SoFi Shares Surge and Amazon Cancels iRobot Deal | Bloomberg Technology
>> FROM THE HEART OF INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: CAROLINE HYDE IN NEW YORK. ED: I'M ED LUDLOW IN SAN FRANCISCO. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: SOFI SHARES ARE SURGING AFTER POSTING ITS FIRST-EVER PROFIT. OUR CEO CONVERSATION COMING UP. ED: THE IROBOT DEAL IS SCRAPPED AND THE CEO IS STEPPING DOWN. DETAILS ON WHY THE ACQUISITION
WAS TERMINATED. CAROLINE: AND TECH COMPANIES ARE TARGET THEIR HATS INTO THE IPO REVIVAL RING. WE TALK ABOUT REDDIT'S POTENTIAL PLANS AND ITS VALUATIONS.
FIRST, WE TALK ABOUT COMPANIES THAT ARE ALREADY PUBLIC AND TRADING. WAITING ON SO MUCH ECONOMIC DATA, FEDERAL RESERVE RATE DECISION, A LOT TO DIGEST, NOT TO MENTION THE EARNINGS COMING OUT THIS WEEK. THE NASDAQ UP ONLY ABOUT 10 POINTS. THE 10 FALLING THREE BASIS POINTS. INTERESTING AS WE ANTICIPATE THE TREASURY TO BE SIGNALING THEY WILL BE ISSUING MORE DEBT. A LITTLE BIT OF PURCHASING. THIS IS A BIT MORE GEOPOLITICAL TENSION.
MAYBE A FLIGHT TO SAFETY AS WE SEE OIL ON THE DOWNSIDE. CONCERNS OF INCREASED TENSIONS IN THE MIDDLE EAST, NOT TO MENTION U.S. PERSONNEL BEING KILLED IN JORDAN. WE SEE A LITTLE BIT OF A SPIKE HIGHER IN BITCOIN. UP 1.6%. WE ARE CLAWING OUR WAY BACK AFTER WHAT HAS BEEN A SELLOFF. THE BITCOIN SPOT ETF COMING INTO FOCUS. ED:
THE BIG DEAL IS AMAZON WALKING AWAY FROM ITS ACQUISITION OF IROBOT. I THINK WE KNEW THIS WAS COMING BASED ON ALL THE REPORTING. IROBOT IS DOWN SIGNIFICANTLY. ADDING TO THE FACT THAT AMAZON WALKED AWAY, AND THIS IS A CASE OF AMAZON JUMPING BEFORE IT WAS PUSHED BY EU REGULATORS. AMAZON IS CUTTING JOBS. THIS IS A PRETTY BIG SITUATION. WE WILL GO TO BRUSSELS AND SPEAK TO OUR REPORTER, AND THEN WE WILL GO TO SEATTLE TO GET AMAZON'S SIDE OF THE STORY.
AMAZON SHARES, LOOK AT THE MUTED REACTION. THE OTHER BIG MOVER TO THE UPSIDE IS IN THE EARNINGS CONTEXT. SOFI ON TRACK FOR ITS BIGGEST JUMP SINCE LATE JULY, AUGUST. PROFITABILITY FOR THE FIRST TIME ON A NET INCOME BASIS. THIS IS THE MILESTONE THE STREET WAS LOOKING FOR. A LOT GOING ON ON THE TECHNOLOGY SIDE OF SOFI'S BUSINESS, A LOT GOING ON ON THE LENDING AND FINANCING SIDE. WHO DO WE SPEAK TO?
CEO ANTHONY NOTO JOINS US NOW. THAT FIRST PROFIT WITH A NUMBER OF COMPANIES. WHAT WERE THE MAIN CONTRIBUTING FACTORS TO YOU GUYS HITTING PROFITABILITY ON A NET INCOME BASIS, HOW CONFIDENT CAN THE STREET BE THAT YOU WILL CONTINUE ON THIS ARC OF INCREASING POSSIBILITY -- PROFITABILITY? ANTHONY: THE MAIN THING IS THAT WE REACH SCALE IN AL-ANON LENDING BUSINESSES. WE HAVE THREE PROFITABLE SEGMENTS. WHEN I JOINED THE COMPANY SIX YEARS AGO WE WERE PRIMARILY A LENDER.
VERY PROFITABLE BUSINESS FOR US. WE HAVE ENTER THE TECHNOLOGY PLATFORM SERVICES BUSINESS WE ENABLE OVER 140 MILLION ACCOUNTS IN THE U.S. AND LATAM. WE ALSO SELL TO OTHERS. THE THIRD SEGMENT IS IT OUR
FINANCIAL SEGMENTS IS THAT SERVICES SEGMENT, INCLUDING SOFI MONEY, A CHECKING AND SAVINGS AT ACCOUNT, CREDIT CARD, INSURANCE. THOSE BUSINESSES REQUIRE SIGNIFICANT INVESTMENT OVER THE LAST SIX YEARS. WE HAVE NOW REACHED THE POINT WHERE THEY ARE 40% OF OUR REVENUE IN THE FOURTH QUARTER, AND THEY ARE PROFITABLE. THAT INFLECTION POINT HIT THIS QUARTER.
AS WE GO INTO 2024, WE BELIEVE BUSINESS WILL BE 50% LENDING, 50% TECH PLATFORM, FINANCIAL SERVICES, AND PROFITABILITY SUSTAINABLE. ED: YOU ARE BASICALLY SAYING 50% COMPOUND ANNUAL GROWTH ON THE FINANCIAL SERVICES BUSINESS OVER THIS PRETTY WIDE WINDOW, 2023 THROUGH 2026. WHAT GIVES YOU THE CONFIDENCE THAT YOU CAN SEE THAT FAR INTO THE FUTURE IN TERMS OF HOW YOUR COMPANY WILL GROW THAT SEGMENT? ANTHONY: JUST TO CLARIFY, I WAS SUGGESTING 50% OF REVENUE FROM LENDING IN 2020 FOUR, 50% FROM THE TWO OTHER DIVISIONS COMBINED, TECHNOLOGY PLATFORM SEGMENT AND FINANCIAL SERVICES SEGMENT. IN TERMS OF THE LONGER-TERM REVENUE GROWTH OUTLOOK, FORECASTING 75% GROWTH IN 2024, 20% GROWTH IN THE TECH PLATFORM. FROM 20 TO ME THREE TO 2026,
TECHNOLOGY PLATFORM TO COME DOWN TO 50%. TECHNOLOGY PLATFORM WILL BE MID-20'S, FINANCIAL SERVICES WILL COME DOWN TO 50%. THE REASON WE CAN SEE THAT IS WE UNDERSTAND OUR CUSTOMER ACQUISITION COST, HOW MUCH WE SPEND ON MARKETING. THAT DRIVE THE ADOPTION OF THE PRODUCTS. THEN THEY MONETIZE AT A RATE THAT WE HAVE SEEN. THEY ARE PRETTY STRONG
INDICATORS ARE WHAT THE FUTURE BRINGS IN TERMS OF THE GROWTH PERSPECTIVE. CAROLINE: ONE THING ON YOUR CALL THAT YOU MADE CLEAR TO ANALYSTS, NO ONE HAS GOTTEN THIS ECONOMY RIGHT IN THE LAST COUPLE OF YEARS. HOW DO YOU FEEL ABOUT THE MACROECONOMY? ANTHONY: WE ARE VERY CONSERVATIVE ABOUT THE MACRO OUTLOOK. I DON'T BELIEVE IT WILL BE THE
CASE THAT WE CAN HAVE SIX RATE CUTS, WHICH IS WHAT THE FORWARD CURVE SHOWS, AND A STRONG ECONOMY. IF WE GET TO SIX RATE CUTS, WE HAVE ON A PLUMMET PERCENT, LIKELY CONTRACTING GDP. IT'S MORE LIKELY THAT WE HAVE FEWER CUTS AND A STABLE ECONOMY. COMING INTO OCTOBER, MANY PUNDITS ARE TALKING ABOUT HIGHER FOR LONGER. 90 DAYS LATER THEY ARE TALKING ABOUT SIX RATE CUTS. IT IS REALLY HARD TO KNOW WHAT THE REAL OUTLOOK IS.
