WEBVTT - Nasdaq Drops 4% and Twitter's All-Hands Meeting 0:00:02.360 --> 0:00:05.720 From the heart of where innovation, money and power collive 0:00:06.480 --> 0:00:11.000 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.039 --> 0:00:26.759 Emily Jay Primily Chang in San Francisco, And this is 0:00:26.800 --> 0:00:30.280 Bloomberg Technology coming up in the next hour. Global recession 0:00:30.360 --> 0:00:34.159 fears ramp up as a federal reserve struggle to tackle 0:00:34.479 --> 0:00:38.159 widespread inflation, the NASTAC one hundred leading the charge in 0:00:38.320 --> 0:00:44.240 tumbling US stocks, lost, potential layoffs, pay and freedom of speech. 0:00:44.280 --> 0:00:46.960 It was all discussed at a virtual meeting with Elon 0:00:47.040 --> 0:00:49.800 Musk and Twitter employees. We're gonna talk to a former 0:00:49.840 --> 0:00:54.720 Twitter insider about the future of the social platform and 0:00:54.840 --> 0:00:57.800 crypto crisis. A conversation with Mike nova Grats of Galaxy 0:00:57.840 --> 0:01:01.520 Digital about when he expects this crisp crypto winter to 0:01:01.720 --> 0:01:05.120 warm up. First, I want to talk about the markets 0:01:05.160 --> 0:01:10.320 with Carol's Life BMO Family Office Deputy Chief Investment Officers. So, Carol, 0:01:10.400 --> 0:01:13.520 how are you reading that up yesterday down today? How 0:01:13.520 --> 0:01:16.400 do you make sense of it all? It's t It 0:01:16.480 --> 0:01:18.520 is definitely tough to make sense of it, but I 0:01:18.560 --> 0:01:21.600 think part of it reflects investors on a day to 0:01:21.680 --> 0:01:25.360 day basis. Yesterday there was some exuberance particularly over Chairman 0:01:25.520 --> 0:01:29.560 Powell's conversation after the actual FED meeting and the FED 0:01:29.640 --> 0:01:33.880 release in the press conference talking about thinking that the 0:01:34.000 --> 0:01:38.280 number of seventy basis point um increases might be limited. 0:01:38.319 --> 0:01:42.120 So markets got a little bit exuberant about that yesterday 0:01:42.120 --> 0:01:45.119 and relieved, if you will. Then flying into today, it's 0:01:45.120 --> 0:01:47.640 sort of like the morning after, and people decided instead 0:01:47.640 --> 0:01:50.400 of focusing on the glass half full, they focus on 0:01:50.440 --> 0:01:53.080 all of the half empty things, and how much narrower 0:01:53.200 --> 0:01:56.360 that makes the Fed's ability to traverse and trying to 0:01:56.480 --> 0:01:59.520 stick a soft landing. So at this point, are you 0:01:59.560 --> 0:02:05.120 thinking a recession is inevitable? Um, it's probably, it's it 0:02:05.560 --> 0:02:09.239 maybe high higher likelihood, if you will. We weren't going 0:02:09.240 --> 0:02:12.840 into this necessarily thinking a recession was highly probable. Markets 0:02:12.840 --> 0:02:16.080 are discounting a seventy chance that you'll see a recession. 0:02:16.440 --> 0:02:18.679 We do think if you see one, however, that it 0:02:18.720 --> 0:02:23.040 will be shorter and then less deep than ever then 0:02:23.160 --> 0:02:25.840 then we've seen in prior recessions. And so a piece 0:02:25.840 --> 0:02:28.600 of that relates to the fact that there is so 0:02:28.720 --> 0:02:31.520 much underlying business strength. And the other thing that goes 0:02:31.680 --> 0:02:33.960 pretty unsung is the fact that a lot of our 0:02:34.000 --> 0:02:37.960 companies have proven to be very adaptable and resilient and 0:02:38.160 --> 0:02:40.640 able to shift their business model, but they're facing a 0:02:40.639 --> 0:02:44.919 lot of challenges and so um the hope everyone is 0:02:44.960 --> 0:02:46.720 waiting with bated breath to see if we're going to 0:02:46.800 --> 0:02:49.760 have that recession, but we don't think it would be sharpened. 0:02:51.240 --> 0:02:53.560 So how is this impacting your approach to tech? Of 0:02:53.560 --> 0:02:57.680 course we're seeing Apple, Tesla, Twitter, mega cap tech stock sinking, 0:02:57.720 --> 0:02:59.560 some other narratives going on there of course with this 0:02:59.680 --> 0:03:03.200 elon Twitter thing, But how are you evolving your strategy 0:03:03.200 --> 0:03:05.839 when it comes to big tech names. I think it's 0:03:05.880 --> 0:03:09.440 not just big tech names, it's thinking through technology in general. 