CAROLINE:
I'M CAROLINE HYDE IN NEW YORK. ED:
THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
SNAP PLUNGES AFTER EARNINGS DISAPPOINTED AND THE COMPANY
CITES A CHALLENGING OPERATING ENVIRONMENT FOR THE FULL-YEAR
PARADE WE HAVE ALL THE COVERAGE AHEAD. ED:
TESLA STAFF BRACING FOR LAYOFFS AS MANAGERS ARE ASKED BINARY
QUESTIONS ON WHETHER EMPLOYEES ROLES ARE CRITICAL. CAROLINE:
UBER EARNINGS SHOW ROBUST DEMAND FOR RIDES AND DELIVERIES.
WE WILL SIT DOWN WITH THE UBER CEO. LET'S LOOK AT THE BROADER MARKETS AND SOME STABILIZATION
IN THE BOND MARKETS MEANS WE GET A REPRIEVE AND SOME BUYING
INTO THE TECH MARKET. 7/10 OF A PERCENT ON THE NASDAQ.
CONTINUING ON THE UP AND UP. 10 YEAR YIELDS JUST FLAT AHEAD
OF A RECORD AMOUNT OF SUPPLY ON THE 10 YEAR AUCTION.
BITCOIN NOT DOING MUCH. TRADING ABOVE 43,000.
SEEING WHAT'S HAPPENING IN CHINA, YESTERDAY WE SAW A REAL
LEG HIGHER IN CHINESE INTERNET NAMES IN THE U.S..
TODAY WE LOSE SOME OF THAT OVERALL OPTIMISM BUT STILL AT
4% OVER THE LAST COUPLE OF DAYS. ED: A STORY I REPORTED THIS
MORNING, TESLA HAS CANCELED OR POSTPONED PERFORMANCE REVIEWS
THIS WEEK AND IS SAID TO MANAGERS LOOK AT EVERYONE WHO
WORKS UNDER YOU AND TELLS US WHO IS CRITICAL.
THERE'S A BIG WORRY FROM SOURCES INTERNALLY THAT BIG
LAYOFFS ARE COMING. A BIG SPIKE HIGHER IN PREMARKET
TRADE YOU CAN SEE WE'VE TRADED CHOPPY THROUGHOUT THE SESSION.
BROADLY THAT'S POSITIVE TO INVESTORS.
TESLA HAS DONE THIS BEFORE USING PERFORMANCE REVIEWS AS A
WAY OF PULLING BACK FOR DATA AND DETAILS BACK TO THE EARNING
SIDE OF THE STORY, THERE ARE MIXED FORTUNES DEPENDING ON
WHERE YOU ARE. STRONG EARNINGS, STRONG OUTLOOK.
IT'S A STORY ABOUT AN APP THAT'S MORE DIVERSE.
NEW PRODUCTS ARE HELPING ON THE MOBILITY SIDE AND WE WILL TALK
TO THE CEO LATER TODAY. SNAP DOWN WITH ITS BIGGEST DROP
SINCE OCTOBER OF 2022. MISSING ESTIMATES.
WHAT WAS WITH THOSE JOB CUTS IN SAVINGS IF YOU'RE STILL ON AN
ADJUSTED BASIS LOSING $55 MILLION.
EMERGING MARKETS IS WHAT THEY ARE ON, THE GROWTH IS NOWHERE
TO BE SEEN. LEADING COVERAGE OF SOCIAL
MEDIA AND THE CREATOR ECONOMY. >> INVESTORS ARE OBVIOUSLY
UNHAPPY, THEY ARE FRUSTRATED, LOSING CONFIDENCE AND THAT
MAKES SENSE ESPECIALLY IN THE CONTEXT OF THE META-BLOWOUT
EARNINGS LAST WEEK. IF YOU TAKE IT IN THAT CONTEXT
IT REALLY WASN'T ALL THAT TERRIBLE FIRST SNAP BY ITS
STANDARDS. IT'S Q4 REVENUE DAY CAME IN ON
THE HIGHER END OF ITS INTERNAL GUIDANCE AND ITS REVENUE GROWTH
FOR THE FULL YEAR WAS JUST ABOUT FLAT AND WHAT WE PRETTY
MUCH WERE EXPECTING AN INSIDER INTELLIGENCE.
THE PROBLEM FIRST SNAP IS THE CONTEXT IS KEY INVESTORS.
TWO META. -- AND INVESTORS ARE GOING TO
COMPARE IT TO META. CAROLINE: IT IS ENOUGH BEING DONE TO TURN
AROUND THE ADS IN PARTICULAR AND PROVE THEMSELVES? JASMINE:
ONE OF THE THINGS THAT'S WORKING AGAINST SNAP IN ALL OF
THIS IS ITS LACK OF SCALE IN COMPARISON TO ITS RIVALS.
EVAN SPIEGEL SAID HE WILL CONTINUE TO TRY AND GROW THE
USER BASE BUT BECAUSE OF ITS SMALL SIZE IT IS CURRENTLY A
LESS ESSENTIAL PLAYER FOR ADVERTISERS WHICH IMPACTS OUR
DEMAND. IT ALSO MIX IT MORE CHALLENGING
TO REBOUND SYSTEMS IT HAS LESS DATA AND SIGNAL TO BE ABLE TO
WORK WITH IN ORDER TO DO THIS. >> WHEN YOU HAVE DAILY ACTIVE
USERS, MONTHLY ACTIVATE HUNDRED MILLION. DO YOU JUST HAVE TO
RECATEGORIZE WHAT SNAP IS. THIS IS A NICE COMPANY THAT
WILL BE BOOSTING FOR ITS EARNINGS, JUST NOT AT A PACE
WITH THE MAJOR PLAYERS. JASMINE:
WE ARE SEEING THE BIGGER PLAYERS GET BIGGER AND CONTINUE
TO STRUGGLE. SNAP IS NEVER GOING TO BE A
FACEBOOK OR INSTAGRAM, WITH HOW MANY USERS THERE ARE A LOT OF
ONES ON THE PLATFORM. ONE OF THE BIG PROBLEMS ON THE
SHOW BEFORE IS ITS PRIMARY USE CASE IS STILL MESSAGING. WE HEARD AGAIN THERE IS GROWTH
IN ITS PUBLIC FACING SOCIAL MEDIA FEATURES.
BUT THOSE PEOPLE WHO ARE USING ON A REGULAR BASIS ARE DOING SO
TO MESSAGE. ONE OF THE THINGS IS ALL OF
THIS IS ALSO COMING AT A TIME WHERE SNAP IS REPOSSESSING
ITSELF AS THIS ANTI-SOCIAL MEDIA PLATFORM AND THAT MAKES
SENSE IN TERMS OF THE PROBLEMS WITH SOCIAL MEDIA ESPECIALLY
CONSIDERING THE TESTIMONY IN CONGRESS LAST WEEK.
