WEBVTT - Musk's Big Twitter Backers and Buy Now, Pay Later 0:00:02.320 --> 0:00:05.680 From the heart of where innovation, money and power collive 0:00:06.440 --> 0:00:10.959 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.039 --> 0:00:27.400 Emily Jay I'm Emily taking San Francisco and this is 0:00:27.400 --> 0:00:31.400 Bloomberg Technology. Coming up in the next hour, new information 0:00:31.520 --> 0:00:35.320 on Musk's big backards in his bid to take over Twitter. 0:00:36.080 --> 0:00:38.200 High on the list and who buy based investment firm 0:00:38.240 --> 0:00:40.479 with a secretive founder. We will tell you what you 0:00:40.520 --> 0:00:43.720 need to know. Whilst I'm joined by Clarinas CEO, Sebastian 0:00:43.760 --> 0:00:48.440 Simiatkowski is he ain't worried about Apple moving into Kliners, 0:00:48.520 --> 0:00:53.360 Clarinas buying out pay Later territory, and Arianna Huffington joins 0:00:53.400 --> 0:00:54.840 me to talk about how she got some of the 0:00:54.840 --> 0:00:58.320 biggest companies in the world to sign Thrives mental health 0:00:58.360 --> 0:01:01.840 pledge covering mill and of workers. We're gonna get to 0:01:01.880 --> 0:01:03.920 all of that in a moment, but first, A secretive 0:01:04.200 --> 0:01:07.600 five billion dollar fund is helping elon Musk's bid to 0:01:07.800 --> 0:01:12.120 buy Twitter. By Capital has committed seven hundred million dollars 0:01:12.120 --> 0:01:16.240 to finance Musk's billion dollar deal. The firm is based 0:01:16.400 --> 0:01:20.280 in Dubai and was founded by Alexander Tamas, a German 0:01:20.319 --> 0:01:24.400 investor who previously worked with Russian billionaire Eurie Millner Bloombers. 0:01:24.440 --> 0:01:27.080 Kurt Wagner joins us to discuss. So tell us more 0:01:27.080 --> 0:01:31.720 about the significance, Kurt, of this fund's involvement. Well, I 0:01:31.720 --> 0:01:34.720 think it just goes to show exactly how far reaching 0:01:35.319 --> 0:01:38.440 Elon has had to go in order to get funding 0:01:38.520 --> 0:01:41.119 for this deal. It also kind of goes to show 0:01:41.959 --> 0:01:45.840 how international I think this there is interest in Twitter 0:01:46.080 --> 0:01:49.080 right now and mostly in funding a project that Elon 0:01:49.160 --> 0:01:53.120 Musk cares about. Right Vy has a history of kind 0:01:53.120 --> 0:01:58.520 of connecting itself with these big named tech backers like Elon. 0:01:58.840 --> 0:02:01.880 I think they're also in the boring company which Zilon. Uh. 0:02:02.040 --> 0:02:06.120 They've done some investments um in SpaceX before. So I 0:02:06.160 --> 0:02:08.280 just think there's you know, it kind of gives a 0:02:08.280 --> 0:02:10.360 bit of an international flare to this whole thing, but 0:02:10.400 --> 0:02:13.160 also just goes to show exactly how far Ellen is 0:02:13.200 --> 0:02:15.160 having to go in order to to find funding for 0:02:15.160 --> 0:02:19.280 this thing. And they are the third largest outside equity 0:02:19.400 --> 0:02:21.560 investor in the deal, so that's they're they're getting a 0:02:21.560 --> 0:02:24.079 big chunk of this deal. Talk to us about where 0:02:24.080 --> 0:02:27.480 the discussions between Musk and Twitter stand on bots. There's 0:02:27.520 --> 0:02:30.400 been a lot of back and forth. Right, Yeah, So 0:02:30.440 --> 0:02:33.440 the latest this week was that Elon came forward. He 0:02:33.960 --> 0:02:37.720 formally filed a letter with the SEC saying again, you know, hey, 0:02:37.760 --> 0:02:39.880 I may walk away from this deal if I don't 0:02:39.919 --> 0:02:43.360 start getting information to prove that the Botto number Twitter 0:02:43.400 --> 0:02:46.120 claims is the Botto number is legit. And now what 0:02:46.280 --> 0:02:48.720 we heard from yesterday was that Twitter is going to 0:02:48.760 --> 0:02:50.920 give him access to the A p I, which is 0:02:50.960 --> 0:02:54.799 known colloquially as the fire hose of tweets. Right, so 0:02:54.960 --> 0:02:57.799 every public tweet on Twitter is now going to be 0:02:57.880 --> 0:03:00.200 accessible to Ellen and his team. They can do with 0:03:00.240 --> 0:03:02.440 that what they wish. I'm not exactly sure if that's 0:03:02.440 --> 0:03:05.000 going to answer the box question for him, but it 0:03:05.040 --> 0:03:07.200 does show that they're trying to figure out a middle 0:03:07.200 --> 0:03:09.120 ground here where he can get the answers he needs 0:03:09.120 --> 0:03:11.880 and they can move this thing forward. Meantime, we've also 0:03:11.919 --> 0:03:15.320 been coming another story. Meta had been working on a 0:03:15.440 --> 0:03:17.840 watch that we imagine would have been a competitor to 0:03:18.400 --> 0:03:24.120 the Apple Watch. They've now stopped those plans. What happened here, Yeah, 0:03:24.200 --> 0:03:25.959 so they're still working on a smart watch. I do 0:03:26.080 --> 0:03:27.680 want to be clear about that. But the one that 0:03:27.720 --> 0:03:29.360 we have been talking about and that you may have 0:03:29.440 --> 0:03:32.200 seen written up in the press is no longer going 0:03:32.240 --> 0:03:34.400 to be developed. And that one had two cameras. That 0:03:34.480 --> 0:03:35.840 was kind of what made it unique. It at a 0:03:35.880 --> 0:03:38.200 front facing camera, but also a camera on the back, 0:03:38.240 --> 0:03:40.480 and you could take the watch off of the strap 0:03:40.760 --> 0:03:43.080 and kind of hold it up to take pictures. And 0:03:43.120 --> 0:03:45.640 what happened was that back camera that was against your 0:03:45.640 --> 0:03:50.280 wrist that was interfering with the company's ability to um 0:03:50.600 --> 0:03:53.720 use the watch as a controller. Right, So one of 0:03:53.760 --> 0:03:56.000 the things they want to do with wrist wearables is 0:03:56.000 --> 0:03:58.200 they want to be able to determine when you're moving 0:03:58.240 --> 0:04:00.680 your hand or your fingers so that you can use 0:04:00.720 --> 0:04:04.440 that as a controller for example augmented reality glasses. And 0:04:04.480 --> 0:04:06.960 the camera was interfering there. So they're gonna get rid 0:04:07.000 --> 0:04:09.240 of this prototype and they're gonna do something else with 0:04:09.280 --> 0:04:11.400 the watch. But again, as you pointed out, this was 0:04:11.480 --> 0:04:13.800 kind of considered something that maybe they were doing to 0:04:13.920 --> 0:04:15.880 compete with the Apple Watch. So the fact that they're 0:04:15.920 --> 0:04:20.799 moving to something else UM obviously is notable. Alright, Bloomber, 0:04:20.920 --> 0:04:23.400 Kurt Wagner, thank you for your reporting on this. Now 0:04:23.440 --> 0:04:26.400 back to that Musk Twitter deal. Another backer of that deal, 0:04:26.400 --> 0:04:29.640 of course, is Larry Ellison, the Oracle founder, is the 0:04:29.680 --> 0:04:33.120 world's eleventh richest person, with a net worth of eighty 0:04:33.120 --> 0:04:36.520 eight point nine billion dollars. In two thousand twelve, he 0:04:36.560 --> 0:04:40.240 bought of the Hawaiian island of lan I for three 0:04:40.360 --> 0:04:44.760 hundred million dollars. That purchase came with two four seasons resorts, 0:04:44.760 --> 0:04:48.440 a significant chunk of its homes, and practically all of 0:04:48.440 --> 0:04:54.159 its commercial properties. Overnight, Ellison became almost everyone's boss, landlord, 0:04:54.720 --> 0:04:58.960 or both. In today's Big Take Blue, Sophie Alexander took 0:04:59.000 --> 0:05:01.320 a deep dive on the impact this has had on 0:05:01.360 --> 0:05:04.960 the people of Lenin and Sophie, I'm from Hawaii. We 0:05:05.080 --> 0:05:07.279 call it La Nutty there talked to us about the 0:05:07.320 --> 0:05:10.440 history of this island. I'm very familiar with it. How 0:05:10.560 --> 0:05:13.640 is it that one person was able to buy almost 0:05:13.680 --> 0:05:17.200 the entire island. Yeah, it's unique because you think of 0:05:17.240 --> 0:05:19.600 billionaires buying private islands and it's not that big of 0:05:19.640 --> 0:05:21.600 a deal. But this one is different because it has 0:05:21.680 --> 0:05:25.159 three thousand people who live there. Uh So, Lena's history 0:05:25.279 --> 0:05:28.280 goes back into the eighteen hundreds when one person came 0:05:28.320 --> 0:05:31.240 over and started buying up chunks of the land. And 0:05:31.400 --> 0:05:35.160 slowly accumulated pretty much the entire island, like of it, 0:05:35.440 --> 0:05:37.800 and that passed from one family to another until in 0:05:39.160 --> 0:05:41.920 James Dole bought it and he started turning it into 0:05:42.000 --> 0:05:45.839 the world's largest pineapple plantation, which it was for seven decades. 