WEBVTT - Paramount Skydance CEO David Ellison at Bloomberg Screentime 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, podcasts, radio news. 0:00:07.800 --> 0:00:10.120 Let's go live now to LA where Lucas is speaking 0:00:10.160 --> 0:00:12.960 with Paramount Skuidance chairman and CEO David Ellison. 0:00:13.360 --> 0:00:17.160 We got to start with Paramount. You chase this company 0:00:17.440 --> 0:00:21.639 for a couple of years, if not longer. If you 0:00:21.680 --> 0:00:23.480 look at what they own, they have a bunch of 0:00:23.560 --> 0:00:25.840 cable networks that have been in decline for almost as 0:00:25.880 --> 0:00:27.760 long as I've been doing my job. They have a 0:00:27.800 --> 0:00:31.319 movie studio that is by most metrics, the last place 0:00:31.360 --> 0:00:34.360 movie studios the last few years at a streaming service 0:00:34.400 --> 0:00:36.400 that in terms of at least engagement is sort of 0:00:36.400 --> 0:00:39.560 in the third tier. So why were you so interested 0:00:39.600 --> 0:00:42.440 in what do you see in the company that investors 0:00:42.440 --> 0:00:44.080 and a lot of other potential bidders did not. 0:00:44.800 --> 0:00:46.600 Yeah, no, absolutely, it's a great question. 0:00:46.680 --> 0:00:49.159 First, I just want to say we couldn't be more 0:00:49.200 --> 0:00:51.040 excited about the place that we're starting with the asset 0:00:51.080 --> 0:00:54.240 that we purchased. Right, we have eighty million stream subscribers. 0:00:54.600 --> 0:00:57.320 We have one of the best basically content libraries in 0:00:57.360 --> 0:01:00.760 existence with Paramount and CBS. And I also think you 0:01:00.800 --> 0:01:03.240 need to distinguish when you talk about the linear business. Right, 0:01:03.520 --> 0:01:06.160 there's the cable, which yes, has been declined, but if 0:01:06.200 --> 0:01:08.520 you look at CBS, it actually is a remarkable asset 0:01:08.560 --> 0:01:12.360 that's been number one in prime time for seventeenth straight seasons, 0:01:12.800 --> 0:01:16.440 incredible sports rights which we're growing, and it's still highly 0:01:17.319 --> 0:01:20.679 highly profitable and cash flow perspective, and I agree with you, 0:01:20.880 --> 0:01:23.000 has not been run in the best manner for the 0:01:23.080 --> 0:01:26.240 last fifteen years. And for me, that's all opportunity, an 0:01:26.240 --> 0:01:31.280 opportunity to really reignite the creative content engines, to navigate 0:01:31.319 --> 0:01:34.119 the transition that's required to really turn Paramount Plus into 0:01:34.160 --> 0:01:36.240 a leader in streaming, and we believe we have the 0:01:36.280 --> 0:01:39.200 ability to both win in content and also become the 0:01:39.240 --> 0:01:43.959 most technologically capable media company to effectively navigate this transition. 0:01:44.640 --> 0:01:46.160 We always looked at you know, you can look at 0:01:46.160 --> 0:01:47.480 the music business ten years ago. 0:01:47.960 --> 0:01:49.320 We believe we can navigate that. 0:01:50.120 --> 0:01:52.920 We also really looked at where traditional tech companies were, 0:01:53.080 --> 0:01:55.720 you know, call it ten fifteen years ago, and there 0:01:55.760 --> 0:01:57.920 is a period of time where you know, the Microsoft's 0:01:57.920 --> 0:01:59.920 the world, the Oracles of the world were being disrupted 0:02:00.440 --> 0:02:03.960 and those companies that actually disrupted themselves and transitions are 0:02:03.960 --> 0:02:04.320 now all. 0:02:04.200 --> 0:02:06.320 Traded at all time highs. We believe we have the 0:02:06.320 --> 0:02:07.400 opportunity to do the same thing. 0:02:07.760 --> 0:02:10.040 So you talked about streaming. You mentioned that the eighty 0:02:10.040 --> 0:02:13.800 million subscribers earlier. You know, you look at it those 0:02:13.840 --> 0:02:15.880 those monthly Nielsen reports that people pay a lot of 0:02:15.880 --> 0:02:18.760 attention to. Right are youtubes that thirteen percent of TV 0:02:18.880 --> 0:02:21.720 viewing Netflix? Is that between eight and nine most months. 