IT'S NOT GOING TO HELP ITS BUSINESS. ED: LIKE EVERYONE ELSE REAL QUICK,
THEY ARE SAYING THE CONFLICT IN THE MIDDLE EAST IS IMPACTING
THEIR AD BUSINESS. WHAT DO YOU MAKE OF THAT?
JASMINE: IT CERTAINLY WAS A HEADWIND FOR
SNAP'S BUSINESS BUT I THINK THAT IS EMBLEMATIC OF THE
LARGER LONG-STANDING CHALLENGES THAT SNAP HAS.
IT'S DIRECT RESPONSE PLATFORM IS NOT AS SOPHISTICATED AND
STILL MAKING IMPROVEMENTS ON THAT. BRAND ADVERTISERS WHO ARE SPENDING HEAVILY ESPECIALLY IN
Q4 ON SNAP, THEY ARE MORE LIKELY TO PULL THEIR SPENDING
IN TIMES OF CONFLICT OR CRISES AND WITHOUT THAT DIRECT
RESPONSE ADVERTISING PLATFORM AND AD DOLLARS TO MAKE UP FOR
THAT IT'S PROBABLY MORE NOTICEABLE IN SNAP'S EARNINGS.
WHEN ADVERTISERS ARE THINKING ABOUT WHERE TO CUT SPENDING IF
THE SMALLER PLAYERS THEY WILL GO TO FIRST. CAROLINE:
ALWAYS GREAT TO HAVE YOUR ANALYSIS ACROSS THE SHOW.
WE THANK YOU. COMING UP NEXT WE GET A DEEP
DIVE ON UBER'S EARNINGS. SHARES TAKING INTO THE GREEN.
THIS IS BLOOMBERG TECHNOLOGY. ♪ ED: WELCOME TO OUR BLOOMBERG
TELEVISION AND RADIO AUDIENCES WORLDWIDE.
UBER WITH BOOKINGS THAT BEAT ESTIMATES.
AND FOOD DELIVERY DURING THE HOLIDAY PERIODS.
JOINING US NOW IS BLOOMBERG'S EMILY CHANG FOR MORE ON THE
STRONG NUMBERS. EMILY: IT WAS A BEAT ACROSS THE BOARD
BUT THE STOCK IS DOWN THIS MORNING.
NOW THE TIMES ARE GOOD WE SAW THIS REALLY ACCELERATING PRAYED
WILL THAT KEEP UP. DARA: WE GREW TRIPS 24% ON THE YEAR
ON YEAR BASIS ON 2.6 BILLION TRIPS. AS YOU GET LARGER IT GETS
TOUGHER TO HAVE THAT GROWTH. IF YOU LOOK AT OUR GROSS
BOOKINGS GOING FORWARD. IT'S BETWEEN 18 AND 23%.
WE EXPECT TO GROW AT A VERY STRONG RATE.
WHILE AT THE SAME TIME CONTINUING TO INCREASE
PROFITABILITY IN MARGINS WHICH IS THE BEST OF BOTH WORLDS
WHICH IS WHAT INVESTORS EXPECT OF US.
IT'S WHAT WE KNOW UBER CAN DELIVER. EMILY:
LET'S TALK ABOUT THE OTHER HALF OF THE BUSINESS WHICH IS
DELIVERY. YOU HAD TO RAISE SOME FEES IN
SOME MARKETS. WHAT MORE CAN YOU DO IN
DELIVERY TO KEEP THIS UP? DARA: THERE'S A TON GOING ON IN
DELIVERY. THE CORE ONLINE FROM DELIVERY
BUSINESS OVERALL DELIVERY GREW 17% ON A YEAR ON YEAR BASIS AND
IT IS ACCELERATING. IT IS ACCELERATING VERSUS Q2
AND Q3. AND IT IS ABOUT GETTING THE
BASES. CUSTOMERS WANT CHOICE. WE HAVE A MOST ONE MILLION
RESTAURANTS ON OUR SIDE -- A SITE ON THE GLOBAL BASIS.
THEY ALSO WANT RELIABILITY SO WHAT WE MEASURE THE NUMBER OF
ORDERS THAT WE GET WRONG, THE NUMBER OF ORDERS WE GET WRONG
ARE DOWN 25% YEAR ON YEAR BASIS SO THE BUSINESS ARE RELIABLE. WHAT THAT IS RESULTING IN IS
OUR AUDIENCE IS GROWING, A IS GROWING AS WELL AND AS TEACHERS
ORDER MORE AND MORE, A BASKET SIZE. THE GROWTH THAT WE SEE IS VERY
BROAD. WE ARE ADDING TO IT, THE GROCERY BUSINESS IS BIGGER THAN
THE ONLINE FOOD BUSINESS THAN THE FOOD BUSINESS IN TERMS OF TOTAL SIZE, IT IS ABOUT $7
BILLION GROWING OVER 40% AND WE ARE VERY EXCITED TO INTRODUCE
THE EXPERIENCE TO ALL OF OUR EATERS OUT THERE. EMILY:
I'VE GOT TO TALK ABOUT THE SUPER BOWL COMMERCIALS, YOU
HAVE ROSS AND RACHEL, THE BECKHAM'S, THESE BIG STARS COST
MONEY AND YOU HAVE A LOT OF CELEBRITIES, SO IS THIS
MARKETING SPEND PAYING OFF, NEXT YEAR, EXPECTING TAILORS.
DARA: YOU SEE IT BY THE RESULTS. THESE BIG STARS COST A LOT BUT
THEY DELIVER A LOT. AND WHO IS BETTER THAN THE
BECKHAM'S AND JENNIFER ANISTON AS WELL.
THE AMAZING THING ABOUT THESE STARS IS THEY ARE NOT AFRAID OF
MAKING FUN OF THEMSELVES AND HAVING A SENSE OF HUMOR.
THEY ALSO USE THEIR OWN SOCIAL PLATFORMS TO AMPLIFY THE
MESSAGE OUT THERE. IT'S NOT JUST ABOUT THE
COMMERCIAL IT'S ABOUT PEOPLE TALKING ABOUT THE COMMERCIALS.
IT'S ABOUT USING THEIR INSTAGRAM ACCOUNTS TO AMPLIFY
THE PLATFORM. THAT'S WHY IT'S WORKING OUT FOR
US. WE THINK IT'S WORTH THE INVESTMENT. CAROLINE:
MANY TIMES THESE ARE GLOBAL CELEBRITIES PRINT YOU ARE A
GLOBAL COMPANY EVEN IF THE SUPER BOWL IS MORE U.S. FOCUSED.
