1 00:00:04,200 --> 00:00:12,280 Speaker 1: Way down. So walking around Venice, the beach town in 2 00:00:12,320 --> 00:00:15,960 Speaker 1: Los Angeles, not the tourist destination in Italy, you see 3 00:00:16,000 --> 00:00:19,480 Speaker 1: the most eclectic mix of people. About twenty years ago 4 00:00:19,560 --> 00:00:22,160 Speaker 1: you could actually have parrots and snakes on you and 5 00:00:22,200 --> 00:00:25,000 Speaker 1: take photos and that sort of change. They didn't want 6 00:00:25,000 --> 00:00:26,920 Speaker 1: a lot of wildlife on the borderwalk. But now you 7 00:00:26,960 --> 00:00:31,480 Speaker 1: have tattoo artists, you have Hanna tattoo, t shirt sales people, psychics, 8 00:00:31,880 --> 00:00:36,720 Speaker 1: palm readers, dancers, you have. That's decent Moore, his essential 9 00:00:36,840 --> 00:00:39,680 Speaker 1: character for today. He's lived in Venice for more than 10 00:00:39,720 --> 00:00:42,720 Speaker 1: twenty years now. It's a normality and that's part of 11 00:00:42,720 --> 00:00:44,879 Speaker 1: the culture here. And they're all over from the you know, 12 00:00:44,920 --> 00:00:47,519 Speaker 1: all different parts of the world. You know, musicians that 13 00:00:47,560 --> 00:00:49,560 Speaker 1: want to get a break. Yeah, Janis Joplin walking on 14 00:00:49,600 --> 00:00:52,560 Speaker 1: the streets, Jim Morrison doing poetry back in the day. 15 00:00:52,560 --> 00:00:54,680 Speaker 1: I mean, you have that creative spirit and you don't 16 00:00:54,680 --> 00:00:56,320 Speaker 1: know who you're standing next to that could be the 17 00:00:56,360 --> 00:01:01,800 Speaker 1: next rock star. But lately new elements have joined this quirky, 18 00:01:01,960 --> 00:01:06,399 Speaker 1: vibrant mix. So this is now Snapchat. The white building 19 00:01:06,400 --> 00:01:10,200 Speaker 1: across Snapchat. This blue building right here is Snapchat that 20 00:01:10,280 --> 00:01:14,160 Speaker 1: used to be an apartment complex for Ages. I've drove 21 00:01:14,240 --> 00:01:18,240 Speaker 1: by last night and there were you haul moving bands 22 00:01:18,360 --> 00:01:22,200 Speaker 1: moving residents out of these apartments. So this literally has 23 00:01:22,160 --> 00:01:26,480 Speaker 1: happened within the last month. That's Jason talking with Jim Rob, 24 00:01:26,680 --> 00:01:31,440 Speaker 1: another concern resident of Venice. Jim's lived here for even 25 00:01:31,520 --> 00:01:37,480 Speaker 1: longer than Jason has. Since. You see corporate badges, clip 26 00:01:37,520 --> 00:01:42,640 Speaker 1: to belt loops, private security guards patrolling public sidewalks, homes 27 00:01:42,680 --> 00:01:46,160 Speaker 1: and offices that changed hands recently to a single owner 28 00:01:46,319 --> 00:01:48,960 Speaker 1: that always keeps the blinds closed to keep their work 29 00:01:49,000 --> 00:01:54,000 Speaker 1: a mystery. Some locals are terrified that their quirky, bohemian 30 00:01:54,080 --> 00:01:58,800 Speaker 1: paradise is turning into the sterile corporate campus a beachfront 31 00:01:58,840 --> 00:02:01,840 Speaker 1: office park for snap app, which is a parent company 32 00:02:01,880 --> 00:02:05,559 Speaker 1: of the social media app Snapchat. And Jason and Jim 33 00:02:05,640 --> 00:02:07,960 Speaker 1: were concerned enough to invite us to l A to 34 00:02:08,160 --> 00:02:18,160 Speaker 1: see what's going on. Hi, I'm Sarah Fryar and I'm 35 00:02:18,160 --> 00:02:21,560 Speaker 1: aki Ito, And this week on Decrypted, we're taking you 36 00:02:21,680 --> 00:02:25,320 Speaker 1: to the historic beach town where snap is rapidly expanding. 37 00:02:25,639 --> 00:02:29,360 Speaker 1: You'll hear from residents, business owners, politician, and this being 38 00:02:29,440 --> 00:02:33,519 Speaker 1: southern California, maybe even a celebrity or two. Yeah. All 39 00:02:33,600 --> 00:02:37,280 Speaker 1: these people who are mad, sad, anxious for a variety 40 00:02:37,320 --> 00:02:40,640 Speaker 1: of reasons we'll get into today. And people in Venice 41 00:02:40,720 --> 00:02:43,760 Speaker 1: worry it's just about to get a whole lot worse 42 00:02:44,160 --> 00:02:46,800 Speaker 1: with Snaps. I p o plan for March that's going 43 00:02:46,840 --> 00:02:49,320 Speaker 1: to make a lot of money for its young employees. 44 00:02:49,680 --> 00:02:53,280 Speaker 1: So what is Snap's obligation to this beach town and 45 00:02:53,520 --> 00:02:57,160 Speaker 1: what can they do to try to fix this paranoia 46 00:02:57,200 --> 00:03:15,760 Speaker 1: and mistrust with their neighbors. Stay with us to find now. So, Sarah, 47 00:03:15,840 --> 00:03:18,680 Speaker 1: you and I visited Venice Southern Week. It was a 48 00:03:18,680 --> 00:03:21,880 Speaker 1: gorgeous day. I was sweating in this long sleeve shirt 49 00:03:21,919 --> 00:03:25,480 Speaker 1: I'd worn from San Francisco. And what struck me as 50 00:03:25,720 --> 00:03:28,400 Speaker 1: we walked around with Jason and Jim was it's not 51 00:03:28,480 --> 00:03:31,960 Speaker 1: like we're talking about this gigantic building going up. It's 52 00:03:32,160 --> 00:03:34,560 Speaker 1: really different from what we see here in Silicon Valley. 