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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

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Speaker 1: Eastern on Apple, CarPlay and Android Otto with the Bloomberg

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Speaker 1: Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: Another stock that we're watching today is a Disney. Shares

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Speaker 2: are up by about six tenths of one percent after

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Speaker 2: Bob Iger prevailed yesterday in the shareholder vote meeting. Either

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Speaker 2: Rogannath and Bloomberg Intelligence analysts on US Media is standing

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Speaker 2: by for us KEITHA, What did we learn yesterday about

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Speaker 2: Disney and mister Eiger.

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Speaker 3: Yeah, definitely a huge sigh of relief for both Bob

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Speaker 3: Iger and the management team. I mean it would have been,

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Speaker 3: I think a very very publicly embarrassing thing for him

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Speaker 3: if Pelts had had won. So this is definitely I

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Speaker 3: think gives them some something to cheer about, at least

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Speaker 3: in the near term. But other than that, Alex, I

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Speaker 3: think it's really business as usual.

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Speaker 1: Right.

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Speaker 3: They had their work cut out for them. They know

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Speaker 3: exactly what they need to do, whether it's finding a

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Speaker 3: proper good ESPN digital strategy, whether it's getting the streaming

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Speaker 3: business to profits and more importantly for the board, whether

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Speaker 3: it's chalking out a really bulletproof succession plan this time around.

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Speaker 4: And on that succession plan, is the expectation getha that

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Speaker 4: they will hire from within or will they try to

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Speaker 4: make a big splash by hiring an outsider.

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Speaker 5: How do you think Disney would like to proceed?

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Speaker 3: Disney has always kind of looked within, Paul, and you

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Speaker 3: know this well. I mean the last time that they

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Speaker 3: went external was back in nineteen eighty four. That's when

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Speaker 3: they hired you know, Michael Eisner, right, the Barry Diller protege.

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Speaker 3: But after that, it's always been internal, right, whether it's

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Speaker 3: Bob Bieger, I mean, it was Bob Biger after that

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Speaker 3: for almost fifteen years, and then of course you had

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Speaker 3: Bob Japek for a couple of years, and then you know,

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Speaker 3: we have Bob Bieger two point zero back again. So

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Speaker 3: they've always kind of had, you know more, they've always

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Speaker 3: looked internal. And they do have four solid candidates, so

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Speaker 3: all the division chiefs kind of emerging as potential successor candidates.

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Speaker 3: It's just going to be up to how they groomed them.

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Speaker 3: Is Barbiger going to do something very similar to what

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Speaker 3: he did with you know, Tom's tags and Jay Rizzulo

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Speaker 3: kind of have that coo position for somebody whom he's

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Speaker 3: kind of looking to to elevate.

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Speaker 2: What's the timeframe here, Keitha?

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Speaker 3: For this, it has to happen pretty quickly, Alex. I

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Speaker 3: mean bar Biger's term, which was initially when he came

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Speaker 3: back in November twenty twenty two, was supposed to be

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Speaker 3: two years. They extended that out to four years. So

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Speaker 3: we have until the end of twenty twenty six.

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Speaker 4: Yeah, and he's been known to extend extend extent. I mean,

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Speaker 4: he could do that because most shaholders are like barb

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Speaker 4: Biger's better than anybody else out there, will stick with that.

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Speaker 4: All right, So Keitha's things seem to be settling down

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Speaker 4: a little bit of stability. Returning to Mickey Mouse, how

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Speaker 4: about Paramount Global. It's almost the opposite there. The stock

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Speaker 4: is down six point six percent. Are they going to

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Speaker 4: sell the entire company parts of the company super voting stock?

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Speaker 5: What's going on there?

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Speaker 3: Yeah, So it looks like now they have or they've

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Speaker 3: entered this period of exclusive talks with Skydance Media and

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Speaker 3: Sky Dance Media has kind of been you know this,

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Speaker 3: on again, off again interested party in the Paramount company.

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Speaker 3: But of course they didn't want to come out with

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Speaker 3: a bid for the entire company at least up until

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Speaker 3: this point. They always kind of wanted to do it

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Speaker 3: in a slightly different way by kind of taking control

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Speaker 3: of uh of the voting stock with through National Abusements

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Speaker 3: and the Redstone family. Now it looks like they're kind

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Speaker 3: of going to engineer like a two step process where

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Speaker 3: they first take control of National Amusements and then go

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Speaker 3: about and merge sky Dance with the entire company with Paramount.

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Speaker 3: So still, I mean, there are two there's just more

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Speaker 3: unknowns than knownes. At this point. There seems to be

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Speaker 3: some report out there suggesting that they would need to

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Speaker 3: do an equity deal raise of at least three billion

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Speaker 3: dollar do that's going to be really dilutive for the

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Speaker 3: current shareholders. Again, we don't know exactly how much Sherry

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Speaker 3: Redstone is demanding for her voting stock. There are rumors

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Speaker 3: out there suggesting it's upwards of about two to two

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Speaker 3: and a half billion dollars. She also owns about close

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Speaker 3: to almost a billion dollars in economics take in Paramount.

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Speaker 3: So again, too many unknowns right now, Paul. But you know,

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Speaker 3: we do definitely have concrete talks, that much is for sure.

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Speaker 2: So is the Apollo thing like off the table, right,

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Speaker 2: because that would be more of a piecemeal approach to Paramount, right,

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Speaker 2: even though the cash deal was better.

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Speaker 3: So the Apollo thing was actually initially it was it

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Speaker 3: was piecemeal. So but they only were really interested in

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Speaker 3: the film studio. They did not want the TV networks,

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Speaker 3: They did not want the streaming acid. But it looks

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Speaker 3: like yesterday, you know, when reports emerge about the sky

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Speaker 3: Dance deal, they said that Apollo actually had made a

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Speaker 3: twenty six billion offer and all cash deal for the

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Speaker 3: entire company, which Cherry Redstone for some reason basically said no.

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Speaker 4: To wow, because I'm looking at the enterprise value today

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Speaker 4: about twenty three billions. It would have been a little

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Speaker 4: bit of a premium there. And boy, you know who

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Speaker 4: looks smart is the guys at News Corp. I mean

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Speaker 4: selling their company, you know several years ago, you know.

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Speaker 5: I just the Murdocks. They look kind of smart here.

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Speaker 4: So what's the future. I mean, this is the Paramount Studio, Gith,

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Speaker 4: this is one of the prize jewels in Hollywood. I mean,

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Speaker 4: what happens to this company? I mean, is it can

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Speaker 4: remain a publicly traded company.

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Speaker 5: Is it going to be taken private? What's this? What's

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Speaker 5: mostly outcome?

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Speaker 3: I think the most likely outcome at this point, Paul,

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Speaker 3: is that it still very much remains a public company.

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Speaker 3: You know, we know that David Ellison is really only

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Speaker 3: interested in the studio portion of the business. And you're

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Speaker 3: absolutely right. It's an iconic studio, There's no doubt about it.

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Speaker 3: They have a very very valuable studio lot right in

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Speaker 3: the heart of la that's worth maybe upwards of one

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Speaker 3: point five two billion dollars. So obviously there's a lot

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Speaker 3: of assets that he likes, but only with the studio business.

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Speaker 3: So again the question is, yes, he can keep it

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Speaker 3: a public company, but he might really kind of trim

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Speaker 3: it down, try and find some buyers for the TV network,

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Speaker 3: for probably the streaming platform, and just make this like

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Speaker 3: a pure play kind of a film studio with you know,

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Speaker 3: production and licensing operations very similar to like what lions

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Speaker 3: Gate is doing.

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Speaker 2: Would that command of valuation like a good valuation for

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Speaker 2: that if they did that?

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Speaker 3: So we do know that Apollo came came out with

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Speaker 3: eleven billion offer. That's a pretty decent It's about a

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Speaker 3: thirteen thirteen and a half times EBITDA valuation, which is

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Speaker 3: pretty much in line with where other you know, pure

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Speaker 3: play studios are trading. So probably, yes, somewhere in that

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Speaker 3: in that range.

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Speaker 4: All right, we got you here. Let's ask you about

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Speaker 4: Warner Brothers. Discovery off another one percent today, off twenty

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Speaker 4: four percent this year, down forty three percent over the

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Speaker 4: last year. Any scenario there that's that is worth kind

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Speaker 4: of looking at.

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Speaker 3: I mean, it's just it's been all doom and gloom

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Speaker 3: at Warner Brothers. And really the one, the one metric

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Speaker 3: I think that people are like fixated on for Brothers

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Speaker 3: is EBITDA. You know that when the deal actually went

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Speaker 3: through or when they when they were looking to merge

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Speaker 3: those two companies, they spoke about fourteen billion dollars in EBITDA.

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Speaker 3: This year, probably we're not even going to hit ten billion,

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Speaker 3: and that's really why investors are so upset. Combine that

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Speaker 3: with over forty billion dollars in debt, and that's a

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Speaker 3: recipe for you know, the doom and gloom, and that's

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Speaker 3: exactly what's happening there. So until we kind of get

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Speaker 3: some better metrics, it's not.

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Speaker 4: Going to look bailed on the media industry at the

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Speaker 4: right time.

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Speaker 5: You me, yeah, exactly.

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Speaker 2: I mean, I am going to see you doing well.

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Speaker 2: You're kind of in it right now.

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Speaker 4: My lively.

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Speaker 5: Well, it does kind of. I don't know, but you know,

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Speaker 5: it's just this is.

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Speaker 2: An excellent point. This is an excellent point, John Tucker,

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Speaker 2: that you just went from the other side of the

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Speaker 2: media business. I'm seeing Dune two on Saturday, so I

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Speaker 2: feel like I'm doing my part.

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Speaker 6: That's right.

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Speaker 2: Excellent brothers, excellent movies and excellent excellent movie.

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Speaker 3: It is absolutely brilliant.

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Speaker 2: I like Paramount Plus because of the whole survivor thing

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Speaker 2: because I'm addicted to survivors. So you know, I'm helping.

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Speaker 4: I'm what I need to do, all right, Githa, thanks

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Speaker 4: so much. As always, Keitha rock Nathin. She covers all

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Speaker 4: the media stuff for Bloomberg Intelligence space down in Princeton.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on applecar Play and Android

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Speaker 1: Auto with the Bloomberg Business app. You can also listen

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Speaker 1: live on Amazon Alexa from our flagship New York station.

