WEBVTT - Why TikTok May Prefer A Weaker U.S. Partner: Howard Yu 0:00:01.400 --> 0:00:04.120 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along 0:00:04.120 --> 0:00:06.240 with my co host of Bonnie Quinn. Every business day 0:00:06.240 --> 0:00:10.400 we bring you interviews from CEOs, market pros, and Bloomberg experts, 0:00:10.400 --> 0:00:13.560 along with essential market moving news. Kind the Bloomberg Markets 0:00:13.600 --> 0:00:17.000 Podcast on Apple podcast or wherever you listen to podcasts, 0:00:17.000 --> 0:00:21.320 and on Bloomberg dot com. So it's been an interesting morning. 0:00:21.520 --> 0:00:23.680 We've been talking a lot about various deals out there, 0:00:23.720 --> 0:00:27.880 from the Verizon deal to the TikTok deal slash arrangement. 0:00:28.320 --> 0:00:32.240 For somebody who you know can tell us a lot 0:00:32.280 --> 0:00:34.720 more about it. Now, let's go to Los Angewitz, London, 0:00:34.760 --> 0:00:37.680 Howard You, who is lego Professor of Management and Innovation 0:00:37.760 --> 0:00:41.239 at I m d Business School. So the story is 0:00:41.240 --> 0:00:44.520 that Oracle edged out Microsoft in negotiating for the US 0:00:44.600 --> 0:00:49.800 operations of China owned TikTok, which is the subsidiary of 0:00:49.960 --> 0:00:53.760 by Dance. But Professor You explain to us exactly what 0:00:54.000 --> 0:00:57.600 kind of a quote unquote deal this is. Well, it 0:00:57.760 --> 0:01:02.320 remained slightly unclear how that technical partnership is gonna be 0:01:02.520 --> 0:01:05.600 with Urticle and TikTok. What has been clear right now 0:01:05.760 --> 0:01:09.520 is Microsoft historically or over the past few days, we're 0:01:09.560 --> 0:01:12.400 thinking about acquiring tech talk and make it safe for 0:01:12.680 --> 0:01:16.600 US user, and possibly they need to open the algal 0:01:16.720 --> 0:01:19.680 or the software code and make it much more transparent 0:01:19.720 --> 0:01:22.520 going forward. And in the end it's bike Dance. The 0:01:22.560 --> 0:01:25.560 owner of TikTok said no to Microsoft, and in a 0:01:25.680 --> 0:01:31.240 way that the technical partnership is probably keeping whatever algal 0:01:31.360 --> 0:01:35.160 behind will stay intact and trying to appease to government 0:01:35.200 --> 0:01:39.000 at the same time. So, professor, what was the political 0:01:39.920 --> 0:01:43.120 overhang of this deal or the political influence of this 0:01:43.200 --> 0:01:47.520 deal from your perspective, I mean, this is a big 0:01:47.680 --> 0:01:50.560 major development in the sense that for the first time 0:01:50.600 --> 0:01:54.520 government are really adding on acting on an ad hot basis. 0:01:54.920 --> 0:01:58.360 So starting from the Trum administration, all of these executive orders, 0:01:58.720 --> 0:02:02.640 there is no industry saltation, there is no independent inquiry 0:02:02.760 --> 0:02:07.040 per se. And then after all the Chinese government at 0:02:07.080 --> 0:02:10.080 the same time we're basically saying, you know, by Dance, 0:02:10.120 --> 0:02:13.520 you cannot export any software code in the name of 0:02:14.120 --> 0:02:17.880 you know, national security. On the ramification is the following 0:02:17.919 --> 0:02:20.880 that business is find it really really difficult going forward 0:02:20.919 --> 0:02:23.600 to plan ahead, whether it's long term R and D 0:02:23.720 --> 0:02:26.680 or product sales and marketing. Given all of these becomes 0:02:26.760 --> 0:02:31.480 much more of an ad hot basis in your estimation, 0:02:31.760 --> 0:02:34.359 is Oracle the right kind of company to be doing this? 0:02:35.760 --> 0:02:37.560 I mean in the ideal world. This is kind of 0:02:37.560 --> 0:02:41.040 strange because if you think about Oracle is historically it 0:02:41.120 --> 0:02:44.640 is really a B two B company. They sells database services. 