1 00:00:02,240 --> 00:00:05,600 Speaker 1: From the heart of where innovation, money and power collive 2 00:00:06,360 --> 00:00:10,879 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:10,960 --> 00:00:29,000 Speaker 1: Emily Jay and this is Bloomberg Technology coming up in 4 00:00:29,000 --> 00:00:31,720 Speaker 1: the next hour. Jewel ordered to pay almost four hundred 5 00:00:31,840 --> 00:00:34,760 Speaker 1: forty million dollars to settle a probe over the e 6 00:00:34,880 --> 00:00:39,080 Speaker 1: cigarette makers marketing to teens, but the company still faces 7 00:00:39,159 --> 00:00:43,120 Speaker 1: hundreds of lawsuits plus the rise of the creator economy. 8 00:00:43,120 --> 00:00:45,720 Speaker 1: We're gonna take a deep dive into this booming industry 9 00:00:45,960 --> 00:00:49,800 Speaker 1: and how YouTube in particular reign supreme as platform of choice, 10 00:00:50,040 --> 00:00:54,920 Speaker 1: but TikTok is catching up and it's back. The NFL 11 00:00:54,960 --> 00:00:57,720 Speaker 1: season starts this Thursday, which means more sports betting on 12 00:00:57,760 --> 00:01:01,000 Speaker 1: sites like Draft Kings. Our conversation issue with CEO Jason 13 00:01:01,080 --> 00:01:03,720 Speaker 1: Robbins on what to expect as we kick off this 14 00:01:03,800 --> 00:01:07,520 Speaker 1: week's sports tech series. Meantime, Jewel Labs, as ed said, 15 00:01:07,640 --> 00:01:11,720 Speaker 1: agreeing to pay four thirty eight point five million dollars 16 00:01:11,720 --> 00:01:15,360 Speaker 1: to thirty three states. This resolves a two year bipartisan 17 00:01:15,400 --> 00:01:19,320 Speaker 1: pro into the East Grant Makers manufacturing and sales practices 18 00:01:19,360 --> 00:01:23,360 Speaker 1: the States, claiming that it marketed addictive nicotine products to children. 19 00:01:23,520 --> 00:01:26,560 Speaker 1: Bloom Works Eric Larson joining us now to discuss, So 20 00:01:26,720 --> 00:01:30,800 Speaker 1: Eric tell us how significant this settlement is today. It's 21 00:01:30,800 --> 00:01:33,800 Speaker 1: a very significant settlement. It's certainly the largest that Jewel 22 00:01:33,880 --> 00:01:37,280 Speaker 1: has had to pay to date involving any individual states. 23 00:01:37,280 --> 00:01:39,800 Speaker 1: You know, in the last year or so, the company 24 00:01:39,840 --> 00:01:43,039 Speaker 1: had settled a few state lawsuits by Washington State in 25 00:01:43,080 --> 00:01:47,279 Speaker 1: North Carolina and really had all this huge investigation hanging 26 00:01:47,319 --> 00:01:51,320 Speaker 1: over it in the meantime, So clearly they decided to 27 00:01:51,360 --> 00:01:54,360 Speaker 1: be done with this particular risk. Although clearly there's a 28 00:01:54,360 --> 00:01:56,800 Speaker 1: lot of lawsuits still pending out there, but this definitely 29 00:01:56,800 --> 00:01:59,680 Speaker 1: does away with a lot of the lawsuits that could 30 00:01:59,720 --> 00:02:04,800 Speaker 1: have been filed by these thirty three states and Puerto Rico. So, 31 00:02:05,280 --> 00:02:07,760 Speaker 1: you know, how much does this resolve these, you know, 32 00:02:07,880 --> 00:02:12,080 Speaker 1: hundreds of other lawsuits essentially, how much of Jewels legal 33 00:02:12,120 --> 00:02:15,400 Speaker 1: troubles go away as a result of this. Well, it 34 00:02:15,520 --> 00:02:18,560 Speaker 1: definitely significant that these states have settled, but there are 35 00:02:18,560 --> 00:02:22,240 Speaker 1: still over two thousand, five hundred civil lawsuits like personal 36 00:02:22,280 --> 00:02:26,000 Speaker 1: injury lawsuits that have been filed by individuals, and also 37 00:02:26,240 --> 00:02:30,120 Speaker 1: dozens of cases filed by state governments and school districts. 38 00:02:30,320 --> 00:02:33,480 Speaker 1: In fact, in November, the San Francisco School District we'll 39 00:02:33,480 --> 00:02:35,880 Speaker 1: go to trial in the first of these cases to 40 00:02:35,919 --> 00:02:38,400 Speaker 1: go to trial, which could really show the potential for 41 00:02:38,480 --> 00:02:41,800 Speaker 1: how jury might react to the evidence once it is presented. 42 00:02:42,320 --> 00:02:44,959 Speaker 1: Uh So, that's another one that potentially we could see 43 00:02:44,960 --> 00:02:47,519 Speaker 1: a settlement before it hits trial. But there are over 44 00:02:49,080 --> 00:02:52,000 Speaker 1: suits out there, plus several states that are including New 45 00:02:52,080 --> 00:02:55,040 Speaker 1: York and California by the way, which normally are you know, 46 00:02:55,080 --> 00:02:59,000 Speaker 1: have the potential for big settlements or damages. They have 47 00:02:59,080 --> 00:03:01,920 Speaker 1: lawsuits penning again Stool that are still pending. All right, 48 00:03:02,120 --> 00:03:04,960 Speaker 1: Bloom Exeric Laws and thank you for that update. Will 49 00:03:04,960 --> 00:03:16,160 Speaker 1: continue to watch how those civil suits evolved. Let's take 50 00:03:16,160 --> 00:03:19,840 Speaker 1: a pulse of the VC market and declining market conditions 51 00:03:19,840 --> 00:03:22,359 Speaker 1: as fears continue about a hawk ish FED, and talk 52 00:03:22,400 --> 00:03:26,200 Speaker 1: about what is the future of venture capital after the 53 00:03:26,240 --> 00:03:29,720 Speaker 1: growth at all costs mantra of the last couple of years. 54 00:03:29,720 --> 00:03:32,040 Speaker 1: I want to get to Sheila Patel get her insight 55 00:03:32,120 --> 00:03:34,440 Speaker 1: on this. She's the vice chair and general partner at 56 00:03:34,440 --> 00:03:37,920 Speaker 1: the Capital Group. Sheila, thank you so much for joining us. So, Karius, 57 00:03:38,000 --> 00:03:40,080 Speaker 1: just what is your reaction of, you know, to a 58 00:03:40,120 --> 00:03:45,160 Speaker 1: continuing hawkers fed. Obviously we're getting mixed economic data. Uh, 59 00:03:45,200 --> 00:03:47,680 Speaker 1: you know, some that looks better than others. But what 60 00:03:47,720 --> 00:03:53,080 Speaker 1: does this mean for your world and you're investing investing strategy. Look, 61 00:03:53,120 --> 00:03:56,480 Speaker 1: I think venture capital has been in an amazing run 62 00:03:56,560 --> 00:03:59,320 Speaker 1: for the last decade, and it was inevitable that we'd 63 00:03:59,360 --> 00:04:02,720 Speaker 1: come to more difficult time. Uh. That said, looking at 64 00:04:02,760 --> 00:04:06,240 Speaker 1: the environment we're in today, looking at everything you mentioned 65 00:04:06,240 --> 00:04:09,600 Speaker 1: that fed the geopolitical environment, I actually think it's a 66 00:04:09,600 --> 00:04:11,960 Speaker 1: great time, just as it's been in the past when 67 00:04:11,960 --> 00:04:15,200 Speaker 1: you've gone through vintages or cycles that are difficult in 68 00:04:15,280 --> 00:04:18,600 Speaker 1: private equity in other segments of the market. To really 69 00:04:18,600 --> 00:04:22,040 Speaker 1: look at BC today and the technological innovations that are 70 00:04:22,120 --> 00:04:27,279 Speaker 1: driving uh, future innovation and really future productivity. So to 71 00:04:27,400 --> 00:04:31,440 Speaker 1: my mind, the pullback is actually necessary and a good 72 00:04:31,480 --> 00:04:34,359 Speaker 1: thing for shaking out where we need to be in BC. 73 00:04:35,960 --> 00:04:38,480 Speaker 1: So where are we in VC? Talk to us about 74 00:04:38,480 --> 00:04:41,440 Speaker 1: trends are seeing in the private markets? Are valuations still 75 00:04:41,520 --> 00:04:46,840 Speaker 1: too high? Are there more valuations that are gonna come down? Look, 76 00:04:46,839 --> 00:04:49,920 Speaker 1: I think as you're seeing in the latest rounds UM, 77 00:04:50,000 --> 00:04:53,279 Speaker 1: you're seeing founders realizing they need to do larger deals, 78 00:04:53,360 --> 00:04:57,840 Speaker 1: more capital at reasonable valuations. People need cash runaway. That's 79 00:04:57,880 --> 00:05:00,880 Speaker 1: to be expected. Uh, it's also is able to expect 80 00:05:00,920 --> 00:05:03,159 Speaker 1: we'll start to see an increasing amount of M and A. 81 00:05:03,720 --> 00:05:06,200 Speaker 1: And I think many of the reports we're seeing, whether 82 00:05:06,240 --> 00:05:10,400 Speaker 1: from City Group or works UH that are friends are 83 00:05:10,480 --> 00:05:13,080 Speaker 1: at BCG with whom we have a strategic partnership have 84 00:05:13,240 --> 00:05:15,680 Speaker 1: done UH suggests that you'll see more M and A, 85 00:05:15,800 --> 00:05:19,320 Speaker 1: particularly in the software UH space, and particularly in the 86 00:05:19,320 --> 00:05:21,960 Speaker 1: areas like the back office. So I do think there's 87 00:05:22,120 --> 00:05:24,800 Speaker 1: room for some valuations to move, but I also think 88 00:05:24,800 --> 00:05:27,960 Speaker 