeing is really a drive for more and more 0:04:27.279 --> 0:04:31.280 compute capacity to run these AI algorithms, some that people 0:04:31.320 --> 0:04:34.000 don't even know what they are yet. But what designers 0:04:34.040 --> 0:04:36.040 want to do and need to do is future proof 0:04:36.080 --> 0:04:36.640 their designs. 0:04:36.800 --> 0:04:37.520 Was more and more. 0:04:37.400 --> 0:04:41.679 Compute, and that is really driving a strong licensing cycle 0:04:41.720 --> 0:04:43.000 force in terms of more demand. 0:04:44.440 --> 0:04:46.599 Rene We've been at pains to kind of help the 0:04:46.640 --> 0:04:50.159 audience explain how your business works. You know, the royalty side, 0:04:50.440 --> 0:04:52.880 I call it the building blocks of chip design, and 0:04:52.920 --> 0:04:57.840 then the licensing side managing the interaction between the underlying 0:04:57.880 --> 0:05:00.200 design of the chip and the software it's intended to 0:05:00.279 --> 0:05:03.039 interact with. And what you said to the street is 0:05:03.920 --> 0:05:06.840 smartphone isn't everything anymore. It's a third of our business, 0:05:06.880 --> 0:05:11.520 but somehow you're also boosting the royalties that are coming 0:05:11.560 --> 0:05:14.640 in on that business. Just explain how that dynamic is working. 0:05:14.960 --> 0:05:18.560 Smaller proportion of overall, but you're basically making more money 0:05:18.800 --> 0:05:19.320 per deal. 0:05:20.800 --> 0:05:22.600 We've got two things kind of going on in the 0:05:22.640 --> 0:05:26.960 smartphone market. One is we've moved to a higher version 0:05:27.000 --> 0:05:29.320 of our process, or what we call Version nine, and 0:05:29.360 --> 0:05:32.800 the royalties associated with version nine are roughly double than 0:05:32.839 --> 0:05:36.640 that of version eight, and that's growing. Last quarter, about 0:05:36.640 --> 0:05:39.880 ten percent of our royalties came from version eight. Now 0:05:39.920 --> 0:05:42.920 it's Version nine is about fifteen percent and growing. So 0:05:43.400 --> 0:05:47.040 that's happening. But secondarily, people are putting more V nine 0:05:47.400 --> 0:05:49.080 in their smartphones. 0:05:48.480 --> 0:05:49.360 And they put V eight. 0:05:50.240 --> 0:05:53.359 What does that mean, Well, it means more processors to 0:05:53.440 --> 0:05:56.279 handle these complex tasks to as AI. So what you 0:05:56.320 --> 0:05:59.599 have is a compounding effect. Increased rates from the new version, 0:06:00.080 --> 0:06:02.440 but more and more compute because more and more computes 0:06:02.520 --> 0:06:05.040 needed to run these complex devices. 0:06:05.080 --> 0:06:06.800 So it's having a real growth effect for. 0:06:06.800 --> 0:06:12.120 US, Renee, what happened in China was a surprise. How 0:06:12.160 --> 0:06:13.279 long does that continue? 0:06:13.279 --> 0:06:13.359 For? 0:06:15.279 --> 0:06:17.520 You know, China follows the rest of the world for 0:06:17.600 --> 0:06:20.520 US said in the sense that where we're very strong 0:06:20.520 --> 0:06:22.520 in the rest of the world visa V data centers 0:06:22.600 --> 0:06:26.039 or evs, China follows that. And the reason is that 0:06:26.080 --> 0:06:30.320 the software ecosystem, which is global that is really predominantly 0:06:30.440 --> 0:06:33.680 ARM based. China partners want to leverage that and one 0:06:33.680 --> 0:06:36.200 thing that China is very unique about is speed. They 0:06:36.200 --> 0:06:38.960 want to go as fast as possible, develop products as 0:06:39.040 --> 0:06:42.479 quickly as possible. Well, the software base allows them to 0:06:42.520 --> 0:06:44.640 develop products very quickly to the market will the dot. 0:06:44.720 --> 0:06:47.680 So you know, there's been a lot written about China 0:06:47.720 --> 0:06:50.480 headwinds than the market, et cetera. But for US, China 0:06:50.480 --> 0:06:51.720 has been a great market. 