0:02:45.080 --> 0:02:48.360 It doesn't really have a large B to C market 0:02:48.760 --> 0:02:51.400 as a result, to know how that they have would 0:02:51.400 --> 0:02:55.320 be arguably much less than Microsoft, where is running xboxes 0:02:55.440 --> 0:02:57.320 or this game, And of course the B two C 0:02:57.520 --> 0:03:01.680 market is huge and sort of the technical ability around 0:03:01.680 --> 0:03:05.000 AI is also amazing too. However, if you're thinking about 0:03:05.000 --> 0:03:08.560 tech talk, probably one of the biggest worry is once 0:03:08.600 --> 0:03:11.919 they've gone through the deal potentially go through, would they 0:03:12.080 --> 0:03:16.920 completely lose their independence. From that angle than Oracle potentially 0:03:16.960 --> 0:03:20.720 becomes much more attractive. That's smaller than know How around 0:03:20.720 --> 0:03:23.520 B two SEA market is much less, and quite frankly, 0:03:23.680 --> 0:03:26.440 they are not very strong in building our goal. So 0:03:26.560 --> 0:03:29.920 from that angle, it's not too surprising that techtok would 0:03:29.919 --> 0:03:34.040 actually prefer a weaker partner in this case Oracle. So 0:03:34.120 --> 0:03:36.720 do you think this deal this arrangement? I guess it's 0:03:36.720 --> 0:03:38.680 probably the better way to term it. Do you think 0:03:38.680 --> 0:03:40.600 this will actually work, Will it go through and we'll 0:03:40.960 --> 0:03:43.880 actually do what it's supposed to do? You think, I 0:03:43.880 --> 0:03:47.800 mean over the long run, um is probably simply a 0:03:47.840 --> 0:03:52.720 cosmetic touch. Um. I mean both administration where it's Beijing 0:03:52.920 --> 0:03:55.680 and and and the US government is most worry oh, 0:03:56.040 --> 0:04:00.400 using this as a excuse of threatening national security. So 0:04:00.440 --> 0:04:02.920 what the business executive right now is trying to come 0:04:03.000 --> 0:04:06.200 up with a mixed shift solution to a piece on 0:04:06.240 --> 0:04:10.120 both sides. But I think going forward, what really have 0:04:10.360 --> 0:04:14.240 highlight is organization can no longer pick side despite the 0:04:14.360 --> 0:04:18.640 tou politics between China and US. If you're any multinational 0:04:18.800 --> 0:04:22.760 particular here in Europe, when I'm talking to executives, they 0:04:22.800 --> 0:04:25.960 really cannot afford to pick side and ignore one market 0:04:26.200 --> 0:04:30.600 versus the other. Um. So that would cause tremendous termoil 0:04:30.760 --> 0:04:33.800 in the business community as all eyes are watching how 0:04:33.839 --> 0:04:38.720 TikTok is trying to find for itself. Yeah, it's really interesting. 0:04:39.200 --> 0:04:44.240 Can you put a value on the USA sets of TikTok, professor? Right? 0:04:44.360 --> 0:04:47.120 I mean right now they're talking about fifty billion dollar right. 0:04:47.440 --> 0:04:50.960 It really comes down to depending on how the US 0:04:51.080 --> 0:04:55.160 acquirer can really leverage both of the user base on 0:04:55.240 --> 0:04:58.880 what is remaining as you can back engineers and our goal. 0:04:59.560 --> 0:05:03.400 So you know, at first I thought Walmart and Microsoft 0:05:03.400 --> 0:05:07.320 bid is interesting because it potentially TikTok can be a 0:05:07.440 --> 0:05:12.440 very interesting e commerce platform to rejuvenate Walmart e commerce. 0:05:12.480 --> 0:05:15.800 So that's a direct symergy that you could put the 0:05:15.920 --> 0:05:18.840 tag price on and fifty billion dollars kind of okay. 0:05:19.520 --> 0:05:23.679 Now for you know Oracle, then I'm not too certain 0:05:23.800 --> 0:05:26.279 what kind of price they would eventually agree a point 0:05:27.080 --> 0:05:31.840 because again without the software algorithm being sold potentially, and 0:05:31.880 --> 0:05:37.240 if Oracles simply a technical partner for distribution itself, then 0:05:37.279 --> 0:05:41.479 the payback becomes much less tenuous in a way. But 0:05:41.640 --> 0:05:45.080 maybe they are motivated by other factors as well. Maybe 0:05:45.080 --> 0:05:47.279 they want to tell a new story to Wall Street, 0:05:47.839 --> 0:05:51.800 or who knows, maybe there's political motivation in stepping in 0:05:51.839 --> 0:05:54.480 and making sure that it goes through UM. But from 0:05:54.480 --> 0:05:59.800 a commercial aspect, fifty billion dollar without some directs in 0:06:00.040 --> 0:06:03.359 g on e commerce for instance, will sound a little crazy. 