0:05:46.080 --> 0:05:48.640 Then it passes to another billionaire, David Murdoch, whom as 0:05:48.680 --> 0:05:51.320 chairman of Dole, and then in two thousand twelve Larry 0:05:51.320 --> 0:05:54.640 Ellison bought it. And of course there are still thousands 0:05:54.720 --> 0:05:59.000 of regular people who live there. How exactly are they 0:05:59.080 --> 0:06:03.480 being impacted by Larry Allison now owning it? Yeah, this 0:06:03.560 --> 0:06:06.480 is interesting because, like I said, the people who live 0:06:06.520 --> 0:06:09.039 there and have lived there for generations are used to 0:06:09.200 --> 0:06:11.800 being under the control of a single company or a 0:06:11.839 --> 0:06:15.080 single person or family. But Larry Ellison is a whole 0:06:15.120 --> 0:06:17.520 different animal. As one person put it, you know, he's 0:06:17.520 --> 0:06:20.320 got ninety billion dollars. That's a lot of money. I mean, 0:06:20.360 --> 0:06:22.880 it's nearly double what you have before the pandemic started. 0:06:23.120 --> 0:06:25.360 The last billionaire, David Murdoch, he only had like two 0:06:25.400 --> 0:06:28.680 billion dollars. They call him the poor billionaire. Um, so 0:06:28.920 --> 0:06:31.080 Larry can really do whatever he wants. And it's it's 0:06:31.080 --> 0:06:34.760 starting to show and what exactly is he doing? I 0:06:34.760 --> 0:06:36.920 mean this tell us the stories in your article are 0:06:37.120 --> 0:06:41.200 just absolutely fascinating, right, so true billionaire form. You know, 0:06:41.240 --> 0:06:43.240 as soon as Larry gets there, he decides he doesn't 0:06:43.240 --> 0:06:45.799 like the food, so he builds one nobu. Now there's 0:06:46.120 --> 0:06:49.320 another sense a buy nobu. He renovates the two fours 0:06:49.320 --> 0:06:52.440 and seasons resorts and so now they're fancier than ever 0:06:52.680 --> 0:06:55.240 for you know, thousands of dollars tens of thousands of 0:06:55.279 --> 0:06:57.800 dollars a night, um. And he's also doing things for 0:06:57.800 --> 0:07:00.760 the community. You know, he bought the tree store and 0:07:00.839 --> 0:07:03.560 he renovated it um. But that is the main concern 0:07:03.640 --> 0:07:06.520 is that he's buying up a lot of the small businesses. 0:07:06.560 --> 0:07:09.320 He's buying up some more houses, and people are nervous. 0:07:09.880 --> 0:07:13.160 So generally are people you know, you use the word nervous. 0:07:13.160 --> 0:07:16.240 They're they're not happy with this, I think, even though 0:07:16.280 --> 0:07:18.880 they're getting a new grocery store for example. Sure, I 0:07:18.920 --> 0:07:20.760 mean it depends who you ask, but I think it's 0:07:20.760 --> 0:07:23.480 more of an anxiety because the big problem is a 0:07:23.560 --> 0:07:27.240 lack of communication. People don't know what ultimately Larry's plans are, 0:07:27.760 --> 0:07:30.160 and so they just don't know what their future is 0:07:30.200 --> 0:07:32.320 going to look like here, and so more and more 0:07:32.360 --> 0:07:34.280 of them feel like there's not a place for them 0:07:34.320 --> 0:07:36.920 on the island. There it's being catered to the uber, 0:07:37.040 --> 0:07:40.040 uber wealthy, not for for locals. Well, and a lot 0:07:40.080 --> 0:07:43.760 of these people, you know, their livelihoods, they service the resorts, 0:07:43.760 --> 0:07:46.480 they work at these resorts. Is Larry Ellison's spending a 0:07:46.520 --> 0:07:49.160 lot of time there personally. Do we know anything about 0:07:49.200 --> 0:07:52.200 his endgame? Yes, So he moved there during the pandemic 0:07:52.280 --> 0:07:54.360 and that's been key because you know, it's kind of 0:07:54.400 --> 0:07:56.880 like out of place, out of mind. Now that he's there, 0:07:57.080 --> 0:07:59.679 all of his plans are picking up. So he's building 0:07:59.680 --> 0:08:02.560 a monk story school, He's building a five home complex 0:08:02.640 --> 0:08:05.400 