1 00:00:02,440 --> 00:00:08,520 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,840 --> 00:00:13,119 Speaker 2: From Mahart where Innovation, money and power Collie in Silicon Valley, NBN. 3 00:00:13,480 --> 00:00:17,520 Speaker 3: This is Bloomberg Technology with Caroline Hyde and Ed loved Love. 4 00:00:31,040 --> 00:00:33,400 Speaker 4: I'm Caroline Hein and Bloomberg's World headquarters in New York 5 00:00:33,720 --> 00:00:35,560 Speaker 4: and I'm Ed Ludlow in San Francisco. 6 00:00:35,880 --> 00:00:37,720 Speaker 5: This is Bloomberg Technology. 7 00:00:37,280 --> 00:00:40,519 Speaker 4: Coming up paramount for places at CEO as M and 8 00:00:40,560 --> 00:00:42,440 Speaker 4: a buzz over shadows results. 9 00:00:42,560 --> 00:00:44,640 Speaker 6: Full coverage ahead, plus. 10 00:00:44,560 --> 00:00:48,200 Speaker 7: We push ahead to result from Amazon, AMD and Pinterest, 11 00:00:48,360 --> 00:00:50,199 Speaker 7: all reporting after the belt. 12 00:00:49,920 --> 00:00:53,080 Speaker 6: And former finance CEO at CZ heads. 13 00:00:52,880 --> 00:00:55,720 Speaker 4: To court as prosecutors seek three years in prison. Will 14 00:00:55,760 --> 00:00:58,160 Speaker 4: bring you the latest headlines as they cross, but first 15 00:00:58,640 --> 00:01:00,720 Speaker 4: a check in on these markets and look, the macro 16 00:01:00,800 --> 00:01:03,400 Speaker 4: picture not looking so pretty today and it forces stocks lower. 17 00:01:03,600 --> 00:01:05,760 Speaker 4: You get well the cost of labor at the moment, 18 00:01:05,800 --> 00:01:09,000 Speaker 4: the ECI number coming in higher than expected, and well 19 00:01:09,120 --> 00:01:11,440 Speaker 4: overall confidence from a consumer plunging. 20 00:01:11,600 --> 00:01:13,039 Speaker 6: That means we're not looking so pretty. 21 00:01:13,080 --> 00:01:15,640 Speaker 4: Heading into a Federal Reserve meeting that of course ends tomorrow, 22 00:01:15,800 --> 00:01:17,760 Speaker 4: and we hear from Jaypower off by four ten percent 23 00:01:17,800 --> 00:01:20,600 Speaker 4: on the NASDAK tenure yield pushing higher of course, where 24 00:01:20,640 --> 00:01:22,240 Speaker 4: boring costs rise, So stock's full. 25 00:01:22,319 --> 00:01:24,679 Speaker 6: We're at four point sixty six, that's what usually the 26 00:01:24,720 --> 00:01:25,200 Speaker 6: trend is. 27 00:01:25,400 --> 00:01:28,360 Speaker 4: We're seeing dollar stronger versus the Japanese end today, a 28 00:01:28,400 --> 00:01:31,720 Speaker 4: completely flip reverse from yesterday. Looks as though Japan did 29 00:01:31,720 --> 00:01:34,120 Speaker 4: indeed have some intervention into the markets to try and 30 00:01:34,160 --> 00:01:36,760 Speaker 4: prop up the yen. For now it's weaker against the 31 00:01:36,880 --> 00:01:38,520 Speaker 4: US dollar. Let's move on to have a look at 32 00:01:38,520 --> 00:01:41,280 Speaker 4: what's also we could get versus the US dollar. Bitcoin 33 00:01:41,360 --> 00:01:43,440 Speaker 4: along with other risk asset said on the downside, rob 34 00:01:43,440 --> 00:01:46,080 Speaker 4: by two point percent, sixty one thousand. This is wrapping 35 00:01:46,160 --> 00:01:48,960 Speaker 4: up to be a pretty poor month of April, the worst. 36 00:01:48,920 --> 00:01:50,840 Speaker 6: Since, of course the FTX scandal. 37 00:01:51,320 --> 00:01:54,160 Speaker 4: Down somewhat sixteen percent over the course of April for bitcoin, 38 00:01:54,200 --> 00:01:55,880 Speaker 4: and indeed we're seeing a pretty. 39 00:01:55,640 --> 00:01:56,840 Speaker 6: Poor month for stocks. 40 00:01:56,880 --> 00:02:00,000 Speaker 4: More overall, Nasdaq I think having its worst months since October. 41 00:02:00,120 --> 00:02:01,440 Speaker 6: What do you think of the micro today? 42 00:02:02,160 --> 00:02:03,720 Speaker 5: Okay, so there's a lot going on real quick. 43 00:02:03,760 --> 00:02:06,920 Speaker 7: Tesla is down more than four percent, the information reporting 44 00:02:07,160 --> 00:02:10,680 Speaker 7: the entire supercharger team is gone. But remember twenty four 45 00:02:10,720 --> 00:02:14,480 Speaker 7: hours ago in Monday session, fifteen percent gain, biggest jump 46 00:02:14,520 --> 00:02:18,160 Speaker 7: since March of twenty twenty one on FSD tentative approval 47 00:02:18,160 --> 00:02:20,519 Speaker 7: on China. We'll dig into that later. Then there's earnings 48 00:02:20,560 --> 00:02:23,520 Speaker 7: AMD after the Bell. We know the story how well, 49 00:02:24,000 --> 00:02:26,440 Speaker 7: but above or below is the mi I three hundred 50 00:02:26,639 --> 00:02:29,960 Speaker 7: x done relative to expectations. Then you've got Amazon after 51 00:02:30,040 --> 00:02:33,760 Speaker 7: Alphabet and Microsoft Cloud growth driven by AI. We know 52 00:02:33,840 --> 00:02:36,000 Speaker 7: those stories and were look ahead to that later in 53 00:02:36,040 --> 00:02:40,160 Speaker 7: the program. Our top story is Paramount Global, so CEO 54 00:02:40,200 --> 00:02:44,080 Speaker 7: Bob Bakish is gone, replaced by basically a committee of executives. 55 00:02:44,840 --> 00:02:47,960 Speaker 7: They release earnings. No one seems to care. The question 56 00:02:48,040 --> 00:02:49,679 Speaker 7: is about M and A in the future. The stockdown 57 00:02:49,680 --> 00:02:52,519 Speaker 7: three point three percent. Let's go right to Bloomberg Intelligence 58 00:02:52,560 --> 00:02:55,160 Speaker 7: and this guita rangon Nathan to try and understand what's 59 00:02:55,160 --> 00:02:57,280 Speaker 7: going on. I love the kind of headline of your 60 00:02:57,320 --> 00:03:00,000 Speaker 7: research overnight, basically earnings and non. 61 00:02:59,840 --> 00:03:01,480 Speaker 5: Av I on M and A. 62 00:03:01,720 --> 00:03:04,280 Speaker 7: But just summarize what last night was like for you 63 00:03:04,360 --> 00:03:05,160 Speaker 7: and what you learned. 64 00:03:05,680 --> 00:03:09,560 Speaker 3: Yes, yeah, the earnings call ed was was kind of 65 00:03:09,680 --> 00:03:12,520 Speaker 3: really bizarre. I mean it was, you know, a seven 66 00:03:12,560 --> 00:03:15,360 Speaker 3: to eight minute call, basically one of the shortest I've 67 00:03:15,360 --> 00:03:17,520 Speaker 3: ever seen in the history of media earnings. There were 68 00:03:17,560 --> 00:03:20,640 Speaker 3: no questions from the analyst or the investment community, and 69 00:03:20,720 --> 00:03:23,720 Speaker 3: it was just basically the CFO outlining the details of 70 00:03:23,760 --> 00:03:26,880 Speaker 3: the quarter, and you know, the three person committee kind 71 00:03:26,919 --> 00:03:30,360 Speaker 3: of giving their little spiel. But I think yes, there 72 00:03:30,360 --> 00:03:34,160 Speaker 3: were some encouraging elements from the first quarter results, but 73 00:03:34,240 --> 00:03:37,880 Speaker 3: of course M and A is stop and center overall. 74 00:03:37,920 --> 00:03:40,600 Speaker 3: I think that the key takeaway is that this is 75 00:03:40,760 --> 00:03:43,760 Speaker 3: peak uncertainty right now at Paramount. We really don't know 76 00:03:43,760 --> 00:03:46,200 Speaker 3: what's happening with ownership. We don't know what's happening with 77 00:03:46,640 --> 00:03:49,120 Speaker 3: leadership other than there is this committee. But obviously it's 78 00:03:49,120 --> 00:03:52,320 Speaker 3: a stop gap arrangement and there's no clue in terms 79 00:03:52,360 --> 00:03:54,880 Speaker 3: of what the future direction or the strategy is. 80 00:03:55,280 --> 00:03:58,280 Speaker 4: Have you ever experienced this, Ketha, this lack of clarity 81 00:03:58,320 --> 00:04:01,040 Speaker 4: coming from leadership, coming from the company itself. 82 00:04:02,160 --> 00:04:05,000 Speaker 3: Yeah, I mean this is kind of one of a 83 00:04:05,120 --> 00:04:09,840 Speaker 3: kind situation, Caroline. I mean, obviously, Sherry Redstone here is 84 00:04:09,880 --> 00:04:12,840 Speaker 3: desperately trying to get a deal done with sky Dance, 85 00:04:12,880 --> 00:04:16,120 Speaker 3: which is why she had to get rid of Barb Bakish, 86 00:04:16,160 --> 00:04:20,000 Speaker 3: who was opposing the deal pretty vocally from the get go. 87 00:04:21,080 --> 00:04:23,120 Speaker 6: You know, there is a looming deadline. 88 00:04:23,160 --> 00:04:26,240 Speaker 3: May third is the day which is Friday is the 89 00:04:26,320 --> 00:04:29,359 Speaker 3: day when the period of exclusive negotiations ends, and so 90 00:04:29,400 --> 00:04:31,360 Speaker 3: they're trying to do everything in their power to get 91 00:04:31,760 --> 00:04:33,520 Speaker 3: to that finish line as quickly as possible. 92 00:04:34,760 --> 00:04:37,839 Speaker 4: Well, we dig into what is a very evolving story, 93 00:04:37,880 --> 00:04:41,240 Speaker 4: but ultimately with some decent streaming numbers come from Paramount, 94 00:04:41,279 --> 00:04:42,960 Speaker 4: we want to dig into all of that. First, we 95 00:04:43,040 --> 00:04:47,000 Speaker 4: thanks Bloomberg Intelligence ANALYSTKEITHA. Rangnath, and let's continue the conversation 96 00:04:47,040 --> 00:04:49,640 Speaker 4: with an expert in the field of media and ultimately 97 00:04:49,640 --> 00:04:52,200 Speaker 4: what on earth this landscape is like to try to 98 00:04:52,240 --> 00:04:54,839 Speaker 4: evolve Paramount. Going forward John Clines with US co founder 99 00:04:54,880 --> 00:04:57,400 Speaker 4: SEO of the sports streaming platform Handed Media. We'll also 100 00:04:57,400 --> 00:05:00,640 Speaker 4: form a president of CNN executive VP of CBS New Boyd. 101 00:05:00,760 --> 00:05:03,000 Speaker 4: Do you understand the internal workings of these sorts of 102 00:05:03,000 --> 00:05:05,280 Speaker 4: companies And I put it to you again, I mean, 103 00:05:05,320 --> 00:05:07,559 Speaker 4: there's a corporate governance issue going on at the moment. 