0:02:22.160 --> 0:02:25.040 Paramount When you combine Paramount plus and Pluto, it sort 0:02:25.040 --> 0:02:27.080 of sits around two percent. You can correct me if 0:02:27.120 --> 0:02:29.359 I'm off there. I think it's about right. So how 0:02:29.400 --> 0:02:31.720 do you get that up forget about thirteen or eight 0:02:31.800 --> 0:02:33.920 like Disney's in the four or five range. How do 0:02:33.960 --> 0:02:36.840 you get that up there? And you've talked about content 0:02:36.880 --> 0:02:38.960 and tech? Can you get specific on those fronts like 0:02:39.200 --> 0:02:39.960 what you're going to do? 0:02:40.320 --> 0:02:40.799 Absolutely? 0:02:40.840 --> 0:02:42.400 So, Look, one of the things we really believed in, 0:02:42.480 --> 0:02:45.600 like what I'll say, we're nine weeks in and I'm 0:02:45.639 --> 0:02:47.520 really proud of the momentum the team has been able 0:02:47.600 --> 0:02:49.680 to build over the last nine weeks. One of the 0:02:49.680 --> 0:02:51.960 things we really believe being the first owned and operated 0:02:51.960 --> 0:02:54.640 studio to my knowledge, since actually Walt Disney built his 0:02:54.720 --> 0:02:57.560 own shop, was that we would have the opportunity to 0:02:57.560 --> 0:03:00.320 really think long term that means long term partners with 0:03:00.360 --> 0:03:02.680 talent where you can basically say, don't just think about 0:03:02.680 --> 0:03:04.760 your next movie or your next show. We want to 0:03:04.760 --> 0:03:07.680 build a relationship with you over a decade and actually 0:03:07.720 --> 0:03:09.440 say we're going to make your next four or five movies, 0:03:09.480 --> 0:03:12.079 your next four or five series, and really think long 0:03:12.200 --> 0:03:14.960 term and invest for long term growth. The great news 0:03:14.960 --> 0:03:17.600 and when you look at we had to win in content, 0:03:17.680 --> 0:03:19.000 I think we're well on our way to being. 0:03:18.840 --> 0:03:19.560 Able to do that. 0:03:19.880 --> 0:03:22.240 If you look at specifics right, we're able to get 0:03:22.280 --> 0:03:24.120 the Obviously, the UFC deal is one of the first 0:03:24.120 --> 0:03:27.200 things we announced we came over. We're incredibly proud that 0:03:27.240 --> 0:03:29.639 Activision chose to partner with us on Call of Duty, 0:03:29.960 --> 0:03:32.400 which is the most successful video game franchise of all 0:03:32.440 --> 0:03:35.000 time with five hundred million units sold. We're able to 0:03:35.000 --> 0:03:38.120 have James Mangold come over and obviously call his one 0:03:38.120 --> 0:03:41.440 of the greatest filmmakers working to call Paramount home Boulder Light, 0:03:41.480 --> 0:03:44.000 who obviously had incredible hits like Weapons earlier this year. 0:03:44.520 --> 0:03:47.040 In addition to that, you know, we've been able to 0:03:47.040 --> 0:03:51.200 secure high profile packages for streaming with basically Paramount Plus. 0:03:51.600 --> 0:03:54.880 And then we're also really reinvigorating what we're doing in 0:03:54.960 --> 0:03:57.360 news with CBS News with the acquisition of the Free Press. 0:03:57.720 --> 0:04:00.600 And then I think when you look at CBS's broadcast lineup, 0:04:00.640 --> 0:04:03.400 I think we have the strongest lineup, maybe arguably in 0:04:03.400 --> 0:04:06.160 the company's history. And so I think we've really successfully 0:04:06.280 --> 0:04:08.600 reinvigorated the creative content engines of the company in a 0:04:08.600 --> 0:04:09.720 really short period of time. 0:04:10.120 --> 0:04:11.360 And I think we're going to be able to do 0:04:11.480 --> 0:04:12.440 that at scale. 0:04:12.800 --> 0:04:17.040 So that's one two. You know, I think when you 0:04:17.080 --> 0:04:19.880 look at kind of ten thousand feet, Silicon Valley has 0:04:19.920 --> 0:04:23.599 done an excellent job of really coming into Hollywood. I 0:04:23.600 --> 0:04:26.200 mean the platform that Netflix has built, the platform that 0:04:26.279 --> 0:04:29.359 basically Amazon is built, and these are incredible companies. 