53 00:03:34,680 --> 00:03:37,720 Speaker 1: Like Google has this whole campus in Mountain View, where 54 00:03:37,920 --> 00:03:41,040 Speaker 1: Twitter has their headquarters in the skyscraper in mid market 55 00:03:41,080 --> 00:03:45,080 Speaker 1: San Francisco. This is a bunch of tiny buildings, in 56 00:03:45,120 --> 00:03:48,920 Speaker 1: some cases just one or two floors, scattered all around 57 00:03:48,960 --> 00:03:52,760 Speaker 1: the most touristy and residential parts of town, right on 58 00:03:52,800 --> 00:03:56,720 Speaker 1: the beach in many cases, and these buildings aren't labeled 59 00:03:56,760 --> 00:03:59,839 Speaker 1: with the Snapchat logo that yellow and white ghosts we've 60 00:03:59,840 --> 00:04:03,640 Speaker 1: all scene, or even the company's name. As a tourist 61 00:04:03,720 --> 00:04:06,880 Speaker 1: visiting Venice, you might not even know that Snap was 62 00:04:06,960 --> 00:04:10,320 Speaker 1: there unless you knew what you were looking for. Like 63 00:04:10,400 --> 00:04:14,559 Speaker 1: the presidents of security guards up front wearing park ranger hats, 64 00:04:14,600 --> 00:04:17,280 Speaker 1: and the vans that are shuttling their workers to and 65 00:04:17,320 --> 00:04:20,719 Speaker 1: from snaps various buildings, and the fact that they're blinds 66 00:04:20,720 --> 00:04:23,360 Speaker 1: are all drawn when this gorgeous beaches right in front 67 00:04:23,360 --> 00:04:26,880 Speaker 1: of them. Snap is known for its secrecy, but a 68 00:04:26,920 --> 00:04:29,599 Speaker 1: lot of residents don't know what they do and don't 69 00:04:29,640 --> 00:04:32,440 Speaker 1: know how to feel about them, and the lack of 70 00:04:32,440 --> 00:04:34,919 Speaker 1: transparency everywhere just made it to the point where it's like, 71 00:04:35,480 --> 00:04:37,520 Speaker 1: all right, if we want to find transparency, let's at 72 00:04:37,560 --> 00:04:39,800 Speaker 1: least speak to the people in the community. Let's hear 73 00:04:39,839 --> 00:04:42,680 Speaker 1: their voices, and then let's do our investigation and see 74 00:04:42,720 --> 00:04:44,640 Speaker 1: what's actually going on with the zoning, going on, with 75 00:04:44,720 --> 00:04:46,760 Speaker 1: the real estate going on with it all, because there's 76 00:04:46,800 --> 00:04:48,520 Speaker 1: a lot of opinion, there's a lot of rumors, but 77 00:04:48,600 --> 00:04:53,240 Speaker 1: actually to uncover and see what they're doing and what's going. Yeah, 78 00:04:53,640 --> 00:04:57,839 Speaker 1: the destic time and we're Jason was Paris Hilton's manager 79 00:04:57,960 --> 00:05:01,240 Speaker 1: for ten years, and now he represents people who are 80 00:05:01,279 --> 00:05:04,640 Speaker 1: professional video game players, which, by the way, is a 81 00:05:04,720 --> 00:05:07,880 Speaker 1: totally fascinating world of its own and something we're going 82 00:05:07,920 --> 00:05:11,560 Speaker 1: to feature on this podcast in the very near future. Anyway, 83 00:05:11,680 --> 00:05:14,440 Speaker 1: that's all to say, Jason is not your typical local 84 00:05:14,440 --> 00:05:17,880 Speaker 1: community activists. He said, he's just kind of stumbled into 85 00:05:17,920 --> 00:05:19,839 Speaker 1: all this about a couple of months ago when he 86 00:05:19,880 --> 00:05:22,800 Speaker 1: saw Evan Spiegel, who's the CEO of Snap, on the 87 00:05:22,839 --> 00:05:26,040 Speaker 1: roof of the art gallery next to his office. Jason 88 00:05:26,080 --> 00:05:29,040 Speaker 1: worried that if Snap was buying that art gallery, his 89 00:05:29,240 --> 00:05:32,240 Speaker 1: office might be next. So that's where you saw Evan 90 00:05:32,800 --> 00:05:34,560 Speaker 1: walking up there on the roof here, Yeah, he was 91 00:05:34,640 --> 00:05:36,520 Speaker 1: up on the roof there. How did you tell with him? 92 00:05:36,680 --> 00:05:39,599 Speaker 1: You can see where's jeans, white shoes, white shirt, and 93 00:05:39,640 --> 00:05:43,599 Speaker 1: he looks like Evan Spiegel. You pretty much so has 94 00:05:43,680 --> 00:05:46,240 Speaker 1: like if you brand yourself, I mean, Zucker Works got 95 00:05:46,240 --> 00:05:48,560 Speaker 1: a hoodie. Evan's got his white shoes and white shirt 96 00:05:48,720 --> 00:05:51,920 Speaker 1: and you know they all kind of jobs had his turtlenecks, 97 00:05:51,920 --> 00:05:54,480 Speaker 1: so you kind of know what they look like. But 98 00:05:54,640 --> 00:05:58,520 Speaker 1: maybe Evan Spiegel, just like Art, Jason and his fellow 99 00:05:58,560 --> 00:06:02,120 Speaker 1: residence are not a sense sure what SNAP owns, but 100 00:06:02,360 --> 00:06:05,880 Speaker 1: they're trying to connect the dots like d I Y detectives. 101 00:06:06,520 --> 00:06:09,000 Speaker 1: On their walks around the city. They're noting where snaps 102 00:06:09,040 --> 00:06:12,200 Speaker 1: fans are parked and SNAP security guards are placed, and 103 00:06:12,240 --> 00:06:14,680 Speaker 1: they're digging through the city property records to see if 104 00:06:14,680 --> 00:06:18,040 Speaker 1: they can find hints of what SNAP owns. Here's Jason 105 00:06:18,040 --> 00:06:20,560 Speaker 1: talking to a local business owner, Patrick Liberty, who we 106 00:06:20,680 --> 00:06:24,000 Speaker 1: ran into on the Venice boardwalk. Well, they owned Gingerbreight Court. 107 00:06:24,000 --> 00:06:26,480 Speaker 1: Now they own it. Yeah, they bought it from Yeah, 108 00:06:26,520 --> 00:06:28,400 Speaker 1: and they're slowly going to take everybody out. So the 109 00:06:28,400 --> 00:06:31,000 Speaker 1: back has already been leased. You sure they bought it, Yeah, 110 00:06:31,040 --> 00:06:34,280 Speaker 1: they bought it. Who told you that it's under the zoning? 111 00:06:34,360 --> 00:06:40,080 Speaker 1: The addresses match other addresses, nobody does, and they and 112 00:06:40,120 --> 00:06:42,600 Speaker 1: they bought and they bought it when the Snap was 113 00:06:42,720 --> 00:06:44,800 Speaker 1: open back in the day. So it's probably one of 114 00:06:44,800 --> 00:06:47,359 Speaker 1: the first purchases that they did with anybody knowing. Nobody 115 00:06:47,440 --> 00:06:51,000 Speaker 1: knew that. I heard that they were behind this and 116 00:06:51,040 --> 00:06:53,680 Speaker 1: they building the building. They are and they found out 117 00:06:53,680 --> 00:06:55,200 Speaker 1: and that kind of threw a Crowbar. We're going to 118 00:06:55,279 --> 00:06:57,719 Speaker 1: go speak with Martha Cherish, who's the one that kind 119 00:06:57,720 --> 00:07:05,960 Speaker 1: of spearheaded to stop. It's that, I guess they The 120 00:07:06,279 --> 00:07:09,600 Speaker 1: Gingerbread Court they're talking about here is one of the 121 00:07:09,600 --> 00:07:13,600 Speaker 1: most famous buildings in town. It's