WEBVTT - Israel-Hamas War, Microsoft and Activision Close the Deal 0:00:00.880 --> 0:00:05.200 Possible from Mahart. We're Innovation, Money and Power Collie in 0:00:05.320 --> 0:00:10.240 Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde 0:00:10.280 --> 0:00:11.680 and Ed Ludlow. 0:00:26.000 --> 0:00:29.200 Amed Ludlow in San Francisco. Caroline hides off today. This 0:00:29.480 --> 0:00:31.840 is Bloomberg Technology. Coming up on the program, We'll bring 0:00:31.880 --> 0:00:34.920 you the latest updates from the Israel Hamas war and 0:00:34.960 --> 0:00:40.200 speak with Israel's first ever chief technology officer, and Microsoft 0:00:40.240 --> 0:00:43.320 and Activision close the deal after nearly two years of 0:00:43.360 --> 0:00:47.840 fighting for the sixty nine billion dollar transaction to gainful approval. 0:00:48.080 --> 0:00:49.400 We have full coverage ahead. 0:00:49.479 --> 0:00:52.040 Plus we'll bring you more from our inaugural screen time 0:00:52.080 --> 0:00:55.000 event in Hollywood and hear from the CEOs of Netflix 0:00:55.280 --> 0:00:59.080 YouTube and also the head of the Kardashian Plan. The 0:00:59.120 --> 0:01:01.280 main story is what's happening in the Middle Least. I 0:01:01.360 --> 0:01:03.640 want to get straight to the latest developments in the 0:01:03.680 --> 0:01:07.160 Israel Jamas war. Joining us from Tel Aviv is Bloomberg 0:01:07.160 --> 0:01:08.759 correspondent Oliver Krook and Oliver. 0:01:08.880 --> 0:01:11.319 Let's be frank. A lot has happened this Friday. 0:01:12.360 --> 0:01:14.880 It has been completely intense twenty four hours. It really 0:01:14.920 --> 0:01:17.560 started at around five thirty six o'clock this morning when 0:01:17.600 --> 0:01:20.759 we got that initial sort of evactuate evacuation order from 0:01:20.840 --> 0:01:24.080 the Israeli Defense Forces where they told the residents of 0:01:24.120 --> 0:01:27.959 Gaza City in northern Gaza that they should leave the area, 0:01:28.040 --> 0:01:29.760 and that is sort of how the day began, and 0:01:29.800 --> 0:01:32.800 the UN said that that is basically an impossibility. 0:01:32.880 --> 0:01:34.520 It's important to. 0:01:34.480 --> 0:01:37.560 Get these people out, says the Israeli Defense Forces, because 0:01:37.560 --> 0:01:40.600 they want to minimize civilian casualties. But we're talking about 0:01:40.640 --> 0:01:44.280 displacement of one point one million people, that is about 0:01:44.319 --> 0:01:47.440 half of the the population of Gaza, and to then 0:01:47.520 --> 0:01:50.480 compress them into about fifty percent of the space that 0:01:50.520 --> 0:01:52.760 they begin with is something that the UN is saying 0:01:52.920 --> 0:01:56.680 is going to turn tragedy into catastrophe. And the tragedy 0:01:56.720 --> 0:01:58.960 we're talking about is a death toll that has exceeded 0:01:58.960 --> 0:02:00.000 fifteen hundred. 0:01:59.680 --> 0:02:00.640 People in Gaza. 0:02:00.880 --> 0:02:06.240 The healthcare system is entirely overwhelmed. They have no water, electricity, food, internet, 0:02:06.320 --> 0:02:09.280 and Israel overnight continued to strike seven hundred and fifty 0:02:09.360 --> 0:02:12.320 military targets and of course is all in response to 0:02:12.560 --> 0:02:15.280 the attacks on Saturday that left now we know thirteen 0:02:15.360 --> 0:02:20.520 hundred Israeli's dead, mostly on Saturday, and mostly civilians. 0:02:21.320 --> 0:02:26.119 Oliver is a frankly credible list of developments. As you say, 0:02:26.160 --> 0:02:28.799 it's been a sort of twenty four hour process. There 0:02:28.840 --> 0:02:31.680 is a bigger picture question about the Middle East, and 0:02:31.720 --> 0:02:34.440 you have been on the ground there in Tel Aviv, 0:02:34.480 --> 0:02:37.560 but also thinking about neighbors and what else is in 0:02:37.600 --> 0:02:38.280 the new cycle. 