WEBVTT - Twitter's Content Moderation and Expedia's Earnings 0:00:02.000 --> 0:00:05.360 From the heart of where innovation, money and power callive 0:00:06.120 --> 0:00:10.640 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.680 --> 0:00:27.520 Emily Jay. I'memily check in San Francisco, and this is 0:00:27.520 --> 0:00:31.760 Bloomberg Technology. Coming up in the next hour. Twitter begins layoffs, 0:00:31.800 --> 0:00:35.120 reportedly cutting the PR team from roughly ninety people to 0:00:35.280 --> 0:00:38.800 just two and more, and Musk says the company is 0:00:38.840 --> 0:00:42.800 under stress from a massive drop in revenue as advertisers 0:00:42.880 --> 0:00:46.840 hit pause. Plus Expedience CEO joins us to talk about 0:00:46.840 --> 0:00:50.120 the travel rebound and plans to take on Airbnb after 0:00:50.159 --> 0:00:53.560 reporting record revenue. Will I keep up in a recession? 0:00:54.840 --> 0:00:58.120 And Bloomberg analyze more than one million tweets and Facebook 0:00:58.120 --> 0:01:00.960 posts from hundreds of midterm elections candidates who said they 0:01:01.000 --> 0:01:05.800 believed somewhat or fully that the election was stolen from 0:01:05.840 --> 0:01:09.200 former President Trump. Turns out, amplification of the so called 0:01:09.200 --> 0:01:13.440 big lie on social media drives engagement. We're gonna get 0:01:13.440 --> 0:01:14.720 to all of that in a moment, but first I 0:01:14.720 --> 0:01:16.319 want to get to Twitter now and the slow of 0:01:16.360 --> 0:01:20.320 companies pulling their advertising from the platform. Bloomberg's Alex Barrinka 0:01:20.480 --> 0:01:23.119 has been following it all for us, so Alex Elon 0:01:23.200 --> 0:01:25.480 Musk has said there's been a massive drop in revenue. 0:01:26.000 --> 0:01:31.480 He blames it on activist activist groups pressuring advertisers over 0:01:31.560 --> 0:01:35.919 content moderation issues, even though nothing has changed yet. Who's 0:01:36.000 --> 0:01:41.680 leaving Audias, leaving GM is leaving either leaving really big 0:01:41.760 --> 0:01:44.720 names are leaving, Emily. And to your point there, Elon, 0:01:44.800 --> 0:01:48.120 with tweeting yesterday you did a poll thing what you 0:01:48.200 --> 0:01:52.640 advertise or stand behind free speech or political correctness, those 0:01:52.640 --> 0:01:54.560 are the only two choice of that. Emily actually think 0:01:54.560 --> 0:01:56.240 that's probably a little bit of a false choice for 0:01:56.320 --> 0:01:59.360 these brands. They are looking at Twitter as the plates 0:01:59.400 --> 0:02:02.000 to put dons and find some return on that advent. 0:02:02.200 --> 0:02:04.680 That return is going to be kind of number one 0:02:04.760 --> 0:02:08.519 in their minds. As we've seen um Twitter the business 0:02:08.680 --> 0:02:11.560 kind of you know, convulsing over the last week, with 0:02:11.919 --> 0:02:15.240 laying off about half of the workforce, with questions around 0:02:15.280 --> 0:02:18.640 who is leading different departments, and with Elon trying to 0:02:18.720 --> 0:02:22.320 counter that by assuring advertisers that they will be moderating 0:02:22.560 --> 0:02:25.800 content on the platform. It seems like a lot of 0:02:25.800 --> 0:02:28.600 these big names are deciding right now to take a pause. 0:02:29.120 --> 0:02:32.160 And I would say this is a pretty problematic thing 0:02:32.200 --> 0:02:34.680 for Twitter. You'll remember the last earnings report they had, 0:02:34.720 --> 0:02:38.000 they actually saw revenue decline from a year prior in 0:02:38.040 --> 0:02:41.480 that quarter. And now Ellen is taking a company that 0:02:41.639 --> 0:02:45.000 is private and will have about a billion dollar interest 0:02:45.040 --> 0:02:48.360 bill every year for the debt that they used to 0:02:48.400 --> 0:02:51.760 take this company private. So advertisers here are the lifeblood. 0:02:51.960 --> 0:02:54.720 Ellen's coming in with um a little bit of perhaps 0:02:55.040 --> 0:02:58.239 sauciness at them for leaving the platform, but they will 0:02:58.280 --> 0:03:02.520 absolutely need those dollars who forward. All right, So we're 0:03:02.520 --> 0:03:06.960 talking Volkswagen Fiser General Mills. Let's talk about the layoffs. 