0:03:09.919 --> 0:03:14.079 And typically what we've seen cycle after cycle over decades 0:03:14.160 --> 0:03:18.000 is that what leads going into a recession isn't necessarily 0:03:18.000 --> 0:03:20.080 what leads coming out, and so we might have to 0:03:20.120 --> 0:03:23.799 be more discriminating figuring out where growth and technology comes. 0:03:24.160 --> 0:03:26.840 A lot of the growth in this in the new scenario, 0:03:26.919 --> 0:03:32.800 if you will will be reshoring, building, manufacturing, spending some 0:03:32.880 --> 0:03:36.200 of the trillion dollars in aid money that is still 0:03:36.240 --> 0:03:39.240 in the in the pipeline for infrastructure spend, that will 0:03:39.280 --> 0:03:42.760 require your different kind of technology. So it's gonna require 0:03:42.800 --> 0:03:46.000 investors to think more carefully about where their technology goes. 0:03:46.320 --> 0:03:49.600 It's not necessarily just consumer based tech, which played so 0:03:49.680 --> 0:03:53.680 well over the last couple of years a pandemic. You know, 0:03:53.720 --> 0:03:55.880 we've been talking about the fact that Cisco, you know, 0:03:56.000 --> 0:03:58.160 kind of like a poster child for the dot com bust, 0:03:58.320 --> 0:04:02.080 hit its high before the combust and has since never recovered. 0:04:02.120 --> 0:04:04.200 What do you think are going to be the ciscos 0:04:04.360 --> 0:04:09.320 of this generation. It's tough. We're not necessarily allowed to 0:04:09.520 --> 0:04:13.040 talk individual securities, but I do think looking at industries 0:04:13.080 --> 0:04:18.080 that will support that restoring building and manufacturing and the 0:04:18.120 --> 0:04:23.599 shifting of certain things like where individual people are in 0:04:23.720 --> 0:04:27.200 lower paid or higher risk jobs, and you're automating, so robotics, 0:04:27.279 --> 0:04:30.440 artificial intelligence, sensors, lots of different things that are going 0:04:30.480 --> 0:04:34.719 to play into that new economy as we shift. Um. 0:04:34.760 --> 0:04:37.680 It's not like technology as an entire industry needs to 0:04:37.720 --> 0:04:41.599 be written off or pieces of it, because much of 0:04:41.640 --> 0:04:44.120 it will still continue to play. But it's looking at 0:04:44.120 --> 0:04:47.599 where you're going to have that investment and what industries 0:04:47.640 --> 0:04:50.560 are likely to be able to play into the build out. 0:04:51.240 --> 0:04:54.360 All right, uh cause life Thanks for sharing your views 0:04:54.400 --> 0:05:00.479 with us. BMO Family Office Deputy Chief Investment Officer appreciate it. Meantime, 0:05:00.520 --> 0:05:03.719 it stocks plunge and inflation rises, some companies are trying 0:05:03.720 --> 0:05:07.440 to allure customers with new features. T Mobile just announced 0:05:07.440 --> 0:05:10.320 it is expanding its coverage to hundreds of countries around 0:05:10.360 --> 0:05:13.400 the globe and two flights. Let's get into that and 0:05:13.440 --> 0:05:15.440 how it fits into the macro environment with T Mobile 0:05:15.440 --> 0:05:18.680 CEO Mike sever Mike, always good to have you back 0:05:18.720 --> 0:05:20.640 with us. Tell us about this announcement and why you 0:05:20.680 --> 0:05:23.240 think now with all of this going on, is the 0:05:23.320 --> 0:05:27.159 right time. Well, let's start with now. You know, consumers 0:05:27.160 --> 0:05:29.480 are concerned, Emily, as you've been saying in this whole segment, 0:05:29.960 --> 0:05:32.280 and that's not just about the possibility of a recession 0:05:32.320 --> 0:05:34.320 that may or may not unfold throughout the rest of 0:05:34.320 --> 0:05:38.640 this year. Consumers are feeling the pinch right now and 0:05:38.720 --> 0:05:40.720 our view as we can use the size and the 0:05:40.760 --> 0:05:43.320 scale of T Mobile to help. And what's interesting is 0:05:43.560 --> 0:05:46.960 summers here and after two years, while feeling the pinch, 0:05:47.240 --> 0:05:50.320 customers want to get out there and travel. Travels back 0:05:50.440 --> 0:05:55.279 spendings up at at higher than pre pandemic levels, and 0:05:55.320 --> 0:05:57.560 so you have this dual force, a desire to travel, 0:05:57.880 --> 0:06:00.719 combined with pinched pockets, and we're here to help. And 0:06:00.760 --> 0:06:03.880 so today's announcements are all about making travel easier for 0:06:03.920 --> 0:06:07.520 the tens of millions of T mobile customers everywhere. I 0:06:07.600 --> 0:06:11.000 have to ask your thoughts on the macro economic environment. 