WEBVTT - Tech SNAPS it's Losing Streak and Metaverse Wealth 0:00:02.320 --> 0:00:05.600 From the heart of where innovation, money and power COLLI 0:00:06.440 --> 0:00:10.960 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.000 --> 0:00:27.640 Emily Jay. I'm Emily Jack in San Francisco, and this 0:00:27.760 --> 0:00:32.159 is Bloomberg Technology. Coming up in the next hour, Tech Tenacity, stocks, 0:00:32.240 --> 0:00:34.960 and the week on a high with tech Shares helping 0:00:35.040 --> 0:00:38.280 Snap a seven week losing streak and yes that Snap 0:00:38.320 --> 0:00:43.120 pun is intended, plus lessons learned. I speak with the 0:00:43.159 --> 0:00:46.520 CEO of Solar Winds two years after that nightmare hack 0:00:46.600 --> 0:00:52.080 that started with Russia and blindsided Key customers and making 0:00:52.080 --> 0:00:55.040 money in the metaverse. We'll sit down with Roadblocks CEO 0:00:55.120 --> 0:00:58.280 David Bazuki to talk about the weird, the wonderful, and 0:00:58.400 --> 0:01:01.640 the lucrative as the form works to build a digital 0:01:01.840 --> 0:01:05.479 but civil community for kids around the world. We will 0:01:05.480 --> 0:01:07.280 get to all of that in a moment, but stocks 0:01:07.280 --> 0:01:10.520 climbing first. After another volatile day in week, tech stocks 0:01:10.560 --> 0:01:14.039 in particular bouncing back. Let's stick with the markets and 0:01:14.120 --> 0:01:16.160 the moves in tech this week and joining me from 0:01:16.160 --> 0:01:19.880 San Francisco, Mark Leman, CEO at j MP Securities, Mark, 0:01:19.920 --> 0:01:22.319 thank you so much for joining us. You know I 0:01:22.360 --> 0:01:24.600 asked at the same question, how are you making sense 0:01:24.640 --> 0:01:27.600 of all this week. You know, first the bottom falling 0:01:27.600 --> 0:01:30.720 out from under us, and now now suddenly investors are 0:01:30.760 --> 0:01:36.600 okay with it. Well, i'd say kind of yes. So 0:01:37.160 --> 0:01:39.880 a week and as that claimed a thousand points off 0:01:39.880 --> 0:01:43.240 the bottom at about three o'clock East coast time last 0:01:43.280 --> 0:01:47.319 Friday to today, it's almost a thousand point rally, and 0:01:47.360 --> 0:01:50.440 that's historic, um. But it shows you the amount of 0:01:50.480 --> 0:01:53.600 pessimism that was in the market. And look what's happened 0:01:53.600 --> 0:01:56.400 in a week. Okay, we like we've heard rates has 0:01:56.440 --> 0:02:01.160 stayed relatively tepid two or on the tenure, We've rallied massively, 0:02:01.560 --> 0:02:03.640 and we've actually had some earnings revisions that have been 0:02:03.720 --> 0:02:06.760 somewhat negative. But the market I think has seen some 0:02:06.800 --> 0:02:08.880 of those and said, you know, they're not as bad 0:02:08.880 --> 0:02:11.160 as I once would have thought. We've seen the consumers 0:02:11.160 --> 0:02:13.440 slow down a little bit, which is also a positive 0:02:13.440 --> 0:02:16.600 sign that this runaway inflation may be tempering a little bit. 0:02:16.919 --> 0:02:19.720 And I think most importantly, I think companies are getting 0:02:19.720 --> 0:02:22.480 more realistic and the market is getting more realistic. But 0:02:22.639 --> 0:02:25.040 the public market and the private market, and that is 0:02:25.280 --> 0:02:27.280 I think amplify about what we saw some m and 0:02:27.320 --> 0:02:30.640 A this week, So you take all those factors. Yeah, 0:02:30.720 --> 0:02:32.600 I'm not going to predict the other thousand point rally 0:02:32.600 --> 0:02:34.720 in the NAZAC this week, but I think we came 0:02:34.840 --> 0:02:38.000 so far so fast that we needed a little bit 0:02:38.200 --> 0:02:40.720 of some good news, and this week even some of 0:02:40.760 --> 0:02:43.720 the more moderate news was perceived as good news. That's 0:02:43.720 --> 0:02:46.560 a great sign. So let's go back to them. That 0:02:46.720 --> 0:02:51.560 snap pun is the snap case isolated to SNAP or 0:02:51.639 --> 0:02:56.560 two maybe social media stocks, and not potentially such an 0:02:56.639 --> 0:03:01.959 indication of such a broader narrative. Listen, I think Snaps 0:03:01.960 --> 