WEBVTT - Disney's Bob Iger and Coinbase Hits Record Low 0:00:13.560 --> 0:00:16.400 I'm Caroline Higher Bloomberg's world headquarters in New York, and 0:00:16.480 --> 0:00:20.360 i'md Ludlow in San Francisco. This is Bloomberg Technology. Well. 0:00:20.400 --> 0:00:23.320 Biger's return as Disney CEO comes as the company deals 0:00:23.360 --> 0:00:27.160 with challenges both internal and external. Ahead the biggest priorities 0:00:27.240 --> 0:00:30.920 for the comeback King of Content and Genesis is warning 0:00:31.000 --> 0:00:34.200 of a bankruptcy without new funding. As coin base hits 0:00:34.280 --> 0:00:38.000 a record low, the entire industry faces a liquidity crunch, 0:00:38.120 --> 0:00:41.640 and we've learned US prosecutors opened a probe of FTX 0:00:42.040 --> 0:00:45.600 months before its collapse. Plus will break down how tech 0:00:45.720 --> 0:00:49.000 layoffs create a wave of issues for non US citizens 0:00:49.320 --> 0:00:52.600 that worked for Silicon Valley giants. But first and foremost, 0:00:52.640 --> 0:00:54.560 let's get to the breaking news. As Bloomberg is reporting 0:00:54.600 --> 0:00:56.840 the digital asset brokerage, as you just said, the Genesis 0:00:57.120 --> 0:00:59.560 struggling to raise fresh cash for a lending unit and 0:00:59.640 --> 0:01:04.080 it's potential investors that it may we say, may need 0:01:04.160 --> 0:01:06.920 to fall for bankruptcy if it's efforts fail. So according 0:01:06.959 --> 0:01:08.840 to sources, and say best I can said, because she 0:01:08.920 --> 0:01:11.000 was indeed one of the byelines on the story. One 0:01:11.040 --> 0:01:13.840 of the key reporters, and Shally told us thus fall 0:01:13.920 --> 0:01:16.120 Genesis coming back and saying, look, this is an imminent 0:01:16.480 --> 0:01:18.200 but they have been trying to raise funds for some 0:01:18.319 --> 0:01:20.720 while now right, they have been trying to raise funds 0:01:20.760 --> 0:01:22.920 four days. Remember they had halt and withdrawals at the 0:01:23.040 --> 0:01:25.440 lending unit just last week, in the middle of last week, 0:01:25.760 --> 0:01:27.720 and since then they have been in talks with investors, 0:01:27.760 --> 0:01:31.039 including now we're reporting finance now. Funding has so far 0:01:31.160 --> 0:01:33.640 failed to materialize, and they've been warning a group of 0:01:33.680 --> 0:01:36.959 investors that they may need to file for bankruptcy, certainly 0:01:37.040 --> 0:01:41.000 at lending unit, if those talks do not materialize into 0:01:41.160 --> 0:01:44.880 funding now. Remember Genesis is a huge player in the 0:01:44.959 --> 0:01:49.400 institutional space. Their trading desk has separately reported an exposure 0:01:49.440 --> 0:01:51.920 to f t X. But we are now starting to 0:01:52.000 --> 0:01:55.240 see more effects of what has happened here that you 0:01:55.320 --> 0:01:58.440 could argue was contagion that started back to three arrows, 0:01:58.560 --> 0:02:01.120 let alone current A. When it comes to the ft 0:02:01.280 --> 0:02:04.120 x A vocals SINALI. What's happening behind the scenes? How 0:02:04.200 --> 0:02:07.160 much cash do the Genesis think they need? Is this 0:02:07.280 --> 0:02:09.359 happened in the last twenty four hours, in the last 0:02:09.400 --> 0:02:12.720 two weeks? What's happening behind closed doors? Days? Remember they 0:02:12.760 --> 0:02:15.280 halted withdrawals in the middle of last week, let's say Wednesday, 0:02:15.400 --> 0:02:18.239 and then they had over the days after that starting 0:02:18.240 --> 0:02:20.160 to look for money. With the way that my sources 0:02:20.240 --> 0:02:22.400 describe what was happening was that a lot of these 0:02:22.440 --> 0:02:26.560 talks really amplified into the weekend. H And again remember 0:02:26.639 --> 0:02:29.000 that this is still they have not filed yet. They're 0:02:29.200 --> 0:02:31.040 not said that they're going to file yet. They have 0:02:31.160 --> 0:02:33.360 told us on the record, by the way, that they 0:02:33.400 --> 0:02:35.880 don't have plans to file imminently, and their goal is 0:02:35.919 --> 0:02:39.519 to resolve the current situation consensually without the need for 