104 00:05:07,880 --> 00:05:10,839 Speaker 4: But what should Paramount try you to be doing in 105 00:05:10,920 --> 00:05:12,560 Speaker 4: terms of its fundamentals right now? 106 00:05:13,560 --> 00:05:16,719 Speaker 2: Well, you know I have experienced this before because I 107 00:05:16,800 --> 00:05:20,960 Speaker 2: was the media advisor to the show Succession, and I 108 00:05:21,040 --> 00:05:22,760 Speaker 2: have to tell you if you know so. 109 00:05:22,880 --> 00:05:25,320 Speaker 1: Mayhem was our middle name. But if they'd come. 110 00:05:25,200 --> 00:05:26,880 Speaker 2: To me with a plot twist that said they were 111 00:05:26,880 --> 00:05:30,480 Speaker 2: going to dump the CEO two hours before earnings, I 112 00:05:30,520 --> 00:05:32,360 Speaker 2: would have thrown it right back in their faces. I 113 00:05:32,360 --> 00:05:36,880 Speaker 2: would have said, no way anyway. You know, look, every 114 00:05:36,920 --> 00:05:41,640 Speaker 2: acquirer feels they can either grow an asset, or squeeze 115 00:05:41,680 --> 00:05:45,520 Speaker 2: additional profit out of the distressed parts, or just sell 116 00:05:45,560 --> 00:05:48,520 Speaker 2: off the parts. I wouldn't be surprised if David Ellison 117 00:05:48,600 --> 00:05:52,760 Speaker 2: feels that he lands in the growth camp. You know, 118 00:05:52,839 --> 00:05:55,320 Speaker 2: he's young, he's energetic, he has excellent taste. I love 119 00:05:55,400 --> 00:05:58,080 Speaker 2: some of the movies that he's produced, and he's got 120 00:05:58,120 --> 00:06:00,599 Speaker 2: Jeff Shell as a partner in Jeff is a really 121 00:06:00,800 --> 00:06:04,520 Speaker 2: savvy operator, you know, as he was when he was 122 00:06:04,600 --> 00:06:08,720 Speaker 2: CEO of NBC Universal. I think that the challenge for 123 00:06:08,880 --> 00:06:13,800 Speaker 2: any traditional media company in a landscape that is dominated 124 00:06:13,839 --> 00:06:19,920 Speaker 2: by the tech giants, right Apple, Amazon, Google. You know, 125 00:06:20,080 --> 00:06:23,280 Speaker 2: YouTube alone accounts for ten percent of the of the 126 00:06:23,360 --> 00:06:29,480 Speaker 2: TV viewing now on televisions, not not on devices. The 127 00:06:30,320 --> 00:06:35,200 Speaker 2: tech giants are dominating the media landscape, and so whoever 128 00:06:35,400 --> 00:06:39,880 Speaker 2: ends up owning Paramount has to think hard about that. 129 00:06:40,960 --> 00:06:44,240 Speaker 2: They have to think about streaming as a strategy you know, 130 00:06:45,320 --> 00:06:47,920 Speaker 2: because what streaming does is on the line. 131 00:06:48,360 --> 00:06:50,479 Speaker 7: Let me just jump in real quick, John, because I 132 00:06:50,520 --> 00:06:53,840 Speaker 7: get that that they're technology companies. They're good at technology. 133 00:06:54,200 --> 00:06:56,440 Speaker 7: Caroline and I were discussing before the show. I quite 134 00:06:56,520 --> 00:06:59,400 Speaker 7: like Paramount. I like the streaming platform. I watch all 135 00:06:59,400 --> 00:07:02,960 Speaker 7: my Champions League football on Paramount Plus. I liked Taylo 136 00:07:03,120 --> 00:07:06,359 Speaker 7: it was pretty good. I like some of the Paramount movies. 137 00:07:06,400 --> 00:07:09,720 Speaker 7: Top Gun as an example of the Transformers movies. Who 138 00:07:09,760 --> 00:07:12,880 Speaker 7: doesn't what's missing, then what's the fix? 139 00:07:13,520 --> 00:07:14,560 Speaker 1: I'll tell you what's missing. 140 00:07:14,640 --> 00:07:18,560 Speaker 2: AI AI is what's driving streaming because it powers all 141 00:07:18,600 --> 00:07:21,640 Speaker 2: those deep audience insights that allow you to make smarter 142 00:07:21,800 --> 00:07:27,160 Speaker 2: programming decisions, more precision targeted marketing decisions. On my streaming 143 00:07:27,160 --> 00:07:30,119 Speaker 2: platform has seen our cost of acquiring a customer drop 144 00:07:30,400 --> 00:07:34,160 Speaker 2: from thirty four dollars to two dollars in one year's 145 00:07:34,160 --> 00:07:38,720 Speaker 2: time thanks to precision targeting AI. And David Ellison knows 146 00:07:38,760 --> 00:07:42,640 Speaker 2: somebody who is pretty good at the aipiece of it, 147 00:07:42,680 --> 00:07:45,120 Speaker 2: and that's his dad. And his dad is one of 148 00:07:45,120 --> 00:07:47,280 Speaker 2: the investor. Or Oracle is going to be among the 149 00:07:47,760 --> 00:07:52,840 Speaker 2: investors in this. And if you add Oracle AI power 150 00:07:53,120 --> 00:07:57,800 Speaker 2: to some of the assets that paramount owns you inch 151 00:07:57,920 --> 00:08:00,640 Speaker 2: closer anyway toward the giants. 152 00:08:00,680 --> 00:08:01,680 Speaker 1: You're not a giant yet. 153 00:08:01,680 --> 00:08:04,320 Speaker 2: Their market cap, I think is three hundred and fifty 154 00:08:04,360 --> 00:08:08,160 Speaker 2: times smaller than the big boys, but you're heading in 155 00:08:08,200 --> 00:08:10,960 Speaker 2: the right direction and that would be a smart thing 156 00:08:11,000 --> 00:08:11,640 Speaker 2: for them to do. 157 00:08:11,960 --> 00:08:14,840 Speaker 4: So for you, this is a tech growth perspective coming 158 00:08:14,840 --> 00:08:18,200 Speaker 4: from Skydance Media. A lot of investors, though, have completely 159 00:08:18,240 --> 00:08:20,960 Speaker 4: seen an erosion in the value of their non voting stock. 160 00:08:21,160 --> 00:08:23,200 Speaker 4: They're frustrated that this isn't going to be some more 161 00:08:23,240 --> 00:08:26,200 Speaker 4: open bidding competition going on. John, is there a better, 162 00:08:26,280 --> 00:08:28,680 Speaker 4: more clear way of doing this to try? And we'll 163 00:08:28,920 --> 00:08:33,679 Speaker 4: hear clarity from Skydance and then see what others say. 164 00:08:33,800 --> 00:08:36,480 Speaker 4: The reports of an Apollo and a Sony could add themselves. 165 00:08:37,320 --> 00:08:39,679 Speaker 2: Yeah, I mean, Skydance, you know, needs to play its 166 00:08:39,720 --> 00:08:43,720 Speaker 2: cards close to the vest in the short run. And 167 00:08:44,000 --> 00:08:47,959 Speaker 2: of course, if they end up winning the prize versus 168 00:08:48,040 --> 00:08:52,160 Speaker 2: Apollo slash Sony, you know, then they've got to lay 169 00:08:52,200 --> 00:08:54,280 Speaker 2: out a strategy and you know that's what the street 170 00:08:54,320 --> 00:08:57,240 Speaker 2: is going to be looking for work. And you know, 171 00:08:57,320 --> 00:09:01,200 Speaker 2: AI can't be ignored and you know, should obviously be 172 00:09:01,360 --> 00:09:06,000 Speaker 2: a central part of things. But look, family controlled or 173 00:09:06,120 --> 00:09:10,520 Speaker 2: single entity controlled companies invariably lead. 174 00:09:10,360 --> 00:09:12,480 Speaker 1: To this kind of messiness. 175 00:09:13,040 --> 00:09:16,320 Speaker 2: And if whoever ends up with it, at least you 176 00:09:16,320 --> 00:09:20,359 Speaker 2: would hope that things will the operation will run more cleanly. 177 00:09:20,040 --> 00:09:23,880 Speaker 7: Moving forward, John, Of all the subscriptions you can have, 178 00:09:25,000 --> 00:09:26,400 Speaker 7: where does powamount rank? 179 00:09:28,920 --> 00:09:32,880 Speaker 2: Look, I'm not alone in saying I churn constantly. Did 180 00:09:32,880 --> 00:09:37,360 Speaker 2: you know that only seven percent of people will tell 181 00:09:37,400 --> 00:09:40,720 Speaker 2: you that they plan to stick with the streaming platform 182 00:09:40,800 --> 00:09:45,120 Speaker 2: that they currently subscribe to. This month, ninety three percent 183 00:09:45,480 --> 00:09:48,360 Speaker 2: of viewers intend to leave. And that's because people watch 184 00:09:48,760 --> 00:09:53,559 Speaker 2: shows and stars, they don't watch platforms. That's equally applicable 185 00:09:53,559 --> 00:09:57,360 Speaker 2: to Netflix and Disney Plus and all of them. And 186 00:09:57,440 --> 00:10:00,559 Speaker 2: so you know, you've got to think in terms of 187 00:10:01,000 --> 00:10:05,160 Speaker 2: franchises that are driving the bus for a business. So, 188 00:10:05,480 --> 00:10:07,800 Speaker 2: you know, for paramount, the first one that jumps into 189 00:10:07,800 --> 00:10:08,440 Speaker 2: my mind. 190 00:10:08,240 --> 00:10:09,000 Speaker 1: Is the NFL. 191 00:10:09,440 --> 00:10:13,079 Speaker 2: I mean, the NFL dominates viewership on whatever platform at Arizona, 192 00:10:13,080 --> 00:10:16,160 Speaker 2: whether it's streaming on Amazon Prime or it's the traditional 193 00:10:16,160 --> 00:10:17,200 Speaker 2: broadcast networks. 