Oracle's Record High and X's Right-Wing Lean | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY AND POWER COLLIDE IN SILICON VALLEY AND BELONG BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I'M CAROLINE HYDE AT BLOOMBERG WORLD HEADQUARTERS IN NEW YORK, WE BREAK DOWN ORACLE'S EARNINGS AND ITS PUSH INTO THE CLOUD COMPUTING SPACE. WE TALK ALL THINGS ELON MUSK AHEAD OF THE VOTE ON HIS $56 MILLION PAY PACKAGE. PLUS PARAMOUNT WALKS AWAY WITH THE DEAL -- FROM A DEAL WITH SKY DANCE AS IT HEADS BACK TO FIND A NEW BIDDER. THAT AND SO MUCH MORE INCLUDING RECORD HIGH AFTER RECORD HIGH AND A NEW COMPANY BACK ON TOP. FOCUSING ON THE EXTRAORDINARY MOVE BY APPLE TO MOVE 12% IN TWO DAYS.
FOLLOWING THE INTEGRATION OF ARTIFICIAL INTELLIGENCE AND OPENAI AND THEREFORE STARTS TO PICK THE COMPANY TO THE POST, WHO NOW REIGNS SUPREME. APPLE NUMBER ONE, MICROSOFT HAD BEEN THE NUMBER ONE PLAYER FOR SEVERAL MONTHS. NOW BACK ECLIPSING IT FOR APPLE. WE'VE GOT ALSO STILL GAINS FROM THE LIKES OF MICROSOFT AND NVIDIA ALSO AT ABOUT A 3 TRILLION MARKET CAPITALIZATION. WE ARE FUELING SOME OF THESE
VALUATIONS ACROSS THE BOARD AND LOOKING AT WHAT HAPPENED, ANOTHER NEW RECORD HIGH AFTER ITS ACTUAL EARNINGS SHOW REAL DRIVING FORCE WHEN IT COMES TO ITS FOCUS ON CLOUD COMPUTING. HOW CAN IT COMPETE VERSUS SOME OF THE OTHER PLAYERS. 9.8% ON ONE DAY ALONE AFTER THE BELL YESTERDAY. A GOOD DAY FOR ONE AT LEAST, THIS WOULD BE LARRY ELLISON WHAT DID YOU MAKE OF THE NUMBERS? >> FOR ORACLE IS ABOUT THE CLOUD INFRASTRUCTURE.
WE SEEN THE SOFTWARE IN RECENT WEEKS IT'S BEEN REALLY DIFFICULT FOR THOSE APPLICATIONS. ORACLE IS -- THEIR BIG GROWTH WAS THAT INFRASTRUCTURE. WE SAW THEM SIGN A GOOD NUMBER OF DEALS, THERE BOOKINGS WERE HIGHER THAN ANTICIPATED AND THERE WAS THAT REALLY IMPORTANT PARTNERSHIP DEAL THAT MICROSOFT AND OPENAI SAID WE DON'T EVEN HAVE ENOUGH CAPACITY WE ARE GOING TO USE ORACLE'S CLOUD TO HELP TRAIN AND WORK WITH OPENAI, WHICH WAS A VERY VALIDATING FOR INVESTORS TO SAY I GUESS WHAT LARRY HAS BEEN TALKING ABOUT, THAT ORACLE IS THE BEST, FOR ORACLE THERE HAS TO BE SOMETHING THERE. CAROLINE: SAYING WE'VE HAD RECORD CONTRACT SIZES IN THE PREVIOUS QUARTER.
THAT'S GOOD TO CONTINUE INTO THE SECOND HALF OF THE YEAR BUT I'M REALLY INTERESTED IN THE FLY IN THE OINTMENT. WHAT ABOUT THE FOCUS ON HEALTH CARE DATA BECAUSE THAT'S NOT GROWN PARTICULARLY? >> THE WHOLE HEALTH CARE BET WAS FOR SURE NOT A BIG PART OF THE EARNINGS. ORACLE PURCHASED THE $20 BILLION. IT'S AT THE CENTER OF THE COMPANY NOW. IT HASN'T PANNED OUT TOO WELL. INVESTORS SAY IF YOU CAN CLIMB
IN BOOKINGS ON CLOUD INFRASTRUCTURE MAY BE IT DOESN'T MATTER SO MUCH. >> MARKETS THINKING IT DOESN'T MATTER SO MUCH OF THE MOMENT. WE ARE UP $35 BILLION ON THE DAY FOR ORACLE AND HAVING ITS CURRENTLY TRENDING AT THE HIGHEST BREAKING DOWN THE NUMBERS FOR US. TURNING TO THE BROADER MARKETS.
IT'S NOT JUST ORACLE WITH RECORD HIGHS. WE ARE SEEING MONEY FLOWING INTO EQUITIES AND BONDS. THE S&P 500 UP MORE THAN A PERCENTAGE POINT.
NASDAQ POWERING UP 1.8%. THE FACT CPI PRINT SHOWING YOU 3.4% YEAR ON YEAR GROWTH. THEREFORE SERVICED IN THREE YEARS. THE TWO YEAR YIELD PLUMMETS. WE ARE AT 4.6 -- 4.68%.
MAYBE EVEN BY SEPTEMBER WE WILL WAIT FOR THE FEDERAL RESERVE DECISION LATER ON THIS AFTERNOON. BITCOIN ON THE UP AND UP. THIS PAINTS A PICTURE OF RISK ON. DEFIANCE ETF'S REALLY TALKS US THROUGH WHETHER THIS IS A WISE DECISION NOW. >> IN TERMS OF THE FED TODAY AND ANY POTENTIAL CUTS, I DON'T ANTICIPATE ANYTHING COMING. I THINK THE DATA WAS GREAT.
INFLATIONS ON THE DOWNTREND. THIS IS WHAT THE FED WANTED TO SEE. BUT IF WE TAKE ANYTHING FROM FED CHAIR POWELL IT SEES LOOKING FOR MORE DATA BEFORE MAKING DECISIONS.
IT'S PROBABLY A BIT BENIGN. IT WON'T -- THAT'S A GOOD THING THAT WE HAVE SOME STABILITY THERE. >> STABILITY ENOUGH TO CONTINUE TO THINK TECHNOLOGY WILL LEAD US HIGHER. SYLVIA: I THINK THE TECHNOLOGY WILL LEAD US HIGHER. THE REASON FOR THAT IS WE ARE JUST IN THE BEGINNING STAGES OF THIS AI FOURTH INDUSTRIAL REVOLUTION. IT'S ONLY NOW STARTING TO PLAY
IN WITH A LOT OF THE MAG FIVE, 6, 7 THAT HAVE BEEN REPORTING IN THIS LAST QUARTER. IT'S JUST IN ITS INFANCY IN TERMS OF HOW WILL IMPACT THE BOTTOM LINE. WE HAVEN'T EVEN STARTED TO TALK ABOUT HOW AI IS TRANSFORMING HEALTH CARE OR AEROSPACE DEFENSE , THINGS LIKE THIS. SO THE COMPANIES WHO ARE THE KEY OF THAT REVOLUTION ARE ESSENTIALLY THE MAG SEVEN SO THEY KEEP GOING. ALSO LOOK AT THE BALANCE SHEETS THEY ARE EARNING MULTIPLE EARNINGS PROJECTIONS SAID TO BE ABOUT 14% OR HIGHER FOR THE NEXT COUPLE OF YEARS. I THINK BARRING ANY MAJOR CHANGE IN ANY GEOPOLITICAL EVENT, POLITICS OF COURSE.