0:02:39.040 --> 0:02:43.400 Completely the geopolitical complexities here are absolutely vast, and you know, 0:02:43.480 --> 0:02:45.560 so it comes with a lot of support from Western 0:02:45.639 --> 0:02:49.000 allies to Israel. So it started with Blinken yesterday. We 0:02:49.040 --> 0:02:52.200 have Ursula underline here today. The US Defense Secretary also 0:02:52.240 --> 0:02:55.000 here today. But yesterday Blincoln's message, where there were really 0:02:55.040 --> 0:02:57.280 two of them. There's one of sort of total and 0:02:57.360 --> 0:03:00.400 unconditional support, but then a second message, and that is 0:03:00.400 --> 0:03:03.720 about how Israel does about taking out Hamas is going 0:03:03.760 --> 0:03:06.000 to be very important. What Blincoln said is that it's 0:03:06.040 --> 0:03:09.560 so important that every possible precaution to avoid harming civilians 0:03:09.560 --> 0:03:11.919 has taken and that we mourn the loss of every 0:03:11.960 --> 0:03:13.240 single innocent life. 0:03:13.400 --> 0:03:14.359 This obviously is the. 0:03:14.320 --> 0:03:17.239 Background to all of the meetings that Blincoln has conducted today. 0:03:17.360 --> 0:03:20.120 Right now, Anthony Blinken, he just gave a press conference 0:03:20.160 --> 0:03:23.080 with the Katari foreign minister. He's in Kutar he's meeting 0:03:23.080 --> 0:03:27.359 with the Saudis, Egyptians, you know, the UAE, and this 0:03:27.400 --> 0:03:29.480 is the conversation that you're gonna have everwhere. Just as 0:03:29.600 --> 0:03:33.280 Israelis we're seeing all these horrific pictures on their phones 0:03:33.320 --> 0:03:36.080 and that sort of put pressure on the government even more. 0:03:36.400 --> 0:03:38.400 All of the Arab world is seeing what's going on 0:03:38.440 --> 0:03:40.800 in Gaza, and you've seen protests in the streets of 0:03:40.840 --> 0:03:44.680 Iraq where they've been burning Israeli flags but running. 0:03:44.680 --> 0:03:46.520 A Palestinian flags. The West Bank. 0:03:46.520 --> 0:03:50.000 There have been protests Lebanon, Pakistan, Yemen, and Iran has 0:03:50.040 --> 0:03:53.800 been meeting with the leadership with Hesbellah and Hamas in 0:03:53.880 --> 0:03:57.560 Lebanon today. So really a really very complex situation, and 0:03:57.600 --> 0:04:01.160 again these countries are going to come under men's pressure themselves. 0:04:01.760 --> 0:04:03.600 Later on in the program, we are going to continue 0:04:03.600 --> 0:04:06.360 to have the conversation about social media. You know, Bloomberg 0:04:06.440 --> 0:04:09.600 has reported extensively. We have discussed on this program that 0:04:09.920 --> 0:04:13.640 there's video content on lots of platforms that is circulating 0:04:13.680 --> 0:04:17.040 that purports to be one thing and in fact is another. 0:04:17.120 --> 0:04:18.560 It is not what it purports to be. 0:04:18.720 --> 0:04:22.080 And so you know, experts the government urging caution on 0:04:22.080 --> 0:04:25.200 that front that there's an issue of logistics and mechanics 0:04:25.240 --> 0:04:27.720 as well, Oliver, that you on the ground are starting 0:04:27.800 --> 0:04:32.560 to cover and understand an evacuation. And then you know defense, 0:04:32.839 --> 0:04:35.560 iron dome, the role of technology. What have you learned 0:04:35.680 --> 0:04:36.920 since arriving in Tel Aviv. 0:04:37.680 --> 0:04:39.800 Yeah, so there is the question of iron dome and 0:04:39.839 --> 0:04:42.479 could it, you know, potentially be depleted or overwhelmed, and 0:04:42.520 --> 0:04:44.560 this sort of hangs over it. We understand that some 0:04:44.640 --> 0:04:47.320 of the sort of ammunition for iron dome from the 0:04:47.440 --> 0:04:50.440 US supplies that is here in Israel was transferred today. 0:04:50.640 --> 0:04:52.680 We know that the US has sent equipment yesterday and 0:04:52.720 --> 0:04:55.200 that there is more on the way, but there is 0:04:55.240 --> 0:04:58.720 it's not really known how many rockets Hesbala has, for 0:04:58.800 --> 0:05:02.560 example in Lebani, and many of these are far range rockets. 