194 00:10:17,400 --> 00:10:19,240 Speaker 1: You know, they news. 195 00:10:19,400 --> 00:10:22,920 Speaker 2: Streaming services are also drivers of streaming, and CBS just 196 00:10:22,960 --> 00:10:27,920 Speaker 2: rebranded their entire CBS News Streaming entity into CBS News 197 00:10:27,960 --> 00:10:30,120 Speaker 2: twenty four to seven, and so they've got to be 198 00:10:30,200 --> 00:10:34,439 Speaker 2: thinking streaming first, direct to consumer first, AI. 199 00:10:34,360 --> 00:10:35,839 Speaker 5: Right, and the masters as well. 200 00:10:35,920 --> 00:10:38,280 Speaker 7: Good example, if you're going to get one chunk off 201 00:10:38,360 --> 00:10:39,680 Speaker 7: or divest a bit, what would it be. 202 00:10:41,760 --> 00:10:45,560 Speaker 2: The cable channels just you know, they're they're they're kind 203 00:10:45,559 --> 00:10:47,040 Speaker 2: of hopeless. 204 00:10:47,280 --> 00:10:49,280 Speaker 1: I mean, they've lost their luster. 205 00:10:49,920 --> 00:10:52,839 Speaker 2: I think you know, they tend to just play the 206 00:10:52,880 --> 00:10:55,319 Speaker 2: same show fifty thousand times in a row and a block, 207 00:10:55,559 --> 00:10:57,240 Speaker 2: which I like as a consumer. I can put the 208 00:10:57,280 --> 00:10:59,240 Speaker 2: Office on on other channels, you know, and all that. 209 00:10:59,320 --> 00:11:03,120 Speaker 2: But it's a dwindling asset. Everyone knows that. It's not 210 00:11:03,160 --> 00:11:05,839 Speaker 2: a surprise. I think they had some offers for some 211 00:11:05,920 --> 00:11:08,199 Speaker 2: of the cable channels in the past year. Part of 212 00:11:08,240 --> 00:11:12,760 Speaker 2: the friction between Redstone and Backish was that he didn't 213 00:11:12,800 --> 00:11:13,559 Speaker 2: sell some of. 214 00:11:13,520 --> 00:11:17,680 Speaker 1: Them fast enough or at all. But that's where you'd 215 00:11:17,679 --> 00:11:18,199 Speaker 1: have to look. 216 00:11:18,440 --> 00:11:18,720 Speaker 6: John. 217 00:11:18,760 --> 00:11:20,680 Speaker 4: I'm just going to go bigger here because it's so 218 00:11:20,800 --> 00:11:23,360 Speaker 4: interesting what you bring about the technology story that needs 219 00:11:23,400 --> 00:11:25,960 Speaker 4: to be injected into Powermount. Of course, you were at 220 00:11:26,280 --> 00:11:28,760 Speaker 4: berninks AI, which was sold to Apple. You've got a 221 00:11:28,760 --> 00:11:31,800 Speaker 4: big focus on the AI compartment, but do you think 222 00:11:32,000 --> 00:11:33,880 Speaker 4: were broadly this is going to be happening elsewhere in 223 00:11:33,920 --> 00:11:37,080 Speaker 4: the industry. Paramount is a but one where we think 224 00:11:37,360 --> 00:11:40,319 Speaker 4: m and A or rejuvenation is needed within some of 225 00:11:40,360 --> 00:11:41,400 Speaker 4: these legacy businesses. 226 00:11:41,840 --> 00:11:44,480 Speaker 2: Oh yeah, I mean, look, the market cap gap is 227 00:11:45,160 --> 00:11:45,920 Speaker 2: just enormous. 228 00:11:46,240 --> 00:11:47,160 Speaker 1: I mean, the tech. 229 00:11:47,040 --> 00:11:50,120 Speaker 2: Giants are three hundred and fifty times bigger than even 230 00:11:50,240 --> 00:11:53,679 Speaker 2: the you know, the biggest, most well known traditional media companies, 231 00:11:53,720 --> 00:11:57,920 Speaker 2: Warner Brothers, Discovery, you know, Netflix, even I think we 232 00:11:58,040 --> 00:12:00,840 Speaker 2: have to start thinking of as a traditional media company 233 00:12:01,080 --> 00:12:05,200 Speaker 2: because the only thing they do is entertainment programming and 234 00:12:05,240 --> 00:12:08,240 Speaker 2: now they're introducing sports, but they have no tech component. 235 00:12:08,480 --> 00:12:11,840 Speaker 2: They have no theme parks, you know, to mitigate risk 236 00:12:11,960 --> 00:12:14,319 Speaker 2: or anything. So they're a pure playing media company. I 237 00:12:14,360 --> 00:12:17,800 Speaker 2: think there's bound to be consolidation amidst those and if 238 00:12:17,920 --> 00:12:22,080 Speaker 2: Paramount is smart about pursuing the AI and streaming opportunities, 239 00:12:22,280 --> 00:12:27,520 Speaker 2: they become a more attractive merger or acquisition target as 240 00:12:27,640 --> 00:12:31,040 Speaker 2: those smaller players, the smaller planets come. 241 00:12:30,840 --> 00:12:35,440 Speaker 7: Together joining Bloomberg Technology, a show available live and on 242 00:12:35,480 --> 00:12:38,240 Speaker 7: demand on lots of platforms. Looking around for a long time. 243 00:12:38,360 --> 00:12:41,400 Speaker 7: Hang Media co founder and CEO John Klin. Great to 244 00:12:41,400 --> 00:12:43,320 Speaker 7: have your perspective. Thank you, know, coming up, we're going 245 00:12:43,360 --> 00:12:45,920 Speaker 7: to take a look at the intensifying tech war between 246 00:12:45,960 --> 00:12:48,920 Speaker 7: the US and China. Just days after Elon Musk reached 247 00:12:48,960 --> 00:12:52,320 Speaker 7: that big milestone on FSD. That conversation coming up, this 248 00:12:52,480 --> 00:13:10,200 Speaker 7: is Bloomberg technology. The law requiring TikTok to divest or 249 00:13:10,240 --> 00:13:12,920 Speaker 7: be banned could be a pivotal moment in what is 250 00:13:13,080 --> 00:13:16,360 Speaker 7: an escalating rivalry between the US and China in the 251 00:13:16,360 --> 00:13:19,920 Speaker 7: context of technology. TikTok for the US would almost certainly 252 00:13:20,000 --> 00:13:22,560 Speaker 7: head to the Supreme Court, which would have to weigh 253 00:13:22,600 --> 00:13:26,840 Speaker 7: the government's security concerns against the free speech of the company. 254 00:13:27,040 --> 00:13:30,720 Speaker 7: And it's all but certain that China will retaliate against 255 00:13:30,760 --> 00:13:33,040 Speaker 7: the US. And that is according to those that watch 256 00:13:33,120 --> 00:13:35,920 Speaker 7: China's government in its responses closely. There's a lot to 257 00:13:35,960 --> 00:13:38,439 Speaker 7: discuss right now in the relationship between China and US 258 00:13:38,640 --> 00:13:39,760 Speaker 7: in the context of tech. 259 00:13:39,800 --> 00:13:42,240 Speaker 5: And to do that we bring in Jen Haglee. 260 00:13:41,679 --> 00:13:45,520 Speaker 7: The CEO and founder and head of researcher JL Warren Capital. 261 00:13:46,040 --> 00:13:48,520 Speaker 7: Let's just start with the TikTok case study. You know, 262 00:13:48,640 --> 00:13:52,800 Speaker 7: byte Dance is the world's most valuable startup, a Chinese giant, 263 00:13:53,040 --> 00:13:55,760 Speaker 7: but private, and it's said we have no plan to 264 00:13:55,880 --> 00:14:00,240 Speaker 7: sell divest TikTok in the States, but it's somewhere that 265 00:14:00,280 --> 00:14:03,280 Speaker 7: the States is just not going to accept your view 266 00:14:03,320 --> 00:14:04,000 Speaker 7: on that outcome. 267 00:14:05,920 --> 00:14:09,240 Speaker 8: Well, I think it's inevitable that the two entities US 268 00:14:09,240 --> 00:14:13,520 Speaker 8: operation will be separated from the parent because consumer data 269 00:14:13,520 --> 00:14:16,679 Speaker 8: in US are just way too way too rich in 270 00:14:16,720 --> 00:14:20,720 Speaker 8: content and the way too sensitive for the same poken. 271 00:14:20,880 --> 00:14:21,920 Speaker 1: I mean, I just think the. 272 00:14:21,880 --> 00:14:27,720 Speaker 8: Reason announcement of Testda Bayd is a very case specific situation. 273 00:14:27,960 --> 00:14:31,680 Speaker 8: It's not applicable to sort of the broad de escalating 274 00:14:32,440 --> 00:14:35,120 Speaker 8: tension between the US and China China argument. 275 00:14:35,560 --> 00:14:38,560 Speaker 4: Okay, that's so interesting because it feels as though there 276 00:14:38,560 --> 00:14:41,480 Speaker 4: are these two different narratives. If you're a company that's 277 00:14:41,520 --> 00:14:47,760 Speaker 4: already within China that's able to do ultimately partnerships within China, 278 00:14:47,880 --> 00:14:51,000 Speaker 4: as we've seen Tesla and Minding, for example, you will 279 00:14:51,040 --> 00:14:54,840 Speaker 4: be allowed to continue and indeed potentially to thrive. But 280 00:14:55,280 --> 00:14:57,360 Speaker 4: others this is not going to be occurring. What do 281 00:14:57,360 --> 00:15:00,040 Speaker 4: you think of some of the Chinese companies trying to 282 00:15:00,040 --> 00:15:02,280 Speaker 4: make their presence known here in the United States team 283 00:15:02,320 --> 00:15:04,120 Speaker 4: and for example, become quite the addiction. 284 00:15:05,360 --> 00:15:06,320 Speaker 1: Will that be allowed? 285 00:15:06,360 --> 00:15:07,960 Speaker 6: Do you think it is right case by case. 286 00:15:09,160 --> 00:15:11,880 Speaker 8: Well, I think it's okay if you are small and 287 00:15:12,080 --> 00:15:13,960 Speaker 8: you are under the radar, but when you get to 288 00:15:13,960 --> 00:15:16,600 Speaker 8: a certain scale and when you catch at tension, that 289 00:15:16,680 --> 00:15:18,480 Speaker 8: it becomes sensitive. 290 00:15:18,200 --> 00:15:19,880 Speaker 1: And topical and political. 291 00:15:20,320 --> 00:15:23,040 Speaker 8: And I think the broad sort of the political tension 292 00:15:23,400 --> 00:15:26,720 Speaker 8: definitely is a headwing and it's unlikely to be resolved 293 00:15:26,760 --> 00:15:27,760 Speaker 8: in any time soon. 294 00:15:29,600 --> 00:15:34,720 Speaker 7: Jinang, your specialty, Your research is largely on US companies 295 00:15:34,720 --> 00:15:37,880 Speaker 7: with exposure to China. So what was your reaction to 296 00:15:38,000 --> 00:15:40,480 Speaker 7: Tesla getting tentative approval for FSD. 297 00:15:42,400 --> 00:15:45,840 Speaker 8: I think the market runs ahead of yourself by so much. 298 00:15:46,680 --> 00:15:47,560 Speaker 1: The partnership. 