0:06:11.040 --> 0:06:13.760 What do you see over the next six to twelve months. 0:06:13.760 --> 0:06:16.240 If Elon Musks has a super bad feeling about the 0:06:16.279 --> 0:06:20.159 economy and Jamie diamond says we're headed for an economic hurricane, 0:06:20.160 --> 0:06:23.479 You've got the World Bank slashing their growth forecast, how 0:06:23.480 --> 0:06:25.960 are you watching all of this? Well, I can tell 0:06:26.000 --> 0:06:28.000 you that you know, we're in touch with our customers 0:06:28.040 --> 0:06:31.000 and they're concerned. And my view is our job when 0:06:31.040 --> 0:06:34.200 we have customers that are concerned about the economic situation 0:06:34.640 --> 0:06:37.200 is to be ready to help. And that's why we're 0:06:37.240 --> 0:06:39.039 doing the things that we're doing. And it's so different 0:06:39.040 --> 0:06:41.120 than the rest of the industry. You know, our competitors 0:06:41.520 --> 0:06:44.320 over the last month have, at this very moment, while 0:06:44.400 --> 0:06:47.560 consumers are concerned about everything you're asking about, have done 0:06:47.600 --> 0:06:51.800 two billion dollars of price increases between them. And so 0:06:51.839 --> 0:06:54.960 it really showcases how different our strategy is. Ours is 0:06:55.000 --> 0:06:58.920 to look forward at what's unfolding, understand the concerned consumers 0:06:58.960 --> 0:07:02.240 have and poor value into our plans so that we 0:07:02.279 --> 0:07:04.840 can help them. And by the way, this isn't just altruistic. 0:07:04.839 --> 0:07:07.479 If we help them, it makes our most popular plan 0:07:07.600 --> 0:07:11.320 more popular, Magenta Max. And if that continues to gain popularity, 0:07:11.360 --> 0:07:14.880 well that helps our revenues to and everyone wins. So 0:07:15.280 --> 0:07:18.080 you did raise some fees on on millions of customers 0:07:18.120 --> 0:07:21.920 wireless bills earlier this year, and I'm curious how as 0:07:21.960 --> 0:07:29.000 we move forward your plan to navigate inflation is evolving. Well, 0:07:29.000 --> 0:07:31.080 one of the things that makes us different is that 0:07:31.120 --> 0:07:33.960 we have what's called price lock, and so what we 0:07:34.000 --> 0:07:36.880 don't do is take the fee that you signed up 0:07:36.920 --> 0:07:39.360 for and during the term of an agreement with you 0:07:39.680 --> 0:07:42.680 is change your price your ongoing price per month. And 0:07:42.720 --> 0:07:45.600 so that's really important to people right now. And by 0:07:45.600 --> 0:07:48.200 the way, our business as an industry and as a 0:07:48.240 --> 0:07:51.000 sector is a little different than some We are probably 0:07:51.080 --> 0:07:55.160 more insulated from inflationary pressures as a company than many 0:07:55.200 --> 0:07:57.600 businesses and other sectors. You know, we have long term 0:07:57.640 --> 0:08:03.240 tower contracts, long term connectivity contracts, long term technology contracts 0:08:03.240 --> 0:08:05.960 with our tech vendors, and so those things insulate us 0:08:06.000 --> 0:08:08.880 somewhat and allow us to do things like today's news. 0:08:08.880 --> 0:08:11.880 You know, we're pouring hundreds of millions of dollars of 0:08:11.880 --> 0:08:16.040 incremental value into Magenta Max and making travel easier for 0:08:16.120 --> 0:08:20.120 customers by doing something nobody has ever done before, which 0:08:20.200 --> 0:08:23.720 is put globally high speed data right into our most 0:08:23.720 --> 0:08:27.600 popular plan at no extra charge. Plus connect you on 0:08:27.640 --> 0:08:30.600 all of your flights for free on the most popular 0:08:30.640 --> 0:08:35.200 airlines American, Delta, Alaska and coming soon United. No one's 0:08:35.200 --> 0:08:38.040 ever done anything like this before. And you know, there's 0:08:38.080 --> 0:08:42.240 so much to today's news, but it's about making travel easier. Now, 0:08:42.360 --> 0:08:46.640 we are seeing a number of different companies hiring freezes, layoffs. 