1: there's room for some incredible innovation to come, even in 89 00:05:28,040 --> 00:05:30,400 Speaker 1: areas that have seen the most difficult you know. I 90 00:05:30,440 --> 00:05:32,760 Speaker 1: think crypto is a great example of that, where there 91 00:05:32,839 --> 00:05:36,919 Speaker 1: is an interesting future ahead after this latest downturn. The 92 00:05:37,000 --> 00:05:39,160 Speaker 1: question is just how long is this downturn gonna last. 93 00:05:39,160 --> 00:05:40,680 Speaker 1: I mean, we've had guests on the show who are 94 00:05:40,720 --> 00:05:44,080 Speaker 1: predicting millions of layoffs in tech and that this is 95 00:05:44,080 --> 00:05:46,719 Speaker 1: gonna last two to three years. Does that drive with 96 00:05:46,760 --> 00:05:51,120 Speaker 1: your thinking? Look, I think that's entirely possible. I'm probably 97 00:05:51,120 --> 00:05:54,640 Speaker 1: a bit more optimistic than that, mainly because I see 98 00:05:54,680 --> 00:05:57,719 Speaker 1: some positive trends UH in what's going on as well. 99 00:05:57,960 --> 00:06:02,000 Speaker 1: For example, a recent serve very done by City suggested 100 00:06:02,040 --> 00:06:05,000 Speaker 1: that CFOs and c h R o s. So in 101 00:06:05,040 --> 00:06:08,719 Speaker 1: the financial space and the HR space within corporate aren't 102 00:06:08,720 --> 00:06:11,400 Speaker 1: pulling back on areas like software spending. A lot of 103 00:06:11,400 --> 00:06:14,279 Speaker 1: what we focus on it be capital or core areas 104 00:06:14,320 --> 00:06:19,479 Speaker 1: like enterprise, and these are areas where companies can find efficiencies. 105 00:06:19,760 --> 00:06:23,840 Speaker 1: At the same time they're going through more difficult economic circumstances. 106 00:06:24,040 --> 00:06:28,240 Speaker 1: So in many cases, for certain segments within technology, recessionary 107 00:06:28,320 --> 00:06:31,080 Speaker 1: environment or at least even a difficult environment is not 108 00:06:31,200 --> 00:06:36,520 Speaker 1: necessarily the worst environment to the business. Meantime, you're investing 109 00:06:36,520 --> 00:06:39,479 Speaker 1: in companies that are, you know, taking on big tech, 110 00:06:39,480 --> 00:06:42,240 Speaker 1: are trying to challenge big tech do things better than 111 00:06:42,320 --> 00:06:45,679 Speaker 1: big tech companies do. We've been following this big piece 112 00:06:45,680 --> 00:06:48,520 Speaker 1: of legislation that's been working its way through Congress to 113 00:06:48,600 --> 00:06:51,679 Speaker 1: rain in big tech, but that's a chance it won't 114 00:06:51,720 --> 00:06:54,640 Speaker 1: make it before the mid terms. What do you think 115 00:06:54,680 --> 00:06:57,120 Speaker 1: the impact of this legislation could be and what's the 116 00:06:57,160 --> 00:07:00,719 Speaker 1: impact if it doesn't happen before November ace. Look, I 117 00:07:00,760 --> 00:07:04,480 Speaker 1: think around the world, the technology industry has proven itself 118 00:07:04,520 --> 00:07:07,320 Speaker 1: to be incredibly adaptable, and this is not the first 119 00:07:07,360 --> 00:07:10,720 Speaker 1: time or the first region or country to take on 120 00:07:10,880 --> 00:07:13,760 Speaker 1: issues within big tech. We've actually seen it where I 121 00:07:13,840 --> 00:07:17,640 Speaker 1: lived for many years UH in Europe, and you've seen 122 00:07:17,880 --> 00:07:20,800 Speaker 1: UH the tech industry continue to adapt, and I think 123 00:07:20,840 --> 00:07:24,000 Speaker 1: many within the tech industry are eager to adapt right. 124 00:07:24,160 --> 00:07:27,800 Speaker 1: Technology sometimes moves faster than human capacity to handle it. 125 00:07:28,440 --> 00:07:32,520 Speaker 1: So to my mind, UM, whether the regulation happens before 126 00:07:32,680 --> 00:07:35,760 Speaker 1: or after the midterms, some amount of regulation to big 127 00:07:35,760 --> 00:07:39,000 Speaker 1: tech is coming, and I think everyone's accepted that everybody's 128 00:07:39,040 --> 00:07:42,320 Speaker 1: ready for that. The real issue is UM making sure 129 00:07:42,360 --> 00:07:45,840 Speaker 1: that it's addressing the right things and really solving the 130 00:07:45,920 --> 00:07:50,080 Speaker 1: right problems that people have concerns with. So what's your 131 00:07:50,080 --> 00:07:53,720 Speaker 1: advice to your portfolio companies right now? You know, potentially 132 00:07:54,120 --> 00:07:58,080 Speaker 1: or in a prolonged economic downturn, there's a lot of uncertainty. 133 00:07:58,440 --> 00:08:00,760 Speaker 1: I had. You know, we're moving of an era where 134 00:08:00,760 --> 00:08:03,920 Speaker 1: there was you know, a lots of money flooding in. 135 00:08:04,040 --> 00:08:07,320 Speaker 1: But now you know, investors want to see real numbers. 136 00:08:09,080 --> 00:08:11,680 Speaker 1: Oh look, I think I think, UM, it's a real 137 00:08:11,800 --> 00:08:13,760 Speaker 1: chance to go back to their knitting. And I think 138 00:08:13,760 --> 00:08:16,640 Speaker 1: this is where you really see UH, particularly as we 139 00:08:16,680 --> 00:08:20,280 Speaker 1: look at portfolio companies, the best in the management side 140 00:08:20,400 --> 00:08:23,640 Speaker 1: come to the four founders that think about things for 141 00:08:23,680 --> 00:08:26,960 Speaker 1: the long term, founders that have a sense of their 142 00:08:27,040 --> 00:08:30,600 Speaker 1: use of cash, their burn rates um and really maintaining 143 00:08:30,640 --> 00:08:33,479 Speaker 1: their runaway but also have a sense of the competition 144 00:08:33,800 --> 00:08:36,840 Speaker 1: and realize that they're in a moment right now or 145 00:08:36,880 --> 00:08:39,840 Speaker 1: some of the competitors are facing more difficult times. They 146 00:08:39,880 --> 00:08:42,840 Speaker 1: need to be aggressive. They need to think about ways 147 00:08:43,120 --> 00:08:47,839 Speaker 1: to push themselves, their business, their product schoolward as solutions 148 00:08:47,840 --> 00:08:50,800 Speaker 1: in a difficult environment. And I think you see many 149 00:08:50,840 --> 00:08:54,480 Speaker 1: of the best founders and innovators able to put that 150 00:08:54,600 --> 00:08:57,679 Speaker 1: hat on. Put the hat on that says my idea 151 00:08:57,760 --> 00:09:00,079 Speaker 1: is the best idea I've put it together, is is 152 00:09:00,080 --> 00:09:03,280 Speaker 1: one my competition is showing the signs of weakness or 153 00:09:03,320 --> 00:09:06,520 Speaker 1: the challenges of the way they've managed their business. And 154 00:09:06,559 --> 00:09:10,319 Speaker 1: so this is when it's my time to shine. So 155 00:09:10,400 --> 00:09:12,400 Speaker 1: where are you placing your bets in terms of where 156 00:09:12,400 --> 00:09:16,880 Speaker 1: you think we're gonna be this time next year. I 157 00:09:16,880 --> 00:09:20,200 Speaker 1: think this time next year hopefully, uh, we look at 158 00:09:20,200 --> 00:09:22,240 Speaker 1: it as a more stable time. I think what we've 159 00:09:22,280 --> 00:09:27,120 Speaker 1: said repeatedly from our perspective is we invest over many boarders. 160 00:09:27,240 --> 00:09:29,959 Speaker 1: We we don't raise a fun and think let's all 161 00:09:30,040 --> 00:09:31,840 Speaker 1: get it put to work right away. So I think 162 00:09:31,840 --> 00:09:34,599 Speaker 1: you'll still see us slow and steady investing in a 163 00:09:34,679 --> 00:09:37,520 Speaker 1: year from now. I think what we've very focused again 164 00:09:37,920 --> 00:09:42,200 Speaker 1: on the areas where we see opportunities, so enterprise UM. 165 00:09:42,400 --> 00:09:45,559 Speaker 1: Thinking about the evolution of crypto. My colleagues Matt Levinson 166 00:09:45,640 --> 00:09:49,000 Speaker 1: and Ryan Savelle just wrote a great piece UM about 167 00:09:49,000 --> 00:09:52,240 Speaker 1: where does crypto go from here and where crypto and 168 00:09:52,400 --> 00:09:57,080 Speaker 1: fintech merge. And to this moment, most of what's gone 169 00:09:57,120 --> 00:10:00,360 Speaker 1: on in crypto has really been driven in many cases 170 00:10:00,480 --> 00:10:03,559 Speaker 1: vice speculators. But where do the real world applications come 171 00:10:03,600 --> 00:10:05,720 Speaker 1: in as you think about emerging markets, as you think 172 00:10:05,720 --> 00:10:09,280 Speaker 1: about removing middleman, which you've already seen blockchain do in 173 00:10:09,280 --> 00:10:12,720 Speaker 1: in a place as unlikely as India, in getting money 174 00:10:12,760 --> 00:10:15,320 Speaker 1: to rural areas and so on. So I think we 175 00:10:15,520 --> 00:10:19,600 Speaker 1: really still are thinking about where do the ideas of 176 00:10:20,040 --> 00:10:23,840 Speaker 1: today that may not have been applied well get applied 177 00:10:23,880 --> 00:10:27,240 Speaker 1: in real world situations tomorrow. You know, I'd take climate 178 00:10:27,280 --> 00:10:29,560 Speaker 1: check is another curiate area for us that we see 179 00:10:29,559 --> 00:10:33,360 Speaker 1: will be important of the next several years. All right, 180 00:10:33,440 --> 00:10:36,760 Speaker 1: Sheila Patel b Capital Group Vice Chair and general partner. 