WEBVTT - Marcelo Claure's New Venture and Microsoft's Activision Blizzard Takeover 0:00:01.560 --> 0:00:05.840 From Marhart where Innovation, Money and power Collie in Silicon 0:00:05.960 --> 0:00:10.400 Vallet NBN. This is Bloomberg Technology with Caroline Hyde and 0:00:10.640 --> 0:00:11.240 Ed Ludlove. 0:00:25.200 --> 0:00:28.400 I'm Caroline Hyde at Bloomberg's world headquarters in New York, and. 0:00:28.280 --> 0:00:31.240 I'm Med Ludlow in San Francisco. This is Bloomberg Technology. 0:00:31.400 --> 0:00:34.879 Coming up, we sit down with Marcello Clara's launching a 0:00:34.920 --> 0:00:37.640 new venture firm focused on Latin America, aiming to raise 0:00:37.800 --> 0:00:40.120 half a billion dollars for its inaugural fund. 0:00:44.200 --> 0:00:47.800 Plus bar hurdles facing the Microsoft's sixty nine billion dollar 0:00:47.880 --> 0:00:51.599 takeover of Activision Blizzard. We'll discuss why a US judge 0:00:51.800 --> 0:00:54.440 is temporary blocking the deal and Google. 0:00:54.240 --> 0:00:56.560 Hit with charges by the EU for abusing its ad 0:00:56.560 --> 0:00:59.200 tech dominance. We break down what's next with the process 0:00:59.200 --> 0:01:02.600 that could take years to resolve. For first, let's check 0:01:02.600 --> 0:01:04.600 in on these markets at the moment, Ed, because it 0:01:04.680 --> 0:01:07.720 is a day of macro consequences, a day when we 0:01:07.760 --> 0:01:08.920 wait for the Federal Reserve to. 0:01:08.840 --> 0:01:11.039 Come out, Will it pause the market expects? 0:01:11.040 --> 0:01:12.600 So S and P five hundred on a roll on 0:01:12.640 --> 0:01:15.160 its longest winning streak, So is November twenty twenty one. 0:01:15.160 --> 0:01:17.080 If we hold onto these gains then a's like one hundred. 0:01:17.080 --> 0:01:19.200 Also on the higher side, Big tech on top, we're 0:01:19.280 --> 0:01:20.840 up by five tenths of a percent. The US two 0:01:20.920 --> 0:01:23.440 year are actually interestingly falling on the day as people 0:01:23.480 --> 0:01:25.040 really do think that the Federal Reserve is going to 0:01:25.040 --> 0:01:28.560 be forced to pause that PPI data that focus on 0:01:28.600 --> 0:01:31.920 inflation actually showing some easing once again today, So people 0:01:31.959 --> 0:01:33.440 thinking good news is good news at the moment, and 0:01:33.520 --> 0:01:35.039 let's pick it on a look to the risk asset 0:01:35.040 --> 0:01:37.000 of choice when it comes to our world of technology. 0:01:37.040 --> 0:01:39.119 Bitcoin having a bit of a volatile day, but look, 0:01:39.120 --> 0:01:41.640 we're holding up to five tens of percent gains this 0:01:41.840 --> 0:01:44.440 as we start to see maybe some reprieve and the 0:01:44.440 --> 0:01:48.240 anxiety around finance in particular and their particular token we're 0:01:48.240 --> 0:01:51.400 seeing at the moment are weekening the US dollar versus bitcoin. 0:01:51.440 --> 0:01:53.400 We're at twenty nine hundred and seventy six. What have 0:01:53.440 --> 0:01:54.640 you got in terms of the micro. 0:01:54.560 --> 0:01:56.080 Ed Yeah, single names. 0:01:56.120 --> 0:01:58.360 In terms of movers to the upside, Tesla, we continue 0:01:58.360 --> 0:02:00.760 to track. It's kind of flirted between g and losses, 0:02:00.760 --> 0:02:02.640 but if it is up at the close, it will 0:02:02.640 --> 0:02:05.040 be a fourteenth straight day of gains for Tesla, more 0:02:05.040 --> 0:02:07.960 than two hundred and forty billion dollars of market cap 0:02:08.000 --> 0:02:10.160 has been added in that run. You get into the numbers, 0:02:10.320 --> 0:02:12.800 that two hundred and forty billion dollar market cap gain 0:02:13.200 --> 0:02:16.440 is bigger than the standing market cap of ninety percent 0:02:16.639 --> 0:02:19.200 of the Nasdaq one hundred. We look at RSI Relative 0:02:19.200 --> 0:02:21.639 Strength Index, and this is a stock that is very 0:02:21.720 --> 0:02:25.320 much in over bought territory around eighty eight. Anything over 0:02:25.360 --> 0:02:28.639 seventy is over bought. Two kind of news movers out 0:02:28.639 --> 0:02:32.120 there as well. First of all, Alphabet, parent company of Google, 0:02:32.160 --> 0:02:34.520 moving to the downside just three tenths of one percent, 0:02:34.560 --> 0:02:38.800 pairing some deeper losses. The EU has accused Google of 0:02:39.040 --> 0:02:42.639 abusing its dominant position in ad tech. We will bring 0:02:42.639 --> 0:02:45.000 you those details from Brussels later in the program. And 0:02:45.080 --> 0:02:48.040 in Vidia unstoppable on one point nine percent and a 0:02:48.080 --> 0:02:51.760 fresh record for the name in AI. You think AI, 0:02:51.840 --> 0:02:54.120 you're buying in video because you think the GPUs are 0:02:54.120 --> 0:02:55.960 where it's at. If you want to get skin in 0:02:56.000 --> 0:02:58.240 the game for LLLM building. 0:02:58.240 --> 0:02:59.679 Tell you who else is unstoppable. 0:03:00.040 --> 0:03:03.520 Marcella Claring, the former chief operating officer of SoftBank, got 0:03:03.560 --> 0:03:05.959 a new gig executive chairman managing partner of his own 0:03:06.000 --> 0:03:08.840 bench firm, Bicycle Capital. The firm is already a mass 0:03:08.880 --> 0:03:11.080 four hundred and twenty million dollars in commitments so far 0:03:11.280 --> 0:03:13.600 for it's inaugural fund, and I'm so pleased to say 0:03:13.600 --> 0:03:17.160 that we're not only joined by Marcello, but Shuniata, Bicycle's 0:03:17.160 --> 0:03:19.799 other managing partner, also of SoftBank, someone that we've spoken 0:03:19.840 --> 0:03:23.000 to previously on shows and Bloomberg events. Welcome both of 0:03:23.040 --> 0:03:27.760 you racing to us. Asello, you're targeting five hundred million dollars, 0:03:27.760 --> 0:03:30.280 you've already a mass of four hundred and forty million dollars. 0:03:30.600 --> 0:03:31.880 What would you selling to people? 0:03:31.919 --> 0:03:32.079 Why? 0:03:32.160 --> 0:03:33.440 Latin America? What is there? 0:03:34.080 --> 0:03:36.800 So first, thanks for having us. I'll tell you that 0:03:36.880 --> 0:03:38.920 it feels so good to be an entrepreneur again and 0:03:39.800 --> 0:03:42.480 to have finalized my non compete and be able to 0:03:42.480 --> 0:03:45.200 do what I love. And as I shared with you 0:03:45.200 --> 0:03:47.960 in the past, my passion is in Latin America. It's 0:03:48.040 --> 0:03:52.760 a great place. It has size, it has great entrepreneurs, 0:03:53.040 --> 0:03:57.480 it's already created some amazing technology companies that are world 0:03:57.560 --> 0:04:00.600 numbers one, and I think always lacking his capital. So 0:04:01.000 --> 0:04:03.200 you know, we're lucky that this or first day of 0:04:03.240 --> 0:04:05.680 a fund and we've only made a few phone calls 0:04:05.720 --> 0:04:07.960 and it's nice to launch with four hundred and forty million. 0:04:08.520 --> 0:04:11.280 We should reach our target of five hundred million, which 0:04:11.320 --> 0:04:13.600 is what we're targeting to get it done. And we're 0:04:13.600 --> 0:04:15.840 proud to partner not only Shoe as my partner in 0:04:15.920 --> 0:04:19.159 launching this fund, but also to partner with Mubalala, who, 0:04:19.320 --> 0:04:22.760 as you know, Middle Eastern funds have become a deep 0:04:22.760 --> 0:04:24.920 placed for capital today and the fact that they are 0:04:25.040 --> 0:04:28.880 trusting Latin America in the growth site in technology to 0:04:28.960 --> 0:04:30.440 us is something that we're very proud of. 0:04:30.560 --> 0:04:32.119 I know we want to dig into that in a moment. 0:04:32.200 --> 0:04:35.720 But Shoe your experience, of course you mentioned already you've 0:04:35.760 --> 0:04:38.760 shown that you can pick the right companies Rappi. You 0:04:38.839 --> 0:04:40.680 did that over with soft Bank, both of you together 0:04:40.720 --> 0:04:42.760 with the Latin American fund there as well. 0:04:42.640 --> 0:04:43.280 As New Bank. 0:04:44.040 --> 0:04:46.760 What other types of technology are you excited about that? 0:04:46.880 --> 0:04:48.880 Because everyone's talking about AI? Is it AI or is 0:04:48.920 --> 0:04:50.719 it really across the gamut of what's being built. 