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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Apple Coarclay, and Android Auto with the Bloomberg

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Speaker 2: All Right, the media MN a trade that just won't

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Speaker 2: go away. Warner Brothers Discovery says an amended takeover offer

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Speaker 2: from Paramounts Guidance is inferior to its deal with Netflix

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Speaker 2: and urges shareholders not to tender their shares. I don't

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Speaker 2: know what's going on here, people, but our next guest

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Speaker 2: does Keith wrong, Anathan. She is the media analyst for

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Speaker 2: Bloomberg Intelligence here. Actually, Keith, I thought we'd have something

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Speaker 2: done by now. I mean, these offers are pretty clear.

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Speaker 2: The value seemed kind of similar to me.

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Speaker 3: What do you think's going on here?

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Speaker 4: Yeah?

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Speaker 5: So this time what Warner Brothers is saying, in addition

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Speaker 5: to the fact that the offer is actually inadequate, this

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Speaker 5: is what they said the very first time when they

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Speaker 5: rejected this thirty dollars bid from paramount You know, they

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Speaker 5: obviously wanted the personal guarantee from Larry Ellison, which they got.

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Speaker 5: They wanted, you know, paramount to raise its termination fee

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Speaker 5: to five point eight billion to match Netflix that also

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Speaker 5: they got. But now they're saying that they actually really

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Speaker 5: do need, you know, a sweetened bid, So they cite

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Speaker 5: a number there. They say that if they had to

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Speaker 5: terminate their agreement with Netflix, they will also incur you know,

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Speaker 5: obviously they have to pay the termination fee, plus there's

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Speaker 5: going to be significant financing costs, so all of that

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Speaker 5: comes out about one dollars one dollar and eighty cents,

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Speaker 5: close to one seventy nine or one eighty a share,

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Speaker 5: So they obviously need to be compensated for that. So

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Speaker 5: basically I think, you know, they do need a sweetened offer.

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Speaker 5: And the big thing that they highlight this time around

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Speaker 5: is the amount of debt, so they actually call this

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Speaker 5: a leveraged buyout, probably the biggest one in the history

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Speaker 5: of M and A, and so say that, you know,

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Speaker 5: it just presents too many risks and too many uncertainties

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Speaker 5: and is definitely inferior to the Netflix offer.

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Speaker 6: Right, the conclusion that it has drawn and what it's

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Speaker 6: recommending to shareholders remains the same, which is go with Netflix's.

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Speaker 6: The Netflix bid having said that, what does it mean

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Speaker 6: that Warner Brothers Discovery wrote this letter to shareholders? Do

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Speaker 6: we get the sense that shareholders are tendering shares to

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Speaker 6: the paramount?

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Speaker 5: Not so from what we've heard. You know, when it

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Speaker 5: was last reported Scarlett, about five hundred thousand shares were

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Speaker 5: tendered at that thirty dollars price. Remember we have about

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Speaker 5: two point six billion, so we're really very very long

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Speaker 5: ways off. So you know, I think shareholders definitely expect

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Speaker 5: the price to go up. They do, you know, think

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Speaker 5: that there is going to be a bidding war. The

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Speaker 5: number out there on the street is that David Zaslav

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Speaker 5: is looking for thirty four dollars, as you know, the

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Speaker 5: final offer which he will sign this his company away

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Speaker 5: to Paramount. I'm not sure whether you know Paramount is

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Speaker 5: actually going to raise their offer, but that that is

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Speaker 5: really the number that he's looking for. And we know him.

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Speaker 5: He's he's really a master craftsman when it comes to

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Speaker 5: to getting the best deal for his company. So again

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Speaker 5: it's it's a way and watch.

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Speaker 2: We used to call that the final final offer. This

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Speaker 2: is our final final We're not we're not getting any.

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Speaker 6: So final that we need to say twice.

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Speaker 3: Exactly, Githy.

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Speaker 7: We have not heard really too much from Netflix, have we.

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Speaker 5: So all on Netflix said today Paul was after you know,

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Speaker 5: Warner Brothers Discovery put out that letter, was you know,

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Speaker 5: they said, yes, we continue to you know, work with

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Speaker 5: Warner Brothers. We filed, we're working with the anti trust authorities,

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Speaker 5: you know, we're working with the regulators, and we hope

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Speaker 5: to get you know, the deal down. So everything kind

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Speaker 5: of proceeding as expected from from the Netflix management team.

