WEBVTT - Intel Vs. Nvidia and Paramount's Annual Meeting 0:00:02.400 --> 0:00:09.680 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.320 --> 0:00:11.120 From Mahart where Innovation, money and power. 0:00:11.240 --> 0:00:13.600 Collie in Silicon Valley, NBN. 0:00:13.960 --> 0:00:18.000 This is Bloomberg Technology with Caroline Hyde and Ed Lovelove. 0:00:31.640 --> 0:00:34.160 I'm Caroline Hyde a Bloomberg's World Headquarters in New York, 0:00:34.560 --> 0:00:36.280 and I'm Ed Lovelow in San Francisco. 0:00:36.400 --> 0:00:38.239 This is Bloomberg Technology. 0:00:38.159 --> 0:00:42.120 Coming up the competition for AI chip dominance. It heats 0:00:42.200 --> 0:00:44.920 up as Intel takes aimin in video details to come. 0:00:45.640 --> 0:00:48.440 Thus we'll bring you the latest updates from Paramount's annual 0:00:48.479 --> 0:00:50.360 meeting which kicked off this morning. 0:00:50.440 --> 0:00:51.320 And Tesla shars. 0:00:51.320 --> 0:00:54.160 They drop on reports that Elo Musk has shifted thousands 0:00:54.200 --> 0:00:59.400 of AI chips to Xai over the vehicle maker. First, 0:00:59.480 --> 0:01:02.320 let's check out on the broader market context and look 0:01:02.520 --> 0:01:05.240 jobs market cooling, those jolts numbers. 0:01:04.920 --> 0:01:07.440 Really putting pressure on. Certainly the stock market for the. 0:01:07.440 --> 0:01:10.000 Bond market is currently seeing money move in at the 0:01:10.000 --> 0:01:12.880 moment yields go lower. Some three basis points is maybe 0:01:12.920 --> 0:01:14.800 we see space for the Federal Reserve to be able 0:01:14.800 --> 0:01:17.320 to cut later into the year. Now, remember we've got 0:01:17.319 --> 0:01:19.640 the all important jobs data on Friday as well to 0:01:19.680 --> 0:01:22.160 digest interesting that even though we've got money going into 0:01:22.200 --> 0:01:25.200 the one market, we're not seeing that optimism around technology 0:01:25.200 --> 0:01:27.560 stocks right now. We're off by some three tens percent. 0:01:27.800 --> 0:01:29.960 We're digging into the individual names that are perhaps dragging 0:01:30.080 --> 0:01:32.120 us a little bit lower. But look, we've been seeing 0:01:32.120 --> 0:01:34.280 all time highs hit time and time again. Maybe a 0:01:34.319 --> 0:01:37.240 bit of profit taking currently being digested. We're looking at, though, 0:01:37.440 --> 0:01:39.640 a macro picture that goes global for a moment. This 0:01:39.680 --> 0:01:44.080 is a political story, complete upending of what many had 0:01:44.120 --> 0:01:47.080 anticipated happening in the Indian election, and for now the 0:01:47.120 --> 0:01:50.560 euroupee is down versus the US dollars significantly on what 0:01:50.640 --> 0:01:53.280 has been a shot coming from a political stage where 0:01:53.400 --> 0:01:55.720 Mody does not seem to be having the majority that 0:01:55.840 --> 0:01:56.680 was anticipated. 0:01:56.680 --> 0:01:57.760 More on that throughout the show. 0:01:57.920 --> 0:02:00.000 Let's move on to happen in the world of crypt 0:02:00.040 --> 0:02:02.520 so a little bit more risk on sentiment coming from bitcoin. 0:02:02.560 --> 0:02:04.720 At the moment, we're up eight ten percent, nine tens percent, 0:02:04.760 --> 0:02:06.720 let's call it. At one point ed we eclipsed to 0:02:06.760 --> 0:02:10.000 seventy thousand dollars. Handle this as we see perhaps more 0:02:10.040 --> 0:02:13.280 money moving into some of the ETF products and well 0:02:13.320 --> 0:02:15.840 maybe some of that meme frenzy from yesterday helped some 0:02:15.960 --> 0:02:16.640 of the tailwinds. 0:02:16.639 --> 0:02:18.920 But what are you seeing on the micro Let's go back. 0:02:18.800 --> 0:02:20.079 To that Tesla story for a minute. 0:02:20.160 --> 0:02:24.320 The NBC reporting that Elon Musk directed in video to 0:02:24.480 --> 0:02:28.280 divert twelve thousand, h one hundreds or AI chips that 0:02:28.440 --> 0:02:32.200 had been destined for Tesla to his other companies X 0:02:32.440 --> 0:02:35.880 and XAI. Tesla shares now basically flat, they've been lower. 