for himself. Um, you know, he's building a new housing 0:08:05.400 --> 0:08:08.080 project to house all of his construction workers because housing 0:08:08.160 --> 0:08:10.440 is a huge issue on the island. He's shut down 0:08:10.440 --> 0:08:13.280 his third hotel for workforce housing for the entire year. 0:08:13.600 --> 0:08:15.520 And a lot of this is happening with very little 0:08:15.520 --> 0:08:20.000 communication or no communication with community. M interesting. Well, it's 0:08:20.000 --> 0:08:22.040 a fascinating read. You can check it out this week's 0:08:22.040 --> 0:08:26.240 Bloomberg Big Take. Socie Alexander, thank you. Check out the 0:08:26.360 --> 0:08:31.200 article in Bloomberg Business week, while more musical chairs at Disney, 0:08:31.200 --> 0:08:34.600 CEO Bob Chpeck has abruptly fired the head of Television, 0:08:34.840 --> 0:08:38.400 Peter Rice, for not being a team player. According to 0:08:38.400 --> 0:08:42.600 Bloomberg sources, Rice was chair of General Entertainment Content and 0:08:42.679 --> 0:08:47.400 oversaw a vast swath of shows carried across Disney Networks. 0:08:47.600 --> 0:08:50.200 The sudden firing is the latest twist and a tumultuous 0:08:50.200 --> 0:08:53.320 stretch for tape Chpeck. His leadership has come under scrutiny 0:08:53.360 --> 0:08:55.680 over the last year as he wrestled with challenges that 0:08:55.720 --> 0:08:58.960 included a high profile dust stop with Florida Governor Rohnda 0:08:59.040 --> 0:09:03.319 Santis over a new law limiting discussion of sexual identity 0:09:03.679 --> 0:09:15.640 in classrooms. We're learning more about Apple's jump into the 0:09:15.679 --> 0:09:18.559 buy now, pay later business. The company will actually handle lending, 0:09:18.600 --> 0:09:21.599 including credit checks, with a new business called Apple Financing, 0:09:21.679 --> 0:09:26.360 marking a significant further push into financial services. Some see 0:09:26.360 --> 0:09:28.680 this push as a threat to the more established players, 0:09:28.720 --> 0:09:32.360 including a firm and Clarina. But is it joining me now? 0:09:32.440 --> 0:09:36.240 Sebastian Schimakowsky, CEO and co founder of Clarina and Sebastian 0:09:36.280 --> 0:09:38.480 I was at Apple when they were unveiling this and 0:09:38.520 --> 0:09:43.360 everyone immediately thought about companies like Clarina and a firm 0:09:43.400 --> 0:09:47.599 you tweeted that plagiarism is the highest form of flattery. 0:09:47.640 --> 0:09:52.760 But are you worried that this could hurt your business? Not? Right? 0:09:52.800 --> 0:09:55.000 For first of almost like, I think it's a great 0:09:55.040 --> 0:09:57.800 win for consumers world one that Apple is now embracing 0:09:57.880 --> 0:10:01.280 a better form of consuming credit. Um, we're looking at 0:10:01.320 --> 0:10:05.160 an industry of retail banking payments that you know has 0:10:05.160 --> 0:10:08.359 an addressable market of four hundred forty billion dollars worldwide, 0:10:08.720 --> 0:10:11.520 and it has been constructed in a way traditionally where 0:10:11.600 --> 0:10:14.440 credit cards have been making it fortune by trying to 0:10:14.480 --> 0:10:17.360 get us to revolve at high interest rates once we 0:10:17.440 --> 0:10:20.160 get that prayer card statement every month. And this form 0:10:20.200 --> 0:10:23.360 of credit is better for consumers. So I think it's 0:10:23.440 --> 0:10:26.080 it's it's fantastic, And Plana has been offering this form 0:10:26.080 --> 0:10:28.880 of credit for a while. I actually would be mostly 0:10:28.880 --> 0:10:31.240 worried if I was one of those predre card banks 0:10:31.520 --> 0:10:34.120 who embraced Apple Pay. Was so happy to embrace this 0:10:34.160 --> 0:10:38.400 new technology and now suddenly find myself having this company 0:10:38.720 --> 0:10:42.160 in front of my credit card promoting an interest free 0:10:42.200 --> 0:10:45.640 credit instead of my forty percent revolving credit one and 0:10:45.679 --> 0:10:50.679 then pushing the customer to another provider. I that that's 0:10:50.720 --> 0:10:52.840 the that to be should be the big headline of 0:10:52.880 --> 0:10:55.240 this news for US. I mean, Flana has