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Speaker 6: You mentioned thirty four dollars a share is what David

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Speaker 6: Zaslov is really eyeing. Is there any reason to think

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Speaker 6: Netflix will raise its offer.

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Speaker 5: Netflix needs to raise its offer, Scarlett, only if Paramount

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Speaker 5: comes back with a sweetened bid, And we do think

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Speaker 5: that they actually will raise their offer. They really believe

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Speaker 5: even though the you know, the market price reaction obviously

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Speaker 5: has been very negative to this whole Netflix deal, just

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Speaker 5: kind of given that it really kind of complicates a

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Speaker 5: very clean narrative. I think Netflix really believes that they're

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Speaker 5: doing this, you know, in the long in the long

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Speaker 5: they're playing the long game here. You know, this is

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Speaker 5: a great collection of assets. Again, it's not just the

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Speaker 5: cost of doing the deal. It's the cost of not

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Speaker 5: doing the deal, and they obviously do not want to

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Speaker 5: strengthen their competitors. They believe this is a great collection

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Speaker 5: of assets that gives them, you know, tremendous value over many,

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Speaker 5: many years to come. So I absolutely think they will

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Speaker 5: raise the price, but the first move has to be

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Speaker 5: from Paramount.

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Speaker 2: GITHA part of the Warner Brothers discovery plan before this

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Speaker 2: offer was it was to spin out their cable networks.

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Speaker 2: And that's exactly what Compcast did several days ago, spinning

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Speaker 2: out its cable networks. The company new companies called Versant

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Speaker 2: Media vs NT. That thing is traded off about twenty

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Speaker 2: just in the last few days. Man, what does that

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Speaker 2: tell you about the cable network business and maybe how

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Speaker 2: it might affect these bids.

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Speaker 5: Yeah, it's it's really bleak. And so this actually strengthens

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Speaker 5: the case for Paramount. This is exactly what they were saying.

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Speaker 5: They were saying, let's buy this whole thing, because you

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Speaker 5: don't know where this, you know, the global networks business

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Speaker 5: and the TV networks is going to actually trade and

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Speaker 5: here we go. Versun is actually just proving their point.

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Speaker 5: So does not really bode well for Warner Brothers. But

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Speaker 5: again I think still Warner Brothers will continue to have

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Speaker 5: to have the upper hand because again they can argue

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Speaker 5: that their cable networks, again a slightly different business, much

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Speaker 5: larger in scale compared to the version properties, has an

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Speaker 5: international footprint. But again the writing is on the wall, Paula.

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Speaker 5: As you've said many times, I mean that the TV

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Speaker 5: network business is bleeding, not a slow death anymore. This

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Speaker 5: is really happening fast and furious.

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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto

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Speaker 1: with the Bloomberg Business app. Listen on demand wherever you

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Speaker 1: get your podcasts, or watch us live on YouTube.

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Speaker 2: Nvidia CEO Jensen Wang says the artificial intelligence industry always

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Speaker 2: needs more energy. On the sidelines of the annual Consumer

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Speaker 2: Tech Events, cees Jensen Wang and Siemens CEO roll On

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Speaker 2: Bush spoke exclusively with Bloomberg's Ed Ludlow on their AI partnership.

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Speaker 4: From Hopper to Blackwell, we increased energy efficiency by tenx.

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Speaker 4: From Blackwell to Reuben, we increased energy efficiency again by tenx.

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Speaker 4: And that translates directly to our customers revenues because in

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Speaker 4: the case of ANAI factory, whatever factory size you have,

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Speaker 4: you're limited by the power.

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Speaker 7: All Right.

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Speaker 3: That was Jensen Wang.

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Speaker 2: He is head of Nvidia and Siemens COO role On Bush,

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Speaker 2: speaking exclusively with Bloomberg's ed La Low of the AI

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Speaker 2: Partnership AD at the Consumer Electronics Show in Las Vegas.

