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White House Works to Give US Agencies Anthropic Mythos AI · Bloomberg Intelligence

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  Speaker 2: Perhaps there's going to be peace talks of a different
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  Speaker 2: kind in Washington as well, because Anthropics CEO Dario Amuday
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  Speaker 2: is meeting with Susie Wiles, the Chief of Staff of
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  Speaker 2: the White House today, and of course there's a lot
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  Speaker 2: of tension between the US government, the executive branch, and Anthropic,
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  Speaker 2: the AI startup AI monster. At this point, I feel
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  Speaker 2: like startup kind of undersells it. Let's bring in Jake
• 0:47
  Speaker 2: Bleiberg right now. He is Bloomberg News's cybersecurity reporter and
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  Speaker 2: he's been talking to us and he's been doing a
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  Speaker 2: lot of reporting on what the White House is doing.
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  Speaker 2: When it comes to Anthropics' latest AI model, myth or
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  Speaker 2: Mythos as less total lexus is very good.
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  Speaker 3: I approve methos.
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  Speaker 2: Okay, Jake, it's official. It's Mythos, not Mythos. Tell us
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  Speaker 2: a little bit about the backstory here of Mythos because
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  Speaker 2: it's the latest AI model. It's very powerful for ananthropic,
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  Speaker 2: but Anthropic it also has a testy relationship with this
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  Speaker 2: White House.
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  Speaker 4: That's all right, So Mythos is this model released by
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  Speaker 4: Anthropic not to the public, but we learned about it
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  Speaker 4: publicly a couple of weeks ago when the company gave
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  Speaker 4: a select group of government organizations and banks and cybersecurity
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  Speaker 4: firms sort of special, tightly held access to it because
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  Speaker 4: the company believes it's this enormous threat and has sort
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  Speaker 4: of vastly more ability to find holes in computer systems
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  Speaker 4: that might let hackers get in and do malicious things.
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  Speaker 5: If they're limiting access, why are they allowing the government
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  Speaker 5: to have.
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  Speaker 4: Well, we're not actually sure at this point just how
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  Speaker 4: much access the government has, but what we do know
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  Speaker 4: is sort of getting at the tension you raised earlier.
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  Speaker 4: There are a bunch of government agencies that are sort
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  Speaker 4: of eager to get their hands on it, and top
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  Speaker 4: government officials, the Secretary of the Treasury Chairman Jerome Palell
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  Speaker 4: at the FED, they've been urging banks and financial sector
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  Speaker 4: organizations to use this tool to plug their own holes,
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  Speaker 4: and that seems to be out of a worry that
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  Speaker 4: once this type of tool is out there in the public,
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  Speaker 4: those might become vulnerabilities.
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  Speaker 2: So they want them to kind of stress test their
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  Speaker 2: own systems using meet those before Methos is released to
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  Speaker 2: the public. What does that mean for this meeting that
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  Speaker 2: Anthropics CEO is scheduled to hold with Susie Wiles, the
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  Speaker 2: Chief of Staff today. Where what is the relationship right
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  Speaker 2: now between the White House and the company at large?
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  Speaker 2: Because government agencies are at least some of them want
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  Speaker 2: to use this model, but the Pentagon has black listed Anthropic.
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  Speaker 4: It's it's a great question, and it's a it's a
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  Speaker 4: little confusing. On the one hand, we have sort of
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  Speaker 4: top administrations in the officials and the Trump administration saying
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  Speaker 4: this company is a supply chain risk and they've been
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  Speaker 4: doing that as part of this dispute with the Pentagon
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  Speaker 4: over concerns about the artificial intelligence being used in surveillance
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  Speaker 4: or the targeting of weapons. On the other hand, we
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  Speaker 4: have top officials and the Trump administration also saying this
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  Speaker 4: is such a powerful tool. Hey, you banks, financial sector,
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  Speaker 4: we need you to use this. And this email that
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  Speaker 4: we got yesterday my reporting colleague Margie Murphy and I
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  Speaker 4: actually says the federal Chief Information Officer is working on
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  Speaker 4: building guardrails, you know, technical guard rails, so that the
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  Speaker 4: top cabinet level agencies and the government could begin.
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  Speaker 6: Using this tool.
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  Speaker 4: So it's it's a little bit confusing going into this meeting, right,
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  Speaker 4: Maybe a.