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Speaker 1: Just say Alexa, play Bloomberg eleven thirty.

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Speaker 2: Let's say with energy for a moment. So Green Plains

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Speaker 2: is basically an ethanol company producer that wants to become

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Speaker 2: an ag tech company, and the CEO is taking this

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Speaker 2: very seriously and doing a lot in the middle of

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Speaker 2: this transition. The stock is down, though twenty three percent

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Speaker 2: in the last year, it is up about two percent today.

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Speaker 2: And we welcome the CEO and president, Todd Becker. He

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Speaker 2: joins us now from Omaha, Nebraska. Todd, it's always good

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Speaker 2: to talk to you. What I love about talking to

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Speaker 2: you is you just give it like it is. And

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Speaker 2: you saw the shift from ethanol into something else before

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Speaker 2: really anyone else did. And the idea is, look, you

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Speaker 2: mix ethanol with gasoline, but if we're all driving evs,

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Speaker 2: do you really need the ethanol. How's it going? How's

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Speaker 2: this transition for you going?

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Speaker 7: It's actually going really well. I mean, thanks for having

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Speaker 7: me again. I'd love talking to you guys. And you know,

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Speaker 7: everything that we've laid out so far is on track

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Speaker 7: to get to twenty twenty five, which is when we

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Speaker 7: said we're really going to be able to start operating

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Speaker 7: on all cylinders, no pun intended.

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Speaker 1: But look, I.

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Speaker 7: Think our base feel still has has strong demand, but

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Speaker 7: there's other value that we can unlock and everything that

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Speaker 7: we do, and there's so much technology out there, and

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Speaker 7: we just announced a great collaboration with Shell, a joint

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Speaker 7: venture that we just basically had a grand opening ceremony

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Speaker 7: that really just takes us next level on what we're

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Speaker 7: doing in ag tech because they, as much as they

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Speaker 7: are one of the largest energy companies in the world,

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Speaker 7: they also have a really interesting view on agriculture and

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Speaker 7: technology and combining what we can do and energy with

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Speaker 7: what we can do in agriculture. And we've just kicked

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Speaker 7: off an amazing partnership that we've been building for several years.

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Speaker 7: So a lot's going on and we're really excited about

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Speaker 7: what's happening.

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Speaker 4: All right, Can you talk to us about this joint

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Speaker 4: venture because when you mentioned Shell, that gets my attention

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Speaker 4: when I'm thinking about kind of biofuels companies like yourselves

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Speaker 4: kind of getting together with traditional traditional energy companies.

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Speaker 7: Yeah, So, look, what Shell's looking for is more low

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Speaker 7: carbon feedstocks. That's the most important thing to them. And

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Speaker 7: what we're looking for is more low carbon ingredients for

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Speaker 7: food and for feed and so we have this technology.

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Speaker 7: We bought a company a few years ago which we

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Speaker 7: think is one of the leading ag tech companies in

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Speaker 7: the world called flu Equipped Technologies, and they have a

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Speaker 7: separation technology that basically just puts something into their machine

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Speaker 7: and it separates it out into all really interesting ingredients.

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Speaker 7: Shell on the other hand, had a chemical process that

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Speaker 7: basically unlocks what's left on different parts of agricultural waste

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Speaker 7: or fiber or anything that's getting processed that we couldn't

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Speaker 7: go after to start. And when we put these two together,

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Speaker 7: basically you can combine their chemical process to liberate oils

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Speaker 7: and proteins and other things that are stuck on sugars

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Speaker 7: that are stuck within processes, and then we take it

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Speaker 7: from there and we can separate them all out. So

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Speaker 7: it's really an amazing technology collaboration. We want it so

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Speaker 7: we can get more sugars and proteins. They want it

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Speaker 7: so they can unlock more from the standpoint of vegetable

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Speaker 7: oil so they can make renewable diesel and other things

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Speaker 7: like that, as well as the last part of it

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Speaker 7: is that we could finally unlock the sugar that's stuck

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Speaker 7: within the fiber, and that's cellulostic sugars. And for years

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Speaker 7: and years and years, people have been trying to crack

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Speaker 7: this code on cellulosic alcohol and fuels and that dream

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Speaker 7: that people have had, and this is one thing that

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Speaker 7: potentially unlocks that whole dream of getting every piece of

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Speaker 7: value out of every piece of that corn kernel. And

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Speaker 7: the great thing about this technology is it's just not

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Speaker 7: limited to a single commodity. It's actually agricultural feedstock agnostic.

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Speaker 7: You could drop a lot of different things in this technology.

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Speaker 7: So we think it revolutionizes agricultural processing if it works,

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Speaker 7: of course, revolutionizes agricultural processing globally. Bio refining globally unlocks

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Speaker 7: all of the value of what we do in everything

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Speaker 7: from food and fuel and feed. And it's the first time,

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Speaker 7: really we think that a major agricultural company, and one

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Speaker 7: of the first times a major agricultural company and a

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Speaker 7: major energy company get together to use everything we do

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Speaker 7: to make all of the different different products that we need.

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Speaker 2: So Todd, it does sound amazing, and I like the

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Speaker 2: idea of like liberating all the parts of the corn.

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Speaker 2: It's it's a great phrase It's a two full question

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Speaker 2: for me. When you get the stuff from that, what

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Speaker 2: do you use it for? And how expensive is it

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Speaker 2: to sort of ramp and scale all this up.

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Speaker 8: You know.

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Speaker 7: The great thing is is that over the last several years,

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Speaker 7: as we've been transforming our company, we've deployed about three

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Speaker 7: hundred and fifty million to four hundred million dollars in

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Speaker 7: the separation technology already, so we're ready using it. So

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Speaker 7: our technology has proven already, so we've we've put it

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Speaker 7: at several of our facilities and joint venture facility, so

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Speaker 7: we are already beginning to separate most of what happens

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Speaker 7: in a kernel of corn and other products. So what

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Speaker 7: this does You lay this over it and it's all

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Speaker 7: the remaining things that we can't get they can get

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Speaker 7: it chemically in their process. Is we just could never

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Speaker 7: get it that way because that's not what we did

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Speaker 7: as a company. So, you know, the cost we hope,

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Speaker 7: we're hoping because we've already deployed technology of five of

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Speaker 7: our sites, which is six coming on today, We're going

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Speaker 7: when we overlay this technology on top of it, we

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Speaker 7: should be very cost efficient. The first one we built

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Speaker 7: it under really nobody really knew what we were building.

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Speaker 7: But in ne York, Nebraska, we already have the first

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Speaker 7: build that we've been spending years doing quietly under the

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Speaker 7: radar screen, putting our technologies together, and we're going to

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Speaker 7: start that up in about a month or two. And

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Speaker 7: that's really what what we had our grand opening and

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Speaker 7: our announcement on it was just a very quiet collaboration.

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Speaker 7: But really what it does it extracts everything available. So

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Speaker 7: all we leave corn oil when we send out, when

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Speaker 7: we send out our fiber, we can go after that

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Speaker 7: that can be using renewable diesel and sustainable aviation fuel.

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Speaker 7: We use sugars, We leave sugars on our fiber that

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Speaker 7: goes out as animal feed. We can go get that

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Speaker 7: which can be made into say elastic second generation low

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Speaker 7: carbon ethanol. There's more protein to go after we send

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Speaker 7: out very low value protein. Still, this technology together unlocks

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Speaker 7: ultra high protein that we're already shipping to pet food

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Speaker 7: and salmon producers around the world. It just gives us more,

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Speaker 7: you know. And then and then lastly, you know, what

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Speaker 7: we're able to do is take all of that and

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Speaker 7: think about low carbon alcohol for things like sustainable aviation fuel.

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Speaker 7: That's going to be coming down in the future because

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Speaker 7: the only true path to volumes of sustainable aviation fuel

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Speaker 7: is going to come through alcohol.

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Speaker 2: So and I'm assuming so if if it's cost competitive,

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Speaker 2: if you overlay the technology, is that cost for you guys?

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Speaker 2: It doesn't raise the price of the products that you're

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Speaker 2: then having to sell.

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Speaker 7: No, Actually, you know, we're just able to unlock more.

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Speaker 7: We're sending it already out as a as a ever

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Speaker 7: thing left we send out as a more of a

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Speaker 7: lower value product. So it unlocks all of that. And

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Speaker 7: now now what we can do is actually make great

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Speaker 7: products and get much higher values for what we're what

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Speaker 7: we're going to produce than what we're doing today. And

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Speaker 7: the most interesting thing about this technology, Alex is is

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Speaker 7: I can either drop a corn, you know, to the

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Speaker 7: basic of it, I could drop a kernel of corn

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Speaker 7: in there, But I could also drop a soybean in

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Speaker 7: there and blow up and chemically separate that and really

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Speaker 7: disrupt what's happening potentially in soybean processing. Or I can

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Speaker 7: drop a kernel of wheat in there, yeah, and go

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Speaker 7: unlock all of the protein and the oils and the

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Speaker 7: sugars and all of those things. That nobody's been able

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Speaker 7: to go after in any in any kind of early

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Speaker 7: efficient way.

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Speaker 2: So Todd, if I'm looking at your stock, it's up

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Speaker 2: ten percent almost since that announcement, but it's not had

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Speaker 2: a good full year, and I'm wondering, like, when do

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Speaker 2: you feel like you should be getting credit for this?

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Speaker 2: And I know you're going to say, like yesterday, but

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Speaker 2: you know what I'm saying, Like.

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Speaker 7: When we started our transformation to stock was eight, it

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Speaker 7: ran up into the you know, the high thirty, and

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Speaker 7: that we're back down. You know, we brought the couple

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Speaker 7: of reasons. I think we're down a little bit this

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Speaker 7: year is well not a little bit, but you know,

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Speaker 7: we brought our MLP in, so we wanted to clean

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Speaker 7: up our capital structure. So we were able to bring

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Speaker 7: that in and we and we handed our shares to

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Speaker 7: MLP shareholders that you know, they were earning a pretty

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Speaker 7: high yield. And I think that puts some pressure on

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Speaker 7: our stock as well, as we've seen some drops in

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Speaker 7: prices and in ethanol is trading a dollar under gas,

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Speaker 7: and so now we're getting more competitive again. And but

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Speaker 7: we really saw a dropping veg oil price. Vegetable oil

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Speaker 7: pricing here recently, but now that's starting to come back,

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Speaker 7: which I think is putting it bid back into our

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Speaker 7: stock as well. So you know, we're about a year.

