1 00:00:01,480 --> 00:00:02,200 Speaker 1: From Bahard. 2 00:00:02,320 --> 00:00:06,760 Speaker 2: We're Innovation, Money and Power Collie in Silicon Valley, NBN. 3 00:00:07,080 --> 00:00:11,160 Speaker 2: This is Bloomberg Technology with Caroline Hyde and Ed Love Love. 4 00:00:24,360 --> 00:00:27,440 Speaker 3: I'm Caroline Heindet Bloomberg's World headquarters in New York and. 5 00:00:27,520 --> 00:00:29,880 Speaker 4: I made Love Low in San Francisco. This is Bloomberg 6 00:00:29,920 --> 00:00:31,040 Speaker 4: Technology coming up. 7 00:00:31,120 --> 00:00:34,800 Speaker 3: Tesla gets some tentative approval for its driving system in China. 8 00:00:35,159 --> 00:00:40,320 Speaker 4: Details ahead plus paramount expected to oustit CEO ahead of 9 00:00:40,360 --> 00:00:41,519 Speaker 4: earning tonight, we'll bring you. 10 00:00:41,479 --> 00:00:44,640 Speaker 3: The latest and so far shares they drop after Q 11 00:00:44,760 --> 00:00:47,519 Speaker 3: two guidance disappoints. We're going to discuss all of it 12 00:00:47,560 --> 00:00:50,559 Speaker 3: with the CEO, Anthony Noto. Well, first, let's checking on 13 00:00:50,600 --> 00:00:53,960 Speaker 3: these markets, because we're cautiously up on the nawstack at 14 00:00:53,960 --> 00:00:55,960 Speaker 3: the moment, up three tenths of a percent. We've got 15 00:00:55,960 --> 00:00:57,760 Speaker 3: a big week. You've got the FED, you've got the 16 00:00:57,800 --> 00:00:59,200 Speaker 3: all important claims, we've. 17 00:00:59,120 --> 00:00:59,840 Speaker 5: Got jobs data. 18 00:01:00,120 --> 00:01:02,280 Speaker 3: Friday, we're seeing the NASDAK still managing to be up 19 00:01:02,280 --> 00:01:04,200 Speaker 3: about forty eight points. Now we're seeing a ten year 20 00:01:04,240 --> 00:01:06,760 Speaker 3: yield actually diving back some four or five basis points. 21 00:01:06,840 --> 00:01:08,920 Speaker 5: Let's call it ahead of the all important Federal Reserve. 22 00:01:09,200 --> 00:01:12,000 Speaker 3: And indeed just where we see this economy, this interest 23 00:01:12,080 --> 00:01:15,880 Speaker 3: rate environment going notably a lot capturing the attention on 24 00:01:15,880 --> 00:01:18,280 Speaker 3: the macro perspective. What's happening in Japan at the moment. Look, 25 00:01:18,400 --> 00:01:20,920 Speaker 3: we've got a holiday period that means some of the 26 00:01:20,959 --> 00:01:22,959 Speaker 3: trading is going to be more muted in Japan, but 27 00:01:23,040 --> 00:01:25,200 Speaker 3: the yen some big volatility over the course of the 28 00:01:25,240 --> 00:01:28,400 Speaker 3: weekend Monday trading, We're down a percentage point on the 29 00:01:28,440 --> 00:01:30,160 Speaker 3: dollar of US as the end the yen goes higher. 30 00:01:30,720 --> 00:01:34,880 Speaker 3: Was it Japanese boj intervention? So far they remain mum 31 00:01:34,959 --> 00:01:36,800 Speaker 3: on the subject. We look forward to what's happening in 32 00:01:36,840 --> 00:01:40,120 Speaker 3: terms of another dollar related asset, this one Bitcoin down 33 00:01:40,200 --> 00:01:42,600 Speaker 3: versus the US dollar by about one and a quarter percent. 34 00:01:42,720 --> 00:01:44,200 Speaker 3: Now we're still seeing perhaps a little bit of a 35 00:01:44,280 --> 00:01:47,640 Speaker 3: risk off feel to bitcoin more generally and atf flows 36 00:01:47,720 --> 00:01:49,760 Speaker 3: for sixty eight hundred and fifty nine, and what are 37 00:01:49,760 --> 00:01:51,080 Speaker 3: you looking at on the micro the ed. 38 00:01:51,920 --> 00:01:55,920 Speaker 4: Well Tesla and Tesla is a big, almost surprise story 39 00:01:56,200 --> 00:01:59,520 Speaker 4: this Monday, the stock up twelve point four percent. It's 40 00:01:59,560 --> 00:02:02,000 Speaker 4: just a few tens percent away from its biggest jump 41 00:02:02,200 --> 00:02:04,840 Speaker 4: since January of twenty twenty two. Very similar gains to 42 00:02:04,880 --> 00:02:08,760 Speaker 4: what we saw April twenty fourth, the day after earnings, 43 00:02:09,000 --> 00:02:13,480 Speaker 4: the story prelim or tentative approval for full self driving 44 00:02:13,840 --> 00:02:17,560 Speaker 4: in China. That's according to a Bloomberg source. Two subsets 45 00:02:17,600 --> 00:02:21,680 Speaker 4: of that a partnership with Baidu on the InCAR mapping 46 00:02:21,880 --> 00:02:26,080 Speaker 4: specifically for the China market, and then also an agreement 47 00:02:26,200 --> 00:02:29,440 Speaker 4: over data and privacy or terms on data and privacy 48 00:02:29,600 --> 00:02:33,280 Speaker 4: that will allow it to move forward with FSD. Big 49 00:02:33,320 --> 00:02:36,120 Speaker 4: reaction in the market. Elon Musk himself went to China 50 00:02:36,160 --> 00:02:39,079 Speaker 4: over the weekend met with Premier Lee Chung, which was 51 00:02:39,120 --> 00:02:42,440 Speaker 4: itself a surprise seven days after he bailed on India. 52 00:02:42,720 --> 00:02:44,480 Speaker 4: And there's a lot to unpick in this one, but 53 00:02:44,560 --> 00:02:47,080 Speaker 4: it's a big move higher on the Tesla stock carract. 54 00:02:47,160 --> 00:02:49,000 Speaker 3: Yeah, we got to digame with none other than Craig 55 00:02:49,000 --> 00:02:52,760 Speaker 3: Shrudelle Bloomberg of course all over this story throughout the 56 00:02:52,840 --> 00:02:55,799 Speaker 3: day and indeed well previous night. It was a surprise, 57 00:02:56,200 --> 00:02:58,280 Speaker 3: and it looks as though the meeting bore fruit. 58 00:02:58,520 --> 00:02:59,919 Speaker 5: What exactly does this mean for. 59 00:02:59,880 --> 00:03:04,240 Speaker 3: The overall robotaxi autonomous vehicle kind of future that elm. 60 00:03:04,040 --> 00:03:08,720 Speaker 6: Pains, Yeah, we have to really separate out robotaxi and 61 00:03:08,760 --> 00:03:14,079 Speaker 6: what Tesla calls full self driving because that nomenclature has 62 00:03:14,280 --> 00:03:18,160 Speaker 6: been a misnomer. It is a driver assistance system. When 63 00:03:18,200 --> 00:03:21,200 Speaker 6: you activate it, you're in control of the vehicle, You're 64 00:03:21,639 --> 00:03:23,720 Speaker 6: responsible for supervising it. 65 00:03:23,800 --> 00:03:25,480 Speaker 7: And if you do get into. 66 00:03:25,320 --> 00:03:30,399 Speaker 6: A crash, Tesla has has shown a tendency to turn 67 00:03:30,440 --> 00:03:33,080 Speaker 6: around and blame you the driver. And so there's a 68 00:03:33,080 --> 00:03:37,520 Speaker 6: big difference between this system Tesla calls FSD and this 69 00:03:37,640 --> 00:03:41,240 Speaker 6: robotaxi that Musk has managed to get Wall Street excited about, 70 00:03:41,800 --> 00:03:44,120 Speaker 6: despite the fact that he's been talking about it as 71 00:03:44,120 --> 00:03:46,760 Speaker 6: a concept now, you know, since twenty sixteen at least. 72 00:03:47,400 --> 00:03:50,880 Speaker 6: But this is a big development in the sense that FSD, 73 00:03:51,080 --> 00:03:54,960 Speaker 6: for all its shortcomings and the progress that still needs 74 00:03:54,960 --> 00:03:58,440 Speaker 6: to be made for it to be you know, you know, 75 00:03:58,600 --> 00:04:02,840 Speaker 6: more widely used and accept it is bringing in incremental revenue, 76 00:04:03,040 --> 00:04:06,280 Speaker 6: but only in certain markets in the US. This is 77 00:04:06,480 --> 00:04:10,240 Speaker 6: something that Tesla charges eight thousand dollars for or ninety 78 00:04:10,320 --> 00:04:13,160 Speaker 6: nine dollars a month subscription. If it can you know, 79 00:04:13,320 --> 00:04:16,760 Speaker 6: make arrangements to get incremental revenue out of its customers 80 00:04:16,800 --> 00:04:20,960 Speaker 6: in China, it could boost its business there at a 81 00:04:21,000 --> 00:04:22,320 Speaker 6: time it could sorely use. 82 00:04:22,240 --> 00:04:25,480 Speaker 4: A lift Craig is best. I can tell you've been 83 00:04:25,880 --> 00:04:28,120 Speaker 4: logged on your Blue Mog terminal for like twenty seven 84 00:04:28,160 --> 00:04:32,560 Speaker 4: hours straight, coordinating our teams in China, the US, in Europe. 85 00:04:32,839 --> 00:04:35,200 Speaker 4: Just to explain the chronology of what happened, there were 86 00:04:35,279 --> 00:04:39,480 Speaker 4: multiple stages to arrive at what is a tentative approval 87 00:04:39,520 --> 00:04:40,080 Speaker 4: for FSD. 88 00:04:41,520 --> 00:04:44,200 Speaker 6: Yeah, I mean we heard rumblings that Musk was maybe 89 00:04:44,279 --> 00:04:47,360 Speaker 6: going to make this trip and you know, lo and behold, 90 00:04:48,000 --> 00:04:50,760 Speaker 6: you know, Sunday, my time here in London. You know, 91 00:04:50,800 --> 00:04:53,720 Speaker 6: we wake up to this idea that, yes, Musk has landed. 92 00:04:54,520 --> 00:04:57,320 Speaker 6: This was a surprise in the sense that Tesla you know, 93 00:04:57,400 --> 00:05:00,400 Speaker 6: doesn't even have a presence at this week's Beijing on show. 94 00:05:00,440 --> 00:05:02,720 Speaker 6: It's a show that got underway last week, but it 95 00:05:02,800 --> 00:05:06,120 Speaker 6: certainly was you know, a timely visit in the sense 96 00:05:06,160 --> 00:05:08,800 Speaker 6: that there are a lot of you know, government officials 97 00:05:08,839 --> 00:05:12,000 Speaker 6: in town for the show. You know, the auto industry 98 00:05:12,080 --> 00:05:14,920 Speaker 6: has absolutely been a bright spot for the Chinese economy, 99 00:05:15,320 --> 00:05:19,160 Speaker 6: and you know, China's relationship with Tesla has has been 100 00:05:19,240 --> 00:05:23,080 Speaker 6: really positive. This is you know, a success story, even 101 00:05:23,120 --> 00:05:25,960 Speaker 6: with the challenges that this company has had lately with 102 00:05:26,120 --> 00:05:28,160 Speaker 6: sort of continuing its momentum in. 103 00:05:28,120 --> 00:05:32,680 Speaker 3: China marketshare being eroded to none of them byd the 104 00:05:32,720 --> 00:05:36,440 Speaker 3: local competitor. Remind us of the deals that have had 105 00:05:36,480 --> 00:05:39,599 Speaker 3: to be done with Chinese players though ultimately to be 106 00:05:39,680 --> 00:05:41,640 Speaker 3: able to get the granting. 