right on the boardwalk, 122 00:07:13,720 --> 00:07:18,480 Speaker 1: this brick structure, originally owned by Charlie Chaplin. It's got 123 00:07:18,520 --> 00:07:22,200 Speaker 1: a short alleyway lined by small shops. Jason and Jim 124 00:07:22,240 --> 00:07:24,080 Speaker 1: showed us a print out of a spreadsheet and a 125 00:07:24,160 --> 00:07:27,520 Speaker 1: map they've compiled with twenty buildings that they think are 126 00:07:27,560 --> 00:07:31,000 Speaker 1: currently owned released by the company. We ran this list 127 00:07:31,040 --> 00:07:33,640 Speaker 1: by a person familiar with SNAPS real estate holdings, who 128 00:07:33,960 --> 00:07:37,960 Speaker 1: told us it contained several errors, but that person did 129 00:07:38,000 --> 00:07:40,760 Speaker 1: confirm that Jason was right about the ginger By Court, 130 00:07:41,240 --> 00:07:46,239 Speaker 1: at least the part that's office space. As we're walking 131 00:07:46,280 --> 00:07:49,280 Speaker 1: down the boardwalk, we talked to some artists around the 132 00:07:49,360 --> 00:07:53,160 Speaker 1: same age as SNAPS employees. They sleep on the beach, 133 00:07:53,320 --> 00:07:56,840 Speaker 1: they paint on scrap wood, They sell their art on 134 00:07:56,880 --> 00:08:00,880 Speaker 1: the boardwalk right in front of SNAPS offices. But they 135 00:08:00,920 --> 00:08:03,920 Speaker 1: said the employees never stopped to buy their art or 136 00:08:04,040 --> 00:08:07,280 Speaker 1: even taking interest. They said that they don't even say Hi. 137 00:08:08,720 --> 00:08:12,040 Speaker 1: Patrick Liberty. That business owner who we met earlier told 138 00:08:12,080 --> 00:08:15,200 Speaker 1: a similar story. He runs Venice Liberty, a T shirt 139 00:08:15,200 --> 00:08:18,480 Speaker 1: shop on the boardwalk, and he lost his parking spot 140 00:08:18,520 --> 00:08:22,480 Speaker 1: when Snap occupied some space nearby. He's tried over and 141 00:08:22,600 --> 00:08:25,000 Speaker 1: over to get them to make an exception, at least 142 00:08:25,080 --> 00:08:28,320 Speaker 1: for a long time resident. I wrote him a letter, 143 00:08:28,560 --> 00:08:31,120 Speaker 1: gave a T shirt. So I go up there. You 144 00:08:31,160 --> 00:08:34,199 Speaker 1: can't even ring the buzzer up at sixty four marketing 145 00:08:34,240 --> 00:08:36,160 Speaker 1: men without two guards on either side of you think, 146 00:08:36,200 --> 00:08:37,560 Speaker 1: and I help you. And I said, well, I got 147 00:08:37,600 --> 00:08:41,680 Speaker 1: this letter, and I want to I could never get pasted. 148 00:08:41,679 --> 00:08:43,480 Speaker 1: The first time I gave it to security guard because 149 00:08:43,480 --> 00:08:45,480 Speaker 1: that's all I could get past. And the second time 150 00:08:45,800 --> 00:08:48,200 Speaker 1: I come back with another letter, you know, and even more. 151 00:08:48,559 --> 00:08:51,000 Speaker 1: And by the third letter in the T shirt, I'm going, hey, 152 00:08:51,040 --> 00:08:53,480 Speaker 1: look man, you know it's just a parking spot. You 153 00:08:53,520 --> 00:08:55,960 Speaker 1: know you've got lots of them. I live here, and 154 00:08:56,000 --> 00:08:57,560 Speaker 1: you know you came and took it, took it away 155 00:08:57,600 --> 00:08:59,200 Speaker 1: from his beat. You know, I got mad at her. 156 00:09:00,240 --> 00:09:02,400 Speaker 1: I could never The only person I ever solways the 157 00:09:02,440 --> 00:09:05,280 Speaker 1: security guard, these guys walking around in khakis. That's as 158 00:09:05,320 --> 00:09:08,520 Speaker 1: far as I ever got. You cannot email and you 159 00:09:08,559 --> 00:09:12,440 Speaker 1: can't call him, you can't see them. Patrick said that 160 00:09:12,640 --> 00:09:15,920 Speaker 1: since Snap moved into the area, sales at his T 161 00:09:16,040 --> 00:09:19,800 Speaker 1: shirt shop haven't grown enough to offset the increase in rent. 162 00:09:20,440 --> 00:09:22,679 Speaker 1: We met up with another guy who got priced out 163 00:09:22,720 --> 00:09:27,200 Speaker 1: of his storefront altogether. His name Cesario Montano and goes 164 00:09:27,240 --> 00:09:30,640 Speaker 1: by the nickname Block. Snapchat just bought this whole street up. 165 00:09:31,080 --> 00:09:33,880 Speaker 1: So like my shop was right in that red building, 166 00:09:34,200 --> 00:09:37,320 Speaker 1: that's an historical building. But the rent is going crazy 167 00:09:37,360 --> 00:09:40,280 Speaker 1: around here. You know, Block closed down his own shop 168 00:09:40,360 --> 00:09:43,760 Speaker 1: about a year ago. According to the real estate brokerage 169 00:09:43,840 --> 00:09:47,640 Speaker 1: c b r E, asking rents for off space in 170 00:09:47,760 --> 00:09:52,560 Speaker 1: Venice have more than doubled just over the last three years. 171 00:09:52,600 --> 00:09:56,360 Speaker 1: You know, Snaps bringing in this over abundance of wealth. 172 00:09:57,720 --> 00:10:01,280 Speaker 1: Nobody could compete with billion dollars. How much money did 173 00:10:01,280 --> 00:10:04,760 Speaker 1: they make? How much they're worth? Billions? Right, so they 174 00:10:04,800 --> 00:10:07,120 Speaker 1: got a few money, they're coming over a few. Here's 175 00:10:07,800 --> 00:10:09,760 Speaker 1: three million. Get out. I don't care. I want it, 176 00:10:10,320 --> 00:10:12,880 Speaker 1: I want the street, I want it, I want silicone beach. 