TikTok Bill Heads to Senate, Chaos Erupts at Tesla | Bloomberg Technology
ANNOUNCER: FROM THE HEART OF WHERE MONEY, AND INNOVATION COLLIDE IN SILICON VALUE, THIS IS "BLOOMBERG TECHNOLOGY" WITH CAROLINE HYDE AND ED LUDLOW. CAROLINE: I AM CAROLINE HYDE IN NEW YORK. ED: I AM ED LUDLOW IN SAN FRANCISCO.
THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: LEGISLATION CLEARS THE HOUSE AND HEADS TO THE SENATE. TIKTOK PREPARES TO TAKE IT TO THE COURTS.
WE WILL HAVE FULL COVERAGE AHEAD. ED: PLUS, WE TAKE A DEEP DIVE INTO TESLA AS ELON MUSK SHIFTS THE COMPANY'S FOCUS. WE ARE BRINGING YOU FINDINGS. CAROLINE: THE COMPANY STRUGGLED TO AGREE ON TERMS OF THE DEAL ACCORDING TO SOURCES. WE WILL DISCUSS THAT AND MUCH MORE.
FIRST, WE CHECK ON MARKETS. CALM BEFORE AN EARNINGS STORM. NASDAQ UP .1%. A LOT OF AUCTIONS ON DECK WHEN IT COMES TO DEBT IN THE UNITED STATES AND WHAT THAT MEANS FOR SUPPLY AND BORROWING COSTS TO THE HIGH SIDE. WE ARE STEADY AT 4.62%. WHAT OF CHINA-U.S.? WE WILL DIG INTO THAT.
THE VIX AT AN 18 HANDLE. WE HAVE SEEN LESS OF AN AGGRESSIVE BID INTO RISK ASSETS. BWE ARE STILL UP BROADLY. THIS IS AFTER THE HALVING WITHOUT A HITCH. A PULLBACK IN BITCOIN MINING MAY MEAN AN UPTICK IN PRICES.
WHAT ARE YOU WATCHING? ED: A FIRM FOCUS ON TESLA. WE ARE AT SESSION LOWS DOWN 4.6%, DOWN FOR A SEVENTH STRAIGHT DAY. PRICE CUTS AROUND THE WORLD OVER THE WEEKEND. LAYOFFS CONTINUE. FSD DOWN TO $8,000 IN THE UNITED STATES.
WE WILL BRING YOU THE BIG TAKE LATER IN THE SHOW WHERE WE HAVE REPORTED NEW INFORMATION ABOUT THE LAYOFFS, ROBOTAXI, CHEAPER EV MODEL. IN 24 HOURS, WE HAVE ONE OF THE MOST IMPORTANT EARNINGS CALLS IN TESLA'S HISTORY. THE OTHER BIG STORY WE ARE TRACKING IS THE DIVEST TIKTOK BILL ON THE HILL. WE PASSED AT HOUSE OVER THE WEEKEND. THE EXPECTATION IS IT WILL PASS THE SENATE IN THE COMING DAYS.
OUR RESEARCHERS ARE SAYING THERE IS A 90% CHANCE IT WILL GO TO THE SENATE AND BE PASSED INTO TLAW. THESE ARE PUBLICLY TRADED SOCIAL MEDIA NAMES. THE LANDSCAPE FOR SOCIAL MEDIA IN THIS COUNTRY IS FRONT AND CENTER THIS WEEK. CAROLINE: ALSO, WHAT IS HAPPENING ABROAD. THE E.U. OPENING A NEW INVESTIGATION INTO TIKTOK. THE SENATE IS EXPECTED TO VOTE ON THE LEGISLATION REQUIRING TIKTOK'S CHINESE PARENT COMPANY TO DIVEST OWNERSHIP STAKE IN THE APP.
PRESIDENT BIDEN HAS SAID HE WILL SIGN THE LEGISLATION IF IT GETS THROUGH. IT LOOKS AS THOUGH THIS IS KIND OF A DONE DEAL NOW. >> IT DOES. THIS BILL PASSING SEEMS ALMOST INEVITABLE. PRESIDENT BIDEN HAS SAID HE
WILL SIGN IT IMMEDIATELY. TIKTOK IS ALREADY SCRAMBLING. OVER THE WEEKEND, WE BROKE THE NEWS THE GENERAL COUNSEL IN THE U.S. FOR TIKTOK WHO HAS BEEN IN CHARGE OF CONVINCING THE NATIONAL SECURITY INTERAGENCY COMMITTEE THAT TIKTOK ARE DOING ENOUGH TO PREVENT USER DATA FROM GETTING TO CHINA IS BEING PUSHED OUT OF HIS ROLE. CHANGES ARE HAPPENING INTERNALLY. THE COMPANY IS SENDING MEMOS TO
EMPLOYEES PROMISING IF THE BILL PASSES THIS WEEK IT WILL NOT BE THE END OF THE STORY. FINANCE AND TIKTOK BOTH INTEND TO FIGHT THIS TO EVERY EXTENT POSSIBLE BEFORE CONSIDERING DIVESTITURE OR SEPARATION FROM THE PARENT COMPANY. ED: I TALKED ABOUT THE BLOOMBERG INTELLIGENCE ASSESSMENT OF WHETHER THIS WILL BE PASSED INTO LAW, 90%. OTHER ANALYSIS IS IF THERE WERE TO BE A LEGAL CHALLENGE BY TIKTOK AND U.S.
USERS, THEY ASSIGN A 70% CHANCE THE U.S. GOVERNMENT WILL BE SUCCESSFUL IN COURT. OVER THE WEEKEND, WE HAD INTERNAL NEWS AT TIKTOK. WHAT ELSE HAVE YOU REPORTED? >> THOSE PRESSURES ON THE LEGAL SIDE, IT IS INTERESTING TO SEE THOSE NUMBERS. THERE ARE A NUMBER OF LEGAL AVENUES TIKTOK MIGHT TAKE. WE SAW THAT WHEN MONTANA LOOKED
TO BAN THE APP STAND BEHIND USERS THAT SUIT. THERE MIGHT BE SMALL BUSINESSES OR OTHER ORGANIZATIONS THAT FEEL THEY ARE BEING HARMED. THE PRESSURE IS ON THE U.S. THIS MORNING, THE EUROPEAN U NION OPENED A NEW PROBE INTO THE NEW APP. YOU ARE NOT ONLY DEALING WITH THIS INEVITABLE PASSAGE OF THE BILL THAT BLOOMBERG INTELLIGENCE PUTS AT 90% PASSAGE, YOU ARE ALSO HAVING TO FEND OFF CONTINUED PUSHES FOR FINES, SCRUTINY OVER PRIVACY, AND JUST THE UNPRECEDENTED ATTENTION THIS MOVE BY THE U.S. CONGRESS HAS MADE AND PERHAPS HAS GOTTEN LAWMAKERS IN OTHER GEOGRAPHIES THINKING IF THE U.S. IS DOING THIS, SHOULD WE BE TAKING A CLOSER LOOK? ED: ALEX BARINKA LITERALLY MINUTE BY MINUTE REPORTING ON THIS.