0:04:29.320 --> 0:04:31.560 I'd say the platform that Amazon has built is not 0:04:31.760 --> 0:04:34.679 very good, but they do have the benefit of Amazon behind. 0:04:34.800 --> 0:04:37.200 Even people who work at Amazon but acknowledge the product 0:04:37.200 --> 0:04:37.799 could be better. 0:04:38.320 --> 0:04:39.960 I think when you look at the number of subscribers, 0:04:40.000 --> 0:04:43.719 I think they're doing okay. And you know, from from 0:04:43.720 --> 0:04:46.120 that standpoint, but what we really want to become. We 0:04:46.200 --> 0:04:49.719 talk about becoming the most technologically capable media company. Believe 0:04:49.760 --> 0:04:52.200 we have the capability to do that. We're bringing in 0:04:52.240 --> 0:04:55.240 the appropriate leadership. You know, we just obviously hired our 0:04:55.279 --> 0:04:59.080 CPO Dan Glasgow, who was formerly obviously running product at 0:04:59.160 --> 0:05:01.719 metaphor Facebook, who is obviously a phenomenal leader, to come 0:05:01.760 --> 0:05:05.480 into the business. And we have really deep tech partnerships 0:05:05.800 --> 0:05:08.880 that are really going to enable, we think Paramount for 0:05:08.920 --> 0:05:12.120 the first time to actually build platforms that are competitive 0:05:12.120 --> 0:05:15.960 with Netflix, that are competitive with Amazon, and actually successfully 0:05:16.000 --> 0:05:17.560 grow in scale. And I think you've said this, You've 0:05:17.560 --> 0:05:20.080 talked about this a lot, given this moment in time 0:05:20.080 --> 0:05:23.200 that we exist in, great art and great technology need 0:05:23.240 --> 0:05:26.080 to work hand in hand together to effectuate the transition 0:05:26.160 --> 0:05:27.200 the overall businesses in. 0:05:27.320 --> 0:05:30.599 Is there some things like concrete about the Paramount plus 0:05:30.640 --> 0:05:33.400 platform right now that you think is clearly substandard, And 0:05:33.880 --> 0:05:36.520 how like I've heard you talk about the recommendation algorithm 0:05:36.560 --> 0:05:38.600 right and how you think that could be better. Does 0:05:38.640 --> 0:05:41.960 having us a better recommendation algorithm really going to bring 0:05:42.000 --> 0:05:44.520 in ten million new customers or make people spend an 0:05:44.520 --> 0:05:46.960 extra two hours a day with your service? 0:05:47.400 --> 0:05:48.800 So you have to do two things. 0:05:48.839 --> 0:05:51.440 One like, let's just talk about the asset that we 0:05:51.480 --> 0:05:55.440 acquire we inherited. Right, Paramount as it exists today operates 0:05:55.760 --> 0:06:00.760 three streaming platforms, three separate texts on two different clouds, 0:06:01.160 --> 0:06:06.159 which is both inefficient and wildly expensive. So if you 0:06:06.200 --> 0:06:09.240 actually said I'm gonna if I had unlimited resources, this 0:06:09.279 --> 0:06:09.760 is not how you do. 0:06:09.920 --> 0:06:12.920 For those who don't follow, the three services are Paramount Plus, 0:06:12.960 --> 0:06:15.080 Pluto TV, and bpt plus correct. 0:06:15.400 --> 0:06:18.320 So we're in the process right now of basically consolidating 0:06:18.320 --> 0:06:20.560 all of those onto a single into a single stack, 0:06:20.960 --> 0:06:25.560 which will both significantly improve the operational capabilities of the product, 0:06:25.600 --> 0:06:28.120 and we're doing a lot to basically overhaul every single 0:06:28.200 --> 0:06:31.279 aspect of the stack. But also the more data that 0:06:31.279 --> 0:06:33.279 you obviously get in there, which is the more users, 0:06:33.600 --> 0:06:34.440 the better you're going to be. 0:06:34.400 --> 0:06:35.400 Able to recommend content. 