0:06:53.320 --> 0:06:55.880 For a Bloomberg television and radio audience for speaking to 0:06:55.920 --> 0:06:59.599 the ARM CEO Renee has overnight rene soft Bank, which 0:06:59.640 --> 0:07:02.720 holds twenty percent of your company, said that they're going 0:07:02.720 --> 0:07:05.120 to put you at the center of their AI strategy. 0:07:06.320 --> 0:07:08.160 How much say are you going to have in that? 0:07:08.320 --> 0:07:12.200 If SoftBank is kind of dictating how they see your 0:07:12.360 --> 0:07:16.600 role in the playout of AI infrastructure, well. 0:07:16.480 --> 0:07:18.520 I can speak from kind of two hats. One is 0:07:18.560 --> 0:07:21.240 as the CEO of ARM and the other as a 0:07:21.240 --> 0:07:25.200 soft failing board member. I'll speak to the former primarily here. 0:07:26.400 --> 0:07:31.680 We believe that AI is the most profound opportunity in 0:07:31.720 --> 0:07:35.120 our lifetimes, and we are only at the beginning. When 0:07:35.160 --> 0:07:38.760 you think about artificial general intelligence and what is required 0:07:38.840 --> 0:07:43.400 to make that happen in terms of compute, power, efficiency, energy, 0:07:43.880 --> 0:07:45.560 those are all great areas for. 0:07:45.560 --> 0:07:46.920 Us to be involved in focusing in. 0:07:47.080 --> 0:07:50.360 So I think AI is not in any way, shape 0:07:50.440 --> 0:07:51.400 or form a heighth cycle. 0:07:51.720 --> 0:07:53.239 I think we're in incredibly early. 0:07:53.160 --> 0:07:55.560 Days, and I think it's going to have amazing impact 0:07:55.600 --> 0:07:56.320 on our planet. 0:07:57.840 --> 0:07:58.680 I mean extraordinary. 0:07:58.680 --> 0:08:00.600 We're still just looking at your share price now rocketing 0:08:00.680 --> 0:08:02.720 up to about sixty percent on the day, up more 0:08:02.760 --> 0:08:05.720 than seventy percent over the last five days. Are there 0:08:05.760 --> 0:08:08.480 any areas of concern for you were just talking about 0:08:08.480 --> 0:08:11.239 the macro picture, for example, being in China, that actually 0:08:11.280 --> 0:08:14.080 has played to your strengths, even though the rest of 0:08:14.120 --> 0:08:17.080 the economy we slightly worry about. China still a bright spot. 0:08:17.200 --> 0:08:20.680 What about geopolitics, what about the international role that you 0:08:20.760 --> 0:08:21.960 have as ARM. 0:08:22.480 --> 0:08:24.000 Yeah, it's a great question, you know. 0:08:24.040 --> 0:08:28.320 I think for CEOs, particularly now in the semi nutural world, 0:08:29.040 --> 0:08:32.760 the geopolitics, government relations, things of the nature. Five ten 0:08:32.840 --> 0:08:35.079 years ago, that wasn't something that we had to worry 0:08:35.080 --> 0:08:37.800 about a lot. Now it's obviously front and center in 0:08:37.880 --> 0:08:41.080 terms of how we think about the world. I think 0:08:41.120 --> 0:08:44.600 for ARM, I don't know that our issues are concerns 0:08:44.640 --> 0:08:47.640 there any different than my peer group faces we all 0:08:47.679 --> 0:08:50.319 share globally. We think the world is a better place 0:08:50.360 --> 0:08:53.760 when it's an easier global ecosystem, but we're also mindful 0:08:53.840 --> 0:08:55.760 that we are in very different times than we were 0:08:55.800 --> 0:08:56.680 five ten years ago. 0:08:57.760 --> 0:09:00.800 Rene a question from our audience on social media for you, 0:09:01.240 --> 0:09:04.880 will you start doing business directly with the software ecosystem 0:09:04.960 --> 0:09:08.439 in the context of AI edge computing. 