0:03:07.000 --> 0:03:11.000 Employees started getting emails early, early in the morning that 0:03:11.040 --> 0:03:14.680 they were being terminated, cools getting let go. Is it 0:03:14.840 --> 0:03:18.600 that thirty seven hundred number that we've been reporting right now? 0:03:18.639 --> 0:03:22.080 It seems like it is inching toward that number. And 0:03:22.160 --> 0:03:24.560 you have some teams like you mentioned at the top, 0:03:24.639 --> 0:03:27.920 like the communications team, that have been completely gutted, losing 0:03:28.360 --> 0:03:32.000 about eighty eight of their ninety employees. So you have 0:03:32.160 --> 0:03:34.320 folks kind of all the way across the board, and Emily. 0:03:34.400 --> 0:03:36.880 One of the reasons why advertisers might actually be pausing, 0:03:37.160 --> 0:03:40.000 it's sort of related to how this is being handled. 0:03:40.440 --> 0:03:43.280 It is typical in a acquisition or in a change 0:03:43.280 --> 0:03:45.400 of leadership for the new leaders to come in to 0:03:45.480 --> 0:03:47.600 kind of take a survey of the land and to 0:03:47.920 --> 0:03:50.200 kind of approach these things a little bit differently. The 0:03:50.200 --> 0:03:52.680 way that Ellen has come in with these kind of 0:03:52.760 --> 0:03:56.840 emails sometimes overnight for employees and UM, what some employees 0:03:56.840 --> 0:03:58.960 are looking at is kind of a coin flip has 0:03:59.000 --> 0:04:01.680 injected a lot of UM, someone call it chaos into 0:04:01.720 --> 0:04:04.320 the business. So we're seeing the cuts across the board. 0:04:04.560 --> 0:04:08.680 There are some areas he's staying and urging UM perhaps 0:04:08.800 --> 0:04:13.040 for that advertise advertiser audience, that he is bringing the 0:04:13.080 --> 0:04:16.719 tools back online for content moderation UM, and areas like 0:04:16.760 --> 0:04:19.760 that that he has put make care to reference in 0:04:19.800 --> 0:04:22.120 the last forty eight hours. But it does seem like 0:04:22.440 --> 0:04:25.520 it's pretty broad based across the company and in terms 0:04:25.520 --> 0:04:29.839 of word that those head count cuts are coming from. Meantime, 0:04:29.880 --> 0:04:33.320 Twitter is being sued uh in a class action lawsuit 0:04:33.680 --> 0:04:39.039 by employees who say their termination is wrongful or that 0:04:39.080 --> 0:04:41.800 at least under California employment law, he can't make big 0:04:41.880 --> 0:04:45.560 changes like this before sixty days have passed. Can you 0:04:45.600 --> 0:04:49.039 explain the lawsuit to us and how good of a 0:04:49.080 --> 0:04:52.920 case they have? Sure in the state of California. We're 0:04:53.000 --> 0:04:55.120 we're rebooth our Emily right now, there's something called a 0:04:55.200 --> 0:04:59.000 war notice where employers have to give a sixty day 0:04:59.040 --> 0:05:01.919 notice before be off above a certain threshold of people. 0:05:02.120 --> 0:05:05.400 That Twitter is certainly clearing that threshold. This is a 0:05:05.480 --> 0:05:08.240 lawyer who's bringing this class action suit, who actually has 0:05:08.600 --> 0:05:11.839 let a suit against Musk before over a similar matter 0:05:12.000 --> 0:05:16.039 for layoffs at Tesla. You'll remember, um, he elon must 0:05:16.040 --> 0:05:18.640 hold our very own editor in chief that he saw 0:05:18.680 --> 0:05:21.120 that suit is trivial. Um, so you can imagine what 0:05:21.240 --> 0:05:24.480 he how he might perceive this suit today. That lawyer 0:05:24.560 --> 0:05:27.880 did come back, uh, just this afternoon and say that 0:05:27.960 --> 0:05:31.159 she's happy to see that some of the severance packages 0:05:31.200 --> 0:05:34.120 are actually paying out employees over the number of day 0:05:34.200 --> 0:05:38.160 some employees over the number of days that are legally required. Um. 0:05:38.320 --> 0:05:40.520 So it seems like there could still be some activity 0:05:40.520 --> 0:05:43.800 on that case, but certainly with the swiftness of the 0:05:43.839 --> 0:05:46.120 decision that was made, there are a lot of questions 0:05:46.200 --> 0:05:49.279 raised around legality, both here in the state of California 0:05:49.360 --> 0:05:51.159 and you can probably imagine in some of the other 0:05:51.160 --> 0:05:56.680 countries where Twitter has offices as well. All Right, Alex Brenka. 