0:06:35.800 --> 0:06:40.120 So we are we're definitely overhauling basically the product right now. 0:06:40.520 --> 0:06:42.159 But in addition to that, to me. 0:06:42.279 --> 0:06:44.640 Technology is really in service of the content, not the 0:06:44.640 --> 0:06:48.479 other way around, and we're going to make significantly more 0:06:48.520 --> 0:06:50.440 shows at Paramount Plus. 0:06:50.480 --> 0:06:52.760 We are investing in sports rights. You know, when you 0:06:52.760 --> 0:06:54.960 look at the acquisition of the UFC, that. 0:06:55.000 --> 0:06:59.200 Is the largest sport that is basically not shared between 0:06:59.279 --> 0:07:03.080 multiple platforms, and to basically and they have one hundred 0:07:03.080 --> 0:07:06.279 million fans, They've grown twenty five percent from twenty nineteen 0:07:06.279 --> 0:07:09.520 to date. They grew at that level sitting behind a 0:07:09.560 --> 0:07:12.760 double paywall. So we think when you eliminate that double paywall, 0:07:12.800 --> 0:07:14.280 it's going to open it up and make it much 0:07:14.320 --> 0:07:18.040 more accessible. Literally, one paper you fight is what a 0:07:18.080 --> 0:07:20.960 Paramount Plus subscription is. And then basically those one hundred 0:07:20.960 --> 0:07:22.480 million fans are going to be able to get access 0:07:22.480 --> 0:07:24.920 to everything they love. And in addition to that, when 0:07:24.960 --> 0:07:26.920 you look at the overall sports strategy, which cannot be 0:07:27.000 --> 0:07:30.840 more important to us, Paramount had a really strong fall 0:07:30.960 --> 0:07:33.920 and spring sports calendar, but really light in the summer. 0:07:33.960 --> 0:07:36.160 The football in the fall, you have March Madness. In 0:07:36.200 --> 0:07:37.840 the spring, you have. 0:07:37.880 --> 0:07:40.760 The Masters, which which we're incredibly proud to be partners with, 0:07:41.080 --> 0:07:43.120 and now with UFC, we have a year long sports 0:07:43.120 --> 0:07:45.720 strategy and that in addition to all of the new 0:07:45.720 --> 0:07:47.800 originals that we're going to be making for p plus, 0:07:48.040 --> 0:07:49.640 there's going to be more content, there's gonna be a 0:07:49.680 --> 0:07:50.920 better tech product that's going. 0:07:50.880 --> 0:07:53.320 To yield additional engagement and scale. 0:07:53.400 --> 0:07:55.320 So I won't I have a follow up on that, 0:07:55.320 --> 0:07:57.720 but I'm curious because you mentioned Pluto. You've talked a 0:07:57.760 --> 0:08:00.600 lot about combining the back end. How is it that 0:08:00.640 --> 0:08:04.200 you just combine all those services into one consumer facing 0:08:04.240 --> 0:08:06.040 app where if you want to watch Pluto, you're just 0:08:06.080 --> 0:08:07.120 going to Paramount Plus. 0:08:07.360 --> 0:08:11.440 So right now we're basically combining the back the back end. 0:08:13.320 --> 0:08:15.120 It's certainly something we've discussed and. 0:08:15.080 --> 0:08:16.840 Explore, but not something we're planning to do right now. 0:08:16.960 --> 0:08:20.480 Got it? And you're in the like the fun spending money, 0:08:20.480 --> 0:08:22.920 showing people you're here to reinvigorate the company phase. When 0:08:22.920 --> 0:08:24.200 does the less fun part? 0:08:26.480 --> 0:08:29.800 So, look, one of the things that I think is 0:08:29.840 --> 0:08:33.520 actually important is this business can be operated a lot 0:08:33.559 --> 0:08:36.600 more efficiently than was operated in the past. And you know, 0:08:36.640 --> 0:08:39.520 we've obviously announced you know, two billion dollars and obviously 0:08:39.600 --> 0:08:43.760 run rate synergies. We've said we're going to meaningfully obviously 0:08:43.800 --> 0:08:48.040 exceed those targets, and from our perspective, we intend to 0:08:48.080 --> 0:08:51.240 do that as quickly as possible so that we can 0:08:51.280 --> 0:08:53.240 basically get that behind us and then have the entire 0:08:53.280 --> 0:08:54.360 team just building for the future. 0:08:54.400 --> 0:08:56.360 So does that do cuts start before the end of 0:08:56.360 --> 0:08:56.720 the year. 0:08:58.840 --> 0:09:00.000 You know, I can't answer that question. 