WEBVTT - Warner Bros. Rejects Latest Paramount Bid, Favoring Netflix 0:00:02.720 --> 0:00:10.559 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.600 --> 0:00:14.560 Bloomberg Intelligence podcast. Catch us live weekdays at ten am 0:00:14.600 --> 0:00:17.840 Eastern on Apple Coarclay, and Android Auto with the Bloomberg 0:00:17.920 --> 0:00:21.040 Business App. Listen on demand wherever you get your podcasts, 0:00:21.360 --> 0:00:23.080 or watch us live on YouTube. 0:00:23.960 --> 0:00:26.720 All Right, the media MN a trade that just won't 0:00:26.760 --> 0:00:30.240 go away. Warner Brothers Discovery says an amended takeover offer 0:00:30.280 --> 0:00:34.400 from Paramounts Guidance is inferior to its deal with Netflix 0:00:34.440 --> 0:00:37.639 and urges shareholders not to tender their shares. I don't 0:00:37.680 --> 0:00:39.400 know what's going on here, people, but our next guest 0:00:39.400 --> 0:00:42.600 does Keith wrong, Anathan. She is the media analyst for 0:00:42.840 --> 0:00:47.240 Bloomberg Intelligence here. Actually, Keith, I thought we'd have something 0:00:47.280 --> 0:00:50.360 done by now. I mean, these offers are pretty clear. 0:00:51.440 --> 0:00:53.320 The value seemed kind of similar to me. 0:00:54.280 --> 0:00:55.680 What do you think's going on here? 0:00:56.760 --> 0:00:56.960 Yeah? 0:00:57.000 --> 0:00:59.680 So this time what Warner Brothers is saying, in addition 0:01:00.040 --> 0:01:03.200 to the fact that the offer is actually inadequate, this 0:01:03.280 --> 0:01:04.840 is what they said the very first time when they 0:01:04.920 --> 0:01:09.720 rejected this thirty dollars bid from paramount You know, they 0:01:09.720 --> 0:01:13.160 obviously wanted the personal guarantee from Larry Ellison, which they got. 0:01:13.360 --> 0:01:16.399 They wanted, you know, paramount to raise its termination fee 0:01:16.400 --> 0:01:19.240 to five point eight billion to match Netflix that also 0:01:19.240 --> 0:01:21.919 they got. But now they're saying that they actually really 0:01:22.000 --> 0:01:25.679 do need, you know, a sweetened bid, So they cite 0:01:25.760 --> 0:01:28.679 a number there. They say that if they had to 0:01:28.760 --> 0:01:32.480 terminate their agreement with Netflix, they will also incur you know, 0:01:32.480 --> 0:01:34.800 obviously they have to pay the termination fee, plus there's 0:01:34.800 --> 0:01:37.280 going to be significant financing costs, so all of that 0:01:37.319 --> 0:01:40.800 comes out about one dollars one dollar and eighty cents, 0:01:41.040 --> 0:01:44.080 close to one seventy nine or one eighty a share, 0:01:44.360 --> 0:01:46.160 So they obviously need to be compensated for that. So 0:01:46.160 --> 0:01:49.720 basically I think, you know, they do need a sweetened offer. 0:01:49.760 --> 0:01:52.400 And the big thing that they highlight this time around 0:01:52.560 --> 0:01:56.000 is the amount of debt, so they actually call this 0:01:56.160 --> 0:02:00.560 a leveraged buyout, probably the biggest one in the history 0:02:00.600 --> 0:02:03.440 of M and A, and so say that, you know, 0:02:03.480 --> 0:02:06.680 it just presents too many risks and too many uncertainties 0:02:07.560 --> 0:02:10.120 and is definitely inferior to the Netflix offer. 0:02:10.280 --> 0:02:12.760 Right, the conclusion that it has drawn and what it's 0:02:12.800 --> 0:02:17.320 recommending to shareholders remains the same, which is go with Netflix's. 0:02:17.560 --> 0:02:20.440 The Netflix bid having said that, what does it mean 0:02:20.520 --> 0:02:24.360 that Warner Brothers Discovery wrote this letter to shareholders? Do 0:02:24.400 --> 0:02:26.840 we get the sense that shareholders are tendering shares to 0:02:26.880 --> 0:02:27.400 the paramount? 