TECH IS THE SAFE PLACE TO PLAY. >> APPLE IS A WEIRD ONE WE ARE NOT EXPECTING DOUBLE-DIGIT GROWTH MARKETS ARE ANTICIPATED A PERCENT INCREASE IN REVENUE FOR THE NEXT FISCAL QUARTER AND YET THEY ECLIPSED MICROSOFT. AND RALLYING AN EXTREME 12% IN THE LAST COUPLE OF DAYS. SYLVIA:
APPLE HASN'T DONE ANYTHING FOR THE LAST COUPLE OF YEARS. EVERYTHING IS KIND OF FALLING APART A COUPLE YEARS AGO IN 2022 WHEN TECH STOCKS WERE DOWN. AND APPLE WAS THE NAME HOLDING UP THE MARKET. THIS YEAR THAT SHIFTED TO NVIDIA. AND APPLE HAS KIND OF REGAINED ITS SEAT ON THE THRONE HERE NEXT OF THE TOP PLAYERS.
I THINK THIS STORY THERE IS PICKUP IN CHINA AND ALSO SOME TALKS OF THE AI FINALLY ON THE MAP WITH THAT. WE HAVEN'T HEARD ANYTHING FROM THEM. IF YOU START GETTING UPGRADES BECAUSE THIS TIME THEY ARE DIFFERENT AND THEY HAVE THAT AI PLAY AND PICK UP, IT PROBABLY DESERVES A BIT OF A STOCK INCREASE THERE.
>> CAN YOU TALK US THROUGH THE FUNDAMENT -- THE TECHNICALS AT PLAY AS WE HEAD TOWARDS THE END OF THE FIRST HALF OF THE YEAR AND WE GET A REBALANCING MOMENT IN JUNE. WE SEE BIG DIFFERENCES IN SHAKEUPS IN MARKET CAPITALIZATION BRING WEARABLE MONEY MOVE. HOW WILL THAT FEED THE BIGGEST? SYLVIA: WHEN YOU HAVE ABOUT 97% OF THE GROWTH FROM THE S&P 500 FROM FOUR TO FIVE NAMES AND 40% FROM THE NEXT TWO BEHIND IT. I DON'T THINK THE REBALANCE IT WILL EQUALIZE A LITTLE BIT BETTER ON THE NEXT REBALANCE BUT THE TOP MARKET GOT AGAIN REMAIN THE TOP AND END UP LEADING THAT INDEX FORWARD.
BUT AROUND THAT TYPE OF TRADING WHEN YOU'RE PICKING UP A LITTLE BIT OF THIS OR THAT. I THINK IT WILL REMAIN THE TOP PLAYERS AND THERE'S NOT TO BE A HUGE IMPACT FROM THE REBALANCE COMING UP. >> MUCH BEING WRITTEN BY BLOOMBERG INTELLIGENCE PRAYED WHAT ABOUT YOUR OWN ETF'S? WHERE HAVE THE BETS BEEN RIGHT? SYLVIA: HOURS ARE IN LINE WITH THE MARKETS SO OUR TWO BIGGEST ETF PLAYS ARE A TAKER CALLED 5G AND ONE CALLED QUANTUM. WHAT THEY DO IS THEY REPRESENT AI AND MACHINE LEARNING AND ALL THE WIDGETS THAT GO INTO SUPPORTING THAT. CONDUCTIVITY, TECHNOLOGY FACTOR OF IT ALL. OBVIOUSLY TO PROCESS THIS DATA AND ALL THAT.
WE TALK ABOUT 5G, PRETTY SOON WE WILL BE TALKING ABOUT SIX G. AND QUANTUM IS JUST BENEFITING BECAUSE IT'S ON THE AI STOCKS. NVIDIA, THE HOME RUNS THEIR LEADING THAT REVOLUTION SO THAT ONE'S BEEN THIS YEAR. LOOKING AT THE COMMODITIES AS WELL. WE THINK ABOUT THINGS OF URANIUM IN GENERAL. TO PROCESS FOR FITS FOR AI THOSE PLAY INTO.
I THINK CRYPTO'S BECOMING FURTHER AND FURTHER COMMERCIALIZED AND INSTITUTIONAL RETAIL PLAYERS OUT THERE. TO CRYPTOCURRENCY, AT SOME POINT IT STARTED TO DIVERT FROM TECH. IT SEEMS TO BE A CORE HOLDING A LOT OF PORTFOLIOS. JUST TELLS ME IT'S AROUND TO STAY. CAROLINE:
SYLVIA, AGREED TO HAVE YOU ON THE SHOW. THOSE ON A TEAR IN LINE WITH THE MARKET. GAINS AMONG GOP USERS ON THE X PLATFORM PRAYED ANOTHER COMPANY DOING WELL. IT HAS BEEN FOR THE LAST COUPLE OF DAYS, THIS PARTNERSHIP WITH APPLE, WE UNDERSTAND THE FIRM IS EXTENDING ITS GAMES -- IT'S GAINS. THE BUY NOW PAY LATER COMPANY HAS PROSPECT AVAILABLE IN THE U.S. TO PAY USERS THIS YEAR. THIS IS BLOOMBERG.
♪ CAROLINE: PARAMOUNT CHAIR REDSTONE HAS WALKED AWAY FROM A DEAL TO SELL HER MEDIA EMPIRE TO THE ORACLE FOUNDER PAID REDSTONE REJECTED THE PROPOSAL FROM SKY DANCE ON TUESDAY AFTER LENGTHY NEGOTIATION. THERE ARE OTHER BIDDERS WAITING IN THE WINGS. SEAGRAM'S AIR AND INDEPENDENT FILM PRODUCER STEPHEN HELP. BYTEDANCE CUTTING JOBS IN ITS INDONESIAN ECOSYSTEM IT MARKS THE FIRST ROUND OF CUTS SINCE COMBINING ITS TIKTOK SHOP. BYTEDANCE IS REDUCING STAFF ACROSS ITS ECO-VERSE TEAMS INCLUDING ADVERTISING AND OPERATIONS.