0:04:50.920 --> 0:04:53.240 The interesting thing about times like now that are very 0:04:53.320 --> 0:04:56.120 uncertain is there's one thing you can count on as founders. 0:04:56.400 --> 0:04:59.200 Founders are focused on problems they can solve, and that's 0:04:59.200 --> 0:05:01.680 what makes them really interesting as an asset class in general, 0:05:01.680 --> 0:05:04.080 in terms that are as uncertain as this, and in 0:05:04.120 --> 0:05:06.680 Latin America, it's not really about the cutting edge. It's 0:05:06.680 --> 0:05:09.600 about inclusive technologies. It's about bringing technology to people who 0:05:09.600 --> 0:05:14.240 are deeply underserved consumers and businesses. So it's propagating technologies 0:05:14.279 --> 0:05:16.719 deep into the pyramid and that's a real green field 0:05:16.720 --> 0:05:18.919 opportunity across every market in Latin America. 0:05:19.000 --> 0:05:21.520 It's interesting. And we were just hearing about the money 0:05:21.520 --> 0:05:24.799 that's behind this. And last time I spoke to Marsello 0:05:24.960 --> 0:05:27.360 was out in Kata. It was all about Middle East 0:05:27.400 --> 0:05:29.839 and it's interesting where the money, the LP money is 0:05:29.839 --> 0:05:30.799 coming from at this moment. 0:05:31.240 --> 0:05:34.320 Yes, Marcella, my understanding is you're able to launch because 0:05:34.360 --> 0:05:38.760 your non compete with soft Bank for Latin America has expired. 0:05:39.040 --> 0:05:42.240 So a comment on that, But Mabilala is interesting. Would 0:05:42.279 --> 0:05:45.640 you guys take money or bring in LPs from Saudi 0:05:45.720 --> 0:05:47.400 Arabia and China for example. 0:05:48.320 --> 0:05:51.120 I think one is happy that now we can be 0:05:51.200 --> 0:05:53.440 back in business. It's a great feeling and to me 0:05:53.839 --> 0:05:57.120 happy that after you know, an exciting experience of being 0:05:57.200 --> 0:05:59.719 within the soft bankkecosystem for many years, I can be 0:05:59.760 --> 0:06:02.520 back how it all started in Latin Americas and entrepreneurs, 0:06:02.520 --> 0:06:05.320 so could not be more excited as that as it 0:06:05.360 --> 0:06:08.120 relates to the initial fund, I mean, this is the 0:06:08.120 --> 0:06:09.919 start of a journey and we tend to do a 0:06:09.920 --> 0:06:12.159 lot more in Latin America. This is our first fund 0:06:12.520 --> 0:06:14.520 and we thought five hundred million dollars is a good 0:06:14.520 --> 0:06:19.000 way to start. And it's a combination of a Mvalalla, 0:06:19.080 --> 0:06:22.800 who to me is the premiere sovereign fund in the 0:06:22.839 --> 0:06:26.880 Middle East, and my family office and many other investors, 0:06:26.920 --> 0:06:30.080 including founders from Latin America, founders from the United States. 0:06:30.360 --> 0:06:33.560 So so far, everybody that we've asked has come through 0:06:33.960 --> 0:06:36.000 in terms of, you know, the potential amount of capital 0:06:36.040 --> 0:06:38.640 that we need. We really haven't discussed this with any 0:06:38.680 --> 0:06:40.839 other sovereign funds and at this point in time, I 0:06:40.839 --> 0:06:43.159 don't think there will be a need because we pretty 0:06:43.200 --> 0:06:45.680 much have what we need for this first round. In 0:06:45.720 --> 0:06:47.880 the future, you know, we're going to look at where 0:06:47.920 --> 0:06:51.039 the businesses, where the pocuts of capital are in the 0:06:51.080 --> 0:06:54.440 case that we raise you know, bicycle capital two and 0:06:54.440 --> 0:06:56.560 three and four, But now we're focused on one. We 0:06:56.640 --> 0:06:58.279 got to go find the founders, We got to deploy 0:06:58.360 --> 0:07:00.719 capital and more importantly, we got to make sure that 0:07:00.760 --> 0:07:04.440 we generate the returns. You know, when people are crusting 0:07:04.480 --> 0:07:06.359 you with their capital is something that we got to 0:07:06.360 --> 0:07:07.680 go generate returns. 0:07:08.200 --> 0:07:11.360 And Sue, good afternoon, good morning to you from San Francisco. 