IT WILL BE A BUSY WEEK FOR YOU. LET'S THE FOUNDER AND CEO OF THE E-COMMERCE MARKETING PLATFORM FOR MULTICHANNEL BRANDS. YOU UNDERSTAND THE USERS' INTEREST IN TIKTOK, THE POTENTIAL OF TIKTOK, AND THE COMPETITION. I TALKED ABOUT THE CHANCES OF
THIS BILL PASSING. I BELIEVE YOU SEE IT PASSING AS WELL. >> ABSOLUTELY. IT WILL BE THE BIG HEADLINE THIS WEEK THAT THE BAN WILL LIKELY HAPPEN. WE DO NOT BELIEVE THIS IS THE END OF THE STORY.
TIKTOK HAS BECOME ONE OF THE MOST POWERFUL PLATFORMS IN THE WORLD. ON ANY GIVEN DAY, WE SEE TIKTOK AS OUR SECOND MOST TRAFFICKED PLATFORM. META NUMBER ONE, TIKTOK NUMBER TWO. TIKTOK DID NOT INTRO THE CULTURAL SITE DICED UNTIL 2019. FAST-FORWARD TO TODAY, IT HAS LEAPFROGGED YOUTUBE, SNAP, PINPRICKS -- PINTEREST, AND X. WE DO NOT BELIEVE THIS WILL BE THE END OF TIKTOK. TIKTOK WILL FIGHT THIS THE WAY THEY DID WITH TRUMP IN 2020 MONTANA LAST YEAR.
IT WILL CREATE TIME FOR DIVESTITURE TO COME TO LIGHT. WHY WOULDN'T WALMART OR MET TO MAKE A LAND GRAB FOR THIS? CAROLINE: BECAUSE CHINA WILL NOT LET THEM. CHINA MIGHT NOT SELL IT OR WOULD NOT LET THEM HAVE ACCESS TO THE TECHNOLOGY. MAYBE THEY ARE ABLE TO BUY IT IN THE U.S.. THEY STILL HAVE A YEAR IF THIS GOES PAST THE SENATE, THEY HAVE A YEAR TO SELL THEMSELVES. TO ANY OF THE 1200 BRANDS THAT USE YOU START TO PULL BACK ON THEIR INVESTMENT IN TIKTOK AT ALL? >> THIS HAVE BEEN PART OF THE DIALOGUE FOR THE PAST YEAR, THAT A BAN COULD HAPPEN. FOR SOME ADVERTISERS, WE HAVE
SEEN A SLIGHT PAUSE. THAT SAID, TIKTOK TRAFFIC AT MIKMAK HAS GROWN 40% YEAR-OVER-YEAR. WE CONTINUE TO SEE FORTUNE 1000 BRANDS INVEST IN THE PLATFORM. NOT ONLY ARE THEY INVESTING IN IT FROM AN ADVERTISING STANDPOINT, THEY ARE STARTING TO INVEST IN TERMS OF A STANDALONE COMMERCE CHANNEL WITH THE ADVENT OF TIKTOK SHOPS.
WE ARE NOT SEEING BRANDS PULL BACK. THE REALITY IS WITH ADVERTISING, IT IS EASY TO TURN ON AND OFF. WE SAW THIS HAPPEN WITH META, YOUTUBE, X, SO BRANDS HAVE OPTIONS. THEY WILL REALLOCATE SPEND TWO OTHER SOCIAL CHALLENGES OR PLATFORMS LIKE ROKU. I AM NOT OVERLY WORRIED ABOUT WHAT WILL HAPPEN IN THE ADVERTISING LANDSCAPE. THERE ARE PLENTY OF OPTIONS FOR BRANDS TO DRIVE REACH AND CONVERSION. ED:
OVER THE WEEKEND, ELON MUSK, THE CEO OF X, GAVE HIS OPINION THAT TIKTOK SHOULD NOT BE BANNED IN THE USA EVEN THOUGH SUCH A BAN MAY BENEFIT HIS OWN PLATFORM, X. THEREIN LIES THE VALUE OF IT. YOU TALKED ABOUT THE E-COMMERCE SIDE. 50% OF AMERICANS USE TIKTOK. THAT IS SCALE MANY OTHER PLATFORMS DO NOT HAVE. >> ABSOLUTELY. IT IS WHAT TIKTOK IS OUR SECOND MOST TRAFFICKED CHANNEL AT MIKMAK. META IS NUMBER ONE.
THERE ARE FEW PLACES TO REACH ALL U.S. AMERICAN HOUSEHOLDS. TO REACH 50% OF THEM WITH ONE AD BUY ON TIKTOK IS EXTREMELY POWERFUL. WE ARE TALKING ABOUT SETTING A PRECEDENT THAT INTERFERES WITH THE FIRST AMENDMENT, WHICH IS WHY WE BELIEVE IF THINGS CAN PLAY OUT, A DIVESTITURE IS MOST LIKELY THE BEST OUTCOME FOR EVERYONE. BYTEDANCE MIGHT NOT SEE IT THAT WAY. BUT IN TERMS OF THE U.S.
GOVERNMENT, IF I WERE THEM, I WOULD BE PUSHING FOR THE VESTIGE ARE. -- DIVESTITURE. ED: I MISSPOKE. I SAID ELON MUSK IS THE CEO OF X. HE IS NOT. GIVEN THE LAST SEVEN DAYS AND THE NUMBER OF COMPANIES ELON MUSK IS CEO OF, I THINK THE WORLD WILL FORGIVE ME. RACHEL TIPOGRAPH, THANK YOU FOR YOUR ANALYSIS. INTELON MUSK IS SHIFTING HIS FOCUS TO THE ROBOTAXI. THAT IS COMING UP NEXT. CAROLINE:
LET'S TAKE INTO WHAT WAS HAPPENING ON FRIDAY. REMEMBER WHEN NVIDIA WAS DOWN 10%? TODAY, IT IS UP BUT ONLY 1.3%. WE ARE FADING SOME OF THE RALLY IN TECH. THIS IS "BLOOMBERG TECHNOLOGY." ED: BLOOMBERG BIG TAKE. TESLA CONSUMER CHAOS AMONG THE SHIFT FROM NEW, CHEAPER MODELS TO CLEARLY A ROBOTAXI. WE TRIED TO CLARIFY WHAT IS GOING ON. MY UNDERSTANDING IS THIS IS
ELON MUSK. HE HAS SAID ROBOTAXI IS THE FOCUS. A CHEAPER EV IS NOT COMPLETELY SCRAPPED. BUT IT IS CONFUSING. YOU HAVE READ THE BIG TAKE. DID WE GIVE YOU CLARITY ON WHERE WE STAND? CAROLINE: YOU DID. YOU HIGHLIGHTED HOW MUCH WE HAVE SEEN REORIENTATION OF ELON MUSK. YOU ARTICULATE SO WELL SOME OF THE NEGATIVES FELT BY PEOPLE LET GO OF THE COMPANY. ED: ONE CLEAR THING IS LOADS OF
EXECUTIVES AT TESLA SAID PLEASE DO THE $25,000 EV. ELON SAID NO, WE ARE DOING ROBOTAXI. THERE'S IS A DIFFERENCE IN PHILOSOPHY.
