WEBVTT - Could Elon Defy the Court? 0:00:02.240 --> 0:00:05.520 From the heart of where innovation, money and power Collie 0:00:06.360 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.280 Emily Jay I'm Emily Changes San Francisco and this is 0:00:27.280 --> 0:00:29.720 Bloomberg Technology. Coming up in the next hour. How a 0:00:29.800 --> 0:00:33.559 Delaware court could force Musque to seal the deal. From 0:00:33.640 --> 0:00:36.920 daily fines to allowing Twitter to seize his assets, we 0:00:36.960 --> 0:00:39.600 will talk about all the ways Musk could be held 0:00:39.600 --> 0:00:42.639 to his word if he loses what is shaping up 0:00:42.640 --> 0:00:46.800 to be an epic legal battle. Plus, Pinceresque gets a 0:00:46.800 --> 0:00:50.000 big boost from Elliott Management after the activist investor takes 0:00:50.000 --> 0:00:54.360 a nine percent stake in the company. Shares jumping after hours, 0:00:55.360 --> 0:00:59.760 and Amazon how to surprisingly strong friend day sales jump 0:01:00.000 --> 0:01:02.360 with an eight percent from last year and even help 0:01:02.600 --> 0:01:05.320 rivals get a little more online traffic. Will break down 0:01:05.440 --> 0:01:08.240 all the data. All that in a moment. But first, 0:01:08.319 --> 0:01:12.240 Elon Musk, known for his delight in defying authorities, ordered 0:01:12.520 --> 0:01:15.280 to complete his forty four billion dollar purchase of Twitter, 0:01:15.640 --> 0:01:19.119 and he refuses. How could a Delaware court force his hand. 0:01:19.160 --> 0:01:21.480 That's something that we've been exploring. I want to bring 0:01:21.520 --> 0:01:24.480 in Bloomber's Kurt Wagner now to discuss Kurt. If you 0:01:24.520 --> 0:01:28.039 go through a Twitter's complaint, they come out swinging they 0:01:28.080 --> 0:01:30.720 want to do this forty four billion dollar deal. This 0:01:30.760 --> 0:01:34.880 is not posturing or ceremony. They want their forty four billion. 0:01:35.280 --> 0:01:38.440 Can apport really force Elon Musk to pay up? It 0:01:38.520 --> 0:01:41.160 sounds like the answers yes. And thankfully our colleagues, who 0:01:41.640 --> 0:01:44.120 you know cover the cord are are much closer to this, 0:01:44.160 --> 0:01:45.760 and they had a story today that said there's a 0:01:45.800 --> 0:01:48.600 few things they could do. They could uh slap a 0:01:48.640 --> 0:01:52.520 big fine on Elon Musk could right, so the richest, 0:01:52.520 --> 0:01:54.080 even the richest man in the world might not want 0:01:54.080 --> 0:01:56.640 to pay a fine every single day. They could seize 0:01:56.640 --> 0:01:59.120 his assets was another thing, and obviously that would include 0:01:59.120 --> 0:02:02.840 Tesla stock um. So I think those are the main 0:02:03.200 --> 0:02:06.000 probably motivators if you will to do a deal like this, 0:02:06.080 --> 0:02:08.280 on top of of course actually paying the money, that 0:02:08.280 --> 0:02:11.240 he also could allow Twitter to seize his assets, which 0:02:11.280 --> 0:02:13.799 I found interesting. I'm not sure if Twitter would want 0:02:13.800 --> 0:02:15.799 to seize his assets at this point. They're trying to 0:02:15.840 --> 0:02:18.600 make him seize their assets, right, But I find this 0:02:18.639 --> 0:02:22.559 whole thing, you know, to be incredibly interesting and complicated 0:02:22.600 --> 0:02:27.360 because think about this, Emily for sixty pages, Twitter was saying, 0:02:27.520 --> 0:02:29.600 here's a guy who's acting in bad faith. Here is 0:02:29.639 --> 0:02:33.160 someone who is who's lying, who's misrepresenting, and now we 0:02:33.160 --> 0:02:35.799 want him to own the company and be everybody's boss. Right. 0:02:35.840 --> 0:02:38.320 It's it's a very complicated issue. We pulled some quotes 0:02:38.360 --> 0:02:40.880 from those sixty pages, and it's actually kind of a 0:02:40.960 --> 0:02:46.160 riveting read written in a more conversational complaint to be 0:02:46.960 --> 0:02:50.480 here's one Musk apparently believes that he, unlike every other 0:02:50.520 --> 0:02:52.920 party subject to Delaware contract law, is free to change 0:02:52.919 --> 0:02:58.000 his mind, trash the company, disrupt its operations, destroy shareholder value, 0:02:58.000 --> 0:03:03.360 and walk away. His exit ategy is a model of hypocrisy. 