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Speaker 2: Let's get the latest reporting from Vegas. Caroline Hydroids is

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Speaker 2: she's out there. She's the b Tech co anchor for

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Speaker 2: a Bloomberg News. Caroline, it just seems like, you know,

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Speaker 2: you're listening to mister Wog, mister Bush. The need for

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Speaker 2: AI and the spending on AI shows no real signs

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Speaker 2: of slowing yet.

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Speaker 3: Is that the vibe you're getting out there?

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Speaker 8: That is very much the vibe we're getting. We heard

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Speaker 8: from Lisa Su yesterday as well, CEO of AMD, saying

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Speaker 8: in the next few years, you're going to have to

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Speaker 8: one hundred x the amount of compute that we currently have.

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Speaker 8: Has stock still falling today, I might add, and so

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Speaker 8: many people may be factoring in this extraordinary scale, which

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Speaker 8: we'd likely to see the compute needs still ramp up.

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Speaker 8: And it's having a marked effect on certain companies stocks

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Speaker 8: like I'm sure you were covering yesterday and into today

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Speaker 8: sand Disc. It is up one thousand percent from its

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Speaker 8: lows back in April, but it's almost fifty in the

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Speaker 8: first few trading days of the year. This is all

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Speaker 8: about a shortage in memory, memory storage. We are seeing

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Speaker 8: still the fact that we're worrying about energy, as Jentsen says,

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Speaker 8: we're worrying about memory as you're seeing, impacting.

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Speaker 4: Some Sung stock as well.

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Speaker 8: We had a Somesung executive on the network yesterday saying, Nook,

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Speaker 8: we're going to have to see a high con prices

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Speaker 8: because supply is just so tight. And yet still people

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Speaker 8: question whether we're in some sort of bubble. But all

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Speaker 8: I'm hearing is the infrastructure just needs to get ever

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Speaker 8: bigger and we kind of need to get on board

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Speaker 8: with that.

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Speaker 6: Yeah, speaking of memory chip makers, Micron the biggest US

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Speaker 6: memory chip maker, jumping two hundred and forty percent last

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Speaker 6: year and up about ten percent yesterday. So interesting example

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Speaker 6: of that. So Caroline the Consumer Electronics show, Paul and

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Speaker 6: I were reminiscing how once upon a time it met

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Speaker 6: big screen TVs and other gadgets that you know, companies

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Speaker 6: dreamt up but consumers may or may not want to

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Speaker 6: sign on for. Is that still what's happening at the

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Speaker 6: cees or has it turned into a high level discussion

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Speaker 6: on chips and AI.

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Speaker 8: I think they're managing to walk both sides. We're still

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Speaker 8: seeing those big unveils and discussions coming from in video

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Speaker 8: CEO from AMDCO, from Quilcom CEO. They're talking about what's

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Speaker 8: inside these electronics or what's inside the compute that is

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Speaker 8: needed to foster these electronics. But then you have Samsung,

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Speaker 8: which is very much on the AI train with its chips,

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Speaker 8: but also unveiling the latest, greatest Samsung frame or the

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Speaker 8: latest TV that has you can see all around the

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Speaker 8: curvature of it, or the fact that they are still

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Speaker 8: trying to think about how your home is going to

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Speaker 8: be connected, how your television is discussing, discussing with your

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Speaker 8: oven as to whether or not the food is cooked,

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Speaker 8: and you get in between messaging between the two. I

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Speaker 8: mean there are companies that still continue to unveil. They're

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Speaker 8: also the ludicrous. I mean there's lollipops that play music

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Speaker 8: as you eat them, There's little toys, everything that seems

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Speaker 8: to be about AI and about companionship is something that

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Speaker 8: just seems to involve some sort of cuddly toy that

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Speaker 8: talks to you. But apparently cute is the way in

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Speaker 8: which we're going to go forward. But there are the

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Speaker 8: vacuum cleaners, there's the massoles chairs. It's still very much

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Speaker 8: has this idea of pushing the innovation forward. And the

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Speaker 8: main thing, guys, I cannot walk without seeing a humanoid

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Speaker 8: robot or some sort. So we're gonna have some big

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Speaker 8: interviews a little bit later. We got Boston Robotics, for example,

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Speaker 8: coming on the show, and that's really Boston Dynamics in fact,

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Speaker 8: which has a huge new unveil of its latest humanoid.

