WEBVTT - Faster Apple Products and Google's $5 Billion Buy 0:00:02.240 --> 0:00:05.560 From the heart of where innovation, money and power. CALLI 0:00:06.400 --> 0:00:10.920 in Silicon Valley and Beyon this is Bloomberg Technology with 0:00:10.960 --> 0:00:26.040 Emily Jay. I'm Caroline Hyde in New York in for 0:00:26.079 --> 0:00:28.160 Emily Chang, and this is Bloomberg Technology coming up in 0:00:28.200 --> 0:00:30.960 the next hour. One week later, Twitter is no longer 0:00:31.000 --> 0:00:33.519 getting a new board member on el Mask might have 0:00:33.640 --> 0:00:37.000 changed the biggest shareholder of the company's mind blast rising 0:00:37.040 --> 0:00:39.720 inflation with the war in Ukraine still raging on, We'll 0:00:39.720 --> 0:00:41.960 see how it's felt across the pond and how crypto 0:00:42.080 --> 0:00:45.040 could potentially help. And we'll go to the floor of 0:00:45.080 --> 0:00:46.880 the NAZDAC for a conversation with the head of the 0:00:46.960 --> 0:00:49.120 US Listings and Revenue to get a look at the 0:00:49.120 --> 0:00:51.880 current I p O market how all this volatility is 0:00:51.920 --> 0:00:55.560 affecting filings while amid the war in Ukraine rages on. 0:00:55.680 --> 0:00:58.120 Consumers on both sides of the Atlantic currently turning their 0:00:58.120 --> 0:01:00.840 belts due to the rising cost this on them, particularly 0:01:00.880 --> 0:01:03.560 at the gas pump for example. A key question that 0:01:03.600 --> 0:01:06.200 many have been talking about is whereas the store of 0:01:06.280 --> 0:01:08.720 value is it gold is a digital goal for example. 0:01:09.080 --> 0:01:10.880 Let's talk about all of that with our next guest, 0:01:11.000 --> 0:01:14.600 John Glenn UK Economic Secretary to the Treasury of course, MP, 0:01:14.959 --> 0:01:16.880 and it's one of sort of wonderful to have you here, minister. 0:01:17.000 --> 0:01:20.119 And I'm interested first and foremost about what are some 0:01:20.200 --> 0:01:22.280 people have said as the red carpet being rolled out 0:01:22.319 --> 0:01:24.960 in the United Kingdom at the moment too, cryptocurrencies to 0:01:25.080 --> 0:01:28.560 innovation of that sort. Why, well, I think we've got 0:01:28.560 --> 0:01:31.679 to accept that this is going to be a great opportunity. 0:01:32.280 --> 0:01:35.640 We've got to regulate to innovate those. So we've gripped 0:01:35.640 --> 0:01:38.399 it in the UK. I made a speech last Monday 0:01:38.520 --> 0:01:41.160 and I announced a number of interventions. We want to 0:01:41.200 --> 0:01:44.920 bring industry together with our regulator, with government so we 0:01:44.959 --> 0:01:48.200 can work out the best steps to take this interesting 0:01:48.200 --> 0:01:51.680 phenomena forward because it has many applications both for financial 0:01:51.720 --> 0:01:55.480 services and to the wider economy. And so I'm excited 0:01:55.520 --> 0:01:57.800 about that and I'm pleased that we're able to get 0:01:57.800 --> 0:02:00.960 that engagement with industry both here and in London in 0:02:01.080 --> 0:02:03.840 order to drive it forward. Let's talk about here in 0:02:03.920 --> 0:02:07.400 New York and the meetings you're having with SEC Federal Reserve. 0:02:08.160 --> 0:02:11.880 This has got to be a cross atlantic regulation because 0:02:11.919 --> 0:02:14.960 this is a global asset class well, every jurisdiction will 0:02:14.960 --> 0:02:17.080 have a slightly different take on it that I was 0:02:17.120 --> 0:02:20.080 here in the autumn and I'm back here now, as 0:02:20.120 --> 0:02:23.960 you say, in Washington this week as well, talking to regulators, 0:02:24.000 --> 0:02:26.560 talking to government for talking to industry as well, to 0:02:26.680 --> 0:02:30.440 ensure that we meet expectations, that we think creatively about 0:02:30.520 --> 0:02:32.400 what we need to do to get this into the 0:02:32.480 --> 0:02:36.080 right place, so that consumers have certainty that any risks 0:02:36.080 --> 0:02:38.799 are dealt with and faced up to, and we can 0:02:38.800 --> 0:02:41.160 actually come to terms of some of these challenges in 0:02:41.240 --> 0:02:43.560 terms of how do we tax or do we tax 0:02:43.600 --> 0:02:45.919 in what way? And how do we create a regulatory 0:02:45.960 --> 0:02:49.320 framework that is reliable and gives innovators some assurance about 0:02:49.320 --> 0:02:52.239 the future. What do you make of talent? And in particular, 0:02:52.280 --> 0:02:54.280 I think of what the Bank of England have been 0:02:54.280 --> 0:02:57.320 worrying about the scams that are involved within the crypto space, 0:02:57.320 --> 0:02:59.120 Andrew Bailey speaking out about that, the head of the 0:02:59.120 --> 0:03:01.440 Bank of England. Meanwhile, I think it was the Magavinglens fintech. 