0:03:03.440 --> 0:03:06.320 And then there's this that he exhibited little interest in 0:03:06.400 --> 0:03:10.360 understanding Twitter's process for estimating spam accounts. In a June 0:03:10.360 --> 0:03:13.520 thirtie conversation with Twitter CFO Net Siegel, he acknowledged he 0:03:13.560 --> 0:03:17.160 hadn't even read the detailed summary of twitter sampling process 0:03:17.200 --> 0:03:20.040 provided back in May. Siegel offered to spend time with 0:03:20.120 --> 0:03:23.760 Musk once again to review it. That meeting never happened 0:03:23.880 --> 0:03:26.600 despite Twitter's best efforts. What do you make of that? 0:03:26.800 --> 0:03:29.560 I mean, Twitter went out of its way to show 0:03:29.639 --> 0:03:32.320 and paint a picture of someone who has lost interest 0:03:32.360 --> 0:03:36.280 in this deal. Right, Basically from about June twenty three 0:03:36.480 --> 0:03:38.760 when Bob Swan, the former i d M CEO who 0:03:38.800 --> 0:03:43.520 was leading the Musk deal team, he left. From then 0:03:43.600 --> 0:03:45.720 on through the fourth of July, the company basically said 0:03:45.880 --> 0:03:47.520 we had trouble getting in touch with him. We tried 0:03:47.560 --> 0:03:49.000 to have meetings, he wouldn't show up. When he did 0:03:49.000 --> 0:03:51.680 show up, he wasn't prepared. They're really trying to convey 0:03:51.960 --> 0:03:55.839 that Ellen really stepped back from this deal, and that's 0:03:55.840 --> 0:03:58.240 why it's fallen apart, not because of anything that Twitter did. 0:03:58.280 --> 0:04:00.320 So here's the thing. Elon Musk doesn't shy away from 0:04:00.320 --> 0:04:03.560 a fight, and just even with major regulators, so we're 0:04:03.560 --> 0:04:06.320 not expecting him to just back down. No. And and 0:04:06.440 --> 0:04:08.880 you know, I've seen some people speculate, well, why don't 0:04:08.880 --> 0:04:11.120 they come to a settlement, Why doesn't Eilon pay half 0:04:11.160 --> 0:04:13.440 the price? And and everyone walks away. It's like, can 0:04:13.480 --> 0:04:17.000 you imagine Elon Musk voluntarily saying, here's twenty billion dollars, Sure, 0:04:17.600 --> 0:04:19.440 I'll be the loser in this situation. I just have 0:04:19.480 --> 0:04:21.919 a tough time imagining that. So it does really feel 0:04:21.960 --> 0:04:24.480 like it's either going to be forty four billion or nothing. 0:04:24.480 --> 0:04:26.279 I know that sounds extreme, but it's just hard to 0:04:26.320 --> 0:04:28.640 imagine a middle ground right now. All right, well, certainly 0:04:28.680 --> 0:04:32.080 something we slash you will continue to follow, Thank you, 0:04:32.560 --> 0:04:37.120 Kurt Wagner. Meantime, payments company Stripe has told staffers the 0:04:37.200 --> 0:04:40.320 private market valuation of the company has dropped more than 0:04:40.640 --> 0:04:45.760 Stripe's new implied valuation is about seventy four billion dollars, 0:04:45.760 --> 0:04:49.560 down from billion and its most recent fundraising. This as 0:04:49.760 --> 0:04:54.479 the stock prices of Stripes publicly traded Peers continue to plummet. 0:05:03.720 --> 0:05:06.640 Since the overturning of Roe versus Wade, an employee benefit 0:05:06.680 --> 0:05:10.120 package might be the only way women seeking abortions can 0:05:10.200 --> 0:05:13.280 even afford it. Tech giants have responded to the ruling 0:05:13.360 --> 0:05:16.800 by pledging their support and financial assistance. But how is 0:05:16.839 --> 0:05:19.280 this all playing out in the aftermath? Joining is now? 0:05:19.400 --> 0:05:22.640 Kate Writer, CEO of Maven, a women's and family health 0:05:22.640 --> 0:05:26.760 clinic that partners with companies like Microsoft, Loreale, and A 0:05:26.839 --> 0:05:29.600 T and T. Kate, thank you so much for joining us. 0:05:29.600 --> 0:05:33.359 So look, in one ruling, the rules changed for women 0:05:33.440 --> 0:05:37.480 across the country. What's happened in the aftermath? What have 0:05:37.600 --> 0:05:42.159 you seen? You know? Um? We knew this was coming, uh, 0:05:42.400 --> 0:05:44.240 you know, ever since XDA