0:06:04.279 --> 0:06:06.960 So Professor, just thirty seconds left, get your thoughts on 0:06:07.360 --> 0:06:09.560 what some people are talking about is a technology cold 0:06:09.600 --> 0:06:15.560 war between China and I mean, the Internet is totally 0:06:15.600 --> 0:06:18.680 fractured these days. I think what business executive around the 0:06:18.720 --> 0:06:21.000 world we have to understand right now, we're stepping into 0:06:21.080 --> 0:06:24.240 a bipolar world. Right. You have the U S system, 0:06:24.320 --> 0:06:27.680 the China system, the European zone as well, and in 0:06:27.760 --> 0:06:32.479 terms of GDP size, all three are important, and yet 0:06:32.560 --> 0:06:36.920 they conform very different norm very different regulation. So the 0:06:36.960 --> 0:06:39.640 idea you can be one product and spread around the 0:06:39.640 --> 0:06:42.880 world and conquer the world is totally over going forward. 0:06:43.000 --> 0:06:48.200 Decentralization's priority. Conforming to local regulation is second, and the 0:06:48.200 --> 0:06:51.040 third is the customer insight would be very different as 0:06:51.080 --> 0:06:54.080 the Internet world continued to fracture. So I think this 0:06:54.160 --> 0:06:56.960 is one of the key dynamics that executive must prepared 0:06:57.000 --> 0:07:00.000 themselves going forward. How are you? Thank you so much 0:07:00.000 --> 0:07:02.160 for joining us. How would you as the LEGO Professor 0:07:02.240 --> 0:07:06.359 of Management and Innovation I am the business school based 0:07:06.600 --> 0:07:09.960 in Switzerland. And Vonnie, it just seems that there is 0:07:10.000 --> 0:07:12.240 a growing kind of cold war when it comes to 0:07:12.280 --> 0:07:15.560 technology out there. Well, I imagine it's the type of 0:07:15.640 --> 0:07:18.440 thing that we'll see the they'll drawn back upon within 0:07:18.480 --> 0:07:20.280 the next few months. I mean, we already know the 0:07:20.280 --> 0:07:21.880 Steve Milution is going to come to some kind of 0:07:21.880 --> 0:07:24.240 a decision this week on this particular affair of the 0:07:24.280 --> 0:07:26.840 Oragle TikTok affair. And you know, we just don't know 0:07:26.960 --> 0:07:29.920 enough details yet. Yeah, exactly right. Not sure the structure here. 0:07:31.880 --> 0:07:35.400 This is Bloomberg Markets with Paul Sweeney and Bonny Quinn 0:07:35.600 --> 0:07:39.840 on Bloomberg Radio. Merger Monday is back. And it's not 0:07:39.920 --> 0:07:43.320 just TikTok. We also have another big tech deal chip 0:07:43.560 --> 0:07:48.360 giant in video forty billion dollar deal for SoftBank's ARM unit. 0:07:48.400 --> 0:07:51.560 That's a UK based business. Let's get some color on 0:07:51.840 --> 0:07:53.840 that huge deal. We can do that with On and 0:07:53.920 --> 0:07:58.480 Triny Vaston, senior semiconductor and hardware analysts for Bloomberg Intelligence, 0:07:58.760 --> 0:08:00.400 so on, And first of all, give us to your 0:08:01.040 --> 0:08:06.040 foot view of this deal for video. Yeah, hey, Paul, 0:08:06.080 --> 0:08:09.320 good morning money. This is a fantastic deal for video. Right, 0:08:09.360 --> 0:08:14.200 So you're expanding your ecosystem from being a graphics provider 0:08:14.280 --> 0:08:19.720 for um PC, video gamers and m AI engines if 0:08:19.760 --> 0:08:22.280 you made for the data center, and you're expanding it 0:08:22.640 --> 0:08:27.680 to an ecosystem that powers all of um the world's smartphones, 0:08:27.840 --> 0:08:31.400 all of the world's tablets, all of the world's network devices. 