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Speaker 1: From Mahard where Innovations, Money and Power Collie in Silicon Valley, NBN.

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Speaker 1: This is Bloomberg Technology with Caroline Hyde and Ed Ludlow.

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Speaker 2: I'm Caroline he at Bloomberg's world headquarters in New I

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Speaker 2: med louveload.

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Speaker 3: This is Bloomberg Technology.

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Speaker 2: Coming up the latest updates from the earthquake in Taiwan.

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Speaker 2: That's as the island faces its worst seismic event in

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Speaker 2: twenty five years.

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Speaker 4: Full coverage ahead.

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Speaker 2: And then look at the broader implications of this human

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Speaker 2: tragedy for.

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Speaker 4: The global economy.

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Speaker 5: Plus Disney's months long proxy battle nears its end as

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Speaker 5: shareholder's place their final votes in the battle between the

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Speaker 5: mouse House and Tree, and will sit down with one

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Speaker 5: shareholder Ross Gerber.

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Speaker 2: And Spotify and announces its rising prices again and several

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Speaker 2: markets for the second time in a year. It's all

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Speaker 2: step towards researching a long term profitability. We'll discuss that

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Speaker 2: and so much more throughout the app at first to

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Speaker 2: check on in these public.

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Speaker 4: Markets and look a reprieve.

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Speaker 2: We've got a strong set of data when it comes

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Speaker 2: to ADP numbers, when it comes to the labor force

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Speaker 2: in the US, but maybe it just to pull back

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Speaker 2: in the services area that breathes life into the equity market.

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Speaker 2: After the biggest sell off in a month yesterday, we're

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Speaker 2: up five tens percent on the Nasdaq. I'm looking at a

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Speaker 2: tenure yield that just continues to crescendo higher at the moment,

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Speaker 2: and this is borrowing costs really move with the idea

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Speaker 2: that the market thinks maybe we won't get those three

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Speaker 2: rate cuts that the Fed Reserve has signaled for this year.

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Speaker 2: I'm looking though, also what happened in Taiwan, trading notably

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Speaker 2: down by some six tens percent, not an enormous move

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Speaker 2: after what was a serious human tragedy and one that

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Speaker 2: has implications on technology that will dive into in a moment.

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Speaker 4: Look at what's.

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Speaker 2: Happening in the world of crypto, just briefly, because this

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Speaker 2: acid a choice at the moment, currently actually up one

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Speaker 2: point four percent, just spiking a little bit in the

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Speaker 2: last couple of hours of training. We're still only at

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Speaker 2: the sixty six thousand dollars level. There's market moves, the

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Speaker 2: fact that the ETF flows perhaps a slowed somewhat, and

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Speaker 2: what that means for VOLI trading over in Asia, interestingly,

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Speaker 2: particularly when it comes to some of the algorithms that

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Speaker 2: end up selling bitcoin on the back when we get

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Speaker 2: the inflow and outflow data from ETS.

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Speaker 4: But and you're going to focus more on Asia right now.

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Speaker 5: Yeah, These are the US listed shares of the technology

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Speaker 5: companies impacted in Taiwan. TSMC, the world's biggest contract manufacturer

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Speaker 5: for chips front and center. The ADRs have risen because

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Speaker 5: of a positive operational update. Will bring you the details

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Speaker 5: in just a moment. Micron has a big presence as well.

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Speaker 5: It said that it's evaluating the situation on the ground

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Speaker 5: in Taiwan, but all of its staff were safe. Caroline,

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Speaker 5: bring our audience the absolute latest details of what happened

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Speaker 5: in Taiwan.

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Speaker 4: Yeah, because occurred last night.

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Speaker 2: Seven point four magnitude earthquake struck Taiwan and it was,

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Speaker 2: as we've said, the biggest seismic event by magnitude to

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Speaker 2: hit the island. So it's nineteen ninety nine now. So far,

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Speaker 2: the death toll has reached nine, it's injured close to

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Speaker 2: a thousand people, and it's leveled dozens of buildings on

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Speaker 2: the eastern side of the island.

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Speaker 4: As some of these pictures show shocks.

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Speaker 2: In fact, were felt as far away as Japan and

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Speaker 2: as but any damage from the quake has been closely

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Speaker 2: watched for potential effects look on the.

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Speaker 4: Global economy as well.

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Speaker 2: Given its technology output, this island is dominant in chip

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Speaker 2: manufacturing industry, and it also accounts some more than half

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Speaker 2: of global market for laptops and motherboards and network devices.

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Speaker 2: And we've got to go into the implications for companies

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Speaker 2: right now too.

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Speaker 5: Yeah, honing in on the companies that operate in Taiwan

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Speaker 5: the island to tech firms are still assessing impact from

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Speaker 5: the earthquake. TSMC, the world's number one chip contract manufacturer,

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Speaker 5: had halted some chip making equipment and plants and evacuated them.

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Speaker 5: But these are the latest headlines from TSMC, the company

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Speaker 5: saying in the last half an hour they don't see

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Speaker 5: damage to critical tools, including all their EUV gear, and

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Speaker 5: they're expecting to resume production of semiconductors overnight. Let's bring

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Speaker 5: in Bloomberg z And King, who leads semiconductor coverage at

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Speaker 5: Bloomberg Technology Ian. What is the latest please for TSMC.

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Speaker 6: Yeah, I mean what they've done is come out and

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Speaker 6: really reassure people that yes, this isn't great. Yes, there's

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Speaker 6: been an impact, but it's still within the bounds of

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Speaker 6: what we can fix and fix quickly given our contingency plans.

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Speaker 6: So there will be some wafers loss, there will be

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Speaker 6: a bit of manufacturing loss, but not the kind of

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Speaker 6: months of disruptions that we've seen in the distant past

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Speaker 6: and with other supply chain disruptions that we saw during

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Speaker 6: the pandemic.

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Speaker 2: Just give us the context a little bit of just

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Speaker 2: how integral Taiwan TSMC players like fox Conn as well

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Speaker 2: when it comes to phones and laptops are to the

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Speaker 2: global economy.

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Speaker 6: And yeah, I mean everything goes through TSMC. If it's

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Speaker 6: the processor in your iPhone designed by Apple, it's made

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Speaker 6: by TSMC. If it's the supercomputer in a data center

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Speaker 6: based on a chip from Nvidia, that's going through TSMC.

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Speaker 6: If it's a modem that's allowing your phone to connect

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Speaker 6: to a network that's Qualcom, that's going through TSMC, I mean,

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Speaker 6: the list goes on and on and on.

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Speaker 3: Everybody depends on them.

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Speaker 5: Okay, let's talk about what else is operational on the

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Speaker 5: ground in Taiwan. I it was interested to read about

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Speaker 5: Micron's footprint, For example, Ian there's a lot that happens there.

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Speaker 5: We're talking about semiconductor manufacturing, but it's also at the

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Speaker 5: circuit board level, the context of laptops and PCs. What

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Speaker 5: other names are impacted and which areas of the technology

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Speaker 5: economy should we look out for.

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Speaker 6: Yeah, I mean, historically Taiwan was an absolute center of

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Speaker 6: effectively assembly of electronic devices. A lot of that has

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Speaker 6: moved to mainland China, so it's not as crucial as

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Speaker 6: it used to be in that area. But there are

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Speaker 6: still a lot of technology companies that work for the

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Speaker 6: sort of better well known names like Dell, like HP

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Speaker 6: that also operate in Taiwan. And as you mentioned Micron,

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Speaker 6: that's memory chips. Memory chips are really important as well

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Speaker 6: for your PC, for your smartphone.

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Speaker 2: And there is notable reaction across competitors right now when

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Speaker 2: you're looking at the rest of the chip stocks, I'm

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Speaker 2: looking at the well, the Philadelphia Semonconductor Index, most in

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Speaker 2: the green, Micron leading it, Broadcom Land Research.

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Speaker 4: But lastly, there's an interesting exception.

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Speaker 2: And you would have thought Intel Arrival would have done

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Speaker 2: well out of the back of any supply chain headaches

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Speaker 2: for rivals, but not so today.

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Speaker 6: Yeah, this is an unfortunate kind of consequences that any

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Speaker 6: bad news for TSMC should be good news for what

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Speaker 6: Intel is trying to do, which has effectively become a

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Speaker 6: competitor for TSMC. It should have people saying, hey, we

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Speaker 6: need to diversify geographically. Who can we do that, Well,

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Speaker 6: here's Intel. But because of some of the financial disclosures

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Speaker 6: that Intel put out there last night, that, unfortunately, at

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Speaker 6: least in terms of Intel stock price, is not the case.

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Speaker 3: Ian.

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Speaker 5: The story with Intel is that it has different businesses, right,

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Speaker 5: and we're talking in this instance about the foundry business.

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Speaker 5: Intel wants to do what TSMC already does, be a

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Speaker 5: contract manufacturer for third parties. And when I was looking

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Speaker 5: through the financial disclosures they made, it's not just that

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Speaker 5: they're booking less revenue on foundry. It's not just that

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Speaker 5: the losses are widening. But their projections to the end

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Speaker 5: of the decade make you a little bit concerned that

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Speaker 5: they actually will get back to the era where Intel

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Speaker 5: had north of sixty percent margins and they were the

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Speaker 5: technology leader. That's the story that Pat Gelsinger, the CEO,

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Speaker 5: has been trying to tell all three of us for

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Speaker 5: quite a long time. Just explain I guess the shift

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Speaker 5: in timeline that Intel disclosed last night.

