WEBVTT - BI Weekend: Meta, Constellation Deal, Tesla Robotaxi Limits 0:00:00.280 --> 0:00:11.600 Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Intelligence 0:00:11.720 --> 0:00:13.800 with Alex Steel and Paul Sweeney. 0:00:13.920 --> 0:00:17.119 The real ap performance has been in US corporate high yield. 0:00:17.320 --> 0:00:19.680 Are the companies lean enough? Have they trimmed all the fats? 0:00:19.720 --> 0:00:22.880 The semiconductor business is a really cyclical. 0:00:22.480 --> 0:00:26.680 Business, breaking market headlines and corporate news from across the globe. 0:00:26.720 --> 0:00:29.200 Do investors like the M and A that we've seen? 0:00:29.400 --> 0:00:32.360 These are two big time blue chip companies. 0:00:32.600 --> 0:00:36.400 Window between the peak and cunt changing super fast. 0:00:36.240 --> 0:00:41.280 Bloomberg Intelligence with Alex Steele and Paul Sweeney on Bloomberg Radio. 0:00:42.560 --> 0:00:44.959 On Today's Bloomberg Intelligence Show, we dig inside the big 0:00:45.000 --> 0:00:47.280 business stories impacting Wall Street and the global markets. 0:00:47.360 --> 0:00:49.320 Each and every week we provide in depth research and 0:00:49.400 --> 0:00:51.159 data on some of the two thousand companies and one 0:00:51.240 --> 0:00:53.880 hundred and thirty industries our analysts cover worldwide. 0:00:53.960 --> 0:00:56.800 Today, we'll take a look at the telecommunications company Comcast 0:00:56.840 --> 0:00:58.640 and how it's benefiting from its theme parks. 0:00:58.760 --> 0:01:00.680 Plus we'll look at how oil and gas companies are 0:01:00.720 --> 0:01:02.760 investing in low carbon technologies. 0:01:03.040 --> 0:01:03.160 Well. 0:01:03.200 --> 0:01:05.840 First, we begin with some news in tech and energy. 0:01:06.000 --> 0:01:08.480 This week, Constellation Energy agreed to sell power from a 0:01:08.480 --> 0:01:11.720 Clinton Nuclear Plan in Illinois to the tech giant Meta Platforms. 0:01:11.720 --> 0:01:14.680 It's a twenty year contract starting in mid twenty twenty seven. 0:01:14.760 --> 0:01:16.920 And this comes as nuclear power has emerged as one 0:01:16.959 --> 0:01:19.319 of the biggest winners from the AI fueled search and 0:01:19.360 --> 0:01:20.319 electricity demand. 0:01:20.520 --> 0:01:22.080 For more on the tech side, we are joined by 0:01:22.080 --> 0:01:25.000 man Deep saying Bloomberg Intelligence in your tech industry analyst, 0:01:25.160 --> 0:01:27.479 and we first ask man Deep why Meta needs this 0:01:27.560 --> 0:01:29.200 deal with Constellation. 0:01:29.319 --> 0:01:31.959 If they're raising their capex, which they did it in 0:01:32.040 --> 0:01:36.000 their last earnings, that capex is going towards you know, 0:01:36.040 --> 0:01:40.119 getting more AI chips, and you know, if you are 0:01:40.160 --> 0:01:43.240 putting more AI chips, you need more power. So clearly 0:01:43.880 --> 0:01:47.960 that is where the shortage is right now. And look, 0:01:48.080 --> 0:01:52.440 if this is an AI supercycle that we all believe 0:01:52.600 --> 0:01:55.400 it is going to be the case, and I think 0:01:55.520 --> 0:01:58.560 you will see a power supercycle as well. And in 0:01:58.600 --> 0:02:02.080 this case, all the higher scalers will be looking to 0:02:02.160 --> 0:02:05.760 procure power for their data centers. I mean, Meta serves 0:02:05.760 --> 0:02:10.959 over three billion monthly active users across their family of apps. Now, granted, 0:02:11.440 --> 0:02:15.160 those users right now are using more CPU compute, but 0:02:15.200 --> 0:02:19.600 if you're rolling out AI tools and LLM searches, you 0:02:19.720 --> 0:02:22.320 need more power for the AI chips, and I think 0:02:22.360 --> 0:02:23.680 that's the intent here. 0:02:24.200 --> 0:02:25.520 And Mandy, let's be honest here. 0:02:25.560 --> 0:02:27.920 I mean, all you tech guys, you Silicon Valley guys, 0:02:27.919 --> 0:02:30.280 you always think you're the smartest guys in the room. 0:02:30.680 --> 0:02:31.440 But let's be honest. 