WEBVTT - Disney's Streaming Success, Tech Eyes More IPOs in '25 0:00:01.280 --> 0:00:04.800 We're from Mahard where Innovation of Money and power Collie 0:00:05.040 --> 0:00:09.720 in Silicon Vallet NBN. This is Bloomberg Technology with Caroline 0:00:09.800 --> 0:00:11.600 Hyde and Ed Ludlow. 0:00:25.400 --> 0:00:27.800 Live from New York and San Francisco. This is Bloomberg 0:00:27.840 --> 0:00:31.720 Technology coming up. Disney shares pop on profit promises out 0:00:31.760 --> 0:00:33.080 to twenty twenty seven. 0:00:33.360 --> 0:00:35.280 We sit down with the company's CFO. 0:00:36.040 --> 0:00:39.680 Plus, Meta gets its first ever penalty for EU antitrust 0:00:39.760 --> 0:00:43.280 violations related to Facebook marketplace service. 0:00:43.320 --> 0:00:45.720 And Thrive Capital as in talks to acquire a one 0:00:45.880 --> 0:00:49.640 billion dollar stake in analytics software maker Data Bricks' value 0:00:49.680 --> 0:00:51.839 the startup fifty five billion dollars. 0:00:52.320 --> 0:00:54.560 First, we get back to the public markets and what 0:00:54.600 --> 0:00:55.280 are you looking at? 0:00:56.000 --> 0:00:58.320 Yeah, straight to our top story, and that is Disney 0:00:58.360 --> 0:01:01.640 shares up almost nine percent session highs but on track 0:01:01.680 --> 0:01:04.120 for this biggest jump since February of this year. A 0:01:04.280 --> 0:01:07.240 strong performance in the court are gone. They beat analysts 0:01:07.319 --> 0:01:10.440 expectations and then told us that for the next three 0:01:10.520 --> 0:01:13.759 years they will see earning's growth. Disney does not do 0:01:13.880 --> 0:01:17.319 forecasts like that. It's strength in the streaming business. Movies 0:01:17.560 --> 0:01:19.959 are getting better, but there are some areas of weakness. 0:01:20.319 --> 0:01:23.679 Early today, Caroline and I spoke to Disney CFO Hugh Johnston, 0:01:23.880 --> 0:01:26.679 and we discussed all of those parts of the House 0:01:26.680 --> 0:01:27.039 of Mouse. 0:01:27.120 --> 0:01:27.480 Isn't to this. 0:01:28.560 --> 0:01:31.759 If you look at the major investments that we've been 0:01:31.800 --> 0:01:34.360 making in the business over the last couple of years, 0:01:34.840 --> 0:01:37.759 number one is in the streaming business, and number two 0:01:37.840 --> 0:01:41.000 obviously is in the experiences business, so parks and cruises 0:01:41.360 --> 0:01:44.560 and the like. And as you've seen in the number 0:01:44.640 --> 0:01:47.680 is through twenty twenty four, you know, it really marked 0:01:47.680 --> 0:01:51.560 a pivot for the Walt Disney Company. The creativity is 0:01:51.600 --> 0:01:54.760 certainly very much back back to back billion dollar movies 0:01:54.800 --> 0:01:58.160 and a terrific slid for twenty five in addition to 0:01:58.280 --> 0:02:03.160 that fantastic workout of the TV studios with sixty Emmys, 0:02:03.600 --> 0:02:06.880 and that obviously feeds the flywheel of the Walt Disney Company, 0:02:06.920 --> 0:02:11.760 whether it's streaming or whether it's experiences including parks, consumer products, 0:02:11.800 --> 0:02:13.240 and of course the cruise ships. 0:02:13.280 --> 0:02:15.079 So given those. 0:02:14.880 --> 0:02:17.480 Investments that we've been making, and given that we now 0:02:17.520 --> 0:02:20.960 have good financial visibility into the returns on those investments, 0:02:21.280 --> 0:02:24.200 we felt like it was important to inform investors not 0:02:24.440 --> 0:02:27.040 just on how we were investing, but what they should 0:02:27.080 --> 0:02:29.800 expect in terms of the returns on those and with 0:02:29.919 --> 0:02:32.440 that visibility, we're confident that we can actually deliver. 0:02:33.440 --> 0:02:34.919 Here across the media sect. 0:02:35.720 --> 0:02:39.200 Your industry is getting better at being profitable in streaming, 0:02:39.280 --> 0:02:41.440 so that's where I want to go. Is this something 0:02:41.480 --> 0:02:44.239 that is kind of industry wide macro level factor is 0:02:44.280 --> 0:02:47.160 supporting you, or is this something that you've done in 0:02:47.200 --> 0:02:50.120 the last year specifically that's kind of cracked the formula 0:02:50.240 --> 0:02:51.720 for streaming at Disney. 