0:02:35.880 --> 0:02:37.600 I think everyone's trying to make sense of what that 0:02:37.680 --> 0:02:41.359 means for the kind of Tesla pledge to achieve full 0:02:41.360 --> 0:02:44.440 self driving, because that is principally what the AI accelerators 0:02:44.440 --> 0:02:46.960 are being used for in the Tesla case. We'll get 0:02:46.960 --> 0:02:48.799 more on that later in the hour. Back to our 0:02:48.800 --> 0:02:52.760 top story, which is the battle ground and the market 0:02:52.919 --> 0:02:56.079 for AI accelerators. Intel in a video about both now 0:02:56.160 --> 0:02:59.720 sort of modestly lower. Intel had been higher. Pat Gelsinger 0:02:59.720 --> 0:03:02.640 on age at Computex a lot of headlines coming out 0:03:02.680 --> 0:03:05.920 of Computex. Here is what Intel CEO Pat Gelsinger had 0:03:05.960 --> 0:03:08.240 to say about that market for AI chips. 0:03:09.120 --> 0:03:12.120 Every device will become an AI device, every company will 0:03:12.160 --> 0:03:15.800 become an AI company, and we see this as the 0:03:15.919 --> 0:03:20.160 fuel that's driving the semiconductor industry to reach a trillion 0:03:20.240 --> 0:03:23.560 dollars by the end of the decade. 0:03:25.919 --> 0:03:27.800 The other thing that he said, blue berg Z and 0:03:27.880 --> 0:03:32.240 King is that Moore's law is very much alive, a 0:03:32.320 --> 0:03:35.080 reference to the white paper in nineteen sixty five by 0:03:35.080 --> 0:03:38.279 one of Intel's co founders that the number of transistors 0:03:38.280 --> 0:03:41.520 on an integrated circuit will double every year without sort 0:03:41.520 --> 0:03:44.480 of adding costs to the production process. But what he 0:03:44.520 --> 0:03:47.000 was really doing was pushing back against Jensen Huang of 0:03:47.120 --> 0:03:49.960 Nvidia and saying we're going to catch up. 0:03:50.160 --> 0:03:50.960 We're going to do this. 0:03:51.600 --> 0:03:54.240 Yeah, I mean, he's arguing his case, right, He's saying, look, 0:03:54.240 --> 0:03:56.080 we can still do it. He's trying to make the 0:03:56.120 --> 0:03:59.080 case that Intel is still relevant and can have a 0:03:59.160 --> 0:04:01.840 central role in what's going on and can capture some 0:04:01.920 --> 0:04:04.680 of this massive amount of spending. But at the moment, 0:04:04.800 --> 0:04:07.880 all of that money is going to Innvidia. Over one 0:04:07.960 --> 0:04:11.080 hundred billion dollars of revenue projected for that data center 0:04:11.160 --> 0:04:14.880 unit this year. Intel's data center unit is going sideways 0:04:14.880 --> 0:04:16.320 at best, and I. 0:04:16.279 --> 0:04:18.240 Think what they have to compete on. 0:04:18.600 --> 0:04:22.880 Yes, we're hearing yet once again, annual upgrades to the 0:04:22.920 --> 0:04:26.599 offerings of semiconductors in but it's the full package that 0:04:26.640 --> 0:04:28.960 you get with in Nvidia, even if it is expensive. 0:04:30.200 --> 0:04:33.200 Yeah, I mean what Jensen has already decided is, look, hey, 0:04:33.440 --> 0:04:36.800 I've got more about four big customers, the big hyperscalers. 0:04:36.839 --> 0:04:39.320 But guess what I really need to broaden that audience. 0:04:39.720 --> 0:04:45.640 So he's networking, as you mentioned, full servers, basically supercomputers, 0:04:45.680 --> 0:04:48.240 and he's put everything together already so that pretty much 0:04:48.240 --> 0:04:51.880 anybody can adopt it. So anybody that's trying to crash 0:04:51.960 --> 0:04:55.360 his party, like Pat Gelsinger, like Lisa Seuer, AMD has 0:04:55.400 --> 0:04:58.040 to come to the table with everything, including the software, 0:04:58.040 --> 0:05:00.760 and that's a massive amount of effort it required. They've 0:05:00.760 --> 0:05:03.120 got the resources, but he's got the lead. 0:05:03.839 --> 0:05:05.800 He does, and at the moment it feels as though 0:05:05.800 --> 0:05:10.040 everyone else is slightly snapping around his heels. Where is ultimately, 0:05:10.160 --> 0:05:13.800 for now all the value attributed to data centers? Can 0:05:13.839 --> 0:05:16.159 any of it be sort of thought to be being 0:05:16.200 --> 0:05:19.600 brought this one trillion dollar market that Pat Gilsinger talks of, 0:05:19.800 --> 0:05:21.520 how much is that going to be allocated to PC? 0:05:23.160 --> 0:05:26.240 Well that was the show. The sort of sideline of 0:05:26.279 --> 0:05:29.520 the show is, hey, look will of the accelerators, guess 0:05:29.560 --> 0:05:31.680 what your PC is going to get? Cool again. It's 0:05:31.720 --> 0:05:36.039 going to get interesting again. We had Qualcomm Christian i'mon there. 0:05:36.080 --> 0:05:38.560 We had Lisa Sue of A and D talking about it. 0:05:38.800 --> 0:05:41.719 So they're all talking about revitalizing this thing that we 0:05:41.800 --> 0:05:44.920 all carry around and all use all day at the moment. 0:05:44.960 --> 0:05:47.240 You know, I saw some demos yesterday. They were okay. 0:05:47.720 --> 0:05:49.440 You know, I think we need to see a lot 0:05:49.440 --> 0:05:51.520 more on the software side before we can get fully 0:05:51.560 --> 0:05:53.760 excited about this being a new dawn for a product 0:05:53.800 --> 0:05:55.000 we've seen for a long time. 0:05:55.480 --> 0:05:58.520 I get all of the stories, particularly in Intel's case, 0:05:58.600 --> 0:06:01.640 Pat has been saying I will return Intel to a 0:06:01.680 --> 0:06:05.200 position of technology leadership, and the problem is is that 0:06:05.560 --> 0:06:09.880 presently revenues and sales don't match that story. So Intel 0:06:09.920 --> 0:06:13.159 basically five hundred million this year for AI accelerators, AMD 0:06:13.360 --> 0:06:16.360 four billion, which is slightly better than they previously forecast, 0:06:16.720 --> 0:06:20.279 and Nvidia let's just call it forty billion, And that's 0:06:20.320 --> 0:06:21.159 the state of play. 0:06:21.560 --> 0:06:23.360 Yeah, I mean, the number is probably close to one 0:06:23.400 --> 0:06:25.320 hundred at this point. If you look at the estimates, 0:06:25.360 --> 0:06:29.200 it's absolutely enormous. But yeah, back to Pat exactly what 0:06:29.240 --> 0:06:31.359 you say, which is he's got all of these audiences, 0:06:31.360 --> 0:06:34.240 he has to serve. He has his internal audience. He 0:06:34.240 --> 0:06:36.440 has to motivate his engineers, he has to get his 0:06:36.520 --> 0:06:39.560 customers excited about what he's going to offer. But at 0:06:39.600 --> 0:06:41.719 the same time, if he promises too much and makes 0:06:41.760 --> 0:06:45.400 too bullish an attitude, investors are going to get excited 0:06:45.440 --> 0:06:47.560 and think, oh, hey, we're going to see a big 0:06:47.720 --> 0:06:50.159 upside on earnings, and he can't deliver that at the moment. 0:06:50.279 --> 0:06:55.000 So Ian King breaking down, what is the ongoing fight 0:06:55.160 --> 0:06:56.640 amid Ai semi conductors? 0:06:56.640 --> 0:06:58.839 Brilliant have you taking on Taiwan? 0:06:58.920 --> 0:07:00.760 Let's move over and think what this means for market 0:07:00.760 --> 0:07:04.560 capitalizations the fight that goes on there. Ibec Oscodeshkaya is 0:07:04.600 --> 0:07:07.520 with US senior market analyst over at Swiss code Ebec. 0:07:07.560 --> 0:07:09.360 It's great to have you back on the show, and 0:07:09.680 --> 0:07:12.160 there has been a tussle at the top. Market valuations 0:07:12.240 --> 0:07:14.080 just keep on being allocated to Nvidia. 0:07:14.240 --> 0:07:15.080 Is that the right step? 0:07:16.400 --> 0:07:16.640 Well? 0:07:16.800 --> 0:07:19.800 I think that Nvidia is making the headlines and they're 0:07:20.000 --> 0:07:23.440 doing a great job. Not only that they are making 0:07:23.560 --> 0:07:28.320 huge progress on their numbers. They do make enormous forecasts 0:07:28.320 --> 0:07:33.200 and they beat them by very comfortable margins quarter after quarter, 0:07:33.560 --> 0:07:37.280 but they come very regularly with new updates, with new promises, 0:07:37.560 --> 0:07:41.120 with a new idea of, for example, creating an ecosystem 0:07:41.200 --> 0:07:43.600 offering hardware, software and services. 