WEBVTT - Netflix Shares Plunge and Uber Drops the Mask 0:00:02.279 --> 0:00:05.600 From the heart of where innovation, money and power Collie 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.040 Emily Jay. I'm Emily Changing in San Francisco, and this 0:00:27.080 --> 0:00:30.040 is Bloomberg Technology coming up in the next hour. Netflix 0:00:30.120 --> 0:00:33.879 hits a wall. The streaming giant loses subscribers for the 0:00:33.920 --> 0:00:37.800 first time in a decade, two hundred thousand of them, 0:00:37.840 --> 0:00:40.560 and says two million more will go. We've got the 0:00:40.600 --> 0:00:44.280 latest earnings from port covered from all angles plus after 0:00:44.320 --> 0:00:47.400 airlines now Ober and Lift are also dropping masks in 0:00:47.440 --> 0:00:50.680 the United States after a judge overturned a federal mandate 0:00:50.680 --> 0:00:53.840 for passengers to cover their faces. We'll talk about how 0:00:53.880 --> 0:00:58.400 that might impact ride hailings bottom line. And Bitcoin can't 0:00:58.400 --> 0:01:00.960 seem to break out of that two thousand dollar range, 0:01:01.000 --> 0:01:03.720 so can it really be a hedge against inflation. We'll 0:01:03.720 --> 0:01:06.880 speak with Michael Sailor of micro Strategy, the world's biggest 0:01:06.920 --> 0:01:10.160 corporate holder of bitcoin, about all this and much more. 0:01:10.800 --> 0:01:12.480 We'll get to that in a moment, but first, it 0:01:12.640 --> 0:01:14.560 is a blood bath for Netflix, with a drop and 0:01:14.600 --> 0:01:17.520 subscribers and a plunge in shares. Bloom Brooks and Ludlow 0:01:17.720 --> 0:01:20.560 has been pouring through the numbers here and this was 0:01:20.640 --> 0:01:23.839 kind of unexpected, yeah, I mean hugely unexpected. Two hundred 0:01:23.840 --> 0:01:26.360 thousand customers lost in that first quarter of the estimate 0:01:26.400 --> 0:01:28.640 by Netflix itself was to add more than two million, 0:01:28.720 --> 0:01:31.119 the Street looking for that as well. The worrying part 0:01:31.160 --> 0:01:34.119 is the outlook for the second quarter, another loss of customers, 0:01:34.160 --> 0:01:36.960 two million lost. The outlook was a gain of two 0:01:37.000 --> 0:01:39.680 point four million, that's the Wall Street can Sense estimate. 0:01:39.720 --> 0:01:41.920 And in three out of the four regions where Netflix 0:01:42.000 --> 0:01:45.600 operates they lost customers. The only exceptions that rule Asian specific. 0:01:45.600 --> 0:01:47.200 You see what the market thinks about it. We're down 0:01:48.080 --> 0:01:50.600 and after hours. This is actually the fifth quarter in 0:01:50.640 --> 0:01:52.800 a row though where there's been a negative reaction to 0:01:52.880 --> 0:01:57.160 Netflix earning. So you know, none of this we saw coming. 0:01:57.360 --> 0:01:59.559 But this is pretty profound impact, especially when you consider 0:01:59.560 --> 0:02:01.920 the market throughout the day on Tuesday, we saw an 0:02:02.160 --> 0:02:05.920 rally across equities, outperformance in the technology sector relative to 0:02:06.000 --> 0:02:09.000 the broader market. And that's the despite yields continues to 0:02:09.040 --> 0:02:11.440 be elevating. You look at US tenure yield up two 0:02:11.440 --> 0:02:14.680 point nine four percentage points. Also a risk on mode 0:02:14.680 --> 0:02:17.000 with bitcoin getting caught up in it. The other big story, 0:02:17.000 --> 0:02:19.680 of course, and that I've been tracking Twitter and elon 0:02:19.800 --> 0:02:23.120 Musk's bid to buy the company Twitter lower On Tuesday, 0:02:23.160 --> 0:02:26.120 really the big news was Apollo getting in on the act, 0:02:26.200 --> 0:02:28.880 saying it would partner with musks bid, or according to sources, 0:02:28.880 --> 0:02:32.080 they were partner with Musk bigs or another private equity 0:02:32.120 --> 0:02:35.920 firm in the form of a credit backing or preferential equity, 0:02:36.000 --> 0:02:37.519 something of that form. And then The New York Post 0:02:37.600 --> 0:02:41.240 reporting earlier Tuesday that Musk is struggling to get backers, 0:02:41.280 --> 0:02:43.760 but he could put ten to fifteen billion dollars of 0:02:43.800 --> 0:02:45.760 his own money in and even do some kind of 0:02:45.840 --> 0:02:48.920 leverage by out borrowing against the holdings of this Twitter steak. 