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Apple’s Succession Plans, Warner Brothers Discovery Earnings · Bloomberg Intelligence

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  Speaker 2: Let's move on to another tech story. It is on
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  Speaker 2: the Bloomberg Big Take Today and the title is the
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  Speaker 2: Apple Insiders in the running to succeed Tim Cook. Only
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  Speaker 2: one person you can talk to about anything to do
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  Speaker 2: with technology and Apple, and that's Mark German, Bloomberg, Chief
• 0:38
  Speaker 2: correspondent on Bloomberg Technology joining us. It was so interesting
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  Speaker 2: when I read this because I don't think I have
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  Speaker 2: heard of anyone talking about succession with Tim Cook. But
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  Speaker 2: he's been around for a very.
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  Speaker 3: Long time.
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  Speaker 4: For having me.
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  Speaker 5: That's right.
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  Speaker 4: Cook has been around for over two decades at Apple now.
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  Speaker 4: He was named CEO in twenty eleven and obviously taking
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  Speaker 4: over for Steve Jobs. He's turning sixty five next year.
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  Speaker 4: He's one of the older CEOs in the S and
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  Speaker 4: P five hundred. They have a management team that's essentially
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  Speaker 4: been the same cast of characters for a decade plus
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  Speaker 4: and they're in a precarious position right now, battling smartphone slowdowns,
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  Speaker 4: battling a shift of manufacturing out of China while trying
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  Speaker 4: to keep China still happy, regulatory concerns in both the
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  Speaker 4: US and the European Union. So there's a lot going on.
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  Speaker 4: But Tim Cook's getting up there, and it's time to
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  Speaker 4: start thinking about who comes after Cook. And so my
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  Speaker 4: story this week takes a look at some of the options,
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  Speaker 4: and I'll just give you the quick summary here. If
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  Speaker 4: he were to step down in the near term, he'd
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  Speaker 4: likely be replaced by Jeff Williams. He's the chief operating officer.
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  Speaker 4: If he stays around about five years, as many expect,
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  Speaker 4: including me, he'd likely to be replaced by John Turnis.
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  Speaker 4: He's the company's senior VP of hardware Engineering, and he's
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  Speaker 4: been playing an increasingly important role in product development and
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  Speaker 4: other aspects of the company.
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  Speaker 6: So, Mark, this was a great point that you made
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  Speaker 6: in the story that you said, So Tim Cook, he's
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  Speaker 6: sixty three older than a lot of his peers in
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  Speaker 6: the average Fortune five hundred C suite company. But it's
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  Speaker 6: interesting because there was a quote from somebody you know saying,
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  Speaker 6: you know, if Biden Trump could be president at eighty
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  Speaker 6: years old. Like, who's to say that Tim Cook can't
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  Speaker 6: stay on as CEO or that you know, someone else
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  Speaker 6: of one of his peers who's maybe also in that
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  Speaker 6: same kind of age range also couldn't be suitable for it.
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  Speaker 4: Yeah, he certainly, you know, could stick around, right. I mean,
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  Speaker 4: if you can run the country at that age, you
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  Speaker 4: can run Apple at that age. But I don't think
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  Speaker 4: that's what Apple's board of directors or Tim Cook would want,
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  Speaker 4: to be honest.
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  Speaker 3: Why not?
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  Speaker 4: Well, I think there is a culture of passing the
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  Speaker 4: baton right in these corporations, and Tim Cook is going
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  Speaker 4: to want to give someone else a chance.
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  Speaker 3: Right.
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  Speaker 4: It's a technology company, and you know, many people want
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  Speaker 4: someone who you know, grew up in Silicon Valley, someone
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  Speaker 4: who is newer and more innovative, to take over these
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  Speaker 4: tech companies. So I just don't think Tim Cook at
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  Speaker 4: eighty years old would want to run Apple or should
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  Speaker 4: run Apple.
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  Speaker 6: It doesn't sound like Tim Cook has talked a whole
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  Speaker 6: lot about this. You mentioned this was I thought this
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  Speaker 6: was kind of weird that of all places where Tim
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  Speaker 6: Cook has shared the most about, you know, his life
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  Speaker 6: after Apple, has been on a podcast with Dua Lipa
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  Speaker 6: didn't see that coming.
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  Speaker 7: I don't know is she.
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  Speaker 6: Presently did not see that coming, Like, is this like
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  Speaker 6: the place to go if you're going to drop some
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  Speaker 6: secession news.
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  Speaker 4: Well, Tim Cook doesn't do many interviews, right, He does
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  Speaker 4: a few a year, and you know, to be fair,
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  Speaker 4: du Alipa probably asked the best questions of any interview
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  Speaker 4: that I've seen Tim Cook participate in a while, and
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  Speaker 4: she brought up the succession question. Obviously, that was a
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  Speaker 4: little surprising that she brought that up because it doesn't
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  Speaker 4: seem central to, you know, her line of questions that
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  Speaker 4: the rest of the podcast had. But she asked, and
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  Speaker 4: Tim Cook gave his most in depth comments on the
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  Speaker 4: subject to date.
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  Speaker 2: You mentioned a hardware engineering person that may be taking
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  Speaker 2: over if it's longer than five years, Why not like
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  Speaker 2: an ai Ish person.
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  Speaker 4: Well, it's not necessarily because John Turnus is a harderre
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  Speaker 4: engineering person that he's going to be taking over the company.
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  Speaker 4: It's mostly because he's in the right age range. He's
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  Speaker 4: so important to the company. He has excellent managerial skills,
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  Speaker 4: He's extremely well respected inside the company and within the industry.
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  Speaker 4: So he has a lot of things going for him
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  Speaker 4: other than obviously very important being the hardware engineering person.
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  Speaker 4: In terms of not an AI person, well, Apple's AI
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  Speaker 4: person John Jane Andrea. Quite frankly, I don't expect him
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  Speaker 4: to remain at Apple for many more years, and I
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  Speaker 4: certainly don't think that he's prime to run the whole company.
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  Speaker 4: He joined Apple in twenty nineteen. For all intentsive purposes,
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  Speaker 4: he's an outsider. When you're at Apple, you really want
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  Speaker 4: to gain steam there, especially if you're going to be
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  Speaker 4: the next CEO. You really got to be there for
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  Speaker 4: two decades. It's a cult, right, You're not going to
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  Speaker 4: see someone be able to be CEO who comes in
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  Speaker 4: from the outside and their head of AI for all
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  Speaker 4: intensive purposes, Like I said, is an outsider.
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  Speaker 6: So when Steve Jobs was, you know, toward the end
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  Speaker 6: of his tenure, obviously he was battling cancer at the time.
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  Speaker 6: What kind of circumstances, you know, barring you know, a
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  Speaker 6: health crisis, which of course we hope that wouldn't happen,
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  Speaker 6: But what kind of circumstances do you think would be
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  Speaker 6: fitting for Cook to step down?
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  Speaker 3: Under?
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  Speaker 4: Well, Cook is going to run Apple as long as
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  Speaker 4: he wants to run Apple.
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  Speaker 5: Right.
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  Speaker 4: Like I said, I don't think that's going to be
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  Speaker 4: until eighty, but I wouldn't be surprised if he remains
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  Speaker 4: at Apple until seventy, right, And the circumstances would be
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  Speaker 4: when he feels it's time to pass the baton. No
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  Speaker 4: one is going to force him out. There's no retirement age,
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  Speaker 4: there's no requirement, So it's going to be as long
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  Speaker 4: as he wants to run the company, and so there's
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  Speaker 4: no circumstance that I think would push him out the door.