0:05:56.720 --> 0:05:59.440 I'm sure there'll be lots of news more and more 0:05:59.520 --> 0:06:01.560 over the Again, thank you so much for bringing us 0:06:01.560 --> 0:06:04.960 the very latest. Will continue to watch your reporting. Zooming 0:06:04.960 --> 0:06:07.520 out to the tech space at large. Now, things not 0:06:07.600 --> 0:06:10.760 looking much better, the Nasdaq one hundred dropping more than 0:06:10.800 --> 0:06:14.200 five percent this week as the sector veils from economic uncertainty. 0:06:14.240 --> 0:06:15.719 We're gonna get more on the bigger picture here with 0:06:15.720 --> 0:06:20.200 Bloomberg's Emily Grafeo. Emily, how is tech weighing on overall markets? 0:06:20.240 --> 0:06:23.440 It's not just Twitter, but Apple, Amazon, where we're also 0:06:23.520 --> 0:06:27.479 seeing significant changes in strategy when it comes to spending 0:06:27.480 --> 0:06:30.960 and hiring. We are seeing these stocks falling, but in 0:06:31.040 --> 0:06:34.120 terms of how much they're impacting the overall market, I 0:06:34.160 --> 0:06:37.440 think that story is really beginning to change as the 0:06:37.480 --> 0:06:41.359 Federal Reserve raises interest rates. I was actually looking at 0:06:41.600 --> 0:06:44.760 just how much um these tech stocks and the movements 0:06:44.760 --> 0:06:48.640 in these stocks impact the broader SMP five hundred. For 0:06:48.760 --> 0:06:51.680 a really long time. In the last two years, the 0:06:51.800 --> 0:06:55.200 narrative has been, you know, these megacat tech stocks make 0:06:55.279 --> 0:06:58.080 up such a large portion of the SMP five hundred, 0:06:58.120 --> 0:07:02.080 we can't see the market gain without the strength there. 0:07:02.279 --> 0:07:04.960 But if you look at the month of October UM, 0:07:05.279 --> 0:07:08.960 four out of the five largest mega cap tech stocks 0:07:09.040 --> 0:07:12.280 in the SMP five hundred posted a negative return, and 0:07:12.320 --> 0:07:15.560 we saw the SMP five hundred gain about eight percent, 0:07:15.960 --> 0:07:19.360 So the equal weighted index was even higher, almost ten 0:07:19.480 --> 0:07:22.840 percent there. So it is starting to seem like investors 0:07:22.880 --> 0:07:25.720 can play the broader stock market and they don't need 0:07:25.760 --> 0:07:28.800 that tech strength like they did before. And we're really 0:07:28.800 --> 0:07:31.720 starting to see that this federal reserve tightening is weighing 0:07:31.800 --> 0:07:36.520 on these big tech companies. What are money managers saying 0:07:36.560 --> 0:07:40.160 about this? Are they getting skittish? It's interesting. I was 0:07:40.200 --> 0:07:43.400 actually at an investing conference last week and I have 0:07:43.560 --> 0:07:46.320 to say, Emily, there weren't a lot of conversations about 0:07:46.560 --> 0:07:49.480 where can I invest in tech? The questions were more about, 0:07:49.760 --> 0:07:52.360 you know, where the value stocks? Um, how can I 0:07:52.400 --> 0:07:56.200 position my fixed income portfolio. I was talking with Jan 0:07:56.320 --> 0:07:58.920 von Eck, he's the CEO of van Eck Funds. We 0:07:58.920 --> 0:08:01.520 were talking a little bit of out technology stocks. He 0:08:01.600 --> 0:08:05.400 said he probably wouldn't go overweight, but the valuations have 0:08:05.600 --> 0:08:09.560 come down in that sector, so he said that is attractive. 0:08:09.720 --> 0:08:12.840 But um, when you look at overall money managers, they 0:08:12.880 --> 0:08:16.920 are thinking about value stocks more than just Oh my gosh, 0:08:16.920 --> 0:08:20.720 I need Apple overweight in my portfolio. There is some 0:08:20.840 --> 0:08:24.000 fear that the federal reserve tightening is going away on 0:08:24.040 --> 0:08:26.800 the stocks more than it already has, and that earnings 0:08:26.800 --> 0:08:31.120 do have to come down even more. All right, Emily, 0:08:31.640 --> 0:08:34.760 thank you so much for zooming out. Bloomberg's Emily graffo 0:08:34.880 --> 0:08:46.400 so much to continue to watch the Fed trying to 0:08:46.440 --> 0:08:50.040 tamp down