107 00:05:43,360 --> 00:05:46,160 Speaker 7: Yeah, the key one that that ED flagged is with Baidu. 108 00:05:46,320 --> 00:05:48,839 Speaker 6: And I think this is really interesting because you know, 109 00:05:48,880 --> 00:05:51,440 Speaker 6: Elon Musk has been on the record for many years 110 00:05:51,480 --> 00:05:54,600 Speaker 6: now saying that Tesla doesn't need maps, that maps are 111 00:05:54,680 --> 00:05:58,440 Speaker 6: crutch and you know, so this this is you know, 112 00:05:58,720 --> 00:06:00,799 Speaker 6: a U turn if you will, if you and forgive 113 00:06:00,800 --> 00:06:04,000 Speaker 6: a car pun uh. You know from this stance that 114 00:06:04,040 --> 00:06:07,560 Speaker 6: this is not necessary in China. However, in order for 115 00:06:07,640 --> 00:06:10,080 Speaker 6: you to offer these sorts of systems, you need to 116 00:06:10,120 --> 00:06:14,960 Speaker 6: have a partnership with a mapping and navigation company. And 117 00:06:15,040 --> 00:06:18,000 Speaker 6: it just so happens that the companies that are able 118 00:06:18,040 --> 00:06:20,839 Speaker 6: to offer those service services are all Chinese. 119 00:06:20,920 --> 00:06:24,080 Speaker 7: It's very reminiscent of how China sort of. 120 00:06:24,000 --> 00:06:28,560 Speaker 6: Controlled the battery uh, you know, electric vehicle battery market 121 00:06:28,880 --> 00:06:31,520 Speaker 6: in you know, the more infant years of of the 122 00:06:31,800 --> 00:06:35,160 Speaker 6: EV industry for China, and it really was successful and 123 00:06:35,480 --> 00:06:38,720 Speaker 6: helping sort of build up, you know, world dominating companies 124 00:06:38,760 --> 00:06:41,080 Speaker 6: like c at l UH. They're looking to try and 125 00:06:41,160 --> 00:06:44,520 Speaker 6: replicate that sort of uh, you know pattern with you know, 126 00:06:44,800 --> 00:06:48,000 Speaker 6: companies that play a critical role in these driver assistance 127 00:06:48,040 --> 00:06:51,039 Speaker 6: systems that may one day be able to support, you know, 128 00:06:51,440 --> 00:06:53,880 Speaker 6: fully taking the human driver out of the equation. 129 00:06:54,640 --> 00:06:57,599 Speaker 4: And what's so interesting is by do is itself quite 130 00:06:57,640 --> 00:07:01,440 Speaker 4: competent in the domain of at least developing autonomous technology. Look, 131 00:07:01,440 --> 00:07:03,839 Speaker 4: the stock's up twelve percent or more, on track for 132 00:07:03,839 --> 00:07:05,760 Speaker 4: his biggest jump since Janney twenty twenty two. 133 00:07:06,520 --> 00:07:07,520 Speaker 7: Perceived good news. 134 00:07:07,520 --> 00:07:09,800 Speaker 4: There is some more nuanced view in the markets about 135 00:07:09,800 --> 00:07:13,559 Speaker 4: what Musk's actually doing here, Craig, listen to this elon. 136 00:07:13,680 --> 00:07:15,880 Speaker 8: Musk's on an opportunity to go in there and say, look, 137 00:07:15,920 --> 00:07:19,000 Speaker 8: I want to do this because you've seen the clashes 138 00:07:19,040 --> 00:07:20,760 Speaker 8: that have been going on between the US and China. 139 00:07:20,920 --> 00:07:23,640 Speaker 8: He's trying to put a foot on both sides and say, look, 140 00:07:23,640 --> 00:07:26,760 Speaker 8: I've got this technology. And he had the premium brand 141 00:07:26,800 --> 00:07:28,480 Speaker 8: in China, and then all of a sudden, the evs 142 00:07:28,480 --> 00:07:31,200 Speaker 8: in China started to get less expensive and Tesla started 143 00:07:31,240 --> 00:07:31,760 Speaker 8: to lose Sharon. 144 00:07:31,800 --> 00:07:32,800 Speaker 7: He had to drop prices. 145 00:07:32,920 --> 00:07:34,600 Speaker 8: So to me, this is a way to say I'm 146 00:07:34,600 --> 00:07:38,239 Speaker 8: going to change up this math for myself, but also 147 00:07:38,680 --> 00:07:40,840 Speaker 8: if I can be successful in this, then maybe I 148 00:07:40,880 --> 00:07:42,280 Speaker 8: get to be the outlier. 149 00:07:43,960 --> 00:07:46,880 Speaker 4: That was Sarah Hunt, whose chief market strategies at Alpine 150 00:07:46,920 --> 00:07:50,160 Speaker 4: Saxon Woods earlier on Bloomberg Surveillance. We've got a very 151 00:07:50,160 --> 00:07:53,000 Speaker 4: strong piece on the terminal out now talking about how 152 00:07:53,040 --> 00:07:55,560 Speaker 4: we'll hold on. A week ago, Musk was supposed to 153 00:07:55,600 --> 00:07:59,520 Speaker 4: go to India and he bailed and he's gone straight 154 00:07:59,560 --> 00:08:02,920 Speaker 4: to China. That it shows us the power dynamics and 155 00:08:03,000 --> 00:08:06,960 Speaker 4: must skill in all of this, right, Craig in navigating geopolitics. 156 00:08:08,040 --> 00:08:11,480 Speaker 6: Yeah, I mean there's been mutual backscratching here between Elon 157 00:08:11,600 --> 00:08:14,720 Speaker 6: Musk and the CCP for for years now. Let's not 158 00:08:14,760 --> 00:08:17,600 Speaker 6: forget that Tesla was the first you know, international car 159 00:08:17,600 --> 00:08:20,800 Speaker 6: company or foreign car company to you know, be allowed 160 00:08:20,800 --> 00:08:24,560 Speaker 6: to operate in China without having to agree to a 161 00:08:24,640 --> 00:08:27,720 Speaker 6: joint venture with a local manufacturer. There was a huge 162 00:08:28,240 --> 00:08:31,040 Speaker 6: you know wind for Musk and something that he fought 163 00:08:31,040 --> 00:08:34,800 Speaker 6: for for years. And you know, the the construction of 164 00:08:35,000 --> 00:08:38,079 Speaker 6: the plant for Tesla and Shanghai was you know, record time. 165 00:08:38,240 --> 00:08:41,560 Speaker 6: It was extremely time lee in the sense that you know, 166 00:08:42,360 --> 00:08:46,120 Speaker 6: Musk was really ramping up the model three trying to 167 00:08:46,120 --> 00:08:48,520 Speaker 6: bring the model why out and they were able to 168 00:08:48,600 --> 00:08:51,640 Speaker 6: keep that plant running even during you know, the pandemic, 169 00:08:52,000 --> 00:08:54,439 Speaker 6: when you know other plants in China had a really 170 00:08:54,520 --> 00:08:58,360 Speaker 6: difficult time, you know, opening back up from the initial shutdowns. 171 00:08:58,400 --> 00:09:02,080 Speaker 6: And so you know, China has very much supported Tesla 172 00:09:02,200 --> 00:09:05,960 Speaker 6: when Tesla needed it most. And you know, we're seeing 173 00:09:06,120 --> 00:09:09,120 Speaker 6: US companies pull back a little bit from China, maybe 174 00:09:09,120 --> 00:09:11,600 Speaker 6: at least de risk a little. You know, Apple's a 175 00:09:11,600 --> 00:09:14,440 Speaker 6: good example of doing so. You know, by the way, 176 00:09:14,559 --> 00:09:18,040 Speaker 6: in India, I think people were looking at at a 177 00:09:18,040 --> 00:09:22,199 Speaker 6: potential investment by Tesla in India as a similar move. 178 00:09:22,760 --> 00:09:25,680 Speaker 6: And it's clear that Musk doesn't see you know, urgency 179 00:09:25,800 --> 00:09:26,200 Speaker 6: to do that. 180 00:09:27,320 --> 00:09:30,000 Speaker 4: Bloomber's cry too l thank you so much, terrific reporting. 181 00:09:30,000 --> 00:09:32,920 Speaker 4: There's another story very close to this one, Sticking with 182 00:09:33,040 --> 00:09:38,560 Speaker 4: autonomous driving, US auto safety regulators are investigating Ford's Blue 183 00:09:38,559 --> 00:09:42,280 Speaker 4: Cruise driver resistance feature after a pair of fatal crashes 184 00:09:42,600 --> 00:09:46,280 Speaker 4: involving the technology. The US National Highway Traffic Safety Administration's 185 00:09:46,559 --> 00:09:50,640 Speaker 4: Office of Defect Investigation opened the preliminary evaluation after it 186 00:09:50,679 --> 00:09:54,640 Speaker 4: received notice of two battery electric Mustang Maki SUVs that 187 00:09:54,760 --> 00:09:58,360 Speaker 4: collided with stationary vehicles. Will continue to track that one 188 00:09:58,520 --> 00:10:00,920 Speaker 4: stock down one point six percent car notable. 189 00:10:00,960 --> 00:10:03,000 Speaker 3: Meanwhile, coming up ed, Look, I've got to turn our 190 00:10:03,040 --> 00:10:06,280 Speaker 3: attention to another key stock on the move and paramount 191 00:10:06,440 --> 00:10:09,040 Speaker 3: is we understand the company weighing outstaying. 192 00:10:08,679 --> 00:10:09,520 Speaker 5: Its own CEO. 193 00:10:09,800 --> 00:10:13,520 Speaker 3: At least the board is ahead of earning tonight, but 194 00:10:13,640 --> 00:10:16,960 Speaker 3: also a notable potential purchase of this business. 195 00:10:17,360 --> 00:10:19,400 Speaker 5: We'll bring you more this boombow technology. 196 00:10:34,320 --> 00:10:36,040 Speaker 7: It's time for talking tech and first up. 197 00:10:36,080 --> 00:10:40,079 Speaker 4: The Supreme Court has rejected an appeal by Alon Musk 198 00:10:40,240 --> 00:10:44,319 Speaker 4: over his so called Twitter sitter, who oversees social media 199 00:10:44,400 --> 00:10:48,640 Speaker 4: posts about Tesla. The Justices, without comment, refused to hear 200 00:10:48,720 --> 00:10:51,719 Speaker 4: contentions from the Tesla CEO on the accord that he 201 00:10:51,760 --> 00:10:55,600 Speaker 4: assigned in twenty eighteen that he says now violates his 202 00:10:55,760 --> 00:10:59,400 Speaker 4: constitutional free speech rights. We'll track that one plus. Apple's 203 00:10:59,440 --> 00:11:02,800 Speaker 4: iPad has been hit by the EU's digital dominance crackdown. 