WEBVTT - EU Greenlights Microsoft/Activision Deal 0:00:01.400 --> 0:00:06.680 From Mahart where Innovation, Money and Power colle in Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.039 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:24.760 --> 0:00:26.920 I'm Caroline Heinde at Bluemog's world head quarters in New 0:00:27.000 --> 0:00:29.280 York and Imed Lovelow in San Francisco. 0:00:29.360 --> 0:00:31.280 This is Blueberg Technology coming up. 0:00:31.360 --> 0:00:34.200 The EU gives Microsoft the green light for at sixty 0:00:34.280 --> 0:00:37.440 nine billion dollar takeover of Activision Blizzard. We'll discuss what 0:00:37.479 --> 0:00:40.600 this actually means for the gaming industry's biggest ever deal. 0:00:41.600 --> 0:00:44.680 And we'll talk Twitter, as Linda Yacarino prepares to take 0:00:44.680 --> 0:00:47.159 the helm at the social media company, how will her 0:00:47.240 --> 0:00:50.720 experience help nuwer advertisers back to the platform. 0:00:50.840 --> 0:00:53.720 Plus we'll talk all things artificial intelligence. We sit down 0:00:53.720 --> 0:00:56.200 with the CEO C three AI as a result Beat 0:00:56.440 --> 0:00:58.800 and we get the startup AI perspective from the venture 0:00:58.840 --> 0:01:02.320 firm in Site Park. All that so much more coming up. 0:01:02.320 --> 0:01:04.000 Before we go into the startups, Let's go into the 0:01:04.000 --> 0:01:07.600 big caps. Let's go into what's happening in the public markets. Ed, interestingly, 0:01:07.680 --> 0:01:09.720 I'm stealing your funder. Let's take it back to what's 0:01:09.720 --> 0:01:12.680 actually more broadly my focus, which is the Nasdaq, which 0:01:12.680 --> 0:01:15.280 is actually up about half a percentage point. It's outperforming 0:01:15.440 --> 0:01:17.840 the rest of the industries. On the day, we're outperforming 0:01:17.840 --> 0:01:20.040 the rest of the benchmarks, even though we're basically a 0:01:20.040 --> 0:01:22.440 little bit cautious. Volumes are lower, we're worried about a 0:01:22.480 --> 0:01:24.080 course the debt ceiling, we're worried about some of that 0:01:24.120 --> 0:01:26.600 New York data that came in in terms of manufacturing 0:01:26.640 --> 0:01:29.280 look lackluster, and basically we're a little bit more cautious 0:01:29.319 --> 0:01:31.240 on our outlook. But we are seeing big tech being 0:01:31.280 --> 0:01:34.440 brought just tentatively on those thinner volumes up five ten percent. 0:01:34.440 --> 0:01:36.640 The tenure yield push is higher. As we hear from 0:01:36.640 --> 0:01:38.720 some Fed speakers where afar our boss think being one 0:01:38.720 --> 0:01:40.240 of them who sits down with might make here a 0:01:40.280 --> 0:01:42.640 little bit later. But he's talking about look no, and 0:01:42.760 --> 0:01:44.960 pushing him back against your viewpoint that we're going to 0:01:45.000 --> 0:01:47.720 be cutting rates here in the US anytime soon. Interesting 0:01:47.760 --> 0:01:50.720 moves over in Turkey, could we see political upheaval. In fact, 0:01:50.720 --> 0:01:52.960 we have a down day overall for assets over there, 0:01:52.960 --> 0:01:55.640 and the dollar strengthens versus the Turkish lira. Moving on, 0:01:56.000 --> 0:01:57.880 let's look at what's happening in terms of crypto in 0:01:57.960 --> 0:02:00.840 terms of Bitcoin, and actually as though it actually weekends 0:02:00.880 --> 0:02:02.360 on the day, just a little bit ed. We are 0:02:02.400 --> 0:02:04.120 seeing Bitcoin just getting a bit of a bid, but 0:02:04.120 --> 0:02:06.120 we're still only at twenty seven thousand, so still not 0:02:06.160 --> 0:02:08.880 managing to push through that thirty thousand dollars level, but 0:02:09.160 --> 0:02:11.160 get into where I almost took of here a little 0:02:11.160 --> 0:02:11.640 moment ago. 0:02:11.919 --> 0:02:14.440 Yeah, we woke up to a quiet Monday right carry 0:02:14.480 --> 0:02:16.520 this morning, worried about news, but we have had some 0:02:16.639 --> 0:02:19.320 that's moving markets. Metha now up two point four percent, 0:02:19.560 --> 0:02:22.079 lou Kappaso upgrading that stock from a hold to a buy. 0:02:22.320 --> 0:02:24.360 We'll bring you those details later in the program, along 0:02:24.400 --> 0:02:27.840 with C three AIP eighteen percent early release of results, 0:02:27.919 --> 0:02:31.240 upgrading modestly it's full year forecast for sales. We're going 0:02:31.280 --> 0:02:33.760 to speak to the CEO about what's really happening all 0:02:33.760 --> 0:02:37.320 the investor interests around AI related names. Tesla actually now 0:02:37.400 --> 0:02:39.680 flat melon. Musk has been in France where he met 0:02:39.720 --> 0:02:41.919 with President mac quhan. But there was some feel good 0:02:41.919 --> 0:02:44.000 in that sock. Of course, when we got details of 0:02:44.040 --> 0:02:47.000 a new Twitter CEO on Friday, the idea being that 0:02:47.040 --> 0:02:49.800 Elon Musk now will be more focused on Tesla less 0:02:49.800 --> 0:02:52.360 distracted at Twitter, but we're giving back some of those games, 0:02:52.360 --> 0:02:55.280 off by around a tenth percent, basically flat. The big 0:02:55.320 --> 0:02:58.480 story this Monday is that the European Union, through the 0:02:58.480 --> 0:03:03.840 European Commission, has proved Microsoft's deal to buy Activision Blizzard 0:03:03.919 --> 0:03:05.799 for sixty nine billion dollars. We're going to get into 0:03:05.800 --> 0:03:09.480 the details over the analysis and reasoning what it means 0:03:09.480 --> 0:03:10.800 for the cloud gaming market. 0:03:10.800 --> 0:03:12.320 In particular, we see the share reaction. 0:03:12.520 --> 0:03:14.800 It was modest at first, rop a percentage point, highest 0:03:14.840 --> 0:03:17.800 level in three weeks on Activision, more modest, up just 0:03:17.800 --> 0:03:22.760 two tens percent on Microsoft separately, completely separately, Bloomberg reporting 0:03:22.800 --> 0:03:26.400 that Microsoft's cloud unit, as You're is the subject of 0:03:26.440 --> 0:03:29.400 scrutiny from a U antitrust regulators, according to sources. We'll 0:03:29.400 --> 0:03:31.720 get those details later in the program. A lot now 0:03:31.760 --> 0:03:32.080 going on. 0:03:32.720 --> 0:03:35.360 They've been busy, haven't they, All this focus on competition 0:03:35.440 --> 0:03:36.600 and pushing back against it. 0:03:36.800 --> 0:03:37.760 Let's talk about it all. 0:03:37.800 --> 0:03:40.800 We've got our senior litigation analyst of Bloomberg Intelligence, Jennifer Rye. 0:03:40.840 --> 0:03:43.680 We've also got Anna London, our legal reporter Kavin Gummel. 0:03:44.080 --> 0:03:47.640 Catherine starting with you wasn't a surprise to see the 0:03:47.680 --> 0:03:50.400 EU sort of take a different stance from the UK. 0:03:52.280 --> 0:03:54.840 Hi, there m nor so, this wasn't a surprise decision. 0:03:54.880 --> 0:03:58.520 We were intcipating that the European Commission would accept this 0:03:58.600 --> 0:04:03.000 deal with behavioral remedy. These behavioral remedies include those too 0:04:03.040 --> 0:04:06.800 late rivals have access to the games for our owns 0:04:06.880 --> 0:04:10.800 ten years, and the Commission said that with these conditions 0:04:11.120 --> 0:04:13.120 that will allow the deal to be pro competitive. 0:04:14.800 --> 0:04:17.040 Jen, I'm going to come to you at Bloomberg Intelligence. 0:04:17.080 --> 0:04:21.680 In the analysis published by the European Commission, Jen, they 0:04:21.720 --> 0:04:26.599 say that actually this is going to be pro growth, 0:04:26.760 --> 0:04:30.599 pro market. How is their analysis so different to that 0:04:30.720 --> 0:04:31.719 of the UK CMA. 0:04:31.760 --> 0:04:33.960 Are they just reading two different sets of data? 0:04:34.920 --> 0:04:38.040 You know, it's really just about a different prediction as 0:04:38.040 --> 0:04:40.760 to what's going to happen with cloud gaming in the future. 