Bloomberg Crypto Full Show (10/04/2022)
MATT: LIVE FROM BLOOMBERG WORLD HEADQUARTERS IN NEW YORK, THIS IS BLOOMBERG CRYPTO. >> A LOOK AT THE TECHNOLOGY SHAPING -- MATT: KIM KARDASHIAN WITH A REGULATOR THAT REGULATORS ARE WATCHING. WE WILL TALK WITH CHARLIE COOPER IS THEIR RIGHT TO REGULATE COMES UP. >> AND WE WILL SPEAK TO PAUL COHEN OF NASDAQ ABOUT THE STOCK EXCHANGE FIRST MAJOR PUSH INTO CRYPTO. MATT: PLUS TALES FROM THE CRYPT -- COINED TURNED INTO ZOMBIES IN THE MARKET SLUMP. KAILEY: ALL OF THAT IS AHEAD, BUT WE
WANT TO GET TO SOME MAJOR MARKET NEWS WHICH BROKE IN THE LAST HOUR -- ELON MUSK IS PROPOSING TO PROCEED WITH HIS DEAL TO BUY TWITTER AT THE ORIGINAL OFFER PRICE OF $54.20 A SHARE. WE ARE JOINED BY ED LUDLOW. THEY SPIKED MORE IN THE DIRECTION OF THAT OFFER PRICE ON THE NEWS. ED: ACCORDING TO SOURCES, ELON MUSK SENT A LETTER TO TWITTER PROPOSING THEY PROCEED WITH A $54 WHEN HE CENTS A SHARE OFFER. MUSKA HAS SPENT MONTHS TRYING TO WALK AWAY FROM THIS DEAL.
WE WERE HEADING TOWARD A TRIAL IN DELAWARE IN CHANCELLERY COURT . ON MONDAY OF THIS WEEK, WE UNDERSTAND TWITTER'S CEO WAS DEPOSED AS PART OF THE DISCOVERY PROCESS IN THE LEAD UP TO THAT TRIAL AND MUSK WAS DEPOSED AS PART OF THE DISCOVERY PROCESS. THE MARKET WAS ASSIGNING HIGH PROBABILITY THE JUDGE IN THIS CASE WOULD LIKELY ENFORCE MUSK TO BUY THE COMPANY AT THE ORIGINALLY PROPOSED PRICE. HIS GRIEVANCE WAS THE LEVEL OF
POTS ON THE PLATFORM AND THE WAY -- LEVEL OF BOTS ON THE PLATFORM AND HE WOULD HAVE TO PROVE MATERIAL ADVERSE EFFECTS THAT TWITTER WITHHELD INFORMATION SO SUBSTANTIAL THAT IT WOULD HALTED ENTIRE DEAL. BUT HER IS SUING MUSK TO SAY YOU ARE A BIG BOY, YOU SIGNED A CONTRACT, WE ARE HOLDING YOU TO THE ORIGINAL TERMS OF THE DEAL. AS WE GOT CLOSER TO THE TRIAL, THE MARKETS THAT WE THINK THE DEAL IS GOING TO GO THROUGH. THIS WAS AN UNEXPECTED DEVELOPMENT AND A HUGE SPIKE IN THE STOCK. NOW WE ARE AWAITING MORE NEWS. MATT: THE STOCK IS HALTED, STILL DOWN 18 FOR THAT YEAR. ED LUDLOW THERE WITH THE
DETAILS OF ELON MUSK AGREEING TO BUY TWITTER FOR THE ORIGINAL PRICE OF $54.20. A CLOUD OF REGULATORY UNCERTAINTY CONTINUES TO LOOM OVER THE CRYPTO INDUSTRY BUT CELEBRITIES LOOKING TO MAKE A BUCK SHILLING CURRENCIES GOT A REMINDER REGULATORS ARE WATCHING. KIM KARDASHIAN WILL PAY ALMOST 1.3 MILLION DOLLARS TO SETTLE ALLEGATIONS SHE ILLEGALLY FOUNDED A CRYPTO SECURITY. JOINING US MORE IS A BLOOMBERG CRYPTO REPORTER.