0:09:01.360 --> 0:09:03.600 Let's go to a couple other questions you probably can't answer. 0:09:05.720 --> 0:09:07.080 Have you We're going there already. 0:09:07.080 --> 0:09:09.680 All right, have you made an offer yet for Warner 0:09:09.679 --> 0:09:10.559 Brothers Discovery. 0:09:10.679 --> 0:09:12.160 All right, we'll talk about tennis. 0:09:13.960 --> 0:09:16.240 We'll get to tennis at the end. I already I 0:09:16.240 --> 0:09:17.840 don't know if you saw it. I asked Greg Peters, 0:09:17.840 --> 0:09:19.560 who is better at tennis? Him or Bill Gate? You 0:09:19.559 --> 0:09:22.079 can probably answer that question. He dodged, But. 0:09:23.120 --> 0:09:25.160 The atention I actually can't as attention, I've never seen 0:09:25.160 --> 0:09:26.840 either of them play tennis, so I don't feel equipped 0:09:26.840 --> 0:09:27.240 to be able to do. 0:09:27.600 --> 0:09:32.679 Let's go back to the offer for Warner Brothers Discovery. 0:09:32.720 --> 0:09:35.360 So so, look, we're a publicly traded company, and I 0:09:35.360 --> 0:09:36.839 think you know, we're not in a position to be 0:09:36.840 --> 0:09:40.400 able comment on rumors speculation of any kind, because there's 0:09:40.400 --> 0:09:42.719 a couple of rumors and speculations obviously out there in 0:09:42.840 --> 0:09:43.360 terms of what we. 0:09:43.320 --> 0:09:45.440 May or may not be doing. But look, what I 0:09:45.480 --> 0:09:46.400 can't comment on is. 0:09:46.320 --> 0:09:49.800 People to kind of understand our mindset, right, And I 0:09:49.840 --> 0:09:53.560 actually think, you know, ironically, it was David Zaslov last 0:09:53.640 --> 0:09:57.240 year that said, you know, consolidation the medium business is important, 0:09:57.800 --> 0:10:01.920 and the way we approach everything is first and foremost, 0:10:02.480 --> 0:10:06.240 what's good for the talent community, what's good for our shareholders, 0:10:06.240 --> 0:10:11.160 and value creation and what's good for basically storytelling at large. 0:10:11.440 --> 0:10:15.719 And so from our standpoint, whether we were approach any acquisition, 0:10:15.760 --> 0:10:18.240 and I actually do think there's a lot of options 0:10:18.280 --> 0:10:20.760 out there in terms of what actually might be actionable 0:10:20.760 --> 0:10:23.360 in the near future, we would approach that through the 0:10:23.440 --> 0:10:27.640 lens of wanting to make more, not less, you know, because. 0:10:27.400 --> 0:10:30.080 The natural conclusion if you were to merge with one 0:10:30.160 --> 0:10:33.160 of those Discovery is you take two companies that combines 0:10:33.280 --> 0:10:35.480 I don't remember the content's been between the two of them, 0:10:35.480 --> 0:10:38.559 but spend billions of dollars. And much as you're combining 0:10:38.640 --> 0:10:41.000 Guidance and Paramount, you take money out. You would take 0:10:41.040 --> 0:10:43.280 money out there. Companies that merge don't tend to spend 0:10:43.320 --> 0:10:44.719 more money on the other side of it. 0:10:44.840 --> 0:10:46.280 So what I would say, and again I'm not going 0:10:46.320 --> 0:10:50.440 to comment on Warner Brothers Discovery, but you know you 0:10:50.480 --> 0:10:53.200 said it when you talked about Paramount. You actually need 0:10:53.200 --> 0:10:56.199 more content to yield more engagement. And so we would 0:10:56.200 --> 0:10:59.120 actually want to be in the business throughout whatever lens 0:10:59.120 --> 0:11:02.840 we were looking at of actually producing more, you know, 0:11:03.080 --> 0:11:06.040 more movies, more television series, more to get to scale 0:11:06.360 --> 0:11:09.360 because you need that content, you need that great storytelling 0:11:09.400 --> 0:11:13.560 to yield engagement. And from that standpoint, we're also in 0:11:13.600 --> 0:11:16.960 the business first and foremost of creating long term value creation. 0:11:17.559 --> 0:11:19.400 And you know, in one of the things I think. 