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Speaker 6: Yeah, I mean there wasn't a shock for those who've

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Speaker 6: been studying it closely, but it was arguably a reminder that, look,

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Speaker 6: this is an extremely expensive turnaround. You could argue that

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Speaker 6: Gelsinger was intellectually honest and upfront about things, and people

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Speaker 6: really should have been paying attention, but some of them weren't.

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Speaker 6: If you're a casual investor, if you've got other options,

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Speaker 6: why wouldn't you be investing in in Video, qualcom, TSMS,

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Speaker 6: all of these other companies. What Intel did was really

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Speaker 6: remind people that, yes, they're on a tough road and

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Speaker 6: they still have a ways to go.

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Speaker 5: In The stock is down six point eight percent. Intel

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Speaker 5: they have a new CFO. Who is it all right?

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Speaker 6: It's a new CFO for that foundry division. Yeah, the

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Speaker 6: main CFO is still there.

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Speaker 3: Got it?

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Speaker 2: Than King, We thank you really taking us around the

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Speaker 2: world the chip industry today.

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Speaker 4: We appreciate it enormously.

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Speaker 2: Meanwhile, coming up, while we're going back to Disney's months

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Speaker 2: long proxy battle with Trains Nelson Pelts, when it's finally

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Speaker 2: coming to an end.

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Speaker 4: Today is the day that we get the shareholder meeting.

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Speaker 2: We're going to be discussing it next with one key shareholder,

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Speaker 2: Gerbert Kawasaki CEO Ross Gerber.

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Speaker 4: This is bo Make Technology.

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Speaker 2: Today is the day Disney's shareholder meeting will determine the

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Speaker 2: future of the entertainment company's boardroom, and a winner will

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Speaker 2: emerge from a lengthy proxy battle between them and the

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Speaker 2: activist events investor that is Nelson Peltz. Now, MIXT sources

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Speaker 2: say that, look, Disney is close to clinching and win

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Speaker 2: over Pelts and Tryan with vanguards backing that of Disney.

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Speaker 2: Let's talk to Goebel Kawasaki CEO Ross Gerber, who you've

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Speaker 2: thrown your support behind Disney, behind.

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Speaker 4: Bob I Go.

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Speaker 2: And it looks as though, well most of the investor

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Speaker 2: based retail and some of their big shareholders are doing

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Speaker 2: the same.

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Speaker 1: Well, yeah, I mean I gres phenomenal executive. This is

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Speaker 1: Nelson Peltz. Is absurd. He's wasted so much time and money.

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Speaker 7: You know, he's made a ton of money now on

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Speaker 7: this activist campaign irrelevant of really, he's going to accomplish nothing.

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Speaker 7: I think Disney's gonna win this, you know, pretty solidly

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Speaker 7: with the backing of the institutional shareholders you know, as

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Speaker 7: well as many retail.

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Speaker 1: Shareholders like we are.

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Speaker 7: So the bottom line in this is, how is Nelson

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Speaker 7: Peltz gonna do anything better for Disney other than cut costs?

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Speaker 1: And that's already.

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Speaker 3: Happened, mister Geber.

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Speaker 5: Whether mister Pelts is absurd or not, he set out

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Speaker 5: in a one hundred and thirty three page manifesto a

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Speaker 5: lot of grievances right, focusing on the streaming business. And

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Speaker 5: so let's say whatever happens right, say Iiger is successful.

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Speaker 5: The question that mister Pelt's raised was how do you

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Speaker 5: get that streaming business to profitability without depending on a

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Speaker 5: strategy that is raising prices for consumers while cutting the

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Speaker 5: costs of content production. Do you have firm in your

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Speaker 5: mind and answer to that question.

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Speaker 1: Show go. That is the answer.

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Speaker 7: When you have shows and you have content that people

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Speaker 7: want to see, they will pay for subscriptions.

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Speaker 1: It's just what's happening in streaming.

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Speaker 7: We're seeing it with sports subscriptions now too, where people

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Speaker 7: are signing up to watch a game on Paramount Plus

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Speaker 7: and then they're sticking sixty to seventy percent of the

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Speaker 7: time after the game's over. So the shows the hit shows,

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Speaker 7: the talent, the ip that bring viewers in is what

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Speaker 7: makes these streamers profitable. Like Netflix every week now Flets

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Speaker 7: has something good on every week. So finally Hulu and

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Speaker 7: Disney Plus are stepping up their game. They've combined the apps,

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Speaker 7: They've built it onto one platform.

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Speaker 1: Now there's a tech side of this.

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Speaker 7: This is a big thing that Disney's done to cut

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Speaker 7: costs and make their library even more accessible to many

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Speaker 7: different you know platforms. But the bottom line is the

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Speaker 7: shows drive Disney's success, and they have hit shows right

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Speaker 7: now on their platforms. And that's the Eiger magic that

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Speaker 7: pelants can never do.

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Speaker 5: Goeberg Kawasaki your affirm according to the data or my

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Speaker 5: Bloomberg termo one hundred and thirty one thousand Disney shares

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Speaker 5: or so, what is your firm's physician on Eiger succession?

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Speaker 7: Well, you know, being a Disney shareholder in my whole

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Speaker 7: life and going through the you know past with you

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Speaker 7: know Eisner and all the trials and tribulations. Eiger is

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Speaker 7: a young CEO based off the average age of a

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Speaker 7: presidential candidate.

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Speaker 1: So I'm not sure what will happen next.

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Speaker 7: I think there's some confident executives that he can you know,

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Speaker 7: pick to take over that are hopefully more digitally focused,

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Speaker 7: and he's got some of the same team members around

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Speaker 7: him from you know, building Disney Plus in the past.

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Speaker 1: So I'm not sure where he goes with this.

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Speaker 7: We'd like to see an internal succession, as Disney typically

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Speaker 7: does that, but it's going to be really hard to

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Speaker 7: find a replacement for Aiger, as it's always been a

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Speaker 7: big challenge for Disney over its long history.

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Speaker 3: Just really quick carry.

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Speaker 5: The argument that Ross has made before is that if

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Speaker 5: Joe Biden can run for reelection as president, then Bob

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Speaker 5: Ayger can do another ten years at Disney.

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Speaker 3: Oh yeah, yeah, he's Rus. I just rereat share to

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Speaker 3: make it simple for the audience.

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Speaker 1: Carry. Sorry, yeah, no, I mean Iiger is in great shape.

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Speaker 7: I mean he's mentally and physically fit, and you know

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Speaker 7: he's riding his bike on Sunday mornings at six am,

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Speaker 7: like twenty miles.

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Speaker 2: But he's shown in the past Ross that he wanted

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Speaker 2: to exit and then he had to come back, and

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Speaker 2: I think ultimately the new board has really been focused

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Speaker 2: on trying to understand where the path of the future is.

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Speaker 2: Who are in the internal candidates with the external candidates,

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Speaker 2: and it's got to be yes, someone who's digitally focused.

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Speaker 2: But Disney is a behemoth. It isn't just.

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Speaker 4: An exposure to digital is an.

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Speaker 2: Exposure to parks, to experiences, to cruises, it's an experience

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Speaker 2: to big hit shows that go onto your movie theaters.

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Speaker 2: How can we find someone who can be basically the

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Speaker 2: consolidated leader of a business like this, Well, you.

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Speaker 7: Just brought up probably one of the more challenging issues, right,

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Speaker 7: Like running parks and resorts is nothing like running the streamer,

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Speaker 7: and so somebody having these sort of skills to do

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Speaker 7: it all is really a big ask. And hence why

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Speaker 7: I heard and they got James Gorman on the board

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Speaker 7: to try to help succession planning. But it's a challenge

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Speaker 7: to find somebody with that type of operational expertise like period.

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Speaker 7: So what I think is Disney's really big, and when

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Speaker 7: you look at the ESPN piece that they're sort of

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Speaker 7: carving into its own sort of business, and then parks

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Speaker 7: and resources and experience and then you know the rest

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Speaker 7: of the business, the streaming in the studios, I think

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Speaker 7: they really need free, strong leaders that are sort of

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Speaker 7: have a CEO that's great at running those.

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Speaker 1: Three leaders because each leader is going to have to

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Speaker 1: be different.

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Speaker 7: And this is the problem that a lot of massive companies,

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Speaker 7: whether it be Apple, Microsoft, whatever, are facing is they've

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Speaker 7: become so big.

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Speaker 1: And so profitable. Can one person really run all of this?

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Speaker 1: You know? So I think we're you know, this is

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Speaker 1: a challenge for a lot.

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Speaker 7: Of big companies, including Disney, is where do we go

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Speaker 7: from here with secession planning? Because finding another Eiger is

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Speaker 7: obviously not going to happen.

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Speaker 2: One reason I might want to hand over the baton

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Speaker 2: sooner rather than later is because he's fed up with

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Speaker 2: mudslinging coming from.

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Speaker 4: People like Elon Musk.

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Speaker 2: And it's interesting that Elon Musk has decided to pile

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Speaker 2: on it the last minute saying he would support Well

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Speaker 2: Pelts joining the board. We know he's got an axe

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Speaker 2: to grind against Bobbigo. What did you make of that coming?

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Speaker 7: Well, hopefully Eli could keep his job as CEO of

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Speaker 7: Tesla at this point alone make a record.

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Speaker 1: For activists, because what's going to happen is Pelts is going.

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Speaker 7: To buy Tesla Max and be calling the board of

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Speaker 7: Tesla because an opportunity is arising for an activist in.

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Speaker 1: Tesla right now. That looks amazing.