a hundred 0:10:55.280 --> 0:10:58.640 fifty million users worldwide, where one of the largest third 0:10:58.640 --> 0:11:01.520 party globe and payment networks in the world. Paying for 0:11:01.679 --> 0:11:04.800 is a fantastic product. It has done tremendously well for 0:11:04.880 --> 0:11:06.360 us in the US and helped us a lot to 0:11:06.440 --> 0:11:09.320 gain recognition and so forth. But people are using us 0:11:09.640 --> 0:11:12.520 for a lot of reasons, one not the least being 0:11:12.559 --> 0:11:15.200 the fact that we're the richest data payments networks in 0:11:15.200 --> 0:11:17.160 the world because we have skew level data and digital 0:11:17.160 --> 0:11:20.160 receipts on every transaction, allowing us to create a much 0:11:20.559 --> 0:11:24.440 richard consumer experience. Transactions are debit, not even credit. People 0:11:24.480 --> 0:11:27.280 don't know that um and so forth. So so I mean, 0:11:27.440 --> 0:11:30.439 I'm working. I always think competition is nice, and I'm 0:11:30.520 --> 0:11:33.120 I'm also fortunate to have a neighbor here in Daniel X, 0:11:33.240 --> 0:11:35.720 the founder of Spotify, who has has can give me 0:11:35.760 --> 0:11:40.120 some tips on how to compete with Apple successfully. Obviously good. 0:11:40.400 --> 0:11:44.080 Good to know that you and Eck are friendly. I 0:11:44.120 --> 0:11:48.120 also spoke with a firm CEO, Max Election he similarly, 0:11:48.520 --> 0:11:50.120 you know, said it was a win for consumers, but 0:11:50.120 --> 0:11:53.800 he also said something else. Take a listen why I'm 0:11:53.800 --> 0:11:57.720 not particually worried about Apple pay entering the bioppulator space. 0:11:58.520 --> 0:12:01.319 They're focused on the can into the six week product, 0:12:01.480 --> 0:12:04.000 which I think is great and display of competitors, and 0:12:04.040 --> 0:12:07.319 they should be worried. I think this spells a certain 0:12:07.400 --> 0:12:09.680 level of concern for folks that are really specialized in 0:12:09.679 --> 0:12:14.040 this really short term product. That's not calling out Klina. 0:12:15.720 --> 0:12:18.760 He might, you know, it's funny me and act of 0:12:18.800 --> 0:12:22.800 a long history. I remember presenting Clana at depth, trying 0:12:22.800 --> 0:12:24.559 to recruit him as a board member, and then being 0:12:24.559 --> 0:12:28.040 surprised by him announcing a firm six months later. Um, 0:12:28.200 --> 0:12:30.720 so we have if we have a we have a 0:12:30.720 --> 0:12:34.559 fun history me and Max. But look, I think, look, 0:12:35.320 --> 0:12:38.559 they're very distinctly He's He's very accurate about one thing, 0:12:38.559 --> 0:12:40.720 and that is that Clana and a firm are distinctly 0:12:40.760 --> 0:12:46.280 different businesses. If I've understood the firm's reporting correct, their 0:12:46.280 --> 0:12:52.679 businesses is um is financing, long term financing. If I 0:12:52.720 --> 0:12:57.640 understand correct reports online, fifty of their UM of their 0:12:57.800 --> 0:13:02.160 balance credit is priced at only five to interest rate 0:13:02.600 --> 0:13:04.800 rates that we don't even go up to Plana max. 0:13:04.920 --> 0:13:07.600 My maxisized at twenty five. So it's a very different 0:13:07.600 --> 0:13:12.720 businesses lending high ticket items to people that think interest 0:13:12.800 --> 0:13:15.880 rate is attracted. Clina is that pay interest free product. 0:13:16.120 --> 0:13:18.760 It's a payments product. We have the largest account to 0:13:18.760 --> 0:13:21.280 account based payments network in the world. So these these 0:13:21.320 --> 0:13:25.280 are distinct different businesses and and and so yes, I 0:13:25.280 --> 0:13:27.160 think that in that I agree with him, and I 0:13:27.200 --> 0:13:30.200 don't think it's accuracy. So some some shots fired there. 0:13:30.200 --> 0:13:32.240 I'm gonna have to get Max to respond to that. 0:13:32.320 --> 0:13:34.560 You know. He also talked about how a firm. He 0:13:34.600 --> 0:13:36.640 also talked about how a firm is hiring and Clarina 0:13:36.760 --> 0:13:39.520 did have some layoffs recently. I believe you and I 0:13:39.600 --> 0:13:41.679 was planned to lay off ten percent of your workforce. 