affordability, but people continue to pay top dollar 0:08:50.360 --> 0:08:54.960 for experiences. Expedia posted record quarterly revenue and third quarter 0:08:54.960 --> 0:08:58.600 bookings free cash flow for the first nine months three 0:08:58.679 --> 0:09:03.480 point one billion dollars, more than double levels. Expedia CEO 0:09:03.600 --> 0:09:08.280 and vice chair Peter Kern joins me. Now, so, uh, Peter, 0:09:08.480 --> 0:09:10.560 let's talk about the bigger picture here. It looks like 0:09:10.600 --> 0:09:13.960 people are continuing to spend on travel. I know we 0:09:14.040 --> 0:09:17.599 had some hurricanes that interrupted some of the flow, but 0:09:17.679 --> 0:09:20.880 outside of that, how good was the summer travel season? 0:09:21.960 --> 0:09:24.600 The summer travel season was great, Emily. You know, it 0:09:24.760 --> 0:09:27.240 was everything I think most of us expected, which was 0:09:27.320 --> 0:09:30.320 tons of pent up demand anywhere in the world where 0:09:30.320 --> 0:09:32.800 people could travel. Of course, there's parts of the world 0:09:32.840 --> 0:09:36.080 still even now, in an apac and other places where 0:09:36.080 --> 0:09:38.760 it's still quite difficult to travel. So there is more 0:09:38.800 --> 0:09:41.440 to come in terms of opening up world travel. But 0:09:41.760 --> 0:09:44.960 the summer was great. Business has continued to be quite strong, 0:09:45.000 --> 0:09:49.280 and demand really hasn't ebbed since then. So you know, 0:09:49.360 --> 0:09:53.280 everything so far looks pretty good, notwithstanding all the macroeconomic 0:09:53.320 --> 0:09:55.800 warriors that you talk about all day. So um, so 0:09:55.800 --> 0:09:59.040 we're feeling pretty good about things. But if we had 0:09:59.080 --> 0:10:02.240 into a recession, I mean, I know people are spending 0:10:02.280 --> 0:10:04.959 money on travel to this point, who's to say that 0:10:04.960 --> 0:10:06.720 people aren't going to say, oh, maybe I should take 0:10:06.760 --> 0:10:09.840 a maybe I shouldn't take that vacation, or let's just 0:10:10.200 --> 0:10:16.080 you know, drive um to a vacation rental nearby. Yeah, listen, 0:10:16.120 --> 0:10:19.160 I think, uh, macroeconomics will be what they will be. 0:10:19.320 --> 0:10:22.560 I think so far what's been demonstrated is that while 0:10:22.559 --> 0:10:25.439 there has have been a few cracks and other categories, 0:10:25.480 --> 0:10:28.720 travel hasn't cracked. I think partly because people have missed 0:10:28.720 --> 0:10:31.079 it so much during COVID and they've realized how much 0:10:31.120 --> 0:10:34.760 they want those experiences more generally. Uh, And we've seen 0:10:34.760 --> 0:10:37.160 corporate travels start to come back and other pieces start 0:10:37.200 --> 0:10:39.760 to come back. So I think, you know, we have 0:10:39.880 --> 0:10:42.560 some good running room, but there's nothing to say that 0:10:42.600 --> 0:10:45.520 people can start to change their minds. But remember, you know, 0:10:45.600 --> 0:10:49.040 global travels a two plus trillion dollar industry, so this 0:10:49.160 --> 0:10:51.840 isn't a zero sum game. And we're a growth company. 0:10:51.880 --> 0:10:54.440 We're trying to build our base of members, build our 0:10:54.480 --> 0:10:58.720 business up, offer great new tools for travelers, great new benefits. 0:10:58.760 --> 0:11:01.480 So we believe there's ample reason for us to continue 0:11:01.520 --> 0:11:04.280 to attract travelers. And even if they're trading down a 0:11:04.320 --> 0:11:07.120 little bit or making slightly different adjustments to their travel, 0:11:07.200 --> 0:11:10.320 we think they're still gonna want to travel. Do you 0:11:10.400 --> 0:11:13.400 think that there's something fundamentally different in terms of how 0:11:13.440 --> 0:11:17.240 people approach travel? You know, this isn't just a few 0:11:17.280 --> 0:11:19.720 vacations they wanted to get out of their system, but 0:11:19.920 --> 0:11:23.280 as a whole new frame of mind. Well, I think 0:11:23.320 --> 0:11:25.800 you know, anytime you have an existential threat to life 0:11:25.840 --> 0:11:28.800 on the planet, people probably respond with a little bit 0:11:28.800 --> 0:11:30.240 