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Broadcom Seeks More Than $60 Billion in Latest AI Debt Deal · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 2: I want to bring in man Deep Sing, he is
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  Speaker 2: our global head of tech research here at Bloomberg Intelligence,
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  Speaker 2: to give us kind of a preview into not just
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  Speaker 2: in video results, but Broadcom as well as the semiconductor
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  Speaker 2: socks seem to have lost a little bit of momentum,
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  Speaker 2: you know, over the last couple of weeks.
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  Speaker 3: Man Deep.
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  Speaker 2: When in video reported results a couple of years ago,
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  Speaker 2: it was like a cultural event. People held watch parties
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  Speaker 2: in bars and cheered when the numbers came out. They
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  Speaker 2: were all tuning in too. Bloomberg Television to other financial
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  Speaker 2: news networks, are in video results still the cultural event
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  Speaker 2: that they once were.
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  Speaker 4: Well, I think it has become a lot bigger and
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  Speaker 4: it's hard to produce those kind of beats that they
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  Speaker 4: did a couple of years back. But still it is
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  Speaker 4: one of the biggest tech names in all indices. And look,
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  Speaker 4: I think when it comes to this AI cycle and
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  Speaker 4: Vidia still is at the front end center of the buildout,
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  Speaker 4: and now they are using their balance sheet for you know,
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  Speaker 4: a lot of the buildout to happen, So they're not
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  Speaker 4: just selling the chips, but also using the balance sheet
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  Speaker 4: in a big way to create an ecosystem around what
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  Speaker 4: they're doing.
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  Speaker 5: Mande, let's talk a little bit about Broadcom.
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  Speaker 6: You know, one of the things that we've been concentrating
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  Speaker 6: on is how much issuance has been coming out of
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  Speaker 6: AI issuers into the corporate market. But the deal that
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  Speaker 6: they're talking about financing now with Broadcom is a little
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  Speaker 6: bit different because it's talking about doing debt of different
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  Speaker 6: parts of the capital stack. How do you think about that?
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  Speaker 6: From looking at the balance sheet of these companies and
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  Speaker 6: how much DEBTA they issue and wear, does that matter
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  Speaker 6: for overall valuations for you or thinking about how they
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  Speaker 6: might finance themselves in the future.
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  Speaker 7: It does.
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  Speaker 4: And I think this Broadcom deals specifically the sixty billion
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  Speaker 4: dollars of debt and what Nvidia announced a couple of
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  Speaker 4: weeks back with the six private equity players of around
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  Speaker 4: five hundred billion dollars, that's an interesting structure. The special
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  Speaker 4: purpose vehicle structure that will buy the chips from Broadcom
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  Speaker 4: in this case and then lease it to Entropic. And
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  Speaker 4: the goal here is for you know, Broadcom to sell
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  Speaker 4: its chips, but Entropic doesn't want to pay for all
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  Speaker 4: of that up front so that it doesn't have to
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  Speaker 4: carry that on its balance sheet. I mean, remember, Entropic
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  Speaker 4: is a fast growing lab that is yes, at a
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  Speaker 4: very high trajictory, but it doesn't have the balance sheet
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  Speaker 4: of the hyperscalers terms of paying up for those chips
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  Speaker 4: and setting up their data centers. So in this case,
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  Speaker 4: I think it really helps avoid Andthropic kind of buying
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  Speaker 4: all of that as opposed to leasing, which is what
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  Speaker 4: they would be doing in this case with this special
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  Speaker 4: purpose vehicle structure. And the same thing is with Nvidia.
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  Speaker 4: Nvidia is using its balance sheet along with the private
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  Speaker 4: equity players to set up this special purpose vehicle which
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  Speaker 4: will buy the chips and then lease it out to
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  Speaker 4: users like open ai or other companies that want to
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  Speaker 4: use those chips.
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  Speaker 3: I have a dumb question.
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  Speaker 2: We know that some of the hyperscalers, I believe it
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  Speaker 2: was Alphabet that went negative free cashlow for the first
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  Speaker 2: time this quarter.
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  Speaker 3: Is that right?