0:04:40.839 --> 0:04:43.000 And you know, I think it just shows how difficult 0:04:43.080 --> 0:04:46.039 these merger decisions can be when they're involving tech and 0:04:46.080 --> 0:04:49.200 when they're involving future markets, because it's really they're looking 0:04:49.240 --> 0:04:52.120 at a crystal ball and they're speculating about what can happen, 0:04:52.160 --> 0:04:56.480 and reasonable minds can differ. The European Commission views Microsoft's 0:04:56.520 --> 0:04:59.919 move to guarantee that these these games Call of Duty 0:05:00.120 --> 0:05:02.839 and World of Warcraft that it would be acquiring from 0:05:02.839 --> 0:05:06.440 Activision would be on these other cloud services also in 0:05:06.480 --> 0:05:10.000 other cloud subscriptions, and that's not the way things are today. 0:05:10.080 --> 0:05:11.279 Those games aren't available. 0:05:11.320 --> 0:05:14.240 So the European Commission is looking at this as output 0:05:14.279 --> 0:05:17.680 expanding or pro competitive, whereas the UK is saying, no, 0:05:17.960 --> 0:05:21.040 you know, we think Microsoft today has too much power 0:05:21.080 --> 0:05:23.520 in the cloud and by having these great games, this 0:05:23.640 --> 0:05:26.920 must have content for some gamers. In the future, they'll 0:05:26.920 --> 0:05:29.719 be able to push out these other cloud gaming services 0:05:29.760 --> 0:05:32.560 and these other competitors, and we're trying to prevent that. 0:05:32.640 --> 0:05:35.200 We're trying to prevent Microsoft from being dominant in this 0:05:35.320 --> 0:05:36.200 market in the future. 0:05:36.520 --> 0:05:38.640 So they just sort of saw what was going to 0:05:38.680 --> 0:05:39.560 happen in the future. 0:05:39.680 --> 0:05:44.480 Differently, Catherine, we knew this was coming at least the 0:05:44.520 --> 0:05:47.000 timing of the decision. Now through the twenty second we 0:05:47.080 --> 0:05:50.640 got it. Bloomberg sources had said that the EU would 0:05:51.440 --> 0:05:54.440 rule in favor of the deal. So what happens now? 0:05:54.480 --> 0:05:57.280 What is the process that we're tracking at Bloomberg News. 0:05:58.880 --> 0:06:01.719 Yes, so that's to say has given a glimmer of 0:06:01.760 --> 0:06:06.520 hope to Microsoft, but it's not going to change things massively. 0:06:06.920 --> 0:06:11.000 Microsoft already faced massive challenges in the US with the 0:06:11.080 --> 0:06:14.760 FTC having blocked to sue, and in the UK the 0:06:14.800 --> 0:06:17.960 Microsoft will have to lodge its appeal at the Competitional 0:06:18.000 --> 0:06:20.480 Peel Tribunal by the end of the month, and that 0:06:20.480 --> 0:06:23.960 will be really difficult because the CAT is a judicial 0:06:23.960 --> 0:06:26.680 review process, so you know, they'll just look at the 0:06:26.760 --> 0:06:30.480 legality of the CMA's decision rather than really assessing the 0:06:30.520 --> 0:06:32.760 merits of that choice. 0:06:33.240 --> 0:06:37.039 And what is interesting, Jen is that, well, we just 0:06:37.040 --> 0:06:40.039 heard it from Catherine, a glimmer of hope coming, but 0:06:40.320 --> 0:06:43.200 realistically this is an uphill battle, even though we do 0:06:43.240 --> 0:06:46.640 see a share price reaction for activision Brizard, Ultimately, from 0:06:46.680 --> 0:06:49.880 your analysis, it feels like you don't think the tune 0:06:49.960 --> 0:06:53.520 is being changed here and what sort of timeline do 0:06:53.520 --> 0:06:55.479 you think this deal ultimately unwinding. 0:06:55.480 --> 0:06:58.120 You know, in your perspectivities. 0:07:00.080 --> 0:07:02.159 See this changing things very much, because at the end 0:07:02.200 --> 0:07:04.839 of the day, there is a very high standard to 0:07:05.040 --> 0:07:08.120 overturn a CMA decision. I actually did a little research 0:07:08.120 --> 0:07:10.520 and I looked at merger decisions by the CMA that 0:07:10.600 --> 0:07:14.560 had actually been reversed or sent back to the CMA 0:07:14.920 --> 0:07:17.760 on appeal, and it was about thirty percent, so that's 0:07:17.800 --> 0:07:19.560 a low percentage, so it's a high standard. 