ARE THERE ANY AREAS YOU ARE WORRIED ABOUT? DARA: RIGHT NOW WE ARE SEEING GROWTH
ACROSS THE GLOBE FOR US IN MOBILITY, LATIN AMERICA AND
ASIA PACIFIC HAVE BEEN STANDOUTS. THAT BUSINESS IS GROWING, BUT
NOW WHAT YOU'RE SEEING IS A PRODUCT WE CALL UBER MOTO WHICH
IS MUCH MORE AFFORDABLE. IF YOU WANT A LOW COST IN
BRAZIL OR MEXICO WE ARE SEEING MORE USERS TAKE TWO WHEELERS.
IN ASIA WE ARE VERY EXCITED ABOUT THE INDIA MARKET. THE INDIA MARKET HAS BEEN ONE
THAT HAS ALWAYS HELD A LOT OF PROMISE.
WE ARE SEEING THAT COME TO FRUITION NOW.
IT'S NOT JUST FOR WHEELERS, BUT THREE WHEELERS AND THE GROWTH
RATES WE ARE SEEING ARE MORE SUBSTANTIAL AND WE THINK THAT
THAT BUSINESS CAN CONTINUE TO GROW OVER THE NEXT FIVE TO 10
YEARS. THERE'S A LOT OF GROWTH AHEAD
AND MANY IN -- IN MANY OF THE MARKETS OUT THERE. CAROLINE: WE ARE OF COURSE SPEAKING WITH
THE UBER CEO. I HATE TO BE THE DEBBIE DOWNER,
BUT FREIGHT, TELL US ABOUT IT. IT'S IN LINE WITH WHERE THE
MARKET WANTED TO SEE IT BUT A BIT OF A DRAG. DARA:
THE FREIGHT BUSINESS IS A CYCLICAL BUSINESS AND WHAT WE
ARE SEEING IS THE STABILIZATION OF THE OVERALL FREIGHT INDUSTRY.
DEMAND WASN'T GROWING. WE ARE SEEING SPOT RATES
IMPROVE AS WELL. WHAT'S REALLY COOL IS WE ARE
USING OUR MARKETPLACE TECHNOLOGY , AND BRINGING IT TO
THE FREIGHT INDUSTRY SO WE ARE VERY CONFIDENT A TURN IS COMING.
WE CAN BRING OUR TECHNOLOGY PROWESS AND THE SERVICE LEVELS
THAT OTHER PLAYERS WHO ARE JUST OFF-LINE REALLY CAN'T MATCH.
IT'S A LITTLE BIT OF A WAITING GAME TO SEE THAT CYCLE TURN AND
WE ARE HOPING TO SEE THAT CYCLE TURN THIS YEAR. ED:
I THINK WE KIND OF LEARNED A LOT ABOUT UBER THE TECHNOLOGY
COMPANY IN THE COURSE OF NEW PRODUCTS AND MORE DIVERSE
OFFERING ON MOBILITY. THERE ARE QUESTIONS ABOUT WHAT
IS THE NEW PRODUCT PIPELINE GOING FORWARD.
HOW CAN YOU KEEP ADDING FUNCTIONALITY TO THE CLOUD
PLATFORM THAT OPENS NEW ADDRESSABLE MARKETS. IT'S AN INDUSTRY THAT SUFFERING
SOME PAIN, -- CAR RENTALS WAS AN INDUSTRY SUFFERING SOME PAIN.
DARA: WHAT WE TRY TO DO WITH UBER IS
WE DO NOT WANT TO JUST BUILD THE SAME THING OTHERS HAVE, WE
WANT TO TRY AND THINK ABOUT A PARTICULAR PROBLEM.
ONE THING WE ARE EXCITED ABOUT IS UBER VALET.
WITH THIS PRODUCT YOU PUSH A BUTTON, YOU GET TO PICK YOUR
CAR BUT THEN AN UBER DRIVER WILL DROP OFF THE CAR FOR YOU
IN FRONT OF YOUR HOUSE OR WHEREVER YOU WANT THAT CAR
DROPPED OFF. WE WANT TO BRING THAT LITTLE
UBER DELIGHT IN WHATEVER EXPERIENCE WE BUILD SO WE ARE
HEADS AND SHOULDERS ABOVE THE COMPETITION SO TO SPEAK.
WE DO IT IN PARTNERSHIP WITH CAR RENTAL COMPANIES.
IT IS THE MAGIC OF UBER THAT WE WANT TO ADDRESS IN EVERY
INNOVATION OUT THERE AND WE THINK THERE IS PLENTY OF
INNOVATION AHEAD FOR US. ED: I AM SOMEBODY WHO TAKES
RIDESHARE PLATFORMS AVAILABLE TO WORK EVERY MORNING, BUT
THERE SEEMS TO BE EVIDENCE THAT CORPORATE RIDERSHIP IS COMING
BACK. WHERE YOU SEE THAT THE MOST.
DARA: LAST YEAR IF YOU LOOK AT CORPORATE WE HAVE A VERY
SIGNIFICANT FOR BUSINESS. THEY COULDN'T USE UBER, IT'S
CONNECTED INTO CORPORATE EXPENSE SYSTEMS, THERE IS AN
AREA OF SAFETY WHICH AS YOU KNOW WHERE YOUR EMPLOYEES ARE
PAID A VERY POPULAR OFFERING FOR US.
LAST YEAR AS CORPORATE'S WERE MORE CAREFUL ON THEIR SPENDING
TRAVEL, THE SPENDING WAS MUTED. WE ARE NOW SEEING ESPECIALLY IN
Q4 AND SO FAR IN THE FIRST QUARTER COMPANIES ARE STARTING
TO LEAN IN AGAIN. THEY ARE STARTING TO INVEST.
THEY ARE GETTING THEIR EMPLOYEES OUT TO BIG CUSTOMERS
FACE-TO-FACE AND THAT ABSOLUTELY IS HELPING THEM BEAT
BUSINESS THAT IS STARTING TO ACCELERATE.
IT'S HIGH-MARGIN BUSINESS, YOU TAKE A COMFORT CAR OR A BLACK
CAR. SO IT'S A HIGH-MARGIN BUSINESS
AS WELL. WE ARE VERY HAPPY WITH THE
SIGNAL WE ARE SEEING. THAT'S NOT JUST THE U.S.
PHENOMENON WE ARE SEEING IN COMPANIES AROUND THE GLOBE
STARTING TO INVEST AGAIN WHICH WE THINK IS A GREAT SIGN. EMILY:
I WANT TO TALK ABOUT EEEV'S BECAUSE THERE'S REPORTS
CONSUMER DEMAND IS FALLING. YOUR OWN RENTAL PARTNER ALSO
PUTTING -- PULLING BACK. HOW MUCH IS THIS HURTING YOUR
PARTNERSHIP, YOUR PUSHED A ZERO EMISSIONS AND EVERYTHING YOU
ARE DOING TO INCENTIVIZE DRIVERS TO SWITCH OVER? DARA:
WE ARE CONTINUING TO PUSH ON THE EEEV SPACE.
