WEBVTT - ikTok Bill Heads to Senate, Chaos Erupts at Tesla

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<v Speaker 1>From Marhard.

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<v Speaker 2>We're Innovation of Money and Power Collie in Silicon Valley, NBN.

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<v Speaker 2>This is Bloomberg Technology with Caroline Hyde and Ed loved Love.

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<v Speaker 3>I'm carolinehide A Bloomberg's World Headquarters in New York, and

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<v Speaker 3>I'm Ed Lovelow in San Francisco.

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<v Speaker 4>This is Bloomberg Technology.

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<v Speaker 5>Coming up divest oor ban legislation. It clears the House

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<v Speaker 5>and it heads to the Senate. That's this week.

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<v Speaker 3>Tik Target prepares to take this to the courts and

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<v Speaker 3>exhaust all legal fights.

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<v Speaker 5>Will have full coverage ahead.

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<v Speaker 4>Plus, we take a deep dive into Tesla as chaos

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<v Speaker 4>erupts internally and Elon must shifts the company's focus from

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<v Speaker 4>a cheaper model to the ROBOTAX will bring you the

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<v Speaker 4>findings from our Bloomberg Big.

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<v Speaker 3>Take and salesforce's talks with Informatica. They fizzle as a

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<v Speaker 3>company struggle to agree on terms of a deal, all

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<v Speaker 3>according to Sources'll discuss that and so much more throughout

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<v Speaker 3>this sabb At.

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<v Speaker 4>First, the other big story we're tracking is the passage

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<v Speaker 4>of the ban or divest TikTok bill on the hill.

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<v Speaker 4>We passed the House over the weekend. The expectation is

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<v Speaker 4>it will pass the Senate in the coming days. Bloomberg

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<v Speaker 4>Intelligence and This are in house researchers saying there's a

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<v Speaker 4>ninety percent chance it will go through the Senate and

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<v Speaker 4>be passed into law. These are the publicly traded social

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<v Speaker 4>media names. Some downward pressure on names like Meta and Snap,

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<v Speaker 4>alphabet pair and a Google a little higher. But I'm thinking,

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<v Speaker 4>of course about YouTube. The landscape for social media in

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<v Speaker 4>this country is front and center this week, Caroline.

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<v Speaker 3>And also what's happening abroad, the EU opening a new

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<v Speaker 3>investigation into TikTok as well. We're reporting all of this

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<v Speaker 3>as you just really focus on what's happening in the US.

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<v Speaker 4>Said.

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<v Speaker 3>In the coming days, the Senate expected to vote on

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<v Speaker 3>that legislation requiring TikTok's Chinese parent company, bike Dance to

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<v Speaker 3>divest its ownership stake in the app.

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<v Speaker 5>President Joe Biden has said, look, design that legislation pretty promptly.

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<v Speaker 3>If we gets through for more, let's bring in Bloomberg's

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<v Speaker 3>Alex Barinka.

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<v Speaker 5>It's been a busy.

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<v Speaker 3>Weekend, so this is kind of a Dondale law.

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<v Speaker 4>It does.

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<v Speaker 6>This bill passing seems almost inevitable. The Senate is expected

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<v Speaker 6>to take it up this week. President Joe Biden has

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<v Speaker 6>said he will sign it immediately, and TikTok inside is

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<v Speaker 6>already scrambling over the weekend.

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<v Speaker 5>After the bill passage.

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<v Speaker 6>On Saturday, we broke the news that the General Council

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<v Speaker 6>in the US for TikTok and Byte Dance, Eric Anderson,

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<v Speaker 6>who's been in charge of convincing the National Security Interagency

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<v Speaker 6>Committee that TikTok is doing enough to prevent any user

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<v Speaker 6>data from getting to China, is actually being pushed out

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<v Speaker 6>of his role. So the changes are happening internally. The

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<v Speaker 6>company is also sending memos to its employees promising that

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<v Speaker 6>if this bill passes this week, that will not be

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<v Speaker 6>the end of the story. By Dance and TikTok both

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<v Speaker 6>intend to fight this to every extent of the legal

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<v Speaker 6>battles possible before considering any kind of divestitor or separation

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<v Speaker 6>from TikTok Chinese parent company.

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<v Speaker 1>By Dance, I to Alkeds.

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<v Speaker 4>At the beginning of the show about the BI or

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<v Speaker 4>Bloomberg Intelligence assessed of whether or not this will pass

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<v Speaker 4>through the Senate and be passing to law ninety percent.

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<v Speaker 4>There are other piece of analysis is that if there

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<v Speaker 4>were to be a legal challenge by TikTok and its

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<v Speaker 4>US users, they assign a seventy percent chance that the

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<v Speaker 4>US government would be successful in court. Over the weekend,

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<v Speaker 4>we also had a lot of kind of internal news

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<v Speaker 4>at TikTok. What else have you reported, Alex.

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<v Speaker 6>Well, those pressures on the legal side, you know, it's

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<v Speaker 6>interesting to see those numbers. There are a number of

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<v Speaker 6>kind of legal avenues that TikTok might take. We saw

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<v Speaker 6>them when the state of Montana looked to ban the app.

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<v Speaker 6>Stand behind a number of users who actually sued, there

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<v Speaker 6>might also be folks like small businesses or other organizations

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<v Speaker 6>who feel like they're being harmed. So certainly the pressure

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<v Speaker 6>is on here in the US. And then just this

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<v Speaker 6>morning ed as Caroline mentioned, the European Union opened a

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<v Speaker 6>new probe into whether byte Dance violated the block new

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<v Speaker 6>Content law when it launched an app called TikTok lights

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<v Speaker 6>app in France and Spain without providing a full risk assessment.

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<v Speaker 6>So if you're internal at TikTok right now, you are

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<v Speaker 6>not only dealing with this inevitable passage of the bill

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<v Speaker 6>that bi Bloodberg Intelligence puts at ninety percent passage. You're

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<v Speaker 6>also having to fend off continued pushes for find scrutiny

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<v Speaker 6>over privacy, and again just the intense, unprecedented attention that

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<v Speaker 6>this move by US Congress has made, and perhaps has

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<v Speaker 6>got lawmakers and other geographies thinking, if the US is

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<v Speaker 6>doing something like this, should we be taking a closer look?

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<v Speaker 4>Bloomberg Zalx Brinka literally minute by minute reporting on this.

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<v Speaker 4>It's been a busy weekend, it will be a busy

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<v Speaker 4>week for you. Let's keep a conversation going. Bring in

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<v Speaker 4>Rachel Tippograph, the founder and CEO of mick Mac, an

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<v Speaker 4>e commerce marketing platform for multi channel brands. You understand

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<v Speaker 4>the entire lens here, the user's interest in TikTok, the

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<v Speaker 4>potential of TikTok in this country in the e commerce context,

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<v Speaker 4>and the competition out there. I talked about the chances

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<v Speaker 4>of this bill passing. I believe you see it passing

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<v Speaker 4>as well.

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<v Speaker 7>Absolutely, it'll be the big news headline this week that

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<v Speaker 7>the band will likely happen. But we at Mickmac don't

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<v Speaker 7>believe that this is.

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<v Speaker 5>The end of the story.

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<v Speaker 7>TikTok has become one of the most powerful platforms in

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<v Speaker 7>the world. At mickmac on any given day. We now

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<v Speaker 7>see TikTok as our second most traffic platform, Meta being

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<v Speaker 7>number one, TikTok being number two. We have to remember

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<v Speaker 7>TikTok didn't enter the cultural zeitgeist until twenty nineteen, and

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<v Speaker 7>fast forward today it is leap frogged YouTube, Snap, Pinterest,

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<v Speaker 7>and of course X in terms of brand investment and traffic.

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<v Speaker 7>So we don't believe this will be the end of TikTok.

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<v Speaker 7>TikTok will absolutely fight this the way that they did

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<v Speaker 7>with Trump and twenty twenty and Montana last year. That

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<v Speaker 7>will then create some time for a divestiture to really

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<v Speaker 7>come to life. And why wouldn't Salesforce or Microsoft or

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<v Speaker 7>Adobe or Walmart, Amazon or Meta make a lane and

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<v Speaker 7>grab for.

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<v Speaker 5>This because percent of Americans youth TikTok.

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<v Speaker 3>Well, the reason they might not is because China won't

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<v Speaker 3>let them.

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<v Speaker 5>We've also got a factory. Of course it might not

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<v Speaker 5>sell it, or indeed they wouldn't.

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<v Speaker 3>Let the access to the technology, but let's go with

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<v Speaker 3>the fact that maybe they are able to buy it

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<v Speaker 3>here in the US. I'm just interested amidst this uncertainty

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<v Speaker 3>because they still got a year if this goes past

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<v Speaker 3>the Senate, they then got a year to sell themselves.

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<v Speaker 3>Do any of your twelve hundred brands that use you,

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<v Speaker 3>that come through you start to pull back on their

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<v Speaker 3>investment and tiktoks you think at all?

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<v Speaker 7>You know this has been a part of the dialogue

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<v Speaker 7>for the past year that a ban could happen, and

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<v Speaker 7>for some of the advertisers we've seen a slight pause.

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<v Speaker 7>That being said, TikTok traffic at Mickmac has grown forty

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<v Speaker 7>percent year every year. So by and large, we continue

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<v Speaker 7>to see fortune one thousand brands invest in the platform.

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<v Speaker 7>And not only are they investing it from an advertising standpoint,

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<v Speaker 7>they're starting to invest in it in terms of a

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<v Speaker 7>standalone com channel now with the advent of TikTok shops.

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<v Speaker 7>So we're not seeing brands pull back. But the reality

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<v Speaker 7>is with advertising it's very easy to turn on and off.

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<v Speaker 7>We saw this happen with Meta, with YouTube with x

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<v Speaker 7>and so brands have options. If they choose not to

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<v Speaker 7>invest in TikTok, they're going to reallocate spend to other

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<v Speaker 7>social channels as well as programmatic like the Tride Desk or.

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<v Speaker 1>CTV like Roku.