181 00:10:36,800 --> 00:10:40,240 Speaker 1: Thank you, Sheila for sharing your thoughts with us. Meantime, 182 00:10:40,280 --> 00:10:43,400 Speaker 1: Theoronis founder Elizabeth Holmes claims a key witness in her 183 00:10:43,440 --> 00:10:48,000 Speaker 1: criminal case visited her after the verdict and express remorse 184 00:10:48,320 --> 00:10:52,360 Speaker 1: about his testimony. Homes alleges that a former Theories Lab 185 00:10:52,400 --> 00:10:55,439 Speaker 1: director showed up at her home and said his testimony 186 00:10:55,480 --> 00:10:58,920 Speaker 1: had been twisted by prosecutors. She's now asking for a 187 00:10:58,960 --> 00:11:02,959 Speaker 1: new trial after they allegations. This just weeks before Holmes 188 00:11:03,080 --> 00:11:08,360 Speaker 1: is scheduled to be sentenced. Coming up, the creator economy 189 00:11:08,640 --> 00:11:12,160 Speaker 1: is booming. How this new industry is changing the face 190 00:11:12,400 --> 00:11:16,840 Speaker 1: of entertainment and continuing to grow. We'll talk about that next. 191 00:11:17,080 --> 00:11:29,360 Speaker 1: This is Bloomberg taking a deep dive now on the 192 00:11:29,440 --> 00:11:33,360 Speaker 1: creator economy, which has experienced a massive boom over the 193 00:11:33,400 --> 00:11:37,600 Speaker 1: last several years, along with a slew of platforms like Spotify, Instagram, 194 00:11:37,600 --> 00:11:40,880 Speaker 1: and TikTok and the rule of them all of course YouTube. 195 00:11:41,160 --> 00:11:44,120 Speaker 1: To give you an idea, every minute at least at 196 00:11:44,160 --> 00:11:48,000 Speaker 1: least five hours of footage or uploading to YouTube. Let's 197 00:11:48,000 --> 00:11:51,280 Speaker 1: break this all down with Roberto Blake, a content creator 198 00:11:51,280 --> 00:11:54,800 Speaker 1: who also has his own coaching program that helps influencers 199 00:11:54,840 --> 00:11:57,760 Speaker 1: build their online brands, and our very own Mark Bergen, 200 00:11:57,840 --> 00:12:00,679 Speaker 1: who is out with a new book today called Light 201 00:12:00,720 --> 00:12:05,720 Speaker 1: Comments Subscribe. Inside YouTube's chaotic rise to World Domination. You 202 00:12:05,760 --> 00:12:08,480 Speaker 1: can buy it now. Mark and Roberto, thank you so 203 00:12:08,559 --> 00:12:10,800 Speaker 1: much for joining us. Mark, I'm gonna start with you. 204 00:12:10,880 --> 00:12:12,440 Speaker 1: Can you just start by giving us a sense of 205 00:12:12,520 --> 00:12:15,560 Speaker 1: how big the creator economy is today and just how 206 00:12:15,640 --> 00:12:19,160 Speaker 1: much it has grown on all of these different platforms 207 00:12:19,200 --> 00:12:21,920 Speaker 1: over the last several years. Yeah, there are estimates out 208 00:12:21,960 --> 00:12:24,640 Speaker 1: there that it's about a hundred billion, which is from 209 00:12:24,760 --> 00:12:29,800 Speaker 1: zero to to to sixty within maybe the past fifteen years. Really, uh, 210 00:12:29,840 --> 00:12:31,600 Speaker 1: and certainly in the past five years. I think that's 211 00:12:31,640 --> 00:12:34,800 Speaker 1: just exploded as all these platforms have got involved. You 212 00:12:34,800 --> 00:12:38,040 Speaker 1: know that that mind boggling stat about fifty hours uploaded. 213 00:12:38,200 --> 00:12:40,680 Speaker 1: The other major stat is that there are now over 214 00:12:40,760 --> 00:12:43,600 Speaker 1: two million craters in YouTube's partner program, which is actually 215 00:12:43,600 --> 00:12:46,600 Speaker 1: a smaller number than it was before. If if people 216 00:12:46,640 --> 00:12:49,160 Speaker 1: in the audience remember that YouTube actually cut that number 217 00:12:49,160 --> 00:12:52,120 Speaker 1: and it's but they're on ten. But it's been gradually 218 00:12:52,120 --> 00:12:55,000 Speaker 1: moving it up, and particularly as they're facing new competition 219 00:12:55,040 --> 00:12:59,880 Speaker 1: from TikTok. Roberto, you're a graphic designer and a free 220 00:13:00,000 --> 00:13:04,120 Speaker 1: in term before becoming a YouTube content creator. Why don't 221 00:13:04,120 --> 00:13:06,800 Speaker 1: you make this big job change and give us a 222 00:13:06,800 --> 00:13:10,079 Speaker 1: sense of a day in your life. I mean, that's 223 00:13:10,080 --> 00:13:13,080 Speaker 1: a great question, Emily. For me, a lot of it 224 00:13:13,120 --> 00:13:15,840 Speaker 1: comes down to the things that are obvious for people. 225 00:13:16,120 --> 00:13:18,000 Speaker 1: Is you want more time freedom, You want to be 226 00:13:18,040 --> 00:13:20,480 Speaker 1: able to talk about and do things you're very passionate about. 227 00:13:20,679 --> 00:13:22,520 Speaker 1: You want to feel a sense of ownership over the 228 00:13:22,520 --> 00:13:25,560 Speaker 1: things you're doing. So when you work in uh, you know, 229 00:13:25,640 --> 00:13:28,120 Speaker 1: for other people, whether it's as a freelancer or if 230 00:13:28,160 --> 00:13:31,079 Speaker 1: you work at an ad agency something I used to do, UH, 231 00:13:31,120 --> 00:13:33,920 Speaker 1: it's great. It's very gratifying, it's very fulfilling, and it's 232 00:13:34,400 --> 00:13:37,520 Speaker 1: very legitimate in the eyes of your relatives. But when 233 00:13:37,600 --> 00:13:39,080 Speaker 1: you get to do something of your own and have 234 00:13:39,160 --> 00:13:41,440 Speaker 1: complete ownership of it, get to build it with your 235 00:13:41,440 --> 00:13:44,439 Speaker 1: own two hands, you feel directly supported by a community 236 00:13:44,480 --> 00:13:47,559 Speaker 1: of like minding people. There's nothing like it, nothing in 237 00:13:47,600 --> 00:13:49,360 Speaker 1: the world like it, And so I think that's what 238 00:13:49,360 --> 00:13:52,599 Speaker 1: attracts a lot of people to the creator economy and 239 00:13:52,679 --> 00:13:57,280 Speaker 1: opportunities like YouTube, podcasting and live streaming. Why are you 240 00:13:57,360 --> 00:14:02,920 Speaker 1: focus on YouTube in particular and not tick to or Instagram. Well, 241 00:14:02,960 --> 00:14:06,160 Speaker 1: I've been with YouTube almost since the very beginning, and 242 00:14:06,360 --> 00:14:08,680 Speaker 1: YouTube is still the most powerful search engine in the 243 00:14:08,679 --> 00:14:11,840 Speaker 1: world across all ages and all of demographics, and YouTube 244 00:14:11,880 --> 00:14:14,959 Speaker 1: has a sense of permanence with its content. YouTube is 245 00:14:14,960 --> 00:14:18,640 Speaker 1: also the best monetization opportunity for content creators, as over 246 00:14:18,760 --> 00:14:24,040 Speaker 1: eight in platform monetization streams, I teach content creators UH 247 00:14:24,280 --> 00:14:29,479 Speaker 1: roughly fifteen different ways they can monetize, primarily using YouTube specifically, 248 00:14:29,800 --> 00:14:33,280 Speaker 1: but I also do understand and value other platforms have 249 00:14:33,320 --> 00:14:36,000 Speaker 1: a presence in other platforms as well. But I feel 250 00:14:36,040 --> 00:14:39,800 Speaker 1: that even with the rapid rise of TikTok, I feel 251 00:14:39,840 --> 00:14:43,840 Speaker 1: that there's nothing like the permanence and longevity that YouTube 252 00:14:43,880 --> 00:14:47,960 Speaker 1: content create content creation has, And if you talk to 253 00:14:48,880 --> 00:14:52,880 Speaker 1: TikTokers on a regular basis, which I generally do, you'll 254 00:14:52,920 --> 00:14:54,640 Speaker 1: find that a lot of them have the intention of 255 00:14:54,640 --> 00:14:58,120 Speaker 1: pivoting and moving to YouTube at some point in their 256 00:14:58,120 --> 00:15:02,080 Speaker 1: career because they do want a sense of stability and permanence, 257 00:15:02,400 --> 00:15:07,440 Speaker 1: and they also want the potential for evergreen content to 258 00:15:07,640 --> 00:15:10,320 Speaker 1: benefit them and be monetize able in the future. They 259 00:15:10,360 --> 00:15:13,080 Speaker 1: know right now with the TikTok Creator Fund, that while 260 00:15:13,080 --> 00:15:15,440 Speaker 1: they're getting something in exchange for their content, they know 261 00:15:15,520 --> 00:15:20,200 Speaker 1: they're disproportionately underpaid for the attention when compared to traditional 262 00:15:20,240 --> 00:15:23,160 Speaker 1: content on YouTube, as well as in the live streaming 263 00:15:23,200 --> 00:15:27,920 Speaker 1: community and within YouTube live stream and podcasting, their air 264 00:15:28,200 --> 00:15:32,800 Speaker 1: higher opportunities in terms of direct compensation when it comes 265 00:15:32,840 --> 00:15:35,840 Speaker 1: to sponsored content and brand deals, and it's not even close. 