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  Speaker 2: It also feels like managing Apple is also about and
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  Speaker 2: managing geopolitical relationships with China, Like how do you think
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  Speaker 2: that kind of overlays? Or are I making too much of
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  Speaker 2: a big deal about it and it's actually a cyclical
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  Speaker 2: thing and I should chill out.
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  Speaker 4: Well, No, I think that's extremely central to the CEO role, right,
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  Speaker 4: And the thing that's going to test turnus the most
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  Speaker 4: is how do you operate on the world stage. Now,
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  Speaker 4: there's something else to really understand here. The CEO of
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  Speaker 4: Google Sundor Prichai, the CEO of Microsoft Satanadella. They are
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  Speaker 4: both engineers who took on the CEO role, just like
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  Speaker 4: I expect turnis to eventually right. But both of those
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  Speaker 4: people have an executive there that manage the relations for
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  Speaker 4: them right. Microsoft famously has a president whose name is
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  Speaker 4: Brad Smith. He handles all the international relations, right soundor Prachai.
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  Speaker 4: They made their CFO Ruth porat Right. She now manages
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  Speaker 4: these international relations and these issues, So the CEO doesn't
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  Speaker 4: necessarily have to be the person who manages these relationships.
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  Speaker 4: The reason Tim Cook does it at Apple is not
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  Speaker 4: because he's the CEO. That's because he's the best at it, right,
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  Speaker 4: And different CEOs are going to have different skill sets,
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  Speaker 4: And being the CEO doesn't mean you have to do everything.
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  Speaker 4: It means you have to do a mix of things,
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  Speaker 4: but have the ability to appoint the right person and
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  Speaker 4: put the right people in position to do the things
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  Speaker 4: that you're not good at.
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  Speaker 6: Last one for you here mark thirty seconds. Tim Cook's
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  Speaker 6: talking about maybe life after Apple being something more philanthropic.
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  Speaker 7: Any ideas on what that might be like.
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  Speaker 4: Well, obviously he generated a lot of money while being
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  Speaker 4: CEO of Apple. My belief he's going to open up
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  Speaker 4: some sort of charitable foundation and make donations to you know,
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  Speaker 4: various places. I would say the best comp to This
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  Speaker 4: would be something like what Mackenzie Scott has been doing
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  Speaker 4: or Lorraine Powell jobs. Both have opened foundations over the past,
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  Speaker 4: you know, several years and make fill philanthropic donations on
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  Speaker 4: a pretty targeted basis to specific entities constantly, and so
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  Speaker 4: I would expect the cook to do the same.
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  Speaker 2: Really appreciate it, Mark, I know what's early where you are.
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  Speaker 2: We appreciate you getting up for us. Mark German Bloomberg
• 8:15
  Speaker 2: a chief correspondent on global technology, and you can read
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  Speaker 2: this great story on Bloomberg and also at Bloomberg dot
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  Speaker 2: We also have a really interesting move here with HubSpot
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  Speaker 2: and Alphabet. Do I know those things?
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  Speaker 7: I don't really know. Those things don't have a man
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  Speaker 7: deep saying, thankfully.
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  Speaker 2: Jos and so does Narash Patel. So manyep Singh is
• 8:56
  Speaker 2: Senior Technology Software Senior Technology analyst for Bloomberg Intelligence Naragepitel
• 9:01
  Speaker 2: at Bloomberg Intelligence senior software analysts. Luckily they can have
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  Speaker 2: us covered on all of this, Garage. What is HubSpot
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  Speaker 2: and what does a Google slash alphabet want with it?
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  Speaker 5: Yeah? Hi, Alex and HubSpot they are playing directly into
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  Speaker 5: sales and marketing software. Small player, well below the scale
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  Speaker 5: of Salesforce and Adobe. They have about two and a
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  Speaker 5: half billion in revenue relative to a forty billion salesforce scale,
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  Speaker 5: so much smaller. They target SMBs. Their average customers about
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  Speaker 5: fifty one hundred employees. So they offer this type of platform,
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  Speaker 5: which is about two hundred and ten thousand total customers
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  Speaker 5: to Google to maybe enhance some advertisement and leverage CRM
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  Speaker 5: as a gateway for AI into software. For Google, this is.
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  Speaker 7: A pretty big potentially acquisition.
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  Speaker 6: So I want to bring in man Deep saying here,
• 9:53
  Speaker 6: who's with us in the studio today?
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  Speaker 7: Hey, Man Deep.
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  Speaker 6: So this would be a company right now that's valued HubSpot,
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  Speaker 6: that is around thirty billion dollars.
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  Speaker 7: So much talk of antitrust.
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  Speaker 6: Going on in the tech space, Is this something like
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  Speaker 6: Google could really pull off?
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  Speaker 8: I mean they could in theory simply because Microsoft recently
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  Speaker 8: bought Activision and that was close to seventy billion dollars,
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  Speaker 8: So you know, any acquisition here would not be north
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  Speaker 8: of thirty five to forty billion. So from that perspective,
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  Speaker 8: you know, given Google is not a player in application software,
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  Speaker 8: I think the antitrust argument is pretty weak in terms of,
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  Speaker 8: you know, preventing them from acquire HubSpot and in terms
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  Speaker 8: of why they are looking to buy an asset like this. Look,
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  Speaker 8: Google's primary business remains ads. They're big on the you know,
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  Speaker 8: the foundational model side with generative AI. They have the
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  Speaker 8: cloud infrastructure, so getting a data CRM play for training
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  Speaker 8: your models is something that is quite forward looking. I
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  Speaker 8: don't think the market fully grasps what they're trying to
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  Speaker 8: to do here, but it does make sense because in
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  Speaker 8: the end, if you have to deploy generative AI at
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  Speaker 8: the enterprise level, you need data and who better than
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  Speaker 8: a CRM company that has got data related to an
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  Speaker 8: enterprise system sales system. So it does make sense that
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  Speaker 8: they are trying to apply that kind of AI in
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  Speaker 8: the context of an enterprise.
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  Speaker 6: Well to your point of you know, maybe investors not
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  Speaker 6: quite grasping it yet. Google shares more or less unchanged
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  Speaker 6: on the day actually slightly down, but you think this
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  Speaker 6: could be maybe a more positive longer term story for
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  Speaker 6: the stock.
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  Speaker 8: I mean, these companies don't make acquisitions for inorganic growth.
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  Speaker 8: It isn't about the revenue contribution from hubsqat. It is
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  Speaker 8: more about how can they position themselves better at the
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  Speaker 8: enterprise level. And in the case of Alphabet, look, they've
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  Speaker 8: never had an enterprise business before Google Cloud. So the
• 11:53
  Speaker 8: fact that they have a thirty five billion dollars Google
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  Speaker 8: Cloud infrastructure business, they can add this DRM asset and
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  Speaker 8: then the generative AI aspect is huge because that's where
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  Speaker 8: everyone is expecting all the growth.
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  Speaker 7: To be nearage.
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  Speaker 2: Do you like the numbers that we're looking at here,
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  Speaker 2: I mean, what do you think it would be worth
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  Speaker 2: if Alphabet had to take it over, had to want
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  Speaker 2: it to take it over.
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  Speaker 5: Yeah, this is HubSpot's landing at the high end of
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  Speaker 5: app software evaluation today it's about twelve times on a
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  Speaker 5: forward sales. Some of the comparable piers in SMB space
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  Speaker 5: are half of that multiple. So you know, giving Google's
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  Speaker 5: balance sheet, they have the appetite to keep pushing the
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  Speaker 5: valuation to a higher level. The offset here not from
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  Speaker 5: the numbers but from a perspective of HubSpot management, this
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  Speaker 5: is really their baby. They're going to have a very
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  Speaker 5: hard time letting go. You have two active co founders
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  Speaker 5: and one is still very active in all product development.
