Micron Falls on Earnings and SpaceX Nabs a $210B Valuation | Bloomberg Technology
>> FROM THE HEART OF HER INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY," WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: TIME CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW AND SAN FRANCISCO. "BLOOMBERG TECHNOLOGY THIS IS"BLOOMBERG TECHNOLOGY."
CAROLINE: MICRON FALLS AS THE FORECAST --FULL COVERAGE IS AHEAD. ED: SPACEX NOT IS A $210 BILLION VALUATION IN ITS LATEST TENDER OFFER. CAROLINE: WE GO LIVE TO SANTA ANA, CALIFORNIA AS POLICE RADIO WAREHOUSE SUSPECTING -- RAID A WAREHOUSE WITH MERCHANDISING HEADING FOR PLACES LIKE AMAZON. FIRST, WE CHECK IN ON THE MARKETS. A LITTLE REPRIEVE TO SOME
SELLING WE SAW EARLIER IN THE TRADING. THE BAD NEWS IS GOOD NEWS ON THE MACRO FRONT. SOME OF THE JOBLESS CLAIMS DATA AND THE HOUSING SALES DATA AND THE INDUSTRIAL PRODUCTION DATA EAWEAKER. ALL EYES ARE ON MACRO POLICY. WE ARE UP 13 POINTS ON THE NASDAQ. I'M LOOKING AT THE TEN-YEAR YIELD. MONEY MOVING INTO THE MARKET ON
THE BACK OF THAT DATA AND MORE SUPPLY COMING FROM THAT SEVEN-YEAR SIDE OF THINGS. I'M LOOKING AT THE DOLLAR DOWN VERSUS THE JAPANESE YEN. WE HAVE SEEN SUCH WEAKNESS. WILL WE SEE INTERVENTION FROM THE BOJ? WE ARE CURRENTLY TRADED AT 160. LET'S LOOK AT THE WORLD OF
BITCOIN. WE ARE AT ABOUT A $61,000 HANDLE. WE HAVE SEEN SIGNIFICANT SELLING GOING ON BUT FOR NOW WE ARE UP MORE THAN A PERCENTAGE POINT. A LITTLE BIT OF A RISK APPETITE COMING INTO CRYPTO. ED: I WILL GO RIGHT TO PRIVATE MARKETS AND START WITH HIS BIG STORY AROUND SPACE X. A VALUATION OF $210 BILLION. THAT'S BASED ON THE LATEST TENDER.
A TENDER IS WHERE THE COMPANY BASICALLY LETS EMPLOYEES AND INSIDERS SELL THEIR SHARES TO INVESTORS FOR LIQUIDITY. BECAUSE HE WAS ON A PRICE TO THE SHARES, YOU'RE ABLE TO ESTABLISH A VALUATION. THIS IS A CUSTOM CHART ON THE BLOOMBERG TERMINAL. WE MAKE IT USING THE BLOOMBERG NEWS REPORTS GOING BACK MANY QUARTERS AND YEARS BUT THE LATEST DATA FROM PITCH BOOK. 180 BILLION DOLLARS WAS THE VALUATION WE REPORTED IN DECEMBER OF LAST YEAR. WE ARE UP TO $210 BILLION. LATER WE WILL GO TO KATIE RUTH
WHO HELPED BREAK THE STORY. THERE IS SO MUCH TO DISCUSS AROUND THIS COMPANY BUT ALSO THE IDEA THAT IF YOU'RE A MASSIVE GROWTH STAGE NAME, WHY GO PUBLIC? PRIVATE MARKETS ARE THERE TO SUPPORT YOU. MICRON IS THE BIG EARNINGS STORY. THEY GAVE THIS SALES FORECAST. AT THE MIDPOINT WAS BANG ON
WHAT THE STREET WAS LOOKING FOR. REALLY HIGH EXPECTATIONS. THERE'S A STORY ABOUT HIGH-BANDWIDTH MEMORY. IT GETS COUPLED WITH AI ACCELERATORS LIKE NVIDIA'S PAGE 200. -- H200. WHY IS MICRON NOT DOING WELL? IT'S LEGACY BUSINESSES.
FLASH MEMORY AND THE CYCLICAL MARKETS THEY GO INTO. THE STOCK IS DOWN 6% IN THE SESSION RIGHT NOW. CAROLINE: WHAT IS A CEO TO DO WHEN THEY'RE POSTING REVENUE GROWTH OF MORE THAN 80%? LET'S DWELL ON THAT FOR A MOMENT. A CLOSER LOOK AFTER THE EARNINGS REPORT.
THE FOLLOW-UP FOR NVIDIA IS CURRENTLY DIGESTING. THAT MEETING HAPPENED ON WEDNESDAY. IAN KING, GO TO MICRON FIRST. IT FEELS AS THOUGH THEY COULD NOT MEET THE HIGHEST MARK OUT THERE FOR THE ESTIMATES. IAN:
YOU ARE ABSOLUTELY RIGHT. THEY ARE PREDICTING REVENUE WILL BE UP 90% FROM WHERE IT WAS A YEAR AGO, ALBEIT THAT'S EASY GIVEN HOW BAD LAST YEAR WAS. IT'S ALL ABOUT HOW MUCH REAL DEMAND ARE YOU GETTING FROM AI? HOW MUCH OF THAT HIGH-MARGIN PRODUCT ADDS -- ED'S FAVORITE MEMORY CHIP ARE YOU SHIFTING AND MAKING MONEY FROM? ED: THANK YOU FOR THAT. I CONVINCED YOU TO MAKE THE VIDEO WE MADE ABOUT HIGH-BANDWIDTH. IOU. -- I OWE YOU. WE KNOW IT SALES ARE IN THE
QUARTER GONE AND THE CURRENT PERIOD AND THE NEXT FISCAL YEAR. YOU CAN SEE A CLEAR PATH. AS THE INVESTMENT IN AI INFRASTRUCTURE RAMPS UP, SO TO SALE OF HIGH-BANDWIDTH MEMORY. IAN: ABSOLUTELY. 100 MILLION DOLLARS, WHICH IS
RELATIVELY SMALL FOR THE QUARTER REPORTED. GOING TO MULTIPLE HUNDREDS OF MILLIONS OF DOLLARS AND MULTIPLE BILLIONS NEXT YEAR. WHEN YOUR COMPANY THAT HAS ABOUT $6 BILLION OF SALES A QUARTER THAT'S A GOOD SIGN. A VERY GOOD SIGN. CAROLINE: ALL OF THIS IS IN COMPARISON TO WHAT NVIDIA HAS BEEN TURNING OUT. I'M LOOKING AT NVIDIA DOWN 1.7%. IT'S BEEN VOLATILE. WHAT HAPPENED AT THE AGM YESTERDAY? IAN: WE ARE NOT ALLOWED TO CALL IT AN AGM. THAT'S AN ENGLISH THING.