in the fall. I think 0:05:44.240 --> 0:05:46.880 a lot of people in the medical community, um, you know, 0:05:47.120 --> 0:05:49.320 we're predicting this, and I think what we've heard is 0:05:49.800 --> 0:05:51.599 we work with a lot of leading health plans and 0:05:51.640 --> 0:05:54.600 employers with for the ribbons and family health benefits from 0:05:54.640 --> 0:05:57.200 fertility and maternity, and a lot of them didn't know 0:05:57.440 --> 0:05:59.800 what to kind of make of it. The second that 0:05:59.839 --> 0:06:02.440 the Supreme Court decision was kind of struck down and 0:06:02.680 --> 0:06:05.920 brought down even the most conservative clients that previously didn't 0:06:05.920 --> 0:06:08.640 want to take a position stood up and designed kind 0:06:08.640 --> 0:06:11.839 of employee benefit packages through mayven and other services to 0:06:11.880 --> 0:06:15.920 support travel across state lines, to support pregnancy options, counseling, 0:06:16.040 --> 0:06:18.320 and you know a lot of other things. So that 0:06:18.520 --> 0:06:21.360 was encouraging. So what kind of demand are you and 0:06:21.480 --> 0:06:24.520 requests are you seeing from MAVEN members. Are you seeing 0:06:24.520 --> 0:06:30.159 a surge in requests for reproductive help? I think anxiety, 0:06:30.520 --> 0:06:32.800 our mental health is up, but I think it's not 0:06:32.880 --> 0:06:35.320 just MAYVEN members right now. We're also paying attention to 0:06:35.360 --> 0:06:37.839 maybe providers. So, you know, one of the things that 0:06:37.880 --> 0:06:41.320 we've been hearing is there's about of US counties don't 0:06:41.320 --> 0:06:42.760 have an OB G U, I N and a lot 0:06:42.800 --> 0:06:45.760 of those are in states where they're restricting abortion access. 0:06:46.080 --> 0:06:49.080 A lot of our clinicians are are are really concerned. 0:06:49.160 --> 0:06:51.640 You know, we're hearing people of that are going to 0:06:51.760 --> 0:06:54.680 move and so that's going to create even more provider shortages. 0:06:54.760 --> 0:06:57.120 So you know, it's it's both the members but also 0:06:57.160 --> 0:07:00.719 the providers themselves. Hang on, did you just say of 0:07:00.839 --> 0:07:03.360 US counties don't have an O, B, G, Y N 0:07:03.960 --> 0:07:07.960 p US. Isn't that just a basic level of care 0:07:08.360 --> 0:07:11.360 for any kind of women's health needs? You know, I 0:07:11.400 --> 0:07:13.920 think one of the reasons I started maybe eight years ago, 0:07:13.960 --> 0:07:16.600 if because women's health has always been underserved. A lot 0:07:16.600 --> 0:07:19.440 of these statistics kind of people didn't really pay as 0:07:19.480 --> 0:07:22.400 much attention to, but you know, technically are called matrinity care, 0:07:22.440 --> 0:07:25.120 desserts and um. And you know, I think the the 0:07:25.160 --> 0:07:27.280 a hog and the medical community is afraid that is 0:07:27.320 --> 0:07:30.840 going to be even more exacerbated um with you know, 0:07:30.880 --> 0:07:35.760 with this ruling. So here's the question. There are companies 0:07:35.760 --> 0:07:39.960 and and and startups like yours that are now potentially 0:07:40.000 --> 0:07:44.840 serving women in states where abortion is illegal. How are 0:07:44.880 --> 0:07:48.000 you navigating that? Well? I think you know what we 0:07:48.040 --> 0:07:50.280 always think about is the well being of the members 0:07:50.360 --> 0:07:53.520 or providers or clients is always first and foremost. And 0:07:53.560 --> 0:07:55.400 we also, of course will always be in compliance with 0:07:55.440 --> 0:07:57.760 the laws, and so our legal team are the law 0:07:57.880 --> 0:08:00.280 that's still really uncertain is working over time. I'm to 0:08:00.280 --> 0:08:02.960 try to understand this, and so you know, we have 0:08:03.040 --> 0:08:06.040 to obviously be in compliance. But um, but you know, 0:08:06.080 --> 0:08:07.720 the well being of a many of our members in 0:08:07.760 --> 0:08:10.440 those states is uh. You knows, as evidenced by a 0:08:10.440 --> 0:08:13.920 lot of you know, increase acts for support around emotional 0:08:13.960 --> 0:08:17.640 well being, around just the