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  Speaker 5: Little cynical here, but it seems like individuals, consumers, corporations
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  Speaker 5: trying to figure out what AI is, how I use it,
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  Speaker 5: all that kind of stuff. I don't have a lot
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  Speaker 5: of confidence that my federal government is going to do
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  Speaker 5: a good job with AI here. How to what extent
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  Speaker 5: do we know that the various government agencies are trying
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  Speaker 5: to incorporate AI into their workflows.
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  Speaker 4: I mean, I think we've seen massive efforts across the
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  Speaker 4: federal government, as we have in many different industries across
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  Speaker 4: the private sector to build AI into their workflows. This
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  Speaker 4: tool is a little different, or at least we think
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  Speaker 4: it's a little different based on what we've heard from
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  Speaker 4: the limited number of people and organizations using it, in
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  Speaker 4: that it poses risks of a type that we haven't
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  Speaker 4: really seen taken this seriously before. We've been talking to
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  Speaker 4: people who are using it, and one of that is
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  Speaker 4: okay AI used to be able to do the digital
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  Speaker 4: equivalent of picking a law. Well, now now it can
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  Speaker 4: pull off oceans eleven right now it's doing full hest.
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  Speaker 3: Oh I like that analogy.
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  Speaker 5: I'm gonna steal it, by the way.
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  Speaker 2: Okay, So the capabilities it has is kind of a
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  Speaker 2: different order of magnitude than what we've seen so far.
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  Speaker 3: What kind of AI does the federal government use? Right now?
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  Speaker 3: What do we know in terms of the application.
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  Speaker 4: So different parts of the federal government use all sorts
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  Speaker 4: of AI tools, including chat, GBT or you know, the
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  Speaker 4: same types of large language models.
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  Speaker 6: You or your colleagues, or.
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  Speaker 4: Many people in many different sectors might consult to find
• 5:36
  Speaker 4: a quick answer to a question, or you know, look
• 5:40
  Speaker 4: up where they should stay in a trip.
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  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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• 6:03
  Speaker 2: And we want to go back and talk a little
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  Speaker 2: bit more about Netflix, because even though it didn't raise
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  Speaker 2: its forecast for this quarter, the numbers show that it
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  Speaker 2: is definitely making more money on existing subscribers than it
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  Speaker 2: had been. That's according to the company itself. They said
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  Speaker 2: customer retention has improved in every region in the first quarter,
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  Speaker 2: and we know they raise subscription prices in June as well.
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  Speaker 2: Mark Douglass is president and CEO of Mountain and he
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  Speaker 2: joins us now for some more analysis on Netflix and Mark.
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  Speaker 2: Netflix no longer really pushes the subscriber growth numbers. It's
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  Speaker 2: not even a figure that they released to investors anymore.
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  Speaker 2: It's all about making more money from your existing base
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  Speaker 2: of users. So what do we know about how much
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  Speaker 2: Netflix can extract from its subscribers.
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  Speaker 7: Yeah, so I think that's the right way for them
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  Speaker 7: to look at and for everyone to look at. Is
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  Speaker 7: just monetization. And so the way to think about it
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  Speaker 7: is that you have subscription pricing for all Netflix users.
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  Speaker 7: But I think they've announced in the past half of
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  Speaker 7: the new users are signing up for an ad supported tier.
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  Speaker 7: The numbers you typically think of when there's ad supported
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  Speaker 7: content for any network is that you can make somewhere
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  Speaker 7: between seven dollars or as much as fourteen dollars additional
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  Speaker 7: revenue per subscriber through ad supported tier. This is even
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  Speaker 7: and those numbers kind of originating cable television, but they've
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  Speaker 7: carried over into streaming and so where in cable sometimes
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  Speaker 7: networks are part of a bundle, but then they also
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  Speaker 7: were showing ads. Now you're part of a subscription, but
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  Speaker 7: there's also showing ads. So there's a lot of room
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  Speaker 7: to grow. Netflix is currently undermonetizing those users, meaning the
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  Speaker 7: people signing up for.
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  Speaker 6: The ad supported tier.
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  Speaker 7: So that is just a backlog of revenue that is
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  Speaker 7: coming and it's going to be coming for many years
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  Speaker 7: to come. I've said in the past I think Netflix
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  Speaker 7: could be the first trillion dollar media company in terms
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  Speaker 7: of market cap, be costs of the ads.