THEY REALLY CAME OUT AND REITERATED THIS PITCH THEY HAVE GIVEN US. THIS NEW INDUSTRIAL REVOLUTION. THE PRODUCTS ARE BECOMING MORE VITAL TO THIS GIANT CHANGE IN THE ECONOMY. WE DID NOT GET ANYTHING NEW. IF THERE WAS AN X VACATION THAT JENSEN WOULD POP OUT NEW -- EXPECTATION THAT JENSEN WOULD POP OUT NEW NUMBERS, IT WAS HIM BEATING HIS FIST AGAINST HIS CHEST AND SAYING LOOK HOW WELL DONE. ED: IT WAS A MOST VERBATIM WHAT THEY SAID IN MAY ABOUT EARNINGS AND DEBT.
EVEN SO, THERE IS SO MUCH ATTENTION ON NVIDIA NOW. IAN KING, THANK YOU SO MUCH. LET'S GET MORE ON BIG TECH. THE NET SELLING IN THE TECH SECTOR HAS BEEN THE LARGEST ON RECORD SINCE 2017. HEDGE FUNDS AGGRESSIVELY SELLING TECH STOCKS AFTER THE RISE OF NVIDIA. JESS MENTON JOINS US NOW FOR MORE. THE MARKETS ARE FUNNY THING AND I DON'T WANT TO SAY FICKLE.
I REMEMBER YOU COMING ON THE SHOW MONTHS AGO AND TALKING ABOUT THIS FOMO TRADED THE BEGINNING THE YEAR. NOW WE HAVE THE NEXT SELLING. EXPLAIN WHAT THE MARKETS ARE DOING NOW. JESS: HOW CAN YOU HAVE THIS NET SELLING IN HEDGE FUNDS BUT JUST LAST WEEK WE HAD THE BANK OF AMERICA EPF ARE DATA SHOWING WE HAD RECORD FLOWS GOING INTO TECHNOLOGY STOCKS? IF YOU LOOK AT A PIE CHART WHEN IT COMES TO THE FLOWS DATA, IT'S ONLY ROUGHLY AROUND 20%.
YOU CAN HAVE THOSE RECORD INFLOWS BUT THE OTHER PORTION IF YOU'RE LOOKING AT 70%, THAT COMPOSITES OF HEDGE FUNDS INSURERS, PENSIONS. YOU CAN HAVE BOTH HAPPENING BUT HAS CONTRIBUTE A BIGGER PORTION TO THAT. YOU CAN HAVE MUTUAL FUNDS HAVING THAT RECORD EXPOSURE BUT HEDGE FUNDS DOING SOMETHING ELSE. IT'S NOT JUST TECHNOLOGY. IT'S MORE GEARED TOWARDS CHIP STOCKS. CAROLINE: MAYBE HEDGE FUNDS ARE GETTING MORE RISK-AVERSE MORE BROADLY. THEY ARE COMING OUT OF MOMENTUM. IS THE HEDGE FUND TRYING TO BE
THE CANARY IN THE COAL MINE? RETAIL IS POURING IN, MUTUALS ARE POURING IN AND WE ARE STARTING TO GET OUT NOW. JESS: NORMALLY IF YOU LOOK AT RETAIL IS DOING IT'S A BIT OF A CONTRARIAN INDICATOR TO YOUR POINT. IF THERE PILING IT IN HEDGE FUNDS, THE SMART TYPE OF MONEY AND HOW THEY ARE POSITIONING, THAT SHOWS YOU THEY ARE MOVING TOWARDS DEFENSIVE AREAS OF THE MARKET BUT ALSO A PART OF THAT IS UTILITIES. THAT HAS BEEN IN AI TYPE OF PLAY. USUALLY IS TYPICALLY THOUGHT OF AS LESS VOLATILE IN A SLOWER ECONOMIC REGIME.
THE ECONOMY HAS BEEN HOLDING UP WELL. THE LATEST FED GDP NUMBERS FOR THE SECOND QUARTER AROUND 3%. YOU ARE SEEING HEDGE FUNDS PULLING OUT WHEN IT COMES TO THOSE CHIP AND TECHNOLOGY TYPE SHARES. EVEN THOUGH IT IS MORE DEFENSIVE, THEY ARE GOING TO OTHER AI PLAYS, INCLUDING UTILITY STOCKS. ED: I GET THE CONCERN OVER HOW LONG A RALLY IN A PARTICULAR SECTOR NAME A LAST. I HAVE TO REMIND MYSELF OF THE INCREDIBLE GAINS
EITHER IN A YEAR-TO-DATE BASIS, 12-MONTH BASIS. AT SOME POINT YOU HAVE TO SAY THE GOING HAS BEEN GOOD BUT IT MIGHT NOT LAST THAT LONG. JESS: I FEEL LIKE WE WERE TALKING ABOUT THIS A YEAR AGO AFTER A RECORD FIRST HALF WE WERE LOOKING AT FOR THE S&P 500 AND NASDAQ 100. HOW MUCH LONGER CAN I CONTINUE? GINA MARTIN ADAMS HAD SOME REALLY GREAT DATA LOOKING AT BREADTH. THE DATA SHOWED THEY COULD CONTINUE FOR A WHILE AND IT HAS.
THEY PUT OUT DATA SHOWING ANY TIME SOME THING LIKE THIS HAPPENS PEOPLE LIKE TO TALK ABOUT BUBBLE BEHAVIOR. THEY ARE NOT SEEING THAT. IF YOU'RE LOOKING AT THE STOCKS, THE PHILADELPHIA SEMICONDUCTOR INDEX, IT'S TRADING AT ITS ALL-TIME HIGHS AT EVEN HIGHER THAN ABOUT THAT IN MARCH OF 2000.
SOMETIMES WE TALK TO SOURCES AND MAYBE THINGS HAVE GOTTEN A BIT AHEAD OF THEMSELVES. EVEN THOUGH PEOPLE TALKED ABOUT NVIDIA RECENTLY ENTERING A CORRECTION OFF OF 10% OFF THE MOST RECENT HIGH, IT WAS TRADING AROUND $550 IN THE MIDDLE OF JANUARY. THE STOCK SPLIT. IT'S BEEN QUITE A TEAR. SOMETIMES IF YOU BRING UP THE CORRECTION AND TALLY WITH NVIDIA SOMETIMES YOU WILL GET SOME I RULES FROM TRADERS. CAROLINE:
STEVE EISMAN CALLING IT JUST A BLIP. COMING UP, PRIVATE MARKETS. SPACE X NOTCHING THE $210 BILLION VALUATION IN HIS LATEST OFFER. THAT IS MORE OF DISNEY'S MARKET CAP. ED: I GOT BACK FROM VACA. T-MOBILE IS MY CARRIER. IT WORKED FINE. VERIZON AND AT&T, A LOT OF COMPLAINTS ABOUT THE SERVICE NOT WORKING OVERSEAS OR BROAD. THERE ARE SERVICE DISRUPTIONS
IF YOUR COMPANY -- CUSTOMER OF THOSE NETWORKS. JULIAN TAN HAS THAT STORY ON THE BLOOMBERG. VERIZON DOWN .7%. AT&T DOWN .3%. THERE IS CONCERN IF YOU LEAVE THE COUNTRY YOU WILL NOT BE ABLE TO GET YOUR DATA OR MAKE YOUR TEXTS. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: LET'S TALK PRIVATE MARKETS. SOFTBANK'S VISION FUND IS INVESTING IN PERPLEXITY AI. THEY ARE INVESTING BETWEEN $10 MILLION AND $20 MILLION INTO THE STARTUP. THAT'S PART OF A LARGER $250 MILLION FUNDING ROUND THAT SHUFFLES PERPLEXITY'S VALUATION TO $3 BILLION, MAKING IT ONE OF THE MOST HIGHLY VALUED COMPANIES IN THE INDUSTRY. SPACEX, IT IS NOTCHING A $210 BILLION VALUATION AS ARE SELLING SHARES AT $212 APIECE. IT BOOSTS THE VALUE OF THE
SPACE AND SELECT COMPANY FROM $180 BILLION BACK IN DECEMBER, MAKING IT THE SECOND WAS VALUABLE STARTUP IN THE WORLD. JOINING US IS KATIE RUTH. IT IS THE MOST VALUABLE IN THE U.S. EVER. KATIE: BYTEDANCE IS THE MOST VALUABLE
IN THE WORLD BUT FOR THE U.S., SPACEX SURPASSES ITS OWN RECORD. IT'S AT 210 BILLION DOLLARS, UP FROM 100 DOLLARS IN DECEMBER. ED: THERE IS SUCH INTENSE INTEREST IN SPACEX AND GETTING A PIECE OF IT. IT IS WORTHWHILE FOR OUR BLOOMBERG TECHNOLOGY AUDIENCE AROUND THE WORLD, EXPLAIN THE MECHANICS OF HOW THE TENDER OFFER WORKS. WHY US LEARNING FROM SOURCES THE SHARE PRICE IS IMPORTANT IN THE MATH. KATIE: THAT IS INSIDERS LIKE EMPLOYEES SELLING THEIR SHARES TO OTHER PRIVATE INVESTORS.
