WEBVTT - The Supply Chain, Semiconductors, And Real Estate 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney. Alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.560 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.959 at Bloomberg dot com slash podcast. Let's get right to 0:00:23.040 --> 0:00:28.080 our next guest, Sad Path Soda Ryan, chief revenue officer 0:00:28.200 --> 0:00:31.280 from Verizon, joins a sad Path. Thanks so much for 0:00:31.400 --> 0:00:38.320 joining us here, huge global company, Verizon Business Consumer. How 0:00:38.360 --> 0:00:44.160 has your business changed in the last two years? Hey, 0:00:44.200 --> 0:00:47.680 good morning everyone. Look, it's been a good time for us. 0:00:47.920 --> 0:00:51.240 You know, as networks become even more important as people 0:00:51.320 --> 0:00:55.319 work from home, remote work is more prevalent networks and 0:00:55.360 --> 0:00:58.800 what we offer becomes really important. And for us, it's 0:00:58.880 --> 0:01:01.920 also where we are launching five G you know, we 0:01:01.960 --> 0:01:04.759 are right now at the cusp of a second phase 0:01:04.800 --> 0:01:07.040 of the five G era where we turn on our 0:01:07.080 --> 0:01:09.720 ce band network in a few weeks times. So it's 0:01:09.760 --> 0:01:13.639 it's it's just a great time to be in this business. 0:01:13.640 --> 0:01:16.240 So you are the chief revenue officer. I don't know 0:01:16.280 --> 0:01:18.080 how deep into the tech you are, but you have 0:01:18.200 --> 0:01:23.920 to have some um view on the safety of five G. 0:01:24.200 --> 0:01:25.960 All of a sudden, for the first time last week, 0:01:26.000 --> 0:01:29.920 I'm hearing that it's capable of messing with airplanes altitude 0:01:30.360 --> 0:01:34.520 sensors and maybe you would make landing dangerous. To me, 0:01:34.560 --> 0:01:38.160 it's pretty binary. Either it's dangerous or it's not. What's 0:01:38.200 --> 0:01:43.520 the deal, It's not dangerous. Look, safeties are most important 0:01:43.520 --> 0:01:45.200 to us, and it's kind of number one in what 0:01:45.280 --> 0:01:48.800 we do. All we that are forty countries around the 0:01:48.800 --> 0:01:51.480 world that have five G networks in the same CE 0:01:51.600 --> 0:01:55.080 band that we operate in. Planes takeoff, planes land there 0:01:55.240 --> 0:01:58.880 really well, one of the countries is France. You know, 0:01:59.000 --> 0:02:02.080 American planes go in and get out there. What we 0:02:02.160 --> 0:02:05.160 are proposing is a kind of a similar approach to 0:02:05.280 --> 0:02:07.440 what's there in France, where we kind of have an 0:02:07.440 --> 0:02:10.240 exclusionary zone just outside the airports where we have lower 0:02:10.240 --> 0:02:13.120 power levels so there's no interference that way. You know. 0:02:13.160 --> 0:02:16.080 We give the f A and the FCC six months 0:02:16.080 --> 0:02:19.639 to work this out, but we feel very confident and 0:02:19.680 --> 0:02:21.720 we just can't wait to launch the network. I mean, 0:02:21.720 --> 0:02:23.880 even if you didn't have that sand path, what if 0:02:23.919 --> 0:02:28.600 you had the strongest, most powerful five G signals right 0:02:28.800 --> 0:02:33.560 up the tower. Um, would it interfere with I mean, 0:02:33.760 --> 0:02:37.280 aren't the bandwidths different? Isn't Isn't there someone who made 0:02:37.320 --> 0:02:41.160 sure that this is a different part of the frequency 0:02:41.520 --> 0:02:46.480 before they sold you, um, this bundle? Yeah, exactly. Look, 0:02:46.520 --> 0:02:49.359 you know we spent fifty three billion dollars for it. Uh. 0:02:49.360 --> 0:02:51.560 And the laws of physics are the same either in 0:02:51.560 --> 0:02:53.919 the United States or in France or any of the 0:02:54.360 --> 0:02:57.280 other countries. In fact, in the US, the guard band 0:02:57.360 --> 0:03:00.520 are kind of the protection band between the spectrum we 0:03:00.680 --> 0:03:03.040 use and then the spectrum the airlines use. Is one 0:03:03.040 --> 0:03:05.240 of the largest in the world, so there are two 0:03:05.280 --> 0:03:08.680 different spectrums. We