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  Speaker 5: Mark you're yea your company Mountain. You guys are right
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  Speaker 5: smack in the middle of all this digital advertising, television advertising.
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  Speaker 5: You know where the dollars go here. Yeah, for Netflix
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  Speaker 5: to really become a player in advertising, do they need
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  Speaker 5: a big sports franchise.
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  Speaker 7: I don't think they need a big sports franchise, mainly
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  Speaker 7: because I think sports is important. But Netflix, because they
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  Speaker 7: own this slot as like the first place the majority
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  Speaker 7: of streaming consumers go to, Like you turn on your
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  Speaker 7: TV and you kind of like, let me see what's
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  Speaker 7: on Netflix. They're able to turn things like WWE or
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  Speaker 7: a normal NFL game into these big events they turn
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  Speaker 7: you know, I think we talked once before about the
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  Speaker 7: largest female professional boxing match was streamed on Netflix and
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  Speaker 7: things like that. So they've been able to basically take
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  Speaker 7: not these kind of like NBA contracts and things like that,
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  Speaker 7: but take other types of sports tournaments to things that
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  Speaker 7: are very attractive to consumers and then monetize from there.
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  Speaker 7: But sports is important, just not like having an NFL
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  Speaker 7: contract but you know, for a whole season, or an
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  Speaker 7: MBA contract for a whole season.
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  Speaker 2: Market strikes me that a subscriber to the ad tier
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  Speaker 2: is probably more valuable than a subscriber who opts for
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  Speaker 2: the advertising free tier. So how would Netflix convince a
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  Speaker 2: Pall Sweeney or Scarlet Food to convert and to downgrade
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  Speaker 2: to that ad supported tier.
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  Speaker 7: From a subscriber perspective, I think that's going to be hard.
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  Speaker 7: I mean, I think it's pretty binary. You either want
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  Speaker 7: to pay for the full subscription or you don't, and
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  Speaker 7: the people paying the full subscription I don't think are
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  Speaker 7: price sensive. If Netflix is thinking, well, you're worth another
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  Speaker 7: in terms of revenue seven dollars if you're in the
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  Speaker 7: ad supported tier, well, that'll just be in your subscription costs,
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  Speaker 7: maybe a little bit discounted. But I don't think that's critical,
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  Speaker 7: especially when one out of two new subscribers are signing
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  Speaker 7: out for the ads tiers now, So it's not really
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  Speaker 7: I think that critical to convince everyone to do that
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  Speaker 7: when you're at fifty percent already.
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  Speaker 5: So our good friends at mathat Nathanson were out with
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  Speaker 5: the research report a couple of months ago where they
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  Speaker 5: did some work, and their work indicates that YouTube is
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  Speaker 5: actually the biggest media company in the world by value.
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  Speaker 5: What is your view of YouTube in this marketplace?
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  Speaker 6: They're so big?
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  Speaker 5: Do they still have room to grow? They're so big
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  Speaker 5: in the business?
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  Speaker 6: Yeah, I think absolutely so.
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  Speaker 7: The way I think of YouTube versus the entire rest
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  Speaker 7: of the streaming market. But let's continue in Netflix is
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  Speaker 7: YouTube kind of owns the day and Netflix and other
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  Speaker 7: media companies own the night, right like you, I don't
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  Speaker 7: think most people go home at eight o'clock and nine
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  Speaker 7: like let me put on a podcast, Like they want
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  Speaker 7: to watch their favorite shows across whatever networks they are.
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  Speaker 7: But during the middle of the day when they're if
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  Speaker 7: they're driving the work, if they're on the subway or
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  Speaker 7: things like that, You're going to tend to not be
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  Speaker 7: watching a favorite show while he's sitting on in a
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  Speaker 7: subway car in New York City. So I mean it's divided.
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  Speaker 7: Consumers want to be entertained essentially twenty four hours a day.
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  Speaker 7: Their choices are streaming at any time, but I think
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  Speaker 7: generally at night youtubees, Instagram, TikTok, and they're not in
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  Speaker 7: conflict with each other. I think the streaming industry is
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  Speaker 7: very healthy, growing and owns the highest form of entertainment
• 11:24
  Speaker 7: with consumers and the ones that they like most talk about,
• 11:28
  Speaker 7: most look forward to. And that's why you're able to
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  Speaker 7: monetize these at these levels and subscriptions at these levels
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  Speaker 7: is because of it.