0:07:19.600 --> 0:07:21.000 It's going to be difficult, and. 0:07:20.960 --> 0:07:23.520 The European Commission's decision is separate and based on the 0:07:23.600 --> 0:07:27.120 separate analysis and maybe even different market conditions. So I 0:07:27.160 --> 0:07:29.160 don't really think it factors in much, and it doesn't 0:07:29.240 --> 0:07:32.000 change the fact that Microsoft has this very high, difficult 0:07:32.240 --> 0:07:34.240 standard to meet to overturn that decision. 0:07:34.520 --> 0:07:36.280 And then timing. You mentioned timing. 0:07:36.320 --> 0:07:39.400 I think that's so important here because even if Microsoft 0:07:39.440 --> 0:07:40.760 is successful, let's say. 0:07:40.640 --> 0:07:44.160 On appeal to in the UK, and even with their. 0:07:44.080 --> 0:07:46.480 Lawsuit that's coming up in August in the US against 0:07:46.520 --> 0:07:49.160 the Federal Trade Commission, you're looking at a very very 0:07:49.200 --> 0:07:52.200 long time period before there could be an actual ultimate 0:07:52.240 --> 0:07:56.200 final outcome. Because the CMA, let's say, the appeal tribunal 0:07:56.800 --> 0:07:58.840 doesn't like the decision or thinks the facts need to 0:07:58.840 --> 0:08:01.920 be reevaluated, I'll send it back to the CMA to'll 0:08:01.920 --> 0:08:04.560 look at it again. And in the US, even if 0:08:04.600 --> 0:08:07.480 the administrative large judge that will be hearing this trial 0:08:08.240 --> 0:08:11.520 rules for Microsoft, the FEC can appeal and the appeal 0:08:11.560 --> 0:08:14.280 will go back to the Commissioners the very three commissioners 0:08:14.280 --> 0:08:16.560 that voted to sue to begin with, So there's a 0:08:16.560 --> 0:08:19.600 good chance that would be reversed. At which point Microsoft 0:08:19.640 --> 0:08:22.360 an Activision could appeal to a federal report. But we're 0:08:22.360 --> 0:08:25.000 talking way into the end of twenty twenty four here, 0:08:25.080 --> 0:08:26.960 so a long time frame if they really want to 0:08:26.960 --> 0:08:27.640 have success. 0:08:29.240 --> 0:08:32.760 Jen Catherine Bobby Kotik, the CEO of Activision, is sent 0:08:32.800 --> 0:08:34.960 through an emailed statement to us and he says that 0:08:35.000 --> 0:08:39.840 the EC conducted an extremely thorough, deliberate process. But the 0:08:39.880 --> 0:08:42.760 bit that jumps out at me is although they required 0:08:42.880 --> 0:08:45.960 stringent remedies, and I think that's a reference to the 0:08:46.040 --> 0:08:48.960 ten year of access, ten years of access to cloud 0:08:48.960 --> 0:08:53.400 platforms on call of duty. Catherine, remind us, when they 0:08:53.400 --> 0:08:56.360 go back to the CMA and make this appeal in 0:08:56.400 --> 0:08:59.760 the UK, they're not necessarily appealing the decision in and 0:08:59.800 --> 0:09:03.520 of itself. They're appealing how that decision was made. They're 0:09:03.520 --> 0:09:06.520 appealing the process. Remind us, what has to happen. 0:09:07.760 --> 0:09:10.280 Yes, exactly that, so what the cat They don't look 0:09:10.320 --> 0:09:12.720 at the medus of this decision, They just look at 0:09:12.760 --> 0:09:15.280 it in a judicial review process, and which would will 0:09:15.280 --> 0:09:17.760 be the legality of the decisions, so you know, they 0:09:17.760 --> 0:09:20.880 can look at things whether the CME was irrational or 0:09:21.160 --> 0:09:24.240 you know, if there was any procedural procedural errors there 0:09:24.559 --> 0:09:26.440 that they might have got wrong. I mean, I think 0:09:26.440 --> 0:09:30.079 it's also important to understand with this process that if 0:09:30.120 --> 0:09:32.760 the CAT does find that there are any errors made, 0:09:33.000 --> 0:09:35.240 that the CAT will then actually refer that back to 0:09:35.400 --> 0:09:38.960 the CME itself. So that is another hurdle for Microsoft 0:09:39.200 --> 0:09:40.360 that it will need to pass. 0:09:40.440 --> 0:09:43.280 Yes, we should point out that the UKCMA did come 0:09:43.320 --> 0:09:46.800 out with a response this morning saying they stand by 0:09:47.600 --> 0:09:50.520 their original decision, so we'll wait and see what happens. 