0:02:49.520 --> 0:02:51.560 One story, though, We've got to focus on Netflix because 0:02:51.560 --> 0:02:53.560 it's not just Netflix that's moving in after hours, you 0:02:53.560 --> 0:02:56.560 look across the streaming space and some of Netflix's peers 0:02:56.919 --> 0:03:00.639 we're seeing serious declines. Disney down five per and Paramount 0:03:00.639 --> 0:03:03.680 now a little changing after ours, but Roku also suffering. 0:03:03.880 --> 0:03:07.720 Question is is this isolated and just Netflix or is 0:03:07.800 --> 0:03:10.000 the big growth we saw in streaming throughout the pandemic 0:03:10.280 --> 0:03:12.200 is that over all right? And we're going to see 0:03:12.200 --> 0:03:14.519 that in earnings reports to come over the next few weeks, 0:03:14.520 --> 0:03:16.560 i'd Ludlow, thank you. I want to stick with Netflix 0:03:16.560 --> 0:03:19.840 and bring in Andre Swanston, longtime entrepreneur and executive in 0:03:20.000 --> 0:03:23.080 the streaming business now and s VP at TransUnion. Andre, 0:03:23.200 --> 0:03:25.360 great to have you back with us. Look, first subscriber 0:03:25.400 --> 0:03:30.040 loss in a decade? What went wrong? Look? I I 0:03:30.160 --> 0:03:32.920 don't think it was unexpected uh to a lot of 0:03:33.639 --> 0:03:36.600 executives across the media entertainment industry that Netflix was gonna 0:03:36.640 --> 0:03:40.520 have challenges. I've been saying so for the last eighteen months. Um. 0:03:40.520 --> 0:03:43.560 To have such a large miss, I think is is 0:03:43.600 --> 0:03:46.320 a bit surprising. But there's a there's a few core 0:03:46.440 --> 0:03:49.560 challenges that that I think it's astonishing to me that 0:03:49.560 --> 0:03:52.760 that Netflix hasn't adjusted, and even in the report that 0:03:52.960 --> 0:03:55.080 don't seem like they're really looking to I think the 0:03:55.080 --> 0:03:57.000 first one is there's a lot of talk about the 0:03:57.080 --> 0:04:02.080 competition from Disney and HBO, Max and Amazon and others. Uh, 0:04:02.120 --> 0:04:04.800 and I do think that that has some impact, right, um. 0:04:04.840 --> 0:04:07.400 But but what people really aren't talking about is is 0:04:07.440 --> 0:04:10.120 that most of the growth over the last two years 0:04:10.160 --> 0:04:13.960 and streaming has really been free ad supported solutions UM 0:04:14.000 --> 0:04:16.839 the Pluto TVs. The two bees, the zoom os, and 0:04:16.880 --> 0:04:18.800 what the major media companies have done a really good 0:04:18.880 --> 0:04:21.640 job is that they went and acquired all of those companies. 0:04:21.960 --> 0:04:24.760 And so why they while they made acquisitions that versify 0:04:24.839 --> 0:04:28.680 their business model and streaming, Netflix is still yet to lead, uh, 0:04:28.720 --> 0:04:32.440 you know, launch any sort of cheaper ad supported or 0:04:32.520 --> 0:04:34.600 free ad supported tiers. So I think that was one 0:04:34.640 --> 0:04:37.160 of the main things. Um So inflation hurt them more. 0:04:37.240 --> 0:04:39.520 Competition hurt them more that I think it will hurt 0:04:39.520 --> 0:04:42.680 a lot of their competitors. Part of this overall number 0:04:42.680 --> 0:04:45.400 we're seeing is Russia, and of course we saw Netflix 0:04:45.440 --> 0:04:48.560 cutting off service there. I believe it's only about three 0:04:48.960 --> 0:04:52.880 thousand accounts total, but there's clearly a longer term problem 0:04:52.960 --> 0:04:57.200 here with two million paid subscribers potentially going in the 0:04:57.320 --> 0:05:01.200 coming quarter. I mean, why are we not just losses 0:05:01.240 --> 0:05:06.120 but such deep losses. Well, so, you know, partly because 0:05:06.240 --> 0:05:09.360 there's nothing that they've done or or mentioned that they're 0:05:09.400 --> 0:05:11.360 doing to solve these challenges. So the two things they 0:05:11.400 --> 0:05:14.640 talked to is about the the they're increasing the money 0:05:14.680 --> 0:05:17.400 that the investment that they're making into content. You can't 0:05:17.440 --> 0:05:20.560 really spend your way out of this because there's there's 0:05:20.960 --> 0:05:23.479 other huge companies that are going and spending billions and 0:05:23.480 --> 0:05:25.880 billions of dollars as well, So that's not really the challenge. 