WAS THIS A SURPRISING MOVE FROM THE SEC SHOULD MARK EMILY: DEFINITELY NOT A SURPRISE. THE SEC HAS RAMPED UP ITS ENFORCEMENT ACTIVITY OVER THE LAST YEAR. IT DOUBLED THE SIZE OF ITS CRYPTO UNIT IN MAY.
SO IT'S THE BEST WAY TO GET A MESSAGE OUT THAT TRYING TO SHE'LL CRYPTO COMES WITH CONSEQUENCES. IF THE PRICE OF THAT TOKEN PLUMMETS AFTERWARDS. KAILEY: WE KNOW THAT KIM K IS NOT THE ONLY ONE INVOLVED IN THESE TYPE OF SITUATIONS.
BUT DOES IT MEAN FOR OTHER CELEBRITIES WHO MAY HAVE GOTTEN PAID TO DO SOMETHING SIMILAR? EMILY: IT SENDS A SIGNAL THAT THEY NEED TO BE A LOT MORE CAREFUL IN THE WAY THEY TALK ABOUT CRYPTO. THE IDEA IS WHETHER CRYPTO IS A SECURITY OR NOT IS STILL UNDER DEBATE, BUT IN THE EYES OF THE SEC, IF THE ACCOUNT IS UNDER THAT ALAN'S, THE USE OF THE HASH TAG ADD ON YOUR POST IS NOT ENOUGH. HOW MUCH YOU ARE PAID, DECLARING YOU ARE PAID ONLY TO PROMOTE THAT TOKEN, SO CELEBRITIES ARE BEING PAID FOR INTERACTIONS AS WELL AND THAT WILL BE COMING UNDER SCRUTINY AND THEY WILL PROBABLY BE A LOT MORE WARY. KAILEY:
THANK YOU SO MUCH. AS THE REGULATORY SCRUTINY ON CRYPTO ROSE, WE WERE TOLD LAST WEEK HE'S HOPEFUL ABOUT WHERE THE REGULATORY PROCESS HAS GONE IN THE PROGRESS THAT HAS BEEN MADE SO FAR. >> YOU LOOK AT WHERE WE WERE A YEAR AGO WITH VERY LITTLE GOING ON ON THE REGULATORY SIDE TO TODAY WHERE THERE ARE PROPOSALS TO PROVIDE SPOTS FOR THE CURRENCY ASSETS WHERE THE SEC AND T SEC ARE WORKING ON BILLS. IT IS DIFFERENT.
THERE NEEDS TO BE CLEAR OVERSIGHT TO PROTECT CONSUMERS AND AT THE SAME TIME, BE ABLE TO PROVIDE CLARITY FOR THE INDUSTRY THAT OPERATES AND I THINK WE ARE MAKING A LOT OF PROGRESS ON THOSE ISSUES. KAILEY: JOINING US FOR ANOTHER TAKE ON THIS IS CHARLIE COOPER, FORMER OFFICIAL WHOSE A MANAGER AT ENTERPRISE BLOCKCHAIN FIRM. THANK YOU FOR BEING HERE. WHAT'S YOUR ASSESSMENT OF THE PROGRESS WE'VE MADE ON THE REGULATORY FRONT AND HOW MUCH FURTHER THE U.S. HAVE TO GO? CHARLIE: I THINK SAM SAID IT WELL -- THERE'S A LOT HAPPENING THAT IS ENCOURAGING. YOU ARE SEEING IT NOT JUST IN
THE U.S. BUT EVERYTHING FROM CENTRAL BANK DIGITAL CURRENCIES TO DIGITAL ASSETS, THE ROLE OF STABLECOINS AND ULTIMATELY THE CRYPTO STOCK WHICH GETS A LOT OF PEOPLE EXCITED AND WHAT GOT KIM KARDASHIAN INTO TROUBLE. WHAT I WILL ALSO SAY IS A LOT OF THE WORK GOING ON IN WASHINGTON IS STILL WHAT I WOULD CALL SUGGESTIVE OR RECOMMENDATIONS. A LOT OF WHAT PRESIDENT BIDEN'S TEAM PUT TOGETHER OVER THE LAST SIX MONTHS WERE RESEARCH REPORTS, SUGGESTIONS ABOUT WHAT COULD BE DONE BETTER.