0:03:05.920 over the zealousness at the last quarter is reaping some 0:03:06.040 --> 0:03:08.240 of the downside that we saw this week. So they 0:03:08.240 --> 0:03:10.840 put out a terrific fourth quarter, if you remember, and 0:03:10.880 --> 0:03:13.720 the stock zoomed up no pun intended to a much 0:03:13.800 --> 0:03:17.399 higher lofty level after that. And then when we saw 0:03:17.480 --> 0:03:20.880 this tempered note about the rest of the year, stock 0:03:20.919 --> 0:03:24.240 got punished greatly. And I think some of that quote 0:03:24.280 --> 0:03:28.360 unquote a rational exuberance from before they're paying for You 0:03:28.440 --> 0:03:30.720 also see some people like Workdre today which did not 0:03:30.760 --> 0:03:33.880 put out a particularly good report. The stock was down five, 0:03:34.680 --> 0:03:37.120 but that on a on a day like last week 0:03:37.160 --> 0:03:39.800 would have been down a lot more and when you 0:03:39.840 --> 0:03:43.440 see companies putting out more tepid guidance and the stocks 0:03:43.480 --> 0:03:46.160 really not getting creamed, I think that's a sign that 0:03:46.200 --> 0:03:49.160 investors are getting comfortable with multiples and maybe the worst 0:03:49.200 --> 0:03:51.320 is behind them, and that again is a good sign. 0:03:51.600 --> 0:03:53.880 The fastest way for things to go up is for 0:03:53.960 --> 0:03:56.200 things to stop going down, and I think we've seen 0:03:56.280 --> 0:03:58.160 some of that this week. And I think this is 0:03:58.160 --> 0:04:01.920 a really interesting point because again the consumer is slowing down, 0:04:02.320 --> 0:04:05.240 the high end consumer still has ample capital, and I 0:04:05.280 --> 0:04:08.160 think the market reflects that. We also saw one of 0:04:08.160 --> 0:04:12.520 the biggest tech deals in history sealed this week Broadcom 0:04:12.520 --> 0:04:14.880 and v n where. Of course, you know we've seen 0:04:14.920 --> 0:04:17.600 some big deals in the last few months, Microsoft Activision, 0:04:17.680 --> 0:04:21.200 of course, this potential deal Elon Musk buying Twitter. Are 0:04:21.240 --> 0:04:24.440 these unique one offs or are we going to see 0:04:24.480 --> 0:04:28.680 a trend in M and A. I think you'll see more, 0:04:29.160 --> 0:04:33.080 and I'll tell you why. Um companies obviously have balance 0:04:33.120 --> 0:04:36.120 sheets that are fortified. So you're seeing big tech have 0:04:36.240 --> 0:04:39.279 balance sheets that are fortified. You're seeing capital on the 0:04:39.320 --> 0:04:43.520 sidelines for interesting deals. It's ready to get deployed for this. 0:04:43.880 --> 0:04:46.960 So when you announce it to the market, the stocks 0:04:46.960 --> 0:04:50.039 obviously are working because they see the combination of those 0:04:50.040 --> 0:04:54.320 two companies working. Now we see some other things in 0:04:54.360 --> 0:04:56.200 the on the name m and A World, or to 0:04:56.240 --> 0:04:59.080 go private world with Twitter that are different. But when 0:04:59.120 --> 0:05:01.200 you see that kind of activity that we've seen earlier 0:05:01.600 --> 0:05:04.920 this year we saw with Tomo Bravo taking company private, 0:05:05.320 --> 0:05:08.000 those are signs that there's lots of capital on the sidelines. 0:05:08.320 --> 0:05:10.920 Evaluations are getting to a point where private equity really 0:05:10.960 --> 0:05:13.760 likes them, or public currency is enough where they want 0:05:13.800 --> 0:05:16.880 to use them again. That's another sign that there's lots 0:05:16.880 --> 0:05:19.760 of capital out there, and at these prices, buyers are 0:05:19.760 --> 0:05:21.760 going to show up. So if you're looking at the 0:05:21.800 --> 0:05:24.480 numbers right now, what do you think are the biggest risks? 