204 00:11:03,040 --> 00:11:05,319 Speaker 4: The product's been added to a list of big tech 205 00:11:05,360 --> 00:11:08,280 Speaker 4: products and services hit by the new rules. The move 206 00:11:08,320 --> 00:11:11,520 Speaker 4: means Apple has six months to make sure its tablet 207 00:11:11,559 --> 00:11:15,920 Speaker 4: ecosystem complies with a raft of preemptive measures under the 208 00:11:15,920 --> 00:11:19,839 Speaker 4: EU's flagship Digital Markets Acts. And the Redstone family and 209 00:11:19,920 --> 00:11:23,720 Speaker 4: independent film producer David Ellison have both offered concessions to 210 00:11:23,760 --> 00:11:26,959 Speaker 4: make a possible change in control at Paramount Global more 211 00:11:27,000 --> 00:11:30,320 Speaker 4: appealing to the company's other investors. The Skydance bid was 212 00:11:30,320 --> 00:11:33,560 Speaker 4: described by multiple parties as a best and final offer 213 00:11:33,600 --> 00:11:37,000 Speaker 4: on Sunday. Paramount's board is still undecided about entering a 214 00:11:37,040 --> 00:11:40,000 Speaker 4: deal with Ellison, given the opposition from other investors. 215 00:11:40,080 --> 00:11:41,800 Speaker 3: Cara, Well, the board has got a lot to be 216 00:11:41,840 --> 00:11:43,719 Speaker 3: considering right now, we understand ed, and we want to 217 00:11:43,720 --> 00:11:45,320 Speaker 3: dig into all of it with the most Chris Peal 218 00:11:45,400 --> 00:11:47,560 Speaker 3: Mary who has been busy throughout the weekend, reporting in 219 00:11:47,600 --> 00:11:50,199 Speaker 3: this out, editing it out. And the board, we understand, 220 00:11:50,320 --> 00:11:53,920 Speaker 3: is also wondering whether it OSTs Bob Backish, the actual 221 00:11:53,960 --> 00:11:57,360 Speaker 3: current CEO of Paramount. Ahead of Well, we know earnings 222 00:11:57,400 --> 00:12:00,840 Speaker 3: are already coming out after the bell today amid this 223 00:12:00,920 --> 00:12:02,040 Speaker 3: sales process. 224 00:12:02,760 --> 00:12:05,959 Speaker 9: Yeah, the situation was described to me yesterday is being 225 00:12:06,080 --> 00:12:11,240 Speaker 9: very fluid, which I think is an understatement. We're recently 226 00:12:11,280 --> 00:12:16,160 Speaker 9: certain the company will announced earnings this afternoon, but beyond that, yes, 227 00:12:16,520 --> 00:12:20,240 Speaker 9: they're expected to say goodbye to their CEO, Bob Beckish, 228 00:12:20,320 --> 00:12:23,360 Speaker 9: replacing him on an interim basis with a management committee. 229 00:12:23,760 --> 00:12:26,560 Speaker 9: They're still negotiating to deal with Skydance. It would be 230 00:12:26,600 --> 00:12:28,640 Speaker 9: a change of control of a company and that was 231 00:12:28,640 --> 00:12:33,200 Speaker 9: the best and final offer yesterday, with David Ellison, the 232 00:12:33,240 --> 00:12:37,839 Speaker 9: owner of Guidance, helping his sort of contribution in terms 233 00:12:37,840 --> 00:12:40,439 Speaker 9: of buying Paramount stock at a premium to what it's 234 00:12:40,800 --> 00:12:45,480 Speaker 9: trading out today, sort of apes of shareholders. Redstones also 235 00:12:45,800 --> 00:12:50,760 Speaker 9: are apparently making concessions that would allow the non voting 236 00:12:50,760 --> 00:12:53,800 Speaker 9: shareholders to weigh in on a deal, which is something 237 00:12:53,840 --> 00:12:56,000 Speaker 9: that you know they don't have to do, but is 238 00:12:56,040 --> 00:12:59,120 Speaker 9: sort of best practice in securities law these days. 239 00:13:00,120 --> 00:13:01,040 Speaker 7: A whole lot going on. 240 00:13:03,200 --> 00:13:05,440 Speaker 4: You've outlined the sort of mechanics of the deal. I 241 00:13:05,440 --> 00:13:08,360 Speaker 4: think just like reminder audience the rationale on the why 242 00:13:08,800 --> 00:13:11,480 Speaker 4: why are we still spooking about Paramount and somebody buying 243 00:13:11,520 --> 00:13:12,439 Speaker 4: it or changing it? 244 00:13:12,640 --> 00:13:13,280 Speaker 7: What's going on? 245 00:13:14,360 --> 00:13:18,800 Speaker 9: Well, the traditional TV business is in trouble. People are 246 00:13:19,200 --> 00:13:22,920 Speaker 9: leaving for streaming services. Advertising has been in decline, although 247 00:13:23,360 --> 00:13:26,040 Speaker 9: they'll see a pickup at Paramount this quarter because of 248 00:13:26,040 --> 00:13:30,480 Speaker 9: the super Bowl, and the streaming business, which is the future, 249 00:13:30,760 --> 00:13:34,160 Speaker 9: is still losing money. The Paramount still although the losses 250 00:13:34,200 --> 00:13:37,839 Speaker 9: are coming down a bit are still going to be 251 00:13:37,880 --> 00:13:39,760 Speaker 9: in the one hundreds of millions of dollars. 252 00:13:39,440 --> 00:13:42,160 Speaker 7: And it's a question whether they'll ever stop. 253 00:13:42,720 --> 00:13:45,880 Speaker 9: And so when your two main businesses like that, the 254 00:13:45,880 --> 00:13:48,920 Speaker 9: movie business has been unprofitable last year, it's a challenge 255 00:13:48,920 --> 00:13:51,719 Speaker 9: to get people back to theaters. So pretty much every 256 00:13:51,800 --> 00:13:55,160 Speaker 9: leg of their business is in some sort of peril 257 00:13:55,600 --> 00:13:57,720 Speaker 9: and that's why this sock is down and why they're 258 00:13:57,720 --> 00:14:00,560 Speaker 9: considering options. 259 00:14:02,080 --> 00:14:05,080 Speaker 4: All right, Bluebots, Chris Pam Mary terrific, really appreciate having 260 00:14:05,120 --> 00:14:17,600 Speaker 4: you out down from La. 261 00:14:14,040 --> 00:14:17,600 Speaker 3: So fine out with earnings that well look strong today, 262 00:14:17,720 --> 00:14:20,080 Speaker 3: but the forecast is what people are worrying about. The 263 00:14:20,120 --> 00:14:23,240 Speaker 3: shares falling after the fintech company provided second quarter nuance 264 00:14:23,280 --> 00:14:26,120 Speaker 3: here with adjusted net revenue and adjusted ebit DA that 265 00:14:26,440 --> 00:14:29,720 Speaker 3: perhaps fell short of some consensussessments out there. Want to 266 00:14:29,760 --> 00:14:32,520 Speaker 3: dig into that nuance with SOFI CEO Anthony Noto. 267 00:14:32,640 --> 00:14:34,040 Speaker 5: Thank you for joining us, Anthony, And. 268 00:14:34,200 --> 00:14:36,160 Speaker 3: Look, we've got to focus on the fact that your 269 00:14:36,160 --> 00:14:37,640 Speaker 3: full year guidance was raised. 270 00:14:37,880 --> 00:14:39,240 Speaker 5: You're feeling positive. 271 00:14:38,840 --> 00:14:40,560 Speaker 3: About the way in which are steering the company. You 272 00:14:40,560 --> 00:14:43,560 Speaker 3: say you're in an inflection point, But why the second 273 00:14:43,680 --> 00:14:46,000 Speaker 3: quarter being below expectations? 274 00:14:46,040 --> 00:14:47,840 Speaker 5: What can you add to what you're seeing here right here, 275 00:14:47,920 --> 00:14:48,360 Speaker 5: right now. 276 00:14:49,400 --> 00:14:52,640 Speaker 10: We had a great first quarter, as we reported twenty 277 00:14:52,640 --> 00:14:54,920 Speaker 10: six percent year of year at growth, and it's in 278 00:14:54,960 --> 00:14:57,240 Speaker 10: line with the transformation that we talked about, which is 279 00:14:57,240 --> 00:15:00,520 Speaker 10: our combined tech platform business and our financial service business 280 00:15:00,880 --> 00:15:03,880 Speaker 10: would grow fifty percent or more. It grew fifty four 281 00:15:03,920 --> 00:15:07,000 Speaker 10: percent year of year, and that combined with flat revenue 282 00:15:07,000 --> 00:15:08,640 Speaker 10: for lending, and that was part of the plan, and 283 00:15:08,720 --> 00:15:13,680 Speaker 10: we had our second consecutive quarter of gap positive EPs. 284 00:15:13,920 --> 00:15:16,720 Speaker 10: In addition to growing our book value on a tangible 285 00:15:16,760 --> 00:15:20,760 Speaker 10: basis per share by about sixteen percent sequentially, we also 286 00:15:20,840 --> 00:15:24,000 Speaker 10: guided the full year, as you mentioned above, not just 287 00:15:24,120 --> 00:15:27,600 Speaker 10: our beat, but also above our prior guidance, so that's 288 00:15:27,640 --> 00:15:28,960 Speaker 10: a positive overall outlook. 289 00:15:29,200 --> 00:15:31,760 Speaker 1: We had not given Q two guidance before. 290 00:15:31,840 --> 00:15:34,200 Speaker 10: We typically give the full year and then the current 291 00:15:34,240 --> 00:15:36,320 Speaker 10: quarter that we're in, so at the end of twenty 292 00:15:36,360 --> 00:15:39,200 Speaker 10: four we gave guidance for the full year and Q one, 293 00:15:39,320 --> 00:15:43,200 Speaker 10: not Q two. The analysts are using their own estimates 294 00:15:43,200 --> 00:15:45,880 Speaker 10: for that, and because we're taking a conservative view on lending, 295 00:15:46,240 --> 00:15:49,080 Speaker 10: lending will be down sequentially in Q two, while our 296 00:15:49,120 --> 00:15:52,680 Speaker 10: tech platform revenue and our financial services revenue will continue 297 00:15:52,680 --> 00:15:55,560 Speaker 10: to have strong year year growth, but also strong sequential 298 00:15:55,600 --> 00:15:58,920 Speaker 10: growth and continue profitability as well. So we feel really 299 00:15:58,960 --> 00:16:01,480 Speaker 10: great about the business transformation we've made over the last 300 00:16:01,520 --> 00:16:04,320 Speaker 10: six years. The fact that we can grow revenue twenty 301 00:16:04,360 --> 00:16:07,360 Speaker 10: six percent on flat lending revenue is a real testament 302 00:16:07,560 --> 00:16:08,960 Speaker 10: to the diversity of our business. 303 00:16:10,280 --> 00:16:12,440 Speaker 5: Hey, Darison, you can't feel great about the share reaction. 