0:02:52.440 --> 0:02:54.040 I think it's a combination of both. 0:02:54.680 --> 0:02:58.520 Streaming is certainly very much scale business, so as everyone 0:02:58.560 --> 0:03:01.799 gains more scale, obviously that that helps the industry overall. 0:03:02.840 --> 0:03:06.920 For us in particular, I think the combination of the 0:03:07.000 --> 0:03:10.960 terrific ip that we're putting into the service, the product 0:03:10.960 --> 0:03:14.160 improvements that we're making, and that we are intending to 0:03:14.200 --> 0:03:17.480 make with the new leader that we have on product, 0:03:17.520 --> 0:03:20.840 Adam Smith, who came over to us from YouTube, we 0:03:21.480 --> 0:03:25.040 see obviously a terrific future in terms of where streaming 0:03:25.160 --> 0:03:29.520 is going. You know, it's important to think about what 0:03:29.560 --> 0:03:33.280 do additional subscribers mean in terms of the streaming business. 0:03:33.560 --> 0:03:36.640 In many ways, streaming has the characteristics of a software business, 0:03:36.760 --> 0:03:40.160 where the incremental value of an additional subscriber is very 0:03:40.200 --> 0:03:43.360 high because the incremental cost to that incremental subscriber are 0:03:43.440 --> 0:03:43.880 very low. 0:03:43.960 --> 0:03:45.400 So we feel. 0:03:45.200 --> 0:03:48.520 Optimistic about as the industry is coming together, we're going 0:03:48.600 --> 0:03:52.680 to continue to both add subscribers and in addition to that, 0:03:53.120 --> 0:03:55.520 because of the value we're delivering with the great ip 0:03:55.720 --> 0:03:58.240 and the great product that we're putting into this service, 0:03:58.720 --> 0:04:00.880 we'll be able to take pricing as well. And that 0:04:01.000 --> 0:04:04.280 combined with good cost management that we have in place 0:04:04.280 --> 0:04:07.160 in terms of good disciplines on that business, we feel 0:04:07.240 --> 0:04:09.600 very optimistic about where streaming is going for us. 0:04:09.920 --> 0:04:12.720 You're also curving password sharing. How much of an impact 0:04:12.720 --> 0:04:13.160 will that make? 0:04:13.240 --> 0:04:14.840 You think it'll be a positive. 0:04:14.880 --> 0:04:17.799 It'll be gradual over time and strengthen from quarter to quarter, 0:04:17.839 --> 0:04:20.800 but we do think it'll be a positive impact on subscribers. 0:04:21.040 --> 0:04:24.760 I'm interested in the film studio and what bonus you're 0:04:24.760 --> 0:04:26.440 going to get from one or two, what bonus you're 0:04:26.440 --> 0:04:28.440 going to be getting from Mafasa the Lion King. 0:04:28.600 --> 0:04:30.760 How important has the investment been there? 0:04:31.520 --> 0:04:34.520 Well, I think it's quite important, and in many ways 0:04:34.560 --> 0:04:36.240 to talk about that, we ought to dial back a 0:04:36.240 --> 0:04:38.080 little bit to where we were a few years ago. 0:04:38.480 --> 0:04:40.560 You know, as we launch streaming and It's important to 0:04:40.560 --> 0:04:42.720 remember we've only been in the streaming business five years. 0:04:42.760 --> 0:04:45.360 This is a relatively nascent business for us in many ways, 0:04:45.360 --> 0:04:47.640 even though it's going to be quite profitable for us, 0:04:47.839 --> 0:04:49.600 or is quite profitable now, and it'll be even more 0:04:49.600 --> 0:04:52.839 profitable in the future. But as we think about where 0:04:52.839 --> 0:04:55.120 we were a few years ago, we were very much 0:04:55.160 --> 0:04:58.040 focused on creating a lot of quantity in order to 0:04:58.480 --> 0:05:02.800 fill the service with and as is often the case, 0:05:02.839 --> 0:05:06.159 when you push hard on quantity, sometimes quality isn't quite 0:05:06.240 --> 0:05:08.440 up to where you would like it to be. When 0:05:08.480 --> 0:05:11.000 Bob Aiger came back a couple of years ago, he 0:05:11.040 --> 0:05:14.320 talked about restoring creativity to the center of the company 0:05:14.800 --> 0:05:19.080 and reducing quantity and focusing on raising the bar on quality. 