0:02:39.639 --> 0:02:42.440 bankruptcy filing. But as we know that this is still 0:02:42.560 --> 0:02:45.800 a huge risk. Now remember there are benefits to bankruptcy 0:02:45.880 --> 0:02:49.519 as well. It would contain a situation here and remember 0:02:49.600 --> 0:02:52.880 this is part of the broader Digital currency Group empire, 0:02:52.960 --> 0:02:55.359 where we do not have indications that this is a 0:02:55.440 --> 0:02:57.760 broader problem when you look at this empire that was 0:02:57.800 --> 0:03:00.280 built by Barry Silberg. So I think that as very 0:03:00.320 --> 0:03:02.760 important part of this story here which assets within that 0:03:02.840 --> 0:03:05.679 empire we are talking about, and how far that contagion 0:03:05.720 --> 0:03:08.639 can potentially go as we as we plan for a 0:03:08.720 --> 0:03:11.920 potential bankruptcy for this unit. Yeah, just talked to us 0:03:11.960 --> 0:03:13.959 a little bit about Digital Currency Group as well, and 0:03:14.080 --> 0:03:16.720 the efforts that will already be made by Barry Silbert 0:03:16.840 --> 0:03:19.639 too will propop that in time DISR group because thus 0:03:19.680 --> 0:03:23.679 far it has been noted that money has been to 0:03:23.840 --> 0:03:27.120 put that to ensure that suddenly post Three Arrows the 0:03:27.200 --> 0:03:30.600 implications weren't too destructive. It's an important question. Remember after 0:03:30.680 --> 0:03:33.079 Three Arrows, a part of the empire here was said 0:03:33.120 --> 0:03:37.320 to have been a creditor to the Three Arrows Group. 0:03:37.400 --> 0:03:41.000 So why is that so important today? Because as investors 0:03:41.160 --> 0:03:43.640 look at this asset, to the point that you are 0:03:43.840 --> 0:03:46.680 getting at here is that they do want to untangle 0:03:46.720 --> 0:03:51.839 the relationship between Genesis Lending, Genesis Trading, and the rest 0:03:51.960 --> 0:03:54.360 of Digital Currency Group. Now, remember the rest of the 0:03:54.440 --> 0:03:58.000 empire is super important to the crypto space that includes 0:03:58.040 --> 0:04:00.960 a GBTC, the Gray Scale Bitcoin Trust, Great Scale as 0:04:00.960 --> 0:04:03.200 a company. But right now, what we do know and 0:04:03.240 --> 0:04:05.040 I would say I work about tune us over at 0:04:05.080 --> 0:04:07.480 the Bloomberg Intelligence has been brilliant at pointing this out. 0:04:07.840 --> 0:04:10.360 The company itself spits off a lot of money based 0:04:10.400 --> 0:04:12.200 on what they are getting in terms of managing the 0:04:12.280 --> 0:04:15.520 assets for the Great Scale bus Coin Trust. So That's 0:04:15.560 --> 0:04:18.480 why again it's so important here to say what is 0:04:18.640 --> 0:04:22.039 revenue generating, what is still okay today and what parts 0:04:22.080 --> 0:04:24.000 of the business here are we more concerned about. But 0:04:24.040 --> 0:04:27.320 then importantly for investors, what is the relationship between all 0:04:27.320 --> 0:04:29.480 the entities at the end of the day. All right, 0:04:29.520 --> 0:04:33.520 bloombergs Shinali Bassek, thank you. Let's tend now to Disney 0:04:33.720 --> 0:04:36.960 after the bombshell announcement that Bob iger is coming back 0:04:37.120 --> 0:04:40.360 to the company Rosco, that is CEO and co founder 0:04:40.400 --> 0:04:43.839 of Gerba Kawasaki, two billion dollars in assets under management, 0:04:43.880 --> 0:04:48.279 and importantly Caroline a Disney shareholder. So ross your reaction. 0:04:49.600 --> 0:04:52.280 I was so happy when I saw the news last night. 