uncertainty of even bringing kids 0:08:17.720 --> 0:08:19.800 up in this world. You know, what what do you say? 0:08:19.880 --> 0:08:21.960 How do you explain what's going on? Um, you know, 0:08:21.960 --> 0:08:25.480 we're seeing all in that on our platform. Meantime, you've 0:08:25.520 --> 0:08:27.400 got a number of companies that have come out and 0:08:27.440 --> 0:08:30.000 said we're going to cover travel benefits for employees who 0:08:30.000 --> 0:08:32.880 need to cross state lines to get an abortion. So, 0:08:32.960 --> 0:08:35.800 for example, Ubert, Lift, Door, Dash have said they would 0:08:35.800 --> 0:08:38.040 do this for their employees, But Bloomberg has a story 0:08:38.080 --> 0:08:41.400 out today saying, well, they're not doing this for their shoppers, 0:08:41.520 --> 0:08:43.840 or their drivers, or for all of the contractors on 0:08:43.880 --> 0:08:46.920 their platform. What do you think the responsibility of these 0:08:46.960 --> 0:08:50.280 employers are well, I think that we're living in a 0:08:50.320 --> 0:08:53.120 world where as we see it, it's it's part of 0:08:53.120 --> 0:08:55.880 by the employee benefits industry at central robust industry. As 0:08:55.920 --> 0:08:58.679 we see the less and less services kind of offered 0:08:58.679 --> 0:09:02.720 by the government companies you know, may even included UM, 0:09:02.920 --> 0:09:05.240 and a lot of our clients are stepping up to 0:09:05.320 --> 0:09:07.480 fill a lot of those gaps because at the end 0:09:07.480 --> 0:09:09.800 of the day, UM, you know, your people are everything 0:09:09.880 --> 0:09:11.880 when you're growing your business, and so not only are 0:09:11.920 --> 0:09:14.240 you helping your people, but you know, there is an 0:09:14.240 --> 0:09:17.960 economic argument for employer, you know, talent attraction and retention 0:09:18.120 --> 0:09:21.840 and just kind of creating a good culture so that 0:09:21.960 --> 0:09:24.240 your you know, your people can be their most productive 0:09:24.240 --> 0:09:28.079 and their happiest at work. Meantime, there are some states 0:09:28.120 --> 0:09:31.520 I'm thinking right now about Kentucky that are considering laws 0:09:31.559 --> 0:09:36.439 that would define life right after fertilization, which would potentially 0:09:36.640 --> 0:09:42.160 put IVF and fertility treatments in danger. And you're seeing patients, 0:09:42.640 --> 0:09:45.160 we're hearing that, you're seeing some patients try to move 0:09:45.200 --> 0:09:48.719 their embryos for example, out of those states. Are you 0:09:48.760 --> 0:09:54.360 seeing this? Yes, UM, we do supports the financials around 0:09:54.400 --> 0:09:57.959 moving the embryos across state lines through you know, our 0:09:58.120 --> 0:10:00.280 our maybe and wall of benefit. But you know, I 0:10:00.280 --> 0:10:02.280 think that what we hear of the fertility and community 0:10:02.440 --> 0:10:05.679 is that that there is still so much uncertainty UM, 0:10:05.840 --> 0:10:08.040 and so a lot of people just you know, don't 0:10:08.040 --> 0:10:11.320 know what's going on and are are taking via the embryo. UM. 0:10:11.360 --> 0:10:14.760 You know, transfer is precaution. But you know, I will 0:10:14.800 --> 0:10:18.200 say that hopefully UM that you know, as a lot 0:10:18.200 --> 0:10:20.800 of this data comes out where this is bad for 0:10:20.840 --> 0:10:23.600 business and a lot of these states, it's bad for people, 0:10:23.600 --> 0:10:26.679 it's bad for families, it's bad for women. That UM 0:10:26.720 --> 0:10:29.520 that that hopefully some of these more extreme bills that 0:10:29.559 --> 0:10:33.199 are in the state sentence will not get past one 0:10:33.240 --> 0:10:36.120 of your biggest fears though, I mean, there are so 0:10:36.240 --> 0:10:40.720 many cascading issues here. What do you worry about the most? Yeah, 0:10:40.760 --> 0:10:43.720 I mean, listen, I think that the saddest thing about 0:10:43.760 --> 0:10:47.320 this is that this just disproportionately affects um you know, 0:10:47.640 --> 0:10:51.800 already vulnerable patients, right, so lower income women, black women. 