• 11:35
  Speaker 5: Stay with us more from Bloomberg Intelligence coming up after this.
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• 11:57
  Speaker 2: The story also includes Netflix boosting spending on programming this year,
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  Speaker 2: especially live sports programming, things like the World Baseball Classic
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  Speaker 2: really paid off for them this past quarter, and they're
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  Speaker 2: in talks to expand the relationship with the NFL as well.
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  Speaker 2: Randall Williams is our Bloomberg Business of Sports reporter Randall
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  Speaker 2: How big a player is Netflix in live sports rights?
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  Speaker 6: Do you think there's big of a player as they
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  Speaker 6: want to be.
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  Speaker 8: If they would like to get into sports broadcasting and
• 12:24
  Speaker 8: having exclusive things, then I think that they will be
• 12:27
  Speaker 8: a huge factor. But right now they've been very selective.
• 12:29
  Speaker 8: They've done a lot of boxing things. As you said,
• 12:31
  Speaker 8: they've been more involved in MLB, but their strategy thus
• 12:34
  Speaker 8: far has been event focused, and in the NFL in particular,
• 12:38
  Speaker 8: there's few events like the NFL. I think is try
• 12:40
  Speaker 8: to make big events. So you think Thanksgiving, you think
• 12:42
  Speaker 8: Kickoff Day, you think the Christmas Day game, and then
• 12:45
  Speaker 8: of course NFL playoffs. But there are also other bidders
• 12:48
  Speaker 8: and Netflix hasn't I think, dove into the process of
• 12:51
  Speaker 8: trying to win a Thanksgiving Day game. They have Christmas
• 12:55
  Speaker 8: and Christmas has been great, but it's a lot better
• 12:57
  Speaker 8: than Beyonce's performing.
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  Speaker 5: I'll think they're serious when they go bid for a
• 13:01
  Speaker 5: Sunday afternoon NFL package.
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  Speaker 6: That's going to be the day.
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  Speaker 5: I'm going to ask you something else, Okay, because I
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  Speaker 5: think for me at least and for a lot of people,
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  Speaker 5: one of the bigger stories in sports in the last twenty.
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  Speaker 9: Four hours is Live Golf, absolutely, and there's some of
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  Speaker 9: the reporting. I'm surprised that we haven't heard anything definitive,
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  Speaker 9: but generally some of the reporting is perhaps the Saudi
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  Speaker 9: Arabian Fund is going to pull back its economic support
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  Speaker 9: for LIV and if that's the.
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  Speaker 5: Case, people wonder whether it can continue at all.
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  Speaker 8: Yeah, that's what's been what we've reported, what everybody else
• 13:30
  Speaker 8: has been reporting. You know, there was suspected that an
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  Speaker 8: announcement could come yesterday and then nothing came, and then
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  Speaker 8: Live Golf CEO Scott O'Neill said earlier this week that
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  Speaker 8: they're funded through the end of the year and we'll
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  Speaker 8: see what happens next year. And so it sounds like
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  Speaker 8: based on that that the funding will be pulled. It's
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  Speaker 8: not a matter of if, it's just a matter of
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  Speaker 8: when and then whoever, whether that be Scott himself, an
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  Speaker 8: investment bank, private equity will have to go out and
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  Speaker 8: find more money to keep this tour life.
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  Speaker 2: What happened to the players who went over to live golf,
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  Speaker 2: signed would live golf and then were essentially it feels
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  Speaker 2: like they're blackball from the PGA Tour. What happens to them,
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  Speaker 2: what happens to their careers?
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  Speaker 6: They're going to have a decision to make.
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  Speaker 8: I think the PGA Tour obviously opened the possibility for
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  Speaker 8: some golfers live golfers in particular, to come back. I
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  Speaker 8: don't know if that window has closed it or if
• 14:21
  Speaker 8: they will reopen that possibility, but I think in any event,
• 14:25
  Speaker 8: if they were to decide to go back to the
• 14:26
  Speaker 8: PGA Tour that they probably would face some penalties, and
• 14:29
  Speaker 8: the PGA Tour has been very strict with that.
• 14:31
  Speaker 6: So they could go to the DP World Tour.
• 14:33
  Speaker 8: There are other different leagues out there, but obviously, if
• 14:36
  Speaker 8: you ask golf fans where do they want the best
• 14:38
  Speaker 8: golfers playing, it's the PGA Tour.