of like, I want to live, I want to go 0:11:30.320 --> 0:11:32.560 see the things I want to see. Uh. You know 0:11:32.559 --> 0:11:35.439 there are people, uh my age and older who are 0:11:35.640 --> 0:11:37.960 at a point where they're saying, you know, I only 0:11:38.000 --> 0:11:39.720 have so many trips left in my life, you know, 0:11:39.880 --> 0:11:41.440 so there's a lot to get out of there. And 0:11:41.480 --> 0:11:44.000 I think COVID made us all reassess that. So I 0:11:44.040 --> 0:11:46.800 wouldn't chalk this up to you know, hybrid work or 0:11:46.840 --> 0:11:49.640 other things. I think it's really just, uh, people are 0:11:49.679 --> 0:11:52.920 realizing that experiences or what make life great and travel 0:11:53.040 --> 0:11:55.120 is where we get all that. So, you know, you 0:11:55.160 --> 0:11:56.839 and I have talked about it before. We all want 0:11:56.840 --> 0:11:59.880 to travel. Everybody wants to travel, and I think, Sir 0:12:00.000 --> 0:12:02.679 and Way, we haven't used up that desire yet. You know, 0:12:02.760 --> 0:12:05.360 in five years from now, has everyone gotten out of 0:12:05.400 --> 0:12:07.400 their system? Maybe, but I don't think we've burned it 0:12:07.400 --> 0:12:12.439 off in you know, eight months or twelve months. Airbnb 0:12:12.640 --> 0:12:14.679 had a tough quarter at least if you look at 0:12:14.679 --> 0:12:18.640 it from a market's perspective. Unlike the positive reaction we're 0:12:18.640 --> 0:12:21.959 seeing from investor investors to your results. What do you 0:12:22.000 --> 0:12:26.880 think happening there? You know, I'm not exactly sure what's happening, 0:12:26.960 --> 0:12:30.480 but I think part of what we observed in what 0:12:30.559 --> 0:12:32.920 we've seen with Airbnb is, you know, they are much 0:12:32.960 --> 0:12:37.240 broader company. They appeal to much more, you know, room rentals, 0:12:37.280 --> 0:12:40.000 parts of home rentals. We don't do that, um and 0:12:40.080 --> 0:12:42.360 I think the scale of that business is such that 0:12:42.360 --> 0:12:45.079 that is a market that may be seeing more weakness 0:12:45.520 --> 0:12:47.400 from the lower end of the market. We as a 0:12:47.440 --> 0:12:49.720 business or somewhat less exposed to that. In our verbo 0:12:49.760 --> 0:12:52.600 brands were whole home. We tend to be middle and 0:12:52.679 --> 0:12:57.320 upper market really the same in our main travel brands, 0:12:57.360 --> 0:13:00.800 so we haven't seen those same cracks. But I think 0:13:00.840 --> 0:13:04.720 if you're exposed significantly to the broad global you know, 0:13:04.840 --> 0:13:08.160 lower end, you are probably going to be under somewhat 0:13:08.200 --> 0:13:10.679 more pressure. But you know, we think they'll do fine. 0:13:11.280 --> 0:13:14.600 FCS of course as a challenge globally as well. Again, 0:13:14.640 --> 0:13:17.280 we're heavily weighted towards North America, which is great since 0:13:17.320 --> 0:13:20.600 the dollar is strong, but if you're waited differently, that 0:13:20.679 --> 0:13:24.560 can have a bunch of different impacts on you. Well. 0:13:24.679 --> 0:13:26.640 A d r s are still average daily rates, still 0:13:26.679 --> 0:13:30.880 above pre pandemic levels, but Airbnb, some of your competitors, 0:13:30.880 --> 0:13:33.520 expecting those to moderate. Then there could also be this 0:13:33.640 --> 0:13:38.160 change in the business mix. Are you expecting any softness 0:13:38.160 --> 0:13:41.720 going into next year? You know, we haven't seen it yet. 0:13:42.040 --> 0:13:45.280 Uh and uh. Again, the makeup of our business mixes 0:13:45.360 --> 0:13:49.360 are are somewhat different, but UM hotels are certainly certainly 0:13:49.400 --> 0:13:51.319 the big chains we're talking about holding a d R 0:13:51.400 --> 0:13:53.880 s Uh. You know, hotels so far have been willing 0:13:53.880 --> 0:13:58.440 to be less full in favor of holding price. Uh. 0:13:58.600 --> 0:14:01.480 Does that last forever? Do some hotels change what they do? 0:14:01.679 --> 0:14:05.560 Hard to know. But again, while demands stays strong, which 0:14:05.559 --> 0:14:08.000 it is now, I don't think there's any you know, 0:14:08.160 --> 0:14:10.480 end in sight