BUT THEY DID NOT ACT IN ANY SPECIFIC WAY TO ISSUE REGULATIONS. ONE INTERESTING THING THEY DID DO IS MADE A CLEAR MESSAGE TO CONGRESS TO TELL THEM TO GET ON THE BALL AND GET ROLLING. THAT WASN'T JUST IDLE RHETORIC. ONE THING WHICH NEED TO LOOK AT REGULATIONS UNDER DODD-FRANK, WHICH IS THAT STOCK IS CONCERNED WITH FINANCIAL STABILITY HAD CERTAIN POWER TO ACT IF CONGRESS DECIDES NOT TO. IF THEY MAKE A DETERMINATION THAT SOME OF THE FIRMS TRADING IN CRYPTO ARE MAKING PAYMENTS IN CRYPTO ARE SYSTEMICALLY IMPORTANT OR ACTING AS FINANCIAL INSTITUTIONS, THEY CAN STEP IN. PART OF WHAT WE SAW THIS WEEK
AND LAST WEEK WAS THE BIDEN ADMINISTRATION TELLING CONGRESS YOU ARE MAKING PROGRESS, WE ARE GLAD TO SEE IT, BUT THERE'S MORE TO BE DONE, DON'T SLOW DOWN. MATT: ONE OF THE MAIN CONCERNS FOR THE BIDEN ADMINISTRATION -- EVERYONE POINT OUT THE MONEY LAUNDERING ISSUE AND THE FRAUD ISSUE, ESPECIALLY AROUND DE-FI. THERE WAS ANOTHER ONE SHOWING ENERGY USAGE IS A PROBLEM. WHAT ARE THEY LOOKING AT? CHARLEY: I THINK THE COMBINATION OF ALL OF WHAT YOU SAID. FIRST AND FOREMOST, THERE'S A CONCERN FOR CONSUMER PROTECTION. A LOT OF WHAT THE AGENCIES ARE WORRIED ABOUT IN THE CASE OF KIM KARDASHIAN IS AVERAGE AMERICANS SITTING OUT THERE TAKING THEIR CUES FROM SOCIAL MEDIA ARE TAKING AN INVESTMENT IN SOMETHING THEY DON'T UNDERSTAND AND LOSING A LOT OF MONEY, IN SOME CASES A SUBSTANTIAL PORTION OF THEIR NETWORK -- OF THEIR NET WORTH.
WHAT GROWING PART OF THE ECONOMY, AT WHAT POINT DOES THIS CRYPTO HE'S BECOME SUCH A LARGE PART OF THE ECONOMY THAT IT POSES A SYSTEMIC RICH -- SYSTEMIC RISK TO IT WE CONSIDER THE TRADITIONAL ECONOMY. THEY WOULD NOT ISSUE THAT REPORT IF THEY DIDN'T SEE THAT COMING. MATT: EVEN AT ITS HEIGHT IT WAS WORTH $2 TRILLION IN MARKET CAP. CHARLEY: THIS IS THE BIDEN ADMINISTRATION GETTING AHEAD OF IT. IT'S NOT THERE YET AND I DON'T THINK THE CRYPTO CRASH POSES A SYSTEMIC CRASH -- SYSTEMIC THREAT, BUT TWO OR THREE OR FOUR YEARS DOWN THE ROAD, IT DOES BECOME A POTENTIAL PROBLEM. THE THIRD PIECE IS
ENVIRONMENTAL CONCERNS. THE AMOUNT OF COMPUTING POWER THAT GOES INTO THESE CURRENCIES AND PROOF OF WORK IS ASTRONOMICAL IN TERMS OF THE DAMAGE IT CAN DO TO THE ENVIRONMENT. THEREFORE A SMALLER ENVIRONMENTAL FOOTPRINT IS VERY MUCH IN LINE WITH THE BIDEN ADMINISTRATION'S EFFORT ON ENVIRONMENTALISM. KAILEY: EITHER MOVING TO PROOF OF STEAK
OR TRYING TO SOLVE THAT PROBLEM. YOU ARE TALKING ABOUT THINGS THAT COULD BE COMING BUT ARE NOT HERE YET. WE HEARD FROM THE DALLAS FED PRESIDENT SPEAKING AT AN EVENT -- TAKE A LISTEN TO WHAT SHE HAD TO SAY. >> IN THE U.S., NO DECISION HAS BEEN MADE TO CREATE A CBD C AND THE FED HAS INDICATED AN ISSUANCE WOULD NEED CLEAR SUPPORT FROM THE EXECUTIVE BRANCH AND CONGRESS.