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  Speaker 6: And the golfers.
• 14:40
  Speaker 8: Themselves know that live was an option, but it remains
• 14:44
  Speaker 8: unclear if it will continue to be an option long term.
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  Speaker 5: Interesting I've heard that. I mean, it's been reported that
• 14:49
  Speaker 5: the Saudis have lost you know, north of five billion
• 14:51
  Speaker 5: dollars in then now they're like, wait a minute, listen.
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  Speaker 8: They were cutting checks for players for hundreds and millions
• 14:57
  Speaker 8: of dollars, and I think for at a certain point
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  Speaker 8: of view, were a player, it was sort of silly
• 15:01
  Speaker 8: to not accept some of this money. You're talking about
• 15:03
  Speaker 8: one hundred million dollars in cash that was going to
• 15:05
  Speaker 8: be paid right away, and for some of the players
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  Speaker 8: it's like, do I think am I confident enough that
• 15:11
  Speaker 8: I'm going to be able to get this on the
• 15:12
  Speaker 8: golf course?
• 15:13
  Speaker 2: Scar Did livgolf ever really catch on with viewers or
• 15:18
  Speaker 2: fans in the US?
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  Speaker 6: I would not say so.
• 15:21
  Speaker 8: In the US now, there have been reports from Live
• 15:23
  Speaker 8: Golf that their business is growing, that they are on
• 15:26
  Speaker 8: track with different metrics that they have for themselves. But
• 15:29
  Speaker 8: if you were to ask the average American, you know,
• 15:32
  Speaker 8: where do you watch live golf? I'm not sure that
• 15:34
  Speaker 8: they would have an answer. And the reason for that
• 15:36
  Speaker 8: is because the PGA Tour has been around a long time.
• 15:38
  Speaker 8: It's hard to uproot any league that has been here
• 15:41
  Speaker 8: in America that is deeply rooted in American culture with
• 15:45
  Speaker 8: something new. It just doesn't happen across any sport.
• 15:47
  Speaker 6: I'm going to tell you what.
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  Speaker 5: I'm not a supporter of the Live Tour. I'm a
• 15:50
  Speaker 5: PGA person, but I'll tell you what every golfer, every
• 15:53
  Speaker 5: professional golfer, should thank Greg Norman and Phil Mickelson for
• 15:58
  Speaker 5: creating this whole live thing, because what a sentence. Lifted
• 16:00
  Speaker 5: the wages for everybody rare, including this weekend when the
• 16:04
  Speaker 5: Arbasi Classic down in hilton Head, which is historically a
• 16:07
  Speaker 5: smaller tournament, it's now what has a purse of twenty
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  Speaker 5: million dollars. Thank you, Greg Norman, Thank you for much.
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  Speaker 5: So now the question put them back together? Right?
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  Speaker 6: I mean, that's the thing though.
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  Speaker 8: That is an interesting perspective because for a long time,
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  Speaker 8: if you listen to the PGA Tour speak publicly about this,
• 16:23
  Speaker 8: they blame Live Golf for splitting things up, and there
• 16:25
  Speaker 8: was not a lot of accountability on how they could
• 16:28
  Speaker 8: do things better until the Strategic Sports Group came in.
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  Speaker 8: They invested a whole lot of money, and since then,
• 16:34
  Speaker 8: between the Strategic Sports Group and Brian Rollapp, the PGA
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  Speaker 8: Tour has been on fire. And I would say that
• 16:39
  Speaker 8: Live is running out of fuel.
• 16:41
  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
• 16:47
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
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• 17:01
  Speaker 5: Lots of M and A out there. The question is
• 17:04
  Speaker 5: what can get I guess past the regulars, And we
• 17:07
  Speaker 5: have an administration here that M and A bankers, M
• 17:09
  Speaker 5: and A lawyers felt like they can get a lot
• 17:11
  Speaker 5: done in this environment. And we'll see here. But there's
• 17:14
  Speaker 5: a lot of cases that the regulars are going to
• 17:16
  Speaker 5: have to deal with here, and who better to do that?
• 17:19
  Speaker 5: Look us up as Jennifer Ee, senior litigation analysts for
• 17:22
  Speaker 5: Bloomberg Intelligence. Jen let's just talk the one that popped
• 17:25
  Speaker 5: up this week and I was involved with as a
• 17:27
  Speaker 5: banker back in the day, Live Nation ticket Master. Everybody's
• 17:31
  Speaker 5: out there feels like our ticket prices are way too high,
• 17:33
  Speaker 5: there's way too many fees and what's going on in there?
