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Speaker 1: From the heart of where Innovation, money and power Collie

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay. Hi'm Emily Chang in New York and this

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Speaker 1: is Bloomberg Technology. Coming up in the next hour. He

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Speaker 1: helped introduce RYL Samberg to Mark Zuckerberg and the rest,

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Speaker 1: they say is history. I'll be joined by Roger mcnaman

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Speaker 1: to talk about that meeting, Samberg's legacy and where the

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Speaker 1: company goes from here. Plus he sat on Facebook's board

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Speaker 1: for seven years, He's known Samberg for more than twenty.

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Speaker 1: My exclusive conversation with Don Graham on Samberg's role in

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Speaker 1: building the company and where Meta goes from here? And

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Speaker 1: inflation keeps raging, no relief in sight according to President

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Speaker 1: By This as the market and tech and cryptos dock

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Speaker 1: in particular, keep whip sawing. We will be joined by

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Speaker 1: Sebastian Malaby, author of a new book, The Power Law,

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Speaker 1: about whether Silicon Valley can hold onto its role as

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Speaker 1: a center of power. Later in the hour, why do

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Speaker 1: you want to stay on Samberg's exit now from met

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Speaker 1: end what it means for the company going forward. I'm

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Speaker 1: joined by Jasmine Emberg principal analysts for Insider Intelligence. She

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Speaker 1: covers social media and influencers look jasmine from a business perspective.

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Speaker 1: Controversy about the business model aside. How confident are you

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Speaker 1: that Meta can keep the money machine running without Cheryl Samberg? Well,

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Speaker 1: I think you know. First of all, we have to

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Speaker 1: address how powerful um Sandberg was able to build um

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Speaker 1: Meta's ad business When she started In two thousand and eight,

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Speaker 1: we at the market are now Insider Intelligence estimated that

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Speaker 1: Facebook's worldwide ad revenues were just two hundred and fifty

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Speaker 1: million dollars. Now, within two years that figure had grown

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Speaker 1: to one point three billion dollars, and flash forward to today,

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Speaker 1: Meta is the second largest digital ad seller in the

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Speaker 1: world after Google. I mean, it's safe to say that

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Speaker 1: the new leadership certainly has their work cut out for

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Speaker 1: them to continue growing um metas business. But um It's

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Speaker 1: still in a pretty good place despite all of the

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Speaker 1: headwinds that it is facing right now. One Bloomberg take

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Speaker 1: put it like this, Cheryl Sandberg is leaving Facebook at

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Speaker 1: a perilous moment. What is your outlook on how fast

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Speaker 1: Facebook and Instagram and WhatsApp can continue to grow while

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Speaker 1: the company is making this massive pivot to the metaverse,

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Speaker 1: and you're absolutely right. I mean, Meta is in the

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Speaker 1: process of undergoing this massive shift towards the metaverse, and

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Speaker 1: you know it is going to be something that is

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Speaker 1: you know, pretty far down the line. It is still

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Speaker 1: years and years away for the metaverse to become a reality.

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Speaker 1: And right now there are some really immediate challenges that

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Speaker 1: Facebook has to grapple with and Instagram has to grapple

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Speaker 1: with as well. That as an ad revenue slowdown, that

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Speaker 1: is a slowdown in user growth, it is also slowdown

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Speaker 1: in time spent on on Facebook. Now Instagram of course,

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Speaker 1: has been able to pick up the flack for Facebook

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Speaker 1: for quite some time. That's proving to be more difficult.

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Speaker 1: Um So it's going to require quite a bit of

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Speaker 1: discipline and innovation to continue growing all of Meta's platforms.

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Speaker 1: Jasmine Hamburg, Insider Intelligence principal analyst. Thank you, Jasmine. Obviously

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Speaker 1: lots remains to be seen. Now Sandberg might never have

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Speaker 1: been at Facebook if it wasn't for my next guest.

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Speaker 1: He was an early investor and a mentor to Mark Zuckerberg.

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Speaker 1: Here's Roger McNamee describing how he helped broker their partnership.

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Speaker 1: It's Sheryl Sandberg. Have you ever met her? He said,

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Speaker 1: I think I sugar hands once at a party I

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Speaker 1: don't know at all, and I said, I want to

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Speaker 1: try to get her to come and talk to you

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Speaker 1: about being your chief operators somewhere, And next thing you know,

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Speaker 1: she goes there is the chief operating officer, at which

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Speaker 1: point basically they didn't need me anymore. I mean, she's

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Speaker 1: way smart, and I am I mean one of the

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Speaker 1: most I mean one of the most capable people I

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Speaker 1: have ever met in any way. Joining me now Roger mcmee,

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Speaker 1: co founder of Elevation Partners and author of the book

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Speaker 1: Zucked Waking Up to the Facebook Catastrophe. So, Roger, we

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Speaker 1: all know that your feelings about Facebook have changed over

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Speaker 1: the years. I'm so curious what your first thought was

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Speaker 1: when you saw the news that Cheryl was leaving. I

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Speaker 1: take no joy in Sheryl Sandberg's resignation is CEO of Meta.

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Speaker 1: For me, it's a really complicated situation because Cheryl was

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Speaker 1: for many years a friend of mine and somebody I

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Speaker 1: advised when she worked in the Clinton White House. She

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Speaker 1: was responsible for introducing me to my future business partner,

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Speaker 1: bono and for that, I'll always be incredibly grateful, and

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Speaker 1: I tried to reciprocate. She came out to Silicon Valley

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Speaker 1: in two thousand one, hung out in my office for

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Speaker 1: a few weeks, and I introduced her to John Dore,

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Speaker 1: who was on the board at Google, which began the

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Speaker 1: process of her going to work at Google and creating

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Speaker 1: the add engine behind AdWords, which obviously put Google on

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Speaker 1: the map economically. So Cheryl and I were really close,

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Speaker 1: and when she made it clear to me that she

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Speaker 1: was thinking about leaving Google, I thought that Facebook was

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Speaker 1: the right place for her, and so I talked to

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Speaker 1: Mark about it for months, and you know, he definitely

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Speaker 1: wanted a strong number two, and I think he was

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Speaker 1: trying to figure out in his own mind what factors

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Speaker 1: would really matter. But Cheryl had I thought two things

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Speaker 1: that really were decisive. The experience at Google was the

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Speaker 1: closest you're ever going to get to the business problem

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Speaker 1: faced at Facebook. And secondly, you know, she had a

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Speaker 1: maturity and an experience both in the political and the

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Speaker 1: business realm that I thought would really complement mark strengths.

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Speaker 1: And keep in mind, I think when she went there,

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Speaker 1: they had fewer than a hundred million users. And so

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Speaker 1: it was for me at least not possible at that

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Speaker 1: time to imagine the kind of harms that eventually came

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Speaker 1: out of Facebook, in part because the business model that

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Speaker 1: did the harm wouldn't be invented for another five years.

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Speaker 1: And so it you know, I look back on it

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Speaker 1: and I go, oh my god, what could have been?

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Speaker 1: I mean, Cheryl is so talented, you know, she could

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Speaker 1: have both made a very successful company at Google and

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Speaker 1: been a hero for democracy and public health. And how

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Speaker 1: could she have done that? How could she have done that? Roger, Well,

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Speaker 1: let's take a few simple examples. So in Facebook was

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Speaker 1: implicated by the United Nations in an ethnic cleansing that

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Speaker 1: took place in mean Mar, a country in Asia in

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Speaker 1: which Facebook had no employees on the ground, had almost

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Speaker 1: no employees that spoke the language, and they certainly had

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Speaker 1: no expertise in need of the politics or the culture

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Speaker 1: of the country. And it became clear that the product

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Speaker 1: was being used by bad actors to instigate in ethnic cleansing.