0:09:08.559 --> 0:09:09.440 That's what they want to know. 0:09:10.760 --> 0:09:13.800 We do a lot of business with the software ecosystem 0:09:13.840 --> 0:09:16.560 in the sense of that they're incredibly strong partners to us. 0:09:17.160 --> 0:09:19.679 When you think about Android as a software ecosystem, when 0:09:19.679 --> 0:09:22.360 you think about Windows, when you think about everything going 0:09:22.400 --> 0:09:25.400 on with open source software, that is something we are 0:09:25.440 --> 0:09:29.880 incredibly involved in, particularly from a technology side, because at 0:09:29.960 --> 0:09:33.640 the end of the day, what makes arms so pervasive, 0:09:34.040 --> 0:09:37.599 it's a software ecosystem like no other. So software is 0:09:37.679 --> 0:09:39.320 front and center of what we think about in terms 0:09:39.360 --> 0:09:40.920 of all of our engineering engagements. 0:09:42.320 --> 0:09:45.320 I'm CEO Rene has stock Storing. Great to have some 0:09:45.400 --> 0:09:46.360 time with you, Thank you so. 0:09:46.400 --> 0:09:48.280 Much, Thank you so much. 0:09:50.520 --> 0:09:53.760 Coming up will break down Disney's earnings with Gerber Kawasaki 0:09:53.800 --> 0:09:57.200 co owned president Ros Gerbert. That's coming up next. This 0:09:57.480 --> 0:10:08.839 is Bloomberg Technology. 0:10:15.040 --> 0:10:17.920 The purpose of the venture is purely distribution. It's not 0:10:18.000 --> 0:10:20.920 about procurement of content. So we'll continue to compete with 0:10:20.960 --> 0:10:23.160 each other for sports rights just as we always have. 0:10:23.920 --> 0:10:26.160 It'll actually, I think, be a great benefit to the 0:10:26.240 --> 0:10:28.719 league because it's no different in terms of the way 0:10:28.720 --> 0:10:32.079 we bid for sports rights. But that reduced friction benefits 0:10:32.120 --> 0:10:33.520 all of the leagues as well, So I think the 0:10:33.600 --> 0:10:35.680 leagues will actually be pretty optimistic about this. 0:10:37.920 --> 0:10:41.360 That was Disney CFO Hugh Johnson. They're commenting on ESPN, 0:10:41.440 --> 0:10:45.320 Fox and Warner Brothers discoveries, earlier sports bundling announcement, and 0:10:45.360 --> 0:10:48.840 Disney shares pushing above a one year high today after 0:10:48.880 --> 0:10:52.200 topping earnings estimates and issuing an upbeat profit outlook for 0:10:52.240 --> 0:10:55.480 the year, citing cost cutting benefits and the strong performance 0:10:55.480 --> 0:10:59.040 of its international theme parks business. Disney Plus subscribers fell 0:10:59.120 --> 0:11:02.200 short of estimates, though, and Dizzey says it will invest 0:11:02.240 --> 0:11:05.920 one point five billion dollars in epic games. I want 0:11:05.920 --> 0:11:08.920 to bring in Bloombers, Chris Palmery out of LA to break. 