0:04:52.360 --> 0:04:55.600 I thought I was dreaming and and it was like 0:04:55.720 --> 0:04:59.560 my dream came true. Bob Japeck had been running the 0:04:59.600 --> 0:05:02.880 business into the ground and had made some crucial errors 0:05:02.920 --> 0:05:07.280 in handling some very difficult situations. But it's time to 0:05:07.640 --> 0:05:11.160 really refocus the business back on creating great content for 0:05:11.240 --> 0:05:15.200 a reasonable cast. Okay, So ross in terms of your 0:05:15.600 --> 0:05:18.880 prioritization here, and I want to bring to our audience 0:05:18.960 --> 0:05:20.920 a poll that we went to Twitter with. I know 0:05:21.000 --> 0:05:23.880 you're a big player on Twitter with hundreds of thousands 0:05:23.880 --> 0:05:25.920 of followers, But we've been shining a light on what 0:05:26.080 --> 0:05:29.080 they think the prioritization should be. Now, is it the 0:05:29.200 --> 0:05:32.120 cost controls? Is it more thinking about content the streaming 0:05:32.160 --> 0:05:35.120 perspective at the moment? Is it ross? Actually? Of course, 0:05:35.160 --> 0:05:37.360 what is the internal management of this business because Bob 0:05:37.440 --> 0:05:40.839 Chapeck himself had made some well, very criticized decision making 0:05:40.839 --> 0:05:42.760 when it came to the politics within Florida and what 0:05:43.040 --> 0:05:45.840 the company stands for. From your perspective, streaming strategy is 0:05:45.920 --> 0:05:48.240 number one for our audience right here, right now. Is 0:05:48.279 --> 0:05:51.280 it number one for you? Yeah? For sure. I mean 0:05:51.400 --> 0:05:53.680 the streaming business that they've built over the last several 0:05:53.800 --> 0:05:56.200 years is amazing, and it was really led by Igor 0:05:56.279 --> 0:05:59.000 at the beginning to get into streaming, and and so 0:05:59.080 --> 0:06:01.479 they got to this point where they now have hundreds 0:06:01.720 --> 0:06:05.840 of millions of subscribers, but their losses have balloon, And 0:06:06.120 --> 0:06:09.680 I'm not really sure why there was such a lack 0:06:09.760 --> 0:06:13.039 of focus on the cost controls, especially last quarter, because 0:06:13.040 --> 0:06:15.440 the rest of the business like parks and resorts and 0:06:15.839 --> 0:06:18.960 and and as well as the hotels and and the 0:06:19.160 --> 0:06:22.600 cruise ships, many elements of the business are booming right now. 0:06:22.760 --> 0:06:26.640 And hugely profitable. So we actually expected Disney to beat 0:06:26.720 --> 0:06:29.640 profits nicely this quarter, and it was like, where did 0:06:29.680 --> 0:06:33.640 this extra billion uh spent on on the streamers go? 0:06:34.320 --> 0:06:37.600 And so you know, Disney, Disney Plus and and Hulu 0:06:37.800 --> 0:06:41.520 have are great assets. ESPN Plus, they're great assets, and 0:06:41.560 --> 0:06:43.640 they've had a lot of money investment. But it's time 0:06:43.960 --> 0:06:47.920 to make this business profitable and and and make sense economic. 0:06:49.720 --> 0:06:51.520 Let's bring you son of what Bob said in a 0:06:51.680 --> 0:06:54.800 statement Sunday night when he was named to see a first. 0:06:54.839 --> 0:06:56.760 Of all, he seems as surprised as the rest of us, 0:06:56.880 --> 0:07:00.480 using the word amazement, but he also talks about these 0:07:00.640 --> 0:07:03.799 times remain quite challenging. I suppose you're referring to macro 0:07:04.000 --> 0:07:07.400 conditions you talked about profit is it's just you can't 0:07:07.440 --> 0:07:10.320 just turn the tap off and suddenly the losses from 0:07:10.400 --> 0:07:14.160 streaming go away and everything's dandy. How materially does he 0:07:14.320 --> 0:07:18.720 fix things at Disney? Well, I think you've got, really 0:07:19.320 --> 0:07:21.880 I would say three main issues that Disney faces. So 0:07:22.000 --> 0:07:23.920 the first, which we've been discussing, is how do we 0:07:24.000 --> 0:07:27.640 build a streamer with the right economics? And it's actually 0:07:27.720 --> 0:07:30.040 not that hard because you do have a certain level 0:07:30.080 --> 0:07:31.840 of certainty of what your revenue is going to be 0:07:31.920 --> 0:07:35.560 because it's a reoccurring revenue model. So Disney and Apple 0:07:35.680 --> 0:07:38.920 just recently raised prices on their streamers, so they can 0:07:39.160 --> 0:07:42.520 pretty well guess what they're going to take in revenue 0:07:42.560 --> 0:07:44.600 wise over the next twelve months. And they just need 0:07:44.640 --> 0:07:47.560 to right size the budget for it so that that 0:07:47.720 --> 0:07:50.120 isn't that big of a deal. You just have to 0:07:50.760 --> 0:07:53.360 do the right math. The second thing Disney needs to 0:07:53.440 --> 0:07:57.160 address is China. This is the really big difficult