1 00:00:14,160 --> 00:00:17,200 Speaker 1: I'm Caroline Highe at Broomberg Studio right here in San Francisco, 2 00:00:17,239 --> 00:00:19,520 Speaker 1: and me Lovelow, also in San Francisco. This is Blombo 3 00:00:19,600 --> 00:00:22,960 Speaker 1: Technology and Caroline Tech. Earnings are here Texas Instruments. Microsoft. 4 00:00:23,079 --> 00:00:25,680 Speaker 1: The market treading water until those numbers hit, and this 5 00:00:25,760 --> 00:00:27,639 Speaker 1: is why we're in San Francisco for this week. This 6 00:00:27,720 --> 00:00:29,960 Speaker 1: is why we look at what is already some optimism, 7 00:00:30,040 --> 00:00:32,760 Speaker 1: some hope, as a futures market already signaling it. Let's 8 00:00:32,800 --> 00:00:36,480 Speaker 1: talk about all those headlines Microsoft rising after profit Cloud 9 00:00:36,560 --> 00:00:39,840 Speaker 1: revenues they've beat estimates. Plus the Justice Department in eight 10 00:00:39,920 --> 00:00:43,239 Speaker 1: states are suing to break up Google's a business, and 11 00:00:43,320 --> 00:00:46,920 Speaker 1: senators blast ticket masters CEO over soaring ticket prices and 12 00:00:46,920 --> 00:00:50,839 Speaker 1: a terrible customer experience. Let's flip it on the Microsoft, 13 00:00:50,840 --> 00:00:53,120 Speaker 1: because this is the key name. The first megacat to 14 00:00:53,280 --> 00:00:56,760 Speaker 1: report profit was the focus strong fiscal second quarter at 15 00:00:56,760 --> 00:00:59,480 Speaker 1: EPs at two dollars thirty two cents to share above 16 00:00:59,520 --> 00:01:01,920 Speaker 1: and list expectations. The other way of looking at it 17 00:01:01,960 --> 00:01:04,399 Speaker 1: is that actually EPs did not drop as much from 18 00:01:04,400 --> 00:01:06,480 Speaker 1: the same period a year ago as the street had 19 00:01:06,480 --> 00:01:08,840 Speaker 1: been looking for the broadest story. If you look into 20 00:01:08,840 --> 00:01:11,360 Speaker 1: my Bloomberg terminal. When we talk about that bottom line 21 00:01:11,560 --> 00:01:14,479 Speaker 1: was the performance in strength in as your cloud. How 22 00:01:14,480 --> 00:01:17,520 Speaker 1: often has that unit, Carol been in the headlines of 23 00:01:17,600 --> 00:01:19,280 Speaker 1: late And that's what we'll go straight to first with 24 00:01:19,360 --> 00:01:23,200 Speaker 1: Jeffreys analyst Brent Hill, who has a by rating on Microsoft. 25 00:01:23,600 --> 00:01:26,000 Speaker 1: Welcome to the show. Brent. Simple question to start with 26 00:01:26,160 --> 00:01:28,760 Speaker 1: this is once again as you're saving the day, isn't it? Yes? 27 00:01:28,920 --> 00:01:33,000 Speaker 1: As here's one component. Office was also very good. I 28 00:01:33,040 --> 00:01:39,000 Speaker 1: think the balance of growth and profitability is keeping Microsoft alive. Remember, 29 00:01:39,040 --> 00:01:42,160 Speaker 1: going into the print, everyone was super fearful that Nidela 30 00:01:42,760 --> 00:01:45,480 Speaker 1: had shared, you know, a textra up for two years. 31 00:01:45,560 --> 00:01:48,520 Speaker 1: The US was going to get worse. So they certainly 32 00:01:48,600 --> 00:01:52,120 Speaker 1: brought expectations down in front of the print, but delivered 33 00:01:52,520 --> 00:01:55,080 Speaker 1: what was in okay quarter. No one was going to 34 00:01:55,160 --> 00:01:58,560 Speaker 1: do backfloods over these numbers. There's no question technology spence 35 00:01:59,120 --> 00:02:01,680 Speaker 1: slowing in the get worse in the back. After the year, 36 00:02:01,720 --> 00:02:04,640 Speaker 1: they have another quarter of to tough comps, so you know, 37 00:02:04,760 --> 00:02:07,840 Speaker 1: let's let's let's not not break up the champagne glasses 38 00:02:08,240 --> 00:02:12,440 Speaker 1: at this point. But it relative to the fear way 39 00:02:12,480 --> 00:02:15,600 Speaker 1: better than expected. Yeah. I think that's an interesting point. 40 00:02:15,639 --> 00:02:17,840 Speaker 1: I think when we look at asual the business a 41 00:02:17,880 --> 00:02:21,000 Speaker 1: hundred basis points better than than guided, then you kind 42 00:02:21,000 --> 00:02:24,080 Speaker 1: of think about this idea that I think EPs drop 43 00:02:24,120 --> 00:02:25,799 Speaker 1: six and a half percent. The street was looking for 44 00:02:25,840 --> 00:02:28,760 Speaker 1: a seven point five pc drop year on year. When 45 00:02:28,760 --> 00:02:30,480 Speaker 1: we look forward to the rest of the year, what 46 00:02:30,680 --> 00:02:33,720 Speaker 1: is this story for Microsoft with this broader economy. Is 47 00:02:33,720 --> 00:02:37,200 Speaker 1: it going to have to rely on its cloud business? Yeah, 48 00:02:37,240 --> 00:02:39,080 Speaker 1: I mean it's all about the cloud. I mean, there's 49 00:02:39,080 --> 00:02:42,359 Speaker 1: no other story here. Uh, it is the cloud. Um. 50 00:02:42,400 --> 00:02:44,920 Speaker 1: I think as we go deeper into the year, I 51 00:02:44,919 --> 00:02:48,639 Speaker 1: think this concept of I T budgets are shrinking? Can 52 00:02:48,680 --> 00:02:52,760 Speaker 1: Microsoft do more with less? And what we're hearing in 53 00:02:52,800 --> 00:02:55,040 Speaker 1: a lot of the interviews is ce I O s 54 00:02:55,040 --> 00:02:59,799 Speaker 1: are continuing to consolidate their spend onto Microsoft. Microsoft has 55 00:02:59,800 --> 00:03:03,880 Speaker 1: been vicious about contract renewals. They don't budge when when 56 00:03:03,919 --> 00:03:06,440 Speaker 1: ce IO is trying to renew. So relative to a 57 00:03:06,760 --> 00:03:11,360 Speaker 1: overall tech environment that is slowing into can Microsoft is 58 00:03:11,400 --> 00:03:15,400 Speaker 1: going to do relatively better in that environment? And and 59 00:03:15,440 --> 00:03:19,120 Speaker 1: it's about consolidation in taking spend from other vendors. So 60 00:03:19,240 --> 00:03:21,639 Speaker 1: I think other vendors are in a way worse position. 61 00:03:22,080 --> 00:03:26,560 Speaker 1: The portfolio, the durability of the revenue. The quality of 62 00:03:26,560 --> 00:03:29,800 Speaker 1: this management team should be able to cut through this. 63 00:03:29,960 --> 00:03:33,000 Speaker 1: But I think really investors are trying to ask, you know, 64 00:03:33,040 --> 00:03:34,760 Speaker 1: what do I pay for the stock that's got ten 65 00:03:34,800 --> 00:03:37,760 Speaker 1: dollars of earning power trains out of mid twenty multiple. 66 00:03:37,840 --> 00:03:40,840 Speaker 1: So it's not exactly cheap, it's not expensive, it's just 67 00:03:40,920 --> 00:03:42,640 Speaker 1: kind of right in the middle. So I think that's 68 00:03:42,640 --> 00:03:46,000 Speaker 1: a concern. Okay, so your price target, of course, Brend, 69 00:03:46,280 --> 00:03:48,840 Speaker 1: is to eighty. What takes us that? And what do 70 00:03:48,840 --> 00:03:50,280 Speaker 1: you want to hear on the coolt I think we 71 00:03:50,320 --> 00:03:53,880 Speaker 1: continue on to hear about they haven't guided in this release, 72 00:03:53,880 --> 00:03:57,080 Speaker 1: so we need to hear guidance. Uh and and that 73 00:03:57,600 --> 00:04:00,560 Speaker 1: are things you know. Nidella said this that things may 74 00:04:00,560 --> 00:04:03,160 Speaker 1: get worse inside the US, what's happening in the US 75 00:04:03,240 --> 00:04:06,600 Speaker 1: market and the rest of the world. Ultimately, can they 76 00:04:06,600 --> 00:04:10,480 Speaker 1: commit to double digit growth? They've talked about a framework 77 00:04:10,520 --> 00:04:13,760 Speaker 1: of having double digit growth with margin improvement. Can they 78 00:04:13,800 --> 00:04:17,240 Speaker 1: hold that? And so I think overall everyone is really 79 00:04:17,279 --> 00:04:20,599 Speaker 1: just all eyes on what's going to actually happen with 80 00:04:20,960 --> 00:04:24,839 Speaker 1: with overall growth for the rest of the year. Brent, 81 00:04:25,600 --> 00:04:28,040 Speaker 1: You'll be sticking with us, Brent, Phille just hold on 82 00:04:28,040 --> 00:04:30,600 Speaker 1: one moment, because we've got another key technology news of 83 00:04:30,640 --> 00:04:33,520 Speaker 1: the day, we've got to digest Justice Department eight States 84 00:04:33,680 --> 00:04:37,040 Speaker 1: as well also in Google over the search giants ad dominance. 85 00:04:37,240 --> 00:04:39,680 Speaker 1: Blomberg's Emily bern Broum is with us in d C. 86 00:04:40,279 --> 00:04:44,320 Speaker 1: Having the details for US, Emily taken away. What overall 87 00:04:44,480 --> 00:04:49,200 Speaker 1: is the argument coming from the United States against Google? Right? 