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<v Speaker 7>So I'm not overly worried in terms of what will

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<v Speaker 7>happen in the advertising landscape. There's plenty of options for

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<v Speaker 7>brands to drive reach, awareness and conversion.

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<v Speaker 4>There's the advertising side of the equation, there's the eyeballs.

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<v Speaker 4>And it was interesting that over the weekend Elon Mosk,

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<v Speaker 4>the CEO of X, the platform formerly known as Twitter,

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<v Speaker 4>gave his opinion that TikTok should not be banned in

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<v Speaker 4>the USA, even though such a band may benefit his

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<v Speaker 4>own platform X therein lies the value of it. You

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<v Speaker 4>talk to the e commerce side, But for me, the

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<v Speaker 4>thing we never talk about that much is fifty percent

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<v Speaker 4>or most of all Americans use TikTok. That is scale

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<v Speaker 4>that many other platforms don't have.

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<v Speaker 5>Absolutely.

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<v Speaker 7>I mean, it's why TikTok is now our second most

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<v Speaker 7>traffic channel at mickback Meta is number one. There's very

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<v Speaker 7>few places for you to reach all US American households,

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<v Speaker 7>and so to reach fifty percent of them with essentially

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<v Speaker 7>one ad by on TikTok is extremely powerful and per Musk,

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<v Speaker 7>I mean, we're talking about setting a precedent that really

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<v Speaker 7>interferes with the First Amendment, which is why at MCMAC

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<v Speaker 7>we believe that if things can play out, a divestiture

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<v Speaker 7>is most likely the best outcome for everyone. Bite Dance

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<v Speaker 7>might not see it that way, but in terms of

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<v Speaker 7>the US government, if I were them.

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<v Speaker 1>I would be pushing for a divestiture.

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<v Speaker 4>I don't think by Dance we would see it that way. No,

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<v Speaker 4>a second, guy, I actually misspoke. I said that Elon

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<v Speaker 4>Musk was the CEO of X. He's not Lindy acarino is.

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<v Speaker 4>But given the last seven days that I've had and

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<v Speaker 4>the number of companies that Elon Musk is CEO of,

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<v Speaker 4>I think the world will forgive me. Rachel tippograph of

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<v Speaker 4>Mick mac Thank you very much for your analysis. Now

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<v Speaker 4>coming up internal chaos at Tesla, where Elon Musk is

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<v Speaker 4>CEO and he's shifting his focus from a cheaper model

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<v Speaker 4>to the ROBOTAXI. We put a really important piece out

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<v Speaker 4>last night in the Bloomberg Big Take, and that's coming

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<v Speaker 4>up next.

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<v Speaker 5>Karen, so well read brilliant reporting.

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<v Speaker 3>Meanwhile, let's just dig into what was also happening on Friday.

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<v Speaker 3>Remember when in Video was down ten percent, it lost

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<v Speaker 3>woman to billion dollars in market capitalization. Today it's up,

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<v Speaker 3>but only one point three percent. We're actually fading some

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<v Speaker 3>of that rally in this big tech in a AI play.

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<v Speaker 8>This is a Bloomberg Technology.

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<v Speaker 4>Bloomberg big take, Tesla consumed by chaos amid CEO Elon

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<v Speaker 4>Musk shift of a focus from new cheaper models to

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<v Speaker 4>clearly a Robotaxi in Caroline. What we tried to do

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<v Speaker 4>is clarify what's going on. And my understanding is this

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<v Speaker 4>is Elon Musk. He's come back in and said, yes,

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<v Speaker 4>Robotaxi is the focus. A cheaper EV is not completely scrapped,

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<v Speaker 4>but it is confusing. You've read the Big Take. I

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<v Speaker 4>don't know. Did we give you some clarity and where

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<v Speaker 4>we stand you?

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<v Speaker 3>Did you really just highlighted how much perhaps we've seen

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<v Speaker 3>a re orientation of Elon Musk back on the Tesla business,

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<v Speaker 3>back in demon mode for all the pros and the

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<v Speaker 3>cons that gives. I mean, in particular, you articulate so

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<v Speaker 3>well some of the negatives that have been felt by people.

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<v Speaker 5>Let go at the company.

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<v Speaker 4>I think one really clear thing is that loads of

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<v Speaker 4>executives at Tesla said Elon, please do the twenty five

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<v Speaker 4>thousand dollars EV do it cheap. Elon said, no, we

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<v Speaker 4>are doing Robotaxi, and there's a difference of philosophy. But

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<v Speaker 4>the cheap part is misunderstood. It's not canceled or scrapped.

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<v Speaker 4>It just looks different to what we thought. So a

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<v Speaker 4>lots to discuss.

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<v Speaker 3>Yeah, the fact that basically it can be wrong. Doubt

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<v Speaker 3>this is a cheaper model for other purposes, a more broadly,

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<v Speaker 3>more wide reaching company that ultimate investors are trying to

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<v Speaker 3>get their hands around, and share prices reflect that. Craig Traudell,

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<v Speaker 3>who has been helping edit this beautiful creation that Ed

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<v Speaker 3>Ludlow and Anna Halla put together.

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<v Speaker 5>Over this weekend.

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<v Speaker 3>Craig, your key takeaway, and I think for many investors

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<v Speaker 3>is right now, what are the priorities?

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<v Speaker 5>And that's it.

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<v Speaker 3>The priority right now is Robotaxi, but for a greater good,

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<v Speaker 3>for a broader, cheaper offering.

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<v Speaker 9>Yeah, you know, I was talking with some of our

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<v Speaker 9>colleagues at bn F and I think, you know the

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<v Speaker 9>idea that maybe what Elon may make the case to

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<v Speaker 9>Wall Street tomorrow is we already have a twenty five

0:11:40.000 --> 0:11:43.280
<v Speaker 9>thousand dollar car. He will be spinning when he says that.

0:11:43.920 --> 0:11:46.720
<v Speaker 9>But when you sort of take into account gas savings

0:11:46.800 --> 0:11:49.760
<v Speaker 9>and tax credits and so on and so forth. You know,

0:11:49.800 --> 0:11:52.559
<v Speaker 9>the Model three, after the price cuts of the last

0:11:52.640 --> 0:11:55.480
<v Speaker 9>year plus, is getting pretty darn close to that and so,

0:11:56.120 --> 0:11:59.240
<v Speaker 9>you know, I think that what we'll see from Tesla

0:11:59.320 --> 0:12:03.040
<v Speaker 9>in the months to come is this attempt to kind of,

0:12:03.440 --> 0:12:06.520
<v Speaker 9>you know, further emphasize the value that they're offering with

0:12:06.559 --> 0:12:09.479
<v Speaker 9>the Model three and the Model Y per Ed's reporting,

0:12:09.600 --> 0:12:12.079
<v Speaker 9>you know, apply some of the work that's going into

0:12:12.120 --> 0:12:14.960
<v Speaker 9>the platform that they want to use to underpin the

0:12:15.040 --> 0:12:18.719
<v Speaker 9>robo taxi to bring the Model three and Model Y

0:12:18.920 --> 0:12:22.520
<v Speaker 9>costs down even further. I think the real question is

0:12:22.520 --> 0:12:24.360
<v Speaker 9>whether or not that's going to cut it for Wall Street,

0:12:24.440 --> 0:12:26.760
<v Speaker 9>because they want to see some new product.

0:12:28.000 --> 0:12:30.040
<v Speaker 4>You know, we tried to give some clarity on that.

0:12:30.080 --> 0:12:32.040
<v Speaker 4>We try to give some clarity on the layoffs. And

0:12:32.080 --> 0:12:33.760
<v Speaker 4>the way that one source put it to me is

0:12:34.320 --> 0:12:37.360
<v Speaker 4>deliveries were down twenty percent sequentially in the first quarter.

0:12:37.400 --> 0:12:39.560
<v Speaker 4>So must turn around to the other bosses and said,

0:12:39.640 --> 0:12:42.440
<v Speaker 4>if deliveries are down twenty percent, let's just cut headcount

0:12:42.480 --> 0:12:45.200
<v Speaker 4>twenty percent. Not for any reason to do with cost

0:12:45.240 --> 0:12:48.560
<v Speaker 4>saving necessarily, but this is like the Elon Musk playbook,

0:12:48.559 --> 0:12:51.240
<v Speaker 4>Craig right, and when you edited the Big take. I

0:12:51.280 --> 0:12:53.360
<v Speaker 4>hope that you got the sense that this is Elon

0:12:53.440 --> 0:12:54.760
<v Speaker 4>Musk pulling the strings on this.

0:12:56.160 --> 0:12:58.360
<v Speaker 9>Yeah, you know, and it takes me back a little

0:12:58.400 --> 0:13:01.960
<v Speaker 9>bit to the Walter Isaacson biography, where you know, I

0:13:01.960 --> 0:13:04.440
<v Speaker 9>feel like the word delete was in that book, you know,

0:13:04.600 --> 0:13:07.640
<v Speaker 9>at least fifty times in terms of you know, whenever

0:13:08.400 --> 0:13:11.160
<v Speaker 9>you know Tesla or SpaceX or these various companies that

0:13:11.200 --> 0:13:14.520
<v Speaker 9>he runs, you know, run into trouble. He just comes

0:13:14.520 --> 0:13:16.600
<v Speaker 9>in and wants to cut everything and get rid of

0:13:16.600 --> 0:13:20.320
<v Speaker 9>everything and question why, you know, companies are doing things,

0:13:20.400 --> 0:13:23.720
<v Speaker 9>building things, Why do we need that part or component

0:13:23.960 --> 0:13:26.439
<v Speaker 9>or why are we doing this process? I think the

0:13:26.559 --> 0:13:28.680
<v Speaker 9>question is, you know, whether he's sort of cut to

0:13:28.679 --> 0:13:30.679
<v Speaker 9>the bone here, and you know, we're even sort of

0:13:30.720 --> 0:13:34.040
<v Speaker 9>seeing some questioning of whether or not he's effectively doing

0:13:34.080 --> 0:13:37.439
<v Speaker 9>that in these price cuts over the weekend, whether there

0:13:37.440 --> 0:13:40.000
<v Speaker 9>are going to be any earnings left in China, you know,

0:13:40.040 --> 0:13:42.280
<v Speaker 9>in terms of how far they've gone with the Model

0:13:42.280 --> 0:13:44.440
<v Speaker 9>three and the Model hy in that market.