have a very large guard band, and 0:03:08.840 --> 0:03:11.880 with us, you know, lowering power levels and other technical 0:03:11.919 --> 0:03:17.040 things around airports, we see absolutely no risk. So Sampath 0:03:17.120 --> 0:03:22.320 gives a sense advertising again a huge company. Um, how 0:03:22.440 --> 0:03:27.480 what's the are you know, managing through the pandemic? How 0:03:27.520 --> 0:03:32.560 has Verizon done? How has Verizon adapted? A couple of things, 0:03:32.560 --> 0:03:34.680 you know, One, we have to balance out four of 0:03:34.720 --> 0:03:38.880 our stakeholders, you know, whether it's employees, customers, shareholders, and 0:03:38.880 --> 0:03:41.760 broader society. So just having that balance has been a 0:03:41.800 --> 0:03:44.480 good framework for us to get through. The second is 0:03:44.520 --> 0:03:47.040 that personal safety is important for our teams. But we 0:03:47.120 --> 0:03:50.720 also realized that the service we operate networks is kind 0:03:50.760 --> 0:03:53.600 of the backbone of the global economy today. It's the 0:03:53.680 --> 0:03:56.200 rails on which most of the economy runs on. So 0:03:56.440 --> 0:03:58.720 for us, it's been a careful balance of the four 0:03:58.720 --> 0:04:02.400 stakeholders as well as ensuring that our networks up and 0:04:02.520 --> 0:04:05.520 running at the same time. Now it's also the same 0:04:05.560 --> 0:04:10.000 time we decided to deploy five G. More broadly, Actually, 0:04:10.000 --> 0:04:12.000 it's been a little faster than what we had planned 0:04:12.000 --> 0:04:15.240 because our construction has not stopped. We've moved applied faster. 0:04:15.400 --> 0:04:16.960 So you know, a little bit of good and bad, 0:04:17.040 --> 0:04:19.840 but overall is just a great time to be here. 0:04:20.000 --> 0:04:22.960 The other thing I've noticed, um from the consumer side, 0:04:23.760 --> 0:04:27.520 people have been using more data than ever on a 0:04:27.600 --> 0:04:31.919 level that they probably wouldn't have imagined. Not just consuming um, 0:04:31.960 --> 0:04:36.080 you know, uh media content like television shows and movies, 0:04:36.200 --> 0:04:39.960 but they're doing all of their banking online, and they're 0:04:39.960 --> 0:04:42.800 starting their cars with their phones and controlling their home 0:04:43.560 --> 0:04:46.400 HVAC systems with their phones. And you know, this was 0:04:46.400 --> 0:04:48.760 what was forecast to happen, but I don't think anyone 0:04:48.760 --> 0:04:51.560 expected it to boom all of a sudden happening side 0:04:51.560 --> 0:04:55.320 of the period of one year. Um, how is that 0:04:55.400 --> 0:04:58.400 for you? Are you still offering unlimited data packages or 0:04:58.440 --> 0:05:03.160 people using fort sixty gigs a month? Yeah, people are 0:05:03.240 --> 0:05:04.880 using a lot of data. As you said, they use 0:05:04.960 --> 0:05:07.320 it for everything. I wish I could say everything is 0:05:07.320 --> 0:05:09.040 for great to you with my kids use it for 0:05:09.080 --> 0:05:11.080 a lot more gaming than they need to. But yes, 0:05:11.200 --> 0:05:14.640 definitely a lot of data consumption that's gone, which is 0:05:14.720 --> 0:05:17.880 why the five G network is critical because one of 0:05:17.920 --> 0:05:20.800 the biggest advantages of five G if you get more 0:05:20.880 --> 0:05:24.880 throughput and more speed. So we're literally adding a ton 0:05:25.160 --> 0:05:27.320 and a ton of a technical term, a ton of 0:05:27.360 --> 0:05:31.080 capacity in the network. All right, Sam Path, thank you 0:05:31.120 --> 0:05:33.360 so much for joining us. Really appreciate getting your thoughts there, 0:05:33.360 --> 0:05:37.000 Sam Path, so many on a Ryan, chief revenue officer 0:05:37.200 --> 0:05:44.680 for Verizon. I was just typing out a letter to 0:05:45.279 --> 0:05:47.840 some of the producers upstairs at the Quick Take at 0:05:47.839 --> 0:05:51.240 Bloomberg Quick Take, a little pitch for them because I said, 0:05:51.400 --> 0:05:54.000 you should have me on more I can talk about cars, 0:05:54.120 --> 0:05:55.800 and they were like, yeah, all you want to talk 0:05:55.800 --> 0:05:57.279 about is cars, But I said, look, it's at the 0:05:57.360 --> 0:06:01.160 center of the economy, probably more so UM that any 0:06:01.200 --> 0:06:05.280 time since Henry Ford started his production line, because these 0:06:05.520 --> 0:06:09.000 vehicles use more and more chips, especially as they produce 0:06:09.520 --> 0:06:13.839 UM more hybrids and e vs than they ever have before. 