0:08:46.880 --> 0:08:49.120 Are you considering are you having to make any cost 0:08:49.160 --> 0:08:52.439 cutting measures? Um? Do you have any plans like that? 0:08:53.679 --> 0:08:56.520 We're executing our post merger playbook and by the way, 0:08:56.559 --> 0:09:01.080 I'll remind you, was the biggest growth here in our history. 0:09:01.440 --> 0:09:04.040 The first quarter was the biggest growth queue one in 0:09:04.080 --> 0:09:07.240 our history on new accounts. And so we're executing our 0:09:07.360 --> 0:09:10.760 successful business plan. And obviously, over time we have to 0:09:10.800 --> 0:09:13.560 be really smart about how we manage our company and 0:09:13.600 --> 0:09:16.480 we'll do that. UM. But look, this is a model 0:09:16.520 --> 0:09:20.080 that's unfolding exactly like we told investors it would unfold 0:09:20.240 --> 0:09:22.120 when we did our analysts day and laid out our 0:09:22.160 --> 0:09:26.440 five year plan last spring. All right, Mike Sivert, CEO 0:09:26.720 --> 0:09:28.800 of T Mobile, Good to have you back with us. 0:09:28.840 --> 0:09:30.760 Thanks for sharing the news with us, and hear your 0:09:30.840 --> 0:09:35.600 views on the macro environment ahead. Meantime, the world largest 0:09:35.800 --> 0:09:39.600 theater chain is once again branching out. AMC will create 0:09:39.640 --> 0:09:42.320 a one million dollar fund to invest in other businesses. 0:09:42.400 --> 0:09:45.319 That's from CEO Adam Aaron at the company's annual meeting. 0:09:45.440 --> 0:09:48.439 A MCS board approve this plan, but Aaron didn't say 0:09:48.440 --> 0:09:51.079 where the cash will come from. In March, am C 0:09:51.440 --> 0:09:56.440 bought of high Craft Mining, a gold and silver mining stock. 0:09:57.480 --> 0:10:00.720 Coming up. Musk stands his ground, tell us Twitter employees 0:10:00.720 --> 0:10:05.280 the platform should allow quote pretty outrageous, thinks more on 0:10:05.360 --> 0:10:08.520 his virtual visit to the all hands meeting next this 0:10:08.640 --> 0:10:38.400 is Bloomberg. Ellen Musk took questions from Twitter employees at 0:10:38.400 --> 0:10:41.240 an all hands meeting, addressing everything from potential layoffs to 0:10:41.280 --> 0:10:44.600 remote work to his vision for free speech on the platform. 0:10:44.720 --> 0:10:47.520 Musk didn't address whether he was committed to a deal 0:10:48.000 --> 0:10:50.680 to buy Twitter. We're joined out by former Twitter employee 0:10:50.679 --> 0:10:53.440 clar Diaz. Ortiz, author of a book called Twitter for Good. 0:10:53.520 --> 0:10:56.760 She's also currently a venture scout at Kleiner Perkins. Bloomberg's 0:10:56.840 --> 0:11:00.280 Ed Ludlow here as well. And you were obviously covering 0:11:00.320 --> 0:11:02.560 the meeting in real time. We had the contents of 0:11:02.600 --> 0:11:05.240 the meeting leak to Bloomberg in real time. Just remind 0:11:05.320 --> 0:11:09.319 us what happened, what the flashpoints. You're right to phrase 0:11:09.360 --> 0:11:11.400 it in that it's what he did not say, because 0:11:11.400 --> 0:11:13.160 he had been built and reported in the Wall Street 0:11:13.200 --> 0:11:16.400 Journal that he kind of outline his interest in buying 0:11:16.400 --> 0:11:20.000 the company, you know, and and he didn't explicitly say 0:11:20.080 --> 0:11:22.680 I'm committed to this deal, but he wasn't explicitly asked 0:11:22.679 --> 0:11:25.520 if he was not explicitly asked, And basically how this 0:11:25.559 --> 0:11:28.760 works was Twitter staff were invited to ask questions through 0:11:28.760 --> 0:11:32.959 an internal Slack channel. Those questions were aggregated by U, 0:11:33.640 --> 0:11:36.079 the CMO, who then asked the dealon must But you know, 0:11:36.160 --> 0:11:38.400 he did give some really interesting insight into how he 0:11:38.520 --> 0:11:40.920 changed the platform. You know, he actually left the door 0:11:40.920 --> 0:11:44.640 open to