299 00:15:48,400 --> 00:15:51,440 Speaker 8: You can say it's a milestone, but it's really light 300 00:15:51,680 --> 00:15:54,840 Speaker 8: in the terms. So think about twenty five years ago 301 00:15:54,960 --> 00:15:58,120 Speaker 8: when Ford, the gm BMW mer Cites came to the 302 00:15:58,520 --> 00:16:02,920 Speaker 8: came to China need to have a joint venture to 303 00:16:03,120 --> 00:16:07,280 Speaker 8: gain the license or ability to manufacture and sell cars 304 00:16:07,280 --> 00:16:09,720 Speaker 8: to China. So in this case it's kind of similar. 305 00:16:10,120 --> 00:16:14,440 Speaker 8: So Tesla is a foreign entity. To be able to 306 00:16:14,600 --> 00:16:18,280 Speaker 8: collect data and do what it does in the US, 307 00:16:18,480 --> 00:16:21,920 Speaker 8: which is oftens striving, it needs a local partner. So 308 00:16:21,960 --> 00:16:24,160 Speaker 8: in this case it's by doing it can be anyone, 309 00:16:24,520 --> 00:16:28,720 Speaker 8: So by do will be storing all the data Tesla 310 00:16:28,760 --> 00:16:32,840 Speaker 8: collects on the road and supervise the data usage and 311 00:16:32,880 --> 00:16:36,800 Speaker 8: the filtered before the data gets returned to Tesla for 312 00:16:37,800 --> 00:16:41,280 Speaker 8: you know, for computing. And what we do not know, 313 00:16:41,520 --> 00:16:45,360 Speaker 8: and it's critical to this puzzle, is that how the 314 00:16:45,480 --> 00:16:49,080 Speaker 8: data will be computed, whether it's onshore or offshore, and 315 00:16:49,240 --> 00:16:52,120 Speaker 8: using what capability. So I mean, I think that's the 316 00:16:52,200 --> 00:16:55,840 Speaker 8: critical sort of piece that's missing. 317 00:16:56,280 --> 00:16:58,600 Speaker 1: And yet the market just runs ahead of yourself. 318 00:16:59,200 --> 00:17:02,200 Speaker 7: It's in It's such an interesting point to Caro's question 319 00:17:02,280 --> 00:17:05,800 Speaker 7: on partnership. You know, in my study of China's autonomous 320 00:17:05,840 --> 00:17:08,800 Speaker 7: driving landscape, you know, by Doo is a domestic champion. 321 00:17:09,119 --> 00:17:14,399 Speaker 7: Bydo has its own ambitions for autonomous driving, and Tesla 322 00:17:14,400 --> 00:17:16,879 Speaker 7: could have gone with anyone. As you point out, why 323 00:17:16,920 --> 00:17:19,359 Speaker 7: do you think they went with Baydoo as opposed to 324 00:17:19,400 --> 00:17:20,840 Speaker 7: another robotaxi company. 325 00:17:21,760 --> 00:17:24,560 Speaker 8: I think it could be anyone. It could be by Do, 326 00:17:24,720 --> 00:17:27,440 Speaker 8: it could be Pencent, it could be any mapping company. 327 00:17:28,040 --> 00:17:31,120 Speaker 8: By Do is just the gatekeeper on behalf of the government. 328 00:17:31,400 --> 00:17:35,399 Speaker 8: And what's also unknown is whether this kickoff of f 329 00:17:35,600 --> 00:17:40,320 Speaker 8: SE program in China, whether it's broadly applicable to all 330 00:17:40,440 --> 00:17:43,480 Speaker 8: Tesla vehicles on the road in China, or whether it's 331 00:17:43,560 --> 00:17:48,000 Speaker 8: just applicable to a group of demo demo fleet, which 332 00:17:48,040 --> 00:17:51,480 Speaker 8: is about a couple of dozens of you know, driving 333 00:17:51,760 --> 00:17:56,680 Speaker 8: by do stuff supervising or understanding the data collection process. 334 00:17:57,040 --> 00:17:59,159 Speaker 1: That's unknown and that's critical. 335 00:18:00,000 --> 00:18:02,399 Speaker 4: And it's critical for its long term value as a 336 00:18:02,440 --> 00:18:06,400 Speaker 4: business that's going to be standing apart from other auto companies, 337 00:18:06,480 --> 00:18:11,560 Speaker 4: legacy businesses because of its AI plan. And I'm interested 338 00:18:11,560 --> 00:18:13,439 Speaker 4: in therefore, whether you think there's that much value with 339 00:18:13,480 --> 00:18:16,160 Speaker 4: what's just going on between Tesla and China, and if 340 00:18:16,280 --> 00:18:18,600 Speaker 4: or that's a sacrifice that ultimately has to be made. 341 00:18:19,840 --> 00:18:23,520 Speaker 8: Okay, in China, Tesla is actually not the leader in 342 00:18:23,600 --> 00:18:28,240 Speaker 8: a f speed because it didn't or automs atas autons driving, 343 00:18:28,480 --> 00:18:31,639 Speaker 8: because it doesn't have the license to collect data. It 344 00:18:31,680 --> 00:18:36,760 Speaker 8: doesn't have the data. Where it adds the competition Huawei 345 00:18:39,200 --> 00:18:43,199 Speaker 8: x pun meal, they all have their you know, uh 346 00:18:44,280 --> 00:18:45,600 Speaker 8: autians driving. 347 00:18:45,400 --> 00:18:47,680 Speaker 1: System uh that's on the road. 348 00:18:48,359 --> 00:18:53,160 Speaker 8: So they use ambidious orange chip with in house coding, right, 349 00:18:53,240 --> 00:18:58,280 Speaker 8: So that's their respective solution. So I think this partnership 350 00:18:58,520 --> 00:19:04,960 Speaker 8: is Beijing expressing sort of the relaxation of discrimination against 351 00:19:05,440 --> 00:19:09,360 Speaker 8: American companies. Say now we allow you to have access 352 00:19:09,600 --> 00:19:13,720 Speaker 8: to the marking data under the supervision of a Chinese entity, 353 00:19:14,200 --> 00:19:16,560 Speaker 8: and you can you know, make good use of the 354 00:19:16,680 --> 00:19:19,399 Speaker 8: data so that you are on the equal footy. Where's 355 00:19:19,440 --> 00:19:22,240 Speaker 8: your competition in China. That's the extent of that. 356 00:19:23,560 --> 00:19:26,800 Speaker 4: It's an interesting landscape that you continue to bring clarity 357 00:19:26,840 --> 00:19:30,399 Speaker 4: on Jail. Warren Capital CEO and founder Trinhangmi, thank you 358 00:19:30,480 --> 00:19:41,560 Speaker 4: for deep diving. Now, colleges in the United States, many 359 00:19:41,560 --> 00:19:45,240 Speaker 4: are rushing to confront some pro Palestinian demonstrations on campuses, 360 00:19:45,560 --> 00:19:49,720 Speaker 4: with disciplinary actions escalating and campus life really thrown into turmoil. 361 00:19:50,000 --> 00:19:52,800 Speaker 4: So as the academic year comes to a close. Over 362 00:19:52,920 --> 00:19:55,920 Speaker 4: Columbia and New York, dozens of students entered a campus 363 00:19:56,000 --> 00:19:59,480 Speaker 4: building known as Hamilton Hall after midnight on Tuesday. Marracaded 364 00:19:59,520 --> 00:20:03,040 Speaker 4: themselves in side piling tables, chairs to brock doors and 365 00:20:03,080 --> 00:20:06,960 Speaker 4: covering security cameras. We want to go live to Columbia 366 00:20:07,040 --> 00:20:09,920 Speaker 4: University on the ground as Bloomberg Scarlet Foo and want 367 00:20:09,960 --> 00:20:12,560 Speaker 4: to make clear this is something that's happening across the US, 368 00:20:12,600 --> 00:20:16,520 Speaker 4: but it's also happening across Europe. Outside German Parliament at 369 00:20:16,560 --> 00:20:18,399 Speaker 4: the moment, we're seeing it happen at the Sorbonne in 370 00:20:18,400 --> 00:20:21,000 Speaker 4: Paris is a global element. But what's happening on the 371 00:20:21,000 --> 00:20:24,680 Speaker 4: ground right now with you, Scarlet. 372 00:20:24,800 --> 00:20:27,160 Speaker 9: Yeah, this is ground zero, Carol line for the pro 373 00:20:27,200 --> 00:20:31,679 Speaker 9: Palestinian protests sweeping across the US college campuses and around 374 00:20:31,680 --> 00:20:34,479 Speaker 9: the world. As you said, about eleven hours ago, dozens 375 00:20:34,520 --> 00:20:37,880 Speaker 9: of Columbia students entered Hamilton Hall, which is behind me here. 376 00:20:37,920 --> 00:20:41,920 Speaker 9: They've unfurled banners, one is Free Palestine. On the other side, 377 00:20:41,960 --> 00:20:44,399 Speaker 9: there's another banner in front of Hamilton Hall that says 378 00:20:44,640 --> 00:20:48,479 Speaker 9: into Fada in red. As you mentioned, they've barricaded themselves inside. 379 00:20:48,520 --> 00:20:52,399 Speaker 9: They're occupying the building. They've covered security cameras with black 380 00:20:52,560 --> 00:20:54,879 Speaker 9: trash bags. And this is a building that is of 381 00:20:54,920 --> 00:20:59,000 Speaker 9: course a story because it has a history of student occupation. 382 00:20:59,080 --> 00:21:02,320 Speaker 9: In nineteen sixty eight, students protested against the Vietnam War. 383 00:21:02,560 --> 00:21:05,480 Speaker 9: In nineteen eighty five, students took over Hamilton Hall to 384 00:21:05,520 --> 00:21:09,000 Speaker 9: demand that Columbia divests from companies that do business in 385 00:21:09,040 --> 00:21:11,919 Speaker 9: South Africa during apartheid, and it is from that that 386 00:21:11,960 --> 00:21:15,720 Speaker 9: they take inspiration in making their demands this time around. Clearly, 387 00:21:15,800 --> 00:21:18,480 Speaker 9: this is an escalation, Caroline, and ed from the encampments 388 00:21:18,520 --> 00:21:21,560 Speaker 9: that Columbia and Barnard students set up about two weeks 389 00:21:21,600 --> 00:21:24,840 Speaker 9: ago out on the south lawn in front of Hamilton Hall. 390 00:21:25,320 --> 00:21:29,359 Speaker 9: When the President of Columbia, Manusha Figue, testified before Congress, 391 00:21:29,560 --> 00:21:31,920 Speaker 9: the school had given students a deadline of two pm 392 00:21:32,000 --> 00:21:35,880 Speaker 9: Monday yesterday to clear the encampments. Some did, but clearly 393 00:21:36,119 --> 00:21:37,440 Speaker 9: some had chosen to double. 