to prices being up. And they're not 0:14:10.559 --> 0:14:14.240 just up, they're considerably up since pre pandemic levels, and 0:14:14.280 --> 0:14:17.400 that probably will hold. In the home rental business, it's 0:14:17.400 --> 0:14:20.240 a little more violatile because you have single owners and 0:14:20.240 --> 0:14:23.120 there's a little more price pressure sometimes on some of them. 0:14:23.160 --> 0:14:25.840 But certainly in the hotel industry, the airline industry, I 0:14:25.880 --> 0:14:30.360 think I think prices will still be high. So last 0:14:30.400 --> 0:14:34.200 quick question, Verbo, give us the picture of supply and 0:14:34.360 --> 0:14:39.720 demand given what you've seen, you know, going into next year. Yeah, well, 0:14:39.800 --> 0:14:42.840 demand has remained quite strong for us, and other than 0:14:42.880 --> 0:14:45.760 the hurricane which you mentioned at the beginning. Uh, you know, 0:14:45.840 --> 0:14:50.360 we we've seen strength, you know, throughout COVID and since 0:14:50.440 --> 0:14:54.720 COVID has somewhat subsided. Uh, we're very bullish on next year. 0:14:55.280 --> 0:14:57.720 We've got you know, Verbo is going to become part 0:14:57.720 --> 0:15:01.080 of our our global loyalty plan or and key loyalty 0:15:01.120 --> 0:15:03.040 plan that's rolling out next year, and that's going to 0:15:03.120 --> 0:15:06.240 be a great opportunity for Verbo members to participate in 0:15:06.280 --> 0:15:09.440 our other brands and our other members Expedia, Hotels, etcetera, 0:15:09.680 --> 0:15:12.480 to really participate in Verbo. So we see a lot 0:15:12.480 --> 0:15:15.360 of opportunity there, and the supply side, we think there's 0:15:15.360 --> 0:15:17.640 plenty of room to grow. We are being more aggressive 0:15:17.640 --> 0:15:20.080 in that space and we expect to add, you know, 0:15:20.120 --> 0:15:22.960 a bunch of supplies. So so we feel really good 0:15:23.000 --> 0:15:25.160 about the brand, good about its part in our family 0:15:25.200 --> 0:15:28.640 of brands, and certainly more opportunity for us as we 0:15:28.720 --> 0:15:34.440 consolidate those loyalty plans. Peter current CEO of Expedia and 0:15:34.520 --> 0:15:35.920 vice chair Peter are always good to have you here. 0:15:35.960 --> 0:15:40.080 Thank you so much for joining us. Coming up, cyber 0:15:40.120 --> 0:15:43.280 attacks continuing to surge an increasingly digital world. We're going 0:15:43.320 --> 0:15:47.320 to dive into some new data from Rubric about what 0:15:47.360 --> 0:15:50.960 companies should do to protect themselves. That's next. This is Bloomberg. 0:16:02.200 --> 0:16:05.440 Cyber tags are picking up this according a new data 0:16:05.600 --> 0:16:09.040 from the cloud data management and security company Rubric. I 0:16:09.080 --> 0:16:11.960 want to bring in CEO and co founder People Sinha 0:16:12.040 --> 0:16:15.080 now for more on their new reports. So you found 0:16:15.120 --> 0:16:20.880 that of companies reported a breach, that is a staggering number. 0:16:21.800 --> 0:16:25.880 Walk that out for us a bit that is actually 0:16:25.960 --> 0:16:31.280 validates our thesis. We were suspecting that almost all of 0:16:31.280 --> 0:16:35.000 the organizations in the world has already been infiltrated, and 0:16:35.040 --> 0:16:39.320 what people reported was that percent of the companies had 0:16:40.520 --> 0:16:44.240 once at least one cyber breach. And what is also 0:16:44.320 --> 0:16:48.200 interesting is that seventy percent of the organization said that 0:16:48.240 --> 0:16:52.080 they would pay for ransomware to get rid of this problem. 0:16:52.320 --> 0:16:57.720 That's how low the confidences. So how our companies responding 0:16:57.760 --> 0:17:01.960 to these threats? Are they ready? I don't think everyone 0:17:02.080 --> 0:17:05.639 is ready. Um, even though there is a partnership private 0:17:05.720 --> 0:17:10.119 and public Biden administration put together a zero trust framework. 0:17:10.640 --> 0:17:13.920 Companies are looking at it, they're spending money, they're getting prepared. 