0:13:45.360 --> 0:13:47.560
<v Speaker 3>I mean, the key point here, Craig is we all

0:13:47.640 --> 0:13:50.199
<v Speaker 3>think about this bigger picture and then look ahead to

0:13:50.240 --> 0:13:52.760
<v Speaker 3>the micro Let's a little over twenty four hours and

0:13:52.880 --> 0:13:53.840
<v Speaker 3>we get the earnings.

0:13:54.200 --> 0:13:57.120
<v Speaker 4>Yeah, I mean just shout out to Craig and to Donna.

0:13:57.160 --> 0:14:00.000
<v Speaker 4>In twenty four hours we will have earnings FINGO again

0:14:00.080 --> 0:14:02.480
<v Speaker 4>and we'll find out on what I would say is

0:14:02.480 --> 0:14:05.880
<v Speaker 4>probably one of the most important earning statements and calls

0:14:05.880 --> 0:14:09.640
<v Speaker 4>in Tesla's history, because investors just want some clarity on

0:14:09.720 --> 0:14:12.959
<v Speaker 4>what the strategy is. Craig, in one word or one sentence,

0:14:12.960 --> 0:14:13.800
<v Speaker 4>what are you watching for.

0:14:15.760 --> 0:14:20.240
<v Speaker 9>Just as much hype around AI and for self driving

0:14:20.840 --> 0:14:24.320
<v Speaker 9>as we can possibly imagine. I think that's the expectation

0:14:24.440 --> 0:14:26.320
<v Speaker 9>because there aren't many other cards to play.

0:14:26.840 --> 0:14:30.800
<v Speaker 3>Crochedel brilliant editing throughout this weekend on so much important reporting.

0:14:30.840 --> 0:14:31.200
<v Speaker 5>Thank you.

0:14:31.280 --> 0:14:33.600
<v Speaker 3>Let's get into those earnings and more broadly across the

0:14:33.680 --> 0:14:34.240
<v Speaker 3>tech sector.

0:14:34.440 --> 0:14:36.280
<v Speaker 5>Megan Horneman, CIO.

0:14:36.040 --> 0:14:39.600
<v Speaker 3>Verdant's Capital Advisors, I understand Vernin's Capital Advisors does have

0:14:39.680 --> 0:14:43.200
<v Speaker 3>some exposure to Tesla, and more broadly, have you feeling

0:14:43.360 --> 0:14:46.080
<v Speaker 3>have you felt that the market is priced in some

0:14:46.120 --> 0:14:48.000
<v Speaker 3>of the worst here for a business like Tesla, for

0:14:48.080 --> 0:14:50.400
<v Speaker 3>some of the less than magnificent magnificent seven.

0:14:52.440 --> 0:14:55.920
<v Speaker 10>I think, from broadly speaking, I still think there's some downside,

0:14:55.960 --> 0:14:58.960
<v Speaker 10>specifically because these some of these stacks Tesla included have

0:14:59.040 --> 0:15:02.560
<v Speaker 10>been really driven by momentum. It's been a pretty big

0:15:02.800 --> 0:15:05.680
<v Speaker 10>decline that we've seen in Tesla, But the clarity's not there.

0:15:06.240 --> 0:15:11.320
<v Speaker 10>From a broadly speaking from the Magnificent seven this earning season,

0:15:11.320 --> 0:15:12.800
<v Speaker 10>they've got a lot, they have a lot to prove.

0:15:13.560 --> 0:15:15.680
<v Speaker 1>Valuations are very elevated.

0:15:15.400 --> 0:15:18.000
<v Speaker 10>And if we don't see this come through from an

0:15:18.040 --> 0:15:21.240
<v Speaker 10>earnings perspective, I think there's more downside and a little

0:15:21.240 --> 0:15:22.720
<v Speaker 10>bit more of evaluation correction.

0:15:23.400 --> 0:15:26.440
<v Speaker 3>What I love about your notes your analysis, Megan, is

0:15:26.480 --> 0:15:29.240
<v Speaker 3>just how deep you go into sort of ultimately how

0:15:29.280 --> 0:15:32.280
<v Speaker 3>powerful and encompassing those Magnificent seven players have been. I'm

0:15:32.320 --> 0:15:34.440
<v Speaker 3>reading your note that in fact five with the Magnificent

0:15:34.480 --> 0:15:37.000
<v Speaker 3>seven companies, so you're talking in video, Amazon, Meta, Alphabet,

0:15:37.040 --> 0:15:40.600
<v Speaker 3>and Microsoft have expected to be the top five contributors to.

0:15:40.800 --> 0:15:42.240
<v Speaker 5>Urin your earnings growth for the S and P.

0:15:42.480 --> 0:15:45.320
<v Speaker 3>Basically, if they don't give us what we need, earnings

0:15:45.520 --> 0:15:47.120
<v Speaker 3>more broadly going to fall across the rest of the

0:15:47.160 --> 0:15:47.400
<v Speaker 3>S and P.

0:15:48.560 --> 0:15:50.680
<v Speaker 10>They'll definitely be I think a lot weaker than the

0:15:50.720 --> 0:15:54.200
<v Speaker 10>anticipation right now, and the anticipation is only for about

0:15:54.240 --> 0:15:56.480
<v Speaker 10>er point five percent year of ver year earnings growth,

0:15:56.560 --> 0:15:59.280
<v Speaker 10>So there's a lot writing on these Magnificent seven. I

0:15:59.320 --> 0:16:02.240
<v Speaker 10>think that's also why you're seeing the markets. They're kind

0:16:02.240 --> 0:16:04.960
<v Speaker 10>of moving. They're up a little bit today, but moving sideways.

0:16:05.000 --> 0:16:07.880
<v Speaker 10>They're going to wait for They're waiting for earnings. They're

0:16:07.880 --> 0:16:11.280
<v Speaker 10>also waiting from an economics standpoint, the PCE that we

0:16:11.320 --> 0:16:14.080
<v Speaker 10>get later this week, personal income and spending.

0:16:14.280 --> 0:16:16.960
<v Speaker 1>And then that first read on GDP for the first quarter.

0:16:18.200 --> 0:16:20.840
<v Speaker 4>Megan good Morning is ed in San Francisco. There's a

0:16:20.960 --> 0:16:23.160
<v Speaker 4>UBS note this morning doing the rounds. A lot of

0:16:23.200 --> 0:16:25.800
<v Speaker 4>people are talking about it, and they've cut their view

0:16:25.800 --> 0:16:28.680
<v Speaker 4>on the Big six to neutral from overweight. But they're

0:16:28.680 --> 0:16:31.800
<v Speaker 4>basically saying tough comps this quarter. And I think that

0:16:31.800 --> 0:16:34.200
<v Speaker 4>they're kind of suggesting that if you go away from

0:16:34.280 --> 0:16:36.760
<v Speaker 4>the Big six or mag seven, what if you want

0:16:36.760 --> 0:16:39.280
<v Speaker 4>to call it, there is some other technology out there.

0:16:39.440 --> 0:16:41.440
<v Speaker 4>There are other corners of the market to play in.

0:16:42.000 --> 0:16:43.440
<v Speaker 4>Do you share that thesis?

0:16:44.800 --> 0:16:47.640
<v Speaker 10>Yes, absolutely, And you know these stocks have had a

0:16:47.640 --> 0:16:50.200
<v Speaker 10>great run, but they have to now. As we mentioned,

0:16:50.240 --> 0:16:53.000
<v Speaker 10>the valuations are very high and people are looking for

0:16:53.040 --> 0:16:55.880
<v Speaker 10>outside of that to make money, not just in the

0:16:55.960 --> 0:16:57.640
<v Speaker 10>large cap space, but I think if you look in

0:16:57.680 --> 0:16:59.600
<v Speaker 10>the small and MiGCAP space. I think there's a little

0:16:59.600 --> 0:17:02.480
<v Speaker 10>bit more of value there. They haven't participated in this

0:17:02.600 --> 0:17:05.040
<v Speaker 10>rally in the large cap space, and if you look

0:17:05.080 --> 0:17:08.680
<v Speaker 10>from a long term perspective, from a valuation standpoint, they're

0:17:08.760 --> 0:17:12.359
<v Speaker 10>historically cheap versus the S and P five hundred, they're

0:17:12.400 --> 0:17:14.879
<v Speaker 10>in the same both though from an earnings perspective that

0:17:14.880 --> 0:17:17.520
<v Speaker 10>there's a lot of uncertainty around earnings in the next

0:17:17.520 --> 0:17:20.600
<v Speaker 10>couple quarters. But if you can withstand that volatility and

0:17:20.600 --> 0:17:23.360
<v Speaker 10>look longer term, these may be some opportunities in the market.

0:17:24.440 --> 0:17:26.760
<v Speaker 4>Megan, there is quite a lot riding on earnings, I

0:17:26.760 --> 0:17:29.440
<v Speaker 4>feel like this season, and lots of people say, well,

0:17:29.600 --> 0:17:32.400
<v Speaker 4>if earnings don't deliver for us, particularly on the Big

0:17:32.480 --> 0:17:35.119
<v Speaker 4>six mag seven, then tech will fall away and the

0:17:35.160 --> 0:17:38.560
<v Speaker 4>market will go with it. We like drama on the show, okay,

0:17:38.880 --> 0:17:42.840
<v Speaker 4>but realistically, how worried are you about the stakes in

0:17:42.880 --> 0:17:43.639
<v Speaker 4>the coming weeks.

0:17:46.080 --> 0:17:46.879
<v Speaker 1>I'm quite worried.