177 00:10:21,800 --> 00:10:24,120 Speaker 1: The funny thing was, as we were talking to Block, 178 00:10:24,320 --> 00:10:26,920 Speaker 1: he saw one of his old friends and called her over. 179 00:10:27,480 --> 00:10:30,439 Speaker 1: She had just been hired by Snapped, improved the company's 180 00:10:30,480 --> 00:10:34,640 Speaker 1: relationship with the community. But on top of being media shy, 181 00:10:34,679 --> 00:10:37,600 Speaker 1: Snap is in what's known as a quiet period ahead 182 00:10:37,640 --> 00:10:40,560 Speaker 1: of its March i p O, which means it's not 183 00:10:40,600 --> 00:10:44,360 Speaker 1: supposed to be publicly commenting on its business. Once Block's 184 00:10:44,400 --> 00:10:47,160 Speaker 1: friend figured out who we were, she excused herself and 185 00:10:47,200 --> 00:10:50,400 Speaker 1: walked away, saying she couldn't talk to the press. And 186 00:10:50,480 --> 00:10:52,200 Speaker 1: by the way, this i p O is going to 187 00:10:52,240 --> 00:10:56,160 Speaker 1: bring even more money into the community. To Evans, Spiegel 188 00:10:56,200 --> 00:10:59,400 Speaker 1: alone may make more than five hundred million dollars just 189 00:10:59,600 --> 00:11:02,160 Speaker 1: from the i p O, and the early employees and 190 00:11:02,240 --> 00:11:05,280 Speaker 1: executives of the company will soon finally be able to 191 00:11:05,320 --> 00:11:09,240 Speaker 1: cash out on their stakes. As we just heard, Block 192 00:11:09,400 --> 00:11:12,920 Speaker 1: is suspicious of all this money. But it's not like 193 00:11:13,000 --> 00:11:15,840 Speaker 1: he's not used to hanging out with rich people. He's 194 00:11:15,880 --> 00:11:18,800 Speaker 1: a photographer and works a lot with the music industry. 195 00:11:19,360 --> 00:11:21,760 Speaker 1: And you just kind of gradually mentioned to us at 196 00:11:21,800 --> 00:11:24,320 Speaker 1: one point that he was hanging out with Brihanna at 197 00:11:24,320 --> 00:11:28,280 Speaker 1: a Grammy's after party the night before. In Venice, people 198 00:11:28,320 --> 00:11:32,160 Speaker 1: are proud of their local stars. They'll say, that's where 199 00:11:32,280 --> 00:11:35,679 Speaker 1: Robert Downey Jr. Has a house, That's where Arnold Schwarzenegger 200 00:11:35,800 --> 00:11:39,120 Speaker 1: used to work out. But there's something about these tech 201 00:11:39,160 --> 00:11:43,200 Speaker 1: guys that rubs them the wrong way. They don't want 202 00:11:43,200 --> 00:11:45,120 Speaker 1: to talk to you in the local bars anymore. They 203 00:11:45,160 --> 00:11:47,120 Speaker 1: don't really associate with you if you're not if you 204 00:11:47,120 --> 00:11:51,360 Speaker 1: don't have tech vocabulary, they don't. They're like, you're a local, 205 00:11:51,400 --> 00:11:52,839 Speaker 1: You're look at the way I addressed you know, I'm 206 00:11:52,840 --> 00:11:55,760 Speaker 1: from around here. They have nothing to say to me. 207 00:11:56,120 --> 00:11:58,960 Speaker 1: They're like, I have nothing in common with you. I'm 208 00:11:59,000 --> 00:12:01,440 Speaker 1: here to do my tech job. And that's kind of 209 00:12:01,480 --> 00:12:05,720 Speaker 1: the attitude. Our next stop on our Whirlwind tour was 210 00:12:05,720 --> 00:12:09,480 Speaker 1: a spiritual community center run by the actor Andrew Keegan. 211 00:12:09,840 --> 00:12:11,680 Speaker 1: If you need a visual, this is the guy who 212 00:12:11,679 --> 00:12:14,920 Speaker 1: played Joey, the antagonists in the film Ten Things I 213 00:12:14,960 --> 00:12:19,800 Speaker 1: Hate About You. There's obviously so many different issues going 214 00:12:19,800 --> 00:12:23,920 Speaker 1: on in our community, and again, my focus here in 215 00:12:23,960 --> 00:12:28,720 Speaker 1: this space is really bringing community members together that are 216 00:12:29,200 --> 00:12:31,640 Speaker 1: the ones that are like us in the middle of 217 00:12:31,679 --> 00:12:34,480 Speaker 1: all of this, and we really would love to see them, 218 00:12:34,520 --> 00:12:36,600 Speaker 1: you know, put some of their resources and really that 219 00:12:36,640 --> 00:12:41,040 Speaker 1: integration idea of involving their employees and getting to know 220 00:12:41,120 --> 00:12:45,800 Speaker 1: community members, you know, um, not just walking by them 221 00:12:45,840 --> 00:12:49,320 Speaker 1: half in jest. He also had one last tidbit of advice. 222 00:12:49,920 --> 00:12:52,280 Speaker 1: Snapchat just needs to throw us a big party. That's 223 00:12:52,320 --> 00:12:56,520 Speaker 1: the solution, I think from this sponsor a big party, 224 00:12:56,840 --> 00:12:59,680 Speaker 1: I can understand the sentiment. I mean, I remember as 225 00:12:59,720 --> 00:13:01,880 Speaker 1: a kid it going to Venice with my family and 226 00:13:01,920 --> 00:13:04,319 Speaker 1: seeing all the culture and the skateboarding and the art, 227 00:13:04,880 --> 00:13:07,839 Speaker 1: getting lost in the crowd rollerblading. Yeah, this was my 228 00:13:08,000 --> 00:13:11,160 Speaker 1: first time in Venice, but I was completely swept up 229 00:13:11,160 --> 00:13:14,560 Speaker 1: by its charm to The tallest building we saw was 230 00:13:14,600 --> 00:13:18,520 Speaker 1: maybe four stories high. The beachfront was lined with mom 231 00:13:18,520 --> 00:13:22,440 Speaker 1: and pop stores, not a single brand like Starbucks on 232 00:13:22,480 --> 00:13:25,640 Speaker 1: the boardwalk, more than a couple of whips of pot. 233 00:13:25,760 --> 00:13:29,800 Speaker 1: There's something really sentimental about Venice. And then here comes 234 00:13:29,880 --> 00:13:32,480 Speaker 1: this red hot startup making an app that a lot 235 00:13:32,559 --> 00:13:36,240 Speaker 1: of the residents don't use and don't understand, buying up 236 00:13:36,320 --> 00:13:39,680 Speaker 1: or leasing what seems like everything that becomes available. Run 237 00:13:39,679 --> 00:13:42,640 Speaker 1: by this twenty six year old rich guy. It's pretty 238 00:13:42,679 --> 00:13:45,280 Speaker 1: symbolic of this clash of history with a new hot thing, 239 00:13:45,559 --> 00:13:50,840 Speaker 1: which is ironic because presumably it's exactly this renegade artist, 240 00:13:51,080 --> 00:13:56,679 Speaker 1: independent skateboarding hip culture that Venice has preserved that attracted 241 00:13:56,679 --> 00:13:59,800 Speaker 1: Evan Spiegel to Venice in the first place. He went 242 00:13:59,840 --> 00:14:03,439 Speaker 1: to college at Stanford, right in the heart of Silicon Valley, 243 00:14:03,520 --> 00:14:06,920 Speaker 1: and yet he left