0:05:19.360 --> 0:05:22.040 Now we've been talking about that for really a year 0:05:22.120 --> 0:05:24.760 year and a half, but you saw that the impact 0:05:24.760 --> 0:05:26.960 of that, I think very much in twenty four with 0:05:27.680 --> 0:05:31.599 Inside Out two and Deadpool and Wolverine back to back 0:05:31.600 --> 0:05:35.160 billion dollar movies, is it's never been done before. And 0:05:35.160 --> 0:05:37.760 then on the TV side with Avid Elementary and The 0:05:37.760 --> 0:05:41.200 Bear and of course Showgun, you know, we had sixty Emmys. 0:05:41.600 --> 0:05:44.800 So I think that focus on quality is not something 0:05:44.880 --> 0:05:47.160 that's kind of a one time random thing, but in 0:05:47.160 --> 0:05:51.000 fact is a sustaining impact on the company. So as 0:05:51.040 --> 0:05:53.440 we think forward to the slate in twenty twenty five, 0:05:53.800 --> 0:05:57.159 whether it's mwana Iu or Mufasa the Lion King, or 0:05:57.240 --> 0:06:01.960 Lilo and Stitch or Avatar or Captain America, we're very 0:06:02.000 --> 0:06:04.760 optimistic that those movies are going to be big, big 0:06:04.839 --> 0:06:07.440 hits as well. We couldn't be more excited about them. 0:06:08.040 --> 0:06:11.039 So you've talked about the linear TV or live TV 0:06:11.200 --> 0:06:12.320 business almost. 0:06:11.960 --> 0:06:12.640 Like a hedge. 0:06:12.720 --> 0:06:15.560 I know you want to keep that audience. It's important 0:06:15.600 --> 0:06:19.640 to you, particularly the older demographic. But like many sports fans, 0:06:20.040 --> 0:06:23.000 I'm interested in the D two C launch on ESPN. 0:06:23.560 --> 0:06:26.040 How you think that that will kind of change your 0:06:26.279 --> 0:06:30.080 audience and customers' attitudes in how they pay for sports 0:06:30.120 --> 0:06:32.159 by sports, Well. 0:06:32.400 --> 0:06:36.000 The important thing I think about the ESPN Flagship launch 0:06:36.320 --> 0:06:39.159 Flagship is the project name that we use on that. 0:06:41.160 --> 0:06:43.080 The thing to think about it is it's not just 0:06:43.160 --> 0:06:46.680 another distribution channel. So it's not basically taking ESPN a 0:06:46.720 --> 0:06:49.479 lon as it exists and just putting it into streaming. 0:06:49.680 --> 0:06:51.760 It will have all of that content, to be clear, 0:06:52.200 --> 0:06:54.279 but in addition to that, it's really going to be 0:06:54.279 --> 0:06:57.520 a true digital experience in so many ways, So the 0:06:57.560 --> 0:07:01.560 ability to do e commerce, the ability to track fantasy, 0:07:02.000 --> 0:07:07.040 the ability to shape some of the ESPN broadcast products 0:07:07.080 --> 0:07:11.120 to your liking, the ability to do online vetting as 0:07:11.120 --> 0:07:14.440 a part of the product. It's a much more interactive, 0:07:14.600 --> 0:07:17.360 much more digital product, and that's where I think the 0:07:17.360 --> 0:07:20.680 big reshaping will come from. Consumers will choose whether they 0:07:20.760 --> 0:07:23.880 want to go through traditional cable networks or whether they 0:07:23.920 --> 0:07:26.560 want to go through the newer digital networks, and that's 0:07:26.560 --> 0:07:29.880 something that we're there for everyone everywhere. That's really the 0:07:30.120 --> 0:07:32.480 goal of ESPN is we want to be where the 0:07:32.520 --> 0:07:35.000 sports fan wants to be, but we do intend to 0:07:35.000 --> 0:07:37.280 bring a lot of value in that product, and I 0:07:37.280 --> 0:07:39.480 think sports fans will come to it relatively quickly. 0:07:40.320 --> 0:07:42.040 Disney CFO Hugh Johnston. 