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Speaker 1: And different company, a different group of people might have

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Speaker 1: taken that as a warning. It might have said, you know,

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Speaker 1: we really shouldn't be doing business in countries where we

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Speaker 1: don't have an economic interest in having people on the ground,

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Speaker 1: where we're not willing to invest in the language, where

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Speaker 1: we're not willing to invest in the culture. That kind

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Speaker 1: of thing is super oubes. The FBI warren Facebook in

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Speaker 1: early that Q and On was a very dangerous extremist

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Speaker 1: group and they weren't Facebook. That there was a lot

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Speaker 1: of recruiting going on on Facebook, and Facebook ignored it.

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Speaker 1: Between twenty nineteen Spring of twenty nineteen the spring, about

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Speaker 1: a one year period, roughly two million people were radicalized

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Speaker 1: into Q and On on Facebook. And again that's based

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Speaker 1: on Facebook admitting that there were at least three million

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Speaker 1: members of Q and on groups by and internal Facebook

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Speaker 1: reports released by the whistle Blower that showed that's sixty

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Speaker 1: percent of the time when people joined an extremist group

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Speaker 1: on Facebook, it's just Facebook recommended, and so they were

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Speaker 1: responsible for that. Those are things that a different group

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Speaker 1: of people I would have said, you know what, we

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Speaker 1: don't want to be involved in that, because if they've

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Speaker 1: taken action on Q and on, they might have prevented

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Speaker 1: the insurrection, because the people who participated the insurrection have

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Speaker 1: been radicalized into Q and at first, and again, all

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Speaker 1: of these things are about the culture of the company.

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Speaker 1: Do you prioritize the well being of the people who

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Speaker 1: use your product? Do you prioritize the well being of

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Speaker 1: the people affected by your product? And the reality was

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Speaker 1: they viewed shareholder interest as the only thing that matters,

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Speaker 1: and so when it came time to thinking about their

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Speaker 1: users or the other people affected by it, that just

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Speaker 1: wasn't a consideration. And it's that's certainly not unique to Facebook.

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Speaker 1: What was unique to Facebook was the impact that it

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Speaker 1: could have on those people, either in a pandemic or

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Speaker 1: in an election cycle, or related to some kind of

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Speaker 1: extreme it. So clearly you think her legacy is complicated,

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Speaker 1: and I think many people would agree with you. Let's

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Speaker 1: talk about where Facebook or Meta is now going. I

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Speaker 1: asked her about this pivot to the metaverse and whether

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Speaker 1: having to create a whole new business model or evolve

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Speaker 1: Facebook's current business model for a future that doesn't yet

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Speaker 1: exist was one of the reasons she's leaving. Take a

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Speaker 1: listen to what she told me when we spoke. We

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Speaker 1: have a current business, which is our current apps connecting

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Speaker 1: customers to businesses, and I think there's a lot of

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Speaker 1: opportunity there right right now, but also over the long run,

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Speaker 1: and then the metaverse is a much longer term business opportunity,

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Speaker 1: and it's going to take some of the same form

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Speaker 1: and that I believe we will be a place and

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Speaker 1: then the metaverse will be a place where businesses and

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Speaker 1: consumers connect. But I think the exact form that takes

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Speaker 1: in something that will be figured out over the next

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Speaker 1: number of you a much longer term. How optimistic are

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Speaker 1: you about Meta realizing this future of the metaverse, turning

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Speaker 1: it into a business, And what do you think the

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Speaker 1: company looks like without Cheryl Sandberg as it moves towards

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Speaker 1: this new, but you know, very uncertain future. Emily, I

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Speaker 1: think Facebook's near term is complicated enormously by Apple's application tracking,

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Speaker 1: transparency and whatever things that follow that, which give iPhone

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Speaker 1: users the ability to opt out of having their data

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Speaker 1: shared with Facebook and others. Facebook's already said that that's

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Speaker 1: going to be a ten million, ten billion dollar hit

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Speaker 1: to revenue this year, and it wouldn't shock me if

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Speaker 1: the number got bigger than that, because I don't think

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Speaker 1: Apple's done. Secondly, Instagram, which has really been supporting the

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Speaker 1: growth of the business, is under assault from TikTok, and

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Speaker 1: I do think that TikTok is essentially locking Instagram into

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Speaker 1: the group of users it has today by siphoning off

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Speaker 1: all the new entrants into social media, and that's really

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Speaker 1: bad for Facebook's growth long term. And then you get

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Speaker 1: to the metaverse, where I think Facebook's current concept of

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Speaker 1: the metaverse is insane. I mean, to my mind, virtual

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Speaker 1: reality is a brilliant idea, and if you focus narrowly,

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Speaker 1: if you say focus on video games, for example, the

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Speaker 1: opportunities are unlimited. But the way Facebook's looking at it,

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Speaker 1: where they're essentially going to try to replace reality with

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Speaker 1: a virtual reality across every possible doll mean, entertainment, work, sports,

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Speaker 1: the whole nine yards. To me, that's just that's never

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Speaker 1: gonna work. And the amount of money they're spending on

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Speaker 1: it today, I just think it's certifiably insane. If I

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Speaker 1: were a shareholder, I would be incensed about this, because

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Speaker 1: it's not that the metaverse is a terrible idea, it's

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Speaker 1: that their idea of the metaverse is a terrible idea.

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Speaker 1: And I don't think it matters how long they take.

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Speaker 1: They're just by the time they get there, it won't

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Speaker 1: be interesting. Roger McNamee Elevation Partners. Always great to have

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Speaker 1: you here, Roger, thank you for sharing your thoughts with us.

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Speaker 1: Now onto a Bloomberg exclusive. We've learned that Tiger Global's

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Speaker 1: hedge fund has lost a whopping fifty this year, and

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Speaker 1: in a letter to investors, the firm is vowing to

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Speaker 1: try and earn that money back. Joining his now Sebastian Malaby,

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Speaker 1: Senior Fellow at the Council on Form Relations, for more

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Speaker 1: on this and the wider venture capital landscape. He is

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Speaker 1: also the author of The Power Law, Capital and the

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Speaker 1: Making of the New Future, a book on the rise

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Speaker 1: of VC and Silicon Valley. Sebastian, so great to have

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Speaker 1: you with us. I want to start on this Tiger

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Speaker 1: Global news because you have pointed out that Tiger Global

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Speaker 1: has been writing massive checks for companies with very little revenue.

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Speaker 1: How big a problem has this been in Silicon Valley.

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Speaker 1: I think it has been a problem. It's come with

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Speaker 1: a lot of weak governance, right because the Tiger Global

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Speaker 1: model included writing a huge check to somebody who was

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Speaker 1: already running a Unicorn. That person, of course, because they've

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Speaker 1: created Unicorn, is a bit imperious and then on top

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Speaker 1: of that, you say, we don't want to go on

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Speaker 1: your board. We're not going to exercise governance, and we

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Speaker 1: defer to you because you were the founder and you're

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Speaker 1: so great, and I think that's a good way of

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Speaker 1: overseeing companies basically decide I'm not going to oversee them.

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Speaker 1: And that's why you had this governance vacuum for unicorns.

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Speaker 1: That's why you see companies like we Work or Uber,

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Speaker 1: which actually started out pretty well in their early phases,

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Speaker 1: go off the moral and commercial rails because nobody was

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Speaker 1: monning the store on the board. So what's your wead

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Speaker 1: on this massive market correction and how it will impact

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Speaker 1: venture capital and private companies. Well, clearly it's bound to

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Speaker 1: effect these late stage growth investors like Tiger Glogle first

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Speaker 1: because they were investing late, so the exit that was

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Speaker 1: anticipated was only a year away. That's in the public markets.