0:02:29.040 --> 0:02:32.280 Not so from what we've heard. You know, when it 0:02:32.320 --> 0:02:36.440 was last reported Scarlett, about five hundred thousand shares were 0:02:36.480 --> 0:02:39.800 tendered at that thirty dollars price. Remember we have about 0:02:39.840 --> 0:02:44.240 two point six billion, so we're really very very long 0:02:44.280 --> 0:02:48.320 ways off. So you know, I think shareholders definitely expect 0:02:48.680 --> 0:02:51.240 the price to go up. They do, you know, think 0:02:51.280 --> 0:02:53.040 that there is going to be a bidding war. The 0:02:53.120 --> 0:02:55.959 number out there on the street is that David Zaslav 0:02:56.120 --> 0:02:59.000 is looking for thirty four dollars, as you know, the 0:02:59.040 --> 0:03:02.800 final offer which he will sign this his company away 0:03:03.160 --> 0:03:06.040 to Paramount. I'm not sure whether you know Paramount is 0:03:06.080 --> 0:03:09.400 actually going to raise their offer, but that that is 0:03:09.440 --> 0:03:11.480 really the number that he's looking for. And we know him. 0:03:11.520 --> 0:03:14.239 He's he's really a master craftsman when it comes to 0:03:14.240 --> 0:03:16.880 to getting the best deal for his company. So again 0:03:17.280 --> 0:03:18.320 it's it's a way and watch. 0:03:18.600 --> 0:03:20.760 We used to call that the final final offer. This 0:03:20.800 --> 0:03:23.440 is our final final We're not we're not getting any. 0:03:23.120 --> 0:03:24.799 So final that we need to say twice. 0:03:24.520 --> 0:03:26.240 Exactly, Githy. 0:03:26.280 --> 0:03:28.960 We have not heard really too much from Netflix, have we. 0:03:30.240 --> 0:03:33.400 So all on Netflix said today Paul was after you know, 0:03:33.440 --> 0:03:35.920 Warner Brothers Discovery put out that letter, was you know, 0:03:35.960 --> 0:03:38.080 they said, yes, we continue to you know, work with 0:03:38.120 --> 0:03:41.480 Warner Brothers. We filed, we're working with the anti trust authorities, 0:03:42.320 --> 0:03:44.520 you know, we're working with the regulators, and we hope 0:03:44.520 --> 0:03:46.960 to get you know, the deal down. So everything kind 0:03:47.000 --> 0:03:50.960 of proceeding as expected from from the Netflix management team. 0:03:51.560 --> 0:03:53.560 You mentioned thirty four dollars a share is what David 0:03:53.640 --> 0:03:57.160 Zaslov is really eyeing. Is there any reason to think 0:03:57.160 --> 0:03:58.480 Netflix will raise its offer. 0:04:00.120 --> 0:04:03.920 Netflix needs to raise its offer, Scarlett, only if Paramount 0:04:04.280 --> 0:04:06.920 comes back with a sweetened bid, And we do think 0:04:06.920 --> 0:04:10.120 that they actually will raise their offer. They really believe 0:04:10.200 --> 0:04:13.360 even though the you know, the market price reaction obviously 0:04:13.440 --> 0:04:16.160 has been very negative to this whole Netflix deal, just 0:04:16.240 --> 0:04:18.160 kind of given that it really kind of complicates a 0:04:18.240 --> 0:04:21.080 very clean narrative. I think Netflix really believes that they're 0:04:21.080 --> 0:04:23.400 doing this, you know, in the long in the long 0:04:23.440 --> 0:04:26.000 they're playing the long game here. You know, this is 0:04:26.040 --> 0:04:28.960 a great collection of assets. Again, it's not just the 0:04:29.000 --> 0:04:31.040 cost of doing the deal. It's the cost of not 0:04:31.080 --> 0:04:33.080 doing the deal, and they obviously do not want to 0:04:33.120 --> 0:04:35.599 strengthen their competitors. They believe this is a great collection 0:04:35.640 --> 0:04:38.400 of assets that gives them, you know, tremendous value over many, 0:04:38.400 --> 0:04:40.960 many years to come. So I absolutely think they will 0:04:41.040 --> 0:04:43.279 raise the price, but the first move has to be 0:04:43.400 --> 0:04:44.080 from Paramount. 0:04:44.839 --> 0:04:47.520 GITHA part of the Warner Brothers discovery plan before this 0:04:47.600 --> 0:04:49.880 offer was it was to spin out their cable networks. 