0:05:26.200 --> 0:05:28.919 The other thing that Netflix was really good at historically 0:05:29.000 --> 0:05:31.480 is they probably had a six or seven year head 0:05:31.560 --> 0:05:33.840 start on when it came to data in terms of 0:05:34.320 --> 0:05:38.120 streaming media consumption for television and movie shows. And so 0:05:38.160 --> 0:05:40.320 what that allowed them to do is in this in essence, 0:05:40.320 --> 0:05:44.040 play moneyball with content licensing. Now they can't do that 0:05:44.080 --> 0:05:47.520 because the owners of those content can monetize it themselves. Um. 0:05:47.560 --> 0:05:49.840 And they mentioned, you know, launching the two thumbs up 0:05:50.360 --> 0:05:53.320 button to give them more insight. Um. There's nothing that 0:05:53.360 --> 0:05:56.360 Netflix can do to claim more data and insight off 0:05:56.400 --> 0:05:59.040 of their platform that can help them compete with the 0:05:59.040 --> 0:06:01.839 the the diversity of the data that a company like 0:06:01.880 --> 0:06:04.640 Amazon has they know what you buy, or Google knows 0:06:04.680 --> 0:06:08.000 what you search, um uh. And and you know, Apple 0:06:08.080 --> 0:06:10.160 knows what music you listen to as well, And so 0:06:10.200 --> 0:06:12.520 I think that's gonna be a real real challenge for them. 0:06:12.760 --> 0:06:15.160 And and also the investments that they've made into gaming. 0:06:15.400 --> 0:06:17.480 You know, they've spent tens of millions of dollars here 0:06:17.480 --> 0:06:20.040 and hundreds of millions of dollars. The people that they're 0:06:20.040 --> 0:06:22.840 trying to catch are spending billions of dollars on gaming 0:06:22.880 --> 0:06:25.120 and going into the metaverse, and so, you know, I 0:06:25.640 --> 0:06:28.160 think just doubling down and tripling down on what they 0:06:28.200 --> 0:06:31.040 have been doing over really well over the last decade 0:06:31.279 --> 0:06:33.640 and thinking that it's going to carry them through the twenties, 0:06:33.880 --> 0:06:36.719 um is gonna be. It's gonna be difficult. Our look 0:06:36.720 --> 0:06:39.240 at show who covers the entertainment business and Netflix for 0:06:39.360 --> 0:06:42.560 us said there's a hard solution to Netflix's problem. He's 0:06:42.600 --> 0:06:45.720 not talking about ads. He simply says, make better shows. 0:06:45.800 --> 0:06:49.120 What about that? No, I I think that that's that's 0:06:49.120 --> 0:06:52.200 actually the mentality that they pretty much already doubled down on. 0:06:52.560 --> 0:06:55.480 If we can poach the biggest producers in the industry, 0:06:55.480 --> 0:06:58.160 if we can have the greatest TV shows and and 0:06:58.160 --> 0:07:01.800 and great movies, we can fend off companies like like 0:07:01.880 --> 0:07:03.880 Disney that have a hundred years of content that they 0:07:03.880 --> 0:07:06.960 can just keep updating. Um. I think that strategy has 0:07:06.960 --> 0:07:09.120 are already proven that it doesn't work, or else they 0:07:09.120 --> 0:07:11.280 wouldn't have had the mist that they did this past 0:07:11.360 --> 0:07:14.280 quarter so quickly. Then how contagious do they think this 0:07:14.360 --> 0:07:16.000 is going to be how much are we gonna see 0:07:16.040 --> 0:07:19.480 This also reflected in Disney results given you know, yes, 0:07:19.520 --> 0:07:24.800 a different library, but still they're also relying on new content. Yeah, 0:07:24.880 --> 0:07:28.360 so I don't think the results will be the same 0:07:28.880 --> 0:07:32.160 in terms of other companies for a couple of reasons. Um. One, 0:07:32.680 --> 0:07:36.400 the other streaming solutions are still new. They're still launching 0:07:36.400 --> 0:07:38.600 a new market for the first time, so there's still 0:07:38.800 --> 0:07:41.680 uh potential subscribers that never had the ability to access 0:07:41.720 --> 0:07:45.960 their content, whereas Netflix has had pretty widespread distributions for 0:07:46.040 --> 0:07:48.840 quite some time. So that's one thing. Um. The