0:11:08.720 --> 0:11:09.240 It all down. 0:11:09.360 --> 0:11:12.120 I think we just start with what the streets probably 0:11:12.120 --> 0:11:15.440 focused on, which is Bobbyga delivers and they like it. 0:11:16.520 --> 0:11:16.720 Yeah. 0:11:16.760 --> 0:11:17.959 I mean, if you think about it was about a 0:11:18.080 --> 0:11:21.080 year ago where I announced these big cost cuts or 0:11:21.600 --> 0:11:24.800 restoration of the dividend. It was all under the context 0:11:24.800 --> 0:11:26.840 of the pressure from activist Nelson Pelts. 0:11:27.240 --> 0:11:28.920 Pelts ended up dropping out the next. 0:11:28.880 --> 0:11:30.520 Day, and here we are a year later, we seeing 0:11:30.679 --> 0:11:32.199 results of all that cost cutting. 0:11:32.720 --> 0:11:34.120 Still a Peltz challenge. 0:11:34.640 --> 0:11:38.319 Health says he's sticking with it, but you know, you're 0:11:38.320 --> 0:11:42.120 definitely seeing either deliver on that, and I think he's 0:11:42.120 --> 0:11:44.520 probably feeling pretty happy about the stock price today. 0:11:45.080 --> 0:11:48.640 I mean, Chris, he's delivering on profitability, on cost cuts, 0:11:48.640 --> 0:11:52.040 but ultimately revenue. There are still worries about well, when 0:11:52.080 --> 0:11:55.480 they really do see growth once again and the subscribers 0:11:55.480 --> 0:11:57.480 coming back to Disney Plus, when we start to actually 0:11:57.520 --> 0:11:59.520 see a revenue driver coming from the parks here in 0:11:59.559 --> 0:12:03.120 the US, just internationally and indeed just the media side 0:12:03.120 --> 0:12:06.640 of the business, the TV legacy still really hurting. Where 0:12:06.679 --> 0:12:09.000 was there to be excited in some of these new partnerships, 0:12:09.000 --> 0:12:10.320 I think particularly Epic Games. 0:12:11.280 --> 0:12:13.440 Well, for sure, there's a lot of negative here. 0:12:13.480 --> 0:12:16.520 I mean no intendants growth in all Disney World in Florida, 0:12:17.000 --> 0:12:20.000 basically no growth in Disney Plus. In fact, they're predicting 0:12:20.040 --> 0:12:22.840 a pretty big subscriber gain in the current quarter, six million, 0:12:23.000 --> 0:12:23.760 when early. 0:12:23.520 --> 0:12:25.720 All of that are the ones they're giving away essentially to. 0:12:25.800 --> 0:12:30.440 Charter, although they are getting, you know, a wholesale fee. 0:12:30.840 --> 0:12:34.600 And also, as you mentioned, traditional TV double digit decline. 0:12:34.760 --> 0:12:37.280 Part of that is due to the strikes in Hollywood 0:12:37.360 --> 0:12:40.400 last year. Put again not a really good trend. The 0:12:40.559 --> 0:12:45.000 market did seem to really enjoy this Epic investment. It's 0:12:45.040 --> 0:12:49.560 a big number for a minority stay but you know, 0:12:49.760 --> 0:12:53.800 partnering with the Fortnite maker and getting Disney's it's sort 0:12:53.840 --> 0:12:56.319 of a situation where they can license their content and 0:12:56.559 --> 0:12:57.960 enjoy some upside. 0:12:58.600 --> 0:13:01.560 Epic Company appreciates. 0:13:01.640 --> 0:13:02.560 Always about the IP. 0:13:02.760 --> 0:13:05.600 Chris pol Murray, great to get really a breakdown on 0:13:05.679 --> 0:13:08.040 what we heard on the earnings after the bell yesterday. 0:13:08.320 --> 0:13:09.600 Let's get an investor take now. 0:13:09.679 --> 0:13:11.720 Ros Gerbran pleased to say, joins us president and CEO 0:13:11.720 --> 0:13:13.160 of Gerbert Kawasaki and. 0:13:13.360 --> 0:13:16.680 Ross, what were you most thrilled about in instead of numbers? 0:13:16.720 --> 0:13:17.960 Because there was a lot to digest. 0:13:19.280 --> 0:13:20.079 Taylor Swift. 