0:17:14.320 --> 0:17:17.320 But this problem is a huge. Ransomware is the single 0:17:17.400 --> 0:17:20.399 largest threat to our economy, and everybody is saying that, 0:17:20.440 --> 0:17:22.600 how do I keep my business going? What do I 0:17:22.840 --> 0:17:26.359 make sure do to make sure that we are not 0:17:26.480 --> 0:17:30.800 only preventing and detecting these attacks, but also create resiliency 0:17:30.880 --> 0:17:33.200 where in spite of an attack, I can keep going. 0:17:35.520 --> 0:17:40.280 So there's an ongoing war on Ukraine. You've got instability 0:17:40.440 --> 0:17:43.199 at Twitter, which is a major platform. You've got midterm 0:17:43.240 --> 0:17:46.440 elections coming up here in the United States. Are you 0:17:46.520 --> 0:17:49.600 expecting the threats to ratch it up? And how do 0:17:49.680 --> 0:17:55.280 companies respond? Creds are definitely increasing geopolitical situation, you have 0:17:56.000 --> 0:17:59.399 uh Nason estate actors that are taking sides. You have 0:18:00.080 --> 0:18:04.719 again mid term coming up, that we have cyber warfare 0:18:05.240 --> 0:18:08.439 going on, I think, and in this situation, businesses have 0:18:08.520 --> 0:18:11.439 to really think that attacks will happen. There is no 0:18:11.520 --> 0:18:14.080 way to prevent it. How do they keep going in 0:18:14.160 --> 0:18:16.880 spite of an attack? How do they create a resiliency plan, 0:18:17.119 --> 0:18:19.399 how do they make sure that they recover from it? 0:18:20.119 --> 0:18:22.479 And that's where companies are investing money and we are 0:18:22.520 --> 0:18:27.800 seeing in our own market where recovery ability to identify 0:18:28.119 --> 0:18:30.480 what part of the data was impacted, and how to 0:18:30.520 --> 0:18:34.080 get rid of a bad content and recover good content 0:18:34.160 --> 0:18:39.520 fast is what is everyone is focused on. Is public 0:18:39.560 --> 0:18:43.679 private engagement between for example, the Biden and administration and 0:18:43.680 --> 0:18:46.360 the private sector. Is that helping or do we need 0:18:46.400 --> 0:18:50.359 to see more? We definitely need to see more here. 0:18:50.800 --> 0:18:53.480 But it is a great first step because what happens 0:18:53.560 --> 0:18:57.720 is that there is a natural hesitation and sharing data 0:18:57.760 --> 0:19:00.520 and setting information between companies because no wants to come 0:19:00.560 --> 0:19:03.040 across saying that, hey, you got attacked, we didn't have 0:19:03.119 --> 0:19:05.919 the right defenses. But when the government comes into the 0:19:05.960 --> 0:19:09.560 picture and creates a framework of information sharing, what kind 0:19:09.560 --> 0:19:12.199 of attack has happened, how do you recover from it? 0:19:12.320 --> 0:19:15.560 What kind of preventive measures you take? That really helps 0:19:15.600 --> 0:19:19.640 companies get more confident, and confidence is what is required. 0:19:19.720 --> 0:19:22.879 I mean, our study also found that a third of 0:19:22.960 --> 0:19:26.680 the board have no confidence that their companies can recover 0:19:27.440 --> 0:19:34.560 from a cyber incident. Okay, Wow, staggering new data um Work, 0:19:34.680 --> 0:19:37.480 CEO and co founder of People Sindha People. Thank you 0:19:37.560 --> 0:19:49.359 so much for sharing all of that with us. Welcome 0:19:49.359 --> 0:19:51.879 back to Flomark Technology. I'm emily changing in San Francisco. 0:19:51.960 --> 0:19:55.320 Let's get back to Elon Musk's Twitter takeover and what 0:19:55.400 --> 0:19:57.760 it means for the future of free speech and content 0:19:57.840 --> 0:20:01.720 moderation on the platform. My next guest has direct insight 0:20:01.800 --> 0:20:03.960 into this after meeting with Elon Musk a few days 0:20:03.960 --> 0:20:06.320 ago to talk about it for Sean Robinson is the 0:20:06.359 --> 0:20:10.879 president of the racial justice organization Color of Change, and 0:20:10.920 --> 0:20:12.879 he joins me now Rishan, thank you so much for 0:20:12.920 --> 0:20:15.840 taking the time to join us. So how did the 0:20:15.880 --> 0:20:19.160 meeting with Ellen go? Did it leave you hopeful or 0:20:19.160 --> 0:20:22.679 with more concerns? Well, the meeting that we had on 0:20:22.720 --> 0:20:27.240 Tuesday actually was UM BOTHUM, a good opportunity for us 0:20:27.280 --> 0:20:29.600 