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Speaker 1: Of the public markets correct by like the nurse Back

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Speaker 1: has done this year, of course, your late stage privates

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Speaker 1: are going to go down with it. The second thing

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Speaker 1: is that the cost of capital matters when you're writing

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Speaker 1: a check for a hundred million bucks, right if you're

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Speaker 1: doing early stage VC, you're writing a ten million dollar check.

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Speaker 1: It doesn't matter so much what the interest rate is,

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Speaker 1: but it is material when it gets to these very

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Speaker 1: big checks the Tiger Global is writing. So they've faced

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Speaker 1: the brunt of the correction. They've announced that they're going

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Speaker 1: to move into doing earlier stage investing, do more seed

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Speaker 1: and so forth. That's obviously a smart pivot if they

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Speaker 1: know how to do seed, because it is a different discipline.

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Speaker 1: And then the question for the broader venture capital businesses,

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Speaker 1: how does this ripple down the stack? And it doesn't

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Speaker 1: mean that Series C valuations go down a lot, because

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Speaker 1: Tiger Global is no wanting to not wanting to pay

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Speaker 1: quite so much. In Seriously, if serious C goes down,

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Speaker 1: does that mean Serious A goes down? And there's a

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Speaker 1: certain point, Emily where there's a problem because the cost

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Speaker 1: of hiring engineers is ultimately set by Google. If Google

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Speaker 1: is going to continue paying a lot, then the startups

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Speaker 1: have to pay a not to get good engineers. And

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Speaker 1: if that price is not reset the price of talent,

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Speaker 1: then you know, a small adventure capital check in a

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Speaker 1: Series A is going to make it difficult for the

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Speaker 1: company to work. Now, your book tells a riveting story

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Speaker 1: of the history of venture Capital, which you'll have to

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Speaker 1: read if you want to learn more. You argue that

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Speaker 1: Silicon Valley and venture capital is the main reason that

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Speaker 1: Silicon Valley is Silicon Valley. How confident are you that

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Speaker 1: other Silicon Valleys can emerge or are emerging elsewhere, whether

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Speaker 1: it is Boston or Austin, or New York or London

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Speaker 1: or China. So I think the story up to around

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Speaker 1: two thousand five is basically the Silicon Valley venture capitalists

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Speaker 1: had a special source that other people didn't understand. They

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Speaker 1: had this power law approach where they were quite happy

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Speaker 1: to write eight checks out of ten that would end

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Speaker 1: up losing money, and then a couple would have these

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Speaker 1: extreme right tail power law returns that would make up

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Speaker 1: for allal losers. And although that sounds a bit obvious now,

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Speaker 1: before around two thousand five, vcs in Boston didn't really

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Speaker 1: get it, vcs in New York mostly probably didn't get

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Speaker 1: it either, and certainly nowhere else in the world, maybe

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Speaker 1: with the exception of Israel, did anybody get it. And

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Speaker 1: then in two thousand five American vcs from Silicon Valley

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Speaker 1: went to China and they moved into India. The whole

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Speaker 1: Israel e Consistent took off south the station began, and

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Speaker 1: during code we've seen it spread to Austin, Miami and

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Speaker 1: so forth. My belief is that the fundamental mindset of

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Speaker 1: Silicon Valley venture capital is now spreading pretty much everywhere,

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Speaker 1: and that as it arrives in different geographies, it transforms

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Speaker 1: the attitude entrepreneurship. People take more risk, and you start

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Speaker 1: up cultures which hitherto had been kind of concentrated. Cilicon

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Speaker 1: Valley is going to be everywhere. Now. We've been covering

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Speaker 1: the big story of Cheryl Samberg leaving Meta, and I've

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Speaker 1: heard so many vcs over the years say we're just

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Speaker 1: trying to find the next Facebook. Facebook story of course

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Speaker 1: has got a lot more complicated. But what is going

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Speaker 1: to drive the next cycle of venture capital and the

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Speaker 1: quest to find the next Facebook or maybe it's a

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Speaker 1: next something else? Well, you know, Facebook was amazing because

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Speaker 1: it was this software company that scaled unbelievably fast. And

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Speaker 1: the characteristic of both sas and consumer software is that

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Speaker 1: you don't need very much capital to have an enormous

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Speaker 1: value creation effect, right, And if you're looking at something

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Speaker 1: that can do an equivalent miracle, the most likely frankly

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Speaker 1: is crypto, right. I know we've had this big correction recently,

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Speaker 1: but if you think of the story of unite swap okay,

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Speaker 1: a guy called Haydn is in his apartment in New

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Speaker 1: York City and he gets laid off from a engineering

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Speaker 1: job at Siemens, and then he starts to write code

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Speaker 1: because his flatmate, his housemate is is somebody who works

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Speaker 1: for Ethereum, and he creates this automatic market maker which

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Speaker 1: goes on the Ethereum blockchain. And this individual, pretty much

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Speaker 1: as an individual creates a unicorn by himself. I mean,

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Speaker 1: that's even more amazing than Instagram, which was people creating

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Speaker 1: a unicorn. So I think if you're asking specifically, what

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Speaker 1: can do a Facebook style value creation with enormous leverage

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Speaker 1: on a small number of talented people, I think it's

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Speaker 1: crypt We will be watching if it is. Indeed. Sebastianality,

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Speaker 1: senior fellow at the Council on Foreign Relations, author of

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Speaker 1: a new book, Power Law. Please check it out. Thanks Sebastian.

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Speaker 1: We'll have much more head this this blue work a

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Speaker 1: few other stories we continue to watch. Ford is investing

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Speaker 1: three point seven billion dollars in factories across three midwestern

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Speaker 1: US states to pump out more electric cars and traditional

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Speaker 1: gas fueled cars, and a sweeping expansion that will create

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Speaker 1: in union jobs. Five four plants will be expanded to

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Speaker 1: proce more hot sellers like the electric F one fifty

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Speaker 1: lightning pickup, and roll out new models, including a new

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Speaker 1: battery powder commercial car. Plus. The crypto business, run by

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Speaker 1: billionaire brothers Cameron and Tyler Winklevoss, is making its first

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Speaker 1: ever job cuts. Gemini Trust is slashing ten percent of

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Speaker 1: its staff as trading across the industry plunges. In a

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Speaker 1: memo obtained by Bloomberg, the brothers blame the job called

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Speaker 1: so what they called Crypto Winter. Last year, Gemini said

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Speaker 1: it raised four million dollars in a round of funding

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Speaker 1: that valued the company at seven point one billion dollars.

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Speaker 1: Coming up, my exclusive conversation with former Facebook board member

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Speaker 1: Don Graham on Cheryl Sandberg's departure and what he thinks

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Speaker 1: is next for a woman he's known for more than

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Speaker 1: twenty years. He joins us, next, this is Bloomberg. Welcome

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Speaker 1: back to bloomber Technology. I Emily Chang in New York.