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Speaker 7: You know, what you've said is our path to twenty

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Speaker 7: twenty five, twenty four is our transition year. We need

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Speaker 7: to deliver on some some financial results this year, and

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Speaker 7: I think we're going to be able to do that

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Speaker 7: as a year progresses. But you know, we've made investments,

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Speaker 7: and you know, the whole sector really kind of fell

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Speaker 7: out of favor anyways, and I think we got dragged

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Speaker 7: down with that. But we have a great technology, we

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Speaker 7: have a great platform, We've got great products. We're going

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Speaker 7: to start our first and I know we talked about

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Speaker 7: this a few years ago, our first clean sugar facility.

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Speaker 7: We're going to make food grade dextros for everything from

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Speaker 7: Gumbi bears to to Seltzer drinks. That's never happened in

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Speaker 7: the history of our industry. We're starting that up next

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Speaker 7: month and later this month as well. So there's a

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Speaker 7: lot going on. We're right towards the back end of

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Speaker 7: what we said we were going to do, and now

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Speaker 7: it's starting to all come to fruition, you know, and

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Speaker 7: the pressure came across the whole sector. If you look

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Speaker 7: across the whole sector and agricultural processing.

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Speaker 2: You finally said the word that got John Tucker here

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Speaker 2: in the studio excited. You said gummy bears.

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Speaker 5: And I was writing, I got distracted. I'm sorry, but.

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Speaker 2: You know ethanol whate was okayne, but you know, gummy bears,

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Speaker 2: no sugar. He was paying attention. I hate Todd, really

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Speaker 2: appreciate it. Always going to catch up with you. Todd Becker,

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Speaker 2: President and CEO of Green Plans, joining us from Nebraska.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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00:17:52,880 --> 00:17:55,960
Speaker 1: weekdays at ten am Eastern on fo CAR playing Enroud

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcast, or watch us live on YouTube.

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Speaker 2: So every day Bloomberg has a big take where they

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Speaker 2: really dive deep into a topic and a story and

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Speaker 2: they're quite good. And there's a podcast and it's a

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Speaker 2: written piece and I highly recommend that you check it out.

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Speaker 2: And the one today is particularly interesting. The title Hubris

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Speaker 2: at Hurts Doomed its massive bet on one hundred thousand teslas.

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Speaker 2: It's basically the rise and fall over the last few

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Speaker 2: years of Hurts and its relationship with Tesla and EV's

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Speaker 2: Eric Shatsker and David Welch responsible for this article. We

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Speaker 2: have Eric Shatsker, who is now at Bloomberg New Economy

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Speaker 2: editorial director joining us. It was a great piece, and

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Speaker 2: there were things about Tesla's that, like I didn't know

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Speaker 2: were problems, like if you don't know how to drive

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Speaker 2: it and you r of a sudden, put the pedal

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Speaker 2: to the metal, you go really fast and then you crash.

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Speaker 2: Like these little details I found so interesting. Walk us

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Speaker 2: through what you learned and what the piece is about.

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Speaker 9: Well, you just touched on one of those those things, Alex,

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Speaker 9: which is that the experience of a Tesla owner is

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Speaker 9: very different from the experience of a Tesla renter. And

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Speaker 9: going into this big bet on one hundred thousand Teslas

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Speaker 9: they placed in order for one hundred thousand Teslas. In fact,

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Speaker 9: back in twenty twenty one, the new owners at Hurtz

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Speaker 9: didn't appreciate that there were no data to be fair

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Speaker 9: on what it was like for our rental car company

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Speaker 9: to have evs in the fleet, because none did. Heurtz

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Speaker 9: was going to be the first, and so they did

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Speaker 9: look at the data how to Tesla's perform when they're

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Speaker 9: owned by individuals, And generally speaking, teslas perform well. They

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Speaker 9: don't require a lot of maintenance. Obviously, refueling the car,

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Speaker 9: so to speak, is a matter of plugging it in.

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Speaker 9: But if it's your Tesla, it probably sits in your garage,

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Speaker 9: or it sits in your driveway, or maybe if you

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Speaker 9: live in a city like New York, it's at a

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Speaker 9: parking garage and you've had a charger put in. That's

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Speaker 9: all fine, and these people tend not to get into

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Speaker 9: a lot of accidents, and they don't have range anxiety

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Speaker 9: because they own the car, they made the decision to

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Speaker 9: buy it. It's a totally different story when you get

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Speaker 9: off of a Red Eye flight and stroll up to

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Speaker 9: the Hurtz counter and are told that no, I'm sorry,

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Speaker 9: the car you reserved is not available, but we're giving

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Speaker 9: you a Tesla. If you've never been behind the wheel

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Speaker 9: of an ev it can be a terrifying experience.

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Speaker 8: You don't know.

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Speaker 9: You don't want to have to find a charger in

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Speaker 9: the wild. You don't know what this instantaneous breaking.

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Speaker 2: Is Liken the car, you don't.

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Speaker 9: Realize that it has rocket like acceleration, and as a result,

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Speaker 9: Hurts with its Tesla fleet, started running into all kinds

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Speaker 9: of problems. They were crashing and it's very expensive to

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Speaker 9: repair a Tesla. In many cases they have to be

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Speaker 9: junked because insurance companies are worried about the damage that

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Speaker 9: might have occurred to the battery. People didn't want to

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Speaker 9: rent them, so the demand was isn't there? And then

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Speaker 9: of course Elon Musk cut Tesla prices by thirty percent

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Speaker 9: and kind of blew a hole into Hurtz's balance.

436
00:21:07,320 --> 00:21:08,360
Speaker 10: Sheet economic mode.

437
00:21:08,520 --> 00:21:12,520
Speaker 4: How did Hurts get into this position, It's a good question.

438
00:21:12,680 --> 00:21:16,040
Speaker 9: This was a rental car company, the only major rental

439
00:21:16,080 --> 00:21:19,159
Speaker 9: car company that went bankrupt in the early days of

440
00:21:19,160 --> 00:21:19,640
Speaker 9: the pandemic.

441
00:21:19,680 --> 00:21:21,480
Speaker 4: I'm a gold circle member of Hurts.

442
00:21:21,520 --> 00:21:23,879
Speaker 5: By the way, I just strolled right up to my car, John.

443
00:21:24,000 --> 00:21:29,000
Speaker 9: Some people have very good experiences with Hertz, including Paul Sweeney. Evidently,

444
00:21:30,000 --> 00:21:32,720
Speaker 9: so Herts went bankrupt. It was bought at a bankruptcy

445
00:21:32,760 --> 00:21:36,440
Speaker 9: in June twenty twenty one by two professional investors. Tom

446
00:21:36,480 --> 00:21:41,120
Speaker 9: Wagner runs Nighthead Capital and Greg O'Hara is the founding

447
00:21:41,320 --> 00:21:44,520
Speaker 9: partner at Stari's Management. They raised a billion and a

448
00:21:44,560 --> 00:21:47,879
Speaker 9: half dollar fund. They wanted to find travel and leisure

449
00:21:47,920 --> 00:21:50,840
Speaker 9: companies that had been crushed by the pandemic, but of

450
00:21:50,880 --> 00:21:55,000
Speaker 9: course which in theory would soar once the economy reopened,

451
00:21:55,000 --> 00:21:57,879
Speaker 9: and Hurts seemed like a great candidate. And actually that

452
00:21:58,040 --> 00:22:02,520
Speaker 9: part of the thesis played out perfectly once the economy reopened.

453
00:22:02,520 --> 00:22:06,200
Speaker 9: In fact, before the economy reopened, when people realized getting

454
00:22:06,240 --> 00:22:08,159
Speaker 9: into a car and driving somewhere doesn't put me at

455
00:22:08,240 --> 00:22:12,520
Speaker 9: risk of COVID at all, demand for rentals went sky high,

456
00:22:13,400 --> 00:22:17,160
Speaker 9: and so coming out of this acquisition from bankruptcy, Hurts

457
00:22:17,320 --> 00:22:21,080
Speaker 9: was crushing it. But they had a transformational plan to

458
00:22:21,160 --> 00:22:25,600
Speaker 9: turn it into a largely electrified rental car company, and

459
00:22:25,640 --> 00:22:29,399
Speaker 9: that's where everything went pear shaped. I talked about it,

460
00:22:29,400 --> 00:22:34,000
Speaker 9: the demand, the damage, the price cuts, and we say

461
00:22:34,040 --> 00:22:38,240
Speaker 9: it's a tale of hubris, because in many respects it is.

462
00:22:38,320 --> 00:22:41,439
Speaker 9: Of course, everything looks clear in hindsight, it did sound

463
00:22:41,560 --> 00:22:44,800
Speaker 9: like an incredibly good idea of the time, and I

464
00:22:44,800 --> 00:22:46,879
Speaker 9: think for the sake of the planet, it would be

465
00:22:47,000 --> 00:22:50,600
Speaker 9: nice if you could electrify a rental car company and

466
00:22:50,760 --> 00:22:55,080
Speaker 9: save you know, the environment from all the gasoline that

467
00:22:55,160 --> 00:22:58,280
Speaker 9: gets poured into rental cars. But it just doesn't work

468
00:22:58,320 --> 00:23:03,640
Speaker 9: in practice. And whether it's arrogance, whether it's hubris, whether

469
00:23:03,680 --> 00:23:05,840
Speaker 9: it's blind optimism, it could be.

470
00:23:05,840 --> 00:23:07,280
Speaker 5: A combination of all those three.

471
00:23:07,400 --> 00:23:10,480
Speaker 9: These new owners, these professional investors, one who runs a

472
00:23:10,480 --> 00:23:12,840
Speaker 9: hedge fund, the other who runs a private equity firm,

473
00:23:13,240 --> 00:23:15,679
Speaker 9: thought that they had an answer for this industry that

474
00:23:15,720 --> 00:23:20,440
Speaker 9: the industry itself had ignored for years. And the truth

475
00:23:20,440 --> 00:23:23,520
Speaker 9: of the matter is running, running any company in the

476
00:23:23,560 --> 00:23:28,600
Speaker 9: industry is tough, right, requires some experience, maybe.