0:07:11.640 --> 0:07:14.440 Your friendship, your partnership with the guy next to you, 0:07:14.560 --> 0:07:18.160 goes back to soft Bank. They were not in LP 0:07:18.440 --> 0:07:22.080 or involved in the raising of this fund. But could you, 0:07:22.640 --> 0:07:26.640 through Bicycle invest in any of the startups and names 0:07:26.640 --> 0:07:29.800 that you were both involved in during your time at 0:07:29.840 --> 0:07:31.960 SoftBank if they were to raise future funds? 0:07:32.160 --> 0:07:32.360 Yes. 0:07:32.440 --> 0:07:33.040 Absolutely. 0:07:33.520 --> 0:07:36.000 Our core is to keep good relationships with the entire 0:07:36.000 --> 0:07:38.200 ecosystem that includes soft Bank. We have a lot of 0:07:38.200 --> 0:07:40.800 gratitude to soft Bank. They helped put the Latin American 0:07:40.840 --> 0:07:43.480 ecosystem on the map with our help and they continue 0:07:43.480 --> 0:07:46.440 to be great partners. Marcelo I call the master of momentum. 0:07:46.440 --> 0:07:48.840 He helps generate the drive to get things done and 0:07:48.840 --> 0:07:50.960 then I helped execute it. And so we're just playing 0:07:50.960 --> 0:07:53.360 that role again here, but on our own this time. 0:07:53.960 --> 0:07:55.160 I like the momentum. 0:07:55.200 --> 0:07:57.840 I mean the name Bicycle in many ways, I know 0:07:57.880 --> 0:07:59.960 it comes from the idea of Steve Jobs thinking computer 0:08:00.000 --> 0:08:01.600 There is a bicycle for the mind. But also you 0:08:01.600 --> 0:08:05.400 guys bike together Mozllo when you're building together. Also you've 0:08:05.400 --> 0:08:08.200 had interesting partnerships, for example Sheen, that's something that you're 0:08:08.200 --> 0:08:11.680 helping bringing a big company, a global company, almost the 0:08:11.680 --> 0:08:14.280 supply side to Latin America, helping the manufacture in Brazil 0:08:14.320 --> 0:08:17.400 and Mexico. When you're thinking about the companies you're investing, 0:08:17.440 --> 0:08:20.400 and you're also thinking about global companies accessing that in America, 0:08:21.320 --> 0:08:23.160 what kind of big companies you're thinking of, how much 0:08:23.160 --> 0:08:24.560 of the fund would be dedicated to that. 0:08:25.240 --> 0:08:28.600 So this fun is all about Latin America, and it's 0:08:28.640 --> 0:08:33.840 about helping Latin American founders accelerate the momentum that they 0:08:33.880 --> 0:08:36.880 have because there are great businesses in Latin America. But 0:08:36.960 --> 0:08:41.760 it's also about helping global companies who having global momentum 0:08:41.880 --> 0:08:44.840 to basically land in Latin America. Latin America is close 0:08:44.840 --> 0:08:48.160 to seven hundred million people. People in Latin America make 0:08:48.240 --> 0:08:50.520 four times the amount of money that people make in India. 0:08:50.920 --> 0:08:53.920 The GDP of Latin America is two exercise of India. 0:08:54.040 --> 0:08:56.480 So Latin America is a great place if you understand 0:08:56.480 --> 0:08:58.320 that it's not an easy place to do business. It's 0:08:58.360 --> 0:09:01.440 complex taxation and another thing. So we plan to invest 0:09:01.520 --> 0:09:04.480 not only in Latin American founders, but also in companies 0:09:04.640 --> 0:09:06.480 that are going to go into Latin America. And there 0:09:06.480 --> 0:09:09.119 are so many companies that you know, the current geopolitical 0:09:09.200 --> 0:09:12.079 landscape health for companies that you want to get into 0:09:12.120 --> 0:09:15.720 Latin America usually faster than they did before. So excited 0:09:15.720 --> 0:09:19.360 about bringing companies, bringing you know, FinTechs, bringing companies like 0:09:19.440 --> 0:09:22.640 Shane who basically disrupted in the fashion industry. And there 0:09:22.640 --> 0:09:25.760 are so many disruptors. Like I've always expressed, I think 0:09:25.800 --> 0:09:27.560 the next five years is going to be a world 0:09:27.559 --> 0:09:31.079 of disruption, not only because of AI but because of technology, 0:09:31.200 --> 0:09:33.560 and it's going to change pretty much every industry, every 0:09:33.640 --> 0:09:35.400 very clos We know it, and we want to make 0:09:35.440 --> 0:09:38.240 sure that if anything is being disrupted in Latin America, 0:09:38.360 --> 0:09:40.760 we have some role to play in that sense. 