304 00:16:13,840 --> 00:16:16,400 Speaker 10: You know, any given day, it's hard to predict what's 305 00:16:16,440 --> 00:16:18,880 Speaker 10: going to happen with the shriff. But what I can 306 00:16:18,920 --> 00:16:21,720 Speaker 10: say is the business is doing incredibly well. The strategy 307 00:16:21,840 --> 00:16:25,400 Speaker 10: is working. We're really happy about the trend we do. 308 00:16:25,880 --> 00:16:27,920 Speaker 10: We are taking a conservative you on lending, but that's 309 00:16:28,320 --> 00:16:31,440 Speaker 10: given how uncertain the environment is. If the environment becomes 310 00:16:31,440 --> 00:16:34,120 Speaker 10: more stable, we'll be more aggressive on lending, but right 311 00:16:34,160 --> 00:16:36,440 Speaker 10: now there's no need to and the environment remains as 312 00:16:36,560 --> 00:16:38,560 Speaker 10: uncertain as it has for the last six months. 313 00:16:38,560 --> 00:16:42,400 Speaker 4: On rates, mister Noto, good morning, it's ed in San Francisco. 314 00:16:42,680 --> 00:16:44,520 Speaker 4: A lot of the questions I got from our audience 315 00:16:44,520 --> 00:16:48,160 Speaker 4: for you were about the capital you raise and your 316 00:16:48,200 --> 00:16:51,840 Speaker 4: strategy going forward. There was convertible in one queue, a 317 00:16:51,880 --> 00:16:55,040 Speaker 4: lot of interest in that. I actually am not clear why, 318 00:16:55,400 --> 00:16:57,840 Speaker 4: but the people want to know, So that's the question. 319 00:16:58,600 --> 00:17:01,520 Speaker 10: Yeah, I think people misunder stand the share count. First, 320 00:17:01,560 --> 00:17:04,520 Speaker 10: we did two things in Q one. First, we issued 321 00:17:04,520 --> 00:17:07,840 Speaker 10: a convertible note at one point two five percent interest 322 00:17:08,080 --> 00:17:12,320 Speaker 10: that allowed us to redeem a preferred security that we're 323 00:17:12,359 --> 00:17:14,720 Speaker 10: paying twelve and a half percent interest on. So that 324 00:17:14,800 --> 00:17:16,800 Speaker 10: is going to provide an interest savings for us, and 325 00:17:16,800 --> 00:17:20,520 Speaker 10: we've already noticed all of the holders of that preferred 326 00:17:20,920 --> 00:17:24,199 Speaker 10: instrument and so that's being redeemed sooner than expected. We 327 00:17:24,400 --> 00:17:27,480 Speaker 10: also bought back an existing convert that was trading well 328 00:17:27,520 --> 00:17:29,919 Speaker 10: below its face value, and that was a creative to 329 00:17:29,960 --> 00:17:33,359 Speaker 10: book value and it was basically neutral on tangible book 330 00:17:33,440 --> 00:17:36,720 Speaker 10: value per share. So there's some perception that it was diluted. 331 00:17:36,840 --> 00:17:39,399 Speaker 10: It's not dilutied on a tangible book value per share. 332 00:17:40,119 --> 00:17:42,720 Speaker 10: And I think there's just a misunderstanding on what the 333 00:17:42,800 --> 00:17:45,399 Speaker 10: total ending share count will be in the future. 334 00:17:46,880 --> 00:17:49,560 Speaker 4: My colleague, a Bloomberg intelligence Herman Chan has a very 335 00:17:49,600 --> 00:17:52,560 Speaker 4: clear thesis for you guys. You have a brilliant app, 336 00:17:52,840 --> 00:17:57,560 Speaker 4: strong user interface, one stop shop, and you're targeting young professionals. 337 00:17:57,560 --> 00:17:58,679 Speaker 7: That's what they think. 338 00:17:59,080 --> 00:18:01,800 Speaker 4: But the story really is this higher interest rates for 339 00:18:01,880 --> 00:18:06,399 Speaker 4: longer environment narrative. How does that thesis work in that 340 00:18:06,480 --> 00:18:07,280 Speaker 4: rate environment? 341 00:18:07,320 --> 00:18:10,119 Speaker 10: Anthony, Yeah, well, first of all, your colleagues said it 342 00:18:10,240 --> 00:18:12,320 Speaker 10: very well, and so we should consider having them being 343 00:18:12,359 --> 00:18:15,240 Speaker 10: one of our spokespeople. But I'd say is higher for 344 00:18:15,359 --> 00:18:18,920 Speaker 10: longer is going to create challenges for financial institutions. 345 00:18:19,200 --> 00:18:20,719 Speaker 1: We are very well capitalized. 346 00:18:20,760 --> 00:18:24,160 Speaker 10: We have a seventeen point one percent risk based capital ratio, 347 00:18:24,720 --> 00:18:27,560 Speaker 10: so we have ample cushion or capital ratio relative to 348 00:18:27,600 --> 00:18:30,840 Speaker 10: where we have to operate from a regulatory standpoint, and 349 00:18:30,880 --> 00:18:33,360 Speaker 10: we have plenty of liquidity. That said, as we saw 350 00:18:33,480 --> 00:18:37,160 Speaker 10: today another regional bank was very challenged. We're also benefiting 351 00:18:37,240 --> 00:18:39,960 Speaker 10: from really strong deposit growth. We had our record growth 352 00:18:39,960 --> 00:18:43,720 Speaker 10: and deposits three billion dollars of new deposits, and ninety 353 00:18:43,760 --> 00:18:46,640 Speaker 10: percent of our deposits are from direct deposit customers, which 354 00:18:46,680 --> 00:18:49,720 Speaker 10: means we're their primary account and it's very very sticky. 355 00:18:50,440 --> 00:18:54,000 Speaker 10: But higher for longer we'll put stress on other people's 356 00:18:54,000 --> 00:18:57,400 Speaker 10: balance sheets if they're not hedging appropriately the way we do. 357 00:18:57,480 --> 00:19:00,040 Speaker 10: We hedge our loans once we grant them, we're we 358 00:19:00,040 --> 00:19:03,280 Speaker 10: don't have that interest rate exposure. We can also match 359 00:19:03,359 --> 00:19:06,040 Speaker 10: what we're giving in as an apy to our SOFI 360 00:19:06,119 --> 00:19:08,840 Speaker 10: money members against the loans that we're offering in the 361 00:19:08,920 --> 00:19:11,320 Speaker 10: rates that they have to maintain a very high NIM 362 00:19:11,400 --> 00:19:13,959 Speaker 10: and we've been able to do that consistently. In addition 363 00:19:14,000 --> 00:19:16,239 Speaker 10: to that, with also the tech platform business, which is 364 00:19:16,240 --> 00:19:19,160 Speaker 10: not tied to interest rates. And then in the financial 365 00:19:19,160 --> 00:19:23,000 Speaker 10: services business, we have the invest platform that's growing very nicely, 366 00:19:23,280 --> 00:19:26,040 Speaker 10: good AUM growth, good member growth, and another source of 367 00:19:26,160 --> 00:19:27,200 Speaker 10: verisfied revenue for. 368 00:19:27,240 --> 00:19:28,960 Speaker 5: US where technology show. 369 00:19:29,040 --> 00:19:32,000 Speaker 3: We want to go into the specifics of your technology, Anthony, 370 00:19:32,200 --> 00:19:34,520 Speaker 3: but I want to bring our audience that matcro flavor 371 00:19:34,560 --> 00:19:38,639 Speaker 3: that you so brilliantly give, because why are you more 372 00:19:38,720 --> 00:19:41,360 Speaker 3: cautious on the US economy? Why are you seeing five 373 00:19:41,400 --> 00:19:44,920 Speaker 3: percent excess of unemployment? Why are you seeing these interest 374 00:19:45,000 --> 00:19:47,840 Speaker 3: rate cuts that you've now basically halved in your expectations 375 00:19:47,840 --> 00:19:49,240 Speaker 3: for twenty twenty four. 376 00:19:49,520 --> 00:19:52,240 Speaker 10: Yeah, our balance sheet has grown quite meaningfully. It's about 377 00:19:52,240 --> 00:19:54,280 Speaker 10: a thirty billion dollar bounce sheet now. So as we 378 00:19:54,359 --> 00:19:57,440 Speaker 10: came into twenty twenty four, we had a choice. Could 379 00:19:57,440 --> 00:20:00,200 Speaker 10: we come up with our own expectations for twenty twenty 380 00:20:00,680 --> 00:20:04,200 Speaker 10: could we use consensus expectation. Let's just take up planning 381 00:20:04,280 --> 00:20:07,639 Speaker 10: stance that's really conservative, and the planning stance that we 382 00:20:07,680 --> 00:20:10,080 Speaker 10: took then was that there would only be four rate cuts. 383 00:20:10,359 --> 00:20:13,000 Speaker 10: The market was factoring in six rate cuts at the time. 384 00:20:13,359 --> 00:20:15,720 Speaker 10: We also took up planning stance on unemployment that would 385 00:20:15,760 --> 00:20:18,320 Speaker 10: be more than five percent, the market was well below that, 386 00:20:18,680 --> 00:20:21,360 Speaker 10: and we also took a stance on GDP contraction. 387 00:20:20,960 --> 00:20:21,800 Speaker 1: That was modest. 388 00:20:22,160 --> 00:20:25,040 Speaker 10: Well, here we sit today three months later, and the 389 00:20:25,080 --> 00:20:27,560 Speaker 10: market's only factoring in one to two rate cuts. So 390 00:20:27,600 --> 00:20:30,600 Speaker 10: I'm really thankful we took a conservative stance going into 391 00:20:30,600 --> 00:20:32,480 Speaker 10: the air, and I'm really thankful we still have a 392 00:20:32,480 --> 00:20:35,800 Speaker 10: conservative stance. I couldn't feel better about the underlying trends 393 00:20:35,800 --> 00:20:38,560 Speaker 10: of our strategy and execution of our business. But I 394 00:20:38,600 --> 00:20:41,879 Speaker 10: don't think we're an environment where anyone has a really strong, 395 00:20:42,000 --> 00:20:44,800 Speaker 10: high conviction level on where rates will be. There's still 396 00:20:44,840 --> 00:20:47,359 Speaker 10: a debate whether it be any rate cuts whatsoever. So 397 00:20:47,400 --> 00:20:50,520 Speaker 10: we just can't put the business at risk hoping that 398 00:20:50,560 --> 00:20:51,440 Speaker 10: we can figure it out. 399 00:20:51,600 --> 00:20:54,240 Speaker 1: So we're going to a conservative point of view. 400 00:20:54,880 --> 00:20:58,000 Speaker 4: With short time, Anthony, you're moving away from this kind 401 00:20:58,040 --> 00:21:01,200 Speaker 4: of trademark student loans and refi business. 402 00:21:01,640 --> 00:21:05,560 Speaker 10: Why, Well, the strategy when I came in twenty eighteen 403 00:21:05,680 --> 00:21:08,359 Speaker 10: was to create a one stop shop for all your 404 00:21:08,400 --> 00:21:11,399 Speaker 10: financial services needs. There was no one providing all the 405 00:21:11,400 --> 00:21:13,760 Speaker 10: products that you need for the big moments in your 406 00:21:13,800 --> 00:21:16,159 Speaker 10: life and all the days in between. So we offer 407 00:21:16,240 --> 00:21:20,359 Speaker 10: home loans, student loans, personal loans, in school loans, checking 408 00:21:20,359 --> 00:21:24,639 Speaker 10: and savings called SOFI Money Investing, Insurance, small meat, and 409 00:21:24,680 --> 00:21:28,879 Speaker 10: business loan lead generation in addition to the tech platform business. 