394 00:21:37,200 --> 00:21:40,080 Speaker 5: Down Scarlet real quick. 395 00:21:40,160 --> 00:21:43,280 Speaker 7: What specifically they're demanding, I just don't get it. 396 00:21:46,080 --> 00:21:48,960 Speaker 9: Yeah, what they're demanding is financial transparency when it comes 397 00:21:49,000 --> 00:21:50,359 Speaker 9: to the almost fourteen. 398 00:21:50,040 --> 00:21:51,960 Speaker 1: Billion dollar endowment. 399 00:21:51,560 --> 00:21:55,600 Speaker 9: That Columbia has, as well as divestment divesting from Israeli 400 00:21:55,640 --> 00:21:58,800 Speaker 9: companies and companies that do business with the Israeli government. 401 00:21:58,880 --> 00:22:02,000 Speaker 9: Now that's obviously are said than done, given that endowments 402 00:22:02,040 --> 00:22:05,160 Speaker 9: don't just invest in companies and bonds directly, they invest 403 00:22:05,200 --> 00:22:08,240 Speaker 9: in private equity, hedge funds, hard assets. So it's difficult 404 00:22:08,280 --> 00:22:09,239 Speaker 9: to entangle all of that. 405 00:22:10,320 --> 00:22:13,159 Speaker 7: Bloomberg Scarlett food on the ground at Columbia. Thank you 406 00:22:13,680 --> 00:22:16,639 Speaker 7: say with us, We'll be right back. This is Bloomberg Technology. 407 00:22:22,280 --> 00:22:25,960 Speaker 4: We welcome now our Bloomberg TV and radio audiences worldwide 408 00:22:26,200 --> 00:22:30,280 Speaker 4: to discuss what is occurring at Paramount. Currently, we'll shine 409 00:22:30,320 --> 00:22:32,639 Speaker 4: a light on how shares have been trading lower after 410 00:22:33,040 --> 00:22:34,520 Speaker 4: well first quarter earnings. 411 00:22:34,240 --> 00:22:35,600 Speaker 6: Actually beat expectations. 412 00:22:36,040 --> 00:22:38,879 Speaker 4: But what's actually taken the focus of Wall Street is 413 00:22:38,880 --> 00:22:43,080 Speaker 4: a CEO, Bob Backish stepping down, being replaced by a 414 00:22:43,160 --> 00:22:47,120 Speaker 4: trio of executives now being depended on, seemingly on an 415 00:22:47,119 --> 00:22:50,600 Speaker 4: interim basis to lead Paramount amid what seems to be 416 00:22:50,640 --> 00:22:54,240 Speaker 4: ongoing speculation of a deal with Skydance. We want to 417 00:22:54,240 --> 00:22:57,359 Speaker 4: get to a key long term investor in Paramount who's 418 00:22:57,400 --> 00:22:59,720 Speaker 4: been in the name since two thousand and six, who 419 00:22:59,720 --> 00:23:02,720 Speaker 4: believe eves in the streaming opportunity and the value of 420 00:23:02,760 --> 00:23:06,879 Speaker 4: its content. It's John Rodgers, a real investments founder co CEO. 421 00:23:07,359 --> 00:23:11,040 Speaker 4: You've been throughout this business in its many iterations, and 422 00:23:11,080 --> 00:23:14,959 Speaker 4: I just want to focus first John, on yesterday growth 423 00:23:15,040 --> 00:23:17,639 Speaker 4: being born out being shown by the business, particularly in 424 00:23:17,640 --> 00:23:19,960 Speaker 4: its streaming, thanks in many ways to the Super Bowl, 425 00:23:20,080 --> 00:23:22,479 Speaker 4: but it was overshadowed by the departure of Bob Backish. 426 00:23:22,480 --> 00:23:24,760 Speaker 6: What did you make of the move now? 427 00:23:24,960 --> 00:23:26,680 Speaker 1: It was pretty shocking to us. 428 00:23:27,200 --> 00:23:30,360 Speaker 10: I've been Ariel's been in business for forty one years. 429 00:23:30,720 --> 00:23:34,880 Speaker 10: We've not seen anything remotely like this. It's just extraordinary, 430 00:23:35,480 --> 00:23:38,400 Speaker 10: and it can't be good for shareholders to be able 431 00:23:38,440 --> 00:23:42,040 Speaker 10: to have all this uncertainty at earning season. You're in 432 00:23:42,040 --> 00:23:47,400 Speaker 10: the middle of a merger and acquisition transaction, you're negotiating 433 00:23:47,440 --> 00:23:50,800 Speaker 10: with Charter Communications. All these important things are happening all 434 00:23:50,840 --> 00:23:54,679 Speaker 10: at once, and you need the CEO in place. So 435 00:23:54,720 --> 00:23:59,840 Speaker 10: this has just been very very disappointing, disheartening, and also, 436 00:24:00,119 --> 00:24:03,360 Speaker 10: in the context of what you said, business has been 437 00:24:03,359 --> 00:24:05,760 Speaker 10: getting better. A lot of the initiatives that Bob and 438 00:24:06,040 --> 00:24:08,520 Speaker 10: Bob and his executive team have worked on are really 439 00:24:08,600 --> 00:24:12,200 Speaker 10: starting to show fruition. So the timing just seems extremely, 440 00:24:12,560 --> 00:24:13,800 Speaker 10: extremely problematic. 441 00:24:14,720 --> 00:24:18,440 Speaker 4: Let's just talk about probably why Bob Backish has exited, 442 00:24:18,800 --> 00:24:22,440 Speaker 4: and it is because he felt that the negotiations reportedly 443 00:24:22,520 --> 00:24:26,840 Speaker 4: underway with Skydance were not within his agreement. Now, Sherry 444 00:24:26,880 --> 00:24:29,680 Speaker 4: Redstone is a controlling shareholder at the moment with FUS 445 00:24:29,760 --> 00:24:31,960 Speaker 4: National Amusements. It seems to be the deal that she's 446 00:24:32,000 --> 00:24:35,919 Speaker 4: looking for with skuy Dance. How are you currently dealing 447 00:24:35,960 --> 00:24:38,960 Speaker 4: with the reports of a so called sweetened deal. What 448 00:24:39,000 --> 00:24:41,800 Speaker 4: would you make of a combination of paramount with Skuydance. 449 00:24:43,400 --> 00:24:46,600 Speaker 10: Well, we don't know enough We've read all the same 450 00:24:48,240 --> 00:24:51,639 Speaker 10: pieces that have been written about this, and institutions like 451 00:24:51,720 --> 00:24:54,480 Speaker 10: Puck have had really good information that we've had confirmed. 452 00:24:55,080 --> 00:24:58,520 Speaker 10: And so this transaction is really is focused on Skydance. 453 00:24:59,400 --> 00:25:02,840 Speaker 10: We think that that may possibly have a chance to work, 454 00:25:03,080 --> 00:25:05,800 Speaker 10: but we really would much rather see the Apollo deal 455 00:25:06,119 --> 00:25:08,639 Speaker 10: with Sony that's been so rumored to be out there, 456 00:25:08,920 --> 00:25:11,920 Speaker 10: to get certainty of a you know, Apollo's a world 457 00:25:11,920 --> 00:25:15,679 Speaker 10: class firm with extraordinary resources. Sony has proven to be 458 00:25:15,720 --> 00:25:19,760 Speaker 10: so successful, you know, in this industry that seems like 459 00:25:19,800 --> 00:25:22,760 Speaker 10: a marriage made in heaven, and so we wouldn't rush 460 00:25:22,800 --> 00:25:25,480 Speaker 10: to the altar with a smaller company that's not as 461 00:25:25,560 --> 00:25:28,160 Speaker 10: proven as the Apollo and Sony. 462 00:25:29,520 --> 00:25:31,760 Speaker 5: John, Good morning, it's ed in San Francisco. 463 00:25:32,119 --> 00:25:34,800 Speaker 7: Do you get any sense because you've held this idea 464 00:25:34,920 --> 00:25:37,080 Speaker 7: that we should look at other offers on the table 465 00:25:37,160 --> 00:25:37,800 Speaker 7: for a while. 466 00:25:38,200 --> 00:25:39,359 Speaker 5: Do you still hold. 467 00:25:39,119 --> 00:25:41,560 Speaker 7: That belief but actually the hope that other offers will 468 00:25:41,600 --> 00:25:44,000 Speaker 7: be looked at, Well. 469 00:25:43,840 --> 00:25:44,520 Speaker 10: That's we hear. 470 00:25:45,240 --> 00:25:45,480 Speaker 2: We have. 471 00:25:45,800 --> 00:25:47,600 Speaker 10: You know, we had a lot of confidence in management 472 00:25:47,680 --> 00:25:50,240 Speaker 10: that's been nothing but straightforward and candidate with us, that 473 00:25:50,560 --> 00:25:53,840 Speaker 10: they cared about all shareholders and you know, as you know, 474 00:25:53,880 --> 00:25:59,480 Speaker 10: the employee bases all own the secondary shares, So we 475 00:25:59,520 --> 00:26:02,320 Speaker 10: really have been very, very hopeful that they were going 476 00:26:02,400 --> 00:26:04,560 Speaker 10: to do the right thing for shareholders, and that's been 477 00:26:04,560 --> 00:26:09,560 Speaker 10: something that's been committed to us consistently, and we believe them, 478 00:26:09,880 --> 00:26:12,360 Speaker 10: and we just continue to think that you don't need 479 00:26:12,400 --> 00:26:14,600 Speaker 10: to rush when things are getting going well. This is 480 00:26:14,640 --> 00:26:17,400 Speaker 10: not a melting ice cube. This is a company in recovery, 481 00:26:17,640 --> 00:26:19,840 Speaker 10: in a turnaround mode. We want to make sure that 482 00:26:19,880 --> 00:26:21,959 Speaker 10: all shareholders get to be able to take advantage of that. 483 00:26:22,359 --> 00:26:25,280 Speaker 10: And the price that Skuydance is suggesting seems to us 484 00:26:25,400 --> 00:26:28,000 Speaker 10: what we've read, much lower than what we would get 485 00:26:28,359 --> 00:26:31,000 Speaker 10: from the Apollo Sony deal and many others that could 486 00:26:31,080 --> 00:26:34,600 Speaker 10: possibly be out there if this company was truly shopped around. 487 00:26:35,119 --> 00:26:37,000 Speaker 10: And the final thing I would say is the directors. 488 00:26:37,400 --> 00:26:39,919 Speaker 10: We know several as independent directors, and we know that 489 00:26:39,960 --> 00:26:43,000 Speaker 10: they're committed to doing what's fair for all shareholders. So 490 00:26:43,040 --> 00:26:45,040 Speaker 10: I'm hoping they'll be able to get to the finish line. 491 00:26:46,119 --> 00:26:49,240 Speaker 7: John, what does a change of ownership structure or this 492 00:26:49,400 --> 00:26:51,960 Speaker 7: M and a path fix to Paramount? 