477
00:23:28,280 --> 00:23:31,000
Speaker 2: And they and the funny thing is, well, not for them,

478
00:23:31,000 --> 00:23:33,520
Speaker 2: but is that they could be right just either a

479
00:23:33,520 --> 00:23:35,520
Speaker 2: little earlier, a little late, depending on how you look

480
00:23:35,600 --> 00:23:35,920
Speaker 2: at it.

481
00:23:36,480 --> 00:23:38,879
Speaker 9: You know, whenever we talk about early, right, it's the

482
00:23:38,920 --> 00:23:41,919
Speaker 9: broken clock thing, right, broken clock is right two times

483
00:23:41,960 --> 00:23:47,040
Speaker 9: a day. And the case of being early, I.

484
00:23:46,960 --> 00:23:48,920
Speaker 4: Thought it was a great strategy when I first heard

485
00:23:48,920 --> 00:23:52,680
Speaker 4: it just sounded hit so many buttons there. But I

486
00:23:52,720 --> 00:23:54,280
Speaker 4: guess that kind of goes to the bigger question, which

487
00:23:54,320 --> 00:23:57,960
Speaker 4: we asked the auto industry were at large, is have

488
00:23:58,040 --> 00:23:59,919
Speaker 4: we seen peak interest in evs?

489
00:24:00,119 --> 00:24:01,920
Speaker 2: This is why I found the article so interesting because

490
00:24:01,920 --> 00:24:03,639
Speaker 2: there were things that I didn't think about, in that

491
00:24:04,040 --> 00:24:06,800
Speaker 2: they don't have dealerships, right, they don't have a relationship

492
00:24:06,840 --> 00:24:09,399
Speaker 2: with dealerships. So like when my super retire gets, you know,

493
00:24:09,800 --> 00:24:11,520
Speaker 2: messed up, I did just drive it in and then

494
00:24:11,560 --> 00:24:13,640
Speaker 2: they fix it and then we drive out. Kind of thing.

495
00:24:13,920 --> 00:24:16,320
Speaker 2: You can't do that with a Tesla. I never thought

496
00:24:16,359 --> 00:24:18,760
Speaker 2: of that. For example, I never thought of how difficult

497
00:24:18,760 --> 00:24:20,000
Speaker 2: it would be to all of a sudden get off

498
00:24:20,040 --> 00:24:22,040
Speaker 2: a plane and go sit in a Tesla. It's weird

499
00:24:22,119 --> 00:24:24,400
Speaker 2: enough getting in the morning to a Tesla and getting

500
00:24:24,440 --> 00:24:26,520
Speaker 2: in the backseat. I can't imagine just being shoved into

501
00:24:26,560 --> 00:24:28,119
Speaker 2: the front seat and having to drive it at the

502
00:24:28,119 --> 00:24:30,840
Speaker 2: same time. And these little details I found to be

503
00:24:30,960 --> 00:24:31,840
Speaker 2: very prevocative.

504
00:24:32,240 --> 00:24:36,280
Speaker 9: Well, they are, as you say, something of an indication

505
00:24:36,440 --> 00:24:39,479
Speaker 9: as to why demand for EV's right now is slowing.

506
00:24:39,600 --> 00:24:40,199
Speaker 4: Hurts.

507
00:24:41,200 --> 00:24:43,119
Speaker 9: You know, we can play on the fact that it

508
00:24:43,160 --> 00:24:46,080
Speaker 9: even has yellow as part of its logo. Was the

509
00:24:46,119 --> 00:24:49,520
Speaker 9: canary in the coal mine for the EV industry. True

510
00:24:49,680 --> 00:24:52,280
Speaker 9: what began to happen it hurts is what the rest

511
00:24:52,320 --> 00:24:54,360
Speaker 9: of the industry is beginning to wake up to that

512
00:24:54,440 --> 00:24:56,760
Speaker 9: all of the evs that are being cranked out right

513
00:24:56,800 --> 00:25:01,160
Speaker 9: now may not have a natural buyer because people aren't

514
00:25:01,240 --> 00:25:04,640
Speaker 9: enough chargers out there. People haven't gotten over this idea

515
00:25:05,119 --> 00:25:08,399
Speaker 9: that it's a different driving experience. People, as we all know,

516
00:25:08,560 --> 00:25:13,280
Speaker 9: are very personal about their cars, right, it's an extension

517
00:25:13,880 --> 00:25:18,440
Speaker 9: of themselves. And you don't want your arm to feel

518
00:25:18,440 --> 00:25:20,560
Speaker 9: like it doesn't belong on your body, and that's in

519
00:25:20,600 --> 00:25:23,800
Speaker 9: some respects how people feel about getting behind the wheel

520
00:25:23,840 --> 00:25:24,240
Speaker 9: of an EV.

521
00:25:24,520 --> 00:25:28,760
Speaker 4: Thirty seconds left, Eric, if I wanted a Tesla from

522
00:25:28,800 --> 00:25:29,919
Speaker 4: Hurts tomorrow, could I get one?

523
00:25:30,000 --> 00:25:32,199
Speaker 9: Or are they just you can? They are beginning to

524
00:25:32,200 --> 00:25:34,800
Speaker 9: sell down the fleet. Though they had sixty thousand evs,

525
00:25:34,880 --> 00:25:37,480
Speaker 9: they've put about twenty thousand Teslas on the market. In fact,

526
00:25:37,480 --> 00:25:39,600
Speaker 9: if you want to buy a Tesla, that was a

527
00:25:39,600 --> 00:25:41,960
Speaker 9: great time to buy one used in fact, even off

528
00:25:42,280 --> 00:25:46,280
Speaker 9: the Hurts website, because they are way cheaper than they've

529
00:25:46,440 --> 00:25:47,359
Speaker 9: ever been before.

530
00:25:47,880 --> 00:25:50,159
Speaker 4: All Right, I tell you, folks, this is great stuff.

531
00:25:51,200 --> 00:25:52,080
Speaker 4: Big Take stories.

532
00:25:52,119 --> 00:25:52,560
Speaker 5: We love them.

533
00:25:52,960 --> 00:25:54,960
Speaker 4: We love to support the Big Take reporting because it

534
00:25:55,000 --> 00:25:59,280
Speaker 4: is deep, really cool stories and really cool, well researched,

535
00:25:59,320 --> 00:26:02,200
Speaker 4: role sourced articles. You can read the big Take stuff.

536
00:26:02,280 --> 00:26:05,520
Speaker 4: Eric story today on all the Big Take stories on

537
00:26:05,560 --> 00:26:07,480
Speaker 4: the terminal place. I'm going to Bloomberg dot com slash

538
00:26:07,520 --> 00:26:11,320
Speaker 4: Big Take get access there. Eric Shatsker Bloomberg New Economy

539
00:26:11,480 --> 00:26:14,720
Speaker 4: Editorial Director. We appreciate getting it in the Bloomberg Interactive

540
00:26:14,720 --> 00:26:15,720
Speaker 4: Broker Studio.

541
00:26:16,920 --> 00:26:20,800
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

542
00:26:20,880 --> 00:26:24,400
Speaker 1: weekdays at ten am Eastern on applecard Play and Android

543
00:26:24,440 --> 00:26:27,200
Speaker 1: Auto with the Bloomberg Business app. You can also listen

544
00:26:27,320 --> 00:26:30,440
Speaker 1: live on Amazon Alexa from our flagship New York station.

545
00:26:30,800 --> 00:26:34,320
Speaker 1: Just say Alexa Play Bloomberg eleven thirty.

546
00:26:35,320 --> 00:26:37,000
Speaker 4: I'm going to talk technology. I got a lot of

547
00:26:37,040 --> 00:26:39,639
Speaker 4: things on the play here technology wise on a rock.

548
00:26:39,680 --> 00:26:42,639
Speaker 4: Rana joins his senior technology channels for Bloomberg Intelligence. He's

549
00:26:42,640 --> 00:26:45,440
Speaker 4: sharing our Bloomberg Interactive Brokers studio in New York City

550
00:26:45,440 --> 00:26:51,320
Speaker 4: because Bloomberg Intelligence is hosting an AI seminar conference Bloomberg

551
00:26:51,359 --> 00:26:52,480
Speaker 4: Headquarters this afternoon.

552
00:26:52,520 --> 00:26:52,840
Speaker 5: Is that right?

553
00:26:52,920 --> 00:26:53,120
Speaker 1: Yeah?

554
00:26:53,160 --> 00:26:54,240
Speaker 10: Twelve thirty onwards.

555
00:26:54,359 --> 00:26:58,080
Speaker 11: A lot of companies Google, Microsoft, Salesforce.

556
00:26:57,480 --> 00:26:59,000
Speaker 10: Adobe, I mean it's we have.

557
00:26:59,000 --> 00:27:01,480
Speaker 4: A and lots of smart investors are gonna be there, right,

558
00:27:01,640 --> 00:27:02,320
Speaker 4: lots of spart.

559
00:27:02,160 --> 00:27:04,560
Speaker 2: From But I'm martyring a panel and you said that

560
00:27:04,600 --> 00:27:06,760
Speaker 2: I could ask dumb questions though? Is that? Does that

561
00:27:06,800 --> 00:27:07,399
Speaker 2: still hold?

562
00:27:08,359 --> 00:27:08,560
Speaker 1: No?

563
00:27:08,560 --> 00:27:10,880
Speaker 10: No, You're gonna you're gonna do really right because.

564
00:27:10,680 --> 00:27:13,600
Speaker 2: I'm like, I'm serious, I'm no way I expert here. Yeah,

565
00:27:13,720 --> 00:27:14,080
Speaker 2: so I.

566
00:27:14,000 --> 00:27:16,400
Speaker 4: Wanted to start with this story of this hubbub thing.

567
00:27:16,560 --> 00:27:19,359
Speaker 4: What what is hub Spot? And it's a thirty billion

568
00:27:19,400 --> 00:27:23,080
Speaker 4: dollar market cap company. Yeah, they can't be acquired.

569
00:27:23,080 --> 00:27:26,280
Speaker 11: They're too big for exactly my point because they see

570
00:27:26,320 --> 00:27:27,399
Speaker 11: from a market share point of.

571
00:27:27,400 --> 00:27:28,480
Speaker 5: Vie summarize the story.