0:05:24.480 --> 0:05:26.520 What are the names you see as most risky, What 0:05:26.600 --> 0:05:31.320 do you think could potentially behave in profitless tech continues 0:05:31.360 --> 0:05:34.880 to be a place that people are worried about. And 0:05:34.920 --> 0:05:39.760 I think companies, every boardroom, every venture capitalist, every private 0:05:39.800 --> 0:05:42.840 equity person has told their companies, show me your path 0:05:42.880 --> 0:05:45.440 to profitability and show it to me now. And I 0:05:45.440 --> 0:05:49.040 think that's really showing up in the boardrooms and showing 0:05:49.120 --> 0:05:52.080 up in investor's psyches, and frankly, showing up in private 0:05:52.080 --> 0:05:55.200 evaluations too. They were in denial because when you stay private, 0:05:55.600 --> 0:05:57.320 you can tell anybody what do you think you're worth it. 0:05:57.320 --> 0:05:59.400 You can tell what the last round you raised, and 0:05:59.440 --> 0:06:01.719 that probably was inaccurate if you did it at some point. 0:06:02.960 --> 0:06:07.320 So profitless tech with no path of profitability is worrisome. 0:06:07.960 --> 0:06:10.680 What I would point towards some of the darlings of 0:06:10.839 --> 0:06:13.040 last year that are not the darlings of this year. 0:06:13.480 --> 0:06:15.240 So I point to some of the I p O 0:06:15.279 --> 0:06:17.400 s last year is a company called legal Zoom that 0:06:17.440 --> 0:06:19.880 we were part of, trading at three times revenue. There's 0:06:19.880 --> 0:06:22.760 a smaller company in Israeli company. Israeli companies were the 0:06:22.839 --> 0:06:26.440 darling of the market last year called Walkbee two times revenues, 0:06:26.680 --> 0:06:31.000 almost market caps in cash. A big one. Airbnb fallen 0:06:31.040 --> 0:06:33.520 greatly from the April hives. And just because it's falling 0:06:33.560 --> 0:06:36.400 doesn't mean it's cheap. Okay, Well, we will see what 0:06:36.480 --> 0:06:39.279 the next week brings. At least after a holiday weekend 0:06:39.320 --> 0:06:41.800 here in the United States, we'll be watching crypto trading 0:06:41.800 --> 0:06:44.440 through the weekend. JMP Security CEO Mark Lehman. Mark, great 0:06:44.520 --> 0:06:56.200 to have you back with us here. The name Solar 0:06:56.200 --> 0:06:58.720 Winds and many of us might immediately think back to 0:06:58.839 --> 0:07:02.320 that major cyber it's hack that originated from Russia. Hackers 0:07:02.360 --> 0:07:07.080 gained access via a software update to major companies like Microsoft, Intel, 0:07:07.160 --> 0:07:10.480 and Cisco. Well, nearly two years later, the company is 0:07:10.480 --> 0:07:13.320 sharing more information about how it's gotten past that massive 0:07:13.360 --> 0:07:17.400 breach and its new approach to preventing it from ever 0:07:17.520 --> 0:07:20.280 happening again. I'm joined now by solar Wins President and 0:07:20.320 --> 0:07:24.360 CEO Sedaka Rama Krishna. Saka, thank you so much for 0:07:24.840 --> 0:07:29.160 joining us. So solar Wins doesn't actually sell cybersecurity project products, 0:07:29.200 --> 0:07:33.600 but I t management software to hundreds of thousands of customers. 0:07:34.160 --> 0:07:37.440 How is your new approach different from the approach you 0:07:37.560 --> 0:07:41.480 had two years ago? As fall Emily, thank you for 0:07:41.560 --> 0:07:44.760 having me here. You are right. We selling software and 0:07:44.880 --> 0:07:48.800 support and serve customers, in fact, more than three hundred 0:07:48.840 --> 0:07:53.160 thousands of them worldwide. As we came out of the 0:07:53.240 --> 0:07:57.480 cyber incident and learned some key lessons in terms of 0:07:57.480 --> 0:08:01.400 how to improve how soft ware is built not only 0:08:01.440 --> 0:08:04.840 today but into the future. Hopefully. There are some critical 0:08:04.920 --> 0:08:07.200 things that we've done in the context of what I 0:08:07.320 --> 0:08:11.360 call secure by Design. One of the fundamental aspects of 0:08:11.400 --> 0:08:15.480 that is how we actually build software with the key 0:08:15.520 --> 0:08:20.200 goal of reducing the threat surface and reducing the threat 0:08:20.400 --> 0:08:26.240 window for attackers to attack supply chains involved in building software. 