0:02:31.480 --> 0:02:33.840 You guys don't know anything about the oil and gas 0:02:33.880 --> 0:02:36.960 business and the nuclear business. Why is Meta And I'm 0:02:37.000 --> 0:02:39.079 guessing some others are going to kind of get more 0:02:39.160 --> 0:02:43.160 deeply and strategically involved in the energy side of their business. 0:02:43.200 --> 0:02:44.040 Is this a trend here? 0:02:44.680 --> 0:02:47.760 Just look at how far they have come in terms 0:02:47.840 --> 0:02:51.400 of you know, infrastructure, like a company like Google. Not 0:02:51.520 --> 0:02:55.320 only are they designing their own data centers and you know, 0:02:56.240 --> 0:03:00.360 creating their own chips, and now they are you know, 0:03:00.480 --> 0:03:04.000 procuring power to the extent that they want to make 0:03:04.040 --> 0:03:08.800 sure that these AI chips, which can have volatile power needs, 0:03:09.240 --> 0:03:12.960 are most optimized when it comes to the efficiency of 0:03:13.000 --> 0:03:18.200 their infrastructure. And that's why these hyperscalar companies really have 0:03:18.360 --> 0:03:21.639 got so many different aspects to their mode. So it's 0:03:21.680 --> 0:03:25.320 not just about the search algorithm or in the case 0:03:25.360 --> 0:03:28.360 of Meta, you know, their social media knowledge graph. It 0:03:28.480 --> 0:03:31.760 is about the entirety of how they run their infrastructure, 0:03:31.800 --> 0:03:34.280 and that is what is a long term mode, because 0:03:34.320 --> 0:03:38.200 nobody else can operate at the scale at at which 0:03:38.440 --> 0:03:40.440 these hyperscalers are operating right now. 0:03:40.640 --> 0:03:42.440 This is a fun fact in the article Bible Rate 0:03:42.560 --> 0:03:44.880 from Bloomberg. So Meta first of all, has a global 0:03:44.960 --> 0:03:45.520 energy head. 0:03:45.920 --> 0:03:49.160 They have a global energy head. Okay, all right, so 0:03:49.200 --> 0:03:49.480 they do. 0:03:49.560 --> 0:03:51.600 They're really kind of ramping that out, and they were 0:03:51.640 --> 0:03:54.360 looking at proposals. They announced in December they were looking 0:03:54.400 --> 0:03:56.680 at proposals for as much as coore gigawatts of new 0:03:56.800 --> 0:04:01.520 US reactors, and it received fifty from a range of companies, 0:04:01.840 --> 0:04:07.480 including Constellation. To that point, I'm also wondering Mande the 0:04:07.520 --> 0:04:11.600 significance of when they're building data centers and hyperscalers for lllms, 0:04:11.600 --> 0:04:14.280 a large language model and that training versus when they 0:04:14.320 --> 0:04:17.160 have to build stuff for inference, which could be smaller 0:04:17.200 --> 0:04:20.000 and more co located, so closer to the cities, closer 0:04:20.000 --> 0:04:22.080 to our Paul and I have our phone. Does that 0:04:22.080 --> 0:04:24.800 tend to look different than in terms of their power needs. 0:04:25.200 --> 0:04:28.800 Absolutely, And I think so far the market was concentrated 0:04:28.839 --> 0:04:33.320 towards training. Every year you would have a ten times 0:04:33.440 --> 0:04:37.640 larger model, which was more intelligent and it could do 0:04:37.760 --> 0:04:40.320 more in terms of you know, answering your queries. But 0:04:40.760 --> 0:04:44.520 with inferencing your right. I mean, the traffic patterns may 0:04:44.600 --> 0:04:48.520 vary depending on the population, and so if you're serving 0:04:48.520 --> 0:04:52.160 traffic in New York, it's very different from serving traffic 0:04:52.200 --> 0:04:55.200 somewhere else that may not have the same concentration. And 0:04:56.000 --> 0:04:59.280 with that, I think the challenge these companies have had 0:04:59.360 --> 0:05:03.160 is the transfer lines can be upgraded. I mean you need, 0:05:03.880 --> 0:05:07.640 you know, a pretty lengthy review process and the whole 0:05:07.680 --> 0:05:11.080 thing may take years. So right now they are trying 0:05:11.120 --> 0:05:15.960 to procure power wherever they can to offset the increased consumption, 0:05:16.160 --> 0:05:18.760 and some