0:03:01.480 --> 0:03:05.160 How be leaving to a crypto job, are you seeing 0:03:05.160 --> 0:03:07.000 more jobs being grown there and you see how do 0:03:07.040 --> 0:03:09.760 you see the sort of tension between institutional finance moving 0:03:09.760 --> 0:03:12.239 into the world of the well in the UK we've 0:03:12.280 --> 0:03:14.960 been a global hub of fintech and we've seen that 0:03:15.040 --> 0:03:18.480 to be very resilient and I see in cryptocurrency and 0:03:18.600 --> 0:03:23.519 the exchanges that are developing in the UK a great opportunity. Yes, 0:03:23.600 --> 0:03:26.120 it's right that we've got to get the right regulatory 0:03:26.120 --> 0:03:28.840 framework in place, and Andrew Bailey has been very clear 0:03:28.880 --> 0:03:30.800 on that. We've got to come to terms with the 0:03:30.840 --> 0:03:34.800 promotions regime that protects consumers, but we've also got to 0:03:34.840 --> 0:03:39.120 embrace the opportunities of new technologies and new phenomena and 0:03:39.160 --> 0:03:43.000 how it will apply to markets. Let's talk about the phenomenon, 0:03:43.200 --> 0:03:46.160 the sensationalism in many ways some people would say of 0:03:46.400 --> 0:03:48.400 non fungible tokens and f t s. We've seen, of 0:03:48.400 --> 0:03:50.640 course some valuations take a nose dive, but still a 0:03:50.680 --> 0:03:52.960 lot of interest. And what I mean, we've got the 0:03:53.000 --> 0:03:55.360 Royal Mint looking to create an f T. Just tell 0:03:55.440 --> 0:03:57.680 us our audience a bit about that. Well, that was 0:03:57.760 --> 0:04:01.520 part of the announcement last week that the Chancellor wants 0:04:01.600 --> 0:04:03.800 us to create an n f T in partnership with 0:04:03.840 --> 0:04:06.640 the Royal Mint. And it's important that we pick up 0:04:06.640 --> 0:04:09.360 on the emblems of change that exist here and the 0:04:09.400 --> 0:04:12.360 opportunities that will exist in the future. So we've asked 0:04:12.400 --> 0:04:14.440 the Royal Mint to develop that n f T and 0:04:14.440 --> 0:04:17.320 we look forward to that happening by this summer. Of course, 0:04:17.800 --> 0:04:20.560 look at a time in the United Kingdom where my 0:04:20.640 --> 0:04:23.720 family on the phone talks day in day out about 0:04:23.760 --> 0:04:27.320 the inflation, the cost of gas, electricity, what's happening in 0:04:27.400 --> 0:04:30.680 terms of the ramifications in many ways, of course antagonized 0:04:30.680 --> 0:04:33.800 by the invasion of Russia into Ukraine. But talk to 0:04:33.839 --> 0:04:36.599 us about you know, how the UK feels right now. 0:04:36.680 --> 0:04:39.200 I'm looking at February north point one pc growth, the 0:04:39.200 --> 0:04:42.159 economy being stifled, and that's before you even factor in 0:04:42.200 --> 0:04:45.200 the implications of the Russia Ukraine invasion. Well, clearly, these 0:04:45.200 --> 0:04:47.600 are incredibly challenging times. I think we all hope that 0:04:47.640 --> 0:04:51.719 we've come out of COVID and we get to brighter times, 0:04:51.800 --> 0:04:54.240 but that hasn't happened. What's happened in the Ukraine has 0:04:54.279 --> 0:04:58.640 had a very difficult has a very difficult impact on 0:04:58.800 --> 0:05:01.479 the economy, and we are we are seeing that we 0:05:01.560 --> 0:05:04.919 also had global pressures in terms of inflationary pressures, and 0:05:04.960 --> 0:05:06.640 that's playing out, its playing out here in the US, 0:05:06.680 --> 0:05:09.479 it's playing out in the UK and across the globe, 0:05:09.800 --> 0:05:13.880 and these are challenging times for for British consumers. Challenging 0:05:13.920 --> 0:05:16.760 times for British consumers where they're being asked to burden 0:05:17.040 --> 0:05:21.080 heavier taxes. I mean, in particular, perhaps the largest overall 0:05:21.080 --> 0:05:23.800 tax burn in the UK since the nineteen fifties, and 0:05:23.880 --> 0:05:25.800 a time where they look to their own Chancellor of 0:05:25.880 --> 0:05:29.400 the Exchequer and feel he Rashi Sunak is perhaps out 0:05:29.400 --> 0:05:31.839 of touch with some of the burdens they're having to share. 