0:13:20.559 --> 0:13:23.000 I mean, this is the Bob Iger effect, you know, 0:13:23.040 --> 0:13:26.280 where Nelson Peltz can't get his way around Hollywood to 0:13:26.320 --> 0:13:29.400 save his life. You know, Bob Iger is really the 0:13:29.480 --> 0:13:32.640 key to getting good content back on Disney, which ultimately, 0:13:32.880 --> 0:13:35.320 when you talk about all the things that need to 0:13:35.400 --> 0:13:39.360 drive Disney forward, it's all about great IP or great content, 0:13:39.400 --> 0:13:43.160 and that's the biggest challenge is making great content in Hollywood. 0:13:43.800 --> 0:13:46.880 So to get sort of like the Taylor's cut of 0:13:46.920 --> 0:13:49.880 this version of the movie for Disney Plus will definitely 0:13:49.920 --> 0:13:52.400 move the needle in a huge way. You know, she's 0:13:52.640 --> 0:13:56.360 a phenomenon that's massive, So that's a great start. And 0:13:56.360 --> 0:13:59.480 then their investment in Epic games. You know, the kids 0:13:59.480 --> 0:14:02.800 played for it, you know, consistently in having an alternative 0:14:02.920 --> 0:14:06.560 universe that's all Disney characters and all the ancillary revenue 0:14:06.600 --> 0:14:09.600 that comes with all the purchases on an ongoing basis 0:14:09.640 --> 0:14:12.440 from the way gaming is done today, is not only 0:14:12.440 --> 0:14:15.280 a business Disney needs to be in, but they're smart 0:14:15.320 --> 0:14:18.040 in that they're letting Epic do it. Disney's failed and 0:14:18.160 --> 0:14:20.560 gaming over and over again, but Epic has been a 0:14:20.600 --> 0:14:24.680 wonderful success. So these verticals, along with the way they're 0:14:24.720 --> 0:14:27.680 monetizing ESPN, is exactly what Disney needs. 0:14:27.520 --> 0:14:28.000 To be doing. 0:14:28.880 --> 0:14:31.520 That's a pretty good summary ross of about seven different 0:14:31.560 --> 0:14:34.920 stories that came out. Yes, I mean on the video 0:14:35.000 --> 0:14:38.280 game side, I think that's two thousand and two Kingdom Hearts, 0:14:38.320 --> 0:14:42.240 which was a JV Disney did with Square NX. I 0:14:42.320 --> 0:14:46.880 don't fully understand though, how the Epic relationship plays out. 0:14:46.960 --> 0:14:49.560 You know, there's an emphasis on licensing content. I get 0:14:49.600 --> 0:14:52.400 that is Disney saying, Okay, I think we better go 0:14:52.560 --> 0:14:56.040 back big into into video games. Light Netflix is done 0:14:56.560 --> 0:14:58.560 on the mobile app sense. 0:14:59.080 --> 0:15:02.040 One hundred percent, so it's more than just gaming, it's 0:15:02.440 --> 0:15:05.760 social gaming, which is really you know, Roadblocks being the 0:15:05.800 --> 0:15:07.560 best example of this. 0:15:08.040 --> 0:15:10.720 My kids don't just play games. They play games with 0:15:10.760 --> 0:15:11.400 their friends. 0:15:11.560 --> 0:15:14.520 They do not play these games by themselves, and most 0:15:14.560 --> 0:15:16.920 of the time now they're connecting through FaceTime on their 0:15:16.960 --> 0:15:21.200 iPads and then playing Fortnite or playing Minecraft, or in 0:15:21.280 --> 0:15:24.400 a lot of cases just Roadblocks. And so this is 0:15:24.440 --> 0:15:27.440 about getting into the zychis of what kids are doing, 0:15:27.880 --> 0:15:32.320 having a social element to the gaming aspect, but also 0:15:32.360 --> 0:15:35.440 a way to extend their brands in many different ways 0:15:35.520 --> 0:15:37.480 through this open world platform. 