WE AREN'T TAKING A VERY CONSERVATIVE VIEW. WE CAN DO THAT GIVEN THAT THE DIVERSIFICATION WE HAVE ON THE LENDING BUSINESS AND OTHER BUSINESSES. WE ARE GOING INTO NEXT YEAR WITH TIGHTER CREDIT AND LOWER EXPECTATIONS. WE ARE REALLY JUST FORECASTING
MAINTAINING OUR REVENUE AND LENDING, NOT GROWING, THE OTHER BUSINESSES DRIVING THE GROWTH I MENTIONED. CAROLINE: WITH THAT GROWTH, YOU STILL HAVE THAT GOAL OF A 30% RETURN ON EQUITY, BEING IN THE TOP 10 OF FINANCIAL INSTITUTIONS HERE IN THE UNITED STATES. WHAT GETS YOU THERE IN TERMS OF YOUR UNDERLYING INVESTMENTS THAT YOU NOW NEED TO MAKE? ANTHONY: IN 2023, WE WERE ABLE TO GROW REVENUE 25%. WE JUST HIT OUR LONG-TERM EBITDA MARGIN TO GET TO THE RETURNED EQUITY OF 35%.
NOW WE JUST HAVE TO SCALE AGAINST OUR BOOK VALUE. WE INCREASED TANGIBLE BOOK VALUE BY MORE THAN $340 MILLION THIS YEAR. WE ARE LOOKING TO GROW FASTER NEXT YEAR. THE PROFITABILITY IS ABOUT SCALING THE REVENUE, WHICH WILL SCALE THE RETURNS ON THE EQUITY, THAT 30% YOU MENTIONED. WE HAVE BEEN IN THESE BUSINESSES FOR SIX YEARS NOW AND HAVE PRETTY GOOD LEADING INDICATORS ON WHAT IT TAKES TO DRIVE GROWTH.
THAT IS WHAT IS GIVING US CONFIDENCE IN OUR FORWARD OUTLOOK. ED: HAVE A COLLEAGUE IS TALKING ABOUT YOUR TECHNOLOGY BUSINESS. THIS IS THE BLOOMBERG TECHNOLOGY SHOW. WHAT ARE WE TALKING ABOUT WHEN WE SAY THAT SOFI IS A TECH COMPANY? WHAT IS THE STRENGTH THAT YOU HAVE THERE? ANTHONY: WE HAVE TO BUILD OUR OWN TECHNOLOGY. WE ARE A FINANCIAL SERVICES
COMPANY WITH NO PHYSICAL LOCATIONS, SO THE ONLY WAY OUR PRODUCT ARE DELIVERED IS THROUGH THE MOBILE APP OR DESKTOP SERVICES. BY DEFINITION, WE NEED TECHNOLOGY TO DO THAT. IN ADDITION, WE NEED PROCESSING AND OPERATING SYSTEM CAPABILITIES. WE BOUGHT A COMPANY IN 2020. GALILEO IS POWERING ABOUT 140
THOUSAND ACCOUNTS IN THE U.S. ALSO IT HAS DEVELOPED A WUITE OF API'S THAT ALLOWS A DEVELOPER TO TAP INTO THAT, BUILD A DIRECT DEPOSIT OR EARLY PAYCHECK, PAYMENT RISK PLATFORM. IN ADDITION TO THAT WE HAVE A TECHNOLOGY PLATFORM THAT IS A CORE THINKING TECHNOLOGY, THE OPERATING SYSTEM FOR PRODUCTS, MULTI-PRODUCT PLATFORM. WE USE IT FOR SOFI, BY NOW, PAY
LATER. THOSE ARE THE TWO MAIN PRODUCTS THAT WE SELL TO THIRD PARTIES. 140 MILLION ACCOUNTS IN THE U.S. AND LATAM. ED: YOUR GAINS ARE HOLDING AROUND 23%. I TALKED ABOUT THAT PSYCHOLOGICAL MILESTONE OF NET INCOME PROFIT. DO YOU FINALLY FEEL LIKE YOU ARE GETTING SOME CREDIT? YOU HAVE BEEN TALKING ABOUT THIS PLAN FOR A WHILE.
WE WERE TALKING ABOUT THE SAME THINGS NOW AS THE TWO PREVIOUS TIMES YOU WERE ON THE SHOW. ANTHONY: I THINK THE INFLECTION POINT IN THIS QUARTER IS, ONE, HITTING OUR LONG-TERM MARGINS OF EBITA. THAT GIVE PEOPLE A LONGER-TERM VIEW ON WHAT OUR PROFITABILITY COULD BE. SECOND IS 40% OF OUR REVENUE CAME FROM THE TECHNOLOGY PLATFORM BUSINESS AS WELL AS FINANCIAL SERVICES, WHICH MEANS 60% CAME FROM LENDING. AS WE GO INTO 2024, WE ARE CALLING FOR THAT'S WHAT TO BE 50-50.