572
00:27:28,520 --> 00:27:33,480
Speaker 11: Because it's a CM software company, HubSpot. They primarily sell

573
00:27:33,520 --> 00:27:37,040
Speaker 11: to small and medium businesses. It's a high growth company.

574
00:27:37,119 --> 00:27:40,560
Speaker 11: It's done very well. It is you know, it is

575
00:27:40,600 --> 00:27:43,479
Speaker 11: one of the favorite stocks stocks for people, I mean,

576
00:27:43,600 --> 00:27:44,280
Speaker 11: a growth stock.

577
00:27:45,160 --> 00:27:48,159
Speaker 4: But the story today is that alphabet This is a

578
00:27:48,240 --> 00:27:50,920
Speaker 4: Royter's reporting that alphabet is I think Bloomberg's Matt match

579
00:27:51,000 --> 00:27:54,600
Speaker 4: it Alphabets perhaps is and talks to acquire this company.

580
00:27:54,600 --> 00:27:56,280
Speaker 4: And again this company has a market cap at thirty

581
00:27:56,280 --> 00:27:58,520
Speaker 4: four billion dollars, which automatically means.

582
00:28:00,160 --> 00:28:01,000
Speaker 5: Regulars are not going to.

583
00:28:00,920 --> 00:28:02,960
Speaker 11: Allow That's that's my biggest thing.

584
00:28:03,000 --> 00:28:03,240
Speaker 10: See.

585
00:28:03,520 --> 00:28:05,760
Speaker 11: One of the things is Google does not play a

586
00:28:05,760 --> 00:28:10,600
Speaker 11: lot into the enterprise applications world, which is Salesforce, Workday, Microsoft.

587
00:28:10,840 --> 00:28:12,880
Speaker 11: You know, Google has some Google Sheets and a few

588
00:28:12,880 --> 00:28:15,480
Speaker 11: other products, but it's really not a big player in

589
00:28:15,520 --> 00:28:20,280
Speaker 11: the cloud applications area as much as you know somebody

590
00:28:20,280 --> 00:28:20,520
Speaker 11: like a.

591
00:28:20,480 --> 00:28:23,920
Speaker 10: Salesforce would do. But this could be a big deal.

592
00:28:23,960 --> 00:28:25,359
Speaker 11: I mean, if that it happens, it you know, it

593
00:28:25,400 --> 00:28:28,760
Speaker 11: completely shakes up the competitive landscape. But as Paul mentioned,

594
00:28:28,800 --> 00:28:30,840
Speaker 11: I mean, it's going to be tough for regulators to

595
00:28:30,840 --> 00:28:32,240
Speaker 11: approve anything that big.

596
00:28:32,640 --> 00:28:35,320
Speaker 2: Yeah, exactly. But then there are so many software companies

597
00:28:35,359 --> 00:28:36,840
Speaker 2: at some point they're going to have to do some

598
00:28:37,520 --> 00:28:39,000
Speaker 2: M and A. Right, there's like a bazillion of them.

599
00:28:39,040 --> 00:28:40,200
Speaker 2: I honestly can't keep them straight.

600
00:28:40,280 --> 00:28:42,600
Speaker 11: No, I agree with everything that you're saying, But the

601
00:28:42,720 --> 00:28:44,760
Speaker 11: question is who the buyer is going to be the

602
00:28:44,840 --> 00:28:47,680
Speaker 11: problem in this case or in a lot of these

603
00:28:47,720 --> 00:28:50,920
Speaker 11: cases is regulators are very tough on large you know,

604
00:28:51,000 --> 00:28:54,080
Speaker 11: of the big tech giants buying software come or any

605
00:28:54,120 --> 00:28:55,240
Speaker 11: company that, how are they going to.

606
00:28:55,200 --> 00:28:57,880
Speaker 2: Feel about Apple and robots. So here's the So this

607
00:28:57,920 --> 00:29:00,320
Speaker 2: Pokemon was on TV yesterday. So this is Mark and

608
00:29:00,320 --> 00:29:03,040
Speaker 2: broke the story that Apple apparently as teams investigating a

609
00:29:03,080 --> 00:29:05,800
Speaker 2: push into personal robotics, and that's a feel but the

610
00:29:05,800 --> 00:29:08,959
Speaker 2: potential to become one of the companies ever shifting quote

611
00:29:09,200 --> 00:29:12,200
Speaker 2: next big things. This is according to people familiar with

612
00:29:12,240 --> 00:29:15,520
Speaker 2: the situation they were looking at, say, robots that can

613
00:29:15,520 --> 00:29:20,520
Speaker 2: follow users around their home, for example, and exactly, and

614
00:29:20,560 --> 00:29:23,800
Speaker 2: they have also deployed an advanced tabletop home device that

615
00:29:23,920 --> 00:29:25,959
Speaker 2: uses robotics to move a display around.

616
00:29:26,440 --> 00:29:28,560
Speaker 4: What because this.

617
00:29:28,680 --> 00:29:33,160
Speaker 11: Means so, I you know, I see Samson showed a

618
00:29:33,280 --> 00:29:35,959
Speaker 11: demo of a robot that's following around and you know,

619
00:29:36,000 --> 00:29:37,200
Speaker 11: you're working out and all.

620
00:29:37,080 --> 00:29:37,680
Speaker 10: Sorts of stuff.

621
00:29:37,680 --> 00:29:39,920
Speaker 11: So these things don't really move the needle. It's a

622
00:29:40,000 --> 00:29:44,320
Speaker 11: fancy stuff to be part of the you know, Apple ecosystem.

623
00:29:44,440 --> 00:29:46,560
Speaker 11: But you know, Frankly, I mean, how many can you

624
00:29:46,640 --> 00:29:48,680
Speaker 11: sell and how much money can you make? So I'm

625
00:29:49,000 --> 00:29:50,760
Speaker 11: I'm you know, doesn't get me excited.

626
00:29:50,880 --> 00:29:51,920
Speaker 10: Frankly, Yeah, I.

627
00:29:51,920 --> 00:29:53,880
Speaker 4: Mean I think the so as we think about Apple,

628
00:29:55,680 --> 00:29:57,440
Speaker 4: it seems to me the next big thing to use

629
00:29:57,480 --> 00:29:59,880
Speaker 4: that term has got to be you have to give

630
00:30:00,320 --> 00:30:04,680
Speaker 4: shareholders and AI play. Oh yeah, absolutely, and if and

631
00:30:04,840 --> 00:30:07,520
Speaker 4: perhaps it will occur as soon as their developer conference

632
00:30:07,600 --> 00:30:10,400
Speaker 4: in Juque. What do you think, whether it's this year

633
00:30:10,520 --> 00:30:13,480
Speaker 4: or next, what do you think a viable AI play

634
00:30:13,560 --> 00:30:14,360
Speaker 4: is for Apple?

635
00:30:14,840 --> 00:30:18,240
Speaker 11: Think about it that our phone is a medium for anything.

636
00:30:18,720 --> 00:30:21,080
Speaker 11: If I give you a right now, if I have to.

637
00:30:21,200 --> 00:30:23,440
Speaker 11: Let's say, ask a question to Open Ai. I open

638
00:30:23,520 --> 00:30:26,160
Speaker 11: the phone, go into the open Ai app and write

639
00:30:26,200 --> 00:30:29,040
Speaker 11: my querdi. Imagine you don't have to do any of

640
00:30:29,040 --> 00:30:31,479
Speaker 11: that stuff. You straight away ask CID that question and

641
00:30:31,520 --> 00:30:34,200
Speaker 11: you get a very good answer. Right now, the answers

642
00:30:34,200 --> 00:30:37,200
Speaker 11: aren't very good. So that's the step that if they

643
00:30:37,240 --> 00:30:40,000
Speaker 11: can figure out that algorithm in between, I think it's

644
00:30:40,000 --> 00:30:40,360
Speaker 11: going to.

645
00:30:40,320 --> 00:30:41,160
Speaker 10: Do them very well.

646
00:30:41,200 --> 00:30:42,840
Speaker 2: Did they figure it out or do they work with

647
00:30:42,920 --> 00:30:45,680
Speaker 2: Google and stuff for Microsoft to figure it out?

648
00:30:45,760 --> 00:30:46,920
Speaker 10: That's a very good question.

649
00:30:46,960 --> 00:30:49,840
Speaker 11: And you know Mark had reported that if they've worked

650
00:30:49,840 --> 00:30:51,840
Speaker 11: with In my view, if they work with Google, I

651
00:30:51,840 --> 00:30:54,520
Speaker 11: think it's going to be much faster. I think if

652
00:30:54,520 --> 00:30:57,600
Speaker 11: they work with open Ai saying it's going to be faster,

653
00:30:58,120 --> 00:31:00,280
Speaker 11: just because we've only heard that they got trad of

654
00:31:00,320 --> 00:31:03,600
Speaker 11: the car division a few months ago, reallocated some engineers there.

655
00:31:03,880 --> 00:31:05,840
Speaker 11: You know, if they had something, they would have deployed it,

656
00:31:06,200 --> 00:31:08,480
Speaker 11: you know, or would have showcased it. So if they're

657
00:31:08,520 --> 00:31:10,560
Speaker 11: working very hard to come up with a new product,

658
00:31:10,760 --> 00:31:12,520
Speaker 11: you're not can it just come up within two three

659
00:31:12,560 --> 00:31:14,040
Speaker 11: months and be ready for it?

660
00:31:14,200 --> 00:31:16,480
Speaker 10: So I hope for their sake, for their.

661
00:31:16,360 --> 00:31:19,480
Speaker 11: Stock that they do announce a partnership with one of

662
00:31:19,480 --> 00:31:23,520
Speaker 11: those two companies and showcase people what capabilities can we do.

663
00:31:23,760 --> 00:31:23,920
Speaker 1: Now.

664
00:31:23,960 --> 00:31:25,880
Speaker 11: Remember in the case of Microsoft, when they have a

665
00:31:25,920 --> 00:31:29,880
Speaker 11: deal with open Ai, their products have got enhanced very

666
00:31:29,920 --> 00:31:33,120
Speaker 11: quickly using open eyes, you know, backbone or technology, whether

667
00:31:33,200 --> 00:31:35,800
Speaker 11: it's you know office or whether it's a GitHub, the

668
00:31:36,000 --> 00:31:41,040
Speaker 11: coding platform. It's been very quick. So it can be done.

669
00:31:40,680 --> 00:31:42,560
Speaker 11: But you know, we'll find out in June.