0:07:43.640 --> 0:07:45.160 So they are making the. 0:07:45.160 --> 0:07:49.520 AI a full environment where everybody could be interested and 0:07:49.560 --> 0:07:52.520 everybody will find their well what they're looking for. So 0:07:52.600 --> 0:07:57.000 in the sense, Nvidia looks like it's still except ahead 0:07:57.120 --> 0:08:00.720 of the other competitors. And in terms of P ratio, 0:08:00.800 --> 0:08:02.880 what we see is that even though the prices are 0:08:02.880 --> 0:08:05.120 going higher, well the PI ratio is not going that 0:08:05.280 --> 0:08:08.120 high because well, the earnings actually do follow up. 0:08:09.920 --> 0:08:10.280 Epec. 0:08:10.440 --> 0:08:13.120 Let me show you this chart, and it's a busy one, 0:08:13.640 --> 0:08:15.720 so I'll explain what it is that we're looking at. 0:08:16.560 --> 0:08:21.200 If you think about it, Big Picture Video is just 0:08:21.280 --> 0:08:24.760 a few percentage points away from exceeding Apple's market cap, 0:08:25.120 --> 0:08:28.960 from having a market cap greater than Canada's equity market, 0:08:29.120 --> 0:08:32.600 and ten percent or so would take it beyond Microsoft 0:08:32.720 --> 0:08:37.000 to be the world's most valuable company. Is that justified 0:08:37.720 --> 0:08:38.319 to your mind? 0:08:40.400 --> 0:08:42.559 Well, I can'tually tell you this is justified. 0:08:42.559 --> 0:08:44.319 But today with the AI. 0:08:44.040 --> 0:08:47.160 Revolution and media has been cut uppoted to that place 0:08:47.200 --> 0:08:50.040 of the leader of this market, and the leader is 0:08:50.240 --> 0:08:53.880 in a revolution. So this is not something that happens 0:08:54.040 --> 0:08:56.800 every year. This is once in a decade or once 0:08:56.840 --> 0:08:59.760 in a few decade thing. If AI is the next 0:09:00.240 --> 0:09:03.840 thing after Internet, that Nvidia has get a huge opportunity, 0:09:04.160 --> 0:09:08.200 a huge potential to increase as business. And now we 0:09:08.240 --> 0:09:10.960 are reading the reports and NVDA is not selling chips. 0:09:10.960 --> 0:09:14.200 It is now selling an environment and selling a dream, 0:09:14.280 --> 0:09:17.280 and it is actually selling us in new lives, a 0:09:17.320 --> 0:09:20.400 new way of doing things. And now we are just 0:09:20.520 --> 0:09:23.760 at the beginning and people know that the opportunities are 0:09:23.840 --> 0:09:26.920 simply huge. So yes, as Apple has become one of 0:09:26.960 --> 0:09:30.160 the world's most valuable companies because while they just got 0:09:30.200 --> 0:09:33.320 this iPhone in our hands, well, MVDA could very well 0:09:33.360 --> 0:09:36.400 become the next big thing while putting AI in our 0:09:36.920 --> 0:09:39.760 devices and make our lives completely different from what it 0:09:39.840 --> 0:09:40.320 was before. 0:09:40.920 --> 0:09:44.400 I really like that you've referenced Apple there, ultimately, because 0:09:44.440 --> 0:09:45.640 the market capitalizations are. 0:09:45.600 --> 0:09:46.720 Buying each with each other. 0:09:46.920 --> 0:09:49.200 But in our tech news daily, there's a great thought 0:09:49.280 --> 0:09:52.240 leadership piece there ultimately that Apple did this previously. 0:09:52.280 --> 0:09:53.680 It won out by having a sort. 0:09:53.520 --> 0:09:57.800 Of closed wall ecosystem, whereas Google went to say, hey, 0:09:57.840 --> 0:10:00.720 everyone can play in our garden. Whereas seeing that sort 0:10:00.760 --> 0:10:04.320 of playing out within video versus the likes of well, 0:10:04.800 --> 0:10:06.880 of course the other competitors that we've had for whether 0:10:06.920 --> 0:10:09.640 it be Intel working with all the other particular players 0:10:09.640 --> 0:10:10.199 out that EPEC. 0:10:10.320 --> 0:10:11.240 I'm interested in. 0:10:11.600 --> 0:10:14.079 Not just the analogy between Apple, what's happening in China. 