THAT IS ALSO AN INFLECTION POINT. WHILE THERE IS A LOT OF TALK AND DEBATE ABOUT THE LOANS, FAIR MARKET VALUE ACCOUNTING VERSUS COST ACCOUNTING, THE REALITY IS IS OUR BUSINESS IS MORE THAN THAT. IT IS NOT BY ACCIDENT. WE EMBARKED ON A STRATEGY TO BE A ONE-STOP SHOP SIX YEARS AGO FOR ALL YOUR FINANCIAL SERVICES NEEDS. OUR MISSION IS TO HELP PEOPLE
ACHIEVE FINANCIAL INDEPENDENCE, WHICH MEANS GETTING THEIR MONEY RIGHT. WE HAVE TO DO THAT ACROSS BORROWING, US ENDINGS, SAVINGS, INVESTMENTS. YOU ARE SEEING THAT STRATEGY PLAY OUT IN DIVERSIFIED REVENUE AND HIGH PROFITABILITY SIX YEARS LATER. CAROLINE:
INTERESTINGLY, NOT IN CRYPTO ANYMORE, BUT ON A DAY LIKE TODAY, WHEN WE SEE THE AMAZON-IROBOT MERGER PUT ON ICE, AS SOMEONE WHO HELPED TO LEAD THE INVESTMENT BANKING AT GOLDMAN SACHS, WHEN YOU THINK ABOUT YOUR OWN ACQUISITION STRATEGY, CAN DEALS GET DONE RIGHT NOW IN THE WORLD OF TECH? ANTHONY: I THINK THEY CAN. WE ARE FOCUSED ON OUR STRATEGY AND EXECUTING ORGANIC GROWTH. WE FEEL WE HAVE REACHED THE POINT WHERE IT IS OURS FOR THE TAKING, AND THE OPPORTUNITY FOR US TO TAKE THE MOST IS UP TO OUR EXECUTION. MORE BROADLY, I BELIEVE THERE IS STILL M&A THAT WILL HAPPEN ACROSS BOTH TECHNOLOGY AND FINANCIAL SERVICES. FINANCIAL SERVICES, MORE CHALLENGE BECAUSE OF THE REGULATORY BACKDROP, BUT DEALS ARE GETTING DONE. THEY ARE GOING TO COURT, BUT PEOPLE ARE WINNING.
WHAT YOU SEE WITH THE BREAKUPS, IT'S ABOUT BUSINESS PERFORMANCE, NOT ABOUT REGULATION. THEREFORE, BUYERS BEING ABLE TO GET OUT OF THOSE DEALS. ED: WE APPRECIATE THE TIME THAT YOU SPENT TALKING THROUGH US YOUR OWN NUMBERS. CAROLINE: ANTHONY NOTO, THANK YOU. COMING UP, WE ARE DIVING INTO THAT REGULATORY ISSUE. AMAZON ABANDONING THAT $1.4 BILLION ACQUISITION OF IROBOT.
THAT IS NEXT. ED, WHAT ARE YOU WATCHING? ED: SHARES OF APPLE AND RIVIAN. WE REPORTED OVER THE WEEKEND THAT A LONG TIME APPLE EXECUTIVE HAS LEFT APPLE. MY UNDERSTANDING IS TODAY IS HIS FIRST DAY AT RIVIAN AS SENIOR VICE PRESIDENT OF VEHICLE PROGRAMS ACROSS PRODUCTS AND ENGINEERING'S. THIS IS SOMEONE WHO LED THE
HOME DEVICES UNIT IN APPLE, LED THE CAR PROJECT. RIVIAN HIGHER BY 3.5%. WAITING FOR THE COMPANIES TO CONFIRM THAT ONE. ED: AMAZON HAS SCRAPPED ITS PLANNED, $1.4 BILLION ACQUISITION OF IROBOT AFTER CLASHING WITH EUROPEAN UNION REGULATORS WHO THREATENED TO BLOCK THE DEAL.
IROBOT ANNOUNCED THAT THE CEO WOULD ALSO BE STEPPING DOWN AS THE COMPANY IMPLEMENTS A RESTRUCTURING PLAN THAT WILL RESULT IN 350 JOBS BEING CUT. HERE WITH THE LATEST IS SAM SULTAN IN BRUSSELS. EARLIER IN THE SHOW WE FRAMED THIS AS AMAZON JUMPING BEFORE THEY WERE PUSHED. WE KNOW THAT THE COMMISSION WAS
LOOKING AT THIS VERY CLOSELY AND PROBABLY WOULD HAVE BLOCKED THE DEAL. WHAT DID AMAZON OUTLINE IN THE REGULATORY FILING? SAM: GOOD TO JOIN YOU FROM BRUSSELS THIS AFTERNOON. WE WERE JUST DAYS AWAY FROM A POTENTIAL EUROPEAN UNION VETO OVER THIS $1.4 BILLION ACQUISITION FROM AMAZON. THE NEWS WAS THAT LAST WEEK AMAZON HAD HELD A MEETING WITH EU COMMISSION OFFICIALS, AND THE EU HAD SIGNALED IT WAS ITS INTENTION TO BLOCK THE DEAL.
THERE WAS A DEADLINE OF FEBRUARY 14 FOR THE EU TO COME TO A DECISION. AMAZON SEEMS TO HAVE JUMPED THE GUN AND DECIDED IT'S NOT WORTH SEEING THAT NEGATIVE PUBLICITY FROM THE EUROPEAN COMMISSION AND HAS WITHDRAWN FROM THE ACQUISITION. CAROLINE: WE HAVE HEARD BEFORE ABOUT CONCERNS SURROUNDING BIG M&A DEALS. TAKE A LISTEN TO WHAT SHE TOLD THE SHOW A FEW WEEKS AGO.
>> IN ANY MERGER, IT IS SO THAT IF WE HAVE CONCERNS, IT IS FOR THE BUSINESSES EITHER TO ADDRESS THESE CONCERNS BY DEBUNKING THEM MORE BY ADDRESSING THEM BY COMING UP WITH REMEDIES THAT WILL SOLVE THE PROBLEM. IF THE COMPANY SAYS WE WILL NOT COME UP WITH REMEDIES, THEN OF COURSE, WE EXPECT THEY HAVE GOOD ARGUMENTS THAT OUR CONCERNS SHOULD NOT BE SUSTAINED. AND WE ARE STILL IN THE PROCESS OF ASSESSING OUR CONCERNS COMPARED TO A SITUATION WHERE WE DO NOT HAVE A REMEDY TO THE CONCERNS WE HAVE DRAWN UP. CAROLINE: IT WAS INTERESTING, WE WERE TALKING TO ANTHONY NOTO, USED TO BE THE HEAD OF TMT AT GOLDMAN, NOW THE HEAD OF SOFI.
HE SAID DEALS NOT GETTING DONE IS LARGELY BECAUSE OF BUYERS REMORSE, IT IS NOT THE DEALS CANNOT BE DONE. FROM YOUR PERSPECTIVE, DO YOU THINK THAT'S TRUE? SAM: TO A CERTAIN EXTENT, ABSOLUTELY. WITH AMAZON AND IROBOT, THE EUROPEAN COMMISSION NEEDED SOMETHING SYMBOLIC TO SAY THAT IT COULD GIVE IT THE GREEN LIGHT. AS WE HEARD, IT CLEARLY WANTED SOME SORT OF A REMEDY TO BE FILED IN THE CASE. THE DEADLINE FOR THAT REMEDY PAST A COUPLE WEEKS AGO. AMAZON IN FACT OFFERED NOTHING
TO APPEASE THOSE ORIGINAL CONCERNS FROM THE EUROPEAN COMMISSION WHEN IT SAID IN NOVEMBER THAT THIS DEAL COULD RESULT IN A DISTORTION OF COMPETITION ON THE MARKET FOR ROBOT BLOCKING CLEANERS -- VACUUM CLEANERS, ALSO RESULT IN HIGHER PRICES. AMAZON DECIDED NOT TO COME FORWARD WITH ANY FORM OF CONCESSION IN THIS CASE. FROM THAT POINT ON, THE DEAL WAS DOOMED. GOING FORWARD, IT CREATES A LOT OF UNCERTAINTY IN THE BOARD ROOMS REGARDING THESE LARGE TECHNOLOGY MERGERS.