0:09:40.960 --> 0:09:44.439 You've been the disruptors for Vision Fund appended VC in 0:09:44.679 --> 0:09:48.120 a way and many people's mindset the size of checks 0:09:48.120 --> 0:09:50.560 you would write. So if you're getting into really small 0:09:50.600 --> 0:09:53.400 companies but also really large ones and global companies, can 0:09:53.440 --> 0:09:55.440 the checkspe of any size? What are you thinking about 0:09:55.480 --> 0:09:57.240 where in the lifespan of companies are going. 0:09:57.200 --> 0:09:57.680 To be entering. 0:09:57.840 --> 0:10:00.000 It's important to say the ecosystem in latam is really 0:10:00.040 --> 0:10:02.520 good at the early stage. They're great funds that have 0:10:02.600 --> 0:10:06.200 been working for decades to set the foundation. We do 0:10:06.280 --> 0:10:08.120 not intend to compete with them, so we come in 0:10:08.160 --> 0:10:10.839 at the Series B and later. Our checks range from 0:10:10.840 --> 0:10:13.360 twenty to fifty million dollars in any given company. This 0:10:13.400 --> 0:10:14.959 is not going to be a big portfolio. 0:10:15.000 --> 0:10:16.160 This is about really. 0:10:15.960 --> 0:10:18.600 Choosing a few partners that we can work with for 0:10:18.640 --> 0:10:20.560 the long term. So we're talking about ten to fifteen 0:10:20.600 --> 0:10:22.600 companies and the life of the fund. So it's really 0:10:22.600 --> 0:10:25.440 about a close partnership. And we won't invest more than 0:10:25.480 --> 0:10:27.280 fifty million dollars in any given company, but we want 0:10:27.280 --> 0:10:28.840 to have a real seat at the table. So if 0:10:28.840 --> 0:10:30.560 you want big ownership, you have to go early. If 0:10:30.559 --> 0:10:31.400 you're writing checks of that. 0:10:31.480 --> 0:10:37.000 Size, Marcello, Latin America is more than six hundred and 0:10:37.000 --> 0:10:39.960 fifty million people. I get your history with it, but 0:10:40.240 --> 0:10:43.480 what inside Latin America? Where is the San Francisco or 0:10:43.520 --> 0:10:47.520 Silicon Valley of Latin America? Is there a Stamford equivalents 0:10:47.640 --> 0:10:50.679 churning out founders like we see where I am I 0:10:50.720 --> 0:10:53.120 want to get some granular detail on where you see 0:10:53.120 --> 0:10:56.200 opportunities geographically and by which sectors. 0:10:56.880 --> 0:11:01.160 So few things. There are so many lucky American founders 0:11:01.240 --> 0:11:03.840 who actually went to stand for, who come to Harvard, 0:11:03.960 --> 0:11:06.800 come to Wharton, and then they go back and they 0:11:07.040 --> 0:11:10.400 rather than become entrepreneurs in the United States, they basically 0:11:10.480 --> 0:11:13.160 take that knowledge and take it back to Latin America. 0:11:13.320 --> 0:11:15.160 And most of the stories that you've seen so far, 0:11:15.640 --> 0:11:18.200 a lot of those founders were US educated. Most of 0:11:18.240 --> 0:11:20.000 them want to stand for and then they go back 0:11:20.040 --> 0:11:23.640 to Latin America with that entrepreneurial mindset, and that has 0:11:23.679 --> 0:11:27.679 given rise to a booming entrepreneurial ecosystem that's sitting in Sapaulo, 0:11:27.720 --> 0:11:31.280 that's sitting in Mexico City, that's sitting in Bogota in Colombia. 0:11:31.360 --> 0:11:33.719 Because now there are huge stories of success. I mean, 0:11:33.760 --> 0:11:36.400 you have Rappi, you have Eyefood to me, who's probably 0:11:36.400 --> 0:11:38.320 one of the best food delivery companies in the planet. 