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  Speaker 5: He's the current CTO, So there will be a little
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  Speaker 5: resistance from the management perspective.
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  Speaker 2: So real quick on that could somebody else come in
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  Speaker 2: and make another bid that would make them feel better?
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  Speaker 5: They probably prefer a Google that's not in CRM software
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  Speaker 5: versus a salesporce Adobe s a P type of company
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  Speaker 5: where they would just be rolled up into an enterprise portfolio.
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  Speaker 6: So if we were to think man deep of how
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  Speaker 6: something like this could hypothetically be financed, obviously cash not
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  Speaker 6: a problem for Google. You think this is something they
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  Speaker 6: would buy and uh, you know, just with cash on
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  Speaker 6: the balance sheet, would go to a debt or equity market.
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  Speaker 8: I mean, look if being bore shareholder friendly recently with
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  Speaker 8: the announcement of a dividend, so clearly they are making
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  Speaker 8: changes to their capital structure. I wouldn't be surprised if
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  Speaker 8: they go to the bond market to finance such a
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  Speaker 8: big acquisition with these rates. Yeah, but I mean Google
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  Speaker 8: is like triple A.
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  Speaker 7: Yeah, probably basically cheaper than the government can.
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  Speaker 8: Yeah, so I don't think financing is an issue, but
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  Speaker 8: the regulatory scrutiny is going to come no matter, you know,
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  Speaker 8: I whether they compete in that same space or not,
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  Speaker 8: given the size of a potential deal. But I think
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  Speaker 8: they can convince the regulators that this deal makes sense
• 14:19
  Speaker 8: for them.
• 14:19
  Speaker 2: Can we go to Roadblocks for a second, because maybe
• 14:21
  Speaker 2: you also cover this. So my knowledge of Roadblocks is this.
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  Speaker 2: My daughter comes in in the morning on Saturday and Sunday,
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  Speaker 2: takes my phone and plays Roadblocks on my phone Warrior cats.
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  Speaker 3: That's all I know.
• 14:31
  Speaker 7: I don't really know what that means.
• 14:32
  Speaker 2: She knows to talk to anyone online and she basically
• 14:35
  Speaker 2: makes cats fight each other and.
• 14:37
  Speaker 7: Get animals and you know, more than based up.
• 14:40
  Speaker 2: That's all I know what's going on.
• 14:42
  Speaker 3: But she plays a lot.
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  Speaker 8: And I bet you she's using your credit card to
• 14:45
  Speaker 8: make those Roadblocks purchases.
• 14:49
  Speaker 7: Alex Face, what are you saying?
• 14:52
  Speaker 2: I think Roadblocks wants her to do that.
• 14:54
  Speaker 7: But why is the stockdown like.
• 14:55
  Speaker 2: Twenty three percent?
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  Speaker 8: Well so in this case, I mean engagement is what
• 14:59
  Speaker 8: drives all these plats and the fact that we are
• 15:02
  Speaker 8: going into summer months, it's kind of a natural to
• 15:05
  Speaker 8: see some seasonality in terms of engagement coming down. So
• 15:09
  Speaker 8: ours spent were three percent below consensus expectations, even though
• 15:14
  Speaker 8: the user growth was in line with consensus twenty percent
• 15:16
  Speaker 8: user growth. And to my mind, the long term story
• 15:19
  Speaker 8: is still intact. They have the content to drive you know,
• 15:23
  Speaker 8: kids of that age, and they have the engagement. There
• 15:26
  Speaker 8: will always be seasonality, and you know, once in a
• 15:29
  Speaker 8: while the stock will react like this because the expectations
• 15:33
  Speaker 8: were higher, but there was nothing on the call that
• 15:35
  Speaker 8: suggested they're losing their engagement to social media. Yeah, and
• 15:39
  Speaker 8: so I think this is the case of market being
• 15:42
  Speaker 8: in that mood where if it's not a beat and
• 15:45
  Speaker 8: a big raise, your stock is going to get hit.
• 15:47
  Speaker 8: And you're seeing that with the robots tough crowd.
• 15:50
  Speaker 6: Yeah, you know, this is something that I wanted to
• 15:54
  Speaker 6: come back to. We I covered the economy in my
• 15:57
  Speaker 6: regular job here at Bloomberg, and we actually we're talking
• 16:00
  Speaker 6: to the lead economists of Visa not too long ago,
• 16:03
  Speaker 6: and they had some great research out about how the
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  Speaker 6: gaming economy has really added like so much in terms
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  Speaker 6: of consumption just by virtue of so many people being
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  Speaker 6: on computers being exposed to so many more ads and
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  Speaker 6: buying more things, not just within the game, but you
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  Speaker 6: know in the broader internet at large, and I don't know,
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  Speaker 6: it's do you like see the connection with that as
• 16:25
  Speaker 6: well in this gaming world and how that's also just
• 16:28
  Speaker 6: boosting aggregate consumption.
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  Speaker 8: I mean, Roadblocks did call out virtual shopping being a
• 16:33
  Speaker 8: potential driver for twenty twenty five. So even though no
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  Speaker 8: one talks about metaverse now, the fact that you know,
• 16:40
  Speaker 8: companies are still talking about virtual storefronts and the fact
• 16:43
  Speaker 8: that you can do shopping on these kind of platforms
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  Speaker 8: down the line goes to show that gaming is something
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  Speaker 8: that everyone fields contributes to this AI wave as well
• 16:56
  Speaker 8: as you know, largely e commerce connection in terms of
• 16:59
  Speaker 8: you know, the storefronts and how the behavior could change
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  Speaker 8: down the line.
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  Speaker 7: What are they sell in there? What can you buy
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  Speaker 7: on that shop?
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  Speaker 8: I mean, like that was the whole promise of metawverse,
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  Speaker 8: that you can replicate malls in the metaverse. And so
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  Speaker 8: if I'm a Walmart that is setting up a grocery
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  Speaker 8: or you know, their shop in that kind of a
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  Speaker 8: virtual storefront, I can drive that kind of experience where
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  Speaker 8: people feel they are inside them all when they're sitting
• 17:25
  Speaker 8: in front of a computer and they can do a
• 17:27
  Speaker 8: lot of the shopping, which again was the promise of Meatowors.
• 17:30
  Speaker 8: There were probably three four years too early and it
• 17:32
  Speaker 8: will take time to build that.
• 17:33
  Speaker 2: All right, Naraj, I know you're still here. Sorry, we
• 17:35
  Speaker 2: need to get more info on roadblocks, basically, so I
• 17:37
  Speaker 2: understand what it actually is. My daughter's playing it. What
• 17:40
  Speaker 2: else are you working on right now in your sphere?
• 17:44
  Speaker 5: I think there's a big dichotomy with the valuations that
• 17:47
  Speaker 5: are occurring in software. You're seeing the SMB companies like
• 17:51
  Speaker 5: a HubSpot, which is a little bit moving against the wave.
• 17:55
  Speaker 5: The rest of the companies are getting hit because small
• 17:58
  Speaker 5: medium business spending is quite constrained, and you're seeing a
• 18:02
  Speaker 5: significant downward push on valuation multiples for other companies like
• 18:07
  Speaker 5: a Claviow, like a pay Call Pay loss a, a
• 18:10
  Speaker 5: whole host of companies and app software.
• 18:12
  Speaker 2: All right, guys, I really appreciate it, Thank you so much.
• 18:15
  Speaker 2: Can't get any more and can't get better than this.
• 18:17
  Speaker 2: You're at Narajhpatel Bloomberg Intelligence senior software analysts joining us
• 18:21
  Speaker 2: at man Deep Singh. He is Bloomberg Intelligence a senior
• 18:24
  Speaker 2: technology analyst.