88 00:04:49,320 --> 00:04:53,000 Speaker 1: So today the Justice Department in eight US States announced 89 00:04:53,040 --> 00:04:56,920 Speaker 1: their long awaited case against Google. UM. They're alleging that 90 00:04:57,000 --> 00:05:01,599 Speaker 1: Google has abused its dominance in online marketing. UM that 91 00:05:02,000 --> 00:05:06,320 Speaker 1: for every one dollar that advertisers spend on its litany 92 00:05:06,400 --> 00:05:10,599 Speaker 1: of online advertising tools, UM, Google takes thirty cents, So 93 00:05:10,720 --> 00:05:15,360 Speaker 1: essentially that they have UM, they've harmed competition online, They've 94 00:05:15,400 --> 00:05:19,320 Speaker 1: made life harder and were expensive for advertisers. UM. And 95 00:05:19,480 --> 00:05:21,840 Speaker 1: this is the second case that the Justice farm it 96 00:05:21,920 --> 00:05:25,600 Speaker 1: has brought against Google. UM and some experts say this 97 00:05:25,680 --> 00:05:29,039 Speaker 1: is UM potentially a more winning case. UM. And I 98 00:05:29,120 --> 00:05:31,880 Speaker 1: know everyone in the tech industry is watching really closely. 99 00:05:32,640 --> 00:05:36,280 Speaker 1: They certainly including Google, which has itself responded E many member, 100 00:05:36,520 --> 00:05:38,560 Speaker 1: we thank you for that. And NETS get the take 101 00:05:38,600 --> 00:05:41,080 Speaker 1: of Jeffreysans Brentville, who has a by rating on the 102 00:05:41,120 --> 00:05:44,840 Speaker 1: Google parent alphabet and regulatory headwins. We know they're abound 103 00:05:44,839 --> 00:05:47,599 Speaker 1: for many a tech name. But from your perspective, the 104 00:05:47,640 --> 00:05:50,680 Speaker 1: fact that Google is saying there isn't sort of legal 105 00:05:50,720 --> 00:05:55,159 Speaker 1: founding for this, do you agree. Look every legal case 106 00:05:55,240 --> 00:05:57,599 Speaker 1: it's calmed, they thown away around it, and so it 107 00:05:57,640 --> 00:05:59,640 Speaker 1: hasn't slowed them down yet. I don't think this is 108 00:05:59,680 --> 00:06:02,320 Speaker 1: gonna low down. It's hard to handicap the case, to 109 00:06:02,320 --> 00:06:06,960 Speaker 1: be honest, um, but we've been living with regulatory headwinds 110 00:06:06,960 --> 00:06:09,800 Speaker 1: and the Internet for so long. Um, it's really hard 111 00:06:09,800 --> 00:06:11,760 Speaker 1: to handicap. I don't believe this is going to have 112 00:06:11,800 --> 00:06:14,520 Speaker 1: any impact. Ultimately, at the end of the day, Google's 113 00:06:14,520 --> 00:06:18,760 Speaker 1: providing service that's helping us as consumers get places, find items. 114 00:06:18,880 --> 00:06:22,480 Speaker 1: I do not right now have any belief that this 115 00:06:22,560 --> 00:06:25,679 Speaker 1: will have any material impact in the business. Um. There's 116 00:06:25,720 --> 00:06:29,240 Speaker 1: been tons of legal scare tactics. UM, So right now 117 00:06:29,279 --> 00:06:31,240 Speaker 1: it's really hard to handicap. And I think this is 118 00:06:31,279 --> 00:06:33,880 Speaker 1: why Google's training at such a low multiple, as everyone's 119 00:06:33,920 --> 00:06:37,000 Speaker 1: concerned at some point could something happen. We we there's 120 00:06:37,040 --> 00:06:39,839 Speaker 1: been no precedents that it has any had any issue 121 00:06:39,839 --> 00:06:42,440 Speaker 1: on side the core business that has slowed them down 122 00:06:42,880 --> 00:06:46,080 Speaker 1: still far, I mean, Brent Google said in a blog 123 00:06:46,120 --> 00:06:49,240 Speaker 1: post that the lawsuit quote attempts to pick winners and 124 00:06:49,360 --> 00:06:52,760 Speaker 1: losers in a highly competitive advertising technology sector. They say 125 00:06:52,839 --> 00:06:57,159 Speaker 1: logic duplicates an unfounded lawsuit by the Texas Attorney General, 126 00:06:57,520 --> 00:07:01,200 Speaker 1: much of which was recently dismissed by federal art is 127 00:07:01,240 --> 00:07:04,880 Speaker 1: this though, Brent, Even if they managed to win, it's 128 00:07:04,920 --> 00:07:07,839 Speaker 1: a cost headache, but it's also perhaps costing them in 129 00:07:07,920 --> 00:07:09,960 Speaker 1: terms of innovation. Is it just a distraction? What do 130 00:07:10,040 --> 00:07:13,280 Speaker 1: you worry about the opportunity cost hit? Yeah, it's a distraction. 131 00:07:13,360 --> 00:07:16,320 Speaker 1: They're they're focused on innovation. Their innovation has not dropped. 132 00:07:16,320 --> 00:07:18,880 Speaker 1: I mean, it's like every other turn we hear some 133 00:07:19,000 --> 00:07:21,960 Speaker 1: legal case. And again this has been across Internet, across 134 00:07:21,960 --> 00:07:23,880 Speaker 1: a lot of tech names. It has not cost them 135 00:07:23,880 --> 00:07:27,400 Speaker 1: any innovation yet and ultimately they broke up pieces of 136 00:07:27,440 --> 00:07:30,520 Speaker 1: the business to be a concern, but so far we 137 00:07:30,600 --> 00:07:33,840 Speaker 1: just haven't seen it. So really, in our opinion, not 138 00:07:33,920 --> 00:07:36,560 Speaker 1: much to say at this point other than it's a 139 00:07:36,600 --> 00:07:39,680 Speaker 1: distraction and their job and they have done this very 140 00:07:39,680 --> 00:07:41,760 Speaker 1: well is kept their eyes on the road and kept focused. 141 00:07:42,920 --> 00:07:45,720 Speaker 1: I'm looking at the share reaction during Tuesday's session with 142 00:07:45,800 --> 00:07:50,520 Speaker 1: down one point seven all told, once the market had closed. 143 00:07:51,000 --> 00:07:53,400 Speaker 1: This is a department the DJ that looked at this 144 00:07:53,600 --> 00:07:55,800 Speaker 1: under the Trump administration, it continues to look at it 145 00:07:55,880 --> 00:07:59,520 Speaker 1: under the Biden administration. When you're an analyst covering this stock, 146 00:08:00,040 --> 00:08:03,920 Speaker 1: how much is the risk of serious action with serious 147 00:08:04,000 --> 00:08:09,320 Speaker 1: results modeled into your price target. It's modeled in because 148 00:08:09,400 --> 00:08:11,880 Speaker 1: you have a multiple that now is training at a 149 00:08:12,000 --> 00:08:15,360 Speaker 1: very big discount. So I don't think anyone that's investing 150 00:08:15,400 --> 00:08:18,160 Speaker 1: the Internet names is investing right now with all the 151 00:08:18,240 --> 00:08:20,800 Speaker 1: understanding that this is an issue. This is an issue 152 00:08:20,840 --> 00:08:23,280 Speaker 1: for Amazon, it's an issue for Microsoft, It's an issue 153 00:08:23,320 --> 00:08:27,119 Speaker 1: for Facebook and Meta UH, it goes across the board. 154 00:08:27,160 --> 00:08:29,720 Speaker 1: So I don't really see an issue that is going 155 00:08:29,800 --> 00:08:33,880 Speaker 1: to create at this point a big concern. And again, 156 00:08:33,920 --> 00:08:38,120 Speaker 1: you've seen Google stock or the last decade, UH continue 157 00:08:38,160 --> 00:08:40,920 Speaker 1: to power higher. So we'll keep an eye on it. 158 00:08:41,240 --> 00:08:43,760 Speaker 1: We're certainly cognizant of it, but but so far, I 159 00:08:43,760 --> 00:08:45,920 Speaker 1: don't think there's enough for us to really hang or 160 00:08:45,960 --> 00:08:48,840 Speaker 1: hat on anything at this point. And the other story 161 00:08:48,880 --> 00:08:51,400 Speaker 1: dominating the headlines is layoffs. You know, we cannot get 162 00:08:51,400 --> 00:08:54,960 Speaker 1: away from alphabet and Google being another company that is 163 00:08:55,080 --> 00:08:58,559 Speaker 1: that is pulling back what surprise Caroline and I with 164 00:08:58,720 --> 00:09:02,040 Speaker 1: some of the specific airs, even off ficial intelligence where 165 00:09:02,040 --> 00:09:05,920 Speaker 1: competition with Microsoft is heating up again. What do you 166 00:09:05,960 --> 00:09:09,200 Speaker 1: think that means for Alphabet's business, the action it's taken 167 00:09:09,200 --> 00:09:12,800 Speaker 1: on headcount reduction. They needed it. They hired, you know, 168 00:09:12,840 --> 00:09:16,280 Speaker 1: in the mid twenty growth rate. So we think this 169 00:09:16,360 --> 00:09:21,280 Speaker 1: is pretty common, Microsoft, Amazon, everyone is taking action the 170 00:09:21,400 --> 00:09:23,679 Speaker 1: environment sloin for tech. They all have to slow their 171 00:09:23,679 --> 00:09:27,000 Speaker 1: head count and they all have to effectively go through 172 00:09:27,040 --> 00:09:30,320 Speaker 1: and really re examine who they've hired and not everyone's 173 00:09:30,360 --> 00:09:33,320 Speaker 1: gonna work in any business, right, So at least five 174 00:09:33,360 --> 00:09:36,120 Speaker 1: percent of this is just removing hires that don't work. 175 00:09:36,400 --> 00:09:40,200 Speaker 1: The other five percent plus is trimming. We're not discounting 176 00:09:40,240 --> 00:09:43,800 Speaker 1: there's going to be potentially more changes to headcount. I 177 00:09:43,840 --> 00:09:46,040 Speaker 1: think that that is a still open and I think 178 00:09:46,240 --> 00:09:49,040 Speaker 1: we we expect more cuts to happen across tech. So 179 00:09:49,120 --> 00:09:51,920 Speaker 1: I think this is the first wave, but I think 180 00:09:51,960 --> 00:09:54,199 Speaker 1: this is very common, and to be honest, I think 181 00:09:54,200 --> 00:09:56,840 Speaker 1: Google should have acted faster than one of the last 182 00:09:56,880 --> 00:10:00,280 Speaker 1: ones to jump in the cost cut pool. Salesforce. You 183 00:10:00,280 --> 00:10:04,640 Speaker 1: go through the list, everyone's really dying they have indeed, 184 00:10:04,760 --> 00:10:07,280 Speaker 1: and we'll still see if Morris to come. Brent, so 185 00:10:07,320 --> 00:10:10,160 Speaker 1: great to have you across these two key stories. Brent Hill, 186 00:10:10,200 --> 00:10:13,320 Speaker 1: he's Jeffrey's analyst. Meanwhile, let's get to another key story. 