0:06:14.279 --> 0:06:17.280 It's it's connected to the labor story, it's connected to 0:06:17.720 --> 0:06:22.240 UH consumer spending, and it's just amazing. Let's let's focus 0:06:22.279 --> 0:06:23.960 in on the chips part of it, because we have 0:06:24.440 --> 0:06:27.479 not Cool Dougal Uh. He is a senior VP and 0:06:27.520 --> 0:06:31.880 General manager of Automotive UH for qual Calm right now, 0:06:32.080 --> 0:06:35.880 and they are I'm gonna get the biggest not Cool 0:06:35.920 --> 0:06:39.240 correct me if if I'm wrong, the biggest automotive chip 0:06:39.279 --> 0:06:42.200 maker in the world. I would like to see the 0:06:42.240 --> 0:06:45.120 fastest going. Good morning, gentlemen, the fastest growing all right. 0:06:45.120 --> 0:06:47.680 I just know because UM I was at the Munich 0:06:47.720 --> 0:06:49.680 Auto Show. I spent a lot of time at car shows, 0:06:49.720 --> 0:06:53.679 and UM I noticed so many products there, UM, from 0:06:53.960 --> 0:06:58.560 the trucks to the cars to Ducati motorcycles are packing 0:06:58.640 --> 0:07:02.520 qual Calm chips UM, and you can't make them fast enough. Right, 0:07:02.560 --> 0:07:06.159 Are you still at a point where your order books 0:07:06.200 --> 0:07:09.280 are completely full and you just can't ship them quickly enough. 0:07:09.320 --> 0:07:12.560 To the customer. You know, that's right. We've been able 0:07:12.640 --> 0:07:16.360 to stay ahead of the challenges that the industry has 0:07:16.400 --> 0:07:20.360 had because we prioritize automotive over our other businesses, just 0:07:20.400 --> 0:07:23.920 because of the complexity of the auto industry. But we 0:07:23.960 --> 0:07:28.120 consider ourselves MATH bought in a very fortunate position because 0:07:28.640 --> 0:07:31.240 you know, we uh, I would say, human as far 0:07:31.280 --> 0:07:34.640 back as a decade ago, made the call that automotive 0:07:34.760 --> 0:07:38.480 was a very important adjacency forkcom to start to focus 0:07:38.560 --> 0:07:42.480 on and invest in as this market goes through a 0:07:42.520 --> 0:07:46.160 significant amount of transformation, and we are seeing a lot 0:07:46.200 --> 0:07:49.760 of the dividends of the investments we've made back then 0:07:50.400 --> 0:07:53.000 pay out as we look ahead. Now, cool, maybe you 0:07:53.040 --> 0:07:55.040 can settle an argument. Matt and I were just having 0:07:55.200 --> 0:07:58.080 literally here in the studio about you know, I was questioning, 0:07:58.160 --> 0:08:02.320 why are we still having such a pronounced chip shortage 0:08:02.320 --> 0:08:05.400 on a global scale. Matt says, it was, you know, 0:08:05.480 --> 0:08:09.440 just unprecedented increase in demand across a range of products. 0:08:09.480 --> 0:08:10.800 I said, no, no, no, I think it's got to 0:08:10.840 --> 0:08:14.720 come from the supply side. That maybe plant closures in Asia, 0:08:14.880 --> 0:08:18.760 and so that really came on the supply side, but 0:08:18.920 --> 0:08:21.200 so long ago, I know, But I'm just thinking, these 0:08:21.240 --> 0:08:23.440 chip guys have got to figure this thing out, so 0:08:23.760 --> 0:08:26.600 settle this debate for us. I think there are there 0:08:26.640 --> 0:08:28.240 are a few different things going on, and I think 0:08:28.320 --> 0:08:33.040 first of all, electrification is creating the need for new 0:08:33.160 --> 0:08:37.160 architectures for vehicles. So there is a lot of focus 0:08:37.360 --> 0:08:40.560 as you look at the next generation modern cars to 0:08:40.640 --> 0:08:44.679 move towards an architecture that relies on semiconductors much more 0:08:44.720 --> 0:08:49.080 heavily as it has. As you know, the the car 0:08:49.160 --> 0:08:52.160 