WITH EVERY TECHNOLOGY THERE IS THIS INITIAL EXCITEMENT AND
EVERYONE GETS ON BOARD AND MANY PEOPLE OVERESTIMATE THE
POTENTIAL THE BUSINESS OR HOW IT WILL BE.
WE'VE BEEN AROUND AT UBER FOR A WHILE AND WE LOVE SOLVING TOUGH
PROBLEMS. SO WE CONTINUE TO LEAN IN WITH EEEV'S. WE HAVE OVER 120,000 DRIVERS
DRIVING EEEV'S ALL OVER THE WORLD. FOR THE PAST YEARS WE'VE COMPLETED MORE THAN 300 MILLION
TRIPS IN TERMS OF EV'S SO WE CONTINUE TO LEAN IN. A REAL CONCERN IS WITH CHARGING
INFRASTRUCTURE AND MAKING SURE THAT THAT CHARGING
INFRASTRUCTURE IS AVAILABLE AND READY, ESPECIALLY WHERE IT IS
NEEDED, IT MAY NOT BE AROUND THE CITY BUT THE TOWNS THAT
THEY LIVE, ETC.. IF THE CHARGING INFRASTRUCTURE
COMES IN WE THINK WE HAVE THE PARTNERSHIPS IN PLACE AND WE
ARE PUTTING REAL MONEY BEHIND OUR PUSH TO EV'S INCLUDING
SUBSIDIZING RIDES. SO IT'S MORE ON THE EV TRIP SO
THEY ARE DETERMINED AND WE THINK WE WILL KEEP PUSHING THE
MOMENTUM IN THIS SPACE. EMILY: YOU ARE SHUTTING DOWN LAYING
OFF 100 50 PEOPLE, WHAT HAPPENED THERE?
DID ALCOHOL SALES DECLINED POST-PANDEMIC?
DON'T YOU KNOW THERE'S A SUPER BOWL COMING UP? DARA:
IT WAS A TOUGH DECISION AND WHAT WE HAVE OBSERVED IS THE
UBER EATS PLATFORM, YOU RIDE ON UBER, YOU EAT ON UBER, YOU GET
GROCERIES ON UBER. YOU ORDER ALCOHOL ON UBER EATS.
THE POWER OF THE PLATFORM IS REALLY SIGNIFICANT.
THINGS HAVE CHANGED WHERE COMPANIES HAVE TO BE MORE
DISCIPLINED IN THEIR INVESTMENT AND WHILE WE LOOK AT A
MARKETING WE PUT THE NEXT MARKETING DOLLAR BEHIND UBER
EATS, I.E. A SUPER BOWL COMMERCIAL OR
BEHIND INTRODUCING THE DRIZZLY BRAND TO CONSUMERS.
IT DID NOT MAKE SENSE TO KEEP INVESTING.
SO WE HAVE TAKEN A LOT OF WHAT WE LEARNED FROM THERE, MANY OF
THE WORK RELATIONSHIPS ETC., BUT ESSENTIALLY THAT BUSINESS
IS SHUTTING DOWN IN TERMS OF THE ORGANIC BUSINESS AND WE ARE
BUILDING ON ALCOHOL WITHIN UBER EATS. WE THINK THAT'S THE NEXT
INVESTMENT GOING FORWARD. >> COST DISCIPLINE.
A JOY TO HAVE YOU ON THE SHOW AND OF COURSE OUR THANKS TO YOU.
COMING UP, THE HEAD OF BYTEDANCE CHINA OPERATION
STEPPING DOWN. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
FIRST UP, TSMC THE WORLD'S BIGGEST CHIP CONTRACT
MANUFACTURER AND SUPPLIER TO NVIDIA SAW JANUARY SALES RISE
OFF STRONG DEMAND FOR AI CHIPS. NOW REVENUE ROSE ON MOST 8%
LAST MONTH. THE GROWTH IS THE SIGN THEY
COULD BE ON THE HORIZON. AHEAD OF BYTEDANCE'S -- THE
HEAD OF LIGHT DANCE'S CHINA OPERATIONS IS STEPPING DOWN.
THEY LOST GROUND IN THE AI RACE. BYTEDANCE WILL NOT APPOINT A
SUCCESSOR AND SHE WILL MOVE HER FOCUS. ALIBABA REPORTED LOW --
LOWER-THAN-EXPECTED SALES DOWN BY A WEAKER E-COMMERCE BUSINESS.
THE COMPANY ALSO APPROVED THE INCREASE OF $25 BILLION TO ITS
SHARE PURCHASE PROGRAM. THIS IS DESPERATELY TRYING TO
BUILD UP INVESTOR CONFIDENCE. THE REVENUE INCREASES OF THE
MARKET TO SEE THEY THEREFORE HAVE SOME BIG EXECUTIVES BUYING
SHARES AND ALSO BUYBACK TO ANNOUNCE. ED:
I WAS THINK OF ALIBABA AS THE NEAREST THING TO AMAZON.
IT HAS A SIMILAR STORY. THE CLOUD IS NOT GROWING AND
THEY ARE DOING ALL THEY CAN TO SWEETEN THINGS FOR INVESTORS.
BUYBACKS, AND IN THE PROSPECT OF SPINNING OFF ONE OF THE
UNITS. IT COMES BACK TO THE CORE BUSINESS. CAROLINE: HEARING FROM THEM TRYING TO NOT
HAVE COMPLACENCY FOCUSING ON AI AS WELL IS EXACTLY WHERE
ALIBABA IS FALLING BEHIND. THEY HAD ISSUES WITH NVIDIA,
THEY ARE TRYING TO FEND OFF DEEP COMPETITION OF E-COMMERCE.
THEY ARE KNOCKING TO SACRIFICE PROFITABILITY. ED: THIS GIVES DIFFERENT MARKET
EXPOSURES WHICH IS QUITE INTERESTING.
MUCH MORE TO TALK ABOUT COMING UP. WE WILL BE JOINED BY THE
TENDRIL CEO. I'M ALSO LOOKING AT THE SPACE
AT THE CHIPMAKER WITH THE DECLINE OF 8%.
THEY'RE NOT CAN EVER GET TO BE PROFITABLE.
THEY ARE MAKING CHIPS WHILE BEING SUBJECT TO SANCTIONS.
THE COMPANY TALKED ABOUT GEOPOLITICAL HEADWINDS, BUT THE
LOOK AT THEIR MARGINS. AND TRYING TO CREATE DOMESTIC
INDUSTRY IS HARD. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE:
WELCOME BACK TO BLOOMBERG TECHNOLOGY. ED:
EARNINGS IS THE BIG STORY. NASDAQ 100 THE INDEX LEVEL,
HIGHER PERCENTAGE POINT. TESLA IS PUSHING HIGHER LATER
IN THE SHOW SET TO EXPLAIN THE STORY WE REPORTED THIS MORNING
THAT MANAGERS BEING ASKED TO LOOK AT THEIR STAFF AND TELL
THE COMPANY WHO IS CRITICAL AND WHO IS NOT.