0:13:42.080 --> 0:13:44.440 When you look back, do you see any mistakes in 0:13:44.480 --> 0:13:48.559 your execution? And you know, does this mean that you're 0:13:48.640 --> 0:13:52.640 kind of slightly less optimistic about how big the market 0:13:52.679 --> 0:13:56.080 can be for Klina than you work? No, I think 0:13:56.080 --> 0:13:58.680 look for us, there's a long term opportunity in this 0:13:58.960 --> 0:14:01.440 which has been that I believe we're going through a 0:14:01.520 --> 0:14:05.440 similar revolution in retail banking and payments that retail went 0:14:05.480 --> 0:14:07.800 through ten years ago. You remember, I've been running Plan 0:14:07.880 --> 0:14:11.840 Up for fourteen seventeen years now, where of the fourteen 0:14:11.960 --> 0:14:16.440 first year we're profitable um and and I went through 0:14:16.440 --> 0:14:18.640 the financial crisis with this company two thousand seven and 0:14:18.679 --> 0:14:22.200 two thousand a. So, but what happened in the last 0:14:22.240 --> 0:14:24.600 two years is that we've been very focused on establishing 0:14:24.600 --> 0:14:26.600 yourselves in the US. We're proudly we have twenty five 0:14:26.640 --> 0:14:29.360 million users that we see, you know, Macy's and Support 0:14:29.440 --> 0:14:32.280 and big fantastic brands in the U S adopted Klan 0:14:32.400 --> 0:14:34.800 and it is offering Klan Up today. So it's been 0:14:34.800 --> 0:14:37.880 a very very um a time where we've been investing 0:14:37.920 --> 0:14:40.080 a lot, and it's been very clear, as I think 0:14:40.120 --> 0:14:42.280 a lot of other companies in the US have understood 0:14:42.280 --> 0:14:44.800 now as well, that there is a shift in investors. 0:14:45.160 --> 0:14:48.520 You know, investors being entirely focused on asking for what 0:14:48.560 --> 0:14:51.360 are you doing to grow faster six to nine months ago, 0:14:51.400 --> 0:14:54.160 are now starting to ask questions about profitability and softwath 0:14:54.200 --> 0:14:56.000 And again we have the benefit of having been a 0:14:56.040 --> 0:14:57.920 profitable company for a lot of for a long period 0:14:57.920 --> 0:15:01.040 of time. We now invested heavily. We we we said, look 0:15:01.160 --> 0:15:03.360 the in goal is exactly the same that it has 0:15:03.400 --> 0:15:05.960 always been, but it's going to be a slightly different 0:15:06.000 --> 0:15:08.880 path towards that, and the unfortunately led us to something 0:15:08.920 --> 0:15:11.400 that you know, I find obviously very sad that we 0:15:11.920 --> 0:15:14.920 as a consequence of that, decided to make changes to 0:15:15.200 --> 0:15:17.480 how the order looks and how it's set up, and 0:15:17.480 --> 0:15:22.720 that has led us to suggest and ask people to uh, 0:15:22.760 --> 0:15:25.080 you know, offer them severance packages and so forth, and 0:15:25.120 --> 0:15:27.800 as some people to to leave Plana, which is abviously 0:15:27.840 --> 0:15:30.200 very sad because I think this is all amazing talent, 0:15:30.280 --> 0:15:33.480 amazing people that you know have have contributed to the company. 0:15:33.600 --> 0:15:35.600 So it's a sad thing to do, but I think 0:15:35.600 --> 0:15:38.960 it's it's the right thing considering how the marketing look nowadays, 0:15:39.000 --> 0:15:41.720 and I think it will set up up even better 0:15:41.760 --> 0:15:45.600 for for future success going forward. Now in this new 0:15:45.680 --> 0:15:48.400 in this new market environment that we're in. Well, I 0:15:48.400 --> 0:15:49.880 know you made quite a move and shared some of 0:15:49.920 --> 0:15:53.480 their their details, which um, I hope they're getting some 0:15:53.560 --> 0:15:56.880 inbound all of that great talent um. As you've said, 0:15:56.920 --> 0:15:59.040 the goal is to become the world's largest retail bank. 0:15:59.600 --> 0:16:03.080 Given regulation, given the changing competitive landscape, how far out 0:16:03.120 --> 0:16:07.480 is that vision In the United States? And abroad. No, 0:16:07.640 --> 0:16:12.040 we're quite far actually ahead. Right. So I to me, like, 0:16:12.200 --> 0:16:14.000 if you look at this from a future perspective, what 