410 00:21:28,880 --> 00:21:30,960 Speaker 10: So the strategy was always about building a one stop 411 00:21:30,960 --> 00:21:34,320 Speaker 10: shop for all your financial services needs, and that's actually 412 00:21:34,359 --> 00:21:37,560 Speaker 10: resulted in diversified business that allows us to make choices 413 00:21:37,760 --> 00:21:39,720 Speaker 10: on what we grow versus what we take. 414 00:21:39,760 --> 00:21:40,760 Speaker 1: A conservative view. 415 00:21:40,640 --> 00:21:45,720 Speaker 4: On SOFI CEO Anthony Notto, Great catch up, greats heavy 416 00:21:45,800 --> 00:21:57,120 Speaker 4: back on the program. Thank you, Welcome back to Bloomberg Technology. 417 00:21:57,160 --> 00:21:58,399 Speaker 4: I love Low in San Francisco. 418 00:21:58,440 --> 00:21:59,600 Speaker 5: I'm Caroline hid in New York. 419 00:22:00,000 --> 00:22:02,240 Speaker 3: A bit of breaking news that was just occurring regarding 420 00:22:02,680 --> 00:22:03,240 Speaker 3: we work. 421 00:22:03,520 --> 00:22:05,840 Speaker 5: We understand it has managed to kind. 422 00:22:05,680 --> 00:22:08,760 Speaker 3: Of bankruptcy exit deal that actually leaves. 423 00:22:08,520 --> 00:22:11,440 Speaker 5: Out the founder, Adam Newman. Now we understand we work. 424 00:22:11,480 --> 00:22:15,120 Speaker 3: Of course, they've gotten all important meeting today in Pril 425 00:22:15,160 --> 00:22:15,840 Speaker 3: twenty ninth. 426 00:22:16,040 --> 00:22:18,280 Speaker 5: They're cutting an exit deal leaves out Adam Newman. 427 00:22:18,320 --> 00:22:22,520 Speaker 3: Newman himself is objecting saying the deal wrongly hands Hides 428 00:22:22,640 --> 00:22:26,080 Speaker 3: a sale plan and Newman has offered to buy we Work, 429 00:22:26,160 --> 00:22:29,119 Speaker 3: but it was rejected in favor of a creditor deal. 430 00:22:29,240 --> 00:22:30,880 Speaker 5: Now, remember there's plenty. 431 00:22:30,440 --> 00:22:33,119 Speaker 3: Of analysis that has gone into the bankruptcy of we 432 00:22:33,240 --> 00:22:35,560 Speaker 3: Work more broadly, and indeed the fact. 433 00:22:35,320 --> 00:22:37,879 Speaker 5: That they've basically got a four billion dollar in secure. 434 00:22:37,600 --> 00:22:41,400 Speaker 3: Debt that is a key issue limiting issue here more broadly. 435 00:22:41,480 --> 00:22:43,520 Speaker 3: But it looks as though a deal has been cut, 436 00:22:43,800 --> 00:22:45,760 Speaker 3: but Adam Newman is not involved. 437 00:22:45,800 --> 00:22:47,840 Speaker 5: Let's just get a broader market check for you at 438 00:22:47,840 --> 00:22:49,000 Speaker 5: the moment, because. 439 00:22:48,680 --> 00:22:51,479 Speaker 3: Well, markets have been tentatively higher and aw's that one 440 00:22:51,520 --> 00:22:53,640 Speaker 3: hundred is still clinging on to gain some twenty seven 441 00:22:53,640 --> 00:22:55,119 Speaker 3: points all important. 442 00:22:54,720 --> 00:22:56,320 Speaker 5: Week the fared we got job Stata. 443 00:22:56,359 --> 00:22:57,880 Speaker 3: At the end of the week, the dollar is still 444 00:22:57,920 --> 00:23:00,159 Speaker 3: lower US as Japanese and that was a big market move. 445 00:23:00,200 --> 00:23:03,200 Speaker 5: From a macro perspective, is maybe we see some boj 446 00:23:03,400 --> 00:23:04,600 Speaker 5: intervention that has. 447 00:23:04,440 --> 00:23:07,760 Speaker 3: So far remained silent from Japan, and it is indeed 448 00:23:07,960 --> 00:23:10,280 Speaker 3: some muted amid holiday trading session. 449 00:23:10,280 --> 00:23:11,560 Speaker 5: But I'm looking at bitcoin. 450 00:23:11,280 --> 00:23:12,920 Speaker 3: Just off by a percentage point as a US dollar 451 00:23:12,920 --> 00:23:14,320 Speaker 3: remains higher versus bitcoin. 452 00:23:14,480 --> 00:23:15,200 Speaker 5: That's how to look at. 453 00:23:15,119 --> 00:23:17,600 Speaker 3: What's happening on individual names. I want to shine like 454 00:23:17,640 --> 00:23:19,960 Speaker 3: what happened in Europe because we've just finished up trading 455 00:23:20,000 --> 00:23:23,119 Speaker 3: in Europe and at US up eighteen percent. And this 456 00:23:23,160 --> 00:23:24,960 Speaker 3: is another kind of beleagued company, but this one is 457 00:23:24,960 --> 00:23:27,639 Speaker 3: a French government potentially stepping in with a bid for 458 00:23:27,680 --> 00:23:31,359 Speaker 3: the IT company's most strategically important businesses. That's after it's 459 00:23:31,359 --> 00:23:32,840 Speaker 3: been forced to raise the amount of cash it needs 460 00:23:32,880 --> 00:23:35,800 Speaker 3: to avoid insolvency itself. It's up more than eighteen percent. Sees, 461 00:23:35,880 --> 00:23:38,080 Speaker 3: I shine a light on what's happening with this particular 462 00:23:38,440 --> 00:23:42,120 Speaker 3: well overall company, the two firms we could see when 463 00:23:42,119 --> 00:23:46,440 Speaker 3: it comes to all important views on the coming together 464 00:23:46,480 --> 00:23:50,160 Speaker 3: of SES and intelsat this is we once again think 465 00:23:50,200 --> 00:23:53,399 Speaker 3: about a mergering these satellite businesses. The deal failed in 466 00:23:53,440 --> 00:23:56,160 Speaker 3: previous attempts to combine, but now we see that potentially 467 00:23:56,240 --> 00:23:59,040 Speaker 3: they could be seeing an SES and INTEL revival of 468 00:23:59,080 --> 00:24:01,840 Speaker 3: discussions with Dan some ten percent in that publicly traded 469 00:24:01,840 --> 00:24:04,880 Speaker 3: part of the business. Remember Intersect is private micro Strategy 470 00:24:04,920 --> 00:24:07,440 Speaker 3: up more than a percentage point. Well, he's doing all right, 471 00:24:07,640 --> 00:24:09,639 Speaker 3: Old Michael Saylor on the fact that he's been selling 472 00:24:09,640 --> 00:24:11,879 Speaker 3: some shares in the business after it's done particularly well 473 00:24:12,240 --> 00:24:15,400 Speaker 3: amid being sort of a proxy for bitcoin two hundred 474 00:24:15,400 --> 00:24:18,040 Speaker 3: and ninety six. The earnings come after the bell. But 475 00:24:18,080 --> 00:24:20,160 Speaker 3: we want to talk more about crypto, and we want 476 00:24:20,200 --> 00:24:21,800 Speaker 3: to talk more about what's happening in Hong Kong. But 477 00:24:21,880 --> 00:24:25,080 Speaker 3: it's set to list a batch of cryptocurrency ETFs, and 478 00:24:25,160 --> 00:24:28,080 Speaker 3: some China's top asset managers are in final lego preparations 479 00:24:28,160 --> 00:24:32,280 Speaker 3: for Spot bitcoin and EETF to begin trading tomorrow. Loomberg's 480 00:24:32,359 --> 00:24:34,840 Speaker 3: Katie Greifeld joins US for more. You're probably pretty bored 481 00:24:35,040 --> 00:24:38,080 Speaker 3: about Spot ETF and what's interesting with Hong Kong is 482 00:24:38,240 --> 00:24:41,320 Speaker 3: it looks as though we're also seeing Australia analyze the options. 483 00:24:41,640 --> 00:24:43,640 Speaker 5: This is a theme since the US gone on board. 484 00:24:43,720 --> 00:24:46,679 Speaker 11: It's definitely a theme, this sort of expanding access to 485 00:24:46,800 --> 00:24:49,480 Speaker 11: spark bitcoin ETFs. And it's interesting you take a look 486 00:24:49,480 --> 00:24:52,320 Speaker 11: at Hong Kong sort of following the US blueprint in 487 00:24:52,359 --> 00:24:54,800 Speaker 11: that we have a few war breaking out even before 488 00:24:54,840 --> 00:24:57,159 Speaker 11: the funds have actually launched. Their due to launch on 489 00:24:57,280 --> 00:25:01,160 Speaker 11: April thirtieth tomorrow, but we're talking about trio of issuers here. 490 00:25:01,160 --> 00:25:03,879 Speaker 11: We have China AMC, then we have Harvest and Bossera. 491 00:25:04,240 --> 00:25:06,800 Speaker 11: So you had China AMC and Harvest announced their fees, 492 00:25:06,840 --> 00:25:09,480 Speaker 11: and just in the past few days Bossara actually came 493 00:25:09,520 --> 00:25:12,119 Speaker 11: out and waved their fee. They were going their eventual 494 00:25:12,160 --> 00:25:14,359 Speaker 11: fee is going to be sixty basis points. They're waiving 495 00:25:14,440 --> 00:25:16,919 Speaker 11: that for the first four months or so. 496 00:25:17,080 --> 00:25:18,200 Speaker 5: You compare that to Harvest. 497 00:25:18,600 --> 00:25:20,639 Speaker 11: They're also going ahead with a fee waiver, which is 498 00:25:20,640 --> 00:25:23,680 Speaker 11: also very popular in the US. After six months, they're 499 00:25:23,720 --> 00:25:27,080 Speaker 11: going to charge point three percent. So that's your low 500 00:25:27,080 --> 00:25:29,040 Speaker 11: water mark there. And then China AMC it's on the 501 00:25:29,080 --> 00:25:32,119 Speaker 11: high side. It's charging ninety nine basis points, so a 502 00:25:32,119 --> 00:25:34,959 Speaker 11: bit expensive compared to its trio. 503 00:25:35,720 --> 00:25:37,360 Speaker 7: It sort of peers there, but. 504 00:25:37,359 --> 00:25:38,960 Speaker 11: We'll have to see what we saw in the US 505 00:25:39,000 --> 00:25:42,040 Speaker 11: market was even though you had those fees cut into 506 00:25:42,119 --> 00:25:44,520 Speaker 11: the launch. After the launch too, you had a lot 507 00:25:44,520 --> 00:25:45,560 Speaker 11: of reductions as well. 508 00:25:46,720 --> 00:25:49,640 Speaker 4: On this program with Metenology, we love covering cities around 509 00:25:49,680 --> 00:25:54,080 Speaker 4: the world. Hong Kong is clearly considering this important. But 510 00:25:54,200 --> 00:25:58,040 Speaker 4: in actuality, it's a small market. You know, give us 511 00:25:58,119 --> 00:25:58,640 Speaker 4: the numbers. 