0:11:38.640 --> 0:11:41.000 You got New Bank, which is a Colombian who emigrated 0:11:41.040 --> 0:11:44.400 to Brazil and today is the most valuable digital bank 0:11:44.400 --> 0:11:46.400 in the world and the one that makes money and 0:11:46.400 --> 0:11:49.320 the one that's worth tens of billions of dollars you have. 0:11:50.240 --> 0:11:52.640 Now you have the growth the Americati livery, who's a 0:11:52.720 --> 0:11:56.959 multi billion dollar marketplace that continues to grow. So today 0:11:57.040 --> 0:12:01.120 there's enough stories of success that have created entrepreneurial ecosystems 0:12:01.120 --> 0:12:03.520 that have shared employees for starting a new company. So 0:12:03.559 --> 0:12:06.840 there's the I think what we started a soft bank was, 0:12:07.040 --> 0:12:08.760 you know, we took Latin America from one and a 0:12:08.800 --> 0:12:11.560 half billion a year to close to sixteen billion dollars 0:12:11.600 --> 0:12:15.160 a year of investment along other funds, and that gave 0:12:15.280 --> 0:12:19.000 rise to a wooman entrepreneurial ecosystem that right now needs 0:12:19.000 --> 0:12:21.640 our capital. And I think Latin America deserves the fund 0:12:22.160 --> 0:12:24.679 that is going to be focused only in Latin America 0:12:24.760 --> 0:12:27.480 and not the traditional tourist capital that comes in only 0:12:27.520 --> 0:12:30.560 when good times rolled and then they retrench when things 0:12:30.559 --> 0:12:32.480 are not that good. Where there were committed, we're in 0:12:32.520 --> 0:12:34.240 it for the next few years. I made it a 0:12:34.240 --> 0:12:36.960 point to focus the rest of my career in Latin America, 0:12:36.960 --> 0:12:37.840 and that's what I want to do. 0:12:38.240 --> 0:12:40.800 True you would deep be dedicated not just to Latin 0:12:40.840 --> 0:12:43.840 American founders, but diverse founders, minority founders. 0:12:43.840 --> 0:12:46.040 With the sp Opportunity Fund, how much. 0:12:45.960 --> 0:12:48.560 When we are still seeing look and an environment where 0:12:48.559 --> 0:12:51.200 interest rates are going higher, where companies are slimming down, 0:12:51.280 --> 0:12:54.200 where people are wanting to put money into tried and 0:12:54.240 --> 0:12:57.079 tested founders. How are you able to still focus on 0:12:57.120 --> 0:12:58.040 a minority founder? 0:12:58.120 --> 0:12:58.360 Do you? 0:12:58.520 --> 0:12:59.520 Is that priority all? 0:12:59.559 --> 0:13:03.319 The interesting thing about founders who are underrepresented is they 0:13:03.360 --> 0:13:05.920 have the grid it taste to succeed. They have been overlooked. 0:13:06.280 --> 0:13:09.280 They're the perfect solution for this moment in time. They 0:13:09.280 --> 0:13:11.560 do not come from the typical mold. They have had 0:13:11.600 --> 0:13:13.599 to struggle to get where they are, and we like 0:13:13.679 --> 0:13:16.880 to back those founders because we just think they're unfairly overlooked. 0:13:17.120 --> 0:13:19.240 So again, it's not about the macro for us, it's 0:13:19.280 --> 0:13:21.720 about the micro and the people best suited to navigate 0:13:21.800 --> 0:13:24.800 moments like this are people in places that are overlooked, 0:13:24.840 --> 0:13:28.040 people who look like they're overlooked. And if you back 0:13:28.120 --> 0:13:29.839 those folks, we believe you can make a lot of money. 0:13:30.559 --> 0:13:32.520 We thank you for spending some time with us talking 0:13:32.520 --> 0:13:35.760 about the vision a Selah Clay Juniata. They're running back 0:13:35.800 --> 0:13:36.839 for a plane. We thank them. 0:13:44.880 --> 0:13:49.720 At Google's conduct distorted competition among ad exchanges, rather than 0:13:49.800 --> 0:13:52.800 letting the best of the ad exchanges win the race. 0:13:53.280 --> 0:13:57.679 The helping hands of the powerful Google ecosystem gave Google's 0:13:57.800 --> 0:14:02.480 own exchange a unique head start over all other rivals 0:14:02.679 --> 0:14:06.160 in the industry, ann exclude a fort to keep its 0:14:06.160 --> 0:14:09.520 commission high without losing its advertisers. 0:14:09.840 --> 0:14:13.439 You Commissioner, Margaret Vesta, are there Google being accused of 0:14:13.520 --> 0:14:17.400 abusing its dominance over advertising technology to crush competition? Now 0:14:17.520 --> 0:14:19.520 that is the European Union now fires off an anti 0:14:19.520 --> 0:14:22.720 trust charge sheet that threatens a breakup of the lucrative business. 