0:04:49.880 --> 0:04:53.520 And that's exactly what Compcast did several days ago, spinning 0:04:53.560 --> 0:04:56.320 out its cable networks. The company new companies called Versant 0:04:56.400 --> 0:04:59.800 Media vs NT. That thing is traded off about twenty 0:05:00.760 --> 0:05:03.400 just in the last few days. Man, what does that 0:05:03.400 --> 0:05:06.160 tell you about the cable network business and maybe how 0:05:06.200 --> 0:05:07.240 it might affect these bids. 0:05:08.480 --> 0:05:12.280 Yeah, it's it's really bleak. And so this actually strengthens 0:05:12.279 --> 0:05:14.720 the case for Paramount. This is exactly what they were saying. 0:05:14.720 --> 0:05:17.200 They were saying, let's buy this whole thing, because you 0:05:17.200 --> 0:05:19.440 don't know where this, you know, the global networks business 0:05:19.440 --> 0:05:22.359 and the TV networks is going to actually trade and 0:05:22.440 --> 0:05:25.760 here we go. Versun is actually just proving their point. 0:05:25.880 --> 0:05:28.360 So does not really bode well for Warner Brothers. But 0:05:28.440 --> 0:05:30.800 again I think still Warner Brothers will continue to have 0:05:30.800 --> 0:05:32.760 to have the upper hand because again they can argue 0:05:32.800 --> 0:05:36.480 that their cable networks, again a slightly different business, much 0:05:36.600 --> 0:05:39.560 larger in scale compared to the version properties, has an 0:05:39.600 --> 0:05:44.200 international footprint. But again the writing is on the wall, Paula. 0:05:44.360 --> 0:05:46.400 As you've said many times, I mean that the TV 0:05:46.480 --> 0:05:49.920 network business is bleeding, not a slow death anymore. This 0:05:50.040 --> 0:05:51.880 is really happening fast and furious. 0:05:53.520 --> 0:05:56.599 Stay with us. More from Bloomberg Intelligence coming up after this. 0:06:00.240 --> 0:06:03.919 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:06:04.000 --> 0:06:07.400 weekdays at ten am Eastern on Applecarplay and Android Auto 0:06:07.480 --> 0:06:10.560 with the Bloomberg Business app. Listen on demand wherever you 0:06:10.600 --> 0:06:13.600 get your podcasts, or watch us live on YouTube. 0:06:14.760 --> 0:06:19.360 Nvidia CEO Jensen Wang says the artificial intelligence industry always 0:06:19.440 --> 0:06:22.440 needs more energy. On the sidelines of the annual Consumer 0:06:22.600 --> 0:06:26.880 Tech Events, cees Jensen Wang and Siemens CEO roll On 0:06:27.080 --> 0:06:31.839 Bush spoke exclusively with Bloomberg's Ed Ludlow on their AI partnership. 0:06:32.400 --> 0:06:37.640 From Hopper to Blackwell, we increased energy efficiency by tenx. 0:06:38.120 --> 0:06:43.040 From Blackwell to Reuben, we increased energy efficiency again by tenx. 0:06:43.720 --> 0:06:48.000 And that translates directly to our customers revenues because in 0:06:48.040 --> 0:06:53.240 the case of ANAI factory, whatever factory size you have, 0:06:53.320 --> 0:06:54.440 you're limited by the power. 0:06:55.320 --> 0:06:55.640 All Right. 0:06:55.800 --> 0:06:57.159 That was Jensen Wang. 0:06:57.560 --> 0:07:00.400 He is head of Nvidia and Siemens COO role On Bush, 0:07:00.800 --> 0:07:03.280 speaking exclusively with Bloomberg's ed La Low of the AI 0:07:03.360 --> 0:07:06.919 Partnership AD at the Consumer Electronics Show in Las Vegas. 0:07:07.000 --> 0:07:09.720 Let's get the latest reporting from Vegas. Caroline Hydroids is 0:07:09.760 --> 0:07:12.640 she's out there. She's the b Tech co anchor for 0:07:12.720 --> 0:07:16.560 a Bloomberg News. Caroline, it just seems like, you know, 0:07:16.600 --> 0:07:20.280 you're listening to mister Wog, mister Bush. The need for 0:07:20.480 --> 0:07:24.960 AI and the spending on AI shows no real signs 0:07:24.960 --> 0:07:26.040 of slowing yet. 0:07:26.080 --> 0:07:27.360 Is that the vibe you're getting out there? 