0:05:02.600 --> 0:05:04.840 I mean, I had the first air raid sire and 0:05:04.880 --> 0:05:07.520 go off today in Tel Aviv just about two hours ago. 0:05:07.800 --> 0:05:09.520 That's the first one that we've had so far, and 0:05:09.560 --> 0:05:12.440 that apparently was fired from Gaza. But this really highlights 0:05:12.480 --> 0:05:17.680 the risk potential, particularly as Israel seemingly is gearing up 0:05:17.760 --> 0:05:20.360 for what could be a ground invasion. You have more 0:05:20.400 --> 0:05:23.799 than three hundred thousand troops that are stationed right near Gaza. 0:05:24.000 --> 0:05:26.120 The government has not said whether or not they're going 0:05:26.160 --> 0:05:29.440 to launch that attack yet, but again they've asked to 0:05:29.520 --> 0:05:31.120 evacuate the northern part of the city. 0:05:31.240 --> 0:05:32.880 And if they do in fact attack, that. 0:05:32.880 --> 0:05:35.880 Just opens up a whole other set of questions about 0:05:35.960 --> 0:05:38.600 how do they go about this, And also they relinquish 0:05:38.680 --> 0:05:41.840 many of their technological and military advantages once they get 0:05:41.839 --> 0:05:44.520 into a sort of urban combat zone. And then even 0:05:44.520 --> 0:05:47.240 if they do eliminate Hamas, what do they do next? 0:05:47.360 --> 0:05:49.680 What is the exit strategy? What comes after that? These 0:05:49.680 --> 0:05:51.120 are all the questions that we're going to have to 0:05:51.160 --> 0:05:52.440 be asking for the next. 0:05:52.320 --> 0:05:52.960 Days and weeks. 0:05:54.000 --> 0:05:57.160 Bloomberg Television correspondent on the ground in Tel Aviv, Oliver Krook. 0:05:57.320 --> 0:06:00.719 Stay tuned to Bloomberg all channels but bloom Television in 0:06:00.720 --> 0:06:03.600 the coming days. Oliver, thank you for reporting. We stay 0:06:03.640 --> 0:06:06.200 with the story of the Israel Hamas war, but think 0:06:06.240 --> 0:06:11.480 about technology joining us now. Is Yonatanadiri, who served previously 0:06:12.080 --> 0:06:16.279 as Israel's first CTO, and hen had let's start there. 0:06:16.320 --> 0:06:20.760 I think Iron Dome in particular, your assessment of the 0:06:20.839 --> 0:06:24.640 role technology is playing in the Israeli response to the 0:06:24.640 --> 0:06:25.800 weekend's events. 0:06:27.320 --> 0:06:29.279 Well, first, of all, thank you, thank you for having 0:06:29.279 --> 0:06:34.839 me on the show. The events that started on Saturday 0:06:34.920 --> 0:06:39.760 morning with this isis type massacre of innocent civilians and 0:06:39.800 --> 0:06:42.839 not only get north of twelve hundred people have really 0:06:43.080 --> 0:06:47.040 challenged Israel. But you know, if to paraphrase from the 0:06:47.080 --> 0:06:52.000 American national anthem, Israel is the land of the free 0:06:52.040 --> 0:06:54.320 and home of the resilient. And I'm sure that with 0:06:54.480 --> 0:06:58.520 technology we're gonna persevere. We're going to win this one 0:06:59.000 --> 0:07:02.160 and continue to contrue to the way in which global 0:07:03.160 --> 0:07:06.960 humanity is dealing with its top challenges through technology. 0:07:07.640 --> 0:07:10.200 This is not just centerals technology and defense. 0:07:10.360 --> 0:07:13.600 Israel as a powerhouse of technology and solving in tackling 0:07:13.880 --> 0:07:19.880 the biggest problems facing humanity and our ecosystem, is committed 0:07:20.560 --> 0:07:23.120 to that its role within this global context. 0:07:24.960 --> 0:07:25.440 Jatan. 0:07:25.520 --> 0:07:30.600 One area of the technology discussion is in intelligence and data, 0:07:31.560 --> 0:07:34.200 and a debate that's taken place on the show this 0:07:34.280 --> 0:07:40.400 week was about the preparedness of Israeli intelligence forces. We 0:07:40.480 --> 0:07:42.800 had one academic on the show who said it wasn't 0:07:42.840 --> 0:07:47.880 a lack of intelligence, but simply a lack of imagination 0:07:48.440 --> 0:07:51.559 at the scale of what Hamas would would be able 0:07:51.800 --> 0:07:55.280 to have done. Please reflect on your experience as the 0:07:55.320 --> 0:07:58.720 chief technology officer of the country and share with our 0:07:58.760 --> 0:08:03.160 audience what you know Israel had in place in recent 0:08:03.280 --> 0:08:06.000 times in the areas of defense intelligence. 