IT'S IMPORTANT TO ASSESS WHAT BENEFITS IT COULD BRING ABOVE THE BENEFITS OF FASTER PAYMENTS THROUGH VENMO. KAILEY: IT FEELS LIKE THEY ARE IN NOT TOO MUCH OF A RUSH. WHAT HAPPENS IF THE U.S. DRAGS ITS FEET TOO LONG? CHARLEY: YOU ARE RIGHT. THEY ARE NOT IN TOO MUCH OF A RUSH. IT IS A DELAY A PROBLEM FOR
THEM? I WILL TELL YOU THE LONGER THEY WAIT, THE MORE THE MARKET GROWS FOR STABLECOINS. WHEN I TALK ABOUT STABLECOINS, I'M TALKING ABOUT RESERVE BACKED ONES LIKE ALGORITHMIC MODE THAT -- ALGORITHMIC WINDS. DEFINITELY NOT LUNA. [LAUGHTER] THAT COLLAPSE A FEW MONTHS AGO WAS A REMARKABLE REMINDER THAT WHEN SOMEONE TELLS YOU SOMETHING IS ALGORITHMICALLY ACT UP BY CRYPTO AND IS GOING TO BE BACKED UP BY THE DOLLAR, IT'S ABSOLUTELY NOT THE CASE.
ONE OF THE BILLS IS TALKING ABOUT HOW STABLECOINS ARE NOT OK AT LEAST FOR NOW. THE MORE THE FED DELAYS ON CENTRAL BANK DIGITAL CURRENCIES, THE MORE THAT VACUUM WILL BE FILLED BY POTENTIAL STABLECOINS WHICH WILL ALLOW MORE MAIN STREET FINANCE PLAYERS TO GET IN AND OUT OF CRYPTO MARKET IN A MEANINGFUL WAY THAT OTHERWISE THEY WOULD HAVE TO WAIT FOR CENTRAL BANK DIGITAL CURRENCIES WILL STOP THIS DELAY IS MEANINGFUL FOR THE STABLECOIN BUSINESS. MATT: THANK YOU SO MUCH FOR BEING WITH US. REALLY APPRECIATE YOUR TIME. KAILEY: COMING UP, WE ARE GOING TO TALK ABOUT WALL STREET CRYPTO PUSH. MATT: TRAPPED IN ZOMBIE TRADING LIMBO -- WHY OVER THOUSAND DIGITAL COINS MAY BE AS GOOD AS DEAD. KAILEY:
TO ACCESS THE LATEST DATA AND NEWS ON CRYPTO, CHECK OUT THE BLOOMBERG TERMINAL. ALSO YOU CAN CHECK OUT THE PRICING FOR BOTH HER AND TESLA AFTER THE NEWS ELON MUSK IS PROPOSING TO GO AHEAD WITH THE $54.20 DEAL TO BUY TWO PAIR. TWITTER SHARES STILL HOLDING. THEY SPIKED ABOUT HER PERCENT. >> WE THINK BLOCKCHAIN RAILS HAVE A LOT TO OFFER WHEN YOU LOOK AT THE SETTLEMENT ISSUE, WE'VE SEEN IN THE FINANCIAL ECOSYSTEM, I THINK COMBINING TOGETHER A LOT OF THE TECHNOLOGIES FROM CRYPTO'S ECOSYSTEM AND MORE TRADITIONAL FINANCE, WE THINK IT'S A PROMISING FUTURE. KAILEY: THAT WAS SAM BANK BEEN FREED SPEAKING WITH US HERE LAST WEEK.