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  Speaker 2: Mandep yes, Okay, could in Nvidia ever go negative free
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  Speaker 2: cashlow given the buildout that's required here for all this
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  Speaker 2: AI infrastructure, or because it's a key supplier, it's not
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  Speaker 2: in the same boat.
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  Speaker 4: No, because I remember they are generating you know, like
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  Speaker 4: almost one hundred billion plus and free cash flow every year,
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  Speaker 4: So they've become what Apple has done over the past decade,
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  Speaker 4: you know, and with seventy five percent growth margins. They
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  Speaker 4: will continue to do that in the foreseeable future. And
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  Speaker 4: they're not setting up you know, their own fabs, so
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  Speaker 4: the only investment they have is really in terms of
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  Speaker 4: backstopping a lot of these SPB structures. So I don't imagine,
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  Speaker 4: you know, Nvidia kind of making a big investment that
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  Speaker 4: they will get into negative free platform situation.
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  Speaker 2: Okay, before we let you go, Anthropic were it feels
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  Speaker 2: like we're starting to get more details about its upcoming IPO.
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  Speaker 2: For instance, our reporting here at Bloomberg indicates that Anthropic
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  Speaker 2: will match or beat the size of SpaceX's record setting up.
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  Speaker 2: Stay with us more from Bloomberg Intelligence coming up after
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  Speaker 2: this market environment, is this something where if equities turn
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  Speaker 2: south or the bond issue because comes more turbulent the
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  Speaker 2: Anthropic might delay its IPO. How sensitive do you think
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  Speaker 2: Anthropic is to those macro conditions?
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  Speaker 4: Very unlikely given what we have seen with SpaceX. And
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  Speaker 4: remember and Tropic has gone from almost ten billion dollars
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  Speaker 4: in ERR to sixty five billion dollars in a span
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  Speaker 4: of eight months, and they expect to close the year
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  Speaker 4: at around one hundred billion dollars in rare almost at
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  Speaker 4: ten x. When you have a company like this at
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  Speaker 4: this scale, I mean they would not have a problem
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  Speaker 4: going public and raising money and give it how well
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  Speaker 4: SpaceX did you know with eighteen billion dollar underrate and
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  Speaker 4: much lower growth. I mean people would be lining up
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  Speaker 4: for this IPO regardless of the market conditions.
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  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 2: We were talking ira about Anthropic and this AI company
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  Speaker 2: that's going to come public at some point, and Man
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  Speaker 2: Deepsin doesn't think that market.
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  Speaker 3: Conditions will be a deterrent for it. If something were
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  Speaker 3: to happen.
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  Speaker 6: Yeah, the IPO market, I don't remember it being this
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  Speaker 6: robust for the last fifteen years, really, right, there was
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  Speaker 6: a lot of when interest rate thor at zero, a
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  Speaker 6: lot of companies, you know, either didn't go public or
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  Speaker 6: were issuing debt as a form of financing. But now
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  Speaker 6: it seems like the primary market and the equity world
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  Speaker 6: is open for business and means of financing for a
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  Speaker 6: lot of these names.
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  Speaker 2: All right, Anthony Hughes is with us. He's our senior
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  Speaker 2: equity capital markets reporter. Anthony, what do we know about
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  Speaker 2: the upcoming IPO You've been doing a lot of reporting
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  Speaker 2: on it.
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  Speaker 8: Yeah, Well, obviously, after the experience of SPICEX in jam,
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  Speaker 8: we're well versed in this process. But there has been
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  Speaker 8: certainly a pickup in the number of stories about Aanthropic
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  Speaker 8: in the last few weeks. And I think you could
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  Speaker 8: say that that this pep's a leading indicated that the.
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  Speaker 5: Deal is getting close to fruition.
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  Speaker 8: And you know, I think based on a whole bunch
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  Speaker 8: of different stories, I think you could say that we're
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  Speaker 8: sort of basically expecting Anthropic to file pretty soon here,
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  Speaker 8: potentially as early as late next week. I think would
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  Speaker 8: be possible, and they if they did that, they would
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  Speaker 8: have to wait fifteen days to launch the deal, and
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  Speaker 8: then after about a week or so of a road
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  Speaker 8: show they would go public. And the way the math
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  Speaker 8: of that works out is that Anthropic could potentially be
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  Speaker 8: public in late September.