0:08:08.280 --> 0:08:11.480 Well, I think you're totally right ed spot on. 0:08:12.280 --> 0:08:15.560 Israel has deployed numerous technologies. Think the core one, as 0:08:15.560 --> 0:08:19.520 you've discussed with Oliver, was iron dome. I remember in 0:08:19.600 --> 0:08:23.360 May two thousand and nine, I was on President Parris's 0:08:23.400 --> 0:08:25.840 team as we came to meet President Obama in the 0:08:25.880 --> 0:08:30.160 White House right after the inauguration. Technology was a big 0:08:30.200 --> 0:08:33.079 part of that. Defense technology was a big part of that. 0:08:33.880 --> 0:08:39.720 I think you're totally right about the limitations of legends 0:08:40.280 --> 0:08:44.840 technologies as to the imagination gap. Intelligence technologies provide us 0:08:44.880 --> 0:08:48.880 with data, they provide us with signals, if you will, 0:08:48.920 --> 0:08:50.360 But it is at the end of the day, the 0:08:50.480 --> 0:08:54.680 human interpreter that needs to put in the signals and 0:08:54.840 --> 0:08:59.600 noise ratio and to figure out what's the plausible scenario. 0:09:00.040 --> 0:09:02.720 Will I would like to equate that with what happened 0:09:02.840 --> 0:09:06.200 nine to eleven America, the NSA, the CIA, the FBI. 0:09:06.360 --> 0:09:09.520 We know that from the Investigative Committee post. 0:09:09.360 --> 0:09:13.760 Nine to eleven has had quite a significant degree of intelligence, 0:09:14.480 --> 0:09:17.240 but it was about putting those bits and pieces together 0:09:17.679 --> 0:09:21.480 and anticipating that people would actually go into the cockpit 0:09:21.559 --> 0:09:26.800 and transform an airliner into a live bomb and you know, 0:09:26.920 --> 0:09:30.760 crush it into into the Twin Towers and to other 0:09:31.679 --> 0:09:34.040 targets within the US. So I think you're spot on 0:09:34.040 --> 0:09:36.800 on that you can be a superpowered the size of 0:09:36.800 --> 0:09:37.240 the US. 0:09:37.320 --> 0:09:39.080 You can be a technology. 0:09:38.520 --> 0:09:43.559 Superpower the size of Israel and deploy you know, frontline technologies. 0:09:43.600 --> 0:09:44.760 But at the end of the day, it's about the 0:09:44.800 --> 0:09:48.679 ability to imagine, you know, what could be that human 0:09:48.760 --> 0:09:54.360 factor usage of those signals in a terror context. 0:09:55.000 --> 0:09:57.199 Johannaston and I would just point out that that viewpoint 0:09:57.200 --> 0:09:59.760 that it was a lack of imagination rather than intelligence, 0:10:00.200 --> 0:10:04.880 the viewpoint of Professor Charles Freilich of Columbia, a former 0:10:05.000 --> 0:10:09.160 intelligence advisor to your country, Israel, not my own. We've 0:10:09.200 --> 0:10:12.520 talked a lot about the sort of hard power, hardware, 0:10:12.640 --> 0:10:14.920 technology response, and software response. 0:10:15.640 --> 0:10:16.960 There's talk a bit about the industry. 0:10:17.000 --> 0:10:21.840 Yourself are a startup founder. Israel's economy has deep roots 0:10:21.880 --> 0:10:25.960 in technology. What is it like right now to operate 0:10:26.000 --> 0:10:29.840 a startup, a small startup in Israel with what's happening 0:10:29.920 --> 0:10:31.040 in the country. 0:10:32.760 --> 0:10:35.640 Or I think you know, fundamentally, Israel has had a 0:10:36.160 --> 0:10:39.720 over the last just week, a centrillion dollar worth of 0:10:39.960 --> 0:10:44.960 marketcap voad of confidence if you will, between Microsoft, Apple, Google, 0:10:45.840 --> 0:10:50.600 Amazon and Nvidia, who all have deployed significant parts of 0:10:50.640 --> 0:10:54.319 their R and D. Intel has their autonomous our brain 0:10:54.360 --> 0:10:57.880 here in Israel. Apple runs part of its design of 0:10:58.000 --> 0:10:59.880 chipsets and seniconductors sought us. 0:10:59.840 --> 0:11:04.800 In Tell again, Google has a very profound base of 0:11:04.880 --> 0:11:05.720 our and DA Israel. 