0:17:47.400 --> 0:17:49.359
<v Speaker 10>We had a little bit more than a five percent

0:17:49.400 --> 0:17:51.879
<v Speaker 10>correction in the market over the past couple of weeks.

0:17:51.920 --> 0:17:54.320
<v Speaker 1>That was not enough, in my opinion.

0:17:53.960 --> 0:17:57.760
<v Speaker 10>To really warrant these to look at these elevated evaluations

0:17:57.800 --> 0:18:00.600
<v Speaker 10>and then also take all of these mountings that we

0:18:00.680 --> 0:18:05.400
<v Speaker 10>have from an economics standpoint, from a geopolitical standpoint, from

0:18:05.400 --> 0:18:08.080
<v Speaker 10>a federal reserve standpoint, I think there still is a

0:18:08.080 --> 0:18:10.480
<v Speaker 10>little bit too much optimism about what the Federal Reserve

0:18:10.520 --> 0:18:10.880
<v Speaker 10>can do.

0:18:11.200 --> 0:18:13.719
<v Speaker 1>And our bigger risk here is what is inflation going

0:18:13.760 --> 0:18:13.960
<v Speaker 1>to do?

0:18:14.119 --> 0:18:17.240
<v Speaker 10>Are we really in the midst of a reignition? I

0:18:17.240 --> 0:18:20.280
<v Speaker 10>guess you could say of inflation. If that's the case,

0:18:20.800 --> 0:18:24.480
<v Speaker 10>these stocks and these earnings expectations and these valuations are

0:18:24.560 --> 0:18:25.480
<v Speaker 10>just not sustainable.

0:18:26.000 --> 0:18:29.520
<v Speaker 4>Megan Hornman, Vernet's Capital Advisor, is really appreciate your time

0:18:29.560 --> 0:18:33.800
<v Speaker 4>on the show.

0:18:37.440 --> 0:18:38.480
<v Speaker 5>I'm now been talking tech.

0:18:38.520 --> 0:18:41.520
<v Speaker 3>First up, calls are growing for a crackdown on X

0:18:41.800 --> 0:18:44.679
<v Speaker 3>in Australia after two knife attacks have occurred in Sydney

0:18:44.720 --> 0:18:47.360
<v Speaker 3>over the past ten days alone. Now, graphic content from

0:18:47.359 --> 0:18:50.640
<v Speaker 3>the stabbings as well as misinformation spread quickly as both

0:18:50.680 --> 0:18:54.159
<v Speaker 3>attacks unfolded, and that's now prompted five government ministers to

0:18:54.160 --> 0:18:55.080
<v Speaker 3>consider bringing in.

0:18:55.040 --> 0:18:57.080
<v Speaker 5>Tougher laws for social media companies.

0:18:57.720 --> 0:19:01.600
<v Speaker 3>Plus ten Cent shares well, they've staged big rally since December,

0:19:01.960 --> 0:19:04.480
<v Speaker 3>and now we know that China's biggest internet firm has

0:19:04.480 --> 0:19:06.880
<v Speaker 3>just nailed down an earlier then anticipated debut of its

0:19:06.880 --> 0:19:09.960
<v Speaker 3>mobile game Dungeon and Fighter Mobile. It's a marquee title

0:19:10.000 --> 0:19:12.760
<v Speaker 3>expected to refresh and aging pipeline and drawing new users,

0:19:12.760 --> 0:19:15.480
<v Speaker 3>so shares, tick tire that much more. And Japan's UNTI

0:19:15.480 --> 0:19:18.320
<v Speaker 3>Trust regulator has its eyes on Google this after it

0:19:18.359 --> 0:19:21.360
<v Speaker 3>says the tech giant used tactics that limited Yahoo Japan's

0:19:21.400 --> 0:19:24.960
<v Speaker 3>ability to compete in targeted search ads. Now, the watchdog

0:19:24.960 --> 0:19:27.520
<v Speaker 3>says that Google's parent Alphabet changed its conduct as soon

0:19:27.520 --> 0:19:30.760
<v Speaker 3>as they flagged the practice. That will keep on monitoring

0:19:30.760 --> 0:19:40.000
<v Speaker 3>this US firm.

0:19:40.200 --> 0:19:42.840
<v Speaker 11>Apple's next big thing is a push into on device

0:19:43.200 --> 0:19:47.120
<v Speaker 11>large language models. Apple's been working on several major projects

0:19:47.119 --> 0:19:52.560
<v Speaker 11>for years, including home robots, foldable iPads, and augmented reality glasses,

0:19:53.119 --> 0:19:56.040
<v Speaker 11>but the biggest and most important project coming this year

0:19:56.400 --> 0:19:59.639
<v Speaker 11>is a push into generative AI. Apple's approach will be

0:19:59.680 --> 0:20:03.159
<v Speaker 11>a little bit different than the competition like Google, OpenAI

0:20:03.320 --> 0:20:07.240
<v Speaker 11>and Meta. Instead of powering Jenai on cloud based servers,

0:20:07.840 --> 0:20:10.960
<v Speaker 11>the functions will work on the iPhone itself, using the

0:20:11.119 --> 0:20:15.840
<v Speaker 11>on device software processors and other chips. That makes it quicker,

0:20:16.160 --> 0:20:19.520
<v Speaker 11>more secure, and Apple believes more functional and more accurate.

0:20:20.040 --> 0:20:23.600
<v Speaker 11>With iOS eighteen coming in September after being introduced in

0:20:23.680 --> 0:20:27.520
<v Speaker 11>June at the Worldwide Developers Conference, Apple plans to include

0:20:27.560 --> 0:20:30.480
<v Speaker 11>a slew of new AI features that will help users

0:20:30.480 --> 0:20:31.479
<v Speaker 11>in their daily lives.

0:20:32.320 --> 0:20:38.320
<v Speaker 4>I'm Mark German. This is power on. Okay, let's get

0:20:38.359 --> 0:20:40.000
<v Speaker 4>a check in on the market and one asset I

0:20:40.000 --> 0:20:42.560
<v Speaker 4>guess we haven't to us much about is bitcoin. We

0:20:42.600 --> 0:20:45.439
<v Speaker 4>sent the headline five pm Pacific on eight point nineteen.

0:20:45.560 --> 0:20:49.000
<v Speaker 4>The halving has occurred and as such it cuts in

0:20:49.040 --> 0:20:51.640
<v Speaker 4>half the rewards. The paid to mine is twenty four

0:20:51.680 --> 0:20:54.080
<v Speaker 4>to seven. We trade in bitcoin, so we're at sixty

0:20:54.080 --> 0:20:57.280
<v Speaker 4>five thousand, sixty six thousand US dots partocon right now.

0:20:57.480 --> 0:21:01.720
<v Speaker 4>Where we're seeing a more pronounced, delayed suppose reaction to

0:21:01.760 --> 0:21:03.840
<v Speaker 4>the harving is in those assets that do not trade

0:21:04.000 --> 0:21:07.160
<v Speaker 4>twenty four to seven. In other words, the US traded

0:21:07.440 --> 0:21:10.360
<v Speaker 4>equities or stocks to the crypto links coinbases off its

0:21:10.359 --> 0:21:13.600
<v Speaker 4>session highs but have been up seven percent. Riot another

0:21:13.600 --> 0:21:16.919
<v Speaker 4>block chambered platform up nine percent. Some names moving to

0:21:16.920 --> 0:21:20.760
<v Speaker 4>the downside Marathon Digital Holdings down three point nine percent.

0:21:21.600 --> 0:21:23.520
<v Speaker 4>There was a headline on the term or Caroline that

0:21:23.800 --> 0:21:26.040
<v Speaker 4>the harving was a bit of a limp, but as

0:21:26.040 --> 0:21:28.080
<v Speaker 4>you know, I think we should be excited about it.

0:21:28.119 --> 0:21:29.639
<v Speaker 4>I think there's still a lot to discuss there.

0:21:29.680 --> 0:21:32.440
<v Speaker 5>We're still parties virtual or in real life.

0:21:32.480 --> 0:21:34.080
<v Speaker 3>I want to know how many of those invites you

0:21:34.119 --> 0:21:36.840
<v Speaker 3>went to ed But one person hosting one of those

0:21:37.160 --> 0:21:40.959
<v Speaker 3>halving parties was Chris Klein, Bitcoin Ira COO and co founder.

0:21:41.200 --> 0:21:44.119
<v Speaker 3>For this and so much more so, you watched it

0:21:44.160 --> 0:21:46.919
<v Speaker 3>happen when it occurred on Friday night. But now the

0:21:46.960 --> 0:21:50.040
<v Speaker 3>reality and what's interesting is, you know, maybe there are

0:21:50.080 --> 0:21:54.400
<v Speaker 3>some players miners out there now that don't get rewarded

0:21:54.440 --> 0:21:54.800
<v Speaker 3>as much.

0:21:54.880 --> 0:21:56.680
<v Speaker 5>Maybe we've see an impact on the shared price.

0:21:56.480 --> 0:22:00.600
<v Speaker 3>But ultimately this is meant to drive the increase of bitcoins.

0:22:00.960 --> 0:22:01.280
<v Speaker 5>Will it?

0:22:01.720 --> 0:22:01.960
<v Speaker 4>Yes?

0:22:02.240 --> 0:22:04.800
<v Speaker 12>Absolutely, thanks for having me, and yeah, we had some

0:22:04.840 --> 0:22:08.280
<v Speaker 12>good parties last week for the having You're right, it

0:22:08.280 --> 0:22:11.439
<v Speaker 12>does punish the producers of the asset class.

0:22:11.960 --> 0:22:12.760
<v Speaker 4>You will see.

0:22:12.800 --> 0:22:15.600
<v Speaker 12>Salce headlines this morning that it came off with a whimper.

0:22:16.000 --> 0:22:19.919
<v Speaker 12>That's pretty typical for having events. It's usually three to

0:22:20.000 --> 0:22:22.720
<v Speaker 12>six months where you start seeing some impacts of that

0:22:22.840 --> 0:22:24.399
<v Speaker 12>supply constraint that takes place.