• 18:28
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
• 18:32
  Speaker 1: weekdays at ten am Eastern on Apple card playing Android
• 18:35
  Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
• 18:38
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 18:43
  Speaker 7: Just get back to Warner Brothers Discovery.
• 18:45
  Speaker 2: That stock us out by about four tens of one
• 18:46
  Speaker 2: percent as Nor was talking about the company reporting sales
• 18:49
  Speaker 2: and profit that fell short analyst expectations. Shocker lower TV
• 18:53
  Speaker 2: ad sales plus poor performance of video games. So no
• 18:57
  Speaker 2: one better to talk to than KEITHR. Mangana than Bloomberg
• 18:59
  Speaker 2: Intelligence and Animal on US media. Why is the stock
• 19:02
  Speaker 2: up on the earnings?
• 19:05
  Speaker 9: Yeah, it was a little bit of a mixed bag
• 19:07
  Speaker 9: Alex so definitely ebitdah under pressure as always TV advertising,
• 19:12
  Speaker 9: as you just pointed out, But they did have some
• 19:14
  Speaker 9: bright spots and I think that's why we're seeing a
• 19:17
  Speaker 9: little bit of enthusiasm here. So one thing that they
• 19:19
  Speaker 9: did mention was that, you know, Warner Brothers in Discovery.
• 19:22
  Speaker 9: It's obviously a merger. They've extracted so far about four
• 19:24
  Speaker 9: billion dollars in cost savings. They are now projecting an
• 19:28
  Speaker 9: extra one billion dollars in synergies so that I think
• 19:31
  Speaker 9: is something that you know, the street is definitely hopeful about.
• 19:34
  Speaker 3: And then you have the streaming business.
• 19:35
  Speaker 9: Remember this is the HBO business that has now been
• 19:39
  Speaker 9: rebranded as Max and we're seeing some some green shoots here,
• 19:43
  Speaker 9: so you know, subscriber growth had kind of hit a wall,
• 19:46
  Speaker 9: but again we're seeing some reinviegration here. So they had
• 19:49
  Speaker 9: about two million subscriber ads and they have a lot
• 19:51
  Speaker 9: more momentum going forward because we're going to see a
• 19:54
  Speaker 9: lot of overseas market launches.
• 19:56
  Speaker 3: But that's not real. The real story.
• 19:58
  Speaker 9: The real stories that the segment is actually profitable, and
• 20:01
  Speaker 9: that is what has become the new gauge across the
• 20:03
  Speaker 9: whole streaming landscape whether the streaming business can be profitable,
• 20:06
  Speaker 9: and obviously Warner Brothers showing us how it's done.
• 20:09
  Speaker 6: I honestly, you know, I will admit I'm not part
• 20:12
  Speaker 6: of the gaming worlds, but I was under the impression
• 20:14
  Speaker 6: that this is a pretty strong segment of consumer spending,
• 20:19
  Speaker 6: has a lot of people who are very active in
• 20:21
  Speaker 6: the gaming world, and it seems like for Warner Brothers
• 20:24
  Speaker 6: at least, this came down to one game in particular.
• 20:27
  Speaker 6: How would you categorize that segment of the business.
• 20:30
  Speaker 5: Keep that.
• 20:31
  Speaker 9: Yeah, So Warner Brothers, I mean not necessarily known for
• 20:35
  Speaker 9: you know, their video games in general, but they did
• 20:37
  Speaker 9: have a huge blowout hit last year with Hogwatts Legacy
• 20:42
  Speaker 9: that became one of the biggest selling games throughout twenty.
• 20:46
  Speaker 3: Twenty three and Harry Potter One.
• 20:48
  Speaker 9: Harry Potter One just huge, And so when they were
• 20:51
  Speaker 9: comping this year, obviously they knew coming into this quarter
• 20:53
  Speaker 9: that it was going to be you know, tough comps.
• 20:55
  Speaker 9: But then they also had their release from this quarter,
• 20:57
  Speaker 9: which was you know, Suicide Squad, which really did not
• 21:00
  Speaker 9: live up to expectations at all, and then you have
• 21:02
  Speaker 9: obviously that Harry Potter effect, and that just didn't bode
• 21:06
  Speaker 9: well for them for that studio slash gaming segment.
• 21:10
  Speaker 2: The idea, though, right, is that the streaming part is
• 21:13
  Speaker 2: going to wind up doing better and that will eventually
• 21:15
  Speaker 2: offset slowing TV AD sales. Right is where are they
• 21:19
  Speaker 2: on that sort of balance beam.
• 21:22
  Speaker 9: Yeah, that's such a great point, Alex, I mean that's
• 21:24
  Speaker 9: the hope, right, That's what everybody's hoping for that this
• 21:27
  Speaker 9: transition would eventually pay off and at some point like
• 21:30
  Speaker 9: the streaming service would be better or at least equal to,
• 21:33
  Speaker 9: if not better than, linear TV.
• 21:35
  Speaker 3: But I don't know.
• 21:35
  Speaker 9: I don't think it's actually going to happen, or it's
• 21:37
  Speaker 9: going to take a very very long time. Obviously, we've
• 21:40
  Speaker 9: seen kind of Netflix set the stage here for everybody else.
• 21:43
  Speaker 9: This year, we're going to see them throughout something like
• 21:45
  Speaker 9: ten billion dollars in profit. So we know it can
• 21:47
  Speaker 9: be done. I'm just not sure if who can do it,
• 21:51
  Speaker 9: first of all, and if many people can or many
• 21:53
  Speaker 9: streamers can kind of replicate that success, because if you
• 21:57
  Speaker 9: kind of look at even the Max business, yes, it's
• 21:59
  Speaker 9: good that they were able to show, you know, throughout
• 22:02
  Speaker 9: kind of ninety million dollars in profits, but you're taking
• 22:05
  Speaker 9: a business that was originally generating something like two billion
• 22:10
  Speaker 9: dollars in Ibada every year, and so you know, you
• 22:13
  Speaker 9: kind of then take it from two billion to you know,
• 22:15
  Speaker 9: even if it's going to be two hundred or three
• 22:16
  Speaker 9: hundred million, that's just a fraction of what it was generating.
• 22:19
  Speaker 9: And that's kind of the whole story in media right now.
• 22:22
  Speaker 9: Right you're treating the TV dollars for kind of these
• 22:25
  Speaker 9: these digital pennies, and so it does become a game
• 22:29
  Speaker 9: of scale and that's where kind of this whole bundling
• 22:31
  Speaker 9: concept comes in, because that helps you kind of not
• 22:34
  Speaker 9: only get more subscribers, but it helps you reduce churn,
• 22:37
  Speaker 9: which is really the biggest problem for streaming right now.
• 22:40
  Speaker 6: Another big story in media is obviously just cutting costs,
• 22:44
  Speaker 6: right and Warner Brothers has done quite a bit of
• 22:47
  Speaker 6: layoffs in the past year and it's and we had
• 22:49
  Speaker 6: some additional Bloomberg reporting out this morning saying that CEO
• 22:53
  Speaker 6: David Zaslov is looking to find more opportunities to cut
• 22:57
  Speaker 6: costs and that more layoffs could be part of that.
• 22:59
  Speaker 6: Is that something Eitha that you're worried about.
• 23:03
  Speaker 9: I mean, yeah, this has kind of again been a
• 23:05
  Speaker 9: major thing that that Warner Brothers has been very good at,
• 23:08
  Speaker 9: you know, cutting costs.
• 23:09
  Speaker 3: I mean they did this originally with.