advertising model, which was interesting because many assumed 0:11:44.640 --> 0:11:46.679 that the ad model wasn't good. In his mind, he 0:11:46.720 --> 0:11:49.440 talked about subscriptions being good, but the one that really 0:11:49.480 --> 0:11:52.720 jumped out of me was this idea that he would 0:11:52.800 --> 0:11:57.320 charge users for verification to verify that you're an actual 0:11:57.600 --> 0:11:59.640 human as opposed to a bot, and obviously bought the 0:11:59.679 --> 0:12:01.959 top of mind Frelon Musk, Claire, what do you make 0:12:02.040 --> 0:12:04.800 of Let's start with the business plan. So I think 0:12:05.080 --> 0:12:08.640 you know, some of these ideas are great. The verification program, 0:12:08.679 --> 0:12:10.560 if you can call it, that has been broken since 0:12:10.600 --> 0:12:12.960 it was created, so it would be fantastic if someone 0:12:12.960 --> 0:12:14.520 comes in with some idea to fix that. And I 0:12:14.559 --> 0:12:17.160 don't know the nuances of it, if charging is actually 0:12:17.160 --> 0:12:19.400 a good idea or not. Yeah, But I think the 0:12:19.480 --> 0:12:21.760 larger question here is just like I think all of 0:12:21.800 --> 0:12:23.560 this is sort of window dressing. I don't think Elon 0:12:23.640 --> 0:12:26.320 Musk wants to buy Twitter anymore. Right, His idea, if 0:12:26.320 --> 0:12:28.000 you don't know, dumming, His idea was that if you 0:12:28.120 --> 0:12:31.000 charge people, and he didn't put a price on it, 0:12:31.040 --> 0:12:34.440 but to verify if you run a scam or a 0:12:34.480 --> 0:12:37.400 spam or a organization where you have lots of accounts. 0:12:37.720 --> 0:12:40.439 He kind of talks about disincentivizing bonds that to make 0:12:40.480 --> 0:12:43.440 it so expensive they're having a load of fake accounts 0:12:43.520 --> 0:12:45.800 is not worth as will be. Is that going to work? 0:12:46.000 --> 0:12:47.679 And maybe it would work. I don't know. Twitter says 0:12:47.720 --> 0:12:49.760 they've had less than five percent boats other people say 0:12:49.800 --> 0:12:52.360 they have up to But is this relevant? I mean, 0:12:52.440 --> 0:12:55.640 isn't sort of this whole elon Musk buy Twitter, dumpster 0:12:55.720 --> 0:12:59.080 fire just kind of like extending on and on and on. 0:12:59.120 --> 0:13:01.560 What do you think I I don't think he wants it. 0:13:01.640 --> 0:13:03.679 I mean, you have kids. I have kids. There are 0:13:03.679 --> 0:13:05.360 a lot of them in my house. When they want 0:13:05.360 --> 0:13:07.480 a cookie, they start throwing a tantrum and eventually they 0:13:07.480 --> 0:13:10.000 don't want the cookie anymore, but they're still throwing the tantrum. 0:13:10.360 --> 0:13:13.800 I don't think he wants this. So you know, today 0:13:13.800 --> 0:13:16.240 he says you should be able to say pretty outrageous 0:13:16.280 --> 0:13:19.480 things on Twitter short of anything that breaks the law. 0:13:19.720 --> 0:13:22.920 Is that good enough as a content moderation policy? That's 0:13:22.920 --> 0:13:24.240 not good enough at all. I mean, I think you've 0:13:24.240 --> 0:13:26.719 talked to Jason Goldman, one of my favorite bosses when 0:13:26.720 --> 0:13:28.640 I worked there, and he's I think said it best 0:13:28.640 --> 0:13:29.920 when he said that, you know, if you take the 0:13:29.920 --> 0:13:33.080 guardrails off the platform, that in definition is anti free 0:13:33.160 --> 0:13:36.080 speech because you're preventing a bunch of people from being 0:13:36.080 --> 0:13:37.960 able to say anything because they don't feel safe on it. 0:13:39.679 --> 0:13:41.800 Talking to Twitter employees who are still there today, I mean, 0:13:41.920 --> 0:13:44.280 how do they feel? How do I feel for them? 0:13:44.360 --> 0:13:47.520 I feel sad. I feel very sad. These are very smart, 0:13:47.760 --> 0:13:50.760 wise people, you know, supporting families, and they're stuck in 0:13:50.800 --> 0:13:52.800 the middle of this. And you know, I, like everyone else, 0:13:52.840 --> 0:13:54.800 makes jokes on Twitter all the time about it because 0:13:54.800 --> 0:13:57.200 it's so ridiculous and it just doesn't seem to end. 0:13:57.720 --> 0:13:59.839 But but these are real people. I think it's pointing 0:13:59.840 --> 0:14:02.160 out what Elomas said as well as it relates to 0:14:02.160 --> 0:14:04.400 the staff. You know, the idea of work from home 0:14:04.480 --> 0:14:07.920 remote work was really went over and over, and must 0:14:07.920 --> 0:14:11.080 made the point that if you do excellent work, you 0:14:11.120 --> 0:14:13.560 may have an exception to be a remote worker. But 0:14:13.640 --> 0:14:16.720 he kind of seems to suggest that it's not gonna happen. 