THE IDEA LAYOFFS MIGHT BE COMING.
ASTONISHING RECORD REVENUE IN THE CORRIDOR.
WHAT THEY SAID IS EVERY SINGLE DAY 71.5 MILLION PEOPLE LOGGED
ON TO PLAY THROUGH ROADBLOCKS WHICH IS PRETTY ASTONISHING
PERFORMANCE FOR THAT PLATFORM. IT'S ONE OF THE BIG VIDEOGAMES
MOVERS IN THE MOMENT RIGHT NOW. ALWAYS FIND TENDRIL VERY
INTERESTING. WE INTRODUCE THIS NAME AT THE
TIME AT THE END OF LAST YEAR WE ARE UP 2%.
BIGGEST GAIN IN AROUND THREE MONTHS AT ONE POINT IN THE
SESSION WHEN IT WAS UP 6.2%. LOOK AT THE PERFORMANCE IN THE
OUTLOOK. THE STREETLIGHTS WHAT IT SEES.
CAROLINE: WE CAN SPEAK TO THE CEO ABOUT
HOW THEY SPUN OFF THE FOCUS HAS BEEN ON GETTING RID OF ZERO
MARGIN ON LOW PROFITABILITY DEALS. WE AGGREGATE THE WAY THE
BUSINESS IS GOING. REVENUE MIGHT BE LOWER FOR A
BIT. THIS SEEMS TO BE PROGRESS. TALK US THROUGH WHETHER IT'S
TURNING AROUND THE PACE YOU WANT. >> WE HAVE HAD ANOTHER GREAT
QUARTER WHICH CONTINUES NOW, OUR STRING OF STRONG EXECUTION
AS WE EXECUTE THIS PLAN TO REMOVE CONTENT THAT REALLY HAD
NO OR REAL NEGATIVE MARGINS IN THIS INSTANCE.
SO WHILE WE ARE ENGINEERING THE DECLINE IN REVENUES AT THE SAME
TIME WE ARE FOCUSED ON GROWTH AND AGAIN WE SAW GOOD GROWTH IN
OUR KINDRED CONSULT BUSINESS WHICH IS 14% FOR THE YEAR.
WE CONTINUE TO SEE GREAT GROWTH IN OUR SIGNINGS THAT WERE
DELIVERING WITH THE HYPER SCALE PARTNERS.
WE ARE FOCUSED ON GROWTH AND FOCUS ON ENGINEERING. WHAT WE LOOK MOST THROUGH THIS
FISCAL YEAR IN MARCH. IT IS MOVING VERY FAST PACE,
OUR CUSTOMERS DO RELY ON US FOR THE HELP WE NEED AND THE
SECULAR TRENDS THAT REPRESENT OPPORTUNITIES OR RISKS TO THEM.
THAT'S WHERE WE SIT FOR THE MISSION-CRITICAL WORKLOADS. >> BUILDING THAT PARTNERSHIP
WITH HYPER SCALARS LIKE GOOGLE CLOUD.
I'M INTERESTED ULTIMATELY WHERE YOU AT THE MOST HANDHOLDING AT
THE MOMENT. EVIDENTIALLY, WITH MACRO
HEADWINDS AS THEY ARE HOW MUCH ARE COMPANIES WILLING TO
PURCHASE EXPERTISE. >> IT'S A GREAT QUESTION.
WHERE WE SIT AND WHAT WE DO FOR CLIENTS WE SIT IN THE HEART OF
MISSION-CRITICAL. ALSO, CONSULTING RUN
MISSION-CRITICAL. OUR CUSTOMERS ARE LOOKING FOR
THE NEWER THINGS LIKE GENAI WE ARE CERTAINLY GETTING A LOT OF
ACTIVITY WITH OUR CUSTOMER BASE TO HELP ARCHITECT DATA AND
FIGHT THROUGH RESILIENCY AS THEY MOVE INTO THE AI WORLD.
AT THE SAME TIME THERE ARE SOME REALLY BASIC SECURITY THINGS
THAT CUSTOMERS NEED HELP WITH. OUR CONSULTING BUSINESS IS
REALLY DRIVEN BY THE NATURE -- THE SAME NATURE OF THE WORK WE
DO IN MISSION-CRITICAL AND OBVIOUSLY AI REPRESENTS A REAL
GOOD LONG-TERM SECULAR TREND AS THEY START TO TRY AND FIGURE
OUT THE CUSTOMERS. THE WORK IS PRIMARILY IN THE
MISSION-CRITICAL NATURE OF WHAT WE DO ON A RUN BASIS. >> LET'S THINK ABOUT THAT IN
THE CONTEXT OF A CASE STUDY YOU OUTLINED ON YOUR CALL.
PARTNERSHIP WITH AN UNNAMED GLOBAL AUTOMAKER. YOU BASICALLY SAID THIS ISN'T
ABOUT I.T. WE ARE HELPING THIS IN THE
MANUFACTURING CONTEXT. I WONDER IF YOU WOULD EXPLAIN
HOW THAT WORKS IN PRACTICE. >> WHEN YOU THINK ABOUT THE
COMPLEXITY THAT THERE MEANT -- ACROSS THE SUPPLY CHAIN AND
HAVING PUT THAT TOGETHER YOU CAN IMAGINE THE COMPLEXITY OF
THE I.T. INFRASTRUCTURE THAT HAS TO
BRING THEM TOGETHER INCLUDING WHERE IS THE DATA, IS IT
SECURE, CAN THESE SYSTEMS RUN AT THE LEVEL OF RESILIENCE
BECAUSE ONCE YOU INTRODUCE NEW COMPLEXITY, OBVIOUSLY THAT HAS
AN IMPACT OR COULD HAVE AN IMPACT ON THE RESILIENCY AND
THESE CAN SHUT DOWN. THE COORDINATION THE SUPPLY
CHAINS RUN ON HIGHLY RESILIENT, HIGHLY SECURE INFRASTRUCTURE
AND AS THEY -- ALL OF OUR CUSTOMERS GO LOOK FOR NEW
INNOVATIONS TO HELP THEM DO WHAT THEY DO, THAT JUST MAKES
THE WHOLE INFRASTRUCTURE MORE COMPLEX. >> YOU SPENT A LOT OF TIME ON
THE CALL TALKING ABOUT COST SAVINGS, DISCIPLINE, OF WORK
YOU'VE DONE. I REFLECT BACK TO THE
CONVERSATION WE HAD BEFORE IN MARCH OF LAST YEAR YOU TRAINED
A SMALL PERCENTAGE OF REALLY BIG WORKFORCE, A 90,000 PEOPLE
AT THAT TIME. HOW DO YOU SEE THAT PLAYING OUT
THIS YEAR. WE WILL BE COVERING UNFORTUNATELY LAYOFFS ACROSS
THE TECHNOLOGY SECTOR ON AN ALMOST DAILY BASIS AT THE
MOMENT. >> FOR US WE WERE BORN WITH 80
PLUS THOUSAND EMPLOYEES OVER TWO YEARS AGO WE PICKED UP A
LITTLE BIT WHEN LAST WE SPOKE IT WAS ABOUT 90 AND WE ARE
STILL IN THE 80'S. THE REASON WE ARE STILL IN THE
80'S IS THE FOCUS ON DELIVERY AND WHAT YOU TALK ARE GRAND
DELIVERY EFFORTS IS LED TO TREMENDOUS QUALITY IMPROVEMENTS
FOR OUR CUSTOMERS. AT THE SAME TIME IT ALLOWS US
TO FREE UP PEOPLE AND MOVE THEM INTO THESE NEW AREAS SO THAT WE
ARE NOT ACTIVELY RESKILLING EMPLOYEES AND MOVING THEM INTO
THE CLOUD EXPERTS FOR INSTANCE MOVING INTO BEING
CYBERSECURITY, ETC.. WHEN WE WERE LOOKING AT A BIT
OVER TWO YEARS AGO WE HAD FEWER THAN 1000 CREDENTIALED PEOPLE
ACROSS THE ENTIRE EMPLOYEE BASE, FEWER THAN 1000 WHO WERE
CERTIFIED AND CREDENTIALED ON A HYPER SCALER.