0:11:05.760 --> 0:11:09.520 They have all and the jazz at Amazon, Soundar Pichai 0:11:10.400 --> 0:11:12.079 and Jensen Gwang. 0:11:12.240 --> 0:11:13.839 The leadership of those companies have. 0:11:15.320 --> 0:11:19.920 Unequivocally supported Israel and the ecosystem here. If we had 0:11:19.960 --> 0:11:23.120 two to three trillion dollars more of support in what's 0:11:23.200 --> 0:11:25.720 going on here in the life sciences industry and the 0:11:25.800 --> 0:11:28.840 cyberspace industry, I would say that part of what enables 0:11:28.880 --> 0:11:31.880 our conversation right now, and for the viewers at home, 0:11:32.960 --> 0:11:35.120 from the moment they woke up this morning untiled right now, 0:11:35.160 --> 0:11:38.680 they would have probably used and Israeli technology. So we 0:11:38.760 --> 0:11:43.520 continue to perform, we continue to develop, and part of 0:11:43.520 --> 0:11:46.960 that is, you know, how do we manage the emergency 0:11:46.960 --> 0:11:50.720 situation here at Israel and allocating the empathy. 0:11:50.040 --> 0:11:52.120 To our workforce, to the broader community. 0:11:52.559 --> 0:11:55.480 But how do we remain committed to salting humanity's greatest 0:11:55.559 --> 0:11:59.160 challenges even when we're under war, under attack of thousands 0:11:59.200 --> 0:12:04.440 of rockets in this insidious attack kind of icis class 0:12:04.800 --> 0:12:05.720 from last Saturday. 0:12:05.760 --> 0:12:07.520 That's what we have to balance and that's where committed 0:12:07.559 --> 0:12:07.679 to do. 0:12:09.080 --> 0:12:12.280 Jonatan Adieri, founder and CEO of Healthy dot Io, but 0:12:12.320 --> 0:12:15.200 also former CTO of Israel, the first CTO of Israel, 0:12:15.240 --> 0:12:17.160 thank you for your time, and he mentioned Jensen Wang 0:12:17.320 --> 0:12:19.760 a programming note that Nvidia had been due to hold 0:12:19.800 --> 0:12:23.080 its AI summit in Tel Aviv on Sunday Monday, but 0:12:23.160 --> 0:12:25.559 it was canceled given the events of the week. Now 0:12:25.559 --> 0:12:28.160 coming up here on Bloomberg Technology returned to m and 0:12:28.200 --> 0:12:32.200 A is the biggest deal in gaming history has finally 0:12:32.280 --> 0:12:37.160 come to fruition after UK regulators approved Microsoft's revised offer 0:12:37.480 --> 0:12:39.920 to buy Activision Blizzard. We will have all the details next. 0:12:40.120 --> 0:12:53.400 This is Bloomberg Technology. 0:12:55.880 --> 0:13:01.120 This Microsoft brought forward, this fundamental concession, this fundamental restructure 0:13:01.120 --> 0:13:03.520 of the deal, which now puts all of the cloud 0:13:03.559 --> 0:13:07.440 streaming rights in relation to Activision's games content, all of 0:13:07.440 --> 0:13:09.920 the games that are available now but also any content 0:13:09.960 --> 0:13:12.439 that's created over the next fifteen years and those rights 0:13:12.600 --> 0:13:15.760 are put in the hands of Ubisoft and independent competitor, 0:13:15.800 --> 0:13:19.160 and that breaks the stranglehold that we were concerned Microsoft 0:13:19.160 --> 0:13:21.960 would have over this important cloud gaming sector. 0:13:24.559 --> 0:13:27.680 Now was the uk CMA CEO Sarah card Or on 0:13:27.760 --> 0:13:30.680 the deal, joining our colleagues earlier today. For more, let's 0:13:30.720 --> 0:13:34.360 turn to Cecilia Deanna Stasio, who's our video game report 0:13:34.400 --> 0:13:38.480 to hear at Bloomberg. Okay, it's happened. It's darne, it happened, 0:13:38.520 --> 0:13:42.360 But it's happened. Let's go back to the origin of 0:13:42.400 --> 0:13:46.680 this because everyone forgets because the discussion from the regulator 0:13:46.679 --> 0:13:49.319 is about cloud This is about mobile gaming. 0:13:49.760 --> 0:13:49.960 Right. 