second 0:07:48.880 --> 0:07:51.840 thing is everybody else has it diversified, just about has 0:07:51.840 --> 0:07:56.000 a diversified subscriber model where they're cheaper tears like Hulu 0:07:56.120 --> 0:07:58.040 or other things where subscribers can get in and pay 0:07:58.120 --> 0:08:01.000 less to see ads or in fact just completely free 0:08:01.000 --> 0:08:04.200 tears and the in the ad supported streaming ecosystem, we're 0:08:04.240 --> 0:08:07.160 seeing massive growth year over year, um, even despite the 0:08:07.960 --> 0:08:11.280 weighing of lockdowns in the pandemic. So it doesn't hold 0:08:11.320 --> 0:08:14.280 true that people just aren't streaming anymore, because the data 0:08:14.320 --> 0:08:16.840 shows is that that's absolutely not the case. All Right, Well, 0:08:16.840 --> 0:08:18.720 we're going to continue to cover the story throughout the hour. 0:08:18.800 --> 0:08:23.520 Andre Swanston of TransUnion, always appreciate your insights on Netflix 0:08:23.520 --> 0:08:35.000 and the streaming business beyond. No more masks on rides. 0:08:35.160 --> 0:08:37.600 Uber and Lyft now joining a growing number of major 0:08:37.640 --> 0:08:41.040 transport providers and shifting their mask policies. This after a 0:08:41.120 --> 0:08:44.680 US judge overturned a federal mandate for passengers to cover 0:08:44.880 --> 0:08:48.240 their faces on Monday. Let's bring in Blue Works Jackie Davalos, 0:08:48.240 --> 0:08:50.760 who covers both Uber and left for US. So, Jackie, 0:08:50.760 --> 0:08:52.160 I guess the big question is is this going to 0:08:52.280 --> 0:08:56.560 mean drivers and riders are more or less inclined to travel? 0:08:57.080 --> 0:08:59.760 You know, if you are one of those that have 0:09:00.160 --> 0:09:02.880 following mask mandates for as long as they've been around 0:09:02.880 --> 0:09:06.679 the past two years, this may seem like an inconsequential 0:09:07.000 --> 0:09:09.800 update and policy. But if you're also like me who 0:09:09.800 --> 0:09:13.480 forgets their mask in a different coat pocket or purse, uh, 0:09:13.600 --> 0:09:16.040 it might come as a relief and even you know, 0:09:16.080 --> 0:09:19.640 making more likely to take another ride. For many riders, 0:09:20.000 --> 0:09:21.880 you know, this has just been something that we've learned 0:09:21.920 --> 0:09:24.680 to live with. However, for others, you know, it might 0:09:24.760 --> 0:09:28.280 bring them off the sidelines after um, you know, perhaps 0:09:28.320 --> 0:09:31.840 feeling strongly about not wearing masks, on the driver's side. 0:09:31.920 --> 0:09:34.000 I think that's where we're going to see more of 0:09:34.040 --> 0:09:37.360 a diverging reaction. It may not be such a slam 0:09:37.480 --> 0:09:41.920 dunk policy for for driver's supply, because many were already 0:09:41.920 --> 0:09:44.400 skittish to come back to the platform. As we've spoken 0:09:44.400 --> 0:09:47.520 about emily in the past, the driver's shortage, A major 0:09:47.600 --> 0:09:50.800 reason that has really persisted is because of the heightened 0:09:51.080 --> 0:09:54.480 concern around the risk of infection by having someone in 0:09:54.480 --> 0:09:58.280 your car. Uber and Left also now saying riders can 0:09:58.360 --> 0:10:00.880 ride in the front seat if they want want though 0:10:00.920 --> 0:10:03.640 of course saying that folks need to be respectful if 0:10:03.679 --> 0:10:05.720 they still want to wear masks. How much do you 0:10:05.720 --> 0:10:08.760 think this is actually going to impact Uber and Lifts 0:10:08.880 --> 0:10:12.760 bottom lines? You know, when we think about where the 0:10:12.760 --> 0:10:16.400 companies are today, Uber obviously has more of a buffer 0:10:16.440 --> 0:10:19.000 with their Uber Eats business, but they've been trying to 0:10:19.120 --> 0:10:22.120 really bolster that mobility segment. Again, this is only going 0:10:22.200 --> 0:10:25.720 to help that that rideshare business was already profitable and 0:10:25.760 --> 0:10:27.960 it could only help their bottom lighting you further if 0:10:28.000 --> 0:10:30.439 they can boost those levels back to where they were 0:10:30.640 --> 0:10:33.920 pre pandemic. Now for Lift, this uh, the