0:09:50.520 --> 0:09:54.240 Bloombergs Cafferinemol and Jennifer Ree of Bloomberg Intelligence, thank you 0:09:54.640 --> 0:09:57.599 very much. Sticking with Microsoft and antitrust, we've mentioned it 0:09:57.679 --> 0:10:01.719 that earlier Microsoft's Azure cloud business has been targeted by 0:10:01.720 --> 0:10:04.640 the European Union's Anti Trust Arm and MID concerns the 0:10:04.679 --> 0:10:08.320 US software firm is leveraging its market power to squeeze 0:10:08.320 --> 0:10:11.840 out rivals as part of an informal probe. Regulators are 0:10:11.880 --> 0:10:15.640 quizzing competitors and customers about how Microsoft may be using 0:10:15.640 --> 0:10:19.680 its access to business sensitive information belonging to cloud firms. 0:10:19.880 --> 0:10:23.280 It has commercial dealings with that all. According to sources. 0:10:22.920 --> 0:10:28.040 Carrot competition analysts, they're busy, So too is one Linda Yakarino. 0:10:28.160 --> 0:10:31.000 We know that she's saying she's excited to transform Twitter ed. 0:10:31.160 --> 0:10:33.040 We're going to be talking about what she brings to 0:10:33.080 --> 0:10:35.920 the social media platform and more with three past studios 0:10:35.920 --> 0:10:47.079 Stephen wolf Herrera joining the show. So Twitter's incoming CEO, 0:10:47.160 --> 0:10:50.560 Linda Yakarina says she's excited to transform the company and 0:10:50.600 --> 0:10:53.439 achieving La Musk's vision for the platform. In her first 0:10:53.440 --> 0:10:55.880 few tweets since galning the job, Yacarina said, look, she's 0:10:55.960 --> 0:10:58.280 committed to the development of the social media company and 0:10:58.280 --> 0:11:01.839 said feedback from users is vital to that future. I 0:11:01.960 --> 0:11:04.280 speak to someone who knows her impact, none of for 0:11:04.360 --> 0:11:06.720 fifteen years. At least three past studios. Chief business Officer 0:11:06.720 --> 0:11:09.080 Stephen wolf Perrera is in the studio with us. And 0:11:09.840 --> 0:11:13.480 when you heard that this force that you've worked and 0:11:13.520 --> 0:11:15.720 seen and interacted with for fifteen years is going to 0:11:15.720 --> 0:11:17.480 be taking the helm, what did your immediately think? 0:11:18.040 --> 0:11:19.120 I thought it was a brilliant move. 0:11:20.559 --> 0:11:24.480 The platform needs a radical transformation. They need to have 0:11:24.520 --> 0:11:28.520 credibility with the marketplace, with brands with consumers, and Linda 0:11:28.559 --> 0:11:31.319 has a track record around innovation really putting consumers first. 0:11:31.679 --> 0:11:33.319 So I think it was a brilliant move for a 0:11:33.400 --> 0:11:35.120 platform that desperately needed to change. 0:11:35.400 --> 0:11:38.720 And is it safety first? Is it innovation first? How 0:11:38.760 --> 0:11:41.200 does she manage to square that circle of a CTO 0:11:41.240 --> 0:11:43.080 who's going to want to be pushing ahead with innovation 0:11:43.160 --> 0:11:45.040 and perhaps running fast and breaking things. 0:11:45.080 --> 0:11:47.839 Look on the technology side, I mean, obviously elans a 0:11:47.920 --> 0:11:50.360 visionary and he'll be able to certainly figure out the 0:11:50.400 --> 0:11:53.679 path from Twitter to transform it to the super ad x. 0:11:54.440 --> 0:11:56.080 But you need to stay biard as the business. I mean, 0:11:56.160 --> 0:12:00.040 right now, it's been bleeding advertisers. No one wants to 0:12:00.080 --> 0:12:02.440 be on the platform. There's been all this drama around it. 0:12:02.520 --> 0:12:04.960 And Linda's a stabilizing force. I mean, she's spent over 0:12:05.240 --> 0:12:09.040 ten years at NBC Universal really stabilizing that company, growing 0:12:09.040 --> 0:12:12.319 it over thirteen billion dollars in sales, leading their upfront, 0:12:12.360 --> 0:12:15.240 leading you know, kind of innovation with data with other 0:12:15.600 --> 0:12:18.320 TV networks, really trying to bring the community together. 