0:07:30.440 --> 0:07:32.320 That is very much the vibe we're getting. We heard 0:07:32.360 --> 0:07:35.119 from Lisa Su yesterday as well, CEO of AMD, saying 0:07:35.400 --> 0:07:37.760 in the next few years, you're going to have to 0:07:37.880 --> 0:07:41.000 one hundred x the amount of compute that we currently have. 0:07:41.400 --> 0:07:43.640 Has stock still falling today, I might add, and so 0:07:43.680 --> 0:07:47.760 many people may be factoring in this extraordinary scale, which 0:07:47.800 --> 0:07:50.000 we'd likely to see the compute needs still ramp up. 0:07:50.080 --> 0:07:52.520 And it's having a marked effect on certain companies stocks 0:07:52.520 --> 0:07:54.520 like I'm sure you were covering yesterday and into today 0:07:55.080 --> 0:07:57.880 sand Disc. It is up one thousand percent from its 0:07:58.000 --> 0:08:00.600 lows back in April, but it's almost fifty in the 0:08:00.600 --> 0:08:02.800 first few trading days of the year. This is all 0:08:02.840 --> 0:08:06.320 about a shortage in memory, memory storage. We are seeing 0:08:06.400 --> 0:08:09.239 still the fact that we're worrying about energy, as Jentsen says, 0:08:09.440 --> 0:08:12.040 we're worrying about memory as you're seeing, impacting. 0:08:11.680 --> 0:08:12.760 Some Sung stock as well. 0:08:12.880 --> 0:08:15.840 We had a Somesung executive on the network yesterday saying, Nook, 0:08:15.840 --> 0:08:17.560 we're going to have to see a high con prices 0:08:17.600 --> 0:08:21.240 because supply is just so tight. And yet still people 0:08:21.320 --> 0:08:23.320 question whether we're in some sort of bubble. But all 0:08:23.320 --> 0:08:25.760 I'm hearing is the infrastructure just needs to get ever 0:08:25.800 --> 0:08:27.600 bigger and we kind of need to get on board 0:08:27.600 --> 0:08:27.800 with that. 0:08:28.120 --> 0:08:31.400 Yeah, speaking of memory chip makers, Micron the biggest US 0:08:31.480 --> 0:08:34.720 memory chip maker, jumping two hundred and forty percent last 0:08:34.840 --> 0:08:37.959 year and up about ten percent yesterday. So interesting example 0:08:38.000 --> 0:08:40.839 of that. So Caroline the Consumer Electronics show, Paul and 0:08:40.880 --> 0:08:42.880 I were reminiscing how once upon a time it met 0:08:42.920 --> 0:08:46.280 big screen TVs and other gadgets that you know, companies 0:08:46.360 --> 0:08:48.559 dreamt up but consumers may or may not want to 0:08:48.640 --> 0:08:51.800 sign on for. Is that still what's happening at the 0:08:51.800 --> 0:08:55.240 cees or has it turned into a high level discussion 0:08:55.360 --> 0:08:56.760 on chips and AI. 0:09:00.040 --> 0:09:03.400 I think they're managing to walk both sides. We're still 0:09:03.440 --> 0:09:08.120 seeing those big unveils and discussions coming from in video 0:09:08.200 --> 0:09:11.520 CEO from AMDCO, from Quilcom CEO. They're talking about what's 0:09:11.600 --> 0:09:15.440 inside these electronics or what's inside the compute that is 0:09:15.520 --> 0:09:18.360 needed to foster these electronics. But then you have Samsung, 0:09:18.400 --> 0:09:20.640 which is very much on the AI train with its chips, 0:09:20.720 --> 0:09:23.800 but also unveiling the latest, greatest Samsung frame or the 0:09:23.880 --> 0:09:26.760 latest TV that has you can see all around the 0:09:26.800 --> 0:09:28.679 curvature of it, or the fact that they are still 0:09:28.720 --> 0:09:30.160 trying to think about how your home is going to 0:09:30.200 --> 0:09:33.240 be connected, how your television is discussing, discussing with your 0:09:33.280 --> 0:09:35.360 oven as to whether or not the food is cooked, 0:09:35.360 --> 0:09:38.080 and you get in between messaging between the two. I 0:09:38.080 --> 0:09:40.360 mean there are companies that still continue to unveil. They're 0:09:40.360 --> 0:09:43.600 also the ludicrous. I mean there's lollipops that play music 0:09:43.600 --> 0:09:47.160 as you eat them, There's little toys, everything that seems 0:09:47.160 --> 0:09:50.160 to be about AI and about companionship is something that 0:09:50.240 --> 0:09:53.280 just seems to involve some sort of cuddly toy that 0:09:53.360 --> 0:09:55.719 talks to you. But apparently cute is the way in 0:09:55.760 --> 0:09:57.360 which we're going to go forward. But there are the 0:09:57.400 --> 0:10:00.280 vacuum cleaners, there's the massoles chairs. It's still very much 0:10:00.280 --> 0:10:03.760 has this idea of pushing the innovation forward. And the 0:10:03.760 --> 0:10:07.120 main thing, guys, I cannot walk without seeing a humanoid 0:10:07.160 --> 0:10:08.920 robot or some sort. So we're gonna have some big 0:10:09.000 --> 0:10:11.520 interviews a little bit later. We got Boston Robotics, for example, 0:10:11.679 --> 0:10:14.680 coming on the show, and that's really Boston Dynamics in fact, 0:10:14.800 --> 0:10:17.680 which has a huge new unveil of its latest humanoid. 