1 00:00:01,800 --> 00:00:04,440 Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm 2 00:00:04,480 --> 00:00:07,280 Speaker 1: Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 3 00:00:07,320 --> 00:00:09,799 Speaker 1: you the latest news from the world to business and finance, 4 00:00:09,840 --> 00:00:13,640 Speaker 1: plus technology, politics, economics, all parnessing the power of Business 5 00:00:13,680 --> 00:00:17,119 Speaker 1: Week reporters and editors, not to mention our journalists and 6 00:00:17,120 --> 00:00:19,520 Speaker 1: analysts in more than one hundred and twenty countries. You 7 00:00:19,520 --> 00:00:22,800 Speaker 1: can download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg 8 00:00:22,880 --> 00:00:24,840 Speaker 1: dot Com. You can also listen to our radio show 9 00:00:24,840 --> 00:00:27,560 Speaker 1: at two pm Eastern Time on Bloomberg Radio or watch 10 00:00:27,640 --> 00:00:31,240 Speaker 1: us on YouTube search Bloomberg Global News. Well, we mentioned 11 00:00:31,240 --> 00:00:33,559 Speaker 1: some of the top headlines today concerning COVID and the 12 00:00:33,640 --> 00:00:37,280 Speaker 1: vaccine um Maderno's vaccine for younger teens, but I also 13 00:00:37,320 --> 00:00:39,479 Speaker 1: wanted to mention that a White House officials saying that 14 00:00:39,520 --> 00:00:42,640 Speaker 1: half of American adults will be fully vaccinated as of today, Tim, 15 00:00:42,720 --> 00:00:45,239 Speaker 1: So we're definitely making progress in the United States. We are, 16 00:00:45,240 --> 00:00:47,239 Speaker 1: and the number that the Biden administration is looking for 17 00:00:47,280 --> 00:00:49,000 Speaker 1: a little over a month from now at the fourth 18 00:00:49,000 --> 00:00:52,280 Speaker 1: of July, seventy of American adults having at least one shot. 19 00:00:52,680 --> 00:00:54,760 Speaker 1: As far as the cases around the world, topping one 20 00:00:54,800 --> 00:00:57,440 Speaker 1: hundred and sixty seven point four million deaths, succeeding three 21 00:00:57,480 --> 00:00:59,920 Speaker 1: point four seven million. Back to vaccines, more than one 22 00:01:00,000 --> 00:01:02,279 Speaker 1: points six eight billion doses have been given. All right, 23 00:01:02,360 --> 00:01:05,840 Speaker 1: let's get back to someone who has often been a 24 00:01:05,840 --> 00:01:08,160 Speaker 1: guiding voice for us throughout the pandemic. We're talking about 25 00:01:08,200 --> 00:01:10,800 Speaker 1: Dr Seth Letterman. He's co founder, CEO, and chairman of 26 00:01:10,840 --> 00:01:15,200 Speaker 1: the New York based specialty pharmaceutical biopharmer company Tonics Pharmaceuticals, 27 00:01:15,240 --> 00:01:18,480 Speaker 1: and he joins us on the phone in Bedford, Massachusetts. Um, 28 00:01:18,600 --> 00:01:20,920 Speaker 1: Dr Letterman, could to have you here with Tim and myself. 29 00:01:20,920 --> 00:01:22,720 Speaker 1: There is a lot going on, and it does always 30 00:01:22,760 --> 00:01:26,039 Speaker 1: feel like we're making some steps forward and uh every 31 00:01:26,040 --> 00:01:27,679 Speaker 1: once in a while, though, of course, when we look 32 00:01:27,680 --> 00:01:29,760 Speaker 1: at the numbers and look at around the world, we're 33 00:01:29,760 --> 00:01:34,640 Speaker 1: reminded that we are not yet out of the health pandemic, 34 00:01:34,680 --> 00:01:36,920 Speaker 1: at least not globally. How do you see kind of 35 00:01:37,000 --> 00:01:40,520 Speaker 1: where we are in our world right now? Well, first, 36 00:01:40,800 --> 00:01:43,520 Speaker 1: it's great to be back with you. I think that 37 00:01:43,640 --> 00:01:46,800 Speaker 1: your summary was very accurate. It feels really good in 38 00:01:47,640 --> 00:01:51,680 Speaker 1: the in America with our vaccine supplies and cases dropping, 39 00:01:52,000 --> 00:01:55,680 Speaker 1: but the world is still in a pretty tough place. 40 00:01:56,320 --> 00:02:00,240 Speaker 1: I'd like to be optimistic, but as CEE of a 41 00:02:00,280 --> 00:02:03,600 Speaker 1: company that's developing a vaccine and anti viral and the 42 00:02:03,680 --> 00:02:07,600 Speaker 1: skin test, I'm paid to be pessimistic. So I am 43 00:02:07,640 --> 00:02:11,440 Speaker 1: worried about the fall, about whether COVID is becoming seasonal. 44 00:02:11,840 --> 00:02:15,720 Speaker 1: I'm worried about the durability of vaccine protection. And I'm 45 00:02:15,720 --> 00:02:18,680 Speaker 1: worried about the variants coming back to the United States 46 00:02:18,720 --> 00:02:22,120 Speaker 1: from places like India and other places which one of 47 00:02:22,160 --> 00:02:26,440 Speaker 1: those three things were easy the most. I think the 48 00:02:26,560 --> 00:02:31,519 Speaker 1: vaccine durability is the biggest issue. The m RNA or 49 00:02:31,560 --> 00:02:37,400 Speaker 1: the modified RNA vaccines are remarkable and I don't don't 50 00:02:37,400 --> 00:02:40,760 Speaker 1: even have words to express how grateful we should be 51 00:02:40,800 --> 00:02:44,480 Speaker 1: to the inventors and the developers of these vaccines who 52 00:02:44,520 --> 00:02:48,400 Speaker 1: have made such an important contribution. But it is a 53 00:02:48,440 --> 00:02:53,640 Speaker 1: brand new technology. We don't know the durability. I think 54 00:02:53,720 --> 00:02:56,960 Speaker 1: there's good data now for about six months of protection. 55 00:02:57,480 --> 00:03:01,680 Speaker 1: But there are two kinds of immunity, antibody immunity and 56 00:03:01,720 --> 00:03:06,440 Speaker 1: T cell immunity, and if, if, if the protection from 57 00:03:06,480 --> 00:03:09,440 Speaker 1: these vaccines fades, then that would be more of a 58 00:03:09,560 --> 00:03:13,320 Speaker 1: signature of antibody immunity so I think that we are 59 00:03:13,440 --> 00:03:17,080 Speaker 1: all waiting to see if vaccinated people will be protected 60 00:03:17,080 --> 00:03:19,160 Speaker 1: a year out right, and we've talked with you about 61 00:03:19,200 --> 00:03:23,360 Speaker 1: your your vaccine then X right. That is it's all 62 00:03:23,400 --> 00:03:29,399 Speaker 1: about eliciting a T cell immunity exactly. We are developing 63 00:03:29,560 --> 00:03:33,560 Speaker 1: t X eighteen hundred. It elicits a strong T cell immunity, 64 00:03:33,639 --> 00:03:35,920 Speaker 1: and T cell immunity is the kind that can last 65 00:03:35,960 --> 00:03:40,280 Speaker 1: for years or decades, and that's usually imparted by a 66 00:03:40,480 --> 00:03:45,520 Speaker 1: live virus vaccine like the MMR Measles monster Bella vaccines. 67 00:03:45,880 --> 00:03:49,320 Speaker 1: Those are three live virus vaccines given once in childhood. 68 00:03:49,840 --> 00:03:55,080 Speaker 1: So we're optimistic. I'm hoping that the m RNA vaccines 69 00:03:55,120 --> 00:03:59,640 Speaker 1: will have durical protection, but we just don't know. We 70 00:03:59,720 --> 00:04:03,680 Speaker 1: all don't know if can it be just as good revaccination. 71 00:04:04,120 --> 00:04:07,640 Speaker 1: I'm just gonna say, can a booster shot though Dr 72 00:04:07,720 --> 00:04:14,360 Speaker 1: Letterman basically kind of give us that reassurance and protection, Well, 73 00:04:14,400 --> 00:04:17,120 Speaker 1: we just don't know. It's an excellent point. I know that, 74 00:04:17,240 --> 00:04:21,200 Speaker 1: um uh, you know, there's been an idea that annual 75 00:04:21,279 --> 00:04:24,359 Speaker 1: vaccinations with the mr ANDA vaccines might be good, but 76 00:04:24,880 --> 00:04:30,440 Speaker 1: we don't know. The mRNA vaccines are novel because they 77 00:04:30,480 --> 00:04:32,880 Speaker 1: avoid the immune system, but we don't know how well 78 00:04:32,920 --> 00:04:37,600 Speaker 1: they avoid it, and there's just no evidence to lead 79 00:04:37,720 --> 00:04:42,000 Speaker 1: us to have a national policy that's based on annual revaccinations. 80 00:04:42,440 --> 00:04:45,480 Speaker 1: I'm hopeful, I'm hopeful they're durable. I'm hopeful they can 81 00:04:45,520 --> 00:04:48,920 Speaker 1: be used in re vaccination scenarios, but it's too early 82 00:04:48,960 --> 00:04:51,719 Speaker 1: to tell. Dr Letterman. Where are you exactly in the 83 00:04:51,760 --> 00:04:56,120 Speaker 1: development of your vaccine. We expect to be in human 84 00:04:56,160 --> 00:05:02,240 Speaker 1: trials early in next year. In we've announced very encouraging 85 00:05:02,320 --> 00:05:05,920 Speaker 1: data in monkeys that have been challenged with COVID to 86 00:05:06,160 --> 00:05:10,479 Speaker 1: the virus that causes COVID. But we are still developing 87 00:05:10,680 --> 00:05:15,320 Speaker 1: a preparation of our vaccine that meets the high standard 88 00:05:15,360 --> 00:05:18,880 Speaker 1: to be tested in humans. Our vaccine takes longer to 89 00:05:18,960 --> 00:05:23,760 Speaker 1: develop the manufacturing protocols that we expect once it's once 90 00:05:23,800 --> 00:05:26,679 Speaker 1: we've been through it the first time. Actually, our cost 91 00:05:26,760 --> 00:05:29,800 Speaker 1: of goods, our doses and the rest of it are 92 00:05:29,839 --> 00:05:36,400 Speaker 1: probably more suitable for wide deployment, uh than the existing 93 00:05:36,560 --> 00:05:38,640 Speaker 1: m RNA vaccine. You said that one thing that concerned 94 00:05:38,640 --> 00:05:40,840 Speaker 1: you was durability of the m RNA vaccines. So I'm 95 