0:08:26.680 --> 0:08:31.600 What do you mean by that? So every software product, 0:08:32.160 --> 0:08:35.400 such as the ones from US or Microsoft or actor 0:08:35.559 --> 0:08:41.600 who never involves the compilation of a large number of files. Uh, 0:08:41.760 --> 0:08:45.000 and many times we use third party software in the 0:08:45.040 --> 0:08:48.560 building of our product. So in essence, similar to hardware 0:08:48.600 --> 0:08:51.760 supply chains where you build let's call it a television 0:08:52.200 --> 0:08:55.440 with parts from various suppliers, you're doing the same thing 0:08:55.520 --> 0:08:59.040 with software as well, and so at every point there 0:08:59.080 --> 0:09:01.920 is a potential for security threats and hacks. And so 0:09:02.000 --> 0:09:05.199 what we've done is build a unique model of creating 0:09:05.320 --> 0:09:09.640 software which involves parallel build systems. So think of it 0:09:09.720 --> 0:09:12.520 as the same software is built in three different locations. 0:09:13.040 --> 0:09:15.320 I may not exactly know where they are being built, 0:09:15.480 --> 0:09:18.000 but at the end of the process we check the 0:09:18.080 --> 0:09:22.320 integrity across them such that an attack if they have 0:09:22.440 --> 0:09:25.600 to attack, will have to know these locations and attack 0:09:25.679 --> 0:09:30.760 them exactly consistently, making it more painful for them to attack. So, 0:09:31.160 --> 0:09:34.679 aside from building the software in different locations, a year 0:09:34.720 --> 0:09:37.840 and a half later, what would you do differently. Now 0:09:37.880 --> 0:09:41.880 when you look back terms of I wouldn't call them 0:09:41.920 --> 0:09:45.320 so much doing differently because the security posture and the 0:09:45.400 --> 0:09:49.640 security investments that Sullivan's may commensurate to the industry, but 0:09:49.800 --> 0:09:53.360 maybe I call it from my industry standpoint. Some key reinforcements. 0:09:54.080 --> 0:09:57.640 First I would say is you cannot do it alone. Uh, 0:09:58.000 --> 0:10:01.600 security breaches. No matter how big and how resourceful you are. 0:10:01.720 --> 0:10:04.439 You could be a Microsoft or an Octa or a Sullivance, 0:10:04.880 --> 0:10:08.240 you are not immune to it. So the notion of 0:10:08.360 --> 0:10:13.080 public and private partnerships are incredibly important and incredibly critical. 0:10:13.720 --> 0:10:16.040 So that is an area where I've been working on 0:10:16.080 --> 0:10:18.560 and others have been working on as well. We see progress, 0:10:18.559 --> 0:10:20.400 but we are not quite where we need to be. 0:10:21.080 --> 0:10:25.840 The second pieces, transparency is extremely important because as sooner 0:10:25.880 --> 0:10:30.280 we identify and report these issues, the sooner we inoculate, 0:10:30.520 --> 0:10:33.640 the less the damage. And oftentimes people tend to not 0:10:33.840 --> 0:10:37.840 come out in the fear of victim shaming or lawyer 0:10:37.920 --> 0:10:41.440 up and not address the real issues in war. And 0:10:41.520 --> 0:10:43.719 the other piece I would say, in addition to collaboration 0:10:43.840 --> 0:10:47.320 is humility because it is not a letter of when 0:10:48.120 --> 0:10:51.600 or if I should say, but when so let's talk 0:10:51.600 --> 0:10:53.680 about the when I'm curious if there have been any 0:10:53.760 --> 0:10:57.120 updates to the actual investigation. Is there any new information 0:10:57.200 --> 0:11:02.400 about when those hackers first breached solar winds? We we 0:11:02.520 --> 0:11:07.079 largely concluded our investigation last year and reported our findings, 0:11:07.080 --> 0:11:10.200 so there has been no new findings since then. It's 0:11:10.200 --> 0:11:15.720 all been focused on redeveloping our focus on how to 0:11:15.760 --> 0:11:18.320 build software in the best possible way and engaging with 0:11:18.360 --> 0:11:22.679 our customers and partners and employees worldwide. But there are 0:11:22.720 --> 0:11:25.880 still plenty of things that aren't known about this incident 0:11:26.040 --> 0:11:29.240 or understood. There really hasn't been a public accounting of 0:11:29.240 --> 0:11:32.160 what happened by the government, for example, and by most 0:11:32.200 --> 0:11:34.640 of those in the private sector. What questions should we 0:11:34.720 --> 0:11:40.079 be asking of government and industry officials about it? The 0:11:40.480 --> 0:11:45.160 key question to really ask is what key improvements in 0:11:45.160 --> 0:11:51.120 information sharing between public and private have been created and proliferated. 