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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up.

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Speaker 7: Are for this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am. He's done on Apple, Cocklay and

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Speaker 1: Android Otto with the Bloomberg Business app. Listen on demand

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Speaker 1: wherever you get your podcasts, or watch us live on YouTube.

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Speaker 6: Well, there have been lots of big games in the

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Speaker 6: lead up to the Super Bowl, and of course there

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Speaker 6: will continue to be as we head in that direction.

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Speaker 6: So let's bring in Brian Eggers. He covers everything for us,

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Speaker 6: from the gaming companies to the lodging companies to the

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Speaker 6: cruise ship companies. See your gaming and lodging analysts here

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Speaker 6: at Bloomberg Intelligence. And Brian, you and your team have

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Speaker 6: done some work and how Draft Kings is positioning itself

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Speaker 6: for the NFL playoffs.

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Speaker 9: Yeah, so, DraftKings and Fandel, among other things, recently rolled

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Speaker 9: out these prediction market apps which are separate from their

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Speaker 9: sports books.

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Speaker 7: And this is really to.

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Speaker 9: Coldpeep our head on against call She and Robinhood and

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Speaker 9: other of these financial firms that offer these event contracts

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Speaker 9: in a number of states.

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Speaker 7: How big is it?

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Speaker 3: I'm hearing more and more about this prediction market market.

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Speaker 3: How big is this that?

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Speaker 7: I mean, this is potentially really large.

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Speaker 9: I don't have numbers in front of me, But the

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Speaker 9: key thing is that call She and Robin Hood are

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Speaker 9: trying to do this in all fifty states. They're about

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Speaker 9: a dozen states that either hold them cease and desist

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Speaker 9: because they effectively are engaging in illegal sports betting according

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Speaker 9: to the states, or a couple of states have warned DraftKings,

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Speaker 9: fandled don't do the same thing.

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Speaker 7: If you've got a sports book license.

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Speaker 9: So what DraftKings and Fandal did is try to go

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Speaker 9: into states with this product where they don't.

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Speaker 7: Operate sports books.

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Speaker 9: They can do prediction markets on politics or entertainment events

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Speaker 9: in any state, but the real issue is with respective sports.

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Speaker 7: That's where they limit themselves.

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Speaker 6: Let me ask you dumb question, and maybe we don't

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Speaker 6: know the answer to this yet. Who is the target

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Speaker 6: audience for a sports prediction market versus a sports contract

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Speaker 6: and in production market setting versus you know, just a

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Speaker 6: regular parlay or simple bet.

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Speaker 9: In recourse, the type of person in terms of the

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Speaker 9: type of area or territory. Think about the fact that

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Speaker 9: you've got mobile sports books in almost thirty states, with

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Speaker 9: thirty some odd states Draftings, Fandel and twenty five of

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Speaker 9: them other states, big states like Texas and California that

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Speaker 9: don't have legal sports books in sports betting, that's a

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Speaker 9: logical market for call She and Robin the do go

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Speaker 9: in there and say you can do these prediction markets

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Speaker 9: and engage in that even though sports betting isn't active

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Speaker 9: and legal in the state.

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Speaker 7: That's really the big.

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Speaker 3: So what would Texas and a Florida say about that?

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Speaker 4: Right?

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Speaker 7: So, without going through every state.

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Speaker 9: There about a dozen states that either specifically told call

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Speaker 9: she and poly Market or Robinhood ye see and assist

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Speaker 9: on do this. A few others have issued Wetter's warning

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Speaker 9: Draftings of Fandel do not offer a sports prediction market

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Speaker 9: in a state where you've got a sports bet license.

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Speaker 9: So what Fandom and Draftings did is you know, seventeen

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Speaker 9: states for Draftings five or Fandel. They're offering this product

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Speaker 9: in states where they don't have sports books, and we're

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Speaker 9: sports betting isn't quote legal.

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Speaker 6: Who regulates the sports markets, So it's confused.

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Speaker 9: It's very confusing because the sports books are regulated by

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Speaker 9: state gaming regulatory authorities. The prediction markets are regulated by

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Speaker 9: the CFTC, so it's state versus federal. And that's been

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Speaker 9: the argument of Kolchi that you know, we're a financial

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Speaker 9: futures contract, we're not sports betting. We are federally regulated.