0:22:26.400 --> 0:22:29.360
<v Speaker 4>Supply constraint has not yet taken place. I actually want

0:22:29.400 --> 0:22:32.320
<v Speaker 4>to focus on that for a minute, because I think

0:22:32.359 --> 0:22:35.560
<v Speaker 4>you guys had a pretty good quarter, and actually since

0:22:35.560 --> 0:22:38.359
<v Speaker 4>the start of the year, whether you are focused on

0:22:38.359 --> 0:22:41.919
<v Speaker 4>the underlying technology or you're participant in the marketplace for

0:22:42.000 --> 0:22:46.560
<v Speaker 4>crypto related assets, things have been quite cheery. Put that

0:22:46.600 --> 0:22:49.080
<v Speaker 4>into context for us, as everyone was bracing for the harving,

0:22:49.320 --> 0:22:51.439
<v Speaker 4>they were also doing business and carrying on with it.

0:22:51.560 --> 0:22:54.240
<v Speaker 12>Yes, absolutely, it's kind of interesting. You expect this like

0:22:54.320 --> 0:22:57.280
<v Speaker 12>big time square event where everything changes, like the year

0:22:57.280 --> 0:22:59.560
<v Speaker 12>has turned over, and in reality it's just we've hit

0:22:59.600 --> 0:23:02.480
<v Speaker 12>another block, the next two hundred and ten thousandth block

0:23:03.000 --> 0:23:05.360
<v Speaker 12>in which it's in our code, it's in our DNA

0:23:05.600 --> 0:23:09.199
<v Speaker 12>to cut or cut the rewards and then limit that supply.

0:23:09.520 --> 0:23:11.400
<v Speaker 12>This is not happening in a vacuum either, so you've

0:23:11.400 --> 0:23:13.560
<v Speaker 12>got ets that are taking a line line's share of

0:23:13.600 --> 0:23:15.240
<v Speaker 12>those of these things. Right now, we have a few

0:23:15.280 --> 0:23:19.480
<v Speaker 12>billion dollars of assets clients or client assets under custody

0:23:19.560 --> 0:23:22.000
<v Speaker 12>inside of our platform, and there'll be more and more

0:23:22.000 --> 0:23:23.760
<v Speaker 12>when less and less is available, which is really in

0:23:23.800 --> 0:23:27.280
<v Speaker 12>contrast to the Almighty dollar and the way the US

0:23:27.320 --> 0:23:31.480
<v Speaker 12>dollar works today. We actually reward producers of currency every

0:23:31.520 --> 0:23:33.600
<v Speaker 12>four years with things called reelections, right.

0:23:34.240 --> 0:23:36.720
<v Speaker 4>That I get the parallel of we have a big

0:23:36.720 --> 0:23:39.680
<v Speaker 4>part of our audience that are focused on largely the blockchain, right,

0:23:40.160 --> 0:23:43.320
<v Speaker 4>they probably don't care about any given direction of the

0:23:43.320 --> 0:23:46.000
<v Speaker 4>movement in bitcoin or or its current price. But there

0:23:46.080 --> 0:23:48.640
<v Speaker 4>is now a big market of people that does. And

0:23:49.040 --> 0:23:52.280
<v Speaker 4>many of them argue because of the finite supply, and

0:23:52.520 --> 0:23:54.960
<v Speaker 4>I'm repeating myself to audience. We always talk about this,

0:23:55.280 --> 0:23:58.280
<v Speaker 4>but bitcoin can only ever go up in price because

0:23:58.280 --> 0:24:01.359
<v Speaker 4>of that limited because that's actually yeah. The other story

0:24:01.400 --> 0:24:04.119
<v Speaker 4>of the first quarter was liquidity. This is quite a

0:24:04.119 --> 0:24:06.720
<v Speaker 4>liquid market, yes, where a lot of sounds. How do

0:24:06.760 --> 0:24:07.520
<v Speaker 4>we square those two?

0:24:07.800 --> 0:24:10.120
<v Speaker 12>How do you square that with liquidity is a difficult question.

0:24:10.200 --> 0:24:12.600
<v Speaker 12>Probably bigger nerds that can handle that for you. But

0:24:12.640 --> 0:24:15.480
<v Speaker 12>don't forget the divisibility of bitcoin. It you don't trade

0:24:15.480 --> 0:24:17.880
<v Speaker 12>in one bitcoin. It goes down to the eleventh decimal point,

0:24:17.880 --> 0:24:20.120
<v Speaker 12>which is known as the satoshi. And as we get

0:24:20.200 --> 0:24:22.440
<v Speaker 12>further and further down that scarcity, you're going to start

0:24:22.480 --> 0:24:24.960
<v Speaker 12>seeing the impact where people will be, Wow, you're a

0:24:24.960 --> 0:24:26.359
<v Speaker 12>one bitcoiner, and that.

0:24:26.240 --> 0:24:28.199
<v Speaker 4>Will be a huge deal. I think it.

0:24:28.240 --> 0:24:31.040
<v Speaker 12>Also, you can't have this conversation about bitcoin having without

0:24:31.040 --> 0:24:32.000
<v Speaker 12>talking about inflation.

0:24:32.080 --> 0:24:33.520
<v Speaker 4>They're very intertwined. Today.

0:24:33.720 --> 0:24:36.600
<v Speaker 12>I was reading a study this morning Northwest Musical came out.

0:24:36.640 --> 0:24:39.600
<v Speaker 12>Average Americans think they need one and a half million

0:24:39.680 --> 0:24:41.720
<v Speaker 12>dollars in order to retire comfortably, which is.

0:24:41.680 --> 0:24:42.679
<v Speaker 4>A pretty large number.

0:24:42.880 --> 0:24:46.200
<v Speaker 12>However, what's really staggering is that just three years ago

0:24:46.280 --> 0:24:48.600
<v Speaker 12>the same report was at nine hundred and fifty thousand.

0:24:48.920 --> 0:24:51.720
<v Speaker 12>So in just three years, Americans feel like they need

0:24:52.080 --> 0:24:55.520
<v Speaker 12>fifty three percent more money to retire comfortably. And that's

0:24:55.520 --> 0:24:57.879
<v Speaker 12>part of why folks are looking at diversification of currency,

0:24:57.880 --> 0:24:59.600
<v Speaker 12>and bitcoin is a opportunity for that.

0:25:00.000 --> 0:25:03.400
<v Speaker 3>But you're looking at what we're saving for our pensions

0:25:03.440 --> 0:25:05.520
<v Speaker 3>and for our retirement a little bit more. Because you've

0:25:05.520 --> 0:25:09.400
<v Speaker 3>got in your name bitcoin, IRA, you don't just offer bitcoin,

0:25:09.520 --> 0:25:12.399
<v Speaker 3>you offer us some other cryptocurrencies. But more broadly, at

0:25:12.400 --> 0:25:15.480
<v Speaker 3>the moment, this coming of an ETF was meant to

0:25:15.600 --> 0:25:18.840
<v Speaker 3>tempt in the so called boomers to get them back

0:25:18.880 --> 0:25:23.159
<v Speaker 3>into allocating to an attempted to illocate into bitcoin. But

0:25:23.200 --> 0:25:24.720
<v Speaker 3>what about the rest of the old coins? And how

0:25:24.800 --> 0:25:26.920
<v Speaker 3>you seeing interest pick up as we start to talk

0:25:26.960 --> 0:25:28.480
<v Speaker 3>more of an ATHTF two.

0:25:29.480 --> 0:25:32.199
<v Speaker 12>Yeah, the ETHTF is starting to get some build up.

0:25:32.640 --> 0:25:34.760
<v Speaker 12>We should maybe expect that later this year. I don't

0:25:34.760 --> 0:25:37.480
<v Speaker 12>get excited because I waited seven years for the Bitcoin

0:25:37.560 --> 0:25:41.320
<v Speaker 12>ETF to get approved, But there are a slew of coins,

0:25:41.320 --> 0:25:44.639
<v Speaker 12>thousands of them on our platform. There's about sixty five

0:25:44.720 --> 0:25:47.720
<v Speaker 12>different coins that are available or currencies available today, and

0:25:47.760 --> 0:25:50.680
<v Speaker 12>they're all served different utilities. Ethereum is really the backbone

0:25:50.680 --> 0:25:52.320
<v Speaker 12>of the future of the web or Internet as we

0:25:52.320 --> 0:25:56.600
<v Speaker 12>can think of it, which is designed for smart contracts. Actually,

0:25:56.600 --> 0:25:58.199
<v Speaker 12>I wish my ten year old daughter was here. She

0:25:58.240 --> 0:25:59.600
<v Speaker 12>was on a podcast I think last week, and she

0:25:59.600 --> 0:26:02.560
<v Speaker 12>has one associations for these Bigcoin is money a theory

0:26:02.680 --> 0:26:06.119
<v Speaker 12>as contracts ripples banks, and like coin is her favorite shopping.

0:26:06.359 --> 0:26:08.880
<v Speaker 4>I actually think that the huge body of our audience

0:26:09.160 --> 0:26:13.000
<v Speaker 4>get that they appreciate just simplifying things a little bit.

0:26:13.160 --> 0:26:15.920
<v Speaker 4>Chris Klein, Bigcoin, I ra Aco and co found. It's

0:26:15.920 --> 0:26:18.000
<v Speaker 4>great to have you on the program here in San Francisco.

0:26:18.040 --> 0:26:28.679
<v Speaker 4>Thank you. Let's talk about the entertainment industry. I chatted

0:26:28.720 --> 0:26:31.760
<v Speaker 4>with Kevin May, a former CEO of TikTok and former

0:26:31.800 --> 0:26:35.680
<v Speaker 4>Disney chairman, and we talked about you Guessed It, TikTok's troubles,

0:26:35.720 --> 0:26:38.680
<v Speaker 4>but also Disney's leadership, two big stories in that world

0:26:38.720 --> 0:26:41.040
<v Speaker 4>of late. He's also the co CEO of Candle Media,

0:26:41.400 --> 0:26:44.760
<v Speaker 4>which owns Coco Melon creator Moonbug Entertainment, So I had

0:26:44.800 --> 0:26:47.760
<v Speaker 4>to ask him if we should expect more coming from

0:26:47.760 --> 0:26:50.040
<v Speaker 4>the company. Smash hit children's series listen to this.