0:10:14.160 --> 0:10:16.400 I know you've had some thought leadership there from your 0:10:16.440 --> 0:10:20.240 own and whether if you can invest in Chinese AI 0:10:20.679 --> 0:10:22.880 they might went out too well. 0:10:22.920 --> 0:10:27.480 Actually, we think that Chinese technology and AI related companies 0:10:27.559 --> 0:10:30.760 are intriguing because we know that in this context of 0:10:30.880 --> 0:10:34.240 technology war, Chinese government is putting a lot of weight 0:10:34.320 --> 0:10:38.800 behind US technology and AI companies, and China does have 0:10:38.880 --> 0:10:42.760 this pool of very big technology companies that have been 0:10:42.840 --> 0:10:46.559 once very popular that still is in China, and that 0:10:46.720 --> 0:10:50.000 have a proven track record and app that are right 0:10:50.000 --> 0:10:54.280 now treating at extremely low valuations compared to the US peers. 0:10:54.280 --> 0:10:55.719 I mean we are talking about. 0:10:55.520 --> 0:10:58.720 Peer ratio for around ten to twenty for the big 0:10:59.240 --> 0:11:02.480 Chinese technolology sucks, compared to six to six for MBDIA 0:11:02.480 --> 0:11:05.080 at one hundreds for i AMD for example. So in this 0:11:05.200 --> 0:11:08.800 context they are cheap and interesting. Now, one risk is 0:11:08.920 --> 0:11:11.800 the geopolitical and political risk. I'm going to put that aside. 0:11:11.800 --> 0:11:14.240 But one other risk right now is the fact that 0:11:14.280 --> 0:11:17.800 these technology companies in China are in a fierce competition 0:11:17.880 --> 0:11:22.040 against each other, and they are mostly focused on expanding 0:11:22.080 --> 0:11:25.440 their market share rather than maximizing their profits. This is 0:11:25.480 --> 0:11:29.160 something that keeps investors a little bit relaxing regarding the 0:11:29.240 --> 0:11:33.560 Chinese technology sucks. But this is temporary because ultimately one 0:11:33.800 --> 0:11:36.800 or a few of these technologies sucks are going to 0:11:36.840 --> 0:11:39.840 be the winners of this AI revolution in China, and 0:11:39.920 --> 0:11:42.480 that day, as an investor, well, you want to be 0:11:42.559 --> 0:11:43.400 in that elevator. 0:11:44.920 --> 0:11:48.560 We started this program with Pat Gelsinger's belief that Moore's 0:11:48.679 --> 0:11:53.320 law is intact that they will regain a foothold in 0:11:53.360 --> 0:11:58.240 the market. Is the addressable market big enough to have AMD, 0:11:58.559 --> 0:12:02.120 Intel and all offering into the same thing. 0:12:03.880 --> 0:12:05.720 Well, I think the market is huge. 0:12:06.160 --> 0:12:07.720 The opportunities are huge. 0:12:07.760 --> 0:12:10.880 But what's going to matter is not only how fast 0:12:11.040 --> 0:12:14.480 and how efficient the chips are, but it's also how 0:12:14.559 --> 0:12:17.480 well the service and the ecosystem and the environment that 0:12:17.600 --> 0:12:19.920 these companies are going to offer. And it looks like 0:12:20.080 --> 0:12:23.800 Nvidia has well, I have a very good understanding of 0:12:23.840 --> 0:12:27.240 this three hundred and sixty degree offering. So it's not 0:12:27.280 --> 0:12:29.440 going to be about chips only, but it's going to 0:12:29.480 --> 0:12:31.760 be about who is going to offer the best service 0:12:32.080 --> 0:12:34.800 to like the most of the companies on the face 0:12:34.840 --> 0:12:37.720 of the start not only is the big technology companies, 0:12:37.720 --> 0:12:39.680 but to companies across mock sectors. 