to have a conversation, and and we walked out of 0:20:29.640 --> 0:20:35.040 the meeting UM really focusing on UM hopeful actually that 0:20:35.240 --> 0:20:38.080 his actions actually connected with the words in the meeting, 0:20:38.400 --> 0:20:42.119 because he made three commitments in that meeting. UM commitments 0:20:42.160 --> 0:20:46.119 around election integrity, commitments around the re platforming and ensuring 0:20:46.160 --> 0:20:49.280 that will be a transparent process before anyone has been 0:20:49.280 --> 0:20:52.159 re platform that has been UM taken off for the 0:20:52.240 --> 0:20:56.320 egregious violation that anyone is the platform for, and then 0:20:56.320 --> 0:20:59.000 talking about sort of the content moderation council he'd have 0:20:59.119 --> 0:21:02.359 moving forward. He talked about agreeing with the sentiments and 0:21:02.400 --> 0:21:04.840 the concerns that those of us in the civil rights 0:21:04.880 --> 0:21:08.080 community brought up during that meeting. And we left the 0:21:08.119 --> 0:21:12.640 meeting UM really wondering what would come next. And at 0:21:12.760 --> 0:21:15.800 one thirty in the morning the next day, UM he 0:21:15.920 --> 0:21:19.480 tweeted out UM tagging us in Matt tweet talking about 0:21:19.520 --> 0:21:23.120 the meeting and making those commitments more public, But over 0:21:23.160 --> 0:21:26.360 the last couple of days, we have seen him truly 0:21:26.960 --> 0:21:31.720 and systematically dismantle the very infrastructure that would make those 0:21:31.760 --> 0:21:35.720 commitments actually real. So the firing of safety and trust 0:21:36.240 --> 0:21:41.080 um capacity inside of Twitter makes it impossible for him 0:21:41.119 --> 0:21:44.560 to actually deliver on the commitments and promises that he 0:21:44.640 --> 0:21:47.639 made in the meeting. So you know, the thing is 0:21:47.640 --> 0:21:50.320 not just about your words, it's about your actions, and 0:21:50.400 --> 0:21:56.119 actions are key here, and you are taking action by 0:21:56.600 --> 0:21:59.880 h highlighting that move in your tweet. You tweeted. Elon 0:22:00.119 --> 0:22:03.280 fired the entire team that identified the Twitter algorithm that 0:22:03.320 --> 0:22:06.840 amplifies right wing voices over others. Not the first time 0:22:06.880 --> 0:22:10.840 we've seen staff, particularly black employees, punished for flagging how 0:22:10.880 --> 0:22:17.359 their companies products enable and amplify racism. Now, Musk today 0:22:17.520 --> 0:22:19.600 said there's been a massive drop in revenue given this 0:22:19.640 --> 0:22:23.960 pause from advertisers, even though according to him, nothing has 0:22:24.040 --> 0:22:27.919 changed about content moderation. Yet, what do you say to 0:22:27.960 --> 0:22:32.359 the folks who say, let's give Elon Musk sometime before 0:22:32.400 --> 0:22:35.520 we make these dramatic moves. Yeah, well that's what we get. 0:22:35.560 --> 0:22:38.240 We met with Elon Musk, and Elon Musk came out 0:22:38.800 --> 0:22:43.359 um and made promises publicly and men UM right after 0:22:43.400 --> 0:22:46.520 those promises, almost before the eight was dried on their promises, 0:22:46.840 --> 0:22:50.280 he began to dismantle the very infrastruction that keep those 0:22:50.280 --> 0:22:53.119 promises in place. Look, I want to be clear. Elon 0:22:53.200 --> 0:22:57.159 Musk actually also met with advertisers. He met with coalitions 0:22:57.160 --> 0:23:02.000 of folks working in advertising, and in the conversations UM 0:23:02.080 --> 0:23:04.359 he made promises to them. He talked to them about 0:23:04.359 --> 0:23:08.480 how content moderation was incredibly important and how he valued 0:23:08.520 --> 0:23:11.879 content moderation. And then he went and he let go 0:23:11.960 --> 0:23:16.240 of seventy of the staff that works on content moderation. 0:23:16.560 --> 0:23:20.280 So the advertisers that are leaving are leaving because they 0:23:20.320 --> 0:23:23.320 are concerned that their brands are gonna be next to 0:23:23.480 --> 0:23:26.800 a product that the CEO in charge of it can't 0:23:26.840 --> 0:23:29.919 be trusted, can't be trusted to deliver on their promises, 0:23:30.359 --> 0:23:33.800