0:14:16.760 --> 0:14:18.800 This is after Jack Dorsey had decided two years ago 0:14:18.840 --> 0:14:21.800 that Twitter employees could work from home forever. So that 0:14:21.840 --> 0:14:24.000 and that, I think, at least in our reporting of 0:14:24.040 --> 0:14:27.000 the meeting, was the most disruptive part of it. You 0:14:27.040 --> 0:14:30.120 had like absolute the employee chat just lighting up with it, 0:14:30.120 --> 0:14:32.760 and he's saying excellent work. That's like Silicon Valley code 0:14:32.800 --> 0:14:34.840 for saying, you know, if you're the best bro, we'll 0:14:34.920 --> 0:14:36.720 let you work from home, but everyone else has to 0:14:36.760 --> 0:14:39.200 be in the office. I think what's interesting for me 0:14:39.240 --> 0:14:41.000 and I'd love your take on this is he talks 0:14:41.000 --> 0:14:43.360 about what Twitter would look like as a private company 0:14:43.360 --> 0:14:45.240 and compensation is is a big part of that. He 0:14:45.240 --> 0:14:47.760 said it would be like SpaceX, where you have stock 0:14:47.800 --> 0:14:50.760 and options awards a liquidity event every six months, which 0:14:50.760 --> 0:14:53.040 I think he means stock would be able to trade 0:14:53.040 --> 0:14:56.680 on the secondaries market. Um, but Twitter is kind of 0:14:56.680 --> 0:14:59.640 like a San Francisco Silicon Valley mainstay. It has a culture. 0:15:01.720 --> 0:15:03.760 How does that quote to change? I think the culture 0:15:03.800 --> 0:15:06.360 will change dramatically. But I don't think employees are stupid, 0:15:06.400 --> 0:15:08.000 you know. I mean at the beginning of this whole 0:15:08.000 --> 0:15:11.120 sort of journey, we we all sort of I think 0:15:11.160 --> 0:15:14.000 many of us thought this could actually be an interesting 0:15:14.040 --> 0:15:18.000 but crazy idea. You know, Twitter stock has historically underperformed. 0:15:18.040 --> 0:15:19.720 All of us who are early employees have probably cried 0:15:19.760 --> 0:15:21.560 into our bank statements as sometime that we you know, 0:15:21.600 --> 0:15:23.840 didn't work at LinkedIn instead or whatever. The talk. The 0:15:23.880 --> 0:15:26.760 stock has been performing really badly since an I p O. 0:15:26.880 --> 0:15:28.400 So I think there was some sort of a hope 0:15:28.800 --> 0:15:31.480 that maybe this crazy idea could do something good, But 0:15:31.520 --> 0:15:34.280 I think at this point it's just derailed. So where 0:15:34.280 --> 0:15:36.120 does this leave Twitter? I mean, he you know, he 0:15:36.160 --> 0:15:38.680 has these lofty goals get to a billion users. Again, 0:15:38.760 --> 0:15:40.960 we don't know if he's still really committed to to 0:15:41.040 --> 0:15:44.040 buying the platform, but he's got a deal assigned deal 0:15:44.160 --> 0:15:48.200 that binds him to buying the platform. Nobody knows how 0:15:48.240 --> 0:15:50.040 this is all going to play out. I think we 0:15:50.080 --> 0:15:52.520 should acknowledge there is a contingent of people who are 0:15:52.720 --> 0:15:56.360 super excited about Elon Musk buying Twitter, including some people 0:15:57.040 --> 0:16:01.200 at the company. Um. I think the very best thing 0:16:01.240 --> 0:16:05.320 that could happen in this situation is like like I 0:16:05.400 --> 0:16:08.120 act with my toddlers when they're out of control. I 0:16:08.520 --> 0:16:11.160 think we can convince Ellen he has won in some 0:16:11.200 --> 0:16:13.800 way by giving him something, but then making this all 0:16:13.840 --> 0:16:16.440 go away in some legal manner, something like what kind 0:16:16.440 --> 0:16:18.480 of something? I don't know. Well, he said he wasn't 0:16:18.520 --> 