266 00:15:36,240 --> 00:15:39,120 Speaker 1: So so for me, that's probably one of the bigger deals, 267 00:15:41,000 --> 00:15:44,200 Speaker 1: not even close. Uh is in one way to put 268 00:15:44,200 --> 00:15:46,440 Speaker 1: it mark you know, we've talked so much about the 269 00:15:46,440 --> 00:15:50,120 Speaker 1: threat of TikTok to YouTube, but to Rebner's point, it 270 00:15:50,200 --> 00:15:54,000 Speaker 1: is a lot of disconnected content and it is less permanent. 271 00:15:54,040 --> 00:15:57,200 Speaker 1: How big a threat is TikTok really in your view 272 00:15:57,200 --> 00:15:59,520 Speaker 1: to YouTube and how is it How is YouTube addressing 273 00:15:59,800 --> 00:16:02,440 Speaker 1: the threat internally? Yeah, I think it's a viable threat, 274 00:16:02,480 --> 00:16:05,560 Speaker 1: and certainly more so than you know, Instagram, Facebook have 275 00:16:05,760 --> 00:16:08,520 Speaker 1: tried multiple times to really build out a creator economy 276 00:16:08,520 --> 00:16:12,960 Speaker 1: and thus far I failed. What TikTok and bite dnsiteds 277 00:16:13,000 --> 00:16:16,280 Speaker 1: to do is to demonstrate, you know, Google has a 278 00:16:16,280 --> 00:16:19,720 Speaker 1: remarkable system, as roberta pointed out book both for Search 279 00:16:20,200 --> 00:16:23,760 Speaker 1: uh and for Modernization, in the world's biggest digital advertising company, 280 00:16:23,800 --> 00:16:27,120 Speaker 1: and it's it's had this machinery in place for for years. 281 00:16:27,520 --> 00:16:31,080 Speaker 1: TikTok clearly has a lot of political problems, um and 282 00:16:31,400 --> 00:16:34,040 Speaker 1: they haven't really got a proven yet that they can 283 00:16:34,080 --> 00:16:36,960 Speaker 1: be a threat to YouTube at at large scale. So 284 00:16:37,200 --> 00:16:40,040 Speaker 1: YouTube's response so far is to is shorts. This is 285 00:16:40,080 --> 00:16:42,680 Speaker 1: their their feature that's sort of short video. They're driving 286 00:16:42,720 --> 00:16:45,280 Speaker 1: a lot of pushing a lot of viewers. They're encouraging 287 00:16:45,280 --> 00:16:47,480 Speaker 1: creators to go there. They're about to flip the switch 288 00:16:47,880 --> 00:16:51,680 Speaker 1: on modernization. You know, it's unclear how productive productive that 289 00:16:51,720 --> 00:16:53,520 Speaker 1: will be for the company and how they're going to 290 00:16:53,600 --> 00:16:55,440 Speaker 1: sort out modernization. But if there's a lot you know, 291 00:16:55,520 --> 00:16:57,760 Speaker 1: if history shows is anything that is that YouTube has 292 00:16:57,800 --> 00:17:00,680 Speaker 1: a pretty strong track record of sort this out, and 293 00:17:01,000 --> 00:17:04,000 Speaker 1: I think responding to the to the threat from of 294 00:17:04,040 --> 00:17:08,280 Speaker 1: TikTok in a really significant way. Reward are you're the 295 00:17:08,320 --> 00:17:11,640 Speaker 1: founder of Awesome Creator Academy, which is a coaching program 296 00:17:11,680 --> 00:17:15,120 Speaker 1: that helps influencers build their brands online. With some fun 297 00:17:15,200 --> 00:17:19,440 Speaker 1: watching your videos earlier today, what trends are you saying? 298 00:17:19,480 --> 00:17:23,360 Speaker 1: What are you telling creators today advice that that might 299 00:17:23,400 --> 00:17:28,359 Speaker 1: not be obvious. I think the thing that's not obvious 300 00:17:28,400 --> 00:17:32,400 Speaker 1: to most content creators is their potential, their overall potential 301 00:17:32,720 --> 00:17:34,680 Speaker 1: when it comes to their earnings, and the fact that 302 00:17:34,720 --> 00:17:39,119 Speaker 1: there is a compounding effect from their content over a 303 00:17:39,200 --> 00:17:41,720 Speaker 1: period of time. So what a lot of creators don't 304 00:17:41,880 --> 00:17:46,160 Speaker 1: do is they rely so much on platform modetization, whether 305 00:17:46,200 --> 00:17:48,880 Speaker 1: it's TikTok and their creator fund or YouTube and their 306 00:17:48,920 --> 00:17:50,720 Speaker 1: ad Sense partner program and things like that, that they 307 00:17:50,760 --> 00:17:55,040 Speaker 1: don't explore other monetization opportunities, and they don't think of 308 00:17:55,200 --> 00:17:57,800 Speaker 1: what they're doing as what I refer to as content 309 00:17:57,920 --> 00:18:00,679 Speaker 1: as a service. So that's one thing it's not obvious 310 00:18:00,680 --> 00:18:04,200 Speaker 1: to them is that it's very much almost like software 311 00:18:04,240 --> 00:18:05,960 Speaker 1: as a service, which most of us are familiar with. 312 00:18:05,960 --> 00:18:09,000 Speaker 1: We have these wonderful subscription programs everywhere now that we're 313 00:18:09,040 --> 00:18:12,680 Speaker 1: all paying for well. Content creators have an opportunity to 314 00:18:12,800 --> 00:18:16,360 Speaker 1: use content as a services leveraged not just with ad revenue, 315 00:18:16,560 --> 00:18:20,000 Speaker 1: creator funds and sponsored content brand deals, but they can 316 00:18:20,040 --> 00:18:22,840 Speaker 1: build their own communities around things like their one hundred 317 00:18:23,040 --> 00:18:26,479 Speaker 1: or one thousand truest fans, and they could have monthly 318 00:18:26,520 --> 00:18:30,119 Speaker 1: membership programs of their own, whether on platform or off platform. 319 00:18:30,560 --> 00:18:32,760 Speaker 1: They need to look at things that give them recurring 320 00:18:32,840 --> 00:18:35,600 Speaker 1: revenue outside of the platform, and telling more creators to 321 00:18:35,600 --> 00:18:38,760 Speaker 1: look into opportunities to build their own products, build their 322 00:18:38,800 --> 00:18:43,200 Speaker 1: own merchandise. YouTube recently partnered which Shopify, and they also 323 00:18:43,240 --> 00:18:47,600 Speaker 1: expanded their creator monetization program with regard to merch and 324 00:18:47,680 --> 00:18:51,040 Speaker 1: even physical and digital products. Used to have a ten 325 00:18:51,200 --> 00:18:56,639 Speaker 1: thousand subscriber their it's it's so fascinating, We're gonna have 326 00:18:56,680 --> 00:18:58,680 Speaker 1: to log onto you tube and watch your videos to 327 00:18:58,800 --> 00:19:01,280 Speaker 1: find out the rest. But appridging joining us and of 328 00:19:01,320 --> 00:19:11,720 Speaker 1: course pleased by marks book. Welcome back to one Work 329 00:19:11,760 --> 00:19:14,400 Speaker 1: Technology and I'm win Chang in pal Alto. I want 330 00:19:14,400 --> 00:19:16,119 Speaker 1: to get back to a check on the markets and 331 00:19:16,160 --> 00:19:20,560 Speaker 1: shares of so called meme stocks on moon Works at 332 00:19:20,600 --> 00:19:23,880 Speaker 1: Ludlow back with an update. Yeah, and one name in particular, 333 00:19:23,920 --> 00:19:26,960 Speaker 1: which is bed Bath and beyond that stock falling for 334 00:19:27,000 --> 00:19:29,840 Speaker 1: a fifth straight day, it's worse run since July. It 335 00:19:29,880 --> 00:19:33,040 Speaker 1: follows news over the weekend that the company's CFO, Gus 336 00:19:33,040 --> 00:19:36,720 Speaker 1: star Are Now died on Friday after falling from a 337 00:19:36,760 --> 00:19:41,080 Speaker 1: skyscraper in Manhattan, the company saying that they have appointed 338 00:19:41,119 --> 00:19:44,840 Speaker 1: an interim CFO. You see that decline more than eighteen percent. 339 00:19:45,119 --> 00:19:47,120 Speaker 1: Reminded that this is a stock that in the month 340 00:19:47,119 --> 00:19:51,320 Speaker 1: of August surged by zero percent. Caught up in the 341 00:19:51,400 --> 00:19:55,600 Speaker 1: meme stock frenzy where retail investors discussed this other stocks 342 00:19:55,600 --> 00:20:00,200 Speaker 1: on forums online, such as Reddit. That decline being elt 343 00:20:00,200 --> 00:20:02,679 Speaker 1: in the market. You see other so called meat stocks 344 00:20:02,680 --> 00:20:05,480 Speaker 1: like game Stop down eight percent. AMC Entertainment also down, 345 00:20:05,520 --> 00:20:08,440 Speaker 1: but the activity around this area is really dropped off. 346 00:20:08,480 --> 00:20:11,600 Speaker 1: If we use cool volumes as a proxy, we've seen 347 00:20:11,600 --> 00:20:15,240 Speaker 1: the fewest CAOL trades in this space, particularly for names 348 00:20:15,240 --> 00:20:18,679 Speaker 1: like game Stop, since nowhere near the frenzy that we 349 00:20:18,720 --> 00:20:22,560 Speaker 1: saw in early one. Who is interesting to see some 350 00:20:22,680 --> 00:20:25,560 Speaker 1: reporting on the Bloomberg terminal while I was away about 351 00:20:25,600 --> 00:20:27,920 Speaker 1: this idea that when we got to return to school 352 00:20:28,440 --> 00:20:30,680 Speaker 1: also meaning a return to college, that we might see 353 00:20:30,720 --> 00:20:33,600 Speaker 1: the frenzy in meme stocks pick back up. Because a 354 00:20:33,600 --> 00:20:36,080 Speaker 1: lot of the traders that are doing this are young. 