0:12:18.520 --> 0:12:19.880 And she is a force to be reckoned with. 0:12:20.040 --> 0:12:21.960 I mean, there's a reason why they have her nickname 0:12:22.000 --> 0:12:25.240 being developed Hammer because she's able to negotiate with brands. 0:12:25.320 --> 0:12:28.679 She's tough, she's fair, but or you know, number one 0:12:28.720 --> 0:12:30.280 is really to bring brands back onto the. 0:12:30.280 --> 0:12:35.120 Platform, and to do that alongside an executive chair, of course, 0:12:35.120 --> 0:12:36.720 said and I mean you know a lot about the 0:12:36.720 --> 0:12:38.760 people that worked alongside Elan over the years. 0:12:38.920 --> 0:12:39.520 Yeah. 0:12:39.640 --> 0:12:42.000 Yeah, it's interesting how it works. So at SpaceX you 0:12:42.000 --> 0:12:45.560 have Gwynn Shotwell as the COO and president running things 0:12:45.640 --> 0:12:48.640 day to day. At Tesla, particularly in recent courses, Zach 0:12:48.720 --> 0:12:51.600 Kirk on the CFO is like more visible and other 0:12:51.679 --> 0:12:56.240 executives like literally appearing on stage. So I guess, even 0:12:56.280 --> 0:12:58.680 to your mind, how do you see that working. You know, 0:12:58.800 --> 0:13:02.160 Linda who you know with Elon Musk day to day, 0:13:02.360 --> 0:13:04.960 do you think that she can get him to see 0:13:05.000 --> 0:13:06.640 reason or compromise. 0:13:07.440 --> 0:13:07.840 I think so. 0:13:08.080 --> 0:13:10.240 I mean we saw a trial run of what their 0:13:10.280 --> 0:13:13.120 relationship is going to look like about a month ago 0:13:13.720 --> 0:13:16.959 in Miami there was the Possible Conference, a big marketing event, 0:13:17.600 --> 0:13:20.199 and she was on stage doing a fireside chat interview 0:13:20.240 --> 0:13:22.680 with Elon and she didn't pull any punches. I mean, 0:13:22.800 --> 0:13:25.240 Linda's not a wallflower, right, I mean, she's very tough, 0:13:25.480 --> 0:13:29.200 she knows her business. You know, she is a good 0:13:29.200 --> 0:13:31.800 New Yorker, grew up in Long Island, you know, Italian heritage. 0:13:31.800 --> 0:13:33.120 I mean, she's as tough as they come. 0:13:33.400 --> 0:13:35.720 And she asked him the tough questions on stage, and 0:13:35.760 --> 0:13:37.559 so you could see that she didn't shy away from 0:13:37.600 --> 0:13:40.880 asking him about, Hey, why did Twitter cancel the client 0:13:40.920 --> 0:13:43.040 council that they had? Are you going to bring that back? 0:13:43.200 --> 0:13:44.640 Are you going to stop doing tweets at three in 0:13:44.720 --> 0:13:46.559 the morning. You know that's not good for the platform. 0:13:46.840 --> 0:13:49.600 So I feel that she knows this space, she knows 0:13:49.640 --> 0:13:52.600 this industry, and she's beloved by brands and marketers and 0:13:52.640 --> 0:13:56.080 media agencies. And so if he's smart, he'll really give 0:13:56.120 --> 0:13:58.360 her the range. Let her be the CEO, let her 0:13:58.440 --> 0:14:01.160 build this platform, and then bring all the innovation to 0:14:01.240 --> 0:14:04.000 really help connect content, commerce and community. 0:14:05.040 --> 0:14:08.680 We go back to it, how does she build this platform? 0:14:09.040 --> 0:14:13.440 You know Elon sets out his ideas as CTO, many 0:14:13.520 --> 0:14:13.760 of them. 0:14:13.760 --> 0:14:15.640 We know about subscription based. 0:14:15.400 --> 0:14:21.240 Service, algorithm, algorithmically addressing where things appear in the tie timeline. 0:14:21.600 --> 0:14:23.800 Then what impacts Linda going to have when she comes in? 0:14:23.840 --> 0:14:26.160 What ideas can she actually install? 0:14:26.280 --> 0:14:29.640 Well, first, it's about leadership. I mean the company has 0:14:29.760 --> 0:14:32.640 what lost so many employees. They've obviously let a ton 0:14:32.680 --> 0:14:34.440 of people go. You know, they are a fraction of 0:14:34.440 --> 0:14:36.760 what they were before. I feel like there has been 0:14:36.800 --> 0:14:39.480 this crisis and confidence in Twitter, and here is a 0:14:39.560 --> 0:14:42.080 real leader who's going to come in and stabilize the 0:14:42.120 --> 0:14:45.240 business and bring back that confidence, bring back the trust 0:14:45.480 --> 0:14:48.600 of not just the employees but also the advertising community. 