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Speaker 7: So the best thing Elon could do is get his

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Speaker 7: butt back to Tesla and start working on getting these

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Speaker 7: cars out. You know, he's got to get cyber truck out,

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Speaker 7: he's got to get full self driving working. He's got

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Speaker 7: to you know, deal with competition. And instead he's tweeting

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Speaker 7: every day a bunch of garbage. So, you know, look

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Speaker 7: at the performance of Disney versus I think somebody tweeted this.

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Speaker 7: You know, what's the performance in Disney versus Tesla over

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Speaker 7: the last six months. And fortunately Disney's the top holding

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Speaker 7: in my fun GK And you know, our clients. We

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Speaker 7: have very close relationships with our clients and they love

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Speaker 7: these companies. But sometimes things change, and we've had to

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Speaker 7: deal with the changes in Tesla for the negative and

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Speaker 7: for the positive.

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Speaker 1: We are seeing positive.

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Speaker 7: Changes for Disney and it's become a very good returning

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Speaker 7: investment for our clients.

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Speaker 2: Just give us the context on Elon Musk running Tesla,

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Speaker 2: the environment with which he's running it at the moment,

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Speaker 2: the response on X of basically calling out certain individuals

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Speaker 2: posts calling them idiots, because the ev landscape itself is

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Speaker 2: contracting byd sales dropped forty two percent. He's referring to

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Speaker 2: the competition coming from China. In fact, yes, we saw

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Speaker 2: a pullback in terms of deliveries from Tesla yesterday, but

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Speaker 2: actually reclaimed it spots the number one provider of EV's globally.

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Speaker 2: Can you respond to the criticism that Elon Musk has

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Speaker 2: of you, Well, yeah, of your tweet and calling you

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Speaker 2: basically an idiot.

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Speaker 1: Yeah, yeah, you.

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Speaker 7: Know I've been called that many times by Eulon, but somehow,

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Speaker 7: you know, I've survived this line.

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Speaker 1: And we went to the same college. But that said,

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Speaker 1: I think that if you look at global sales of evs.

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Speaker 7: It's up thirty five percent year over year. Tesla's losing share.

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Speaker 7: Buid EV sales were actually up year over year. It

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Speaker 7: was total sales, So it's easy to cherry pick numbers,

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Speaker 7: but the EV market is growing. Only nine percent of

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Speaker 7: US consumers are buying evs. So really the truth of

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Speaker 7: the matter is we can all call names, and we

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Speaker 7: can all look around and you know, make excuses. The

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Speaker 7: economy is very strong here in the United States. The

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Speaker 7: economy in Europe is okay. China is definitely an issue,

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Speaker 7: and it affects Tesla, But when you look at the

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Speaker 7: gap between production and sales, that's not an economic issue.

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Speaker 7: That's a sales issue. So once again the guy throwing

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Speaker 7: out names and all this kind of stuff because he

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Speaker 7: doesn't like what people are saying about him, mister free speech,

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Speaker 7: you know, but the fact of the matter is his

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Speaker 7: free speech has cost Tesla shareholders six hundred billion dollars

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Speaker 7: in losses, and Tesla car owners have lost fifty billion

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Speaker 7: dollars of equity.

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Speaker 1: In their vehicles.

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Speaker 7: And he's even forced to hurt Ceo to lose his

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Speaker 7: job because it was such a bad investment buying Tesla's

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Speaker 7: for her. So let's be real, Eli, like, it's time

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Speaker 7: for you to grow up and accept reality that you're

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Speaker 7: causing enormous damage to one of the most consequential companies

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Speaker 7: in the world because your behavior on Twitter, and nobody

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Speaker 7: wants to hear his opinions.

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Speaker 1: You know that's a fact.

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Speaker 3: Ross. I'm just sorry, Caro.

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Speaker 5: I've invited Elon onto this program many times, and in

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Speaker 5: this case I'll write to him again and say, you know,

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Speaker 5: Ross responded to your post on X he can come

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Speaker 5: the show. He obviously has declined or to do that, but.

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Speaker 4: Throw in the U Penn thing maybe maybe.

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Speaker 1: Yeah, Listen, he's not going to debate me. He doesn't

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Speaker 1: want to debate me because the fact of the matter is.

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Speaker 7: I'm not scared of him, and he's so used to

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Speaker 7: bullying everybody out of the business.

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Speaker 1: He's not gonna bully me.

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Speaker 7: So, you know, the reality is he's got to get

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Speaker 7: his focus back on what's important, which is solving climate.

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Speaker 1: It's not free speech, So okay, you know, I'm sorry.

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Speaker 4: Don't apologize, ros Gerbert. It's great to have you on.

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Speaker 2: Gerber Karasaki CEO surviving another day of some munth slinging

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Speaker 2: on Twitter or x, but also talking us through Disney

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Speaker 2: as well.

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Speaker 4: We thank him for it. This is Blue Bang Technology.

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Speaker 5: It's time for talking tech. This is what I broke

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Speaker 5: last night with the Bloomberg Deal's team. Chipmaker Sarah Brass

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Speaker 5: Systems has picked City Group as the lead bank on

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Speaker 5: its initial public offering. Sourcings telling us that the Silicon

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Speaker 5: Valley company chose the lender after holding discussions with potential

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Speaker 5: advisors on a US listing. Sarah Brass is targeting that

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Speaker 5: listing in the second half of the year and may

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Speaker 5: seek evaluation above the four billion figure it achieved in

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Speaker 5: its last twenty twenty one funding round, and during the

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Speaker 5: phone call between President Biden and China g the two

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Speaker 5: are said to.

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Speaker 3: Have discussed TikTok.

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Speaker 5: White House spokesman John Kirby told reporters that Biden reiterated

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Speaker 5: to Gie his concerns about Chinese ownership of the popular

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Speaker 5: video sharing app. He said it was not about a

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Speaker 5: ban of the application, but rather US interest in divestiture.

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Speaker 2: Carol, Meanwhile, let's talk about a previous President Trump who

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Speaker 2: is suing two co founders.

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Speaker 4: Trump Media and Technology.

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Speaker 2: I mean, then they set the company up improperly and

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Speaker 2: shouldn't get any stock in it. This comes amid wild

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Speaker 2: swings in shares of the recently public company, of course

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Speaker 2: went through a spac Let's talk about it all the

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Speaker 2: legal battle that is with Bloomberg's Bailey Lipschaltz, and so

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Speaker 2: just talk us through us about the issues the co

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Speaker 2: founders have of truth social with Trump.

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Speaker 8: Well, there were an initial lawsuit from the two co

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Speaker 8: founders saying that they were going to be diluted out

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Speaker 8: of their eight point six percent steak in Trump Media

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Speaker 8: and Technology Group. And this is a counter lawsuit from

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Speaker 8: Donald Trump saying that they deserve nothing. And this is

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Speaker 8: really a deal that has had a number of lawsuits

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Speaker 8: from the two co founders to the founder of the

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Speaker 8: actual spac that brought Trump Media public, who was suing

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Speaker 8: about his steak. So there are a number of lawsuits.

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Speaker 8: It's really mind boggling to try to put into perspective

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Speaker 8: just who is arguing what at this point. But as

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Speaker 8: far as we know at this point, UAV, which is

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Speaker 8: the investment group behind those two co founders, they currently have,

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Speaker 8: according to filings, a north of five percent stake in

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Speaker 8: Donald Trump has a roughly fifty seven to fifty eight

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Speaker 8: percent stake in Trump Media Bailey Estate.

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Speaker 5: In what exactly I think this week we learn the

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Speaker 5: reality of what the company is does, its finances and

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Speaker 5: its scale, and actually there's not a lot there, not

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Speaker 5: a lot there.

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Speaker 8: Really, the flagship product is truth Social. The company declines

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Speaker 8: to provide typical metrics, average users, monthly average users, any

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Speaker 8: real data point behind that. But they did in their

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Speaker 8: twenty twenty three filing update that they lost more than

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Speaker 8: fifty million dollars and generated and easily four million dollars

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Speaker 8: in revenue. So it really has seen.

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Speaker 1: We've really been.

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Speaker 8: Tracking the technology company that trades under DJT. It really

443
00:21:52,280 --> 00:21:55,720
Speaker 8: is more of a memestock, a investment that people are

444
00:21:55,760 --> 00:21:58,320
Speaker 8: buying because it has the potential to be sold to

445
00:21:58,320 --> 00:22:01,480
Speaker 8: someone else at a higher valuation as opposed to the

446
00:22:01,520 --> 00:22:03,880
Speaker 8: actual underlying business as it is fit.

447
00:22:04,000 --> 00:22:07,360
Speaker 5: Right now, Bloomberg's Bay Lipschotz, who's being kept busy by

448
00:22:07,400 --> 00:22:10,560
Speaker 5: the latest despach and what a story it is, thank you.

449
00:22:10,560 --> 00:22:14,359
Speaker 5: Now coming up on Bloombow Technology, Spotify raising prices for

450
00:22:14,400 --> 00:22:16,960
Speaker 5: the second time in a year. This is one actually

451
00:22:17,000 --> 00:22:20,200
Speaker 5: that there was pretty immediate reaction to on different social

452
00:22:20,240 --> 00:22:22,800
Speaker 5: media platforms because investors like it.

453
00:22:22,880 --> 00:22:23,600
Speaker 3: The shares are up.

454
00:22:23,720 --> 00:22:26,400
Speaker 5: If you're a consumer and you have another subscription where

455
00:22:26,400 --> 00:22:28,720
Speaker 5: the cost is going up, maybe you think again, I

456
00:22:28,760 --> 00:22:28,960
Speaker 5: don't know.