of it may come at the expense of 0:05:18.960 --> 0:05:24.599 power usage for some other purpose. Then you know why 0:05:24.680 --> 0:05:28.919 data center is being prioritized here, and that is what 0:05:29.040 --> 0:05:32.920 will be interesting because with inferencing, the power needs can 0:05:32.960 --> 0:05:35.160 be variable. I mean, one trend we have seen is 0:05:35.480 --> 0:05:39.800 with reasoning, you need more compute, so you know, the 0:05:39.880 --> 0:05:42.440 model is thinking a lot more at the time you 0:05:42.480 --> 0:05:45.440 are putting the prompt in, as opposed to training, where 0:05:45.640 --> 0:05:48.640 all of the training is happening in background over a 0:05:48.720 --> 0:05:51.760 period of a few weeks. So reasoning is per query 0:05:52.320 --> 0:05:55.560 and depending on how complex your query is the model 0:05:55.640 --> 0:05:57.520 is doing more work and that's why it may need 0:05:57.560 --> 0:05:58.080 more power. 0:05:58.600 --> 0:06:01.760 Another data point from this new Bloomberg News article, Meta 0:06:01.839 --> 0:06:05.200 is contracting for more power after the company's total electricity 0:06:05.200 --> 0:06:08.160 consumption nearly tripled from twenty. 0:06:07.960 --> 0:06:10.440 Nineteen to twenty twenty three. So yeah, I guess they 0:06:11.279 --> 0:06:13.240 need some more energy man deposition in the. 0:06:13.160 --> 0:06:16.679 CAPEX numbers for Meta and for these other tech companies, 0:06:16.760 --> 0:06:18.880 or they need to take those CAPEX numbers up even 0:06:18.920 --> 0:06:21.120 more if they're going to get deeper into the energy space. 0:06:21.720 --> 0:06:25.320 I mean, all signs are the CAPEX numbers may continue 0:06:25.360 --> 0:06:29.600 to go up, but right now, the biggest component of 0:06:29.640 --> 0:06:34.560 the CAPEX is still the spend on the GPU chips. Obviously, 0:06:34.600 --> 0:06:38.080 the power needs will take some portion of the CAPEX, 0:06:38.080 --> 0:06:40.680 but it's still not as big as the chips. And 0:06:40.760 --> 0:06:42.880 think of it this way. If you're getting you know, 0:06:43.400 --> 0:06:47.160 twenty thousand Nvidia chips, the cost of keeping them idle 0:06:47.279 --> 0:06:49.599 or not being able to utilize them one hundred percent 0:06:49.720 --> 0:06:52.840 is way higher than anything you are spending in terms of, 0:06:53.240 --> 0:06:56.480 you know, the energy deal that they had. So clearly 0:06:56.600 --> 0:06:59.760 they are focusing on utilizing the chips that they have already, 0:07:00.360 --> 0:07:04.080 and that's why they are proactive with you know, these 0:07:04.120 --> 0:07:04.839 power deals. 0:07:05.400 --> 0:07:07.839 Our thanks to Man Deep Seeing Bloomberg Intelligence senior tech 0:07:07.839 --> 0:07:08.640 industry analyst. 0:07:09.080 --> 0:07:11.720 We recently focused on a Bloomberg Big Take story entitled 0:07:11.760 --> 0:07:15.080 A fatal Tesla crash shows the limits of full self Driving. 0:07:15.200 --> 0:07:17.440 You can find it on Bloomberg dot Com and the Terminal. 0:07:17.560 --> 0:07:20.320 The story looks at how federal regulators are investigating whether 0:07:20.400 --> 0:07:24.280 Tesla's robotaxi system is dangerous even with the human behind 0:07:24.280 --> 0:07:24.640 the wheel. 0:07:24.680 --> 0:07:26.880 From where we were joined by Craig Trudell, Bloomberg Global 0:07:26.920 --> 0:07:29.400 Autos Editor. We first asked Craig to walk us through 0:07:29.440 --> 0:07:32.360 the details of what the issues are with completely autonomous vehicles. 0:07:32.800 --> 0:07:35.040 I guess maybe the thing to start with is the 0:07:35.120 --> 0:07:37.160 Teslas that you can buy today that are on the 0:07:37.240 --> 0:07:40.800 road now are not that right. They are not autonomous. 