THE TENDER OFFER IS DIFFERENT THAN SECONDARY WHERE PEOPLE ARE DOING ONE-OFF TRADES. IT'S MORE MEANINGFUL BECAUSE IT MEANS THE COMPANY SIGNED OFF ON THIS VALUATION AND THEY ARE DOING A LARGE TRANSACTION WORTH HUNDREDS OF MILLIONS OF DOLLARS OF SHARES. HUNDREDS OF MILLION OF DOLLARS TRADE HANDS. THIS IS MEANINGFUL FOR SILICON VALLEY WHEN THEY ARE LOOKING AT PRICES AND SEEING COMPANIES CAN STILL RAISE HIGH PRICES RIGHT NOW EVEN IF THEY'RE NOT AI. IT SURPASSES SPACEX'S OWN
RECORD. ED: KATIE ROOF, LATE-NIGHT BUT IMPORTANT REPORTING FROM YOU. YEAH, I SAW THIS COMING A LITTLE BIT. ANOTHER STORY WE ARE WATCHING HIS SHARES OF AMAZON NOW AS IT PLANS TO LAUNCH AN ONLINE STOREFRONT FOR LOW-PRICED APPAREL AND HOME GOODS, MARKING THE COMPANY'S BIGGEST PUSH THE COUNTER THE RISE OF DISCOUNT COMPETITORS LIKE TIMU. THE PLANS OUTLINED IN SLIDES POSTED TO ITS WEBSITE FOR THIRD-PARTY CHINESE SELLERS SHOWING AMAZON SHIPPING GOODS DIRECTLY TO CUSTOMERS FROM CHINA.
BREAKING NEWS JUST MOMENTS AGO. CALIFORNIA POLICE HAVE RATED A SOUTHERN CALIFORNIA WAREHOUSE FILLED WITH ALLEGEDLY STOLEN MERCHANDISE THEY SAY LIKELY WOULD HAVE ENDED UP ON ONLINE MARKETPLACES RUN BY AMAZON AND OTHER RETAILERS. BLOOMBERG'S SPENCER SOFA ON THE GROUND WITH LOWER ENFORCEMENT . GIVE US THE BASICS OF WHERE YOU ARE AND WHAT HAS HAPPENED. SPENCER: WE ARE IN SANTA ANA, CALIFORNIA JUST OFF INTERSTATE FIVE IN A WAREHOUSE THAT'S A RETAIL LIQUIDATION CENTER. IT COULD BE LEGITIMATE BUSINESSES THAT GET SCRATCHED AND DENTED MERCHANDISE AND RETURNS AND THEN THEY GO ABOUT SELLING IT.
THIS RAID THAT HAPPENED AN HOUR AGO, CALIFORNIA HIGHWAY PATROL CARGO THEFT DIVISION HAD INFORMATION THERE COULD BE STOLEN MERCHANDISE INSIDE. THEY EXECUTED A SEARCH WARRANT THIS MORNING. WE HAD ABOUT A DOZEN OFFICERS SWARMED THE SCENE. THEY SECURE THE FACILITY. THEY ARE GOING THROUGH A PORTERHOUSE.
THERE ARE BOXES FROM FLOOR-TO-CEILING OF ALL KINDS OF STUFF. VACUUM CLEANERS, PET FOOD, AIR FRYERS, ALL KIND OF THINGS YOU CAN IMAGINE. THEY ARE TRYING TO SIFT THROUGH THAT STUFF TO DETERMINE IF ANYTHING HAS BEEN STOLEN AND IF THEY CAN TRACE IT BACK TO PREVIOUS THEFT. CAROLINE: THIS IS A BIG OPERATION.
THEY HAVE YOU ON BOARD TO WITNESS IT. THIS IS CLEARLY IMPORTANT TO THEM. HOW ECONOMICALLY IMPORTANT IS IT TO COMPANIES THAT ARE LOSING THEIR GOODS LIKE THIS? SPENCER: THAT'S A GREAT QUESTION. EVERYONE IS FAMILIAR WITH SHOPLIFTING. YOU SEE CELLPHONE VIDEO'S OF PEOPLE LOADING UP A SHOPPING CART FULL OF STUFF AND RUNNING OUT THE STORE. THIS IS FAR MORE SERIOUS AND MORE SOPHISTICATED.
THEY ARE STEALING ENTIRE CARGO CONTAINERS. ONE HALL COULD BE A COUPLE HUNDRED THOUSAND TO UP TO $20 MILLION OF CARGO. THE LOSSES GET VERY HIGH VERY QUICKLY. IT'S BEEN ON THE RISE. THE NUMBER OF CARGO THEFT REPORTED IN THE U.S. IN THE FIRST QUARTER OF THIS YEAR WERE NEARLY 1000. THAT WAS UP MOST 50% FROM A
YEAR EARLIER. IT'S BEEN GOING UP WITH NO END IN SIGHT. THE THIEVES ARE GETTING SOPHISTICATED. THEY ARE IMPERSONATING LEGITIMATE TRUCKING COMPANIES. GOING TO WAREHOUSES TO PICK UP ENTIRE TRUCKLOADS OF INVENTORY. THEY ARE SUPPOSED TO BE THE ONES PICKING IT UP AND TAKING OFF WITH IT.