• 23:10
  Speaker 9: Their first deal, which was the Discovery Script's deal, where
• 23:13
  Speaker 9: they again they went in and they eliminated a lot
• 23:15
  Speaker 9: of those extraneous costs. They're really very very good in
• 23:18
  Speaker 9: terms of implementing you know, cost savings and synergies. And
• 23:21
  Speaker 9: again they've kind of, uh, you know, reproduced that same
• 23:24
  Speaker 9: playbook with the Warner Brothers Discovery mergers.
• 23:27
  Speaker 3: The thing with cost cutting.
• 23:29
  Speaker 9: Is it's it's it's very tricky, you know, because yes,
• 23:32
  Speaker 9: you you can cut out a lot of extra duplicative costs,
• 23:36
  Speaker 9: especially in kind of streaming businesses when you're combining two
• 23:38
  Speaker 9: streaming platforms, but you don't want to cut too much.
• 23:41
  Speaker 9: You don't want to underinvest in content. And I think
• 23:44
  Speaker 9: what they're going to do here is it's not so
• 23:46
  Speaker 9: much about the content side of things. It's more about
• 23:49
  Speaker 9: marketing and selling expenses. And that's again where you know
• 23:52
  Speaker 9: you kind of yes, they're going to cut that, but
• 23:54
  Speaker 9: that's again where you see how the bundling aspect could
• 23:58
  Speaker 9: really help them, because that helps them save a lot
• 24:00
  Speaker 9: of those marketing and advertising expenses.
• 24:03
  Speaker 3: Before we let you.
• 24:04
  Speaker 2: Go, what the whole like Disney plus Hulu and Max together.
• 24:09
  Speaker 7: I have a couple questions.
• 24:10
  Speaker 2: One how much is gonna cost?
• 24:12
  Speaker 3: Two?
• 24:12
  Speaker 7: How much should it cost? Three?
• 24:14
  Speaker 2: Will they tell me that that's an option? Or am
• 24:16
  Speaker 2: I gonna weirdly double pay for a while? And four
• 24:19
  Speaker 2: I forgot the fourth.
• 24:22
  Speaker 3: All great questions, All great questions.
• 24:24
  Speaker 6: Excellent trifecta with an optional plus one.
• 24:27
  Speaker 2: There was a plus one somewhere.
• 24:28
  Speaker 7: It'll come to me in my brilliance.
• 24:31
  Speaker 9: So Alex, what we're paying right now, if you want
• 24:34
  Speaker 9: just the just Hulu and Disney Plus without ads is
• 24:37
  Speaker 9: around twenty dollars on the nose, and if you're taking
• 24:40
  Speaker 9: the Max product without ads, that's sixteen dollars, So combine
• 24:43
  Speaker 9: together that would be thirty six dollars. Now, again they
• 24:46
  Speaker 9: haven't said anything on pricing yet, so this is just
• 24:48
  Speaker 9: me speculating, but I would think they would when they're
• 24:51
  Speaker 9: kind of combining those three together, it would probably be
• 24:53
  Speaker 9: at maybe a thirty dollars or.
• 24:55
  Speaker 3: A sub thirty dollars.
• 24:56
  Speaker 9: Price point to kind of make it really attractive in
• 24:59
  Speaker 9: terms of will they you know, will you double bay?
• 25:01
  Speaker 3: I don't think so.
• 25:02
  Speaker 9: I think if you're a Disney Plus, existing Disney Plus
• 25:05
  Speaker 9: or Hulu subscriber, you'll just have kind of an option
• 25:07
  Speaker 9: when you log in saying you know this, this Max
• 25:09
  Speaker 9: is available to you, and do you kind of want
• 25:11
  Speaker 9: to switch your subscription now?
• 25:12
  Speaker 3: That's how I think they're going to do it.
• 25:13
  Speaker 9: And conversely, if you're a MAX subscriber, I forgot your
• 25:19
  Speaker 9: third question me too, it.
• 25:20
  Speaker 2: Was much of a cause will they tell me about it?
• 25:23
  Speaker 7: And are you gonna end up double paying? I think
• 25:26
  Speaker 7: they got them all.
• 25:27
  Speaker 2: I did remember my fourth one, the fourth one. Oh gosh,
• 25:30
  Speaker 2: it went away again. Oh no, okay, I got a
• 25:32
  Speaker 2: backup on cable Cube ahead. Is this just about like
• 25:35
  Speaker 2: cable Is this basically what I did with like Verizon,
• 25:38
  Speaker 2: but now I'm going to do it on my streaming TV.
• 25:41
  Speaker 9: It's very much the same idea. I mean, we're going
• 25:44
  Speaker 9: back to bundling again. And I think what all of
• 25:47
  Speaker 9: these services are trying to do. Alex and Mali's they're
• 25:49
  Speaker 9: just trying to now create this super bundle. Remember, Disney
• 25:52
  Speaker 9: and Warner have another sports JV a Sports a bundle
• 25:56
  Speaker 9: that's going to come out in conjunction with Fox a
• 25:59
  Speaker 9: little bit later. So now they have this this Disney
• 26:02
  Speaker 9: Max bundle. I think eventually they're going to you know,
• 26:04
  Speaker 9: ask you to maybe have that extra super super bundle
• 26:08
  Speaker 9: along with you know, the sports, the sports option as well.
• 26:12
  Speaker 9: So it's really kind of them trying to keep you
• 26:14
  Speaker 9: on their platforms as much as possible.
• 26:16
  Speaker 7: And isn't that just the name of the game.
• 26:18
  Speaker 6: We do that here at Bloomberg too, you know, always
• 26:20
  Speaker 6: trying to keep people on the terminal.
• 26:22
  Speaker 7: Oh yeah, oh yeah, the all day log. So we're
• 26:24
  Speaker 7: guilty of it. Two.
• 26:25
  Speaker 2: We understand where that goes. Keitha, thanks a lot, thanks
• 26:28
  Speaker 2: for playing with us, keithing wrong and not and Bloomberg Intelligence,
• 26:31
  Speaker 2: as senior media analyst joins us, Okay, so you're getting
• 26:34
  Speaker 2: a couch delivered.
• 26:35
  Speaker 3: I get that.
• 26:35
  Speaker 2: Are you gonna sit on the couch and watch like
• 26:37
  Speaker 2: all the streaming things?
• 26:38
  Speaker 6: I guess I have to decide which ones I'm going
• 26:40
  Speaker 6: to be, you know, signing up for me? And I
• 26:42
  Speaker 6: do have the TV already in some of these subscriptions,
• 26:45
  Speaker 6: but I was under the impression, like I know, I've
• 26:47
  Speaker 6: got Hulu Netflix. Those are each under ten dollars a
• 26:50
  Speaker 6: month if you have the version with ads. These ones
• 26:53
  Speaker 6: up here, we're talking like sixteen to twenty. Well you
• 26:57
  Speaker 6: saw my face, right, So that's why I bring it up.
• 27:00
  Speaker 2: As Githa is like rolling off the numbers of how
• 27:01
  Speaker 2: much people pay. My mouth keeps dropping and I'm like,
• 27:03
  Speaker 2: I paid that much for these things. That's the thing
• 27:06
  Speaker 2: is you say yes and you don't actually know where
• 27:08
  Speaker 2: you're paying, and if you go through, you're like, wait,
• 27:09
  Speaker 2: I'm paying one hundred bucks for all this?
• 27:11
  Speaker 7: Why did I cut cable to people?
• 27:12
  Speaker 4: It is YouTube YouTube.
• 27:15
  Speaker 2: I don't do no Hello. We know I watch Survivor,
• 27:18
  Speaker 2: so I need that. And then I have a child
• 27:20
  Speaker 2: and she needs options for when mommy needs to sleep.
• 27:22
  Speaker 7: She also needs warrior cats, which she could be knocking
• 27:26
  Speaker 7: up my gout the card on that too. Things I
• 27:29
  Speaker 7: am learning.