0:13:50.320 --> 0:13:52.320 What is it that Microsoft now is going to have 0:13:52.400 --> 0:13:56.400 to do with Activision to catch up in mobile gaming? 0:13:57.760 --> 0:14:00.559 Yeah, a lot has changed in the mobile gaming landscape 0:14:00.600 --> 0:14:03.720 since the deal was announced. Mobile gaming has been a 0:14:03.720 --> 0:14:06.360 behemoth for a long time. Microsoft has been behind on 0:14:06.559 --> 0:14:10.240 capitalizing on interest in mobile games, casual games, free games 0:14:10.240 --> 0:14:15.000 for smartphones and now with Candy Crush, which Activision makes, 0:14:15.040 --> 0:14:17.720 they have in their hands. I mean, one of the most, 0:14:17.760 --> 0:14:21.320 if not the most blockbuster mobile games in the West, 0:14:22.040 --> 0:14:25.080 and you know It's interesting because at the same time, 0:14:25.120 --> 0:14:27.400 the mobile gaming industry since this deal was announced, has 0:14:27.440 --> 0:14:32.160 experienced a contraction. It's oversaturated, So it'll be interesting to 0:14:32.200 --> 0:14:36.080 see how Microsoft leverages all of their power to capitalize 0:14:36.080 --> 0:14:38.560 on Candy Crush and other mobile games Under Activision. 0:14:39.480 --> 0:14:41.920 What do we learn about mechanics or what happens next. 0:14:42.000 --> 0:14:43.760 I think a headline that I saw on the Bloomberg 0:14:43.840 --> 0:14:46.560 terminal is that Bobby Kotik is going to leave the 0:14:46.880 --> 0:14:50.240 company or I guess the joint entity off to twenty 0:14:50.280 --> 0:14:50.840 twenty three. 0:14:52.880 --> 0:14:53.160 Yeah. 0:14:53.160 --> 0:14:56.960 So Bobby has led the company for decades and brought 0:14:56.960 --> 0:15:00.440 it to where it was today, and he he has 0:15:00.480 --> 0:15:02.600 said that he will step down at the end of 0:15:02.960 --> 0:15:05.760 this year, and until that time will be working under 0:15:05.800 --> 0:15:11.120 Microsoft's gaming chiefs, Phil Spencer, who became famous through stewardship 0:15:11.160 --> 0:15:11.920 of Xbox. 0:15:13.760 --> 0:15:18.400 When last it was disclosed, Activision had like thirteen thousand employees. 0:15:19.040 --> 0:15:20.360 This deal has dragged on. 0:15:21.560 --> 0:15:24.360 Taking Activision and merging it with Microsoft is not going 0:15:24.440 --> 0:15:27.440 to be straightforward. Just as a Beat reporter who knows 0:15:27.440 --> 0:15:30.080 this industry inside and out, how do you think that's 0:15:30.080 --> 0:15:30.560 going to go? 0:15:31.560 --> 0:15:31.800 Wow? 0:15:31.960 --> 0:15:36.680 I mean, consolidating two companies is never easy for two 0:15:36.720 --> 0:15:39.600 companies like this, especially with a Microsoft that has so 0:15:39.680 --> 0:15:44.440 many different capabilities across so many different platforms and technologies. 0:15:44.480 --> 0:15:48.400 I think it will be It will be an immense challenge. 0:15:48.640 --> 0:15:52.720 Microsoft is not immediately adding activision schemes to game Pass, 0:15:52.720 --> 0:15:54.520 which I think you know has been one of the 0:15:54.560 --> 0:15:58.360 really big exciting things that Phil Spencer and Bobby have 0:15:58.680 --> 0:16:01.920 talked about over the last couple of years. And that 0:16:01.960 --> 0:16:04.360 should show you that, you know, there there's a lot 0:16:04.400 --> 0:16:07.120 to get in place before we can really see how 0:16:07.160 --> 0:16:09.520 big and impactful this deal will be for Microsoft. 0:16:10.520 --> 0:16:14.080 Alright, Bloomberg, Cecilia Deannastasio, all across this deal for months 0:16:14.080 --> 0:16:15.560 and months and months, Thank you very much. 0:16:23.880 --> 0:16:25.080 Okay, time for talking tech. 0:16:25.120 --> 0:16:27.160 First up, the king of K pop is building the 0:16:27.280 --> 0:16:30.840 next bt s in l A Bong she Hawk, founder 0:16:30.880 --> 0:16:33.840 and chairman of Haibee, wants to replicate the formula that 0:16:34.040 --> 0:16:36.720 changed the pop music industry. While the world's biggest boy 0:16:36.840 --> 0:16:39.440 band is on hiatus. You also discussed the role of 0:16:39.440 --> 0:16:43.200 AI in K pop with Bloomberg's Suhi Kim and. 0:16:43.280 --> 0:16:44.000 Lucas Show. 0:16:46.440 --> 0:16:57.560 No Tongue, Curious Home, and There One for the K 0:16:57.640 --> 0:17:01.520 pop fans. Now Netflix, Coco Head surround Us also spoke 0:17:01.520 --> 0:17:03.760 at the bloombergt screen Time event in LA on a 0:17:03.800 --> 0:17:07.040 wide range of topics, including the actors strike, cracking down 0:17:07.280 --> 0:17:10.440 on passwords sharing, and reflecting on the pace of streaming 0:17:10.520 --> 0:17:11.359 in the medium industry. 