all those sprawling corporate campuses in 244 00:14:07,080 --> 00:14:10,360 Speaker 1: VC firms for Venice, where he's had to buy and 245 00:14:10,520 --> 00:14:14,920 Speaker 1: least these tiny buildings piecemeal. Evan Spegel even talked about 246 00:14:14,960 --> 00:14:17,319 Speaker 1: it in a video of the company made for investors 247 00:14:17,320 --> 00:14:19,320 Speaker 1: for the I p O. It was filmed in the 248 00:14:19,360 --> 00:14:22,040 Speaker 1: Blue House on the Boardwalk, right where the company got 249 00:14:22,080 --> 00:14:25,680 Speaker 1: its first office. He and co founder and CTO Bobby 250 00:14:25,760 --> 00:14:29,880 Speaker 1: Murphy exude pride and nostalgia for those early days when 251 00:14:29,880 --> 00:14:33,880 Speaker 1: they first decided on Venice. I can remember when we 252 00:14:33,960 --> 00:14:36,600 Speaker 1: first got this building as our office. There were eight 253 00:14:36,640 --> 00:14:38,600 Speaker 1: of us, and you know, our dream had always been 254 00:14:38,640 --> 00:14:40,760 Speaker 1: to have an office on the beach. You right here, 255 00:14:40,960 --> 00:14:42,160 Speaker 1: you know, there used to be a table, and this 256 00:14:42,200 --> 00:14:44,440 Speaker 1: is where we built stories and where we planned the 257 00:14:44,480 --> 00:14:47,800 Speaker 1: evolution of the product that the world has experienced in 258 00:14:47,840 --> 00:14:50,200 Speaker 1: the last few years. It's pretty surreal being here. I mean, 259 00:14:50,280 --> 00:14:53,080 Speaker 1: I can distinctly remember that the first day that myself, Evan, 260 00:14:53,800 --> 00:14:55,760 Speaker 1: David and Daniel came here to check out this place, 261 00:14:55,800 --> 00:14:57,800 Speaker 1: and we thought it was pretty big for what we 262 00:14:57,840 --> 00:14:59,960 Speaker 1: needed at the time. I think within just a few 263 00:15:00,000 --> 00:15:01,680 Speaker 1: of months he filled this place of the brand of 264 00:15:01,680 --> 00:15:05,040 Speaker 1: about people. There's just a really, really exciting time that 265 00:15:05,080 --> 00:15:07,280 Speaker 1: was the period of this company. To be fair to Snap, 266 00:15:07,360 --> 00:15:10,600 Speaker 1: they're not the first to spark change in Venice. It's 267 00:15:10,600 --> 00:15:14,120 Speaker 1: been a long time coming. Google came even before Snap, 268 00:15:14,160 --> 00:15:17,000 Speaker 1: taking up two blocks of buildings maybe a ten minute 269 00:15:17,000 --> 00:15:20,360 Speaker 1: walk inland from the beach, and there's Abbot Kenney Boulevard 270 00:15:20,440 --> 00:15:23,160 Speaker 1: which has all these fancy shops and restaurants on it. 271 00:15:23,760 --> 00:15:26,160 Speaker 1: This is what Lulio told me. He works for real 272 00:15:26,280 --> 00:15:30,480 Speaker 1: estate brokerage in Venice. Um, so Snap's not new, you know, 273 00:15:30,600 --> 00:15:33,640 Speaker 1: they're just here with Google replacing some things that were 274 00:15:33,680 --> 00:15:39,680 Speaker 1: here before. Um, it's just that. Um, the the people 275 00:15:39,680 --> 00:15:43,000 Speaker 1: who seem to have an issue with what's going on 276 00:15:43,080 --> 00:15:48,000 Speaker 1: with prices increasing on real estate, prices increasing for rent, 277 00:15:48,520 --> 00:15:53,000 Speaker 1: the lack of commercial vacancy space to put a office 278 00:15:53,160 --> 00:15:58,480 Speaker 1: or a restaurant or retail space. You know those folks. UM, 279 00:15:58,600 --> 00:16:00,640 Speaker 1: I don't think anything would ever make those folks happy. 280 00:16:02,560 --> 00:16:06,160 Speaker 1: As Snap rapidly added more employees, it could have looked 281 00:16:06,160 --> 00:16:09,320 Speaker 1: to other beach towns in l A. There's Santa Monica, 282 00:16:09,360 --> 00:16:12,480 Speaker 1: on one side, which is way built up, and there's 283 00:16:12,560 --> 00:16:16,600 Speaker 1: Playa del Rey where Google and Yahoo have campuses. There's 284 00:16:16,720 --> 00:16:20,320 Speaker 1: tons of office space there too. Yeah, those areas welcome 285 00:16:20,400 --> 00:16:23,600 Speaker 1: tech companies with open arms. And I really think of 286 00:16:23,640 --> 00:16:26,360 Speaker 1: any other town and city desperate to attract jobs in 287 00:16:26,400 --> 00:16:29,840 Speaker 1: the face of a changing economy. That's something that Mark 288 00:16:29,960 --> 00:16:33,080 Speaker 1: Ravick talked about when Jason and Jim took us to 289 00:16:33,120 --> 00:16:36,200 Speaker 1: go meet him in a cafe. Mark is running for 290 00:16:36,240 --> 00:16:39,560 Speaker 1: a seat on the Los Angeles City Council to represent 291 00:16:39,680 --> 00:16:44,000 Speaker 1: Venice and its surrounding neighborhoods. The clash between local residents 292 00:16:44,000 --> 00:16:47,040 Speaker 1: and Snap has become a key issue in the race. 293 00:16:47,680 --> 00:16:52,760 Speaker 1: The primary takes place on March seven. My sense is 294 00:16:52,840 --> 00:16:56,320 Speaker 1: that they are simply an add on to the UM 295 00:16:56,600 --> 00:17:01,120 Speaker 1: direction that at the Venice and this entire coastal area 296 00:17:01,600 --> 00:17:04,479 Speaker 1: stretching all the way, oddly, stretching all the way from 297 00:17:04,520 --> 00:17:08,920 Speaker 1: Santa Monica down to Elsa Gundo, in this marriage of 298 00:17:10,040 --> 00:17:17,480 Speaker 1: Internet marketing and and and in film and TV content UM. 299 00:17:17,680 --> 00:17:21,280 Speaker 1: And it's really for me exciting to see. And I 300 00:17:21,400 --> 00:17:26,960 Speaker 1: don't see a downside UM at all, because one of 301 00:17:26,960 --> 00:17:29,000 Speaker 1: the things comes when comes with it is a lot 302 00:17:29,080 --> 00:17:33,320 Speaker 1: of discretionary dollars on behalf of those employees, and they're 303 00:17:33,480 --> 00:17:37,800 Speaker 1: spending it to boost the economy in really remarkable way. 304 00:17:38,240 --> 00:17:41,879 Speaker 1: This was not what Jason wanted to hear. He showed 305 00:17:41,880 --> 00:17:44,760 Speaker 1: Mark that map of all the places you think snap 306 00:17:44,800 --> 00:17:48,600 Speaker 1: owns or is trying to lease. Mark countered that those 307 00:17:48,600 --> 00:17:53,080 Speaker 1: twenty or so properties are infinitesimal compared to the total 308 00:17:53,200 --> 00:17:56,600 Speaker 1: real estate in Venice. And that's when things got heated. 