355 00:20:36,119 --> 00:20:39,320 Speaker 1: They're discussing this online in their spare time. That hasn't 356 00:20:39,400 --> 00:20:41,640 Speaker 1: really been the case. We've seen that sort of negative 357 00:20:41,880 --> 00:20:44,760 Speaker 1: sentiment around Meme stocks continue, with bed Bath and Beyond 358 00:20:45,119 --> 00:20:47,560 Speaker 1: being the exception in the month of August. But tragic 359 00:20:47,600 --> 00:20:50,360 Speaker 1: news of course relating to that that company, and our 360 00:20:50,359 --> 00:20:53,960 Speaker 1: thoughts of course go to us family such tragic news. 361 00:20:53,960 --> 00:20:57,680 Speaker 1: Thank you for that update. I want to move on 362 00:20:57,800 --> 00:21:01,000 Speaker 1: to the I p O market, now on pace for 363 00:21:01,280 --> 00:21:04,640 Speaker 1: one of its worst years in decades after an incredible 364 00:21:04,640 --> 00:21:08,080 Speaker 1: amount of deal activity of course last year in one, 365 00:21:08,200 --> 00:21:11,840 Speaker 1: leaving many companies with few options as they waiting for 366 00:21:11,840 --> 00:21:14,199 Speaker 1: the market to calm down, joining us Now Equities and 367 00:21:14,240 --> 00:21:17,720 Speaker 1: founder and chief strategy officer Phil has Let. So, Phil, 368 00:21:17,760 --> 00:21:19,720 Speaker 1: I believe last time you were on the show, you 369 00:21:19,760 --> 00:21:22,399 Speaker 1: said the I p O window is totally sailed shut 370 00:21:22,480 --> 00:21:25,800 Speaker 1: and not opening for a very long time. Do you 371 00:21:25,840 --> 00:21:28,280 Speaker 1: still believe that? Yeah, Well, it must have been a 372 00:21:28,320 --> 00:21:31,280 Speaker 1: heck of a party at the Pliat burning Man, because 373 00:21:31,280 --> 00:21:34,080 Speaker 1: it's been incredibly quiet this morning and today with news. 374 00:21:34,160 --> 00:21:36,840 Speaker 1: You know, we normally see kind of a stampeding of 375 00:21:36,920 --> 00:21:39,000 Speaker 1: ip O news and big funding rounds on the day 376 00:21:39,000 --> 00:21:41,400 Speaker 1: after Labor Day. Companies really eager to get out there 377 00:21:41,400 --> 00:21:45,000 Speaker 1: and announce something big, and we've seen barely anything. So, um, 378 00:21:45,040 --> 00:21:47,119 Speaker 1: I'm a bit surprised that, you know, kind of post 379 00:21:47,119 --> 00:21:49,880 Speaker 1: summer that there's still been a lot of activity. Um, 380 00:21:49,920 --> 00:21:51,480 Speaker 1: in fact, that we're kind of starting to see that 381 00:21:51,520 --> 00:21:53,080 Speaker 1: maybe some deals are getting done, but a little bit 382 00:21:53,119 --> 00:21:55,520 Speaker 1: more discreetly, maybe with a bit more structure. And so 383 00:21:55,640 --> 00:21:57,920 Speaker 1: I think that, you know, the thesis remains the same 384 00:21:57,960 --> 00:21:59,920 Speaker 1: that actually the ip O window is still pretty quiet, 385 00:22:00,400 --> 00:22:04,040 Speaker 1: and yet we're hearing that insta cart, for example, is 386 00:22:04,080 --> 00:22:08,160 Speaker 1: still considering going public this year. Why would a company 387 00:22:08,400 --> 00:22:13,280 Speaker 1: do this now when conditions are so unfavorable. Sure, I 388 00:22:13,320 --> 00:22:16,159 Speaker 1: think there's a subset of the private unicorn companies that 389 00:22:16,240 --> 00:22:18,760 Speaker 1: have such a large brand and such a large cache 390 00:22:18,800 --> 00:22:21,600 Speaker 1: that really the only way to continue elevating awareness and 391 00:22:21,640 --> 00:22:24,560 Speaker 1: creating a currency to buy smaller companies is really to 392 00:22:24,560 --> 00:22:27,600 Speaker 1: go public. Um. Insta Cart, I guess continue to raise 393 00:22:27,640 --> 00:22:29,400 Speaker 1: money in the private markets, but if they really want 394 00:22:29,400 --> 00:22:31,880 Speaker 1: to have extra prominence, uh, they are going to tap 395 00:22:31,880 --> 00:22:34,760 Speaker 1: the public markets. And they've also kind of created a 396 00:22:34,760 --> 00:22:37,159 Speaker 1: clean path to do so by kind of already knocking 397 00:22:37,160 --> 00:22:40,720 Speaker 1: down their valuation publicly having a very senior executive team, 398 00:22:40,720 --> 00:22:43,480 Speaker 1: including the CEO. UM and so I kind of think 399 00:22:43,520 --> 00:22:45,320 Speaker 1: of it's similar to how maybe a company like Ali 400 00:22:45,359 --> 00:22:48,040 Speaker 1: Baba or Facebook, maybe even a tougher environment, still elected 401 00:22:48,080 --> 00:22:51,639 Speaker 1: to go public. So how long do you think the 402 00:22:51,680 --> 00:22:53,880 Speaker 1: I p O window is going to be frozen? Shot, 403 00:22:53,920 --> 00:22:56,320 Speaker 1: double locked? As you say, you know, what, what is 404 00:22:56,359 --> 00:22:59,800 Speaker 1: the time frame that company should be planning for? Yeah, 405 00:22:59,840 --> 00:23:02,359 Speaker 1: I keep pushing it out more and more. Um, I 406 00:23:02,440 --> 00:23:04,720 Speaker 1: kind of think of what's happening now is really what 407 00:23:04,800 --> 00:23:07,200 Speaker 1: happened during the start of COVID, but it's just being 408 00:23:07,200 --> 00:23:09,639 Speaker 1: stretched over a longer period of time. If your call 409 00:23:09,760 --> 00:23:12,240 Speaker 1: kind of April May and June of twenty I p 410 00:23:12,400 --> 00:23:14,480 Speaker 1: O s, we're pretty much at zero, and what we're 411 00:23:14,480 --> 00:23:16,400 Speaker 1: seeing is almost just kind of a stretching out of that. 412 00:23:16,640 --> 00:23:18,320 Speaker 1: And what you now see is basically a game of 413 00:23:18,400 --> 00:23:21,080 Speaker 1: chicken between investors and allocators and I p o s 414 00:23:21,200 --> 00:23:23,160 Speaker 1: and companies that are ready to go public. If you're 415 00:23:23,160 --> 00:23:26,320 Speaker 1: a company that is profitable and good stewards of your capital, 416 00:23:26,560 --> 00:23:28,560 Speaker 1: you can wait as long as you need to um. 417 00:23:28,560 --> 00:23:31,040 Speaker 1: But if your company that elected to grow at all 418 00:23:31,080 --> 00:23:33,360 Speaker 1: costs and burn cash, you're going to have to become 419 00:23:33,440 --> 00:23:35,800 Speaker 1: markets at some point. What I actually think may evolve 420 00:23:35,840 --> 00:23:37,359 Speaker 1: a bit more is that will see some more m 421 00:23:37,359 --> 00:23:40,880 Speaker 1: and a activity both for strategic investors and also from 422 00:23:41,080 --> 00:23:43,959 Speaker 1: private equity investors that see some opportunities where deals can 423 00:23:43,960 --> 00:23:46,000 Speaker 1: get done with a bit more structure, a little less 424 00:23:46,000 --> 00:23:48,560 Speaker 1: public scrutiny. So I think we expect that to pick 425 00:23:48,640 --> 00:23:51,440 Speaker 1: up quite considerably in absence of an I p O 426 00:23:51,600 --> 00:23:54,600 Speaker 1: market that's active. I wonder how many more valuation cutdowns 427 00:23:54,680 --> 00:23:57,080 Speaker 1: we'll see, though I can imagine that You've got a 428 00:23:57,080 --> 00:24:00,920 Speaker 1: lot of vcs out there sitting on port oil companies 429 00:24:00,920 --> 00:24:05,440 Speaker 1: that have valuations that are just not right for the times. Absolutely, 430 00:24:05,720 --> 00:24:07,639 Speaker 1: what I think will start happening is more and more 431 00:24:07,680 --> 00:24:09,879 Speaker 1: deals that are actually happening kind of behind the scenes, 432 00:24:09,880 --> 00:24:11,719 Speaker 1: are deals with structure, and what I mean by that 433 00:24:11,840 --> 00:24:15,040 Speaker 1: is that investors are getting much more preferential terms for 434 00:24:15,080 --> 00:24:16,919 Speaker 1: the money that they're putting into companies. I think we 435 00:24:17,000 --> 00:24:19,800 Speaker 1: just saw recently that Joker is planning to raise money 436 00:24:19,800 --> 00:24:22,480 Speaker 1: at just slight valuation bump up from their last round, 437 00:24:22,640 --> 00:24:26,159 Speaker 1: but it also basically gives a guaranteed return to the 438 00:24:26,160 --> 00:24:28,560 Speaker 1: new investors. More and more those deals are happening, and 439 00:24:28,840 --> 00:24:30,840 Speaker 1: here at Equities and we're also hearing of those deals 440 00:24:30,880 --> 00:24:33,200 Speaker 1: happening as well, and so I think those will continue. 