0:07:42.160 --> 0:07:44.400 There, let's get more inside tape for you from our 0:07:44.440 --> 0:07:47.800 own BlueBag intelligence analyst Ethan Rang and Evan And what 0:07:47.920 --> 0:07:49.920 was really interesting is who's trying to say, look, don't 0:07:50.000 --> 0:07:53.760 judge us, buy well our TV arm alone or cable 0:07:54.000 --> 0:07:56.920 look at it as entertainment broadly and how they play 0:07:56.960 --> 0:07:58.800 with each other. Is that the right way to see 0:07:58.800 --> 0:08:00.640 its ecosystem? 0:08:00.840 --> 0:08:03.080 I absolutely think so, and that's really the story of 0:08:03.120 --> 0:08:06.280 Disney more broadly, right, it's every part of the business 0:08:06.280 --> 0:08:08.680 feeding every other part of the business. So you look 0:08:08.720 --> 0:08:12.400 at you know, the studio that feeds contents not just 0:08:12.560 --> 0:08:16.320 into the studio itself, but across the networks, across parks, 0:08:16.320 --> 0:08:19.240 across you know, consumer products, everything. And it's the same 0:08:19.320 --> 0:08:22.400 story with linear and streaming as well. So you have 0:08:22.520 --> 0:08:27.840 content that feeds both the linear networks lineup as well 0:08:27.840 --> 0:08:30.880 as the streaming a portion of it. And it becomes 0:08:30.920 --> 0:08:34.679 really interesting because you have sports rights here, and when 0:08:34.720 --> 0:08:36.800 you have sports rights, you have to be really careful 0:08:36.800 --> 0:08:39.080 because you know, you have both the linear TV component 0:08:39.160 --> 0:08:41.240 of it as well as digital rights, and so it 0:08:41.280 --> 0:08:44.240 looks like they want to keep everything together right now 0:08:44.280 --> 0:08:46.000 under the same umbrella. 0:08:46.240 --> 0:08:49.240 Peter I asked that ESPN question for you because I 0:08:49.280 --> 0:08:51.640 know that you're modeling around it. And what's so interesting 0:08:51.720 --> 0:08:53.920 is just before we came on air, the ten K 0:08:54.120 --> 0:08:58.520 hit and actually it showed that ESPN subscribers dropped to 0:08:58.640 --> 0:09:01.920 sixty six million this year, down from seventy one million 0:09:02.000 --> 0:09:02.560 last year. 0:09:02.880 --> 0:09:04.760 Then you got the warning that actually. 0:09:04.440 --> 0:09:07.560 Subscribers will taper off in the fiscal first quarter of 0:09:07.600 --> 0:09:10.400 twenty five. Do you look past that noise and look 0:09:10.440 --> 0:09:12.760 to the three year horizon that you were shocked by 0:09:13.120 --> 0:09:13.680 this morning. 0:09:15.400 --> 0:09:17.839 Yeah, I mean cord cutting, ed is. I mean, the 0:09:17.880 --> 0:09:20.160 writing is on the wall. We're definitely going to see 0:09:20.240 --> 0:09:24.160 cord cutting kind of persist. You know, we're seeing subscriber 0:09:24.240 --> 0:09:27.200 erosion at around eight to nine percent. I think the 0:09:27.480 --> 0:09:29.920 ESPN launch, I mean, the launch of the flagship ESPN 0:09:30.040 --> 0:09:32.560 is definitely going to be another trigger that is going 0:09:32.600 --> 0:09:34.920 to kind of accelerate cord cutting. 0:09:35.240 --> 0:09:36.360 But you're absolutely right. 0:09:36.400 --> 0:09:39.880 I mean the guidance that they issued was absolutely stellar. 0:09:39.920 --> 0:09:43.200 I mean, investors love it. I Mean, the biggest overhang 0:09:43.320 --> 0:09:46.040 on this stock ed over the past few quarters has 0:09:46.120 --> 0:09:49.640 been this lack of clarity has been the lack of visibility. 0:09:49.679 --> 0:09:51.520 And so for them to go out and give us 0:09:51.559 --> 0:09:55.000 earnings growth not just into fiscal twenty twenty five, but 0:09:55.040 --> 0:09:57.400 then to kind of lay out that roadmap going into 0:09:57.400 --> 0:10:00.640 twenty twenty six and twenty twenty seven, definitely, Ali is 0:10:00.720 --> 0:10:03.120 a lot of concerns about the help of all of 0:10:03.160 --> 0:10:04.840 the different parts of the business. 