0:05:32.640 --> 0:05:35.880 You are, of course within the team of Reshisu Snax, 0:05:35.960 --> 0:05:38.359 and I'm wondering how how he is dealing with the 0:05:38.360 --> 0:05:40.800 pressure that is currently upon him upon his family when 0:05:40.839 --> 0:05:43.479 of course many are warring that his own family members 0:05:43.640 --> 0:05:45.760 haven't been paying their own tax that they should have 0:05:45.800 --> 0:05:48.640 been doing. And and we look in particular at his wife, 0:05:48.640 --> 0:05:51.520 who of course has is billionaire super rich in her 0:05:51.520 --> 0:05:54.000 own right, but many field didn't pay UK taxes on 0:05:54.040 --> 0:05:58.400 her overseas earnings. How is that being digested? Well? I 0:05:58.440 --> 0:06:02.000 think the chance is absolute professional in the way he's 0:06:02.080 --> 0:06:05.080 worked over these last two years. He was parachuted into 0:06:05.160 --> 0:06:08.800 this role as the start of a global pandemic, and 0:06:08.880 --> 0:06:13.760 he's worked tirelessly to provide interventions to support the British economy. 0:06:14.360 --> 0:06:17.839 I recognize these are challenging times for him and his family, 0:06:17.920 --> 0:06:20.520 but he will come through them. But his focus is 0:06:20.560 --> 0:06:23.080 on doing what it takes to get the British economy 0:06:23.360 --> 0:06:26.400 into the right place through these very, very difficult times, 0:06:26.680 --> 0:06:28.800 and he's made a number of interventions dealing with the 0:06:28.880 --> 0:06:31.880 thresholds of when you start to pay national insurance and 0:06:31.960 --> 0:06:35.880 tax support for the least well off in society. Of course, 0:06:35.880 --> 0:06:37.839 there will be many who will say there's more to 0:06:37.880 --> 0:06:40.840 be done, and he will look to the future fiscal 0:06:40.839 --> 0:06:44.320 events to address some of those concerns. How do you 0:06:44.440 --> 0:06:49.080 feel when as a member of you know, Conservative party, 0:06:49.160 --> 0:06:52.840 looking at really what ethically it's being judged at by 0:06:53.000 --> 0:06:55.080 at the moment when we think of that that the 0:06:55.160 --> 0:06:58.200 party gave the leader of your party went underwent. When 0:06:58.240 --> 0:07:00.200 we look at the Chancellor of Exchecker who seeming lea 0:07:00.320 --> 0:07:02.160 just doesn't seem to be in touch with the reality, 0:07:02.279 --> 0:07:05.320 many people feel that. And he's holding a green card 0:07:05.320 --> 0:07:07.120 at the same time as being chance to the Exchequer. 0:07:07.160 --> 0:07:10.360 What sort of really tethering he has in the longer 0:07:10.480 --> 0:07:12.680 term to the country. And then you of course, I 0:07:12.720 --> 0:07:15.200 mean nothing to do with you, I realized, but certain 0:07:15.280 --> 0:07:18.760 you know today just the unseating of an MP and 0:07:18.760 --> 0:07:22.160 and a crisis election because of you know, previous misdemeanors 0:07:22.400 --> 0:07:24.240 when it comes to sexual abuse. I mean, how does 0:07:24.280 --> 0:07:26.120 it make you feel when you're trying to stand up 0:07:26.160 --> 0:07:28.920 here in the US and defend your Conservative Party. Well, 0:07:28.960 --> 0:07:31.000 I've been in this post for nearly four and a 0:07:31.000 --> 0:07:33.480 half years. I'm the longest serving Economic secretary we've had 0:07:33.520 --> 0:07:35.920 in the UK. It's great privileged to do this job, 0:07:35.960 --> 0:07:39.000 and I like the Chancellor focus on the task in hand. 0:07:39.320 --> 0:07:43.040 I've done that through three chancellors, and I've always been 0:07:43.080 --> 0:07:46.400 impressed by the professionalism of the people I've worked under. 