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  Speaker 5: I mean, I think talking to some.
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  Speaker 8: Sources, I would say that people were talking, Oh, maybe
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  Speaker 8: it's going to be late September, early Octobers. There's always
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  Speaker 8: a potential for some slippage there, but I think, as
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  Speaker 8: we saw with SpaceX, when it's a deal that's going
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  Speaker 8: to create a lot of excitement, good and bad, I
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  Speaker 8: think that Anthropic is going to be something that people
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  Speaker 8: investors going to want to take a good look at.
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  Speaker 8: And I think there's nothing that's really going to stand
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  Speaker 8: the way of it actually going full speed ahead and
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  Speaker 8: not having any delays. So I think you have to
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  Speaker 8: pretty much assume in the situation, and SpaceX was really quick,
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  Speaker 8: but Anthropic will be pretty much on schedule after they
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  Speaker 8: file confidentially on June one. But you know, it's sort
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  Speaker 8: of a two three month review process after you file confidentially.
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  Speaker 8: But you can see here that Anthropics is sort of
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  Speaker 8: basically positioned to go public, you know, right on schedule
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  Speaker 8: after they file confidentially, basically.
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  Speaker 6: Just really quickly. Does it seem like there's going to
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  Speaker 6: be decent demand? I mean, obviously some of these deals
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  Speaker 6: have come with just absolute you know, eye popping demand numbers.
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  Speaker 5: Is the same thing likely for Anthropic Well, I think
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  Speaker 5: it remains to be seen.
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  Speaker 8: But I think the indications I'm getting from people we
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  Speaker 8: talk to in the market is that you know, there
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  Speaker 8: is going to be a lot of interest in this one.
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  Speaker 8: I mean, the reality is of whether you're a believer
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  Speaker 8: in AI or not. The company has a very high
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  Speaker 8: growth rate, and you know, when you ever see company
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  Speaker 8: with a high growth rate, there's going to be a
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  Speaker 8: lot of interest.
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  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast just Live weekdays
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  Speaker 1: at ten am Eastern on Apple, Cocklay and Android Auto
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  Speaker 2: We're at the end of a week in which we
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  Speaker 2: got some big earnings from the retail sector, notably Walmart,
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  Speaker 2: Target as well. I'm curious in terms of what this
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  Speaker 2: all means for where things stand for the US consumer
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  Speaker 2: and the road ahead.
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  Speaker 3: Let's bring up Punam Goyel.
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  Speaker 2: She's senior US e Commerce and retail analyst Apploomberg Intelligence.
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  Speaker 2: She joins US now from Princeton, New Jersey. Walmart has
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  Speaker 2: had a rough go. The results were okay, but investors
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  Speaker 2: were not too impressed, and in fact, the stock is
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  Speaker 2: down for a sixth day and seven yesterday it plunged
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  Speaker 2: nine percent. Today it has extended that decline. Are people
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  Speaker 2: rethinking whether Walmart can come out ahead in this higher
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  Speaker 2: interest rate, higher inflation environment?
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  Speaker 7: Sure? So, I think there's two things happening with the
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  Speaker 7: results yesterday. The first is that when you look at
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  Speaker 7: the Walmart results, the underlying health of the consumer remains
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  Speaker 7: strong and remains intact. Because what really caused the stock
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  Speaker 7: to fall is the deflation that we're seeing in pharmacy
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  Speaker 7: sales and that caused the comp to be weaker than expected.
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  Speaker 7: And three Q guidance that remains in place for the
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  Speaker 7: back half of the year, So that is going to
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  Speaker 7: deflate Walmart's comp as we move into the back half.
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  Speaker 7: When we think about the consumer and how the consumer
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  Speaker 7: is shopping, traffic was up in fact, traffic was up
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  Speaker 7: at both Walmart and at Target. So those are encouraging
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  Speaker 7: signs that the consumer is still going out and spending.
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  Speaker 7: And when you look at the e commerce sales at
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  Speaker 7: Walmart over twenty percent, it shows you the strength of
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  Speaker 7: the spending. Now, does the consumer care about value? Absolutely?
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  Speaker 7: Both retailers are slashing prices, They're providing more value and
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  Speaker 7: we think that will continue to draw customers to their
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  Speaker 7: brands over others.