WE HAVE OVER 35,000. THAT'S WHAT'S DRIVING THE
GROWTH FOR US WHETHER HYPER SCALE PARTNERS, DRIVING THE
GROWTH WITH HER CONSULT BUSINESS.
WE HAVE THE BEST ENGINEERING TALENT WHO KNOW THESE CUSTOMERS
SO WELL SO OUR CUSTOMERS ARE DELIGHTED THAT THEY ARE GETTING
BETTER QUALITY BECAUSE THEY ARE USING OUR AI THROUGH OUR
PLATFORMS BUT ALSO GETTING BACK THE SAME PEOPLE THEY TRUST AND
HAVE KNOWN FOR YEARS TO HELP THEM IN THESE NEW AREAS.
IT'S A TERRIFIC MODEL FOR US. ED:
GREAT TO CATCH UP ON BLOOMBERG TECHNOLOGY, THANK YOU FOR YOUR
TIME. COULD TESLA BE THE NEXT COMPANY
TO UNDERGO A WAVE OF LAYOFFS. AN IMPORTANT REPORT THIS
MORNING. THAT'S NEXT, THIS IS BLOOMBERG
TECHNOLOGY. ED: TESLA STAFF ARE BRACING FOR
POTENTIAL JOB CUTS AFTER MANAGERS WERE ASKED TO AFFIRM
WHETHER EACH OF THEIR EMPLOYEES THAT WORKED UNDER THEM IS IN A
POSITION THAT IS CRITICAL. WHAT WE HEARD FROM SOURCES IS
ITS PERFORMANCE REVIEW WEEK AND MANAGERS ARE SAYING OR BEING
ASKED TO LOOK AT EVERYONE THAT WORKS FOR THEM AND DECIDE I
GUESS WHO STAYS AND WHO GOES. >> THAT IS THE FEAR.
WE DON'T KNOW THAT FOR SURE. WHAT WE'VE HEARD AND YOU'VE
HEARD FROM DIFFERENT PEOPLE IS PERFORMANCE EVALUATIONS HAPPEN
AND WHAT I HEARD WAS THEY WERE REOPENED AND THERE WAS ONE NEW
QUESTION. IS THIS EMPLOYEES ROLE CRITICAL.
THE MANAGERS NEED TO JUSTIFY THEIR JOBS.
THAT IS DEFINITELY WORRYING, TESLA SO FAR HAS AVOIDED THE
LAYOFFS THAT HAVE ROCKED SILICON VALLEY.
WE DON'T KNOW IF THIS IS A CALLING BASED ON PERFORMANCE OR
IF THERE WIDESPREAD LAYOFFS. ED: THIS IS KIND OF NORMAL IN THE
SENSE THEY ARE LOOKING FOR COST SAVINGS EVERYWHERE.
IT'S PLAYED OUT IN THE PAST. I'VE HEARD FROM SOURCES WHEN WE
REPORTED ON THE AUTOPILOT TRIMS LAST YEAR THAT HEADCOUNT WAS
MOVED ELSEWHERE. WHAT IS THE A NEW OR. >> TESLA IS STILL AGGRESSIVELY
HIRING A LOT OF AREAS. THEY HAVE TONS OF OPENING FOR
DOJO, FOR MEGA PACK, FOR PAYMENT SYSTEMS. THERE'S A LOT
OF JOB OPENINGS AT TESLA SO THEY ARE STILL AGGRESSIVELY
HIRING SO THIS COULD BE AN EFFORT TO REDUCE HEADCOUNT IN
SOME PLACES WHERE THEY FEEL IT IS NO LONGER NECESSARY.
CAROLINE: THEY ARE TRYING TO PUT FORWARD
THE IDEA YOU'RE CONSTANTLY PUTTING THIS FORWARD.
I GUESS THIS IS A WAY OF ASCERTAINING WHETHER YOU ARE OR
NOT. I WONDER HOW IT SPEAKS TO THE
FACT WE ARE SEEING SUCH PRESSURE ON TESLA FROM AN EV
DEMAND PERSPECTIVE. WILL IT AUTOMATICALLY BE IN THE
MANUFACTURING AREAS THAT THESE JOBS HAVE TO BE SACRIFICED? >> IT'S HARD TO SAY WHERE THE
CUTS WOULD BE. TESLA REGULARLY WHEN THEY GO
THROUGH A PERFORMANCE REVIEW CYCLE EVERY SIX MONTHS AT
SILICON VALLEY IT'S CALLED RANK AND YANK TO BE COURSE ABOUT IT.
IT JUST REALLY KEEPS EVERYBODY ON THEIR TOES.
YOU ALWAYS WANT TO BE A HIGH PERFORMER THERE'S ALWAYS
CONCERN IF YOUR JUSTIFYING STAFF, TESLA HAS GROWN
DRAMATICALLY SINCE 2020 DURING THE PANDEMIC THEY HAVE OVER
140,000 EMPLOYEES GLOBALLY AND THEY WILL CONTINUE TO HIRE IN
THE AREAS OF THE COMPANY ELON MUSK WANTS TO STAFF UP.
BUT LIKE ANY COMPANY WHEN YOU ARE FACING A DOWN YEAR IN TERMS
OF GROWTH YOU START CUTTING AND SALARIES IS A WAY TO DO THAT. >> WE PLAYED OUR EARNINGS BINGO
WHICH I THOROUGHLY ENJOYED. 140,000 PEOPLE IF THERE'S A BIG
PRICE IT'S PROBABLY THE ENERGY BUSINESS BECAUSE WHAT THEY SAID
WAS IT WOULD JUST OUTPACE THE CAR BUSINESS IN TERMS OF GROWTH.