00:05:40,839 --> 00:05:44,960 Speaker 1: wondering about not about durability of your vaccine, but about 96 00:05:45,320 --> 00:05:50,839 Speaker 1: resistance that it has to potential variants. Well, the the 97 00:05:51,000 --> 00:05:54,320 Speaker 1: T cell vaccines we think will be more robust to 98 00:05:54,480 --> 00:05:58,800 Speaker 1: covering the different variants than some of the other vaccines 99 00:05:58,839 --> 00:06:02,240 Speaker 1: that are more focused on antibodies. Dr Letterman, we were 100 00:06:02,320 --> 00:06:06,000 Speaker 1: we were finishing up talking about your vaccine that you're developed, 101 00:06:06,040 --> 00:06:08,400 Speaker 1: that's in development a Tonic Tonics Pharmaceuticals, And I know 102 00:06:09,040 --> 00:06:12,799 Speaker 1: because it is a public traded company and because regulatory reasons, 103 00:06:12,960 --> 00:06:15,800 Speaker 1: you can't be exact with with dates. But what's a 104 00:06:15,839 --> 00:06:17,719 Speaker 1: realistic way for us to think about if it goes 105 00:06:17,760 --> 00:06:21,719 Speaker 1: to clinical trials in humans starting next year, when could 106 00:06:21,720 --> 00:06:27,640 Speaker 1: it become available for widespread potential emergency use authorization? UM 107 00:06:27,760 --> 00:06:30,119 Speaker 1: I think we would take at least a year after 108 00:06:30,160 --> 00:06:33,040 Speaker 1: the first clinical studies because you see seen from the 109 00:06:33,200 --> 00:06:37,159 Speaker 1: FIS or Moderne experiences, you need large studies to show 110 00:06:37,240 --> 00:06:40,160 Speaker 1: the effects. But part of it will be influenced by 111 00:06:40,279 --> 00:06:46,200 Speaker 1: how prevalent the infection is, how prevalent COVID is. Hopefully 112 00:06:46,440 --> 00:06:50,680 Speaker 1: again hopefully COVID will be less and less prevalent and 113 00:06:51,160 --> 00:06:53,839 Speaker 1: then it will take us longer to develop it. But 114 00:06:54,480 --> 00:06:57,800 Speaker 1: if there is a big rebound because of seasonality, the 115 00:06:57,880 --> 00:07:01,680 Speaker 1: variant or you know, maybe because of the waning of 116 00:07:01,760 --> 00:07:05,400 Speaker 1: protection from the existing vaccines, then you know, things could 117 00:07:05,440 --> 00:07:07,599 Speaker 1: move more quickly. You know. It's interesting. We have a 118 00:07:07,600 --> 00:07:10,160 Speaker 1: story coming up. It's in a Blueberg business Week magazine 119 00:07:10,160 --> 00:07:13,440 Speaker 1: and it's specifically taking a look at Cuba and the 120 00:07:13,480 --> 00:07:15,600 Speaker 1: work that they have done in vaccines. And Tim and 121 00:07:15,640 --> 00:07:17,560 Speaker 1: I were kind of marveling as we came into the 122 00:07:17,560 --> 00:07:21,160 Speaker 1: studio today about who knew you know, all of the 123 00:07:21,200 --> 00:07:23,800 Speaker 1: work that Cuba is doing in the bio sense bioscience 124 00:07:23,800 --> 00:07:27,200 Speaker 1: sector specifically, and they've they've got advanced vaccines that they've 125 00:07:27,240 --> 00:07:30,200 Speaker 1: been working on. You know, uh when it comes to 126 00:07:30,360 --> 00:07:32,600 Speaker 1: lung cancer and so on. It's actually I think before 127 00:07:32,640 --> 00:07:36,040 Speaker 1: FDA approval, it does remind me and we we saw 128 00:07:36,080 --> 00:07:39,480 Speaker 1: that certainly with COVID. You know that when you tap 129 00:07:39,600 --> 00:07:42,880 Speaker 1: the world, you know, maybe what we can come together 130 00:07:42,960 --> 00:07:46,000 Speaker 1: on and ultimately solve. And I do wonder, since this 131 00:07:46,080 --> 00:07:49,320 Speaker 1: is your world, how is the world change when it 132 00:07:49,360 --> 00:07:53,760 Speaker 1: comes to really working on global solutions global vaccines not 133 00:07:53,880 --> 00:07:56,240 Speaker 1: just done something like COVID, but the next virus that's 134 00:07:56,280 --> 00:07:58,200 Speaker 1: going to you know, kind of turn the world into 135 00:07:58,200 --> 00:08:01,200 Speaker 1: a tailspin or send the world to a talpan or 136 00:08:01,440 --> 00:08:03,840 Speaker 1: on some of the diseases and ailments that really plague 137 00:08:04,000 --> 00:08:08,920 Speaker 1: our society. Well, I think COVID has brought the world 138 00:08:08,960 --> 00:08:12,800 Speaker 1: together in the research community. But even looking at something 139 00:08:13,240 --> 00:08:17,680 Speaker 1: like the Fasier vaccine, which is you know, just remarkable. 140 00:08:17,680 --> 00:08:21,440 Speaker 1: I mean, the original work started with Drew Weissman and 141 00:08:21,680 --> 00:08:26,800 Speaker 1: Catalan Krrico at the University of Pennsylvania. She's American born, 142 00:08:26,880 --> 00:08:30,600 Speaker 1: but she's Hungarian. UM and then if you look at 143 00:08:30,600 --> 00:08:36,600 Speaker 1: their major partner, bio in Tech, is based in Mainz, Germany. 144 00:08:36,840 --> 00:08:40,840 Speaker 1: UM and UH is run largely by a husband and 145 00:08:40,880 --> 00:08:43,720 Speaker 1: wife team who are Turkish, and you know, you could 146 00:08:43,760 --> 00:08:46,120 Speaker 1: go on and on and on. So I don't know 147 00:08:46,160 --> 00:08:50,240 Speaker 1: that science has any borders that you know. Basically these 148 00:08:50,240 --> 00:08:53,040 Speaker 1: are well and into people getting together and putting their 149 00:08:53,040 --> 00:08:57,280 Speaker 1: best ideas together. So I think that this really is 150 00:08:57,320 --> 00:09:01,319 Speaker 1: a global effort, even if the most wrecking noizeable UM 151 00:09:01,800 --> 00:09:05,600 Speaker 1: sponsor of it is a global pharmaceutical files are based 152 00:09:05,600 --> 00:09:08,800 Speaker 1: in New York City. I think that you know, there 153 00:09:08,840 --> 00:09:11,680 Speaker 1: really is a global effort. And um you know, the 154 00:09:11,679 --> 00:09:14,600 Speaker 1: the change of information, the way that articles have come 155 00:09:14,640 --> 00:09:18,079 Speaker 1: out so quickly, people rushing together. It's been a wonderful 156 00:09:18,600 --> 00:09:23,120 Speaker 1: UM community effort. Hey, Dr Letterman, Um, what's the way 157 00:09:23,120 --> 00:09:26,720 Speaker 1: that we get to widespread vaccination in the United States. 158 00:09:26,720 --> 00:09:28,720 Speaker 1: What's the right conversation to have with people who are 159 00:09:28,760 --> 00:09:31,160 Speaker 1: still hesitant to take one of these vaccines that's available. 160 00:09:33,679 --> 00:09:37,840 Speaker 1: I wish I knew the answer. I'm hopeful that time 161 00:09:38,040 --> 00:09:41,680 Speaker 1: will will be a deciding factor. I think that a 162 00:09:41,679 --> 00:09:44,319 Speaker 1: lot of people don't want to be first. They want 163 00:09:44,360 --> 00:09:46,520 Speaker 1: to see that other people have gotten it, that you 164 00:09:46,559 --> 00:09:50,079 Speaker 1: know that the that the benefits are evident, and things 165 00:09:50,160 --> 00:09:54,320 Speaker 1: like that. So hopefully time and information will come through. 166 00:09:54,559 --> 00:09:57,240 Speaker 1: I think, Um, you know, it was very difficult to 167 00:09:57,280 --> 00:09:59,800 Speaker 1: have the pandemic at all, but it was also difficult 168 00:09:59,800 --> 00:10:02,600 Speaker 1: to of it during an election year. And I think 169 00:10:02,640 --> 00:10:05,720 Speaker 1: that now that the messaging to people is much more consistent, 170 00:10:06,320 --> 00:10:09,960 Speaker 1: that you know, the vaccines are safe and effective. I 171 00:10:10,000 --> 00:10:14,120 Speaker 1: hope slowly people will come through. But there are other 172 00:10:14,200 --> 00:10:17,680 Speaker 1: things that will be incentives. For example, the CDC recommendations 173 00:10:18,080 --> 00:10:20,240 Speaker 1: saying if you're vaccinated, you don't have to wear a 174 00:10:20,240 --> 00:10:23,400 Speaker 1: mask in many places, going back to work, going back 175 00:10:23,440 --> 00:10:26,920 Speaker 1: to school. A lot of these places can regulate whether 176 00:10:27,040 --> 00:10:29,880 Speaker 1: someone can do something if they're vaccinated or not. All right, 177 00:10:29,960 --> 00:10:32,720 Speaker 1: Dr Seth Laderman, thank you so much. Co founder, CEO, 178 00:10:32,880 --> 00:10:36,040 Speaker 1: chairman of Tonics Pharmaceuticals on the phone from New Bedford, Massachusetts. 