THIS ISN'T THE FIRST TIME THAT COMPANIES HAVE WITHDRAWN FROM A POTENTIAL DEAL AFTER GETTING INTENSE REGULATORY SCRUTINY. YOU MAY RECALL RECENTLY THAT ADOBE WALKED AWAY FROM THEIR $20 BILLION MERGER WITH FIGMA AFTER GETTING SIMILAR SCRUTINY OVER THAT DEAL. INDEED, THEY HAD TO PAY A $1 BILLION WALKAWAY FEE IN THAT CASE.
THIS TIME, AMAZON'S FEE IS A BIT CHEAPER, JUST $94 MILLION. NOT LUNCH MONEY AT LEAST. CAROLINE: CERTAINLY NOT FOR A COMPANY LIKE IROBOT WHO NOW HAS TO LAY UP 30% OF THE WORKFORCE AND THE CEO GOES. REALLY TO GET THAT UPDATE. SAM STOLTON IN BRUSSELS. COMING UP, DIGGING INTO COMPANIES THAT ARE STILL IN GROWTH MODE, WANT TO PROVE IT TO THE PUBLIC MARKETS. WE WILL DISCUSS WHAT 2020 FOUR HOLDS, AND WHETHER REDDIT WILL MAKE A DEBUT, AND THAT WHAT VALUATION? THIS IS "BLOOMBERG TECHNOLOGY."
CAROLINE: CODE 2020 24 FINALLY BE A BIT MORE OF A YEAR FOR TECH IPOS? REDDIT IS WEIGHING SOME FEEDBACK FROM EARLY MEETINGS FROM POTENTIAL INVESTORS. THE COMPANY BEING ADVISED TO TARGET AT LEAST A $5 BILLION VALUATION IF IT GOES PUBLIC. LET'S BRING IN SOMEONE WHO IS ON THE CUTTING-EDGE OF VALUATIONS. BREANNE LYNCH, GREAT TO HAVE YOU WITH US. THIS COMPANY RAISED MONEY AT A $10 MILLION VALUATION. COULD IT GET FIVE BILLION DOLLARS BY WHAT YOU ARE SEEING? >> IT WILL BE INTERESTING TO SEE. THE KEY THING THAT WE DON'T
HAVE THE ANSWER TO YET IS WHETHER OR NOT REDDIT IS PROFITABLE. WHEN THEY FIRST MADE PLANS TO GO PUBLIC IN EARLY 2022, TALKING ABOUT EVEN A 15 BILLION DOLLARS VALUATION, THEY WERE NOT YET PROFITABLE. SCRAPPED THOSE PLANS, COMING TO THE MARKET AGAIN. THAT WILL BE THE CRUX FOR WHERE THIS VALUATION PLAYS OUT.
WHEN WE LOOK AT THE COHORT OF TECH IPOS IN LATE 2023, THESE WERE ALL PROFITABLE COMPANIES. AND THEY STILL HAD LACKLUSTER PERFORMANCE. AT A MIDDLE, I WOULD ASSUME THAT REDDIT IS NEAR PROFITABILITY BUT THERE'S A LOT TO BE LEARNED. CAROLINE: ALSO TALKING ABOUT ARTIFICIAL INTELLIGENCE. WILL THAT DICTATE WHERE THE
COMPANY CAN COME AS A WINDOW OPENS UP IN 2024? BRIANNE: ANY COMPANY THAT CAN PLAY INTO THE A BUZZ WILL USE THAT. WHETHER THAT IS A MARKETING THING OR KEY PART OF THEIR BUSINESS IS A SEPARATE THING. WHEN WE ARE LOOKING AT REDDIT, WE ARE LOOKING AT THEIR ADVERTISING BUSINESS. AS A CORE SOCIAL MEDIA PLATFORM, THEY GENERATED OVER $800 MILLION IN REVENUE FROM ADVERTISING LAST YEAR, UP 20% FROM THE PRIOR YEAR. BUT THERE'S A LOT OF
COMPETITION FROM TIKTOK, META, OTHERS IN THE SPACE. I WOULD ALSO SAY THERE IS INVESTOR INTEREST IN THE SOCIAL MEDIA PLATFORMS. WE HAVE NOT SEEN ONE OF THEM GO PUBLIC SINCE PINTEREST IN 2019. THOSE STOCKS HAVE REALLY RALLIED. PINTEREST DEBUTED AT $10 MILLION, NOW TRADING AT A $25 BILLION VALUATION.
PERHAPS THEY ARE HOPING TO JUMP ON SOME OF THAT MOMENTUM. ED: HOW MUCH EMPHASIS DO YOU PUT ON THE IDEA THAT IF REDDIT DOES PULL THE TRIGGER, IT OPENS UP A BROADER IPO WINDOW FOR EVERYONE ELSE WAITING IN THE WINGS? BRIANNE: I THINK A LOT OF PRIVATE COMPANIES HAVE BEEN WAITING FOR THE HERO COMPANY TO COME OUT AND HAVE THIS VASTLY SUCCESSFUL IPO, WELCOME OTHERS TO FOLLOW. WE HAVE NOT SEEN THAT YET, SO THE COMPANIES THAT ARE CHOOSING TO GO PUBLIC NOW ARE TAKING ON A BIT OF A LEADERSHIP ROLE, HOPING TO PLAY THAT PART. WHAT WE ARE HEARING FROM THE HEADS OF NYSE, NASDAQ, THERE ARE LOTS OF COMPANIES THAT ARE STARTING THEIR ROADSHOWS, PUTTING PIECES IN PLACE BECAUSE THEY FEEL THE PRESSURE TO IPO, AND THEY ARE READY TO IPO. REDDIT, THIS IS A 19-YEAR-OLD
COMPANY. THERE IS BOTH A LIQUIDITY NEED FOR EARLY EMPLOYEES AND SHAREHOLDERS, AN INVESTOR ACCESS NEED FROM RETAIL INVESTORS, AS WELL. IF REDDIT GOES WELL, OTHER COMPANIES WILL LOOK TO FOLLOW. ED: LET'S SPARE A THOUGHT FOR REDDIT.