0:26:51.800 --> 0:26:54.000
<v Speaker 2>We are planning and movies hasn't been I don't think

0:26:54.000 --> 0:26:56.840
<v Speaker 2>of officially announcement actually, but there was a movie coming up,

0:26:56.880 --> 0:27:00.320
<v Speaker 2>hopefully that will be either theatrically released or beyond on

0:27:00.359 --> 0:27:03.200
<v Speaker 2>a streaming service. I'm thinking it could be theatrically released

0:27:03.200 --> 0:27:05.320
<v Speaker 2>and that would be great. That's probably in two years

0:27:05.400 --> 0:27:08.600
<v Speaker 2>we'll have a Cocomelon movie. And you're right about licensing

0:27:08.600 --> 0:27:11.680
<v Speaker 2>and merchandising when you have the reach and depth of

0:27:11.760 --> 0:27:14.520
<v Speaker 2>engagement that we have with our properties with kids and

0:27:14.560 --> 0:27:16.760
<v Speaker 2>their parents. By the way, there's a huge amount of

0:27:16.800 --> 0:27:20.000
<v Speaker 2>co viewing of Cocomelon or other properties. Something like forty

0:27:20.040 --> 0:27:22.280
<v Speaker 2>percent of all views are also seen by a parent,

0:27:22.480 --> 0:27:24.639
<v Speaker 2>and we've done the work to know that for sure.

0:27:25.240 --> 0:27:30.600
<v Speaker 2>That does lend itself to developing a whole set of

0:27:30.760 --> 0:27:34.720
<v Speaker 2>licensed properties that are based on that character. Toys, t shirts,

0:27:34.720 --> 0:27:38.040
<v Speaker 2>soft lines, bedroom who trends, all the stuff that you'd expect.

0:27:38.920 --> 0:27:43.040
<v Speaker 4>We're in all of it, Kevin, You've mentioned it several times.

0:27:43.080 --> 0:27:46.119
<v Speaker 4>Over the course of the conversation. I'm sure it's come

0:27:46.200 --> 0:27:47.960
<v Speaker 4>up at Jeffreys and it's a big part of your

0:27:48.080 --> 0:27:53.160
<v Speaker 4>history and your present. It's Disney. Who do you think

0:27:53.320 --> 0:27:55.880
<v Speaker 4>should be the next CEO of Disney? And I'll jump

0:27:55.920 --> 0:27:57.720
<v Speaker 4>in and ask if you'd throw your own hat into

0:27:57.760 --> 0:27:58.160
<v Speaker 4>that ring.

0:27:59.080 --> 0:28:01.639
<v Speaker 2>Well, I have pretty busy I have a tech funder

0:28:01.680 --> 0:28:04.040
<v Speaker 2>that i've I've that i'm working that, I'm working with them,

0:28:04.040 --> 0:28:05.960
<v Speaker 2>a co founder of I have Candle Media, I'm doing

0:28:05.960 --> 0:28:10.640
<v Speaker 2>some other stuff. And Disney has a very very solid

0:28:10.720 --> 0:28:14.520
<v Speaker 2>set of leaders below Bob, so there they have a

0:28:14.560 --> 0:28:17.840
<v Speaker 2>great bench. They have people that have been there a

0:28:17.880 --> 0:28:20.159
<v Speaker 2>long time that really understand the Disney culture, that just

0:28:20.200 --> 0:28:24.000
<v Speaker 2>be value and prominence and dynamism of brands. And I

0:28:24.040 --> 0:28:26.600
<v Speaker 2>think most likely they'll go internal and fine, and they

0:28:26.640 --> 0:28:29.120
<v Speaker 2>have candidates that I think are are wonderful. So that's

0:28:29.119 --> 0:28:30.080
<v Speaker 2>where I think it's going to go.

0:28:30.119 --> 0:28:31.000
<v Speaker 4>And my hat.

0:28:31.040 --> 0:28:32.679
<v Speaker 2>I have not tossed my hat in the ring actually,

0:28:32.760 --> 0:28:35.560
<v Speaker 2>so you know I'm doing my thing at this point.

0:28:36.080 --> 0:28:39.720
<v Speaker 4>There are many streaming platforms to choose from. You kind

0:28:39.760 --> 0:28:43.480
<v Speaker 4>of summed it there. One of the names you didn't mention,

0:28:43.560 --> 0:28:46.440
<v Speaker 4>for example, was Paramount Plus and then and Peacock is

0:28:46.440 --> 0:28:48.680
<v Speaker 4>one that I think about a lot. Is there a

0:28:48.720 --> 0:28:51.280
<v Speaker 4>world in which all of these survive independently or do

0:28:51.400 --> 0:28:57.560
<v Speaker 4>you see some consolidation? And I know you must get

0:28:57.560 --> 0:28:59.720
<v Speaker 4>asked that all the time by the financial press, or

0:28:59.760 --> 0:29:02.800
<v Speaker 4>find mental networks like ours, But again I point to

0:29:02.840 --> 0:29:04.920
<v Speaker 4>the idea, you're sat on the other side of the table,

0:29:05.000 --> 0:29:08.680
<v Speaker 4>the content creator, and you've got some power and interest

0:29:08.720 --> 0:29:09.920
<v Speaker 4>in where it's distributed.

0:29:11.080 --> 0:29:13.040
<v Speaker 2>Like I don't, I can't. I don't know what the

0:29:13.040 --> 0:29:16.360
<v Speaker 2>future of Paramount Plus and Peacock are. Obviously I don't

0:29:16.360 --> 0:29:18.120
<v Speaker 2>have a crystal ball. I do think that there's a

0:29:18.160 --> 0:29:22.600
<v Speaker 2>scale issue with them. I do believe not every single

0:29:23.000 --> 0:29:27.040
<v Speaker 2>studio can have an associated streaming service that has the

0:29:27.040 --> 0:29:29.240
<v Speaker 2>same prospects as a Disney or as a Max or

0:29:29.240 --> 0:29:32.280
<v Speaker 2>as a Netflix or Amazon for that matter, And I

0:29:32.360 --> 0:29:34.880
<v Speaker 2>left those out, but that's obviously even a huge player

0:29:35.520 --> 0:29:39.640
<v Speaker 2>as as Apple TV plus. I do think consolidation is inevitable.

0:29:40.200 --> 0:29:42.520
<v Speaker 2>You know that is just natural economics one on one

0:29:42.560 --> 0:29:44.920
<v Speaker 2>and an industry start off and everything's about growth and

0:29:45.800 --> 0:29:49.000
<v Speaker 2>cost of capital was very inexpensive back when Netflix started

0:29:49.040 --> 0:29:53.280
<v Speaker 2>the ball rolling, I think that there was very free

0:29:53.280 --> 0:29:55.320
<v Speaker 2>access to capital and a lot of patients by on

0:29:55.360 --> 0:29:58.360
<v Speaker 2>behalf of investors. And I think as the industry is mature,

0:29:58.520 --> 0:30:00.840
<v Speaker 2>and as you're starting to kind of trade more household

0:30:00.880 --> 0:30:05.240
<v Speaker 2>and as natural growth starts to level off, always consolidation

0:30:05.360 --> 0:30:07.280
<v Speaker 2>happens and people then you have to start focusing on

0:30:07.600 --> 0:30:11.480
<v Speaker 2>costs and cost synergies, and the synergy is inherent and

0:30:11.600 --> 0:30:13.800
<v Speaker 2>possibly and mergers and the like. And I think that

0:30:13.960 --> 0:30:17.320
<v Speaker 2>is a natural course for any any growth sector to

0:30:17.920 --> 0:30:19.880
<v Speaker 2>evolve into. And I think that's what you're saying in streaming.

0:30:20.120 --> 0:30:21.040
<v Speaker 2>It will happen there too.

0:30:22.040 --> 0:30:24.000
<v Speaker 4>Kevin, I'm pushing my luck here. I'm being told we

0:30:24.120 --> 0:30:25.920
<v Speaker 4>got to go. But I would be remiss if I

0:30:25.960 --> 0:30:29.280
<v Speaker 4>didn't ask you about TikTok, just your assessment, having been

0:30:29.320 --> 0:30:32.320
<v Speaker 4>inside and now on the outside, of what you think

0:30:32.360 --> 0:30:34.280
<v Speaker 4>will happen. I know you don't have a crystal ball,

0:30:34.480 --> 0:30:38.320
<v Speaker 4>but you know the political will is to divestiture of

0:30:38.480 --> 0:30:42.720
<v Speaker 4>US ops, and TikTok seems to think that domiciling US

0:30:42.840 --> 0:30:48.959
<v Speaker 4>user data in US based servers is the answer. It's

0:30:49.000 --> 0:30:49.680
<v Speaker 4>hard for me to call.

0:30:49.720 --> 0:30:52.160
<v Speaker 2>I haven't been in TikTok for several years now, so

0:30:52.240 --> 0:30:54.520
<v Speaker 2>I'm just observing it the way everyone else is observing

0:30:54.520 --> 0:30:56.760
<v Speaker 2>it at this point, I will say this about TikTok.

0:30:56.840 --> 0:31:00.720
<v Speaker 2>It's a great team. It's an independent company, although it Chinese,

0:31:00.800 --> 0:31:02.960
<v Speaker 2>it is not, you know, as far as I know,

0:31:03.360 --> 0:31:05.800
<v Speaker 2>run by the government in China or anything else. I

0:31:05.880 --> 0:31:08.480
<v Speaker 2>don't know. I'm not familiar with all the different security

0:31:08.520 --> 0:31:11.000
<v Speaker 2>concerns that our government may or may not have. But

0:31:11.080 --> 0:31:13.200
<v Speaker 2>I do know that the folks that the folks that

0:31:13.240 --> 0:31:16.880
<v Speaker 2>I dealt with at TikTok or high quality people. The

0:31:16.920 --> 0:31:21.520
<v Speaker 2>product is obviously super impressive and engaging and has taken

0:31:21.560 --> 0:31:25.520
<v Speaker 2>over larger parts of the media and social media landscapes already.