0:10:05.559 --> 0:10:08.920 Is twenty twenty four and we're still talking about cord cutting, 0:10:09.200 --> 0:10:12.320 Bloomberg Intelligence and this Keitha anger Athan, thank you so much. 0:10:12.400 --> 0:10:14.800 All right, Coming up on the show, why more tech 0:10:14.880 --> 0:10:19.120 firms are eyeing a twenty twenty five IPO. Emma Taylor, 0:10:19.160 --> 0:10:21.920 global head of Investment Internet Investment Banking at. 0:10:21.800 --> 0:10:24.520 Berkeley's, Coming up next big interview. This is Bloomberg. 0:10:24.520 --> 0:10:37.000 Technology IMPO is few and far between, but this year, 0:10:37.040 --> 0:10:40.720 actually seven tech companies have indeed gone public and collectively 0:10:41.000 --> 0:10:42.720 they're training well higher, more than eighty. 0:10:42.600 --> 0:10:46.000 Percent above their original offer prices. What's more to come? 0:10:46.240 --> 0:10:48.640 What about M and A. Let's talk about all of it. 0:10:49.000 --> 0:10:51.160 When we think about the growth of twenty twenty five 0:10:51.200 --> 0:10:51.800 with Emma Taylor. 0:10:51.880 --> 0:10:54.280 She's the global head of Internet Investment. 0:10:53.840 --> 0:10:57.839 Banking at Berkley's and many have been waiting watching thinking 0:10:57.840 --> 0:11:00.319 twenty twenty five post election will be the year suddenly 0:11:00.360 --> 0:11:02.520 IPO springs to life and maybe more some M and A. 0:11:02.679 --> 0:11:04.320 Is that something that you're talking about with clients? 0:11:04.400 --> 0:11:06.440 Yeah, well, first off, thank you for having me, Caroline 0:11:06.480 --> 0:11:08.439 and Ed. That's exactly right. 0:11:08.520 --> 0:11:09.080 So we are. 0:11:09.520 --> 0:11:12.280 We are very focused on it, we're very optimistic about it. 0:11:13.200 --> 0:11:16.440 As you said, there was seven true tech IPOs last year. 0:11:16.679 --> 0:11:19.559 Their they as a class have actually traded very well. 0:11:20.520 --> 0:11:22.719 I think that. You know, we've been focused on why 0:11:22.760 --> 0:11:25.920 are some companies waiting on the sidelines, But when we 0:11:25.960 --> 0:11:28.360 look at the pipeline and the things that are on 0:11:28.360 --> 0:11:31.240 our radar in terms of tech IPOs for twenty twenty five, 0:11:31.720 --> 0:11:33.360 if we look at what's just on our what's on 0:11:33.400 --> 0:11:36.080 our radar just for the first half of twenty twenty five, 0:11:36.760 --> 0:11:39.400 there's at least seven tech companies on our radar for that. 0:11:40.200 --> 0:11:42.360 And I think success begets success, and so if those 0:11:42.360 --> 0:11:44.840 companies go public, and if those are successful, which we 0:11:44.920 --> 0:11:48.000 expect that to be the case, then we would expect 0:11:48.040 --> 0:11:49.280 that a lot of the companies that are on the 0:11:49.320 --> 0:11:51.880 sidelines now we'll get off the sidelines and we'll start 0:11:51.920 --> 0:11:53.000 to start to tap the market. 0:11:53.040 --> 0:11:54.360 So were the risk reward for us? 0:11:54.440 --> 0:11:58.079 Because bigger and bigger private companies aid to able to 0:11:58.200 --> 0:12:01.640 raise more and more money, that extra Warner evaluations that 0:12:01.800 --> 0:12:04.880 clearly the money is still coming in from the private side. 0:12:05.160 --> 0:12:06.120 Why go public? 0:12:06.320 --> 0:12:09.120 Yeah, Yeah, it's I think that's the exact right question. 0:12:09.160 --> 0:12:11.440 And I actually think that's the exact question that companies 0:12:11.480 --> 0:12:15.840 are asking themselves. You know, generally we see that at 0:12:15.840 --> 0:12:19.400 some point, regardless of whether or not the private capital 0:12:19.480 --> 0:12:22.400 is available to them. Companies do choose to go public, 0:12:22.920 --> 0:12:24.760 and they do that for a variety of reasons. You 0:12:24.800 --> 0:12:28.440 see companies that there's a branding impact, and so whether 0:12:28.480 --> 0:12:30.959 they're an enterprise company or a consumer company, they think 0:12:31.000 --> 0:12:34.240 that going public is going to give them a brand 0:12:34.440 --> 0:12:37.640 and help in terms of accessing more clients and more customers. 