IT IS NOT CANCELED OR SCRAPPED. IT JUST LOOKS DIFFERENT. A LOT TO BE DISCUSSED. CAROLINE: THIS IS A CHEAPER MODEL FOR OTHER PURPOSES AND A MORE WIDE REACHING COMPANY INVESTORS ARE TRYING TO GET THEIR HANDS AROUND. SHARE PRICES REFLECT THAT. CRAIG, YOUR KEY TAKEAWAY, WHAT ARE THE PRIORITIES? THE PRIORITY NOW IS ROBOTAXI BUT FOR THE GREATER GOOD? >> YEAH. I WAS TALKING WITH SOME OF OUR
COLLEAGUES. I THINK THE IDEA THAT MAYBE ELON MAY MAKE THE CASE TO WALL STREET TOMORROW THAT WE ALREADY HAVE A $25,000 CAR. WHEN YOU TAKE INTO ACCOUNT GAS SAVINGS AND TAX CREDITS, THE MODEL 3 AFTER THE PRICE CUTS OF THE LAST YEAR-PLUS IS GETTING CLOSE TO THAT. I THINK WHAT WE WILL SEE FROM TESLA IN THE MONTHS TO COME IS THIS ATTEMPT TO FURTHER EMPHASIZE THE VALUE THEY ARE OFFERING WITH THE MODEL 3 AND THE MODEL Y AND APPLY SOME OF THE WORK THEY WANT TO USE TO UNDERPIN THE ROBOTAXI TO BRING THOSE COSTS DOWN FURTHER. I THINK THE REAL QUESTION IS WHETHER OR NOT THAT WILL CUT IT FOR WALL STREET. THEY WANT TO SEE SOME NEW PRODUCT. ED: WE TRIED TO GIVE CLARITY ON
THAT. WE TRIED TO GIVE CLARITY ON THE LAYOFFS. ONE SOURCE PUT IT TO ME THAT DELIVERIES WERE DOWN IN THE FIRST QUARTER SO MUSK SAID IF DELIVERIES ARE DOWN 20%, LET'S JUST CUT HEADCOUNT 20%. NOT FOR ANY REASON TO DO WITH COST SAVING NECESSARILY. THIS IS LIKELY ELON MUSK PLAYBOOK.
WHEN YOU EDITED THE BIG TAKE, I HOPE YOU GOT THE SENSE THAT THIS IS ELON MUSK PULLING THE STRINGS ON THIS. >> IT TAKES ME BACK A LITTLE BIT TO THE WALTER ISAACSON BIOGRAPHY. I FEEL LIKE THE WORD "ELITE" WAS IN THE BOOK AT LEAST 50 TIMES -- "DELETE" WAS IN THE BOOK AT LEAST 50 TIMES. WHEN COMPANIES RUN INTO TROUBLE, HE WANTS TO CUT EVERYTHING AND GET RID OF EVERYTHING AND QUESTION WHY COMPANIES ARE DOING THINGS, BUILDING THINGS. WHY DO WE NEED THAT COMPONENT?
WHY ARE WE DOING THIS PROCESS? I THINK THE QUESTION IS WHETHER HE HAS CUT TO THE BONE. WE ARE EVEN SEEING QUESTIONING OF WHETHER OR NOT HE IS DOING THAT IN THE PRICE CUTS OVER THE WEEKEND, WHETHER THEY WILL BE EARNINGS LEFT IN CHINA IN TERMS OF HOW FAR THEY HAVE GONE WITH THE MODEL 3 AND THE MODEL Y IN THAT MARKET. CAROLINE: THE KEY POINT HERE IS WE ALL THINK ABOUT THE BIGGER PICTURE AND LOOK AHEAD TO THE MICRO.
IN A LITTLE OVER 24 HOUR'S, WE GET THE EARNINGS. ED: IN 24 HOURS, WE WILL HAVE EARNINGS BINGO AGAIN. WE WILL HAVE ONE OF THE MOST IMPORTANT EARNINGS CALLS IN TESLA HISTORY. WHAT ARE YOU WATCHING FOR? >> AS MUCH HYPE AROUND AI AND FULL SELF-DRIVING AS WE CAN POSSIBLY IMAGINE, I THINK THAT IS THE EXPECTATION BECAUSE THERE ARE NOT MANY OTHER CARDS TO PLAY. CAROLINE: CRAIG TRUDELL WITH IMPORTANT REPORTING, THANK YOU. LET'S GET INTO THE EARNINGS ACROSS THE TECH SECTOR.
I UNDERSTAND YOU HAVE SOME EXPOSURE TO TESLA. HAVE YOU FELT THE MARKET HAS PRICED IN SOME OF THE WORST FOR A BUSINESSLIKE TESLA? >> I THINK BROADLY SPEAKING THERE IS STILL SOME DOWNSIDE SPECIFICALLY BECAUSE SOME STOCKS HAVE BEEN DRIVEN BY MOMENTUM. IT HAS BEEN A PRETTY BIG DECLINE WE HAVE SEEN IN TESLA. CLARITY IS NOT THERE. BROADLY SPEAKING FROM THE MAGNIFICENT SEVEN, THIS EARNINGS SEASON, THEY HAVE A LOT TO PROVE. VALUATIONS ARE VERY ELEVATED.
IF WE DO NOT SEE THIS COME THROUGH FROM AN EARNINGS PERSPECTIVE, I THINK THERE IS MORE DOWNSIDE AND MORE OF A CORRECTION. CAROLINE: WHAT I LOVE ABOUT YOUR ANALYSIS IS HOW DEEP YOU GO ON HOW POWERFUL AND ENCOMPASSING THOSE MAGNIFICENT SEVEN PLAYERS HAVE BEEN. FIVE OF THE SEVEN HAVE EXPECTED TO BE THE TOP FIVE CONTRIBUTORS TO YEAR-ON-YEAR EARNINGS GROWTH FOR THE S&P.