493 00:26:55,160 --> 00:26:57,760 Speaker 10: Well, I think that with Apollo and Sony you would 494 00:26:57,840 --> 00:26:59,840 Speaker 10: end up with enormous resources. It would help them with 495 00:26:59,840 --> 00:27:03,000 Speaker 10: their balance sheet that has, you know, gotten higher than 496 00:27:03,040 --> 00:27:05,520 Speaker 10: we would have hoped. You'll be able if you're working 497 00:27:05,520 --> 00:27:07,520 Speaker 10: with Sony. Sony has been an expert of being an 498 00:27:07,600 --> 00:27:10,119 Speaker 10: arms dealer, being able to use content and ways to 499 00:27:10,280 --> 00:27:15,200 Speaker 10: generate cash flow and profits, and have the extraordinary library 500 00:27:15,240 --> 00:27:20,840 Speaker 10: that Paramount brings, the history of Paramount's lot where they 501 00:27:20,880 --> 00:27:23,960 Speaker 10: have been able to make movies for generations, and there'll 502 00:27:24,000 --> 00:27:27,080 Speaker 10: be enormous synergies, you know. I think the synergies between 503 00:27:27,440 --> 00:27:32,920 Speaker 10: Sony and Paramount Paramount are much much greater than you 504 00:27:32,960 --> 00:27:36,400 Speaker 10: can imagine with a smaller company like Skydance. So we're 505 00:27:36,440 --> 00:27:39,080 Speaker 10: really hopeful that you'd be able to get great synergies, 506 00:27:39,160 --> 00:27:42,840 Speaker 10: higher cash flow and an experienced management team that will 507 00:27:42,840 --> 00:27:45,080 Speaker 10: be able to make those tough calls of what happens 508 00:27:45,080 --> 00:27:48,000 Speaker 10: with Pike Paramount, plus how much do you use content there? 509 00:27:48,040 --> 00:27:49,960 Speaker 10: How do you use it in selling into other competing 510 00:27:50,040 --> 00:27:54,800 Speaker 10: services like Netflix. We want that kind of experience leadership 511 00:27:54,800 --> 00:27:57,480 Speaker 10: that has been proven, and I know there are some 512 00:27:57,520 --> 00:28:00,360 Speaker 10: other large streamers out there they could possibly also get 513 00:28:00,400 --> 00:28:01,000 Speaker 10: into the mix. 514 00:28:01,800 --> 00:28:05,000 Speaker 4: We are of course with John Rogers of Aerial Investments 515 00:28:05,000 --> 00:28:07,640 Speaker 4: found of Coco to our radio and TV audience. John, 516 00:28:08,240 --> 00:28:11,760 Speaker 4: regulatory issues though with both potential tie ups, is that 517 00:28:11,800 --> 00:28:12,480 Speaker 4: a concern for you? 518 00:28:14,320 --> 00:28:17,520 Speaker 10: I think it's a modest concern for the real large 519 00:28:17,840 --> 00:28:20,400 Speaker 10: guys that are out there. I understand that people would 520 00:28:20,440 --> 00:28:24,560 Speaker 10: be worried if Netflix, for example, was to buy Paramount Global. 521 00:28:25,440 --> 00:28:28,520 Speaker 10: But ultimately, I think if people are really looking this 522 00:28:28,520 --> 00:28:30,439 Speaker 10: for the long run, you know, there's been lots of 523 00:28:30,440 --> 00:28:33,120 Speaker 10: litigation around some of the regulatory constraints that are out 524 00:28:33,160 --> 00:28:38,520 Speaker 10: there in today's economic system, I think ultimately rational people 525 00:28:38,560 --> 00:28:41,840 Speaker 10: will see do you want to see Paramount Plus collapse? 526 00:28:41,960 --> 00:28:44,280 Speaker 10: Do you want to see all those jobs lost? Do 527 00:28:44,360 --> 00:28:48,040 Speaker 10: you want to see a world class American company in disarray? 528 00:28:48,480 --> 00:28:50,080 Speaker 10: Or do you want to see it find a great 529 00:28:50,120 --> 00:28:53,120 Speaker 10: parent where they can merge and have a successful, growing 530 00:28:53,200 --> 00:28:56,720 Speaker 10: business over over the next decade or so. So I 531 00:28:56,760 --> 00:28:58,800 Speaker 10: think I'm hopeful that regulators will be able to make 532 00:28:58,840 --> 00:29:01,400 Speaker 10: the right decision, have it open mind about all the 533 00:29:01,480 --> 00:29:04,680 Speaker 10: various different possible combinations that are out there, And I 534 00:29:04,680 --> 00:29:07,280 Speaker 10: certainly think the Apollo a Sony deal should not have 535 00:29:07,320 --> 00:29:09,440 Speaker 10: any significant regulatory concerns. 536 00:29:09,840 --> 00:29:12,160 Speaker 4: John, You've written to your own investors in your Q 537 00:29:12,320 --> 00:29:14,840 Speaker 4: one report really saying, look, you're not an activist investor, 538 00:29:14,880 --> 00:29:17,920 Speaker 4: but you feel it's your fiduciary duty to raise concerns, 539 00:29:17,920 --> 00:29:20,800 Speaker 4: particularly from a corporate governance perspective here. And I want 540 00:29:20,800 --> 00:29:22,400 Speaker 4: to go back to the fact that you have held 541 00:29:22,400 --> 00:29:24,880 Speaker 4: this stock throughout these iterations, and you've seen the fact 542 00:29:24,920 --> 00:29:29,040 Speaker 4: that there was this controlling shareholder. Did you sort of 543 00:29:29,440 --> 00:29:33,640 Speaker 4: worry this might ever evolve from this corporate governance structure? 544 00:29:33,720 --> 00:29:35,600 Speaker 6: That particularly you're worry was. 545 00:29:35,600 --> 00:29:38,560 Speaker 4: The fact that three independent board members have recently stepped 546 00:29:38,560 --> 00:29:40,200 Speaker 4: down amid this m and A speculation. 547 00:29:42,920 --> 00:29:44,880 Speaker 10: You know, over the years, I've mentioned, you know, the 548 00:29:44,880 --> 00:29:47,760 Speaker 10: forty one years, we've not seen anything like this. I've 549 00:29:47,800 --> 00:29:50,320 Speaker 10: never in all the years of owning stocks that have 550 00:29:50,480 --> 00:29:54,960 Speaker 10: dual class shares, I've never seen a scenario where the 551 00:29:55,000 --> 00:29:58,480 Speaker 10: A shareholders were going to get a significantly larger premium 552 00:29:58,640 --> 00:30:01,440 Speaker 10: than the B shareholders. And that's just something we've never 553 00:30:01,480 --> 00:30:04,680 Speaker 10: seen before. And there's been a lot of smart investors, 554 00:30:04,680 --> 00:30:07,400 Speaker 10: it's youeno factual over the years. You know, Warren Buffett's 555 00:30:07,400 --> 00:30:10,400 Speaker 10: been a shareholder, We know Mario Gabelly, my friend Mario 556 00:30:10,480 --> 00:30:13,520 Speaker 10: has been a shareholder. We had other several good, smart 557 00:30:13,520 --> 00:30:17,360 Speaker 10: people looking at this and we've always felt that people 558 00:30:17,360 --> 00:30:19,400 Speaker 10: would do the rational thing and do the right thing 559 00:30:19,440 --> 00:30:23,240 Speaker 10: for all shareholders. That's what management's told us, Frankly, that's 560 00:30:23,240 --> 00:30:25,840 Speaker 10: what Sherry has said over time. And so we think 561 00:30:25,880 --> 00:30:29,400 Speaker 10: that this is something that came as a real, true surprise, 562 00:30:30,240 --> 00:30:32,240 Speaker 10: and it's something again like we've never seen before. 563 00:30:33,920 --> 00:30:36,920 Speaker 7: John, I watched The Masters on Paramount Plus. I get 564 00:30:36,920 --> 00:30:39,680 Speaker 7: my Champions League football through Paramount Plus. 565 00:30:39,720 --> 00:30:40,360 Speaker 5: I liked Halo. 566 00:30:40,560 --> 00:30:44,680 Speaker 7: What is it that you like about paramounts existing portfolio 567 00:30:44,760 --> 00:30:45,200 Speaker 7: and offering. 568 00:30:46,640 --> 00:30:49,720 Speaker 10: Well, you started at the right place. They have extraordinary 569 00:30:49,800 --> 00:30:53,680 Speaker 10: content that you know you must see. The super Bowl, 570 00:30:53,880 --> 00:30:57,280 Speaker 10: you know, had great, great ratings, Grammys were great. You 571 00:30:57,360 --> 00:30:58,360 Speaker 10: mentioned the Masters. 572 00:30:58,760 --> 00:31:00,720 Speaker 5: They've got great scripted shows. 573 00:31:00,480 --> 00:31:05,520 Speaker 10: The CSI franchise, the news franchise, CBS Sunday Morning sixty Minutes, 574 00:31:05,600 --> 00:31:09,600 Speaker 10: CBS Evening News, and this is robust history. But then 575 00:31:09,600 --> 00:31:12,200 Speaker 10: you put on top of it this extraordinary library with 576 00:31:12,960 --> 00:31:17,400 Speaker 10: the Paramount Greats, Mission Impossible and The Godfather. You could 577 00:31:17,480 --> 00:31:20,760 Speaker 10: go on and on and on. They've got Pluto, which 578 00:31:20,800 --> 00:31:25,520 Speaker 10: is an extremely successful streaming service. You've got worldwide assets 579 00:31:25,520 --> 00:31:28,160 Speaker 10: the Bob Backish used to run that are extremely valuable 580 00:31:28,160 --> 00:31:30,880 Speaker 10: and seem to get ignored by the analyst community and 581 00:31:30,920 --> 00:31:34,600 Speaker 10: the value that's there. So they have a well diversified 582 00:31:34,640 --> 00:31:38,040 Speaker 10: group of assets, many hidden assets, real estate that it 583 00:31:38,080 --> 00:31:42,480 Speaker 10: hasn't completely been utilized, institutions like Showtime and BT that 584 00:31:42,600 --> 00:31:44,800 Speaker 10: I wish they had found a way to have sold earlier. 