0:07:41.080 --> 0:07:45.560 You can pay extra for a system called full self driving, 0:07:45.600 --> 0:07:49.440 and yet it's a miss snowmer. It's a system that 0:07:49.480 --> 0:07:52.720 you have to pay attention to at all times. You know, 0:07:53.040 --> 0:07:55.920 if you get into a crash, it is it is 0:07:56.000 --> 0:07:59.280 on you. And we've seen that, you know, play out 0:08:00.080 --> 0:08:02.560 when Tesla customers have you know, tried to come after 0:08:02.600 --> 0:08:05.280 the company. The company says, look, you know, we we 0:08:06.000 --> 0:08:08.880 warned you. We told you that you know, you're you're 0:08:08.960 --> 0:08:13.040 responsible for driving while using this system. The company is 0:08:13.080 --> 0:08:15.160 trying to make this leap, that's been trying to make 0:08:15.160 --> 0:08:17.880 the sleep for years, to eventually get to a point 0:08:17.880 --> 0:08:21.040 where you do not have to to supervise and you know, 0:08:21.520 --> 0:08:24.120 even to take it further than that, you know, take 0:08:24.120 --> 0:08:27.280 the human out from behind the wheel altogether. And we 0:08:27.360 --> 0:08:30.240 hear Musk, you know, talk about that quite a bit 0:08:30.360 --> 0:08:33.479 lately because it's something that they're actually trying to commercialize, 0:08:33.800 --> 0:08:36.120 even just in the next matter of you know, next 0:08:36.120 --> 0:08:40.000 week or so. There's a lot of questions about how 0:08:40.080 --> 0:08:43.080 exactly they intend to do that, whether they can do it, 0:08:43.240 --> 0:08:46.840 especially after he's predicted, you know, year after year that 0:08:46.840 --> 0:08:49.199 they're on the cusp of doing it. And part of 0:08:49.240 --> 0:08:52.920 the reason there are doubts is is because of the hardware. 0:08:52.960 --> 0:08:55.520 And I think that's kind of an important aspect of 0:08:55.520 --> 0:08:59.720 today's story is is this particular crash involves, you know, 0:09:00.320 --> 0:09:03.120 an incident where a driver was using full self driving 0:09:03.320 --> 0:09:07.559 driving into the sun, and that appeared to play a 0:09:07.600 --> 0:09:12.120 part in the crash, which resulted in a fatality, and 0:09:12.200 --> 0:09:15.719 it led to a federal investigation that is ongoing. 0:09:18.360 --> 0:09:21.520 I mean, this is all very much feels as part 0:09:21.559 --> 0:09:23.600 of the growing pains as we kind of understand this 0:09:23.679 --> 0:09:27.320 technology and how it works itself out. So what are 0:09:27.360 --> 0:09:29.880 the steps that Tesla's taking and that the regulators are 0:09:29.880 --> 0:09:30.680 taking at this time. 0:09:32.280 --> 0:09:35.240 Yeah, so you know, we should acknowledge that this incident 0:09:35.320 --> 0:09:39.240 happened in November twenty twenty three. You know, Tesla has 0:09:39.280 --> 0:09:44.000 has changed. They've they've made upgrades both to hardware and software. 0:09:44.600 --> 0:09:48.240 You know, hardware for certain customers, they should say, but 0:09:48.400 --> 0:09:53.359 you know, in terms of their approach to the sensor 0:09:53.400 --> 0:09:57.080 system for their vehicles, Elon Musk has been you know, 0:09:57.120 --> 0:09:59.880 really sort of out on a limb and having this 0:10:00.080 --> 0:10:04.040 you that all you need is cameras and company companies 0:10:04.080 --> 0:10:06.440 that are also in this space. I think the one 0:10:06.559 --> 0:10:10.560 people recognize the most is Weimo, the Google company, and 0:10:11.160 --> 0:10:14.040 they use a mix of camera, radar and wide R 0:10:14.240 --> 0:10:18.000 and their sensor set is much more expensive. It's more extensive. 0:10:18.240 --> 0:10:20.200 You know, these sensors are placed all over the vehicle. 0:10:21.640 --> 0:10:24.880 But you know, the sort of bet here on the 0:10:24.880 --> 0:10:27.240 part of Weimo is that is worth it. It will 0:10:27.280 --> 0:10:30.160 mean this system is safer. What Musk has tried to 0:10:30.200 --> 0:10:33.599 do is go with the cheaper route, go with the 0:10:34.640 --> 0:10:36.600 you know system that he can afford to put in 0:10:36.640 --> 0:10:39.600 every Tesla, and make this bet that you know, he 0:10:39.640 --> 0:10:44.000 can develop his way to autonomy faster by sort of 0:10:44.080 --> 0:10:47.680 leveraging the broader Tesla fleet, even if it means putting 0:10:47.800 --> 0:10:50.559 you know, cars on the road that you know, draw 0:10:50.600 --> 0:10:53.640 scrutiny from federal regulators as to whether or not that 0:10:53.760 --> 0:10:58.240 this is you know, unreasonably unsafe. 