441 00:24:33,240 --> 00:24:35,000 Speaker 1: But to your point, there's a lot of investors that 442 00:24:35,160 --> 00:24:37,320 Speaker 1: do you want to see some exit and some some 443 00:24:37,400 --> 00:24:40,000 Speaker 1: realization of the investments they made. It's becoming very hard 444 00:24:40,040 --> 00:24:42,920 Speaker 1: for ventual capital firms to raise their next fund when 445 00:24:42,920 --> 00:24:46,080 Speaker 1: they can't actually return capital to their limited partners, and 446 00:24:46,119 --> 00:24:48,360 Speaker 1: that's you know, creating some very tense board meetings, which 447 00:24:48,359 --> 00:24:50,240 Speaker 1: again is something we've talked about and kind of harped on, 448 00:24:50,320 --> 00:24:52,439 Speaker 1: but I think that the factor remains true. All right, 449 00:24:52,560 --> 00:24:55,320 Speaker 1: Phil has Let Equities and founder, chief strategy Officer. A 450 00:24:55,440 --> 00:24:58,479 Speaker 1: great to have you back, Phil. As always coming up, 451 00:24:58,480 --> 00:25:01,119 Speaker 1: it has been a hundred eighty da since President Biden 452 00:25:01,200 --> 00:25:04,560 Speaker 1: signed that Executive Order on digital assets. What does the 453 00:25:04,600 --> 00:25:08,000 Speaker 1: rest of the government think about it? Christin Smith the 454 00:25:08,000 --> 00:25:26,560 Speaker 1: Blockchain Association joins us. Next, this is Bloomberg a slew 455 00:25:26,680 --> 00:25:29,200 Speaker 1: of reports or do this week to the White House 456 00:25:29,240 --> 00:25:33,320 Speaker 1: stemming from President Joe Biden's Executive Order on digital assets, 457 00:25:33,320 --> 00:25:37,600 Speaker 1: including one on the future of money payment systems and 458 00:25:37,920 --> 00:25:41,640 Speaker 1: the implications of the Central Bank digital currency. Though these 459 00:25:41,640 --> 00:25:44,800 Speaker 1: reports likely won't be released to the public till mid September, 460 00:25:45,040 --> 00:25:47,240 Speaker 1: let's talk about what we can expect with Kristin Smith, 461 00:25:47,280 --> 00:25:50,280 Speaker 1: executive director of the Blockchain Association, along with our crypto 462 00:25:50,320 --> 00:25:54,800 Speaker 1: contributor Shannali Boss. Thank you both ladies for joining us. So, Christen, 463 00:25:54,960 --> 00:25:58,120 Speaker 1: what do you think we're going to find in these reports? Well, 464 00:25:58,160 --> 00:26:00,640 Speaker 1: I think it's really interesting. I mean, this is the 465 00:26:00,760 --> 00:26:04,920 Speaker 1: first time that the federal government has looked at crypto 466 00:26:05,000 --> 00:26:08,560 Speaker 1: regulation from a comprehensive perspective. You know, as you recall, 467 00:26:09,000 --> 00:26:12,320 Speaker 1: President Biden issued this executive order back in March. He 468 00:26:12,480 --> 00:26:16,400 Speaker 1: gave various federal agencies, both financial regulators and some non 469 00:26:16,440 --> 00:26:21,160 Speaker 1: financial regulators, mandates to look at different issues, to look 470 00:26:21,200 --> 00:26:23,359 Speaker 1: at some of the concerns we have with the space, 471 00:26:23,400 --> 00:26:26,720 Speaker 1: but also some of the benefits that the crypto industry 472 00:26:26,760 --> 00:26:30,479 Speaker 1: and sector could provide, and come up with recommendations about 473 00:26:30,840 --> 00:26:35,280 Speaker 1: what types of regulation are needed going forward. So I 474 00:26:35,320 --> 00:26:38,520 Speaker 1: think that we're going to see a fairly balanced analysis. 475 00:26:38,600 --> 00:26:42,560 Speaker 1: I think we'll see some things around competitiveness and inclusion 476 00:26:42,680 --> 00:26:45,280 Speaker 1: that the industry is going to be very excited about. UM. 477 00:26:45,320 --> 00:26:49,000 Speaker 1: I do think we'll see some um concerns around, you know, 478 00:26:49,040 --> 00:26:51,960 Speaker 1: sort of the lack of regulation of dollar back stable coins, 479 00:26:52,040 --> 00:26:54,640 Speaker 1: which is something that has been discussed for a long time, 480 00:26:54,920 --> 00:26:57,960 Speaker 1: maybe the need for some spot market regulation. But overall, 481 00:26:58,080 --> 00:27:02,160 Speaker 1: this should provide a pretty substance have roadmap for policymakers 482 00:27:02,160 --> 00:27:06,480 Speaker 1: should they choose to accept it as they consider legislation 483 00:27:06,560 --> 00:27:12,080 Speaker 1: this fall and into now. Block Tin Association has had 484 00:27:12,119 --> 00:27:15,119 Speaker 1: a state at the table with policymakers. How have they 485 00:27:15,160 --> 00:27:20,960 Speaker 1: been processing this crypto winter and all of the drama. Yeah, well, listen, 486 00:27:21,000 --> 00:27:24,159 Speaker 1: I think you know there's an understanding that crypto is 487 00:27:24,200 --> 00:27:26,720 Speaker 1: here to stay right like that wasn't always a concern, 488 00:27:26,800 --> 00:27:30,560 Speaker 1: And even in this market downturn, I think policymakers have 489 00:27:30,800 --> 00:27:34,320 Speaker 1: even more incentive to try to do something in a space, 490 00:27:34,440 --> 00:27:36,600 Speaker 1: especially if you look at the beginning of the summer. 491 00:27:36,960 --> 00:27:39,720 Speaker 1: We had the collapse of Tera Luna, We had a 492 00:27:39,720 --> 00:27:42,119 Speaker 1: couple of bankruptcies, we had sort of the three or 493 00:27:42,280 --> 00:27:44,720 Speaker 1: was Capital. You know, there were a bunch of events 494 00:27:44,760 --> 00:27:48,280 Speaker 1: that had big impacts on consumers, and instead of pushing 495 00:27:48,320 --> 00:27:51,720 Speaker 1: away from this space, policymaker said, all right, this is 496 00:27:51,760 --> 00:27:53,399 Speaker 1: a space where we need to make sure that we 497 00:27:53,520 --> 00:27:57,160 Speaker 1: fill regulatory gaps. We need to better understand what regulations 498 00:27:57,160 --> 00:27:59,399 Speaker 1: already exists, We need to figure out what are the 499 00:27:59,400 --> 00:28:02,960 Speaker 1: options going forward. And so you know, Congress has been 500 00:28:03,280 --> 00:28:06,399 Speaker 1: um pursuing several different bills this year. We saw the 501 00:28:06,440 --> 00:28:09,000 Speaker 1: one that's still a brand bill earlier the spring. We've 502 00:28:09,000 --> 00:28:11,520 Speaker 1: seen the Digital Commodity Exchange Act in the House. We 503 00:28:11,600 --> 00:28:14,040 Speaker 1: have a new bill in the Senate that attempts to 504 00:28:14,080 --> 00:28:17,320 Speaker 1: regulate this space. So they've been generating their own ideas 505 00:28:17,359 --> 00:28:19,840 Speaker 1: and I think, you know, the executive order process and 506 00:28:19,920 --> 00:28:24,200 Speaker 1: Congress's effort are going to converge quite nicely. To have 507 00:28:24,240 --> 00:28:30,359 Speaker 1: just an overall more educated policymaking group that is looking 508 00:28:30,400 --> 00:28:32,720 Speaker 1: at this in a thoughtful, comprehensive way, in a way 509 00:28:32,800 --> 00:28:36,200 Speaker 1: that you know, moves the ball forward, but not so 510 00:28:36,400 --> 00:28:39,000 Speaker 1: rushed that we get the policy wrong. And so I 511 00:28:39,240 --> 00:28:41,240 Speaker 1: think we're really setting the stage up to get a 512 00:28:41,240 --> 00:28:44,800 Speaker 1: good bipartisan compromise and and fill those regulatory gaps. What 513 00:28:44,840 --> 00:28:47,840 Speaker 1: about the agencies and regulators themselves, Because even though the 514 00:28:47,840 --> 00:28:50,400 Speaker 1: Executive Order was seen as a really big step for 515 00:28:50,480 --> 00:28:53,560 Speaker 1: the industry, a common critique I get when I'm talking 516 00:28:53,560 --> 00:28:56,920 Speaker 1: to market participants is that it really embolds in each 517 00:28:56,960 --> 00:28:59,520 Speaker 1: of the agencies separately, that there's a lot of conflict 518 00:28:59,560 --> 00:29:03,120 Speaker 1: among them on how they define certain issues. To take 519 00:29:03,240 --> 00:29:05,920 Speaker 1: the sec and the securities issue when you come to 520 00:29:05,960 --> 00:29:09,200 Speaker 1: coin base in particular, So do you see the agency's 521 00:29:09,320 --> 00:29:14,000 Speaker 1: consolidating power to one agency or another, and how do 522 00:29:14,040 --> 00:29:17,880 Speaker 1: you believe that Congress may enable that or or concept 523 00:29:17,960 --> 00:29:21,520 Speaker 1: with that? Yeah, well, the Executive Order did require cross 524 00:29:21,600 --> 00:29:26,320 Speaker 1: agency collaboration on different topics. UM. I do think the 525 00:29:26,480 --> 00:29:30,040 Speaker 1: core issue out there when it comes regulating the crypto markets, 526 00:29:30,080 --> 00:29:32,400 Speaker 1: like particularly the bitcoin markets. You know that those that 527 00:29:32,400 --> 00:29:36,400 Speaker 1: are truly commodities, is that today, neither the SEC or 528 00:29:36,480 --> 00:29:39,640 Speaker 1: the CFTC has jurisdiction in this space. Right What we 529 00:29:39,680 --> 00:29:41,800 Speaker 1: need is Congress to come in and say, all right, 530 00:29:42,080 --> 00:29:45,640 Speaker 1: we have this commodity spot market. Other commodity spot markets, 531 00:29:45,640 --> 00:29:48,160 Speaker 1: like the grain market for example, they don't have any 532 00:29:48,240 --> 00:29:50,920 Speaker 1: regulating federal regulators. So we need to find a new 533 00:29:50,960 --> 00:29:54,680 Speaker 1: federal regulator to come in and regulate the spot market. 