0:10:51.840 --> 0:10:55.080 There's already a maternal health crisis in this country. When 0:10:55.080 --> 0:10:56.960 you look at even the data coming out of a 0:10:56.960 --> 0:10:59.079 lot of the states with these trigger laws that are 0:10:59.120 --> 0:11:01.840 going to have more restrict of abortion access. The maternal 0:11:01.880 --> 0:11:05.080 mortality rate is two times that of other states, and 0:11:05.160 --> 0:11:07.760 so you know already when we are the highest maternal 0:11:07.800 --> 0:11:11.080 mortality rate in the developed world, and we're restricting access 0:11:11.160 --> 0:11:14.960 even more in in women's health where abortion about one 0:11:15.000 --> 0:11:18.040 out of four women get abortion in their lifetime. It's 0:11:18.080 --> 0:11:21.000 a very common procedure and part of standard healthcare in 0:11:21.040 --> 0:11:23.839 women's health. That this is just you know, this is 0:11:23.880 --> 0:11:26.439 going to make our our our our outcomes even worse. 0:11:26.520 --> 0:11:29.360 It's gonna hurt women, it's gonna hurt families. And I 0:11:29.400 --> 0:11:33.240 hope that you know that we that quickly states will 0:11:33.360 --> 0:11:35.520 will get on the right side of this and recognize 0:11:35.559 --> 0:11:39.720 that this is just healthcare. All right, Kate Writer, CEO 0:11:39.920 --> 0:11:43.199 of Maven Clinic. Appreciate you sharing your perspective here today 0:11:43.240 --> 0:11:47.760 for having me all right. Coming up, Amazon pushing to 0:11:47.920 --> 0:11:52.000 end to antitrust investigations by the European Union. Could this 0:11:52.040 --> 0:11:56.080 be a blueprint for big tech compromises around the world. 0:11:56.200 --> 0:12:09.200 We'll discuss this is Bloomberg Pinters shares jump more than 0:12:09.880 --> 0:12:13.000 in late trading after Dow Jones reported activist investor Elliott 0:12:13.040 --> 0:12:16.000 Management has taken a nine percent stick in the company 0:12:16.120 --> 0:12:19.679 our very own Alex Brenka joins us now to discuss. 0:12:19.800 --> 0:12:23.720 So why are shares jumping on this news? Yeah, shares 0:12:23.720 --> 0:12:26.880 are probably jumping on this news because investors are looking 0:12:26.880 --> 0:12:29.760 for something to happen at pinterest. Pinterests has had an 0:12:29.760 --> 0:12:33.719 interesting go of it the last couple of years. Both financially, 0:12:33.800 --> 0:12:36.520 they're seeing strong at sales um but they're seeing users 0:12:36.520 --> 0:12:39.679 fall off to the tune of nine percent decline in 0:12:39.760 --> 0:12:42.520 monthly active users in the last quarter. So this is 0:12:42.520 --> 0:12:44.280 a company that's kind of been around for a while. 0:12:44.400 --> 0:12:46.880 There's been a lot of questions as to where does 0:12:46.920 --> 0:12:50.559 growth come next. You'll recall not too long ago there 0:12:50.559 --> 0:12:53.800 were those talks with PayPal for a potential deal. The 0:12:53.840 --> 0:12:56.160 company has been trying to kind of expand into some 0:12:56.240 --> 0:13:01.000 more arenas, like into et commerce UM. But between that 0:13:01.240 --> 0:13:05.280 and UM the longtime CEO stepping back from that role, Uh, 0:13:05.320 --> 0:13:09.920 it seems like Elliott um sees an opportunity to kind 0:13:09.920 --> 0:13:12.160 of shake some things up and maybe push for some 0:13:12.240 --> 0:13:14.640 changes that it's looking for at this business. Interesting. Yeah, 0:13:14.920 --> 0:13:20.600 huge Shacob from with Ben Silverman leaving after all those years. 0:13:20.640 --> 0:13:24.719 Bill Ready, long time former payments executive, who you know 0:13:24.760 --> 0:13:27.560 worked at brain Tree, which got bought by PayPal um 0:13:27.600 --> 0:13:30.839 for for many many years taking over. Do we know 0:13:31.000 --> 0:13:35.840 yet what Bill Ready's plans are. We don't know yet. 0:13:35.880 --> 0:13:38.360 But this is a guy who, as you mentioned, comes 0:13:38.480 --> 0:13:41.599 from Google, comes from the ad side, So this is 0:13:41.640 --> 0:13:43.520 a guy who has spent a lot of his time 0:13:44.360 --> 0:13:47.240 figuring out how to make money online. So that would 0:13:47.280 --> 0:13:50.320 be the era that I would expect this company just 0:13:50.480 --> 0:13:53.640 