0:12:39.720 --> 0:12:41.000 So I think that in. 0:12:40.920 --> 0:12:44.400 This sense, yes, there's demand for a lot of chips 0:12:44.440 --> 0:12:47.120 because the AI revolution is happening and we. 0:12:47.080 --> 0:12:48.240 Are all concerned with it. 0:12:48.480 --> 0:12:51.200 But the real winners are then going to be not 0:12:51.280 --> 0:12:54.319 the best ones in terms of their products, but also 0:12:54.360 --> 0:12:56.440 the ones that are going to be offering all the 0:12:56.600 --> 0:12:58.160 environment and the universe with it. 0:12:59.120 --> 0:13:01.800 You paid cost Code SKay, a senior market analyst over 0:13:01.800 --> 0:13:03.960 at Swiss Quote, thank you very much. Now coming up 0:13:03.960 --> 0:13:06.840 on the program paramounts and your meeting is underway. We're 0:13:06.840 --> 0:13:08.800 going to bring you those details next, Cary, what are 0:13:08.840 --> 0:13:09.200 you looking at? 0:13:09.400 --> 0:13:11.360 Just go back to chips for a moment, because we've 0:13:11.360 --> 0:13:14.080 had on the show before ed Core, we've CEO. Look, 0:13:14.120 --> 0:13:17.720 that's it's a private company cloud computing provider ultimately trying 0:13:17.720 --> 0:13:20.440 to win out and offering data center capacity for AI. 0:13:20.840 --> 0:13:21.720 They're making a deal. 0:13:22.040 --> 0:13:23.960 They're going to spend about a billion dollars to acquire 0:13:23.960 --> 0:13:27.600 a bitcoin minor call Scientific for four five dollars seventy 0:13:27.600 --> 0:13:30.440 five for shares. You can see we go hire on 0:13:30.520 --> 0:13:34.360 call Scientific today up thirty four percent from New York, 0:13:34.400 --> 0:13:34.920 San Francisco. 0:13:34.920 --> 0:13:59.360 This is a Boombog technology. 0:13:49.040 --> 0:13:53.080 Paramount having its annual general meeting today. That's after the 0:13:53.160 --> 0:13:56.840 reporting that keeps coming from Skydance Media's plan we understand 0:13:56.880 --> 0:13:59.080 to offer twenty three dollars a share to investors for 0:13:59.120 --> 0:14:01.599 the latest who want bring Ethan Raganathan of course of 0:14:01.640 --> 0:14:02.679 broome Bag Intelligence. 0:14:02.720 --> 0:14:04.680 And we think. 0:14:04.480 --> 0:14:08.200 About the promises made from these new leaders, three co CEOs, 0:14:08.200 --> 0:14:12.960 interim CEOs. It feels talking about streaming partnerships, cost cutting. 0:14:12.880 --> 0:14:15.320 Any of that. Master if there's potentially a deal on 0:14:15.360 --> 0:14:16.000 the table. 0:14:17.400 --> 0:14:20.480 Not really, Caroline, and you know this, this has really 0:14:20.520 --> 0:14:23.320 been the story of Paramount for so many months now 0:14:23.360 --> 0:14:27.000 because the fundamentals and the fundamentals are pretty weak, those 0:14:27.040 --> 0:14:30.800 have been completely overshadowed by these ongoing M and A talks. 0:14:30.800 --> 0:14:32.520 I mean, sky Dance has now been in this M 0:14:32.600 --> 0:14:35.080 and A mix for many, many months, I would say 0:14:35.120 --> 0:14:37.680 almost eight nine months. They had almost a thirty day 0:14:37.680 --> 0:14:41.800 exclusive negotiating period which expired in early May. There was 0:14:41.840 --> 0:14:44.440 another offer from Sony which was on the table. I 0:14:44.480 --> 0:14:47.320 think that you know, the speculation that Sony is still interested, 0:14:47.400 --> 0:14:50.560 that's obviously dying. And you know, we still kind of 0:14:50.600 --> 0:14:54.840 have the upgraded sky Dance offer for Paramount, but we 0:14:54.960 --> 0:14:57.960 do require that final sign off from you know, the 0:14:57.960 --> 0:15:01.480 controlling shareholder, Sherry Redstone. Yes, they did have the annual 0:15:01.480 --> 0:15:04.040 shareholder meeting, as you just pointed out, and obviously they 0:15:04.080 --> 0:15:07.080 outlined a lot of strategic initiatives. Again, as you said, 0:15:07.400 --> 0:15:09.320 I don't think any of it matters right now because 0:15:09.320 --> 0:15:12.160 you still have you know, the potential of this huge 0:15:12.200 --> 0:15:13.360 deal kind of coming through. 