IF THEY DO NOT GIVE US WHAT WE NEED, EARNINGS MORE BROADLY WILL FALL ACROSS THE S&P. >> IT WILL DEFINITELY BE WEAKER THAN THE ANTICIPATION RIGHT NOW. THE ANTICIPATION IS ONLY FOR ABOUT .5% EARNINGS GROWTH. THERE'S A LOT RIDING ON THE MAGNIFICENT SEVEN. I THINK THAT IS WHY THE MARKETS ARE UP A LITTLE BIT TODAY BUT MOVING SIDEWAYS. THEY ARE WAITING FOR EARNINGS. THERE ALSO WAITING ON THE PCE LATER THIS WEEK IN THE FIRST READ ON GDP FOR THE FIRST QUARTER -- AND THE FIRST READ ON GDP FOR THE FIRST QUARTER. ED: THERE IS A UBS NOTE THIS
MORNING DOING THE ROUNDS. A LOT OF PEOPLE ARE TALKING ABOUT IT. THEY HAVE CUT ON THE BIG SIX TO NEUTRAL FROM OVERWEIGHT. THEY ARE SAYING TOUGH COMPS THIS QUARTER. I THINK THEY ARE SURPRISING --
SUGGESTING IF YOU GO AWAY FROM THE BIG SIX OR MAG SEVEN , THERE ARE OTHER CORNERS OF THE MARKET TO PLAY IN. DO YOU SHARE THAT THESIS? >> ABSOLUTELY. THESE STOCKS HAVE HAD A GREAT RUN. VALUATIONS ARE VERY HIGH. PEOPLE ARE LOOKING OUTSIDE OF THAT TO MAKE MONEY. NOT JUST IN THE LARGE CAP SPACE. BUT IN THE SMALL AND MID-CAP SPACE, I THINK THERE IS MORE VALUE. THEY HAVE NOT PARTICIPATED IN
THE RALLY IN THE LARGE CAP SPACE. FROM A LONG-TERM'S PROTECTING -- LONG-TERM PERSPECTIVE, THEY ARE HISTORICALLY CHEAP. THERE IS A LOT OF UNCERTAINTY AROUND EARNINGS IN THE NEXT COUPLE OF QUARTERS. IF YOU CAN WITHSTAND THAT VOLATILITY AND LOOK LONGER-TERM, THESE MAY BE OPPORTUNITIES IN THE MARKET. ED: THERE IS QUITE A LOT RIDING ON EARNINGS THIS SEASON. LOTS OF PEOPLE SAY IF EARNINGS
DO NOT DELIVER FOR US ON THE BIG SIX, MAG SEVEN, TECH WILL FALL AWAY AND THE MARKET WILL GO WITH IT. WE LIKE DRAMA ON THIS SHOW. BUT REALISTICALLY, HOW WORRIED ARE YOU ABOUT THE STAKES IN THE COMING WEEKS? >> I AM QUITE WORRIED. WE HAD A LITTLE BIT MORE THAN A 5% CORRECTION IN THE MARKET THE PAST COUPLE OF WEEKS.
THAT WAS NOT ENOUGH IN MY OPINION TO LOOK AT THESE ELEVATED VALUATIONS AND TAKE ALL OF THESE MOUNTING RISKS WE HAVE FROM AN ECONOMIC STANDPOINT, GEOPOLITICAL STANDPOINT, FEDERAL RESERVE STANDPOINT. I THINK THERE IS STILL TOO MUCH OPTIMISM ABOUT WHAT THE COULD DO. THE BIGGER RISK IS, WHAT IS INFLATION GOING TO DO? ARE WE IN THE MIDST OF A REIGNITION OF INFLATION? IF THAT IS THE CASE, THESE VALUATIONS AND EXPECTATIONS ARE NOT SUSTAINABLE. ED: REALLY APPRECIATE YOUR TIME ON THE SHOW THIS MORNING. COMING UP, AUSTRALIA IS GEARING
UP FOR A SHOWDOWN WITH ELON MUSK. CAROLINE: NO, NO! ED: I AM SORRY. I CANNOT HELP MYSELF. CAROLINE: LET'S GET OUT TO THE REST OF THE EARNINGS SPACE. VERIZON FALLING HARD, OFF BY MORE THAN 4%, EVEN AS THEY BEAT AND LIST ESTIMATES FOR PROFIT. MAYBE THERE WAS SOME WORRY ABOUT OPERATING REVENUE THAT BEAT -- MISSED WALL STREET'S PROJECTIONS. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: CALLS ARE GROWING FOR A CRACK DOWN ON X IN AUSTRALIA AFTER TWO KNIFE ATTACKS IN SYDNEY.
GRAPHIC CONTENT FROM THE STABBINGS AS WELL AS MISINFORMATION SPREAD QUICKLY. THAT HAS PROMPTED FIVE GOVERNMENT MINISTERS TO CONSIDER TOUGHER LAWS FOR SOCIAL MEDIA COMPANIES. TENCENT SHARES STAGED A BIG RALLY SINCE DECEMBER. NOW WE KNOW CHINA'S BIGGEST INTERNET FIRM HAS AN EARLIER THAN ANTICIPATED DEBUT OF THE GAME TO DRAW IN NEW USERS.
JAPAN'S UNDER TRUST REGULATOR HAS ITS EYES ON GOOGLE AFTER HIS HAS THE TECH CHINESE USED TACTICS THAT LIMITED YAHOO! JAPAN'S ABILITY TO COMPETE. ALPHABET CHANGED THEIR CONDUCT AS SOON AS THEY FLAGGED THE PRACTICE BUT THEY WILL KEEP ON MONITORING THE U.S. FIRM. WHAT ARE YOU LOOKING AT? ED: WE WILL BE JOINED BY THE BITCOIN CO-FOUNDER TO DISCUSS BITCOIN'S HALVING. I'M ALSO LOOKING AT SHARES OF APPLE. THIS IS A MARKET MECHANICS THING.
WE ARE OFF SESSION LOWS BUT APPLE IS NAMED AS A TOPIC FOR 2024 BY BANK OF AMERICA. OLD-SCHOOL STORY, BIG BALANCE SHEET, GREAT CASH FLOWS, KIND OF DULL IN THE CONTEXT OF TECHNOLOGY. THAT IS HOW WE HAVE BEEN TALKING ABOUT APPLE. EARNINGS ARE JUST AROUND THE CORNER. HOW EXCITING.
THIS IS "BLOOMBERG TECHNOLOGY." >> APPLE'S NEXT BIG THING IS AVERSION TO LARGER LANGUAGE MODELS. APPLE HAS BEEN WORKING ON SEVERAL MAJOR PROJECTS INCLUDING IROBOT AND AUGMENTED-REALITY GLASSES. BUT THE BIGGEST AND MOST
IMPORTANT PROJECT IS A PUSH INTO GENERATIVE AI. APPLES APPROACH WILL BE GIVEN THAT THE COMPETITION, LIKE GOOGLE, OPENAI, AND META. CONSIDER POWERING IT -- INSTEAD OF POUNDING IT ON CLOUD-BASED SERVERS, IT WILL FUNCTION ON THE IPHONE ITSELF, USING THE ON-DEVICE SOFTWARE AND OTHER CHIPS. THAT MAKES IT QUICKER, MORE SECURE, AND APPLE BELIEVES MORE FUNCTIONAL AND ACCURATE.
WITH IPHONE 18 COMING IN SEPTEMBER, APPLE PLANS TO INCLUDE A SLEW OF NEW AI FEATURES THAT WILL HELP USERS IN THEIR DAILY LIVES. I'M MARK GURMAN. THIS IS "POWER ON." ED: LET'S GET A CHECK ON THE MARKETS. ONE ASSET WE HAVEN'T TALKED AS MUCH ABOUT IS BITCOIN. HALVING HAS OCCURRED.