585 00:31:45,240 --> 00:31:48,120 Speaker 10: But these are real, true assets to this company. And 586 00:31:48,200 --> 00:31:50,120 Speaker 10: I think sometimes people get into the group think of 587 00:31:50,160 --> 00:31:53,040 Speaker 10: the moment, they're worried about the cord cutting, and they're 588 00:31:53,040 --> 00:31:56,880 Speaker 10: forgetting to value all of the assets that Paramount Global has. 589 00:31:57,400 --> 00:31:59,959 Speaker 4: You're a value investor, you look at the value. John, 590 00:32:00,040 --> 00:32:03,320 Speaker 4: You'll also say, you don't sell into chaos. What do 591 00:32:03,360 --> 00:32:06,680 Speaker 4: you do though, if a deal with Skuydance goes ahead. 592 00:32:07,800 --> 00:32:10,720 Speaker 10: Well, we have been looking at all of our options. 593 00:32:10,840 --> 00:32:13,440 Speaker 10: We did write a letter to the board of directors 594 00:32:13,480 --> 00:32:16,840 Speaker 10: explaining our position. We've been, of course talking to expert 595 00:32:16,960 --> 00:32:20,480 Speaker 10: legal counsel, and our general counsel is terrific and she's 596 00:32:20,480 --> 00:32:23,400 Speaker 10: been on top of those issues. So we're looking at 597 00:32:23,400 --> 00:32:26,680 Speaker 10: all of our alternatives and we'll see how this all 598 00:32:26,720 --> 00:32:29,240 Speaker 10: plays out. But we would like to see this play 599 00:32:29,240 --> 00:32:31,160 Speaker 10: out in a way that is very constructive because it 600 00:32:31,200 --> 00:32:34,120 Speaker 10: would be not a good thing for a sky dancer 601 00:32:34,280 --> 00:32:37,280 Speaker 10: trying to buy a company where you're in litigation with 602 00:32:37,320 --> 00:32:39,560 Speaker 10: all of your shareholders or many of your shareholders, I 603 00:32:39,560 --> 00:32:41,880 Speaker 10: should say many of your shareholders, and at the same time, 604 00:32:41,920 --> 00:32:44,320 Speaker 10: your senior management is not going to be happy if 605 00:32:44,360 --> 00:32:46,840 Speaker 10: the deal isn't fair for the b shareholders. That's the 606 00:32:46,880 --> 00:32:50,440 Speaker 10: management team owns. And we all know M and A 607 00:32:50,560 --> 00:32:53,520 Speaker 10: is difficult in the best of circumstances getting all the 608 00:32:53,560 --> 00:32:56,240 Speaker 10: synergies done and all the tough calls that have to 609 00:32:56,240 --> 00:32:58,960 Speaker 10: be made, and it would be a difficult environment I 610 00:32:59,000 --> 00:33:01,440 Speaker 10: think for them to be able to be successful, while 611 00:33:01,440 --> 00:33:03,959 Speaker 10: you could have such a cleaner deal with an extraordinary 612 00:33:04,000 --> 00:33:05,440 Speaker 10: company like Apollo and Sony. 613 00:33:07,200 --> 00:33:10,840 Speaker 7: John Rogers, Aerio Investments, founder and co CEO, grateful for 614 00:33:10,880 --> 00:33:22,320 Speaker 7: your time, Thank you, Welcome back to Member of Technology. 615 00:33:22,360 --> 00:33:24,480 Speaker 7: A quick check on the markets and three names that 616 00:33:24,520 --> 00:33:27,480 Speaker 7: we're looking because they report earnings after the bell. You're 617 00:33:27,520 --> 00:33:30,880 Speaker 7: either an AI or advertising story or you're both. AMD 618 00:33:31,040 --> 00:33:33,440 Speaker 7: up four ten to percent. The story is really clear. 619 00:33:33,520 --> 00:33:37,320 Speaker 7: The three hundred X is their current generation AI accelerator. 620 00:33:37,600 --> 00:33:39,040 Speaker 7: They were on track to do three and a half 621 00:33:39,120 --> 00:33:41,720 Speaker 7: billion dollars of sales this year. Will they catch up 622 00:33:41,760 --> 00:33:44,600 Speaker 7: with Nvidia? Will they pull ahead of Intel? The above 623 00:33:44,680 --> 00:33:48,120 Speaker 7: or below. That's the story. Then Amazon's down a percentage point. 624 00:33:48,120 --> 00:33:51,520 Speaker 7: It is interesting the bar so high following alphabet the 625 00:33:51,560 --> 00:33:55,800 Speaker 7: parent of Google and Microsoft earnings because both showed growth 626 00:33:55,840 --> 00:33:58,760 Speaker 7: in their cloud sales, but both gave us either numbers 627 00:33:58,800 --> 00:34:03,400 Speaker 7: or evidence that contrab to cloud growth specifically came from AI. 628 00:34:03,680 --> 00:34:06,400 Speaker 7: In Amazon's case, advertising is also really interesting, right, so 629 00:34:06,480 --> 00:34:09,560 Speaker 7: twelve percent overall top line growth, but it's the first 630 00:34:09,640 --> 00:34:13,280 Speaker 7: quarter where since January they've included ads in Prime Video? 631 00:34:13,560 --> 00:34:15,520 Speaker 5: Does that show up as revenue? Really interesting? 632 00:34:15,520 --> 00:34:18,840 Speaker 7: In mpinterest they're not seeing any user growth, but the 633 00:34:18,880 --> 00:34:21,719 Speaker 7: street car I thinks they might be okay because it's 634 00:34:21,719 --> 00:34:24,080 Speaker 7: been a mixed picture so far. But on the whole, 635 00:34:24,120 --> 00:34:25,479 Speaker 7: maybe advertising not so bad. 636 00:34:25,960 --> 00:34:28,560 Speaker 4: Pinterest is just a different type of a business, isn't it. 637 00:34:28,600 --> 00:34:31,080 Speaker 4: Aired Then the fact that we've seen pinterest try to 638 00:34:31,120 --> 00:34:33,880 Speaker 4: really focus in on, well, this is a safe space, 639 00:34:33,960 --> 00:34:37,640 Speaker 4: an optimistic place, particularly in the current political narrative. 640 00:34:37,280 --> 00:34:39,200 Speaker 5: I'd say yeah. 641 00:34:39,239 --> 00:34:40,680 Speaker 7: And one thing I want to know as well is 642 00:34:40,719 --> 00:34:44,680 Speaker 7: like ads, meaning what like AI, ads ads or AI? 643 00:34:45,000 --> 00:34:46,440 Speaker 5: I still don't quite get that story. 644 00:34:46,680 --> 00:34:49,240 Speaker 4: We've got someone who knows everything about ads and AI 645 00:34:49,480 --> 00:34:53,719 Speaker 4: luckily joining us now Integral Ads Science CEO Lisa Uchneiner, 646 00:34:54,080 --> 00:34:56,839 Speaker 4: Integral ad Science actually helps advertisers at Fortune five hundred 647 00:34:56,880 --> 00:34:59,879 Speaker 4: brands measure if their campaigns are appearing next to safe, 648 00:35:00,040 --> 00:35:03,000 Speaker 4: suitable content across Metro, Instagram, TikTok, yout Pinterest, We're just 649 00:35:03,000 --> 00:35:04,240 Speaker 4: talking about Spotify, linkedins. 650 00:35:04,280 --> 00:35:06,120 Speaker 6: Now, you name it, you measure it. 651 00:35:06,520 --> 00:35:09,320 Speaker 4: And I'm really interested by what ultimately your bread and 652 00:35:09,360 --> 00:35:13,120 Speaker 4: buster business been looking like of late. Have brands felt 653 00:35:13,120 --> 00:35:15,480 Speaker 4: more secure through your data to come and align the 654 00:35:15,600 --> 00:35:20,400 Speaker 4: ads next to those of well use more Metapinterest, Snap 655 00:35:20,440 --> 00:35:20,960 Speaker 4: and I like. 656 00:35:21,239 --> 00:35:24,200 Speaker 11: Sure Integral ads Science and thank you for having me. 657 00:35:24,360 --> 00:35:28,000 Speaker 11: We're a leading digital media quality company and we focus 658 00:35:28,080 --> 00:35:32,960 Speaker 11: on exactly what you're speaking to measurement optimization for over 659 00:35:33,080 --> 00:35:38,080 Speaker 11: two thousand brands worldwide. We work with the leading platforms 660 00:35:38,160 --> 00:35:42,840 Speaker 11: and publishers and we built a technology back by AI. 661 00:35:42,920 --> 00:35:48,520 Speaker 11: It's multimedia classification technology. We're in the live feeds of 662 00:35:48,680 --> 00:35:53,759 Speaker 11: all the major social platforms. We are classifying video, image, 663 00:35:54,200 --> 00:35:58,640 Speaker 11: audio and text ensuring that the brands are running adjacent 664 00:35:59,080 --> 00:36:01,120 Speaker 11: to brand safe and suitable. 665 00:36:00,760 --> 00:36:02,719 Speaker 6: Content and has the date to have been getting better. 666 00:36:02,960 --> 00:36:08,120 Speaker 11: The data is absolutely getting better. Our technology is highly sophisticated. 667 00:36:08,440 --> 00:36:12,160 Speaker 11: We're classifying frame by frame and what I mean by that, 668 00:36:12,360 --> 00:36:16,400 Speaker 11: if there's let's say a thirty second TikTok video running, 669 00:36:16,800 --> 00:36:20,600 Speaker 11: we are classifying every single second of that thirty second 670 00:36:20,920 --> 00:36:26,319 Speaker 11: TikTok video to ensure brands aren't running adjacent to unsuitable 671 00:36:26,480 --> 00:36:33,480 Speaker 11: content like hate speech, violence, and as we rolled out recently, misinformation. 672 00:36:33,800 --> 00:36:37,480 Speaker 7: Lisa is Pinterest a platform you take seriously in the 673 00:36:37,520 --> 00:36:38,440 Speaker 7: context of ads. 674 00:36:39,120 --> 00:36:43,799 Speaker 11: The brands take all of the platforms seriously, including Pinterest, 675 00:36:43,920 --> 00:36:46,280 Speaker 11: And as you look at the size of the digital 676 00:36:46,440 --> 00:36:51,240 Speaker 11: advertising market space and the fact that advertisers they're pouring 677 00:36:51,360 --> 00:36:56,160 Speaker 11: billions and billions of dollars into digital advertising, they want 678 00:36:56,200 --> 00:37:02,000 Speaker 11: to ensure that an independent verification company like Integral ad Science, 679 00:37:02,440 --> 00:37:06,400 Speaker 11: we are classifying and verifying the quality of the media, 680 00:37:06,760 --> 00:37:11,920 Speaker 11: and that we're holding the platforms accountable and responsible again, 681 00:37:12,200 --> 00:37:17,400 Speaker 11: ensuring that we're identifying the inappropriate stuff and helping advertisers 682 00:37:17,480 --> 00:37:22,880 Speaker 11: run their brands adjacent to more appropriate, brand suitable content. 