THERE ARE NOW QUESTIONS LOOMING AROUND HOW BLOCKCHAIN WILL CHANGE THE WAY COMPANIES AND INVESTORS RAISE CAPITAL. YOU ALREADY SEE THE CHANGES BRING IN THE MARKET. BLOOMBERG'S SMELLY BASKET HAS BEEN -- BLOOMBERG'S SONALI BASAK HAS BEEN TRACKING IT. SONALI: CRYPTO MARKETS HAVE FOR YEARS BEEN UTILIZING BLOCKCHAIN TECHNOLOGIES TO RAISE FUNDS OUTSIDE THE TRADITIONAL CAPITAL MARKET. EVEN DURING THE CRYPTO WINTER, WE'VE SEEN INVESTORS FROM BLALOCK AND ENTRIES IN HOROWITZ WHO POURED MONEYS AND -- WHO POURED MONEY INTO FIRMS, THE NFT MARKET IN PARTICULAR.
INVESTMENT IN NFT TRANSACTIONS HAVE TOTALED 1.9 BILLION DOLLARS HERE TODAY. ABOUT HALF A BILLION LESS THAN WHAT WAS RATES LAST YEAR. BUT YOU CAN SEE TRANSACTIONS
HOLDING UP MY HIGHLIGHTING THE PROMISE OF AN FTS IN PARTICULAR AS A VEHICLE. IT STILL A SMALL FRACTION OF THE OVERALL IPO MARKET WHICH HAS SEEN A TERMINUS DOWNTURN THIS YEAR, EVEN WITH LARGE IPOS GRINDING TO A HALT. THE MARKET HAS PRICED IN $70 BILLION WORTH OF DEALS BUT, WITH THAT SAID, HE SEES THE DEAL FOR IT E -- BEING EASIER TO GO PUBLIC. THEY MAKE VIDEO IMPOSSIBLE FOR COMPANIES TO ACCESS THE MARKET, SOMETHING AND FTS AND IPOS COULD SOLVE. BUT TOKENIZATION COULD OFFER MORE LIQUIDITY AND OFFER MORE TO INVESTORS AND INSTITUTIONS. NASDAQ BEING THE LATEST FIRM TO EMBRACE DIGITAL ASSETS. WHAT'S INTERESTING IS HOW A BIG
REGULATED U.S. EXCHANGE KNOWN FOR ITS ABILITY TO ADAPT NEW CAPITAL MARKET TECHNOLOGIES THAT IS RANGE FROM DIRECT LISTING TO SERVICES FOR CRYPTO FIRMS, HOW IT COULD MOLD TO WHAT IS SEEN AS A COMPETITOR TO TRADITIONAL LISTINGS. IT WAS ONLY A COUPLE OF MONTHS AGO THE NASDAQ CEO TOLD ME THAT IT IS POSSIBLE FOR EVERY ASSET ON THE PLANET TO BE DIGITIZED OVER THE COMING DECADES. MATT: THANK YOU SO MUCH.