THEN A DELIVERY IS NEVER MADE OR SUPPOSED TO BE AND THAT'S WHEN DID DISCOVER THE THEFT WAS MADE DAYS LATER. IT'S A REALLY BIG PROBLEM THAT INFLICT A LOT OF DAMAGE. ED: SPENCER SOFA I -- SOPPA ACCOMPANIED LAW ENFORCEMENT WHERE THEY SEIZED ALLEGEDLY STOLEN MERCHANDISE BOUND FOR AMAZON. THAT IS A FIRST FOR THIS PROGRAM, I THINK, AND PROBABLY THIS NETWORK. COMING UP, WE ARE JOINED BY JEFF THOMAS, EXECUTIVE VICE PRESIDENT OF NASDAQ'S CORPORATE PLATFORM BUSINESS ON THE IPO LANDSCAPE.
WE WILL BE RIGHT BACK. THIS IS "BLOOMBERG TECHNOLOGY." ED: TIME FOR TALKING TECH. OPENAI MAKES A DEAL WITH TIME, THE MAKER OF CHATGPT AS PART OF THE MAGAZINE AND A MULTIYEAR AGREEMENT THAT WOULD ALLOW ACCESS TO CURRENT AND HISTORICAL CONTENT. IN RETURN, CHATGPT USER QUERIES WILL LINK ANSWERS BACK TO THE ORIGINAL SOURCE ON TIME.COM. TIME WILL HAVE ACCESS TO OPENAI'S TECH. THE U.S., JAPAN AND SOUTH KOREA MAKE A PLACE FOR STRONGER TECH
RELATIONS. THEY SAY THEY WILL WORK CLOSELY ON BUILDING UP MORE RESILIENT SUPPLY CHAINS TO ADDRESS WEAKNESSES IN KEY TECH SECTORS LIKE SEMICONDUCTORS AND AI. IT COMES AMID RAPID EXPANSION OF COMPETITION FROM CHINA AND THE CHIP SECTOR. WE BTOON COMICS SOLD 15 MILLION SHARES AFTER MARKETING THEM FOR 18 DOLLARS TO $21 EACH. WEBTOON HAS A MARKET VALUE OF ABOUT $2.7 BILLION AT THE IPO PRICE.
WE SPOKE WITH THE CFO DAVID LEE. HERE'S WHAT HE HAD TO SAY ON HOW THEY WILL USE THE CASH. DAVID: WE WILL SPEED UP AND DEEPEN THE TOOLS WE GIVE ANY CREATOR GLOBALLY TO BE A GLOBAL HIT. MANY STORIES YOU COME TO SEE ON AMAZON PRIME OR NETFLIX, THE TOP SHOWED TODAY IS POWERED BY OUR PLATFORM. YOU WILL SEE IS CONTINUE TO
DELIGHT MORE AND MORE CONSUMERS A NETTED STATES AND THE REST OF THE WORLD AND INVEST BEHIND OUR CREATORS. CAROLINE: I WANT TO TALK MORE ABOUT THIS RIGHT NOW. THE INTERNATIONAL FLAVOR OF THEM. JEFF THOMAS IS WITH US.
WE WILL BE ASSESSING THE IPO LANDSCAPE. JEFF, TODAY IS A BIG DAY FOR WEBTOON AND THE SOUTH KOREA-BASED NEVER THAT BACKS IT. W ARE SEEING MORE COMPANIES COMING TO THE U.S. TO LIST? JEFF: NASDAQ'S HAD 64 IPO'S AND HALF OF COME FROM INTERNATIONAL. WE HAD WEBTOON, SUPERHIGH OUT OF ASIA, FLORIAL AT OF SPAIN. -- OUT OF SPAIN. THEY CAN GET BETTER VALUATION
AND THE CAPITAL MARKETS ARE WIDER AND DEEPER IN THE U.S. CAROLINE: THAT IS NOT -- ED: THAT IS NOT HUMAN FORMALLY TRUE. THE CHAT AROUND SHIAN IS INTERESTING. THEY ARE LOOKING AT LONDON-BASED ON THE POLITICAL TENSION BETWEEN THE U.S.
AND CHINA. THAT WAS A HEADLINE THAT CROSSED WELL I WAS ON VACATION. I WAS SURPRISED TO SEE IT. WHAT WITH THE FACTOR IN THE CASE BE TO YOUR MIND? JEFF: THERE'S ALWAYS A UNIQUE ASPECT EVERY DEAL. WHAT WE ARE FOCUSED ON IS TRYING TO PROVIDE A GREAT PLATFORM TO SUPPORT ALL OF OUR COMPANIES ACROSS THE WORLD. THAT INCLUDES HAVING A GREAT TRADING PLATFORM, SUPPORTING COMPANIES WITH OUR INVESTOR RELATIONS AND SITES, AND HELPING THEM ON THEIR JOURNEYS. CAROLINE: ARE THERE OTHER CHINESE COMPANIES EYEING THE U.S.
-- FEWER CHINESE RELATED NAMES EYEING THE U.S. GO PUBLIC? JEFF: PLEASE SEE A LOT OF STRONG DEMAND FROM AROUND THE GLOBE. IT IS NOT JUST CHINA. WE HAVE A LOT OF INTEREST OUT OF SOUTHEAST ASIA. NOT JUST KOREA BUT VIETNAM AND LOTS OF OTHER COUNTRIES OVER IN ASIA ARE LOOKING TO COME TO THE U.S. ED: VINFAST IS INTERESTING EXAMPLE OF THE NAMES FROM THE REGION IN THE MARKET .
I'M TRYING TO GET A BIGGER PICTURE SENSE OF WHAT'S GOING ON. WE HAD THIS POCKET OF LISTINGS IN SEPTEMBER OF LAST YEAR AND WE STARTED THE YEAR WITH SOME ENERGY. WE ARE SHOWING A GRAPHIC ON THE SCREEN NOW OF ALL THE VC BACKED NAMES THAT HAVE BEEN WAITING FOR AGES TO ACTUALLY GIVE US A SIGNAL ONGOING PUBLIC. WHERE ARE WE IN THIS MARKET BROADLY AT THIS MOMENT IN TIME? JEFF: WE HAVE A VERY STRONG PIPELINE OF VC-BACKED TECH COMPANIES LOOKING TO GO PUBLIC IN THE NEXT 12 TO 18 MONTHS. THIS YEAR THE STORY HAS BEEN MORE ABOUT PRIVATE EQUITY-BACKED COMPANIES, COMPANIES AND THE HEALTH CARE SECTOR.
WE HAD GREAT NAMES OUT OF BIOTECH. WE HAD LINEAGE LOGISTICS FILE PUBLICLY YESTERDAY, THE LARGEST COLD STORAGE REIT IN THE U.S.. A LOT OF THE MORE STEADIER GROWTH HIGHLY PROFITABLE COMPANIES, AND SOME OF THE VENTURE-BACKED TECH COMPANIES WE SEE MORE ACTIVITY OUT OF THOSE IN 2025. CAROLINE: WE WERE HEARING HOW WE HAVE ANY RECORD SETTER FOR EVALUATION IN THE U.S. PRIVATE MARKETS. THAT BEING SPACEX. MANY THINK THAT ELON MUSK WOULD
EYE A TEXAS-BASED EXCHANGE FOR WHEN THAT BECOMES A REALITY. WHAT DO YOU THINK OF THE COMPETITION? JEFF: FRANKLY WE ENDORSE COMPETITION. THE U.S. CAPITAL MARKETS ARE UNIQUE AND WE NOT ONLY COMPETE FOR LISTINGS IN THE U.S. BUT WE ALSO COMPETE FOR THE TRADING VOLUME. THAT IS THE WAY THE SEC SET UP
THE MARKET STRUCTURE IN THE U.S. IT'S HIGHLY COMPETITIVE. THERE ARE 16 DIFFERENT EXCHANGES IN THE U.S., DOZENS OF DIFFERENT INTERNALIZES AND DARK POOLS ACROSS THE U.S.. THAT COMPETITION IS ONE OF THE THINGS THAT DRIVES SUCH GREAT OUTCOMES FOR OUR LISTED COMPANIES.