683 00:37:23,080 --> 00:37:25,839 Speaker 4: And we'll see how those social media companies have benefited 684 00:37:26,320 --> 00:37:28,440 Speaker 4: from some of that growing confidence research. 685 00:37:28,440 --> 00:37:30,839 Speaker 6: Snider, we thank you for being hit Intagled ad Science. 686 00:37:30,560 --> 00:37:42,680 Speaker 7: CEO Changpeng cz Jow, the billionaire founder of the Binance 687 00:37:42,719 --> 00:37:46,760 Speaker 7: Crypto Exchange is starting his sentencing hearing today on anti 688 00:37:46,840 --> 00:37:50,640 Speaker 7: money laundering charges and prosecutors recommending the court give him 689 00:37:50,719 --> 00:37:54,600 Speaker 7: three years in prison, double the maximum that guidelines prescribe. 690 00:37:54,760 --> 00:37:57,120 Speaker 7: Let's go out to Bluebo's Olga Krief, who has all 691 00:37:57,120 --> 00:37:59,200 Speaker 7: the details of what are we expecting. 692 00:38:00,239 --> 00:38:04,719 Speaker 12: So we are expecting the hearing perhaps to last not 693 00:38:04,880 --> 00:38:08,760 Speaker 12: very long, in a couple of hours. CZ will probably 694 00:38:08,800 --> 00:38:13,719 Speaker 12: speak at the hearing, and his lawyers are pushing for 695 00:38:13,920 --> 00:38:19,240 Speaker 12: probation and sort of much you know, less harsh sentence 696 00:38:19,400 --> 00:38:22,280 Speaker 12: than what the prosecution has asked for. And of course 697 00:38:22,800 --> 00:38:28,440 Speaker 12: you'll recall that in November CZ pled guilty to a 698 00:38:28,520 --> 00:38:32,480 Speaker 12: number of charges and he agreed to pay a fifty 699 00:38:32,520 --> 00:38:35,839 Speaker 12: million dollar fine, and Binance agreed to a four point 700 00:38:35,920 --> 00:38:40,200 Speaker 12: three billion dollar fine, and today we'll find out sort 701 00:38:40,200 --> 00:38:44,440 Speaker 12: of what happens to him. He still retains his ownership 702 00:38:44,480 --> 00:38:49,080 Speaker 12: of Finance, which has been doing extremely well, especially in 703 00:38:49,160 --> 00:38:54,840 Speaker 12: this year's sort of cryptoble market, driven by the introduction 704 00:38:54,920 --> 00:39:00,920 Speaker 12: of US Spot bitcoin exchange exchange traded funds. 705 00:39:02,120 --> 00:39:05,520 Speaker 4: Well, Olga Curf, we thank you for really an amazing read. 706 00:39:05,640 --> 00:39:08,359 Speaker 6: It's the big take today, go online, go check it out. 707 00:39:08,400 --> 00:39:10,080 Speaker 6: Because it really is about. 708 00:39:09,880 --> 00:39:12,719 Speaker 4: Ultimately the fortune of cz and how that doesn't seem 709 00:39:12,719 --> 00:39:15,040 Speaker 4: to be being vented anytime soon, whether he says prison 710 00:39:15,080 --> 00:39:17,879 Speaker 4: time or not. Meanwhile, though, there is a whole raft 711 00:39:17,880 --> 00:39:19,520 Speaker 4: of other crypto news to be getting into in a 712 00:39:19,520 --> 00:39:21,880 Speaker 4: batch of ets. So we're just talking about investing directly 713 00:39:21,920 --> 00:39:23,359 Speaker 4: in crypto just debuted over. 714 00:39:23,280 --> 00:39:23,920 Speaker 6: In Hong Kong. 715 00:39:24,440 --> 00:39:27,239 Speaker 4: So is this competition to the US bitcoin products? Is 716 00:39:27,239 --> 00:39:29,840 Speaker 4: this going to bring in new investors, particularly. 717 00:39:29,920 --> 00:39:30,560 Speaker 6: Over in Asia? 718 00:39:30,560 --> 00:39:33,480 Speaker 4: Still Mark founder and managing partner and ease Colleen joins us. Now, 719 00:39:33,640 --> 00:39:36,600 Speaker 4: look still coin. Still Mark is a bitcoin focus venture 720 00:39:36,600 --> 00:39:38,400 Speaker 4: capital firm. We got eighty five million dollars in assets 721 00:39:38,440 --> 00:39:40,080 Speaker 4: on a management You've been doing this for a long time, 722 00:39:40,160 --> 00:39:44,360 Speaker 4: looking at the protocols, the real use cases of bitcoin. 723 00:39:44,680 --> 00:39:48,680 Speaker 4: This is eth and Bitcoin spot ETF. What does this 724 00:39:48,760 --> 00:39:49,640 Speaker 4: mean for the industry. 725 00:39:51,440 --> 00:39:55,560 Speaker 13: Well, it's the first time we're seeing the ETF perform 726 00:39:55,680 --> 00:39:58,920 Speaker 13: against Bitcoin ETF. And what we saw in Hong Kong's 727 00:39:59,440 --> 00:40:02,719 Speaker 13: day one launch was that much of the activity, the 728 00:40:02,800 --> 00:40:05,480 Speaker 13: vast majority of the activity was in the Bitcoin ETF. 729 00:40:05,960 --> 00:40:09,920 Speaker 13: We saw about just under thirteen million dollars of trading activity, 730 00:40:09,960 --> 00:40:12,800 Speaker 13: which is a lot for the Hong Kong market sized 731 00:40:12,840 --> 00:40:17,280 Speaker 13: at fifty billion. Issuer China AMC has reported one hundred 732 00:40:17,280 --> 00:40:20,520 Speaker 13: and forty one million dollars in assets under management after 733 00:40:20,600 --> 00:40:22,799 Speaker 13: day one, and eighty six percent of that is in 734 00:40:22,840 --> 00:40:24,600 Speaker 13: the Bitcoin spot ETF. 735 00:40:25,280 --> 00:40:28,160 Speaker 7: At least, Why is it important that we have multiple 736 00:40:28,239 --> 00:40:31,239 Speaker 7: markets New York, Hong Kong. We talked the other day 737 00:40:31,280 --> 00:40:34,800 Speaker 7: about Australia thinking about its place in this market. 738 00:40:36,239 --> 00:40:37,200 Speaker 1: It's a great question. 739 00:40:37,760 --> 00:40:42,240 Speaker 13: First of all, of course, Bitcoin's price is a product 740 00:40:42,440 --> 00:40:46,680 Speaker 13: of adoption and expansion of its utility set. As esetfs 741 00:40:46,680 --> 00:40:50,239 Speaker 13: are introduced in new markets and new geographies, we are 742 00:40:50,400 --> 00:40:53,600 Speaker 13: advancing adoption. We're bringing a new group of users into 743 00:40:53,600 --> 00:40:57,640 Speaker 13: bitcoin through a regulated product, albeit one that relies, of 744 00:40:57,680 --> 00:41:01,359 Speaker 13: course on a custodian We're also moving closer to having 745 00:41:01,400 --> 00:41:05,760 Speaker 13: a twenty four to seven spot ETF market. Of course, 746 00:41:05,760 --> 00:41:07,280 Speaker 13: with the addition of Hong Kong. 747 00:41:08,600 --> 00:41:11,920 Speaker 4: I'm interested in Hong Kong specifically because of his relationship 748 00:41:11,920 --> 00:41:14,719 Speaker 4: with China and the regulatory oversight. What does this mean 749 00:41:15,320 --> 00:41:19,760 Speaker 4: for China's relationship with crypto, Yes, exactly. 750 00:41:19,840 --> 00:41:23,200 Speaker 13: Many are interested for exactly the same reason now, of course, 751 00:41:23,239 --> 00:41:26,480 Speaker 13: in the launch of the Bitcoin and East Spot ETFs 752 00:41:26,600 --> 00:41:30,880 Speaker 13: in Hong Kong. People in China do not have access, 753 00:41:31,600 --> 00:41:37,240 Speaker 13: so it's a more curtailed audience. Of course, that said, 754 00:41:37,520 --> 00:41:43,320 Speaker 13: we are still introducing an entirely new audience, and one 755 00:41:43,400 --> 00:41:48,520 Speaker 13: that one that thinks differently, has different has exposure to 756 00:41:48,560 --> 00:41:52,880 Speaker 13: different media sources, and we expect that this is a 757 00:41:52,920 --> 00:41:59,040 Speaker 13: positive sign for broader proliferation of bitcoin products in Hong 758 00:41:59,160 --> 00:42:04,440 Speaker 13: Kong and in the reg and exposed to this product still. 759 00:42:04,239 --> 00:42:07,799 Speaker 7: Mark founder and managing partner Elisa Colleen, we really appreciate 760 00:42:07,960 --> 00:42:12,120 Speaker 7: your real time global perspective, and fortunately for our audience, 761 00:42:12,160 --> 00:42:15,799 Speaker 7: there's more coverage of those ETFs and the CZ sentencing 762 00:42:15,880 --> 00:42:18,600 Speaker 7: at the top of the next hour on Bloomberg Crypto. 763 00:42:18,960 --> 00:42:21,640 Speaker 7: The understanding is that in the CZ hearing at least 764 00:42:21,640 --> 00:42:24,520 Speaker 7: carow a lot of that will kick off around midday 765 00:42:24,560 --> 00:42:26,920 Speaker 7: New York time, which is nine am out here on 766 00:42:26,960 --> 00:42:27,360 Speaker 7: the West. 767 00:42:27,680 --> 00:42:29,920 Speaker 4: Pretty perfect if you want to be digesting that in 768 00:42:29,960 --> 00:42:32,040 Speaker 4: real time with a crypto show, but we sort of 769 00:42:32,120 --> 00:42:34,200 Speaker 4: tease ahead to it, but for now, that's our job 770 00:42:34,200 --> 00:42:35,840 Speaker 4: done on this edition of Bloombog Technology. 771 00:42:36,480 --> 00:42:40,799 Speaker 7: Yeah, a really massive after market earning situation that we're 772 00:42:40,840 --> 00:42:42,440 Speaker 7: going to be tuned into and tomorrow is going to 773 00:42:42,440 --> 00:42:45,080 Speaker 7: be a big discussion on that. The pod on Apple, Spotify. 774 00:42:45,120 --> 00:42:48,400 Speaker 7: iHeart the Bloomberg platforms. Thank you to listening to the podcast. 775 00:42:48,560 --> 00:42:49,960 Speaker 7: This is Bloomberg Technology.