0:08:31.480 --> 0:08:36.079 So dramatic expansion of the ecosystem. Um difference between in 0:08:36.240 --> 0:08:40.120 video and ARM is that in video predominantly monetizes directly 0:08:40.160 --> 0:08:44.719 through chips it makes UM, and AR monetizes predominantly through 0:08:44.760 --> 0:08:48.560 intellectual basic building blocks that it makes UM, which are 0:08:48.679 --> 0:08:51.559 used by multiple chip makers, some of whom are in 0:08:51.679 --> 0:08:55.360 video competitors, and and so it creates a little bit 0:08:55.400 --> 0:08:59.359 of a sticky wicket from a regulatory perspective. But financially 0:08:59.400 --> 0:09:02.720 it's great for in video and greatful ARM as well 0:09:02.760 --> 0:09:05.600 because they get a R and D boost UM as 0:09:05.600 --> 0:09:07.240 a result of the deal. What does it mean for 0:09:07.320 --> 0:09:11.960 soft Bank? Was this telegraphed in anyway? Yeah? For soft Bank, 0:09:12.000 --> 0:09:16.120 I would imagine that this raises cash, although the cash 0:09:16.160 --> 0:09:19.480 component of it is much smaller than we had initially 0:09:19.600 --> 0:09:23.880 estimated UM. So it helps them sort of going private 0:09:23.880 --> 0:09:27.960 ambitions are amplified a little bit UM when the deal closes. 0:09:28.000 --> 0:09:30.360 They'll get more in video stock, they'll get more cash, 0:09:30.480 --> 0:09:32.800 they can buy back more of their own stock, etcetera. 0:09:33.080 --> 0:09:35.600 And it further is their ambitions. They've held in video 0:09:35.640 --> 0:09:39.439 stock before, so it's not like the Vidio asset is 0:09:39.480 --> 0:09:43.200 an unknown quantity for softmak alright on it. So your 0:09:43.280 --> 0:09:47.360 technical analysis of the regulatory is a sticky wicked. I 0:09:47.360 --> 0:09:49.520 bet if I spoke to January, who does it for 0:09:49.600 --> 0:09:52.800 a living antitrust animals for Bloomberg Intelligence, would she tell 0:09:52.840 --> 0:09:57.679 me they have a very steep antitrust curve to climb. Yeah, 0:09:57.720 --> 0:10:00.160 I mean you can see that by the fact that 0:10:00.440 --> 0:10:05.400 you need regulatory clearance US, UK, Europe and China, and 0:10:05.480 --> 0:10:09.560 even without the um so the US China friction that 0:10:09.679 --> 0:10:15.440 is currently ongoing, this would dramatically expand the market. You 0:10:15.559 --> 0:10:18.680 have a sort of a neutral player being acquired by 0:10:18.760 --> 0:10:23.680 a customer slash competitor. How will they keep the entity separate? 0:10:24.160 --> 0:10:27.640 Um They would obviously have to promise their process in 0:10:27.679 --> 0:10:33.800 writing that in video will not interfere with ARMS licensing model. 0:10:34.200 --> 0:10:37.960 But the fact that ARMS intellectual property will be first 0:10:38.080 --> 0:10:41.760 known to Invidio, the roadmaps will be first um uh, 0:10:42.600 --> 0:10:45.400 Invidia will have first access to it. That sort of 0:10:45.440 --> 0:10:49.320 creates an advantage for Nvidia that potentially none of its 0:10:49.360 --> 0:10:54.200 others peers, customers, competitors, etcetera. Have. So Jen is probably 0:10:54.240 --> 0:10:56.280 going to tell you the same thing that it is 0:10:56.320 --> 0:11:00.680 a sticky wicket. Yeah, I mean, ARMS customers are Apple 0:11:00.720 --> 0:11:03.440 and Intel. You know, they're the hugest customers in the world. 0:11:04.040 --> 0:11:07.280 ARM will become a US firm if this all goes through, 0:11:07.360 --> 0:11:10.280 how would that impact our relationship with China, given the 0:11:10.360 --> 0:11:13.880 China still controls ARMED China. Yeah, so that's a very 0:11:13.880 --> 0:11:16.880 good question, Monnie. And it was asked on the on 0:11:16.920 --> 0:11:20.680 the recent merger call that Nvidia and ARM had. The 0:11:20.800 --> 0:11:25.320 claim is that the intellectual property origination is still based 0:11:25.360 --> 0:11:29.360 out of Cambridge and are in Video intends to keep 0:11:29.400 --> 0:11:33.360 that asset as is and the intellectual property tomasow as is. 0:11:33.520 --> 0:11:38.520 So technically it's even though ARM becomes owned by an 0:11:38.559 --> 0:11:42.560 American company, the intellectual property origination is out of the UK. 0:11:42.760 --> 0:11:47.640 So technically, according to them anyway, it doesn't come under 0:11:47.679 --> 0:11:51.760 the purvey of the regulators in a more stringent manner. 