FORMER PRESIDENT DONALD TRUMP MET WITH SEVERAL BITCOIN MINERS IN HIS MAR-A-LAGO STATE TUESDAY NIGHT. THE EXECUTIVE CHAIRMAN -- TRUMP TOLD ATTENDEES HE LOVES CRYPTOCURRENCY AND HAD BEEN ADVOCATE FOR MINERS IF HE RETAINS THE WHITE HOUSE. SOCIAL MEDIA PLATFORM X FORMERLY KNOWN AS TWITTER HAS GROWN IN POPULARITY AMONG CONSERVATIVE USERS. ACCORDING TO A NEW STUDY THE NUMBER OF REPUBLICAN USERS HAVE MORE THAN TRIPLED SINCE ITS -- HIS PURCHASE OF THE SITE IN OCTOBER. A SURPRISE TO YOU? >> I DON'T THINK SO. WHEN YOU LOOK AT WHAT THIS REPORT CAME OUT WITH, THIS IDEA THAT X IS BECOMING MORE POPULAR WITH APPLICABLE RIGHT SORT OF CONFIRMS WHAT WE'VE SEEN ANECDOTALLY FOR THE LAST COUPLE OF YEARS AND THAT'S LED BY THE NEW OWNER, A ELON MUSK WHO HAS BEEN VERY VOCAL THAT THE COMPANY HE BOUGHT, WAS VERY LEFT OF CENTER POLITICALLY AND HE WANTS TO MOVE IT MORE TO THE CENTER OF THE RIGHT PRAYED REINSTATING PRESIDENT TRUMP, TILTING RELATIONSHIPS OF OTHER RIGHT-LEANING LEADERS AROUND THE WORLD.
SO HE IS SORT OF SETTING THE STAGE AND EXAMPLE I WOULD SAY FOR WHAT HE WANTS X TO BE AND WE'RE SEEING THAT THE NUMBERS NOW IS BECOMING THAT WITH THOSE POLITICALLY CONSERVATIVE PEOPLE. >> THEREFORE ARE WE SEEING POLITICALLY LEFT OF CENTER EXITING THE PLATFORM? >> SOME ARE EXITING BUT MORE THAN THAT THEY ARE SAYING THEY DON'T FEEL WELCOME, THERE WAS A HIGHER SPIKE IN LIBERAL PEOPLE SAYING THEY WERE MORE LIKELY TO BE HARASSED OR BULLIED ON THE SERVICE THEN THOSE WHO WERE CONSERVATIVE. SO IT SORT OF SWITCHED WHERE FOR YEARS CAROLINE AS YOU REMEMBER CONSERVATIVE SAID TWITTER ISN'T A PLACE WHERE UNWELCOME OR WHERE I CAN SAY WHAT I WANT TO SAY. THEY DIDN'T FEEL LIKE IT WAS THEIR HOME.
AND IT SEEMS THOSE ROLES ARE REVERSED. THE DATA SUGGESTS CONSERVATIVES BELIEVE THAT X IS THE PLACE FOR THEM AND LIBERALS ARE FEELING LESS WELCOME. CAROLINE: I WANT TO TURN TO ANOTHER ONE OF ELON MUSK'S COMPANIES. THERE'S REPORTING, THIS IS COMING FROM THE WALL STREET JOURNAL AT THE MOMENT THAT ELON MUSK PURSUED WOMEN WORKING AT THE COMPANY FOR SPACEX INCLUDING FORMER INTERN, CITING AFFIDAVIT SIGNED BY THIS WOMAN AND OTHER INTERVIEWS. WHAT DO YOU MAKE OF THE REPORTING FOR THE WALL STREET JOURNAL? >> IT'S A BOMBSHELL OF A STORY IN THESE ALLEGATIONS ARE QUITE SERIOUS. THAT WHILE RUNNING THIS COMPANY
HE WAS SEEKING RELATIONSHIPS, SOMETIMES SEXUAL RELATIONSHIPS WITH WOMEN WHO WERE HIS SUBORDINATES. IT IS CERTAINLY CREATING THESE QUESTIONS ABOUT THE POWER DYNAMICS OF HIS COMPANIES, NOT JUST SPACE X BUT RAISES QUESTIONS ABOUT ALL THE COMPANIES HE'S IN NOW AND IS HE ABUSING HIS ROLE AS THE LEADER, THE EXECUTIVE, THE PERSON WITH THE POWER TO CREATE THESE FIRST RELATIONSHIPS AND THESE ARE ALL AGAIN COMPLICATIONS, OF THE REPORTING LOOKS PRETTY SOLID BUT I JUST THINK AGAIN IT RAISES THESE QUESTIONS FOR THESE OTHER COMPANIES AND FOR TESLA RIGHT NOW THEY'RE ABOUT TO HAVE A BIG VOTE, YOU WONDER HOW MUCH YOU NEED THIS TYPE OF NEGATIVE PRESS AROUND YOU COULD HAVE AN EFFECT ON WHAT HAPPENS TO HIM AND HIS OTHER COMPANIES. CAROLINE: WE THANK YOU VERY MUCH INDEED. STAY WITH US BECAUSE LATER IN THE HOUR WE ARE GOOD TO BE SEEING ALL THINGS ELON MUSK WITH ROSS GERBER, WE WILL BE REVIEWING WITH HIM THE TESLA SHAREHOLDER MEETING.
MEANWHILE COMING UP WE TURN TO AI IN THE WORKPLACE. A SAUNA WITH A NEW REPORT ON JUST THAT. HOW WE ARE FEELING ABOUT ARTIFICIAL INTELLIGENCE.
THEN LET'S JUST KEEP A CLOSE EYE ON SOME OTHER COMPANIES WE ARE CONTINUING TO FOLLOW POST-EARNINGS. WE HAD SEEN IT AGAIN AFTER ITS FIRST REPORT AS A PUBLIC COMPANY BUT NOW TURNS NEGATIVE TO THE TUNE OF 5% IS THE FISCAL OUTLOOK HAS SOME MUTED SENTIMENT GOING INTO THE SOFTER, ULTIMATELY WE THOUGHT CONSENSUS FOR THE 25% REVENUE GROWTH FROM 2028 WOULD BE A PRETTY AMBITIOUS TASK. WE ARE NOW DIGESTING SOME OF THESE. THE RESULTS WERE UNIQUELY
IMPRESSIVE. THIS IS BLOOMBERG TECHNOLOGY. >> CAROLINE: TODAY WE ARE LOOKING AT ARTIFICIAL INTELLIGENCE IN THE WORKPLACE. ONLY 7% OF ORGANIZATIONS HAVE A MATURE AI IMPLEMENTATIONS. EMPLOYEES ARE THREE TIMES MORE LIKELY TO REPORT PRODUCTIVITY GAINS FROM USING AI AT WORK. THAT'S ONE OF THE KEY HIGHLIGHTS FROM A REPORT.