0:14:23.080 --> 0:14:25.680 But look, it's a process that can take years to resolve. 0:14:26.200 --> 0:14:28.240 Let's dig into the details. Blue megs, Mark Bergen is 0:14:28.280 --> 0:14:31.640 in London, Sam Stalton is in Brussels, and Mark with 0:14:31.760 --> 0:14:34.880 the expertise of Google here. I immediately want to get 0:14:34.960 --> 0:14:38.240 their response. We've just heard from Margaret Vesta and none 0:14:38.280 --> 0:14:39.760 of this seems to come as that much of a 0:14:39.840 --> 0:14:40.920 surprise to them, right. 0:14:42.680 --> 0:14:45.760 No, certainly both things, both having vested your stand up 0:14:45.800 --> 0:14:49.400 and accuse them of monopoly of the acting as a 0:14:49.400 --> 0:14:52.840 monopoly and dominance, and then the same accusation around ad tech. 0:14:52.920 --> 0:14:55.600 This is something that they actually had first in the 0:14:55.840 --> 0:15:00.520 US and an identical case that they were using sort 0:15:00.520 --> 0:15:04.320 of ball size of the market in this opig and 0:15:04.360 --> 0:15:07.960 pretty powerful world of digital publishing. So I think that's 0:15:08.000 --> 0:15:11.360 probably a contribution why the stack basically they move. Investies 0:15:11.360 --> 0:15:13.640 have basically priced in this regulatory risk. 0:15:14.960 --> 0:15:18.600 Sam just in Layman's terms, what is the European Commission 0:15:18.720 --> 0:15:22.960 and the EU accusing Google of doing within the market's 0:15:23.080 --> 0:15:24.120 so healy involved in. 0:15:25.920 --> 0:15:28.800 Yes, yes, and hello here from Brussels. Well, Effectively, the 0:15:28.880 --> 0:15:34.720 European Commission today has filed formal antitrust charges against Google's 0:15:34.800 --> 0:15:39.440 actions in the advertising technology space, and specifically it's focusing 0:15:39.480 --> 0:15:44.000 on Google services that match supply and demand for advertising 0:15:44.400 --> 0:15:47.800 space online and it's really all about self preferencing. 0:15:47.880 --> 0:15:49.120 What the European. 0:15:48.800 --> 0:15:53.840 Commission says is that Google has effectively self preferenced its 0:15:53.880 --> 0:15:58.120 own services to the detriment of other rivals in the market, 0:15:58.560 --> 0:16:03.000 and this could obviously have aative effects further afield in 0:16:03.080 --> 0:16:07.160 the online ecosystem. And these are formal antitrust charges. The 0:16:07.240 --> 0:16:11.680 investigation was first launched by the European Commission in Brussels 0:16:11.920 --> 0:16:15.200 in April twenty twenty one, and it's very much, as 0:16:15.240 --> 0:16:18.240 I say, this first step in a procedure that could 0:16:18.360 --> 0:16:21.960 go on for a number of years, Mark. 0:16:21.800 --> 0:16:27.320 Explain, what is Google's advertising technology business different from its 0:16:27.400 --> 0:16:28.480 broader ad offering. 0:16:29.000 --> 0:16:32.800 Yeah, it's hard to unpack, in part because it is 0:16:32.960 --> 0:16:36.480 that the ad tack is supervasive inside of Google. When 0:16:36.520 --> 0:16:38.920 we think about the commissioner talks about it. It is 0:16:39.040 --> 0:16:42.680 basically their machinery that deals with the buying and selling 0:16:42.720 --> 0:16:45.840 of online ads. Everything that's sort of not Google's own 0:16:45.920 --> 0:16:48.440 and operated property. So the things that aren't Google Search, 0:16:48.880 --> 0:16:52.560 aren't YouTube, aren't its play store maps. But at the 0:16:52.560 --> 0:16:55.000 same time as using that same exact machinery to make 0:16:55.080 --> 0:16:58.120 Google Search ads, to make YouTube ads much more powerful, 0:16:58.200 --> 0:17:02.080 much more effective. And I think that competitors argue sort 0:17:02.120 --> 0:17:06.800 of elbow out these services that are playing the digital 0:17:06.840 --> 0:17:10.639 publishing field but don't have the tremendous data resources of 0:17:10.800 --> 0:17:14.560 running the world's biggest search and video and mapping platforms. 