0:07:46.760 --> 0:07:49.400 And there's no difference with Rishi Sunach who's a first 0:07:49.520 --> 0:07:52.240 rate boss of first rate Chancellor, and I have absolute 0:07:52.320 --> 0:07:55.160 confidence in that he will come through these difficult moments 0:07:55.160 --> 0:07:57.920 and we will see what can be done in terms 0:07:57.920 --> 0:08:00.720 of future fiscal events of the budget. Well, come back, 0:08:00.800 --> 0:08:02.680 tell us the story I'm following in the UK, and 0:08:02.720 --> 0:08:05.800 indeed how you continue to embrace some change and certainly 0:08:05.800 --> 0:08:08.520 in the world of technology, the UK Economic Sectuary to 0:08:08.520 --> 0:08:19.920 the Treasury that is John Glenn Well. Week feels like 0:08:20.080 --> 0:08:22.960 a month, doesn't it? With Elon Musk and Twitter. Just 0:08:23.040 --> 0:08:25.240 take a quick look at where things stood just one 0:08:25.280 --> 0:08:28.280 week ago. Because last Monday, it was of course revealed 0:08:28.320 --> 0:08:31.280 the Musk held nine stake and Twitter, making him the 0:08:31.320 --> 0:08:33.840 company's biggest shareholder. While the next day Musk was invited 0:08:33.880 --> 0:08:37.160 to join Twitter's board of directors, which accepted. We then 0:08:37.280 --> 0:08:40.439 learned Musk was delayed in reporting his new steak and 0:08:40.480 --> 0:08:43.040 Twitter and concerns that the sec might start looking around. 0:08:43.120 --> 0:08:47.319 Twitter employees also started voicing concerns about having Musk's involvement 0:08:47.440 --> 0:08:49.880 and the influence he might have on the company. And 0:08:49.920 --> 0:08:52.960 then over the weekend, when you've been tweeting about Twitter 0:08:53.200 --> 0:08:56.240 quote dying, then tweeted the Jeff Beys also about turning 0:08:56.240 --> 0:08:59.000 Twitter's headquarters into a homeless shelter. And on Sunday night, 0:08:59.080 --> 0:09:02.640 we learned that Twitter the CEO Pagal that Musk won't 0:09:02.679 --> 0:09:05.000 be joining the board after all after some pretty bad 0:09:05.080 --> 0:09:07.439 jokes on Twitter as well, Buy a Musk. So we're 0:09:07.440 --> 0:09:09.959 going to dive into all of this, and the first 0:09:09.960 --> 0:09:12.480 angle we're going to look at is why Musk might 0:09:12.480 --> 0:09:14.720 have rejected the offer. In particular, to be on the 0:09:14.760 --> 0:09:17.640 board joining me now John C. Coffee, Junior Professor Law 0:09:17.679 --> 0:09:21.440 at Columbia University Law School. And what's an extraordinary story 0:09:21.480 --> 0:09:25.360 to be unfolding? And I'm interested at the moment, professor, 0:09:25.400 --> 0:09:28.439 about first and foremost what you think is behind all 0:09:28.480 --> 0:09:32.600 of this, what is initially perhaps a rejection about well, 0:09:32.720 --> 0:09:37.160 on one level, this looks like deja vu all over again, 0:09:37.600 --> 0:09:41.360 or Elin being Ela. He did this, said Tesla. When 0:09:41.400 --> 0:09:44.680 he didn't disclose or he falsely disclosed that he had 0:09:44.720 --> 0:09:48.120 an offer to take the company private, that Saudi Arabia 0:09:48.240 --> 0:09:51.120 was standing behind, you didn't have it. And when the 0:09:51.280 --> 0:09:55.040 sec sued, he agreed that he put in the general 0:09:55.080 --> 0:09:58.040 counsel of the company is an intermediary between him and 0:09:58.120 --> 0:10:01.520 any public statement about the company. Now, he's never been 0:10:01.520 --> 0:10:04.280 happy with that, he's never really obeyed that. But now 0:10:04.320 --> 0:10:06.839 we're over at Twitter and he's doing the same thing. 0:10:07.559 --> 0:10:11.120 He's under a legal duty to disclose when he crosses 0:10:11.200 --> 0:10:14.600 five percent. He eventually got up to near ten percent. 