457
00:22:29,000 --> 00:22:30,240
Speaker 3: We're going to get all those details.

458
00:22:30,280 --> 00:22:33,359
Speaker 5: Next from New York City, side by side, this is

459
00:22:33,400 --> 00:22:41,040
Speaker 5: Bloombow Technology.

460
00:22:46,600 --> 00:22:48,920
Speaker 3: Welcome back to Bloomberg Technology. I'm a a loveo.

461
00:22:49,119 --> 00:22:51,000
Speaker 2: I'm Caroline High. Let's get a quick check on these market,

462
00:22:51,040 --> 00:22:52,840
Speaker 2: says could. Right now, we're actually seeing a bit of

463
00:22:52,840 --> 00:22:55,119
Speaker 2: a reprieve after yesterday's sell off. Now notably we've got

464
00:22:55,119 --> 00:22:57,040
Speaker 2: a bounce back of six ten percent on the NASTEP

465
00:22:57,040 --> 00:22:59,520
Speaker 2: one hundred. Remember yesterday the benchmarks basically fell the most

466
00:22:59,520 --> 00:23:02,680
Speaker 2: in a month, as we're worried about guess what macropolicy,

467
00:23:02,680 --> 00:23:04,880
Speaker 2: federal reserve policy, whether or not we will indeed see

468
00:23:05,000 --> 00:23:07,800
Speaker 2: three rate cuts happening over the course of the rest

469
00:23:07,840 --> 00:23:09,840
Speaker 2: of this year. The market has started to doubt that

470
00:23:09,880 --> 00:23:12,520
Speaker 2: because there's some really robust data think of ADP that

471
00:23:12,520 --> 00:23:14,439
Speaker 2: comes in today. But nevertheless, we managed to shake off

472
00:23:14,440 --> 00:23:16,440
Speaker 2: those losses. Not so in the bond market. We're still

473
00:23:16,480 --> 00:23:18,760
Speaker 2: up by some three basis points on the tenure Bitcoin

474
00:23:18,840 --> 00:23:21,399
Speaker 2: THO like alongside some of the other tech risk assets

475
00:23:21,400 --> 00:23:24,000
Speaker 2: were up nine tenser percent, still sixty six thousand O

476
00:23:24,119 --> 00:23:26,399
Speaker 2: well off those previous highs. Move on, have a look

477
00:23:26,400 --> 00:23:28,040
Speaker 2: at some of the individual movers that we've got on

478
00:23:28,080 --> 00:23:32,160
Speaker 2: the nose today. Look, there is a human cost disaster

479
00:23:32,240 --> 00:23:35,240
Speaker 2: that we're talking about that's happened in Taiwan following an earthquake.

480
00:23:35,520 --> 00:23:38,880
Speaker 2: The ramifications on the global economy is something we've tried

481
00:23:38,920 --> 00:23:41,760
Speaker 2: to debate and think about. TSMC is actually up one

482
00:23:41,760 --> 00:23:43,800
Speaker 2: point four percent and is coming out and saying, look,

483
00:23:43,840 --> 00:23:48,320
Speaker 2: the impact of TSMC operations from this earthquake should be manageable.

484
00:23:48,359 --> 00:23:51,359
Speaker 2: According to City Group Spotify our five point seen percent.

485
00:23:51,359 --> 00:23:52,960
Speaker 2: We're going to dig into why that's on a price

486
00:23:53,000 --> 00:23:54,560
Speaker 2: point change that they're currently offering.

487
00:23:54,880 --> 00:23:57,720
Speaker 4: But let's look at Disney down a quarter of a percent.

488
00:23:57,960 --> 00:23:58,760
Speaker 4: We are all.

489
00:23:58,560 --> 00:24:02,600
Speaker 2: Anticipating that intant shareholder meeting, the proxy battle that has been.

490
00:24:02,440 --> 00:24:03,200
Speaker 4: Going on for months.

491
00:24:03,240 --> 00:24:06,520
Speaker 2: The deluge even ads that we may able and serve

492
00:24:06,600 --> 00:24:08,080
Speaker 2: to get out there and vote if you're a retail

493
00:24:08,119 --> 00:24:11,360
Speaker 2: investor and well, Pelts versus EIGA will win.

494
00:24:11,600 --> 00:24:15,040
Speaker 5: Ed, let's get more on the mouse house with the

495
00:24:15,080 --> 00:24:17,760
Speaker 5: take from the in house Bloomberg intelligence and this Guita

496
00:24:17,840 --> 00:24:21,320
Speaker 5: Rang and Nathan and Gita. You did two interesting pieces

497
00:24:21,320 --> 00:24:23,680
Speaker 5: of research earlier in the week published on the Bloomberg

498
00:24:23,760 --> 00:24:27,600
Speaker 5: terminal that with Disney pulling ahead, seems like that's still

499
00:24:27,600 --> 00:24:31,119
Speaker 5: the case. Look at cash flow and look at fundamentals.

500
00:24:31,320 --> 00:24:32,760
Speaker 5: Why was that your thesis?

501
00:24:34,400 --> 00:24:35,879
Speaker 4: Yeah, thank you so much, Ed.

502
00:24:36,000 --> 00:24:38,560
Speaker 9: So, I think you know what Belts has kind of

503
00:24:38,600 --> 00:24:42,760
Speaker 9: been agitating for, Disney has more than delivered. Right, So

504
00:24:42,800 --> 00:24:45,880
Speaker 9: Disney has I mean, Belts has been speaking and kind

505
00:24:45,880 --> 00:24:48,720
Speaker 9: of constantly. His rallying cry has been on the poor

506
00:24:48,800 --> 00:24:52,760
Speaker 9: stock prize performance, on you know, poor financial performance. And

507
00:24:53,280 --> 00:24:55,439
Speaker 9: barb Iger, what he's done ever since he's come back

508
00:24:55,600 --> 00:24:58,719
Speaker 9: is he's really taken control of the narrative here and

509
00:24:58,800 --> 00:25:02,200
Speaker 9: he has instituted really broad reforms.

510
00:25:01,720 --> 00:25:02,520
Speaker 4: Across the company.

511
00:25:02,560 --> 00:25:05,720
Speaker 9: Of course, the most critical being the cost cuts. And

512
00:25:05,760 --> 00:25:08,240
Speaker 9: we've seen cost cuts across the board. We've seen their

513
00:25:08,240 --> 00:25:11,720
Speaker 9: content budget kind of slashed pretty dramatically. And what that's

514
00:25:11,760 --> 00:25:15,199
Speaker 9: doing is it's improving earnings power at the company and

515
00:25:15,240 --> 00:25:17,119
Speaker 9: it's improving free cash flow. And so we're going to

516
00:25:17,119 --> 00:25:20,240
Speaker 9: see a seventy percent surge in Disney's free cash flow.

517
00:25:20,240 --> 00:25:23,439
Speaker 9: We're almost back to pre pandemic levels. Remember before they

518
00:25:23,440 --> 00:25:26,480
Speaker 9: went into streaming, they were generating about ten billion.

519
00:25:26,200 --> 00:25:27,240
Speaker 4: Dollars in cash flow.

520
00:25:27,480 --> 00:25:31,040
Speaker 9: Of course, that went down pretty dramatically through Covid, through

521
00:25:31,080 --> 00:25:34,720
Speaker 9: the Fox acquisition, With the streaming launch, we were down

522
00:25:34,760 --> 00:25:38,000
Speaker 9: to close to about five billion dollars in twenty twenty three,

523
00:25:38,040 --> 00:25:39,800
Speaker 9: but we're going to be up to eight billion, more

524
00:25:39,840 --> 00:25:42,080
Speaker 9: than eight billion actually twenty twenty four, and probably even

525
00:25:42,080 --> 00:25:43,400
Speaker 9: ten billion next year.

526
00:25:43,920 --> 00:25:47,080
Speaker 2: If Nelson Pelts, if Jay Russulo, who was the previous CFO,

527
00:25:47,200 --> 00:25:50,400
Speaker 2: don't get board seats, maybe they've ended up winning anyhow.

528
00:25:50,480 --> 00:25:55,120
Speaker 2: If they've pushed ultimately these focus on costs, this focus

529
00:25:55,119 --> 00:25:57,560
Speaker 2: on profitability to go hand in hand. How much do

530
00:25:57,560 --> 00:25:59,320
Speaker 2: you think the fact that Vanguard and Black Croc have

531
00:25:59,359 --> 00:26:01,160
Speaker 2: come out and support to Bobby Gay do you think

532
00:26:01,200 --> 00:26:03,639
Speaker 2: that ultimately they're saying, you've got to stand by this,

533
00:26:03,720 --> 00:26:06,080
Speaker 2: You've now got to enact some of these changes we

534
00:26:06,119 --> 00:26:06,719
Speaker 2: need to see.

535
00:26:07,760 --> 00:26:07,960
Speaker 4: Yeah.

536
00:26:07,960 --> 00:26:10,639
Speaker 9: I think Disney definitely obviously has the edge, Caroline, as

537
00:26:10,680 --> 00:26:12,359
Speaker 9: you just kind of pointed out, as they kind of

538
00:26:12,359 --> 00:26:15,199
Speaker 9: go into this home home stretch of this meeting. But

539
00:26:15,280 --> 00:26:18,040
Speaker 9: I think to a great extent, I think Pels has

540
00:26:18,080 --> 00:26:20,440
Speaker 9: also been a clear winner. I mean the stock price.