0:10:18.200 --> 0:10:20.720 Stay with us. More from Bloomberg Intelligence coming up. 0:10:20.840 --> 0:10:21.360 Are for this. 0:10:25.200 --> 0:10:28.880 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:10:28.960 --> 0:10:31.679 weekdays at ten am. He's done on Apple, Cocklay and 0:10:31.679 --> 0:10:34.960 Android Otto with the Bloomberg Business app. Listen on demand 0:10:35.000 --> 0:10:39.000 wherever you get your podcasts, or watch us live on YouTube. 0:10:39.559 --> 0:10:40.920 Well, there have been lots of big games in the 0:10:41.000 --> 0:10:42.960 lead up to the Super Bowl, and of course there 0:10:43.040 --> 0:10:45.600 will continue to be as we head in that direction. 0:10:45.679 --> 0:10:48.560 So let's bring in Brian Eggers. He covers everything for us, 0:10:48.559 --> 0:10:53.160 from the gaming companies to the lodging companies to the 0:10:53.240 --> 0:10:56.160 cruise ship companies. See your gaming and lodging analysts here 0:10:56.160 --> 0:10:59.120 at Bloomberg Intelligence. And Brian, you and your team have 0:10:59.200 --> 0:11:02.520 done some work and how Draft Kings is positioning itself 0:11:02.559 --> 0:11:04.280 for the NFL playoffs. 0:11:04.720 --> 0:11:07.720 Yeah, so, DraftKings and Fandel, among other things, recently rolled 0:11:07.720 --> 0:11:10.280 out these prediction market apps which are separate from their 0:11:10.320 --> 0:11:11.040 sports books. 0:11:11.080 --> 0:11:12.120 And this is really to. 0:11:12.600 --> 0:11:15.040 Coldpeep our head on against call She and Robinhood and 0:11:15.080 --> 0:11:18.400 other of these financial firms that offer these event contracts 0:11:18.640 --> 0:11:19.600 in a number of states. 0:11:20.000 --> 0:11:20.640 How big is it? 0:11:20.679 --> 0:11:23.800 I'm hearing more and more about this prediction market market. 0:11:23.840 --> 0:11:24.559 How big is this that? 0:11:24.720 --> 0:11:26.720 I mean, this is potentially really large. 0:11:26.720 --> 0:11:28.240 I don't have numbers in front of me, But the 0:11:28.280 --> 0:11:30.319 key thing is that call She and Robin Hood are 0:11:30.320 --> 0:11:32.480 trying to do this in all fifty states. They're about 0:11:32.960 --> 0:11:36.560 a dozen states that either hold them cease and desist 0:11:36.720 --> 0:11:39.720 because they effectively are engaging in illegal sports betting according 0:11:39.800 --> 0:11:43.040 to the states, or a couple of states have warned DraftKings, 0:11:43.040 --> 0:11:44.200 fandled don't do the same thing. 0:11:44.240 --> 0:11:45.640 If you've got a sports book license. 0:11:46.120 --> 0:11:48.960 So what DraftKings and Fandal did is try to go 0:11:49.000 --> 0:11:51.720 into states with this product where they don't. 0:11:51.480 --> 0:11:52.520 Operate sports books. 0:11:52.559 --> 0:11:56.079 They can do prediction markets on politics or entertainment events 0:11:56.400 --> 0:11:59.840 in any state, but the real issue is with respective sports. 0:12:00.160 --> 0:12:01.440 That's where they limit themselves. 