AS SUCH, IT CUTS IN HALF OF THE REWARDS PAID INTO MINERS. 65,000, 66,000 U.S. DOLLARS NOW . WHERE WE ARE SEEING A MORE DELAYED REACTION IS THE ASSETS THAT DO NOT TRADE 24-7. IN OTHER WORDS, THE U.S.-TRADED EQUITIES OR STOCKS THAT ARE CRYPTO-LINKED. RIOT, ANOTHER BLOCKCHAIN PLATFORM, UP 9%. SOME MOVING TO THE DOWNSIDE. MARATHON DIGITAL HOLDINGS DOWN
3.9%. THERE WAS A HEADLINE THAT THE HALVCING WAS A BIT OF A LIMP BUT I THINK WE SHOULD BE EXCITED ABOUT IT. CAROLINE: STILL PARTIES, VIRTUAL OR IN REAL LIFE. I WANT TO KNOW HOW MANY OF THOSE INVITES YOU WENT TO, ED. ONE OF THE PERSONS POSTING THOSE HALVING PARTIES IS CHRIS KLEIN. YOU WATCHED IT HAPPEN WHEN IT OCCURRED ON FRIDAY NIGHT, BUT NOW THE REALITY IS MAYBE THERE ARE SOME PLAYERS, MINERS OUT THERE THAT DON'T GET REWARDED AS MUCH. ULTIMATELY THIS IS MEANT TO
DRIVE THE INCREASE OF BITCOIN PRICES. WILL IT? >> ABSOLUTELY. THANKS FOR HAVING ME. WE HAD SOME GOOD PARTIES LAST WEEK FOR THE HALVING. IT DOES PUNISH THE PRODUCERS OF ASSET CLASS. YOU WILL SEE HEADLINES THIS MORNING THAT HE CAME OFF WITH A WHIMPER. THAT IS PRETTY TYPICAL FOR
HALVING EVENTS. IT IS THREE TO SIX MONTHS WHERE YOU SEE THE IMPACT OF THAT SUPPLY CONSTRAINT THAT TAKES PLACE. ED: SUPPLY CONSTRAINT HAS NOT YET TAKEN PLACE. I WANT TO FOCUS ON THAT FOR A MINUTE. I THINK YOU GUYS HAD A PRETTY GOOD QUARTER, AND ACTUALLY SINCE THE START OF THE YEAR, WHETHER YOU ARE FOCUSED ON THE UNDERLYING TECHNOLOGY OR YOU ARE A PARTICIPANT IN THE MARKETPLACE FOR CRYPTO-RELATED ASSETS, THINGS HAVE BEEN QUITE CHEERY. PUT THAT INTO CONTEXT.
AS EVERYONE WAS BRACING FOR THE HALVING, THEY WERE CARRYING ON BUSINESS. CHRIS: IT IS EASY TO EXPECT A BIG TIMES SQUARE EVENT, AND THE REALITY IS WE HAVE JUST HIT ANOTHER BLOCK IN WHICH IT IS IN OUR CODE, IN OUR DNA TO CUT THE REWARDS AND THEN LIMIT THAT SUPPLY. THIS IS NOT HAPPENING IN A VACUUM, EITHER. ETF'S ARE TAKING THE LION'S SHARE OF THESE RIGHT NOW. WE HAVE A FEW BILLION DOLLARS OF CLIENT ASSETS UNDER CUSTODY INSIDE OUR PLATFORM, AND THERE WILL BE MORE AND MORE WHEN LESS AND LESS IS AVAILABLE, WHICH THE CONTRAST OF THE ALMIGHTY DOLLAR AND THE WAY THE U.S. DOLLAR WORKS TODAY. WE REWARD PRODUCERS OF CURRENCY EVERY FOUR YEARS WITH THINGS CALLED REELECTIONS. ED: I GET THE PARALLEL.
WE HAVE A BIG PART OF OUR AUDIENCE FOCUSED ON LARGELY THE BLOCKCHAIN. THEY PROBABLY DON'T CARE ABOUT ANY GIVEN DIRECTION OF THE MOVEMENT IN BITCOIN OR ITS CURRENT PRICE. THERE IS A BIG MARKET OF PEOPLE WHO DO, AND MANY OF THEM ARGUE BECAUSE OF THE FINITE SUPPLY, AND I'M REPEATING MYSELF TO AN AUDIENCE, WE ALWAYS TALK ABOUT THIS, BUT IT CAN -- BUT BITCOIN CAN ONLY EVER GO UP IN PRICE.
THE OTHER STORY OF THE FIRST QUARTER WAS LIQUIDITY. THIS IS QUITE A LIQUID MARKET. I DO WE SQUARE THOSE TW -- HOW DO WE SQUARE THOSE TWO? CHRIS: THERE ARE BIGGER NERDS WHO CAN HANDLE THAT FOR YOU. YOU DON'T TRADE IN ONE BITCOIN. IT GOES DOWN TO THE 11TH DECIMAL POINT, AS WE GET FURTHER DOWN THAT SCARCITY, WE WILL SEE THE IMPACT OF PEOPLE WILL BE YOU ARE A 1 BITCOINER AND THAT WILL BE A HUGE DEAL. YOU CAN HAVE THIS CONVERSATION WITHOUT TALKING ABOUT INFLATION AS YOU CAN'T HAVE THIS COME VISIT -- YOU CAN'T HAVE THIS CONVERSATION WITHOUT TALK ABOUT INFLATION. AMERICANS NEED $1.5 MILLION TO RETIRE COMFORTABLY, WHICH IS A
LARGE NUMBER. WHAT IS REALLY STAGGERING IS JUST THREE YEARS AGO THE SAME REPORT WAS $950,000. IN JUST THREE YEARS AMERICANS FEEL LIKE THEY NEED 53% MORE MONEY JUST RETIRE COMFORTABLY, AND THAT IS PART OF WHY FOLKS ARE LOOKING AT DIVERSIFICATION OF CURRENCY, AND BITCOIN IS AN OPPORTUNITY FOR THAT. CAROLINE: YOU ARE LOOKING AT WHAT WE ARE
SAVING FOR A PENSIONS FOR OUR RETIREMENT BECAUSE YOU HAVE IT IN YOUR NAME, BITCOIN IRA. YOU DON'T JUST OFFER BITCOIN. YOU OFFER OTHER CRYPTO CURRENCIES. THIS COMING OF AN ETF WAS MEANT TO TEMPT THE SO-CALLED BOOMERS AND GET THEM INTO ALLOCATING BITCOIN. WHAT ABOUT THE REST OF THE ALTCOINS AND HOW YOU ARE SEEING INTEREST PICK UP? CHRIS: WE SHOULD MAYBE EXPECT LATER THIS YEAR. I DON'T GET EXCITED BECAUSE I WAITED SEVEN YEARS FOR THE BITCOIN ETF TO GET APPROVED. THERE ARE A SLEW OF COINS, ON OUR PLATFORM ABOUT 65 DIFFERENT COINS OR CURRENCIES AVAILABLE TODAY, AND THEY ALSO GIVEN UTILITIES. ETHEREUM IS THE BACKBONE OF THE
WEB OR THE INTERNET, WHICH IS DESIGNED FOR SMART CONTRACTS. I WISH MY 10-YEAR-OLD DAUGHTER WERE HERE, SHE WAS ON MY PODCAST LAST WEEK AND SHE HAS ONE-WORD ASSOCIATIONS. LITE COIN IS FOR FAVORITE, SHOPPING. ED: I THINK A HUGE PART OF OUR AUDIENCE GET THAT, THEY ENJOY SIMPLE FIND THINGS A BIT. CHRIS KLINE, GREAT TO HAVE YOU ON THE PROGRAM IN SAN FRANCISCO. COMING UP, WE WILL HEAR FROM THE CANDLE MEDIA CO-CEO, ALSO A FORMER CEO OF TIKTOK.