challenge 0:07:57.200 --> 0:07:59.720 that many of my companies are facing, whether it be 0:08:00.120 --> 0:08:03.960 the MGM and Macau or Tesla and Shanghai. You know, 0:08:04.080 --> 0:08:07.000 we're just facing so much uncertainty in the Shanghai park 0:08:07.120 --> 0:08:09.560 is closed again and this is a big challenge for them, 0:08:09.800 --> 0:08:13.800 despite the rest of the park's business doing extremely well. 0:08:14.240 --> 0:08:15.680 And then the third thing is what are they going 0:08:15.720 --> 0:08:18.280 to do with their sports business. I personally love the 0:08:18.560 --> 0:08:20.640 ESPN brand in business, and I think that they need 0:08:20.760 --> 0:08:23.520 to be deeper in sports and deeper in sports betting, 0:08:23.840 --> 0:08:26.680 and and if not, just get out of the sports 0:08:26.720 --> 0:08:30.000 business and and spin it off or sell the ESPN brand. 0:08:30.280 --> 0:08:31.760 But I think they need to make a decision on 0:08:31.840 --> 0:08:33.640 what they're going to do with sports in the future. Now, 0:08:33.720 --> 0:08:36.160 I think Disney should stay in the sports business. But 0:08:36.440 --> 0:08:40.080 but I think I will assess these things and make 0:08:40.120 --> 0:08:42.040 some great decisions, and soon enough we'd like you to 0:08:42.080 --> 0:08:44.800 see the monetization in some parts of Disney plus lust. 0:08:44.840 --> 0:08:48.559 I'm interested in the people behind Disney plus the executives. 0:08:48.640 --> 0:08:52.120 I mean, we know that bomb Iger might well be 0:08:52.400 --> 0:08:55.640 thinking of his lgbt Q plus community and how response 0:08:55.679 --> 0:08:58.079 to them post the politicization of all of that, But 0:08:58.200 --> 0:09:00.560 talk to us about the executives who institute do the roles. 0:09:00.600 --> 0:09:02.880 Talk about the people who perhaps were given a backseat 0:09:03.240 --> 0:09:07.520 unto Chapec, and how that changes. So this part of 0:09:07.600 --> 0:09:11.240 Disney was going back to Igor's days when they bought Fox. 0:09:11.400 --> 0:09:15.240 So when they integrated Fox, there was just like almost 0:09:15.440 --> 0:09:18.439 a lot of the Disney people left and Fox people 0:09:18.520 --> 0:09:20.880 on the television and the movie side sort of stayed 0:09:20.960 --> 0:09:23.720 and and and that's been good, I think for Disney. 0:09:23.920 --> 0:09:27.560 But I think Chpec really was not great with talent, 0:09:27.920 --> 0:09:30.240 and I don't think he had any vision for the 0:09:30.559 --> 0:09:35.120 artists or the artistry part of making the magic of Disney. 0:09:35.200 --> 0:09:37.480 And that's what Igor has that that is really hard 0:09:37.559 --> 0:09:40.040 to quantify. So so I think this is like a 0:09:40.120 --> 0:09:42.800 really big thing. Is I do think they have great 0:09:42.840 --> 0:09:45.760 executives managing their businesses, but I think they need some 0:09:45.960 --> 0:09:49.600 direction as far as content is concerned, and and sort 0:09:49.640 --> 0:09:52.320 of like somebody would taste, and that's what Iger has 0:09:52.400 --> 0:09:55.600 that Chapex certainly doesn't. But I still think the integration 0:09:56.040 --> 0:09:58.679 of Disney and Fox in a way is still not 0:09:58.800 --> 0:10:01.400 a d percent complete, and I think there needs to 0:10:01.480 --> 0:10:06.760 be this finality to it. Ross. Did you buy more 0:10:06.880 --> 0:10:10.920 Disney shares on Monday? Well, you know, I run a 0:10:11.000 --> 0:10:12.839 public E t F. G K is my e t 0:10:13.000 --> 0:10:15.480 F and and I did buy Disney today and and 0:10:15.960 --> 0:10:19.679 I don't know if that's been actually posted yet, um, 0:10:20.400 --> 0:10:24.120 but but it's posted anyways at five o'clock Eastern, so 0:10:24.640 --> 0:10:28.679 the markets are closed. So I did by Disney aggressively today. 