0:12:02.640 --> 0:12:04.480 Let me ask you dumb question, and maybe we don't 0:12:04.480 --> 0:12:07.040 know the answer to this yet. Who is the target 0:12:07.160 --> 0:12:12.640 audience for a sports prediction market versus a sports contract 0:12:12.720 --> 0:12:15.640 and in production market setting versus you know, just a 0:12:15.679 --> 0:12:18.120 regular parlay or simple bet. 0:12:17.920 --> 0:12:20.680 In recourse, the type of person in terms of the 0:12:20.720 --> 0:12:24.200 type of area or territory. Think about the fact that 0:12:24.240 --> 0:12:27.400 you've got mobile sports books in almost thirty states, with 0:12:27.440 --> 0:12:29.760 thirty some odd states Draftings, Fandel and twenty five of 0:12:29.800 --> 0:12:33.120 them other states, big states like Texas and California that 0:12:33.240 --> 0:12:36.360 don't have legal sports books in sports betting, that's a 0:12:36.400 --> 0:12:40.320 logical market for call She and Robin the do go 0:12:40.360 --> 0:12:42.920 in there and say you can do these prediction markets 0:12:43.440 --> 0:12:46.280 and engage in that even though sports betting isn't active 0:12:46.280 --> 0:12:47.120 and legal in the state. 0:12:47.360 --> 0:12:48.640 That's really the big. 0:12:48.800 --> 0:12:51.080 So what would Texas and a Florida say about that? 0:12:51.160 --> 0:12:51.319 Right? 0:12:51.400 --> 0:12:53.760 So, without going through every state. 0:12:53.880 --> 0:12:56.600 There about a dozen states that either specifically told call 0:12:56.679 --> 0:13:00.560 she and poly Market or Robinhood ye see and assist 0:13:00.640 --> 0:13:03.600 on do this. A few others have issued Wetter's warning 0:13:03.720 --> 0:13:07.320 Draftings of Fandel do not offer a sports prediction market 0:13:07.360 --> 0:13:09.199 in a state where you've got a sports bet license. 0:13:09.520 --> 0:13:12.440 So what Fandom and Draftings did is you know, seventeen 0:13:12.480 --> 0:13:16.080 states for Draftings five or Fandel. They're offering this product 0:13:16.120 --> 0:13:18.400 in states where they don't have sports books, and we're 0:13:18.400 --> 0:13:20.120 sports betting isn't quote legal. 0:13:21.120 --> 0:13:23.959 Who regulates the sports markets, So it's confused. 0:13:23.960 --> 0:13:27.079 It's very confusing because the sports books are regulated by 0:13:27.080 --> 0:13:30.679 state gaming regulatory authorities. The prediction markets are regulated by 0:13:30.679 --> 0:13:34.280 the CFTC, so it's state versus federal. And that's been 0:13:34.280 --> 0:13:36.760 the argument of Kolchi that you know, we're a financial 0:13:36.880 --> 0:13:40.920 futures contract, we're not sports betting. We are federally regulated. 0:13:41.200 --> 0:13:43.040 The states have pushed back and said no, this is 0:13:43.080 --> 0:13:46.520 a form of effectively on licened sports betting, and ultimately 0:13:46.559 --> 0:13:48.520 I think this heads to the Supreme Court. That's certainly 0:13:48.520 --> 0:13:50.800 in the view of Eliott Stein or litigation analyst. 0:13:51.720 --> 0:13:55.760 So what are the casino companies say these days? What 0:13:55.800 --> 0:13:58.199 do they say, does that impact their sports book and 0:13:58.240 --> 0:13:59.000 their sports betting? 0:13:59.040 --> 0:14:01.920 And on the margin, to the extent that MGM and 0:14:01.960 --> 0:14:05.160 Caesars have mobile products, it's very possible to look into 0:14:05.160 --> 0:14:08.200 this type of product as well. Again in those states 0:14:08.240 --> 0:14:10.120 where sports beinning isn't legal, so. 0:14:10.000 --> 0:14:11.280 Everyone's going to be think about it. 0:14:11.360 --> 0:14:15.160 And the real other other wrinkle is Texas and California 0:14:15.240 --> 0:14:18.120 once they realize we may not have sports betting. What 0:14:18.160 --> 0:14:20.520 we have effectively sports betters. If you believe that's what 0:14:20.800 --> 0:14:23.400 prediction markets are, we might as well legalize it. And 0:14:23.840 --> 0:14:27.120 so there's a whole bunch of ramifications to this. 0:14:27.320 --> 0:14:31.720 What about Native American tribes in states like California in Connecticut, 0:14:32.000 --> 0:14:32.680 where do they fit it? 0:14:33.520 --> 0:14:37.520 I mean in California, although sports betting isn't legal in California, 0:14:37.960 --> 0:14:42.720 the tribes have themselves challenged and through legally the Whites 0:14:42.760 --> 0:14:45.000 of KAlSi and Robin Hood I don't remember