0:16:21.520 interested in the CEO role necessarily. He said he was 0:16:21.520 --> 0:16:24.760 more focused on product development than a title. But from 0:16:24.800 --> 0:16:27.200 what you know about Twitter, is the bod thing as 0:16:27.240 --> 0:16:29.640 big a problem as he seems to think it is um. 0:16:29.680 --> 0:16:31.920 I think we all think that that's just cover for 0:16:32.000 --> 0:16:34.360 what's happening. Right. I'm sure there's a bod problem. There 0:16:34.360 --> 0:16:37.520 always has been. But this is his, this is his out. 0:16:37.920 --> 0:16:40.240 And remind us what the next steps are, the time 0:16:40.240 --> 0:16:43.880 frame for this to this this to actually move forward, 0:16:44.320 --> 0:16:47.560 standard deal stuff, schedule a vote with the shareholders. You know, 0:16:47.680 --> 0:16:49.880 the board has given its unanimous approval of this deal 0:16:49.920 --> 0:16:52.960 at twenty cents to share. As far as Twitter's concerned, 0:16:52.960 --> 0:16:54.920 mindstanding that you want to hold him to the terms 0:16:54.920 --> 0:16:59.000 of the deal. Signed, all right, basic stuff basic indeed 0:16:59.240 --> 0:17:02.160 or not basic at home? And thank you, Claire. Thank 0:17:02.200 --> 0:17:05.600 you for sharing your very unvarnished view of the state 0:17:05.600 --> 0:17:16.359 of flight. Thank you, Clary as artees Now to a 0:17:16.359 --> 0:17:18.880 few other stories we continue to watch. Tesla has hiked 0:17:18.880 --> 0:17:21.160 prices across its line up by as much as six 0:17:21.160 --> 0:17:24.359 thousand dollars. This at least the third price hype for 0:17:24.400 --> 0:17:27.040 Tesla this year. CEO Elon must said earlier this week. 0:17:27.040 --> 0:17:29.720 The electric car company has weathered a tough patch the 0:17:29.800 --> 0:17:33.800 last three months, facing a month long lockdown in Shanghai 0:17:34.000 --> 0:17:38.960 and supply chain snarls that have challenged production and Musk 0:17:39.040 --> 0:17:42.399 and his companies Tesla and SpaceX were sued for billion 0:17:42.440 --> 0:17:45.399 dollars over claims they're part of a racketeering scheme to 0:17:45.440 --> 0:17:48.959 back the cryptocurrency dog Point. A man named Keith Johnson 0:17:48.960 --> 0:17:50.720 is seeking to represent a class of people who have 0:17:50.800 --> 0:17:54.679 lost money trading in DOS since April. He's asking for 0:17:54.720 --> 0:17:58.119 eighty six billion dollars in damages, plus triple damages of 0:17:58.400 --> 0:18:02.280 a hundred seventy two billion dollars, and an order blocking 0:18:02.359 --> 0:18:06.040 musk At his companies from promoting dose coin. He also 0:18:06.040 --> 0:18:10.000 wants the court to declare does trading constitutes gambling under 0:18:10.160 --> 0:18:15.080 US and New York law. Inflation market turmoil investors pulling 0:18:15.119 --> 0:18:18.520 back has many a startup tightening their belts and cutting costs. 0:18:18.680 --> 0:18:21.199 But there's one new unicorn that didn't wait for the 0:18:21.240 --> 0:18:24.760 downturn to be thirsty or maybe it's savvy. Start up 0:18:24.960 --> 0:18:29.080 Vanta helps businesses protect against dated breaches. It's co founder 0:18:29.119 --> 0:18:32.680 and CEO, Christina Cassiopo, joins US now along with David Sachs, 0:18:32.680 --> 0:18:36.520 a partner at Craft Vncher's who led the investment in Vanta. 0:18:36.680 --> 0:18:38.400 Thank you both so much for joining us. Christina, I'll 0:18:38.400 --> 0:18:41.359 start with you. You started off in venture capital. You 0:18:41.440 --> 0:18:43.840 worked in product at drop Box and you left to 0:18:43.960 --> 0:18:46.600 form Vanta. What is the problem that you're trying to 0:18:46.640 --> 0:18:51.040 solve here? So really broadly, we're trying to help software 0:18:51.040 --> 0:18:55.680 companies be more trustworthy with their customers and build that trust. 