0:15:37.520 --> 0:15:39.400 If you've ever played Fortnite. 0:15:38.960 --> 0:15:41.080 One of the coolest things about it is it's constantly 0:15:41.200 --> 0:15:44.880 changing the environment, the worlds, and the different characters. 0:15:44.880 --> 0:15:46.320 And so by building. 0:15:46.080 --> 0:15:50.120 More Disney into this, it seeds the next generation of 0:15:50.280 --> 0:15:53.880 future Disney users, which has always been one of Disney's 0:15:53.880 --> 0:15:57.400 great strengths and something that they've lost with their failure 0:15:57.440 --> 0:16:00.160 to really have any animation hits over the last several years. 0:16:01.960 --> 0:16:05.440 Ross Bobby gets delivered on the bottom line with cost cutting, 0:16:05.840 --> 0:16:09.080 and he delivered growth through the park's business. So I 0:16:09.160 --> 0:16:11.480 go back to the question I always ask you, is 0:16:11.520 --> 0:16:14.960 Disney a technology company? 0:16:15.080 --> 0:16:19.560 Well, Disney is what I would consider a pure entertainment 0:16:19.600 --> 0:16:23.400 company that's adopting technology in many aspects of its business, 0:16:23.600 --> 0:16:26.840 but in its pure it's about going to the theme 0:16:26.920 --> 0:16:30.200 park and living out your sort of dreams and fantasies, 0:16:30.400 --> 0:16:34.760 whether it be Star Wars or Marvel or Avatar. It's 0:16:34.880 --> 0:16:38.800 about the physical experience, but then augmenting it with the 0:16:38.880 --> 0:16:42.360 digital experience. And that's where Disney Plus and the gaming 0:16:42.400 --> 0:16:44.880 and all the other assets that they're building that are 0:16:44.920 --> 0:16:49.280 digital are so complementary to the physical assets that Disney 0:16:49.320 --> 0:16:52.880 owns that are irreplaceable. You just really can't replace taking 0:16:52.920 --> 0:16:56.360 your kids to Disneyland in any other experience. But then 0:16:56.400 --> 0:16:58.720 when they get home being able to get onto Fortnite 0:16:58.760 --> 0:17:01.240 and play with the characters, or watch Disney Plus and 0:17:01.920 --> 0:17:05.320 watch Taylor Swift, They've got all elements of entertainment covered. 0:17:05.359 --> 0:17:06.640 So this is a. 0:17:06.640 --> 0:17:10.760 Great first step for Disney on their recovery, and I 0:17:10.760 --> 0:17:12.960 think if they follow through with some great ip over 0:17:12.960 --> 0:17:15.480 the next couple of years, you know Disney will be back. 0:17:15.440 --> 0:17:17.800 Because that maybe is where they've missed, certainly in the 0:17:17.840 --> 0:17:21.160 film studios part of it, Wish for example, really not landing. 0:17:21.440 --> 0:17:24.159 I'm interested in the legacy bits of the business ABC, 0:17:24.680 --> 0:17:27.399 the TV parts that had seemingly been up for sale 0:17:27.400 --> 0:17:29.760 and then retracted a little bit. What do you see 0:17:29.760 --> 0:17:30.920 as the strategy going forward? 0:17:31.040 --> 0:17:33.000 Ross profitability? 0:17:33.080 --> 0:17:35.760 I mean, they've managed to keep ABC, you know, profitable, 0:17:35.800 --> 0:17:38.480 so it is creating cash for them, even though it's 0:17:38.520 --> 0:17:41.440 on a declining you know, sort of revenue base. They've 0:17:41.560 --> 0:17:44.520 managed to just cut costs and maintain that business. But 0:17:44.760 --> 0:17:47.440 we all know linear TV is dead, and the cable 0:17:47.480 --> 0:17:50.360 bundle is dead, and even Spectrum, which is a cable company, 0:17:50.560 --> 0:17:53.400 doesn't actually provide cable anymore, you know, it's a streamer 0:17:53.480 --> 0:17:53.920 now too. 0:17:54.440 --> 0:17:57.480 So I think Disney's making. 