512 00:25:59,200 --> 00:26:02,240 Speaker 11: It is a that is a important perspective to get 513 00:26:02,240 --> 00:26:03,960 Speaker 11: in there. When you take a look at Hong Kong's 514 00:26:04,000 --> 00:26:08,359 Speaker 11: total ETF market, the total AUM is about forty seven 515 00:26:08,800 --> 00:26:11,440 Speaker 11: billion dollars. Just for some context, you take a look 516 00:26:11,440 --> 00:26:14,520 Speaker 11: at the suite of US spot bitcoin ETFs, they're already 517 00:26:14,920 --> 00:26:15,399 Speaker 11: above that. 518 00:26:15,480 --> 00:26:16,680 Speaker 5: When you put together those. 519 00:26:16,520 --> 00:26:19,520 Speaker 11: Dozen are so fun So on the world scale, we're 520 00:26:19,520 --> 00:26:21,439 Speaker 11: talking about a very small market here. When you think 521 00:26:21,440 --> 00:26:24,560 Speaker 11: about the impact to bitcoin, of course, probably not too 522 00:26:24,640 --> 00:26:28,400 Speaker 11: meaningful from an influence perspective, but when it comes to sentiment, 523 00:26:28,440 --> 00:26:32,960 Speaker 11: which is what powers bitcoin, it could be meaningful the most. 524 00:26:33,040 --> 00:26:35,399 Speaker 4: Katie Grofel, we love having you on the show with 525 00:26:35,480 --> 00:26:37,960 Speaker 4: your knowledge of spot bitcoin ETF around the world. 526 00:26:38,000 --> 00:26:38,720 Speaker 7: Thank you very much. 527 00:26:38,880 --> 00:26:42,000 Speaker 4: Let's go from crypto back to entertainment with paramounts board 528 00:26:42,080 --> 00:26:46,000 Speaker 4: considering removing CEO Bob Backish, I want to get the 529 00:26:46,040 --> 00:26:49,320 Speaker 4: take in the analysis of Bloomberg Intelligences Geeta Ang and 530 00:26:49,400 --> 00:26:51,760 Speaker 4: Athan and I'm looking at stock right we're up almost 531 00:26:51,760 --> 00:26:55,399 Speaker 4: five percent. I don't know if that's because of the 532 00:26:55,520 --> 00:26:58,960 Speaker 4: news or reports that Backish might be going or that 533 00:26:59,000 --> 00:27:02,399 Speaker 4: the deal as it is is moving along. What do 534 00:27:02,440 --> 00:27:06,320 Speaker 4: you think the catalyst is, Gita. 535 00:27:05,560 --> 00:27:08,240 Speaker 2: I think ed the catalyst for the movement this morning 536 00:27:08,560 --> 00:27:13,119 Speaker 2: is really just based on the sweetening of the Ellison deals. 537 00:27:13,160 --> 00:27:16,679 Speaker 2: So two things happening here. One is that David Ellison, 538 00:27:16,680 --> 00:27:20,240 Speaker 2: who owns sky Dance Media, is now proposing to buy 539 00:27:20,320 --> 00:27:23,200 Speaker 2: a block of shares at a premium. Is kind of 540 00:27:23,240 --> 00:27:27,360 Speaker 2: making it more palatable for investors. And I think finally 541 00:27:27,480 --> 00:27:29,879 Speaker 2: Sharry Redstone, Sharry Redstone is the one who kind of 542 00:27:29,920 --> 00:27:33,680 Speaker 2: calls all the shots at paramount. She's finally open for 543 00:27:33,720 --> 00:27:36,960 Speaker 2: what is this majority of minority votes, So she is 544 00:27:37,040 --> 00:27:40,200 Speaker 2: letting the non voting shareholders have a say in whether 545 00:27:40,240 --> 00:27:43,280 Speaker 2: this transaction should go through. And that is really critical 546 00:27:43,320 --> 00:27:47,120 Speaker 2: because there has been so much backlash against the sky 547 00:27:47,200 --> 00:27:50,480 Speaker 2: Dance deal because most of these shareholders, the non voting shareholders, 548 00:27:50,520 --> 00:27:52,840 Speaker 2: have basically said that it's going to dilute them and 549 00:27:52,880 --> 00:27:55,719 Speaker 2: it really only benefits, you know, the sky Dance And 550 00:27:55,800 --> 00:27:57,679 Speaker 2: of course Cherry Redstone, one. 551 00:27:57,560 --> 00:28:01,320 Speaker 3: Of those key investors from a non vote perspective, have 552 00:28:01,400 --> 00:28:05,080 Speaker 3: been Arial Investments and John Rodgers and Melodie Hobson had 553 00:28:05,080 --> 00:28:08,000 Speaker 3: been putting out letters saying, look, we are worried about 554 00:28:08,200 --> 00:28:11,040 Speaker 3: the way in which this is being executed, the premium 555 00:28:11,080 --> 00:28:14,639 Speaker 3: and then the merge of what's happening with skydowns, but 556 00:28:14,720 --> 00:28:18,560 Speaker 3: also they were troubled by the looming departures of four 557 00:28:18,680 --> 00:28:22,160 Speaker 3: paramount board members. Is all of this looking a little 558 00:28:22,160 --> 00:28:24,720 Speaker 3: bit murky from a governance perspective if you're also seeing 559 00:28:24,760 --> 00:28:27,199 Speaker 3: a board and potentially getting rid of the CEO and 560 00:28:27,200 --> 00:28:30,320 Speaker 3: putting executives in charge while this transition sort of occurs. 561 00:28:31,240 --> 00:28:34,320 Speaker 2: Yeah, I mean it's highly, highly unusual, Caroline. We've never 562 00:28:34,400 --> 00:28:37,440 Speaker 2: seen something quite like this before in the media landscape. 563 00:28:37,440 --> 00:28:40,520 Speaker 2: So you have those four, you know, board members who 564 00:28:40,600 --> 00:28:43,760 Speaker 2: kind of suddenly left, and then now you have Bob Bakish, 565 00:28:43,840 --> 00:28:46,600 Speaker 2: who has been the CEO of this company for quite 566 00:28:46,600 --> 00:28:49,520 Speaker 2: a while, I mean ever since Viacom and CBS were emerged. 567 00:28:49,560 --> 00:28:52,400 Speaker 2: He's kind of taken a charge and he's kind of, 568 00:28:52,440 --> 00:28:55,240 Speaker 2: I think, done a fairly good job, although some people 569 00:28:55,360 --> 00:28:59,120 Speaker 2: would would say that, you know, getting into the streaming 570 00:28:59,120 --> 00:29:02,160 Speaker 2: business was not good idea to begin with. And you 571 00:29:02,200 --> 00:29:04,800 Speaker 2: know that's because, yes, they have seventy million subscribers, they've 572 00:29:04,800 --> 00:29:07,360 Speaker 2: had some successes, but they've also lost a ton of money. 573 00:29:07,360 --> 00:29:10,320 Speaker 2: They've lost about five billion dollars and a lot of 574 00:29:10,320 --> 00:29:12,680 Speaker 2: people seem to think that, you know, that's because of 575 00:29:12,960 --> 00:29:16,040 Speaker 2: kind of this misstep or was a misstep by Bob 576 00:29:16,120 --> 00:29:19,920 Speaker 2: backersh So, yes, there's a lot of confusion right now. Basically, 577 00:29:20,080 --> 00:29:23,880 Speaker 2: definitely getting rid of Bob Backers definitely challenges the status quo. 578 00:29:23,960 --> 00:29:26,680 Speaker 2: But I think what Cherry Redstone is hoping to achieve 579 00:29:26,800 --> 00:29:29,120 Speaker 2: is then get you know, Bob Backers has been very 580 00:29:29,200 --> 00:29:31,680 Speaker 2: vocal against the deal with sky Dance, so I think 581 00:29:31,680 --> 00:29:34,080 Speaker 2: she's really kind of trying to hasten the process towards 582 00:29:34,120 --> 00:29:35,160 Speaker 2: a deal with sky Dance. 583 00:29:35,160 --> 00:29:35,360 Speaker 12: Here. 584 00:29:36,240 --> 00:29:38,560 Speaker 3: Wow, it looks as though it is evolving very quickly 585 00:29:38,600 --> 00:29:40,360 Speaker 3: on the day, and I'm sure we'll be looking for 586 00:29:40,400 --> 00:29:43,240 Speaker 3: your expertise again doing by intelligence analyst Katha Rang and 587 00:29:43,280 --> 00:29:45,600 Speaker 3: Ath and me, thank you so much and all things paramount. 588 00:29:45,160 --> 00:29:46,560 Speaker 5: Mean while coming up, and we're going to take a 589 00:29:46,600 --> 00:29:47,560 Speaker 5: look at a new kind. 590 00:29:47,400 --> 00:29:51,000 Speaker 3: Of college call the eye a Founder's Fund. We're on 591 00:29:51,040 --> 00:30:03,280 Speaker 3: that and now a venture spotlight. This is really my technology. 592 00:30:09,480 --> 00:30:09,920 Speaker 7: Campus. 593 00:30:09,960 --> 00:30:14,160 Speaker 4: Dot edu is an online alternative to traditional community colleges 594 00:30:14,640 --> 00:30:17,120 Speaker 4: that's trying to tackle all kinds of problems, one of 595 00:30:17,160 --> 00:30:20,080 Speaker 4: them being student loan debt in the United States, and 596 00:30:20,120 --> 00:30:22,960 Speaker 4: it caught the attention of Founder's Fund, which just led 597 00:30:23,000 --> 00:30:26,240 Speaker 4: a new twenty three million dollar extension round in the platform. 598 00:30:26,280 --> 00:30:26,840 Speaker 7: Disclaimer. 599 00:30:27,080 --> 00:30:30,280 Speaker 4: Bloomberg Beta, the venture capital arm of Bloomberg LP is 600 00:30:30,320 --> 00:30:33,560 Speaker 4: also an investor in campus dot Edu. Here to discuss 601 00:30:33,800 --> 00:30:36,520 Speaker 4: is founder's fund partner Tray Stevens, who led the round, 602 00:30:36,560 --> 00:30:40,880 Speaker 4: and campus dot edu founder and chancellor. Today or Youurinda today, 603 00:30:40,920 --> 00:30:43,040 Speaker 4: I'm going to start with you. I actually have been 604 00:30:43,120 --> 00:30:45,920 Speaker 4: through the mechanics of how this works. You know, you 605 00:30:45,960 --> 00:30:49,320 Speaker 4: sign up, you may be eligible for federal funding grants, 606 00:30:49,480 --> 00:30:51,800 Speaker 4: but you basically pay seven to seven a half thousand 607 00:30:51,840 --> 00:30:55,360 Speaker 4: dollars for the course, and you're also bringing an employment 608 00:30:55,400 --> 00:30:59,320 Speaker 4: opportunity for very talented professors, which raises the question, why 609 00:30:59,320 --> 00:31:01,120 Speaker 4: do you need twenty three million more dollars? 610 00:31:02,280 --> 00:31:04,880 Speaker 12: Yeah, thanks for having me. Look, I think if you 611 00:31:04,920 --> 00:31:08,720 Speaker 12: look at the faculty at these elite universities Princeton, UCLA, 612 00:31:08,760 --> 00:31:11,080 Speaker 12: and Stanford, a lot of them are looking for gigwork. 