industry is moving more towards the mobility business, which means 0:08:52.200 --> 0:08:54.040 you have to be able to have a tremendous amount 0:08:54.040 --> 0:08:58.840 of software and semiconductors that power that software. UH. What 0:08:59.040 --> 0:09:03.120 compounds become flexity is as we went through COVID UH, 0:09:03.440 --> 0:09:07.720 the automotive architecture has relied on a variety of different 0:09:08.880 --> 0:09:13.319 vintages of semiconductors. As architectures and automotive haven't evolved for 0:09:13.360 --> 0:09:15.400 a long period of time, there is a dependency on 0:09:15.440 --> 0:09:20.719 older architectures that use semiconductors in lagging process notes. That's 0:09:20.720 --> 0:09:23.640 when most of the complexity is where you've been developing 0:09:23.679 --> 0:09:26.439 semiconductors on older notes for a long period of time 0:09:27.040 --> 0:09:31.040 that that have a lot more complexity to modernize. The 0:09:31.080 --> 0:09:33.920 complexity is much less when you talk about the next 0:09:33.960 --> 0:09:36.200 generation notes. So what we are starting to see is 0:09:37.080 --> 0:09:42.360 a significant transition towards newer notes. You can't completely get 0:09:42.400 --> 0:09:44.520 yourself out of the depends on older notes, but a 0:09:44.600 --> 0:09:47.920 significant faster transition to newer nodes, which obviously places to 0:09:47.960 --> 0:09:51.040 our advantage. I've noticed some some carmakers are just dropping 0:09:51.040 --> 0:09:54.640 functions completely because they don't have the chips to power them. 0:09:54.640 --> 0:09:58.240 For example, about ten years ago, a lot of the 0:09:58.280 --> 0:10:01.600 carmakers started offering the style start technology where your motor 0:10:01.640 --> 0:10:05.400 switches off at a stoplight. UM. Car guys hate it 0:10:05.520 --> 0:10:08.439 right and always try and disable it. Now I've noticed 0:10:08.480 --> 0:10:11.280 some car makers like GM, I'm building a truck on 0:10:11.320 --> 0:10:15.080 their website and they say, uh, no stops to feature anymore. 0:10:15.400 --> 0:10:17.880 So you get fifty dollars back. Are you are you 0:10:17.880 --> 0:10:20.520 going to see more of that you think the cool 0:10:20.679 --> 0:10:23.000 or less of that? Are Are we at a point 0:10:23.040 --> 0:10:25.560 where this is getting better or we're or still worse? 0:10:26.360 --> 0:10:28.160 I think it's an excellent question. I think that's an 0:10:28.200 --> 0:10:32.600 example of the dependency on a small micro controller that 0:10:33.280 --> 0:10:36.320 is in short supply and it's going to be harder 0:10:36.320 --> 0:10:39.400 to get around. The transition we are seeing pollen mat 0:10:39.559 --> 0:10:42.359 is that those steps of functions are moving to software, 0:10:42.679 --> 0:10:46.840 so where you have much harder performance application processors that 0:10:46.920 --> 0:10:49.760 the auto industry is now embracing, and a function like 0:10:49.920 --> 0:10:53.360 stop start can actually be integrated as a software function 0:10:53.800 --> 0:10:57.160 into the higher end processor as opposed to rely on 0:10:57.640 --> 0:11:02.120 a simple discrete micro controller. So you will start to 0:11:02.160 --> 0:11:05.960 see examples like this play out, and that functionality gets 0:11:05.960 --> 0:11:10.880 subsumed into larger application processors that then manage that functionality 0:11:10.880 --> 0:11:14.920 to software. All right, Nicole, here's the money question. When 0:11:15.000 --> 0:11:17.960 is this chip shortage going to be addressed? Here? When 0:11:18.000 --> 0:11:22.240 are we making back to more normalized supply demand. Well, 0:11:22.240 --> 0:11:24.360 you know, I think it's a complex question because it 0:11:24.480 --> 0:11:27.920 is a bit different for each automaker. Everybody has a 0:11:27.960 --> 0:11:31.280 slightly different type of challenge too. Smaller automakers are going 0:11:31.320 --> 0:11:34.280 to be able to get around it faster, especially if 0:11:34.280 --> 0:11:38.200 they move to newer architectures. The larger ones that have 0:11:38.440 --> 