• 17:37
  Speaker 10: Yeah, well, you know, it's a perfect example of what's
• 17:40
  Speaker 10: happening in this administration because the Department of Justice has
• 17:43
  Speaker 10: been pursuing that company for years. I mean, they had
• 17:45
  Speaker 10: a settlement when you were involved. Right when they acquired Ticketmaster,
• 17:48
  Speaker 10: they violated that settlement, they were found to be in violation,
• 17:51
  Speaker 10: they entered a new settlement, and now still we've had
• 17:54
  Speaker 10: a trial. The Department of Justice had sued. The Department
• 17:57
  Speaker 10: of Justice wasn't part of that trial because they settled
• 18:00
  Speaker 10: the case in the first week with Live Nation. It
• 18:02
  Speaker 10: was a pretty big surprise to a lot of people.
• 18:04
  Speaker 10: But apparently it's been reported that there were lobbyists hired
• 18:07
  Speaker 10: that influenced the administration and got a pretty good settlement
• 18:10
  Speaker 10: for Live Nation out of it. But we have states
• 18:13
  Speaker 10: that also enforce the antitrust laws. They can enforce the
• 18:16
  Speaker 10: exact same laws the Department of Justice can, and they continued.
• 18:19
  Speaker 10: Most of them. A few settled, but most of them
• 18:21
  Speaker 10: continued to pursue Live Nation, and they won a liability
• 18:24
  Speaker 10: verdict from a jury that Live Nation has monopolized certain
• 18:27
  Speaker 10: aspects of the live concert industry.
• 18:30
  Speaker 2: So put it all together, what does that likely mean
• 18:32
  Speaker 2: for Paul Sweeney when he wants to buy tickets to
• 18:35
  Speaker 2: a summer festival next year.
• 18:37
  Speaker 10: Well, let's just hope it means that those tickets are
• 18:39
  Speaker 10: a little easier to get and less expensive. Probably not
• 18:42
  Speaker 10: by next year, though. These things take a really long time,
• 18:45
  Speaker 10: and it's highly likely that once the judge issues is remedy,
• 18:48
  Speaker 10: which could take another six months, that Live Nation will
• 18:51
  Speaker 10: then appeal that, and usually a remedy, particularly if it's
• 18:54
  Speaker 10: fairly intrusive, it will be stayed depending the appeal, which
• 18:57
  Speaker 10: means nothing's going to change. So when Paul buys a
• 19:00
  Speaker 10: tickets next year, he's still going to face some a
• 19:02
  Speaker 10: lot of fees until this gets through the appeals process,
• 19:06
  Speaker 10: possibly even get all the way through to the Supreme Court.
• 19:09
  Speaker 2: What happens with the ticket resellers, those other companies out
• 19:12
  Speaker 2: there access some thinking.
• 19:14
  Speaker 3: Stub Hub, did they have a role in all of this?
• 19:17
  Speaker 10: You know they do because several of them have really
• 19:20
  Speaker 10: been trying to get into what we call the primary
• 19:22
  Speaker 10: ticketing market, not reselling, but being hired by the venue
• 19:25
  Speaker 10: to sell the tickets for the concert in the first hand,
• 19:28
  Speaker 10: and they've really struggled because Live Nation has such a stranglehold.
• 19:31
  Speaker 10: So right now they're watching and waiting hoping that whatever
• 19:34
  Speaker 10: this remedy is that the judge imposes will open up
• 19:37
  Speaker 10: competition and allow them to gain a little more market share,
• 19:40
  Speaker 10: get a few more contracts with some venues and sell
• 19:42
  Speaker 10: more primary tickets.
• 19:43
  Speaker 5: Let's get some get to some rand news here. President
• 19:46
  Speaker 5: Trump said Iran agreed to suspend its nuclear program indefinitely
• 19:50
  Speaker 5: and will not receive any frozen funds from the US.
• 19:53
  Speaker 5: Trump set in a phone interview on Friday that a
• 19:55
  Speaker 5: deal to end the war, which the US and Israel
• 19:58
  Speaker 5: began with Iran in late February mostly complete. Talks overlasting
• 20:02
  Speaker 5: agreement will quote probably be held this weekend, the President said.