0:31:26.720 --> 0:31:29.360
<v Speaker 2>I don't know what's going to happen. It does seem

0:31:29.400 --> 0:31:34.040
<v Speaker 2>to be bipartisan, more so than most issues these days,

0:31:34.120 --> 0:31:36.840
<v Speaker 2>so it's going to be interesting. I hope that I

0:31:36.880 --> 0:31:38.360
<v Speaker 2>hope the right thing happens there.

0:31:39.840 --> 0:31:43.000
<v Speaker 4>That was Candle Media co CEO Kevin Mayer Caroline.

0:31:43.200 --> 0:31:46.520
<v Speaker 3>What a wide ranging conversation, brilliant ed. Meanwhile, though, look,

0:31:46.520 --> 0:31:48.720
<v Speaker 3>we've got to switch gears because it's Earth Day.

0:31:48.760 --> 0:31:49.480
<v Speaker 5>Happy Earth Day.

0:31:49.800 --> 0:31:52.000
<v Speaker 3>Let's take this opportunity to look at the latest world

0:31:52.000 --> 0:31:54.680
<v Speaker 3>of climate tech. In bench Capital, I'm very pleased to

0:31:54.720 --> 0:31:58.040
<v Speaker 3>bring in sim Capital founder and managing partner Sita Chandremon

0:31:58.160 --> 0:32:02.760
<v Speaker 3>Class three on today's vcpol sustainability as a service?

0:32:03.400 --> 0:32:03.880
<v Speaker 5>What is that?

0:32:03.880 --> 0:32:06.160
<v Speaker 3>That as your ethos, that is your underpinning. What does

0:32:06.160 --> 0:32:07.960
<v Speaker 3>sustainability as a service look like?

0:32:08.680 --> 0:32:09.520
<v Speaker 5>It's a great question.

0:32:09.720 --> 0:32:13.360
<v Speaker 13>I think I'd probably first dissect the question around sustainability

0:32:13.360 --> 0:32:16.040
<v Speaker 13>because there's so much public rhetoric right now on what

0:32:16.080 --> 0:32:19.120
<v Speaker 13>it actually means. So we are trying to tackle how

0:32:19.120 --> 0:32:23.040
<v Speaker 13>do we produce more or the same with less? And

0:32:23.480 --> 0:32:26.240
<v Speaker 13>there's new technologies that are trying to combat this. But

0:32:26.280 --> 0:32:27.960
<v Speaker 13>the way that we think about it is like, how

0:32:27.960 --> 0:32:31.840
<v Speaker 13>can we invest in consumption infrastructure, in the picks and shovels,

0:32:31.880 --> 0:32:35.080
<v Speaker 13>in supply chain software, in new data platforms that really

0:32:35.120 --> 0:32:38.640
<v Speaker 13>allows us to be much more sustainable in an economic way.

0:32:39.320 --> 0:32:41.600
<v Speaker 13>So that's sort of why we landed on this coined term,

0:32:41.680 --> 0:32:44.280
<v Speaker 13>if you will, the new SaaS or sustainability as a service.

0:32:44.680 --> 0:32:48.360
<v Speaker 3>You've been raising money and for as someone who's leading

0:32:48.360 --> 0:32:50.440
<v Speaker 3>it as GP, still a lot of money from the

0:32:50.440 --> 0:32:53.760
<v Speaker 3>fund to allocate, So tell me fifty million where the

0:32:53.840 --> 0:32:56.000
<v Speaker 3>priorities to be putting money to you? Where you can

0:32:56.000 --> 0:32:58.840
<v Speaker 3>make the most impact from how I basically interact with

0:32:58.840 --> 0:33:01.120
<v Speaker 3>the climate as a capital It's.

0:33:00.960 --> 0:33:01.680
<v Speaker 5>A great question.

0:33:01.920 --> 0:33:05.240
<v Speaker 13>I you know, we're still investing out of our first fund,

0:33:05.240 --> 0:33:07.400
<v Speaker 13>but we're actually really focused on our second fund right now.

0:33:07.440 --> 0:33:09.880
<v Speaker 5>And the ethos has been happening is that second fund.

0:33:10.360 --> 0:33:14.520
<v Speaker 13>Our second fund target is eighty And you know, the

0:33:14.560 --> 0:33:16.840
<v Speaker 13>thing that I think a lot of consumers struggle with

0:33:16.920 --> 0:33:19.960
<v Speaker 13>is like, how can you really capitalize on your individual

0:33:19.960 --> 0:33:24.200
<v Speaker 13>purchases or your activities if you will. And one of

0:33:24.200 --> 0:33:27.480
<v Speaker 13>the things we always come back to is that sustainable

0:33:27.480 --> 0:33:30.320
<v Speaker 13>solutions are not really long term sustainable if they're not

0:33:30.680 --> 0:33:34.280
<v Speaker 13>cost effective and if they don't really if they don't

0:33:34.280 --> 0:33:37.000
<v Speaker 13>really inhibit the consumer's life that drastically on a day

0:33:37.040 --> 0:33:38.400
<v Speaker 13>to day because at the end of the day, I mean,

0:33:38.440 --> 0:33:40.480
<v Speaker 13>we're sitting in a Bloomberg office. We live in a

0:33:40.520 --> 0:33:43.640
<v Speaker 13>capitalist society, so we need to focus on investments, and

0:33:43.680 --> 0:33:46.320
<v Speaker 13>we need to focus on solutions that don't totally change

0:33:46.640 --> 0:33:49.080
<v Speaker 13>the way that we behave at least not so drastically.

0:33:49.080 --> 0:33:51.280
<v Speaker 5>I'm going to kind of a flight still for example, exactly.

0:33:52.440 --> 0:33:54.680
<v Speaker 13>And it's a lot of the times as an investor,

0:33:54.760 --> 0:33:58.080
<v Speaker 13>we're thinking about how do we evaluate businesses that are

0:33:58.080 --> 0:34:01.320
<v Speaker 13>a lot more practical, that aren't necessarily from the echo

0:34:01.400 --> 0:34:04.480
<v Speaker 13>chambers of you need to be net zero tomorrow. So

0:34:04.520 --> 0:34:06.960
<v Speaker 13>that's really where we're sort of leaning our biases these days.

0:34:08.440 --> 0:34:11.160
<v Speaker 4>CITA. We've done a lot of reporting on the program

0:34:11.320 --> 0:34:17.040
<v Speaker 4>about funds new funds that are focused on manufacturing industrial funds,

0:34:17.080 --> 0:34:21.120
<v Speaker 4>but they have the same thesis, just very specifically, what's

0:34:21.120 --> 0:34:24.759
<v Speaker 4>the opportunity for you. Is it on something tangible hardware

0:34:25.120 --> 0:34:28.320
<v Speaker 4>or are you also looking at software application as well.

0:34:28.520 --> 0:34:32.040
<v Speaker 13>We're definitely looking across both areas, but our personal biases

0:34:32.120 --> 0:34:34.960
<v Speaker 13>towards the latter, I mean, to be very frank, the

0:34:35.000 --> 0:34:38.200
<v Speaker 13>genesis of the fund really started because we felt like, wow,

0:34:38.239 --> 0:34:40.719
<v Speaker 13>there was a lot of capital being deployed into the

0:34:40.760 --> 0:34:44.759
<v Speaker 13>broad climate crisis or the sustainability transition. From a sheer

0:34:44.840 --> 0:34:48.319
<v Speaker 13>volume standpoint, the vast majority of this capital was going

0:34:48.320 --> 0:34:52.759
<v Speaker 13>into hard assets, long duration if you will, slightly risk

0:34:52.800 --> 0:34:57.600
<v Speaker 13>your bets. And while that's a super noble ambition, if

0:34:57.600 --> 0:35:00.759
<v Speaker 13>you will, and I'm so happy to know funding is

0:35:00.800 --> 0:35:03.000
<v Speaker 13>out there for those initiatives, at the end of the day,

0:35:03.040 --> 0:35:05.200
<v Speaker 13>this transition is not going to happen just because we

0:35:05.280 --> 0:35:08.640
<v Speaker 13>have these decade defining technologies. We also need the picks

0:35:08.640 --> 0:35:10.840
<v Speaker 13>and shovels. Sort of the point I was making earlier

0:35:10.880 --> 0:35:14.960
<v Speaker 13>around really software that will actually connect the dots between

0:35:15.000 --> 0:35:17.560
<v Speaker 13>the new technologies that exist and the end user, be

0:35:17.600 --> 0:35:20.560
<v Speaker 13>it the consumer businesses. So we have a strong bias

0:35:20.560 --> 0:35:24.040
<v Speaker 13>towards really investing in these slightly more scalable, slightly more

0:35:24.080 --> 0:35:27.279
<v Speaker 13>asset light, much more software focused opportunities.

0:35:28.719 --> 0:35:31.680
<v Speaker 4>What is the pitch then to LPs very quickly, just

0:35:31.760 --> 0:35:32.719
<v Speaker 4>how do you sell it to them?