670
00:31:42,680 --> 00:31:45,200
Speaker 4: The stocks down eleven percent this year lends me to

671
00:31:45,240 --> 00:31:47,760
Speaker 4: believe that, you know, the marginal hedge fund buyer is

672
00:31:47,800 --> 00:31:48,840
Speaker 4: not going in and they're buying a.

673
00:31:48,760 --> 00:31:50,240
Speaker 5: Position ahead of this June event.

674
00:31:51,480 --> 00:31:53,920
Speaker 4: Is that I mean, what are you hearing at today?

675
00:31:53,960 --> 00:31:55,600
Speaker 5: People think we'll get something this June or not.

676
00:31:55,920 --> 00:31:58,640
Speaker 11: Apple has always been more of a value play for

677
00:31:58,720 --> 00:32:01,600
Speaker 11: a long while. In between it became a growth story

678
00:32:01,640 --> 00:32:04,480
Speaker 11: because during the pandemic there was a lot of games downloaded.

679
00:32:04,520 --> 00:32:07,040
Speaker 11: And you know, so now that growth phase is over.

680
00:32:07,080 --> 00:32:09,560
Speaker 11: Now we're getting back to that single digit growth rate.

681
00:32:09,840 --> 00:32:12,760
Speaker 11: I always thought they had maybe a high single digit number,

682
00:32:13,040 --> 00:32:15,200
Speaker 11: but this year is going to be low single digit

683
00:32:15,280 --> 00:32:17,000
Speaker 11: to even flat, you know, So it's going to be

684
00:32:17,040 --> 00:32:19,760
Speaker 11: bad this year only because of China, but having said

685
00:32:19,840 --> 00:32:21,760
Speaker 11: that this is a company that can grow you know,

686
00:32:22,360 --> 00:32:25,160
Speaker 11: revenue five six percent an in a normal year.

687
00:32:25,360 --> 00:32:27,080
Speaker 2: So this is why the robot thing, if we circle

688
00:32:27,120 --> 00:32:30,040
Speaker 2: back to that, confused me because why would they put

689
00:32:30,280 --> 00:32:32,560
Speaker 2: anybody into something like that. Why wouldn't they just take

690
00:32:32,600 --> 00:32:35,720
Speaker 2: those workers and put them into an AI segment to

691
00:32:35,800 --> 00:32:39,360
Speaker 2: work on that instead, Like why it.

692
00:32:39,280 --> 00:32:40,640
Speaker 10: Could be somebody spent project.

693
00:32:40,680 --> 00:32:42,320
Speaker 4: I mean, it's just these are such a I mean,

694
00:32:42,440 --> 00:32:44,000
Speaker 4: they can't afford to do at all.

695
00:32:44,160 --> 00:32:46,880
Speaker 2: Yeah wogue, Okay, well fair enough, fair enough? Are they

696
00:32:46,920 --> 00:32:48,440
Speaker 2: going to do a big buyback?

697
00:32:49,480 --> 00:32:52,240
Speaker 11: I they have been spending almost ninety billion dollars a

698
00:32:52,280 --> 00:32:54,760
Speaker 11: year for buybacks. I've been wanting, I mean hoping they

699
00:32:54,760 --> 00:32:57,000
Speaker 11: will do a little more. But but no, that's not

700
00:32:57,040 --> 00:32:59,560
Speaker 11: the case because they do have to showcase whether they're

701
00:32:59,600 --> 00:33:02,520
Speaker 11: really can fix the China situation or not, because I

702
00:33:02,760 --> 00:33:05,320
Speaker 11: don't think buybacks would help that unless we have some

703
00:33:05,320 --> 00:33:08,000
Speaker 11: clarity on China or AI on China.

704
00:33:08,080 --> 00:33:12,240
Speaker 4: Since you bring up China, how do we get clarity

705
00:33:12,320 --> 00:33:14,760
Speaker 4: on China? Because right now I would just if I

706
00:33:14,800 --> 00:33:16,360
Speaker 4: were a shareholder, I would feel like that is by

707
00:33:16,480 --> 00:33:18,400
Speaker 4: far the biggest headwind to the.

708
00:33:18,480 --> 00:33:20,520
Speaker 11: Jample it has been, and you know, we've talked about

709
00:33:20,560 --> 00:33:21,520
Speaker 11: it for the last two years.

710
00:33:22,520 --> 00:33:23,520
Speaker 10: He just went to China.

711
00:33:23,840 --> 00:33:27,680
Speaker 11: He's been, you know, basically telling everybody how China is

712
00:33:27,760 --> 00:33:31,160
Speaker 11: very good for them and they'll invest more money. Maybe

713
00:33:31,160 --> 00:33:33,680
Speaker 11: that changes the behavior over the next few months, because

714
00:33:33,920 --> 00:33:35,680
Speaker 11: so far what we have seen in the last two

715
00:33:35,720 --> 00:33:39,160
Speaker 11: quarters is they've been losing market share and people are

716
00:33:39,240 --> 00:33:41,840
Speaker 11: opting for a local brand rather than the Apple brand.

717
00:33:42,280 --> 00:33:46,280
Speaker 11: And I think Apple's cache, you know, should come back

718
00:33:46,320 --> 00:33:48,600
Speaker 11: if they are able to convince that China is an

719
00:33:48,600 --> 00:33:49,880
Speaker 11: integrative part of their story.

720
00:33:50,880 --> 00:33:52,400
Speaker 10: I think it can. It can turn around.

721
00:33:52,440 --> 00:33:54,880
Speaker 2: We'll try to Secretary Jennet Yell in there now, so

722
00:33:54,920 --> 00:33:56,600
Speaker 2: see how that sort of pairs out before I let

723
00:33:56,640 --> 00:33:59,720
Speaker 2: you go. Also, FT had an interesting article that talked

724
00:33:59,760 --> 00:34:05,040
Speaker 2: about Google considering charging for AI powered search. What would

725
00:34:05,040 --> 00:34:08,600
Speaker 2: that in essence mean And that's a big deal for

726
00:34:08,719 --> 00:34:10,280
Speaker 2: Google to do something along those.

727
00:34:10,080 --> 00:34:12,759
Speaker 10: Lines, right see once again Open an Eye.

728
00:34:12,800 --> 00:34:15,200
Speaker 11: When you get the app, you get the free app

729
00:34:15,440 --> 00:34:18,920
Speaker 11: which everybody if you want GPT four, which is the

730
00:34:19,040 --> 00:34:22,440
Speaker 11: latest version of their their you know AI model, you

731
00:34:22,480 --> 00:34:23,360
Speaker 11: have to pay a subscription.

732
00:34:23,440 --> 00:34:25,160
Speaker 10: I think it's nineteen ninety nine a month or twenty

733
00:34:25,200 --> 00:34:25,839
Speaker 10: dollars a month.

734
00:34:26,239 --> 00:34:28,400
Speaker 11: It's probably going to be the same thing for you know,

735
00:34:28,480 --> 00:34:30,920
Speaker 11: Google or anybody else out there, that you have a

736
00:34:30,920 --> 00:34:33,279
Speaker 11: base level model that's free, and then you can, you know,

737
00:34:33,400 --> 00:34:35,759
Speaker 11: charge a little bit more for a premium model. It's

738
00:34:35,880 --> 00:34:38,360
Speaker 11: just part of, you know, how they want to monetize

739
00:34:38,360 --> 00:34:38,640
Speaker 11: some of that.

740
00:34:38,800 --> 00:34:40,200
Speaker 2: That's an interesting Paul. I don't know if you if

741
00:34:40,239 --> 00:34:42,040
Speaker 2: you notice this, but when I start for something on

742
00:34:42,080 --> 00:34:44,400
Speaker 2: Google now on my phone, I don't click any of

743
00:34:44,400 --> 00:34:47,000
Speaker 2: the links anymore, because all of a sudden you can

744
00:34:47,239 --> 00:34:49,600
Speaker 2: click on a drop down menu and it gives you

745
00:34:49,760 --> 00:34:51,920
Speaker 2: a quote from the page you would have clicked on.

746
00:34:52,440 --> 00:34:55,480
Speaker 2: And I have to think, like, does Google lose money?

747
00:34:55,520 --> 00:34:55,719
Speaker 3: There?

748
00:34:55,960 --> 00:34:58,000
Speaker 2: Is that or the or the or the other companies,

749
00:34:58,040 --> 00:34:59,359
Speaker 2: Like how does that affect them?

750
00:35:00,200 --> 00:35:03,440
Speaker 11: Google controls the search market and they have a little

751
00:35:03,440 --> 00:35:06,200
Speaker 11: bit of a threat in front of them. I personally

752
00:35:06,239 --> 00:35:09,160
Speaker 11: think they will figure it out. But the two demos

753
00:35:09,160 --> 00:35:10,880
Speaker 11: that they have done in the last one yere have

754
00:35:11,000 --> 00:35:13,479
Speaker 11: not really worked out well for them. But I feel

755
00:35:13,520 --> 00:35:15,160
Speaker 11: they will figure it out all right.

756
00:35:15,200 --> 00:35:17,520
Speaker 4: On rag Rana, thank you so much. He's in talent again.

757
00:35:17,560 --> 00:35:21,520
Speaker 4: The Bloomberg Intelligence folks, they're hosting a big conference here

758
00:35:21,560 --> 00:35:23,520
Speaker 4: in our New York Headquarters at seven thirty one Lex

759
00:35:23,680 --> 00:35:26,680
Speaker 4: about all things AI. I think they got the definitive

760
00:35:26,680 --> 00:35:29,640
Speaker 4: research report out there, deep dive on AI, and are

761
00:35:29,640 --> 00:35:32,759
Speaker 4: going to get some of the industry leaders coming to

762
00:35:32,800 --> 00:35:35,440
Speaker 4: the Bloomberg headquarters today giving us the latest on what

763
00:35:35,520 --> 00:35:38,800
Speaker 4: has really been the driving force, not just in technology,

764
00:35:38,800 --> 00:35:41,439
Speaker 4: but really across the markets over the last eighteen months

765
00:35:41,480 --> 00:35:41,719
Speaker 4: or so.

766
00:35:41,719 --> 00:35:42,879
Speaker 10: So that's going to be cool.

767
00:35:42,920 --> 00:35:44,600
Speaker 5: This Say afternoon on Rograna. Thank you so much.