IT'S ALL BUT THE IMPACT OF AI IN THE WORKPLACE. PAGE COSTELLO TALKS MORE ON THE FINDINGS. WHAT SURPRISES PEOPLE ARE FEELING MORE OPTIMISTIC ABOUT USING IT IN THE WORKPLACE. >> EXECUTIVES ARE VERY EXCITED AND INDIVIDUAL CONTRIBUTORS ARE ALSO STARTING TO USE IT QUITE A BIT. ONE OF THE THINGS WE SAW IS MORE THAN HALF OF KNOWLEDGE WORKERS REPORT THAT THEY ARE USING GENERATIVE AI. THAT'S UP 36% IN JUST SIX MONTHS. CAROLINE:
WHAT SORT OF GAINS ARE THOSE EARLY ADOPTERS SEEING? PAIGE: PEOPLE WHO USE IT DAILY REPORT THE HIGHEST PRODUCTIVITY GAINS. 89% OF THOSE WHO USE IT DAILY SAY THEY ARE SEEING THOSE GAINS AND ONLY 39% USING IT MONTHLY SEE THOSE GAINS. CAROLINE: THERE IS PERHAPS SOME SORT OF NERVOUSNESS, YOU'VE MANY WAYS OF GETTING PUSHBACK FROM THOSE THAT TEACH YOU. WHAT ABOUT THOSE IN THE WORKPLACE. FEELING LIKE YOU'RE CUTTING CORNERS OR THIS IS THE WAY YOU SHOULD BE WORKING.
>> IT'S UP TO ORGANIZATION LEADERS TO IMPROVE AI LITERACY AND CREATE A SET OF EXPECTATIONS ABOUT HOW TO USE AI. THIS IS A BIG TAP WHERE PEOPLE AREN'T RECEIVING TRAINING OR GUIDANCE. MOST ORGANIZATIONS DON'T HAVE A ROLLOUT STRATEGY OR HOW TO TRAIN THEIR EMPLOYEES, HOW TO SET UP THEIR ORGANIZATIONS. TWO ROLLOUT WHICH VENDOR MAKING SELECTIONS ABOUT HOW TO GET THE MOST OUT OF AI. PEOPLE WANT TO KNOW THEY ARE
USING AT THE RIGHT WAY AND WILL BE SUPPORTED AND CELEBRATED FOR USING IT FOR GOOD. >> WHY IS THAT INFRASTRUCTURE PERHAPS NOT BEING BUILT AROUND THE EMPLOYEE BASIS QUICKLY? IS IT NERVOUSNESS ON DOING IT RIGHT, THE RIGHT GUARD RAILS, A LACK OF KNOWLEDGE FROM THE TOP. PAIGE: THERE IS A BIT OF CURIOSITY ABOUT DO WE HAVE SAFE AND RELIABLE AI. IS IT GOING TO IN -- WITH THE RIGHT DECISIONS WE ARE MAKING.
BUT HONESTLY I BELIEVE A GOOD DEAL OF THIS IS PURELY UNCERTAINTY ABOUT WHAT IT TAKES TO BE A NEWBIE. A LOT OF THE ORGANIZATIONS AND LEADERS ARE THEMSELVES LEARNING AND TRYING TO CREATE A PLAN WHILE LEARNING AT THE SAME TIME WHEN THE TIME IS CHANGING SO QUICKLY. IT'S REALLY CHALLENGING GRADE CAROLINE: THE REASON YOU CAN DO THIS RESEARCH IS BECAUSE YOU ARE WEALTH MANAGEMENT PLATFORM.
MANAGING THEIR OWN WORKFLOWS AND EXECUTIVES THEREIN. HOW ARE YOU USING IT, HOW ARE YOU USING FOR YOUR CLIENTS? PAIGE: I WOULD SAY A FEW THINGS. AI LITERACY IS A PRIORITY FOR OUR ORGANIZATION. WE WANT TO MAKE SURE EVERY EMPLOYEE KNOWS HOW TO USE AI AND GET THE MOST BENEFITS FOR THEIR TEAMS. WE HAVE AN AI COUNCIL TO THINGS CREATIVELY ABOUT WHAT ARE THE TOOLS WE NEED TO USE AND HOW TO DEPLOY.
IT'S AN ENTERPRISE WORK MANAGEMENT PLATFORM USED BY 80% OF THE FORTUNE 100 TO DRIVE CLARITY AND ACCOUNTABILITY. WHAT WE SEE IS PEOPLE ARE USING THE CAPABILITIES TO CREATE STATUS REPORTS ACROSS CROSS-SECTIONS OF GOALS AND PORTFOLIOS OF WORK BUT ALSO WORK WITH OUR NEW AI TEAMMATES TO VALIDATE CERTAIN PARTS OF THE WORKFLOW AND DRAWS TO AI IN THE CONTEXT OF OUR PROCESS IN ORDER TO HAVE MORE CONFIDENCE THAT THERE'S A LEVEL OF DETERMINISM THAT IT WILL DO THE RIGHT THING. CAROLINE: LET'S TALK ABOUT HALLUCINATIONS, DOING THE RIGHT THING.
HAVE YOU GOT STATISTICS OF HOW YOUR OWN OFFERING TEAMMATES IS WORKING AND IMPROVING? PAIGE: WE ARE PAYING VERY CLOSE ATTENTION TO THE EVALUATIONS OF DIFFERENT MODELS AND HOW THEY PERFORM IN THE CONTEXT. WHAT I MOST EXCITED ABOUT IS THE WAY THE DATA MODEL WORKS. THERE'S A CONTEXT AROUND PEOPLE DOING THE WORK, WHO IS DOING WHAT WHEN AND THE TIMING OF THAT WORK AND THE ULTIMATE GOALS THEY ARE HEADING TOWARDS. WE SEE IS THE CONTEXT OF THIS WORK HELPS AI ENGAGE WITH MORE KNOWLEDGE SO INSTEAD OF SURVEYING A VAST AMOUNT OF DATA TRYING TO SURFACE SOME SUMMARY.
AI IS GIVEN A SPECIFIC SET OF INSTRUCTIONS. HERE'S WHAT WE ARE TRYING TO ACHIEVE. HERE'S WHAT I WANT YOU TO DO. I WANT YOU TO TRIAGE THIS REQUEST IF THERE'S ENOUGH INFORMATION SEND TO THIS TEAM. IF THERE'S NOT ENOUGH PUT IT OVER HERE.
I KNOW THAT I NEED DATA ON THIS. PLEASE DO SOME INITIAL DISCOVERY AND ANSWER ME THESE THREE QUESTIONS. THESE SORTS OF TASKS PEOPLE CAN CONFIDENTLY ASCOT AI TO DO IN THE CONTEXT OF WHERE THEIR TEAMS ALREADY GOING. WE'VE BEEN DIGGING FOR A LONG TIME ABOUT DUSTING THEM FOR A LONG TIME ABOUT THE CORONATION OF WORK ACROSS TEAMS AND ORGANIZATIONS. THAT'S A HARD JOB. IT'S ALWAYS COMPLICATED BUT COORDINATING WORK WITH AI IS THE FUTURE AND THERE NEEDS TO BE A STRUCTURED WAY TO UNDERSTAND WHAT IF WE ASK THEM TO DO.