0:17:14.880 --> 0:17:17.919 What's interesting here, Sam is sort of how they're going 0:17:17.960 --> 0:17:21.000 for the JUG leader the EU here saying, look, remedies 0:17:21.040 --> 0:17:22.640 on enough to your business model. You need to start 0:17:22.680 --> 0:17:25.800 hiving parts of it off. But will that become some 0:17:25.920 --> 0:17:27.840 sort of a reality because this is going to take 0:17:27.840 --> 0:17:28.480 a long time in the. 0:17:28.480 --> 0:17:32.520 Course, Well, indeed, and I mean It was one of 0:17:32.600 --> 0:17:36.159 the main messages today from the press conference with the 0:17:36.280 --> 0:17:40.280 EU's Commission for Competition, Margaretta Vestaga, and she effectively said 0:17:40.320 --> 0:17:46.040 that behavioral remedies were insufficient in correcting the anti competitive 0:17:46.080 --> 0:17:49.399 abuse here. And what's really fascinating is to watch the 0:17:49.600 --> 0:17:54.000 growing transatlantic sort of alliance around the option of structural 0:17:54.080 --> 0:17:57.000 remedies or like you say, hiving off certain parts of 0:17:57.080 --> 0:17:59.919 the business in order to correct the anti competitive abuses. 0:18:00.000 --> 0:18:02.639 Because as Mark just said, there are of course a 0:18:02.720 --> 0:18:06.400 number of lawsuits open in the United States against Google's 0:18:06.400 --> 0:18:10.280 ad tech business, and the Department of Justice at least 0:18:10.320 --> 0:18:15.720 in its lawsuit has recommended the option of potentially structural separations, 0:18:15.840 --> 0:18:18.400 and as I say, one of the core messages from 0:18:18.440 --> 0:18:21.919 the press conference from Vestagers today was that's very much 0:18:21.960 --> 0:18:24.480 an option for us to and we're now going to 0:18:24.560 --> 0:18:26.680 engage with those discussions with Google to see if we 0:18:26.720 --> 0:18:31.680 can make progress further afield in terms of correcting these problems. 0:18:32.800 --> 0:18:35.920 A bloom best, Mark Bergen and London, Sam Stulton in 0:18:36.000 --> 0:18:38.639 Brussels for us, Thank you very much. Now coming up, 0:18:39.119 --> 0:18:43.200 more regulatory headwinds and hurdles facing Microsoft's sixty nine billion 0:18:43.200 --> 0:18:46.680 dollar takeover of Activision Blizzard. We'll discuss why a US 0:18:46.880 --> 0:18:49.160 judge is temporarily blocking the deal. 0:18:49.320 --> 0:18:50.560 This is Bloomberg. 0:19:08.320 --> 0:19:11.399 More regulatory action Microsoft's sixty nine billion dollars acquisition of 0:19:11.440 --> 0:19:14.480 Activision Blizzard. What it's temporarily blocked by a federal judge 0:19:14.520 --> 0:19:17.840 in California who said a temporary restraining order was necessary 0:19:18.200 --> 0:19:20.639 to maintain the status quo while the FTC, the Federal 0:19:20.640 --> 0:19:24.000 Trade Commission challenges the deal joining US now plums Anna 0:19:24.160 --> 0:19:24.720 Juton and is. 0:19:24.760 --> 0:19:27.280 This just part of normal process? Is this a surprise 0:19:27.400 --> 0:19:28.320 all we expecting it? 0:19:29.880 --> 0:19:32.280 Well, it's a really interesting development because you see how 0:19:32.320 --> 0:19:34.560 the FTC is trying to make sure this deal doesn't 0:19:34.600 --> 0:19:37.480 become a foregone conclusion. And part of the context of 0:19:37.560 --> 0:19:40.280 this is that we have kind of competing decisions from 0:19:40.359 --> 0:19:42.720 the other side of the Atlantic, where the UK competition 0:19:42.800 --> 0:19:45.640 authorities have said that this deal should not go forward 0:19:45.640 --> 0:19:48.200 they would be bad for market concentration, whereas in the 0:19:48.720 --> 0:19:51.720 EU anti trust authorities have said this deal can go 0:19:51.840 --> 0:19:55.119 through with remedies and it's actually good for competition. So 0:19:55.200 --> 0:19:58.120 you definitely see the Federal Trade Commission trying to make 0:19:58.160 --> 0:20:01.439 sure that this doesn't go forward, that this deal doesn't 0:20:02.119 --> 0:20:04.480