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  Speaker 6: But putting on in the longer term, how have we
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  Speaker 6: seen the tariff picture and a lot of the I
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  Speaker 6: don't want to call it a trade war, but you
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  Speaker 6: know the budding of heads between the President Trump and
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  Speaker 6: the Chinese administration on tariffs. And has that affected either
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  Speaker 6: of these retailers. I know Walmart used to get a
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  Speaker 6: significant amount of its of its stock from China.
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  Speaker 7: Yeah, so when you look at Walmart specifically, more than
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  Speaker 7: half of Walmart's businesses grocer so much of that stuff
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  Speaker 7: is less impacted from what comes from China. But when
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  Speaker 7: you look at the discretionary side of the business apparel,
• 11:27
  Speaker 7: home toys, etc. There is an impact. And yes, tariffs
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  Speaker 7: have raised costs for retailers like Walmart and Target and
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  Speaker 7: even others across the US because most of what we
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  Speaker 7: consume is brought in from abroad, especially on the discretionary side.
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  Speaker 7: Now that said, I think the tariff situation was worse
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  Speaker 7: off last year when we were talking about one hundred
• 11:48
  Speaker 7: plus percent tariffs from China. From that standpoint, we've come
• 11:51
  Speaker 7: down a lot, and I think the new tariffs that
• 11:54
  Speaker 7: are in discussion are calling for a ten to fifteen
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  Speaker 7: percent increase. Those are manageable, So I think we're at
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  Speaker 7: a place where retailers now know how to mitigate some
• 12:04
  Speaker 7: of this teriff increase through supplier negotiations, through internal efficiencies,
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  Speaker 7: and yes, they're passing some prices onto the consumer, but
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  Speaker 7: Walmarts and Amazons are trying to hold back for as
• 12:15
  Speaker 7: long as they can before they can pass those on.
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  Speaker 2: The tariff refunds have been a big theme for company
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  Speaker 2: earnings this last quarter and will probably continue to be.
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  Speaker 2: But I wonder for how much longer because it feels
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  Speaker 2: like it's a one time boost, but you can't count
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  Speaker 2: on it going forward, can you.
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  Speaker 7: Absolutely it is a one time boost for sure, So
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  Speaker 7: it helped in two Q results for many retailers across
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  Speaker 7: the board, including Walmart, I think the boost gets smaller
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  Speaker 7: as we moved through the back half. For most retailers,
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  Speaker 7: the bulk was realized in the second quarter itself. But
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  Speaker 7: I wouldn't expect this refund to continue into twenty twenty seven.
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  Speaker 7: I think we will see some in three Q, but
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  Speaker 7: once they've essentially received or gotten that refund back, that's
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  Speaker 7: the new tariffs in place don't qualify for a refund.
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  Speaker 6: So, but I'm talking to us a little bit about
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  Speaker 6: how consumers have been shifting their patterns of purchases. You know,
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  Speaker 6: when I look at the retail sales report at the
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  Speaker 6: macro level, it often, you know, they have non store retailers,
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  Speaker 6: and it's still relatively small compared to all the times
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  Speaker 6: that I click online to buy something. It seems like
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  Speaker 6: it's you know, a lot more that I seem to
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  Speaker 6: purchase online, but it's only twenty ish percent of total
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  Speaker 6: retail sales comes from online.
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  Speaker 5: You have a really.
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  Speaker 6: Great chart here in your chart pack from about ten
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  Speaker 6: days ago talking about like active users on different apps
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  Speaker 6: and stuff like that to buy. So have these you know,
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  Speaker 6: trend toward online slow down at all or how have
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  Speaker 6: any of those trends been changing?
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  Speaker 4: Sure?
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  Speaker 7: So when you look at those numbers that you're talking
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  Speaker 7: about in the retail sales report. The one thing I'd
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  Speaker 7: keep in mind is when you're looking at the non
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  Speaker 7: store retail line, you're not looking at e commerce sales
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  Speaker 7: from the brick and mortar businesses themselves, So a big
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  Speaker 7: piece of the equation is missing. By our estimate and
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  Speaker 7: our e commerce model, retail online sales is a percent
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  Speaker 7: of total retail. They are closer to over twenty five
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  Speaker 7: percent today, and we think they're edging the thirty one
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  Speaker 7: percent of total retail in the next three to four years.