0:11:51.520 --> 0:11:55.600 That is still a very asymmetric relationship at this point 0:11:55.640 --> 0:11:59.320 in time. As I pledged, we are driving a greater 0:11:59.400 --> 0:12:03.079 level of trans spendency and collaboration with the government of parties. 0:12:03.920 --> 0:12:06.800 The reciprocation has been there, but I would also say 0:12:06.840 --> 0:12:10.840 that industry wide, it is extremely inconsistent, So I'll give 0:12:10.880 --> 0:12:15.000 you one statistic here. On an industry survey, more than 0:12:15.120 --> 0:12:19.719 nine percent of respondents said that public private relationships are 0:12:19.800 --> 0:12:26.440 important to addressing security issues. However, about said that these 0:12:26.480 --> 0:12:30.240 are effective today. So there's a wide disparity between what 0:12:30.480 --> 0:12:34.280 is perceived need versus what is actually there today. So 0:12:34.400 --> 0:12:37.160 Dr Rama Krishna, CEO of Solar Winds, thank you for 0:12:37.200 --> 0:12:40.560 sharing some of those lessons you learned with us. Coming up, 0:12:40.920 --> 0:12:43.720 if your kids are playing video games, they are likely 0:12:43.800 --> 0:12:46.840 on Roadblocks. My conversation with Roadblocks CEO David Bozuki on 0:12:46.920 --> 0:12:54.920 Studio one Point up next us it's the online platform 0:12:55.000 --> 0:12:57.880 kids are going gaga for. I spoke with Roadblocks CEO 0:12:57.960 --> 0:13:00.400 and co founder David Bozuki about the ind out of 0:13:00.440 --> 0:13:04.120 building a digital community that is safe and civil while 0:13:04.120 --> 0:13:06.160 it's gloring new ways to make money and scale a 0:13:06.240 --> 0:13:09.280 future metaverse on the latest Studio one Point out, Take 0:13:09.320 --> 0:13:12.840 a listen and um. It goes back to how exciting 0:13:12.880 --> 0:13:15.440 it is to have a company in this space that 0:13:15.480 --> 0:13:18.600 I think is ultimately got so many years of growth 0:13:18.679 --> 0:13:21.600 to it and is a new category following other types 0:13:21.640 --> 0:13:26.079 of technologies. There's still so much innovation to be done, 0:13:26.200 --> 0:13:28.400 and there's so much invention to be done in this 0:13:28.480 --> 0:13:32.439 category that it's mind boggling. The critics think that metaverse 0:13:32.640 --> 0:13:35.199 the term is just marketing. How do you respond to that? 0:13:35.559 --> 0:13:39.079 This type of technology is much more difficult than the 0:13:39.120 --> 0:13:42.120 net or the web, which was another huge thing that 0:13:42.160 --> 0:13:45.720 we saw predicted and has started to come. But but 0:13:45.800 --> 0:13:48.360 I think we're seeing early signs of it. When Mark 0:13:48.440 --> 0:13:52.319 Zuckerberg announced his plan to own the metaverse and change 0:13:52.320 --> 0:13:55.800 Facebook's name to meta as if it was something new, 0:13:55.840 --> 0:13:59.640 did that kind of bother you? Um? No, of course not. 0:13:59.840 --> 0:14:03.160 It's really hard to predict in five to ten or 0:14:03.200 --> 0:14:06.839 twenty years, what are the companies that really figure it out. 0:14:06.960 --> 0:14:11.680 And there's so many elements of innovation that are needed. Um, 0:14:11.720 --> 0:14:14.199 having a U g C community one of our strengths. 0:14:14.200 --> 0:14:16.240 We think that's like a huge starting point for us. 0:14:16.240 --> 0:14:20.360 But we're early in our quest for innovation here. Roadblocks 0:14:20.360 --> 0:14:24.200 has built a huge business selling road bucks. Does this 0:14:24.280 --> 0:14:27.920 evolve into a much bigger marketplace? It was this revelation 0:14:28.120 --> 0:14:31.200 that people would ultimately make a living on platforms like 0:14:31.240 --> 0:14:35.560 this that started this digital currency is very Roadblocks centric 0:14:35.560 --> 0:14:38.480 in netwere a systems company or utility so it has 0:14:38.560 --> 0:14:42.160 formed this robust economy. It's allowed us to keep robox. 