stakes are 0:10:33.960 --> 0:10:37.840 much higher for them given bright hailing is their primary business. UM. 0:10:37.840 --> 0:10:40.959 When we think about where, um, some of their business 0:10:40.960 --> 0:10:45.360 comes from, as it relates to airport travel, major airlines 0:10:45.400 --> 0:10:48.880 loosening their mask mandates and potentially seeing an uptick in 0:10:48.920 --> 0:10:52.760 flights is only going to help rideshare companies even more. 0:10:52.960 --> 0:10:56.840 But definitely, you know, ridership has not totally recovered and 0:10:57.000 --> 0:11:00.319 this could potentially put them a little bit star to 0:11:00.360 --> 0:11:03.199 the finish line. And what about Uberpool On their website, 0:11:03.280 --> 0:11:05.360 Uber is hinting that it's back, but it doesn't show 0:11:05.440 --> 0:11:08.280 up on the app in the US or Europe. We 0:11:08.320 --> 0:11:12.800 actually check this. It's a mystery. They've been testing pool 0:11:12.920 --> 0:11:16.120 strategies here and there. But I spoke with them this 0:11:16.160 --> 0:11:19.360 morning and the company said, this is not They have 0:11:19.480 --> 0:11:23.360 nothing to share. This is not something that's being tested broadly. UM. 0:11:23.440 --> 0:11:26.479 But I think we will hear from Lift in particular 0:11:26.880 --> 0:11:29.880 UM in the coming months, especially now that you see 0:11:29.920 --> 0:11:32.960 cities starting to revise maybe even loosen some of their 0:11:33.000 --> 0:11:36.720 own mask updates, which goes to show that perhaps pandemic 0:11:36.720 --> 0:11:41.920 conditions are improving more broadly and rideshare companies are poised 0:11:41.960 --> 0:11:45.480 to benefit from that. Okay, Bloomberg, Jacki Dagulas We'll see 0:11:45.480 --> 0:11:48.240 how this evolves. As always, thank you. Coming up, we're 0:11:48.240 --> 0:11:50.320 gonna hear from ft X ee O Sam Bankman Freed 0:11:50.400 --> 0:11:53.160 on all things crypto, from regulation to stable coins to 0:11:53.480 --> 0:11:56.440 Elon Musk, and is hinted at Twitter takeover that's next. 0:11:56.640 --> 0:12:12.959 This is Bloomberg f t X founder and CEO Sam 0:12:13.000 --> 0:12:16.000 Bankman Freed, who was recently profiled in a Bloomberg Big 0:12:16.040 --> 0:12:18.559 Take on how he plans to give away his fortune, 0:12:18.600 --> 0:12:21.719 has been vocal about the Musk Twitter controversy and how 0:12:21.760 --> 0:12:25.040 blockchain could revolutionize social media. He's spoke earlier with my 0:12:25.080 --> 0:12:27.440 colleagues Matt Miller and Kaylee Lines and started by talking 0:12:27.440 --> 0:12:30.160 about crypto regulation and how it could change not only 0:12:30.200 --> 0:12:33.760 businesses like f t X, but the way traditional Wall 0:12:33.800 --> 0:12:38.480 Street operates. One of the big things is I think 0:12:38.760 --> 0:12:40.800 that that may provide a pathway for them to get 0:12:40.840 --> 0:12:44.079 involved in digital assets. Um. That that's frankly something I'm 0:12:44.120 --> 0:12:46.320 excited about here. Um. You know, I think a lot 0:12:46.360 --> 0:12:49.280 of them have been waiting for uh, you know, clear 0:12:49.640 --> 0:12:53.040 federal oversight of the space to get involved. Um. I 0:12:53.040 --> 0:12:56.640 think that there are really interesting applications of other asset classes. 0:12:56.679 --> 0:12:58.000 Now you have to be careful when you do that, 0:12:58.280 --> 0:13:00.280 because you have to look at what do existing element 0:13:00.280 --> 0:13:04.040 cycles look like in you know, traditional agricultural commodities. How 0:13:04.040 --> 0:13:06.679 would that interface with the system like this. I think 0:13:06.679 --> 0:13:08.520 it's an interesting question. I think it's one that you 0:13:08.559 --> 0:13:11.280 know needs more thought and certainly, you know, we would 0:13:11.280 --> 0:13:15.440 be looking to start just with doing this for digital assets. Um, 0:13:15.520 --> 0:13:17.240 but but I do think that that, you know, it 0:13:17.280 --> 0:13:19.800 would be really interesting to do a deep dive, um, 0:13:19.840 --> 0:13:22.160 you know, with the CFTC and crucially with the core 0:13:22.200 --> 0:13:25.199 market participants in those areas about how this could you know, 0:13:25.240 --> 0:13:26.880 interface with that. I think when you look at things 0:13:26.880 --> 0:13:30.640 like treasuries, right, I think tokenized treasuries could be really interesting. 