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Speaker 9: The states have pushed back and said no, this is

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Speaker 9: a form of effectively on licened sports betting, and ultimately

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Speaker 9: I think this heads to the Supreme Court. That's certainly

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Speaker 9: in the view of Eliott Stein or litigation analyst.

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Speaker 2: So what are the casino companies say these days? What

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Speaker 2: do they say, does that impact their sports book and

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Speaker 2: their sports betting?

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Speaker 9: And on the margin, to the extent that MGM and

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Speaker 9: Caesars have mobile products, it's very possible to look into

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Speaker 9: this type of product as well. Again in those states

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Speaker 9: where sports beinning isn't legal, so.

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Speaker 7: Everyone's going to be think about it.

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Speaker 9: And the real other other wrinkle is Texas and California

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Speaker 9: once they realize we may not have sports betting. What

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Speaker 9: we have effectively sports betters. If you believe that's what

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Speaker 9: prediction markets are, we might as well legalize it. And

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Speaker 9: so there's a whole bunch of ramifications to this.

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Speaker 6: What about Native American tribes in states like California in Connecticut,

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Speaker 6: where do they fit it?

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Speaker 9: I mean in California, although sports betting isn't legal in California,

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Speaker 9: the tribes have themselves challenged and through legally the Whites

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Speaker 9: of KAlSi and Robin Hood I don't remember which one.

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Speaker 9: So you know to the extent that tribes have opportunities

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Speaker 9: to operate sports books, which effectively Florida has the Seminal

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Speaker 9: Tribe operating operating hard rock betting site even though draftings

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Speaker 9: and or are not involved. So the tribes very much,

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Speaker 9: will care to the extent that this is effectively a

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Speaker 9: competing product as consumers might perceive it.

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Speaker 3: So is betting just going crazy the total dollar not.

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Speaker 2: I see kids, high school kids having conversations in detail

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Speaker 2: showing a level of expertise which really blows me away.

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Speaker 2: Kids high school kids, and I don't know, it just

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Speaker 2: doesn't feel it's surprising.

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Speaker 9: And it also gets very problematic when you have college

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Speaker 9: kids college games.

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Speaker 7: Yeh, college players.

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Speaker 9: So but yeah, there's a big national draw to that

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Speaker 9: draw to this, and I think the real I don't

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Speaker 9: think draftings of fand will get as affected as some

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Speaker 9: might fear in states where they've got a sports book,

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Speaker 9: but in states where they can't operate a sports book.

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Speaker 9: But Kyll she and Robinhood and Polymarket others are offering

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Speaker 9: prediction markets. That's where I think they see risk as

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Speaker 9: well as opportunity.

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Speaker 6: Brian, what about the sports leagues, the NFL, the NBA,

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Speaker 6: the NHL, the MLB. How do they fit into all this?

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Speaker 6: I mean, are they're going all in with the prediction markets?

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Speaker 7: Well, I think so.

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Speaker 9: They're watching obviously with interests. I mean, the major principles

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Speaker 9: in terms of where there's heads are state regulators versus

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Speaker 9: federal regulators. State's issuing in some cases seas and desist orders.

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Speaker 4: It.

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Speaker 9: Ultimately, because there's a lot of ongoing court cases, many

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Speaker 9: on appeal, the Supreme Court is the logical destination for

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Speaker 9: the legality of this.

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Speaker 7: But I mean that's the good reason. Maybe years away,

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Speaker 7: depends on the urgency.

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Speaker 9: I know Elliott Stein believes that could happen potentially as

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Speaker 9: early as twenty twenty six, that there's a decision, but

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Speaker 9: we don't know. But ultimately, I think this it needs

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Speaker 9: to be qualified and resolved as to who has jurisdiction here.

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Speaker 3: It is crazy the amount.

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Speaker 2: I mean just a few years ago, I mean, you

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Speaker 2: wouldn't even have thought this, But now you get sports

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Speaker 2: teams in Vegas.

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Speaker 9: Yeah, I mean, yeah, so they I think my way

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Speaker 9: to start this is the leading up to the presidential election.