541
00:26:20,480 --> 00:26:23,640
Speaker 9: Ever since he started agitating in October of last year,

542
00:26:23,640 --> 00:26:25,680
Speaker 9: the stock price is up forty five percent, and I

543
00:26:25,760 --> 00:26:29,480
Speaker 9: think it's definitely added. You know, obviously, Iiger has constantly

544
00:26:29,520 --> 00:26:33,080
Speaker 9: complained that having all these activists investors kind of breathing

545
00:26:33,119 --> 00:26:35,520
Speaker 9: down his neck has been a constant distraction for him,

546
00:26:35,520 --> 00:26:39,600
Speaker 9: and to some extent, I think that's that's justified. But

547
00:26:39,640 --> 00:26:41,840
Speaker 9: I think at the same time, kind of having them,

548
00:26:42,400 --> 00:26:44,600
Speaker 9: you know, light of fire there was was kind of

549
00:26:44,680 --> 00:26:49,320
Speaker 9: important for him to really accelerate kind of the change, right.

550
00:26:49,359 --> 00:26:52,200
Speaker 9: So we've had him do some pretty transformative stuff, whether

551
00:26:52,240 --> 00:26:55,280
Speaker 9: it's you know, charting out ESPN's digital future, whether it's

552
00:26:55,359 --> 00:26:59,040
Speaker 9: kind of putting Disney on financial on on firm financial footing,

553
00:26:59,359 --> 00:27:01,800
Speaker 9: or whether it's the sixty billion dollar investment in Parks.

554
00:27:01,800 --> 00:27:04,400
Speaker 9: So I think to a great extent, Pelso's also one,

555
00:27:04,480 --> 00:27:06,440
Speaker 9: even if he doesn't win the actual.

556
00:27:06,119 --> 00:27:07,320
Speaker 4: Vote, Etha.

557
00:27:07,640 --> 00:27:10,119
Speaker 2: So it's great to get your perspective Blomberg Intelligence and

558
00:27:10,200 --> 00:27:13,240
Speaker 2: I still be they're viewing, I'm sure later today Keithan

559
00:27:13,280 --> 00:27:15,720
Speaker 2: Wang and Ethan we thank you now. And even more

560
00:27:15,760 --> 00:27:18,680
Speaker 2: news coming out of the entertainment industry. Spotify, well, it's

561
00:27:18,720 --> 00:27:20,560
Speaker 2: going to be raising the price of its streaming service

562
00:27:20,560 --> 00:27:22,720
Speaker 2: in several key markets for not once, but the second

563
00:27:22,720 --> 00:27:23,600
Speaker 2: time in this year.

564
00:27:23,960 --> 00:27:25,720
Speaker 4: And it's a step of course, to keep.

565
00:27:25,480 --> 00:27:28,880
Speaker 2: On moving towards long term profitability, joining us for more

566
00:27:29,040 --> 00:27:31,879
Speaker 2: relmost Felix, Gillette and whole host of news happening in

567
00:27:32,000 --> 00:27:33,879
Speaker 2: entertainment right now, Spotify.

568
00:27:33,440 --> 00:27:34,400
Speaker 4: One to two dollars.

569
00:27:34,880 --> 00:27:37,399
Speaker 2: How big a perspective is this that they're now going

570
00:27:37,440 --> 00:27:38,879
Speaker 2: to have to start charging for audiobooks.

571
00:27:38,880 --> 00:27:40,640
Speaker 10: It feels like, well, I think it's a big move

572
00:27:40,680 --> 00:27:44,400
Speaker 10: because for so long Spotify kept the price same right

573
00:27:44,440 --> 00:27:46,880
Speaker 10: and now they've reason that, you know, the rising prices

574
00:27:46,960 --> 00:27:51,040
Speaker 10: twice within a year, and I think that you know,

575
00:27:51,119 --> 00:27:53,720
Speaker 10: part of this is the introduction of audio books this

576
00:27:53,800 --> 00:27:57,760
Speaker 10: last fall. You've got fifteen hours with your premium plan

577
00:27:58,320 --> 00:28:01,760
Speaker 10: and you only paid if you went above those fifteen hours.

578
00:28:01,960 --> 00:28:04,240
Speaker 10: So Spotify has been paying these book publishers but not

579
00:28:04,320 --> 00:28:06,840
Speaker 10: collecting money. So now basically what's going to happen is

580
00:28:06,880 --> 00:28:08,679
Speaker 10: if you want to keep listening to those audio books,

581
00:28:08,760 --> 00:28:10,639
Speaker 10: you're going to pay a dollar or two dollars more

582
00:28:10,680 --> 00:28:12,680
Speaker 10: a month, depending on your plan.

583
00:28:13,440 --> 00:28:15,480
Speaker 3: But they're also going to introduce a basic.

584
00:28:15,240 --> 00:28:17,840
Speaker 10: Plan with just music and podcasts.

585
00:28:17,960 --> 00:28:19,480
Speaker 3: And if you don't that that makes important.

586
00:28:19,560 --> 00:28:19,639
Speaker 8: Right.

587
00:28:19,680 --> 00:28:22,520
Speaker 5: The shares are up six percent ish big on track

588
00:28:22,520 --> 00:28:24,159
Speaker 5: for theduce jump since the first week in decend it.

589
00:28:24,200 --> 00:28:27,040
Speaker 5: So there's the thing the investors like, yeah, which carry

590
00:28:27,040 --> 00:28:29,520
Speaker 5: outline is maybe towards profitability, but the consumer is going

591
00:28:29,520 --> 00:28:31,520
Speaker 5: to look at it and go, it's another thing, I

592
00:28:31,560 --> 00:28:33,919
Speaker 5: got to pay more for. What are they getting in return?

593
00:28:34,359 --> 00:28:36,880
Speaker 5: You know, what is the access that comes with it?

594
00:28:36,960 --> 00:28:40,200
Speaker 10: Well, then that much because they've already had free audio books,

595
00:28:40,440 --> 00:28:42,880
Speaker 10: you know, so basically they're getting the choice, do you

596
00:28:42,880 --> 00:28:45,200
Speaker 10: want to pay for audio books or do you just

597
00:28:45,640 --> 00:28:46,200
Speaker 10: want to.

598
00:28:46,080 --> 00:28:47,720
Speaker 4: Just listen to music and podcasts.

599
00:28:47,840 --> 00:28:48,960
Speaker 3: So it's a little bit more choice.

600
00:28:49,120 --> 00:28:51,400
Speaker 2: Let's stay in the world of entertainment and those that

601
00:28:51,480 --> 00:28:56,280
Speaker 2: represent those that have big podcasts on big music endeavor.

602
00:28:56,640 --> 00:29:00,360
Speaker 2: I mean we've long heard from Ariammanuel sitting with our

603
00:29:00,400 --> 00:29:03,000
Speaker 2: own Lucas Shore at events that we have, of course,

604
00:29:03,040 --> 00:29:06,680
Speaker 2: like screen Time, he didn't like being a public company ultimately.

605
00:29:06,320 --> 00:29:08,000
Speaker 4: Or where his share price was, and now they're going

606
00:29:08,000 --> 00:29:08,520
Speaker 4: back private.

607
00:29:08,880 --> 00:29:11,800
Speaker 10: Yeah, there was always this frustration on Ari's part that

608
00:29:12,120 --> 00:29:15,000
Speaker 10: you know, the market wasn't valuating these collection of assets

609
00:29:15,080 --> 00:29:17,160
Speaker 10: the same way they saw them. But it was always

610
00:29:17,160 --> 00:29:19,360
Speaker 10: a little bit of a confusing mix, right, it was

611
00:29:19,520 --> 00:29:24,000
Speaker 10: talent agencies, it was opened that you know, sports betting, information,

612
00:29:25,280 --> 00:29:29,680
Speaker 10: bull riding, you know, the spinning off of UFC and

613
00:29:29,840 --> 00:29:32,880
Speaker 10: merging with WWE and what did it all add up to.

614
00:29:33,040 --> 00:29:36,080
Speaker 10: I think this will give you know, the company more

615
00:29:36,120 --> 00:29:39,680
Speaker 10: flexibility to make sense of those assets, maybe sell off

616
00:29:39,760 --> 00:29:44,440
Speaker 10: some of the pieces there without quite as much scrutiny

617
00:29:44,480 --> 00:29:47,280
Speaker 10: from investors who didn't really get the vision.

618
00:29:47,960 --> 00:29:50,240
Speaker 5: The shares actually moved on this, but I think we

619
00:29:50,320 --> 00:29:52,320
Speaker 5: kind of knew it would be done. Yeah, there's an

620
00:29:52,320 --> 00:29:56,280
Speaker 5: interesting paragraph in the story, which is including the Tico

621
00:29:56,560 --> 00:29:59,360
Speaker 5: Aero element Silver late gave us a twenty five billion

622
00:29:59,400 --> 00:29:59,920
Speaker 5: dollar enterprise.

623
00:30:00,240 --> 00:30:01,440
Speaker 3: He's making it the.

624
00:30:01,480 --> 00:30:04,960
Speaker 5: Largest private equity takeover of a public company in more

625
00:30:05,000 --> 00:30:08,120
Speaker 5: than a decade. Why do we care about this maneuvering.

626
00:30:09,000 --> 00:30:10,320
Speaker 4: I think it will be interesting.

627
00:30:10,600 --> 00:30:13,480
Speaker 10: It gives I mean a little less visibility to what's

628
00:30:13,480 --> 00:30:18,240
Speaker 10: happening in Hollywood. From my perspective, I could see WM

629
00:30:18,280 --> 00:30:21,120
Speaker 10: you know, you could see there what was happening with

630
00:30:21,200 --> 00:30:24,000
Speaker 10: the streaming with Peak TV as their revenues grew. We're

631
00:30:24,040 --> 00:30:26,280
Speaker 10: going to get a little bit less visibility into that.