0:10:29.400 --> 0:10:31.200 All right, let's think about the other company. I think 0:10:31.240 --> 0:10:34.400 it's wildly undervalued. I think it's wildly undervalued. And and 0:10:34.520 --> 0:10:38.120 with Eiger back, I think it's a whole another business 0:10:38.200 --> 0:10:41.640 to look at. Now, another business to look at Twitter, 0:10:42.360 --> 0:10:46.280 you're an investor in the private entity. Bloomberg reported that 0:10:46.559 --> 0:10:51.360 layoffs continued Monday, focus on sales and marketing. What do 0:10:51.480 --> 0:10:54.120 you make of that? Well, I think you're going to 0:10:54.200 --> 0:10:56.640 see the same thing at Disney. So I think if 0:10:56.679 --> 0:10:59.680 you look at tech companies across the board, um, Twitter 0:10:59.800 --> 0:11:02.640 and Fluted and probably more extreme than most, is we're 0:11:02.679 --> 0:11:07.520 seeing this resizing of the tech industry across the entire industry. 0:11:08.000 --> 0:11:09.800 And and that's really part of that is from the 0:11:10.120 --> 0:11:13.439 pandemic boom to now bust. Uh and now you know, 0:11:13.600 --> 0:11:16.679 also just a more realistic view of what costs and 0:11:16.840 --> 0:11:20.560 content are going to be used and achieved. But Twitter 0:11:20.800 --> 0:11:23.920 was wildly overstaffed and and now they're going to move 0:11:24.000 --> 0:11:28.040 to a staff level that's probably wildly understaffed, and then 0:11:28.040 --> 0:11:30.800 they're gonna build, and they're gonna build by hiring. So 0:11:31.280 --> 0:11:34.000 I think people are thinking like, oh, this is gonna 0:11:34.040 --> 0:11:36.600 like be the permanent size of Twitter will be extremely small, 0:11:36.640 --> 0:11:38.559 and I don't think that's correct. What this is going 0:11:38.640 --> 0:11:42.400 on is a corporate restructuring where a new culture is 0:11:42.440 --> 0:11:44.800 being built at Twitter, and one that will be much 0:11:44.880 --> 0:11:48.199 more productive for the company, the users, and its shareholders. 0:11:48.960 --> 0:11:52.079 Your perspective there was I'm interested in what though might 0:11:52.280 --> 0:11:56.920 occur with a luck says wildly understaffed all their risks 0:11:57.000 --> 0:12:00.679 all their concerns while it is so well, I've been 0:12:01.120 --> 0:12:04.199 you know, monitoring Twitter, you know, very closely from my 0:12:04.280 --> 0:12:07.679 own experiential, uh point of view to see if there 0:12:07.800 --> 0:12:12.760 has been any change, and I've actually would argue that 0:12:12.840 --> 0:12:16.280 Twitter is better now that Ellen has taken over then before. 0:12:16.600 --> 0:12:18.640 The engagement on Twitter has been off the charts over 0:12:18.679 --> 0:12:20.280 the last couple of weeks. Not to mention all the 0:12:20.360 --> 0:12:24.959 news and information, but Twitter is still the most incredible 0:12:25.080 --> 0:12:28.960 source of news besides Bloomberg. When you're looking at Sam 0:12:29.040 --> 0:12:33.360 Banquin Freed live tweeting during his fraud, you know it's 0:12:33.440 --> 0:12:36.520 it's only on Twitter. And so whether if I want 0:12:36.600 --> 0:12:39.480 news on Ukraine, I'm sorry, I have to go to Twitter. 0:12:39.840 --> 0:12:43.520 And so it's a crucially important news and information site 0:12:43.559 --> 0:12:46.120 and one that Ellen is working very hard to protect. 0:12:46.160 --> 0:12:48.000 Its integrating and I think twitters as good as ever 0:12:49.200 --> 0:12:52.160 Russ as an investor in Twitter who wants a long 0:12:52.320 --> 0:12:55.800 term return, one thing you want to see Elon must 0:12:55.840 --> 0:13:01.800 do with the platform ad add creator engagement opportunities. So 0:13:02.160 --> 0:13:05.200 by adding YouTube and you know these kind of features 0:13:05.240 --> 0:13:08.120 where creators can get on the platform and make a living. Um, 0:13:08.360 --> 0:13:11.640 we post a lot of video on on Twitter and YouTube, 0:13:11.679 --> 0:13:14.640 and and everybody has to monetize through YouTube. So I 0:13:14.720 --> 0:13:20.120 think the creator opportunity on Twitter as a platform is enormous, 0:13:20.320 --> 0:13:23.720 and I think YouTube should be scared. All Right, Rosco, 0:13:23.880 --> 0:13:27.439 the CEO and co founder of the Kawasaki Thank You, 0:13:27.840 --> 0:13:30.880 coming out. We'll have the latest on the ticket Master 0:13:31.120 --> 0:13:34.959 and Taylor Swift debacle and the d j's role in 0:13:35.040 --> 0:13:48.000 all of this. This is blamed. Let's talk about Live 0:13:48.120 --> 0:13:50.760 Nations ticket Master, the system crash that of course dashed 0:13:50.800 --> 0:13:53.400 the hopes of Mania. Taylors were found for a concert ticket. 