• 27:31
  Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
• 27:35
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• 27:38
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• 27:41
  Speaker 1: listen live on Amazon Alexa from our flagship New York station,
• 27:45
  Speaker 1: Just Say Alexa Play. Bloomberg eleven thirty.
• 27:49
  Speaker 2: With Molly Smith Paulsweeni is out today. This is Bloomberg
• 27:52
  Speaker 2: Intelligence Radio. We cover all the top news for you
• 27:55
  Speaker 2: through our lens of Bloomberg Intelligence analysts. They cover two
• 27:57
  Speaker 2: thousand companies and one hundred and thirty into strees worldwide.
• 28:02
  Speaker 2: Here's what's so interesting to me, and I mean this
• 28:04
  Speaker 2: is nothing new, but sort of the two speed economy
• 28:08
  Speaker 2: that I feel like we keep seeing in that certain
• 28:11
  Speaker 2: areas of the economy, the lower income spend more on
• 28:13
  Speaker 2: credit cards by now, pay later, n if I be
• 28:16
  Speaker 2: the small business sentiment all weaker, but companies, big companies,
• 28:21
  Speaker 2: good earnings, earnings beats profit continues to grow, buybacks happening. Basically,
• 28:27
  Speaker 2: the rich get richer in.
• 28:27
  Speaker 7: The por getpor It's sad, isn't it. Yeah?
• 28:29
  Speaker 6: We see that too in like some of the jobs
• 28:31
  Speaker 6: numbers that are broken out by firm size, and we
• 28:35
  Speaker 6: see that like way more of the hiring is also
• 28:38
  Speaker 6: being done at firms that have at least five hundred employees.
• 28:41
  Speaker 6: So interesting, great to be in a building like this,
• 28:43
  Speaker 6: you know, but for much of America, what is it?
• 28:46
  Speaker 7: Like half of America works for a small business?
• 28:49
  Speaker 3: Right?
• 28:49
  Speaker 7: Is this something like that?
• 28:50
  Speaker 2: And then so even if you have wages keeping pace
• 28:53
  Speaker 2: with inflation, if if big if, that's still sort of
• 28:57
  Speaker 2: the cloud that goes a long way to explaining the
• 28:59
  Speaker 2: cloud that we feel, even if we don't see it. Yeah, yeah, okay,
• 29:04
  Speaker 2: clouds for TikTok, Yeah, go ahead.
• 29:07
  Speaker 7: That's just kind of sad. I hope we want to.
• 29:09
  Speaker 7: I hope we talk about something more positive.
• 29:10
  Speaker 6: I don't know what today is somebody who covers the economy,
• 29:13
  Speaker 6: you know, it's just I'm looking for the happier news.
• 29:16
  Speaker 3: I don't feel it.
• 29:17
  Speaker 7: Maybe Barry has it. You think he does.
• 29:18
  Speaker 2: I don't think he has it? Ok, Barry, do you
• 29:20
  Speaker 2: have happier news right now.
• 29:22
  Speaker 10: Well, the silver lining and he does he did get that.
• 29:25
  Speaker 6: Barry Ridholts right here, founder of Ritsults Wealth Management, host
• 29:29
  Speaker 6: of Masters and Business.
• 29:30
  Speaker 7: Take it away, Barry. What's the good news?
• 29:32
  Speaker 10: So the silver lining is whenever the economy sees a
• 29:37
  Speaker 10: lot of these scams and frauds bubbling up from especially
• 29:42
  Speaker 10: from social media and the Internet, it's usually because the
• 29:46
  Speaker 10: economy is so strong and people have so much money
• 29:51
  Speaker 10: that it attracts the fraudsters. I'm not saying the fraudsters
• 29:56
  Speaker 10: disappeared in the middle of eight o nine, but you
• 29:59
  Speaker 10: really didn't. I see a lot of them other than
• 30:01
  Speaker 10: the ones who were revealed by the financial crisis, like
• 30:05
  Speaker 10: Bernie Madoff couldn't perpetrate his fraud anymore because you couldn't
• 30:10
  Speaker 10: make up numbers anymore. But you know, it's a unfortunate
• 30:14
  Speaker 10: side effect of a lot of wealth, is you know
• 30:17
  Speaker 10: why do we people rob banks because that's where the
• 30:20
  Speaker 10: money is.
• 30:21
  Speaker 2: I was talking about someone yesterday about bitcoin too, and
• 30:24
  Speaker 2: just sort of having going down the scale in sort
• 30:27
  Speaker 2: of the bitcoin products that are being offered, in the
• 30:29
  Speaker 2: crypto products that are being offered, and the question marks
• 30:32
  Speaker 2: around it as there's just so much.
• 30:33
  Speaker 3: Money slashing around. I don't know.
• 30:35
  Speaker 2: You're going to relate this to TikTok, aren't you, because
• 30:37
  Speaker 2: that's part of where we're getting a lot of it
• 30:39
  Speaker 2: our news and information. Right, What do you make of
• 30:41
  Speaker 2: a whole byte Dance is now suing the US government
• 30:44
  Speaker 2: for forcing a sale of TikTok, but then you still have,
• 30:46
  Speaker 2: say Steve minus into TikTok in some way. What are
• 30:50
  Speaker 2: you making of all this?
• 30:51
  Speaker 10: Well, let's give Byteedance credit for what they do better
• 30:55
  Speaker 10: than either Twitter or Instagram or Facebook, which is they
• 31:01
  Speaker 10: have created an algorithm that knows exactly how to tickle
• 31:05
  Speaker 10: your dopamine receptors, and you know, once you fail, your
• 31:10
  Speaker 10: down a rabbit hole of a particular type. On TikTok.
• 31:13
  Speaker 10: My wife, it's all about rescue dogs on TikTok, and
• 31:17
  Speaker 10: it's just endlessly charming videos about dogs that have been saved.
• 31:22
  Speaker 10: But there's a darker side, whether it's investing or day training,
• 31:28
  Speaker 10: or taxes or go down the list. You know, some
• 31:32
  Speaker 10: of the crypto scams, you can earn twenty percent a
• 31:35
  Speaker 10: year back when the tax the risk free rate on
• 31:40
  Speaker 10: the tenure was one and a half percent and here's
• 31:42
  Speaker 10: what you do. You max out your credit cards, you
• 31:44
  Speaker 10: go buy a house. You put this money, earn twenty percent,
• 31:48
  Speaker 10: you use that to pay off the house, and hey,
• 31:50
  Speaker 10: in seven years you own this house. And of course
• 31:52
  Speaker 10: you're nothing like That sort of stuff is incredibly irresponsible,
• 31:57
  Speaker 10: and it's all over TikTok.
• 31:59
  Speaker 6: How so i've I mean, I'm someone who admittedly is
• 32:01
  Speaker 6: not on TikTok, but tell me what kind of posts
• 32:04
  Speaker 6: that would come across in.
• 32:07
  Speaker 10: So for people who are not on TikTok what like,
• 32:11
  Speaker 10: I'm not a big TikTok user. I tend to be
• 32:14
  Speaker 10: more of a Twitter user. But one of my favorite
• 32:17
  Speaker 10: follows on Twitter is TikTok Investors, And this is a
• 32:21
  Speaker 10: person who is in the financial industry but not authorized
• 32:25
  Speaker 10: to speak on behalf of their employer, so they have
• 32:28
  Speaker 10: to be anonymous. And they've been curating some of the
• 32:31
  Speaker 10: most outrageous money losing videos from the experts from the
• 32:38
  Speaker 10: finfluencers at TikTok, and as I wrote in a note
• 32:42
  Speaker 10: this morning, they range from merely wrong to risky to
• 32:47
  Speaker 10: actually criminal, where people are giving tax advice that if
• 32:51
  Speaker 10: you follow the irs is going to have a little
• 32:54
  Speaker 10: conversation and it's going to be expensive.