continue to focus on. It's also, frankly, again the area 0:13:53.760 --> 0:13:56.480 that we've seen some pressure on this company and some 0:13:56.679 --> 0:14:00.000 questions on this company from the analyst and investor commun 0:14:00.040 --> 0:14:04.040 unity up until now. So, um, whether or not Elliott 0:14:04.160 --> 0:14:06.959 is on the same kind of brain length as Bill 0:14:07.040 --> 0:14:09.560 Ready as he takes the helm at Pinterest, I guess 0:14:09.559 --> 0:14:12.120 this is a place we will have to see. Um. 0:14:12.160 --> 0:14:15.920 But if I were looking at his background and saying, hey, 0:14:15.960 --> 0:14:18.000 what's the most kind of opportune place for him to 0:14:18.040 --> 0:14:21.360 lean in, it is to try to counteract that user 0:14:21.440 --> 0:14:25.920 decline with juicing up revenue even more than we saw 0:14:26.120 --> 0:14:28.480 in the eight percent increase that we saw in the 0:14:28.520 --> 0:14:33.120 past quarter. All Right, Alex Sparenka, thank you for giving 0:14:33.240 --> 0:14:37.760 us that context from l A. Appreciate it. Meantime, Amazon 0:14:37.920 --> 0:14:41.320 is a step closer to settling to EU antitrust investigations 0:14:41.360 --> 0:14:44.480 concerning whether the company uses sales data of its own 0:14:44.560 --> 0:14:48.400 third party sellers to unfairly favor its own products. The 0:14:48.440 --> 0:14:52.280 European Commission is now asking Amazon's competitors for feedback on 0:14:52.360 --> 0:14:57.160 a proposed settlement. Amazon says it's engaging constructively. Bloomberg's mat 0:14:57.200 --> 0:14:59.680 Day covers all things Amazon and joins us. Now, So 0:15:00.000 --> 0:15:03.560 how big are the compromises that am Amazon is actually 0:15:03.560 --> 0:15:06.960 proposing here, Matt, I think they're meaningful. One of the 0:15:06.960 --> 0:15:08.880 things that opposing is offering kind of a second option 0:15:08.960 --> 0:15:11.360 to buy a product, you know, not just what am unrecommends, 0:15:11.360 --> 0:15:13.000 which the vast majority of people just clicked through, but 0:15:13.080 --> 0:15:15.280 offering a second tier. But I think if you win 0:15:15.320 --> 0:15:18.280 inside a Seattle and Amazon's office today, they'd say they're 0:15:18.280 --> 0:15:20.480 fine with this. This doesn't dismantle their marketplace. They can 0:15:20.560 --> 0:15:22.520 kind of keep doing business as usual. They just have 0:15:22.600 --> 0:15:24.560 to promise they're not gonna not gonna break the rules 0:15:24.640 --> 0:15:28.080 off for sellers another option to get seen. Obviously big 0:15:28.120 --> 0:15:31.840 tech is facing antitrust regulatory scrutiny around the world. Is 0:15:31.840 --> 0:15:35.600 what Amazon is doing here potentially a harbinger of compromises 0:15:35.640 --> 0:15:39.440 to come from others. It's certainly the compromise they'd like 0:15:39.520 --> 0:15:41.600 to see. They like this a whole lot more than 0:15:41.640 --> 0:15:44.280 they would like, UM the antitrust bills being kicked around 0:15:44.320 --> 0:15:47.360 and in the US Congress, which strike them as much 0:15:47.360 --> 0:15:49.240 more structural risk for them. They don't want to have 0:15:49.240 --> 0:15:51.360 to do anything that kind of changes how they run 0:15:51.400 --> 0:15:54.280 their marketplace UM and their retail websites at its core. 0:15:54.320 --> 0:15:55.920 And I think this EU think kind of threads that 0:15:56.000 --> 0:15:59.880 needles for them. Meantime, you're also reporting today that Union 0:16:00.080 --> 0:16:04.760 Nation efforts at Amazon warehouses in New York are kind 0:16:04.800 --> 0:16:09.120 of losing momentum. This after a major victory at least 0:16:09.120 --> 0:16:13.000 one warehouse in New York. What's happening. Yes, So, the 0:16:13.040 --> 0:16:15.720 Amazon Labor Union and Upstart Union in Staten Island, they 0:16:15.720 --> 0:16:17.280 were on top of the world if you go back 0:16:17.280 --> 0:16:19.280 to April when they won and they got the rights 0:16:19.320 --> 0:16:22.080 to bargain for workers at one facility. You know, since then, 0:16:22.120 --> 0:16:24.600 they've lost their second election and they've paused efforts to 0:16:25.000 --> 0:16:27.240 organize two more places. UM. So a lot of what 0:16:27.280 --> 0:16:29.640 they're doing these days is really playing defense. They're trying 0:16:29.680 --> 0:16:32.680 to kind of hold onto their win in labor board hearings. 