0:13:30.640 --> 0:13:33.160 I think you could provide transparency and real time settlement 0:13:33.240 --> 0:13:35.920 of them, getting rid of this sort of like keyser 0:13:36.000 --> 0:13:38.000 q on T two system that we have for various 0:13:38.000 --> 0:13:40.720 asset classes, right with securities, where it takes two days 0:13:40.760 --> 0:13:42.560 to settle a trade, and there's sort of like this 0:13:42.640 --> 0:13:45.839 amount of uncertainty and risk and and exposure during those 0:13:45.880 --> 0:13:47.920 two days. I think it would be really cool to 0:13:47.960 --> 0:13:51.880 see you real time margining, real time risk, and real 0:13:51.880 --> 0:13:53.920 time settlement you know, based on tokens of those. So 0:13:53.960 --> 0:13:57.120 I think there are really interesting applications. Okay, Sam, I 0:13:57.120 --> 0:13:59.720 want to pivot to another story. We even carefully following 0:14:00.280 --> 0:14:02.000 Bloomberg for the last couple of weeks, and I know 0:14:02.040 --> 0:14:05.040 you've been following it. To Elon Musk's bid for Twitter. 0:14:05.080 --> 0:14:06.719 We just had a headline crossing from the New York 0:14:06.720 --> 0:14:08.720 Post that he's willing to invest tend to fifteen billion 0:14:08.720 --> 0:14:11.240 dollars of his own cash for Twitter, whether or not 0:14:11.440 --> 0:14:15.840 he eventually succeeds. You have proposed a decentralized model for Twitter. 0:14:15.920 --> 0:14:17.560 Can you just walk us through that and how you 0:14:17.600 --> 0:14:21.200 think it will be beneficial to the company. Absolutely, and 0:14:21.240 --> 0:14:23.320 I think this would be a really really interesting and 0:14:23.360 --> 0:14:26.920 important innovation in in uh social networks. Obviously, we'd have 0:14:27.000 --> 0:14:28.880 to see how it actually played out, but here's the 0:14:28.880 --> 0:14:31.600 core of it, um right now. One of the big 0:14:31.640 --> 0:14:35.400 problems with social media is there's lots of platforms, and 0:14:35.560 --> 0:14:38.600 all the platforms are completely independent of each other. There's 0:14:38.680 --> 0:14:42.160 no ability to see a tweet on Facebook if you 0:14:42.400 --> 0:14:45.240 message him on Facebook, you know, even what'sapp can't rate it, 0:14:45.240 --> 0:14:47.960 and that that's even the same company, um, And so 0:14:48.160 --> 0:14:52.960 it's just you know, really messy system where there are uh, 0:14:53.000 --> 0:14:56.760 you know, there's no interoperability between different platforms. UM. And 0:14:56.960 --> 0:14:59.600 there's a second problem that you have here is around 0:15:00.240 --> 0:15:03.320 basically moderation, right, Like what is the moderation policy for 0:15:03.360 --> 0:15:06.200 basically all of social media right now? It's like three guys, right, 0:15:06.560 --> 0:15:08.920 it's a people who run three companies who choose what 0:15:08.960 --> 0:15:12.080 doesn't doesn't get censored. Um and and we've seen that 0:15:12.080 --> 0:15:14.880 that is a broken model. Right. We saw a social 0:15:14.880 --> 0:15:19.320 media choose not to censor um misinformation in and get 0:15:19.320 --> 0:15:22.200 absolutely roasted for that decision. And then we saw them 0:15:22.240 --> 0:15:26.080 choose to censor in and get roasted for that decision. 0:15:26.480 --> 0:15:29.840 UM and uh. And so here's the core of what 0:15:29.880 --> 0:15:33.480 I think would be really really exciting, UM would be 0:15:34.000 --> 0:15:37.880 that you take a blockchain, you put the actual underlying 0:15:37.920 --> 0:15:41.520 messages directly on the blockchain. UM. And what that means 0:15:41.520 --> 0:15:44.760 is that any platform in theory could access those same 0:15:44.840 --> 0:15:49.040 sets of messages. UM. And so whether you're using you know, Facebook, 0:15:49.080 --> 0:15:52.200 Twitter or whatever, this sort of like you know platform 0:15:52.400 --> 0:15:55.520 is they're all drawing on all of the messages. They 0:15:55.520 --> 0:15:57.480 can all write