WHAT ELSE TO BE KNOW ABOUT WHAT'S GOING ON WITH ENERGY. >> TESLA HAS THIS BIG FACTORY
IN LATHROP. AND WHAT WE CALL THE CENTRAL
VALLEY AND THAT IS WHERE THEY ARE BUILDING THE MEGA PACKS.
THEY ARE EXPANDING PRODUCTION IN SHANGHAI AND THESE ARE THE
BIG BATTERIES THE TESLA SELLS TO UTILITIES LIKE PG&E.
IT'S A HUGE GROWTH DRIVER FOR THE BUSINESS.
MEGA PACK IS THE BIG DRIVER OF THE GROWTH THERE. CAROLINE: GREAT REPORTING FROM YOU BOTH
ON THIS KEY STORY. LET'S FOR A MOMENT NOW TURN TO
ANOTHER ONE OF HIS COMPANIES. ACTS.
THIS IS AFTER TUCKER CARLSON HAS ANNOUNCED ON THE SOCIAL
MEDIA PLATFORM HE HAS INTERVIEWED RUSSIA'S LEADER
BLADDER MAY PUT IN. HE ALSO GAVE A SHOUT OUT TO
ELON MUSK WHO HE SAYS WILL ALLOW THE FULL INTERVIEW TO BE
POSTED ON ASK. SPEAKING TO KURT WAGNER FOR
MORE ON THIS. THE CONTEXT BEING HE IS THE
FIRST U.S. JOURNALIST TO DO A SIGNIFICANT
SIT DOWN SINCE WAR ERECTED IN 2022.
AND NOTABLY PUTIN HAS FOUGHT BACK AGAINST CRITICAL
JOURNALISM IN PARTICULAR AND IN FACT HAS A KEY WALL STREET
JOURNAL REPORTER INCARCERATED AT THE MOMENT.
GIVE US THE CONTEXT OF WHAT THIS MAKES ADVERTISERS FEEL
LIKE? >> A LOT OF ADVERTISERS WOULD
BE VERY RELUCTANT TO SEE THEIR BRAND SHOW UP ANYWHERE NEAR
THIS INTERVIEW. I ALSO THINK A LOT OF
ADVERTISERS ARE PROBABLY NO LONGER ON ASK.
I THINK A LOT OF THE PEOPLE WHO ARE STILL SPENDING MONEY ON
HAVE A THICK SKIN WHEN IT COMES TO WHAT THEY EXPECT OR IMAGINE
THAT THEIR MARKETING IS GOING TO APPEAR NEXT TO.
I'M NOT SURE WE ARE NECESSARILY GOING TO SEE A NEW WAVE OF
PEOPLE RUSHING IN THE OTHER DIRECTION BECAUSE A LOT OF
THOSE PEOPLE ARE ALREADY GONE. THIS SPEAKS TO THE ULTIMATE
GAME WE'VE BEEN TOLD FROM ELON MUSK IS FOR FREEDOM OF SPEECH.
AND ALL ITS ENTIRETIES. SO TELL US ABOUT HOW ULTIMATELY
THE DEAL IS WITH THE LIKES OF TUCKER CARLSON ARE GOING
GETTING ON PEOPLE WHO ATTRACT A BIG CROWD TO ULTIMATELY HAVE
SHOWS ON THE PLATFORM. >> I WAS INTERESTED RIGHT AFTER
CES WHEN THEY ANNOUNCED THEY WOULD BE DOING THESE NEW SHOWS,
ANOTHER ONE THERE WERE GOING TO BRING ON. I SPOKE TO FOUR MEDIA AGENCIES
AFTER THE ANNOUNCEMENT WAS MADE AND ALL OF THEM BASICALLY SAID
THE SAME THING THAT THE SHOWS ARE NOT TO MOVE THE NEEDLE NOW.
IF YOU ARE A BIG BRAND LOOKING TO SPEND IT MIGHT BE NICE TO
HAVE SORT OF A -- SOMETHING THAT IS PROFESSIONALLY PRODUCED
BUT YOU CAN RUN YOUR AD NEXT TWO.
UNTIL THEY GET A MUCH LARGER COLLECTION OF THESE TYPES OF
SHOWS WITH MUCH MORE AND LESS CONTROVERSIAL HOST, I'M NOT
SURE THIS IS THE KIND OF THING THAT WILL DRAW ADVERTISERS BACK
AND AGAIN I DON'T THINK -- THOSE FOLKS ARE ALREADY GONE.
I DON'T THINK THIS IS NECESSARILY BIG ENOUGH BUT IT
WILL LURE PEOPLE BACK WHO HAD BEEN RELUCTANT TO SPEND MONEY. ED:
THERE'S A LOT HAPPENING IN THE SOCIAL MEDIA SPACE.
YOU REPORTED JACK DORSEY'S BLUE SKY, THE DECENTRALIZED SOCIAL
MEDIA PLATFORM IS NOW OPEN UP TO EVERYONE.
WHY IS THAT SIGNIFICANT QUESTION MARK >> BLUE SKY HAS
EMERGED AS ONE OF THE MAIN ALTERNATIVES TO X EVER SINCE
ELON MUSK TOOK OVER. THERE ARE TECHNICAL REASONS WHY
PEOPLE ARE EXCITED ABOUT IT. THE DECENTRALIZED ELEMENT IS
IDEALISTIC, BUT FOR THE MOST PART THIS IS SIMPLY A PLACE
WHERE PEOPLE USE TO LIKE TWITTER BUT NO LONGER FEEL
COMFORTABLE USING X HAVE BEEN GOING. PERHAPS THAT WILL EXPEDITE THE
GROWTH OF BLUE SKY, AGAIN WE ARE LOOKING AT THREATS,
THREADS, BLUE SKY. THESE WERE ESSENTIALLY
ALTERNATIVES AND SO IT'S ALWAYS INTERESTING TO KEEP TABS ON
WHAT THEY ARE DOING AND IF THEY ARE STILL GROWING AND CAPTURING
PEOPLE RUNNING AWAY FROMX. ED: YOUR BOOK ON X IS IMMINENT.
SO MUCH HAS CHANGED IN REAL TIME.
WE WERE TEASING JASON TODAY ABOUT HOW YOU HAD TO REWRITE
DEXIA TO REWRITE THE LAST GRAPH OF HIS BOOK.
SOMETHING YOU JUST SAID, BLUE SKIES THE ALTERNATIVE TO X.
WHERE DO YOU THINK IT SITS IN THE LANDSCAPE RIGHT NOW.
MEHTA, FACEBOOK, SNAP, THINGS LIKE THAT. >> I STILL FEEL LIKE IT'S A
GOOD PLACE TO GO FOR CERTAIN TYPES OF NEWS.