0:13:53.800 --> 0:13:57.000 Turns out, long after the Justice Department started probing into 0:13:57.040 --> 0:13:59.839 all of this to think whether Live Nation is a 0:14:00.080 --> 0:14:02.679 using its power of the live music industry. That's all 0:14:02.679 --> 0:14:05.400 according to sources, and pleased to save new meg intelligences. 0:14:05.440 --> 0:14:07.760 And Jennifer Ree is here when more on this end 0:14:07.760 --> 0:14:09.800 because we want to be discussing with Jennifer the great 0:14:09.920 --> 0:14:12.040 deck that she put out full blue Meg Intelligence about 0:14:12.280 --> 0:14:14.240 why aren't you reminding us this isn't the first time 0:14:14.320 --> 0:14:16.319 the d o J has got interested in what was 0:14:16.320 --> 0:14:22.080 an emin ad done years ago. Jennifer, Yeah, so you 0:14:22.160 --> 0:14:24.600 know this has been going on for a really long time. 0:14:24.720 --> 0:14:26.720 You know, I think the Taylor Swift debacle kind of 0:14:26.800 --> 0:14:29.640 brought this to the headlines. But honestly, there have been 0:14:29.680 --> 0:14:32.400 critics of Live Nation and groups that have called for 0:14:32.520 --> 0:14:34.960 the deal that was closed in two thousand ten to 0:14:35.080 --> 0:14:37.960 be unwound by the d J really ever since it closed. 0:14:38.360 --> 0:14:41.480 And the DJ started investigating after settling with the companies 0:14:41.480 --> 0:14:44.280 in two thousand ten, probably as early as two thousand twelve, 0:14:44.360 --> 0:14:47.520 only a few years after they actually were merged, because 0:14:47.560 --> 0:14:50.280 they believed that they were already violating in consent agreement 0:14:50.320 --> 0:14:52.440 that they signed in two thousand ten. Now I don't 0:14:52.480 --> 0:14:55.120 know exactly when that investigation started, but what had ended 0:14:55.200 --> 0:14:57.240 was in two thousand nineteen, and the d o J said, 0:14:57.320 --> 0:15:00.240 in fact, we do believe they've been violating these terms 0:15:00.280 --> 0:15:03.000 they were supposed to behave in a certain way towards venues. 0:15:03.040 --> 0:15:05.080 They promised to behave in that way, not to force 0:15:05.240 --> 0:15:08.120 or coerce the venues to use Ticketmaster, allow them to 0:15:08.200 --> 0:15:10.920 use rivals to Ticketmaster, and in fact they've renigged on that. 0:15:11.440 --> 0:15:14.040 So we're going to enter another settlement with them. And 0:15:14.120 --> 0:15:16.680 that settlement was signed in late two thousand nineteen. And 0:15:16.800 --> 0:15:18.440 now I think what's going to happen. Is the d 0:15:18.600 --> 0:15:20.800 J is going to look again to see are they 0:15:20.840 --> 0:15:24.200 still violating that newer amended agreement from two thousand nineteen, 0:15:24.520 --> 0:15:26.760 and are they even doing more in the market that's 0:15:26.760 --> 0:15:31.120 anti competitive? Jen, what's the threshold this time around? What 0:15:31.320 --> 0:15:34.080 is it that they'd be looking for that would be 0:15:34.280 --> 0:15:37.640 enough for an enforcement action? You know, that's a good question, 0:15:37.720 --> 0:15:40.880 and they actually have two different thresholds because the consent 0:15:41.080 --> 0:15:44.440 order that they agreed to in two thousand nineteen lowered 0:15:44.480 --> 0:15:47.200 the threshold. This is something Live Nation agreed to for 0:15:47.320 --> 0:15:49.600 the d o J to show that they've been violating 0:15:49.680 --> 0:15:52.320 that consent order. So if they're trying to show that, hey, 0:15:52.400 --> 0:15:55.240 they agreed to this, they're not abiding by these terms, 0:15:55.720 --> 0:15:57.840 we have a pretty low threshold to prove that that's 0:15:57.880 --> 0:16:01.320 what's happening in court. So that's why threshold um. I 0:16:01.400 --> 0:16:03.360 think this is the kind of proof and evidence that's 0:16:03.360 --> 0:16:05.240 fairly easy for the d o J to collect. They 0:16:05.360 --> 0:16:07.160 just go out and talk to venues and find out 0:16:07.240 --> 0:16:10.640 what their communications have been with Live Nation and with Ticketmaster. 