0:14:42.360 --> 0:14:45.360 You know, roadblox is free for the vast majority. Would 0:14:45.400 --> 0:14:47.720 Roadblocks have a partner with some of these other companies 0:14:47.720 --> 0:14:50.960 working on the metaverse, whether it is Meta or Unity 0:14:51.160 --> 0:14:55.960 or Epic or Microsoft the core technology of you know, 0:14:55.960 --> 0:14:58.720 how are we going to ultimately support fifty people in 0:14:58.800 --> 0:15:01.240 real time on a phone and going to a concert 0:15:01.240 --> 0:15:04.040 together and waving your friends. I think that's going to 0:15:04.120 --> 0:15:07.600 be a lot of engineering work that each company is 0:15:07.600 --> 0:15:09.520 going to be working on, and it's going to be 0:15:09.560 --> 0:15:13.320 really hard. As far as ultimately can an avatar go 0:15:13.480 --> 0:15:16.600 from one place to another, I think they'll be lightweight 0:15:16.720 --> 0:15:19.920 ways of starting to think about that. So what role 0:15:19.960 --> 0:15:22.280 do you think Apple and Android should play in the 0:15:22.320 --> 0:15:25.800 metaphors and what their policies need to change to really 0:15:25.880 --> 0:15:29.280 support this vision? And the biggest thing we would take 0:15:29.320 --> 0:15:32.360 advantage of if it were to happen is a change 0:15:32.400 --> 0:15:35.280 in those store fees. We we stay out of it. 0:15:35.320 --> 0:15:38.280 We let Google and Apple kind of run their businesses. 0:15:38.640 --> 0:15:41.720 But when we think about more and more developers making 0:15:41.760 --> 0:15:45.720 a living on platforms like us and having to build stuff, 0:15:45.760 --> 0:15:48.120 if those store fees were to change, we would move 0:15:48.160 --> 0:15:50.760 most of that money back to our developers. Your goal 0:15:50.840 --> 0:15:55.640 is to build an entirely new category of human co experience, 0:15:55.840 --> 0:16:00.520 the next phase of human interaction. Yeah, how do you 0:16:00.680 --> 0:16:06.280 moderate that on such a massive scale? Are you doing 0:16:06.280 --> 0:16:09.040 a good enough job? In the third week when we 0:16:09.040 --> 0:16:12.120 were live, you can go imagine Eric and myself back 0:16:12.160 --> 0:16:15.880 in our small office. Eric and I said, oh my gosh, 0:16:16.080 --> 0:16:18.640 safety and civilities, We're going to have to do it. 0:16:18.680 --> 0:16:21.120 We had maybe a hundred people at the time chatting 0:16:21.160 --> 0:16:24.440 on roadblocks. We saw a few not that agreed just 0:16:24.600 --> 0:16:26.720 by early signs, and we just made the call. This 0:16:26.800 --> 0:16:29.520 is going to be the foundation of what we do 0:16:30.000 --> 0:16:33.880 in the early years of Roadblocks. As we've gotten bigger, 0:16:33.920 --> 0:16:37.200 we've gotten to the point where there's thousands of moderators. 0:16:37.240 --> 0:16:41.040 Every image that goes on our platform gets human reviewed. 0:16:41.640 --> 0:16:46.840 We filter texts very stringently, especially for thirteen and under players. 0:16:47.280 --> 0:16:49.600 We use a lot of AI and mL to help 0:16:49.680 --> 0:16:53.360 do this. We're always getting better, um, but it is 0:16:53.400 --> 0:16:56.640 a key thing for us. How optimistic are you about 0:16:56.680 --> 0:16:59.320 AI and tech being able to do that? I'm really 0:16:59.360 --> 0:17:02.320 actually opt mystic. We would never compare to the real 0:17:02.360 --> 0:17:05.919 world because our standards are so much more stringent. But 0:17:06.000 --> 0:17:08.879 I do believe this will just keep getting better and better, 0:17:08.920 --> 0:17:10.639 and I think over time it will get to the 0:17:10.720 --> 0:17:13.840 point where if a six year old is on our platform, 0:17:14.280 --> 0:17:17.480 it's literally as if the parents wanted to be there 0:17:17.520 --> 0:17:20.880 with them watching everything. We'll be able to offer that 0:17:20.920 --> 0:17:24.400 type of thing. Now, a lot of parents are terrified. 