LOTS OF COMPANIES GO PUBLIC BECAUSE THEY WANT THEIR NAME OUT THERE. I DON'T THINK WE'VE BEEN TALKING ABOUT REDDIT FOR A LITTLE WHILE. DO YOU THINK THAT'S A GOOD STRATEGY TO GO TO MARKET WITH? BRIANNE: IT IS A STRATEGY THAT COULD REALLY BENEFIT THEM, ESPECIALLY GIVEN WHO THEIR PLATFORM IS. THEIR SUBREDDIT, WALL STREET BEATS, REALLY STARTED THE MOVEMENT. THERE IS A LOT AROUND PARTICULAR RETAIL INVESTING. ONE INTERESTING THING ABOUT
THIS IPO TO WATCH IS IF THOSE REDDIT ERS GET ON BOARD. WILL IT BECOME THE NEXT MEME STOCK? AT A MINIMUM, IS THERE INVESTOR INTEREST FROM THESE PLATFORM USERS? FROM A MARKETING AND BRAND PERSPECTIVE, THIS IPO CHATTER IS HOPING TO GET THEIR NAME OUT THERE. WHETHER OR NOT THAT TRANSLATES TO INVESTOR INTEREST, WE WILL SEE. ED: BREANNE LYNCH, HEAD OF EQUITIES, THANK YOU SO MUCH. AS WE POINT OUT, FIVE BUILDING WOULD BE HALF OF WHAT THEY RAISED LAST YEAR. WE ARE GETTING MORE ON THAT
DEAL BETWEEN AMAZON AND IROBOT THAT HAS BEEN SCRAPPED. PLUS, ADS ARE COMING TO AMAZON PRIME VIDEO. ALL THE DETAILS FROM OUR MAN IN SEATTLE. FROM SAN FRANCISCO AND NEW YORK CITY, THIS IS "BLOOMBERG TECHNOLOGY." ♪ CAROLINE: WELCOME TO BLOOMBERG TECHNOLOGY.
I AM CAROLINE HYDE. ED: YOU MENTIONED WE ARE TREADING WATER ON THE NASDAQ 100 BECAUSE IT IS A MEGA WEEK FOR MEGA CAP TECH EARNINGS. THAT'S WHAT YOUR CALENDAR LOOKS LIKE. JOIN US ON BLOOMBERG TECHNOLOGY, EVERY SINGLE DAY. WE WILL LOOK AHEAD AND REVIEW $10 TRILLION WORTH OF MARKET CAP REPORTING THIS WEEK. THOSE ARE THE NAMES THAT MOVE THE NEEDLE ACROSS EVERYTHING FROM THE AD SPACE, CONSUMER TECH , ENTERPRISE. IT'S GOING TO BE MASSIVE AND
THE AI STORY WILL BE WEAVED WITHIN THAT. AMAZON IS INTERESTING THURSDAY BUT THEY ARE IN THE NEW CYCLE RIGHT NOW. WE ARE FLAT ON AMAZON STOCK AS THEY SCRAPPED THAT $1.4 BILLION DEAL TO ACQUIRE IROBOT. BLOOMBERG HAS DONE A LOT OF REPORTING ON THE EUROPEAN COMMISSION, PROBABLY LIKELY TO BLOCK THIS DEAL ANYWAY. AMAZON MOVED FIRST. FROM IROBOT'S PERSPECTIVE, THE CEO
IS DEPARTING AND 350 JOBS OR SO WILL BE CUT. THE QUESTION IS DOES AMAZON LOSE ANYTHING BY NOT ACQUIRING IROBOT? THAT'S A TOUGH ONE TO ANSWER. CAROLINE: WE HAVE THE RIGHT PERSON TO ASK, LET'S GO TO SPENCER WHO COVERS AMAZON FOR US.
SPENCER, THE IDEA IS MAYBE THIS DEAL DID NOT GET DONE BECAUSE THERE IS BUYERS REMORSE. DO YOU FEEL THAT'S THE CASE? SPENCER: THAT'S A SHARP POINT. IF AMAZON FELT IT WAS WORTH FIGHTING FOR, THEY WOULD FIGHT FOR. THEY FIGHT FOR THINGS. THE FACT THEY ARE WALKING AWAY AND THEY ARE GOING TO TAKE THEIR SWIPE AT THE REGULATORY AGENCIES WHILE THEY ARE DOING IT. BUT REALLY THE ENTHUSIASM AROUND THE STEEL SOFTENED.
-- THIS DEAL SOFTENED. IF YOU THINK ABOUT WHEN THEY WERE GOING HEAVY ON THEIR CONNECTED DEVICES AND THERE WAS BUZZ AROUND THE CONNECTED HOME, A LOT OF THIS HAS FADED. IT SEEMS MORE LIKE A FAD. I HAVE ONE OF THESE ROBOTIC VACUUMS IN THE HOUSE AND IT SITS IN THE CORNER AND WE NEVER USE IT. I SAY GIVE ME THE VACUUM, I
WILL DO IT MYSELF. CAROLINE: I'VE GOT TWO AND OURS ARE ALWAYS BEING DEPLOYED. SPENCER: IT TAKES TOO LONG. AMAZON IS HAPPY TO HAVE A REASON TO WALK AWAY FROM THIS ONE. ED: YOU AND ALWAYS TRY -- YOU AND I ALWAYS TRY TO THINK HOLISTICALLY ABOUT AMAZON.
WHEN THEY DO SOMETHING, IT'S OFTEN TO BRING IT INTO THE WIDER ECHO SYSTEM, WITH PRIME OR ELECTS A -- ALEXA. THAT'S HARDER TO SEE WITH IROBOT. IT'S ABOUT ADS AND TURNING TELEVISIONS INTO SHOPPING CARTS. EXPLAIN YOUR THESIS. SPENCER: AMAZON TURNED ON AMAZON PRIME VIDEO AND THEY ARE EXPECTING US TO REACH 115 MILLION PEOPLE IN THE U.S. EACH MONTH. THEY ARE A LATECOMER TO CONNECTED TV. THEY WILL BE A BIG PLAYER AND
SELL A LOT OF ADS. IF THEY ARE GOING TO WIN, IT'S GOING TO BE GETTING PEOPLE TO ENGAGE WITH THE TV. THAT IS WHERE AMAZON IS IN A STRONGER POSITION THAN ANYBODY ELSE. THEY HAVE THE ONLINE STORE BEHIND IT. IT CAN FEATURE ALL KINDS OF INVENTORY AND IF YOU GET PEOPLE TO WATCH TV IN A DIFFERENT WAY, POTENTIALLY, THEY WILL SHOP FROM THE TELEVISION. SCAN A QR CODE ON THE TV AND GET TAKEN TO A PRODUCT PAGE ON THEIR AMAZON APP. OR EVEN THROUGH IN AUDIBLE TONES.