187 00:10:13,480 --> 00:10:16,800 Speaker 1: Rupert Murdock is scrapping plans for a proposed merger between 188 00:10:16,840 --> 00:10:20,080 Speaker 1: Fox and News Corp. Murdock had, of course sent plans 189 00:10:20,120 --> 00:10:23,040 Speaker 1: to put back together a media empire, then he split 190 00:10:23,120 --> 00:10:25,640 Speaker 1: back in but he indicated that he and his son 191 00:10:25,720 --> 00:10:28,800 Speaker 1: Lachlin have determined that a combination is not optimal for 192 00:10:28,800 --> 00:10:31,120 Speaker 1: the shareholders of Fox and News Corp. At this time. 193 00:10:31,160 --> 00:10:34,080 Speaker 1: The Murdock family, remember, has about thirteen nine voting stake 194 00:10:34,240 --> 00:10:47,920 Speaker 1: in both News Corps and approximately of Fox Bank of America. 195 00:10:48,040 --> 00:10:51,080 Speaker 1: Some stock compensation being announced and for those who are 196 00:10:51,160 --> 00:10:54,720 Speaker 1: earning up to half a million, so five hundred thousand dollars, 197 00:10:54,920 --> 00:10:57,640 Speaker 1: they are now eligible to receive once again a pool 198 00:10:57,679 --> 00:11:02,040 Speaker 1: of restrict restricted stock. This is rewarding basically a majority 199 00:11:02,240 --> 00:11:05,359 Speaker 1: of the entire EMP employee base, which was to about 200 00:11:05,920 --> 00:11:09,440 Speaker 1: who are earning five or below, so still sticking to 201 00:11:09,520 --> 00:11:12,520 Speaker 1: that reward compensation to try and keep their talent, even 202 00:11:12,559 --> 00:11:16,400 Speaker 1: though they saw some downdraft on their revenues of let's 203 00:11:16,400 --> 00:11:19,800 Speaker 1: shift gears, and let's talk about staff and relationships with 204 00:11:19,800 --> 00:11:24,520 Speaker 1: with executives elsewhere. Alphabet apparently is illegally using return to 205 00:11:24,559 --> 00:11:27,680 Speaker 1: office policies as a tool to try to derail YouTube 206 00:11:27,720 --> 00:11:30,800 Speaker 1: contract workers from organizing in Texas, As, all according to 207 00:11:30,840 --> 00:11:33,880 Speaker 1: a complaint filed by the Alphabet Workers Union on Tuesday. 208 00:11:34,120 --> 00:11:37,160 Speaker 1: Bloom Mark Bergen joins us Now for more on this, 209 00:11:37,360 --> 00:11:42,320 Speaker 1: and Mark fascinating that we're seeing this move. Who of 210 00:11:42,520 --> 00:11:45,920 Speaker 1: YouTube are trying to organize? What parts of the business? 211 00:11:45,920 --> 00:11:48,040 Speaker 1: What kind of contract us. Yeah, these are contract workers 212 00:11:48,040 --> 00:11:51,040 Speaker 1: for YouTube Music, which is their Spotify competitor. They're based 213 00:11:51,040 --> 00:11:53,480 Speaker 1: in Texas and they're alleging here of this complaint to 214 00:11:53,520 --> 00:11:56,480 Speaker 1: the Natural Labor Board that as soon as they started 215 00:11:56,520 --> 00:11:59,760 Speaker 1: ramping up their unionization effort, they got calls to come 216 00:11:59,760 --> 00:12:01,800 Speaker 1: back to the office and if they didn't come back 217 00:12:01,840 --> 00:12:05,320 Speaker 1: that they might find themselves determinated as Googles, we remember 218 00:12:05,400 --> 00:12:07,080 Speaker 1: as one of those companies that has this three day 219 00:12:07,080 --> 00:12:10,520 Speaker 1: a week policy, um that they're sort of enforcing. It's 220 00:12:10,640 --> 00:12:13,000 Speaker 1: unclear house strictly they're enforcing it. In this case, it 221 00:12:13,080 --> 00:12:16,400 Speaker 1: seems to be pretty strict. Here in the Bay area. 222 00:12:17,200 --> 00:12:22,360 Speaker 1: Lots of Alphabet employees, lots of Google employees, lots of 223 00:12:22,360 --> 00:12:26,319 Speaker 1: them are contractors. That's what's been surprising, especially in the 224 00:12:26,559 --> 00:12:30,400 Speaker 1: recent headlines around layoffs, that's become a flashpoint for the company. 225 00:12:30,480 --> 00:12:33,840 Speaker 1: Why why is this an issue? It's something that's come 226 00:12:33,920 --> 00:12:36,200 Speaker 1: up in from a lot of their full time employees 227 00:12:36,240 --> 00:12:38,720 Speaker 1: that have complained here that they have this this two 228 00:12:38,760 --> 00:12:40,839 Speaker 1: tier system where their contract workers they don't have the 229 00:12:40,880 --> 00:12:43,560 Speaker 1: same benefits, they don't have the same equity as a 230 00:12:43,600 --> 00:12:46,439 Speaker 1: regular sort of Google engineer might have. You know, this 231 00:12:46,520 --> 00:12:48,599 Speaker 1: is sort of like you were just talking about regulation 232 00:12:48,800 --> 00:12:51,680 Speaker 1: with the big tech companies sort of baked into like you, 233 00:12:51,720 --> 00:12:54,000 Speaker 1: We're seeing this at Apple right with their retail employees, 234 00:12:54,000 --> 00:12:56,959 Speaker 1: were seeing this an Amazon, their warehouse workers, Microsoft their 235 00:12:57,040 --> 00:13:00,520 Speaker 1: video game employees, and then various parts of the Alphabet 236 00:13:00,640 --> 00:13:05,920 Speaker 1: Google empire um have been raising this issue around contract workers. 237 00:13:05,920 --> 00:13:09,520 Speaker 1: In this complaint, they explicitly said, no, Alphabet, you are 238 00:13:09,600 --> 00:13:13,559 Speaker 1: the joint employer as an addition to Cognizant, which is 239 00:13:13,600 --> 00:13:16,480 Speaker 1: the actual employer. That's something that that Google Alphabet has 240 00:13:16,480 --> 00:13:19,360 Speaker 1: actually pushed back on in court filings and said no, no, 241 00:13:19,520 --> 00:13:22,600 Speaker 1: we're not the employer here. This is the contractor to 242 00:13:22,760 --> 00:13:24,800 Speaker 1: the employer. Dig into that a little bit more because 243 00:13:24,840 --> 00:13:28,520 Speaker 1: representatives of both Alphabet and Cognizant didn't immediately re sponsor 244 00:13:28,520 --> 00:13:31,800 Speaker 1: request or comment. But ultimately this is about the contractors 245 00:13:32,160 --> 00:13:35,439 Speaker 1: being employed through Cognizant and Alphabet trying to say that 246 00:13:35,800 --> 00:13:38,080 Speaker 1: we were sort of a step removed here. Yeah, this 247 00:13:38,120 --> 00:13:41,080 Speaker 1: is something I mean, it's not just the tech industry, 248 00:13:41,080 --> 00:13:43,360 Speaker 1: but they've adapted this practice reason in the decades. You 249 00:13:43,360 --> 00:13:45,280 Speaker 1: know'll be interesting to see with the layoffs you're just 250 00:13:45,320 --> 00:13:49,079 Speaker 1: talking about. Uh, it's more like you know, Google YouTube, 251 00:13:49,120 --> 00:13:51,520 Speaker 1: they still want to grow YouTube music, still wants to 252 00:13:51,559 --> 00:13:54,880 Speaker 1: compete with Spotify. They still want hundreds and thousands of 253 00:13:54,880 --> 00:13:57,400 Speaker 1: employees out there that do with these workers in Texas 254 00:13:57,400 --> 00:14:00,000 Speaker 1: to which is actually come through the library to make sure, 255 00:14:00,040 --> 00:14:01,360 Speaker 1: Like that's what I was going to ask you. I mean, 256 00:14:01,520 --> 00:14:05,160 Speaker 1: is there a specific job function that their argument allows 257 00:14:05,200 --> 00:14:08,080 Speaker 1: them to leverage this rule in the return to office argument? 258 00:14:08,200 --> 00:14:10,120 Speaker 1: And what is it that they're doing. Yeah, my understanding 259 00:14:10,120 --> 00:14:12,599 Speaker 1: of these workers, they're not like the content moderators that 260 00:14:12,640 --> 00:14:15,439 Speaker 1: YouTube that will screen for violent footage or child pornography. 