I'M A BIG SPORTS FAN. I STILL THINK THEY'RE THE BEST
PLACE TO GO IF YOU WANT TO FIGURE OUT WHAT'S GOING ON WITH
MY FAVORITE TEAM IN THE FL PLAYOFFS.
THERE'S A BUNCH OF OTHER CATEGORIES, NEWS THAT I THINK X
USED TO BE THE GO TO PLACE FOR WHERE IT'S NO LONGER THAT OR IT
IS CERTAINLY NOT AS RELIABLE AS IT USED TO BE.
THERE'S A BUNCH OF REASONS FOR THAT. THERE'S A CHANGE IN VERIFICATION AND ELIMINATING
THIS ABILITY TO QUICKLY IDENTIFY WHO LEGITIMATE
JOURNALISTS ARE VERSUS THOSE WHO MIGHT NOT BE DOING THAT
PROFESSIONALLY. TO ME THAT'S PART OF THE
COMPANY WHEN IT COMES TO NEWS. OBVIOUSLY ELONG DISAGREES AND
FOR THAT REASON I THINK THEY'RE SORT OF A FALLING OUT OF THE
POSITION THAT IT HAD OVER NEWS OVER INSTAGRAM, FACEBOOK AND
OTHERS A FEW YEARS AGO. ED: THANK YOU VERY MUCH.
COMING UP ON THE SHOW ESPN, FOX AND WARNER BROS.
DISCOVERY ARE BANDING TOGETHER TO LAUNCH A SPORTS FOCUSED
STREAMING SERVICE WE WILL BRING YOU THOSE DETAILS NEXT, THIS IS
BLOOMBERG TECHNOLOGY. >> LEAH NO MESSY IN SEEMINGLY
THE HOT AFTER TAKING PART IN A FOOTBALL MATCH IN JAPAN JUST
DAYS AFTER NOT APPEARING AT A MATCH IN HONG KONG. THE HONG KONG SPORTS ACCUSED
MESSY AND THE U.S. CLUB IN MIAMI FOR DISRESPECTING
FANS. ALONG WITH ANOTHER POPULAR
TOPIC , MESSI'S MESS. >> IT'S AN ASTONISHING
SITUATION HE FINDS HIMSELF IN. LET'S STICK WITH SPORTS AND
BRING IN DETAIL. TO UNPACK WHAT WAS INTERESTING
DEAL LAST NIGHT. ESPN, FOX AND WARNER BROS.
JOINING FORCES, SPORTS FOCUSED STREAMING SERVICE.
WHAT DO YOU MAKE OF THAT? THAT IS A MOVE. >> IT IS A BOLD MOVE BY THESE
BIG MEDIA COMPANIES. IN MANY WAYS CONTROLLING THEIR
OWN FUTURE. CONTROL THEIR OWN DESTINY AS WE
MOVE TO THE STREAMING WORLD. WE ALWAYS KNOW THAT THEY HAVE
BEEN IN CHARGE OF CONTENT PRODUCTION BUT THIS REALLY
GIVES THEM A HOLD OF CONTENT DISTRIBUTION AS WELL AS MORE
PEOPLE CUT THE CORD. >> DISNEY SAYS THEY WILL GO ON
WITH THEIR OWN ESPN OFFERING WHETHER THAT'S CANNIBALIZATION
OR NOT. THEY WANT TO BE THERE AS MUCH
AS THEY CAN. ALSO AHEAD OF NELSON'S OWN
WHITE PAPER WHERE HE WANTS ESPN TO BE SOLD OFF OR PARTNERED
WITH NETFLIX. WHO LOSES THROUGH THIS?
IS IT NETFLIX AMAZON, IS IT THE LEGACY ONES THAT ARE NOT
INVOLVED? >> I DON'T THINK NECESSARILY
NETFLIX AND AMAZON WILL LOSE THROUGH THIS.
IT'S MORE OF A DEFENSIVE MOVE BY THE BIG MEDIA COMPANIES TO
MAKE SURE THEY ARE AT THE TABLE. WE KNOW BIG TECH HAS BEEN
REALLY AGGRESSIVE WHEN IT COMES TO BIDDING FOR THE SPORTS
RIGHTS. YOU COULD AMAZON WITH THURSDAY
NIGHT FOOTBALL, THE BIG W W E DEAL. OBVIOUSLY BIG MEDIA KNOWS THERE
WILL BE A LOT OF THE SPORTS RIGHTS THAT COME UP FOR RENEWAL
AND WE KNOW NBA AND SOME OF THESE LEAGUES WILL BE LOOKING
FOR HUGE INCREASES. TRIPLE THE FEES AND SOME OF THE
CASES. SO THEY WANT TO SHORE UP THEIR
RESOURCES AND BE ON THE TABLES PRAYED I LOOK AT THIS AS A
DEFENSIVE MOVE NOT NECESSARILY THAT ANYBODY LOSES OUT THERE.
ED: THIS IS THE BATTLE FOR THOSE
WHO CANNOT ROOM EMBER THEIR PASSWORDS.
PARAMOUNT PLUS FOR CHAMPIONS LEAGUE FOOTBALL, PEACOCK FOR
PREMIER LEAGUE. I'M WATCHING ON ESPN.
THERE ARE TOO MANY PLATFORMS. IT'S HARD I DON'T HOW TO LOGIN. >> YOU'RE ABSOLUTELY RIGHT.
WE DO NEED A COMPREHENSIVE BUNDLE.
THIS IS WE ARE COMING FULL CIRCLE HERE.
I THINK WE WILL GO BACK TO SOME FORM OF A BUNDLE.
THIS IS THE FIRST STEP IN THAT, OF COURSE WE DON'T HAVE
PARAMOUNT CONTENT OR NBC CONTENT.
WE WILL NEED ALL OF THAT BUT THIS IS A GOOD FIRST STEP. THAT'S THE WAY YOUR MEMBER YOUR
PASSWORDS. THANK YOU SO MUCH. ALWAYS GREAT TO GET HER
EXPERTISE. DEFENSIVE AT THE MOMENT.
WE LOOK AHEAD TO DISNEY'S EARNINGS LATER THIS WEEK.
THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. >> SHOUT OUT TO STAGE
ENCRYPTION AUTHENTICATION. MEGA SHOW RECAP AT ALL ON THE
PODCAST. ALL THE PLACES YOU WOULD EXPECT, APPLE, SPOTIFY
AND OF COURSE ON THE BLOOMBERG PLATFORMS AS WELL.
WE APPRECIATE THE FEEDBACK WE HAVE BEEN GETTING ABOUT THOSE
OF YOU THAT ARE TAKING ON THE SHOW AND PODCAST. MY GOODNESS
WE ARE THREE DAYS IN. IT'S BEEN AN INCREDIBLE WEEK
FROM NEW YORK CITY, THIS IS BLOOMBERG TECHNOLOGY.