613 00:31:11,320 --> 00:31:13,240 Speaker 12: That's what we do at Campus is we allow them 614 00:31:13,280 --> 00:31:16,720 Speaker 12: to teach. We bring access to people who had never 615 00:31:16,760 --> 00:31:19,840 Speaker 12: had access to this quality of education before. And then, yes, 616 00:31:19,920 --> 00:31:22,760 Speaker 12: as you pointed out, the federal government does actually pay 617 00:31:22,840 --> 00:31:24,360 Speaker 12: for a lot of the tuition with the grants. 618 00:31:24,400 --> 00:31:27,400 Speaker 4: One of the learnings from researching and reading into this 619 00:31:27,520 --> 00:31:29,920 Speaker 4: is that some of our brightest academics and teachers are 620 00:31:29,920 --> 00:31:33,440 Speaker 4: pretty poorly paid in this country. Trey, I know you, 621 00:31:33,520 --> 00:31:37,240 Speaker 4: I know where you invest thematically specific founders that you back. 622 00:31:37,400 --> 00:31:42,040 Speaker 4: This one's really interesting why you focused on education, but 623 00:31:42,160 --> 00:31:45,240 Speaker 4: this is a very specific case study in education. 624 00:31:45,880 --> 00:31:48,680 Speaker 13: Yeah, well, I wouldn't say that we are focused on education. 625 00:31:48,840 --> 00:31:50,640 Speaker 7: We don't do a whole lot at all and tech. 626 00:31:50,680 --> 00:31:51,720 Speaker 1: That's what I founders figned. 627 00:31:51,800 --> 00:31:55,200 Speaker 13: Yeah, Peter is kind of known as having this anti 628 00:31:55,360 --> 00:31:59,560 Speaker 13: higher education perspective in which led to the tor Fellowship, 629 00:31:59,600 --> 00:32:03,040 Speaker 13: which is the fellowship that he offers to students to 630 00:32:03,280 --> 00:32:06,720 Speaker 13: drop out of college and pursue something entrepreneurial. And so 631 00:32:06,800 --> 00:32:08,880 Speaker 13: I think what this really kind of hit that I 632 00:32:08,920 --> 00:32:11,320 Speaker 13: haven't seen a lot in ED tech is. 633 00:32:11,360 --> 00:32:13,400 Speaker 7: This idea that we don't need to have. 634 00:32:13,360 --> 00:32:16,080 Speaker 13: A bunch of students going into massive debt. The average 635 00:32:16,200 --> 00:32:18,720 Speaker 13: student in the United States that's going into higher ED 636 00:32:19,120 --> 00:32:21,440 Speaker 13: has debt over twenty thousand. I had debt over one 637 00:32:21,520 --> 00:32:24,320 Speaker 13: hundred thousand dollars coming out of college, and there's just 638 00:32:24,360 --> 00:32:27,280 Speaker 13: no reason for this. And so I think what today 639 00:32:27,320 --> 00:32:29,680 Speaker 13: and the team at campus is doing is really exciting 640 00:32:29,720 --> 00:32:32,080 Speaker 13: because it's a way of bridging that out to make 641 00:32:32,120 --> 00:32:35,120 Speaker 13: it possible for kids that want to go to school 642 00:32:35,200 --> 00:32:37,640 Speaker 13: after they finish high school and do that at much 643 00:32:37,720 --> 00:32:41,680 Speaker 13: lower costs and in exit their college experience without any 644 00:32:41,720 --> 00:32:42,760 Speaker 13: debt Tadai. 645 00:32:43,120 --> 00:32:45,800 Speaker 3: Therefore, we go back to the why the need of funds. 646 00:32:45,840 --> 00:32:48,800 Speaker 3: You've got clear demand coming from students, You've got clear 647 00:32:48,840 --> 00:32:49,640 Speaker 3: supply coming. 648 00:32:49,440 --> 00:32:50,160 Speaker 5: From the professors. 649 00:32:50,400 --> 00:32:52,160 Speaker 3: Perhaps a bit of a bottleneck when it comes to 650 00:32:52,200 --> 00:32:54,280 Speaker 3: the coaches that you want to there be to be 651 00:32:54,440 --> 00:32:56,640 Speaker 3: mentoring and stimulating and advising. 652 00:32:57,000 --> 00:32:59,320 Speaker 5: But where will the funds be put to work? Is 653 00:32:59,360 --> 00:33:01,160 Speaker 5: this about mark share capture right now? 654 00:33:02,320 --> 00:33:04,920 Speaker 12: Yeah? Look, Caroline, the opportunity is just so big. If 655 00:33:04,920 --> 00:33:07,000 Speaker 12: you look at student loans in this country, it's perhaps 656 00:33:07,040 --> 00:33:10,800 Speaker 12: past two trillion dollars. So to actually solve this and 657 00:33:10,840 --> 00:33:14,840 Speaker 12: create a world class quality education and scale that up 658 00:33:14,840 --> 00:33:17,240 Speaker 12: to lots of people, it's going to require lots of investment. 659 00:33:17,440 --> 00:33:19,440 Speaker 12: And we give students a lot of wrap around support 660 00:33:19,520 --> 00:33:22,360 Speaker 12: that most community colleges just can't afford to offer. So 661 00:33:22,400 --> 00:33:25,080 Speaker 12: every student forgets a laptop. You know, about a third 662 00:33:25,120 --> 00:33:26,959 Speaker 12: of our students we do an internet speed test. If 663 00:33:26,960 --> 00:33:29,760 Speaker 12: your internet's too slow, will actually get you internet at home? 664 00:33:30,320 --> 00:33:32,320 Speaker 12: We pare them with success coaches who play the role 665 00:33:32,400 --> 00:33:34,760 Speaker 12: like my mother played for me. When I was in college, 666 00:33:34,840 --> 00:33:36,600 Speaker 12: like making sure I'm showing up for class on time 667 00:33:36,640 --> 00:33:39,080 Speaker 12: and getting my assignments in and that's a key part 668 00:33:39,200 --> 00:33:40,840 Speaker 12: of like what a lot of young people are going 669 00:33:40,920 --> 00:33:43,000 Speaker 12: to need to be successful today. So I'm very grateful 670 00:33:43,040 --> 00:33:45,160 Speaker 12: for Trey and you know, the team at Founders Fund, 671 00:33:45,240 --> 00:33:46,720 Speaker 12: because this is a big mission, but it's going to 672 00:33:46,760 --> 00:33:47,360 Speaker 12: require funding. 673 00:33:47,480 --> 00:33:49,200 Speaker 3: Yeah, Tree, why did you take the call or the 674 00:33:49,240 --> 00:33:51,800 Speaker 3: email or the introduction in whatever way if you had 675 00:33:51,880 --> 00:33:56,280 Speaker 3: not that focused on education, as you've clearly articulated, Why 676 00:33:56,400 --> 00:33:59,960 Speaker 3: this one when there are some other online competitors out there? 677 00:34:01,360 --> 00:34:01,600 Speaker 7: Yeah? 678 00:34:01,720 --> 00:34:04,480 Speaker 13: The important thing for us, as it is with all companies, 679 00:34:04,680 --> 00:34:07,680 Speaker 13: is that we are founder base first and foremost, so 680 00:34:07,840 --> 00:34:11,279 Speaker 13: less than investing in categories or you know, specific types 681 00:34:11,320 --> 00:34:14,120 Speaker 13: of companies, We're really interested in investing in the top 682 00:34:14,400 --> 00:34:16,839 Speaker 13: founders that are doing the most interesting things, the most 683 00:34:16,920 --> 00:34:20,920 Speaker 13: novel concepts. And so when I originally met today, you know, 684 00:34:21,000 --> 00:34:23,560 Speaker 13: not generally being interested in ed tech, I was blown 685 00:34:23,600 --> 00:34:26,480 Speaker 13: away by his vision for what the company was going 686 00:34:26,520 --> 00:34:29,719 Speaker 13: to be doing, and ultimately just decided to bring other 687 00:34:29,760 --> 00:34:31,759 Speaker 13: people from the Fund in front of him, saying like 688 00:34:31,880 --> 00:34:34,200 Speaker 13: this guy is different than the other founders that we've 689 00:34:34,200 --> 00:34:36,040 Speaker 13: seen in the ed tech space. We should really be 690 00:34:36,160 --> 00:34:38,560 Speaker 13: open to learning from him and getting excited about the 691 00:34:38,600 --> 00:34:40,040 Speaker 13: thing that he has so much passion for. 692 00:34:40,520 --> 00:34:42,960 Speaker 4: Okay, so today you dropped a reference to the sort 693 00:34:42,960 --> 00:34:45,760 Speaker 4: of gig economy earlier in the conversation. So I'm thinking 694 00:34:45,880 --> 00:34:48,880 Speaker 4: uber or you know there are other gig economy platforms 695 00:34:48,920 --> 00:34:51,400 Speaker 4: out there to do food delivery, et cetera. How's that 696 00:34:51,440 --> 00:34:53,879 Speaker 4: business going to play out in practice? You know, Trey 697 00:34:54,280 --> 00:34:57,760 Speaker 4: investing founders, he backs those founders. He's also an investor 698 00:34:58,120 --> 00:34:59,920 Speaker 4: who needs to see a return in the future. 699 00:35:00,200 --> 00:35:02,360 Speaker 12: Yeah, So look the way it works with campus. If 700 00:35:02,400 --> 00:35:06,160 Speaker 12: you're a professor at Princeton UCLA Moorhouse, you have your 701 00:35:06,280 --> 00:35:09,279 Speaker 12: your on campus job, has an office. You love it. 702 00:35:09,320 --> 00:35:12,400 Speaker 12: You get to meet with students. But oftentimes you're an 703 00:35:12,440 --> 00:35:15,360 Speaker 12: adjunct professor. I used to think adjuncts meant like Michelle 704 00:35:15,360 --> 00:35:17,480 Speaker 12: Obama teaches that Georgetown for fun to give. 705 00:35:17,360 --> 00:35:18,680 Speaker 7: Back saying a guest or whatever. 706 00:35:18,840 --> 00:35:20,040 Speaker 1: That's that's really rare. 707 00:35:20,120 --> 00:35:23,360 Speaker 12: The most adjuncts are actually recent grad school graduates to 708 00:35:23,400 --> 00:35:26,120 Speaker 12: earning forty to forty five grand a year. That's what 709 00:35:26,160 --> 00:35:28,920 Speaker 12: we do is you can actually teach in addition to 710 00:35:28,960 --> 00:35:33,080 Speaker 12: your on campus job on campus campus dot edu and 711 00:35:33,120 --> 00:35:35,920 Speaker 12: we pay about double the national average wage, so it's 712 00:35:35,960 --> 00:35:38,799 Speaker 12: about eight thousand dollars per class. So just simplicity of math. 713 00:35:39,120 --> 00:35:41,040 Speaker 12: You know, four academic quarters a year. If you teach 714 00:35:41,080 --> 00:35:43,200 Speaker 12: three classes a quarter with us, you're making an additional 715 00:35:43,280 --> 00:35:46,000 Speaker 12: ninety six thousand dollars an annual income. And you're doing 716 00:35:46,000 --> 00:35:48,160 Speaker 12: it doing what you're great at and what you love doing, 717 00:35:48,360 --> 00:35:51,360 Speaker 12: teaching these students who are super ambitious, like super talented. 