179 00:10:36,080 --> 00:10:38,760 Speaker 1: I meager the stock up about sixty percent so far 180 00:10:38,840 --> 00:10:42,240 Speaker 1: this year, trading for a dollar thirteen. So just to 181 00:10:42,320 --> 00:10:44,360 Speaker 1: kind of give you some perspective in terms of movements, 182 00:10:49,120 --> 00:10:53,160 Speaker 1: this is Bloomberg Business Week with Carol Masser and Bloomberg 183 00:10:53,240 --> 00:10:57,920 Speaker 1: Quick Takes Tim Stinovan on Bloomberg Radio. So you might 184 00:10:57,960 --> 00:11:00,120 Speaker 1: recall last week at the Bloomberg Live or to vent 185 00:11:00,160 --> 00:11:02,000 Speaker 1: Bloomberg Business Week, we caut up at Jason Lynn, the 186 00:11:02,040 --> 00:11:05,160 Speaker 1: director behind a massively successful Fast and Furious franchise. While 187 00:11:05,200 --> 00:11:09,040 Speaker 1: the latest installment term out this past weekend called F nine, 188 00:11:09,800 --> 00:11:13,400 Speaker 1: opened internationally, most of the tickets sales happening in the 189 00:11:13,400 --> 00:11:15,800 Speaker 1: biggest market in the world, China. There was a lot 190 00:11:15,880 --> 00:11:19,640 Speaker 1: going on. Well it makes sense given given the status 191 00:11:19,640 --> 00:11:23,000 Speaker 1: of reopening in China versus the United States. Exactly, we're 192 00:11:23,000 --> 00:11:26,320 Speaker 1: gonna talk about the movie industry. Theaters opening up right 193 00:11:26,320 --> 00:11:28,280 Speaker 1: here on Bloomberg Business Week. So let's talk about the 194 00:11:28,280 --> 00:11:30,840 Speaker 1: theater industry. Someone who's got a front row seat to 195 00:11:30,960 --> 00:11:33,440 Speaker 1: that F nine opening and just what's going on and 196 00:11:33,480 --> 00:11:35,880 Speaker 1: great to be talking with him again. Is I'm AXIEO 197 00:11:35,960 --> 00:11:38,160 Speaker 1: Richard Gelfon, He joins us on the phone in New 198 00:11:38,240 --> 00:11:40,120 Speaker 1: York City, rich and so nice to have you here 199 00:11:40,520 --> 00:11:43,800 Speaker 1: with Tim and myself. How are you, Um, I'm great, 200 00:11:43,880 --> 00:11:47,240 Speaker 1: and especially great because of what you alluded to with 201 00:11:47,360 --> 00:11:51,320 Speaker 1: the opening of F nine weekend. Um. You know, it's 202 00:11:51,360 --> 00:11:54,400 Speaker 1: it's been a long cold winter, as you guys are 203 00:11:54,480 --> 00:11:57,120 Speaker 1: quite aware, and it's nice to have the good old 204 00:11:57,120 --> 00:12:01,600 Speaker 1: fashioned Hollywood blockbuster back. And I inc. F nine really 205 00:12:01,640 --> 00:12:05,440 Speaker 1: opened up like a Hollywood blockbuster. It did hundred sixty 206 00:12:05,720 --> 00:12:09,840 Speaker 1: million dollars globally, hundred thirty five million dollars in China. 207 00:12:10,600 --> 00:12:14,720 Speaker 1: IMAX's market share was very healthy. It's our biggest opening, 208 00:12:15,280 --> 00:12:18,800 Speaker 1: um in you know, since before the pandemic started. So 209 00:12:19,200 --> 00:12:21,680 Speaker 1: feeling a lot better than I was a few weeks ago, Carol. 210 00:12:21,920 --> 00:12:23,560 Speaker 1: That's a big change. How I mean, how are you 211 00:12:23,559 --> 00:12:25,800 Speaker 1: feeling a few weeks ago? And what changed that? Was it? 212 00:12:25,880 --> 00:12:30,800 Speaker 1: This opening weekend? Especially globally? You know, probably be more 213 00:12:30,800 --> 00:12:33,240 Speaker 1: honest than I should be. This has been one of 214 00:12:33,280 --> 00:12:37,760 Speaker 1: the most frustrating periods of the pandemic for me, and 215 00:12:37,840 --> 00:12:40,680 Speaker 1: that's because I think the world is really ready to 216 00:12:40,800 --> 00:12:43,400 Speaker 1: go back to the movies, and I think there are 217 00:12:43,440 --> 00:12:46,200 Speaker 1: a lot of movies that are ready to go, but 218 00:12:46,280 --> 00:12:50,000 Speaker 1: I think not every territory in the world is ready 219 00:12:50,040 --> 00:12:53,000 Speaker 1: at the same time and the same pace. And the 220 00:12:53,120 --> 00:12:58,079 Speaker 1: traditional distribution model would say you open up globally at 221 00:12:58,120 --> 00:13:01,160 Speaker 1: one time all over the world, but you know, guess what, 222 00:13:01,800 --> 00:13:04,920 Speaker 1: this just isn't the time without works, so that this 223 00:13:04,960 --> 00:13:09,360 Speaker 1: time is called for different kinds of models. And as 224 00:13:09,360 --> 00:13:14,880 Speaker 1: a result, um, the studios, who mostly were located in Hollywood, 225 00:13:15,240 --> 00:13:18,720 Speaker 1: we're looking out their windows and saying the pandemic is 226 00:13:18,760 --> 00:13:22,560 Speaker 1: really not doing well here, ignoring the fact that you know, 227 00:13:22,600 --> 00:13:26,280 Speaker 1: they've been blockbusters in Japan and China and Korea and 228 00:13:26,360 --> 00:13:30,000 Speaker 1: Taiwan for months. So I think kind of we've been 229 00:13:30,080 --> 00:13:32,800 Speaker 1: ready in a lot of places, but the movies just 230 00:13:32,960 --> 00:13:35,640 Speaker 1: haven't been there. And one of the things that was 231 00:13:35,679 --> 00:13:39,640 Speaker 1: really unique about the release of F nine was it 232 00:13:39,760 --> 00:13:43,280 Speaker 1: was released in China about five weeks before it's being 233 00:13:43,280 --> 00:13:45,520 Speaker 1: released in the rest of the world, which is a 234 00:13:45,559 --> 00:13:48,360 Speaker 1: different model. And I think most of the studios have 235 00:13:48,480 --> 00:13:52,880 Speaker 1: played it really conservative and said we're not opening anywhere 236 00:13:53,160 --> 00:13:57,400 Speaker 1: until we could open everywhere. Um. But fortunately universal you know, 237 00:13:57,480 --> 00:14:00,079 Speaker 1: took a risk in doing this, and it opens in 238 00:14:00,120 --> 00:14:03,320 Speaker 1: the US in late June, but it really worked. And 239 00:14:03,400 --> 00:14:07,080 Speaker 1: I think you need to demonstrate that people want to 240 00:14:07,080 --> 00:14:09,520 Speaker 1: go back to the movies, and you need the kind 241 00:14:09,559 --> 00:14:12,520 Speaker 1: of numbers that we had in order to get people 242 00:14:13,000 --> 00:14:16,440 Speaker 1: a studios comfortable opening in their movies. So I think 243 00:14:16,720 --> 00:14:19,240 Speaker 1: this was a pretty big deal. Yeah. Well, what's interesting 244 00:14:19,320 --> 00:14:21,680 Speaker 1: is I remember you saying to when you and I 245 00:14:21,760 --> 00:14:25,000 Speaker 1: talked um at that Bloomberg Live event. I think it 246 00:14:25,040 --> 00:14:27,280 Speaker 1: was back in April. You know how you guys went 247 00:14:27,320 --> 00:14:29,920 Speaker 1: into COVID earlier because of China and then came out 248 00:14:29,920 --> 00:14:31,800 Speaker 1: of it earlier too because of China, And that how 249 00:14:31,920 --> 00:14:35,040 Speaker 1: China in many ways has been a guiding light about 250 00:14:35,320 --> 00:14:37,800 Speaker 1: kind of where we're going and how the world is reopening. 251 00:14:37,840 --> 00:14:40,760 Speaker 1: Not apples to apples, I understand that, but it has 252 00:14:40,800 --> 00:14:43,000 Speaker 1: helped us give us a little bit of kind of 253 00:14:43,000 --> 00:14:47,320 Speaker 1: the way forward in terms of how the world maybe reopens. Yeah, 254 00:14:47,360 --> 00:14:50,240 Speaker 1: I think that's definitely the case. I think the big 255 00:14:50,280 --> 00:14:54,480 Speaker 1: distinguished thing thing between China and other places, though, is 256 00:14:54,840 --> 00:14:58,400 Speaker 1: China didn't vaccinate at the level that other places did 257 00:14:58,800 --> 00:15:02,920 Speaker 1: and mostly achieved it's kind of feeling of safety and 258 00:15:03,320 --> 00:15:08,080 Speaker 1: low results through social contact tracing and other means that 259 00:15:08,120 --> 00:15:11,160 Speaker 1: we're not used here in the West. So in a way, 260 00:15:11,240 --> 00:15:14,560 Speaker 1: as good as China has been, um, places like North 261 00:15:14,600 --> 00:15:18,040 Speaker 1: America could be even better once it really opens up, 262 00:15:18,080 --> 00:15:21,320 Speaker 1: because I imagine you guys noticed that the Nick Game 263 00:15:21,720 --> 00:15:25,280 Speaker 1: the other night, there were fifteen thousand people, um, you know, 264 00:15:25,360 --> 00:15:28,640 Speaker 1: having a great time. And I really feel that it's 265 00:15:28,720 --> 00:15:31,520 Speaker 1: going to be like the Roaring twenties and people at 266 00:15:31,600 --> 00:15:34,040 Speaker 1: once they get out of the house and you know, 267 00:15:34,120 --> 00:15:37,360 Speaker 1: they can go back to what their lives were like before. 268 00:15:37,400 --> 00:15:40,560 Speaker 1: I think that's going to happen very quickly, and I 269 00:15:40,600 --> 00:15:43,760 Speaker 1: think you know it. As I said, it's happening in Asia, 270 00:15:43,760 --> 00:15:47,520 Speaker 1: and there's no reason I think that that won't happen here. Well, 271 00:15:47,520 --> 00:15:50,360 Speaker 1: I'm wondering about that specifically here in the US, because 272 00:15:50,720 --> 00:15:55,000 Speaker 1: we have seen companies like Disney and Warner Media as 273 00:15:55,040 --> 00:16:00,800 Speaker 1: it has is still called, release theatrical releases to streaming 274 00:16:00,880 --> 00:16:04,040 Speaker 1: direct consumer. And I'm wondering if you think that consumers 275 00:16:04,040 --> 00:16:07,840 Speaker 1: have been conditioned to enjoy this stuff at home rather 276 00:16:07,920 --> 00:16:10,120 Speaker 1: than in a theater, and that might not provide the 277 00:16:10,120 --> 00:16:12,440 Speaker 1: incentive for them to get back to what they were 278 00:16:12,440 --> 00:16:14,960 Speaker 1: doing before the pandemic because now they've been able to 279 00:16:14,960 --> 00:16:18,080 Speaker 1: do it from their couch and not get a babysitter. Yeah. 280 00:16:18,120 --> 00:16:20,760 Speaker 1: I mean that's a narrative that I think a lot 281 00:16:20,800 --> 00:16:25,080 Speaker 1: of the streaming services are promoting. But I don't really 282 00:16:25,120 --> 00:16:27,800 Speaker 1: think it's going to play out that way. I mean, 283 00:16:27,960 --> 00:16:30,760 Speaker 1: people were locked in