WE HAD A VERY INTERESTING CONVERSATION AND IT'S COMING UP NEXT. THIS IS BLOOMBERG. ED: LET'S TALK ABOUT THE ENTERTAINMENT INDUSTRY. I CHATTED WITH KEVIN MAYER, FORMER CEO OF TIKTOK AND FORMER DISNEY CHAIRMAN, AND WE TALKED ABOUT, YOU GUESSED IT, TIKTOK'S TROUBLES, BUT ALSO DISNEY'S LEADERSHIP. HE IS THE CO-CEO OF CANDLE MEDIA, WHICH OWNS MOON BUG ENTERTAINMENT. I HAD TO ASK HIM IF WE SHOULD
EXPECT MORE FROM THE COMPANY'S SMASH HIT CHILDREN'S SERIES. KEVIN: WE ARE PLANNING A MOVIE -- IT HAS NOT BEEN OFFICIALLY ANNOUNCED, BUT THERE IS A MOVIE COMING OUT THAT WILL THEATRICALLY RELEASED OR ON A STREAMING SERVICE. I'M THINKING IT COULD BE THEATRICALLY RELEASED AND THAT WOULD BE GREAT.
AND YOU ARE RIGHT ABOUT LICENSING AND MERCHANDISE. YOU HAVE THE REACH AND DEPTH OF ENGAGEMENT THAT WE HAVE WITH OUR PROPERTIES WITH KIDS AND THEIR PARENTS, THERE IS A HUGE AMOUNT OF CO-VIEWING, SOMETHING LIKE 40% OF ALL VIEWS ALSO SEEN BY PARENT. THAT DOES LEND ITSELF TO DEVELOPING A WHOLE SET OF LICENSED PROPERTIES THAT ARE BASED ON THAT CHARACTER.
BOYS, T-SHIRTS, BEDROOM ACCOUTREMENTS, ALL THE STUFF YOU EXPECT, WE ARE IN ALL OF IT. -- TOYS, T-SHIRTS, BEDROOM ACCOUTREMENTS, OF THE STUFF YOU EXPECT, WE ARE IN ALL OF IT. ED: I'M SURE IT HAS COME UP AT JEFFREY'S, PART OF YOUR PRESENT, IT IS DISNEY. WHO DO YOU THINK SHOULD BE THE NEXT CEO OF DISNEY? I WILL JUMP IN AND ASK IF YOU WOULD THROW YOUR OWN HAT INTO THE RING. KEVIN: I'M PRETTY BUSY. I HAVE A TECH FUND I'M WORKING WITH THAT I AM A COFOUNDER OF, CANDLE MEDIA.
DISNEY HAS A VERY, VERY SOLID SET OF LEADERS BELOW BOB. THEY HAVE A GREAT BENCH. THEY HAVE PEOPLE THAT HAVE BEEN THERE A LONG TIME THAT UNDERSTAND THE DISNEY CULTURE AND THE PROMINENCE AND DYNAMISM OF BRANDS. MOSTLY THEY WILL GO INTERNAL AND THEY HAVE CANDIDATES THAT I THINK ARE WONDERFUL. MY HAT -- I'M NOT COST MY HAT IN THE RING, ACTUALLY FOR -- I'VE NOT TOSSED MY HEAD IN THEIR INCOME ACTUALLY. ED: THERE ARE MANY STREAMING
PLATFORMS TO CHOOSE FROM. ONE OF THE NAMES YOU DIDN'T MENTION WAS PARAMOUNT PLUS, AND PEACOCK'S WHEN I THINK ABOUT A LOT. IS THERE A WORLD IN WHICH ALL OF THESE SURVIVE INDEPENDENTLY, OR DO YOU SEE SOME CONSOLIDATION -- I KNOW YOU MUST GET ASKED THAT ALL THE TIME BY THE FINANCIAL PRESS OR FINANCIAL NETWORK LIKE OURS, BUT I POINT TO THE IDEA THAT YOU SAT ON THE OTHER SIDE OF THE TABLE, CONTENT CREATOR, AND YOU HAVE POWER AND INTEREST IN WHERE IT IS DISTRIBUTED. KEVIN: LOOK, I DON'T KNOW WHAT THE FUTURE OF PARAMOUNT PLUS AND PEACOCK ARE. I DON'T HAVE A CRYSTAL BALL. I DO THINK THERE IS A SCALE
ISSUE WITH THEM. I DO BELIEVE NOT EVERY SINGLE STUDIO CAN HAVE AN ASSOCIATED STREAMING SERVICE THAT HAS THE SAME PROSPECTS AS DISNEY OR MAX OR NETFLIX, OR AMAZON FOR THAT MATTER. THAT'S BEEN A HUGE PLAYER, AS IS APPLE TV+. I DO THINK CONSOLIDATION IS INEVITABLE. THAT'S NATURAL ECONOMICS 101.
INDUSTRIES START UP IN EVERY THING IS ABOUT GROWTH AND THE COST OF CAPITAL IS VERY INEXPENSIVE BACK WHEN NETFLIX STARTED THE BALL ROLLING. I THINK THERE WAS VERY FREE ACCESS TO CAPITAL AND A LOT OF PATIENCE ON BEHALF OF INVESTORS. AS THE INDUSTRIES MATURE AND THEY PENETRATE MORE HOUSEHOLDS AND NATURAL GROWTH LEVELS OFF, ALWAYS CONSOLIDATION HAPPENS. AND YOU FOCUS ON COSTS AND COST
SYNERGIES AND SYNERGIES INHERENT IN MERGERS AND THE LIKE. THAT IS A NATURAL COURSE FOR ANY GROWTH SECTOR TO EVOLVE INTO AN THAT IS WHAT YOU ARE SEEING. IT WILL HAPPEN THERE, TOO. ED: I'M PUSHING MY LUCK -- I'M TOLD WE HAVE GOT TO GO, BUT I WOULD BE REMISS IF I DIDN'T ASK YOU ABOUT TIKTOK. ASSESSMENT HAVING BEEN INSIDE AND NOW ON THE OUTSIDE OF WHAT YOU THINK WILL HAPPEN? I KNOW YOU DON'T HAVE A CRYSTAL BALL, BUT THE POLITICAL WILL IS DIVESTITURE OF THE U.S. ARMY AND TIKTOK SEEMS TO THINK THAT, SELLING U.S.