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Speaker 1: Shares of the electric truckmaker Nicola rising Bloomberg reporting the

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Speaker 1: latest twist in the story of the company's founder, Trevor Milton,

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Speaker 1: who had to resign as chair last year. I mean

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Speaker 1: regulatory probes voted against the company at its annual meeting

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Speaker 1: to issue more stock are ed Ludlow broke that story

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Speaker 1: and has all the details on what it means. Ed. Yes,

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Speaker 1: So the proposal the annual general meeting was to include

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Speaker 1: the shares increase the shares outstanding from six d million

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Speaker 1: to eight hundred, meaning down the line Nikola could sell

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Speaker 1: equity to raise money. Now, the biggest shareholder, the former chairman,

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Speaker 1: the founder, Trevor Milton, according to sources, voted against that measure,

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Speaker 1: and it's really hard to understand why. On the one hand,

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Speaker 1: he wouldn't want to dilute his own holdings and diminish

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Speaker 1: the value of his holdings. On the other, voting against

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Speaker 1: that could inhibit the company from raising money, which means

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Speaker 1: the company suffers, and down the line the shares full. Oh,

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Speaker 1: there he is in the screen. We've all been wondering

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Speaker 1: where he is because he faced his trial next month.

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Speaker 1: You'll remember, and Emily accused of deceiving investors and exaggerating

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Speaker 1: about the company's technology and claims he made about the

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Speaker 1: company's performance. What's also interesting is a lot of retail

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Speaker 1: investors are really into this stock. So the other problem

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Speaker 1: that Nicola had it it's a GM and one of

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Speaker 1: the reasons they had to adjourn it is because nobody voted.

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Speaker 1: They needed a majority of the outstanding stock to vote

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Speaker 1: on the clause to pass it. But even though Trevor

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Speaker 1: Milton voted no, they still didn't get enough shareholders to

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Speaker 1: vote generally speaking, So this is a stock there's not

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Speaker 1: fed as badly as others years. Today it's getting back

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Speaker 1: on its feet, trying to get over the ghost of

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Speaker 1: Trevor Milton. But this was an interesting roadblock and a

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Speaker 1: twist in the story that we probably didn't expect. All right,

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Speaker 1: thanks for the update. I want to get back now

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Speaker 1: to the impending departure of Cheryl Samberg at Facebook now

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Speaker 1: met US chief operating Officer. This is a role she's

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Speaker 1: held for the last fourteen years, growing the company into

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Speaker 1: what it is today. I spoke with her ahead of

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Speaker 1: the announcement and she told me how she came to

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Speaker 1: the decision and how she feels about the company as

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Speaker 1: she leaves it. This was a decision I made that

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Speaker 1: I did not come too lightly, And it really is

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Speaker 1: about how I will spend my time, not how much

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Speaker 1: I believe in the company. I believe in the company,

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Speaker 1: but as much as I ever did, and staying on board.

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Speaker 1: And I really have complete confidence in the key Mark

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Speaker 1: and I have built. I think they're going to do

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Speaker 1: a great job building the future. Or accompanied us a

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Speaker 1: huge part of my life and a huge part of

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Speaker 1: my heart joining me now, Donald Graham. He served on

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Speaker 1: Facebook's board for seven years. He was also the lead

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Speaker 1: independent director when the company went public, and he's known

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Speaker 1: Cheryl Samberg and Mark Zuckerberg since the early two thousands.

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Speaker 1: He's also the former publisher, of course, of the y

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Speaker 1: Shington Post and chair of Graham Holdings Down. So great

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Speaker 1: to have you with us. Thank you for joining us today.

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Speaker 1: Tell us about that Chryl Sandberg you met all those

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Speaker 1: years ago in two thousand one, and what you make

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Speaker 1: of her leaving at this moment today. I met Cheryl

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Speaker 1: in November December of two thousand when I was fishing

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Speaker 1: around as the Clinton administration went out of office to

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Speaker 1: see if there were any business minded people who wanted

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Speaker 1: to stay in Washington maybe worked for a business, So

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Speaker 1: I offered Sheryl a job at the Washington Post. At

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Speaker 1: that point I knew she was a super hot property.

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Speaker 1: Every single person I talked to in the White House said,

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Speaker 1: this is the person you've got to get it is. Ironically,

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Speaker 1: she was offered jobs both by me and by Arthur Salzberger,

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Speaker 1: the publisher of the New York Times. So Cheryl had

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Speaker 1: her choice between the New York Times and the Washington Post,

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Speaker 1: and was crazy enough to pick this Google place that

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Speaker 1: she thought might have a future. So she went off

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Speaker 1: to Silicon Valley. We stayed in touch. I called on

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Speaker 1: her when whenever I would go out there, and then

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Speaker 1: I tried to hire her again. In two thousand seven.

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Speaker 1: I tried to get her to come back to our company,

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Speaker 1: this time as president. I felt that I knew that

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Speaker 1: our company badly needed somebody who knew a lot about

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Speaker 1: technology and Sheryl. Sheryl knew both a lot about technology

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Speaker 1: and a lot about advertising, and knew every big advertiser

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Speaker 1: in the United States, so that would have been quite good.

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Speaker 1: She couldn't do that because she was married to Dave Goldberg,

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Speaker 1: who was making a career as the CEO in Silicon Valley.

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Speaker 1: So then later on she and Mark both called me

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Speaker 1: when she was thinking about going to Facebook. It's clear

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Speaker 1: you think very highly of her. For many people, I

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Speaker 1: think she has a complicated legacy. The critics think she

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Speaker 1: didn't do enough to address the negative consequences of face

431
00:25:00,000 --> 00:25:03,560
Speaker 1: s book. What do you think, you know? Fourteen years

432
00:25:03,600 --> 00:25:07,200
Speaker 1: isn't that long a time. But let us start with

433
00:25:07,440 --> 00:25:12,200
Speaker 1: Facebook when Cheryl Sandberg joined it two thousand eight. When

434
00:25:12,240 --> 00:25:15,000
Speaker 1: she joined, happened to be there that she and Mark

435
00:25:15,080 --> 00:25:17,800
Speaker 1: invited me to join their board. So I went out

436
00:25:17,840 --> 00:25:20,760
Speaker 1: to Facebook for the first time in late two thousand eight.

437
00:25:21,720 --> 00:25:25,800
Speaker 1: Advertising at Facebook at this point consisted of three little

438
00:25:25,840 --> 00:25:28,640
Speaker 1: three line ads on your home page, one of which

439
00:25:28,680 --> 00:25:32,639
Speaker 1: always used the word belly fat. There was absolutely not

440
00:25:32,760 --> 00:25:38,280
Speaker 1: a brand advertising on on Facebook at that point. There

441
00:25:38,359 --> 00:25:41,080
Speaker 1: was next to no revenue because there were next to

442
00:25:41,119 --> 00:25:47,080
Speaker 1: no ads that advertises goodbye and uh Cheryl. As Mark

443
00:25:47,200 --> 00:25:52,240
Speaker 1: had to build Facebook, Cheryl had to build its business.

444
00:25:53,440 --> 00:25:55,440
Speaker 1: It is not too strong to say that in two

445
00:25:55,440 --> 00:25:59,679
Speaker 1: thousand eight, the business, the revenue, the advertising didn't interest

446
00:25:59,720 --> 00:26:03,000
Speaker 1: Mark a lot, and Cheryl had to hire the people

447
00:26:03,000 --> 00:26:07,800
Speaker 1: who were gonna turn Facebook into an actual business, build

448
00:26:07,840 --> 00:26:13,560
Speaker 1: the business, make it work for advertisers. And I knew one. Uh,

449
00:26:13,600 --> 00:26:15,679
Speaker 1: I had one odd status on the board. I was

450
00:26:15,720 --> 00:26:18,159
Speaker 1: the only person who came from an advertising support a bit,

451
00:26:18,359 --> 00:26:22,480
Speaker 1: and I knew that advertising, if you had good advertising,

452
00:26:23,119 --> 00:26:27,720
Speaker 1: it made television or newspapers or Facebook better for users.

453
00:26:28,200 --> 00:26:31,120
Speaker 1: If you had terrible advertising and made it worse for users.