to this blockchain, they can all read 0:15:57.520 --> 0:16:00.040 from it, but they are as different interfaces effect of 0:16:00.800 --> 0:16:03.520 living in the same universe. And one of the cool 0:16:03.560 --> 0:16:05.760 things that falls out of that is, first of all, 0:16:05.800 --> 0:16:08.600 you have interoperability between platforms, which solves a lot of 0:16:08.640 --> 0:16:11.200 these network problems and allow us for more competition because 0:16:11.200 --> 0:16:14.000 it means new people can enter this space without being 0:16:14.520 --> 0:16:18.680 miles behind in terms of you know, user based growth. UM. 0:16:18.760 --> 0:16:21.320 But the other thing that it means, UM is that 0:16:21.360 --> 0:16:24.240 when it comes to moderation, you could have different platforms 0:16:24.280 --> 0:16:27.080 making different decisions, right, and so you could have you know, 0:16:27.120 --> 0:16:30.000 two people have two different platforms, but each with the 0:16:30.080 --> 0:16:33.600 same underlying set of message is accessible and so UM, 0:16:33.640 --> 0:16:36.560 you know, they don't have to deal with this this 0:16:36.640 --> 0:16:40.160 network effect problem, but which makes slightly different decisions about 0:16:40.160 --> 0:16:43.840 what to sensor what not to sensor, UM and uh, 0:16:44.480 --> 0:16:46.960 you know, and and that can at least give some 0:16:47.040 --> 0:16:50.600 consumer choice here. It can at least give people, you know, options, Sam, 0:16:50.640 --> 0:16:53.720 I think it's a fascinating idea. And I also had 0:16:53.760 --> 0:16:58.000 seen c Z tweet about it UM on the Elon 0:16:58.080 --> 0:17:02.000 Musk Twitter announcement day. I'm just wondering, have you talked 0:17:02.040 --> 0:17:07.080 to Ellen about this? But I have not talked directly 0:17:07.119 --> 0:17:10.679 to to Ellen about this, UM, but I would be 0:17:10.720 --> 0:17:14.120 excited to UM, I you know, have had some conversations 0:17:14.280 --> 0:17:17.480 with you know, people who are investigating this. I think 0:17:17.520 --> 0:17:20.639 they're they're really cool ideas UM and I would be 0:17:20.680 --> 0:17:23.960 really excited to be, you know, potentially involved in something here, 0:17:24.000 --> 0:17:27.199 whether you're looking at UM you know, I thinking, I 0:17:27.240 --> 0:17:30.040 think the biggest thing would be thinking about how blockchain 0:17:30.119 --> 0:17:32.800 could be applied here UM, you know, maybe as a 0:17:32.840 --> 0:17:35.160 test case first. I'd be excited to help on the 0:17:35.200 --> 0:17:39.040 designing and building of it UM and I, you know, 0:17:39.359 --> 0:17:42.919 on I you know, potentially helping to manage a network 0:17:43.000 --> 0:17:46.919 that that was looking to do this. That was FDx 0:17:46.920 --> 0:17:51.280 founder and CEO Sam Bankman Fried earlier with Matt Miller 0:17:51.320 --> 0:17:53.920 and Kaylee Lines on bloom Brooks Cryptos Show, and speaking 0:17:53.960 --> 0:17:57.320 of Elon Musk and Twitter, the story has been developing 0:17:57.400 --> 0:18:00.119 day by day. Bloom Brook's Ed Ludlow here with more 0:18:00.119 --> 0:18:03.000 on the latest at Apollo now weighing a bid for 0:18:03.040 --> 0:18:07.280 Twitter as well. Yeah, so Bloomberg sources saying Apollo is 0:18:07.520 --> 0:18:11.040 weighing a lot of options right, Either they back Musqus bid, 0:18:11.760 --> 0:18:14.960 or they back a bid from others. We know tomer Rather, 0:18:15.080 --> 0:18:18.280 for example, is eyeing its own bid for Twitter. One 0:18:18.440 --> 0:18:22.040 other media reports suggested that Apollo could even go to 0:18:22.080 --> 0:18:25.439 Twitter and help their defense and say, Yo, let's do 0:18:25.520 --> 0:18:28.240 something together directly. And as with all deals, you get 0:18:28.280 --> 0:18:30.760 these usual caveats that the deal may not happen depending 0:18:30.800 --> 0:18:33.520 on certain circumstances. And I think he heard Kayley allude 0:18:33.560 --> 0:18:35.480 to in that piece of tape. The New York Post 0:18:35.560 --> 0:18:37.720 was kind of the story of the day reporting the 0:18:37.760 --> 0:18:40.680 Elon Musk is struggling to find backers for his own bid, 0:18:40.920 --> 0:18:44.480 but