0:17:24.440 --> 0:17:28.000 They're terrified of a future metaverse. They don't understand the 0:17:28.040 --> 0:17:32.320 parental controls. Do you understand that feeling? We do. We 0:17:32.400 --> 0:17:35.360 actually have to. I think it creates a higher standard 0:17:35.440 --> 0:17:39.200 for us, because I think we can't assume every parent 0:17:39.359 --> 0:17:41.520 is going to get that involved with their kids. There 0:17:41.560 --> 0:17:45.919 have been some serious content challenges. You know, stories about 0:17:46.200 --> 0:17:51.639 roadblocks being a playground for virtual fascists. Well, there was 0:17:51.720 --> 0:17:55.200 just this story about Kim Kardashian's own child seeing an 0:17:55.240 --> 0:17:58.240 ad for a game that claimed to have a sex 0:17:58.280 --> 0:18:02.480 tape of her. What happened there that was very unfortunate. 0:18:02.560 --> 0:18:06.320 There was a text blurb very shortly that very very 0:18:06.359 --> 0:18:09.800 few people saw. We took the place down, We moderated 0:18:09.880 --> 0:18:12.520 that user, and they're off our platform. It was now 0:18:12.640 --> 0:18:14.919 the video was never on our platform. There was no 0:18:15.040 --> 0:18:17.919 imagery on our platform. It was a very short mention, 0:18:18.359 --> 0:18:22.200 but very unfortunate and um, well, you know, our vision 0:18:22.320 --> 0:18:25.159 is to be the most civil place for everyone. You 0:18:25.200 --> 0:18:27.240 can check out the full studio one point at Bloomberg 0:18:27.280 --> 0:18:30.760 dot com or listen to the podcast and later the 0:18:30.800 --> 0:18:33.280 company that is partnering with Row Blocks on a brand 0:18:33.280 --> 0:18:36.919 new f D A approved video game to help kids 0:18:37.119 --> 0:18:39.800 with a d h D that's up later in the show, 0:18:39.880 --> 0:18:53.280 and the pay equity start up backed by Steph Curry. 0:18:54.320 --> 0:18:57.040 Welcome back to Bloomberg Technology. I'm Emily checking in San Francisco. 0:18:57.200 --> 0:18:59.159 Let's turn out to what is becoming one of the 0:18:59.160 --> 0:19:02.080 biggest stories of the year, and that is Elon Musk's 0:19:02.080 --> 0:19:05.040 bid to buy Twitter shares of the company, rising for 0:19:05.080 --> 0:19:07.600 the third day in a row. Now it's best streak 0:19:07.680 --> 0:19:10.840 in a month. Twitter chaining at about forty dollars to share, 0:19:10.960 --> 0:19:14.560 closing that gap, getting a bit closer to that fifty 0:19:14.600 --> 0:19:18.280 four and twenty cents per share offer from Elon Musk. 0:19:18.359 --> 0:19:21.760 But in another twist, news that regulators are looking into 0:19:21.800 --> 0:19:25.680 how Musk said about building his steak in the company, 0:19:25.800 --> 0:19:28.399 joining me to unpack it all. Who else but our 0:19:28.480 --> 0:19:30.679 very own ed Ludlow so ed what exactly is the 0:19:30.760 --> 0:19:33.240 SEC looking at now? So they released the letter on Friday, 0:19:33.400 --> 0:19:36.359 dated April four, and that's important because April fourth is 0:19:36.400 --> 0:19:40.000 the date that Elon Musk first disclosed his nine points 0:19:40.000 --> 0:19:43.399 you percent stating the company and they're asking him for information. 0:19:44.080 --> 0:19:47.200 Why did you use this particular filing type. The filing 0:19:47.200 --> 0:19:50.440 type he used was for passive investors, but he had 0:19:50.560 --> 0:19:53.240 more than five cents steak and as we now know, 0:19:53.320 --> 0:19:55.560 he had activist intentions. He went on to put a 0:19:55.560 --> 0:19:57.800 bit in for the company. And there was also a timing. 0:19:57.800 --> 0:19:59.560 You know, when you build up a steak, you have 0:19:59.600 --> 0:20:01.720 a window to disclose it, and they asked him why 0:20:01.760 --> 0:20:04.439 he disclosed it outside or after that window. But the 0:20:04.480 --> 0:20:07.280 reason we care this is serious. This is the SEC 0:20:07.520 --> 0:20:10.199 taking a real look at this deal and perhaps the 0:20:10.240 --> 0:20:12.400 inference being they could look at it even closer. Right, 0:20:12.440 --> 0:20:17.200 So what could the consequences be or the fall outbeat? Well, simply, 0:20:17.400 --> 0:20:20.720 did Elon Musk breach any securities laws? We don't know, 0:20:21.119 --> 0:20:23.800 but that is what the question is at least. So 0:20:24.320 --> 0:20:26.280 you were at the a g M earlier this week 0:20:26.720 --> 0:20:30.080 when Dan Durban Silver Lake board member doesn't get the 0:20:30.160 --> 0:20:34.200 votes to stay on the board, he resigns, but Twitter's 0:20:34.200 --> 0:20:37.840 board doesn't accept his resignation. Correct, so he's still on 0:20:37.880 --> 0:20:39.840 the board. And this is, by the way, someone who 0:20:39.920 --> 0:20:42.840 is an ally or known as an ally who masks. 