0:16:14.040 --> 0:16:16.800 I believe in, what I believe a longer time is 0:16:16.840 --> 0:16:19.000 that like someday in the future, you wake up in 0:16:19.040 --> 0:16:22.479 the morning, your computer says to your your financial assistant, 0:16:22.480 --> 0:16:24.920 Digital as system says, hey have analyzed your mortgage, tonyed 0:16:24.960 --> 0:16:27.360 I realized it, could you know, save you x amount 0:16:27.360 --> 0:16:29.680 of the nars by shifting from supplier A to supplier B. 0:16:30.360 --> 0:16:32.440 And the only thing you need to say yes, it's 0:16:32.440 --> 0:16:34.440 a little bit like self driving cars. I don't know 0:16:34.480 --> 0:16:36.240 when it's going to happen, but I do know it 0:16:36.280 --> 0:16:39.360 will happen. So the future of banking is very different 0:16:39.400 --> 0:16:42.040 to what we've traditionally seen, where banks have been obsessed 0:16:42.120 --> 0:16:45.120 with what they called maximizing interest rate spread, meaning you know, 0:16:45.200 --> 0:16:47.360 giving the positors as a little as possible and then 0:16:47.400 --> 0:16:50.520 borrowing it out the highest possible interest rate. The true 0:16:50.560 --> 0:16:53.640 future retail banking financial services is somebody's on the consumer 0:16:53.680 --> 0:16:56.560 side trying to help them save time, save money, make 0:16:56.880 --> 0:16:59.320 you the less worried about their finances. And it's been 0:16:59.400 --> 0:17:02.400 very clear to me that that who those five or 0:17:02.440 --> 0:17:05.439 four large companies that will dominate that space in the 0:17:05.480 --> 0:17:07.800 next ten years on a global basis will be that 0:17:07.880 --> 0:17:11.080 somebody's global and somebody has a banking background and it's 0:17:11.119 --> 0:17:13.040 willing to pursue that. There will be some tech companies 0:17:13.040 --> 0:17:15.960 pursuing that. We see Apple now pursuing some of that. 0:17:16.040 --> 0:17:18.040 There will be some fin techs, and there will be 0:17:18.359 --> 0:17:20.760 some traditional banks. And I think Planna would have hundred 0:17:20.760 --> 0:17:23.639 fifty million users and with a data set that is 0:17:23.760 --> 0:17:25.879 much richer than anyone else due to the you know 0:17:25.920 --> 0:17:28.119 the fact that we have skew level data on all transactions. 0:17:28.160 --> 0:17:31.359 It's giving us a tremendous opportunity to lead the game 0:17:31.480 --> 0:17:34.199 in providing more value for consumers and really be on 0:17:34.240 --> 0:17:36.600 the consumer side. And I'm also happy now that even 0:17:36.600 --> 0:17:39.000 though media has questioned things like buying now, pay later, 0:17:39.160 --> 0:17:41.399 we're seeing other people adopting and recognizing that this is 0:17:41.440 --> 0:17:43.080 a better form of credit as well. So I think 0:17:43.080 --> 0:17:45.160 it's verifying a lot of the assumptions that we've had, 0:17:45.359 --> 0:17:48.480 and so I feel very excited about it. Sebastian Chimakowsky, 0:17:48.680 --> 0:17:52.960 Corner CEO, thank you for joining us as always coming up. 0:17:53.080 --> 0:17:58.200 Meta is now a leader in another social media trend lawsuits. 0:17:58.600 --> 0:18:00.840 Why the company has been sued more than half a 0:18:00.880 --> 0:18:04.640 dozen times just in the last week. That is next. 0:18:04.720 --> 0:18:13.800 This is Bloomberg. In the last week, eight lawsuits have 0:18:13.840 --> 0:18:16.760 been filed across the country against Meta, the suits alleging 0:18:16.800 --> 0:18:21.280 that the company built algorithms leading young people into addiction. 0:18:21.359 --> 0:18:24.399 For more, I'm joined now by Bloomberg's Alafi Nayak Malthy. 