0:16:32.680 --> 0:16:35.760 Amazon it's challenged that first result. So basically, this this 0:16:35.840 --> 0:16:38.000 outfit that you look like they could do no wrong 0:16:38.040 --> 0:16:39.640 a few months ago, and it's it's kind of gotten 0:16:39.640 --> 0:16:41.520 to the hard part of that to put the work 0:16:41.520 --> 0:16:44.520 in to defend their early games. Chris Mall's who we 0:16:44.600 --> 0:16:47.880 just saw popping some champagne there, who's been leading this effort. 0:16:47.920 --> 0:16:52.840 He also testified, uh at peerings where Amazon has been 0:16:52.840 --> 0:16:57.040 protesting the win. What happened there? Yeah, he came on. 0:16:57.240 --> 0:16:59.160 He testifying from a hotel room. He's kind of on 0:16:59.240 --> 0:17:02.600 a permanent were of other labor groups and and speaking engagements. 0:17:02.880 --> 0:17:05.120 Amazon works real hard to kind of you know, peg 0:17:05.200 --> 0:17:07.080 him as as a rule breaker, saying he was on 0:17:07.359 --> 0:17:10.520 company property and trespassing and all these things, and Smalls 0:17:10.560 --> 0:17:13.359 kind of it is his best efforts to keep that 0:17:13.400 --> 0:17:15.840 at arm's length. It's been a really contentious process so far, 0:17:15.880 --> 0:17:17.560 a lot of kind of snipping back and forth from 0:17:17.600 --> 0:17:21.719 the union's lawyers and Amazons what about unionization? Elsewhere? Are 0:17:21.760 --> 0:17:27.119 we seeing any you know, efforts gaining momentum? There are 0:17:27.119 --> 0:17:29.119 certainly glimmers. Just in the last couple of weeks, a 0:17:29.160 --> 0:17:31.200 couple of outfits, one and Upstate New York and one 0:17:31.280 --> 0:17:33.320 in Kentucky have said they're going to affiliate with the 0:17:33.320 --> 0:17:35.520 Amazon Labor Union. Kind of remains to be seeing how 0:17:35.560 --> 0:17:38.240 far that's gonna go. And there's there's definitely popping up 0:17:38.240 --> 0:17:40.840 in other places in the country. North Carolina. We've heard 0:17:40.840 --> 0:17:42.600 about a new effort in the last few weeks. And 0:17:42.760 --> 0:17:44.840 there's still that race that is too close to call 0:17:45.040 --> 0:17:47.480 um that an Amazon Union drive in best Mer, Alabama. 0:17:47.520 --> 0:17:49.800 So definitely still something taking up a lot of tea, 0:17:49.840 --> 0:17:53.960 sex time and cel Alright, Bloomberg's Matt Day, thanks much 0:17:54.840 --> 0:17:57.760 well and other Amazon news. It is official. Jeff Bezos 0:17:57.760 --> 0:18:00.840 has tweeted the trailer for Amazon's long anticipated Lord of 0:18:00.840 --> 0:18:04.399 the Ring series coming September. Prime Video will release the 0:18:04.440 --> 0:18:08.400 drama to subscribers in more than two countries and territories worldwide. 0:18:08.760 --> 0:18:12.199 The streaming service will upload weekly episodes throughout the season. 0:18:12.760 --> 0:18:22.399 We will see if it lives up to the hype. 0:18:24.119 --> 0:18:26.680 Wellcome back to Bloomer Technology and Emily Chang in San Francisco. 0:18:26.720 --> 0:18:28.439 I want to get back to the markets and shares 0:18:28.480 --> 0:18:32.359 of Chinese tech companies dropped after a flood of news, 0:18:32.560 --> 0:18:36.760 leaving them poise for their steepest weekly losses since March 0:18:37.080 --> 0:18:39.440 this after report Ali Baba is facing an inquiry in 0:18:39.480 --> 0:18:43.360 China and connection with a data theft and renewed regulatory concerns. 0:18:43.440 --> 0:18:46.840 Joining us now a young general partner at Race Capitals. 