0:12:38.160 --> 0:12:39.319 So you see it for that reason. 0:12:39.480 --> 0:12:43.119 You oftentimes see it for employee liquidity, for shareholder liquidity, 0:12:43.920 --> 0:12:46.559 and so you know, at some point as companies mature, 0:12:46.840 --> 0:12:48.600 it starts to make sense for them to tap the 0:12:48.600 --> 0:12:51.320 public markets. The other thing, and you know this, but 0:12:51.360 --> 0:12:54.600 there's it gives you access to currency for M and A. 0:12:54.679 --> 0:12:56.720 So as companies start to think about M and A 0:12:56.840 --> 0:13:00.360 becoming an important portion of their company going forward. That's 0:13:00.400 --> 0:13:02.319 another reason why we see companies decide. 0:13:02.040 --> 0:13:03.000 That you want to go public. 0:13:03.480 --> 0:13:06.400 And let me jump in here on employee liquidity. I 0:13:06.400 --> 0:13:09.160 feel like companies, particularly at later stages, have options. 0:13:09.240 --> 0:13:09.440 Right. 0:13:10.360 --> 0:13:14.720 Two deals that I've reported on recently Viry Data Bricks 0:13:14.760 --> 0:13:17.440 doing tenders literally to keep talent happy. 0:13:17.720 --> 0:13:19.319 I think in the Data Bricks case, it's an. 0:13:19.240 --> 0:13:22.360 Example where the company might even buy back shares themselves. 0:13:22.920 --> 0:13:24.439 How big a factor is that. 0:13:24.400 --> 0:13:26.880 I mean, if you're a company that can use a 0:13:26.960 --> 0:13:29.640 tender as an option to keep staff happy, you don't 0:13:29.640 --> 0:13:32.240 need the cash, why go public? 0:13:33.080 --> 0:13:34.880 I think that's I think that's a great question. 0:13:35.000 --> 0:13:35.080 Ed. 0:13:35.120 --> 0:13:38.320 I think that's that's exactly right. I mean, look, the 0:13:38.320 --> 0:13:40.199 way that we think about it is that you want 0:13:40.200 --> 0:13:42.440 to give companies lots of options, and so we have 0:13:42.600 --> 0:13:46.000 a lot of companies that we're working with that are 0:13:46.040 --> 0:13:49.160 weighing what they can access in the private markets. And 0:13:49.480 --> 0:13:52.280 that's not all created equal either, and so there's a 0:13:52.320 --> 0:13:55.480 significant amount of structured equity and structured finances coming into 0:13:55.480 --> 0:13:59.520 the private markets. There's you know, more straightforward equity capital, 0:14:00.120 --> 0:14:02.599 but all of those things are available to them, and 0:14:02.640 --> 0:14:04.800 so I actually think that that creates a really healthy 0:14:04.880 --> 0:14:07.480 dynamic in which companies can make the best choice for 0:14:07.559 --> 0:14:11.280 themselves and they can optimize for whatever the factors that 0:14:11.320 --> 0:14:14.400 are most important to them, whether that's shareholders, whether that's 0:14:15.000 --> 0:14:18.440 as I said before, branding value, or whether that's you know, 0:14:18.520 --> 0:14:21.400 valuation or other things. And so the access to those 0:14:21.440 --> 0:14:23.920 private markets I actually think is very helpful in terms 0:14:23.960 --> 0:14:26.000 of how companies can make decisions for themselves. 0:14:26.680 --> 0:14:30.080 Emma twenty twenty five, Which country is going to be 0:14:30.120 --> 0:14:32.080 the hot place to do a listing for tech. 0:14:33.600 --> 0:14:36.960 Oh, that is a good question, you know. Look, what 0:14:37.000 --> 0:14:42.400 I would say is I think that the vast majority 0:14:42.400 --> 0:14:44.240 of volume, or what I'll say is that a lot 0:14:44.240 --> 0:14:46.240 of volume comes to the US. I think that that 0:14:46.320 --> 0:14:49.440 will continue to be the case. I think it's hard 0:14:49.440 --> 0:14:53.000 to imagine that that's not the case. All that being said, 0:14:53.160 --> 0:14:58.600 we're seeing other countries and other exchanges have incredibly successful listings. 