0:17:11.400 --> 0:17:16.280 Have listened saved this industry because where we were heading 0:17:16.320 --> 0:17:19.720 at that time. Remember when we started this business of streaming, 0:17:19.920 --> 0:17:22.639 we started licensing content from the networks, and at the 0:17:22.680 --> 0:17:25.640 time that we were licensing, we could only get what. 0:17:25.600 --> 0:17:27.199 Was available, which was nothing. 0:17:27.760 --> 0:17:29.639 So we were licensing from the bottom of the barrel, 0:17:29.680 --> 0:17:33.040 things that had no revenue for anybody, shows that didn't 0:17:33.040 --> 0:17:35.440 get the syndication, things that weren't otherwise. 0:17:35.080 --> 0:17:37.560 Sold, kind of like what to B and some of 0:17:37.640 --> 0:17:40.920 the AVOD services did. It came around where they started. 0:17:40.680 --> 0:17:43.199 And we gave it away with the DVD business, and 0:17:43.520 --> 0:17:46.120 you got what you paid for back then. But I'd 0:17:46.160 --> 0:17:48.439 say what happened was that's created a whole new revenue 0:17:48.440 --> 0:17:50.840 stream for the networks in the studios. It created a 0:17:50.840 --> 0:17:54.280 whole new residual revenue stream for actors and performers who 0:17:54.359 --> 0:17:56.399 performed in those projects that were sitting on the shelf, 0:17:57.160 --> 0:17:59.159 and really kind of got the ball rolling in a 0:17:59.200 --> 0:18:02.160 way that you know, obviously, I think these things can. 0:18:02.080 --> 0:18:03.159 Take decades to build. 0:18:03.440 --> 0:18:06.040 But with their big, meaningful businesses, you know, that's that's 0:18:06.040 --> 0:18:08.840 a good investment, and i'd say good good business. For us, 0:18:08.840 --> 0:18:10.800 it's you know, thirty two billion dollars of revenue and 0:18:11.080 --> 0:18:14.920 six billion dollars of profit, and we've been growing the business. 0:18:14.600 --> 0:18:17.000 Pretty dramatically and pretty quick. We grew pretty quickly. 0:18:17.400 --> 0:18:19.399 We're not growing as fast right now as we want to, 0:18:19.440 --> 0:18:20.679 but we are still growing the business. 0:18:20.760 --> 0:18:23.440 So I'm curious on that point because you you guys 0:18:23.440 --> 0:18:25.600 in your remarks, I think your last learning support talked 0:18:25.600 --> 0:18:27.960 about how you still aren't growing as quickly as you'd 0:18:27.960 --> 0:18:30.000 like to. There was a point in time where every 0:18:30.119 --> 0:18:32.760 year like clockwork, Netflix, but basically add twenty five million 0:18:32.840 --> 0:18:36.200 to thirty million customers. Yeah, that obviously post pandemic has 0:18:36.240 --> 0:18:40.160 come way down. What are you doing about that? And 0:18:40.240 --> 0:18:42.920 do you think you can get back to the level 0:18:42.920 --> 0:18:45.200 of growth you were at three four years ago. 0:18:45.320 --> 0:18:46.760 Look, I think the key to it is, you know, 0:18:47.080 --> 0:18:49.960 growing the growing revenue, and I think for us that's 0:18:50.040 --> 0:18:52.960 a combination of you know, putting a great product on 0:18:53.000 --> 0:18:55.560 the board. When you talk about is streaming a good business, 0:18:55.560 --> 0:18:57.320 it is if you do it well. And I think 0:18:57.359 --> 0:18:59.960 I would say the team at Netflix in terms of 0:19:00.760 --> 0:19:04.160 the programming, Bella Bajari and her team are phenomenal at 0:19:04.200 --> 