DID IT DO WHAT WE ASKED AND SEE THE IMPACT OF THAT WORK. CAROLINE: PAGE COSTELLO, THANK YOU SO MUCH. COMING UP WE WILL GET THE LAY OF THE LAND AND WHAT TO EXPECT FROM TESLA SHAREHOLDER MEETING. PUSHING US FORWARD TO THAT. PUSHING TOWARDS WHAT EARNINGS WE HAVE COMING UP. BROADCOM AFTER THE BELL. 1.6% AI COMPANIES DOING WELL. THIS IS A REFLECTION OF THE
CHIPMAKER. GENERATION CHIPS. HOW WILL THEY BE REPORTING THEIR REVENUE INCREASE. EXPECTING A 38% INCREASE IN REVENUE FOR THE FISCAL SECOND QUARTER TO 2.1 MILLION. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: WELCOME BACK. A QUICK CHECK ON THESE MARKETS, WE HAVE RECORD HIGHS ACROSS THE BOARD LOOKING AT THE S&P 500 OR MONEY POURING INTO TECHNOLOGY STOCKS INTO THE BOND MARKET AS WELL. INFLATIONARY PRESSURES.
3.4% YEAR ON YEAR FOR THE CPI PRINT DOES THE PORES WERE SEEN IN THREE YEARS. WHAT SPACES THAT GIVE THE FEDERAL RESERVE TO CUT RATES LATER IN THE YEAR. WE HAVE THE FED ANNOUNCING THEIR DECISION IN A FEW HOURS TIME. CURRENTLY SEEING BITCOIN GETTING A MOVE HIGHER. 3.8% MOVING ONTO TO THE INDIVIDUAL MOVERS PRAYED A
TUSSLE AT THE TOP. MARKET CAPITALIZATIONS AT 3 TRILLION AND APPLE ECLIPSES MICROSOFT. BACK IS NUMBER ONE FOR APPLE ANOTHER 5%. EXTRAORDINAIRE REMOVE FOR SUCH A HUGE WEIGHTING OF THESE INDUSTRY -- INDICES. SO TOO IS NVIDIA AT MOST 4%. EXCEEDING $3 TRILLION. TESLA UP 4.3%. INTERESTING CALLS FROM CATHIE WOOD AS TO WHERE WE WILL SEE THIS PRICE TARGET, THE CALL FOR 2600 IS WHERE THEY SEE THAT.
WE HAVE MORE TO DIGEST WHEN IT COMES TO TESLA AND IT'S COMING IMMINENTLY BECAUSE WE HAVE A SHAREHOLDER MEETING TOMORROW. DURING WHICH ELON MUSK'S 56 BILLION DOLLARS PAY PACKAGE WILL BE VOTED ON AND A HEARING NOW FROM AN INVESTOR, ROSS GERBER JOINS US ALONG WITH THEIR VERY OWN WHO'S ALL IN ON ELON. THE VARIOUS COMPANIES HE CONTROLS.
ROSS, ARE YOU VOTING FOR OR AGAINST? ROSS: I VOTED AGAINST IT MOSTLY BECAUSE I FEEL LIKE IT'S A CONTINUATION OF THE DISASTER OF THE BOARD OF DIRECTORS TESLA'S CREATED BY DOING THE PAY PACKAGE WRONG THE FIRST TIME JUST TRYING TO RATIFY THE SAME THING IS CREATING A LOT MORE ISSUES AND PROBLEMS THEN IF THEY WOULD'VE DONE PAYPAL AND DONE THIS CORRECTLY THE FIRST TIME. AT THIS POINT PAYING ELON $50 BILLION WHEN USING THE PERFORMANCE FALTER AND HE'S MADE NO EFFORT TO SELL VEHICLES AND HUGE EFFORT JUST TO GET HIS $50 BILLION IT REALLY IS THE WRONG MESSAGE TO SEND TO SHAREHOLDERS AND CORPORATE GOVERNANCE, BASICALLY THIS IS A CASE STUDY IN HOW BOARDS OF DIRECTORS CAN BE SO HORRIBLE. CAROLINE: MAX YOU ARE TAKING RETURNS. THE SHARE PRICE IS STILL A LOT HIGHER THAN IT WAS IN 2018. HAS COME DOWN FROM ITS HEIGHTS
OF 2021. BUT YOUR PERSPECTIVE HERE ON BEING DISTRACTED. MAX: WE ARE LOOKING AT A CLOSE VOTE HERE. ON ONE HAND YOU HAVE HISTORICALLY ELON MUSK HAS BEEN ABLE TO GET ANYTHING HE WANTS FROM TESLA'S INVESTORS AND THERE HAS BEEN THIS FEELING AMONG INVESTORS WHEN INCLUDING ELON MUSK FRIENDS, LOYALISTS. BUT HE CAN BASICALLY DO
WHATEVER HE WANTS WHENEVER HE WANTS. HE HAS NOT PERFORMED WELL BY ANY NORMAL METRIC OVER THE LAST YEAR OR SO. THE STOCK IS DOWN, THERE ARE ALL THESE DISTRACTIONS. THE WALL STREET JOURNAL STORY TODAY JUST THE LATEST EXAMPLE. A SERIES OF MISFIRES, DIFFICULTIES WITH POOR STOCK PERFORMANCE AND AT THE SAME TIME HE IS ASKING FOR 56 BILLION DOLLARS.
HE WILL SAY THIS IS AN OLDER PAY PACKAGE, YOU LOOK AT THE FIVE-YEAR TRAJECTORY, NOT IF EVERY INVESTORS CAN BE SWAYED BY THAT. >> ALL THE WAY UP TO NEARLY 400 IN 2021. I'M INTERESTED IN YOUR VIEW OF HIM AS A LEADER RIGHT HERE AND RIGHT NOW. HE SAYS IF YOU DON'T GIVE ME MORE CONTROL OF THE COMPANY AT TESLA, I MIGHT WALK. WITHOUT WORRY YOU? ROSS: HE'S ALREADY DONE THAT AND THAT'S WHY THE PERFORMANCE OF TESLA HAS BEEN SO POOR IS HE IS NOT LOOKING AT TESLA. HE'S BEEN RECONSIDERING, FLIES IN, FLIES OUT.
IT'S JUST NOT RUNNING THE COMPANY COMPARED TO 2018 WHEN HE WAS SLEEPING THERE AND WORKING 20 TO BUILD THIS WONDERFUL COMPANY. I BENEFITED GREATLY FROM THE SUCCESS OF TESLA BUT I ALSO TOOK ENORMOUS RISK INVESTING WITH ELON OVER THE LAST 10 YEARS AND MANY THOUGHT THE COMPANY WOULD GO BANKRUPT FIVE YEARS AGO. I SUPPORTED AND THROUGH ALL THIS. SO THE FACT THAT BENEFITED GREATLY AS A SHAREHOLDER WAS A BYPRODUCT. THE RISK I WAS WILLING TO TAKE ON ELON AND THAT PAID OFF WAS GREAT BUT IT DOESN'T CHANGE WHERE WE ARE TODAY AND THAT'S THE ISSUE IS WHAT'S CAN HAPPEN TO TESLA IN THE NEXT FIVE YEARS. CATHY SEEMS OPTIMISTIC BUT IF YOU -- IF HE LEAVES THE COMPANY BECAUSE HE DOESN'T GET WHAT HE WANTS, WHERE WILL IT BE IN FIVE YEARS.