309 00:17:57,280 --> 00:17:58,719 Speaker 1: It's all right for you to have an office there, 310 00:17:58,800 --> 00:18:00,480 Speaker 1: but not all all right first up to to have 311 00:18:00,520 --> 00:18:02,199 Speaker 1: an office there, I wouldn't be able to have an 312 00:18:02,200 --> 00:18:04,320 Speaker 1: office with them. No, no, no, you're not following you. 313 00:18:04,640 --> 00:18:06,439 Speaker 1: It's okay for you to have an office there, but 314 00:18:06,480 --> 00:18:08,760 Speaker 1: not okay for Snapchat to have an office there. Why 315 00:18:08,880 --> 00:18:11,520 Speaker 1: is your office more important than their office? I guess 316 00:18:11,520 --> 00:18:14,080 Speaker 1: it's not good because it's your office, I guess. I 317 00:18:14,119 --> 00:18:16,040 Speaker 1: guess it's not a good thing to be a resident 318 00:18:16,000 --> 00:18:18,640 Speaker 1: of Venice. When you leave, somebody will, you know, rent 319 00:18:18,640 --> 00:18:23,280 Speaker 1: your place and they'll be a resident. I'm being the 320 00:18:23,280 --> 00:18:27,080 Speaker 1: devil's advocate here, But isn't isn't What you're rejecting to 321 00:18:27,240 --> 00:18:29,399 Speaker 1: is change and the fact that change might affect you 322 00:18:30,040 --> 00:18:34,360 Speaker 1: as opposed to the use because office to office, why 323 00:18:34,400 --> 00:18:36,960 Speaker 1: can't I use it? Why? You know, why should I 324 00:18:37,000 --> 00:18:43,200 Speaker 1: be pushed out? Um, because we do exist in a 325 00:18:43,280 --> 00:18:48,440 Speaker 1: capitalist society and they'll pay more than you with Again, 326 00:18:48,480 --> 00:18:50,760 Speaker 1: you may not like that, but that is what's what's 327 00:18:50,800 --> 00:18:54,479 Speaker 1: going on. So how are you as a council member 328 00:18:54,920 --> 00:18:58,600 Speaker 1: to be to represent us with that attitude? Gonna get 329 00:18:58,640 --> 00:19:03,320 Speaker 1: support from residents saying hey, deal with change. I may not. 330 00:19:03,720 --> 00:19:13,000 Speaker 1: You know, one has to say what one believes. Then 331 00:19:13,040 --> 00:19:17,920 Speaker 1: we hopped into Jason's Thunderbird and we drove to Robin 332 00:19:18,040 --> 00:19:21,639 Speaker 1: Rudis Sill's house on the beach. Robbin's also running in 333 00:19:21,680 --> 00:19:24,879 Speaker 1: the city council race, and we've recounted the conversation we 334 00:19:25,040 --> 00:19:28,000 Speaker 1: just had with Mark drivek No, I don't think any 335 00:19:28,000 --> 00:19:32,199 Speaker 1: anybody in Venice grey except well yeah, but um, you know, 336 00:19:33,400 --> 00:19:38,640 Speaker 1: it's it's not really a stimulus because um, it's taking 337 00:19:39,119 --> 00:19:42,280 Speaker 1: uh some some of the people have the higher paid jobs, 338 00:19:42,320 --> 00:19:44,320 Speaker 1: you know, it's not a sort of the medium or 339 00:19:44,320 --> 00:19:48,000 Speaker 1: lower paid jobs that we would probably need here in Venice. Also, 340 00:19:48,080 --> 00:19:52,159 Speaker 1: they're getting this huge tax um credit from the city, 341 00:19:52,920 --> 00:19:57,440 Speaker 1: so they're not even getting a stimulus to tax business taxes. 342 00:19:57,680 --> 00:20:01,600 Speaker 1: Um really so just come in here, have all these people, 343 00:20:02,000 --> 00:20:05,160 Speaker 1: you know, drive up the prices of our homes, take 344 00:20:05,320 --> 00:20:10,920 Speaker 1: our residential units and turn them into offices. And we're 345 00:20:10,920 --> 00:20:13,920 Speaker 1: not talking just a few, We're talking a lot of 346 00:20:14,359 --> 00:20:16,840 Speaker 1: a lot of that has been done. And I wouldn't 347 00:20:16,960 --> 00:20:19,920 Speaker 1: say that's the gift at all. That's had a very 348 00:20:20,520 --> 00:20:27,320 Speaker 1: detrimental impact on Venice because losing housing has caused people 349 00:20:27,359 --> 00:20:29,760 Speaker 1: to have to move out of Venice that thought they'd 350 00:20:29,760 --> 00:20:33,000 Speaker 1: be here all their lives, you know, so being they're 351 00:20:33,040 --> 00:20:35,520 Speaker 1: being forced out because of this. This point came up 352 00:20:35,520 --> 00:20:39,040 Speaker 1: in our conversations with a lot of other residents too, 353 00:20:39,280 --> 00:20:42,600 Speaker 1: who think snaps breaking the law by having offices in 354 00:20:42,720 --> 00:20:46,479 Speaker 1: residential areas. But here's what the real estate agent LU 355 00:20:46,600 --> 00:20:49,560 Speaker 1: said about that. You know, the majority of the places 356 00:20:49,600 --> 00:20:52,800 Speaker 1: that these folks have taken have been you know, commercially 357 00:20:53,520 --> 00:20:57,040 Speaker 1: zone properties, and if the closest thing that they would 358 00:20:57,040 --> 00:21:02,199 Speaker 1: be too, you know, residential, would be live workspace in 359 00:21:02,240 --> 00:21:05,200 Speaker 1: a commercial zone that just happens to have the use 360 00:21:05,280 --> 00:21:09,240 Speaker 1: code of live work I'm not an attorney, but you know, 361 00:21:09,320 --> 00:21:12,000 Speaker 1: if you if you if you look at the letter 362 00:21:12,040 --> 00:21:14,800 Speaker 1: of the law on the way that you know that 363 00:21:15,040 --> 00:21:17,920 Speaker 1: code is loosely written, it can be interpreted several ways, 364 00:21:18,800 --> 00:21:22,399 Speaker 1: and the community members who actually have interactions with Snap 365 00:21:22,440 --> 00:21:27,520 Speaker 1: employees do have some pretty nice things to say. Here's 366 00:21:27,640 --> 00:21:31,760 Speaker 1: Kristen Poulia, the CEO of ps Arts, a local nonprofit 367 00:21:31,840 --> 00:21:36,520 Speaker 1: supporting the arts for kids. We work with many corporate 368 00:21:36,840 --> 00:21:39,639 Speaker 1: partners in our schools, and I don't think I've had 369 00:21:39,760 --> 00:21:42,520 Speaker 1: nearly the amount of face time, nearly the amount of 370 00:21:42,920 --> 00:21:47,960 Speaker 1: volunteer activity that Snap has has put forward. And then 371 00:21:48,000 --> 00:21:53,760 Speaker 1: on top of that, the financial commitment has been so thoughtful. 