0:18:56.000 --> 0:18:57.920 And so the way we do that is help those 0:18:57.920 --> 0:19:01.320 software companies improve their secure artie and then go off 0:19:01.320 --> 0:19:04.399 and prove it, often through something like a compliance at it, 0:19:04.720 --> 0:19:08.119 a stock to GDPR hit the you know, showing that 0:19:08.160 --> 0:19:11.560 they're taking these regulations seriously and really using them as 0:19:11.560 --> 0:19:15.760 an opportunity to build trust with their customers and ultimately 0:19:15.760 --> 0:19:19.879 grow their revenue in businesses. Now, David, I know a 0:19:19.920 --> 0:19:22.199 lot of investors are being very careful about where they 0:19:22.200 --> 0:19:26.320 put their money right now. What attracted you to this company? Well, 0:19:26.640 --> 0:19:28.359 Vanta as a company have been interested in for a 0:19:28.359 --> 0:19:31.000 long time. UM. We started to notice a number of 0:19:31.040 --> 0:19:34.199 years ago that many of our portfolio companies were using Vanta. 0:19:34.440 --> 0:19:36.240 You know, we invest in a lot of SAS companies 0:19:36.240 --> 0:19:39.760 and we saw Vanta becoming a critical enabler for SAS 0:19:39.760 --> 0:19:42.000 companies that want to sell into enterprises. Basically, if you 0:19:42.040 --> 0:19:44.920 want to sell enterprise deals, you have to get a 0:19:44.960 --> 0:19:48.600 stock to certification you have to do twenty seven thousand one. 0:19:49.000 --> 0:19:51.080 You have to comply with pc I and g D 0:19:51.200 --> 0:19:53.800 p R. And we saw that the market was shifting 0:19:53.880 --> 0:19:57.760 from using high priced, expensive and slow consultants to using 0:19:57.800 --> 0:20:00.640 a software platform like Vanta. So we wanted to invest 0:20:00.680 --> 0:20:02.800 in Banta for a long time, and when the opportunity 0:20:02.800 --> 0:20:05.880 came up, despite their being this downturn, we really jumped 0:20:05.920 --> 0:20:09.399 up the opportunity. So Christina talked to us about this 0:20:09.520 --> 0:20:12.720 costco coffee only approach. I mean, I don't I love 0:20:12.760 --> 0:20:17.479 actually food at Costco, but I understand that you guys 0:20:17.560 --> 0:20:20.879 have been very conscious about, you know, keeping costs down, 0:20:21.080 --> 0:20:25.240 you know, even before we found ourselves in this macro environment. Yes, 0:20:25.359 --> 0:20:27.840 you mentioned. I was fortunate to start my career at 0:20:27.840 --> 0:20:30.600 an early stage VC firm and unit to grad Ventures 0:20:30.640 --> 0:20:32.720 and learned a lot there um. And one thing in 0:20:32.760 --> 0:20:37.000 particular was that investors prefer funding businesses that don't really 0:20:37.040 --> 0:20:40.440 need funding, um. And that's just informed how we've froun 0:20:40.560 --> 0:20:44.959 Banta from the early days is to grow and be aggressive, 0:20:45.040 --> 0:20:47.479 but also do so with an eye to controlling our 0:20:47.520 --> 0:20:50.760 own destiny um. And so one early example of that 0:20:51.080 --> 0:20:53.640 is we actually got to ten million dollars in revenue 0:20:53.760 --> 0:20:57.720 onjust a seed round. Uh. And again some of that were, 0:20:57.760 --> 0:21:00.480 you know, hopefully printing business decisions. And then there's a 0:21:00.520 --> 0:21:02.520 lot of things kind of like the cost co coffee 0:21:02.600 --> 0:21:06.199 that both help cut some costs that you might be 0:21:06.240 --> 0:21:09.760 spending otherwise, and they're just a helpful cultural signal to 0:21:09.800 --> 0:21:12.320 folks that you know, hey, we're here to build a business. 0:21:12.560 --> 0:21:16.800 That's what's most important. David, you know, what's your advice 0:21:16.840 --> 0:21:19.640 to start ups right now? In this macro environment, all 0:21:19.640 --> 0:21:22.679 of this uncertainty. You had people comparing this to the 0:21:22.760 --> 0:21:26.400 dot com bust. Mm hmmm, Well, this is clearly one 0:21:26.400 --> 0:21:29.040 of the top three worst downturns that Silicon Valley has 0:21:29.080 --> 0:21:30.960 seen in the last twenty years, along with the dot 0:21:30.960 --> 0:21:33.400 com crash back in two thousand and then the Great 0:21:33.400 --> 0:21:36.440 Recession in two thousand eight, and so I think this 0:21:36.480 --> 0:21:38.439 one is on track to be worse than two thousand eight. 0:21:38.440 --> 0:21:40.520 I don't think somebody as bad as two thousand, but 0:21:40.560 --> 0:21:43.040 I think founders need to get aware that we are 0:21:43.080 --> 0:21:46.479