0:11:43.480 a lot more complexity, lot more diversity across their uh 0:11:43.520 --> 0:11:47.440 their portfolio, have a lot more dependency on the complexity 0:11:47.480 --> 0:11:49.840 of the semiconductor crisis. But I would imagine, you know, 0:11:49.840 --> 0:11:53.080 in the I think we are. I think towards the 0:11:53.160 --> 0:11:55.679 end of twenty two we should certainly start to see 0:11:56.240 --> 0:11:59.360 the industry come out of a lot of this complexity 0:11:59.520 --> 0:12:02.679 on the whole. From our perspective, we have actually been 0:12:02.720 --> 0:12:06.360 able to stay ahead of this challenge, but clearly we 0:12:06.440 --> 0:12:10.800 supply a portion of the overall semiconductor portfolio within a 0:12:10.920 --> 0:12:13.920 vehicle n cool what's the smartest car out there? What's 0:12:13.960 --> 0:12:18.640 the what's the coolest, high highest tech vehicle that you 0:12:18.679 --> 0:12:22.400 could buy right now? Yeah? I think, you know, there 0:12:22.400 --> 0:12:25.360 are several because we have so many different partners and 0:12:25.400 --> 0:12:27.800 customers that we work with. But you know, one thing 0:12:27.840 --> 0:12:30.200 that we are very proud of is the fact that 0:12:30.280 --> 0:12:32.800 the strategy that we've laid out over the last five 0:12:32.880 --> 0:12:35.600 years has now culminated into working called the Snap Drag 0:12:35.600 --> 0:12:39.840 and Digital Chassis, which is basically enabling automakers with the 0:12:39.960 --> 0:12:45.240 newest tech, the latest semiconductors in software, connected to highly 0:12:45.280 --> 0:12:48.760 complex ecosystems, whether it's in the autonomous space or in 0:12:48.800 --> 0:12:53.040 the digital cockpit experience or five connectivity, and bringing that 0:12:53.240 --> 0:12:57.440 together to help automakers make a much larger step up 0:12:57.480 --> 0:13:00.400 in terms of modernization. We've been working with General Motors 0:13:00.440 --> 0:13:02.560 for a number of years, but over twenty years. And 0:13:02.800 --> 0:13:07.040 Mary Burton announced the partnership with us UH can see 0:13:07.120 --> 0:13:09.720 yes a few days ago. We are very part of 0:13:09.760 --> 0:13:11.880 the Altar Cruise work that we've been doing with them, 0:13:11.920 --> 0:13:15.800 which is a level three door to door autonomous service. 0:13:16.720 --> 0:13:20.480 We made an announcement with the bub back in November 0:13:20.840 --> 0:13:26.920 on Ada. Wal Boy has been working with us. Difficult 0:13:26.960 --> 0:13:32.600 to pick one of my favorite customers, all right, Nicole 0:13:32.760 --> 0:13:36.680 Nicole Naldgal, Senior VP and General Manager Automotive for Qualcom. 0:13:36.720 --> 0:13:38.920 I don't know. They need to get more chips out 0:13:38.960 --> 0:13:41.439 into the marketplace. That's what their customers are demanding. We'll 0:13:41.480 --> 0:13:47.400 see how long that plays out. We talked about that 0:13:47.400 --> 0:13:51.800 they'll Take two again buying who are they buying? Other things? 0:13:54.320 --> 0:13:58.840 Premium twelve billion? Large? That size. I didn't know there 0:13:58.880 --> 0:14:02.680 was that arm for words with friends. It's not even scrabble, 0:14:03.400 --> 0:14:05.240 it's an also ran. All right, let's check in with 0:14:05.240 --> 0:14:07.600 an expert here on this deal. I mean Ben Sad 0:14:07.840 --> 0:14:10.760 he is t MT analyst at Bloomberg Intelligence. I mean, 0:14:10.800 --> 0:14:13.320 thanks so much for taking a time here. Is this 0:14:13.600 --> 0:14:18.000 a good deal for Take two? Their stock is trading down? Yeah? 0:14:18.080 --> 0:14:19.920 I mean thanks for having me and and I think this 0:14:20.000 --> 0:14:22.520 is a very good deal for for Take two, especially 0:14:22.680 --> 0:14:25.640 as when you look at the numbers in this deal. 0:14:26.360 --> 0:14:28.560 First of all, it looks like this is the largest 0:14:28.600 --> 0:14:32.040 video game deal ever from a mini stand point. And 0:14:32.200 --> 0:14:36.600 second of all, Take two previously they had almost ten 0:14:36.640 --> 0:14:39.800 percent of theirselves from mobile, and