their living rooms, were locked in 284 00:16:30,800 --> 00:16:33,840 Speaker 1: their kitchens. So when you're locked in your living room, 285 00:16:34,320 --> 00:16:37,800 Speaker 1: you watch movies on your television set. When you locked 286 00:16:37,800 --> 00:16:41,000 Speaker 1: in your kitchen, you don't go to restaurants. You eat 287 00:16:41,040 --> 00:16:43,520 Speaker 1: in your kitchen when you're allowed to go out. I 288 00:16:43,520 --> 00:16:46,320 Speaker 1: mean you look at almost every behavior. Look at what's 289 00:16:46,360 --> 00:16:49,160 Speaker 1: gone on with the restaurants in New York and London 290 00:16:49,240 --> 00:16:53,200 Speaker 1: and Los Angeles. I mean people weren't condition the only 291 00:16:53,280 --> 00:16:56,680 Speaker 1: bringing in food. They were limited by the circumstances to 292 00:16:56,800 --> 00:17:00,960 Speaker 1: doing that. And you even look at um Um one 293 00:17:00,960 --> 00:17:05,200 Speaker 1: of the recent films, god Zilla Versus Kang that was 294 00:17:05,320 --> 00:17:11,560 Speaker 1: released simultaneously by Warner Media um in imax. We sold 295 00:17:11,640 --> 00:17:15,640 Speaker 1: out about a thousand shows around the United States when 296 00:17:15,640 --> 00:17:19,120 Speaker 1: people could get it for free if they were subscribers 297 00:17:19,119 --> 00:17:22,640 Speaker 1: on their TV sets. So I just don't think that's 298 00:17:22,680 --> 00:17:25,200 Speaker 1: the way it is. I mean, people go to the movies, 299 00:17:25,400 --> 00:17:31,480 Speaker 1: partly for escapism, partly for social reasons, partly for social activity, 300 00:17:31,680 --> 00:17:34,439 Speaker 1: probably to get away from their kids, probably to get 301 00:17:34,440 --> 00:17:37,600 Speaker 1: away from their parents. You know, everyone has a different reason. 302 00:17:37,960 --> 00:17:41,040 Speaker 1: But I don't think they're gonna say, oh, I'd much 303 00:17:41,160 --> 00:17:44,240 Speaker 1: rather watch this in my living room with my family, 304 00:17:44,480 --> 00:17:47,359 Speaker 1: which is what I've been doing for the last fifteen months. 305 00:17:47,359 --> 00:17:50,040 Speaker 1: That's oh g, it's this summer. Can't wait to do 306 00:17:50,400 --> 00:17:54,320 Speaker 1: that on Saturday night. I just think I am I 307 00:17:54,359 --> 00:18:00,680 Speaker 1: am being sarcastic, but continue but one second, and sorry Carol, 308 00:18:00,720 --> 00:18:05,280 Speaker 1: but it was an interim solution designed for pandemic. And 309 00:18:05,359 --> 00:18:09,120 Speaker 1: I don't blame anybody. I mean, if you're Disney, you're Warner, 310 00:18:09,600 --> 00:18:13,240 Speaker 1: you know the movie theaters are closed. You've got this 311 00:18:13,359 --> 00:18:16,400 Speaker 1: content you paid for, You've got to do something with it. 312 00:18:16,600 --> 00:18:19,359 Speaker 1: And by the way, streaming happens to be something that 313 00:18:19,440 --> 00:18:23,000 Speaker 1: the stock market likes an awful lot. So you say, oh, 314 00:18:23,080 --> 00:18:27,520 Speaker 1: I'll stream, but they know that that's that's made for 315 00:18:27,560 --> 00:18:30,280 Speaker 1: a time and a place. And again, I don't want 316 00:18:30,280 --> 00:18:32,320 Speaker 1: to make too much of it, but if you look 317 00:18:32,359 --> 00:18:36,240 Speaker 1: at the recent results and the and the projections from 318 00:18:36,280 --> 00:18:40,359 Speaker 1: the streaming services during the last quarter, as the pandemic 319 00:18:40,400 --> 00:18:43,920 Speaker 1: has started to fade. You know, the numbers for streaming 320 00:18:43,960 --> 00:18:46,960 Speaker 1: of you know, not kept pace with where they were 321 00:18:47,320 --> 00:18:50,800 Speaker 1: in the pandemic. And again that's logical, and people are 322 00:18:50,840 --> 00:18:54,520 Speaker 1: still going to stream certain things, but for big blockbuster 323 00:18:54,640 --> 00:18:58,600 Speaker 1: movies like IMAX does no one's gonna look forward to 324 00:18:58,720 --> 00:19:01,960 Speaker 1: spending Saturday night on the couch with the parents rich. 325 00:19:02,040 --> 00:19:04,600 Speaker 1: To be fair, just like you're saying the narrative of 326 00:19:04,600 --> 00:19:07,080 Speaker 1: the streaming guys, they're kind of talking their book to 327 00:19:07,200 --> 00:19:09,120 Speaker 1: some extent. I think it's safe to say that you're 328 00:19:09,160 --> 00:19:12,160 Speaker 1: talking your book about people coming back. But I mean, 329 00:19:12,200 --> 00:19:16,800 Speaker 1: what do you then make of all the streaming deals 330 00:19:16,840 --> 00:19:19,840 Speaker 1: that are happening right now? We're kind of on, you know, 331 00:19:19,880 --> 00:19:22,240 Speaker 1: the edge of our seat, waiting for Amazon to maybe 332 00:19:22,240 --> 00:19:25,520 Speaker 1: announce that they are acquiring the MGM. You know, studios 333 00:19:25,920 --> 00:19:30,000 Speaker 1: line up in library. Uh. And so you've worked in 334 00:19:30,200 --> 00:19:33,680 Speaker 1: mergers and acquisitions. You're an investment, but you understand this world. 335 00:19:33,720 --> 00:19:36,240 Speaker 1: Do you think this is just a cycle that runs 336 00:19:36,240 --> 00:19:39,080 Speaker 1: out of steam or do you think there's real momentum 337 00:19:39,119 --> 00:19:41,359 Speaker 1: Because there's some things that changes, but as a result 338 00:19:41,400 --> 00:19:43,320 Speaker 1: of the pandemic that will stay with us. And I 339 00:19:43,359 --> 00:19:45,119 Speaker 1: think there's a lot that would say that streaming is 340 00:19:45,160 --> 00:19:48,000 Speaker 1: part of that. I think streaming is part of it, 341 00:19:48,280 --> 00:19:50,159 Speaker 1: but I think in a different way than it was 342 00:19:50,280 --> 00:19:54,000 Speaker 1: during the pandemic. I think for niche movies and movies 343 00:19:54,480 --> 00:19:57,879 Speaker 1: that you know, cost less in a budget and have 344 00:19:58,040 --> 00:20:01,679 Speaker 1: to find a specific audience, releasing them direct to streaming 345 00:20:01,680 --> 00:20:05,560 Speaker 1: will make sense because the marketing costs are extremely high 346 00:20:05,640 --> 00:20:09,439 Speaker 1: to do that reaching your consumer and a niche market 347 00:20:09,520 --> 00:20:12,240 Speaker 1: is difficult to find. And I think those things will 348 00:20:12,280 --> 00:20:16,480 Speaker 1: continue to stream. Also, almost every studio has come up 349 00:20:16,480 --> 00:20:20,359 Speaker 1: now with a forty five day window where they'll they'll 350 00:20:20,560 --> 00:20:24,440 Speaker 1: stream forty five days after opening. And I think, if anything, 351 00:20:24,480 --> 00:20:27,360 Speaker 1: that's going to make the content more valuable and the 352 00:20:27,359 --> 00:20:32,160 Speaker 1: theatrical run more valuable to the studio. Because remember, how 353 00:20:32,160 --> 00:20:36,280 Speaker 1: did HBO get started? How did um um, how did 354 00:20:36,320 --> 00:20:41,240 Speaker 1: Netflix get started? They streamed Hollywood movies and those movies 355 00:20:41,600 --> 00:20:44,600 Speaker 1: got a lot of exposure, got a brand, got good 356 00:20:44,600 --> 00:20:49,000 Speaker 1: word of mouth. I've got brand recognition, built sequels, and 357 00:20:49,040 --> 00:20:53,080 Speaker 1: then people paid a lot to go stream them. Um. 358 00:20:53,119 --> 00:20:56,679 Speaker 1: You know, as I'll ask you a question, name five 359 00:20:56,840 --> 00:21:01,199 Speaker 1: stream movies from Netflix last year? Um? You know? Uh. 360 00:21:01,840 --> 00:21:03,880 Speaker 1: And by the way, it is a trick question because 361 00:21:03,920 --> 00:21:06,040 Speaker 1: I was just in l A and I asked ten 362 00:21:06,160 --> 00:21:09,840 Speaker 1: people that and nobody can name five stream movies during 363 00:21:10,080 --> 00:21:12,680 Speaker 1: and that's streaming. When I was growing up, there were 364 00:21:12,760 --> 00:21:15,880 Speaker 1: TV movies and then there were real movies. I think 365 00:21:15,920 --> 00:21:18,840 Speaker 1: now there's going to be real movies and streaming movies. 366 00:21:19,040 --> 00:21:21,400 Speaker 1: But do theaters have to do something rich to kind 367 00:21:21,400 --> 00:21:23,720 Speaker 1: of bring everybody back? Like listen, I love that the 368 00:21:23,720 --> 00:21:26,439 Speaker 1: seat's got more comfy, that I can stretch out like 369 00:21:26,520 --> 00:21:28,919 Speaker 1: that has it's a reason for me to go to theaters. 