261 00:14:15,520 --> 00:14:17,920 Speaker 1: They're actually like looking at, oh this video is the 262 00:14:18,040 --> 00:14:21,040 Speaker 1: music video? This one's not this Mudia music video comes 263 00:14:21,080 --> 00:14:23,440 Speaker 1: up from this label. Right, These are all these kind 264 00:14:23,440 --> 00:14:27,000 Speaker 1: of behind the scenes ghosts in the machine laborers that 265 00:14:27,400 --> 00:14:29,600 Speaker 1: the YouTube relies on. You. My guess is they might 266 00:14:29,600 --> 00:14:32,200 Speaker 1: actually have to rely on these people more now that 267 00:14:32,280 --> 00:14:35,040 Speaker 1: they just cut twelve thousand full time employees. All right, 268 00:14:35,080 --> 00:14:37,160 Speaker 1: Bloomberg's Mark Berg, and thank you very much as you 269 00:14:37,160 --> 00:14:40,320 Speaker 1: want to stick with Alphabet and its research lab deep mind, 270 00:14:40,480 --> 00:14:42,680 Speaker 1: it's taking a hit outside of the U S. The 271 00:14:42,760 --> 00:14:46,600 Speaker 1: AI unit will close it's Edmonton, Alberta outpost and lay 272 00:14:46,600 --> 00:14:49,480 Speaker 1: off some operational staff in the UK as part of 273 00:14:49,520 --> 00:14:52,040 Speaker 1: the tech giants recent effort to cost costs that we've 274 00:14:52,080 --> 00:14:55,120 Speaker 1: just been talking about. Impacted engineers and researchers will be 275 00:14:55,160 --> 00:14:58,600 Speaker 1: offered the option to relocate to other offices for those 276 00:14:58,600 --> 00:15:01,800 Speaker 1: and other roles unfortunate carry will be laid off. Meanwhile, 277 00:15:01,840 --> 00:15:04,800 Speaker 1: coming up, let's flick gears and look at innovation coming 278 00:15:04,840 --> 00:15:07,440 Speaker 1: from Amazon. It's a five dollar a month subscription for 279 00:15:07,520 --> 00:15:11,920 Speaker 1: generic drugs. Latest venture coming from that in commerce giants, Bloomberg. 280 00:15:30,400 --> 00:15:32,440 Speaker 1: So you pay a hundred and thirty nine dollars a 281 00:15:32,480 --> 00:15:34,760 Speaker 1: year for Amazon Prime in the US, would you pay 282 00:15:34,760 --> 00:15:37,880 Speaker 1: another five dollars a month for a drug subscription service 283 00:15:38,000 --> 00:15:41,280 Speaker 1: from Amazon. The e commerce giant has started r x Pass. 284 00:15:41,320 --> 00:15:42,880 Speaker 1: You have to be a Prime member and you can 285 00:15:43,000 --> 00:15:46,080 Speaker 1: order from a menu of fifty three generic medications, which 286 00:15:46,120 --> 00:15:49,440 Speaker 1: Amazon says can treat more than eighty health conditions. R 287 00:15:49,600 --> 00:15:52,040 Speaker 1: x Pass is available in most US states, but if 288 00:15:52,040 --> 00:15:55,200 Speaker 1: you're in California, Pennsylvania, in Texas, you're going to have 289 00:15:55,240 --> 00:15:59,280 Speaker 1: to wait the pitch low priced simple medications on a 290 00:15:59,320 --> 00:16:03,560 Speaker 1: monthly basis, but you can't use government insurance. And it's 291 00:16:03,600 --> 00:16:07,080 Speaker 1: not clear what's new in Amazon subscription offering. The tech 292 00:16:07,120 --> 00:16:11,480 Speaker 1: giants already offered Amazon Pharmacy since where Prime users can 293 00:16:11,520 --> 00:16:15,400 Speaker 1: already pay for subscriptions using their insurance, or you can 294 00:16:15,400 --> 00:16:19,640 Speaker 1: get discounts on medicine if you want to pay cash. 295 00:16:20,680 --> 00:16:23,200 Speaker 1: So this is a Bloomberg story that caughter I on 296 00:16:23,200 --> 00:16:26,480 Speaker 1: Tuesday morning, mostly because I thought i'd heard it before. 297 00:16:26,560 --> 00:16:31,120 Speaker 1: Amazon announced back in Amazon Pharmacy, where you can use 298 00:16:31,160 --> 00:16:33,680 Speaker 1: insurance and if you choose not to pay a bit 299 00:16:33,680 --> 00:16:36,600 Speaker 1: of cash, but you get a big discount on on drugs. 300 00:16:36,600 --> 00:16:38,200 Speaker 1: So this is very similar, but it seems to be 301 00:16:38,240 --> 00:16:40,880 Speaker 1: that subscription part of it, and there was some reaction 302 00:16:40,920 --> 00:16:43,520 Speaker 1: out there today to this news. There was particularly from 303 00:16:43,720 --> 00:16:47,200 Speaker 1: competitors stocks which fell unsurprisingly. Good our X has been 304 00:16:47,240 --> 00:16:49,240 Speaker 1: a company that time and time again, when we've questioned 305 00:16:49,240 --> 00:16:51,920 Speaker 1: the CEO, he said, look, Amazon is not our threat. 306 00:16:51,960 --> 00:16:54,080 Speaker 1: We can be innovative. But now a lot of analysts 307 00:16:54,080 --> 00:16:56,440 Speaker 1: are out there and saying, well, innovate because if you 308 00:16:56,480 --> 00:16:59,760 Speaker 1: think about what Amazon is offering five dollars and months, 309 00:17:00,080 --> 00:17:02,400 Speaker 1: it's not going to compete versus Good or X if 310 00:17:02,440 --> 00:17:04,920 Speaker 1: you're ordering just one drug, but if you if you're 311 00:17:05,119 --> 00:17:08,400 Speaker 1: ordering one to three, five dollars a month is really 312 00:17:08,480 --> 00:17:10,800 Speaker 1: cheap versus what they're going to be. As we said 313 00:17:10,800 --> 00:17:13,159 Speaker 1: in the piece, you can't use government insurance. There was 314 00:17:13,200 --> 00:17:15,600 Speaker 1: another part of that which was interesting. Not available in 315 00:17:15,640 --> 00:17:19,919 Speaker 1: California or Texas, in other ways, the country's most popular states. 316 00:17:19,960 --> 00:17:22,359 Speaker 1: And Amazon actually did not give us an explanation as 317 00:17:22,400 --> 00:17:25,639 Speaker 1: to why, which I thought was interesting. Kind of got 318 00:17:26,119 --> 00:17:27,760 Speaker 1: check it and think there must be to do with 319 00:17:27,960 --> 00:17:31,960 Speaker 1: regulation or signing off, crossing the t s, donning the eyes. 320 00:17:32,000 --> 00:17:34,199 Speaker 1: But overall, this is a company that has time and 321 00:17:34,200 --> 00:17:36,920 Speaker 1: time again focusing on how we can become more addicted 322 00:17:37,000 --> 00:17:40,359 Speaker 1: to prime well seemingly by offering some healthcare that's the 323 00:17:40,400 --> 00:17:51,120 Speaker 1: way to do it. Google has engaged in exclusionary conduct 324 00:17:51,119 --> 00:17:55,679 Speaker 1: just severely weakened, if not destroy competition in the air 325 00:17:55,800 --> 00:17:59,720 Speaker 1: deck industry. As detailed in our complaint. We alleged that 326 00:18:00,160 --> 00:18:04,440 Speaker 1: was an a competitive CONDAC extends to three significant elements 327 00:18:04,560 --> 00:18:10,159 Speaker 1: of the digital ad buying process. US Attorney General Merrit Garland. 328 00:18:10,160 --> 00:18:12,840 Speaker 1: They're speaking at a press conference on Tuesday, so let's 329 00:18:12,840 --> 00:18:14,720 Speaker 1: get right back to that key story of the day, 330 00:18:14,760 --> 00:18:18,280 Speaker 1: the US lawsuit to break up Google's ad unit. Let's 331 00:18:18,320 --> 00:18:20,320 Speaker 1: bring in an expert in the space. David Cohen, CEO 332 00:18:20,359 --> 00:18:23,720 Speaker 1: of the Interactive Advertising Bureau, an organization that develops industry standards, 333 00:18:23,720 --> 00:18:27,400 Speaker 1: conducts research, provides legal support for the online advertising industry. 334 00:18:27,520 --> 00:18:30,600 Speaker 1: Both about seven hundred members in fact, including Google, but 335 00:18:30,640 --> 00:18:34,200 Speaker 1: also Netflix, Twitter, Metas, Spotify, many many more. Just off 336 00:18:34,200 --> 00:18:37,399 Speaker 1: the back of your annual leadership meeting, David, and I 337 00:18:37,400 --> 00:18:40,040 Speaker 1: know you can't speak as if your Google, but tell 338 00:18:40,119 --> 00:18:43,200 Speaker 1: us everyone must have been discussing this from your perspective. 339 00:18:43,440 --> 00:18:47,080 Speaker 1: How does the advertising tech world currently function? Is it 340 00:18:47,800 --> 00:18:50,240 Speaker 1: a competitive space? Well, it's great to be here and 341 00:18:50,280 --> 00:18:52,879 Speaker 1: thank you for the question. We just hosted about twelve 342 00:18:52,960 --> 00:18:57,439 Speaker 1: hundred folks in Marco Island across the digital ecosystem, and 343 00:18:57,480 --> 00:19:01,639 Speaker 1: we had two and a half days of conversation around privacy, 344 00:19:01,760 --> 00:19:06,280 Speaker 1: public policy, address ability, the future of streaming. UM A 345 00:19:06,280 --> 00:19:09,960 Speaker 1: healthy and open and supported ecosystem, I will tell you 346 00:19:10,160 --> 00:19:12,919 Speaker 1: from where we sit UM, and we we kind of 347 00:19:12,960 --> 00:19:16,160 Speaker 1: go out to our membership every year with a a survey. 