0:16:11.080 --> 0:16:12.480 But I think the second thing the d o J 0:16:12.680 --> 0:16:15.880 might be looking at is more broadly is Live Nation 0:16:15.960 --> 0:16:20.000 and Ticketmaster entering into exclusive agreements with so many big 0:16:20.120 --> 0:16:23.600 venues that they're basically blocking out smaller rivals who can 0:16:23.680 --> 0:16:26.960 no longer contract with those venues because they're exclusive to Ticketmaster. 0:16:27.400 --> 0:16:29.960 That's a little bit of a higher threshold something I 0:16:30.040 --> 0:16:33.080 think they could also prove in court though. If you 0:16:33.160 --> 0:16:36.080 are a company with market dominance, and it's alleged here 0:16:36.120 --> 0:16:39.040 that Live Nation does have market dominance, it is illegal 0:16:39.200 --> 0:16:42.280 to tie up more than about thirty five of the outlet, 0:16:42.560 --> 0:16:44.920 And if that's what they're doing with these exclusive agreements 0:16:45.000 --> 0:16:48.960 or quasi exclusive agreements, that would violate the antitrust laws. Jennifer, 0:16:50.080 --> 0:16:51.960 when the measure had is a long time ago. Yes, 0:16:52.760 --> 0:16:54.680 told to us about the speed at which any of 0:16:54.720 --> 0:16:58.600 this I could unfold, Well, it's really slow. I mean, 0:16:58.680 --> 0:17:01.320 as you heard, the mergers in according to the d 0:17:01.440 --> 0:17:03.200 o J when they came out with papers in two 0:17:03.200 --> 0:17:06.840 thousand nineteen, the deal had been violated since two thousand twelve, right, 0:17:06.880 --> 0:17:09.520 and they didn't settle into till two nineteen. So these 0:17:09.560 --> 0:17:12.040 investigations can go for two or three years. But I 0:17:12.160 --> 0:17:15.520 think that the DJ investigation that's ongoing now did start 0:17:15.560 --> 0:17:17.320 a few years ago. You know, I went back and 0:17:17.400 --> 0:17:19.800 I looked at how often we at Bloomberg Intelligence had 0:17:19.840 --> 0:17:22.840 published about antitrust problems Live Nation could have, and we 0:17:22.920 --> 0:17:25.560 wrote in two thousand eighteen, we wrote in two thousand nineteen, 0:17:25.560 --> 0:17:27.560 and we wrote in two thousand twenty. So I think 0:17:27.600 --> 0:17:29.880 it's very possible something could happen next year in two 0:17:29.920 --> 0:17:33.240 thousand twenty three, and enforcement action more likely than a settlement. 0:17:34.520 --> 0:17:37.800 All right, Bloomberg Intelligence is Jennifer Ree, Thank you, Thank 0:17:37.880 --> 0:17:49.719 you time now for our top tech calls. Moffatt Nathanson 0:17:49.880 --> 0:17:53.600 upgrading Disney to outperform, expecting the company to re examine 0:17:53.800 --> 0:17:57.240 a streaming strategy after reinstating bob IgA to the top job. 0:17:57.520 --> 0:18:00.720 Self driving tech name Mobili initiated with the street high 0:18:00.760 --> 0:18:03.560 seventy seven dollar price target. It's City Group. The firm 0:18:03.760 --> 0:18:06.000 has put a by rating on Mobili, saying there's a 0:18:06.080 --> 0:18:10.240 path to hitting fifty billion dollars of revenue by and finally, 0:18:10.440 --> 0:18:14.399 Argust downgrading online and car vending machine company car Varna 0:18:14.520 --> 0:18:17.240 to sell. The firm says the company will struggle to 0:18:17.359 --> 0:18:20.240 make a profit as used car prices continue to drop. 0:18:20.320 --> 0:18:30.560 Those of your top techles welcome back to putting back technology. 0:18:30.640 --> 0:18:33.159 Some breaking news, of course, to fall out after the 0:18:33.240 --> 0:18:36.320 reappointment of Bob Iger at Disney. We understand that at 0:18:36.359 --> 0:18:41.440 the moment he's asking Disney managers to reconsider the corporate structure. Already, 0:18:41.520 --> 0:18:44.360 we've started to see that the distribution chief, Kareem Daniel, 0:18:44.440 --> 0:18:46.960 is stepping deep down. We understand, of course this executive 0:18:47.040 --> 0:18:49.760 was particularly close to Bob Jpeck. So Bob Igor is 0:18:49.760 --> 0:18:52.920 announcing changes in a company memo as it stands, So 0:18:53.080 --> 