370 00:21:29,320 --> 00:21:31,360 Speaker 1: I know people who it's become a real date night 371 00:21:31,400 --> 00:21:33,520 Speaker 1: where they're in a little cocoon and there's drinks and 372 00:21:33,520 --> 00:21:36,199 Speaker 1: their food and it's like an experience. But you know, 373 00:21:36,400 --> 00:21:38,679 Speaker 1: I don't know if that's just the minority or do 374 00:21:38,760 --> 00:21:42,000 Speaker 1: the majority wants something wrong? You know more that you 375 00:21:42,040 --> 00:21:45,600 Speaker 1: know experience experiential aspect of it. Does it have to 376 00:21:45,640 --> 00:21:49,240 Speaker 1: be amped up? Yeah? I think it does. And I 377 00:21:49,280 --> 00:21:52,400 Speaker 1: think that's why IMAX is doing really well. So if 378 00:21:52,440 --> 00:21:56,040 Speaker 1: you look at our results in Asia, our market share 379 00:21:56,119 --> 00:22:00,560 Speaker 1: has gone up in virtually every country post pandemic because 380 00:22:00,600 --> 00:22:03,119 Speaker 1: I think you know, people who have been watching in 381 00:22:03,160 --> 00:22:07,240 Speaker 1: their living rooms and watching their televisions, they when they leave, 382 00:22:07,320 --> 00:22:10,200 Speaker 1: they want to do something really special. So I think, 383 00:22:10,359 --> 00:22:13,639 Speaker 1: you know, that's why IMAX has been very successful over 384 00:22:13,680 --> 00:22:15,800 Speaker 1: the last number of years, and that's why I think 385 00:22:15,840 --> 00:22:20,160 Speaker 1: will be even more successful during this because filmmakers make 386 00:22:20,280 --> 00:22:23,840 Speaker 1: these big films to be seen on the big screen 387 00:22:23,880 --> 00:22:26,960 Speaker 1: and to be heard with the big sound. And UM, 388 00:22:27,000 --> 00:22:30,320 Speaker 1: you know, I think you're completely right, and um you know, 389 00:22:30,680 --> 00:22:33,160 Speaker 1: God knows. I hope you're even more and more right 390 00:22:33,160 --> 00:22:36,120 Speaker 1: because we'll be a beneficiary of that trend. Hey, Rich 391 00:22:36,400 --> 00:22:40,240 Speaker 1: I'm wondering how your business changes, how the economics of 392 00:22:40,320 --> 00:22:44,760 Speaker 1: IMAX changes when you have more consolidation within the studios 393 00:22:44,800 --> 00:22:49,760 Speaker 1: when Discovery and uh Warner Media are tied up. If 394 00:22:49,800 --> 00:22:52,399 Speaker 1: Amazon and MGM studios are tied up, are they going 395 00:22:52,480 --> 00:22:56,440 Speaker 1: to charge you more? No, I don't. You have to 396 00:22:56,480 --> 00:23:00,240 Speaker 1: look on in a very individual basis. So Discovering made 397 00:23:00,320 --> 00:23:04,240 Speaker 1: unscripted content and none of that really went into the 398 00:23:04,240 --> 00:23:08,760 Speaker 1: theatrical ecosystem. So by merging with Warner you're not really 399 00:23:08,760 --> 00:23:12,280 Speaker 1: losing the studio. You're getting Actually, I think a more 400 00:23:12,680 --> 00:23:16,639 Speaker 1: pro theatrical management team behind one of the best studios 401 00:23:16,680 --> 00:23:20,000 Speaker 1: that's existed for a long time. Um. I think if 402 00:23:20,040 --> 00:23:23,560 Speaker 1: Amazon ends up buying MGM. They're buying it for their 403 00:23:24,119 --> 00:23:28,800 Speaker 1: you know, their expertise in television program which programming, which 404 00:23:28,840 --> 00:23:33,960 Speaker 1: fits perfectly with Amazon's prime strategy. I don't think Amazon 405 00:23:34,160 --> 00:23:37,880 Speaker 1: is gonna, you know, start putting Bond on your telephone. 406 00:23:38,200 --> 00:23:40,720 Speaker 1: I mean, I just don't think that's the way I'm 407 00:23:40,800 --> 00:23:44,800 Speaker 1: double O seven or or the Broccoli family, which owns 408 00:23:44,840 --> 00:23:47,960 Speaker 1: a lot of those rights, wants to see that franchise go. 409 00:23:48,480 --> 00:23:52,159 Speaker 1: I mean, MGM has not been in the blockbuster business 410 00:23:52,200 --> 00:23:55,240 Speaker 1: except for a Bond for a while. They've been really 411 00:23:55,240 --> 00:23:57,680 Speaker 1: in the TV business. I think it makes a lot 412 00:23:57,720 --> 00:24:00,280 Speaker 1: of sense for Amazon and fits right in. So I 413 00:24:00,480 --> 00:24:04,440 Speaker 1: I don't think, UM, there's gonna be a loss of content. No, Hey, 414 00:24:04,840 --> 00:24:06,919 Speaker 1: we wanted to also ask you about working in China. 415 00:24:07,040 --> 00:24:11,000 Speaker 1: I mean, you've been in the market, you UM have 416 00:24:11,400 --> 00:24:13,320 Speaker 1: figured out a way forward, and I feel like it 417 00:24:13,359 --> 00:24:17,000 Speaker 1: gets more and more complicated between the East versus the West, 418 00:24:17,040 --> 00:24:19,560 Speaker 1: particularly when you're talking about China. There's a story, it's 419 00:24:19,560 --> 00:24:21,840 Speaker 1: among the most read on the Bloomberg Today about UM 420 00:24:22,000 --> 00:24:26,240 Speaker 1: actor and former w w E champion John Cena apologizing 421 00:24:26,280 --> 00:24:29,399 Speaker 1: for describing Taiwan as a country in a promotional video 422 00:24:29,440 --> 00:24:31,879 Speaker 1: that he did for his latest movie and saying sorry 423 00:24:31,960 --> 00:24:36,240 Speaker 1: ultimately in Mandarin after the comments triggered a backlash in China. 424 00:24:36,440 --> 00:24:39,400 Speaker 1: Is the world allowing China too much say and control? 425 00:24:39,440 --> 00:24:40,960 Speaker 1: In your view, especially when it comes to kind of 426 00:24:41,000 --> 00:24:45,200 Speaker 1: the arts and culture. I mean, China is such a 427 00:24:45,280 --> 00:24:50,240 Speaker 1: complicated place. And I've been going to China for almost 428 00:24:50,280 --> 00:24:53,520 Speaker 1: twenty five years. And the way I'm ex dealt with 429 00:24:53,640 --> 00:24:59,000 Speaker 1: China is we created a separate entity UM in Hong 430 00:24:59,080 --> 00:25:02,479 Speaker 1: Kong Cold I'm at China, and it's owned by a 431 00:25:02,520 --> 00:25:06,119 Speaker 1: lot of people in mainland China people in Hong Kong. 432 00:25:06,520 --> 00:25:11,520 Speaker 1: It's staffed by almost completely Chinese people. It's senior management 433 00:25:11,560 --> 00:25:14,320 Speaker 1: team is Chinese. And we've been one of the most 434 00:25:14,359 --> 00:25:19,880 Speaker 1: successful Western media companies in China UM, and I think 435 00:25:19,960 --> 00:25:23,520 Speaker 1: the reason for that is because we haven't tried to 436 00:25:23,640 --> 00:25:26,880 Speaker 1: come in and be a US company in China. We've 437 00:25:26,880 --> 00:25:29,600 Speaker 1: tried to be a Chinese company in China. And I 438 00:25:29,640 --> 00:25:33,439 Speaker 1: think a lot of the media entertainment companies have missed 439 00:25:33,440 --> 00:25:36,040 Speaker 1: that nuance a little bit and have tried to set 440 00:25:36,119 --> 00:25:40,280 Speaker 1: up a branch office run by an American who heads 441 00:25:40,320 --> 00:25:43,480 Speaker 1: that branch, and the Chinese are very proud people and 442 00:25:43,520 --> 00:25:46,959 Speaker 1: they're obviously their culture is really important to them, and 443 00:25:47,000 --> 00:25:52,119 Speaker 1: I think trying to manage their culture on remote control 444 00:25:52,680 --> 00:25:55,040 Speaker 1: is difficult, and I think there are a lot of pitfalls, 445 00:25:55,400 --> 00:25:58,240 Speaker 1: and we're seeing a lot of those. So we've taken 446 00:25:58,240 --> 00:26:01,000 Speaker 1: a different approach and I think gets worked for us, 447 00:26:01,080 --> 00:26:03,920 Speaker 1: and I would expect that other people are going to 448 00:26:04,040 --> 00:26:06,679 Speaker 1: learn from that and take a similar approach. Hey, one 449 00:26:06,720 --> 00:26:08,920 Speaker 1: thing I want to ask you, because we are awaiting, UM, 450 00:26:08,960 --> 00:26:12,520 Speaker 1: some comments from the family of George Floyd, who was 451 00:26:12,600 --> 00:26:14,840 Speaker 1: meeting with President Biden today. This is, of course the 452 00:26:14,880 --> 00:26:18,640 Speaker 1: one year anniversary of the death of George Floyd. Early 453 00:26:18,680 --> 00:26:20,680 Speaker 1: on in the pandemic. You know, we talked with you 454 00:26:21,240 --> 00:26:23,320 Speaker 1: about or you know we talked with you about a 455 00:26:23,320 --> 00:26:26,040 Speaker 1: month ago, but how early on in the pandemic and 456 00:26:26,119 --> 00:26:28,600 Speaker 1: some of the difficult issues of a racism and writing 457 00:26:28,640 --> 00:26:31,200 Speaker 1: and companies were dealing with that. George Floyd, of course, 458 00:26:31,200 --> 00:26:33,439 Speaker 1: black lives matter, and you said that you had some 459 00:26:33,480 --> 00:26:36,240 Speaker 1: outside pr consults that told you to basically hide and 460 00:26:36,280 --> 00:26:40,160 Speaker 1: be quiet. You felt otherwise, what is the responsibility of 461 00:26:40,200 --> 00:26:43,160 Speaker 1: global corporations on on things like racism and what happened 462 00:26:43,160 --> 00:26:48,200 Speaker 1: to George Floyd? I mean, obviously, UM, George Floyd was murdered, 463 00:26:48,240 --> 00:26:51,560 Speaker 1: and thank god, um always, you know, one of the 464 00:26:51,840 --> 00:26:55,280 Speaker 1: killers was brought to justice, and that's you know, that's 465 00:26:55,320 --> 00:27:00,280 Speaker 1: the bedrock of American you know, really happy that that happened. Um. 466 00:27:00,320 --> 00:27:03,720 Speaker 1: In terms of a corporate response, I mean, at the time, 467 00:27:03,760 --> 00:27:07,159 Speaker 1: we did a number of internal things. We've you know, 468 00:27:07,240 --> 00:27:10,280 Speaker 1: we we put together a committee, We've done different things 469 00:27:10,359 --> 00:27:14,199 Speaker 1: on diversity recruiting, and we'll continue to do them. But 470 00:27:14,640 --> 00:27:19,160 Speaker 1: I don't think, um, there's one stock answer for every company. 