THAT IS WHY WE INVEST SO MUCH IN TECHNOLOGY TO PROVIDE A GREAT TRADING PLATFORM AND HAVE TO DIFFERENTIATE OUR VALUE PROPOSITION TO PROVIDE GREAT MARKETING AND VISIBILITY TO OUR LISTED COMPANIES. OF COURSE, ALL THE DATA AND INSIGHTS TO HELP THEM UNDERSTAND WHO IS BUYING AND SELLING THEIR STOCK EVERY DAY. ED: IF YOU ARE SPACEX, WHY GO PUBLIC WHEN THE PRIVATE MARKET IS BACKING YOU ALL THE WAY? JEFF THOMAS, THANK YOU SO MUCH. COMING UP, WE ARE JOINED BY AMRITA AHUJA, CFO AND COO OF BLOCK, A COMPANY NAMED ON THE RECENT ONES TO WATCHLIST TO DISCUSS THE COMPANY'S PLAN FOR UPCOMING LAUNCHES AND FURTHERING THEIR STRATEGIES FOR GROWTH. LOOKING FORWARD TO THE CONVERSATION. FROM SAN FRANCISCO AND NEW YORK CITY, THIS IS "BLOOMBERG TECHNOLOGY."
♪ >> HAPPENED YET, BUT HOPEFULLY IT WILL. >> WHETHER IT IS A RECAP OR MINORITY SALE, THAT IS WHAT WE ARE SEEING. THAT MIGHT NOT BE AN OUTRIGHT SALE, BUT IT WILL OCCUR.
>> NOW THAT CUTS ARE ON THE RISE, THE PIPELINE IS PICKING UP MEANINGFULLY, MEANING YOU SHOULD START TO SEE MORE DEALS AND VELOCITY. EVEN IF THE BASE RATE COMES DOWN, IT WILL OFFER AN ATTRACTIVE RATE. CAROLINE: TOP NAMES TALKING ABOUT RATE STABILIZING. YIELDS PERHAPS COMING DOWN AHEAD OF THE AUCTION WE ARE GETTING LATER TODAY WHERE WE ARE OFF BY FOUR BASIS POINTS. SOME OF THAT MOVEMENT INTO THE BOND MARKET HAS STEMMED SOME OF THE ANXIETY AROUND THE TECHNOLOGY PLAY IN THE EQUITY MARKETS. DOWN 1/10 OF 1% EVEN THOUGH WE
HAVE BIG DRAWDOWNS AND SINGLE NAMES BUT WE ARE STABLE ON THE NASDAQ 100, THAT'S THE BIGGER BENCHMARK. BITCOIN IS OFF BY 1%. CRYPTO, MANAGING TO PUSH HIGHER AS WE SEE RISK ON SENTIMENT FROM THE BOND MARKET IN THE CRYPTO MARKET. LET'S LOOK AT THE INDIVIDUAL NAMES MAY BE DRAGGING DOWN THE OVERALL NASDAQ 100. MICRON, UNDERPERFORMING AS YOU
SEE, THE CEO COMES OUT AND SAYS REVENUE IS FORECAST ONLY 90%, NOT GOOD ENOUGH. THE MARKET WANTED TO SEE MORE. THIS IS OF COURSE ALL ABOUT THE HIGH-BANDWIDTH MEMORY COMING FROM MICRON. 3% WITH DEPOSITORY RECEIPTS IN THE U.S., THE OWNER OF TEMU MIGHT HAVE MORE COMPETITION COMING FROM AMAZON DRIVING IT ON. UP MORE THAN 5%, Z SCALE, CYBERSECURITY, THAT'S A REAL FOCUS TODAY. WITH THAT BECAUSE BERNSTEIN IS
LIKING THE PALO ALTO NETWORKS OR IS IT AN ISSUE OVER THE U.K. AND HACKING? FOR NOW, BACK TO INVESTMENT. ED: YEAH, ANOTHER THING COMING OUT OF BLOOMBERG INVEST, THE UNVEILING OF THE ONES TO WATCHLIST. THE FINTECH COMPANY KNOWN FOR FINANCIAL SERVICES LIKE SQUARE AND CASH APP MADE A LIST SHINING THE LIGHT ON THE BLOCK CFO COO AND I'M DELIGHTED TO SAY THAT THEY JOIN ME NOW. I'VE MET MANY JOINT CFO COO'S. IT'S AN INTERESTING DUAL ROW -- ROLE WHERE YOU CONFLICT WITH YOURSELF AND HAVE TO MANAGE THE NUMBERS AND RUN THE OPERATIONS OF THE BUSINESS.
WHAT'S THAT LIKE? >> FIRST OF ALL, THANK YOU FOR HAVING ME HERE AND I APPRECIATE IT. THAT'S RIGHT, I HAVE TO HOLD BOTH THINGS, ASPIRATION AND INDISCIPLINE. THE MARKET WE ARE GOING AFTER IS VAST. $200 BILLION OVER FINANCIAL SERVICE COMMERCE.
DISCIPLINE BECAUSE WE WANT TO DO THAT FOCUS ON UNIT ECONOMICS AND HOLDING OURSELVES ACCOUNTABLE TO RETURNS ON THE OUTCOME. AS A COO AND CFO, I'M VERY FOCUSED ON BOTH AND CONTINUE TO DEMONSTRATE OUR PROGRESS TOWARDS OUR INVESTMENT FRAMEWORK AND FINANCIAL TARGETS IN 2026. CAROLINE: THE STOCK BASH ED: THE STOCK IS DOWN -- ED: THE STOCK IS DOWN 18% THIS YEAR AND THERE ARE STORIES TYING IT CLOSELY TO BITCOIN.
WE CAN TALK ABOUT STRATEGY, BUT WHERE WOULD YOU SAY THE COMPANY IS AT COMPARED TO WHERE YOU'RE TRYING TO GET IT TO? AMRITA: WE HAVE A TREMENDOUS OPPORTUNITY FOR GROWTH. Q1, WE WERE GROWING 22% YEAR-OVER-YEAR. TO BE AT THAT SCALE AND CONTINUE TO DEMONSTRATE BOTH, WE ARE CLEARLY SERVING VERY IMPORTANT NEEDS ON THE BEHALF OF OUR CUSTOMERS, WHETHER IT IS SMALL BUSINESSES OR THE 54 MILLION MONTHLY ACTIVES ON CASH APP.