THE FACT HE HAS 00 BILLION OF NET WORTH IN TESLA, YET THAT IS NOT INCENTIVE ENOUGH TO WORK AT TESLA, HE MADE OVER $90 BILLION JUST IN GAINS FROM THE STOCK HE OWNED ALREADY. SO IT'S NOT LIKE HE HASN'T BENEFITED GREATLY FROM TESLA SUCCESS SO THIS IS WHY THIS WHOLE THING IS OUTRAGEOUS. BUT ULTIMATELY GET A COST SHAREHOLDERS $25 BILLION OF TAX THAT WE WILL HAVE TO PAY WHEN HE GETS THIS, BECAUSE THAT'S THE CONSEQUENCE THAT SHAREHOLDERS WILL HAVE TO PAY.
THIS IS A TOUGH SITUATION FOR SHAREHOLDERS. CAROLINE: THE SHAREHOLDERS YOU SPEAK TO, YOU SAID IT'S GOING TO BE A CLOSE CALL HERE. HAVE WE HEARD FROM THE BIG INSTITUTIONS AS TO WHETHER THEY SUPPORT HIM AND WHY WOULD THEY? MAX: BROADLY SPEAKING THERE ARE EXCEPTIONS TO THIS BUT YOU'VE A LOT OF INSTITUTIONAL INVESTORS OPPOSED TO THE PAY PACKAGE AND THEN YOU HAVE A LOT OF RETAIL INVESTORS, MANY OF THESE PEOPLE TESLA ENTHUSIASTS, PEOPLE WHO CARE ABOUT THE BRAND AND ABOUT ELON MUSK AND THEY ARE BY AND LARGE SUPPORTING ELON MUSK AT LEAST TO TALK ABOUT OUR REPORTING AND WHAT HE IS SAYING. TAKE THAT WITH A GRAIN OF SALT. DID THOSE THINGS ARE IN TENSION AND THE QUESTION IS WHO SHOWS UP TO VOTE AND HOW MANY OF THEM ARE THERE. TESLA HAS BEEN COMPLAINING -- WE TALKED WITH US ON THE PODCAST YOU HAVE VIDEOS, A VIDEO OF THE TESLA ROBOT TALKING TO PEOPLE SAYING AS WE SET ON THE PODCAST THE DROP YESTERDAY, THEY'VE BEEN CALLING TESLA EMPLOYEES.
SHOWING UP ON TWITTER IN SUPPORT OF THIS. SO THERE'S A LOT OF ACTIVITY IT'S MOST LIKE A POLITICAL CAMPAIGN. ROSS: I'VE GOTTEN CALLS IN EMAILS AND ALL KINDS OF ADS AND I WAS LIKE SO INSULTED THAT AFTER A YEAR OF SAYING TESLA NEEDS PR, TESLA NEEDS ADS TO SELL MODEL Y'S, THEN THEY PULL OUT ALL THE STOPS FOR HIS PAY. THEY HAVE A PR TEAM WORKING. I CAN'T EVEN TELL YOU HOW OBNOXIOUS IT IS THAT THIS IS ABOUT HIS PAY, THE RICHEST MAN IN THE WORLD. WHILE THE COMPANY IS LANGUISHING AND CAN SELL MODEL Y'S TO SAY THERE'LL -- SAVE THEIR LIVES AND THEY WON'T RUN AN AD. I THINK THIS HAS BECOME A REFERENDUM ON ELON AND IT REALLY SHOULDN'T HAVE BEEN. AND THIS IS REALLY JUST A
HORRIBLE SITUATION FOR TESLA SHAREHOLDERS. CAROLINE: CAN I DIG IN ON THE PR TEAM WORKING DOUBLE TIME. THERE IS THIS WALL STREET JOURNAL REPORT WHICH WAS CITED EARLIER IN THE SHOW WHERE ELON MUSK IS BEING ACCUSED OF PURSUING WOMEN WORKING OVER AT SPACEX. DOES THIS AFFECT HE WAS A SHAREHOLDER AT TESLA IN YOUR VIEWPOINT OF HIM AS A LEADER? ROSS: I DON'T THINK HE'S PURSUING WOMEN. I DON'T KNOW WHAT HE REALLY DOES BUT I WISH SHE WAS SPENDING MORE TIME WITH WOMEN TO BE HONEST. I THINK THAT WOULD HELP HIM GREATLY. IF IT WAS IN A POSITIVE WAY.
BUT I DON'T SEEM AS THIS TYPE OF PERSON. I THINK IS VERY FOCUSED ON HIS GOALS WHICH IS GETTING OFF OF EARTH, REPLACING THE HUMAN RACE WITH ROBOT AND LIVING ON MARS BY HIMSELF. I DON'T KNOW. BUT THEY DON'T TAKE THESE KIND OF CLAIMS, PERSONAL CLAIMS AS VALID UNLESS THERE IS PROOF OF THIS. >> I'M INTERESTED MAX ULTIMATELY WHERE WE GO AFTER THIS VOTE. IF IT'S A REFERENDUM ON ELON MUSK HIMSELF AND IT DOES NOT GO HIS WAY.
OR EVEN IF IT DOES GO HIS WAY IT DOESN'T ACTUALLY AFFECT WHETHER OR NOT THE MONEY GOES TO HIM. MAX: THIS IS NOT A BINDING VOTE. IT ALSO DOESN'T HAVE ANY LEGAL CONSEQUENCES. TESLA'S HOPE IS THE VOTERS OVERWHELMINGLY IN SUPPORT. THEY TAKE IT BACK TO THE
DELAWARE COURT AS PART OF THEIR APPEAL AND THAT'S THE PLAN, A NOVEL LEGAL STRATEGY TO SAVE THIS PAY PACKAGE THEY DON'T HAVE TO RENEGOTIATE. THE CHALLENGE HERE AND WHAT WILL BE DIFFICULT FOR SHAREHOLDERS AND TESLA EMPLOYEES IS IF IT DOES NOT GO HIS WAY WHERE DOES IT GO. BECAUSE WE KNOW FROM HAVING FALLEN EAT -- FOLLOWING ELON MUSK HE'S ALREADY MADE THREATS AS ROSS IS ALLUDING TO TO ESSENTIALLY TAKE HIS TALENTS ELSEWHERE. AND YOU DO WONDER IF HE'S FACED WITH A SMALLER PAY PACKAGE, HOW MUCH SMALLER WILL IT BE AND THEN IT BECOMES THIS CHALLENGE OF KEEPING THEM MOTIVATED WHICH IS FUNNY BECAUSE HE'S GETTING PAID A LOT OF MONEY ONE WAY OR ANOTHER AND ALSO HAS SAID IS TESLA IS HIS LIFE'S WORK. AI IS VERY HOT. THERE IS THIS THREAT SO YOU WORRY IF YOU ARE AN INVESTOR THAT HE IS GOING TO TAKE HIS BALL AND GO HOME. AND THAT COULD LEAD TO MASSIVE UPHEAVAL AT TESLA IF THAT WERE TO HAPPEN. CAROLINE:
WE THANK YOU, JUST GO AND LISTEN TO THAT PODCAST HOWEVER YOU CONSUME IT. MEANWHILE ROSS GERBER AS ALWAYS ANIMATED AND THOUGHTFUL ON THE SHOW. WE THANK YOU FOR CONTRIBUTING AHEAD OF A VOTE YOU ALREADY SAID NO TO.