this deal is gonna, 0:14:40.160 --> 0:14:42.400 you know, the next few years is gonna push that 0:14:42.520 --> 0:14:45.280 to over fifty serves of going to mobile. And that's 0:14:45.320 --> 0:14:48.360 important because mobile is that first is growing. Uh you 0:14:48.400 --> 0:14:52.600 know gaming, Uh certainly, I just I find that so 0:14:52.680 --> 0:14:55.880 hard to believe because I don't know what you can 0:14:55.920 --> 0:14:59.400 do with mobile. I I love video games I have 0:14:59.600 --> 0:15:04.840 ever since, not Pong, but you know, Galactica and all 0:15:04.880 --> 0:15:11.240 the way through, um Super Mario Brothers with Nintendo three 0:15:11.360 --> 0:15:15.440 and none of the Daga up through. You know. Now 0:15:15.480 --> 0:15:18.000 I'm playing Xbox all the time, Call of Duty and 0:15:18.520 --> 0:15:22.320 even Red Dead unfortunately I hate it, but I play it. Um, 0:15:22.360 --> 0:15:25.440 what can you do on mobile? There's like, aside from 0:15:25.480 --> 0:15:29.320 Angry Birds, right, how can it can't even get complex enough? 0:15:30.360 --> 0:15:32.160 You know, First, I would say you actually impressed me 0:15:32.160 --> 0:15:34.880 earlier when you mentioned Collegual Vision, which is, you know, 0:15:34.880 --> 0:15:37.680 one of the oldest came in conforts even before Autari, 0:15:37.800 --> 0:15:41.160 so that was gooding knowledge knowledge there I didn't you 0:15:41.160 --> 0:15:43.800 can know about that. But from gaming, you know, mobile 0:15:43.840 --> 0:15:47.320 has been very successful because we don't target gamers. They 0:15:47.320 --> 0:15:53.080 target uh segment in the population called hyper hyper casual gamers. Right, 0:15:53.240 --> 0:15:55.720 somebody just plays can division a little bit, plays some 0:15:55.920 --> 0:15:59.600 puzzles or something, or farm reels or world with friends, 0:16:00.040 --> 0:16:02.880 and that's why this segment has imploded in the last 0:16:02.880 --> 0:16:05.440 few years, and especially in Asia it has been doing 0:16:05.480 --> 0:16:07.680 really really well. So really, if to focus on the 0:16:07.760 --> 0:16:11.080 hyper casual quote unquote gamers, that's why there is a 0:16:11.120 --> 0:16:14.440 huge success in this platform. I also wonder about the 0:16:14.520 --> 0:16:17.320 lack of gamers. Are we worried that, you know, the 0:16:17.360 --> 0:16:21.320 world just isn't producing enough young people. We're gonna actually 0:16:21.360 --> 0:16:23.960 read a book, We're gonna, we're gonna we're gonna have 0:16:24.120 --> 0:16:27.200 enough video games for sure, But are there enough consumers 0:16:27.240 --> 0:16:31.680 for all this content? Yes? Absolutely, I think overall globally, 0:16:32.040 --> 0:16:35.120 if you include the hyper casual gamers, there's over three 0:16:35.160 --> 0:16:37.920 billion gamers right now. So it's not going to be 0:16:38.000 --> 0:16:40.320 the lack of gamers, especially with this new generation there 0:16:40.320 --> 0:16:43.760 are basically born in gaming. If you think about Fortnight 0:16:43.880 --> 0:16:47.200 and other games like that. Gaming has become much more 0:16:47.240 --> 0:16:50.160 mainstream than news to be back then, and now it's 0:16:50.200 --> 0:16:55.200 all one handed, any billion dollar global industry. So the 0:16:55.360 --> 0:16:57.760 industry is growing, the user basis growing, so it's not 0:16:57.800 --> 0:16:59.920 going to be lack of gamers. I think to your point, 0:17:00.000 --> 0:17:02.560 it's probably the lack of contact. And especially during the pandemic. 