0:18:46.920 --> 0:18:50.040 So what's your take on this kind of fresh round 0:18:50.040 --> 0:18:52.960 of Chinese regulatory scrutiny on big tech giants which has 0:18:52.960 --> 0:18:55.920 been ebbing and flowing for the last several years now. 0:18:56.080 --> 0:18:59.560 I think all tech companies and founder has been basically 0:18:59.600 --> 0:19:02.359 walking on eggshells, and there's a lot of different changes 0:19:02.440 --> 0:19:07.640 of there's different security law, privacy regulatory it's just been very, 0:19:07.720 --> 0:19:10.159 very tough, um, not just for the Ali Baba and 0:19:10.240 --> 0:19:12.960 tens and of the world, but also for earlier stage 0:19:13.000 --> 0:19:16.920 many of them been waiting to get listed in the US. 0:19:16.920 --> 0:19:19.200 But all this a lot of the companies that I'm 0:19:19.280 --> 0:19:22.440 aware of either wanted to go through respect the Chinese 0:19:22.440 --> 0:19:25.400 company now is changing the course, thinking about Hong Kong, 0:19:25.440 --> 0:19:27.840 thinking about Shanghai. So it's been really really tough for 0:19:27.920 --> 0:19:31.760 the tech industry in China. So there are two narratives 0:19:31.800 --> 0:19:33.880 going on here. One is that you know, China tech 0:19:33.920 --> 0:19:36.520 is so competitive could supersede the United States. And the 0:19:36.560 --> 0:19:40.320 other is that the Chinese regulatory crackdown could destroy some 0:19:40.400 --> 0:19:43.600 of these Chinese tech companies, which is true. Well, I 0:19:43.960 --> 0:19:47.400 think that first and foremost, some of the biggest Chinese company, 0:19:47.600 --> 0:19:50.520 including Ali Baba, like most of their business actually are 0:19:50.520 --> 0:19:53.040 not even in the US. Many of my friends don't 0:19:53.080 --> 0:19:55.520 even know what we chat is or Ali pays is 0:19:55.560 --> 0:19:58.120 all about. So I would say, you know, the big 0:19:58.160 --> 0:20:01.639 tech giants, the core business still in mainland China is 0:20:01.960 --> 0:20:05.680 absolutely a parallel universe in terms of tech. Having said that, 0:20:05.880 --> 0:20:09.040 I think every single new companies are thinking this is 0:20:09.080 --> 0:20:12.680 not going overseas. This is about global markets. Similar to 0:20:12.720 --> 0:20:15.840 buy dance. From day one, they wanted to be international, 0:20:16.359 --> 0:20:21.440 but the international Chinese version of TikTok is doyene um 0:20:21.520 --> 0:20:24.560 is a completely different way of operating in terms of product. 0:20:24.880 --> 0:20:26.960 So a lot of the Chinese company want to do 0:20:27.160 --> 0:20:31.800 respect international market, comply with international law, but they definitely 0:20:31.800 --> 0:20:34.360 have the ambition to be global companies from day one. Well, 0:20:34.400 --> 0:20:36.439 that brings me to the TikTok that we in the 0:20:36.520 --> 0:20:40.439 United States now, which is constantly brought up, you know, 0:20:40.520 --> 0:20:44.560 as you know, doing things better than Facebook and Google 0:20:44.800 --> 0:20:48.359 and you know all of these US based tech companies, 0:20:49.119 --> 0:20:53.240 what do you think, Um, there's no better or worse. 0:20:53.520 --> 0:20:57.040 And obviously in China, UM there's not much of a 0:20:58.160 --> 0:21:01.720 data privacy as such, so they for in terms of AI, definitely. 0:21:01.800 --> 0:21:05.400 I think the ability of machine learning in China is insane. 0:21:05.400 --> 0:21:07.800 And this is not just for social network in fact, 0:21:08.119 --> 0:21:13.159 UM for electronic vehicle there's just crazy growth. UM. I 0:21:13.440 --> 0:21:16.119 saw the news that br D B I D actually 0:21:16.200 --> 0:21:18.800 now in terms of number of ev s has more 0:21:18.840 --> 0:21:23.679 than Tesla in some sense. So UM, there's no competition. 0:21:23.720 --> 0:21:26.040 Just the way you do machine learning in English versus 0:21:26.160 --> 0:21:28.879 Chinese is quite different. So I don't think it's a 0:21:29.440 --> 0:21:32.160 it's a it's not a win lose situation. Is really 0:21:32.200 --> 0:21:34.439 just a parallel universe. In terms of the Internet. What 0:21:34.480 --> 0:21:38.760 about Web three, What who's winning? Um, it's definitely not 0:21:38.840 --> 0:21:42.800 in China. UM there's no no n f T, no 0:21:42.920 --> 0:21:46.399 bitcoin mining, no crypto trading. UM. It cannot be offered 0:21:46.400 --> 0:21:49.240 to Chinese citizens. So a lot of many many of 0:21:49.280 --> 0:21:51.560 my friends in China who is in with three have 0:21:51.720 --> 0:21:54.480