• 32:57
  Speaker 2: Well, but Barry, do you feel it as the as
• 33:00
  Speaker 2: parts of the economy slow and as we go to
• 33:03
  Speaker 2: a slowing or normalization aka liquidity comes out of the market,
• 33:06
  Speaker 2: do these things stop or do you think like we're
• 33:08
  Speaker 2: just in it now.
• 33:10
  Speaker 10: So here's the thing that I think people kind of
• 33:13
  Speaker 10: overlook because we all have a tendency to see the
• 33:16
  Speaker 10: world from our own unique perspective, and only some of
• 33:20
  Speaker 10: us are paid to step back and look at the
• 33:22
  Speaker 10: thirty thousand foot few. There is just so much money
• 33:27
  Speaker 10: sloshing around the US economy. It's not just stocks and bonds.
• 33:31
  Speaker 10: It's not just the six trillion with a t trillion
• 33:35
  Speaker 10: dollars that flowed into five plus percent money market accounts.
• 33:39
  Speaker 10: But you look at venture capital, you look at private equity,
• 33:42
  Speaker 10: you look at private credit. There is just trillions upon
• 33:47
  Speaker 10: trillions of dollars in the US economy. And even as
• 33:50
  Speaker 10: things start to slow from the massive fiscal stimulus of
• 33:56
  Speaker 10: the pandemic era. Remember Keresact one was the biggest fish
• 34:00
  Speaker 10: stimulus since World War Two? Who is ten percent of GDP.
• 34:03
  Speaker 10: We've never seen something like that in a few generations.
• 34:07
  Speaker 10: Then Cares Act two both of those under President Trump
• 34:10
  Speaker 10: then cares Act three under President Biden to say nothing
• 34:14
  Speaker 10: of the other ten year long sort of infrastructure, semiconductor,
• 34:18
  Speaker 10: all the other legislation that came out. There's a lot
• 34:22
  Speaker 10: of money out there and it's going through the economy,
• 34:26
  Speaker 10: and when people have been erroneously forecasting a recession, we
• 34:31
  Speaker 10: can have a whole long, complicated discussion as to why
• 34:34
  Speaker 10: or why not a recession hasn't happened. But it comes
• 34:37
  Speaker 10: back to too much money, too strong of an economy
• 34:41
  Speaker 10: for a true, persistent and pervasive contraction to take place
• 34:46
  Speaker 10: at this time.
• 34:48
  Speaker 6: Yeah, I mean, that's really the story of the economy
• 34:51
  Speaker 6: all these days, right, that demand that just will not
• 34:54
  Speaker 6: rein in last one for you quickly, Barry. We're saying
• 34:56
  Speaker 6: in this note here on TikTok that investors should consider
• 34:59
  Speaker 6: making changes on the very social media themselves.
• 35:02
  Speaker 7: Thirty seconds. What do you mean by that?
• 35:05
  Speaker 10: So you have to be very wary about claims that
• 35:08
  Speaker 10: are just too good to be true. Turn one hundred
• 35:12
  Speaker 10: dollars into a million. Hey, all you have to do
• 35:14
  Speaker 10: is earn two percent a day. Seems kind of ridiculous.
• 35:17
  Speaker 10: Don't pay taxes, just be on a boat on tax
• 35:20
  Speaker 10: Day on April fifteenth, utterly ridiculous.
• 35:24
  Speaker 6: Some of the other stuff.
• 35:25
  Speaker 10: Here's why we're teaching our kids today trade from home. Yeah,
• 35:29
  Speaker 10: I mean, really is this good advice for anybody? So
• 35:33
  Speaker 10: be skeptical. Anything that seems too good.
• 35:35
  Speaker 4: To be true probably is.
• 35:37
  Speaker 2: All right, Barry, We really appreciate it. Fun to chat
• 35:39
  Speaker 2: Barry wood Holtz joining us there. You can check out
• 35:41
  Speaker 2: his Master's in Business podcast. Check that out. Definitely. It's
• 35:45
  Speaker 2: almost telling me that his like twenty three year old
• 35:47
  Speaker 2: son is like, let's talk to me about dollar yen, Like,
• 35:49
  Speaker 2: how do I trade that?
• 35:50
  Speaker 5: In?
• 35:50
  Speaker 2: My colleague was like, please don't do that.
• 35:52
  Speaker 7: Far and above where I was a.
• 35:57
  Speaker 1: You're listening to the Bloomberg and tell Us podcast. Catch
• 36:01
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  Speaker 2: And it is an exciting day, particularly if you like Space.
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• 36:23
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  Speaker 2: the Bloomberg BusinessWeek magazine titled Musk and Bezos Are Racing
• 37:00
  Speaker 2: to Bring Americans back to the Moon. It discusses how
• 37:03
  Speaker 2: NASA's hopes for a return to the Moon depend on
• 37:05
  Speaker 2: Elon Musk's SpaceX and Jeff Bezos's Blue Origin. Here to
• 37:09
  Speaker 2: discuss all of this with us is Lauren Grush, Bloomberg
• 37:13
  Speaker 2: US Space reporter. First of all, congrats on launching the
• 37:16
  Speaker 2: vertical that's no small feet. Definitely looking into that. I
• 37:19
  Speaker 2: did a half hour special on space once and I
• 37:21
  Speaker 2: loved it. It was so interesting, so thanks for doing that.
• 37:23
  Speaker 6: And also just to quickly confirm, this does not mean
• 37:26
  Speaker 6: that Bloomberg is launching anything into space. Yeah, we are
• 37:30
  Speaker 6: launching a vertical on a website about space.
• 37:33
  Speaker 11: It's hilarious how many people thought we might actually be
• 37:37
  Speaker 11: sending something to space.
• 37:38
  Speaker 7: But if people really think that's.
• 37:41
  Speaker 2: Yeah, so let's talk about launching humans into space. If
• 37:46
  Speaker 2: you're looking at Blue Origin or a SpaceX, how is
• 37:50
  Speaker 2: NASA taking a different approach to Blue Origin and SpaceX
• 37:54
  Speaker 2: this time round?
• 37:56
  Speaker 3: Right?
• 37:56
  Speaker 11: So, NASA is very intent on sending people back to
• 37:59
  Speaker 11: the Moon for its Artemis program, its goal is to
• 38:02
  Speaker 11: send the first woman and the first person of color
• 38:05
  Speaker 11: to the Larner's surface. But the other main goal is
• 38:08
  Speaker 11: to start a sustainable presence on the lunar surface other
• 38:11
  Speaker 11: than you know, as opposed to the Apollo missions, where
• 38:14
  Speaker 11: we just kind of went, we left flags and footprints
• 38:17
  Speaker 11: and then we came back and we were done. And
• 38:20
  Speaker 11: part of that is stimulating commercial companies to create hardware
• 38:24
  Speaker 11: that NASA can use to send people to the Moon,
• 38:27
  Speaker 11: and then those companies can use that hardware to potentially
• 38:30
  Speaker 11: turn a profit. And the big high profile companies are
• 38:34
  Speaker 11: of course Elon Musk, SpaceX and Jeff Bezos's Blue Origin,
• 38:38
  Speaker 11: which have both been tapped to create the lunar landers
• 38:41
  Speaker 11: that will be used to carry humans to and from
• 38:44
  Speaker 11: the lunar surface.
• 38:45
  Speaker 6: Lauren, I got to ask, as one of these mirror
• 38:48
  Speaker 6: Earth links here, why is this important to send people
• 38:52
  Speaker 6: to the Moon beyond just having the flags and the footprints.