0:17:02.840 --> 0:17:07.119 All the major video game makers were impacted by the pandemics, 0:17:07.119 --> 0:17:10.720 but they have lower content that they expected. Uh, and 0:17:11.440 --> 0:17:15.800 talking about this deal here quickly, Uh, Take two kept 0:17:15.840 --> 0:17:19.560 delaying news about g t A six content of for six, 0:17:19.600 --> 0:17:23.120 which is one of the major games being awaited in 0:17:23.119 --> 0:17:25.480 this industry. And this is why this deal kind of 0:17:25.560 --> 0:17:27.720 makes sense to uh, you know, to remove some of 0:17:27.760 --> 0:17:30.040 the headaches in the top line that this company with 0:17:30.119 --> 0:17:32.280 you facing, all right, I mean, thanks so much for 0:17:32.320 --> 0:17:34.359 bringing us up to date on this big deal in 0:17:34.400 --> 0:17:38.040 the gaming space. I mean, Ben sad tmt Annalys, Bloomberg Intelligence, Matt, 0:17:38.320 --> 0:17:40.040 I got, I guess, I gotta. I mean, if you're 0:17:40.040 --> 0:17:43.639 still there, are you a gamer too? Yes? Three years 0:17:43.640 --> 0:17:48.320 gaming I started actually on the Commodore sixty four playing 0:17:48.359 --> 0:17:52.800 space Taxi and Mule, and I've noticed a lot of 0:17:52.840 --> 0:17:54.840 these games are coming back now you can get them 0:17:54.880 --> 0:17:57.800 on your phone. That to me is an interesting thing 0:17:58.000 --> 0:18:02.480 that these um vent games are coming back. Oh yes, look, 0:18:02.640 --> 0:18:05.400 especially the indie companies. They are smaller ones. They make 0:18:05.600 --> 0:18:07.920 games like that because the cord of love of resources. 0:18:07.960 --> 0:18:11.160 And that's why you see Netflix, even Netflix getting into that. So, yes, 0:18:11.280 --> 0:18:13.720 those are coming back because they have a lot of 0:18:13.760 --> 0:18:17.880 interesting stolis there. Very cool. Okay, Paul, you're not a gamer, 0:18:18.040 --> 0:18:20.879 of course not. I'm an adult. Okay, I bet you 0:18:20.880 --> 0:18:23.480 would like Mule. I'm gonna show you Mule during the 0:18:23.520 --> 0:18:25.719 break and then we'll see if, um, if you can 0:18:25.760 --> 0:18:27.879 get into it. It's really it's a market. Okay. I 0:18:28.040 --> 0:18:35.960 aged out after Atari. How about that? The Goldman sacks 0:18:36.040 --> 0:18:39.439 that I grew up with and I competed against was 0:18:39.760 --> 0:18:44.280 investment banking and investment banking, and that was basically and 0:18:44.400 --> 0:18:46.720 bankers and traders, bankers and traders. But since the Great 0:18:47.000 --> 0:18:50.040 was running it then so John Whitehead, uh, it might 0:18:50.080 --> 0:18:53.280 even been like yeah, probably Core designed for a while there. 0:18:53.359 --> 0:18:56.320 I'm going back in the day. Um but they've always 0:18:56.359 --> 0:18:59.520 been the big bank, the big trading desk. But really 0:18:59.560 --> 0:19:02.440 since Great Financial Crisis, they've been really branching out into 0:19:02.560 --> 0:19:05.440 more consumer businesses. And I saw them some news there 0:19:05.720 --> 0:19:09.600 Goldman adds GM credit cards to its Marcus consumer business. 0:19:09.920 --> 0:19:12.199 I just shook my head. But what happened to my 0:19:12.200 --> 0:19:15.000 old Goldman sex? All right? Shanani Basket, Wall Street reporter 0:19:15.040 --> 0:19:17.760 for Bloomberg News. She joins the shore. She follows the 0:19:17.880 --> 0:19:21.920 Wall Street beat closely. Goldman's continuing to expand out its 0:19:21.960 --> 0:19:25.000 consumer business, right, yeah, listen, this is the second big 0:19:25.040 --> 0:19:29.840 partnership that Goldman is announcing here with General Motors. Of course, 0:19:29.880 --> 0:19:32.480 we know they had that big relationship with Apple before. 0:19:32.840 --> 0:19:35.680 What you're seeing here is Goldman start to branch into 0:19:35.720 --> 0:19:39.160 new places, so card business. To what extent do they 0:19:39.160 --> 0:19:43.040 have their ambition to launch their own credit card without 0:19:43.119 --> 0:19:45.880 the co brand? And also what does General Motors give them? 0:19:45.920 --> 0:19:48.600 General Motors already has billions of customers in their own 0:19:48.640 --> 0:19:52.119 credit card business, so now by partner with Goldman, the 0:19:52.160 --> 0:19:54.240 hope is they could really expand on the millions of 0:19:54.240 --> 0:19:58.000 customers they've been able to amass with Apple. To your point, 0:19:58.320 --> 0:20:01.680 General Motors was previews a slee An investment banking client, 0:20:01.760 --> 0:20:06.560 which they then converted now into what you're what do 0:20:06.560 --> 0:20:08.640 you not buy? It, Matt, is that you know what, 0:20:08.840 --> 