454
00:26:32,080 --> 00:26:35,840
Speaker 1: So Cheryl, I watched Cheryl build that business and it

455
00:26:35,920 --> 00:26:41,359
Speaker 1: was pretty awesome. David Kirkpatrick wrote that Mark Zuckerberg brought

456
00:26:41,440 --> 00:26:45,400
Speaker 1: Cheryl's Hamburg on board in part because of her experience

457
00:26:45,440 --> 00:26:49,560
Speaker 1: and governance and to help Facebook govern itself one day,

458
00:26:49,560 --> 00:26:52,119
Speaker 1: and also to help build a bridge to Washington. This

459
00:26:52,200 --> 00:26:56,080
Speaker 1: is another thing that critics seem to think she failed

460
00:26:56,080 --> 00:26:59,480
Speaker 1: to do. You are at the center of power in Washington.

461
00:27:00,320 --> 00:27:03,199
Speaker 1: How do you think she excelled at that part of

462
00:27:03,200 --> 00:27:08,560
Speaker 1: the role. Well, again, I would go back and ask

463
00:27:08,800 --> 00:27:14,760
Speaker 1: another set of questions. Uh, how many people can you name, Emily,

464
00:27:14,800 --> 00:27:19,680
Speaker 1: with your deep knowledge of American business, who are made

465
00:27:19,680 --> 00:27:23,879
Speaker 1: and made an enormous record as a number two of

466
00:27:23,920 --> 00:27:27,359
Speaker 1: a company currently? How many one two teams are there

467
00:27:28,400 --> 00:27:30,320
Speaker 1: that built a big business? Is where you know the

468
00:27:30,400 --> 00:27:34,600
Speaker 1: number two as well as you know the number one. Yeah,

469
00:27:34,640 --> 00:27:38,120
Speaker 1: I knew people. You know, don KEYO and ROBERTA. Gazetta

470
00:27:38,240 --> 00:27:40,359
Speaker 1: is the first one that comes to mind at Coppec

471
00:27:40,760 --> 00:27:47,359
Speaker 1: who had had a fantastic run. But uh, what always

472
00:27:47,400 --> 00:27:51,800
Speaker 1: strikes me about Cheryl is that as one of the

473
00:27:51,960 --> 00:27:54,600
Speaker 1: as Silicon Valley Royalty is, they're not really the number

474
00:27:54,680 --> 00:27:57,200
Speaker 1: three or four person at Google. She went to work

475
00:27:57,240 --> 00:27:59,960
Speaker 1: for a twenty three year old. She had the curry

476
00:28:00,280 --> 00:28:03,200
Speaker 1: to say, I think Facebook is going to be important.

477
00:28:03,320 --> 00:28:05,919
Speaker 1: I think Mark is a good person, and I'm going

478
00:28:05,960 --> 00:28:07,800
Speaker 1: to go work with him and see what we could

479
00:28:07,800 --> 00:28:12,240
Speaker 1: build together. But they again, you have to remember that

480
00:28:12,320 --> 00:28:15,760
Speaker 1: when she enters the company, there's almost nothing there. There

481
00:28:15,880 --> 00:28:20,480
Speaker 1: is very little revenue, very little advertising, and very little team,

482
00:28:20,520 --> 00:28:22,720
Speaker 1: and she has to build that justice. Mark is building

483
00:28:22,760 --> 00:28:25,960
Speaker 1: the product right, and she talked about that. When I

484
00:28:25,960 --> 00:28:28,359
Speaker 1: spoke with her yesterday, she was thirty eight, he was

485
00:28:28,400 --> 00:28:32,080
Speaker 1: twenty three. It was a leap, a big leap of faith.

486
00:28:32,520 --> 00:28:34,480
Speaker 1: Um I asked her what she's going to do next.

487
00:28:34,640 --> 00:28:38,560
Speaker 1: She talked about her philanthropy, focusing on women's advocacy, spending

488
00:28:38,560 --> 00:28:42,240
Speaker 1: more time with her family, getting married this summer. I

489
00:28:42,280 --> 00:28:45,240
Speaker 1: asked about business in particular, and politics and whether we

490
00:28:45,280 --> 00:28:48,640
Speaker 1: will see her in another business role or a political role.

491
00:28:48,680 --> 00:28:51,720
Speaker 1: Take a listen to what she had to say. I

492
00:28:51,800 --> 00:28:53,880
Speaker 1: learned a long time ago and never make any predictions

493
00:28:53,920 --> 00:28:56,800
Speaker 1: about the future. But I think I think a lot

494
00:28:56,800 --> 00:28:59,200
Speaker 1: of that is pretty unlikely. And I'm really I really

495
00:28:59,240 --> 00:29:02,800
Speaker 1: think there's a lot, hopefully, that I can do with

496
00:29:02,920 --> 00:29:07,000
Speaker 1: my foundation and phil topically. What do you think she'll

497
00:29:07,000 --> 00:29:09,240
Speaker 1: do next on or maybe you know, well, will we

498
00:29:09,280 --> 00:29:12,160
Speaker 1: see her again in business or politics? I don't know,

499
00:29:12,320 --> 00:29:15,560
Speaker 1: because I'll guarantee you Chryl Sandberg doesn't know. But you

500
00:29:15,600 --> 00:29:19,640
Speaker 1: are correct, Emily when you said that Facebook's you know, Facebook.

501
00:29:20,120 --> 00:29:23,000
Speaker 1: Cheryl had fourteen years at Facebook, aid of which where

502
00:29:23,200 --> 00:29:25,960
Speaker 1: people couldn't say enough great things about Facebook and about her,

503
00:29:26,080 --> 00:29:28,680
Speaker 1: And for the last six years, Facebook has been the

504
00:29:28,720 --> 00:29:33,600
Speaker 1: subject of an unusual amount of criticism. I think both

505
00:29:33,640 --> 00:29:37,080
Speaker 1: the praise and the criticism got a little overheated. But

506
00:29:37,640 --> 00:29:40,360
Speaker 1: Cheryl is leaving at a time when Facebook is down

507
00:29:40,400 --> 00:29:44,440
Speaker 1: in reputation, although up in business, and it'll you know,

508
00:29:44,880 --> 00:29:47,040
Speaker 1: she doesn't know what she's going to do next. She

509
00:29:47,120 --> 00:29:48,880
Speaker 1: doesn't know what she's going to be doing five years

510
00:29:48,880 --> 00:29:50,760
Speaker 1: from now or ten years from now. But she is young,

511
00:29:51,440 --> 00:29:56,120
Speaker 1: she is incredibly talented, and whatever she does in the

512
00:29:56,160 --> 00:29:59,000
Speaker 1: rest of her life, she'll do it very well. She'll

513
00:29:59,040 --> 00:30:01,880
Speaker 1: make an enormous fact. She's written two best selling books

514
00:30:01,880 --> 00:30:05,880
Speaker 1: while she was also the CEO of Facebook, and I

515
00:30:05,920 --> 00:30:08,440
Speaker 1: have a feeling that that would that that will continue

516
00:30:08,440 --> 00:30:11,000
Speaker 1: to be a part of her life. It'll be it

517
00:30:11,040 --> 00:30:16,560
Speaker 1: will be a very impressive life, ambitious. Indeed, you wrote

518
00:30:16,560 --> 00:30:19,600
Speaker 1: an op ed don in twenty nineteen titled Why I

519
00:30:19,600 --> 00:30:23,560
Speaker 1: Still Have Faith in Facebook? Do you still have faith

520
00:30:23,560 --> 00:30:30,320
Speaker 1: in Facebook today, knowing the critiques, knowing the negative consequences.