YOUR TELEVISION WILL BE SENDING MESSAGES THAT YOU CAN'T REALLY HEAR WHAT YOUR MIC COULD PICK UP ON IT AND TAKE YOU TO THE PAGE OR THE SHOPPING APP. IF THEY ARE GOING TO DIFFERENTIATE, THEY HAVE TO GET PEOPLE TO ENGAGE WITH THE TELEVISION. ED: THE STORY IS TITLED AMAZON'S AD, TURNING TV'S INTO SHOPPING CARTS. LET'S KEEP THE CONVERSATION
GOING WITH MELISSA, PRESIDENT OF THE AD CAMPAIGN MANAGING PLATFORM PACK VIEW. YOU HEARD SPENCER'S REPORTING. WE SHOWED YOU THE DATA. WHAT DO YOU SEE AMAZON DOING IN THIS CONVERSIONS OF EYEBALLS TO THE SCREEN TO ADS TO SHOPPING BASKETS? >> AMAZON HAS A HUGE ADVANTAGE WITH ALL OF THEIR DATA. NOT JUST BEING ABLE TO HAVE SHOP A BULL ADS BUT THE ABILITY TO TARGET PEOPLE. THEY KNOW WHAT YOU BOUGHT. THEY CAN SHOW YOU THE BEST AD. IF YOU ARE IN THE MARKET FOR
BABY BUMP'S AND FORMULA, YOU ARE A NEW MOM, THEY CAN SHARE AND SHOW YOU THE MOST RELEVANT ADS. -- BABY BOTTLES AND FORMULA, YOU ARE A NEW MOM, THEY CAN SHARE AND SHOW YOU THE MOST RELEVANT ADS. AMAZON HAS SUCH A GREAT ADVANTAGE WITH THE ABILITY TO HAVE RICH RETAIL MEDIA DATA AND SHOW YOU THE MOST RELEVANT ADS. CAROLINE: YOU HAVE $13 BILLION IN AD SPENDING TO OVERSEE THE ADDITIONAL -- YOUR ADDITIONAL MARKETING COME PAY. HOW MUCH OF THAT MONEY WILL BE PUT TO WORK ON AMAZON DO YOU THINK? >> THIS IS A VERY NEW PRODUCT. KEEP THAT IN MIND.
WE HAVE A LOT OF CLIENTS THAT ARE USING THIS NEW PRODUCT. RIGHT NOW, IT IS THE BIG BRANDS THAT ARE STARTING TO USE THIS. AMAZON'S AMBITION IS TO BRING THIS TO THE SMALLER BRANDS. AND DEMOCRATIZE THE ABILITY TO GET THIS THROUGH SELF-SERVICE.
YOU DON'T JUST HAVE TO GO THROUGH A THIRD-PARTY OR AGENCY. THEY ARE BRINGING THIS TO THE MASSES. THAT IS ALSO COMPELLING IN THAT NOT JUST THREE BRANDS -- BIG BRANDS WILL BE USING THIS BUT ULTIMATELY EVERYONE CAN GET INTO THIS SPACE. CAROLINE: SHOP A BOWL TV IS SOMETHING ASIA HAS TAKEN TO -- SHOPPABLE TV IS SOMETHING ASIA HAS TAKEN TO FORCE AND IT IS SOMETHING WE ARE STILL UNCOMFORTABLE WITH. IS THIS SOMETHING THAT YOU GIVE IT FIVE YEARS AND I WILL FORGET IT WAS EVER THIS WAY TODAY? >> RIGHT NOW, IT'S WEIRD. THAT EXPERIENCE IS ONE THAT WE
WILL HAVE TO GET USED TO. AMAZON WILL CONTINUE TO INNOVATE IN THIS SPACE. THREE, DURING EVENTS LIKE BLACK FRIDAY FOOTBALL, I DON'T KNOW IF YOU WATCHED IT THIS YEAR, BUT THERE WERE QR CODES ALL OVER THE PLACE. WHEN YOU ARE SITTING ON THE COUCH AND THINKING ABOUT SHOPPING ON A QR CODE, THAT'S MORE RELEVANT TO YOU. BUT WHEN WE ARE WATCHING A MOVIE AND WE SEE A QR CODE, ARE YOU GOING TO HAVE THAT DESIRE? THAT IS GOING TO DRIVE INNOVATION AND CHANGE. ONE IS CHANGING THE MINDSET OF CONSUMERS SO THEY GET MORE USED TO IT. AND TWO, THE FORMATS WILL CHANGE.
WE WILL CONTINUE TO INNOVATE. AMAZON WILL CONTINUE TO THINK ABOUT HOW CAN WE BRING THIS TO THE CONSUMER IN A WAY THEY WILL WANT TO USE IT? CAROLINE: MEANWHILE, COMING UP, WE WILL TALK ABOUT HOW -- THERE IS A DEPLETING NUMBER OF COMPANIES AT THE MOMENT. HOW IS THAT IMPACTING VC STRATEGISTS? ERIC WILL BE JOINING US. ♪ ED: THE WORLD'S LARGEST PRIVATE EQUITY FIRM, BLACKSTONE, IS SETTING ITS EYES ON AI DATA CENTERS AND IS ON A QUEST TO BECOME THE COUNTRY'S MOST SOUGHT AFTER LANDLORD TO BIG TECH AND THE WORLD'S BIGGEST BY POWER CAPACITY.
THIS IS INTERESTING. WE ARE TALKING ABOUT BLACKSTONE BECOMING AN AI PLAYER AND WE KNOW ALL ABOUT THE CLOUD CAPACITY FOR TRAINING AND INFERENCE. BUT WHAT WE ARE REALLY TALKING ABOUT, I THINK IS BLACKSTONE INVESTING IN AND CONTROLLING THE REAL ESTATE, ESSENTIALLY. >> EXACTLY. BLACKSTONE IS A HUGE REAL ESTATE PLAYER.
IT'S ACTUALLY KNOWN FOR GOING INTO THESE INDUSTRIES AND IDENTIFYING WHERE THERE IS A SHORTAGE OF SPACE RELATIVE TO DEMAND. IT HAS DONE THIS WITH WAREHOUSES WHEN THEY SAW THE COMMERCE BAND CREATE A BIG WAREHOUSE EMPIRE. IT DID THE SAME FOR SINGLE-FAMILY HOMES WITH HOUSING. -- FOR HOUSING. A FEW YEARS AGO, IT SAW THE DEMAND FOR DATA CENTERS.
IT KIND OF GOT LUCKY BY THE RISE OF GENERATIVE AI THAT MADE DEMAND EXPLODE. IT'S GOING ALL IN ON THIS BED, GIVING Q TS A LOT OF MONEY TO EXPAND AND BECOME THE BIGGEST DATA CENTER PROVIDER IN THE U.S. CAROLINE: A 10 BILLION DOLLAR TAKEOVER IN 2021, COMING HOME TO ROOST.
TELL US A LITTLE BIT ABOUT WHICH STATES LOOK APPETIZING TO BUILD OUT? KARA: ONE OF THE BIGGEST AREAS IS IN PHOENIX. THEY HAVE A GIANT DATA CENTER THERE. THEY ARE BUILDING BUILDINGS THAT HAVE BEEN COMPLEX AND THAT WILL BE THE CROWN JEWEL. WE HAVE A REPORT THAT MICROSOFT WILL BE ONE OF THE TENANTS THERE. THERE IS ANOTHER PART OF PHOENIX THAT IS 400 ACRES THAT THEY ARE TRYING TO DEVELOP. NORTHERN VIRGINIA HAS LONG BEEN
A DATA CENTER HUB BECAUSE IT IS WHERE INTERCONTINENTAL FIBERS CONNECTS. IT'S A HIGH-SPEED AREA. THEY ARE GROWING THERE. THERE IS A BIG PROJECT UNDERWAY CALLED THE DIGITAL GATEWAY, TRYING TO BUILD A CORRIDOR IN MANASSAS, VIRGINIA THAT HAS BEEN THE SUBJECT OF PUSHBACK FROM RESIDENTS. THOSE ARE SOME OF THE MAIN
GROWTH AREAS, BUT REALLY DIFFERENT SPOTS ACROSS THE COUNTRY. CAROLINE: MAYBE EVERYBODY WINS. MEANWHILE, LET'S TALK ABOUT AI OPPORTUNITIES MORE BROADLY. I WANT TO STAY FOR THE VC SEGMENT. IT'S GREAT TO HAVE SOME TIME WITH YOU TODAY, ERIC.