0:11:52.320 --> 0:11:56.439 I mean, that's going to be a hard, um hard 0:11:56.920 --> 0:11:59.839 piece of thing to convince the US regulators that some 0:12:00.000 --> 0:12:02.600 how they should not be involved in in that piece 0:12:02.600 --> 0:12:05.400 of the pipe because in Video is now the owner 0:12:05.440 --> 0:12:08.280 of that asset. So I think that adds to the 0:12:08.320 --> 0:12:10.920 complexity of this. And then we haven't talked about it, 0:12:10.960 --> 0:12:15.640 but China um Is has used M and a um 0:12:15.640 --> 0:12:19.240 sort of extended out the M and a um um 0:12:19.280 --> 0:12:22.320 a deal regulation for for extend periods of time they 0:12:22.360 --> 0:12:25.600 scuttle the Quacom n XP deal, if you remember, so 0:12:25.640 --> 0:12:29.679 they could use this as a as an example showcase 0:12:29.760 --> 0:12:32.120 to show, Okay, this is how you mess with me, 0:12:32.240 --> 0:12:34.720 this is how I repay you. UM. So that could 0:12:34.720 --> 0:12:36.480 be one part of it. The second part of it 0:12:36.520 --> 0:12:39.480 is also a lot of arms They could squeeze out 0:12:40.400 --> 0:12:43.440 arm licensing deals UM in the in China as a 0:12:43.480 --> 0:12:46.320 result of this, make sure that they have access to 0:12:46.640 --> 0:12:48.640 ARM I P because they're trying to build up their 0:12:48.679 --> 0:12:53.600 semiconductor industry. So a lot of complexity is involved. I think, UM, 0:12:53.679 --> 0:12:57.439 the eighteen months is definitely needed, UM and the regulatory 0:12:57.480 --> 0:13:03.520 part is definitely the stickiest wicket here on a Triny Boston, 0:13:03.559 --> 0:13:06.679 thank you so much. We appreciate that. A big, big 0:13:06.720 --> 0:13:10.000 deal in the space here. The question is when we 0:13:10.040 --> 0:13:12.480 see some more deals of ANNIE. But very interesting on 0:13:12.559 --> 0:13:15.800 a Triny Boston, senior tech analysts for Bloomberg Intelligence giving 0:13:15.880 --> 0:13:19.160 us the breakdown on this NVIDEO deal for armed forty 0:13:19.320 --> 0:13:24.240 billion dollars short of face some repertory uh roadblocks I 0:13:24.240 --> 0:13:27.959 think on many countries ANNIE, that's for sure. But I'll 0:13:28.000 --> 0:13:30.920 tell you something. Investors are obviously very hopeful about this 0:13:30.960 --> 0:13:33.480 because in Video's talk is of seven percent, which is 0:13:33.600 --> 0:13:36.880 quite the move upwards, and it's holding onto those gains 0:13:36.880 --> 0:13:39.400 where we saw Oracle, for example, earlier on make huge 0:13:39.400 --> 0:13:42.360 gains and not hold onto them. Meantime, Jeffries has boosted 0:13:42.400 --> 0:13:45.600 the price targets to six d and eighty dollars from 0:13:45.640 --> 0:13:47.720 five hundred and seventy. And don't forget, we're at five 0:13:47.760 --> 0:13:50.840 twenty now, so that's a full one sixty dollars higher 0:13:50.840 --> 0:13:54.400 than we are now for Nvideo. Based on this extraordinary 0:13:54.400 --> 0:13:59.440 deal flow coming out of the market today, well as 0:13:59.440 --> 0:14:03.400 we saw the number of deals announced today this morning 0:14:03.440 --> 0:14:07.360 over the weekend. Technology remains at the forefront of investors 0:14:07.559 --> 0:14:12.599 perspective that includes such new and exploding technologies as blockchain. 0:14:13.120 --> 0:14:16.040 Get more color on that. We are welcome. We welcome 0:14:16.120 --> 0:14:19.400 Doug Barthwick, chief marketing officer and head of business development 0:14:19.440 --> 0:14:22.680 for a company I n X based in New York City. Doug, 0:14:22.680 --> 0:14:24.760 thanks so much for joining us here. Let's start off 0:14:24.800 --> 0:14:26.720 with just you telling us, give us a good sense 0:14:26.760 --> 0:14:30.720 of what I n X is, what you guys are doing. Sure, so, 0:14:30.920 --> 0:14:32.720 I n X is a company that we set up 0:14:32.760 --> 0:14:35.800 a couple of years ago and it's got two different areas. 0:14:36.280 --> 0:14:39.040 One is for a platform for the trading of cryptocurrency 0:14:39.160 --> 0:14:40.880 and the other one is a platform for the trading 0:14:40.880 --> 0:14:44.280 of security tokens. Now you may not be familiar with 0:14:44.360 --> 0:14:47.160 security tokens, but if you think about something like Nike 0:14:47.240 --> 0:14:50.440 stock trading twenty four hours a day in a digital environment, 0:14:50.800 --> 0:14:53.720 that's what a security token is. And it's our belief 0:14:53.800 --> 0:14:56.960 that in the near future all equities will end up 0:14:57.000 --> 0:14:59.960 going on the blockchain and going digital because of the efficiency. 