0:10:15.360 --> 0:10:18.640 Think about all the people who sold in that interval 0:10:18.880 --> 0:10:22.160 between five percent and ten percent, which could be a 0:10:22.240 --> 0:10:25.560 hundred million or more in terms of shares. Now, those 0:10:25.600 --> 0:10:28.679 people would have sold at a much higher price if 0:10:28.720 --> 0:10:31.040 he had disclosed that he was buying and that he 0:10:31.080 --> 0:10:33.440 was going on the board, whether it was just becoming 0:10:33.760 --> 0:10:36.960 the largest shore of the company. Because he is basically 0:10:37.200 --> 0:10:39.400 the world's richest band it can buy what he was. 0:10:40.080 --> 0:10:43.960 When he didn't disclose, they sold at a lower price 0:10:44.160 --> 0:10:46.880 than they would have gotten with fair disclosure. And some 0:10:46.960 --> 0:10:50.680 of those people may sue in a class action claiming 0:10:50.720 --> 0:10:54.680 that they were cheated by effectively insider trading when he 0:10:54.760 --> 0:10:59.240 brought the stock with disclosing information that he was required 0:10:59.280 --> 0:11:02.199 by lawder's clothes. You can debate both sides of that, 0:11:02.720 --> 0:11:05.240 but it is likely to get either a private lawson 0:11:05.720 --> 0:11:10.880 or the SEC suing on behalf of those shareholders has 0:11:10.920 --> 0:11:14.719 been concerned they were concerned about some trading activities at 0:11:14.760 --> 0:11:19.000 Tesla when he was traded heavily, when he was an 0:11:19.000 --> 0:11:22.160 effect paging the shareholders, pulling them to see if they 0:11:22.160 --> 0:11:25.560 wanted him to change his ownership levels. There could be 0:11:25.679 --> 0:11:28.559 the SEC and the SEC is mind a recurring pattern 0:11:28.679 --> 0:11:31.360 of close to the line or over the line inside 0:11:31.400 --> 0:11:35.960 of trading violations, and that could bring a very serious lawsuit. Professor, 0:11:36.480 --> 0:11:40.480 talk to us about produciary duty here because many felt 0:11:40.480 --> 0:11:43.280 perhaps it was in any way many ways defensive of 0:11:43.320 --> 0:11:45.040 Twitter to a broad him onto the board. At least 0:11:45.040 --> 0:11:47.720 it stops him perhaps building up the stake further than 0:11:47.840 --> 0:11:52.360 any further than for example, however, what limitations would have 0:11:52.400 --> 0:11:55.560 it put on a mask to his own communications, his 0:11:55.600 --> 0:11:58.480 own tweeting, if he indeed had joined the board. Of course, 0:11:58.520 --> 0:12:00.400 I think the reason he did not go on the 0:12:00.440 --> 0:12:04.440 board which partly that the CEO really couldn't tolerate some 0:12:04.520 --> 0:12:07.800 of the statements he was making. He for example, tweeted 0:12:07.880 --> 0:12:11.080 the world that he would like to have Twitter stopped 0:12:11.080 --> 0:12:15.400 selling advertising. Now that must have stunned the CEO because 0:12:15.720 --> 0:12:20.200 Twitter makes about nine of its revenues from advertising. If 0:12:20.200 --> 0:12:23.160 you're the CEO, you just can't have anyone, including this 0:12:23.320 --> 0:12:27.000 richer man as a director, making statements for that having 0:12:27.040 --> 0:12:30.880 them cleared by management counsel or anywhere. So that was 0:12:30.920 --> 0:12:33.560 one about a half business, and I don't think the 0:12:33.600 --> 0:12:36.520 CEO could focus on long term planning where he's going 0:12:36.520 --> 0:12:39.599 to get a daily barrage of comments in all directions 0:12:39.640 --> 0:12:42.440 from Elon Musk. So just to walk us through again 0:12:42.480 --> 0:12:47.720 the legal ramification saying you're expecting a sec an indeed 0:12:47.720 --> 0:12:53.640 path private lawsuits currently. I mean it's something thatferent different 0:12:53.640 --> 0:12:56.280 things that have There could be a class action by 0:12:56.320 --> 0:12:59.760 investors who sold during the period when he had not 0:13:00.040 --> 0:13:02.839 closed what he was supposed to disclose is greater than 0:13:02.880 --> 0:13:05.880 five percent ownership, which went up to ten percent. The 0:13:06.040 --> 0:13:10.360 SEC could say, also, uh, these statements really a due 0:13:10.400 --> 0:13:14.640 amount to a material omission. You didn't disclose that you 0:13:14.720 --> 0:13:18.040 own over five percent. You breached your legal duty, and 0:13:18.080 --> 0:13:21.280 we say that also could amount to insider trading. Or 0:13:21.320 --> 0:13:24.040 they could just say you made false and reckless statements. 