348 00:19:16,200 --> 00:19:19,840 Speaker 1: There is widespread belief that there is healthy competition. We 349 00:19:19,840 --> 00:19:23,480 Speaker 1: have a very very long tale in the Internet aid ecosystem. 350 00:19:23,560 --> 00:19:27,160 Speaker 1: We have millions of small businesses that rely upon advertising, 351 00:19:27,200 --> 00:19:29,840 Speaker 1: and yes we do have some larger players. But this 352 00:19:29,880 --> 00:19:34,640 Speaker 1: news which actually just wrote today, I certainly did see it. UM. 353 00:19:34,680 --> 00:19:37,639 Speaker 1: We have not dived into it, dove into it in 354 00:19:37,680 --> 00:19:41,160 Speaker 1: any way, just finished our conference about two hours ago, 355 00:19:41,280 --> 00:19:45,159 Speaker 1: but obviously we'll be closely watching. What was interesting is 356 00:19:45,200 --> 00:19:48,080 Speaker 1: that many have used the anecdote that this is like 357 00:19:48,200 --> 00:19:51,840 Speaker 1: City Bank or Goldman owning the New York Stock Exchange. 358 00:19:52,200 --> 00:19:54,560 Speaker 1: How is it different? Can you get us under the 359 00:19:54,600 --> 00:19:58,960 Speaker 1: skin of how the infrastructure that Alphabet owns and operates 360 00:19:59,000 --> 00:20:02,760 Speaker 1: It's different from say a bank owning the Nicely there 361 00:20:02,800 --> 00:20:06,719 Speaker 1: are there are lots of companies that own multiple parts 362 00:20:06,920 --> 00:20:09,800 Speaker 1: of the tech ecosystem, of the supply chain in the 363 00:20:09,880 --> 00:20:14,160 Speaker 1: digital ecosystem and the and the end beneficiary is consumers. 364 00:20:14,840 --> 00:20:19,520 Speaker 1: Consumers like convenience, they're like lower price, they like its supported, 365 00:20:19,600 --> 00:20:24,199 Speaker 1: they like free internet, they like free information, entertainment, communications. 366 00:20:24,560 --> 00:20:27,480 Speaker 1: There are there are lots of examples of this beyond 367 00:20:27,720 --> 00:20:31,040 Speaker 1: just Google. Um, so I'm not sure why it's It's 368 00:20:31,080 --> 00:20:34,880 Speaker 1: not just a Google situation. Folks do play on both 369 00:20:34,880 --> 00:20:37,560 Speaker 1: sides of the equation, and the end recipient of that 370 00:20:37,800 --> 00:20:40,800 Speaker 1: is a consumer winning. Hey, David, Let's let me come 371 00:20:40,800 --> 00:20:45,080 Speaker 1: at it this way. The d J states alleges that 372 00:20:45,240 --> 00:20:48,840 Speaker 1: Alphabet or Google in particular, dominates the market for search, 373 00:20:49,200 --> 00:20:54,440 Speaker 1: but also dominates the market for advertising technology. You lead 374 00:20:54,560 --> 00:20:59,199 Speaker 1: an industry association for advertising. Does Google dominate the market 375 00:20:59,280 --> 00:21:03,640 Speaker 1: for advertising technology? There was a report that recently came 376 00:21:03,640 --> 00:21:05,040 Speaker 1: out I believe it was in the Wall Street Journal 377 00:21:05,040 --> 00:21:10,240 Speaker 1: about a month ago that reported that between Google and Meta, 378 00:21:10,680 --> 00:21:14,480 Speaker 1: they represent less than fifty of the ad supported ecosystem 379 00:21:14,560 --> 00:21:17,359 Speaker 1: in the US. That is a change, that is a 380 00:21:17,520 --> 00:21:22,000 Speaker 1: decrease over time. Are there players that have significant influence 381 00:21:22,040 --> 00:21:26,000 Speaker 1: and significant share? Yes, in lots of cases in the industry, 382 00:21:26,000 --> 00:21:31,200 Speaker 1: whether you talk about detergent chocolate, autos, there are lots 383 00:21:31,200 --> 00:21:35,440 Speaker 1: of examples of leading players that have significant market share. 384 00:21:35,680 --> 00:21:38,520 Speaker 1: I do not think the AD supported ecosystem is any 385 00:21:38,560 --> 00:21:42,320 Speaker 1: different than other categories. Of course, David, you're the Interactive 386 00:21:42,320 --> 00:21:45,399 Speaker 1: Advertising Bureau CEO, and I know one thing top of 387 00:21:45,440 --> 00:21:47,560 Speaker 1: your mind right now is streaming. It was interesting this 388 00:21:47,600 --> 00:21:50,960 Speaker 1: weekend gone actually Lucas Shaw how In l a our 389 00:21:51,000 --> 00:21:54,760 Speaker 1: correspondent covering that industry, interviewed the new CEOs of Netflix, 390 00:21:54,960 --> 00:21:57,919 Speaker 1: and I'm paraphrasing, but they basically said they got to 391 00:21:57,960 --> 00:22:00,520 Speaker 1: an ad supported tier and they got to add tizing 392 00:22:00,760 --> 00:22:03,119 Speaker 1: when they realized they better get moving because of the 393 00:22:03,160 --> 00:22:07,240 Speaker 1: competitive landscape. Where do we stand with the streamers, those 394 00:22:07,320 --> 00:22:11,040 Speaker 1: newer players and those longer legacy players, and how they 395 00:22:11,080 --> 00:22:14,800 Speaker 1: are contributing to that marketplace. It represented a lot of 396 00:22:14,800 --> 00:22:17,399 Speaker 1: our conversation over the past two and f days. In fact, 397 00:22:17,440 --> 00:22:20,879 Speaker 1: we had Jeremy Gorman from Netflix as a speaker on 398 00:22:20,920 --> 00:22:24,040 Speaker 1: the stage. She talked about their UH. They're getting into 399 00:22:24,040 --> 00:22:27,320 Speaker 1: the AD supported streaming space. It's still early days. They 400 00:22:27,359 --> 00:22:30,440 Speaker 1: have a minimum viable product and they're very excited about 401 00:22:30,440 --> 00:22:34,480 Speaker 1: growing that, driving innovation and UH and scale. There is 402 00:22:34,520 --> 00:22:38,000 Speaker 1: absolutely no doubt that we are seeing a very very 403 00:22:38,040 --> 00:22:41,359 Speaker 1: quick shift from linear television to the streaming space, and 404 00:22:41,520 --> 00:22:44,520 Speaker 1: supported streaming is clearly where the action is at, and 405 00:22:44,520 --> 00:22:47,880 Speaker 1: there's obviously lots of competition in that area. We host 406 00:22:47,960 --> 00:22:50,439 Speaker 1: something every year what's called the New Fronts, which is 407 00:22:50,480 --> 00:22:54,040 Speaker 1: basically a celebration of what is the opportunity in the 408 00:22:54,080 --> 00:22:56,760 Speaker 1: streaming space, which is coming up in May for the 409 00:22:56,840 --> 00:23:00,959 Speaker 1: general upfront season when advertisers go to the market and 410 00:23:00,960 --> 00:23:03,640 Speaker 1: buy for the upcoming year, and we'll just the environment. 411 00:23:03,760 --> 00:23:07,119 Speaker 1: Seemed like, David, everyone's been worrying. The earnings are about 412 00:23:07,160 --> 00:23:09,320 Speaker 1: to be upon us, and we're waiting to hear how 413 00:23:09,359 --> 00:23:13,080 Speaker 1: these companies have navigated a slowing advertising environment. Is that 414 00:23:13,080 --> 00:23:15,399 Speaker 1: what people are worrying and seeing in that business? But 415 00:23:15,800 --> 00:23:18,680 Speaker 1: I think that's exactly the right word, is slowing what 416 00:23:18,720 --> 00:23:21,320 Speaker 1: we have seen, and we actually do research on this topic. 417 00:23:21,400 --> 00:23:24,479 Speaker 1: We go out to the market, we interview buyers, and 418 00:23:24,520 --> 00:23:26,560 Speaker 1: we believe that this year will be a growth year 419 00:23:26,760 --> 00:23:30,040 Speaker 1: for the digital environment, but it will be a far 420 00:23:30,160 --> 00:23:34,000 Speaker 1: slower growth here than it has been historically. Overall, we 421 00:23:34,080 --> 00:23:37,520 Speaker 1: see that the advertising space will grow about six percent 422 00:23:37,760 --> 00:23:40,920 Speaker 1: in te and there are areas that will decline linear 423 00:23:41,000 --> 00:23:43,320 Speaker 1: television as an example, and there are areas that will 424 00:23:43,320 --> 00:23:47,840 Speaker 1: grow significantly. CTV we have growing four year on year, 425 00:23:48,040 --> 00:23:49,760 Speaker 1: and once again that is coming off of a year 426 00:23:50,080 --> 00:23:55,200 Speaker 1: of explosive growth in two So a year of growth, 427 00:23:55,200 --> 00:23:58,400 Speaker 1: but a year of slowing growth. A year of growth 428 00:23:58,400 --> 00:24:00,400 Speaker 1: but a year of slowing growth. I think that something 429 00:24:00,400 --> 00:24:03,000 Speaker 1: we've heard time and time again from this industry. Caroline 430 00:24:03,040 --> 00:24:06,800 Speaker 1: David Cohen, CEO of the Interactive Advertising Bureau, thanks for 431 00:24:06,880 --> 00:24:09,320 Speaker 1: joining us hot on the tails of your annual meeting. 