534 00:29:54,760 --> 00:29:57,680 Speaker 1: And so I think Congress has a choice. What's interesting 535 00:29:58,000 --> 00:29:59,959 Speaker 1: is that the three major proposals that have been at 536 00:30:00,000 --> 00:30:02,800 Speaker 1: reduced and Congress so far have all pointed to the 537 00:30:02,800 --> 00:30:07,480 Speaker 1: CFTC as being the appropriate regulator for the crypto industry, 538 00:30:07,800 --> 00:30:11,959 Speaker 1: probably because they already have regulate regulatory powers over crypto 539 00:30:12,080 --> 00:30:16,120 Speaker 1: futures um and on fraud and manipulation in the underlying markets. 540 00:30:16,200 --> 00:30:18,400 Speaker 1: So I think that that's probably the place that's going 541 00:30:18,440 --> 00:30:20,080 Speaker 1: to end up. It could also go to the SEC 542 00:30:20,200 --> 00:30:22,520 Speaker 1: as well, but Congress seems to think that they want 543 00:30:22,520 --> 00:30:24,800 Speaker 1: to give this authority to the CFTC. And what does 544 00:30:24,840 --> 00:30:27,920 Speaker 1: it mean for the SEC if more of that moves over, 545 00:30:27,960 --> 00:30:30,000 Speaker 1: because there's so many things that they were looking at, 546 00:30:30,400 --> 00:30:35,280 Speaker 1: n f t s, other securities issuances for potentially here 547 00:30:35,720 --> 00:30:38,800 Speaker 1: do you think the SEC ultimately loses some power over 548 00:30:38,840 --> 00:30:43,120 Speaker 1: these markets as they've already started on the enforcement path. Yeah. Well, 549 00:30:43,160 --> 00:30:46,040 Speaker 1: I would argue they don't have any authority over um, 550 00:30:46,160 --> 00:30:48,600 Speaker 1: you know, sort of the pure crypto commodity markets, right, 551 00:30:48,640 --> 00:30:51,680 Speaker 1: I mean, the SEC has has authority over things that 552 00:30:51,680 --> 00:30:56,640 Speaker 1: are securities, and you can use blockchain based systems to 553 00:30:56,960 --> 00:31:02,440 Speaker 1: issue you know, equity to organized shares of stock um. 554 00:31:02,480 --> 00:31:05,680 Speaker 1: You know, when you have something that's truly a security, 555 00:31:05,920 --> 00:31:08,320 Speaker 1: the SEC is obviously going to have a role to 556 00:31:08,360 --> 00:31:11,880 Speaker 1: play there. I think the problem has been for innovators 557 00:31:12,000 --> 00:31:14,160 Speaker 1: is that there really is a big gray area there. 558 00:31:14,320 --> 00:31:16,800 Speaker 1: It's hard to know when they apply. And what we 559 00:31:16,880 --> 00:31:19,920 Speaker 1: just need is a framework that addresses these concerns. And 560 00:31:20,000 --> 00:31:21,760 Speaker 1: you know, the stakes today are pretty high from a 561 00:31:21,760 --> 00:31:24,960 Speaker 1: regulars very perspective. Right, If you're deemed a security, you're 562 00:31:25,000 --> 00:31:28,240 Speaker 1: regulated by the SEC. If you're deemed a commodity, a 563 00:31:28,560 --> 00:31:31,800 Speaker 1: crypto asset commodity, there's no regulator at all. So I 564 00:31:31,840 --> 00:31:35,840 Speaker 1: think by having a regulator, perhaps the CFTC, to regulate 565 00:31:35,840 --> 00:31:39,440 Speaker 1: crypto commodities, then there's still going to be consumer protection, 566 00:31:39,480 --> 00:31:41,560 Speaker 1: there's still going to be market surveillance, there's still going 567 00:31:41,600 --> 00:31:47,440 Speaker 1: to be uh, disclosures that help give consumers more information 568 00:31:47,440 --> 00:31:50,480 Speaker 1: and investors more information, and so it won't be such 569 00:31:50,520 --> 00:31:53,520 Speaker 1: a high stakes decision if something is a security or commodity. 570 00:31:53,560 --> 00:31:55,640 Speaker 1: So I think that will help pave the way for 571 00:31:55,680 --> 00:31:58,760 Speaker 1: a more constructive dialogue if Congresses indeed give the c 572 00:31:58,920 --> 00:32:03,360 Speaker 1: FTC jurisdiction. All right, christ And Smith, executive director of 573 00:32:03,600 --> 00:32:06,880 Speaker 1: the Blockchain Association, always appreciate you joining us and taking 574 00:32:06,960 --> 00:32:10,640 Speaker 1: us inside these rooms a bit alongside our own shi. 575 00:32:19,640 --> 00:32:22,960 Speaker 1: With NFL season kicking off, we are exploring the intersection 576 00:32:23,000 --> 00:32:27,120 Speaker 1: of sports and technology all week long. Today we're starting 577 00:32:27,120 --> 00:32:31,200 Speaker 1: with sports betting, now legal in thirty one states with Kansas, 578 00:32:31,440 --> 00:32:34,400 Speaker 1: I mean, the most recent to join the field. Draftkins 579 00:32:34,520 --> 00:32:37,960 Speaker 1: and rival FanDuel our position to maintain their leadership of 580 00:32:38,040 --> 00:32:41,800 Speaker 1: daily fantasy sports, a market that has ballooned to four 581 00:32:41,960 --> 00:32:46,160 Speaker 1: billion dollars dollars in terms of annual entroyphees Draftkins predicting 582 00:32:46,360 --> 00:32:49,000 Speaker 1: this football season will be the biggest moment yet for 583 00:32:49,040 --> 00:32:53,360 Speaker 1: sports bettors. Joining us to discuss CEO Jason Robbins himself, Jason, 584 00:32:53,400 --> 00:32:55,240 Speaker 1: great to have you back with us. Give us a 585 00:32:55,280 --> 00:32:57,640 Speaker 1: status update on the numbers and just how much you 586 00:32:57,760 --> 00:33:02,960 Speaker 1: think NFL kickoff, well pick start and already booming industry. Well, 587 00:33:03,000 --> 00:33:05,680 Speaker 1: I mean this is our holiday season, UM. You know, 588 00:33:05,760 --> 00:33:08,360 Speaker 1: to make an analogy, so uh, you know this is 589 00:33:08,400 --> 00:33:10,960 Speaker 1: when everything, all the numbers go up and it's a 590 00:33:11,000 --> 00:33:13,280 Speaker 1: fun time a year. A lot of work from the 591 00:33:13,320 --> 00:33:15,719 Speaker 1: team goes into preparing for this. We've launched a lot 592 00:33:15,800 --> 00:33:18,560 Speaker 1: of new features and products of the last six days, 593 00:33:19,240 --> 00:33:22,760 Speaker 1: including our new Rainmakers football game, which I'm really excited 594 00:33:22,800 --> 00:33:25,560 Speaker 1: about and UM Week one is going to be fantastic. 595 00:33:25,560 --> 00:33:29,200 Speaker 1: I'm really looking forward to. You're also launching a new 596 00:33:29,280 --> 00:33:34,360 Speaker 1: blockchain initiative whereby UM betters will be able to collect 597 00:33:34,400 --> 00:33:37,680 Speaker 1: digital player cards. How old this work and how big 598 00:33:37,720 --> 00:33:44,600 Speaker 1: do you think blockchain and web three will be for sports? Well, Rainmakers, 599 00:33:44,640 --> 00:33:47,520 Speaker 1: which is the product referring to UM, is I think 600 00:33:47,560 --> 00:33:50,719 Speaker 1: one of the most innovative things we've done ever. UM. 601 00:33:50,720 --> 00:33:53,120 Speaker 1: It takes fantasy sports, which you know, the idea is 602 00:33:53,160 --> 00:33:55,640 Speaker 1: you're like a GM and you you know, you have 603 00:33:55,720 --> 00:33:59,840 Speaker 1: players that that you get UM and it immortalizes that 604 00:34:00,000 --> 00:34:02,280 Speaker 1: ownership in the form of you know, an n f 605 00:34:02,320 --> 00:34:05,360 Speaker 1: T on the blockchain, So instead of drafting a player, 606 00:34:05,520 --> 00:34:07,400 Speaker 1: you buy that player's n f T and you can 607 00:34:07,440 --> 00:34:10,480 Speaker 1: play that in a game. UM. So it's really exciting 608 00:34:10,520 --> 00:34:13,560 Speaker 1: because it mixes things that our customers are really interested in, 609 00:34:13,640 --> 00:34:15,200 Speaker 1: which is the game and this sort of you know, 610 00:34:15,280 --> 00:34:17,600 Speaker 1: idea of being able to pick your favorite team or 611 00:34:17,640 --> 00:34:19,720 Speaker 1: your team that you think is going to win UM 612 00:34:19,760 --> 00:34:22,680 Speaker 1: with also a strong interest our our customers have shown 613 00:34:22,680 --> 00:34:26,120 Speaker 1: in blockchain and collectibles. So UM, I think it's really 614 00:34:26,280 --> 00:34:28,680 Speaker 1: a new way of looking at fantasy sports. We think 615 00:34:28,680 --> 00:34:31,760 Speaker 1: it's the future of fantasy sports, and we're really excited 616 00:34:31,760 --> 00:34:34,000 Speaker 1: by some of the early traction we're seeing. There's sales 617 00:34:34,040 --> 00:34:36,759 Speaker 1: that are going off for a big dollars on the marketplace. 