BEFORE WE GO INTO THE LANDSCAPE OF PUBLIC VERSUS PRIVATE, I WANT TO ASK YOU ABOUT WHERE YOU ARE PUTTING YOUR MONEY TO WORK, YOU ARE DOING DEALS, MUCH OF THAT WITH AI HERE IN NEW YORK. >> WE ARE NOT DOING PURE GENAI DEALS AT THE MOMENT. IT'S TOO EXPENSIVE AND TOO MUCH OF A FRENZY. IT'S HARD TO PICK A WINNER. HAVING SAID THAT, THE GREAT
MAJORITY OF THE COMPANIES THAT WE INVEST IN THESE DAYS ARE DATA-DRIVEN COMPANIES. SO, THEY EMPLOY AI IN MANY DIFFERENT FASHIONS. WE ARE DOING A LOT OF THAT. WE ARE DOING A LOT OF RENOVATION. WE HAVE TO DO QUITE A BIT OF CLIMATE AND CLEAN TECHNOLOGY, ASSET LIGHT.
WE CONTINUE TO DO A LOT OF HEALTH CARE BOTH ON THE CONSUMER AND ENTERPRISE-LEVEL. CAROLINE: YOU'VE BEEN MAKING NEW DEALS THAT I HAVE SEEN ON YOUR WEBSITE. I'M INTERESTED IN YOUR OWN EXPERTISE AND WHAT YOU KNOW -- WE KNOW IS HOW MUCH EXPERIENCE YOU HAVE IN MEDIA. THE FACT THAT YOU HAVE REALLY BUILT UP YOUR EXPERIENCE, HAVING BEEN AT THE LIKES OF THE HUFFINGTON POST. HOW MUCH IS AI GOING TO PLAY INTO THE FUTURE OF MEDIA? HOW MUCH IS IT DECIMATING IT? ERIC: WE HAVEN'T DONE A NEW-MEDIA INVESTMENT IN A NUMBER OF YEARS, MAYBE TWO OR THREE YEARS. ONE OF THE REASONS IS MEDIA IS IN SHAMBLES AT THE MOMENT. AS YOU CAN TELL FROM THE
LAYOFFS THAT HAVE BEEN HAPPENING AND THE SWITCH IN BIG FLAT THAT -- BIG PLATFORMS. TO YOUR QUESTION, AI IS GOING TO HAVE A BIG ROLE, GOOD OR BAD, IN THE MEDIA SPACE. THAT IS STILL TO BE DETERMINED. WHAT IS AN AI DRIVEN STORY? WHAT'S TRUE AND WHAT'S NOT TRUE? WHAT NEEDS TO BE COPYRIGHTED AND WHAT SHOULDN'T BE COPYRIGHTED? ALL OF THESE QUESTIONS LOOM REALLY LARGE IN THE MEDIA INDUSTRY. AND IT’'S GOING TO TAKE A FEW YEARS TO SORT THIS OUT. ED: GOOD MORNING FROM SAN FRANCISCO.
WE WERE SHOWING YOUR PORTFOLIO. I WAS INTERESTED IN WHAT YOU SAID ABOUT ELECTRIFICATION AND ASSET LIGHT MODEL. ONE OF THE NAMES IS ZIPLINE. I'M ALWAYS CURIOUS ABOUT
ZIPLINE. I ALWAYS BUMP INTO THE CEO AT SUN VALLEY. IS IT A BILO CANDIDATE? -- IS IT AN IPO CANDIDATE? ERIC: IT WILL BE GIVEN ITS SIZE, SCALE AND GROWTH TRAJECTORY.
THEY ANNOUNCED A BIG DEAL WITH WALMART, THE DALLAS AREA, WITH THEIR DRONES. -- IN THE DALLAS AREA WITH THEIR DRONES. WE ARE BEYOND THE PILOT STAGE, THE TRIAL STAGE. WE ARE AT THE STAGE WHERE YOU CAN IMPLEMENT THESE KINDS OF DELIVERIES AND DO IT ON SCALE. ED: WE HAVE BEEN TALKING A LOT ON THE PROGRAM TODAY ABOUT REDDIT. WE UNDERSTAND THAT IT IS TALKING TO THE BANKERS AND TALKING TO ITS INVESTORS AND SAYING IF WE IPO, WHERE SHOULD WE DO IT FROM A VALUATION PERSPECTIVE? $5 BILLION IS ABOUT RIGHT, DOWN FROM THE TILL BILLION -- THE 10 BILLION THEY RAISED LAST TIME.
WE ARE TRYING TO UNDERSTAND IF IT'S A STARTING GUN. HAVE ME THE OUTLOOK ON THE THESIS FOR THAT THIS YEAR. ERIC: THERE'S NOTHING ABOUT THE TRUTH OF THEM GOING PUBLIC.
$5 BILLION VALUATION, FIVE X ON THAT, SEEMS REASONABLE TO ME. OBVIOUSLY, THERE'S A LOT WE DON'T KNOW. WE DON'T KNOW THE GROWTH RATE OR THE BOTTOM LINE THAT WELL. IT COULD BE MORE THAN $5 BILLION IF THE GROWTH RATE IS HIGHER AND IF THE COMPANY IS PROFITABLE. BUT $5 BILLION AT THE MOMENT, GIVEN WHAT WE KNOW, SEEMS LIKE A REASONABLE VALUATION. CAROLINE:
INTERESTING AS WE GET THIS BREAKING ACROSS THE IPO SPHERE, I'M LOOKING AT HOW R ENAULT BUILT A SPINOFF. THEIR INTENTION WAS TO IPO THIS UNIT. WE KNOW THEY ARE NOT GOING TO BE SEEKING AN INITIAL PUBLIC OFFERING IN THE NEAR TERM BECAUSE OF CURRENT EQUITY MARKET CONDITIONS. BASICALLY, THE VALUATION WON'T BE RIGHT AND THERE IS TOO MUCH VOLATILITY.
HOW MUCH WILL THAT BE THE THEME AND HOW MUCH DO YOU WORRY THAT THIS WINDOW ISN'T GOING TO OPEN? ERIC: THIS HAS BEEN THE PROBLEM WITH THE IPO MARKET FOR A COUPLE OF YEARS, WITH THE EXCEPTION OF TWO YEARS AGO WHEN WE HAD THE SPAC'S AND THE FAILURE OF THE SPAC'S STRUCTURE. WE HAD TO GO TO THE DOLDRUMS WHEN IT COMES TO BEING ABLE TO GO PUBLIC. THAT'S REALLY DANGEROUS. IT IS OBVIOUSLY DANGEROUS IN MY BUSINESS, BECAUSE WE EXPECT AN EXIT, WHETHER IT IS AN M&A OR AN IPO. WE HAVE NOT HAD LESS THAN HALF OF THE PRIVATE COMPANIES THAT WE HAD IN THE MID-1990'S. TODAY, THERE IS LESS THAN 4000. THAT NUMBER KEEPS SHRINKING.