0:10:59.440 --> 0:11:03.600 So, Craig, I think Elon Musk is back at the company. 0:11:04.600 --> 0:11:05.280 What does that mean? 0:11:05.440 --> 0:11:08.080 I mean, are you hearing anything like, Okay, now we 0:11:08.120 --> 0:11:09.080 can get back on track. 0:11:09.160 --> 0:11:11.880 Now we can really move forward, maybe at you know, 0:11:12.160 --> 0:11:13.600 higher velocity. What's that mean? 0:11:15.280 --> 0:11:17.560 Yeah? I'm you know, I think it's difficult to tell 0:11:17.559 --> 0:11:20.839 at this point because he's kind of coming back to 0:11:21.000 --> 0:11:24.920 business means coming back to so many businesses, right, and 0:11:25.040 --> 0:11:28.200 so on a day to day yeah, we're you know, 0:11:28.360 --> 0:11:32.160 we're seeing him travel to to his various companies, you know, 0:11:32.360 --> 0:11:35.760 devoting some time and attention to to them. But it's 0:11:35.840 --> 0:11:38.560 not as though he's sort of one hundred percent, uh, 0:11:38.840 --> 0:11:42.440 you know, focusing in on Tesla and neglecting all of 0:11:42.480 --> 0:11:46.079 his other businesses. We see him, you know, regularly engaging 0:11:46.120 --> 0:11:50.200 with you know, users on x about you know, troubleshooting 0:11:50.520 --> 0:11:53.400 problems that they have with that service. You know, I 0:11:53.559 --> 0:11:58.200 would say he is you know, more actively engaging there 0:11:58.280 --> 0:12:02.880 on on teslas and definitely is trying to sort of 0:12:02.880 --> 0:12:05.600 send this signal that you know, okay, it's it's time 0:12:05.640 --> 0:12:08.400 to get back to business here. But whether or not 0:12:08.520 --> 0:12:11.040 that's you know, resulting in sort of tangible changes at 0:12:11.040 --> 0:12:12.559 the company, I think remains. 0:12:12.160 --> 0:12:12.600 To be seen. 0:12:13.120 --> 0:12:16.200 What's the rush for autonomous driving? 0:12:18.240 --> 0:12:22.280 You know, I think forty thousand people die on US 0:12:22.360 --> 0:12:24.800 roads every year, right, and so the rush of course 0:12:24.880 --> 0:12:27.559 is to bend that, you know, to to change that. 0:12:27.720 --> 0:12:30.360 And I think one of the challenges that you have 0:12:30.480 --> 0:12:33.400 if you're a company in this space is we've now 0:12:33.559 --> 0:12:35.760 you know, seen a lot of companies pursue this for 0:12:35.880 --> 0:12:38.680 you know, roughly a decade. That number has not budged. 0:12:38.760 --> 0:12:41.200 So you know, we still have a long way to 0:12:41.280 --> 0:12:46.520 go to where this capability is you know, making putting 0:12:46.520 --> 0:12:47.720 a dent in those figures. 0:12:48.240 --> 0:12:48.480 All right. 0:12:48.480 --> 0:12:51.480 Thanks to Craig Drudell, Bloomberg Global Autos editor coming up 0:12:51.520 --> 0:12:54.200 a conversation with the CEO of Tay Technologies and the 0:12:54.200 --> 0:12:56.800 company's approach to commercial fusion power. 0:12:56.920 --> 0:12:59.560 You're listening to Bloomberg Intelligence on Bloomberg Radio, but riding 0:12:59.640 --> 0:13:01.880 in depth research and data on two thousand companies in 0:13:01.920 --> 0:13:04.800 one hundred and thirty industries. You can access Bloomberg Intelligence 0:13:04.880 --> 0:13:06.120 via b I go on the terminal. 0:13:06.160 --> 0:13:08.840 I'm Paul Sweeney, an amalk Steel, and this is Bloomberg. 0:13:13.640 --> 0:13:17.360 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:13:17.440 --> 0:13:20.480 weekdays at ten am Eastern on Apple, Cocklay and Android 0:13:20.520 --> 0:13:23.840 Auto with the Bloomberg Business App. Listen on demand wherever 0:13:23.880 --> 0:13:26.959 you get your podcasts, or watch us live on YouTube. 0:13:27.800 --> 0:13:29.920 We move next to the telecommunication space. 