which one. 0:14:45.480 --> 0:14:48.160 So you know to the extent that tribes have opportunities 0:14:48.200 --> 0:14:51.680 to operate sports books, which effectively Florida has the Seminal 0:14:51.760 --> 0:14:56.359 Tribe operating operating hard rock betting site even though draftings 0:14:56.520 --> 0:14:59.240 and or are not involved. So the tribes very much, 0:14:59.280 --> 0:15:02.640 will care to the extent that this is effectively a 0:15:02.680 --> 0:15:05.400 competing product as consumers might perceive it. 0:15:06.240 --> 0:15:09.280 So is betting just going crazy the total dollar not. 0:15:09.880 --> 0:15:15.040 I see kids, high school kids having conversations in detail 0:15:15.280 --> 0:15:19.000 showing a level of expertise which really blows me away. 0:15:19.760 --> 0:15:23.320 Kids high school kids, and I don't know, it just 0:15:23.320 --> 0:15:24.520 doesn't feel it's surprising. 0:15:24.560 --> 0:15:27.200 And it also gets very problematic when you have college 0:15:27.280 --> 0:15:28.440 kids college games. 0:15:28.960 --> 0:15:30.240 Yeh, college players. 0:15:30.320 --> 0:15:33.320 So but yeah, there's a big national draw to that 0:15:34.000 --> 0:15:36.360 draw to this, and I think the real I don't 0:15:36.360 --> 0:15:40.440 think draftings of fand will get as affected as some 0:15:40.600 --> 0:15:43.560 might fear in states where they've got a sports book, 0:15:43.600 --> 0:15:45.840 but in states where they can't operate a sports book. 0:15:45.880 --> 0:15:49.520 But Kyll she and Robinhood and Polymarket others are offering 0:15:49.520 --> 0:15:53.240 prediction markets. That's where I think they see risk as 0:15:53.280 --> 0:15:54.200 well as opportunity. 0:15:54.600 --> 0:15:58.080 Brian, what about the sports leagues, the NFL, the NBA, 0:15:58.360 --> 0:16:01.640 the NHL, the MLB. How do they fit into all this? 0:16:01.760 --> 0:16:03.720 I mean, are they're going all in with the prediction markets? 0:16:03.760 --> 0:16:04.440 Well, I think so. 0:16:04.480 --> 0:16:08.720 They're watching obviously with interests. I mean, the major principles 0:16:08.720 --> 0:16:12.760 in terms of where there's heads are state regulators versus 0:16:12.840 --> 0:16:16.360 federal regulators. State's issuing in some cases seas and desist orders. 0:16:16.360 --> 0:16:16.440 It. 0:16:16.520 --> 0:16:20.000 Ultimately, because there's a lot of ongoing court cases, many 0:16:20.040 --> 0:16:23.880 on appeal, the Supreme Court is the logical destination for 0:16:24.080 --> 0:16:25.080 the legality of this. 0:16:25.200 --> 0:16:27.680 But I mean that's the good reason. Maybe years away, 0:16:28.080 --> 0:16:29.320 depends on the urgency. 0:16:29.400 --> 0:16:32.320 I know Elliott Stein believes that could happen potentially as 0:16:32.360 --> 0:16:34.440 early as twenty twenty six, that there's a decision, but 0:16:34.480 --> 0:16:37.680 we don't know. But ultimately, I think this it needs 0:16:37.680 --> 0:16:41.360 to be qualified and resolved as to who has jurisdiction here. 0:16:41.760 --> 0:16:43.160 It is crazy the amount. 0:16:43.600 --> 0:16:45.960 I mean just a few years ago, I mean, you 0:16:45.960 --> 0:16:47.960 wouldn't even have thought this, But now you get sports 0:16:48.000 --> 0:16:48.960 teams in Vegas. 0:16:49.080 --> 0:16:51.400 Yeah, I mean, yeah, so they I think my way 0:16:51.440 --> 0:16:53.840 to start this is the leading up to the presidential election. 0:16:53.920 --> 0:16:57.440 There was a lot of activity on one and polymarket 0:16:57.480 --> 0:16:59.520 about who we win the election, and that kind of 0:16:59.600 --> 0:17:02.080 kicked off awful water popular interest in this, which means 0:17:02.120 --> 0:17:05.959 that's when they became involved in sports prediction markets actively 0:17:06.080 --> 0:17:06.640 a year ago. 0:17:07.800 --> 0:17:10.960 Stay with us. More from Bloomberg Intelligence coming up after this. 0:17:14.840 --> 0:17:18.560 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:17:18.640 --> 0:17:21.679 weekdays at ten am Eastern on Apple, Cocklay and Android 0:17:21.720 --> 0:17:25.040 Auto with the Bloomberg Business App. Listen on demand wherever 0:17:25.080 --> 0:17:28.200 you get your podcasts, or watch us live on YouTube. 