632
00:30:27,520 --> 00:30:29,120
Speaker 10: You know, we'll still be able to see what's happening

633
00:30:29,120 --> 00:30:31,600
Speaker 10: with UFC and WWE.

634
00:30:32,160 --> 00:30:34,600
Speaker 4: But yeah, it'll be interesting to see Ari.

635
00:30:34,680 --> 00:30:37,280
Speaker 10: I think it'll give him more flexibility to make some moves,

636
00:30:37,880 --> 00:30:39,960
Speaker 10: and he's been a big player in Hollywood, so I

637
00:30:39,960 --> 00:30:41,080
Speaker 10: think that'll be fun to watch.

638
00:30:41,280 --> 00:30:42,680
Speaker 3: Bloomberg's for Felix Jillette.

639
00:30:42,680 --> 00:30:45,480
Speaker 5: Your world's very busy at the moment, Entertainment media a

640
00:30:45,480 --> 00:30:47,160
Speaker 5: lot of fun now coming up on the show, We're

641
00:30:47,160 --> 00:30:51,440
Speaker 5: going to be joined by Brim Financial CEO Rasha Katabi

642
00:30:51,760 --> 00:30:55,000
Speaker 5: on the company's brand new series C Round Big numbers.

643
00:30:55,040 --> 00:30:57,320
Speaker 5: That conversation is coming up next. This is Boomberg Technology.

644
00:31:10,120 --> 00:31:10,440
Speaker 3: Okay.

645
00:31:10,440 --> 00:31:14,120
Speaker 5: Today fintech company brim Financial announced an eighty five million

646
00:31:14,160 --> 00:31:17,160
Speaker 5: dollar Series C funding round on the back of strong

647
00:31:17,200 --> 00:31:20,760
Speaker 5: revenue growth. The company provides credit platform programs as a

648
00:31:20,800 --> 00:31:24,600
Speaker 5: service to banks and large enterprises and says it's rapidly

649
00:31:24,600 --> 00:31:27,280
Speaker 5: increasing its market share. Let's break it all down with

650
00:31:27,360 --> 00:31:31,240
Speaker 5: brim Financial CEO Russia Katabi Russia. Good morning to you

651
00:31:31,520 --> 00:31:33,440
Speaker 5: from New York City. What are you going to use

652
00:31:33,440 --> 00:31:34,000
Speaker 5: the money for.

653
00:31:35,640 --> 00:31:38,720
Speaker 11: We're going to be focusing on our expansion and the

654
00:31:38,840 --> 00:31:43,560
Speaker 11: robustness of our credit card platforms, and we're really excited

655
00:31:43,560 --> 00:31:45,240
Speaker 11: about the three is Thank you for having me.

656
00:31:45,280 --> 00:31:47,680
Speaker 4: On ed Russia. Interesting.

657
00:31:47,720 --> 00:31:50,480
Speaker 2: Of course, you're building the business in Canada, you're looking

658
00:31:50,520 --> 00:31:52,920
Speaker 2: at penetration here in the United States, and you say

659
00:31:52,920 --> 00:31:55,120
Speaker 2: that you're going to be redefining the credit card and

660
00:31:55,160 --> 00:31:57,160
Speaker 2: payment infrastructure landscape.

661
00:31:57,280 --> 00:32:00,600
Speaker 4: For those not steeped in the world of fintech, outlook like.

662
00:32:02,400 --> 00:32:04,640
Speaker 11: Well, you know, we're seeing a lot of changes in

663
00:32:04,680 --> 00:32:07,880
Speaker 11: the market, you know, carolinne with just the capping of

664
00:32:07,920 --> 00:32:10,720
Speaker 11: the fees that you know was just announced in the US,

665
00:32:10,760 --> 00:32:14,120
Speaker 11: which we think actually is really positive all around. But

666
00:32:14,280 --> 00:32:17,440
Speaker 11: it's going to have an undeniable impact on credit card

667
00:32:17,480 --> 00:32:21,440
Speaker 11: issuers and it's going to highlight the importance of the

668
00:32:21,520 --> 00:32:26,320
Speaker 11: product construct the strength of the platform capabilities, and that

669
00:32:26,480 --> 00:32:29,680
Speaker 11: is what's going to drive with the positioning and competitive

670
00:32:29,760 --> 00:32:34,160
Speaker 11: landscape as opposed to leaning in too much in interchange

671
00:32:34,200 --> 00:32:38,000
Speaker 11: revenue the way you know, value propositions used to you know,

672
00:32:38,040 --> 00:32:39,160
Speaker 11: be front of the center.

673
00:32:39,520 --> 00:32:43,960
Speaker 2: So you're kind of helping financial companies make their mark,

674
00:32:44,120 --> 00:32:45,840
Speaker 2: stand out offer things.

675
00:32:46,000 --> 00:32:47,040
Speaker 4: But it's notable.

676
00:32:47,080 --> 00:32:52,440
Speaker 2: You say, Masscard, Visa had capped ultimately some of their fees,

677
00:32:52,520 --> 00:32:54,560
Speaker 2: but they're also getting fees in other ways. There's another

678
00:32:54,560 --> 00:32:57,360
Speaker 2: great story coming from our n Pager reporter here saying

679
00:32:57,360 --> 00:33:00,480
Speaker 2: that Masscard actually plans to increase certain credit card fees

680
00:33:00,560 --> 00:33:03,280
Speaker 2: beginning April fifteenth, and these are going to be more

681
00:33:03,440 --> 00:33:06,479
Speaker 2: network assessment fees. So do these credit card companies end

682
00:33:06,560 --> 00:33:09,840
Speaker 2: up making money no matter what, Well, you.

683
00:33:09,760 --> 00:33:12,479
Speaker 11: Know, when you hold the keys to the castle, you

684
00:33:12,520 --> 00:33:15,600
Speaker 11: always have a way to protect your share of revenues.

685
00:33:16,040 --> 00:33:19,800
Speaker 11: I think, undeniably MasterCard and Visa are great companies that

686
00:33:19,880 --> 00:33:24,400
Speaker 11: play a key role in the ecosystem, and undoubtedly I

687
00:33:24,440 --> 00:33:27,000
Speaker 11: don't think this is going to impact their revenues or

688
00:33:27,040 --> 00:33:27,880
Speaker 11: their stock price.

689
00:33:27,960 --> 00:33:29,640
Speaker 3: Karen I, Russia.

690
00:33:30,120 --> 00:33:33,560
Speaker 5: Today's Tech Daily newsletter is a look at the funding

691
00:33:33,640 --> 00:33:37,880
Speaker 5: environment for startups and what our colleague career and outlines is.

692
00:33:37,920 --> 00:33:40,120
Speaker 5: It's been a pretty rough start to the year. And

693
00:33:40,160 --> 00:33:43,800
Speaker 5: if you're not an AI company, you're not allowed or allowed,

694
00:33:43,800 --> 00:33:45,720
Speaker 5: but you're not going to be able to raise funds.

695
00:33:45,760 --> 00:33:48,960
Speaker 5: That's the kind of thesis outlined in the Tech Daily.

696
00:33:49,720 --> 00:33:52,200
Speaker 5: But you did raise funds and you're not an AI

697
00:33:52,320 --> 00:33:55,400
Speaker 5: company on the face of it, how difficult was it

698
00:33:55,440 --> 00:33:56,880
Speaker 5: and how did you go about it?

699
00:33:59,240 --> 00:34:05,000
Speaker 11: Yes, we certainly it's a significantly harder environment, a more

700
00:34:05,120 --> 00:34:08,439
Speaker 11: challenged environment than a few years ago, let's say so.

701
00:34:08,680 --> 00:34:11,960
Speaker 11: The entire process of raising fund is much more rigorous.

702
00:34:12,360 --> 00:34:12,560
Speaker 4: You know.

703
00:34:12,960 --> 00:34:16,200
Speaker 11: Luckily for us at BRIM, we've ted xed our revenues

704
00:34:16,280 --> 00:34:19,400
Speaker 11: since the Series B and we've expanded our product and

705
00:34:19,440 --> 00:34:24,120
Speaker 11: platform capabilities significantly in both the credit card and payment space.

706
00:34:24,600 --> 00:34:28,120
Speaker 11: We've also signed on some really awesome partnerships that are

707
00:34:28,360 --> 00:34:32,640
Speaker 11: key in the fueling the global expansion. You know, I

708
00:34:32,680 --> 00:34:35,240
Speaker 11: refer you to the master Card partnership that we announced

709
00:34:35,239 --> 00:34:39,000
Speaker 11: in December twenty twenty three, where MasterCard in the US

710
00:34:39,080 --> 00:34:42,080
Speaker 11: selected Brim to be their credit card platform as a

711
00:34:42,160 --> 00:34:47,879
Speaker 11: service strategic partner, really to help their own customers be competitive,

712
00:34:48,200 --> 00:34:52,799
Speaker 11: offer innovative product and payment solutions, and better serve their

713
00:34:52,840 --> 00:34:57,640
Speaker 11: own customers, whether they be consumers, small businesses, or large companies.

714
00:34:58,120 --> 00:35:00,239
Speaker 5: There's one word I don't think I heard do you

715
00:35:00,320 --> 00:35:03,719
Speaker 5: use yet? Which is profit? Did your investors in this

716
00:35:03,840 --> 00:35:05,840
Speaker 5: Series C upround want to see some profit?

717
00:35:06,680 --> 00:35:06,919
Speaker 4: Yeah?