0:15:14.120 --> 0:15:16.920 So Githa and you are in research you published this 0:15:17.040 --> 0:15:21.920 morning saying final act in Paramount m and a saga 0:15:22.120 --> 0:15:27.200 as sky Dance poised for takeover dramatic television movie voice. 0:15:27.920 --> 0:15:30.080 Are you sure it's the final act? 0:15:30.640 --> 0:15:30.960 I'm not. 0:15:31.120 --> 0:15:33.280 And that's why I said it's not over until it's 0:15:33.320 --> 0:15:36.480 actually over, because we've seen this movie now so many 0:15:36.560 --> 0:15:40.000 times ed with with Paramount, right, sky Dance has been in, 0:15:40.040 --> 0:15:42.920 they've been out. You know, they were prepared to walk 0:15:42.960 --> 0:15:44.640 away from the whole thing, and then of course you 0:15:44.680 --> 0:15:47.400 had Sony and then you have some additional wrinkles now 0:15:47.440 --> 0:15:50.240 because we have you know, Hollywood financier Stephen Paul, who 0:15:50.280 --> 0:15:53.440 was rumored to be offering a three billion dollar steak 0:15:53.640 --> 0:15:57.920 for you know, the National Amusement. So Sherry Redstone's controlling 0:15:57.960 --> 0:15:59.040 stake in Paramount. 0:15:59.120 --> 0:16:00.000 So who knows. 0:16:00.160 --> 0:16:02.600 There have just been it's just been a whole roller 0:16:02.720 --> 0:16:06.520 coaster with Paramount for the past so many months now, 0:16:06.640 --> 0:16:09.040 so again, very hard to say it. Too many TWI 0:16:09.160 --> 0:16:11.280 centurns in this drama and with. 0:16:11.320 --> 0:16:14.600 Some key players, and ultimately it comes down to Sherry 0:16:14.640 --> 0:16:17.880 Redstone and whether she prioritizes herself or in anyway some 0:16:17.920 --> 0:16:21.200 of the non voting shareholders here, many of them being 0:16:21.280 --> 0:16:24.080 value investors rather than growth investors. I think John Rodgers 0:16:24.160 --> 0:16:26.960 from Aaron Investors, who's joined the show before to talk 0:16:26.960 --> 0:16:30.560 about his frustration that the premium goes to the voting 0:16:30.680 --> 0:16:34.400 holder rather than himself well, rather than long term investors 0:16:34.520 --> 0:16:38.360 in the non voting shares. What do you think needs 0:16:38.360 --> 0:16:41.360 to be articulated for the future of this business? Is 0:16:41.400 --> 0:16:44.320 there a future of streaming for Paramount or broadly? 0:16:45.520 --> 0:16:48.160 I mean that is a great question, Caroline, and I 0:16:48.200 --> 0:16:50.080 think that is the question that you know, that's the 0:16:50.080 --> 0:16:53.520 burning question right now. I mean, yes, with the with 0:16:53.600 --> 0:16:56.520 the merger with Skydance, Paramount will still very much remain 0:16:56.600 --> 0:16:59.560 a public company. You know, It's not like the Sony 0:16:59.560 --> 0:17:01.640 deal where the company would just kind of disappear. 0:17:01.960 --> 0:17:02.840 But the question is. 0:17:02.840 --> 0:17:05.439 Does mergers do mergers really do anything? 0:17:05.480 --> 0:17:07.360 Do they mean anything? I mean, we've seen this over 0:17:07.400 --> 0:17:07.960 and over again. 0:17:08.000 --> 0:17:12.359 Even with Viacom, the Viacom CBS combination which resulted in Paramount, 0:17:12.359 --> 0:17:16.800 we've seen a destruction of something like about sixty percent valuation. 0:17:17.240 --> 0:17:19.560 You know, it was over thirty billion market cap when 0:17:19.560 --> 0:17:22.440 when they kind of recombined in twenty nineteen. Today it's 0:17:22.440 --> 0:17:24.679 close to ten billions. So again, you know, none of 0:17:24.720 --> 0:17:26.639 these mergers have really worked. You look at Warner Brothers 0:17:26.640 --> 0:17:30.360 Discovery again, you know, a fiasco there. You again look 0:17:30.359 --> 0:17:33.199 at Disney Fox. All of these mergers have kind of 0:17:33.240 --> 0:17:35.760 really struggled. And so the question is do mergers really 0:17:35.840 --> 0:17:38.520 solve the fundamental value? I mean, there is so much 0:17:38.840 --> 0:17:42.600 of pressure, secular pressure in the linear TV ecosystem. So 0:17:42.600 --> 0:17:44.879 again that's a question that remains to be answered and 0:17:44.920 --> 0:17:46.480 we'll have to see how that, you know, kind of 0:17:46.520 --> 0:17:47.440 plays out. 0:17:47.920 --> 0:17:48.200 KEITHA. 