0:20:42.960 --> 0:20:45.439 So there was a vote whether he should stay on 0:20:45.440 --> 0:20:48.080 the board or not. He didn't receive enough votes. Some 0:20:48.200 --> 0:20:50.720 of the funds that voted against it, for example, said 0:20:51.520 --> 0:20:53.720 he's on too many boards. He's on like six public 0:20:53.720 --> 0:20:59.160 company boards. That's too many. So Twitter cited their proxy 0:20:59.240 --> 0:21:01.199 by laws of theme, and he's saying, we don't accept 0:21:01.320 --> 0:21:03.920 his resignation from the board. We're keeping him on the board. 0:21:03.960 --> 0:21:06.240 They exercise the right to do it. And it's as simple. 0:21:06.320 --> 0:21:08.440 So what's the point of his older's voting. I don't 0:21:08.440 --> 0:21:11.240 think it's a great question. It's a good corporate governance question. 0:21:11.280 --> 0:21:14.720 But they basically said the Twitter's management and the rest 0:21:14.720 --> 0:21:18.160 of the board he has exceptional history skills, he adds 0:21:18.160 --> 0:21:21.399 incredible value, he understands the industry. He's an asset. We 0:21:21.400 --> 0:21:23.240 would like him sell on the board. That's the matter. 0:21:23.440 --> 0:21:26.040 So shares are up, of course, the broader markets are up. 0:21:26.400 --> 0:21:29.720 Is this also confidence that the deals will happen because 0:21:29.760 --> 0:21:31.879 we've seen Elon Musk makes some moves this week to 0:21:31.960 --> 0:21:34.600 restructure the deal. So when we saw the big sell 0:21:34.600 --> 0:21:36.800 off in tech Stox, Twitter didn't really follow suit, and 0:21:36.880 --> 0:21:40.040 so the the idea was that why would it. It's 0:21:40.080 --> 0:21:44.040 kind of up for purchase. The deal has gaining a 0:21:44.160 --> 0:21:46.240 bit of confidence right that. We call it the spread, 0:21:46.280 --> 0:21:48.439 the gap between where the shares are currently trading and 0:21:48.440 --> 0:21:51.080 the offer price four dollar twenty cents. I don't know 0:21:51.080 --> 0:21:52.400 if we have a chart on that we can show 0:21:52.480 --> 0:21:55.280 very quickly. But the other big news this week was 0:21:55.320 --> 0:21:58.920 Elon Musk took out the margin loan component component basically 0:21:59.040 --> 0:22:01.600 debt to on the deal that's secured against some of 0:22:01.680 --> 0:22:04.280 his test assault. That's now gone and it's a pretty 0:22:04.359 --> 0:22:07.840 much majority equity financing deal. He still has to ask others, 0:22:07.880 --> 0:22:11.680 including Jack Ducy, if they'll participate, maybe rollover existing shares, 0:22:12.119 --> 0:22:14.320 But I think all told, in a crazy week, we're 0:22:14.359 --> 0:22:18.240 moving towards a place where the deal could happen. We'll see, 0:22:18.880 --> 0:22:24.640 all right, Aboma, thank you well, Instacart, PayPal, Microsoft all 0:22:24.640 --> 0:22:27.520 announced this week that they are cutting staff or slowing hiring. 0:22:27.520 --> 0:22:29.800 It is part of a larger trend across tech as 0:22:29.840 --> 0:22:33.159 companies prepare for a possibly prolonged downturn. I want to 0:22:33.160 --> 0:22:36.159 talk about all this and more with Maria Colacuccio. She 0:22:36.359 --> 0:22:40.160 is the CEO of Cindio, which helps companies not only identify, 0:22:40.200 --> 0:22:43.520 but address and resolve pay disparities. Marie, it's great to 0:22:43.560 --> 0:22:46.080 have you back here on the show. So you have 0:22:46.119 --> 0:22:49.040 a really unique window into how companies are navigating some 0:22:49.160 --> 0:22:51.840 major cultural shifts, the move to work from home, the 0:22:51.920 --> 0:22:55.720 great resignation, now this downturn, and you know, perhaps some 0:22:56.000 --> 0:23:01.640 rethinking of the potential to resign and how exactly our 0:23:01.640 --> 0:23:05.560