0:13:24.600 --> 0:13:27.280 I think fines, professor, would that be what comes in it? 0:13:28.760 --> 0:13:33.040 I'm sorry? And would the ramifications be fines or something worse? Oh, 0:13:33.120 --> 0:13:36.040 if you are well. First of all, inside of trading 0:13:36.120 --> 0:13:39.480 can be a criminal offense. The SEC can't charge your crime, 0:13:39.520 --> 0:13:43.000 but the Department of Joctors conceivably could beyond that. The 0:13:43.160 --> 0:13:46.719 SEC can sue for damages equal to as much as 0:13:46.800 --> 0:13:50.000 three times the game made or the laws subverdict. Here 0:13:50.040 --> 0:13:53.880 would be a game when he bought this stock, he 0:13:53.920 --> 0:13:56.480 didn't disclose at the asset when he crossed five percent 0:13:56.760 --> 0:13:59.680 what he was doing, and the SEC could see three 0:13:59.679 --> 0:14:02.520 times the game on the staff between the five percent 0:14:02.640 --> 0:14:05.640 level and the ten percent level. He's the richest man 0:14:05.640 --> 0:14:08.960 in the world. That won't bankrupt him, but painful amount 0:14:08.960 --> 0:14:13.920 to pay. John Coffee, Jr. Columbia Law School Professor, fascinating conversation. 0:14:14.080 --> 0:14:15.920 Thank you very much. I want to stick with Musk 0:14:16.000 --> 0:14:18.520 and with the internal issues he was of course facing 0:14:18.559 --> 0:14:21.680 from Twitter and welcome in when Securities managing director Dan 0:14:21.800 --> 0:14:25.120 ives for what is another extraordinary story involving you know 0:14:25.280 --> 0:14:28.600 Musk and from your perspective, what happens now if he's 0:14:28.640 --> 0:14:32.200 not on the board? Ok? I think you know him 0:14:32.240 --> 0:14:35.160 being on the board that was almost a Cinderella's story 0:14:35.880 --> 0:14:38.120 to the point that he'd be on the board, they'd 0:14:38.120 --> 0:14:42.560 women his ownership to fift and your strategically could help 0:14:42.600 --> 0:14:45.560 the company. Now it's a total different situation. I view 0:14:45.600 --> 0:14:49.240 it as more hostile. I think the opposit ste going forward. 0:14:49.680 --> 0:14:51.640 And now the question is does he team up with 0:14:51.680 --> 0:14:54.880 private equity and how active does he get? I mean 0:14:54.960 --> 0:14:57.520 for Twitter. I think this goes from a Cinderella's story 0:14:58.000 --> 0:15:00.600 to the potentially game of Thrones with uh, you know, 0:15:00.720 --> 0:15:04.520 Musk and Twitter and the board clearly gonna lock heads. 0:15:05.760 --> 0:15:09.440 Great analogies that what if they're gonna lock heads? Do 0:15:09.440 --> 0:15:12.240 you anticipate Well, first and foremost is your number one 0:15:12.240 --> 0:15:14.080 perspective that we do see some sort of buyout just 0:15:14.160 --> 0:15:18.080 Twitter eventually get bored or go private. What do you expect, Look, 0:15:18.080 --> 0:15:21.000 I mean, before Musk is involved, I mean, Twitter as 0:15:21.040 --> 0:15:24.440 a stock's been a significant on the performer. Advertising has 0:15:24.480 --> 0:15:27.560 been extremely disappointing, which is why he's sort of the 0:15:27.680 --> 0:15:30.400 night and shining armor at least for investors in Twitter. 0:15:30.840 --> 0:15:32.560 You know, I think now the next step is going 0:15:32.640 --> 0:15:34.640 to be he's going to be allowed for us. I 0:15:34.680 --> 0:15:38.360 do not expect that he's gonna go home, reduce his steak, 0:15:38.480 --> 0:15:40.800 and now there's gonna be a bright spot on Twitter 0:15:40.840 --> 0:15:44.120 and from the strategy advertising that obviously have a key 0:15:44.200 --> 0:15:47.440 quarter coming up. And for Twitter, for you know, for 0:15:47.480 --> 0:15:51.200 the board, it's their worst nightmare because Musk in the 0:15:51.280 --> 0:15:56.120 boardroom is contained Musk outside the boardroom. Now this becomes 0:15:56.560 --> 0:15:59.280 a soap opera, get out the copform. I mean, he's 0:15:59.280 --> 0:16:01.440 an activist in STI with eight million who follow him 0:16:01.440 --> 0:16:03.560 on Twitter. And I'm interested as to what therefore you 0:16:03.560 --> 0:16:06.680 think can be damaged imitations here? What what will