521
00:30:30,440 --> 00:30:33,480
Speaker 1: Do you have faith in Facebook without Cheryl Sandberg? And

522
00:30:33,560 --> 00:30:39,920
Speaker 1: do you believe in the metaverse? Emily? I was an

523
00:30:39,920 --> 00:30:42,720
Speaker 1: insider in Facebook for seven years. I left the board

524
00:30:42,720 --> 00:30:46,360
Speaker 1: in two thousand fifteen. I haven't been an insider since then.

525
00:30:46,480 --> 00:30:48,840
Speaker 1: I am not party to their discussions. I don't know

526
00:30:49,760 --> 00:30:52,720
Speaker 1: in depth any of the most recent business issues you're

527
00:30:52,720 --> 00:30:56,480
Speaker 1: referring to. Yes, I have faith in Facebook. I think

528
00:30:56,600 --> 00:31:00,840
Speaker 1: Mark is a very good CEO. I think Mark Zuckerberg

529
00:31:00,920 --> 00:31:03,040
Speaker 1: is a very good person. I think Cheryl Sandberg is

530
00:31:03,080 --> 00:31:06,040
Speaker 1: a very good person. They have faced decisions that would

531
00:31:06,080 --> 00:31:09,320
Speaker 1: be daunting for anybody. There's never been anything like Facebook,

532
00:31:09,560 --> 00:31:11,840
Speaker 1: just as there's never been anything like Google or Amazon

533
00:31:11,960 --> 00:31:15,200
Speaker 1: or Apple. And they've done their best. I know that.

534
00:31:15,320 --> 00:31:19,080
Speaker 1: I know that they've always done it in a principled manner.

535
00:31:19,640 --> 00:31:24,280
Speaker 1: And yes, I still have faith in Mark outlined a

536
00:31:24,440 --> 00:31:27,280
Speaker 1: team under him, almost all of whom I know. It's

537
00:31:27,280 --> 00:31:31,520
Speaker 1: a team of very good, very highly principled, very admirable

538
00:31:31,600 --> 00:31:34,160
Speaker 1: people who've been at Facebook for most of them for

539
00:31:34,200 --> 00:31:37,240
Speaker 1: eight or ten years and more. Chris Cox, who Mark

540
00:31:37,280 --> 00:31:43,000
Speaker 1: referred to, who runs product at Facebook, uh, is someone

541
00:31:43,040 --> 00:31:45,200
Speaker 1: you should have on your air. He is one of

542
00:31:45,280 --> 00:31:48,680
Speaker 1: the most impressive people I've ever met. He left for

543
00:31:48,720 --> 00:31:52,360
Speaker 1: a time because he didn't like certain business decisions, talked

544
00:31:52,360 --> 00:31:56,560
Speaker 1: it over with Mark returned in the same role. You

545
00:31:56,600 --> 00:32:00,440
Speaker 1: couldn't the Facebook has deep issues to address us. You

546
00:32:00,520 --> 00:32:04,760
Speaker 1: couldn't have better people addressing them than Facebook. Cat Chris

547
00:32:04,760 --> 00:32:07,200
Speaker 1: Cox will be up next. I'm going to send him

548
00:32:07,200 --> 00:32:10,120
Speaker 1: that clip down and see if we'll join us. Don Graham,

549
00:32:10,560 --> 00:32:13,360
Speaker 1: former Facebook board member, thank you so much for joining us.

550
00:32:13,400 --> 00:32:17,040
Speaker 1: So uh important to have your rich historical perspective on

551
00:32:17,080 --> 00:32:20,040
Speaker 1: the company, and Mark and cherw really appreciate it. Thanks

552
00:32:20,040 --> 00:32:35,720
Speaker 1: so much. Bitcoin rebounded after slumping along with stocks Thursday

553
00:32:35,880 --> 00:32:38,520
Speaker 1: met some resistance at the thirty dollar level, where it's

554
00:32:38,520 --> 00:32:41,400
Speaker 1: been trading for the last month. Bloom Works. Katie Greifeld

555
00:32:41,560 --> 00:32:44,200
Speaker 1: here with more on this case. Take it away. I

556
00:32:44,240 --> 00:32:46,520
Speaker 1: can't break the spell. Can't break the spell. Didn't have

557
00:32:46,520 --> 00:32:48,680
Speaker 1: a good day today, I mean tech stock throws. So

558
00:32:48,760 --> 00:32:51,440
Speaker 1: Bitcoin did as well, like you said, over two percent

559
00:32:51,880 --> 00:32:55,600
Speaker 1: on Thursday, right around that thirty thou dollar per coin level.

560
00:32:55,600 --> 00:32:58,200
Speaker 1: And that's important because Bitcoin has been stuck there for

561
00:32:58,200 --> 00:33:00,320
Speaker 1: the better part of a month really since we saw

562
00:33:00,360 --> 00:33:03,240
Speaker 1: the blow up of that terrorist stable coin. What it

563
00:33:03,280 --> 00:33:05,160
Speaker 1: feels like a long time ago, but it was only

564
00:33:05,200 --> 00:33:09,080
Speaker 1: a month ago. So if we can sustainably break above

565
00:33:10,160 --> 00:33:12,640
Speaker 1: per coin, you do have some technical analyst saying that

566
00:33:12,840 --> 00:33:15,440
Speaker 1: there's more blue sky on the charts, but I mean

567
00:33:15,440 --> 00:33:17,560
Speaker 1: it's been a really rough go. We've really been mired

568
00:33:17,600 --> 00:33:20,080
Speaker 1: here and we're still down thirty five percent so far

569
00:33:20,160 --> 00:33:24,360
Speaker 1: this year. And the story about Gemini layoffs, hiring phrases,

570
00:33:24,640 --> 00:33:26,920
Speaker 1: you know, it seems like what's happening at you know,

571
00:33:27,080 --> 00:33:29,560
Speaker 1: general tech companies and tech startups is starting to in

572
00:33:29,640 --> 00:33:32,760
Speaker 1: fact the crypto market as well. Yeah, like the point

573
00:33:32,760 --> 00:33:35,120
Speaker 1: you just made, you're seeing this across the startup industry,

574
00:33:35,160 --> 00:33:38,040
Speaker 1: but particularly in crypto right now. Actually before the show,

575
00:33:38,080 --> 00:33:40,960
Speaker 1: I saw news break that coin base it's extending its

576
00:33:41,000 --> 00:33:43,720
Speaker 1: hiring pause that have been announced two weeks ago. But

577
00:33:43,760 --> 00:33:45,640
Speaker 1: then we just got news that actually they're going to

578
00:33:45,680 --> 00:33:48,760
Speaker 1: resend a number of accepted job offers. Just very painful.

579
00:33:49,000 --> 00:33:51,640
Speaker 1: And that was hours after we got that Gemini news

580
00:33:51,680 --> 00:33:54,320
Speaker 1: that they planned to layoff up to ten percent of

581
00:33:54,400 --> 00:33:58,160
Speaker 1: its workface first, and remember in April Robin Hood laying

582
00:33:58,200 --> 00:34:01,360
Speaker 1: off nine percent of their workforce. This draw down that

583
00:34:01,400 --> 00:34:03,960
Speaker 1: we're seeing, it goes obviously beyond the price of the coins,

584
00:34:04,000 --> 00:34:07,640
Speaker 1: beyond the equity shares. In some cases, it includes layoffs,

585
00:34:07,760 --> 00:34:10,319
Speaker 1: hiring freezes, reduced spending, an investment. It's all playing out

586
00:34:10,320 --> 00:34:13,800
Speaker 1: in cryptol regy. Is there silver lining silver lining depends

587
00:34:13,840 --> 00:34:17,080
Speaker 1: on who you ask, but it did catch my eye.