768
00:35:44,640 --> 00:35:46,240
Speaker 4: We appreciate that.

769
00:35:48,800 --> 00:35:52,680
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

770
00:35:52,760 --> 00:35:56,280
Speaker 1: weekdays at ten am Eastern on applecard Play and Android

771
00:35:56,320 --> 00:35:59,080
Speaker 1: Otto with the Bloomberg Business App. You can also listen

772
00:35:59,200 --> 00:36:01,960
Speaker 1: live on a on Alexa from our flagship New York

773
00:36:02,040 --> 00:36:05,440
Speaker 1: station Just Say Alexa playing Bloomberg eleven thirty.

774
00:36:06,520 --> 00:36:07,160
Speaker 5: All right, folks.

775
00:36:07,320 --> 00:36:10,279
Speaker 4: On this week's episode of The Deal, Jason Kelly and

776
00:36:10,320 --> 00:36:13,240
Speaker 4: former baseball star Alex Rodriguez, they talked with Redford Capital

777
00:36:13,280 --> 00:36:17,480
Speaker 4: founder and managing partner Jerry Cardinali. He breaks down his career,

778
00:36:17,800 --> 00:36:20,239
Speaker 4: the purchase of AC Milan, and so much more. He

779
00:36:20,280 --> 00:36:23,960
Speaker 4: also discusses how sports investing has evolved over time.

780
00:36:24,000 --> 00:36:26,000
Speaker 8: Tick list and so I guess I had a very

781
00:36:26,040 --> 00:36:28,880
Speaker 8: philosophical moment where I said, you know what gets me

782
00:36:28,960 --> 00:36:29,479
Speaker 8: up in the morning.

783
00:36:29,600 --> 00:36:30,200
Speaker 5: What do I love?

784
00:36:30,640 --> 00:36:33,840
Speaker 8: And I love playing shadow entrepreneur, and I like solving

785
00:36:33,840 --> 00:36:37,400
Speaker 8: problems with capital, and I just it just so happens,

786
00:36:37,400 --> 00:36:40,000
Speaker 8: you know, luck in people's career. I happen to hit

787
00:36:40,400 --> 00:36:43,719
Speaker 8: an inflection point with sports that I couldn't possibly have

788
00:36:43,760 --> 00:36:47,480
Speaker 8: seen coming back in two thousand, two thousand and one. Right,

789
00:36:47,960 --> 00:36:50,520
Speaker 8: you look back on that the last twenty years and

790
00:36:50,560 --> 00:36:52,640
Speaker 8: you're like, wow, you really you know, Luck's great. You

791
00:36:52,680 --> 00:36:55,080
Speaker 8: really hit an air pocket that you know you could

792
00:36:55,239 --> 00:36:59,120
Speaker 8: where you took off. Now the challenge is navigating that

793
00:36:59,239 --> 00:37:02,279
Speaker 8: because now everybody he's discovered sports. Yeah, sports is now

794
00:37:02,280 --> 00:37:04,920
Speaker 8: an asset class. That scares me. When I start to

795
00:37:04,960 --> 00:37:07,320
Speaker 8: hear about things like sports being an asset class, my

796
00:37:07,360 --> 00:37:11,040
Speaker 8: initial reaction is to run in the other way. Yeah,

797
00:37:11,080 --> 00:37:13,160
Speaker 8: and so you know, but I say, look, you can't

798
00:37:13,200 --> 00:37:15,520
Speaker 8: make money if you don't put money to work, all right.

799
00:37:15,520 --> 00:37:18,800
Speaker 4: That is Jerry Cardinali. He is the Redbird Capital founder

800
00:37:19,080 --> 00:37:20,960
Speaker 4: and managing partner and a big fan of his. He's

801
00:37:21,000 --> 00:37:25,080
Speaker 4: a really leading financier in the world of sports entertainment media.

802
00:37:25,160 --> 00:37:27,400
Speaker 4: The convergence of all that kind of good stuff, and

803
00:37:27,440 --> 00:37:29,799
Speaker 4: he sat down with Jason Kelly and Alex Rodriguez for

804
00:37:29,880 --> 00:37:32,359
Speaker 4: their Big Take podcast. Jason Kelly joins us here. He's

805
00:37:32,440 --> 00:37:36,120
Speaker 4: chief correspondent for Bloomberg Originals. Jason's also host an executive

806
00:37:36,120 --> 00:37:40,600
Speaker 4: producer of The Deal podcast Jason. Really cool discussion with

807
00:37:40,680 --> 00:37:43,479
Speaker 4: Jerry Cardinally, he's involved in so much.

808
00:37:43,520 --> 00:37:45,360
Speaker 5: What would you guys talk about?

809
00:37:45,480 --> 00:37:48,640
Speaker 6: Yeah, I mean it was the biggest challenge with Jerry

810
00:37:48,760 --> 00:37:51,839
Speaker 6: was sort of narrowing it down and in a lot

811
00:37:51,840 --> 00:37:54,600
Speaker 6: of ways. I mean, to me, the two most interesting

812
00:37:54,640 --> 00:37:56,839
Speaker 6: things about him at the moment, and there is more

813
00:37:56,840 --> 00:37:59,799
Speaker 6: than this, you know. One was the very instrumental role

814
00:37:59,800 --> 00:38:02,600
Speaker 6: he played with the Yankees at a pivotal time in

815
00:38:02,600 --> 00:38:06,840
Speaker 6: that franchise, you know, late nineties, early two thousands, especially,

816
00:38:07,160 --> 00:38:09,160
Speaker 6: you know, right in your wheelhouse, the creation of the

817
00:38:09,239 --> 00:38:13,000
Speaker 6: Yes Network, which obviously just set sort of a different

818
00:38:13,120 --> 00:38:16,719
Speaker 6: path for media rights and how teams and leagues you know,

819
00:38:16,880 --> 00:38:19,160
Speaker 6: sort of deal with with all of that. So that's one,

820
00:38:19,160 --> 00:38:22,400
Speaker 6: and then the second is moving into ownership in a

821
00:38:22,440 --> 00:38:24,239
Speaker 6: meaningful way with AC Milan, you know, one of the

822
00:38:24,239 --> 00:38:27,480
Speaker 6: most storied soccer clubs in the world, and sort of

823
00:38:27,480 --> 00:38:29,640
Speaker 6: what led him there, and then along the way he's

824
00:38:29,640 --> 00:38:32,880
Speaker 6: doing business with Tom Cruise and Top Gun Maverick, and

825
00:38:32,960 --> 00:38:35,719
Speaker 6: he's in business with Ben Affleck and Matt Damon, and

826
00:38:35,760 --> 00:38:38,680
Speaker 6: he's in business with the Rock and Danny Garcia and

827
00:38:39,040 --> 00:38:41,799
Speaker 6: the XFL. So he's got his he's got his hands

828
00:38:41,840 --> 00:38:42,200
Speaker 6: on a lot.

829
00:38:42,360 --> 00:38:44,840
Speaker 2: Yeah he does. So, wasn't it like what else is

830
00:38:44,840 --> 00:38:45,359
Speaker 2: he working on?

831
00:38:45,600 --> 00:38:49,000
Speaker 6: I mean, I don't know how he does it, because

832
00:38:49,000 --> 00:38:52,120
Speaker 6: I mean he really is just he's a globe trotting

833
00:38:52,200 --> 00:38:54,040
Speaker 6: deal maker, you know. I mean, you know, one of

834
00:38:54,120 --> 00:38:57,080
Speaker 6: the things he identified, I think along with a lot

835
00:38:57,080 --> 00:38:59,959
Speaker 6: of folks, was you know, the importance of sovereign wealth.

836
00:39:00,160 --> 00:39:03,360
Speaker 6: So he's in business with Abu Dhabi looking at a

837
00:39:03,440 --> 00:39:06,000
Speaker 6: number of different things. Jeff Zucker, you know, the former

838
00:39:06,040 --> 00:39:09,920
Speaker 6: CNN executive is a partner of his, looking at media deals.

839
00:39:10,000 --> 00:39:12,479
Speaker 5: They took a look at the Telegraph over in the UK.

840
00:39:13,239 --> 00:39:15,600
Speaker 6: They're involved in sky Dance, you know, which obviously is

841
00:39:15,600 --> 00:39:19,920
Speaker 6: in the headline headlines today with the paramount deal. So

842
00:39:20,760 --> 00:39:24,799
Speaker 6: a lot going on for him, clearly, and as he said,

843
00:39:24,800 --> 00:39:27,319
Speaker 6: as you heard him say in that clip, you know,

844
00:39:27,400 --> 00:39:29,080
Speaker 6: part of it was luck. I mean he was at

845
00:39:29,160 --> 00:39:33,160
Speaker 6: Goldman and you know saw some things happening with the

846
00:39:33,280 --> 00:39:36,360
Speaker 6: sports world. Clearly, the Yankees were a local client. I

847
00:39:36,360 --> 00:39:39,279
Speaker 6: mean that sounds ridiculous, but they were. But you know,

848
00:39:39,360 --> 00:39:43,920
Speaker 6: he clearly anticipated a lot of this collision, this coalescing

849
00:39:43,920 --> 00:39:47,439
Speaker 6: as it were, of business, sports, technology, media, et cetera.

850
00:39:47,760 --> 00:39:49,359
Speaker 4: One of the things we've all seen over the last,

851
00:39:49,520 --> 00:39:52,400
Speaker 4: you know, many years is just the continued increase in

852
00:39:52,440 --> 00:39:56,239
Speaker 4: the value of sports, whether it's the franchises themselves in

853
00:39:56,280 --> 00:39:59,600
Speaker 4: a various sports globally, or the rights fees for the

854
00:39:59,640 --> 00:40:02,200
Speaker 4: broadcas casting. What's this view on that, because it seems

855
00:40:02,239 --> 00:40:05,000
Speaker 4: like you just can't lose money in this kind of stuff.

856
00:40:05,080 --> 00:40:07,719
Speaker 6: I mean, that's and that's always the dangerous place to be, right,

857
00:40:07,800 --> 00:40:09,759
Speaker 6: you know, when when it feels like that, which it

858
00:40:09,920 --> 00:40:12,040
Speaker 6: certainly does, You're exactly right, Paul, that's exactly how it

859
00:40:12,040 --> 00:40:14,479
Speaker 6: feels right now, you know. I mean, and this again

860
00:40:14,520 --> 00:40:17,560
Speaker 6: gets into a lot of your expertise around the media world.