COMING UP WE WILL BE JOINED BY SUSAN ON THE HILL -- HEELS OF ITS SUMMIT, ALL THINGS PRIVATE COMPANIES NEXT, THIS IS BLOOMBERG TECHNOLOGY. TIME FOR VC SPOTLIGHT. CO-FOUNDER AT BBG VENTURES IN TOWN SHOWING UP WITH THE ACCELERATE SUMMIT TAKING PLACE HUNDREDS OF FEMALE DIVERSE FOUNDERS ACROSS THE COUNTRY TO COME INTO NEW YORK TO TALK ABOUT RAISING MONEY AND LESSONS LEARNED AS FOUNDERS, TO HELP STEER EACH OTHER. WAS EVERYONE ALL IN ON AI. WAS THAT THE HOT TOPIC TO SHORE? >> IT WAS A TOPIC BUT IT WAS NOT THE TOPIC. COMPANY STARTING OUT RIGHT NOW
IS STARTING WITH SOME KIND OF AI BASIS. SO THEY HAVE THAT ADVANTAGE. BUT THE THINGS PEOPLE TALKED ABOUT MORE AND MORE, IT'S ALWAYS A CHALLENGE AND ONE OF THE THINGS WE HEARD OVER AND OVER AGAIN IS YOU THINK YOU KNOW WHAT THIS CUSTOMER NEEDS, EVERYBODY BILLS WHAT THEY THINK IS NEEDED IN THE MARKET AND YET WHAT YOU HAVE TO DO IS CONSTANTLY BE MAKING SURE THE FEEDBACK FROM THAT CUSTOMER BECAUSE FIVE TIMES OUT OF 10 YOU ARE OFF BY SOMETHING. IT MAY NOT BE COMPLETELY WRONG, BUT THERE WERE MULTIPLE FOUNDERS WHO TALKED ABOUT IT INCLUDING APRIL, THE CEO SPRING HEALTH NOW , A MULTIBILLION-DOLLAR UNICORN PORTFOLIO COMPANY. BUT SHE TALKED ABOUT HOW THEY STARTED OUT AND THIS IS A MENTAL HEALTH COMPANY, THEY DELIVER PRECISION MENTAL HEALTH CARE RIGHT NOW TO COMPANIES AND THEY STARTED OUT THINKING THEY WOULD DO SOFTWARE FOR DOCTORS TO BE ABLE TO FIGURE OUT WHAT KIND OF ANTIDEPRESSANTS TO PRESCRIBE.
THEY WOULD GO IN, THEY WOULD PITCH AND GET BLANK STARES. AND THEY WERE FINALLY TOLD BY SOMEONE YOU SHOULD MEET WITH OUR HR DEPARTMENT. THERE ARE SOME NEW DOCTORS AND NURSES HERE WHO NEED MENTAL HEALTH CARE.
>> DO THESE COMPANIES HAVE THE BANDWIDTH, THE MONETARY BANDWIDTH TO BE ABLE TO PIVOT, DO THEY HAVE YOU ALLOCATING TO COMPANIES. SUSAN: WE DO ALLOCATE TO COMPANIES BEFORE THEY HAVE THAT. YOU HAVE TO BECAUSE THAT'S WHAT YOU'RE DOING BETWEEN SERIES B AND SERIES A. BUT WE HOPE WE PICK THE FOUNDERS WHO HAVE THE RIGHT APPROACH TO IT AND YOU HAVE SOME DATA BACKING UP THE FACT THAT THERE ON THE RIGHT TRACK, IT'S NOT A PERFECT SCIENCE BUT WE HAVE A GOOD TRACK RECORD. CAROLINE:
WE KNOW YOUR MEDIA EXPERTISE FOR BBC NEWS, TV MORE BROADLY. AOL AND MARTHA STEWART, ACROSS MULTIPLE DIFFERENT LANDSCAPES, WHERE YOU ALLOCATING INTO. SUSAN: WE LOOK AT LARGE AREAS THAT NEED TRANSFORMATION. SO HEALTH CARE WORK, FINANCIAL INCLUSION OR CLIMATE AND OTHER SHARES OF CONCERNS. ALL LARGE MARKETS, MARKETS THAT NEED CHANGE. CAROLINE: BUT CLIMATE AND DARE I SAY BACKING DIVERSE FOUNDERS. HAS BEEN BUFFETED AROUND SOME.
ARE YOU STILL SEEING LP INSTITUTION INTEREST IN ALLOCATING TO SOLVE THOSE? SUSAN: WE THINK SMART LPS UNDERSTAND THIS IS NOT ABOUT DOING GOOD, THIS IS ABOUT LOOKING AT WHAT THE COUNTRY LOOKS LIKE NOW. MASSIVE DEMOGRAPHIC SHIFTS OF THE LAST COUPLE OF DECADES AND IF YOU WANT TO BACK PEOPLE WHO ARE BUILDING NEW COMPANIES YOU ARE PROBABLY CAN HAVE A COMPETITIVE ADVANTAGE IF YOU ARE SUPPORTING PEOPLE WHO ACTUALLY HAVE LIVED EXPERIENCE WITH THESE PROBLEMS IN THESE ISSUES. CAROLINE: MARTHA STEWART TALKING WITH HER LIVED EXPERIENCE YESTERDAY. THE LIVED EXPERIENCE FOR MOST ALLOCATORS IS EVALUATIONS, ABOUT THE REST OF THE SPACE. WHAT SORT OF CHECK ARE YOU HAVING TO RIGHT NOW FOR AN EARLY STAGE COMPANY? SUSAN: THERE ARE TWO DIFFERENT QUESTIONS THERE. WHAT SIZE ARE OUR SEED FOUNDERS GOING FOR AND THAT HAS GOTTEN BIGGER. IF YOU LOOK BACK FOR FIVE YEARS
AGO PEOPLE OR RAISING FOR 12 MONTHS OR 18 MONTHS, RAISING MAY BE $2 MILLION, $2.5 MILLION. WE SEE A LOT OF SEED RUNS THAT ARE FOUR OR $6 MILLION. IT'S NOT BECAUSE THEY ARE SPENDING MORE, IT'S BECAUSE THEY KNOW IN THIS MARKET THEY WILL HAVE TO PROVE MORE SO THEY NEED THAT RUNWAY. ANY 24 MONTHS OR 30 MONTHS, WE WRITE CHECKS ANYWHERE FROM $5,000 -- FIVE UNDER THOUSAND DOLLARS TO 5 MILLION. CAROLINE: THE FEDERAL RESERVE MAY BE LOOKING TO CUT RATES. BUT NEW RECORD HIGHS OF STOCKS? WHAT IS THAT MEAN IN TERMS OF MONEY COMING IN? SUSAN: WE HAVE NOT SEEN THAT HAPPEN YET. BUT MY HOPE IS ONCE INTEREST
RATES BEGIN TO COME DOWN THAT YOU WILL SEE MORE CAPITAL LEAVING THE PUBLIC MARKETS AND COMING INTO THE PRIVATE MARKETS AGAIN. CAROLINE: AND WHEN YOU'RE ALLOCATING, GREAT TO SEE A LITTLE BIT OF THE WORK AT THE EVENT YESTERDAY. WE APPRECIATE IT. COFOUNDER AND MANAGING PARTNER AT BBG. WE WILL TALK CONTENT NEXT. PARAMOUNT BACK TO SQUARE RUN -- SQUARE ONE. THIS IS BLOOMBERG TECHNOLOGY.