588
00:34:17,160 --> 00:34:20,560
Speaker 1: There was a fantastic Bloomberg News article today about crypto

589
00:34:20,719 --> 00:34:24,359
Speaker 1: political donations. Actually it is full steam ahead the last

590
00:34:24,400 --> 00:34:28,120
Speaker 1: three months and all of one that's spending total about

591
00:34:28,120 --> 00:34:30,960
Speaker 1: twenty six million dollars, which is amazing because if you

592
00:34:31,000 --> 00:34:33,719
Speaker 1: compare it to other industries, it only falls behind the

593
00:34:33,800 --> 00:34:37,120
Speaker 1: investment industry. That political donation that's more than you saw

594
00:34:37,160 --> 00:34:40,680
Speaker 1: from big tech, big farm, at defense. Crypto really stepping

595
00:34:40,719 --> 00:34:43,600
Speaker 1: up ahead of the mid term elections, so we could

596
00:34:43,640 --> 00:34:46,680
Speaker 1: see it grow even more. But what is also interesting

597
00:34:46,719 --> 00:34:50,120
Speaker 1: that the biggest individual spender Sam Bacuman Freed, he is

598
00:34:50,160 --> 00:34:53,600
Speaker 1: the founder of f t X. Of course he overall

599
00:34:53,680 --> 00:34:56,400
Speaker 1: has pumped in about thirty two million dollars. That is

600
00:34:56,680 --> 00:35:01,080
Speaker 1: seventy of the crypto industries total given SPF of f

601
00:35:01,160 --> 00:35:04,600
Speaker 1: t X, making waves yet again. Okay, Katie, thank you.

602
00:35:05,560 --> 00:35:08,799
Speaker 1: Coming up tackling career development as we navigate a tight

603
00:35:09,040 --> 00:35:11,600
Speaker 1: labor market on a potential downturn, as we were just discussing,

604
00:35:11,600 --> 00:35:14,239
Speaker 1: we'll talk about all that and more with Guild Education

605
00:35:14,520 --> 00:35:18,160
Speaker 1: just at a four point four billion dollar valuation. Guild

606
00:35:18,239 --> 00:35:39,920
Speaker 1: founder Rachel Carlson with me next. This is Bloomberg. Guild

607
00:35:40,120 --> 00:35:43,200
Speaker 1: Education just announced a hundred seventy five million dollars in

608
00:35:43,239 --> 00:35:46,480
Speaker 1: new funding, hitting a four point four billion dollar valuation.

609
00:35:46,800 --> 00:35:49,600
Speaker 1: The company partners with the likes of Macy's and Walmart

610
00:35:49,680 --> 00:35:52,719
Speaker 1: to create new growth opportunities for employees. This at a

611
00:35:52,800 --> 00:35:55,760
Speaker 1: time when there are so many open jobs, which begs

612
00:35:55,760 --> 00:35:58,560
Speaker 1: the question where are the workers? Let's talk about all

613
00:35:58,600 --> 00:36:01,120
Speaker 1: this and more with Guild Education co found or CEO

614
00:36:01,480 --> 00:36:03,440
Speaker 1: Rachel Carlson. So, Rachel, on the one hand, there are

615
00:36:03,480 --> 00:36:06,759
Speaker 1: open jobs. On the other there are layoffs and hiring freezes.

616
00:36:07,600 --> 00:36:10,560
Speaker 1: How do we square these two treads? You know? I

617
00:36:11,320 --> 00:36:14,080
Speaker 1: think at some level, I remember you and others talking

618
00:36:14,080 --> 00:36:16,440
Speaker 1: about the K shooped economy at the beginning of COVID.

619
00:36:16,840 --> 00:36:19,600
Speaker 1: I think that K is now inverting into the X.

620
00:36:20,000 --> 00:36:23,640
Speaker 1: So the layoffs everything we're talking about, those are happening

621
00:36:23,680 --> 00:36:26,880
Speaker 1: in tech and insectors that road the COVID wave. But

622
00:36:27,040 --> 00:36:31,080
Speaker 1: for the average frontline worker, uh, that's not what they're experiencing.

623
00:36:31,160 --> 00:36:35,720
Speaker 1: They're sixty five of frontline workers are talking about looking

624
00:36:35,760 --> 00:36:40,200
Speaker 1: for new work. The great resignation remains, and for most

625
00:36:40,239 --> 00:36:43,000
Speaker 1: of those workers, it's no longer about pay. They've seen

626
00:36:43,120 --> 00:36:45,879
Speaker 1: meaningful pay wage increase to the fifteen dollar an hour.

627
00:36:46,280 --> 00:36:49,200
Speaker 1: They're looking for career advancement, and they're going to companies

628
00:36:49,200 --> 00:36:51,520
Speaker 1: that will prepare them for the future of work. So

629
00:36:51,719 --> 00:36:54,359
Speaker 1: how many workers who get up through up skilled through

630
00:36:54,640 --> 00:36:59,040
Speaker 1: Guild are moving to these open jobs. Yeah, So we're

631
00:36:59,080 --> 00:37:02,719
Speaker 1: really fortunate that we find that of the workers that

632
00:37:02,800 --> 00:37:05,839
Speaker 1: we serve, somebody who engages in the learning program. While

633
00:37:05,840 --> 00:37:09,040
Speaker 1: it work relative to their peer who has the same

634
00:37:09,120 --> 00:37:12,000
Speaker 1: job title but doesn't learn, the learner has a two

635
00:37:12,040 --> 00:37:16,160
Speaker 1: point six x greater increase of being promoted on the job,

636
00:37:16,320 --> 00:37:19,120
Speaker 1: and at some companies like Chipotle, you see that increase

637
00:37:19,200 --> 00:37:21,480
Speaker 1: get all the way up into the seven x so

638
00:37:21,600 --> 00:37:26,120
Speaker 1: sent higher likelihood getting promoted on the job, which obviously

639
00:37:26,200 --> 00:37:29,640
Speaker 1: achieves the economic mobility that so many frontline workers are

640
00:37:29,640 --> 00:37:32,600
Speaker 1: looking for now. Big raise today, and I'm just so

641
00:37:32,719 --> 00:37:36,000
Speaker 1: curious whether you ran into some of these market conditions

642
00:37:36,040 --> 00:37:38,760
Speaker 1: as you were doing this fundraise, did it close before

643
00:37:39,080 --> 00:37:42,279
Speaker 1: all the volatilities we've seen it? And how do you

644
00:37:42,360 --> 00:37:46,440
Speaker 1: plan to conserve this cash that you now have in

645
00:37:46,520 --> 00:37:50,560
Speaker 1: this macro environment? Uh? You know, I've been quoting my

646
00:37:50,640 --> 00:37:53,879
Speaker 1: mom during the fundraise. She always talks about rainy day

647
00:37:53,920 --> 00:37:56,279
Speaker 1: savings accounts, which is what we went out to raise,

648
00:37:56,600 --> 00:37:58,759
Speaker 1: and we kind of did it on a rainy day. So, yes,

649
00:37:58,840 --> 00:38:01,960
Speaker 1: it was an odd time time to be pursuing a fundraise,

650
00:38:02,160 --> 00:38:04,520
Speaker 1: but it was the right move for us. We often

651
00:38:04,560 --> 00:38:06,719
Speaker 1: at Guild talk about our hundred year goals and what

652
00:38:06,719 --> 00:38:09,200
Speaker 1: does it take to build an enduring company, and so

653
00:38:09,360 --> 00:38:13,040
Speaker 1: we're calling this rainy day funding. It's not savings or