0:15:00.000 --> 0:15:02.600 So you can find with that. And so we created 0:15:02.840 --> 0:15:05.720 an exchange for trading of digital securities and at the 0:15:05.760 --> 0:15:09.280 same time created a digital security that for the first 0:15:09.280 --> 0:15:11.960 time as an F one registered with the SEC And 0:15:12.000 --> 0:15:13.920 I encourage your listeners to go look at it because 0:15:13.960 --> 0:15:16.280 I'm going to talk about some things and that F 0:15:16.440 --> 0:15:18.520 one is the first one that's ever been done. It's 0:15:18.560 --> 0:15:21.440 on the blockchain. But also this is the first I 0:15:21.560 --> 0:15:23.800 p O and the U S history that accepts at 0:15:23.840 --> 0:15:26.600 the I p O Bitcoin, Ether and U s dc 0:15:26.920 --> 0:15:29.440 or or are stable coins, so first time you can 0:15:29.480 --> 0:15:32.520 accept cryptocurrencies, and the I p O is currently ongoing. 0:15:33.400 --> 0:15:37.200 So Doug explained to us how this is different from competition. 0:15:37.400 --> 0:15:40.120 I believe the wink of as Twins did something like 0:15:40.160 --> 0:15:42.600 this before. Am I right? I could be wrong? Well, 0:15:42.640 --> 0:15:44.600 you are correct, and the wink of as Twins have 0:15:44.800 --> 0:15:47.560 one exchange and Gemini. I think that's the one you're discussing, 0:15:48.040 --> 0:15:51.240 and certainly you know you can trade current cryptocurrencies on that, 0:15:51.440 --> 0:15:54.640 but in terms of security tokens, that's not something that 0:15:54.680 --> 0:15:57.200 they offer right now. And security tokens come under a 0:15:57.320 --> 0:16:01.000 very different regulator than does let's say, cryptocurrency cryptocurrencies come 0:16:01.080 --> 0:16:05.600 under States MT licenses or money transmitter licenses, whereas security 0:16:05.600 --> 0:16:08.720 tokens come under the SEC. And so you know, it's 0:16:08.720 --> 0:16:11.440 a very big step for essentially it's not debt, it's 0:16:11.440 --> 0:16:14.080 not equity, it's a security token or a digital assets 0:16:14.200 --> 0:16:16.800 and that's what we've one come up with, and then 0:16:16.840 --> 0:16:20.520 two we're creating the exchange to trade it. So do 0:16:20.560 --> 0:16:23.560 you have exchanges up and running now trading securities or 0:16:23.560 --> 0:16:27.200 trading assets right now? We do not know. And so this, 0:16:27.200 --> 0:16:29.520 this this raise that we're doing right now is to 0:16:29.880 --> 0:16:33.000 get them on board in terms of getting to market. 0:16:33.240 --> 0:16:35.800 Now we've built them, they're ready to go, but we 0:16:35.880 --> 0:16:38.080 need to raise capital in order to go out and 0:16:38.080 --> 0:16:40.000 get some of the licenses that we're looking for. So 0:16:40.040 --> 0:16:43.000 today we could trade with the US, but we're not 0:16:43.040 --> 0:16:44.960 turning it on yet until we've finished with the I 0:16:45.040 --> 0:16:48.680 p O. Dog. Who are the typical investors in an 0:16:48.720 --> 0:16:52.840 IPO like this, Well, the typical investors are are twofold one. 0:16:52.880 --> 0:16:55.720 You've got the folks that are already understand the crypto environment. 0:16:55.760 --> 0:16:57.440 So that's you know, the folks that are holding bitcoin 0:16:57.560 --> 0:17:00.280 theoryum that that go on and on about it, and 0:17:00.320 --> 0:17:02.720 that's probably about point two percent of the population. Now 0:17:02.760 --> 0:17:04.960 they see what we do as being putting handcuffs on 0:17:05.000 --> 0:17:07.840 securities because our security for the first time has k 0:17:08.040 --> 0:17:10.119 y C and a m L built into it do 0:17:10.280 --> 0:17:12.840 what's called a smart contract. That means you can't tell 0:17:13.000 --> 0:17:15.040 take an I n X token and sell it to 0:17:15.080 --> 0:17:18.080 someone else unless they've already gone through KYC. So this 0:17:18.160 --> 0:17:20.159 is like, you know, a huge, big change now for 0:17:20.240 --> 0:17:24.440 securities markets. So that's of the population they're very interested 0:17:24.480 --> 0:17:27.160 in because this is a giant leap forward for securities markets. 