• 20:06
  Speaker 5: Bloomberg Balance a power with Joe Matthew will bring you
• 20:08
  Speaker 5: all of the details in just a few minutes. Jen,
• 20:11
  Speaker 5: let me get to another deal. It's deal. It's near
• 20:14
  Speaker 5: and dear to my heart, which is Paramount Sky Dance, Yes,
• 20:17
  Speaker 5: acquiring Warner Brothers, Discovery Mega mega deal in the media space.
• 20:22
  Speaker 5: What are the regulators going to say about this?
• 20:23
  Speaker 10: Well, in the US, they've already spoken and they said
• 20:26
  Speaker 10: we're fine with it.
• 20:27
  Speaker 5: Nice.
• 20:27
  Speaker 10: Yeah, I mean, the Department of Justice allowed the Heart
• 20:30
  Speaker 10: Scott Redina waiting period, that's the period the companies have
• 20:33
  Speaker 10: to wait before they can close to allow for anti
• 20:35
  Speaker 10: trust review. They allowed it to expire. Now I've seen
• 20:38
  Speaker 10: news that some subpoenas were sent out since then, I
• 20:40
  Speaker 10: don't really think that means much because in the US
• 20:43
  Speaker 10: right now, legally the companies can close. The reason they
• 20:46
  Speaker 10: haven't is because they're waiting for Europe and UK, which
• 20:48
  Speaker 10: also have jurisdiction, to review the deal, and they cannot
• 20:51
  Speaker 10: close until they get that. But I'm not so sure
• 20:54
  Speaker 10: that the European regulators are going to have much of
• 20:57
  Speaker 10: an issue with this because the impact is more in
• 20:59
  Speaker 10: the US in terms of labor in putting together those
• 21:01
  Speaker 10: movie studios.
• 21:03
  Speaker 2: But we know that there's a lot of opposition, especially
• 21:06
  Speaker 2: in the Hollywood creative community, to this deal. In fact,
• 21:09
  Speaker 2: more than one thousand Hollywood actors and screenwriters have written
• 21:14
  Speaker 2: this letter of opposition, really pointing out the harm that
• 21:17
  Speaker 2: it will do. The goal, according to these folks, is
• 21:20
  Speaker 2: to get state attorneys general to stand up and oppose
• 21:24
  Speaker 2: this deal. Does that have any legs to it?
• 21:27
  Speaker 10: Absolutely? The States, as I said, can enforce the same
• 21:30
  Speaker 10: anti trust laws as the Department of Justice, and they've
• 21:32
  Speaker 10: been talking for several years now about stepping in. If
• 21:35
  Speaker 10: the new Trump administration was lax on anti trust enforcement,
• 21:38
  Speaker 10: they would step in and pick up the mantle and
• 21:40
  Speaker 10: run with it. And we're seeing that they've done that.
• 21:42
  Speaker 10: They have a lawsuit right now pending against the next
• 21:45
  Speaker 10: Star techna deal, which was also cleared already by the
• 21:48
  Speaker 10: FCC and the Department of Justice. And if they get
• 21:50
  Speaker 10: enough pressure, if there's enough consumer concerned about the Paramount deal,
• 21:54
  Speaker 10: I could see the States bringing a lawsuit and they
• 21:56
  Speaker 10: have a shot.
• 21:57
  Speaker 5: Thirty seconds. Jen, there was a story recently United and
• 22:00
  Speaker 5: American Airlines singing together.
• 22:02
  Speaker 6: No way.
• 22:03
  Speaker 10: I think no textbook anti competitive. Of course, I said
• 22:05
  Speaker 10: that about Sprint and T Mobile and that deal got done.
• 22:08
  Speaker 10: I think that it's just posturing. I don't really see
• 22:10
  Speaker 10: that deal coming together. I think even if there's lobbying
• 22:13
  Speaker 10: to the Trump administration, I don't know how the Department
• 22:16
  Speaker 10: of Transportation or the Department of Justice clears that deal
• 22:18
  Speaker 10: without massive divestitures. And I don't even know if that's fatal.
• 22:21
  Speaker 2: I mean, Jeppelin Spirit weren't allowed to get yes, and
• 22:23
  Speaker 2: I know that was under a different administration. If you
• 22:26
  Speaker 2: put together American and United, that becomes the biggest airliness
• 22:29
  Speaker 2: in the US by a lot.
• 22:30
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