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Speaker 9: There was a lot of activity on one and polymarket

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Speaker 9: about who we win the election, and that kind of

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Speaker 9: kicked off awful water popular interest in this, which means

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Speaker 9: that's when they became involved in sports prediction markets actively

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Speaker 9: a year ago.

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Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android

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Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 3: We'll get a story here today.

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Speaker 2: Alaska Airline ordering Boeing Company aircraft including one hundred and

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Speaker 2: five narrow body seven thirty seven Max ten models and

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Speaker 2: five Trip seven eighty seven wide body aircraft. So good

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Speaker 2: day for Boeing. This stocks up about eight tens to

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Speaker 2: one percent. Stocks up about thirty four percent over the

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Speaker 2: trailing twelve months. George Ferguson joins us here senior Aerospace,

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Speaker 2: defense and airlines analyts for Bloomberg Intelligence. George A, is

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Speaker 2: this this seems like a nice day, a good order

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Speaker 2: for Boeing.

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Speaker 3: How are they doing out in the marketplace?

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Speaker 10: Yeah, I think it's a It was a nice kickoff

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Speaker 10: to the year. As far as orders look through, we've

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Speaker 10: tracked them through November of last year. We get to

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Speaker 10: see December order and deliveries from Boeing or Airbus. But

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Speaker 10: through November of last year, Boeing was beating Airbus in

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Speaker 10: the order game for the year, and so you know,

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Speaker 10: we had sort of expected this or there were some

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Speaker 10: core customers. I think that we're probably sitting on the

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Speaker 10: sideline watching the sea if Boeing was going to get

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Speaker 10: its troubles behind it before it placed orders, and so

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Speaker 10: we saw a bit of a bounce back last year

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Speaker 10: in twenty twenty five. Is Boeing sort of pulled in

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Speaker 10: a bunch of those orders. I think if you're an airline,

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Speaker 10: you know, and you're sort of fleet planning, when you

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Speaker 10: have backlogs that are ten years large for the for

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Speaker 10: the most important airplanes, for the narrow bodies, you kind

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Speaker 10: of got to be sort of in the order mode,

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Speaker 10: you know, every year or so many years, sort of

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Speaker 10: tapping up orders to make sure that you have airplane

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Speaker 10: is coming regularly as either you're expanding or things leaving

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Speaker 10: your fleet. So good to see Alaska do it again.

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Speaker 10: We think Boeing a lot of Boeing customers caught up

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Speaker 10: last year. This year probably a decent order year as

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Speaker 10: well as that catchup continues for Boeing. And this was

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Speaker 10: a core customer for Boeing. Alaska has been a core

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Speaker 10: Boeing flyer. They recently bought Hawaiian that added a bunch

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Speaker 10: of Airbus aircraft to its fleet, not a lot, but

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Speaker 10: a bunch of them, a handful of them, actually more

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Speaker 10: than a handful of twenties or thirties. And I think

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Speaker 10: another indicator that they've kept this Alaska have kept the

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Speaker 10: Alaska Airlines as a core customer, and I would see

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Speaker 10: them kind of going to a more pure Boeing fleet

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Speaker 10: in the future as they ease out some of those

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Speaker 10: Airbus aircraft.

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Speaker 2: It seems like a big order for Alaska. Is this

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Speaker 2: signal any change in strategy or what's going on there?

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Speaker 10: Well, I think it's pretty interesting, right Alaska they're seven

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Speaker 10: eighty seven dash. They think DASH tens altering when they

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Speaker 10: buy them. With the biggest seven eighty seven, they've got

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Speaker 10: an order for fi of them. Alaska traditionally had been

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Speaker 10: just a narrow body kind of US but really West

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Speaker 10: Coast focused airline. Since they bought Hawaiian, they've added international routes.

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Speaker 10: Clearly they added Hawaii Hawaii Hawaiian had routes into Asia

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Speaker 10: where there's a fair amount of demand for Hawaii. Alaska

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Speaker 10: looks to be trying to grow into a global airline.

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Speaker 10: They've got European service now too, So this is I

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Speaker 10: think a continuation of that push by Alaska to be

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Speaker 10: what it wants to be when it grows up. I

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Speaker 10: guess which is going to be maybe another one of

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Speaker 10: the big, big US full service carricers.