0:17:27.520 --> 0:17:29.280 Not only you know, can you do an I P O, 0:17:29.640 --> 0:17:31.320 but you can also do it you can accept different 0:17:31.320 --> 0:17:33.720 crypts of currencies, but you can also do it whereby 0:17:33.760 --> 0:17:35.760 you could list in many many countries at once with 0:17:35.800 --> 0:17:38.360 the security token just through a couple of lines of code, 0:17:38.400 --> 0:17:41.600 as opposed to tens of millions of dollars of legal fees. 0:17:42.160 --> 0:17:44.600 And so you know, we're really making a big change. 0:17:44.640 --> 0:17:47.080 But also think about this. You know Nike trading twenty 0:17:47.080 --> 0:17:50.600 four hours a day, that would be fantastic. And millennials today, 0:17:50.880 --> 0:17:52.800 of their top five holdings, one of them is g 0:17:52.960 --> 0:17:55.919 BTC or Gray Scale Bitcoin Trust and that means that 0:17:55.960 --> 0:17:59.360 you know that the millennial generation has a great interest 0:17:59.440 --> 0:18:02.399 in digital and yet they don't understand why their dads 0:18:02.480 --> 0:18:04.600 or their moms look at news at four o'clock on 0:18:04.640 --> 0:18:07.000 a Friday, a bad news on an equity and they say, 0:18:07.000 --> 0:18:08.600 don't worry, we'll get out of it at nine thirty 0:18:08.640 --> 0:18:10.679 in the morning on the Monday. That just doesn't make 0:18:10.720 --> 0:18:12.920 any sense to them. And this is the Amazon generation 0:18:12.960 --> 0:18:14.680 that wants to be able to do things right now, 0:18:15.320 --> 0:18:17.920 and so we've created a product for folks to trade 0:18:17.960 --> 0:18:22.480 equities immediately, twenty four hours a day. What's the regulatory framework? 0:18:22.520 --> 0:18:26.240 What's the SEC saying? For example, Well, the SEC is 0:18:26.280 --> 0:18:28.080 who have we've been talking to for two and a 0:18:28.119 --> 0:18:30.440 half years. We've spent over nine hundred and fifty days 0:18:30.520 --> 0:18:32.720 creating the F one that can be found on the 0:18:32.800 --> 0:18:35.960 Edgar database, and then then then there it's shows transparency 0:18:36.000 --> 0:18:38.920 into a field that traditionally no one's ever had transparency. 0:18:39.280 --> 0:18:41.120 I think when you think about crypto and you think 0:18:41.160 --> 0:18:43.879 about exchanges, you know they're all privately owned, most of 0:18:43.880 --> 0:18:46.720 them are held off shore. There certainly isn't transparency. What 0:18:46.840 --> 0:18:49.080 we're trying to do is raise money through a community 0:18:49.280 --> 0:18:51.440 and build a community. When someone comes in and buys 0:18:51.480 --> 0:18:54.000 the token, we see that as being a potential user 0:18:54.040 --> 0:18:56.800 of our platform as well. So I mean I think 0:18:56.800 --> 0:19:00.360 that's a good run up. Yeah, it's so interesting. I mean, 0:19:01.040 --> 0:19:03.600 if you know nothing about the blockchain and you know 0:19:03.680 --> 0:19:08.120 nothing about cryptocurrencies, would you still advise somebody like that 0:19:08.240 --> 0:19:10.840 to put, you know, give this a go. Well, I 0:19:10.840 --> 0:19:12.720 wouldn't advise anyone to give it a go. I think 0:19:12.720 --> 0:19:14.119 that they should look at the F one that the 0:19:14.119 --> 0:19:17.400 ad your database. But if you do believe that everything, 0:19:17.600 --> 0:19:21.480 whether it's equities, whether it's fixed income, whether it's commodities, 0:19:21.480 --> 0:19:23.560 are going to move onto the blockchain, and we already 0:19:23.560 --> 0:19:25.560 know that China's and talks to do that with their 0:19:25.560 --> 0:19:27.639 currency that europs and talks to do that that the 0:19:27.720 --> 0:19:30.719 US is discussing a digital dollar. So if currencies are 0:19:30.720 --> 0:19:33.639 going to move on the blockchain, and given that regulators 0:19:33.680 --> 0:19:35.320 of love K y C and they like to know 0:19:35.359 --> 0:19:37.440 who owns what where, and they like to be able 