861
00:40:17,640 --> 00:40:20,560
Speaker 6: I mean, part of what is fueling that is this

862
00:40:20,800 --> 00:40:25,360
Speaker 6: massive disruption in media between you know, broadcast cable streamers.

863
00:40:25,760 --> 00:40:28,880
Speaker 6: Who's going to really pay up for the media rights

864
00:40:28,920 --> 00:40:31,240
Speaker 6: for the big sports and even some of the smaller sports.

865
00:40:31,360 --> 00:40:33,439
Speaker 6: We don't know I mean, when this new NBA deal

866
00:40:33,520 --> 00:40:37,640
Speaker 6: comes up, one of the big speculations is is Netflix.

867
00:40:37,200 --> 00:40:37,759
Speaker 5: Going to be in that?

868
00:40:37,920 --> 00:40:39,640
Speaker 6: Is Amazon going to be in that, or is it

869
00:40:39,640 --> 00:40:42,359
Speaker 6: going to be some of the more traditional players. That

870
00:40:42,400 --> 00:40:47,160
Speaker 6: flows straight through to valuations, as you alluded to, and

871
00:40:47,239 --> 00:40:49,880
Speaker 6: you know, you're seeing, you know, these teams just trade

872
00:40:49,960 --> 00:40:52,080
Speaker 6: up and up and up. The Washington Commander is going

873
00:40:52,080 --> 00:40:54,239
Speaker 6: for six billion dollars. The Phoenix Sun's going for four

874
00:40:54,239 --> 00:40:57,600
Speaker 6: billion dollars. I mean, these are eye popping, mind blowing

875
00:40:58,200 --> 00:41:01,000
Speaker 6: numbers for franchises that twenty years ago we're selling for

876
00:41:01,040 --> 00:41:02,319
Speaker 6: like a couple hundred million dollars.

877
00:41:02,400 --> 00:41:04,000
Speaker 2: So why did we freak out? And he said sports

878
00:41:04,040 --> 00:41:08,520
Speaker 2: is an asset class? I think freak out's number statement.

879
00:41:08,600 --> 00:41:10,359
Speaker 2: But you know, like, why does that worry him then,

880
00:41:10,400 --> 00:41:12,760
Speaker 2: when like he's part of making it an asset class?

881
00:41:13,040 --> 00:41:17,680
Speaker 6: I think because it has the danger of becoming sort

882
00:41:17,719 --> 00:41:20,600
Speaker 6: of commodified and you know, traded in a way that

883
00:41:20,800 --> 00:41:24,799
Speaker 6: you know, maybe takes out some of the some of

884
00:41:24,840 --> 00:41:29,440
Speaker 6: the some of the opportunities to really some of the

885
00:41:29,440 --> 00:41:31,080
Speaker 6: opportunity to find opportunities, if.

886
00:41:31,000 --> 00:41:31,480
Speaker 2: That makes sense.

887
00:41:31,600 --> 00:41:34,640
Speaker 6: He had this one line that I love that we've

888
00:41:34,640 --> 00:41:37,000
Speaker 6: been talking about in our production team, which is they

889
00:41:37,040 --> 00:41:40,080
Speaker 6: trying arbitrage incompetence, which I think is one of the

890
00:41:40,600 --> 00:41:44,360
Speaker 6: funniest things. And like, where else can we do exactly,

891
00:41:44,600 --> 00:41:46,279
Speaker 6: It's like, can we make do you want to make

892
00:41:46,280 --> 00:41:49,000
Speaker 6: a list? We don't make a list right now, Let's

893
00:41:49,120 --> 00:41:52,840
Speaker 6: let's create a shared note, you know and me because

894
00:41:52,960 --> 00:41:54,920
Speaker 6: I just love that idea. I mean as an investor,

895
00:41:54,960 --> 00:41:56,920
Speaker 6: I mean that is actually what you're trying to do,

896
00:41:57,040 --> 00:41:58,800
Speaker 6: right You're trying to find these opportunities where it's like

897
00:41:58,800 --> 00:42:00,719
Speaker 6: they're not running it right, Let's go in and run

898
00:42:00,719 --> 00:42:01,080
Speaker 6: it better.

899
00:42:01,480 --> 00:42:05,359
Speaker 4: So how does Alex in these conversations? I would think

900
00:42:05,400 --> 00:42:08,680
Speaker 4: Alex is most of these kind of an insider. He

901
00:42:08,760 --> 00:42:11,719
Speaker 4: knows all these people. He's probably seen a lot of

902
00:42:11,760 --> 00:42:13,000
Speaker 4: the deals that they've seen.

903
00:42:13,239 --> 00:42:16,359
Speaker 6: Well, this one people, Oh, totally, you're totally right, Paul.

904
00:42:16,400 --> 00:42:19,040
Speaker 6: I mean, this one was fascinating because you know, this

905
00:42:19,080 --> 00:42:22,960
Speaker 6: is a guy who actually was instrumental Jerry in helping

906
00:42:23,000 --> 00:42:24,799
Speaker 6: bring Alex to New York, which is, you know, one

907
00:42:24,840 --> 00:42:26,840
Speaker 6: of the biggest deals that happens for the Yankees in

908
00:42:26,880 --> 00:42:30,080
Speaker 6: the last twenty five years, as you well know, you know.

909
00:42:30,160 --> 00:42:32,080
Speaker 6: The other thing they talked about was, you know, getting

910
00:42:32,120 --> 00:42:35,920
Speaker 6: together over dinner with Randy Levine, the president of the Yankees,

911
00:42:35,960 --> 00:42:38,400
Speaker 6: and saying, hold on, how do we put together a

912
00:42:38,480 --> 00:42:41,439
Speaker 6: roster that can actually win us a championship? And guess

913
00:42:41,480 --> 00:42:43,120
Speaker 6: what they did in two thousand and nine. I mean

914
00:42:43,400 --> 00:42:46,440
Speaker 6: they were the three of them instrumental in identifying who

915
00:42:46,480 --> 00:42:48,440
Speaker 6: could make that happen. So you're right. I mean it's

916
00:42:48,640 --> 00:42:51,600
Speaker 6: it's very fun, I fully confess for me to sit

917
00:42:51,640 --> 00:42:53,120
Speaker 6: here and be like, no, you guys, just tell this

918
00:42:53,160 --> 00:42:56,319
Speaker 6: story what was happening sort of behind the scenes and

919
00:42:56,320 --> 00:42:57,080
Speaker 6: around that table.

920
00:42:57,280 --> 00:42:59,400
Speaker 2: Yeah, Oh my gosh, I can imagine that, Like you

921
00:42:59,400 --> 00:43:00,919
Speaker 2: feel success full if you don't have to talk.

922
00:43:01,040 --> 00:43:05,600
Speaker 6: Yeah, because I say more about that, that's my contribution.

923
00:43:06,640 --> 00:43:09,600
Speaker 2: Tell me how you felt about that. So what else

924
00:43:09,600 --> 00:43:11,120
Speaker 2: can we look forward to? What's next on your plate?

925
00:43:11,640 --> 00:43:14,600
Speaker 6: So a couple really good episodes, you know, still to come.

926
00:43:14,640 --> 00:43:17,080
Speaker 6: More about halfway through the season. Brandy Chastain is one

927
00:43:17,520 --> 00:43:20,600
Speaker 6: I'm especially excited for people to listen to. Of course,

928
00:43:20,800 --> 00:43:24,400
Speaker 6: Iconic Player, And last week we were down in Miami

929
00:43:24,600 --> 00:43:28,160
Speaker 6: filming an episode with none other than the Goat herself,

930
00:43:28,160 --> 00:43:30,880
Speaker 6: Serena Williams. So that's coming up in a few weeks.

931
00:43:31,000 --> 00:43:32,719
Speaker 2: This is why you have son on your face? Yes,

932
00:43:32,960 --> 00:43:34,880
Speaker 2: for a radio audience, I was like, why is he?

933
00:43:35,080 --> 00:43:35,520
Speaker 4: Sort of.

934
00:43:38,040 --> 00:43:38,719
Speaker 10: How does this guy?

935
00:43:38,840 --> 00:43:39,880
Speaker 6: How does this guy pull it off?

936
00:43:40,000 --> 00:43:40,200
Speaker 4: Yeah?

937
00:43:40,239 --> 00:43:43,360
Speaker 6: So I can't wait for y'all to listen to Serena.

938
00:43:43,440 --> 00:43:48,879
Speaker 6: She is unbelievable. It's it's stories and perspectives from her

939
00:43:48,960 --> 00:43:52,160
Speaker 6: that you've never heard before. So very very.

940
00:43:52,000 --> 00:43:53,960
Speaker 5: Excited for that one downline. Okay, awesome stuff.

941
00:43:54,000 --> 00:43:56,840
Speaker 4: Jason Kelly chief correspondent for Bloomberg Originals. She's also a

942
00:43:56,840 --> 00:44:00,520
Speaker 4: host an executive producer of the Deal, and on this

943
00:44:00,600 --> 00:44:03,640
Speaker 4: week's episode of the Deal, Jason Kelly and Alex Rodriguez

944
00:44:03,680 --> 00:44:07,640
Speaker 4: a talk with Redbird Capital founder and manager partner Jerry Cardinali.

945
00:44:07,719 --> 00:44:10,680
Speaker 4: Jerry he going to break down his career, the purchase

946
00:44:10,719 --> 00:44:13,120
Speaker 4: of ac Milan, they owned that one storied franchise in

947
00:44:14,040 --> 00:44:16,920
Speaker 4: Saria in Italy, and so much more. He's also discusses

948
00:44:16,920 --> 00:44:18,719
Speaker 4: how sports investing has evolved over time.

949
00:44:18,760 --> 00:44:20,839
Speaker 5: So some good stuff there. We'll have that. Jason, thanks

950
00:44:20,880 --> 00:44:21,960
Speaker 5: so much for joining us.

951
00:44:22,280 --> 00:44:26,799
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952
00:44:27,000 --> 00:44:29,920
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953
00:44:30,000 --> 00:44:33,600
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954
00:44:33,719 --> 00:44:37,120
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955
00:44:37,239 --> 00:44:40,400
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956
00:44:40,480 --> 00:44:42,320
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