471 00:27:19,320 --> 00:27:22,200 Speaker 1: So you know, for example, I don't know whether you're 472 00:27:22,200 --> 00:27:24,440 Speaker 1: aware of this, but I'm act as a Canadian company 473 00:27:24,680 --> 00:27:27,479 Speaker 1: and we do business in eighty four countries. So I 474 00:27:27,520 --> 00:27:31,320 Speaker 1: think maybe our responsibility and our views are different than 475 00:27:31,359 --> 00:27:34,760 Speaker 1: a company that is the US company completely. I mean, 476 00:27:34,760 --> 00:27:38,399 Speaker 1: there are just a lot of conflicting issues, but I 477 00:27:38,440 --> 00:27:42,040 Speaker 1: do think all companies have a duty when there's massive 478 00:27:42,440 --> 00:27:46,800 Speaker 1: social injustice to engage in some way and to make 479 00:27:46,840 --> 00:27:50,280 Speaker 1: sure their employees feel hurt. Can you talk a little 480 00:27:50,280 --> 00:27:52,320 Speaker 1: bit about what you're doing inside the company, because that's 481 00:27:52,320 --> 00:27:54,880 Speaker 1: something that we've been talking about all day at Bloomberg Quicktake, 482 00:27:55,359 --> 00:27:56,960 Speaker 1: and and something that I've been thinking a lot about 483 00:27:57,000 --> 00:27:59,320 Speaker 1: a lot because In the last year, we got a 484 00:27:59,320 --> 00:28:02,560 Speaker 1: lot of commitment from from companies about how they're trying 485 00:28:02,560 --> 00:28:06,440 Speaker 1: to hire more diverse talent across the companies and making 486 00:28:06,520 --> 00:28:08,840 Speaker 1: changes within the company. What specifically are you guys doing 487 00:28:08,840 --> 00:28:13,600 Speaker 1: at Imax. Well, you know, it's it's never enough, but 488 00:28:13,720 --> 00:28:18,120 Speaker 1: you should know that in the five years I'm from uh, 489 00:28:18,240 --> 00:28:23,200 Speaker 1: five years ago to now, my management team is about 490 00:28:23,800 --> 00:28:26,879 Speaker 1: women or people of diversity, and that was you know, 491 00:28:27,000 --> 00:28:30,000 Speaker 1: we did that before you know, any of these efforts 492 00:28:30,000 --> 00:28:33,840 Speaker 1: became public. And you know, we're trying to add more 493 00:28:33,880 --> 00:28:36,679 Speaker 1: women to our board and more people of color, and 494 00:28:36,720 --> 00:28:39,720 Speaker 1: we've been somewhat successful in doing that, but we have 495 00:28:40,200 --> 00:28:43,920 Speaker 1: I'm farther to go and I think I'm preaching tolerance 496 00:28:44,000 --> 00:28:47,280 Speaker 1: day today and inclusiveness and you know, that's the way 497 00:28:47,320 --> 00:28:50,640 Speaker 1: we always try to model our culture and this just 498 00:28:50,760 --> 00:28:54,520 Speaker 1: reinforces it. But I do wonder too, especially when you're 499 00:28:54,520 --> 00:28:56,680 Speaker 1: a publicly held entity. We talked about this, whether it's E. 500 00:28:56,840 --> 00:29:02,000 Speaker 1: S G. Climate change, um, but you social responsibilities and 501 00:29:02,320 --> 00:29:04,600 Speaker 1: invest You know, there's a lot of speak, as you know, 502 00:29:04,760 --> 00:29:07,560 Speaker 1: rich about the importance of diversity, and yet it does 503 00:29:07,600 --> 00:29:09,840 Speaker 1: still feel like when it comes to actual actions and 504 00:29:10,280 --> 00:29:13,880 Speaker 1: you know, your company aside that companies still are kind 505 00:29:13,880 --> 00:29:17,520 Speaker 1: of slow to make change. Why is that. Well, I 506 00:29:17,520 --> 00:29:19,800 Speaker 1: can only speak for my own company, and I told 507 00:29:19,800 --> 00:29:23,280 Speaker 1: you we completely remade our management team and are in 508 00:29:23,320 --> 00:29:27,920 Speaker 1: the process of remaking significant parts of our board. So 509 00:29:28,320 --> 00:29:31,480 Speaker 1: you know, not to point fingers than anyone, but it's 510 00:29:31,520 --> 00:29:35,800 Speaker 1: harder for bigger companies. Were relatively small company, so we 511 00:29:35,800 --> 00:29:39,280 Speaker 1: can be much more agile. And I think also because 512 00:29:39,840 --> 00:29:43,320 Speaker 1: UM we're so diverse geographically, you know, we have a 513 00:29:43,320 --> 00:29:46,840 Speaker 1: different perspective, you know, coming into it. Like you know, 514 00:29:46,960 --> 00:29:50,440 Speaker 1: for example, in Asia, we have a hundred and fifty employees. 515 00:29:50,800 --> 00:29:54,120 Speaker 1: In China, we have an office in Japan, So you know, 516 00:29:54,200 --> 00:29:58,480 Speaker 1: we don't have to be encouraged or sensitized on how 517 00:29:58,520 --> 00:30:01,040 Speaker 1: we feel about Asians. They're part of our company, They're 518 00:30:01,080 --> 00:30:04,400 Speaker 1: part of our DNA. So maybe that's part of your answer. 519 00:30:04,720 --> 00:30:07,560 Speaker 1: Size of the company and you know, its roots being 520 00:30:07,600 --> 00:30:11,680 Speaker 1: diverse or its roots being more singular. Hey, rich One, 521 00:30:11,760 --> 00:30:14,120 Speaker 1: you and I talked back in April to UM and 522 00:30:14,160 --> 00:30:16,520 Speaker 1: just kind of going back to the impact you know, 523 00:30:16,560 --> 00:30:18,200 Speaker 1: the pandemic has had on so many of us in 524 00:30:18,400 --> 00:30:20,160 Speaker 1: so many different ways. You mentioned to me that the 525 00:30:20,160 --> 00:30:22,440 Speaker 1: pandemic opened your eyes that you can't be a one 526 00:30:22,960 --> 00:30:25,320 Speaker 1: trick pony and and Tim and I were talking about, 527 00:30:25,360 --> 00:30:27,080 Speaker 1: you know, innovation is one thing Tim, right, we talked 528 00:30:27,080 --> 00:30:29,320 Speaker 1: about a lot with companies we do, and I'm wondering 529 00:30:29,720 --> 00:30:33,880 Speaker 1: how you are innovating at Imax and what's in the pipeline, 530 00:30:33,920 --> 00:30:36,480 Speaker 1: because before the pandemic, the narrative was, Okay, this is 531 00:30:36,480 --> 00:30:39,040 Speaker 1: about the experience economy. How do we get people to 532 00:30:39,120 --> 00:30:41,200 Speaker 1: do things that they cannot do at home, they can't 533 00:30:41,200 --> 00:30:43,560 Speaker 1: do online, and they can only do in person. And 534 00:30:43,680 --> 00:30:46,440 Speaker 1: of course seeing a movie on an IMAX screen in 535 00:30:46,520 --> 00:30:48,920 Speaker 1: an IMAX studio is a way that you do that. 536 00:30:49,080 --> 00:30:51,920 Speaker 1: But I mean, how do you take that even further? Yes, 537 00:30:52,040 --> 00:30:54,520 Speaker 1: So I was going to say this country, this company 538 00:30:54,960 --> 00:30:58,480 Speaker 1: has been built on innovation and some of this might 539 00:30:58,640 --> 00:31:03,920 Speaker 1: surprise you. At UM stadium seating was invented by Imax. 540 00:31:04,120 --> 00:31:07,120 Speaker 1: UM we were the first ones, more recently to launch 541 00:31:07,240 --> 00:31:13,960 Speaker 1: laser projection on a global basis, advanced sound systems, special 542 00:31:14,040 --> 00:31:17,640 Speaker 1: cameras that we built, whether to go into space, which 543 00:31:17,680 --> 00:31:20,160 Speaker 1: we've done, or to go to the bottom of the ocean. 544 00:31:20,720 --> 00:31:24,280 Speaker 1: We've always been a leading innovator in an industry not 545 00:31:24,480 --> 00:31:29,440 Speaker 1: known for innovation. UM UM in the movie industry, but 546 00:31:29,640 --> 00:31:32,160 Speaker 1: during the pandemic we stepped it up a little more 547 00:31:32,600 --> 00:31:36,040 Speaker 1: and we worked with a company that's fairly well known 548 00:31:36,160 --> 00:31:40,480 Speaker 1: in the founders of our company, of our partner in 549 00:31:40,600 --> 00:31:44,800 Speaker 1: artificial intelligence had started a company called ken Show, which 550 00:31:44,840 --> 00:31:48,400 Speaker 1: is now owned by SMP and it's the largest sale 551 00:31:48,400 --> 00:31:52,080 Speaker 1: of an AI company, and we're working with them. We 552 00:31:52,120 --> 00:31:56,240 Speaker 1: announced the joint venture to figure out how to enhance images, 553 00:31:56,360 --> 00:31:59,600 Speaker 1: so whether they're old movies or old sports events, and 554 00:32:00,840 --> 00:32:03,000 Speaker 1: there are a lot of uses for that, whether in 555 00:32:03,360 --> 00:32:08,120 Speaker 1: hardware or software. We haven't fully outlined outlined it yet. UM. 556 00:32:08,160 --> 00:32:12,479 Speaker 1: We've got another new product for I'm streaming on large 557 00:32:12,560 --> 00:32:16,800 Speaker 1: screen TVs in the home. It's called IMAX Enhanced, and 558 00:32:16,920 --> 00:32:21,120 Speaker 1: we've done a deals with Sony, in ten Cent and 559 00:32:21,240 --> 00:32:24,800 Speaker 1: others where when you have content that's been put through 560 00:32:24,840 --> 00:32:28,800 Speaker 1: the process and you watch it on these big screens, 561 00:32:28,080 --> 00:32:33,720 Speaker 1: it looks better than an otherwise would by a significant amount. UM. 562 00:32:33,800 --> 00:32:37,600 Speaker 1: We've been working on our direct to consumer app. UM 563 00:32:37,800 --> 00:32:41,280 Speaker 1: we're looking at putting live content in our theaters. So 564 00:32:41,600 --> 00:32:46,120 Speaker 1: we're always purged to look on how we can innovate. 565 00:32:46,200 --> 00:32:49,480 Speaker 1: And in fact, not many people will say this, but 566 00:32:49,920 --> 00:32:52,800 Speaker 1: you know, Despite all the horrible things about the pandemic, 567 00:32:53,480 --> 00:32:56,400 Speaker 1: one good thing is it gave you, you know, a reset. 