654
00:38:13,080 --> 00:38:15,759
Speaker 1: excuse me, it's not spending money, as my mom would say,

655
00:38:15,960 --> 00:38:18,440
Speaker 1: it's to make sure that we can achieve the goals

656
00:38:18,480 --> 00:38:21,279
Speaker 1: we want many years from now, and and we're raising it,

657
00:38:21,840 --> 00:38:25,200
Speaker 1: uh with a mind towards cost discipline, not a goal

658
00:38:25,239 --> 00:38:27,480
Speaker 1: to go spend it or change our budgets. Now, there

659
00:38:27,480 --> 00:38:30,439
Speaker 1: have been some questions about guilds business and how often

660
00:38:30,480 --> 00:38:33,560
Speaker 1: it really does take employees to the next level. How

661
00:38:33,600 --> 00:38:37,040
Speaker 1: are you addressing that? Yeah, I mean we're thrilled with

662
00:38:37,080 --> 00:38:41,560
Speaker 1: the outcomes that we see from our working adult learners. Obviously,

663
00:38:41,640 --> 00:38:44,000
Speaker 1: working to learners move slower, and so we do need

664
00:38:44,040 --> 00:38:47,600
Speaker 1: to change our mindset about how we measure their outcomes.

665
00:38:48,000 --> 00:38:51,040
Speaker 1: UM higher ed's trained to say how fast do you graduate?

666
00:38:51,160 --> 00:38:54,040
Speaker 1: And and that matters, But we think about graduation as

667
00:38:54,080 --> 00:38:58,160
Speaker 1: an input and economic mobility as the outcome. And so

668
00:38:58,280 --> 00:39:02,000
Speaker 1: when our learners are advancding and you know, interestingly enough,

669
00:39:02,040 --> 00:39:05,120
Speaker 1: a large percentage of our learners see a promotion even

670
00:39:05,160 --> 00:39:07,480
Speaker 1: before they complete their program. And that's not how the

671
00:39:07,520 --> 00:39:11,239
Speaker 1: typical professor or hired institution thinks. But if you move

672
00:39:11,280 --> 00:39:14,120
Speaker 1: away from a degree based world to a skills based world,

673
00:39:14,400 --> 00:39:17,200
Speaker 1: you can get rewarded for those skills even before you

674
00:39:17,239 --> 00:39:20,080
Speaker 1: complete the degree. So we're trying to change the paradigm

675
00:39:20,080 --> 00:39:22,960
Speaker 1: of how we think about how do we reward people

676
00:39:23,040 --> 00:39:26,480
Speaker 1: for the skills and the advancement that they want to

677
00:39:26,480 --> 00:39:29,680
Speaker 1: see in their career. I'd love to get your thoughts

678
00:39:29,760 --> 00:39:32,239
Speaker 1: on Cheryl Samberg. You know, obviously it's kind of a

679
00:39:32,239 --> 00:39:37,400
Speaker 1: big historical moment her leaving Meta, you know, after fourteen

680
00:39:37,440 --> 00:39:40,200
Speaker 1: years and writing lean In, and you know, I know

681
00:39:40,280 --> 00:39:42,840
Speaker 1: for many women and many women in business, she's a

682
00:39:42,920 --> 00:39:46,000
Speaker 1: role model. She's also a very controversial figure and some

683
00:39:46,040 --> 00:39:50,640
Speaker 1: people don't necessarily buy into the lean in mentality. Well,

684
00:39:50,719 --> 00:39:53,320
Speaker 1: what's what's your take? I mean, what a Cheryl Samberg

685
00:39:53,480 --> 00:39:57,719
Speaker 1: sort of symbolize to you? Yeah, it's interesting. Um, I've

686
00:39:57,760 --> 00:40:00,200
Speaker 1: been thinking a lot about female leadership of late as

687
00:40:00,239 --> 00:40:02,839
Speaker 1: you know, Oprah joined this round and I often talk

688
00:40:02,880 --> 00:40:07,040
Speaker 1: about her as my my favorite model of empathetic leadership.

689
00:40:07,280 --> 00:40:09,560
Speaker 1: To talk then about Cheryl and many others, like, we

690
00:40:09,600 --> 00:40:13,319
Speaker 1: need lots of models of female leadership there. Men for

691
00:40:13,480 --> 00:40:16,200
Speaker 1: hundreds of thousands of years have had a whole catalog

692
00:40:16,320 --> 00:40:19,000
Speaker 1: of different models to choose from and find what feels

693
00:40:19,040 --> 00:40:22,400
Speaker 1: authentic to each individual as a leader. You can't be

694
00:40:22,520 --> 00:40:24,920
Speaker 1: what you can't see, and so I think having strong

695
00:40:25,080 --> 00:40:28,680
Speaker 1: female leaders with a whole variety of leadership styles is

696
00:40:28,719 --> 00:40:31,320
Speaker 1: super critical, especially for those of us in an industry

697
00:40:31,520 --> 00:40:34,400
Speaker 1: where fewer than two percent of us in the venture

698
00:40:34,400 --> 00:40:37,040
Speaker 1: space of our female Absolutely, So, how do you spend

699
00:40:37,120 --> 00:40:38,960
Speaker 1: plan to spend this money or do you plan to

700
00:40:39,400 --> 00:40:41,440
Speaker 1: maybe spend it a little more slowly than you might

701
00:40:41,440 --> 00:40:44,920
Speaker 1: have in a different environment. Quickly? Yes, So if you know,

702
00:40:45,000 --> 00:40:47,640
Speaker 1: if my mom's watching, we committed this is a rain

703
00:40:47,800 --> 00:40:49,960
Speaker 1: this is a rainy day fund. We're not spending it.

704
00:40:50,000 --> 00:40:53,080
Speaker 1: We're not changing our budget this year, um, but we're

705
00:40:53,160 --> 00:40:55,839
Speaker 1: you know, we're solving a societal problem at Guild that's

706
00:40:55,840 --> 00:40:58,560
Speaker 1: gonna last for many decades to come. And so we're

707
00:40:58,560 --> 00:41:01,160
Speaker 1: thinking about how do we fund our busines this into perpetuity,

708
00:41:01,520 --> 00:41:03,120
Speaker 1: not how do we fund it for this year, but

709
00:41:03,800 --> 00:41:07,000
Speaker 1: what we are maintaining in an in a time of uncertainty,

710
00:41:07,000 --> 00:41:10,160
Speaker 1: as many other companies are changing their plans, were maintaining

711
00:41:10,160 --> 00:41:13,759
Speaker 1: our commitments um first to ensure that we're capturing all

712
00:41:13,760 --> 00:41:17,839
Speaker 1: the amazing employer momentum we're seeing. Far more companies are

713
00:41:17,880 --> 00:41:20,840
Speaker 1: now ready to take this jump and fund their employees

714
00:41:20,880 --> 00:41:23,279
Speaker 1: going back to school, and then we're really advancing and

715
00:41:23,360 --> 00:41:26,920
Speaker 1: career development, making sure that all of our members can advance. Rachel,

716
00:41:27,040 --> 00:41:28,919
Speaker 1: thanks for joining us, and shout out to your mom.

717
00:41:29,000 --> 00:41:32,120
Speaker 1: She's jumping up and down right now. Rachel Carlson, CEO

718
00:41:32,120 --> 00:41:34,320
Speaker 1: of Guild, thank you. That doesn't for the sedition of

719
00:41:34,320 --> 00:41:38,000
Speaker 1: Bloomberg Technology. We'll be back tomorrow. I'm Emily Trying in

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00:41:38,280 --> 00:41:39,800
Speaker 1: New York. This is Bloomberg