432 00:24:09,440 --> 00:24:12,760 Speaker 1: Now onto Elon Musk. Who else? He told a jury 433 00:24:12,920 --> 00:24:15,639 Speaker 1: he was confident he could have pulled off his proposal 434 00:24:16,000 --> 00:24:18,719 Speaker 1: four and a half years ago to take tests the private, 435 00:24:18,840 --> 00:24:22,600 Speaker 1: saying he's never had any trouble raising money for his companies. 436 00:24:22,920 --> 00:24:24,639 Speaker 1: I want to get straight to my colleague over at 437 00:24:24,680 --> 00:24:27,960 Speaker 1: that San Francisco court room, Bloomberg's Malati Nayak, who has 438 00:24:28,000 --> 00:24:31,359 Speaker 1: been covering Musk testimony for the last three days. This 439 00:24:31,520 --> 00:24:34,960 Speaker 1: all about, of course, those tweets in to take test 440 00:24:35,000 --> 00:24:37,879 Speaker 1: the private, Malachi, what was the takeaway from day three? 441 00:24:38,160 --> 00:24:40,800 Speaker 1: So looking at deep Sea, indeed two it was almost 442 00:24:40,800 --> 00:24:43,280 Speaker 1: like a day of two Musks. Yesterday we saw Musk 443 00:24:43,280 --> 00:24:47,240 Speaker 1: whose mumbling looking forwards a judy. We had a very 444 00:24:47,280 --> 00:24:51,640 Speaker 1: confident muskod the stand. You know, he was making very 445 00:24:51,640 --> 00:24:53,879 Speaker 1: good I gonta with the jury. And yesterday he had 446 00:24:53,920 --> 00:24:57,600 Speaker 1: admitted that he didn't get enough sleep, but don uh 447 00:24:57,680 --> 00:25:00,560 Speaker 1: this you know, he probably slept last night it and 448 00:25:00,560 --> 00:25:03,200 Speaker 1: and was back in court today in full form um. 449 00:25:03,280 --> 00:25:07,080 Speaker 1: Some of the takeaways today were Must basically touted to 450 00:25:07,119 --> 00:25:11,600 Speaker 1: the jury his record when it came to UM investing 451 00:25:12,280 --> 00:25:14,720 Speaker 1: raising funds when it comes to investors, and he said 452 00:25:14,760 --> 00:25:18,680 Speaker 1: that he, uh, every financing rep around that he has 453 00:25:18,800 --> 00:25:21,720 Speaker 1: ever had, you know, under his watch, has been oversubscribed. 454 00:25:21,960 --> 00:25:23,879 Speaker 1: He talked about how he had the best record in 455 00:25:23,960 --> 00:25:27,360 Speaker 1: the world perhaps of raising money when it came to investors, 456 00:25:27,400 --> 00:25:29,560 Speaker 1: and he also said that he was always truthful to 457 00:25:29,600 --> 00:25:33,520 Speaker 1: investors and that's why investors would just give him the money. Um. 458 00:25:33,600 --> 00:25:36,320 Speaker 1: And we also had a lot of questioning from his 459 00:25:36,400 --> 00:25:39,600 Speaker 1: own attorney, Alex Biro, so I think he was a 460 00:25:39,600 --> 00:25:42,879 Speaker 1: lot more comfortable. And then we had the attorney from 461 00:25:42,880 --> 00:25:45,600 Speaker 1: the claensive side who tried to sort of land some 462 00:25:45,640 --> 00:25:49,280 Speaker 1: of these gotcha moments, but they didn't quite happen, although 463 00:25:49,320 --> 00:25:53,280 Speaker 1: he did get musked too, uh to say that you know, uh, 464 00:25:53,840 --> 00:25:57,600 Speaker 1: he hadn't previously talked about the space x um you 465 00:25:57,640 --> 00:26:00,679 Speaker 1: know shares, which he said yesterday he would adapting to 466 00:26:00,800 --> 00:26:05,520 Speaker 1: the finance the deal, ultimately taking a step back. Malati, 467 00:26:06,600 --> 00:26:09,520 Speaker 1: Is he doing enough of what's required of him to 468 00:26:09,640 --> 00:26:13,560 Speaker 1: fight off the allegations of the shareholders? Um? I think, 469 00:26:13,600 --> 00:26:17,159 Speaker 1: you know, he came with these good catch phrases talking 470 00:26:17,200 --> 00:26:20,520 Speaker 1: about how he really cares about investors and wanted to 471 00:26:20,520 --> 00:26:25,200 Speaker 1: do right by investors. Uh. He repeated, how you know, um, 472 00:26:25,280 --> 00:26:28,040 Speaker 1: there was an equivocal support from Saudi Arabia and when 473 00:26:28,080 --> 00:26:31,439 Speaker 1: he said finding secured, he actually, you know, believed that 474 00:26:31,720 --> 00:26:34,760 Speaker 1: Saudi Arabia was committed to this deal. UM. So I 475 00:26:34,800 --> 00:26:38,320 Speaker 1: think that you know, he definitely brought his a game today. Um, 476 00:26:38,359 --> 00:26:41,879 Speaker 1: and he definitely sort of you know um um ensured 477 00:26:41,920 --> 00:26:44,680 Speaker 1: that there weren't any punches that landed from the plaintiff's 478 00:26:44,680 --> 00:26:48,040 Speaker 1: attorney except for a few here in there. Malatti, this 479 00:26:48,160 --> 00:26:50,720 Speaker 1: is probably the three days of this trial that everyone 480 00:26:50,840 --> 00:26:54,159 Speaker 1: was most excited about and most tuned into. But we 481 00:26:54,200 --> 00:26:55,920 Speaker 1: have a little way to go, don't we what's left 482 00:26:55,920 --> 00:26:59,960 Speaker 1: in this process, So we have a few more witness 483 00:27:00,119 --> 00:27:01,880 Speaker 1: is lined up and this is a two week trial, 484 00:27:02,040 --> 00:27:04,680 Speaker 1: so things are fluent and in fact that the judge 485 00:27:04,720 --> 00:27:07,840 Speaker 1: was concerned they were running behind schedules. So I'm guessing 486 00:27:07,840 --> 00:27:10,560 Speaker 1: the trial could end around the first week of February, 487 00:27:10,600 --> 00:27:12,560 Speaker 1: and then we'll have to see how long the jury 488 00:27:12,600 --> 00:27:15,879 Speaker 1: takes to uh come out with a verdict on on 489 00:27:16,040 --> 00:27:18,879 Speaker 1: where there must you know, what is thinking was behind 490 00:27:18,920 --> 00:27:22,520 Speaker 1: these tweets? Mala Niack, We thank you so much taking 491 00:27:22,560 --> 00:27:24,840 Speaker 1: time out at that very courtroom to come and speak 492 00:27:24,880 --> 00:27:26,960 Speaker 1: with us. Thank you. Meanwhile, coming up, we've got to 493 00:27:27,000 --> 00:27:30,160 Speaker 1: get into the world of crypto. For example, Celsius might 494 00:27:30,200 --> 00:27:33,000 Speaker 1: create a token of its own to get itself out 495 00:27:33,280 --> 00:27:36,280 Speaker 1: of bankruptcy. What else is happening in the crypto space 496 00:27:36,320 --> 00:27:37,800 Speaker 1: at the moment. We're going to talk about it all 497 00:27:37,840 --> 00:27:41,000 Speaker 1: with Blockchains Associations that Kristen Smith, this is broom back. 498 00:27:57,720 --> 00:28:03,600 Speaker 1: There were clearly interpart transactions and loans that we're not 499 00:28:03,760 --> 00:28:09,080 Speaker 1: well understood by the various stakeholders. Uh, and we'll see 500 00:28:09,080 --> 00:28:11,240 Speaker 1: what the courts have to say about that. So there's 501 00:28:11,520 --> 00:28:15,560 Speaker 1: multiple entities that will likely file suit. The Binklbas brothers 502 00:28:15,600 --> 00:28:19,000 Speaker 1: have said there there's this pending fir Tree has one. 503 00:28:19,080 --> 00:28:24,560 Speaker 1: So we'll see if the court forces disclosure of all 504 00:28:24,600 --> 00:28:30,040 Speaker 1: this and what that means for illegal ramifications. That was Vanek, 505 00:28:30,119 --> 00:28:33,880 Speaker 1: head of diusital Assets, talking about the commingling of crypto 506 00:28:34,000 --> 00:28:38,760 Speaker 1: funds within firms like fd X. Today Tuesday, Bloomberg learned 507 00:28:38,760 --> 00:28:43,720 Speaker 1: Celsius is considering a new token to repay creditors and 508 00:28:43,920 --> 00:28:46,560 Speaker 1: exit bankruptcy. And other headline that's caught my eye on 509 00:28:46,560 --> 00:28:49,240 Speaker 1: the Bloomberg in the last twenty four hours. Binns conceding 510 00:28:49,640 --> 00:28:54,000 Speaker 1: it mistakenly placed user funds with its own reserves. A 511 00:28:54,040 --> 00:28:57,320 Speaker 1: lot to pass over. Let's bring in Kristin Smith, executive 512 00:28:57,360 --> 00:29:01,240 Speaker 1: director the Blockchain Association. I guess it's a group you 513 00:29:01,280 --> 00:29:07,840 Speaker 1: serve as a liaison between policymakers, industry participants. Negative headline 514 00:29:07,880 --> 00:29:12,360 Speaker 1: binance considers well, concedes sorry, using funds mistakenly stalled with 515 00:29:12,440 --> 00:29:17,520 Speaker 1: its reserves, issuing a token to make up to creditors. 516 00:29:18,680 --> 00:29:20,640 Speaker 1: I mean, it's impossible question. What is your reaction to 517 00:29:20,680 --> 00:29:23,479 Speaker 1: all of that continuous negative headlines? I said, yeah, no, listen, 518 00:29:23,560 --> 00:29:27,160 Speaker 1: it's obviously been a challenging year for the crypto industry, 519 00:29:27,200 --> 00:29:30,800 Speaker 1: and we're continuing to see a lot of interesting headlines. 