568 00:32:56,480 --> 00:32:58,960 Speaker 1: It gave you the time and the ability to use 569 00:32:59,000 --> 00:33:01,239 Speaker 1: a lot of your people to try and look for 570 00:33:01,280 --> 00:33:04,160 Speaker 1: new ways to innovate. Yeah, it's interesting. I think people 571 00:33:04,200 --> 00:33:06,000 Speaker 1: were worried about you wouldn't be able to do that, 572 00:33:06,280 --> 00:33:09,480 Speaker 1: but ultimately we found a way forward with that. Hey, Rich, 573 00:33:09,680 --> 00:33:12,200 Speaker 1: thank you so much. So happy to talk with you, 574 00:33:12,480 --> 00:33:16,120 Speaker 1: uh and really a nice deep diving conversation there, and 575 00:33:16,160 --> 00:33:18,920 Speaker 1: look forward to checking in with you again, uh further 576 00:33:19,000 --> 00:33:22,320 Speaker 1: in the year and hopefully we just continue this reopening globally. UM, 577 00:33:22,360 --> 00:33:24,760 Speaker 1: so so great, Thank you so much. I'm axo. Rich 578 00:33:24,800 --> 00:33:27,600 Speaker 1: Galfon on the phone in New York City. I can't 579 00:33:27,600 --> 00:33:29,840 Speaker 1: even remember the last time. I was just trying to 580 00:33:29,840 --> 00:33:31,360 Speaker 1: think of but you know what, we had a kid 581 00:33:31,400 --> 00:33:34,000 Speaker 1: a year before the pandemic, so we haven't been to 582 00:33:34,040 --> 00:33:36,440 Speaker 1: the theater since before then. Yeah, there was a point, 583 00:33:36,440 --> 00:33:40,360 Speaker 1: but I know I went with Aggie's probably God, I'm 584 00:33:40,440 --> 00:33:42,640 Speaker 1: just trying to think what it was. I don't know. 585 00:33:42,720 --> 00:33:45,120 Speaker 1: I think we saw probably an Avenger movie, that great 586 00:33:45,240 --> 00:33:48,560 Speaker 1: rock climbing documentary. I forget what it's called. It was 587 00:33:48,600 --> 00:33:56,560 Speaker 1: so good. It was a long time ago a journal. Yeah, 588 00:33:56,560 --> 00:34:01,880 Speaker 1: but you let me drive. No, no, honey, please, I'll 589 00:34:01,920 --> 00:34:08,880 Speaker 1: do the drivel. I want to drive. Just drive by 590 00:34:11,680 --> 00:34:23,040 Speaker 1: the questions trying. This is the drive to the globe community. Thanks, 591 00:34:23,040 --> 00:34:27,200 Speaker 1: we'll drying us down on Bloomberg Radio. All right, everybody, Yep, 592 00:34:27,280 --> 00:34:29,520 Speaker 1: it's Tuesday. I gotta check my calendar. There it is. 593 00:34:30,920 --> 00:34:32,600 Speaker 1: It doesn't feel like one of those weeks it does 594 00:34:32,680 --> 00:34:36,440 Speaker 1: for the markets. Oh my god. Yeah, it's kind of 595 00:34:36,480 --> 00:34:38,480 Speaker 1: crazy and I feel like you're it's playing out that 596 00:34:38,520 --> 00:34:40,399 Speaker 1: way in the trading day. Let's get to it. Close 597 00:34:40,400 --> 00:34:43,920 Speaker 1: to me, President portfolio manager at Smeat Capital Management, on 598 00:34:43,960 --> 00:34:46,520 Speaker 1: the phone in Phoenix, Arizona. Smeat Value Fund. Check it out, 599 00:34:46,560 --> 00:34:48,600 Speaker 1: beating just about all of its peers so far this year, 600 00:34:48,680 --> 00:34:51,640 Speaker 1: up on beating most of its piers two over the 601 00:34:51,640 --> 00:34:55,040 Speaker 1: past five years, returning on average more than annually. Call 602 00:34:55,160 --> 00:34:58,520 Speaker 1: how are you doing? How about you guys doing well? 603 00:34:58,600 --> 00:35:02,279 Speaker 1: Doing well? Um? Tell us. You know what we love 604 00:35:02,320 --> 00:35:04,800 Speaker 1: about talking with you is you guys are buying, your selling, 605 00:35:04,840 --> 00:35:09,080 Speaker 1: your taking moves. Um. You love the discovery move with 606 00:35:09,160 --> 00:35:10,840 Speaker 1: a T and T. Let's just go right to it 607 00:35:10,840 --> 00:35:13,600 Speaker 1: because we have been talking about streaming every day. We're 608 00:35:13,600 --> 00:35:16,479 Speaker 1: waiting to see if Amazon ultimately does that MGM deal. 609 00:35:16,920 --> 00:35:19,680 Speaker 1: Why do you like the Discovery A T and T deal. 610 00:35:21,000 --> 00:35:23,839 Speaker 1: It's a great question. We've been involved with Discovery since 611 00:35:23,920 --> 00:35:26,680 Speaker 1: late seventeen, and we actually were involved with Scripts prior 612 00:35:26,760 --> 00:35:31,480 Speaker 1: to the transaction where they bought UM Scripts, and you know, Discovery, 613 00:35:32,120 --> 00:35:37,280 Speaker 1: as Barry Diller said last week, UM went from being UM, 614 00:35:37,320 --> 00:35:39,719 Speaker 1: you know, nothing to a something under the leadership of 615 00:35:39,800 --> 00:35:42,839 Speaker 1: David sass Laught since that company has gone public back 616 00:35:42,840 --> 00:35:46,319 Speaker 1: in oh seven, and UM sath last took what was 617 00:35:46,360 --> 00:35:49,760 Speaker 1: you know, really kind of considered low grade content reality 618 00:35:49,760 --> 00:35:53,360 Speaker 1: television and made it a highly profitable business, and no 619 00:35:53,400 --> 00:35:56,480 Speaker 1: one expected that, might I add, and now he with 620 00:35:56,520 --> 00:35:59,239 Speaker 1: a background where he was at NBC Universal for years, 621 00:35:59,719 --> 00:36:03,120 Speaker 1: is going to take UM, you know, scripted television. He's 622 00:36:03,120 --> 00:36:05,880 Speaker 1: gonna be taking news and sports and putting into those 623 00:36:06,160 --> 00:36:08,239 Speaker 1: into one place. And I think the irony is they 624 00:36:08,320 --> 00:36:11,719 Speaker 1: yet again do not believe in his leadership or the 625 00:36:11,760 --> 00:36:15,200 Speaker 1: assets they have. In comparison and UM having the blessing 626 00:36:15,239 --> 00:36:18,520 Speaker 1: of the Malone and new House family, UM in toe 627 00:36:18,760 --> 00:36:21,160 Speaker 1: with an effect a takeover by A T and T 628 00:36:21,360 --> 00:36:24,880 Speaker 1: shareholders of Discovery. We think it's got quite a bit 629 00:36:24,920 --> 00:36:27,239 Speaker 1: of fun all around it, and we're very pleased to 630 00:36:27,280 --> 00:36:29,960 Speaker 1: be involved a shareholder. Did you buy more Discovery as 631 00:36:30,000 --> 00:36:33,080 Speaker 1: a result. Uh, well, let's let's slow this way. I 632 00:36:33,680 --> 00:36:36,600 Speaker 1: compliance officers probably listening, so I will say, UM, we 633 00:36:36,640 --> 00:36:40,080 Speaker 1: find it interesting. We were what we've been doing with 634 00:36:40,120 --> 00:36:42,200 Speaker 1: the run up and Discovery you know, through this year, 635 00:36:42,320 --> 00:36:45,879 Speaker 1: is we were actually buying non voting shares UM, and 636 00:36:45,920 --> 00:36:48,960 Speaker 1: so we're we're kind of blown at the spread between 637 00:36:48,960 --> 00:36:54,919 Speaker 1: the voting versus non voting. We saw that in the day. Yeah. Yeah, 638 00:36:54,920 --> 00:36:56,920 Speaker 1: and Malone also said he won't take a premium on 639 00:36:57,000 --> 00:37:00,319 Speaker 1: his super voting, which was even a higher price. So UM. 640 00:37:00,440 --> 00:37:03,960 Speaker 1: I think while Amazon is finishing up their deal with MGM, 641 00:37:04,000 --> 00:37:06,799 Speaker 1: the other interesting part is this movie business of of 642 00:37:06,880 --> 00:37:09,080 Speaker 1: this um. You know the Warner Brothers studio, if you will, 643 00:37:09,520 --> 00:37:12,359 Speaker 1: it's a highly marketable asset. UM. So yes, there's debt 644 00:37:12,400 --> 00:37:13,960 Speaker 1: going on in this, but not to say that there's 645 00:37:13,960 --> 00:37:16,560 Speaker 1: not assets that they could divest if they want. And 646 00:37:16,600 --> 00:37:18,799 Speaker 1: we know there's buyers. We know Apple needs content, we 647 00:37:18,840 --> 00:37:22,439 Speaker 1: know Google needs content. There's a big short on content. UM. 648 00:37:22,520 --> 00:37:24,799 Speaker 1: And I would also say to you guys that all 649 00:37:24,800 --> 00:37:27,600 Speaker 1: these businesses are in play. Lions Gates in play, Vicom, 650 00:37:27,719 --> 00:37:31,400 Speaker 1: CBS is in play, Discoveries in play, time, Warners in 651 00:37:31,480 --> 00:37:34,680 Speaker 1: play for Warner Medias and play. Excuse me, um, I 652 00:37:34,719 --> 00:37:37,799 Speaker 1: think it's only going to heat up because the pockets 653 00:37:37,800 --> 00:37:39,759 Speaker 1: and the stock prices and the money that could come 654 00:37:39,760 --> 00:37:42,719 Speaker 1: after them from the likes of Apple and Google are incredible. 