718
00:35:07,040 --> 00:35:10,120
Speaker 11: Thank you for it was a very robust upround for

719
00:35:10,200 --> 00:35:12,680
Speaker 11: Brim since our Series B, and I think it's simply

720
00:35:12,719 --> 00:35:16,080
Speaker 11: a testament to what we've been doing for the past

721
00:35:16,120 --> 00:35:21,400
Speaker 11: three years. The massive growth very much the market is

722
00:35:21,480 --> 00:35:25,640
Speaker 11: reacting to that, and we're thrilled about it. On AI

723
00:35:26,120 --> 00:35:28,200
Speaker 11: and you said, on the face of it, we're not

724
00:35:28,239 --> 00:35:33,360
Speaker 11: an AI company of course, However, AI undeniably is being

725
00:35:33,480 --> 00:35:38,080
Speaker 11: rolled out across the Brim platforms, and that together, combining

726
00:35:38,120 --> 00:35:41,799
Speaker 11: it with open banking capabilities that we're rolling out, is

727
00:35:41,840 --> 00:35:45,600
Speaker 11: going to enable our clients to unlock key new opportunities.

728
00:35:46,320 --> 00:35:49,000
Speaker 2: So interesting your background two decades in the capital markets,

729
00:35:49,000 --> 00:35:51,759
Speaker 2: you're a TV bank, you're at Merril. You then seen

730
00:35:51,840 --> 00:35:54,520
Speaker 2: this problem gone out and fixed it. Now you're looking

731
00:35:54,600 --> 00:35:57,360
Speaker 2: to the US. Is it talent that you need. Is

732
00:35:57,400 --> 00:36:00,279
Speaker 2: it marketing spend that you need to hit B to

733
00:36:00,360 --> 00:36:00,920
Speaker 2: B audience?

734
00:36:01,239 --> 00:36:03,520
Speaker 4: Where do you deploy the money raised?

735
00:36:04,960 --> 00:36:10,040
Speaker 11: Yeah, that's that's asking. We're definitely focusing on the hiring already, Caroline.

736
00:36:10,120 --> 00:36:13,959
Speaker 11: Our company is half US half Canada more or less

737
00:36:14,000 --> 00:36:17,640
Speaker 11: from a staffing perspective, we are going to be definitely

738
00:36:17,760 --> 00:36:22,200
Speaker 11: increasing our footprint as well as you know folks that

739
00:36:22,280 --> 00:36:24,680
Speaker 11: are going to be joining brim that are all US based.

740
00:36:25,480 --> 00:36:28,640
Speaker 11: Currently we have our CEO in Miami, our CFO is

741
00:36:28,680 --> 00:36:31,399
Speaker 11: in the Bay Area, and definitely that I think that

742
00:36:31,400 --> 00:36:33,160
Speaker 11: that trend continues.

743
00:36:33,320 --> 00:36:36,120
Speaker 2: A truly sort of decentralized business at the moment. From

744
00:36:36,200 --> 00:36:39,160
Speaker 2: financial CEO Rushia Katabi, really great.

745
00:36:38,920 --> 00:36:40,400
Speaker 4: Task in time with you today. Thank you.

746
00:36:41,000 --> 00:36:42,799
Speaker 2: Coming up, we're going to be joined by thread Up

747
00:36:42,920 --> 00:36:46,600
Speaker 2: CEO James Reinhart because in the company's latest findings on

748
00:36:46,840 --> 00:36:49,000
Speaker 2: resell industry trends and guess what's sprinkling of.

749
00:36:48,960 --> 00:36:52,040
Speaker 5: Ai too, and Caroline, I'm going to continue keeping an

750
00:36:52,040 --> 00:36:55,080
Speaker 5: eye on what's happened in Taiwan. You know, the worst

751
00:36:55,120 --> 00:36:59,880
Speaker 5: seismic event earthquake in twenty five years. Sadly nine were killed.

752
00:37:00,239 --> 00:37:03,520
Speaker 5: But these are the US listed shares or ADRs of TSMC,

753
00:37:03,719 --> 00:37:06,399
Speaker 5: the biggest contract chip manufacturer in the world. They're near

754
00:37:06,440 --> 00:37:08,879
Speaker 5: session highs one and a half percent. If you look

755
00:37:08,880 --> 00:37:13,360
Speaker 5: at the cell side reaction, everyone's pretty sanguine that this

756
00:37:13,480 --> 00:37:15,360
Speaker 5: is not going to have a big impact. City calling

757
00:37:15,400 --> 00:37:19,520
Speaker 5: the situation on those key chip plants in Taiwan manageable

758
00:37:19,680 --> 00:37:22,200
Speaker 5: that will continue to track the latest that is coming

759
00:37:22,200 --> 00:37:22,840
Speaker 5: out of Taiwan.

760
00:37:23,080 --> 00:37:24,320
Speaker 3: This is Bloomberg technology.

761
00:37:35,520 --> 00:37:38,680
Speaker 2: Let's talk about the resale market. Well, if you're apparel,

762
00:37:38,760 --> 00:37:41,200
Speaker 2: because it's a booming industry. The second hand in peril

763
00:37:41,239 --> 00:37:43,480
Speaker 2: market is in fact growing eleven percent annually on average

764
00:37:43,480 --> 00:37:45,600
Speaker 2: in the United States, it's at according to thread up's

765
00:37:45,719 --> 00:37:48,560
Speaker 2: latest report, and that market is even slated to reach

766
00:37:48,600 --> 00:37:51,600
Speaker 2: seventy three billion dollars by twenty twenty eight. Let's get

767
00:37:51,640 --> 00:37:54,280
Speaker 2: the person behind this report, thread up CEO James Reinhart,

768
00:37:54,360 --> 00:37:57,840
Speaker 2: joining us for more. And we've seen many ways people

769
00:37:57,880 --> 00:38:00,320
Speaker 2: wanting whether it's environmental reasons, whether that's right now, actial

770
00:38:00,320 --> 00:38:02,800
Speaker 2: reasons to basically be more thrifty.

771
00:38:02,920 --> 00:38:06,960
Speaker 12: Right, absolutely, yeah, I mean that's certainly the trend these days.

772
00:38:07,040 --> 00:38:10,000
Speaker 12: People are looking for value and they're looking to be unique,

773
00:38:10,000 --> 00:38:12,520
Speaker 12: and I think that's where resale really hits the bid.

774
00:38:13,120 --> 00:38:15,080
Speaker 5: What I find so interesting about this, James, is the

775
00:38:15,120 --> 00:38:21,120
Speaker 5: marketplace technology must be involved to assign a value to

776
00:38:21,200 --> 00:38:25,080
Speaker 5: any specific garment, as much as the participation of the

777
00:38:25,120 --> 00:38:26,000
Speaker 5: seller and the buyer.

778
00:38:26,120 --> 00:38:28,400
Speaker 3: Right, just to explain the process.

779
00:38:28,040 --> 00:38:31,240
Speaker 12: To us, Yeah, sure, I mean, you know, thrifty secondhand

780
00:38:31,239 --> 00:38:34,640
Speaker 12: has been around a long time, right, eBay, Craigslist, you know,

781
00:38:34,719 --> 00:38:37,160
Speaker 12: really invented this market, you know, over thirty years ago.

782
00:38:37,560 --> 00:38:40,120
Speaker 12: I think what's changed over the last ten years is

783
00:38:40,480 --> 00:38:43,480
Speaker 12: companies like Threadup that have come onto the scene and

784
00:38:43,560 --> 00:38:46,600
Speaker 12: really brought technology to the forefront. So we run four

785
00:38:46,600 --> 00:38:50,200
Speaker 12: distribution centers around the country where consumers send us their

786
00:38:50,239 --> 00:38:53,520
Speaker 12: goods they're no longer wearing. We process all of those goods.

787
00:38:54,080 --> 00:38:57,399
Speaker 12: We process more than one hundred thousand unique items every day,

788
00:38:57,600 --> 00:39:01,200
Speaker 12: nearly sixty thousand brands in our system. We process those amps,

789
00:39:01,239 --> 00:39:04,040
Speaker 12: we put them online for resale, and then we allow

790
00:39:04,080 --> 00:39:07,680
Speaker 12: buyers to shop like they're shopping on Amazon or Nordstrom.

791
00:39:07,719 --> 00:39:10,440
Speaker 12: And so we've really built a consumer experience that I

792
00:39:10,480 --> 00:39:14,319
Speaker 12: think meets the consumer where they are and really is

793
00:39:14,360 --> 00:39:17,040
Speaker 12: technology driven demographics.

794
00:39:17,360 --> 00:39:17,880
Speaker 4: James.

795
00:39:18,080 --> 00:39:20,719
Speaker 2: I mean, I've come to thread Up for children's clothes

796
00:39:20,760 --> 00:39:23,760
Speaker 2: because ultimately, I think that's they're getting through them really quickly,

797
00:39:23,800 --> 00:39:25,640
Speaker 2: and you want to be ensuring that you're being environmentally

798
00:39:25,640 --> 00:39:27,080
Speaker 2: friendly and a little bit thristy on it.

799
00:39:27,160 --> 00:39:29,279
Speaker 4: But who is generally your buyer right now?

800
00:39:30,440 --> 00:39:33,200
Speaker 12: I think what's so remarkable about the resale industry is,

801
00:39:33,239 --> 00:39:35,400
Speaker 12: I mean your experience is a classic one. You know,

802
00:39:35,680 --> 00:39:38,719
Speaker 12: our original tagline and our business was clothes.