0:13:30.280 --> 0:13:33.360 The cable provider Comcast recently opened its newest theme park 0:13:33.400 --> 0:13:37.000 in Florida, called Universal Epic Universe. The goal is to 0:13:37.040 --> 0:13:39.360 keep guests staying longer and spending more in the competitive 0:13:39.480 --> 0:13:40.600 Orlando market. 0:13:40.440 --> 0:13:43.600 And according to research from Bloomberg Intelligence, Comcast theme parks 0:13:43.600 --> 0:13:46.760 are poised to become of its most valuable assets, with 0:13:46.880 --> 0:13:49.880 revenue and IBADASA to jump around forty percent from twenty 0:13:49.920 --> 0:13:51.600 twenty four to twenty twenty six. 0:13:52.000 --> 0:13:54.560 For more on what this means, guest host John Tucker 0:13:54.559 --> 0:13:57.160 and I were joined by Githa Rong Andathan Bloomberg, intelligence 0:13:57.280 --> 0:14:00.360 US media analyst, who first asked Githa to talk about 0:14:00.400 --> 0:14:01.439 Universal's new park. 0:14:01.960 --> 0:14:05.160 May twenty second was the grand opening of Epic Universe 0:14:05.280 --> 0:14:09.000 in Florida. This is the first big park that has 0:14:09.040 --> 0:14:12.280 opened in Florida in twenty five years, and it was 0:14:12.520 --> 0:14:15.400 the biggest investment by Comcast in a theme park. They 0:14:15.440 --> 0:14:18.520 spent over seven billion dollars on just this park. So, 0:14:18.640 --> 0:14:22.080 as you said, huge investments by Comcast in their theme 0:14:22.120 --> 0:14:25.040 park business. This is really an area of growth for them, 0:14:25.720 --> 0:14:29.120 especially now that their broadband business is struggling actually quite 0:14:29.160 --> 0:14:29.400 a bit. 0:14:29.840 --> 0:14:31.760 So what is this likely to do for their earnings? 0:14:33.000 --> 0:14:35.360 So, you know, you kind of think about Comcast and 0:14:35.360 --> 0:14:39.760 you think about Disney. For Comcast, so let me start 0:14:39.800 --> 0:14:42.640 with Disney. So for Disney, parks is actually sixty percent 0:14:42.640 --> 0:14:46.560 of their profits. For Comcasts, it's really maybe less than 0:14:46.600 --> 0:14:50.320 six percent. So again for Comcasts, you know, eighty percent 0:14:50.400 --> 0:14:52.840 of their of their money, of their profits still comes 0:14:52.840 --> 0:14:55.160 from the cable business. But really, as we kind of 0:14:55.200 --> 0:14:58.360 think about what their strategy is here and you look 0:14:58.360 --> 0:15:01.000 at all of their portfolio of assets, I mean, we're 0:15:01.080 --> 0:15:04.320 really excited about the theme park business because growth is great, 0:15:04.520 --> 0:15:07.840 returns on investment are great, and this is really a 0:15:07.840 --> 0:15:11.160 fantastic way for comcasts, just like what Disney has done 0:15:11.280 --> 0:15:14.360 with kind of deepening all of those relationships with those 0:15:14.440 --> 0:15:16.680 universal characters. You think of all the ip that they 0:15:16.680 --> 0:15:19.960 have with Minions, with Jurassic Park, now with Wicked, you know, 0:15:19.960 --> 0:15:22.120 and some of the other franchises that they have with 0:15:22.160 --> 0:15:25.280 Harry Potter. You know, this is just such a great 0:15:25.320 --> 0:15:27.520 way to build on that fan engagement. 0:15:28.280 --> 0:15:30.080 How much can the theme park business, how much do 0:15:30.080 --> 0:15:32.560 you think that could be worth for comcasts? Because again 0:15:32.600 --> 0:15:36.200 you mentioned that some of their core businesses, like the 0:15:36.280 --> 0:15:39.200 video business, the tridtional cable business, even the broadband business, 0:15:39.200 --> 0:15:42.280 they're facing some headwinds here. Theme parks are going to 0:15:42.280 --> 0:15:45.440 become more and more important important for investors I think 0:15:45.480 --> 0:15:47.240 going forward. So what do you think the valuation could. 