0:14:48.760 --> 0:14:49.680 And you have to start there. 0:14:49.720 --> 0:14:51.600 I mean, at the end of the day, this has 0:14:51.640 --> 0:14:54.520 to be about getting the basics right. And she knows 0:14:54.560 --> 0:14:57.320 how to build a business. She is a leader, she 0:14:57.560 --> 0:15:00.840 is inspiring. She will bring talent to the commpany. I mean, 0:15:00.880 --> 0:15:03.640 she built a data business from scratch for NBCU. She 0:15:03.760 --> 0:15:07.200 understands e commerce, she understands analytics, and so she had 0:15:07.240 --> 0:15:10.240 that full span of control on the business side. Again, 0:15:10.360 --> 0:15:14.080 you have incredible engineers and technologies over at Twitter, certainly 0:15:14.080 --> 0:15:16.080 at the Helm with you on, but you know, having 0:15:16.160 --> 0:15:18.800 her really lead the business side, that's what this company needs. 0:15:18.840 --> 0:15:21.280 It's interesting, of course talking about the Data League, talking 0:15:21.280 --> 0:15:25.320 about ultimately how you show brands that you're making impacts, 0:15:25.320 --> 0:15:27.880 the right impact for them converting into sales. 0:15:28.240 --> 0:15:30.800 But I'm also interested in the grander vision. 0:15:31.160 --> 0:15:33.400 Many people had to quickly Google or search or chat 0:15:33.440 --> 0:15:34.360 shipt who. 0:15:34.240 --> 0:15:35.440 Linda Yacarino is. 0:15:36.200 --> 0:15:38.720 But behind the scenes, she's really has had a very 0:15:38.760 --> 0:15:42.000 powerful influence, had a very influential job. What vision do 0:15:42.000 --> 0:15:45.280 you think she thinks Twitter ultimately is going to be 0:15:45.680 --> 0:15:47.720 to make this a worth her wild kind of move. 0:15:47.880 --> 0:15:49.920 Yeah, I mean, look, she was the chairwoman of NBC 0:15:50.040 --> 0:15:53.360 Universal's ad sales business, right, she had a great job. 0:15:53.480 --> 0:15:55.640 She was one of the most powerful people in media. 0:15:55.760 --> 0:15:57.840 So for her to leave, it had to be something 0:15:57.880 --> 0:16:00.280 really compelling. It had to be a bigger vision. And 0:16:00.320 --> 0:16:02.920 I think Elance shared the vision for the super app 0:16:02.960 --> 0:16:05.440 for x and I feel that she got really excited 0:16:05.440 --> 0:16:05.800 about that. 0:16:05.880 --> 0:16:07.680 And so again her ability. 0:16:07.280 --> 0:16:10.600 To innovate, to bring consumers and brands along on this journey. 0:16:10.760 --> 0:16:13.280 That's a very unique position to be. And she understands content. 0:16:13.560 --> 0:16:15.800 She actually was a partner for Twitter for years. Think 0:16:15.840 --> 0:16:18.560 about the Olympics and the Super Bowl and World Cup, 0:16:18.880 --> 0:16:22.680 all those mega events that truly have global ramifications. 0:16:23.040 --> 0:16:24.680 She was at the center of that. 0:16:24.960 --> 0:16:27.680 So now to bring that lens around again, content, commerce 0:16:27.720 --> 0:16:30.640 and community. Everyone is trying to connect that and as 0:16:30.720 --> 0:16:33.800 one of the largest media brands on the planet, she 0:16:34.040 --> 0:16:36.840 understood that an audience, whether it's eighteen to thirty four, 0:16:36.960 --> 0:16:39.520 eighteen to forty nine, whatever advertisers are looking for, they 0:16:39.560 --> 0:16:42.400 could find that audience anywhere. The reality means you have 0:16:42.440 --> 0:16:44.520 to make a compelling to put those dollars on Twitter. 0:16:45.240 --> 0:16:47.760 Yeah, we reported that there were others involved in that 0:16:47.800 --> 0:16:50.680 relationship NBC in Twitter, and she was at a macro level. 0:16:50.680 --> 0:16:51.680 But that's great insight. 0:16:51.760 --> 0:16:55.040 Three Pass Studios Chief business Officer, Stephen Wolf Pereira, thank 0:16:55.080 --> 0:16:55.440 you very. 0:16:55.480 --> 0:16:56.280 Much, Thanks so much. 0:16:56.480 --> 0:16:59.560 Now coming up, Miguel McKelvey joins to talk about his 0:16:59.640 --> 0:17:03.760 recent which include his acquisition of clothing brand American Giant 0:17:03.800 --> 0:17:06.959 and a social network for senior aged users. 