520 00:29:30,880 --> 00:29:33,800 Speaker 1: I think if there's any silver lining to all of this, 521 00:29:33,800 --> 00:29:38,440 Speaker 1: this has been a real educational opportunity, particularly for policymakers 522 00:29:38,480 --> 00:29:40,520 Speaker 1: as they're trying to get up to speed on a 523 00:29:40,680 --> 00:29:44,240 Speaker 1: very complex industry. UM. I do think, you know, when 524 00:29:44,240 --> 00:29:48,200 Speaker 1: we see headlines around finance, I think there's probably deeper 525 00:29:48,240 --> 00:29:50,880 Speaker 1: details um in the backstory. I mean, I you know, 526 00:29:50,920 --> 00:29:53,880 Speaker 1: binance dot com is not a US operated company, but 527 00:29:53,960 --> 00:29:57,880 Speaker 1: it does pose these questions how do users who are 528 00:29:58,320 --> 00:30:02,320 Speaker 1: giving their assets to of a third party know that 529 00:30:02,360 --> 00:30:04,560 Speaker 1: they're actually there? And I think some of the US 530 00:30:04,640 --> 00:30:08,640 Speaker 1: companies have some really innovative proof of reserve systems in 531 00:30:08,760 --> 00:30:11,720 Speaker 1: order to do that. But all of this really gets 532 00:30:11,760 --> 00:30:15,560 Speaker 1: back to a conversation about how do you hold digital assets? Hey, 533 00:30:15,600 --> 00:30:18,200 Speaker 1: how cool you can hold digital assets yourself. You don't 534 00:30:18,200 --> 00:30:19,800 Speaker 1: have to rely on a third party, or if you 535 00:30:19,880 --> 00:30:21,880 Speaker 1: are relying on a third party, how do you know 536 00:30:21,960 --> 00:30:24,560 Speaker 1: they're reliable? And so yeah, we're all thinking of this 537 00:30:24,600 --> 00:30:27,360 Speaker 1: as one big, giant, ongoing teachable moment, and the block 538 00:30:27,440 --> 00:30:31,400 Speaker 1: Tin association teachable moment that continues to kind of confound 539 00:30:31,440 --> 00:30:34,360 Speaker 1: in a maze in some ways of the resolute optimism 540 00:30:34,400 --> 00:30:37,760 Speaker 1: within a space where many here of perhaps the new 541 00:30:37,840 --> 00:30:40,440 Speaker 1: CEO of f t X going through a bankruptcy proceeding 542 00:30:40,640 --> 00:30:43,080 Speaker 1: is then talking about how they could perhaps resuscitate the 543 00:30:43,120 --> 00:30:45,400 Speaker 1: ft X product here in the US, and therefore the 544 00:30:45,440 --> 00:30:49,120 Speaker 1: token link to that. Jumping ahead a few steps, well, 545 00:30:49,440 --> 00:30:53,360 Speaker 1: did you see the reaction rise in ft T tokens 546 00:30:54,560 --> 00:30:59,440 Speaker 1: because of that uplift? Does that signal you know, seeds 547 00:30:59,440 --> 00:31:03,040 Speaker 1: of chain. I'm I'm very skeptical of these tokens that 548 00:31:03,080 --> 00:31:07,880 Speaker 1: are tied to a specific exchange or platform. I think 549 00:31:08,000 --> 00:31:13,760 Speaker 1: real crypto assets operate decentralized crypto networks and they aren't 550 00:31:13,840 --> 00:31:17,920 Speaker 1: tied to the success of any single entity or firm. 551 00:31:18,040 --> 00:31:20,160 Speaker 1: So I think the activity that was happening around the 552 00:31:20,200 --> 00:31:23,000 Speaker 1: f t T token was pure speculation. That's not a 553 00:31:23,000 --> 00:31:26,479 Speaker 1: token that's widely traded in the United States. UM, I 554 00:31:26,520 --> 00:31:29,440 Speaker 1: don't think that that is is necessarily the right answer. 555 00:31:29,480 --> 00:31:32,560 Speaker 1: I think that you know, investors, as they're looking to 556 00:31:32,600 --> 00:31:35,080 Speaker 1: invest in crypto assets really need to do their own 557 00:31:35,080 --> 00:31:39,600 Speaker 1: research and understand what is the underlying network, because the 558 00:31:39,680 --> 00:31:43,000 Speaker 1: crypto industry isn't here to build crypto tokens where the 559 00:31:43,000 --> 00:31:50,000 Speaker 1: price moves up at down centralizednization. The buzzworld because it 560 00:31:50,120 --> 00:31:53,080 Speaker 1: is well, it's it's it's incredibly important, and I think 561 00:31:53,120 --> 00:31:55,600 Speaker 1: there are really strong use cases around it, and and 562 00:31:55,600 --> 00:31:58,160 Speaker 1: and not as strong use cases around it. What we're 563 00:31:58,200 --> 00:32:01,400 Speaker 1: trying to do with crypto networks is find an incentive 564 00:32:01,760 --> 00:32:04,840 Speaker 1: for different parties that don't have any connection to come 565 00:32:04,880 --> 00:32:08,600 Speaker 1: together and operate the infrastructure of a network. And and 566 00:32:08,680 --> 00:32:11,600 Speaker 1: that is something that in order to have that economic incentive, 567 00:32:11,800 --> 00:32:13,960 Speaker 1: you have to have a token. Um, if you're going 568 00:32:14,000 --> 00:32:17,680 Speaker 1: around and tokenizing something related to a specific company, that 569 00:32:17,720 --> 00:32:20,560 Speaker 1: looks a lot more like like a security and and 570 00:32:20,600 --> 00:32:22,720 Speaker 1: sort of misses the point as to why we are 571 00:32:22,800 --> 00:32:28,360 Speaker 1: here building building out crypto networks. All regulators missing the 572 00:32:28,440 --> 00:32:31,280 Speaker 1: point or having to focus more on things they worry 573 00:32:31,280 --> 00:32:34,200 Speaker 1: that are looking like securities. Um, yeah, no, listen, I 574 00:32:34,200 --> 00:32:37,800 Speaker 1: think it depends on the regulator. Um. There, Hester Percy 575 00:32:37,880 --> 00:32:40,200 Speaker 1: yesterday or a couple of days ago, gave a phenomenal 576 00:32:40,280 --> 00:32:42,960 Speaker 1: speech when she truly she's a commissioner at the SEC. 577 00:32:43,360 --> 00:32:47,240 Speaker 1: She absolutely understands the power of decentralization and the need 578 00:32:47,360 --> 00:32:50,840 Speaker 1: to find an appropriate way for this technology to be 579 00:32:51,080 --> 00:32:54,240 Speaker 1: built out. If you look get other parts of government though, um, 580 00:32:54,280 --> 00:32:56,360 Speaker 1: you know, maybe not not so much. I guess that's 581 00:32:56,400 --> 00:32:58,640 Speaker 1: good job security for me. The Blockchain Association, because we 582 00:32:58,640 --> 00:33:01,280 Speaker 1: have never ending education to do of our of our 583 00:33:01,360 --> 00:33:04,000 Speaker 1: nation's policy makers. But um, you know, listen, it's a 584 00:33:04,000 --> 00:33:07,160 Speaker 1: complicated space. There's a lot that's happening really fast. I 585 00:33:07,200 --> 00:33:09,240 Speaker 1: do this all day long, and I can barely keep 586 00:33:09,320 --> 00:33:11,560 Speaker 1: up with all of the developments. So it's hard to 587 00:33:11,600 --> 00:33:14,240 Speaker 1: judge policymakers. But I do think you know, what we 588 00:33:14,280 --> 00:33:16,200 Speaker 1: saw last time we were talking about f t X, 589 00:33:17,200 --> 00:33:21,320 Speaker 1: what that has done has really brought the crypto industry 590 00:33:21,360 --> 00:33:23,800 Speaker 1: to the top of the fold um on every major 591 00:33:23,880 --> 00:33:27,720 Speaker 1: news outlet. And I think that policymakers that before had 592 00:33:27,760 --> 00:33:29,720 Speaker 1: dismissed this as something they didn't need to pay attention 593 00:33:29,760 --> 00:33:31,400 Speaker 1: to do are taking a really hard look. And I 594 00:33:31,440 --> 00:33:33,280 Speaker 1: think we're going to see a lot of discussion and 595 00:33:33,360 --> 00:33:37,040 Speaker 1: debate in the next congress um and through this last 596 00:33:37,040 --> 00:33:39,640 Speaker 1: half of the vidynamics where we have the House Financial 597 00:33:39,680 --> 00:33:44,240 Speaker 1: Services Committee Subcommittee on Digital Assets, Financial Technology and Inclusion. 