be 0:16:06.720 --> 0:16:10.720 the product innovations that potentially start happening. Look, I think 0:16:10.760 --> 0:16:13.880 eventually this is gonna sort of end with some sort 0:16:13.920 --> 0:16:17.640 of strategic initiatives and know whether that ends with an 0:16:17.720 --> 0:16:22.200 ultimate sell, if that ends with maybe sunsetting some products 0:16:22.240 --> 0:16:26.360 focus on some of the subscriber and advertising side, because 0:16:26.400 --> 0:16:29.000 that's that's the issue right now. I mean, they're losing Instagram, 0:16:29.080 --> 0:16:32.280 TikTok and others in social media. Must that's not necessary 0:16:32.320 --> 0:16:35.600 as expertise, but I mean, this is really gonna over 0:16:35.640 --> 0:16:38.520 the coming months, and you know, I think year you're 0:16:38.560 --> 0:16:42.160 really gonna be I think very tough situation for Twitter 0:16:42.200 --> 0:16:46.400 and Spoard if they somehow, you know, miss execute again 0:16:46.440 --> 0:16:49.760 over the coming quarters. Before you go, we've got time 0:16:49.800 --> 0:16:52.400 to just also think about the world of cybersecurity from him, 0:16:52.400 --> 0:16:54.200 because I caught my attention was your note that you 0:16:54.280 --> 0:16:57.440 put out about sale Point. Of course, the deal being 0:16:57.480 --> 0:16:59.560 done there in the purchase. What do you make of 0:16:59.560 --> 0:17:01.480 the focus and where to be putting your money at 0:17:01.480 --> 0:17:04.840 the moment in terms of cybersecurity. I think it's a 0:17:04.920 --> 0:17:08.040 golden age from cybersecurity. It's a defensive area of tech. 0:17:08.359 --> 0:17:11.280 Look at sale Point getting bought and you know, Manny 0:17:11.320 --> 0:17:14.000 and got bought by Google, and I looked at names 0:17:14.080 --> 0:17:19.080 like Tennable, pal out those cyber arc Checkpoint among others, 0:17:19.400 --> 0:17:22.760 and I think in it really just shows the value 0:17:22.760 --> 0:17:26.000 of cybersecurity. Public investors will sell of the stocks the 0:17:26.119 --> 0:17:29.800 strategic and financials will buy them. Dan, I'm it is 0:17:29.840 --> 0:17:31.439 always so great to catch up with you with all 0:17:31.480 --> 0:17:34.520 the analogies of whe Bush. We thank you so much. Well, 0:17:34.560 --> 0:17:59.640 I'm more X. This is bringing back I'm Caroline Hyde 0:17:59.640 --> 0:18:01.359 and new or this is Blombog technology. Here are a 0:18:01.400 --> 0:18:03.000 few of the other stories that we've been following in 0:18:03.040 --> 0:18:06.480 Canadian e commerce software firm that's Shopify, plans at ten 0:18:06.640 --> 0:18:09.919 for one stock split. Now will we're giving CEO Toby 0:18:09.960 --> 0:18:13.040 Looker a special founder share that will preserve his voting 0:18:13.040 --> 0:18:15.040 power as long as he's at the company now shares 0:18:15.040 --> 0:18:17.760 a Shopify And they've been under pressure and what by 0:18:17.800 --> 0:18:20.159 half this year, but ending the day as you can 0:18:20.160 --> 0:18:22.840 see a little bit higher. Sony and the owner of 0:18:23.080 --> 0:18:25.840 Lego Group. Now those two companies have invested two billion 0:18:25.840 --> 0:18:28.760 dollars and Epic Games, the maker a Fortnite. The investment 0:18:28.800 --> 0:18:31.159 values Epic at thirty one and a half billion. The 0:18:31.240 --> 0:18:34.120 video GameMaker is one of the five most valuable startups 0:18:34.119 --> 0:18:36.159 in the US. It's currently waging, of course, though a 0:18:36.200 --> 0:18:39.040 costly legal battle with Apple and Alphabet of a fees 0:18:39.160 --> 0:18:42.440 charged by app stores. China meanwhile has approved the first 0:18:42.440 --> 0:18:45.480 batch of new video game licenses. Since July, Bluebugs learned 0:18:45.520 --> 0:18:49.320 that regulators have distributed a list of approved titles to developers. 0:18:49.640 --> 0:18:53.720 Last August, China's far reaching tech crackdown spread to online gaming. 