372 00:21:53,840 --> 00:21:55,920 Speaker 1: You know that they come to us as the experts, 373 00:21:55,960 --> 00:21:58,240 Speaker 1: They say, what is it that the kids need, what 374 00:21:58,440 --> 00:22:01,119 Speaker 1: is going to be the best for this community, and 375 00:22:01,160 --> 00:22:04,000 Speaker 1: they let us design it. So I think they have 376 00:22:04,119 --> 00:22:12,440 Speaker 1: been incredibly responsible UM contributors un characteristically so. She talked 377 00:22:12,440 --> 00:22:16,600 Speaker 1: about Snap employees painting with the kids, sticking around longer 378 00:22:16,640 --> 00:22:20,919 Speaker 1: than necessary, coming up with ideas for new programs. And 379 00:22:20,960 --> 00:22:23,800 Speaker 1: here's Barry Cohen, the principle of a local elementary school, 380 00:22:24,280 --> 00:22:27,440 Speaker 1: you know, dealing with some other companies nearby and trying 381 00:22:27,480 --> 00:22:30,800 Speaker 1: to scare funds from them for different programs. It's been 382 00:22:30,840 --> 00:22:33,600 Speaker 1: a lot more red tape. UM. I feel like with 383 00:22:33,680 --> 00:22:36,320 Speaker 1: snap it was. They said, this is a good thing. 384 00:22:36,400 --> 00:22:41,800 Speaker 1: We want to do it um and they did. At 385 00:22:41,840 --> 00:22:44,199 Speaker 1: the end of the night, Jason and Jim organized a 386 00:22:44,240 --> 00:22:46,960 Speaker 1: cocktail hour for us at a bar next to Jason's office. 387 00:22:47,320 --> 00:22:49,560 Speaker 1: It was called the Canal Club. He had been telling 388 00:22:49,560 --> 00:22:51,280 Speaker 1: people all day that they could show up if they 389 00:22:51,280 --> 00:22:53,640 Speaker 1: wanted to talk to a couple of reporters. We didn't 390 00:22:53,680 --> 00:22:56,440 Speaker 1: know what to expect. They took us to this room 391 00:22:56,440 --> 00:22:59,480 Speaker 1: in the back and I counted at least forty people 392 00:22:59,560 --> 00:23:03,040 Speaker 1: in there, everyone from a young mother holding a baby 393 00:23:03,480 --> 00:23:05,359 Speaker 1: to a couple of people who looked old enough to 394 00:23:05,400 --> 00:23:09,119 Speaker 1: be grandparents. They sat around a few big tables that 395 00:23:09,160 --> 00:23:12,360 Speaker 1: were pushed together, and when the seats filled up, more 396 00:23:12,480 --> 00:23:16,719 Speaker 1: people crammed into the back of the room standing up. 397 00:23:17,040 --> 00:23:20,120 Speaker 1: Yeah is you could just give your name and say 398 00:23:20,160 --> 00:23:22,879 Speaker 1: why you came and what's going on in your world. 399 00:23:23,680 --> 00:23:25,840 Speaker 1: We passed around the mike for the people who wanted 400 00:23:25,880 --> 00:23:31,880 Speaker 1: to talk. The real reason, the real reason all these 401 00:23:31,880 --> 00:23:34,280 Speaker 1: people are here, The real reason all these people are 402 00:23:34,320 --> 00:23:37,240 Speaker 1: here is because they're all a bunch of freaks living 403 00:23:37,520 --> 00:23:40,200 Speaker 1: inventor speech and they're afraid that all these all these 404 00:23:40,200 --> 00:23:43,199 Speaker 1: strike people, all these streak people are gonna come in 405 00:23:43,240 --> 00:23:45,760 Speaker 1: and stir up the peat patch and level it all out. 406 00:23:46,000 --> 00:23:47,600 Speaker 1: I mean, just look around. You can see they're all 407 00:23:47,600 --> 00:23:51,400 Speaker 1: a bunch of freaks. That's what that's that's the bottom 408 00:23:51,400 --> 00:23:53,760 Speaker 1: line right there. You want to be a freak and 409 00:23:53,840 --> 00:23:56,800 Speaker 1: stay a freak. That's it. We also heard from people 410 00:23:56,840 --> 00:23:59,120 Speaker 1: like Kelly Blair. She lives in the house right by 411 00:23:59,160 --> 00:24:02,560 Speaker 1: a building that's SNAP recently moved into. There's like two 412 00:24:02,640 --> 00:24:05,120 Speaker 1: hundred people a day going in that building. That cannot 413 00:24:05,280 --> 00:24:08,760 Speaker 1: be legal, Like it cannot it can't be. And so 414 00:24:08,920 --> 00:24:12,280 Speaker 1: my um up, my driveway is often being used as 415 00:24:12,320 --> 00:24:15,960 Speaker 1: their uber stop or their security guard stop, or what 416 00:24:16,040 --> 00:24:19,040 Speaker 1: happens on Ocean Front or on Speedway, which is a road, 417 00:24:19,160 --> 00:24:21,840 Speaker 1: not a parking lot. They just line up their cars 418 00:24:21,880 --> 00:24:24,080 Speaker 1: at six o'clock, five o'clock, their little shuttles that take 419 00:24:24,119 --> 00:24:26,920 Speaker 1: them everywhere, and they park they park on on Speedway. 420 00:24:27,200 --> 00:24:29,399 Speaker 1: And I have got into another point that came up 421 00:24:29,440 --> 00:24:32,600 Speaker 1: a lot was run ins with the security staff patrolling 422 00:24:32,640 --> 00:24:37,360 Speaker 1: Snaps various offices. People just don't like being looked at 423 00:24:37,400 --> 00:24:40,679 Speaker 1: and judged while they walked down their familiar streets. And 424 00:24:40,760 --> 00:24:43,399 Speaker 1: what we also heard was the sense that Snap was 425 00:24:43,480 --> 00:24:46,240 Speaker 1: kind of getting to operate under a different set of 426 00:24:46,320 --> 00:24:49,480 Speaker 1: rules in everyone else. I just want to add one 427 00:24:49,480 --> 00:24:54,280 Speaker 1: more thing. All io companies in the city get an 428 00:24:54,320 --> 00:24:58,960 Speaker 1: eighty percent business tax break. We don't us individual Mama 429 00:24:59,040 --> 00:25:05,320 Speaker 1: Pop personally. People in this room own a business wow, 430 00:25:06,800 --> 00:25:11,000 Speaker 1: and we don't get a text. But just to say 431 00:25:11,040 --> 00:25:14,119 Speaker 1: whatever incentive may have just for our listeners, I was 432 00:25:14,200 --> 00:25:22,639 Speaker 1: like probably three quarters of the room okay. So that 433 00:25:22,720 --> 00:25:25,959 Speaker 1: leaves us here with two very different sides to the story. 