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  Speaker 7: So the opportunity for retail sales to grow online is
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  Speaker 7: still very vast, and it's still very large. In fact,
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  Speaker 7: when you look at some of the numbers, whether it's
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  Speaker 7: from Amazon or whether it's from even Walmart, you're seeing
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  Speaker 7: plus twenty percent gains in e commerce. So I think
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  Speaker 7: the shift to e commerce is still very much real,
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  Speaker 7: it's happening, it's outpacing store growth. That said, there are
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  Speaker 7: some categories that do better online than others. For example,
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  Speaker 7: food is still underpenetrated online, and while we're seeing it
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  Speaker 7: increase slightly, there's a long runway to go on the
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  Speaker 7: grocery side of the business.
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  Speaker 2: Yeah, I think about Walmart Plus and how much money
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  Speaker 2: Walmart has put into developing its e commerce platform and
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  Speaker 2: how it's paid off tremendously in so far as the
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  Speaker 2: stock return has done much better, and the company is
• 15:03
  Speaker 2: trying to call itself a bit of a tech.
• 15:06
  Speaker 3: Company in many ways.
• 15:07
  Speaker 2: What has Target's efforts been like when it comes to
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  Speaker 2: e commerce?
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  Speaker 7: So Target's also making an e commerce push, and you
• 15:14
  Speaker 7: know they have Target, they have the shipping with Target
• 15:17
  Speaker 7: also as part of their membership and their Target circle.
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  Speaker 7: I would say that the two are a little different
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  Speaker 7: when you look at how big they are in e commerce.
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  Speaker 7: Walmart's scaled up quite nicely, right, Walmart's today about one
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  Speaker 7: hundred and fifty billion dollars when you look at it's
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  Speaker 7: e commerce sales. Target's not there yet. And one of
• 15:32
  Speaker 7: the big reasons that you're seeing such a differentiation between
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  Speaker 7: the two is much of Walmart's scale in e commerce
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  Speaker 7: comes from food and grocery. So when you think about
• 15:42
  Speaker 7: Walmart Plus, it's I need avocados today, so I'm going
• 15:46
  Speaker 7: to get them shipped. I need spinach, I need this,
• 15:48
  Speaker 7: It's easy. Whereas Target, the mix of targets Business is
• 15:52
  Speaker 7: twenty percent grocery and eighty percent discretionary, and Walmart's fifty
• 15:56
  Speaker 7: percent grocery are more. So there's a clear differentiator in
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  Speaker 7: how big e those can get based on the verticals
• 16:01
  Speaker 7: that they compete in.
• 16:03
  Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this.
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  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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• 16:20
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 16:25
  Speaker 2: So we've got Ira Jersey. He is a noted soccer
• 16:29
  Speaker 2: I don't want to say fanatic, but fan.
• 16:31
  Speaker 5: I'm a fanatic. I also own a minor league soccer team.
• 16:34
  Speaker 2: Okay, so he's an investor as well. Let's bring in
• 16:37
  Speaker 2: Randall Williams. He's our Bloomberg Business of Sports reporter. A
• 16:40
  Speaker 2: lot to talk about with you, Randall, and we'll get
• 16:42
  Speaker 2: to soccer momentarily and Ira, will you know, school you
• 16:45
  Speaker 2: on all of that. But I wanted to get your
• 16:47
  Speaker 2: take on what's going on in baseball because there's an
• 16:49
  Speaker 2: interesting development here with shares of the Atlanta Braves, which
• 16:53
  Speaker 2: is publicly traded. Short sellers are ratchetally ratcheting up their
• 16:58
  Speaker 2: bets against the company because they're worried that there's going
• 17:02
  Speaker 2: to be a lockout for the twenty and twenty seven season.
• 17:05
  Speaker 3: So we're seeing it play out in financial markets.
• 17:08
  Speaker 2: Short interest in the Class C stock of Atlanta Braves
• 17:10
  Speaker 2: has tripled over the last twelve months to almost seven
• 17:13
  Speaker 2: percent of shares available to be traded.