USER DATA IN -- THOMAS FILING U.S. USER DATA IS THE ANSWER. KEVIN: IT IS HARD FOR ME TO CALL. I HAVEN'T BEEN AT TIKTOK FOR SEVERAL YEARS NOW. I'M OBSERVING IT THE WAY EVERYONE ELSE IS OBSERVING IT. I WILL SAY THIS ABOUT TIKTOK, IT'S A GREAT TEAM.
IS AN INDEPENDENT COMMITTEE, ALTHOUGH IT IS CHINESE, IT IS NOT, AS FAR AS I KNOW, RUN BY THE GOVERNMENT IN CHINA OR ANYTHING ELSE. I'M NOT FAMILIAR WITH ALL THE DIFFERENT SECURITY CONCERNS THAT THE GOVERNMENT MAY OR MAY NOT HAVE, BUT I DO KNOW THAT THE FOLKS THAT I DEALT WITH AT TIKTOK WERE HIGH-QUALITY PEOPLE. THE PRODUCT IS SUPER IMPRESSIVE AND ENGAGING AND HAS TAKEN OVER LARGE PARTS OF THE MEDIA AND SOCIAL-MEDIA LANDSCAPE'S ALREADY. DON'T KNOW WHAT IS GOING TO HAPPEN.
IT DOES SEEM TO BE BIPARTISAN, MORE SO THAN MOST ISSUES THESE DAYS. SO IT'S GOING TO BE INTERESTING. I HOPE OF THE RIGHT THING HAPPENS THERE. ED: THAT WAS CANDLE MEDIA CO-CEO KEVIN MAYER. CAROLINE: WHAT A WIDE-RANGING CONVERSATION. BRILLIANT, ED. WE GOTTA SWITCH GEARS, BECAUSE IT'S EARTH DAY. HAPPY EARTH DAY. THE LATEST CLIMATE TECH IN VENTURE CAPITAL.
FOR TODAY'S VC SPOTLIGHT, SUSTAINABILITY AS A SERVICE. THAT IS YOUR UNDERPINNING. WHAT DOES IT LOOK LIKE? >> IT'S A GREAT QUESTION. I WILL DISSECT THE QUESTION ABOUT SUSTAINABILITY BECAUSE THERE IS SO MUCH PUBLIC RHETORIC ABOUT WHAT IT MEANS. WE ARE TRYING TO TACKLE HOW DO WE PRODUCE MORE OR THE SAME WITH LESS. THERE IS NEW TECHNOLOGY THAT ARE TRYING TO COMBAT THIS, BUT THE WAY WE THINK ABOUT THIS IS HOW CAN WE INVEST IN CONSTRUCTION INFRASTRUCTURE, SUPPLY CHAIN SOFTWARE, NEW DATA PLATFORMS THAT ALLOW US TO BE MUCH MORE SUSTAINABLE IN AN ECONOMIC WAY. THAT IS WHY WE LANDED ON THIS
TERM, THE NEW SAS, SUSTAINABILITY AS A SERVICE. CAROLINE: YOU HAVE BEEN RAISING A LOT OF MONEY AND THERE'S STILL A LOT OF MONEY FROM THE FUND TO ALLOCATE GOOD WHERE ARE THE PRIORITIES TO BE PUTTING MONEY, OR YOU MAKE THE MOST IMPACT FOR HOW I INTERACT AS A CAPITALIST? SITA: IT'S A GREAT QUESTION. WE ARE STILL INVESTING OUT OF OUR FIRST FUND, BUT WE ARE FOCUSED ON OUR SECOND FUND RIGHT NOW. CAROLINE: HOW BIG IS THAT SECOND FIND THAT? SITA: OUR SECOND FUND TARGET IS 80.
THE THING A LOT OF CONSUMERS STRUGGLE WITH IS HOW CAN YOU REALLY CAPITALIZE ON YOUR INDIVIDUAL PURCHASES OR ACTIVITIES. ONE OF THE THINGS WE ALWAYS COME BACK TO IS SUSTAINABLE SOLUTIONS ARE NOT REALLY LONG-TERM SUSTAINABLE IF THEY ARE NOT COST EFFECTIVE AND THEY DON'T REALLY -- IF THEY DON'T REALLY INHIBIT THE CONSUMER'S LIFE THAT DRASTICALLY ON A DAY-TO-DAY WE ARE SITTING IN A BLOOMBERG OFFICE AND WE LIVE IN A CAPITALIST SOCIETY. WE NEED TO FOCUS ON INVESTMENTS AND SOLUTIONS THAT DON'T TOTALLY CHANGE THE WAY WE BEHAVE, AT LEAST NOT SO DRASTICALLY.
A LOT OF THE TIMES AS AN INVESTOR WE ARE THINKING ABOUT HOW WE EVALUATE -- NOT NECESSARY FOR HIM? CHAMBERS OF YOU NEED TO BE NANCY WROTE -- NOT NECESSARILY FROM THE ECHO CHAMBER OF YOU NEED TO BE NET ZERO TOMORROW. ED: SITA, WE HAVE DONE A LOT OF REPORTING ABOUT NEW FUNDS THAT ARE FOCUSED ON MANUFACTURING, INDUSTRIAL FUNDS, BUT THEY HAVE THE SAME THESIS. JUST VERY SPECIFICALLY, WHAT IS THE OPPORTUNITY FOR YOU? IS IT ON SOME THING TANGIBLE, HARDWARE OR ARE YOU LOOKING AT A SOFTWARE APPLICATION AS WELL? SITA: WE ARE DEFINITELY LOOKING ACROSS BOTH AREAS, BUT OUR PERSONAL BIASES TOWARDS THE LATTER. THE GENESIS OF THE FUND STUDY BECAUSE WE FELT LIKE THERE WAS A LOT OF CAPITAL BEING DEPLOYED INTO THE BROAD CLIMATE CRISIS OR THE SUSTAINABILITY TRANSITION, FROM A SHARE VOLUME STANDPOINT THE VAST MAJORITY OF THE CAPITAL WAS GOING INTO HARD ASSETS, LONG-DURATION, SLIGHTLY RISKIER BETS. WHILE THAT IS A SUPER NOBLE
AMBITION, AND I'M SO HAPPY TO KNOW THAT FUNDING IS OUT THERE FOR THOSE INITIATIVES, AT THE END OF THE DATE THE TRANSITION IS KNOCKING HAPPEN JUST BECAUSE WE HAVE THE DECADE-DEFINING TECHNOLOGIES. WE NEED THE PICKS AND SHOVELS, THE POINT I WAS MAKING AROUND SOFTWARE THAT WILL ACTUALLY CONNECT THE DOTS BETWEEN THE NEW TECHNOLOGIES THAT EXIST AND THE END USER, BE IT THE CONSUMER BUSINESSES. WE HAVE A STRONG BIAS TOWARDS INVESTING IN THESE SLIGHTLY MORE SCALABLE, MUCH MORE SOFTWARE-FOCUSED OPPORTUNITIES. ED: WHAT IS THE PITCH TO LP'S? VERY QUICKLY, HOW DO YOU SELL THE VISION? SITA: I'M PROBABLY GOING TO STAY AWAY FROM THAT BECAUSE WE TRY TO KEEP THOSE CONVERSATIONS IN PRIVATE, BUT ALSO MORE SO IT REALLY DEPENDS ON WHAT YOUR PERSPECTIVE IS ON THE TRANSITION. OUR STANCE IS VERY MUCH THAT OVER OUR LIFETIME, ONE OF THE GREATEST TRANSITIONS OR GREATEST PROBLEMS IS THE SUSTAINABILITY TRANSITION.