WE HAVE SIGNIFICANT OPPORTUNITY FOR DOING MORE OF THAT. WE ARE EARLY AND WE USE TECHNOLOGY AND AI TO UNDERPIN OUR PRODUCTS AND WE ARE FOCUSED ON IMPROVING THE VELOCITY TO SHIP MORE PRODUCTS TO OUR CUSTOMERS. CAROLINE: IN MANY WAYS, REGULATION HAS TO PLAY CATCH UP. IT IS NOT MISSED ON MANY THAT THEY ARE TRYING TO BRING FINANCIAL TECHNOLOGY REGULATION INTO THE 21ST CENTURY, THAT'S WHAT THE LAST CONGRESSIONAL VOTE WAS ON. I'M INTERESTED IN WHETHER YOU THINK REGULATION IS THERE IN THE RIGHT PLACE FOR YOU. LOTS OF REGULATIONS WITH PEOPLE
TRYING TO GET THEIR HEAD AROUND THE FUTURE OF CRYPTO. AMRITA: THAT'S RIGHT, AND WE WELCOME REGULATION AS IT APPROPRIATELY SERVES CONSUMERS. WE WORK WITH REGULATORS AND WORK TO BUILD A HEALTHY ECOSYSTEM FOR OUR CUSTOMERS. IT IS OUR TOP PRIORITY TO MAINTAIN A SAFE, SECURE PLATFORM THAT LOADS TRUST OVER TIME. ULTIMATELY, THAT IS GOOD FOR BLOCK. CAROLINE:
TRUST OVER TIME, THERE HAVE BEEN CONCERNS AROUND MONEY LAUNDERING WORRIES, TRADING WITHIN SANCTIONED COUNTRIES, WHICH I KNOW IS BEING INVESTIGATED AT THE MOMENT. HOW ARE YOU WORKING WITH REGULATORS TO MAKE SURE YOU ARE BRINGING THE LEVEL OF TRANSPARENCY YOU HAVE INTERNALLY TO THOSE EXTERNALLY. AMRITA: WE TAKE THE ALLEGATION SERIOUSLY AND ARE WORKING ON THE AREAS THAT BUILD A HEALTHY, SAFE, AND RESPONSIBLE PLATFORM FOR OUR CUSTOMERS INCLUDING COMPLIANCE TEAMS, PRODUCT TEAMS, AND RISK MANAGEMENT TEAMS. WE ARE ALWAYS OPEN TO FEEDBACK AND WANT TO CREATE APPROPRIATE DIALOGUE WITH REGULATORS, POLICYMAKERS AND THE COMPANY ALONG WITH CUSTOMERS. ED: WHEN I MOVED TO SAN FRANCISCO IN 2018, JACK DORSEY WAS MORE CLOSELY ASSOCIATED WITH WHAT WAS THEN CALLED TWITTER.
A LOT HAS CHANGED OVER THE LAST SIX YEARS. HE IS NOW AT BLOCK. WHAT IS THAT LIKE, WORKING WITH HIM, YOUR RELATIONSHIP WITH HIM DAY TO DAY IN THE COMPANY? WHEN I LOOK AT THE BITCOIN NEWS THAT CAME OUT RECENTLY, HOW MUCH OF THAT IS HIS FOCUS? AMRITA: HE'S A VISIONARY WHO RUNS NOT ONLY OUR COMPANY BUT ALSO SQUARE AND I WOULD SAY THE VAST MAJORITY OF HIS FOCUS AND OUR FOCUS IS ON THE TWO MATURE SYSTEMS AND WITH BITCOIN WE HAVE A STAKE IN THE FUTURE WHERE MONEY CAN MOVE AT THE SPEED OF THE INTERNET AND WE THINK THAT BITCOIN IS THE LIKELIEST CONTENDER TO ENABLE DIVISION, BECAUSE IT IS RESILIENT AND HAS BEEN BATTLE TESTED, IS SECURE AND TRANSPARENT. WHAT WE SEE WORKING AROUND THE WORLD IS THAT THE MOST UNDERSERVED CUSTOMERS ARE THE ONES THAT HAVE TO PAY THE HIGHEST RATES TO ACCESS THEIR MONEY OR MOVE MONEY AROUND. WE THINK THAT BITCOIN HAS THE OPPORTUNITY TO CHANGE THAT.
OF COURSE WE WILL BE DISCIPLINED AND PRUDENT IN HOW WE INVEST IN THAT FUTURE. LESS THAN 3% GOES TOWARDS BITCOIN EXPERIMENTS AND INITIATIVES, BUT IT COULD BE POTENTIALLY TRANSFORMATIVE. CAROLINE: I'M REALLY INTERESTED IN THE INVESTMENT SIDE OF IT. YES, YOU ARE BUILDING PRODUCTS AND I CAN UNDERSTAND WHY YOU WANT TO EXPERIMENT FOR THE GOOD OF THE CONSUMER, BUT WHY THE BALANCE SHEET? WHY HAVE 10% GROSS PROFIT GOING INTO BITCOIN PRODUCTS EACH MONTH AND KEEPING IT AS AN INVESTMENT ON THE BALANCE SHEET? AMRITA: 10% OF BITCOIN, LESS THAN 5% OF OVERALL GROSS, A MODEST SUM THAT HELPS US TO LEARN, HELPS US UNDERSTAND WHAT IT MEANS TO CUSTODY BITCOIN, WHAT IT MEANS FOR THE TREASURY TEAMS TO BE OUT THERE BUYING BITCOIN WITH RESPECT TO INSURANCE. THERE ARE A LOT OF DIFFERENT THINGS THAT WE GET TO LEARN FROM THIS MODEST AND SMALL INVESTMENT IN THE SCOPE OF A MUCH WATER BALANCE SHEET. CAROLINE: GREAT TO HAVE SOME TIME WITH YOU, CONGRATULATIONS FOR BEING ON THE LIST. MEANWHILE, COMING UP WE WILL BE JOINED BY THE
FOUNDER OF RAY VENTURES TO TALK ABOUT EARLY-STAGE INVESTMENTS IN AI AND HOW THEY ARE PAYING OFF FOR HER. THIS IS "BLOOMBERG TECHNOLOGY." RAMASWAMY WHO JOINS US AFTER THE PRESIDENTIAL DEBATE. DO NOT MISS THAT CONVERSATION. THIS IS BLOOMBERG. ♪ CAROLINE: TIME NOW FOR OUR VC ROUNDUP.