• 17:17
  Speaker 3: What's the latest on the possible lockout here for the
• 17:20
  Speaker 3: twenty twenty seven season.
• 17:22
  Speaker 9: Well, they're continuing to negotiate, but there's been no real progress.
• 17:25
  Speaker 9: Otherwise I'd be here every Friday talking about it. The
• 17:29
  Speaker 9: bottom line is that the MLB wants both a salary
• 17:32
  Speaker 9: cap floor and a ceiling so that it caps the
• 17:36
  Speaker 9: spending the teams can have, and the players just want
• 17:39
  Speaker 9: a floor. It'd be tough to argue that a salary
• 17:43
  Speaker 9: cap is needed based on the results that are happening
• 17:45
  Speaker 9: right now with the Dodgers, who have recently been losing
• 17:49
  Speaker 9: a lot of games. But ultimately, if the Dodgers win,
• 17:51
  Speaker 9: then that helps. I think the MLB's the MLB owners
• 17:54
  Speaker 9: is argument, and if they lose then it hurts it.
• 18:00
  Speaker 6: Staying in Atlanta can we talk a little bit about
• 18:02
  Speaker 6: the Falcons trying to sell ten percent of of the franchise.
• 18:08
  Speaker 6: I guess to KKR, you know, we're seeing more and
• 18:11
  Speaker 6: more investment by non traditional private equity kind of investors
• 18:16
  Speaker 6: in sports teams. So you know, is this a trend
• 18:19
  Speaker 6: that you think might accelerate and what are some of
• 18:21
  Speaker 6: the details that we know of?
• 18:23
  Speaker 9: Yeah, I think it definitely will accelerate. If you look
• 18:26
  Speaker 9: at some of the valuations out there, we'll learn more,
• 18:28
  Speaker 9: I believe in October when the NFL has another league meeting.
• 18:31
  Speaker 9: But if the reports from CNBC and sport cover are
• 18:34
  Speaker 9: true that this has valued at over ten billion dollars,
• 18:37
  Speaker 9: then Arthur Blank essentially just got a billion dollar blank
• 18:40
  Speaker 9: check to spend anywhere that he'd like. And that's the
• 18:44
  Speaker 9: reality of having private equity in sports is that they
• 18:47
  Speaker 9: are blank check writers. And what remains to be seen
• 18:50
  Speaker 9: is the returns. These are not short term plays. You
• 18:53
  Speaker 9: hardly ever see private equity firms try to flip their
• 18:57
  Speaker 9: stakes their long term holders. What is this one billion
• 19:00
  Speaker 9: dollars going to be and let's say fifteen to twenty years,
• 19:04
  Speaker 9: Could it be three billion, could it be four billion?
• 19:06
  Speaker 9: I don't think that it's out of the realm of possibility.
• 19:11
  Speaker 2: Randall, what is the latest with Mark Walter, the owner
• 19:14
  Speaker 2: of the LA Dodgers for now, the once owner of
• 19:17
  Speaker 2: the LA Lakers, and I believe the owner of Chelsea Ira.
• 19:21
  Speaker 5: Is he still I think he's involved somewhere.
• 19:24
  Speaker 9: Yeah, Okay, he's getting ready to sell some of his everything.
• 19:28
  Speaker 9: It feels like the things that are not on the
• 19:31
  Speaker 9: table right now are the Dodgers and the Cadillac F
• 19:34
  Speaker 9: one team, as well as the Professional Women's Hockey League.
• 19:38
  Speaker 9: But of course he executed that sale to Joshua Kushner
• 19:42
  Speaker 9: and Bob Iger or I won't say last week that
• 19:44
  Speaker 9: was it feels like forever ago, when it was really
• 19:46
  Speaker 9: just yesterday. And then you have the other Lakers drama
• 19:49
  Speaker 9: with the Bus family. But he's selling off some of
• 19:52
  Speaker 9: everything to try to pay down some of this loan
• 19:55
  Speaker 9: investigation and things like that that are happening. I expect
• 19:58
  Speaker 9: the sale of to Bob Eiger and Joshua Kushner to
• 20:01
  Speaker 9: go through, whether the Bus family drama is settled or not.