0:19:07.760 focusing on what people love and their creative team is 0:19:07.800 --> 0:19:10.879 great at delivering for what people love. The team that 0:19:10.920 --> 0:19:14.200 delivers the UI experience something that happens at Netflix that's 0:19:14.520 --> 0:19:16.000 almost impossible anywhere else. 0:19:16.080 --> 0:19:17.160 And I'd say because of. 0:19:17.600 --> 0:19:21.440 Our distribution footprint and our recommendations that you have the ability, 0:19:21.520 --> 0:19:24.040 if you're telling a story from Korea, to be the 0:19:24.040 --> 0:19:27.040 biggest television show in the world. That can only happen 0:19:27.119 --> 0:19:30.840 on Netflix. And it's not just taking obscurity and making 0:19:30.920 --> 0:19:36.120 it big. Imagine somebody as big as David Beckham who 0:19:36.160 --> 0:19:39.639 releases his the Documentary on Netflix and in days grows 0:19:39.680 --> 0:19:43.000 his social media following by half a million people. And 0:19:43.040 --> 0:19:45.160 I think this happens over and over again. The combination 0:19:45.320 --> 0:19:48.880 of our distribution footprint and recommendation and which I think 0:19:49.040 --> 0:19:50.880 is what distinguishes the business and the way you grow 0:19:50.920 --> 0:19:53.159 it is by keep doing that better and better, and 0:19:53.200 --> 0:19:56.360 the opportunity to grow it is enormous. We're about ten 0:19:56.400 --> 0:19:59.840 percent of screen time when people are using watching on 0:19:59.880 --> 0:20:03.360 the TV at home, about ten percent. In our most 0:20:03.400 --> 0:20:07.680 penetrated markets like the US, around the world significantly smaller. 0:20:08.200 --> 0:20:10.880 We're about five percent of consumer spending in the businesses 0:20:10.880 --> 0:20:15.320 that we're in, which is paid television, advertising, supported television. 0:20:14.840 --> 0:20:15.360 And games. 0:20:16.200 --> 0:20:18.040 And so as you look at that there, and we're 0:20:18.080 --> 0:20:20.479 just in our infancy in those businesses, then about five 0:20:20.520 --> 0:20:21.639 percent of consumer spending. 0:20:21.960 --> 0:20:23.679 So we're a ton of role. 0:20:25.240 --> 0:20:28.120 For our TV and radio audiences worldwide. 0:20:28.720 --> 0:20:29.480 It's official. 0:20:29.720 --> 0:20:34.520 Microsoft's completed it's sixty nine billion dollar purchase of Activision 0:20:34.800 --> 0:20:39.160 Blizzard after nearly two years fighting with global regulators who 0:20:39.240 --> 0:20:42.480 threatened to halt and indeed stop the deal. This is 0:20:42.520 --> 0:20:46.080 the biggest ever acquisition in the video games industry. I'm 0:20:46.080 --> 0:20:50.600 delighted to bring in Activision Blizzard CEO Bobby Kotik. Bobby, 0:20:50.600 --> 0:20:53.480 good afternoon, and thank you for your time joining us 0:20:53.520 --> 0:20:54.280 from New York City. 0:20:54.440 --> 0:20:55.480 Thanks for having me ed. 0:20:56.720 --> 0:20:57.040 Bobby. 0:20:57.080 --> 0:21:00.280 You and I have been talking about video games industry. 0:21:00.640 --> 0:21:05.120 We've been talking about cloud, but the origin of this 0:21:05.200 --> 0:21:07.960 deal was mobile gaming, and I just ask you to 0:21:08.000 --> 0:21:11.880 reflect if now that it's all said and done, Microsoft 0:21:12.280 --> 0:21:15.920 will be able to make some progress in mobile gaming. 0:21:17.240 --> 0:21:20.880 Look, I think there were a lot of great reasons 0:21:20.920 --> 0:21:22.600 for this merger. 0:21:22.880 --> 0:21:24.320 Mobile is an important part. 0:21:24.440 --> 0:21:27.960 I think one of the things that we've all benefited 0:21:28.000 --> 0:21:33.920 from is as smartphones became the dominant form of delivery 0:21:33.960 --> 0:21:38.920 devices for video games, we started to see the democratization. 0:21:38.160 --> 0:21:38.959 Of video games. 0:21:39.160 --> 0:21:43.360 And for most of the thirty some od years I've 0:21:43.359 --> 0:21:47.080 been running the company, we made games for consoles and 0:21:47.119 --> 0:21:51.080