APPRECIATE THE OVERVIEW. JOINING US NOW IS THE EXECUTIVE VICE PRESIDENT AND HEAD OF NORTH AMERICAN MARKETS AT NASDAQ. RATE TO GET YOU ON THE PROGRAM. LET ME GET AN OVERVIEW OF YOUR AND STARTING WITH CUSTODY -- WHY THEY ARE AND WHAT IS NEXT? >> WE HAVE AN ASPIRATION TO BUILD A WORLD-CLASS DIGITAL ASSET BUSINESS AND WE ARE STARTING WITH CUSTODY BECAUSE WE THINK WE HAVE A REAL ADVANTAGE AND RIGHT TO WIN AROUND CUSTODY BUT WE CAN BE A TRUSTED, MUTUAL INDEPENDENT PROVIDER OF THOSE CAPABILITIES TO INSTITUTIONS. TODAY, INSTITUTIONS, WE NOTED THERE WERE CERTAIN TRADE-OFFS THEY HAVE TO MAKE BETWEEN SECURITY AND ASSET FIRMS. WE
TAKE A LOOK AT IT WITH FRESH EYES, UNDERSTANDING INSTITUTIONAL LEADS AND WHAT WE'VE DONE IS ENSURE WE CAN PROVIDE THE SAME LEVEL OF SECURITY ALL THE TIME WITH A HIGH LEVEL OF ACCESS ALL THE TIME. THAT OPENS US TO A NUMBER OF DIFFERENT CASES FOR INSTITUTIONS AND WHEN YOU ADD OUR HERITAGE IN ADDING SCALABLE SOLUTIONS, THE DOWNTURN IN THE MARKET AND VOLATILITY IN THE MARKET, CUSTOMERS ARE SEEING THE VALUE OF SCALABLE SOLUTIONS AND WE ARE EXCITED ABOUT INSTITUTIONS INTERESTS AND WE THINK IT IS WELL SUITED FOR THE NEEDS WE CURRENTLY HAVE. KAILEY: WHEN COULD WE SEE NASDAQ LAUNCH A CRYPTO EXCHANGE? TAL: TODAY, WE ARE FOCUSED ON OUR COMPANY, THAT IS FOUNDATIONAL. WE START WITH THE FOUNDATIONAL PIECE, WE HAVE EXCUSE AND CAPABILITIES, IT'S NOT JUST A SAFETY THING, IT IS TO TRANSFER THOSE ASSETS WE WANT TO FACILITATE. OVER TIME AS WE HAVE MORE REGULATORY CLARITY, THOSE ARE DISCUSSIONS WE ARE HAPPY TO HAVE.
ON THE RETAIL SIDE, THERE ARE A NUMBER OF EXCHANGES SERVING THE RETAIL CUSTOMER BASE AND WE THINK IT IS JUST MASSIVE ON THE COMPANY SIDE AND EXECUTION SIDE. MATT: NASDAQ AND A LOT OF OTHER FIRMS MAKE MONEY ON THE DATA BUT IN A NEW DECENTRALIZED WORLD, A LOT OF THAT IS GOING TO GO FOR FREE. THERE IS A DECENTRALIZED DATA PROVIDER -- WILL YOU BE SHARING YOUR DATA. DO YOU WANT TO KEEP IT FOR
YOURSELF? TAL: DATA ALWAYS INTERESTS US, BUT FROM THE PERSPECTIVE OF WHERE WE CAN ADD VALUE. THERE'S A LOT OF DATA THE BLOCKCHAIN PROVIDES AND WE LOOK AT OPPORTUNITIES TO PROVIDE DATA PRODUCTS AND OTHER VALUES THAT ENHANCES THE TRANSPARENCY AND THE INTERACTION CUSTOMERS HAVE AT THAT MARKET. OUR ASPIRATIONS ON JUST THE EXECUTION SIDE, THAT'S WHERE OUR FOCUS IS AND WHERE WE THINK WE CAN ADD VALUE AND ACCELERATE INSTITUTIONAL VALUE WHICH FROM OUR PERSPECTIVE HAS STILL BEEN STRONG THROUGH THIS DOWNTURN. KAILEY: AS YOU BUILD THIS OUT, YOU NEED A TEAM.
YOU SET A GOAL OF HIRING 40. WHERE ARE YOU ON THAT JOURNEY AND ARE YOU HAVING DIFFICULTY HAVING INTEREST IN CRYPTO-RELATED JOBS? TAL: NOT REALLY. I THINK THE NASDAQ BRAND IS REALLY STRONG.
I THINK WE HAVE A PRETTY COOL BLANCHE -- PRETTY COOL BRAND. IT WAS NOT HARD TO ATTRACT TALENT, NUMBER ONE. NUMBER TWO, WE HAVE THE MINDSET WE NEVER WANT TO STAY PUT. WE WANT TO PUSH THE ENVELOPE AND WHEN WE DO SO, WORKING CLOSELY WITH REGULATORS DEVELOPING SOLUTIONS FOR THE COMMUNITY. WE'VE ADDED SOMETHING LIKE 10 TO 15 PEOPLE AND WE STARTED WITH NO CODE AND WE ARE REALLY PROUD OF THE TEAM.