0:17:57.200 --> 0:17:58.960 The right moves from trying to get their content and 0:17:59.040 --> 0:18:04.240 multiple different platforms, including on Charter as well as Spectrum 0:18:04.280 --> 0:18:07.480 as well as you know this new ESPN bundle which 0:18:07.520 --> 0:18:10.920 is wonderful for sports fans. So I think getting IP 0:18:11.080 --> 0:18:13.560 in the most places possible and having high quality IP 0:18:13.960 --> 0:18:16.159 ultimately is what the entertainment business is all about. 0:18:16.680 --> 0:18:19.000 Ross, we just have ten seconds. Do you increase your 0:18:19.000 --> 0:18:20.280 position in Disney from here? 0:18:21.080 --> 0:18:21.240 Well? 0:18:21.320 --> 0:18:24.480 Fortunately I did increase my position in Disney under one 0:18:24.520 --> 0:18:27.840 hundred in my fund GK over the last several months. 0:18:28.000 --> 0:18:30.120 I think Disney is worth over one hundred and twenty 0:18:30.200 --> 0:18:32.560 dollars a share, and at the Hiota's worth two hundred 0:18:32.560 --> 0:18:36.040 dollars almost So I think for investors, if you see 0:18:36.040 --> 0:18:38.080 this stock down at this level, I think it's one 0:18:38.119 --> 0:18:40.680 of the few values left in the stock market which 0:18:40.720 --> 0:18:43.919 is fairly richly priced today. So I think Disney is 0:18:43.920 --> 0:18:46.400 a compelling investment and one that we own and one 0:18:46.400 --> 0:18:47.320 that we recommend. 0:18:47.560 --> 0:18:51.680 Right Rosco the PRESIDENCYBA Kawasaki, good to catch up. 0:18:51.720 --> 0:19:02.160 Thank you time for talking tech. 0:19:02.280 --> 0:19:06.040 First start, South Korean prosecutors are appealing a sole court 0:19:06.119 --> 0:19:10.400 ruling that cleared Samsung executive chairman Jayly of all charges, 0:19:10.560 --> 0:19:14.359 including stock price manipulation and accounting fraud. The prosecutors in 0:19:14.400 --> 0:19:17.520 November saw a five year prison sentence along with a 0:19:17.600 --> 0:19:20.879 fine f lee but this week the court Acquittedly and 0:19:20.920 --> 0:19:23.760 other Samsung officials. The appeal means the case will be 0:19:23.760 --> 0:19:25.320 heard now by a higher court. 0:19:25.560 --> 0:19:25.919 Plus. 0:19:26.160 --> 0:19:29.600 German industrial company Zemen saw orders largely stagnate in the 0:19:29.600 --> 0:19:33.960 fiscal first quarter as factory automation purchases in China plummeted 0:19:34.000 --> 0:19:36.640 by fifty five percent. The drop offsets gains in its 0:19:36.680 --> 0:19:40.560 mobility in industrial units However, the company sees China bouncing 0:19:40.720 --> 0:19:43.119 back in the second half of the year. In AI 0:19:43.240 --> 0:19:47.120 disclosures to the SEC are jumping as the agency warms 0:19:47.160 --> 0:19:50.080 of misleading claims. Just over forty percent of S and 0:19:50.080 --> 0:19:53.639 P five hundred companies mentioned AI in their most recent 0:19:53.680 --> 0:19:57.000 annual report with the SEC, according to Bloomberg Law's review 0:19:57.000 --> 0:20:00.840 of the disclosures, That continues an upward trends in twenty eighteen, 0:20:01.160 --> 0:20:05.240 when AI was only mentioned sporadically. SEC officials have repeatedly 0:20:05.280 --> 0:20:09.600 warned companies about making misleading AI related claims, including so 0:20:09.680 --> 0:20:12.840