0:18:24.440 --> 0:18:25.920 Thank you so much for joining us. So what kind 0:18:25.920 --> 0:18:28.480 of addiction are you talking about here? So? The users 0:18:28.480 --> 0:18:31.800 who suit Meta claiming that Facebook and Instagram have created 0:18:31.840 --> 0:18:37.680 algorithms and products that keep users hooked onto um its platforms, 0:18:37.760 --> 0:18:41.119 especially young users, and that they promote excessive use of 0:18:41.200 --> 0:18:45.280 these platforms through these algorithms. The claiming that Meta knew 0:18:45.400 --> 0:18:49.000 that these algorithms were problematic, that they would lead to 0:18:49.080 --> 0:18:52.639 issues such as eating disorders a d h D, and 0:18:52.720 --> 0:18:57.560 depression among young users, but that the company continued to 0:18:57.640 --> 0:19:00.720 keep these products and services going to drive profit. This 0:19:00.960 --> 0:19:04.359 echoes what the Facebook whistle blower quote unquote Francis Halgan 0:19:04.400 --> 0:19:09.160 testified to Congress about how is Facebook responding? So Facebook 0:19:09.200 --> 0:19:13.679 hasn't responded in court as yet, but spokesperson declined to 0:19:13.720 --> 0:19:17.879 comment because it is active litigation. But she did point 0:19:17.880 --> 0:19:21.400 to some efforts by Facebook recently such as having tools 0:19:21.640 --> 0:19:26.080 um for parents to control screen time and also enough 0:19:26.200 --> 0:19:29.679 resources like having these little pop up messages that come up. 0:19:29.720 --> 0:19:32.760 If a user looks for information on and eating disorder, 0:19:32.800 --> 0:19:35.160 for example, then there will be some tips and resources 0:19:35.240 --> 0:19:37.080 that will pop up on screen to sort of help 0:19:37.160 --> 0:19:40.000 the help the young user deal with certain issues. Are 0:19:40.000 --> 0:19:43.720 these lawsuits coordinated so there are a bunch of firms. 0:19:44.200 --> 0:19:46.840 There's one group in Seattle, and then there's another firm 0:19:46.840 --> 0:19:49.280 called Beasley Allen which just filed these eight suits in 0:19:49.320 --> 0:19:51.920 the last week. UM. So at some point they could 0:19:51.920 --> 0:19:55.080 all get consolidated in court, but right now their separate 0:19:55.080 --> 0:19:59.040 efforts interesting. Gos Mouth and I thank you, thank you 0:19:59.080 --> 0:20:10.000 for that update. Welcome back to Bloomer Technology and Emily 0:20:10.040 --> 0:20:13.119 Chang in San Francisco. We have heard so much about 0:20:13.280 --> 0:20:15.680 mental health over the last few years as we've all 0:20:15.760 --> 0:20:18.639 had to navigate the uncertainty of a pandemic from home 0:20:19.040 --> 0:20:21.960 to work. This is why Thrive has partnered with the 0:20:22.040 --> 0:20:24.720 Society for Human Resource Management to get some of the 0:20:24.800 --> 0:20:28.760 biggest companies from Microsoft to Salesforce, Cisco, Uber, and Walmart 0:20:29.119 --> 0:20:32.440 to make a commitment to employees mental health and well being. 0:20:32.640 --> 0:20:35.720 Joining me right now, Founder and CEO of Thrive, Arianna 0:20:35.800 --> 0:20:39.200 Huffington's Arianna, great to have you back with us. So 0:20:39.240 --> 0:20:44.919 what exactly are these companies committing to do? So Basically, 0:20:45.000 --> 0:20:50.000 they're committing during the staff economic times ahead, not to 0:20:50.160 --> 0:20:54.760 cut mental health and well being offerings to their employees 0:20:54.920 --> 0:20:57.399 as you know, and really offered. The last two years, 0:20:57.440 --> 0:21:02.280 we've seen an incredible increase offered. Ninety companies have increased 0:21:02.280 --> 0:21:05.840 their mental health and well being offerings to their employees. 0:21:05.960 --> 0:21:10.240 Over the last two years, practically every company became also 0:21:10.280 --> 0:21:14.640 a healthcare company. And these are amazing advances, and US 0:21:14.720 --> 0:21:17.920 companies are making tough decisions. So we wanted to make 0:21:17.960 --> 0:21:21.000 sure that there was a real commitment not to cut 0:21:21.040 --> 0:21:25.439 down these fundamental services, especially at the time when the 0:21:25.560 --> 0:21:30.440 mental health crisis is seen as the second pandemic, and 0:21:30.960 --> 0:21:34.199 we were thrilled with a response. Within a week, we 0:21:34.320 --> 0:21:42.720 got over eighty both Fortune ten companies and also high 0:21:42.760 --> 0:21:48.480 growth startups to join the pledgere and sign up. Now, 0:21:48.520 --> 0:21:51.159 we've been hearing a lot of talk about mental health lately. 0:21:51.359 --> 0:21:55.440 It's also being blamed for gun violence. I'm curious if 0:21:55.480 --> 0:22:00.919