PETER THIEL'S FOUNDERS FUND, LOOKING TO RAISE 1.5 BILLION DOLLARS, ONE OF THE LARGEST FUNDING ROUND OF THE YEAR FOCUSED ON AI. PLUS, SEQUOIA CAPITAL IS MEETING AN INVESTMENT IN A FRENCH STARTUP BUILDING CUSTOMIZED AI BOTS FOR COMPANIES MAKING SOFTWARE PLUGGING INTO COMPANIES LIKE GOOGLE AND PHILANTHROPIC FOR THINGS LIKE SLACK. AND IT'S NOT OF COURSE THE ONLY
AI INVESTMENT TODAY. CLAY IS INVESTED IN SALES AND MARKETING BUSINESSES RAISING $46 MILLION FROM INVESTORS LIKE SEQUOIA AND OTHERS, BRINGING THE COMPANY VALUATION TO $500 MILLION. ED: LET'S KEEP TALKING ABOUT INVESTING IN AI AND BRING IN SHRUTI GANDHI, THE FOUNDER OF ARRAY VENTURES. THE FOCUS IS GETTING INTO AI NAMES AT THE EARLIEST STAGES. THIS IS A WELL-TIMED AND IMPORTANT CONVERSATION. TWO DAYS AGO YOU HAD THE EDGE FOUNDER AND CEO ON THE SHOW WITH A DEBUT ROUND OF $120 MILLION. AFTER HE WENT ON THE SHOW LOADS
OF PEOPLE REACHED OUT AND SAID GREAT INTERVIEW, BUT THEY DON'T HAVE ANYTHING TO SHOW YET. THEY ARE TALKING ABOUT TAKING ON THE NVIDIA'S OF THE WORLD AND IT'S A HARDWARE PLAY. IN THE FIRST INSTANCE, GETTING IN AT THE EARLY STAGES, HOW DO YOU KNOW THAT THAT IS A VIABLE BUSINESS, TECHNOLOGY, OR PLAN? SHRUTI: FIRST OF ALL, THANK YOU FOR HAVING ME ON THE SHOW. IT'S NOT THAT HARD, GOOD
QUESTION. TODAY THERE ARE WAYS TO INVEST, AREAS TO INVEST IN BECAUSE THEY ARE GLAMOROUS. AI HAS KIND OF DISTRIBUTED, CURRENTLY, IN TWO WAYS. ONE IS MODEL COMPANIES AND THE OTHER IS APPLICATIONS. ED: CAROLINE JUST OUTLINED IT IN THE DAYS NEWS STORIES. SHRUTI:
EXACTLY. A WHOLE BUNCH OF INVESTORS GOING AFTER THOSE COMPANIES. IT'S A RACE TO THE BOTTOM IN SOME WAYS.
BUT PEOPLE FEEL LIKE THEY ARE MISSING OUT ON GETTING INTO THE BEST AI REVOLUTION BECAUSE IT HAS BEEN COMPARED TO THE EARLY INTERNET. THEN THERE ARE THE APPLICATION LAYERS AND PAIN POINTS THAT COMPANIES NEED TO SOLVE IN TERMS OF PROTOCOL AND HR. IT COULD BE THE CIO, SEE SELF, EFFICIENCY. AND YOU CAN SOLVE THAT WITHOUT RAISING MUCH MONEY. YOU CAN SOLVE FOR THAT EARLY DAYS BY TESTING THE WATERS, CALLING YOUR FRIENDS, FIGURING OUT WHAT YOU NEED TO SOLVE IN HOW I CAN GET STARTED WITH JUST A FEW MILLION DOLLARS. ONCE YOU DO THAT, YOU CAN RAISE
A BIG AMOUNT OF CAPITAL AFTER THAT. I DON'T THINK THAT EVERYONE NEEDS TO RAISE THAT MUCH IF YOU ARE NOT A MODEL COMPANY. CAROLINE: OK, SO IF YOU ARE GOING TO ALLOCATE SOME OF YOUR MONEY -- MONEY INTO A COMPANY THAT WAS THE FIRST ROUND TO GET THINGS ROLLING FOR CONSUMER NEED, HOW DO YOU DECIDE THE BEST PLACE? THANK YOU -- SHRUTI: THAT'S RIGHT. THANK YOU SO MUCH FOR ASKING. IT'S WHAT WE JUST SAID, WE
TALKED ABOUT THIS IN THE COLLABORATING WORKFORCE, IF A FOUNDER IS AT A BIG COMPANY, AGITATED, THEY ARE REALLY UPSET TRYING TO SOLVE BIG PROBLEMS IN AI, DATA, CLOUD, SECURITY. WHAT THEY CANNOT DO IS GET PERMISSION AND BUDGET FROM CIOS TO GO SOLVE FOR THAT WITHIN THE COMPANY BECAUSE IT IS NOT MISSION-CRITICAL AT THE CURRENT COMPANY. THEN THEY GO OUT AND TALK TO THEIR FRIENDS AND SAY THAT IF I BUILD THIS, WILL YOU BUY? RUNS A YES. SO, THREE OF THE FIVE FRIENDS SAY THAT IN THAT IS WHEN OUR FOUNDERS GO AND BUILD, GET THE CONVICTION TO BUILD THOSE COMPANIES. FRANKLY, YOU DON'T NEED THAT MUCH MONEY EARLY DAYS TO PUT A TEAM TOGETHER, ESPECIALLY IF YOU HAVE A CORE TEAM OF ENGINEERS TO PUT THE TOGETHER FOR THE PROBLEM , YOU HAVE BEEN THERE BEFORE. WHAT WE INVEST IN IS PRECEDE COMPANIES.
THAT'S FIRST CHECK EVER INTO A COMPANY AND YOU DO NOT NEED THAT MUCH MONEY FOR IT TO VALIDATE YOUR IDEAS. CAROLINE: SHRUTI, HOW LONG DO YOU THEN STAY WITH THE COMPANY? AS YOU SAY, THERE IS A SUDDEN RUSH AND HUSTLE WITH HEAVY VALUATION AND DO YOU TRY TO WRITE IT OUT FOR THE M&A AND THE IPO? SHRUTI: THAT'S A GREAT QUESTION. WE DON'T THINK OF OURSELVES AS A ONE STAGE INVESTOR.
WE USUALLY RIDE IT OUT. WE HAVE BEEN FORTUNATE IN THE LAST YEARS TO GET IT EVENT AT VARIOUS STAGES OF THE COMPANIES. SO SOMETIMES AS A PRUDENT INVESTOR WE WILL SELL 10 SHARES OR LESS THAN 1/10 OF OUR SHARES IN A COMPANY. WE JUST DID THAT AS WE RETURNED OUR FIRST FUND. WE WILL CONSIDER THAT AS A CASE BY SAY -- CASE-BY-CASE BASIS.
OUR GOAL IS TO NEVER GET OUT AT THE SECOND OR THIRD ROUND OF INVESTMENT. ED: ONE OF OUR AUDIENCE MEMBERS WROTE IN TO SAY THEY AGREED WITH YOU THAT AI CAN MEAN DIFFERENT THINGS, BUT THEY ADDED MORE WIREFRAMES FOR PRODUCTS AND THEN FOR OTHER INVESTORS THEY ARE -- IT'S AN INTERESTING POINT. WHERE I WANT TO GO TO END IS -- YOU HAVE TO FIND THESE PEOPLE. IF IT IS PRECEDED, WHERE ARE THEY COMING UP WITH THEIR IDEAS? SHRUTI: IT'S A GREAT QUESTION. OFTEN PEOPLE THINK THAT YOU
JUST CALL UP THE FRIENDS, BUT THESE OPERATORS AT THESE AMAZING COMPANIES, PEOPLE WHO HAVE WORKED THERE FOR TWO YEARS, FOUR YEARS -- ED: MIGHT HAVE BEEN LAID OFF? SHRUTI: MAYBE, MAYBE NOT, DOESN'T MATTER. WHAT MATTERS IS THEY HAVE THIS BEFORE. THEY KNOW HOW TO BUILD THIS. WHEN THEY TAKE IT ON AS A START UP THEY WILL DO IT WITH VERY LITTLE MONEY. THAT IS WHERE WE INVEST. DIFFERENT OPERATORS COMING OUT OF DIFFERENT COMPANIES.