0:11:19.720 --> 0:11:23.080 I hope we've we've proven obviously with our family is 0:11:23.400 --> 0:11:25.400 we are in the business of building long term value 0:11:25.440 --> 0:11:27.560 for shareholders, and I think we've done that successfully. 0:11:27.880 --> 0:11:29.600 You mentioned there are a lot of other things out 0:11:29.600 --> 0:11:31.720 there that could be actionable. What else is on the list? 0:11:33.080 --> 0:11:35.600 Same thing, I can't comment on it. 0:11:36.040 --> 0:11:40.200 I'll do one more so. We were told that you 0:11:40.240 --> 0:11:43.199 actually made an offer for Warner Brothers Discovery that was rejected. 0:11:44.760 --> 0:11:45.520 Same answer. 0:11:47.640 --> 0:11:50.240 It seems like most people think this is I promise 0:11:50.280 --> 0:11:52.480 it's not the same question. It's the bridge to something else. 0:11:52.600 --> 0:11:54.280 Most people think that you guys are the only ones 0:11:54.280 --> 0:11:55.880 who can get that deal done. And one of the 0:11:55.920 --> 0:11:59.320 reasons is because of the relationship between your father and 0:11:59.360 --> 0:12:03.040 the current instration. How would you characterize the relationship between 0:12:03.080 --> 0:12:05.000 your family and the president at the moment? 0:12:06.440 --> 0:12:06.960 Great question. 0:12:07.000 --> 0:12:09.480 I think we have a we have a good relationship 0:12:09.480 --> 0:12:12.240 with the with the administration, and look, I think if 0:12:12.280 --> 0:12:16.440 you look to that, I do believe other things that 0:12:16.480 --> 0:12:19.679 have been rumored about, right are very large scale players 0:12:19.679 --> 0:12:22.840 that would affect that could potentially create monopolies obviously in 0:12:22.880 --> 0:12:25.800 the ecosystem. And again, I think when you look at 0:12:25.840 --> 0:12:28.199 the lens of consolidation for us, I'll keep going back 0:12:28.200 --> 0:12:30.160 to it, it's always how do you create long term 0:12:30.200 --> 0:12:32.480 value creation, how do you put yourself in a position 0:12:32.520 --> 0:12:35.160 to produce more content, not less, and how do you 0:12:35.280 --> 0:12:37.960 ultimately build something that is better for the consumer, not 0:12:38.120 --> 0:12:41.040 opportunities that will create things like you know, too much 0:12:41.040 --> 0:12:44.560 pricing power. And I think if you look at our business, 0:12:46.280 --> 0:12:48.520 I hear it all the time. The notion of going 0:12:48.600 --> 0:12:52.600 to seven different apps is not the greatest experience from 0:12:52.640 --> 0:12:53.880 the consumer's point of view. 0:12:54.440 --> 0:12:56.439 And I think what we look for is. 0:12:56.400 --> 0:12:58.520 Really how do we serve the consumer, how do we 0:12:58.640 --> 0:13:01.280 serve the talent community, who we are so grateful for 0:13:01.320 --> 0:13:04.400 the fact that they have really embraced us since this acquisition, 0:13:04.640 --> 0:13:07.040 and how to create long term value for shareholders. Those 0:13:07.040 --> 0:13:08.439 are going to be the lens of which we always 0:13:08.440 --> 0:13:12.000 approach everything. And what I'm and I think we have 0:13:12.600 --> 0:13:16.080 the capital and resources to be opportunistic when those opportunities arrive, 0:13:16.600 --> 0:13:17.360 and we do have a. 0:13:17.360 --> 0:13:20.000 Good relationship, so one opportunity you took and you mentioned 0:13:20.040 --> 0:13:23.720 earlier with buying the Free Press, the track record of 0:13:24.320 --> 0:13:26.960 big media companies like Paramount buying digital media companies like 0:13:26.960 --> 0:13:30.400 the Free Press is abysmal, at least over the last 0:13:30.400 --> 0:13:33.160 several years. So why are you buying this company and 0:13:33.320 --> 0:13:34.480 what was the thought behind it? 0:13:35.480 --> 0:13:37.080 Absolutely so one. 0:13:38.320 --> 0:13:40.400 What our goal is in news is we want to 0:13:40.400 --> 0:13:43.760 become the most trusted destination in news media. 