ultimately he's considering putting ten to fifteen billion dollars 0:18:44.480 --> 0:18:46.439 of his own money up front. But he'd still need 0:18:46.520 --> 0:18:48.400 to find the rest of the financing, of course, because 0:18:48.440 --> 0:18:50.280 the figure that is currently on the table is a 0:18:50.359 --> 0:18:53.720 forty three billion dollar valuation of Twitter. Now, one of 0:18:53.760 --> 0:18:56.000 the big takeaways here at is that investors may need 0:18:56.040 --> 0:18:59.320 to buckle up. This could be a long ride. I mean, 0:18:59.600 --> 0:19:03.200 you know, flight could go on for months, right. Yeah, 0:19:03.280 --> 0:19:05.520 But we've discussed on this show. All the experts we 0:19:05.560 --> 0:19:07.040 speak to in the world of M and A say 0:19:07.119 --> 0:19:10.040 that this is playing out as a textbook scenario for 0:19:10.040 --> 0:19:12.840 a hostile takeover. There are lots of options, we think, 0:19:13.080 --> 0:19:15.000 and the New York Post did report this that a 0:19:15.119 --> 0:19:18.680 tender offer directly to shareholders from Musk could come at 0:19:18.680 --> 0:19:21.320 some point in the next ten days. That's great fun 0:19:21.400 --> 0:19:23.000 for me because I like to get up at four 0:19:23.040 --> 0:19:25.040 a m e. Sometime in the morning and wait for 0:19:25.080 --> 0:19:27.440 regulatory filings to come through. And that's how it would 0:19:27.480 --> 0:19:30.320 be communicated. This is the thing. We have to wait 0:19:30.359 --> 0:19:33.000 and see how it plays out. But ultimately the kind 0:19:33.000 --> 0:19:35.359 of hypothesis out there from the street is that Musk 0:19:35.520 --> 0:19:37.760 is going to have to do this in coordination with 0:19:37.800 --> 0:19:40.240 a number of parties, and that does give him options. 0:19:40.880 --> 0:19:44.119 And tomorrow is for twenty, which is, as we know, 0:19:44.280 --> 0:19:47.120 one of Elon Musk's favorite days. I mean, are you're 0:19:47.119 --> 0:19:49.560 going to be staying up all night and waiting for 0:19:49.560 --> 0:19:52.639 that regulatory filing. I will stay up all day, all 0:19:52.760 --> 0:19:55.560 night and four twenties also Tesla earnings and when better 0:19:55.800 --> 0:19:58.280 to announce your intentions for a hostile take over Twitter 0:19:58.640 --> 0:20:02.159 than the earnings core of your other company. Sure, all right, 0:20:02.560 --> 0:20:06.800 ed Ludlow, thank you, We'll be watching well. Florida Governor 0:20:06.880 --> 0:20:10.359 Rond De Santis has escalated a dispute with Disney, asking 0:20:10.359 --> 0:20:14.439 the state's legislator to consider terminating special districts where Disney 0:20:14.440 --> 0:20:18.359 currently has special privileges for example, access to cheaper tax 0:20:18.400 --> 0:20:21.720 exempt financing. This is the first indication that the standoff 0:20:21.720 --> 0:20:24.879 between the state and the entertainment giant over school instruction 0:20:24.960 --> 0:20:30.240 about gender identity and sexual orientation could have consequences for Disney. 0:20:30.280 --> 0:20:34.640 This as plunging shares of Netflix has impacted other companies 0:20:34.680 --> 0:20:37.879 tied to streaming, like Disney, also dropping about five percent 0:20:38.240 --> 0:20:42.560 after hours. Meantime, Airbnb is not only planning to issue 0:20:42.600 --> 0:20:45.520 a lifetime band to the guests behind a mass shooting 0:20:45.520 --> 0:20:47.920 at one of its rentals in Pittsburgh, the company is 0:20:47.960 --> 0:20:50.720 also reportedly looking to take legal action against them. This 0:20:50.800 --> 0:20:54.240 according to the Pittsburgh Post Gazette. Two teenagers were killed 0:20:54.520 --> 0:20:58.240 nine others injured at an underage party early Sunday morning. 0:20:58.600 --> 0:21:02.479 Back Abnb announced a global ban on all parties and 0:21:02.560 --> 0:21:05.880 events after a number of violent incidents. It also blocked 0:21:06.000 --> 0:21:09.000 thousands of rentals at the height of the pandemic due 0:21:09.040 --> 0:21:20.840 to hosts breaking party rules. Welcome back to Bloomer Technology. 0:21:20.840 --> 0:21:23.840 I'm emily changing in San Francisco. Well after a decade 0:21:23.880 --> 0:21:26.919