0:17:06.960 --> 0:17:08.480 More on that. Next, this is Bloomberg. 0:17:19.000 --> 0:17:23.080 In an effort to revitalize manufacturing in the US. Miguel McKelvey, 0:17:23.160 --> 0:17:26.679 co founder of we Work, says he's buying clothing brand 0:17:26.960 --> 0:17:29.840 American Giant. There's also plans to build a new social 0:17:29.880 --> 0:17:34.119 network for users fifty five in older. Miguel McKelvey joins 0:17:34.160 --> 0:17:36.960 us now for more on what's quite a few announcements. 0:17:37.320 --> 0:17:41.119 I find manufacturing fascinating. Think about the world of technology 0:17:41.119 --> 0:17:44.439 on this show we operate in and actually that's a 0:17:44.440 --> 0:17:47.040 big part of the story, why do you want to 0:17:47.080 --> 0:17:49.880 revitalize US manufacturing? 0:17:51.760 --> 0:17:53.760 Well, it started for me with really, you know, the 0:17:53.840 --> 0:17:57.440 same kind of response that I had to office workers 0:17:57.480 --> 0:18:01.000 with we work, is that the environment that people are 0:18:01.040 --> 0:18:04.400 working in just isn't great and isn't a nice. 0:18:04.240 --> 0:18:04.639 Place to be. 0:18:04.800 --> 0:18:07.640 Like sitting in a cubicle for ten hours a day 0:18:08.040 --> 0:18:11.920 to me was seemed terrible. And similarly, I think that 0:18:12.040 --> 0:18:17.000 the working environments where people make things have really been 0:18:17.920 --> 0:18:22.880 brought down to the lowest possible, you know, from a design, 0:18:23.000 --> 0:18:26.359 from an ergonomic, from just a human perspective, And it 0:18:26.440 --> 0:18:29.600 makes sense because you know, you have to compete with 0:18:30.440 --> 0:18:33.119 really low labor in other places in the world. But 0:18:33.200 --> 0:18:35.639 I think in the US, for our future, you know, 0:18:35.720 --> 0:18:38.480 we can create jobs and places to work that are 0:18:38.640 --> 0:18:41.360 that are much better, and I think that's what can unlock, 0:18:41.640 --> 0:18:44.720 you know, a new future for American manufacturer. 0:18:46.280 --> 0:18:51.080 Miguel across all of your projects, was it difficult to 0:18:51.200 --> 0:18:54.440 engage with investors? Did you have to do some reputational 0:18:54.520 --> 0:18:58.720 rebuilding or explain what happened that we work your associations 0:18:58.720 --> 0:19:01.359 with Adam Are those questions. 0:19:02.240 --> 0:19:03.600 Yeah, I think they're fair. 0:19:03.800 --> 0:19:05.960 I mean a lot of the stuff that I worked 0:19:06.000 --> 0:19:09.480 on was the we Work product and obviously building helping 0:19:09.560 --> 0:19:13.560 to build an organization that scaled to you know, hundreds 0:19:13.600 --> 0:19:17.440 of locations around the world, and that is a credibility 0:19:17.480 --> 0:19:20.680 which I think is lasting. I mean, we were able 0:19:20.760 --> 0:19:23.800 to do amazing things. And then there's obviously another layer 0:19:24.560 --> 0:19:27.639 of things at the company that didn't go as well, 0:19:28.400 --> 0:19:30.919 and you know, people always have questions about that, and 0:19:31.040 --> 0:19:34.040 oftentimes I would say, you know, people want to know 0:19:34.359 --> 0:19:38.520 the we Work storty. You know, there's a sort of insatiable, 0:19:38.560 --> 0:19:41.880 insatiable desire to learn more about what happened that we work. 0:19:41.960 --> 0:19:45.240 So I don't mind those conversations. You know, for me, 0:19:45.359 --> 0:19:48.320 it's still a learning process. I still like reflecting on 0:19:48.400 --> 0:19:51.560 those times because I learned from all those conversations. So yeah, 0:19:51.600 --> 0:19:54.639 I mean I wouldn't say reputational as much as just 0:19:54.680 --> 0:19:55.960 people are really curious. 0:19:56.960 --> 0:19:59.560 People are curious also, of course that you're getting back 0:19:59.600 --> 0:20:02.320