0:15:47.040 --> 0:15:50.600 Be absolutely, Paul, So that's a really really important point 0:15:50.600 --> 0:15:52.240 that you bring up. So you think of the cable business, 0:15:52.240 --> 0:15:55.680 which is really their mainstay. Cable valuations have actually dropped 0:15:55.760 --> 0:15:58.400 pretty significantly over the past few years. We've gone from 0:15:58.440 --> 0:16:01.320 about ten x to around six and a half to 0:16:01.400 --> 0:16:05.320 seven times EBITDA multiple you think about the park business though, 0:16:05.360 --> 0:16:07.720 it's actually quite the opposite. You know, most of the 0:16:08.120 --> 0:16:10.400 some of the pure play pure play park operators are 0:16:10.440 --> 0:16:13.480 treating it about you know, twelve to fourteen times IBADA. 0:16:13.600 --> 0:16:16.480 So again this is an area of growth. You know, 0:16:16.600 --> 0:16:20.760 experiential businesses are seeing this huge upswing. And so we 0:16:20.840 --> 0:16:24.120 think that just based on about five billion in ibitdah, 0:16:24.160 --> 0:16:26.560 which we think Comcasts can get to in a few 0:16:26.640 --> 0:16:29.640 years time, that business could be easily worth you know, 0:16:29.720 --> 0:16:32.480 forty five fifty billion dollars or upwards of that. 0:16:33.600 --> 0:16:37.240 So my takeaway is there are Disney wanna be at 0:16:37.240 --> 0:16:39.160 this point. I got to wonder if like they're going 0:16:39.200 --> 0:16:41.160 to start poaching Disney executives too. 0:16:42.880 --> 0:16:45.720 That's very possible. I mean, right now, there's still a 0:16:45.760 --> 0:16:48.520 pretty small player John when you compare them to Disney. 0:16:48.520 --> 0:16:50.400 So you just kind of think about Disney in terms 0:16:50.440 --> 0:16:53.000 of theme park visitations. We are looking at about one 0:16:53.080 --> 0:16:56.840 hundred and fifty million global visitors to Disney parks every year. 0:16:57.200 --> 0:17:00.680 Compare that to Universal or Comcast sparks it's about sixty million, 0:17:00.960 --> 0:17:03.960 So still much smaller than Disney. But what they're doing 0:17:03.960 --> 0:17:05.840 now is a lot of expansion. So we had this 0:17:05.920 --> 0:17:09.040 new park, Epic Universe, which opened just last week. They're 0:17:09.040 --> 0:17:11.920 actually opening a new park in London in a few 0:17:11.960 --> 0:17:15.520 years time. They're expanding with new properties in Las Vegas 0:17:15.600 --> 0:17:18.520 in Texas. So basically, when you put all of that together, 0:17:18.640 --> 0:17:21.800 we're thinking that they are basically going to expand visitation 0:17:21.840 --> 0:17:24.560 from about sixty million to by fifty percent to about 0:17:24.720 --> 0:17:27.560 you know, eighty to ninety million. So they're really kind 0:17:27.560 --> 0:17:32.040 of closing in on that gap with Disney stepping back. 0:17:32.240 --> 0:17:35.560 The Comcast stock story, I mean, how do people view 0:17:35.600 --> 0:17:39.320 it here, because again, cable TV business just in secular decline. 0:17:39.400 --> 0:17:42.440 The broadband business, which had saved it for a good 0:17:42.480 --> 0:17:45.639 decade or so, that seems to be stalling because a 0:17:45.680 --> 0:17:48.160 competition and the cable networks, I don't know what they're 0:17:48.200 --> 0:17:51.320 doing with them. What do investors think about Comcast. 0:17:52.400 --> 0:17:55.120 Yeah, it's really a tough story right now, Paul, as 0:17:55.160 --> 0:17:58.720 you rightly point out, I mean, broadband is again majority 0:17:58.760 --> 0:18:01.560 of this business is really tough to how broadband does. 0:18:01.680 --> 0:18:05.000 So you know, any stock movements are directly correlated to 0:18:05.520 --> 0:18:07.439 the health of the broadband business, which actually is in 0:18:07.480 --> 0:18:10.119 a very very tough spot right now. So this is 0:18:10.119 --> 0:18:12.359 a business that was gaining about one to two million 0:18:12.400 --> 0:18:15.359 subscribers every year. They are still one of the largest 0:18:15.359 --> 0:18:18.560 broadband providers at about thirty million subscribers in the US, 0:18:18.880 --> 0:18:21.199 but they are going to lose close to about a 0:18:21.200 --> 0:18:23.760 million subscribers