WE'VE CONTINUED TO WORK WITH THE LIKES OF NEW YORK AND WE WILL REVIEW IT UNDER A REGULATORY LICENSE. WE ARE EXCITED THAT IT'S THAT KIND OF REACTION TRADITIONAL WALL STREET GAVE US AS WELL AS THE CRYPTO ECONOMY. WE'VE BEEN WARMLY RECEIVED AND ARE EXCITED ABOUT BEING ABLE TO PROVIDE SOLUTIONS. KAILEY: THANK YOU SO MUCH FOR JOINING
US. WE CLEAR WANT TO GET A CHECK ON TWO STOCKS MAKING NEWS TODAY -- ELON MUSK PROPOSING TO TWITTER TO GO AHEAD WITH THE $54.20 A DEAL HE ORIGINALLY OFFERED IN APRIL. PETER SHARES ARE STILL HALTED,
BUT WHEN THEY WERE HALTED, THEY WERE UP ABOUT 13% TOP TESLA SHARES HAVE BASICALLY GIVEN UP ALL THE GAIN THEY HAD SEEN TODAY. ONLY UP ABOUT .3%. MATT: THIS IS BLOOMBERG CRYPTO. I'M MATT MILLER KAILEY LEINZ. ELON MUSK IS AGREEING TO BUY TWITTER FOR THE ORIGINAL OFFER PRICE OF $54.20 A SHARE. THAT POTENTIALLY ENDS ONE OF THE MOST CONTENTIOUS ACQUISITIONS IN RECENT HISTORY. MANDEEP SINGH JOINS US NOW FOR MORE.
WHAT DOES MUSK HAVE TO DO NOW? IF HE AGREES, DOES THE COURT BATTLE GO AWAY? DOES HE HAVE TO PAY UP? DOES HE NEED TO FIND A CLOSING DATA? MANDEEP: YES. IT LOOKS LIKE WE ARE GOING AHEAD WITH THE ORIGINAL TERMS OF $44 BILLION, THE TAKEOVER PRICE THAT WAS AGREED UPON. SEEMS LIKE THEY ARE GOING TO MOVE QUICKLY FROM THIS POINT ON.
THE QUESTION IS WHAT ARE THEY GOING TO DO ONCE THE COMPANY IS PRIVATE? WE KNOW THE TOP LINE HAS DECELERATED AND HE HAS TALKED ABOUT BOTS AND SUBSCRIPTIONS. THE FIRST THING IS HE HAS TO FIND SOMEONE FROM THE RANKS TO RUN THE COMPANY. MOST LIKELY HE'S NOT GOING TO DO IT HIMSELF. KAILEY: OBVIOUSLY HE ALREADY RUNS OTHER COMPANIES, ONE OF THEM BEING TESLA. WHAT DOES THIS MEAN FOR TESLA? MANDEEP: THE GOOD THING, I THINK WHAT HAS HAPPENED OVER THE LAST FREE MONTHS IS THE SENTIMENT AROUND TESLA SEEMS TO BE GETTING BETTER AND BETTER IN TERMS OF WHAT TESLA COULD DO ON THE AUTONOMY SIDE. OVERALL, THAT HAS MADE IT EASY FOR HIM TO FINANCE THE TRANSACTION AND SELL HIS STOCK TO MAKE UP FOR THE LEFTOVER AMOUNT, WE ESTIMATE AROUND $10 BILLION.
HE HAS ALREADY SOLD A LOT OF HIS STOCK SINCE THAT THREE MONTHS, SO CLEARLY I THINK THAT HAS HELPED HIM FEEL COMFORTABLE WITH THAT $44 BILLION PRICE TAG. NOW THAT HE HAS THE MONEY, HE CAN CLOSE IT OUT. KAILEY: WE HAVE SEEN TESLA SHARES REACTING BIG-TIME -- THEY WERE UP AT ONE POINT IN THE SESSION AND NOW UP ONLY ABOUT .4% TOP THANK YOU VERY MUCH. MATT: TWITTER IS STILL HALTED. GAIN OF ABOUT 13%. IT HAD BEEN UP ABOUT 18%. WE ARE WAITING FOR THE STOCK TO
TRADE AGAIN.
2022-10-06 20:15