718 00:35:51,400 --> 00:35:53,120 Speaker 3: I want to focus on another found you back when 719 00:35:53,160 --> 00:35:56,359 Speaker 3: it comes to neurallink eil mask today he we led 720 00:35:56,360 --> 00:35:58,840 Speaker 3: the show with the fact that in his other company, Tesla, 721 00:35:58,920 --> 00:36:02,400 Speaker 3: he's deepening thaie with China. He's bringing his driver assistance 722 00:36:02,440 --> 00:36:04,600 Speaker 3: program over there to of course one of the key 723 00:36:04,640 --> 00:36:07,320 Speaker 3: markets for him. How do you sit at the moment 724 00:36:07,360 --> 00:36:11,200 Speaker 3: with founders, with just us more broadly seeing still some 725 00:36:11,400 --> 00:36:13,799 Speaker 3: relationship with China at the time that also you're seeing 726 00:36:13,840 --> 00:36:14,480 Speaker 3: some distancing. 727 00:36:16,040 --> 00:36:19,040 Speaker 13: Yeah, I mean, there's definitely always a good reason to 728 00:36:19,080 --> 00:36:25,239 Speaker 13: have nuance. There's a lot of different stakes are that 729 00:36:25,360 --> 00:36:28,640 Speaker 13: need to be taken into consideration when you look at 730 00:36:29,160 --> 00:36:32,760 Speaker 13: interacting with the Chinese market versus interacting with the Chinese 731 00:36:32,800 --> 00:36:37,279 Speaker 13: government versus interacting with government control over things that are 732 00:36:37,320 --> 00:36:41,520 Speaker 13: impacting US consumers, And so I think obviously diplomacy is 733 00:36:41,840 --> 00:36:44,560 Speaker 13: critical in all these scenarios. Elon is doing what Elon 734 00:36:44,640 --> 00:36:47,720 Speaker 13: needs to do for the companies that he has operating 735 00:36:47,760 --> 00:36:48,399 Speaker 13: in country there. 736 00:36:48,800 --> 00:36:51,520 Speaker 3: What about, well, TikTok being the other key piece of 737 00:36:51,520 --> 00:36:53,560 Speaker 3: news when it comes to how that affects the consumer, 738 00:36:53,640 --> 00:36:56,280 Speaker 3: a relationship of using what is a Chinese held business 739 00:36:56,600 --> 00:36:59,520 Speaker 3: here in the United States, a ban or diverst What did. 740 00:36:59,440 --> 00:37:01,319 Speaker 5: You make of that? How worried are you. 741 00:37:01,280 --> 00:37:03,800 Speaker 3: About the use of TikTok for at least another nine months? 742 00:37:05,440 --> 00:37:07,120 Speaker 1: I mean, I'm very concerned. 743 00:37:07,120 --> 00:37:09,920 Speaker 13: I've been very public and expressing my concerns around the 744 00:37:10,000 --> 00:37:12,879 Speaker 13: use of TikTok domestically. You know, during the Cold War, 745 00:37:12,920 --> 00:37:16,360 Speaker 13: we never would have allowed for a Russian company to 746 00:37:16,680 --> 00:37:19,400 Speaker 13: buy The New York Times. I think having some sense 747 00:37:19,440 --> 00:37:24,399 Speaker 13: for adversary control of key pathways for information into our 748 00:37:24,840 --> 00:37:28,680 Speaker 13: into our populace is super critical. And TikTok has demonstrated 749 00:37:28,800 --> 00:37:31,680 Speaker 13: time and time again that they are not willing to 750 00:37:31,680 --> 00:37:33,560 Speaker 13: be transparent. They're not willing to share with us the 751 00:37:33,560 --> 00:37:35,520 Speaker 13: important information that we would need to know to have 752 00:37:35,600 --> 00:37:39,000 Speaker 13: a level of confidence and their ability to support those 753 00:37:39,160 --> 00:37:41,280 Speaker 13: technologies being deployed in the United States. 754 00:37:41,600 --> 00:37:45,879 Speaker 3: We've got to think about the AI cut well, all 755 00:37:45,960 --> 00:37:48,200 Speaker 3: encompassing narrative here ed a little bit when we were 756 00:37:48,200 --> 00:37:51,520 Speaker 3: talking about Elon and Tesla, you referenced by do of 757 00:37:51,560 --> 00:37:54,400 Speaker 3: course big stakes and AI there we've also got TikTok 758 00:37:54,400 --> 00:37:55,360 Speaker 3: owned by byte Dance. 759 00:37:55,640 --> 00:37:57,680 Speaker 5: That China's got its own interest in all of this 760 00:37:57,719 --> 00:37:58,320 Speaker 5: at the moment. 761 00:37:58,280 --> 00:38:01,279 Speaker 4: Ed for me, that's the story, right, that all the 762 00:38:01,320 --> 00:38:03,840 Speaker 4: stories we talk about, be it Tesla in China, TikTok, 763 00:38:04,120 --> 00:38:07,520 Speaker 4: China is working on these technologies itself, you know, particularly 764 00:38:07,560 --> 00:38:11,000 Speaker 4: in the context of generative AI or building large language models. 765 00:38:11,080 --> 00:38:13,480 Speaker 4: We spent twelve months saying, well, China is also doing this. 766 00:38:14,360 --> 00:38:17,480 Speaker 4: The question of someone like you and your industry is 767 00:38:18,600 --> 00:38:20,759 Speaker 4: how do you get the balance right between being collaborative 768 00:38:20,800 --> 00:38:24,000 Speaker 4: and also putting us interest first. That's basically what I 769 00:38:24,040 --> 00:38:25,400 Speaker 4: think it comes down to for you. 770 00:38:26,239 --> 00:38:27,120 Speaker 7: Yeah, I think that's right. 771 00:38:27,680 --> 00:38:31,040 Speaker 13: You know that the CCP is very different than the 772 00:38:31,120 --> 00:38:33,680 Speaker 13: Chinese people or the Chinese market. These things are not 773 00:38:33,840 --> 00:38:37,200 Speaker 13: always intrinsically connected. I think that the thing that we're 774 00:38:37,239 --> 00:38:40,040 Speaker 13: constantly trying to balance not only inside of our portfolio, 775 00:38:40,120 --> 00:38:42,520 Speaker 13: but also with what we're doing at ANDROL, which is 776 00:38:42,600 --> 00:38:45,480 Speaker 13: a portfolio company of founders fund that I started back 777 00:38:45,480 --> 00:38:49,160 Speaker 13: in twenty seventeen, you know, is to really figure out 778 00:38:49,200 --> 00:38:53,040 Speaker 13: where we need to not only develop but also sustained 779 00:38:53,080 --> 00:38:55,640 Speaker 13: strategic advantage so that we are able to set the 780 00:38:55,719 --> 00:38:59,800 Speaker 13: rules of engagement for how those technologies are like actually 781 00:39:00,200 --> 00:39:02,520 Speaker 13: in the field and the moment we no longer have 782 00:39:02,640 --> 00:39:05,320 Speaker 13: control of the technology, that's when we lose control of 783 00:39:05,360 --> 00:39:09,640 Speaker 13: the ability to regulate and you know, keep those technologies 784 00:39:09,640 --> 00:39:10,719 Speaker 13: inside the bounds of law. 785 00:39:10,920 --> 00:39:13,120 Speaker 4: I'm glad you took us to andre and Defense Tech. 786 00:39:13,160 --> 00:39:15,840 Speaker 4: There have been several columnentches written about you and your 787 00:39:15,920 --> 00:39:20,279 Speaker 4: place and leadership in investing in defense technology. What I 788 00:39:20,320 --> 00:39:22,200 Speaker 4: want to ask you is, if you're seeing science that 789 00:39:22,280 --> 00:39:25,200 Speaker 4: the US government, the top level of government is now 790 00:39:25,280 --> 00:39:27,560 Speaker 4: sort of hand in hand with silicon value, that you 791 00:39:27,560 --> 00:39:29,879 Speaker 4: guys do it really well, So go and do it. 792 00:39:31,560 --> 00:39:32,560 Speaker 7: I guess the. 793 00:39:34,040 --> 00:39:36,080 Speaker 1: Working with the government's really hard. I don't know how 794 00:39:36,080 --> 00:39:38,200 Speaker 1: else to say that. You know, before I. 795 00:39:38,200 --> 00:39:41,400 Speaker 13: Joined found respond ten years ago, I was, you know, 796 00:39:41,480 --> 00:39:44,560 Speaker 13: doing sales at Palenteer, where I spent the prior six 797 00:39:44,640 --> 00:39:47,160 Speaker 13: years of my career. And you know, no matter what 798 00:39:47,239 --> 00:39:50,160 Speaker 13: we tried, it was like every single iteration of our 799 00:39:50,239 --> 00:39:54,200 Speaker 13: sales strategy was just you know, not working, going too slow, 800 00:39:54,360 --> 00:39:58,040 Speaker 13: running into roadblocks. Eventually we figured out a model that worked. 801 00:39:58,800 --> 00:40:00,919 Speaker 13: The same could be said for Space. It took them 802 00:40:01,080 --> 00:40:02,759 Speaker 13: years and years and years to figure out how to 803 00:40:02,760 --> 00:40:06,040 Speaker 13: do this. And the reality is like going into this 804 00:40:06,120 --> 00:40:09,160 Speaker 13: industry blind, like you know, two nineteen year olds working 805 00:40:09,160 --> 00:40:12,480 Speaker 13: in a garage. Very different than starting a software as 806 00:40:12,480 --> 00:40:13,200 Speaker 13: a service company. 807 00:40:13,200 --> 00:40:14,640 Speaker 4: As doctor Carr put it to me, a few weeks 808 00:40:14,680 --> 00:40:17,879 Speaker 4: to go, end the PowerPoint No more Powerpoints founder fun 809 00:40:18,239 --> 00:40:20,520 Speaker 4: Trey Stevens. Great to have you back on the show, Caroc. 810 00:40:21,120 --> 00:40:22,640 Speaker 5: It really was a great discussion. 811 00:40:22,680 --> 00:40:24,880 Speaker 3: And that does it for this well wind edition of 812 00:40:24,920 --> 00:40:25,840 Speaker 3: Bloomberg Technology. 813 00:40:26,840 --> 00:40:28,960 Speaker 4: Yeah, there is so much in the newsflow. It's a 814 00:40:29,040 --> 00:40:31,560 Speaker 4: huge earnings week. Great guests on the show, recap on 815 00:40:31,600 --> 00:40:35,279 Speaker 4: the podcast, Apple, Spotify, iHeart, and the Bloomberg platforms from 816 00:40:35,280 --> 00:40:36,479 Speaker 4: San Francisco and New York. 817 00:40:36,560 --> 00:40:37,840 Speaker 7: This is Bloomberg Technology.