• 38:54
  Speaker 7: Like, what is the you know, real.
• 38:57
  Speaker 6: Useful takeaway from having a presence on the Moon.
• 39:01
  Speaker 11: Well, of course there's the geopolitical one. You know, NASA
• 39:04
  Speaker 11: has a lot of partnerships with countries all over the world,
• 39:08
  Speaker 11: and Artemis is definitely a global program, So it's a
• 39:11
  Speaker 11: way for us to foster, you know, these relationships with
• 39:15
  Speaker 11: companies that want to send vehicles in hardware to space.
• 39:19
  Speaker 11: And then additionally it's kind of a proving ground. You know,
• 39:22
  Speaker 11: NASA is hoping to eventually send humans to Mars someday,
• 39:26
  Speaker 11: and the idea is that by living and working on
• 39:30
  Speaker 11: the Moon, they can you know, come up with new technologies,
• 39:34
  Speaker 11: new processes that they'll eventually use to send humans to
• 39:37
  Speaker 11: the Red planet.
• 39:38
  Speaker 6: I guess I still just wonder, though, how is that
• 39:40
  Speaker 6: like useful, you know besides just saying like we went
• 39:43
  Speaker 6: to space, Like, what's there.
• 39:45
  Speaker 3: To be that?
• 39:45
  Speaker 7: I don't know? Am I missing it?
• 39:47
  Speaker 5: No?
• 39:47
  Speaker 7: There there?
• 39:48
  Speaker 11: That is part of the use you know, you know,
• 39:50
  Speaker 11: obviously there are concerns about China also sending people to
• 39:54
  Speaker 11: the moon. NASA you know, doesn't want you know, there
• 39:58
  Speaker 11: is a bit of a race and that and that respect.
• 40:00
  Speaker 11: But at the same time, there are all these kinds
• 40:02
  Speaker 11: of side benefits that come from sending people to the moon.
• 40:05
  Speaker 11: A lot of the technologies that we use here on
• 40:07
  Speaker 11: Earth have come from space exploration, and so by you know,
• 40:12
  Speaker 11: making this that a goal, there are all there are
• 40:15
  Speaker 11: going to be all of these side benefits that we
• 40:17
  Speaker 11: that trickle down to us. And then of course there's
• 40:19
  Speaker 11: the inspirational element of it too. You know, seeing a
• 40:21
  Speaker 11: woman walk on the moon will definitely inspire.
• 40:24
  Speaker 7: Many young women to.
• 40:26
  Speaker 11: Hopefully want to become astronauts or join the space industry someday.
• 40:30
  Speaker 2: Well, and for a while, no one seemed to care
• 40:32
  Speaker 2: about space launches anymore. Like that was sixties and seventies
• 40:35
  Speaker 2: and we stopped kind of caring, and Jeff Bezos sending
• 40:37
  Speaker 2: on a musk made it all really cool and sexy again.
• 40:40
  Speaker 2: And now we have a space launch, we take it
• 40:42
  Speaker 2: and we talk about it, and we own that, we
• 40:44
  Speaker 2: have a vertical about it. I mean, now it's becoming
• 40:46
  Speaker 2: something that is inspirational. Again, what company do you think
• 40:51
  Speaker 2: is going to be the first to land humans on
• 40:53
  Speaker 2: the Moon?
• 40:54
  Speaker 7: Well, that's a that's.
• 40:55
  Speaker 11: A great question and obviously something that we're going to
• 40:58
  Speaker 11: watch over the next decade or so. So as of
• 41:00
  Speaker 11: this moment, SpaceX is technically in the front running. They're
• 41:04
  Speaker 11: supposed to land humans on the Moon as early as
• 41:07
  Speaker 11: twenty twenty six. I think a lot of people are
• 41:09
  Speaker 11: skeptical about that date just because of the amount of
• 41:14
  Speaker 11: you know, technical things that they have to overcome, the
• 41:16
  Speaker 11: challenges they have. There's a lot of technology development they
• 41:19
  Speaker 11: have to do, and also the deadline for their human
• 41:23
  Speaker 11: lunar landing has changed.
• 41:25
  Speaker 7: A few times before.
• 41:27
  Speaker 11: Blue Origin says that they're hoping to land humans as
• 41:30
  Speaker 11: early as twenty twenty nine, which may be a.
• 41:33
  Speaker 7: More realistic date.
• 41:34
  Speaker 11: However, they are looking to land a cargo version of
• 41:38
  Speaker 11: their vehicle on the Moon as early as next year.
• 41:42
  Speaker 11: SpaceX is also hoping to do an uncrewde landing of
• 41:45
  Speaker 11: their hardware on the Moon as early as next year.
• 41:49
  Speaker 11: So you know, it's anyone's game at that moment to
• 41:52
  Speaker 11: see who can actually land something on the Moon. But
• 41:56
  Speaker 11: whoever does if that is Blue Origin. It'll be a
• 41:58
  Speaker 11: bit of a shot across the bow, if you will,
• 42:01
  Speaker 11: because Blue Origin has had execution problems, whereas SpaceX is
• 42:04
  Speaker 11: obviously quite famous for, you know, rapidly launching and iterating
• 42:09
  Speaker 11: and moving forward with its programs.
• 42:12
  Speaker 2: All right, thank you so much, Lauren, We really appreciate it.
• 42:15
  Speaker 2: Congrats on the article, congrats on launching the vertical, and
• 42:17
  Speaker 2: no small feet. Lauren Crush joins US now called Space
• 42:21
  Speaker 2: Reporter for Bloomberg and for more inside stories of investments
• 42:25
  Speaker 2: beyond Earth, from satellite networks to moon landing. Visits bloomberg
• 42:28
  Speaker 2: dot com slash space for more. So I'm taking got
• 42:32
  Speaker 2: a nice couch, by the way in the background.
• 42:36
  Speaker 7: I don't see how the couch is relevant to space.
• 42:38
  Speaker 7: It's not going up there.
• 42:40
  Speaker 4: You go to Mars, you want a nice couch.
• 42:42
  Speaker 7: My couch is staying on Earth. It's getting in this
• 42:45
  Speaker 7: apartment one way or another.
• 42:46
  Speaker 2: Okay, So you would not be on board for literally
• 42:50
  Speaker 2: going to space is not your jam.
• 42:51
  Speaker 6: I mean, look, if someone's going to pay you know,
• 42:53
  Speaker 6: the millionaires whatever dollars for my ticket, I'm sure it's.
• 42:56
  Speaker 3: More than a million.
• 42:57
  Speaker 6: Like, yeah, I'll be the beneficiary of that.
• 42:59
  Speaker 7: But like I don't know.
• 43:01
  Speaker 6: I still do struggle to see what's the utility of
• 43:03
  Speaker 6: going to space?
• 43:05
  Speaker 7: Am I missing it? I get the whole inspirational aspect
• 43:08
  Speaker 7: of it.
• 43:09
  Speaker 6: Like wow, this is so great, you know, and like
• 43:10
  Speaker 6: the images of like you know, Armstrong with the flag,
• 43:13
  Speaker 6: But why is this useful for us here on earth?
• 43:17
  Speaker 6: Besides it's cool? Has anyone answered it? Did I miss it?
• 43:22
  Speaker 2: I mean I think it's learning. I mean I think
• 43:24
  Speaker 2: it's learning stuff. Could you imagine you're going to learn.
• 43:28
  Speaker 4: How that's advanced and how we can build new couches
• 43:30
  Speaker 4: based on what we learn in space.
• 43:32
  Speaker 2: Actually ignore the last little landage made her couch. They
• 43:35
  Speaker 2: built it in space. That's why it's taken so long.
• 43:38
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