AS A FUNCTION OF THAT, IT IS ONE OF THE GREATEST WEALTH-CREATION OPPORTUNITIES. WE NEED TO BE ABLE TO FIND WAYS IN WHICH WE CAN INVEST IN THAT TRANSITION IN A MUCH MORE ASSET-LIGHT WAY, A WAY THAT IS MORE TANGIBLE. TO GO BACK TO THE THESIS A LITTLE BIT, OR TO ANSWER CAROLINE'S FIRST QUESTION AROUND CONSUMERS, IN THE U.S., WHERE WE SIT, AND THIS IS AKIN TO A LOT OF DEVELOPED COUNTRIES, THE BIGGEST SHAREHOLDER OF THE ECONOMY, THE BIGGEST STAKEHOLDERSW ARE CONSUMERS. WE HOLD OVER 70% OF THE GDP. ON AGGREGATE THIS IS A MASSIVE
MOVING POWER MECHANISM, AND CONSUMERS IF WE ARE FORCED TO CHANGE EVERY FACET OF OUR LIVES, WHAT WE DO, HOW WE SPEND OUR TIME, AND WE MOVED, IT FORCES BUSINESSES TO CHANGE THE WAY THEY DO BUSINESS, AND THAT IS THE ESSENCE OF HOW WE THINK ABOUT THIS SPACE. CAROLINE: THAT IS WHY YOU ARE IN COMPANIES LIKE COWBOY, HOW WE EAT, HOW WE CONSUME. SIAM CAPITAL FOUNDER, THANK YOU FOR BEING WITH US, SITA CHANTRAMONKLASRI. WHAT DO WE HAVE COMING UP? ED: ANOTHER BIG STORY, SALESFORCE TALKS WITH INFORMATICA FIZZLE OUT. THIS IS "BLOOMBERG TECHNOLOGY."
ED: DATA MANAGEMENT COMPANY INFORMATICA SAYS IT IS NOT ENGAGED IN TAKEOVER TALKS FOLLOWING REPORTS THAT DISCUSSIONS WITH SALESFORCE HAD COOLED. LET'S GET THE ANALYSIS FROM BLOOMBERG INTELLIGENCE. THAT WITH THE CHRONOLOGY, BLOOMBERG REPORTED THERE WERE TALKS AND THEN BLOOMBERG REPORTED THEY COOLED SPECIFICALLY OVERPRICED AS THE STICKING POINT -- COOLED SPECIFICALLY OVER PRICE AT THE STICKING POINT. NOW INFORMATICA CESSNA TALKED.-- SAYS NO TALKS. >> WE ARE HAPPY THERE IS NO DEAL FOR SALESFORCE'S SAKE. INFORMATICA IS NOT GROWING AT THE SAME RATE THAT SALESFORCE IS. IT STAYED AWAY FROM DEALS,
FOCUSED ON MARGINS, FOCUSED ON ORGANIC GROWTH RATE, AND I AM HOPEFUL THEY WILL STICK TO THAT AT LEAST FOR THE NEAR TERM, BECAUSE AS YOU REMEMBER, THIS WAS THE BIGGEST CRITICISM FOR SALESFORCE FOR SEVERAL YEARS, THAT THEY MOVE INTO SLIGHTLY PROFITABLE TERRITORY AND THEN THEY GO OUT AND BUY SOMETHING BIG AND SHAREHOLDERS DON'T GET THE BENEFIT OF THE LEVERAGE THAT COMES. CAROLINE: TO THAT END, THIS IS GOING TO BE THE BIGGEST DEAL SINCE SLACK BEING BOUGHT FOR $27 BILLION. WHAT WAS IT THEY WANTED TO ADD, AND WHAT WOULD YOU WANT THEM TO ADD ORGANICALLY IF NOT IN ORGANICALLY? ANURAG: SALESFORCE HAS NO SHORTAGE OF OPPORTUNITIES IN THE LONG RUN. THEY HAVE A MASSIVE CUSTOMER BASE ON AUTOMATION AND CUSTOMER SERVICE. WHAT THEY HAVE TO DO IS MAKE
SURE THESE PRODUCTS WORK WELL. WHEN THEY WERE LOOKING AT BUYING INFORMATICA, THEY BOUGHT THE COMPANY C A FEW YEARS AGO THAT DOESN'T STUFF THAT IS SIMILAR TO INFORMATICA. INFORMATICA IS SLIGHTLY LARGER WHEN IT COMES TO THAT, BUT HONESTLY, SALESFORCE REPORTED THAT IT GREW 22% THE LAST TIME WE HAD TO THE NUMBERS.
THAT IS A MASSIVE GROWTH RATE FOR A COMPANY INTERNALLY, WHAT THEY ARE DOING ON DATA MANAGEMENT. INFORMATICA, ON THE OTHER HAND, IF YOU LOOK AT CONSENSUS IS GROWING AT SIX, 7%. I'M SURPRISED THAT THEY WERE EVEN CONSIDERING IT AT THIS POINT GIVEN ALL THE OPPORTUNITIES THEY HAD ORGANICALLY. CAROLINE: ANURAG, SO GREAT TO GET YOUR PERSPECTIVE ON WHY YOU LIKE THE IDEA THAT M&A ISN'T GOING TO CONTRAST AT -- ISN'T GOING THICK AND FAST. BUSY, BUSY MONDAY. WE ARE TALKING TIKTOK, TALKING YOUR BIG TAKE, A MUST-READ, ED. ED: IT IS ALL HAPPENING AT ONCE. I THINK IT IS GOING TO BE A
MASSIVE WEEK. TESLA MASSIVE, OBVIOUSLY. THE SHOW IS AN IMPORTANT WAY TO START THE WEEK. SO MANY OF YOU ARE LISTENING TO THE SHOW IS A PODCAST ON THE WAY TO WORK, ON THE WAY HOME, WHEREVER YOU ARE IN THE WORLD.
GET IT ON APPLE, SPOTIFY, IHEART. FROM NEW YORK CITY AND SAN FRANCISCO, JOIN US FOR THE NEXT FOUR DAYS FOR THE THIS IS "BLOOMBERG TECHNOLOGY." ♪
2024-04-26 00:38