618 00:34:36,840 --> 00:34:40,600 Speaker 1: Right now, Vandel seems to have pulled ahead of the 619 00:34:40,640 --> 00:34:44,040 Speaker 1: industry in terms of market share. What's your play to 620 00:34:44,160 --> 00:34:47,640 Speaker 1: counter that, Well, you know, it's definitely seasonal. We typically 621 00:34:47,680 --> 00:34:50,279 Speaker 1: do better in the NFL season where we have a 622 00:34:50,320 --> 00:34:52,719 Speaker 1: big boost of customers UM, and if you look at 623 00:34:52,719 --> 00:34:54,600 Speaker 1: the eye gaming side, we're ahead of them by a 624 00:34:54,600 --> 00:34:56,560 Speaker 1: little bit. So we're just gonna keep trying to have 625 00:34:56,640 --> 00:34:59,080 Speaker 1: the best product UM. You know, for us, we think 626 00:34:59,120 --> 00:35:02,320 Speaker 1: product is the what ultimately will will win the customers 627 00:35:02,360 --> 00:35:04,759 Speaker 1: over UM, and we think the more people that we 628 00:35:04,760 --> 00:35:06,360 Speaker 1: we get to show some of the new things that 629 00:35:06,400 --> 00:35:08,840 Speaker 1: we launch this NFL season, Um, the more they'll be 630 00:35:08,880 --> 00:35:12,000 Speaker 1: excited about keeping their play with DraftKings. So UM, we're 631 00:35:12,040 --> 00:35:14,120 Speaker 1: just gonna kind of keep you know, focusing on product, 632 00:35:14,160 --> 00:35:16,959 Speaker 1: focusing on customer experience. UM. We think being the most 633 00:35:16,960 --> 00:35:20,560 Speaker 1: customer focused and customer centric, which entails having the best 634 00:35:20,560 --> 00:35:23,560 Speaker 1: product and overall experience, is what will win the day. Obviously, 635 00:35:23,640 --> 00:35:27,960 Speaker 1: bigger business has has also meant at times some bigger losses. 636 00:35:28,000 --> 00:35:29,680 Speaker 1: Some of your competitors have said they're going to pull 637 00:35:29,719 --> 00:35:33,080 Speaker 1: back on AD spend this year. How is your spending 638 00:35:33,160 --> 00:35:37,920 Speaker 1: strategy changing as the market evolves and uh, and also 639 00:35:38,080 --> 00:35:41,520 Speaker 1: you know we're heading into a potentially prolonged downturn. Well, 640 00:35:41,600 --> 00:35:44,880 Speaker 1: we've always been very you know, data driven in our 641 00:35:44,960 --> 00:35:48,840 Speaker 1: decisions around spending. So UM, we look for paybacks that 642 00:35:48,840 --> 00:35:51,759 Speaker 1: that meet our threshold, which in case the customer acquisition 643 00:35:51,880 --> 00:35:55,120 Speaker 1: is typically three year payback or less. Um. Same thing 644 00:35:55,200 --> 00:35:57,319 Speaker 1: on new states we launch, we typically look for a 645 00:35:57,320 --> 00:36:00,200 Speaker 1: two to three year path to profitability timeline. So I 646 00:36:00,200 --> 00:36:02,359 Speaker 1: haven't really changed that. I will say though that with 647 00:36:02,400 --> 00:36:05,279 Speaker 1: some of the competitors pulling back, UM, you know, we're 648 00:36:05,280 --> 00:36:08,200 Speaker 1: able to achieve great results without having to be quite 649 00:36:08,239 --> 00:36:11,200 Speaker 1: as aggressive on the advertising promotion front. We're still being 650 00:36:11,280 --> 00:36:13,560 Speaker 1: very aggressive. This is an important time of year, so 651 00:36:13,600 --> 00:36:15,920 Speaker 1: we're making sure that we have, you know, a presence 652 00:36:15,960 --> 00:36:18,160 Speaker 1: out there, and we get in front of customers and 653 00:36:18,160 --> 00:36:20,279 Speaker 1: we get good offers that are interesting to them. But 654 00:36:20,680 --> 00:36:23,640 Speaker 1: I do think the competitive environment is rationalized quite a 655 00:36:23,640 --> 00:36:25,440 Speaker 1: bit year over year. If you compare it to this 656 00:36:25,480 --> 00:36:27,359 Speaker 1: time last year, it's really just a night and day. 657 00:36:27,600 --> 00:36:30,360 Speaker 1: We also got a big election coming up. You've got 658 00:36:30,520 --> 00:36:35,399 Speaker 1: some proposals on various ballots in California. In particular, UM 659 00:36:35,480 --> 00:36:38,440 Speaker 1: California could become the largest sports betting market in the 660 00:36:38,480 --> 00:36:41,560 Speaker 1: world next to the UK. UM you look back to 661 00:36:41,640 --> 00:36:44,920 Speaker 1: proposal that would allow draft kings to offer sports betting 662 00:36:45,239 --> 00:36:49,440 Speaker 1: anywhere in the state in partnership with various Native American tribes. 663 00:36:49,800 --> 00:36:53,319 Speaker 1: There are various other proposals that are countering this. You know, 664 00:36:53,440 --> 00:36:57,120 Speaker 1: what is your polling show showing you about the likelihood 665 00:36:57,480 --> 00:36:59,600 Speaker 1: of your proposal passing? And how much are you prepared 666 00:36:59,640 --> 00:37:02,680 Speaker 1: to spend between now and November. We're seeing really good 667 00:37:02,680 --> 00:37:05,200 Speaker 1: things in the polling. You know, obviously there's a lot 668 00:37:05,280 --> 00:37:07,640 Speaker 1: that's going to occur between now and the election. It's 669 00:37:07,640 --> 00:37:10,200 Speaker 1: still about two months away, but everything we're seeing in 670 00:37:10,239 --> 00:37:13,319 Speaker 1: the data is great, and we think more importantly, UM, 671 00:37:13,480 --> 00:37:16,839 Speaker 1: policy wise, it makes sense. It's something that Californians want. 672 00:37:17,160 --> 00:37:19,840 Speaker 1: Those that are into sports betting in California, most of 673 00:37:19,840 --> 00:37:22,080 Speaker 1: them are already doing it anyway in the illegal market, 674 00:37:22,120 --> 00:37:25,560 Speaker 1: which is generating no tax revenue and has no consumer protections. 675 00:37:25,920 --> 00:37:28,640 Speaker 1: And our initiative will generate hundreds of millions of dollars 676 00:37:28,719 --> 00:37:31,520 Speaker 1: a year to help combat homelessness and mental health issues 677 00:37:31,560 --> 00:37:34,799 Speaker 1: in California. And we also partner with tribes that are 678 00:37:34,800 --> 00:37:36,520 Speaker 1: getting a cut of it as well. It will help 679 00:37:36,640 --> 00:37:39,400 Speaker 1: especially a lot of the smaller tribes, um that you 680 00:37:39,440 --> 00:37:41,759 Speaker 1: know aren't as maybe fortunate as some of the ones 681 00:37:41,800 --> 00:37:44,399 Speaker 1: that the bigger casinos do well and and and really 682 00:37:44,440 --> 00:37:47,600 Speaker 1: will help with education programs and other things for those tribes. 683 00:37:47,640 --> 00:37:50,520 Speaker 1: So we think it's great for the California sports better, 684 00:37:50,560 --> 00:37:52,759 Speaker 1: it's great for those that want to see real help 685 00:37:52,840 --> 00:37:55,839 Speaker 1: on the homelessness and mental health issues, and it's great 686 00:37:55,840 --> 00:37:58,080 Speaker 1: for the tribe. So UM, we're really excited about it. 687 00:37:58,120 --> 00:38:01,879 Speaker 1: We think it's great policy for California. Polling numbers look good, UM, 688 00:38:01,880 --> 00:38:03,880 Speaker 1: but there's a lot of time between now and the elections. 689 00:38:03,960 --> 00:38:05,920 Speaker 1: We just gotta keep getting our message out there and 690 00:38:06,120 --> 00:38:09,520 Speaker 1: hopefully it will resonate with voters. One one word answer, Jason, 691 00:38:09,560 --> 00:38:13,160 Speaker 1: who are you putting your money on for the NFL playoffs? Uh? 692 00:38:13,239 --> 00:38:16,800 Speaker 1: You know, I'm a Patriots fan, so I gotta say Patriots. 693 00:38:16,800 --> 00:38:19,719 Speaker 1: I'm putting my money on them, but I'll be rooting um. 694 00:38:19,760 --> 00:38:21,520 Speaker 1: But you know, there's a lot of great teams this year. 695 00:38:21,560 --> 00:38:24,040 Speaker 1: I'm really excited about the opening game. I think it's 696 00:38:24,080 --> 00:38:26,000 Speaker 1: going to be awesome. And you know, it's a really 697 00:38:26,000 --> 00:38:28,560 Speaker 1: good season, a lot of great play. NFL content has 698 00:38:28,600 --> 00:38:33,120 Speaker 1: never been better. See DraftKings. Great to have you. Thank you. 699 00:38:33,239 --> 00:38:35,520 Speaker 1: We are at Apple tomorrow. You don't want to miss 700 00:38:35,520 --> 00:38:37,800 Speaker 1: our special show. This is Bloomberg