this year. As you know, the telecoms kind 0:18:23.760 --> 0:18:27.919 of really intensified competition. So it's really a tough story 0:18:28.000 --> 0:18:29.800 right now. The one thing that we are kind of 0:18:29.840 --> 0:18:32.199 looking at in terms of a positive catalyst is the 0:18:32.240 --> 0:18:35.399 spin off of the cable networks. So this is something 0:18:35.400 --> 0:18:38.520 that they announced last year. It probably happens a little 0:18:38.520 --> 0:18:41.600 bit later this year. They're calling it Versut. What's going 0:18:41.680 --> 0:18:43.399 to be interesting is not just the spin but what 0:18:43.480 --> 0:18:46.159 happens after the spin. So will Comcast really look to 0:18:46.280 --> 0:18:51.120 become kind of this consolidator of media assets and that would, 0:18:51.160 --> 0:18:52.879 I think be a little bit of an interesting story 0:18:52.880 --> 0:18:56.760 in media. But unless they can really revive growth in 0:18:56.800 --> 0:18:59.040 their broadband business, I think it's going to be a 0:18:59.080 --> 0:18:59.960 little bit of a tough sell. 0:19:00.280 --> 0:19:04.280 What's Disney's response to Universal to Comcast? 0:19:05.040 --> 0:19:08.800 So Disney a huge response in terms of what they 0:19:08.880 --> 0:19:11.360 have planned over the next few years. John, So they 0:19:11.359 --> 0:19:14.760 are really kind of doubling down on their parks business. Again, 0:19:14.800 --> 0:19:17.200 this is really the bread and butter for Disney. Sixty 0:19:17.240 --> 0:19:20.119 percent of their profit comes from the parks business. So 0:19:20.160 --> 0:19:24.520 they have about a sixty billion investment planned for parks 0:19:24.880 --> 0:19:27.399 over the next you know, seven to eight years. And 0:19:27.440 --> 0:19:30.120 it's not just the theme park experience, it's you know, 0:19:30.359 --> 0:19:32.600 they're having parks on water, what they call parks on water, 0:19:32.600 --> 0:19:36.280 which are the cruises, and that's a huge investment for them. 0:19:36.720 --> 0:19:40.040 You know, we think that that business basically doubles triples 0:19:40.080 --> 0:19:42.960 revenue as they keep on adding these new cruise ships, 0:19:44.280 --> 0:19:47.240 you know, to their fleet. So are they are doubling 0:19:47.280 --> 0:19:48.440 down on parks as well? 0:19:48.880 --> 0:19:49.119 All right? 0:19:49.119 --> 0:19:52.240 Thanks together, mang An Athen Bloomberg, Intelligence analyst on US Media. 0:19:52.520 --> 0:19:54.840 We've moved next to the energy space this week. 0:19:54.880 --> 0:19:57.719 We looked at a company called Tay Technologies. Tay develops 0:19:57.720 --> 0:20:00.640 commercial fusion power with the cleanest environment profile. 0:20:00.920 --> 0:20:03.639 The company also recently raised more than one hundred and 0:20:03.640 --> 0:20:06.320 fifty million dollars in its latest funding round, exceeding the 0:20:06.320 --> 0:20:08.000 company's initial target for the round. 0:20:08.160 --> 0:20:10.160 For more and what the company is doing, host Paul 0:20:10.320 --> 0:20:13.840 John Tucker and I were joined by Michael Binderbauer, CEO 0:20:13.960 --> 0:20:17.520 of Tay technologies. We began the conversation by asking Michael 0:20:17.560 --> 0:20:19.959 to break down exactly what fusion power is. 0:20:20.520 --> 0:20:23.160 So it's basically what nature does, based right, It keeps 0:20:23.240 --> 0:20:25.600 us our life and energy here on the planet from 0:20:25.640 --> 0:20:28.679 the Sun son any star you look up suffusion reactor 0:20:28.720 --> 0:20:31.119 basically right. So what we're trying to do is to 0:20:31.160 --> 0:20:36.080 replicate that terristrially to make essentially copious power, carbon free, 0:20:36.280 --> 0:20:39.520 clean and sustainable for the future of humanity. 0:20:40.160 --> 0:20:44.320 Where are you in the process at tay So. 0:20:44.200 --> 0:20:47.240 We're very close. We're just one machine a way to 0:20:47.240 --> 0:20:49.439 get to a point where we actually harvest more energy 0:20:49.480 --> 0:20:52.040