0:17:48.240 --> 0:17:51.800 Rangenefan and Bloomberg Intelligence really appreciate the analysis. 0:17:51.880 --> 0:18:03.520 Thank you time now for talking tech. First up, Christie's 0:18:03.520 --> 0:18:06.640 hackers who stole client data have failed to upload any 0:18:06.720 --> 0:18:09.120 of that information to the dark web now. The hacking 0:18:09.119 --> 0:18:11.359 group known as ransom Hub threatened for over a week 0:18:11.440 --> 0:18:14.000 to release the stolen files on Monday, but there are 0:18:14.040 --> 0:18:17.040 no signs that has occurred. The criminals said Christie's had 0:18:17.080 --> 0:18:20.040 ceased communications after they had attempted to reach a quote 0:18:20.320 --> 0:18:24.840 reasonable resolution seeking on cyber A cyber attack on Change 0:18:24.880 --> 0:18:28.080 Healthcare is putting pressure on Washington Congress and the Biden 0:18:28.119 --> 0:18:31.760 administration are stepping up efforts to better protect highly sensitive data. 0:18:31.600 --> 0:18:32.840 From falling into the wrong hands. 0:18:33.119 --> 0:18:35.280 Up to a third of Americans are said to have 0:18:35.320 --> 0:18:38.159 had their private information exposed from the hack, and it's 0:18:38.200 --> 0:18:40.399 cost United Health up to one point six billion dollars 0:18:40.440 --> 0:18:44.320 in profits this year. And meanwhile, major hospitals in London 0:18:44.720 --> 0:18:47.479 they've been thrown into chaos. According to the BBC, a 0:18:47.520 --> 0:18:51.159 cyber attack on hospital's partnered with pathology services provider so 0:18:51.280 --> 0:18:54.480 Novis caused operations to be canceled, patients to be diverted, 0:18:54.480 --> 0:18:57.879 and deliveries to be rerouted. According to the Health Service Journal, 0:18:57.960 --> 0:19:01.320 the system was victim to a ransom wear attack ed. 0:19:02.359 --> 0:19:04.240 Okay, let's get back to that other big story. 0:19:04.359 --> 0:19:10.919 Elon Musk, according to reports ordering and let's be honest 0:19:11.040 --> 0:19:14.760 in Muskian style, may have exaggerated its procurement of AI 0:19:14.920 --> 0:19:18.879 chips for use at Tesla in x More, Bloomberg's craggedel 0:19:19.040 --> 0:19:23.679 joins us, this time from Detroit, his spiritual home. Some 0:19:23.760 --> 0:19:26.920 breaking news Musk has taken to x You'll be surprised 0:19:26.920 --> 0:19:31.920 to hear explaining that reports around him directing the shift 0:19:32.000 --> 0:19:36.600 of h one hundreds that were destined from Tesla to x. 0:19:36.640 --> 0:19:38.359 Or Xai were for a very. 0:19:38.240 --> 0:19:41.080 Logical reason Tesla had nowhere to put them. 0:19:41.280 --> 0:19:46.880 Craig, Yeah, it maybe stands to some reason ed because 0:19:46.920 --> 0:19:49.680 you reported just in the last few weeks that Tesla 0:19:49.800 --> 0:19:54.640 was running behind I'm building data centers. They're standing these 0:19:54.760 --> 0:19:59.000 up in Buffalo and in Austin, Texas, where they have 0:19:59.400 --> 0:20:04.640 their big factory. But this is a case still of, 0:20:04.960 --> 0:20:08.679 you know, an indication within Navidia that's they're sort of 0:20:08.720 --> 0:20:11.000 looking askance at some of the things that Musk has 0:20:11.040 --> 0:20:15.239 been saying about a really important aspect of you know, 0:20:15.280 --> 0:20:18.320 Tesla's business. This is, after all, sort of where he's 0:20:18.359 --> 0:20:21.800 steering this company is to self driving and AI and 0:20:21.960 --> 0:20:25.320 really trying to play up that aspect of what Tesla's 0:20:25.359 --> 0:20:30.560 working on as the fundamental car business really is struggling 0:20:30.600 --> 0:20:34.040 for the company. So for him to have to address 0:20:34.200 --> 0:20:37.240