598 00:33:45,200 --> 00:33:47,320 Speaker 1: You can forgive me for looking down at my screen 599 00:33:47,360 --> 00:33:50,320 Speaker 1: for that one. My My question is actually opposite. When 600 00:33:50,360 --> 00:33:52,920 Speaker 1: does the industry kind of look at itself and say, 601 00:33:53,400 --> 00:33:56,640 Speaker 1: when do we get better at self policing? Yeah, I 602 00:33:56,640 --> 00:33:59,720 Speaker 1: think that's an excellent question, And these are conversations that 603 00:34:00,000 --> 00:34:03,760 Speaker 1: are happening within the crypto industry right now. I mean, 604 00:34:03,760 --> 00:34:07,120 Speaker 1: there is so much transparency as to what's going on 605 00:34:07,160 --> 00:34:10,319 Speaker 1: in the crypto industry because most of this information is 606 00:34:10,400 --> 00:34:13,080 Speaker 1: on the blockchain, and so when you're dealing with these 607 00:34:13,080 --> 00:34:17,040 Speaker 1: decentralized parties, there's a ton of information there. The challenges 608 00:34:17,080 --> 00:34:19,360 Speaker 1: you need to be able to translate that into something 609 00:34:19,400 --> 00:34:21,719 Speaker 1: that's useful, and there are companies out there that help 610 00:34:21,800 --> 00:34:24,680 Speaker 1: do that translation. Um, but what we need to do 611 00:34:24,840 --> 00:34:27,320 Speaker 1: is figure out there are a lot of good practices 612 00:34:27,360 --> 00:34:29,719 Speaker 1: out there that different companies are doing. We need to 613 00:34:29,760 --> 00:34:32,719 Speaker 1: make sure that we're picking the best ones and communicating 614 00:34:32,719 --> 00:34:35,480 Speaker 1: those and sharing those best practices across the industry. So 615 00:34:35,640 --> 00:34:37,120 Speaker 1: I do think we can do a better job, but 616 00:34:37,160 --> 00:34:39,480 Speaker 1: self policing and that is absolutely a focus of the 617 00:34:39,480 --> 00:34:41,520 Speaker 1: industry right now. I'm going to hold onto that world 618 00:34:42,239 --> 00:34:45,799 Speaker 1: useful because when you go to a policy maker and 619 00:34:45,880 --> 00:34:49,160 Speaker 1: say this is the most use case I'm seeing at 620 00:34:49,200 --> 00:34:52,400 Speaker 1: the moment, what is it? What what's actually decentralizing assets 621 00:34:52,400 --> 00:34:53,880 Speaker 1: in a useful amount of right now? Yeah, No, I 622 00:34:53,880 --> 00:34:55,600 Speaker 1: mean I think that's a very good question. I Mean, 623 00:34:55,640 --> 00:34:58,000 Speaker 1: one of my favorite projects, I said on the board 624 00:34:58,000 --> 00:35:00,239 Speaker 1: of their foundation as the file Coin Foundation, and I 625 00:35:00,280 --> 00:35:02,640 Speaker 1: think you know, file coin is trying to do a 626 00:35:02,719 --> 00:35:06,880 Speaker 1: decentralized version of Amazon Web Services so that you know, 627 00:35:06,960 --> 00:35:09,480 Speaker 1: you can hook up servers to the network, you can 628 00:35:10,360 --> 00:35:12,560 Speaker 1: you know, provide that service. If you have storage, you 629 00:35:12,600 --> 00:35:15,320 Speaker 1: could store it in a way that's cheaper and decentralized. 630 00:35:15,320 --> 00:35:18,120 Speaker 1: And so you know that's maybe um not as sexy 631 00:35:18,160 --> 00:35:19,680 Speaker 1: as some of the you know, n f T s 632 00:35:19,760 --> 00:35:21,799 Speaker 1: or things that are out there today, but it's an 633 00:35:21,840 --> 00:35:24,040 Speaker 1: example of one that I think it's very cool and 634 00:35:24,280 --> 00:35:27,720 Speaker 1: we'll build a new infrastructure for the Internet going forward. 635 00:35:27,800 --> 00:35:31,320 Speaker 1: Book Chain Associations executive director Kristen Swith, who are the 636 00:35:31,320 --> 00:35:34,279 Speaker 1: two of us and several sois creates all the conversations 637 00:35:34,320 --> 00:35:45,440 Speaker 1: we've had. Is taken a while. Thank you. Ever thought 638 00:35:45,600 --> 00:35:48,600 Speaker 1: that Tims with lyrics will be quoted by a politicianal 639 00:35:48,680 --> 00:35:51,640 Speaker 1: Capitol Hill? Well Tuesday they were is it hearing to 640 00:35:51,719 --> 00:35:54,719 Speaker 1: try and get to groups? Actually happened? When at all 641 00:35:55,160 --> 00:35:57,000 Speaker 1: you weren't able to get it to get for Wasn't 642 00:35:57,000 --> 00:35:58,680 Speaker 1: that too much demand in front of the system. Was 643 00:35:58,719 --> 00:36:00,880 Speaker 1: it the box was sucking on all the tickets? Or 644 00:36:01,000 --> 00:36:03,600 Speaker 1: is it that there's too much control? I one key 645 00:36:03,640 --> 00:36:07,960 Speaker 1: companies Live Nation. It controls a whole host of live 646 00:36:08,080 --> 00:36:10,920 Speaker 1: venues across the United States, but it also owns ticket Master, 647 00:36:11,160 --> 00:36:12,920 Speaker 1: which is then the only way to get the ticket 648 00:36:13,000 --> 00:36:15,919 Speaker 1: when you're at that particular venue. People say that there's 649 00:36:15,960 --> 00:36:19,080 Speaker 1: not enough competition, seeing CEO out there, seeing the only 650 00:36:19,120 --> 00:36:21,919 Speaker 1: way to drive competition is to break up Live Nation 651 00:36:21,960 --> 00:36:26,120 Speaker 1: and Ticketmaster that came together in this argument keeps coming 652 00:36:26,160 --> 00:36:28,960 Speaker 1: back time and time again. Paul jam made this argument 653 00:36:29,000 --> 00:36:31,000 Speaker 1: back in the nineties. It's been to be visited on 654 00:36:31,080 --> 00:36:34,000 Speaker 1: Capitol Hill, and now the third straight time, they're going 655 00:36:34,000 --> 00:36:36,960 Speaker 1: to digest whether they're really competition would help you get 656 00:36:36,960 --> 00:36:40,320 Speaker 1: your hands and the tickets that you want, heard of 657 00:36:40,400 --> 00:36:44,200 Speaker 1: thought politicians quoting swiftly, not just you. But ultimately this 658 00:36:44,320 --> 00:36:46,800 Speaker 1: is kind of fascinating, isn't it that once again people 659 00:36:46,840 --> 00:36:48,960 Speaker 1: just arguing there is too much consolidation in the space. 660 00:36:49,080 --> 00:36:51,000 Speaker 1: Interesting On a day we were just sort of discussing 661 00:36:51,000 --> 00:36:53,319 Speaker 1: the d o J looking at Google. Everyone's still looking 662 00:36:53,360 --> 00:36:55,160 Speaker 1: at ticket Master. I can find in you. I bought 663 00:36:55,200 --> 00:36:57,520 Speaker 1: some tickets recently. When you start the year, people say 664 00:36:57,520 --> 00:36:59,279 Speaker 1: what I want to go to this year? They're often 665 00:36:59,280 --> 00:37:01,919 Speaker 1: expensive and you look at how you buy them. Well, 666 00:37:01,960 --> 00:37:05,120 Speaker 1: actually it's true. The Bloomberg reporting shows ticket Master is 667 00:37:05,160 --> 00:37:08,600 Speaker 1: often the only option right other than in the secondaries market. 668 00:37:08,880 --> 00:37:10,920 Speaker 1: But it's what people have been talking about on Instagram, 669 00:37:11,120 --> 00:37:13,040 Speaker 1: Twitter and take you to TikTok as well as a 670 00:37:13,120 --> 00:37:15,960 Speaker 1: kind of event about their experiences. But it reminds you 671 00:37:15,960 --> 00:37:18,440 Speaker 1: why do we have oversight, Why do we have this 672 00:37:18,520 --> 00:37:21,520 Speaker 1: discussion on marketplace competition, and why do you have those 673 00:37:21,520 --> 00:37:24,520 Speaker 1: select committees bringing up CEO of Satgeek for example, to 674 00:37:24,560 --> 00:37:26,680 Speaker 1: say the only answer is to split them up. The 675 00:37:26,760 --> 00:37:30,600 Speaker 1: competition is thin. There's a secondary market StubHub. But isn't 676 00:37:30,600 --> 00:37:32,520 Speaker 1: it interesting? On our own Twitter poll, we went to 677 00:37:32,600 --> 00:37:35,399 Speaker 1: you the audience and asked what you thought. Most people said, 678 00:37:35,400 --> 00:37:37,160 Speaker 1: where else am I going to be getting these tickets? 679 00:37:37,200 --> 00:37:39,440 Speaker 1: When it's self Live Nation has more than a hundred 680 00:37:39,560 --> 00:37:42,359 Speaker 1: of these really great places to go and watch music, right, 681 00:37:42,400 --> 00:37:44,719 Speaker 1: And that's the the answer. Where else would I go? 682 00:37:44,760 --> 00:37:46,840 Speaker 1: And it goes back to my point. You start your ego, 683 00:37:46,840 --> 00:37:48,719 Speaker 1: which gig do I want to go to? Which show 684 00:37:48,760 --> 00:37:52,040 Speaker 1: have I dreamed of? You only have one option? Yeah, 685 00:37:52,280 --> 00:37:53,840 Speaker 1: at the moment, where else do I go? As the 686 00:37:53,840 --> 00:37:56,560 Speaker 1: winner on that particular poll, but just it seems to 687 00:37:56,600 --> 00:37:58,959 Speaker 1: be a day here in San Francisco. Or we've talked 688 00:37:59,000 --> 00:38:01,600 Speaker 1: so much about earnings, I've also talked so much about regulation, 689 00:38:01,640 --> 00:38:05,279 Speaker 1: about oversight. It's a real story of Washington meets Silicon Valley. 690 00:38:05,320 --> 00:38:07,880 Speaker 1: Then it never ever goes away. It doesn't and that 691 00:38:07,920 --> 00:38:10,160 Speaker 1: does it for this additional Bloomberg technology. But we never 692 00:38:10,160 --> 00:38:13,520 Speaker 1: go away because Wednesday we have Arkes Pascucchini on the chef. 693 00:38:13,640 --> 00:38:16,880 Speaker 1: Don't forget check out our podcast. I heart Spotify, Apple, 694 00:38:17,000 --> 00:38:19,319 Speaker 1: wherever you get it. This is Bloomberg