0:18:53.960 --> 0:18:57.680 The government introduced measures capping playtime for minors and new 0:18:57.720 --> 0:19:09.640 requirements aimed at curving addiction. This is Bloomberg Technology. I'm 0:19:09.640 --> 0:19:12.159 Caroline Hyde in Family Chang with several big names, of 0:19:12.160 --> 0:19:15.160 course expected to go public this year. Some are kind 0:19:15.160 --> 0:19:18.240 of decelerating their efforts with a volatile market upon our hands. 0:19:18.320 --> 0:19:20.360 Joining us now to discuss all of this in the pipeline. 0:19:20.400 --> 0:19:23.520 How solid it is, Karen Snow, Senior vice president ahead 0:19:23.560 --> 0:19:27.040 of us listings and revenue for the NAZZAC. Some fantastic 0:19:27.040 --> 0:19:29.240 to have some time with you, Karen and talk to 0:19:29.320 --> 0:19:32.160 us about the solidity of the pipeline. How are we 0:19:32.320 --> 0:19:35.520 seeing companies? Are they just hunkering down weathering until we 0:19:35.640 --> 0:19:39.240 do see an ease up in volatility? Is it something different? Yeah, 0:19:39.280 --> 0:19:44.520 I think companies are really preparing to go public. I 0:19:44.560 --> 0:19:47.280 think this year is going to be a situation where 0:19:47.280 --> 0:19:50.119 you see windows of opportunity uh, and they want to 0:19:50.160 --> 0:19:54.000 be able to hit the market when that window opens. 0:19:54.400 --> 0:19:57.159 We are starting to see signs of life. What I 0:19:57.160 --> 0:20:00.680 would say is that we're very focused on the VIX, 0:20:00.760 --> 0:20:04.960 which is the volatility index UH, and when that um 0:20:05.119 --> 0:20:09.080 is between a really below twenty five, which is really 0:20:09.080 --> 0:20:12.840 where we like to see it. Ent of companies go 0:20:13.080 --> 0:20:17.280 public when it's below that level, So we're very focused 0:20:17.280 --> 0:20:19.119 on that as a lead indicator, as well as a 0:20:19.160 --> 0:20:22.760 convertible market, which has started to open up. The VIX 0:20:22.840 --> 0:20:26.920 has stayed below twenty five for the past eighteen sessions, 0:20:26.960 --> 0:20:29.240 which I think is a good sign uh. And we're 0:20:29.240 --> 0:20:31.960 starting to get inbound calls from companies that are looking 0:20:32.000 --> 0:20:35.480 to go public at the end of April early May. 0:20:35.720 --> 0:20:40.760 What kind of companies come, uh, Well, there are a 0:20:40.840 --> 0:20:44.639 lot of interest from consumer companies. That's about thirty seven 0:20:44.640 --> 0:20:49.840 percent of the pipeline tent or tech companies. Nineteen percent 0:20:50.040 --> 0:20:53.879 are healthcare companies, about ten percent are financial companies, and 0:20:53.880 --> 0:20:58.479 the remainder are industrial and energy companies. So really good 0:20:58.600 --> 0:21:02.680 breath and depth from and representation from the entire economy. 0:21:03.000 --> 0:21:05.720 And when you're thinking about how it would be taken 0:21:05.760 --> 0:21:08.640 down by the market. It feels as though everyone's offer 0:21:08.640 --> 0:21:10.960 an inflation headge at the moment, and these companies sort 0:21:10.960 --> 0:21:13.359 of an analyzing how they can tell that story in 0:21:13.400 --> 0:21:16.919 some way. Yeah, I think it's important. Um. You know, 0:21:17.040 --> 0:21:22.040 valuations have adjusted for that inflation. Um. You know, companies 0:21:22.640 --> 0:21:26.679 have to address the current pipeline situation UM with you know, 0:21:26.720 --> 0:21:30.560 all the disruption um. So they definitely have to have 0:21:30.600 --> 0:21:32.800 their ducks in a row. Uh. And I think there's 0:21:32.800 --> 0:21:35.440 no rush to go to the public markets at the moment. 0:21:35.480 --> 0:21:38.560 There's plenty of ways to raise capital UM, so people 0:21:38.600 --> 0:21:40.960 really want to make sure that they're ready. What I 0:21:41.000 --> 0:21:43.920 would say is that we see a very healthy pipeline. 0:21:43.960 --> 0:21:46.359 The pipeline for companies is greater than it was this 0:21:46.520 --> 0:21:52.040 time last year, So we're very optimistic about that. Talk 0:21:52.119 --> 0:21:55.000 to us about whether or not there is a disconnect 0:21:55.119 --> 0:21:57.639 between the public markets and the private markets at the moment, 0:21:59.160 --> 0:22:02.359 I think we're starting to see that close. Uh. You know, 0:22:02.359 --> 0:22:05.320