WHAT DOES IT MEAN TO BE IN A WORLD WHERE WE HAVE FEWER AND FEWER PUBLIC COMPANIES AND IT'S HARD TO GO PUBLIC? I DON'T THINK THAT IS FAVORABLE TO THE ECONOMY. ED: THIS IS VC SPOTLIGHT AND THE STORY OF 2023 WAS A DROP IN ACTIVITY. VOLUME OVER DOLLAR PERSPECTIVE FOR VENTURE BACKED DEALS.
THERE SEEMS TO BE SOME KIND OF STABILIZATION. AI HAD SUCKED ALL OF THE OXYGEN OUT OF THE ROOM. ARE YOU BACK TO WRITING CHECKS ACROSS A BROADER RANGE OF SECTORS NOW? ERIC: WE ARE. WE'VE BEEN BACK I WOULD SAY SINCE THE MIDDLE OF LAST YEAR. FOR US, IT'S NOT A QUESTION OF
LACK OF OPPORTUNITIES BECAUSE WE SEE THOUSANDS OF NEW COMPANIES EVERY YEAR AND WE MAKE 15-20 NEW INVESTMENTS EVERY YEAR. IT WAS BECAUSE THE VALUATIONS WERE STILL TOO HIGH. WE ARE VERY EARLY INVESTORS. GETTING STARTED WITH THE RIGHT FOOTING, ON THE RIGHT FOOTING WITH THE RIGHT VALUATION IS CRITICAL. WHAT WE ARE SEEING NOW IS THERE IS MUCH MORE REALISM IN THAT WORLD AND PEOPLE ARE BEING MORE REASONABLE, AS FAR AS VALUATIONS ARE CONCERNED. WE ARE BACK ON TRACK IN TERMS OF MAKING OUR REGULAR NUMBER OF INVESTMENTS.
WHERE THE MARKET IS STILL SHOCKED IS ON THE MAIN STAGE. IF YOU TAKE CRC'S AND BEYOND, IT'S HARD TO BE A COMPANY FINANCED AT THAT LEVEL. WHETHER THIS OPENS UP AGAIN IN 2024, IT'S TOO EARLY TO TELL. ED: A LOT OF EXPERIENCE IN A BROAD CONVERSATION. WE APPRECIATE IT. THANK YOU. COMING UP, X IS TRYING TO STOP THE SPREAD OF FAKE IMAGES OF TAYLOR SWIFT. WE WILL HAVE A CLOSER LOOK AT DEEPFAKE TECHNOLOGY, NOT JUST ON BUT ON SOCIAL MEDIA MORE -- NOT JUST ON X BUT ON SOCIAL MEDIA MORE BROADLY.
CAROLINE: BREAKING NEWS WHEN IT COMES TO THE SHARES OF DELIVERY HERO. THEY WILL BE SELLING UP TO 68 MILLION DELIVER OO CLASS A SHARES. SOME EUROPEAN ACTION WHEN IT COMES TO FOOD DELIVERY. MEANWHILE, LET'S TALK ABOUT SOCIAL MEDIA AND WHAT'S HAPPENING RIGHT HERE IN THE U.S. AND MORE BROADLY, WORLDWIDE. X IS BLOCKING SEARCHES OF TAYLOR SWIFT.
THAT'S AFTER PORNOGRAPHIC DEEPFAKE IMAGES OF THE SINGER HAVE CIRCULATED ONLINE. THIS IS AS CONSUMER PROTECTION IS FRONT AND CENTER. A NUMBER OF COMPANIES ARE SCHEDULED TO APPEAR BEFORE THE SENATE TO TESTIFY ABOUT PROTECTING CHILDREN ONLINE. ALEX, YOU'VE BEEN INCREDIBLY BUSY WITH 2024 AND DEEPFAKES, WHETHER IT IS A VOICE OF BIDEN OR FAKE PORNOGRAPHY INVOLVING TAYLOR SWIFT AND THERE IS JUST NO REGULATION FOR IT. >> JANUARY WAS THE MONTH OF DEEPFAKE AI VIDEOS ON SOCIAL MEDIA, ON THE HEELS OF TAYLOR SWIFT EXPLICIT IMAGES GOING VIRAL ON NEXT LAST WEEK, -- ON X, WE SAW THE SLOW PROCESS OF TAKING DOWN THESE IMAGES. THAT TAYLOR SWIFT DEBACLE ON
WEDNESDAY WAS JUST DAYS AFTER ROBO CALLS OF BIDEN WENT OUT TO NEW HAMPSHIRE VOTERS. THEY WERE FAKE AND URGING VOTERS TO HOLD THEIR VOTES AND NOT GO TO THE POLLS, WHICH IS NOT HOW THE ELECTION WORKS HERE IN THE STATES. WE ARE STARTING TO SEE THE REAL IMPLICATIONS. THOSE OF US IN THE TECH INDUSTRY HAVE BEEN SEEING THIS HAPPEN ACROSS THE INTERNET. THIS PAST MONTH, IT SEEMS LIKE THE PUBLIC IS SEEING SOME HIGH-PROFILE EXAMPLES OF WHAT HAPPENS WHEN AI HITS SOCIAL MEDIA WITH BAD ACTORS TRYING TO PUT OUT EITHER FAKE OR DAMAGING INFORMATION. ED:
WHAT'S THE AIM OF THIS COMMITTEE HEARING? WHAT DOES D.C. WANT TO GET OUT OF IT? >> THE CEOS OF META, X, DISCORD AND SNAPCHAT WILL BE AT A COMMITTEE FOCUSING ON CHILD SAFETY. -- A COMMITTEE HEARING, FOCUSING ON CHILD SAFETY. THIS IS NOT MY FIRST HEARING AND I CAN TELL YOU GUYS, I BET THERE WILL BE QUESTIONS OUTSIDE OF KIDS SAFETY AS WELL. TIKTOK AND ITS CHINESE PARENT OWNER ALWAYS IS A HOT BUTTON ISSUE. WE MIGHT SEE SOME QUESTIONS
DIRECTED TO THE CEO OF TIKTOK'S WAY AROUND CHINA AND DATA PROTECTION. AND ALSO, AFTER THIS DEEPFAKE DEBACLE ON X, I WOULD EXPECT LINDA TO GET SOME POINTED QUESTIONS, PARTICULARLY AROUND WHY SOME OF THESE POSTS GOT 47 MILLION VIEWS AND TOOK ALMOST A DAY TO GET DOWN. CAROLINE: WE THANK YOU FOR THE REPORTING ACROSS ALL OF THAT.
THAT DOES IT FOR THIS EPISODE OF "BLOOMBERG TECHNOLOGY."
2024-01-30 16:52