0:13:43.960 --> 0:13:44.880 That is our goal. 0:13:45.240 --> 0:13:47.160 And I don't think it's a controversial thing to say 0:13:47.240 --> 0:13:50.839 right now that the civil discourse that currently exists is 0:13:51.000 --> 0:13:54.640 not in a great place. And we basically believe in 0:13:55.360 --> 0:13:57.640 all the things that the Free Press believed in, which 0:13:57.679 --> 0:13:59.720 is the you know, we want to speak to these 0:13:59.760 --> 0:14:02.400 set twenty percent of the audience that identifies themselves as 0:14:02.400 --> 0:14:06.439 center left to center right. We believe in the open 0:14:06.480 --> 0:14:10.040 exchange of ideas and then you know, fundamentally presenting both 0:14:10.080 --> 0:14:13.520 sides and allowing the audience to ultimately make their determination 0:14:13.559 --> 0:14:16.800 about how they feel about it. But they're presented with 0:14:17.080 --> 0:14:20.760 the facts, and we think that, you know, the Free 0:14:20.760 --> 0:14:23.840 Press recognized some of the issues that have been occurring 0:14:23.840 --> 0:14:25.600 and built a company as part of the solution to. 0:14:25.520 --> 0:14:28.040 What issues are you referring to there. 0:14:28.360 --> 0:14:31.000 The notion of really just saying we want to get 0:14:31.000 --> 0:14:32.600 back into the trust business, we want to get back 0:14:32.640 --> 0:14:35.080 into the truth business. And then in addition to that, 0:14:35.120 --> 0:14:38.760 when you look at news right we have I cannot 0:14:39.880 --> 0:14:43.080 properly express how much respect and admiration I have for 0:14:43.120 --> 0:14:46.280 the legacy of CBS News in sixty minutes. 0:14:46.360 --> 0:14:47.240 It's remarkable. 0:14:49.360 --> 0:14:52.120 But also the company does not have a digital strategy, 0:14:52.560 --> 0:14:54.520 and one of you know, which is why the Free 0:14:54.520 --> 0:14:57.000 Press was a critical part of that acquisition, because you 0:14:57.040 --> 0:14:58.480 need to be able to meet people where they are. 0:14:59.200 --> 0:15:02.440 I'm just curious is remaining independent ish. 0:15:02.880 --> 0:15:05.480 So basically the Free Press will obviously stay in the 0:15:05.520 --> 0:15:07.160 digital landscape in which they're going towards. 0:15:07.200 --> 0:15:08.840 But I also think when you talk about meeting people 0:15:08.840 --> 0:15:09.200 where they. 0:15:09.160 --> 0:15:12.840 Are, that's in broadcast news, that's obviously you know on 0:15:12.880 --> 0:15:16.280 the Free Press's website, that's in podcasts, but that's also 0:15:16.360 --> 0:15:18.880 eventually going to be in direct to consumer And we 0:15:19.000 --> 0:15:20.960 do want to actually build a home in the d 0:15:21.000 --> 0:15:23.480 TWOC platform, which to my knowledge, our competitors are not 0:15:23.600 --> 0:15:26.160 doing where you can actually go get all of that 0:15:26.240 --> 0:15:29.240 in a digital environment you're consumer, and the Free Press 0:15:29.280 --> 0:15:30.920 is an accelerate to be able to complish. 0:15:30.600 --> 0:15:34.000 That cold doesn't the CBS already have a digital news network. 0:15:35.200 --> 0:15:37.320 They do, but we think that this basically accelerates and 0:15:37.360 --> 0:15:38.080 supercharges it. 0:15:40.000 --> 0:15:42.840 Basically said, you have a lot of respect to CBS News, 0:15:42.840 --> 0:15:44.880 but in bringing in someone to completely overhaul it would 0:15:44.880 --> 0:15:48.000 suggest that you thought that things weren't operating as well 0:15:48.000 --> 0:15:50.920 as they could have been. And how would you assess it, 0:15:50.960 --> 0:15:54.520 not just from a business standpoint, but from a content standpoint. 0:15:54.520 --> 0:15:56.080 Do you feel like the news that they were putting 0:15:56.120 --> 0:15:57.920 out there was where you want it to be? Do 0:15:57.960 --> 0:15:59.360 you think there are things they could be doing better 0:15:59.440 --> 0:15:59.800 or worse? 