803
00:39:38,480 --> 00:39:39,400
Speaker 3: Don't grow, kids do.

804
00:39:40,480 --> 00:39:44,040
Speaker 12: But what you're finding is, whether it's Gen Z or millennials,

805
00:39:44,800 --> 00:39:49,400
Speaker 12: gen X boomers, everybody is starting to approach thrift in

806
00:39:49,440 --> 00:39:53,120
Speaker 12: a more mainstream way because the value certainly is something

807
00:39:53,120 --> 00:39:54,800
Speaker 12: that the consumer cares about today.

808
00:39:55,120 --> 00:39:56,600
Speaker 4: And one of the things that thrift.

809
00:39:56,360 --> 00:39:59,080
Speaker 12: Provides for folks no matter your age, is the ability

810
00:39:59,120 --> 00:40:01,520
Speaker 12: to find something that's you unique. Right it's not on

811
00:40:01,600 --> 00:40:04,440
Speaker 12: the store at at your favorite High Street store. It

812
00:40:04,520 --> 00:40:06,040
Speaker 12: might be from a few years ago. And I think

813
00:40:06,080 --> 00:40:10,320
Speaker 12: that combination of uniqueness on top of value is something

814
00:40:10,360 --> 00:40:12,799
Speaker 12: that transcends generations. I mean, just as just because we

815
00:40:12,800 --> 00:40:15,319
Speaker 12: get older doesn't mean we don't want to find great

816
00:40:15,360 --> 00:40:18,000
Speaker 12: deals and we want to be our unique expression of ourselves.

817
00:40:18,040 --> 00:40:19,160
Speaker 12: And I think that's what's driving it.

818
00:40:19,760 --> 00:40:22,319
Speaker 5: You've kind of led us to competition. You know, you

819
00:40:22,400 --> 00:40:28,000
Speaker 5: mentioned the history of thrift, particularly the digital marketplace, you know, Craigslist.

820
00:40:28,160 --> 00:40:29,880
Speaker 5: When I moved to the United States was kind of

821
00:40:29,880 --> 00:40:32,560
Speaker 5: my first introduction to that. Who is now your biggest

822
00:40:32,560 --> 00:40:37,240
Speaker 5: competition and do they have the sophistication of live data

823
00:40:37,320 --> 00:40:38,480
Speaker 5: marketplace that you do.

824
00:40:39,840 --> 00:40:43,680
Speaker 12: Yeah, I think where the industry has evolved five, six,

825
00:40:43,719 --> 00:40:45,560
Speaker 12: seven years ago, you would sit in a room with

826
00:40:45,600 --> 00:40:47,319
Speaker 12: a number of people and they would say, Oh, I

827
00:40:47,440 --> 00:40:50,440
Speaker 12: use Threatup, or I use the Real Reel or one

828
00:40:50,440 --> 00:40:52,719
Speaker 12: of the other peer to peer marketplaces. And I think

829
00:40:52,760 --> 00:40:55,839
Speaker 12: what's fascinating now is that you're in a conversation with

830
00:40:56,200 --> 00:40:59,080
Speaker 12: you know, half a dozen people, and every single person

831
00:40:59,160 --> 00:41:04,239
Speaker 12: is using one of the thrift companies. And so I

832
00:41:04,280 --> 00:41:07,160
Speaker 12: think it's a rising tide lifts all boats. I think

833
00:41:07,239 --> 00:41:11,520
Speaker 12: generally speaking, thrift and resale as a category is taking share,

834
00:41:11,960 --> 00:41:15,719
Speaker 12: you know, from mainstream high street apparel brands, and I

835
00:41:15,719 --> 00:41:18,879
Speaker 12: think the data shows that consumers are.

836
00:41:18,600 --> 00:41:20,239
Speaker 3: Thrifting more and more each year.

837
00:41:20,480 --> 00:41:23,440
Speaker 12: I mean, the resale market's growing three times as fast

838
00:41:24,160 --> 00:41:25,720
Speaker 12: as the traditional retail market.

839
00:41:25,800 --> 00:41:28,080
Speaker 4: So we personally worry.

840
00:41:27,800 --> 00:41:32,680
Speaker 12: A little less about the competition and ultimately about the

841
00:41:32,719 --> 00:41:36,520
Speaker 12: size of the opportunity, and I think that the opportunity

842
00:41:36,560 --> 00:41:37,839
Speaker 12: is large, and you know, we'll take our.

843
00:41:37,880 --> 00:41:38,640
Speaker 3: Chances on the field.

844
00:41:39,520 --> 00:41:43,520
Speaker 2: So when it comes to basically preaching to the non converted,

845
00:41:44,160 --> 00:41:47,320
Speaker 2: it's going to be influencers, Right, How are you marketing

846
00:41:47,360 --> 00:41:49,280
Speaker 2: at the moment in a digitally savvy manner?

847
00:41:50,480 --> 00:41:50,719
Speaker 3: Yeah?

848
00:41:50,719 --> 00:41:53,200
Speaker 12: I mean do we work with a lot of influencers.

849
00:41:53,239 --> 00:41:56,160
Speaker 12: We certainly are in the ad markets, We do a

850
00:41:56,160 --> 00:41:59,560
Speaker 12: lot of direct mail, we do TV, and I think

851
00:41:59,600 --> 00:42:02,879
Speaker 12: generally speaking, the fastest way that the resale business has

852
00:42:02,920 --> 00:42:07,040
Speaker 12: grown is through word of mouth and through tastemakers and

853
00:42:07,080 --> 00:42:12,759
Speaker 12: influencers talking about the destigmatization of secondhand and I think

854
00:42:12,960 --> 00:42:17,560
Speaker 12: ten years ago it wasn't cool necessarily to shop secondhand.

855
00:42:17,680 --> 00:42:19,680
Speaker 12: And I think thread Up deserves a lot of credit.

856
00:42:19,680 --> 00:42:22,320
Speaker 12: We deserve a lot of credit for creating momentum in

857
00:42:22,360 --> 00:42:25,160
Speaker 12: an industry where now it's actually one of the coolest

858
00:42:25,160 --> 00:42:25,680
Speaker 12: things to do.

859
00:42:25,719 --> 00:42:26,560
Speaker 4: You talk to young.

860
00:42:26,440 --> 00:42:30,279
Speaker 12: People, you talk to celebrities. It's vintage, it's unique, it's resale,

861
00:42:30,680 --> 00:42:32,800
Speaker 12: and so I think all the stigma has gone away,

862
00:42:32,840 --> 00:42:34,960
Speaker 12: and I think that's really what's going to drive momentum

863
00:42:35,000 --> 00:42:36,640
Speaker 12: in the category over the next ten years.

864
00:42:37,320 --> 00:42:38,960
Speaker 4: Treed Up CEO, James Reinhart.

865
00:42:39,000 --> 00:42:41,279
Speaker 2: Great to have you talk us through the industry and

866
00:42:41,280 --> 00:42:42,520
Speaker 2: the way in which you're navigating it.

867
00:42:42,560 --> 00:42:46,040
Speaker 4: Thank you very much. Indeed, meanwhile, I mean we've.

868
00:42:45,880 --> 00:42:47,440
Speaker 2: Got to go back to what is going to be

869
00:42:47,560 --> 00:42:51,600
Speaker 2: a big event sports technology investors and media investors coming

870
00:42:51,680 --> 00:42:52,560
Speaker 2: up later in the show.

871
00:42:52,560 --> 00:42:53,399
Speaker 4: It's a Disney show.

872
00:42:53,480 --> 00:42:56,640
Speaker 5: Yeah, like Disney shares Softter six tens percent. We're probably

873
00:42:56,680 --> 00:42:59,920
Speaker 5: still even treading water at that level. The latest reporting

874
00:43:00,120 --> 00:43:03,040
Speaker 5: is that Bob Ayga has the support of the big institutionals,

875
00:43:03,040 --> 00:43:04,040
Speaker 5: black Rock, Vanguard.

876
00:43:04,360 --> 00:43:06,200
Speaker 3: The wild card or the unknown.

877
00:43:05,880 --> 00:43:08,160
Speaker 5: Is the retail group you know that traditionally might go

878
00:43:08,239 --> 00:43:10,480
Speaker 5: with an activist, but tune in because we're gonna be

879
00:43:10,520 --> 00:43:11,120
Speaker 5: on it all day long.

880
00:43:11,360 --> 00:43:14,400
Speaker 2: And I think ultimately retail investors tend to go with

881
00:43:14,560 --> 00:43:17,600
Speaker 2: the board that's in place. And certainly, if you've been

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00:43:17,600 --> 00:43:19,880
Speaker 2: in retail investor, you've been bombarded with a whole number

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00:43:19,880 --> 00:43:23,319
Speaker 2: of ads asking you to do just that. But as

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00:43:23,320 --> 00:43:27,239
Speaker 2: we're just discussing with geetha ultimately maybe trans.

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Speaker 4: Kind of one here.

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Speaker 3: The final thing.

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Speaker 5: It's so weird, but one pm Pacific, four Pmison there's

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00:43:30,800 --> 00:43:32,880
Speaker 5: a webcast. I wonder if like it's the most watched

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Speaker 5: AGM of all time.

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Speaker 2: We'll find out all of Omaha might have something to

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Speaker 2: say about that. That does it for this edition of

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Speaker 2: Bluebog Technology.

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Speaker 3: Check out the pod.

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00:43:40,400 --> 00:43:42,880
Speaker 5: You know exactly where to find it, Apple, Spotify, iHeart

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Speaker 5: and on Bloomberg.

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Speaker 3: This is Bloomberg Technology.