0:35:32.840 --> 0:35:36.919
<v Speaker 13>The vision I'm probably I'm probably going to say away

0:35:36.920 --> 0:35:39.359
<v Speaker 13>from that, just because we know we try to keep

0:35:39.360 --> 0:35:43.879
<v Speaker 13>those conversations in private, but also more so, it really

0:35:43.960 --> 0:35:47.040
<v Speaker 13>depends on what your perspective is on the transition. But

0:35:48.040 --> 0:35:51.880
<v Speaker 13>our stance is very much that you know, over our lifetime,

0:35:51.880 --> 0:35:54.800
<v Speaker 13>one of the greatest transitions, or one of the greatest problems,

0:35:54.840 --> 0:35:57.600
<v Speaker 13>if you will, is this sustainability transition. But as a

0:35:57.600 --> 0:35:59.319
<v Speaker 13>function of that, it's also one of the greatest wealth

0:35:59.360 --> 0:36:02.719
<v Speaker 13>creation opportunit unities, and we need to be able to

0:36:02.760 --> 0:36:05.040
<v Speaker 13>find ways in which we can invest in that transition

0:36:05.480 --> 0:36:08.239
<v Speaker 13>in a much more asset light way, in a way

0:36:08.239 --> 0:36:10.440
<v Speaker 13>that is a little bit more tangible. Sort of to

0:36:10.760 --> 0:36:12.600
<v Speaker 13>go back to her thesis a little bit, or to

0:36:12.640 --> 0:36:15.880
<v Speaker 13>answer Caroline's first question as well around consumers. You know,

0:36:16.880 --> 0:36:18.880
<v Speaker 13>in the US where we sit, and this is also

0:36:18.920 --> 0:36:21.440
<v Speaker 13>pretty akin to a lot of developed countries, the biggest

0:36:21.480 --> 0:36:25.160
<v Speaker 13>shareholder of the economy or the biggest stakeholders or consumers,

0:36:25.360 --> 0:36:29.000
<v Speaker 13>we hold over seventy percent of the GDP so on aggregate.

0:36:29.040 --> 0:36:32.960
<v Speaker 13>This is a massive moving power mechanism and consumers. If

0:36:33.000 --> 0:36:35.680
<v Speaker 13>we're forced to change every facet of our lives, what

0:36:35.760 --> 0:36:38.400
<v Speaker 13>we do, how we spend our time, how we move,

0:36:38.800 --> 0:36:41.680
<v Speaker 13>it forces businesses to also change the way they do business.

0:36:41.840 --> 0:36:43.600
<v Speaker 13>And that really is the essence of how we think

0:36:43.640 --> 0:36:44.320
<v Speaker 13>about the space.

0:36:44.480 --> 0:36:46.279
<v Speaker 3>I'm talking about, how you move, That's why you're in

0:36:46.320 --> 0:36:49.440
<v Speaker 3>companies like Cowboy, Tomorrow Farms, How we eat, how we consume?

0:36:49.880 --> 0:36:51.840
<v Speaker 5>Sime Capital, founder and managing Ponda. Great to have you

0:36:51.880 --> 0:36:55.200
<v Speaker 5>with us. Thank you so much, Seeta s Tremun classroy Ed.

0:36:55.320 --> 0:36:58.319
<v Speaker 4>If you got coming up another big story and they

0:36:58.400 --> 0:37:02.400
<v Speaker 4>keep coming. Salesforce talks with Informatica fizzle out. In fact,

0:37:02.560 --> 0:37:04.200
<v Speaker 4>there ain't no talks at all. We'll talk about those

0:37:04.239 --> 0:37:25.040
<v Speaker 4>details next. This is Bloomberg Technology Data management company. Informatica

0:37:25.160 --> 0:37:29.160
<v Speaker 4>said it's not engaged in takeover talks following reports that

0:37:29.320 --> 0:37:33.480
<v Speaker 4>discussions with sales Force had call let's get the analysis

0:37:33.600 --> 0:37:36.040
<v Speaker 4>with Anna rag Rana of Bloomberg Intelligence. So that was

0:37:36.040 --> 0:37:40.000
<v Speaker 4>the chronology, right. Bloomberger reported there were talks. Then Bloomberger

0:37:40.120 --> 0:37:43.360
<v Speaker 4>reported that they had called specifically over price. It's the

0:37:43.360 --> 0:37:46.479
<v Speaker 4>sticking point. And now Informatica has been forced I guess

0:37:46.480 --> 0:37:49.120
<v Speaker 4>to come out and say no talks, but I don't

0:37:49.160 --> 0:37:52.600
<v Speaker 4>think many people really understood the deal anyway, Ana rag Yeah,

0:37:52.640 --> 0:37:53.000
<v Speaker 4>I don't know.

0:37:53.040 --> 0:37:55.479
<v Speaker 14>We are happy that there's no deal for salesforce sake.

0:37:55.800 --> 0:37:59.360
<v Speaker 14>I mean, Informatica is not growing at that seam readers salesforces,

0:37:59.760 --> 0:38:02.200
<v Speaker 14>and you know, we're happy with the way what Salesforce

0:38:02.239 --> 0:38:04.520
<v Speaker 14>has down over the last twelve to twenty four months,

0:38:04.719 --> 0:38:08.520
<v Speaker 14>stayed away from deals, focused on margins, focus on organic

0:38:08.560 --> 0:38:10.560
<v Speaker 14>growth rate, and I hope for their sake they stick

0:38:10.600 --> 0:38:13.759
<v Speaker 14>to that at least for the near term, because as

0:38:13.760 --> 0:38:16.680
<v Speaker 14>as you remember, this was the biggest criticism for Salesforce

0:38:16.920 --> 0:38:20.240
<v Speaker 14>for several years, that they move into slightly profitable territory

0:38:20.280 --> 0:38:22.360
<v Speaker 14>and then they'll go out and buy something big and

0:38:22.400 --> 0:38:24.960
<v Speaker 14>then you know, shareholders don't get the benefit of the

0:38:25.080 --> 0:38:26.800
<v Speaker 14>leverage that comes from a SaaS model.

0:38:27.360 --> 0:38:28.240
<v Speaker 5>To that end.

0:38:28.440 --> 0:38:30.239
<v Speaker 3>Well, this was going to be the biggest deal since

0:38:30.280 --> 0:38:33.600
<v Speaker 3>all the way back to Slack being bought for twenty.

0:38:33.280 --> 0:38:34.720
<v Speaker 5>Seven billion dollars.

0:38:35.200 --> 0:38:37.759
<v Speaker 3>I'm interested there for what is it that they just

0:38:37.800 --> 0:38:39.880
<v Speaker 3>wanted to add and what would you like them to

0:38:39.920 --> 0:38:42.000
<v Speaker 3>add organically if not inorganically.

0:38:43.160 --> 0:38:43.319
<v Speaker 4>Yeah.

0:38:43.400 --> 0:38:45.960
<v Speaker 14>See, one of the things is Salesforce has no shortage

0:38:45.960 --> 0:38:48.879
<v Speaker 14>of i would say opportunities in the long run. They

0:38:48.920 --> 0:38:52.680
<v Speaker 14>have a massive customer base on sales, automation and customer

0:38:52.719 --> 0:38:55.080
<v Speaker 14>service a lot of that. What they have to do

0:38:55.200 --> 0:38:58.080
<v Speaker 14>is make sure these products work well. Now, when they

0:38:58.200 --> 0:39:01.000
<v Speaker 14>were looking at buying Informatica, they actually bought a company

0:39:01.000 --> 0:39:03.840
<v Speaker 14>called Mutsoft a few years ago that does some stuff

0:39:03.880 --> 0:39:07.120
<v Speaker 14>that's very similar to Informatica. Informatica is slightly larger than

0:39:07.200 --> 0:39:10.280
<v Speaker 14>mule Soft when it comes to that. But honestly, they

0:39:10.480 --> 0:39:14.160
<v Speaker 14>just reported Salesforce reported that MuleSoft grew twenty two percent

0:39:14.440 --> 0:39:17.120
<v Speaker 14>the last time we had their numbers. That's a massive

0:39:17.160 --> 0:39:20.480
<v Speaker 14>growth rate for a company internally what they're doing on

0:39:20.560 --> 0:39:23.560
<v Speaker 14>data management. Informatica, on the other hand, if you look

0:39:23.600 --> 0:39:26.399
<v Speaker 14>at Consensus is growing at six seven percent. So from

0:39:26.480 --> 0:39:28.719
<v Speaker 14>our side, I was surprised that they are even you know,

0:39:29.080 --> 0:39:31.759
<v Speaker 14>considering at this point, given all the opportunities they have

0:39:31.920 --> 0:39:33.920
<v Speaker 14>organically and.

0:39:34.040 --> 0:39:36.080
<v Speaker 3>RAG so great to always get your perspective and why

0:39:36.120 --> 0:39:38.080
<v Speaker 3>perhaps you like the idea that EM and A isn't

0:39:38.120 --> 0:39:41.520
<v Speaker 3>going thick and fast over over at CRM and Ran

0:39:41.600 --> 0:39:42.279
<v Speaker 3>Ran and we thank you.

0:39:42.360 --> 0:39:43.560
<v Speaker 5>Bloomberg Intelligence, all.

0:39:43.440 --> 0:39:47.399
<v Speaker 3>Things Salesforce, all things well, busy, busy Monday day. We're

0:39:47.400 --> 0:39:51.279
<v Speaker 3>talking TikTok, We're talking legal regulatorations, We're talking your big Take,

0:39:51.360 --> 0:39:52.600
<v Speaker 3>which is a mastery.

0:39:52.200 --> 0:39:54.640
<v Speaker 4>To d Yeah, and it's all happening at once. I

0:39:54.680 --> 0:39:56.640
<v Speaker 4>think it's gonna be a massive week, you know, earning

0:39:56.719 --> 0:40:00.120
<v Speaker 4>start in Earnest Tesla massive obviously with the show, it

0:40:00.160 --> 0:40:02.040
<v Speaker 4>was an important way to start the week. So recap

0:40:02.080 --> 0:40:05.160
<v Speaker 4>on the podcast. Really grateful. So many of you are

0:40:05.160 --> 0:40:06.839
<v Speaker 4>listening to the show as a podcast and your way

0:40:06.840 --> 0:40:09.279
<v Speaker 4>to work your way home wherever you are in the world.

0:40:09.320 --> 0:40:12.040
<v Speaker 4>You can get it on Apples, Spotify, and iHeart. We

0:40:12.120 --> 0:40:13.960
<v Speaker 4>do have a big week, So from New York City

0:40:13.960 --> 0:40:16.640
<v Speaker 4>and San Francisco join us for the next four days.

0:40:17.000 --> 0:40:21.840
<v Speaker 4>This is Bloomberg Technology