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Speaker 2: Is there room, George, do you think for another US

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Speaker 2: full service carrier?

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Speaker 10: I think if you do it well, there probably is, right.

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Speaker 10: I think, look, got you got Southwest coming as well.

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Speaker 10: Southwest is adding premium seating. They're already pretty.

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Speaker 7: Large in the US.

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Speaker 10: They don't have much international, but Southwest is definitely a

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Speaker 10: force to be reckoned with. But they're leaving the old

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Speaker 10: world where they were very much a pure fleet and

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Speaker 10: they could control costs well, going again into the you know,

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Speaker 10: sort of premium and making their operations more complex. Alaska

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Speaker 10: kind of come in the other way. They already have

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Speaker 10: premium now trying to go global. I mean, I think

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Speaker 10: going back to Alaska, they've got to figure out what

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Speaker 10: they want to be when they grow up, because I

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Speaker 10: don't think they can survive just as a largely West

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Speaker 10: coast airline. I think Hawaiian was the beginning of that

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Speaker 10: expansion strategy, which included long all this, uh, these following

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Speaker 10: orders I think reinforced to me that's the direction they're going.

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Speaker 10: They're going for a global airline.

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Speaker 7: You know it's going to.

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Speaker 10: Take a while to get there, but that's what they're

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Speaker 10: going for.

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Speaker 2: Would regulators ever allow, you know, the combination of all

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Speaker 2: Alaskan Southwest for example.

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Speaker 10: You know, that's to me, I think anytime you get

441
00:21:52,680 --> 00:21:56,119
Speaker 10: some of the big carriers involved in buying somebody, I

442
00:21:56,119 --> 00:21:57,160
Speaker 10: think it gets difficult.

443
00:21:58,320 --> 00:21:59,720
Speaker 7: I think it's gonna I think it would be hard.

444
00:22:00,000 --> 00:22:00,639
Speaker 7: I think it would be hard.

445
00:22:00,680 --> 00:22:02,399
Speaker 10: I think Alaska I had to look at something maybe

446
00:22:02,880 --> 00:22:05,960
Speaker 10: smaller or you know, Southwest. I think would be difficult

447
00:22:06,000 --> 00:22:08,679
Speaker 10: to do an acquisition, maybe a very small acquisition. But

448
00:22:08,720 --> 00:22:11,479
Speaker 10: if Alaska's getting together with somebody, I think it's kind

449
00:22:11,520 --> 00:22:12,640
Speaker 10: of jet blue and down.

450
00:22:13,400 --> 00:22:15,639
Speaker 2: What do you think here of just in twenty twenty

451
00:22:15,640 --> 00:22:17,400
Speaker 2: six air traffic?

452
00:22:17,480 --> 00:22:19,280
Speaker 3: Air travel? How do you think that's going to shape

453
00:22:19,320 --> 00:22:19,800
Speaker 3: up this year?

454
00:22:20,440 --> 00:22:23,240
Speaker 10: Yeah, So we see a lot of additions to premium

455
00:22:23,680 --> 00:22:27,400
Speaker 10: to premium carriers, and we see carriers adding premium seats

456
00:22:27,400 --> 00:22:30,520
Speaker 10: that weren't traditionally premium carriers. So to us, it feels

457
00:22:30,560 --> 00:22:34,080
Speaker 10: like premium could be under a bit of pressure as

458
00:22:34,080 --> 00:22:36,359
Speaker 10: we get into the into the new year or twenty

459
00:22:36,359 --> 00:22:38,399
Speaker 10: twenty six here because it looks like a lot of

460
00:22:38,440 --> 00:22:40,879
Speaker 10: people go in that direction. That's where that's where the

461
00:22:40,960 --> 00:22:45,960
Speaker 10: earnings have been driven lately. Loyalty programs super important. Basic economy.

462
00:22:45,960 --> 00:22:49,960
Speaker 10: World looks like it's starting to right size. Things could

463
00:22:49,960 --> 00:22:51,400
Speaker 10: get better, but it will take a little time.

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00:22:51,440 --> 00:22:51,720
Speaker 4: I think.

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