CAROLINE: SHERRY READ ZONE HAS DECIDED TO END LONG NEGOTIATIONS FOR A MERGER BETWEEN THE MEDIA COMPANY AND SKY DANCE MEDIA. LUCA JOINS US NOW. THE SAGA RUNS AND RUNS. >> THE RED STONES NEVER CEASE TO AMAZE US.
SHE PUSHED FOR THIS DEAL, SHE HAD OTHER OPTIONS. SHE DIDN'T ENGAGE SERIOUSLY WITH APOLLO OR WITH SOME OF THE PEOPLE LOOKING TO BUY THE FAMILY HOLDING COMPANY AND THAT THE LAST MINUTE SHE DECIDED SHE DID NOT WANTED. THERE WERE A LOT OF REASONS THAT I'VE HEARD AS TO WHY. ONE, DAVID ELLIS AT SKY DANCE HAD REVISED THEIR DEAL BECAUSE OTHER SHAREHOLDERS FELT LIKE THEY WERE CAN GET STIFFED.
SHERRY RED STONE WAS GOOD TO GET A GOOD DEAL AND THAT WOULD'VE -- THE NEW DEAL WOULD'VE PAID HER LESS. WERE NOT SURE HOW MUCH IT IS BUT IT HAD TO HAVE BEEN SOMETHING OF A FACTOR. THERE WAS A BUNCH OF LITIGATION, THEN I THINK THERE'S A PART OF IT WHICH WAS HER FAMILIES CONTROLLED THIS COMPANY FOR DECADES, IS SHE READY TO GIVE IT UP. SHE SAYS SHE IS BUT SHE WAS AT THE ALTAR AND RAN OFF. CAROLINE: A LEGACY QUESTION MANY FEEL AND ULTIMATELY IF SHE'S INCREASED OR ERODED VALUE OF THE MOMENT, SOME OUT THERE SAYING THIS HAS BEEN AN EROSION OF VALUE FOR PARAMOUNT WITH THE DEAL COULD HAVE GOT FOR THE BUSINESS. LUCAS: THERE IS NO GREAT DEAL FOR PARAMOUNT RIGHT NOW. THIS IS A BUSINESS THAT WAS
WORTH ABOUT $30 BILLION WHEN THEY PUT VIACOM TOGETHER, IT'S NOW LESS THAN 10. DEPENDING ON HOW YOU CALCULATE IT. NOBODY IS GOING TO GIVE THEM SOME HUGE DEAL THAT WILL MAKE INVESTORS A TON OF MONEY. YOU HAVE SOME INVESTORS WHO
MAYBE WANT IT TO BE OVER WITH AND ELLISON REPRESENTED A GOOD OPTION AND THAT HE WOULD INJECT CAPITAL IN THE BUSINESS. BUT A COMPLICATED ONE. SOME PEOPLE SEE IT AS BEING WAY TOO HIGH. CAROLINE: WE WONDER WHO ARE THE PLAYERS LEFT IN THE GAME WE HAD JEFFREY KATZENBERG ON THE SHOW EARLIER IN THE WEEK AND I ASK HIM ABOUT THE VALUE OF PARAMOUNT AND HE WAS LIKE IT SEEMED LIKE A GOOD DEAL AND THEN YOU TALK TO SOME PEOPLE GATHERING IN THE ROOM FOR BREAKFAST. >> I WENT TO AN EARLY BREAKFAST AND WENT TO BOB
IGER AND BRIAN ROBBINS. ALL OF THEM IN THE ROOM AT ONE TIME. THE CURRENT PARENT -- PRESIDENT OF PARAMOUNT, BOB IGER WHO'S WATCHING IT ALL. IT WAS QUITE A MORNING. CAROLINE:
WHAT DO YOU THINK THEY WERE TALKING ABOUT OR WHAT DO YOU THINK WILL BE DEALS THAT COULD BE MADE FOR INDIVIDUAL BITS OF STREAMING AND OTHER PARTS? LUCAS: THEY WILL TRY TO EXECUTE A STRATEGY THE OWNER WOULD'VE DONE ANYWAYS. IT WILL CUT COSTS AND LOOK FOR PARTNERSHIPS, BUT IT'S NOT CLEAR WHETHER THE THREE GUYS IN CHARGE RIGHT NOW WILL BE THERE FOR THAT LONG. IT SEEMS LIKE SHERRY REDSTONE IS STILL INTERESTED IN SELLING HER FAMILY HOLDING COMPANY DOING A SIMPLER DEAL. THAT'S NOT NECESSARILY GREAT NEWS FOR THE OTHER SHAREHOLDERS AT PARAMOUNT BUT WOULD BE GOOD FOR HER AND HER FAMILY.
IF SHE RE-ENGAGES WITH ONE OF THESE OTHER BIDDERS, THE FILM PRODUCER STEVEN PAUL BEING ANOTHER, THEN WE ARE SIGNING UP FOR MORE WEEKS OF NEGOTIATIONS AND STORIES AND ALL THAT. IF SHE DECIDES TO LET THE CURRENT LEADERSHIP TAKE A REAL RUN AT IT I THINK YOU WILL SEE A PAINFUL BUT NECESSARY CHANGE IN TERMS OF STRATEGY THE COMPANY WHICH JUST CAN'T FIGURE OUT STREAMING RIGHT NOW. CAROLINE: I'M TO LET THE AUDIENCE DECIDE WHICH VERSIONS OF EVENTS YOU WANT TO HAPPEN THE MOST. CERTAINLY SEVERAL NETFLIX DOCUMENTARIES TO BE MADE OF THIS SAGA. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY, DO NOT FORGET TO CHECK OUT OUR OWN PODCAST ON THE TERMINAL.
CHECK IT OUT ONLINE. THIS IS BLOOMBERG TECHNOLOGY.
2024-06-19 04:34