0:14:59.200 --> 0:15:03.200 You're seeing very large companies potentially choose to list in 0:15:03.440 --> 0:15:07.120 venues outside of the US as well, and so there's 0:15:07.160 --> 0:15:11.040 a global investor base they can invest across the various exchanges. 0:15:11.560 --> 0:15:13.640 So I think all of those things are healthy dynamics. 0:15:14.160 --> 0:15:15.640 And so I think you'll continue to see that. 0:15:17.000 --> 0:15:19.120 Barclay's a British band. Come sure, there's some loyalty to 0:15:19.160 --> 0:15:21.320 the UK. India has been on far as well. It's 0:15:21.320 --> 0:15:25.240 really interesting where people choose to list. Emma, what about 0:15:25.600 --> 0:15:28.520 the story you tell into listing When it was the 0:15:28.560 --> 0:15:30.960 crop of companies that came the end of twenty twenty 0:15:30.960 --> 0:15:32.720 three and into twenty twenty four, you had to have 0:15:32.800 --> 0:15:34.840 artificial intelligence exactly in your story? 0:15:35.040 --> 0:15:37.040 Is that still going to be the case? I think 0:15:37.080 --> 0:15:38.040 that's one hundred percent truth. 0:15:38.080 --> 0:15:40.600 So I think we've seen I think we've seen a 0:15:40.640 --> 0:15:44.600 massive shift in terms of companies, particularly around so why 0:15:44.640 --> 0:15:46.720 I spend most of my time is consumer tech, and 0:15:46.760 --> 0:15:50.320 particularly around consumer tech, companies have to be talking about AI. 0:15:51.280 --> 0:15:53.400 And then this has been true for the last year. 0:15:53.440 --> 0:15:54.840 It's been true for the last year and a half. 0:15:54.920 --> 0:15:57.040 I think what's been really interesting is the shift in 0:15:57.080 --> 0:15:59.720 the way companies are talking about AI. So one of 0:15:59.720 --> 0:16:02.080 the things that we saw early on is that most 0:16:02.120 --> 0:16:05.880 consumer tech, most Internet companies were talking about AI mostly 0:16:05.920 --> 0:16:07.800 in the forms of cost saving, so they were talking 0:16:07.880 --> 0:16:11.560 about call centers or customer service and how can you 0:16:11.720 --> 0:16:15.280 create a better customer interaction with less manual touch points. 0:16:16.040 --> 0:16:18.480 We then started to see a shift where we're seeing companies, 0:16:18.520 --> 0:16:22.400 particularly the AD based companies, talk about AIS relates to 0:16:22.440 --> 0:16:25.400 advertising and so you know, you saw with the earning 0:16:25.440 --> 0:16:28.800 season that the ad based companies did extraordinarily well for 0:16:28.840 --> 0:16:31.160 the most part, and a lot of what we're hearing 0:16:31.200 --> 0:16:35.280 around that is that the AI technology around ROI for 0:16:35.400 --> 0:16:39.360 ad placement has has continued to improve and is really 0:16:39.440 --> 0:16:41.320 driving a lot of that. I think one of the 0:16:41.360 --> 0:16:44.680 interesting shifts that we're now seeing is we're seeing internet 0:16:44.720 --> 0:16:47.960 and consumer tech companies talk about AI as it relates 0:16:48.000 --> 0:16:52.960 to real sort of revenue or consumer UI use cases. 0:16:53.000 --> 0:16:57.560 And so you're seeing online travel companies talk about discovery 0:16:57.680 --> 0:17:00.240 and planning of trips instead of just booking them. You're 0:17:00.280 --> 0:17:03.360 seeing ed tech companies talk about AI tutoring, and so 0:17:03.400 --> 0:17:06.919 you're seeing cases in which companies are saying consumers know 0:17:07.000 --> 0:17:09.439 that they're interacting with AI, and they're happy to do 0:17:09.480 --> 0:17:11.440 that because we're providing a lot of value to them. 0:17:12.200 --> 0:17:14.960 Emma Taylor, Global head of Internet Investment Banking at Barkley's. 0:17:14.960 --> 0:17:17.119 Great to have you here on Bloomberg Technology. Thank you 0:17:17.200 --> 0:17:19.720 very much. A quick news story out in Europe shares 0:17:19.720 --> 0:17:23.120 a Zeeman's rose to a record, predicting a boom empower 0:17:23.200 --> 0:17:27.320 hungry data centers driving demand for its transformers and grid 0:17:27.359 --> 0:17:29.240 