0:19:37.480 --> 0:19:40.080 to make sure that bad actors don't own things, then 0:19:40.119 --> 0:19:42.199 I think you can be pretty sure that equities are 0:19:42.200 --> 0:19:44.320 going to move onto the blockchain as well. And we're 0:19:44.359 --> 0:19:48.280 the first. Well dog, thank you for coming on and 0:19:48.480 --> 0:19:51.639 giving us the the explanation about all of this, and 0:19:51.680 --> 0:19:53.480 I do hope you come back and explain to us 0:19:53.480 --> 0:19:57.159 more what's going on as we progress. It seems like 0:19:57.320 --> 0:19:59.560 the blockchain and come to currencies have been around a while, 0:19:59.680 --> 0:20:03.280 but I'm certainly no more educated than I was before. 0:20:03.480 --> 0:20:05.680 I have to re educate myself every couple of years 0:20:05.680 --> 0:20:07.480 on all of this because the change is so fast 0:20:07.520 --> 0:20:08.600 and it does seem to be a bit of a 0:20:08.680 --> 0:20:11.360 land crab as well. So really interesting to follow Dug 0:20:11.400 --> 0:20:13.440 Boarth with because chief marketing officer and head of business 0:20:13.480 --> 0:20:18.320 development at i n X well a good start to 0:20:18.480 --> 0:20:21.679 the week from the equity market's perspective, lead in large 0:20:21.760 --> 0:20:24.600 part by sixty nine billion dollars worth of M and 0:20:24.680 --> 0:20:28.240 A announced bringing Merger Monday back to the markets, back 0:20:28.280 --> 0:20:30.199 to the four to get a sense of kind of 0:20:30.240 --> 0:20:32.200 how we think about all this M and A in 0:20:32.200 --> 0:20:35.119 the context of where we are with the markets. We 0:20:35.200 --> 0:20:40.120 welcome Peter Kenny, father of Kenny's Commentary and Strategic Board Solutions. Uh, Peter, 0:20:40.160 --> 0:20:43.240 thanks so much for joining us here. Well, Merger Monday 0:20:43.280 --> 0:20:45.639 is back with a vengeance that pushes the pandemic at 0:20:45.720 --> 0:20:47.440 least a little bit off the front page, at least 0:20:47.480 --> 0:20:50.720 for a moment here. What do you make of this 0:20:50.800 --> 0:20:52.639 spade of deals that we're seeing today? What does it 0:20:52.680 --> 0:20:56.159 mean for the market from your perspective? Well, thanks for 0:20:56.200 --> 0:20:59.239 having me um. First of all, the timing couldn't be 0:20:59.240 --> 0:21:02.480 better because if you look at the Nastack, SMP and 0:21:02.560 --> 0:21:05.359 the Dow all closed last week at or close to 0:21:05.400 --> 0:21:09.280 their fifty day moving averages, which which means basically there 0:21:09.320 --> 0:21:13.320 was effectively a retest of that low that was established 0:21:13.440 --> 0:21:17.520 on Monday of last week. So this is really really 0:21:17.560 --> 0:21:19.960 up Tuesday of West week. This is really welcome news. 0:21:20.119 --> 0:21:22.800 It's great. I love the fact that it's big names 0:21:22.840 --> 0:21:27.520 like Oracles, saft Bank, the vaccine stories and really really important, 0:21:27.520 --> 0:21:30.760 and that's lifting the market. It really is coming at 0:21:30.800 --> 0:21:32.720 a great time because in the note that I wrote 0:21:32.720 --> 0:21:36.320 and put out the street this morning, um my concern 0:21:36.440 --> 0:21:40.000 was that with all the indexities industries really resting on 0:21:40.040 --> 0:21:42.520 a fifty day and without any news out there that 0:21:42.560 --> 0:21:45.680 I could you know, shake a stick at, it seems 0:21:45.760 --> 0:21:47.399 to me or it seemed to me as though there 0:21:47.440 --> 0:21:50.320 was going to be continued weakness and potentially a drop 0:21:50.320 --> 0:21:53.280 all of the fifty day for all three Well, does 0:21:53.280 --> 0:21:58.680 the Oracle news signals that the China standoff might get 0:21:58.720 --> 0:22:02.240 sort of eased if you like, because it's it's a 0:22:02.280 --> 0:22:04.320 major deal. This was one of the ways that the 0:22:04.320 --> 0:22:09.560 Trump administration was going after China in a very practical manner. Yes, absolutely, Bonny, 0:22:09.960 --> 0:22:14.240 this was actually a very significant deal on several fronts. 0:22:14.320 --> 0:22:17.119