0:17:28.840 --> 0:17:30.119 We'll get a story here today. 0:17:30.480 --> 0:17:34.919 Alaska Airline ordering Boeing Company aircraft including one hundred and 0:17:34.960 --> 0:17:38.680 five narrow body seven thirty seven Max ten models and 0:17:38.840 --> 0:17:42.080 five Trip seven eighty seven wide body aircraft. So good 0:17:42.160 --> 0:17:43.920 day for Boeing. This stocks up about eight tens to 0:17:43.960 --> 0:17:46.879 one percent. Stocks up about thirty four percent over the 0:17:46.960 --> 0:17:50.080 trailing twelve months. George Ferguson joins us here senior Aerospace, 0:17:50.119 --> 0:17:55.520 defense and airlines analyts for Bloomberg Intelligence. George A, is 0:17:55.520 --> 0:17:58.240 this this seems like a nice day, a good order 0:17:58.400 --> 0:17:59.080 for Boeing. 0:17:59.359 --> 0:18:00.920 How are they doing out in the marketplace? 0:18:01.600 --> 0:18:03.400 Yeah, I think it's a It was a nice kickoff 0:18:03.400 --> 0:18:07.160 to the year. As far as orders look through, we've 0:18:07.200 --> 0:18:10.040 tracked them through November of last year. We get to 0:18:10.080 --> 0:18:14.439 see December order and deliveries from Boeing or Airbus. But 0:18:14.560 --> 0:18:17.480 through November of last year, Boeing was beating Airbus in 0:18:17.560 --> 0:18:21.399 the order game for the year, and so you know, 0:18:21.440 --> 0:18:24.439 we had sort of expected this or there were some 0:18:24.640 --> 0:18:26.879 core customers. I think that we're probably sitting on the 0:18:26.920 --> 0:18:30.040 sideline watching the sea if Boeing was going to get 0:18:30.040 --> 0:18:33.679 its troubles behind it before it placed orders, and so 0:18:33.720 --> 0:18:35.720 we saw a bit of a bounce back last year 0:18:36.720 --> 0:18:39.280 in twenty twenty five. Is Boeing sort of pulled in 0:18:39.320 --> 0:18:41.760 a bunch of those orders. I think if you're an airline, 0:18:42.480 --> 0:18:44.800 you know, and you're sort of fleet planning, when you 0:18:44.800 --> 0:18:47.800 have backlogs that are ten years large for the for 0:18:47.840 --> 0:18:50.600 the most important airplanes, for the narrow bodies, you kind 0:18:50.600 --> 0:18:53.680 of got to be sort of in the order mode, 0:18:53.920 --> 0:18:57.199 you know, every year or so many years, sort of 0:18:57.240 --> 0:19:00.000 tapping up orders to make sure that you have airplane 0:19:00.080 --> 0:19:03.040 is coming regularly as either you're expanding or things leaving 0:19:03.040 --> 0:19:06.280 your fleet. So good to see Alaska do it again. 0:19:06.320 --> 0:19:08.280 We think Boeing a lot of Boeing customers caught up 0:19:08.359 --> 0:19:12.119 last year. This year probably a decent order year as 0:19:12.160 --> 0:19:15.480 well as that catchup continues for Boeing. And this was 0:19:15.520 --> 0:19:18.760 a core customer for Boeing. Alaska has been a core 0:19:19.280 --> 0:19:22.480 Boeing flyer. They recently bought Hawaiian that added a bunch 0:19:22.480 --> 0:19:25.119 of Airbus aircraft to its fleet, not a lot, but 0:19:25.200 --> 0:19:27.280 a bunch of them, a handful of them, actually more 0:19:27.320 --> 0:19:30.720 than a handful of twenties or thirties. And I think 0:19:30.760 --> 0:19:34.320 another indicator that they've kept this Alaska have kept the 0:19:34.359 --> 0:19:37.800 Alaska Airlines as a core customer, and I would see 0:19:37.800 --> 0:19:40.760 them kind of going to a more pure Boeing fleet 0:19:40.760 --> 0:19:43.000 in the future as they ease out some of those 0:19:43.000 --> 0:19:43.920 Airbus aircraft. 0:19:44.080 --> 0:19:46.399 It seems like a big order for Alaska. Is this 0:19:46.480 --> 0:19:50.080 signal any change in strategy or what's going on there? 0:19:50.680 --> 0:19:53.840