CAROLINE: SHRUTI, SO GREAT TO HAVE YOU ON. FOUNDER OF ARRAY VENTURES. COMING UP, THE RECENT CYBER ATTACK AGAINST A LAB SERVICE PROVIDER IN THE U.K., SO NO
MESS, CAUSING A MAJOR BREACH IN THE NHS RECORDS. THIS IS BLOOMBERG. CAROLINE: FIFA IS LOOKING TO RAISE AS MUCH IS $2 BILLION FOR THE EXPANSION OF FIFA PLUS, THE FREE STREAMING SERVICE TO OFFER LIVE COVERAGE OF MATCHES. FOR MORE, LET'S BRING IN FELIX. IT'S A GOOD TIME TO BE SELLING SOME SORT OF SPORT RIGHT NOW? FELIX: IT IS.
EXPENSIVE IF YOU ARE A FIRE, BUT ALL OF THESE STREAMING SERVICES HAVE LAUNCHED THESE AD SUPPORTED TEARS IN THE BIGGEST MOVEMENT RIGHT NOW IN HOME ENTERTAINMENT IS THE FACT THAT AS THEY TRY TO BUILD UP THESE AD SUPPORTED PARTS OF THEIR PLATFORMS, THEY ARE GOING TO NEED MORE LIVE SPORTS, RIGHT? ANY TIME ANY BIT OF SPORTS RIGHTS COMES UP FOR SALE, YOU JUST SEE THE PRICES GOING UP AND UP. THE NBA ABOUT TO SIGN THESE HUGE DEALS, GETTING A BIG BUMP. FIFA, THEY HAVE SOME SECONDARY PACKAGES YOU CAN TAKE OUT INTO THE MARKET AND SELL THE RIGHTS FOR OR DISTRIBUTE THEM YOURSELVES. YEAH, IT'S A GREAT TIME TO BE SELLING SPORTS RIGHTS. ED:
TELL ME ABOUT FIFA PLUS. I HAVE SLING, PARAMOUNT, I WATCH IT ON PEACOCK. DO I NEED TO GET FIFA PLUS AS WELL? FELIX: DEPENDS ON YOUR LEVEL OF ADDICTION. CAROLINE: YES. [LAUGHTER] FELIX: YOU HAVE TO GO PRETTY FAR DOWN. SOCCER, THE WORLD CUP THE BROADCAST RIGHTS FOR 2026 HAVE BEEN SOLD. YOU CAN WATCH IT IN THE U.S., ON FOX.
BUT I THINK THAT ALL OF THESE LEAGUES, WHEN YOU GET DOWN TO THE SMALLEST SLICES POSSIBLE, WHETHER IT IS SOCCER, TENNIS, BASKETBALL, FOOTBALL, IN SOME WAYS I THINK THE NFL HAS REALLY BEEN THE MODEL. YOU TRY TO CHOP IT UP INTO AS POSSIBLE, BECAUSE EVERY SLICE YOU CAN FIND A BUYER FOR. OR YOU CAN PUT IT ON YOUR OWN STREAMING SERVICE AND GET ADVERTISERS OR SELL SUBSCRIBERS.
CAROLINE: INDEED. ED: FELIX, THANK YOU. BIG STORY OUT OF THE UNITED KINGDOM. LONDON HOSPITALS FACING MAJOR CONSEQUENCES FOLLOWING A CYBERATTACK AGAINST LAB SERVICE PROVIDER SYNOVIS ON JUNE 3, RESULTING IN THE RELEASE OF SENSITIVE MEDICAL RECORDS AT NHS, PATIENT DATA. RYAN JOINS US WITH MORE. SIGNIFICANT, SEEING SOME OF THE U.K. PAPERS COVERING THIS, RYAN. EXPLAIN WHAT HAPPENED. RYAN: ON JUNE THE THIRD, A RUSSIAN
LINKED CRIMINAL HACKING GANG BROKE INTO SYNOVIS' COMPUTER SYSTEM WITH MALICIOUS SOFTWARE, ESSENTIALLY LOCKED DOWN. SYNOVIS IS AN IMPORTANT COMPANY, IT PROVIDES BLOOD TESTING, BIOPSY TESTING FOR A WHOLE RANGE OF HOSPITALS IN SOUTHEAST LONDON IN PARTICULAR. IT MEANT THAT THESE HOSPITALS COULD NOT TEST BLOOD FOR THEIR PATIENTS. NOW INTO THE FOURTH WEEK OF THE INCIDENT, THE HOSPITALS HAVE BEEN UNABLE TO TEST BLOOD AT NORMAL CAPACITY, WHICH HAS CAUSED MASSIVE PROBLEMS FOR THEM. CAROLINE:
THEN THERE IS A HORROR TO REALIZE THAT YOUR OWN PERSONAL INFORMATION WHILE PREGNANT, YOUR OWN NEWBORN, YOUR DIAGNOSIS OF SCHIZOPHRENIA, MIGHT BECOME A MORE PUBLIC FORM OF INFORMATION. HEARTS GO OUT TO THOSE WHO MIGHT THE AFFECTED, AND MANY ARE, SO I'M WONDERING ABOUT THE RAMIFICATIONS. IT SEEMS AS THOUGH THE NHS KNEW THAT THERE WERE VULNERABILITIES? RYAN: THE GAG BEHIND THE ATTACK ON FRIDAY LAST WEEK, THEY PUBLISHED A HUGE AMOUNT OF DATA THAT THEY STOLE FROM THE COMPUTERS BEFORE THEY WERE WALKED DOWN AND THEY DUMPED IT ALL ONLINE. I HAVE HAD A LOOK THROUGH SOME
OF IT AND IT'S A HUGE VOLUME OF INFORMATION. I HAVE SEEN FOR MYSELF LIKE 40,000 DETAILED MEDICAL RECORDS ON PATIENTS FROM ACROSS THE U.K. , WHICH WAS THE STRIKING THING. PRIMARILY IT AFFECTED THE LONDON HOSPITALS, BUT WE FOUND THAT SYNOVIS HAS BEEN DOING THESE TESTS FOR HOSPITALS ACROSS THE U.K. AND IRELAND AND THE DATA BREACH IS IMPACTING ALL OF IRELAND NOW, WHICH HADN'T BEEN UNDERSTOOD AT THE OUTSET. THERE ARE PEOPLE ACROSS THE COUNTRY WHO ARE, WHO THEIR PERSONAL CONFIDENTIAL MEDICAL INFORMATION WAS POTENTIALLY PUT OUT THERE AS A RESULT OF WHAT HAPPENED. CAROLINE: NHS TALKING ABOUT THE AMOUNT
THEY HAVE INVESTED, BUT THUS FAR THEY NEED TO KEEP AN EYE ON THIRD PARTIES. RYAN GALLAGHER, THANK YOU FOR BRINGING THAT TO US. THAT DOES IT FOR THIS EDITION. ED: INCREDIBLE REPORTING FROM OUR COLLEAGUES AROUND THE COUNTRY IN THE WORLD. YOU CAN RECAP ALL OF THAT ON THE PODCAST, YOU KNOW WHERE TO FIND IT ON BLOOMBERG PLATFORMS, SPOTIFY AND I HEART.
2024-07-02 04:55