0:18:57.040 Kareem Daniel, being the chairman of Media and Entertainment Distribution, 0:18:57.520 --> 0:18:59.639 will continue to bring you all the latest when it 0:18:59.680 --> 0:19:02.840 comes to dis Knee and some of the restructuring there. Meanwhile, though, 0:19:02.880 --> 0:19:05.920 there's restructure and going across technology more broadly, mass tech 0:19:06.000 --> 0:19:08.720 layoffs have left hundreds of workers living right here in 0:19:08.760 --> 0:19:11.800 the United States on just temporary visas, were little or 0:19:11.880 --> 0:19:14.320 next to no time to find another job, and indeed 0:19:14.320 --> 0:19:16.600 they have to leave the country. And how could this 0:19:16.760 --> 0:19:19.440 change the U S tech landscape more broadly, Yeah, it's 0:19:19.440 --> 0:19:22.040 an interesting one. Tech companies rely on the H one 0:19:22.480 --> 0:19:26.160 B visa for computer engineering talent right from all around 0:19:26.160 --> 0:19:28.959 the world. The numbers behind this Bloomberg analysis of fascinating 0:19:29.440 --> 0:19:32.440 H one B vis has captin a five thousand per year. 0:19:32.920 --> 0:19:36.320 This group of six tech companies on your screen are 0:19:36.440 --> 0:19:40.640 behind forty five thousand of them, both new and renewed 0:19:40.880 --> 0:19:43.399 over the last three years. Just those six names, alan 0:19:43.480 --> 0:19:46.080 As you can see from the chart, H one bees 0:19:46.160 --> 0:19:49.040 make up a significant okay, not a majority, but a 0:19:49.119 --> 0:19:53.439 significant amount of the overall workforce. So to answer your question, 0:19:53.600 --> 0:19:55.359 if a tech workers laid off and they have to 0:19:55.440 --> 0:19:58.040 return home to their home nation as a result of 0:19:58.080 --> 0:20:00.600 losing their job, there's a cost to the lawyer that 0:20:00.760 --> 0:20:02.680 has to be covered for the travel back to that 0:20:02.800 --> 0:20:05.440 home nation. The cost is also a big part of 0:20:05.480 --> 0:20:08.560 this story, right, Why are layoffs happening? Cost saving measures 0:20:08.600 --> 0:20:10.960 are a part of it. H one B visas also 0:20:11.119 --> 0:20:14.840 carry higher average pay. Generally speaking, the national average for 0:20:14.960 --> 0:20:16.880 H one B in terms of pay, if we bring 0:20:17.000 --> 0:20:19.200 up that next chart, is around a hundred and six 0:20:19.280 --> 0:20:23.119 thousand dollars per H one B visa employee. But you 0:20:23.160 --> 0:20:25.879 look across the tech sector again those same six names, 0:20:26.240 --> 0:20:29.440 that average pushes higher and higher in terms of the 0:20:29.560 --> 0:20:32.800 salary than an H one B visa employee can command. 0:20:33.200 --> 0:20:35.399 And things are changing. Think about all the reports we've 0:20:35.440 --> 0:20:38.280 done recently, Caroline on Twitter, those staff that have been 0:20:38.320 --> 0:20:40.840 laid off here in the United States, and the reporting 0:20:40.920 --> 0:20:42.880 that the Bloomberg has done about them trying to find 0:20:42.920 --> 0:20:46.000 new roles talking with recruiters. I really encourage the audience 0:20:46.160 --> 0:20:48.960 go on Bloomberg dot com, get your Business Week magazine 0:20:49.000 --> 0:20:51.240 hard copy and take a look at this story. Fascinating 0:20:51.560 --> 0:20:54.720 data analysis and all over linked in many getting onto 0:20:55.160 --> 0:20:58.880 communication with across WhatsApp using any technology outlet really possible 0:20:59.000 --> 0:21:01.560 to try and find mind a new sponsor. I used 0:21:01.560 --> 0:21:04.200 to White Dixon White Chief people Officer and legal advisor 0:21:04.400 --> 0:21:07.320 can bring us her expertise, of course, previously held legal 0:21:07.359 --> 0:21:09.879 and HR positions at Disney. At we work and are 0:21:09.960 --> 0:21:12.760 used to. This is a really emotional time for many. 0:21:12.880 --> 0:21:15.919 The dependency of certain people upon their companies to sponsor them, 0:21:15.960 --> 0:21:18.720 to let them remain a mortgage pair in the US, 0:21:18.920 --> 0:21:22.119 their children remain at school here. Overall the company the 0:21:22.920 --> 0:21:25.680