655 00:37:42,800 --> 00:37:45,800 Speaker 1: Do you think NBCUniversal, owned by Comcast right now, is 656 00:37:45,840 --> 00:37:51,400 Speaker 1: in play? Uh? Well, how I you know? Uh? Using 657 00:37:51,520 --> 00:37:55,160 Speaker 1: Malone's comments UM from the last week, he said that 658 00:37:55,239 --> 00:37:59,120 Speaker 1: it's problematic for Comcast because of the regulatory They own 659 00:37:59,200 --> 00:38:01,200 Speaker 1: the data, they know a lot about the customer, and 660 00:38:01,239 --> 00:38:03,960 Speaker 1: they have the content. UM. I think you could also 661 00:38:04,000 --> 00:38:06,080 Speaker 1: see where they could get a deal done where they 662 00:38:06,120 --> 00:38:08,879 Speaker 1: kind of step back arm's length UM, where it's not 663 00:38:08,960 --> 00:38:12,520 Speaker 1: directly held by Comcast. But UM, let's say you have 664 00:38:12,719 --> 00:38:15,600 Speaker 1: a co ownership or part of it sold UM to 665 00:38:15,640 --> 00:38:19,000 Speaker 1: get a deal where you bring in other people's assets 666 00:38:19,000 --> 00:38:22,960 Speaker 1: into the NBC Universal fold. So I think the possibilities 667 00:38:22,960 --> 00:38:24,560 Speaker 1: are endless at this point. That's the way I look 668 00:38:24,600 --> 00:38:27,440 Speaker 1: at it. So in terms of other streaming things that 669 00:38:27,520 --> 00:38:30,439 Speaker 1: might happen deals, are there any investments that you've made 670 00:38:30,440 --> 00:38:34,000 Speaker 1: based on your expectations of something that might happen. No, No, 671 00:38:34,120 --> 00:38:36,000 Speaker 1: I mean we we really like this, and by we 672 00:38:36,120 --> 00:38:38,680 Speaker 1: own Comcast as well. That's why I say that from 673 00:38:38,719 --> 00:38:41,560 Speaker 1: that perspective. But I think the truth is we're going 674 00:38:41,600 --> 00:38:43,760 Speaker 1: to find out in this era is that only media 675 00:38:43,800 --> 00:38:46,279 Speaker 1: people are good at media. And why we we found 676 00:38:46,280 --> 00:38:49,040 Speaker 1: that every era Coca Cola sucked at at doing movie 677 00:38:49,040 --> 00:38:52,440 Speaker 1: pictures at one point, um the conglomerates got into the 678 00:38:52,440 --> 00:38:54,719 Speaker 1: movie business. Gulf and Western was an example of that 679 00:38:54,760 --> 00:38:58,239 Speaker 1: with Paramount so Um. What's interesting today is we think 680 00:38:58,280 --> 00:39:01,399 Speaker 1: that big behemoth corporations a k a. Tech companies are 681 00:39:01,440 --> 00:39:03,880 Speaker 1: going to be better at media than media people, which 682 00:39:03,920 --> 00:39:06,799 Speaker 1: is kind of mind blowing relative to history. So so, 683 00:39:06,800 --> 00:39:09,279 Speaker 1: Tara La Chapelle, a Bloomberg opinion has a column out 684 00:39:09,320 --> 00:39:13,120 Speaker 1: today and you're quoted in it. I noticed, um, is 685 00:39:13,320 --> 00:39:17,080 Speaker 1: Amazon's MGM deal a game changer? And you and she 686 00:39:17,239 --> 00:39:20,480 Speaker 1: draws this connection between what happened with Amazon and Whole Foods, 687 00:39:20,520 --> 00:39:23,120 Speaker 1: and you told her the biggest mistake of Jeff bezos 688 00:39:23,160 --> 00:39:25,920 Speaker 1: career was buying Whole Foods. Um, excuse me, that was 689 00:39:25,960 --> 00:39:29,520 Speaker 1: Bill Smeat. I'm sorry, yeah, yeah, that was your dad 690 00:39:29,600 --> 00:39:31,719 Speaker 1: wrong smeat. But but I do I am interested in 691 00:39:31,760 --> 00:39:35,439 Speaker 1: this idea of the of the of you guys thinking 692 00:39:35,440 --> 00:39:38,200 Speaker 1: about this from Amazon's perspective. So what can Amazon do 693 00:39:39,200 --> 00:39:41,960 Speaker 1: if if it's been such a mistake for them to 694 00:39:42,040 --> 00:39:44,840 Speaker 1: buy whole foods, what does Amazon do with MGMs content? 695 00:39:46,080 --> 00:39:49,000 Speaker 1: We'll see that here's the reality to whether it be 696 00:39:49,040 --> 00:39:51,480 Speaker 1: the whole foods at the MGM, it can never be 697 00:39:51,560 --> 00:39:54,040 Speaker 1: a meaningful part of the overall size of the business. 698 00:39:54,080 --> 00:39:57,640 Speaker 1: And I'll give you another relic of history. Okay, Um, 699 00:39:57,920 --> 00:40:01,319 Speaker 1: don't forget that Expedia came out of Microsoft. Was Expedia 700 00:40:01,440 --> 00:40:04,640 Speaker 1: a very successful online travel agent answers? Yes, it's one 701 00:40:04,680 --> 00:40:06,719 Speaker 1: of the two. It's an old adopaly it's booking in them. 702 00:40:07,280 --> 00:40:10,480 Speaker 1: But inside Microsoft, it was not a meaningful business and 703 00:40:10,480 --> 00:40:13,120 Speaker 1: it never was going to be. Um, even today it's 704 00:40:13,120 --> 00:40:15,960 Speaker 1: a non meaningful size of a business rolls to the Microsoft. 705 00:40:16,360 --> 00:40:20,239 Speaker 1: So and that's the problem is that history would argue 706 00:40:20,280 --> 00:40:24,080 Speaker 1: when you see businesses diversifying, you should get really nervous 707 00:40:24,280 --> 00:40:26,479 Speaker 1: because it should tell you what's wrong with the core 708 00:40:26,560 --> 00:40:29,840 Speaker 1: business that makes them want to go into a new arena. 709 00:40:30,000 --> 00:40:33,480 Speaker 1: And today we applaud it because the market has incredible 710 00:40:33,520 --> 00:40:37,200 Speaker 1: confidence in the data or in the management team or whatever. 711 00:40:37,280 --> 00:40:39,720 Speaker 1: That is the problem is we should all be asking 712 00:40:39,800 --> 00:40:42,960 Speaker 1: what's wrong with the core business and why are we 713 00:40:43,000 --> 00:40:45,440 Speaker 1: going to a different direction? All right, So tell us 714 00:40:45,440 --> 00:40:46,920 Speaker 1: what else do you like or anything that you've been 715 00:40:46,960 --> 00:40:51,600 Speaker 1: buying home building our names that you guys love, NVR, 716 00:40:51,680 --> 00:40:56,560 Speaker 1: d h I, LNAR. Also, we've got some housing data today. Um, 717 00:40:56,920 --> 00:40:58,919 Speaker 1: there was some of it a little bit troubling, but 718 00:40:59,080 --> 00:41:01,640 Speaker 1: maybe not surprising in terms of prices, especially with the 719 00:41:01,680 --> 00:41:03,759 Speaker 1: demand that's out there. Um, how do you see the 720 00:41:03,800 --> 00:41:07,600 Speaker 1: housing market playing out? Are continuing to play out? It's 721 00:41:07,600 --> 00:41:10,919 Speaker 1: gonna be wonderful. We share with people that we were 722 00:41:10,920 --> 00:41:14,640 Speaker 1: gonna go to fifty percent higher home building numbers, um 723 00:41:15,040 --> 00:41:18,360 Speaker 1: assuredly over the next decade at some point, and people 724 00:41:18,400 --> 00:41:21,640 Speaker 1: say that's impossible. And what I love about that is 725 00:41:21,680 --> 00:41:26,520 Speaker 1: the economists should say it's possible. But it's based on price, 726 00:41:27,160 --> 00:41:29,560 Speaker 1: and that's the way we're gonna get enough labor and 727 00:41:29,680 --> 00:41:32,000 Speaker 1: inputs and so on and so forth. So this is 728 00:41:32,000 --> 00:41:34,040 Speaker 1: not a short term phenomena. It's not a sugar high 729 00:41:34,120 --> 00:41:36,800 Speaker 1: like people running their steamy checks out of the casino 730 00:41:36,880 --> 00:41:38,680 Speaker 1: or out of the robin hood accounts. We're talking about 731 00:41:38,680 --> 00:41:41,399 Speaker 1: where people live, and so it's a completely different thing. 732 00:41:41,440 --> 00:41:44,120 Speaker 1: The other thing, I would say, the mall business is 733 00:41:44,160 --> 00:41:47,160 Speaker 1: gonna boom. It's already booming in markets that's that have 734 00:41:47,200 --> 00:41:49,719 Speaker 1: been open. And we think the economics of names like 735 00:41:49,800 --> 00:41:52,520 Speaker 1: Mace rich In Simon Property Group are going to make 736 00:41:52,560 --> 00:41:58,680 Speaker 1: people cry at a later date because pre pandemic mall 737 00:41:58,719 --> 00:42:03,200 Speaker 1: business sucked. Post pandemic is winning and winning great Tilman 738 00:42:03,239 --> 00:42:05,960 Speaker 1: I thought Tilman for Tita being interviewed earlier today. And 739 00:42:06,000 --> 00:42:08,279 Speaker 1: you can't find a restaurant that's not booming right now, 740 00:42:08,600 --> 00:42:11,200 Speaker 1: and they're paying up for all kinds of delicacies at 741 00:42:11,200 --> 00:42:13,719 Speaker 1: at nice restaurants. And that's wonderful for a mall because 742 00:42:13,760 --> 00:42:16,839 Speaker 1: that's a kind of property business that sits on a mall. 743 00:42:17,000 --> 00:42:19,719 Speaker 1: If those restaurants find parking at our mall, and here 744 00:42:19,719 --> 00:42:22,480 Speaker 1: in Arizona, we've been open for a year, location location, Look, 745 00:42:22,480 --> 00:42:25,759 Speaker 1: if those restaurants can find employee exactly, yeah, exactly. It's 746 00:42:25,760 --> 00:42:27,920 Speaker 1: tough to find employees, but you know what a booming 747 00:42:27,960 --> 00:42:30,440 Speaker 1: business where it's tough to find employee, that's the first 748 00:42:30,440 --> 00:42:33,120 Speaker 1: world problem in my book. All right, we gotta run. Hey, Cole, 749 00:42:33,160 --> 00:42:34,680 Speaker 1: thank you so much to how do your dad calls 750 00:42:34,680 --> 00:42:37,200 Speaker 1: to me? President and Portfolio Mager. It's Meat Capital Management 751 00:42:37,239 --> 00:42:40,239 Speaker 1: on the phone from Phoenix, Arizona. Listen. Their value fund 752 00:42:40,239 --> 00:42:44,080 Speaker 1: has been a top performer consistently over the years, and 753 00:42:44,120 --> 00:42:46,040 Speaker 1: I love it that we get to talk on names. 754 00:42:47,000 --> 00:42:49,880 Speaker 1: Thanks for listening to Bloomberg Business Week. Download the podcast 755 00:42:49,880 --> 00:42:52,840 Speaker 1: on iTunes, SoundCloud, or Bloomberg dot com, and you can 756 00:42:52,880 --> 00:42:55,040 Speaker 1: also listen to our radio show at two pm Eastern 757 00:42:55,040 --> 00:42:57,719 Speaker 1: on Bloomberg Radio or watch us on YouTube. Sarah to 758 00:42:57,719 --> 00:43:02,800 Speaker 1: Bloomberg Global News Number,