technology in the coming year. The company is saying it's 0:17:29.240 --> 0:17:32.800 seen orders for its electrification products jump with the surge 0:17:32.840 --> 0:17:35.840 in AI investments. Even CEO Roland Bush talked about the 0:17:35.840 --> 0:17:37.760 company making its own investments too. 0:17:38.160 --> 0:17:38.639 Listen to this. 0:17:39.800 --> 0:17:43.679 We an answer the excision of IA Engineering. It's a 0:17:43.720 --> 0:17:46.359 ten billion equisition, as you said, which is strengthening our 0:17:46.400 --> 0:17:50.480 software portfolio to the what it is about simulation in 0:17:50.520 --> 0:17:53.560 the areas where we have where we were weak. It's 0:17:53.560 --> 0:17:57.480 not only simulation, but it's also AI and high performance computing. 0:17:59.400 --> 0:17:59.640 LEAK. 0:18:00.040 --> 0:18:02.040 We're going to talk about AI a little bit more. 0:18:02.080 --> 0:18:04.880 And still in Europe, the AI demand story coming from 0:18:04.920 --> 0:18:07.920 AIRSML that we're up some five percent after the Dutch 0:18:07.960 --> 0:18:12.320 maker of the equipment that makes advanced chip making, well, 0:18:12.480 --> 0:18:15.160 we're seeing them still managing to project sales in twenty 0:18:15.240 --> 0:18:17.520 thirty in a range of forty four billion to sixty 0:18:17.560 --> 0:18:18.720 billion basice in line with their. 0:18:18.640 --> 0:18:19.640 PRIs vs forecast. 0:18:19.680 --> 0:18:22.480 But ed just remember how hard they hit the market 0:18:22.640 --> 0:18:25.280 with a significant miss on estimates in their third quarter, 0:18:25.359 --> 0:18:27.679 So maybe a bit of a reprieve there and some 0:18:28.440 --> 0:18:31.159 little elements of confidence being built back in. 0:18:39.840 --> 0:18:42.480 Okay, it's time for talking tech and first up, Netflix's 0:18:42.560 --> 0:18:45.720 Squid Games is set to return in December with its 0:18:45.760 --> 0:18:49.360 second season. The streaming giant looking to replicate the global 0:18:49.359 --> 0:18:52.200 success of its first season, which was the most popular 0:18:52.240 --> 0:18:55.800 show in Netflix's history, generating nearly nine hundred million dollars 0:18:55.840 --> 0:18:58.639 in value for the company. The third and final season 0:18:58.720 --> 0:19:01.879 of the series for twenty twenty five plus on Hi 0:19:02.040 --> 0:19:05.359 one of the world's largest assembler or servers, tamped down 0:19:05.400 --> 0:19:09.520 on concerns that data center spending is decelerating. The company, 0:19:09.520 --> 0:19:13.720 also known as Foxcon, reported results that beat expectations that 0:19:13.840 --> 0:19:17.080 says the boom in AI serve demand will continue next year, 0:19:17.359 --> 0:19:20.480 and Australia's planning to enact laws that would require big 0:19:20.560 --> 0:19:24.640 tech firms to protect its citizens online. The plan, called 0:19:24.680 --> 0:19:27.879 the Digital Duty of Care, was unveiled last night and 0:19:28.000 --> 0:19:30.920 is the latest effort by the Australian government to crack 0:19:31.000 --> 0:19:34.160 down on social media and curb misinformation. 0:19:34.359 --> 0:19:37.440 Caroline, that story, of course is going to be impacting Meta. 0:19:37.480 --> 0:19:41.080 Another thing affecting Meta overseas is a fine eight hundred 0:19:41.080 --> 0:19:43.520 and forty one million dollars has been laid down by 0:19:43.520 --> 0:19:44.520 EU regulators. 0:19:44.760 --> 0:19:45.720 The social media. 0:19:45.520 --> 0:19:48.600 Giant has said it has potentially has been deemed to 0:19:48.600 --> 0:19:52.240 a breached antitrust rules by tying its Facebook Marketplace service 0:19:52.640 --> 0:19:55.520 to its social network. Lu Merg's man nipsingh joins us 0:19:55.560 --> 0:19:58.960 now and that as a user of Facebook Marketplace, I 0:19:59.040 --> 0:20:02.080 rather like that I can tell what the profile is 0:20:02.080 --> 0:20:04.000 that the person that I'm buying or selling to. But 0:20:04.040 --> 0:20:06.400