0:20:13.560 grass grows faster than Goldman Sacks business. This has been 0:20:13.680 --> 0:20:17.080 years in the making, and they seem to have done 0:20:17.440 --> 0:20:22.080 very little with Apple. I mean, they could take over 0:20:22.200 --> 0:20:25.359 your life if they wanted to. Apple and Goldman Sacks 0:20:25.400 --> 0:20:30.040 together you could do everything one stop shop, um from 0:20:30.400 --> 0:20:34.840 savings to checking to investment, credit card, I mean, you 0:20:34.960 --> 0:20:38.520 name it. They're just not doing it. Marcus has taken 0:20:38.600 --> 0:20:41.760 forever to get off the ground. Forever and ever and 0:20:41.840 --> 0:20:44.000 ever and ever we've been talking about it. You were 0:20:44.040 --> 0:20:47.960 in high school to that that's not true. I mean, 0:20:48.000 --> 0:20:50.240 in the last couple of years they have and remember 0:20:50.280 --> 0:20:53.560 these are very highly regulated businesses. To your point, Goldman 0:20:53.640 --> 0:20:57.080 makes a couple hundred million a quarter on their consumer 0:20:57.119 --> 0:21:01.240 business Revolute and and twenty six they came out of 0:21:01.280 --> 0:21:05.240 the gates running, ready to win, picking up customers by 0:21:05.280 --> 0:21:09.440 the millions. And where are they based in Europe exactly. 0:21:09.480 --> 0:21:11.280 So it's been a lot harder in the US for 0:21:11.320 --> 0:21:14.080 the big banks to really get their technology in line, 0:21:14.160 --> 0:21:18.480 which is what makes these partnerships and these efforts so interesting. 0:21:18.680 --> 0:21:21.640 They just need to buy the technology. They already run 0:21:21.680 --> 0:21:24.480 the government, right, so they don't need to worry about regulations. 0:21:24.760 --> 0:21:27.879 The government buys them. Let's the idea of the government 0:21:27.920 --> 0:21:31.160 allowing Goldman Sacks to buy like a Stripe, for example, 0:21:31.240 --> 0:21:33.960 which is a lot more back end infrastructure. The biggest 0:21:34.000 --> 0:21:37.960 payments companies in the US, Matt, the biggest tech companies 0:21:38.480 --> 0:21:42.960 are all back end financial, back of credit cards. They're 0:21:43.000 --> 0:21:45.320 not consumer facing businesses. All Right, we're gonna have the 0:21:45.359 --> 0:21:51.159 Super Bowl this year where so Fi Stadium in Los Angeles. 0:21:51.200 --> 0:21:54.879 So far as a brand, I know, so it's a 0:21:54.920 --> 0:21:57.520 brand that Goldman Sacks knows. So to Matt's point, I'm 0:21:57.520 --> 0:21:59.680 almost at the point by a former set Goldman Sacks banker. 0:22:01.880 --> 0:22:05.760 There's a dollar say it's only ten billion dollar company, 0:22:05.840 --> 0:22:08.159 so you buy that with a couple of partners pocket change. 0:22:08.359 --> 0:22:10.160 But at least that gets you a brand awareness, because 0:22:10.200 --> 0:22:11.399 I think the MAT's point, one of the things that 0:22:11.400 --> 0:22:15.800 I'm surprised about is the brand value. The brand awareness 0:22:15.800 --> 0:22:19.119 of Marcus, I think is still obscure to what you 0:22:19.160 --> 0:22:22.560 can get from it. They just launched investing products. They 0:22:22.560 --> 0:22:24.720 have had that savings product. This is the year that 0:22:24.760 --> 0:22:27.560 they're probably going to open a checking account. Once they 0:22:27.600 --> 0:22:29.719 open that checking account is when they can be a 0:22:29.720 --> 0:22:32.800 real full scale bank for consumers in a bigger way. 0:22:32.880 --> 0:22:35.560 But to your point, they are not that yet by 0:22:35.600 --> 0:22:37.399 any means. I mean, remember when we all got so 0:22:37.440 --> 0:22:39.840 excited about the Apple card before it came out. Oh 0:22:39.880 --> 0:22:41.840 my god, Apple is going to release a credit card. 0:22:42.080 --> 0:22:44.920 This is gonna change finance forever. I gotta get one. 0:22:44.960 --> 0:22:46.359 Do you have an Apple card? Do you have an 0:22:46.359 --> 0:22:49.280 Apple Card? No? Neither. When I use Apple Pay, neither 0:22:49.359 --> 0:22:51.880 do I. Of course we all use Apple Pay. But look, 0:22:51.920 --> 0:22:54.280