• 20:06
  Speaker 6: So you know, another story out there that you've been
• 20:10
  Speaker 6: writing about this week is about the Knicks and the
• 20:13
  Speaker 6: Rangers and their relationship with Madison Square Garden. You know,
• 20:16
  Speaker 6: I came into Penn Station this morning, so you know,
• 20:19
  Speaker 6: just right underneath the Madison Square Garden, you know, talk
• 20:22
  Speaker 6: about what's going on there, and you know, is this
• 20:25
  Speaker 6: an attempt to you know, get value out of these
• 20:28
  Speaker 6: franchises or is it something a little bit more myopic?
• 20:32
  Speaker 9: Yeah, I think you get a proper valuation if you
• 20:34
  Speaker 9: split the businesses. And that's what it appears that James
• 20:36
  Speaker 9: Dolan and Madison Square Garden Sports Corporation are trying to do,
• 20:39
  Speaker 9: which is separate the Knicks business and then separate the
• 20:42
  Speaker 9: Rangers business to see what the valuations of each are.
• 20:46
  Speaker 9: And I think if they were to go in the
• 20:48
  Speaker 9: market that they would sell for astronomical prices. The Knicks
• 20:51
  Speaker 9: would probably be value. If the Lakers are at twelve
• 20:54
  Speaker 9: and a half billion dollars, then they didn't even hit
• 20:56
  Speaker 9: the open market. You really have to start, you know,
• 20:58
  Speaker 9: at eleven and a half or well for the Knicks,
• 21:01
  Speaker 9: and you could argue it should be the same price
• 21:03
  Speaker 9: as the Lakers. The Rangers, I think are one of
• 21:06
  Speaker 9: the most valuable teams in the NHL, and so they
• 21:08
  Speaker 9: would fetch a pretty high price too. And This is
• 21:10
  Speaker 9: majority stake sales that James Doland has not discussed. So
• 21:14
  Speaker 9: if you were to sell minority interest, and you have
• 21:17
  Speaker 9: to imagine again, we just talked about the Falcons and
• 21:21
  Speaker 9: what ten percent of that of that franchise could be
• 21:24
  Speaker 9: worth a billion dollars. That same thing can be said
• 21:26
  Speaker 9: for the Knicks and the Rangers. Not for the Rangers
• 21:29
  Speaker 9: in a billion, but it would still be a lot
• 21:31
  Speaker 9: of money.
• 21:32
  Speaker 3: You know, the Rangers haven't done anything since nineteen ninety four, whereas.
• 21:34
  Speaker 6: The next you know between twos an Islanders fan, don't
• 21:37
  Speaker 6: go there, okay, okay, Ira question on soccer for mister
• 21:40
  Speaker 6: Randa Williams. Yeah, So, you know, we talked about KKR
• 21:44
  Speaker 6: and some of these other equity investments and more and
• 21:46
  Speaker 6: more Americans instead of investing domestically in in soccer, you know,
• 21:51
  Speaker 6: they've invested a lot overseas and all over Europe, really right, Italy,
• 21:56
  Speaker 6: Britain and the like. Do you think the World Cup
• 21:59
  Speaker 6: is going to bring some of those some of that
• 22:01
  Speaker 6: interest back in the US, whether it's in United Soccer
• 22:03
  Speaker 6: leagues or Major League Soccer or otherwise.
• 22:06
  Speaker 9: I think the MLS has work to do, and they
• 22:09
  Speaker 9: know that they have a new commissioner coming in who
• 22:12
  Speaker 9: has you know, done a lot of really good work.
• 22:13
  Speaker 9: But at the end of the day, the MLS has
• 22:15
  Speaker 9: to rise into the top five leagues in the world
• 22:19
  Speaker 9: soccer leagues in the world, really, because if you think
• 22:22
  Speaker 9: about the American sports culture, the MLS is not in
• 22:25
  Speaker 9: the top three, and if you think about you know,
• 22:27
  Speaker 9: European football, it's not in the top three there either, right,
• 22:30
  Speaker 9: And so from that perspective, you do have a lot
• 22:33
  Speaker 9: of players from all nationalities coming here to play, but
• 22:36
  Speaker 9: it's not viewed the same way. And the real question
• 22:38
  Speaker 9: is like what happens when when Messi retires.
• 22:42
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