434 00:25:26,640 --> 00:25:28,880 Speaker 1: One of the residents upset with Snap and the other 435 00:25:29,320 --> 00:25:31,879 Speaker 1: of people that really think Snap is doing its best 436 00:25:32,000 --> 00:25:35,119 Speaker 1: to offset the very real pains that any successful growing 437 00:25:35,160 --> 00:25:39,959 Speaker 1: company can bring to a relatively small neighborhood. And like 438 00:25:40,000 --> 00:25:42,800 Speaker 1: a lot of conflicts, the two sides aren't even operating 439 00:25:42,800 --> 00:25:46,000 Speaker 1: with the same set of facts. And we heard actor 440 00:25:46,200 --> 00:25:49,879 Speaker 1: Andrew Keegan bring this up earlier. But residents were just 441 00:25:50,000 --> 00:25:53,720 Speaker 1: clamoring for a form for them to actually talk to Snap. 442 00:25:54,119 --> 00:25:56,119 Speaker 1: I think that's why so many people showed up to 443 00:25:56,160 --> 00:25:59,239 Speaker 1: our cocktail hour. A couple of people even thought we 444 00:25:59,240 --> 00:26:02,200 Speaker 1: were representing the company. We just had to keep reminding 445 00:26:02,240 --> 00:26:06,719 Speaker 1: them that we were journalists. It's probably because the residents 446 00:26:06,880 --> 00:26:10,760 Speaker 1: weren't getting any information from Snap that their concerns had 447 00:26:11,000 --> 00:26:14,679 Speaker 1: escalated into this full blown crisis, that they had to 448 00:26:14,680 --> 00:26:18,680 Speaker 1: rely on people like Jason and Jim digging into property records, 449 00:26:18,840 --> 00:26:22,040 Speaker 1: passing along rumors, some of which were true and some 450 00:26:22,160 --> 00:26:25,119 Speaker 1: of which were not. What you don't know is so 451 00:26:25,200 --> 00:26:28,080 Speaker 1: much scarier than what's out there in the open. We 452 00:26:28,160 --> 00:26:31,760 Speaker 1: heard their residents use words like sneaky and secretive a 453 00:26:31,760 --> 00:26:34,679 Speaker 1: lot on our trip, and it did remind me of 454 00:26:34,840 --> 00:26:37,720 Speaker 1: my past dealings with the company. I remember the very 455 00:26:37,760 --> 00:26:40,160 Speaker 1: first time that I went to Venice to visit them, 456 00:26:40,240 --> 00:26:43,760 Speaker 1: I wasn't even allowed inside the offices. We had our 457 00:26:43,800 --> 00:26:48,600 Speaker 1: meeting on the boardwalk. In the meantime, this could become 458 00:26:48,640 --> 00:26:52,679 Speaker 1: a real business liability for Snap. In their filing for 459 00:26:52,760 --> 00:26:55,480 Speaker 1: their I p O, they do mention a risk factor 460 00:26:55,600 --> 00:26:58,360 Speaker 1: that because they don't have a corporate campus, it may 461 00:26:58,400 --> 00:27:03,640 Speaker 1: actually affect their their morale among employees. And then there's 462 00:27:03,680 --> 00:27:08,199 Speaker 1: this whole issue of future expansion. They could double, triple, 463 00:27:08,280 --> 00:27:10,520 Speaker 1: quadruple in the coming years if you look at the 464 00:27:10,520 --> 00:27:13,080 Speaker 1: growth of Facebook and Google and other companies that came 465 00:27:13,080 --> 00:27:16,240 Speaker 1: before them, that's certainly what they're expecting. Yeah, it's got 466 00:27:16,240 --> 00:27:19,000 Speaker 1: to be pretty hard for Evans Spiegel to run this 467 00:27:19,520 --> 00:27:23,840 Speaker 1: nearly two thousand person company this way, with employee spread 468 00:27:23,880 --> 00:27:27,200 Speaker 1: out across an entire beach town having to be shuttled 469 00:27:27,280 --> 00:27:30,600 Speaker 1: from one office to another instead of getting this chance 470 00:27:30,680 --> 00:27:34,159 Speaker 1: to all be together in a single headquarters. Snap might 471 00:27:34,200 --> 00:27:37,080 Speaker 1: get something like that eventually, and recent reports have come 472 00:27:37,119 --> 00:27:40,439 Speaker 1: out about their interests and expansion in nearby Santa Monica, 473 00:27:40,600 --> 00:27:51,239 Speaker 1: which would certainly give them more space. That's it for 474 00:27:51,280 --> 00:27:54,920 Speaker 1: this week's episode of Decrypted. Thanks for listening, tell Us 475 00:27:55,000 --> 00:27:58,960 Speaker 1: has the tech industry Gentrified. Your community record as a 476 00:27:59,040 --> 00:28:01,640 Speaker 1: voice memo and send it to us at Decrypted at 477 00:28:01,680 --> 00:28:04,800 Speaker 1: Bloomberg dot net, or you can write to me on 478 00:28:04,840 --> 00:28:08,480 Speaker 1: Twitter I'm at Sarah Fryar and I'm at aki Ito seven. 479 00:28:08,880 --> 00:28:12,199 Speaker 1: You could subscribe to Decrypted on iTunes or wherever you 480 00:28:12,280 --> 00:28:15,399 Speaker 1: get your podcasts and leave us a rating and review. 481 00:28:16,040 --> 00:28:18,560 Speaker 1: That helps us make our show better and it also 482 00:28:18,640 --> 00:28:21,840 Speaker 1: gets our podcasts in front of more listeners. This episode 483 00:28:21,920 --> 00:28:25,800 Speaker 1: was produced by Pierre get Kari Magnus Hendrickson and Liz Smith. 484 00:28:26,160 --> 00:28:29,600 Speaker 1: A very special thank you to reporter Shelley Hagen who 485 00:28:29,720 --> 00:28:32,320 Speaker 1: helps so much in the reporting and the research for 486 00:28:32,400 --> 00:28:36,720 Speaker 1: today's show. Alec McCabe is head of Bloomberg Podcasts. We'll 487 00:28:36,760 --> 00:28:42,760 Speaker 1: see you next week.