0:16:00.200 --> 0:16:04.040 So, as I've kind of said this before, I'm not 0:16:04.080 --> 0:16:06.840 going to be in the position of ever making political 0:16:06.880 --> 0:16:10.880 statements like we're we're an entertainment company first, and we 0:16:11.000 --> 0:16:14.080 have the viewpoint of if you're breathing your audience and 0:16:14.480 --> 0:16:18.000 we basically so, and so from that standpoint, we want 0:16:18.040 --> 0:16:21.680 to entertain our audiences first. What I will say, and 0:16:21.720 --> 0:16:23.080 I've said this and I said this in a letter 0:16:23.120 --> 0:16:25.120 I sent up to the team earlier this week, is 0:16:25.120 --> 0:16:27.200 that I do believe that this is an opportunity when 0:16:27.200 --> 0:16:29.200 you look at where things sit, that we want to 0:16:29.240 --> 0:16:30.800 be able to get back to a place where everyone 0:16:30.800 --> 0:16:31.760 can have dialogue. 0:16:31.800 --> 0:16:33.280 We believe in civil discourse. 0:16:33.600 --> 0:16:36.040 We believe in the open exchange and debate of ideas 0:16:36.120 --> 0:16:38.520 is how you get to the right answer. And we 0:16:38.560 --> 0:16:40.840 think that there is a responsibility with news to make 0:16:40.880 --> 0:16:42.800 sure that you were promoting that. But at the end 0:16:42.840 --> 0:16:44.360 of the day, it's always up to the viewer in 0:16:44.400 --> 0:16:46.400 the audience to decide. And we're in the business of 0:16:46.480 --> 0:16:50.720 first and foremost earning their trust and that is done 0:16:50.720 --> 0:16:52.920 over time, and we hope that we you know, we're 0:16:52.960 --> 0:16:54.960 going to work really hard to earn our audience trusts 0:16:54.960 --> 0:16:55.320 every day. 0:16:55.360 --> 0:16:58.680 You can understand though, why when you're talking about restoring 0:16:58.760 --> 0:17:01.480 trust and speaking to every one, you know, you put 0:17:01.600 --> 0:17:05.959 someone in Barry's background as primarily as an opinion columnist, right, 0:17:06.040 --> 0:17:09.680 She's not a kind of died in the wool news reporter. 0:17:10.280 --> 0:17:12.200 And there are going to be people at CBS News, 0:17:12.200 --> 0:17:13.639 and there have been a lot of people outside of 0:17:13.720 --> 0:17:15.920 the journalists outside of CBS News already who are seem 0:17:16.080 --> 0:17:19.959 very concerned because opinion and news are typically kept separate. 0:17:20.040 --> 0:17:23.680 And now you have of the editorial leader of this 0:17:24.080 --> 0:17:27.200 news group whose background is an opinion Yeah, well, I. 0:17:27.119 --> 0:17:29.359 Mean Look, I'll continue to say the same thing, like, 0:17:29.520 --> 0:17:31.360 I'm not going to make a political statement. 0:17:32.280 --> 0:17:33.640 I'm really not going to do it. 0:17:34.200 --> 0:17:36.400 I'm not asking a political statement. But you can understand 0:17:36.440 --> 0:17:38.320 maybe why some of the staff is nervous or I'm 0:17:38.359 --> 0:17:40.600 sure your art you've got, you and your team are 0:17:40.600 --> 0:17:42.280 already ready for there to be a bunch of leaks 0:17:42.280 --> 0:17:44.280 over the next few weeks of people who don't like 0:17:44.720 --> 0:17:46.680 whatever direction it's going in. 0:17:47.119 --> 0:17:48.760 Yeah, looks, what I think I said is like again, 0:17:49.160 --> 0:17:50.520 I'll keep going back to it. I think if you 0:17:50.560 --> 0:17:53.280 look at the value system that basically the Free Press 0:17:53.280 --> 0:17:56.119 has been operated under really does align with the value 0:17:56.160 --> 0:17:58.199 system that we believe in, which I also believe is 0:17:58.200 --> 0:18:02.280 in line with the legacy of CBS News. And if 0:18:02.320 --> 0:18:04.320 you actually go to that, I do believe there are 0:18:04.320 --> 0:18:08.119 areas where we collectively can and will do better. But 0:18:08.160 --> 0:18:09.960 I also have the utmost respect for the team that 0:18:10.400 --> 0:18:13.399