tv Bloomberg Technology Bloomberg July 7, 2022 5:00pm-6:00pm EDT
technology" with emily chang. ♪ caroline: i am caroline hyde in new york. details on a report that elon musk's deal to buy twitter is in serious jeopardy, a report saying the team has stopped engaging in discussions around the deal. we will chat with eventbrite chairman kevin hart about the consumer demand of events as they make a big return post-pandemic. we chat with the major league soccer commissioner. taylor riggs is here to show how the nasdaq is doing a. taylor: is this "bloomberg's markets: the close"?
some of the longest winning streaks we've had going back to march. we are getting some green on the screen. i think you mentioned the nasdaq 100. it was all about big tech, pushing forward. i want to change it up. it would not be a bloomberg technology show if we did not throw in some cerium, does going. -- some ethereum, dogecoin. caroline: thank you. let's get back to the recent
breaking news. elon musk's deal to buy twitter is in serious jeopardy, according to "the washington post." reported by the washington post. ed ludlow is out there where elon musk is meant to be landing soon. >> the thrust is that elon musk's team working on this deal do not believe the data twitter is providing about the level of bots on the platform is reliable according to the washington post reporting, that they stopped engaging with potential equity partners, and you look to the reaction on twitter stop down five percentage points, this does put the deal in serious doubt. >> i thought they just reiterated guidance about them. >> the timing of this is bizarre and spectacular because earlier
today, twitter executives reiterated that less than 5% of users on the platform are bots. it is a mixture of public and private data twitter holds. as have been reported by multiple media outlets, they have been going above and beyond to give elon musk extra data. if that washington post report is to believed, it is going to make for an awkward situation here. >> it could last years because he cannot just back out of the deal he said he did not need do diligence on anyway. >> this is interesting. i have been speaking to folks in the mountain bike trails of sun valley, and the reverse termination fee on this deal $1 billion in either direction is not straightforward. it is relatively codified.
twiddle -- twitter would say we could fight this in a legal battle. that can be long, drawnout, and expensive. twitter does not have the most boastful balance sheet or finances. elon musk has taken off according to the jet tracker on twitter. the ceo of twitter is here in the cfo is here. let's see what happens. >> plenty to come from ed ludlow. we are going to be going back to sun valley in a moment. let's get you up to speed with a verdict in the former president of sarin us and the ex-boyfriend of elizabeth holmes. he was found guilty. the decision comes six months after homes was convicted.
about inflation, recession, private, public markets, startups, venture capitalists. i am delighted to be joined by general partner and cofounder of a stock capital. given that, explain where we are in the world now. >> an entrepreneur and an investor, i am not a macro person. i am old enough to have been through a few cycles of ups and downs. i think we are just in the beginning act of this process. i think with the fed stimulus and action in march of 2020, we delayed and pushed out and now amplified what is happening now. that is a dire outlook on the economy over the coming years. >> let's pivot to your other
role, chairman of eventbrite. sun valley captures that. we have come out of a pandemic. we are concerned about a recession. people for the first time in a long time are getting back together. how do you see the world? >> juliet the ceo did a brilliant job of navigating us through the downturn. we had sold almost 5 billion in tickets in 2019. in march 2020, we had negative ticket volume. there were more refunds. julia moved insanely quickly to shore up the business and raise funding in the public markets. we feel like we have been through what has happened over the last six months back in march of 2020. we are seeing the return of the lived experience. people are hungry to get out.
we have got this inflationary cycle. they are not spending what they used to for the large concerts that they maybe traveled to. they are going local. that is what eventbrite primarily covers, local events. they tend to be at the lower price point. we are seeing a surge based on that. airbnb has pointed out a similar phenomenon. people are going local. that was during covid. that habit has stayed in these inflationary times. staying local is what it is about. we think our business is well-positioned for it. >> it is interesting you bring up airbnb, brian sheskey. we have seen financial crises before, 2000, 2008, and startups came out of that and went on to become giant companies.
are there opportunities for the next google, airbnb? >> i don't want to sound morose. i get a little giddy during these downturns. it separates out the tourists, those that could go before investors and raise $5 billion off a plan. this is when great businesses are formed. people thinking against the grain are starting companies and will endure in a capital efficient manner. we will see great businesses. putting on my capital had, i am excited. i am seeing a pickup in investments. we are excited to find that next airbnb. i had the good fortune of being a seat investor in airbnb in 2009. they were scrappy and hungry. it was a recession.
they had what it took. >> talking about survival, i hear a lot of competing things. some say keep your powder dry. do not deploy capital because there is volatility in public markets. others say i'm going to go out. i see opportunity. are there any industries or thematic direction you are seeing? >> that is an important question. i have been traditionally founder focused. brian, needs, and joe at airbnb are an extraordinary team. ben silverman at pinterest who just stepped down as ceo but has built a great business. seed stages, you invest in great people. they create these new industries. we are excited about this stage of ai. we are many chapters into the ai
revolution. there is much more to be done. cleantech has risen so quickly and is exciting to see something that can drive a real business and real results and help us understand and slow this environmental issue we are facing today. there is a myriad of spaces. if you look back at elon musk, whoever thought space would be a segment? >> you had to go to elon musk. >> who cannot? >> we have to leave it there. kevin hearts, eventbrite chairman and cofounder. >> it was a great interview. thank you so much. before we return to ed with his interview on the major league soccer commissioner, another key
focus on the long-term partnership with img arena, we are going to be talking about elon musk. let's talk about the musk deal. twitter in serious jeopardy. twitter is finding that it intends to close the deal with the agreed terms. they will continue to share information with elon musk around box. twitter confirming -- previously reported by reuters. plenty more on that deal. this is bloomberg. ♪
hand over user data are to -- data for abortion. gina bass wrote all about this for bloomberg. we want to dig in. what are some of the issues you are expecting to pop up? >> we have to remember what is different now. everybody keeps everything online. there is this digital trail of breadcrumbs investigators could use if they wanted to get to someone who had an abortion or someone who helped them, which is increasingly becoming illegal. the problem is all these tech companies have little bits of data, volumes. the data is in different places. it is going to be governed by a patchwork of laws. imagine you have a patient in texas, may be trying to secure
abortion drugs from new york. maybe they get a receipt to a microsoft email account, maybe they searched for those drugs in google. those companies are in different states. the question becomes if a court wants to get hold of that data, whose laws take precedent? >> have to reiterate once again, this is an incredibly politically divided and charged conversation. about one third of those who answer pew surveys agree we should have antiabortion laws. we understand the division. does it stop tech companies from responding and how they would have previously? >> we do not know what they are going to do. that is part of what they are waiting for. the major tech companies have not been willing to comment to me or other reporters about whether they will fight these data requests.
we have some history of what they have done with other types of data requests. each of these major companies publishes a report on public data requests, how many they have complied with. we know companies like facebook, apple, microsoft, they comply with the majority of the requests they get. they fight some. we have had high-profile cases of apple and microsoft fighting data requests. we don't know whether they will do that in these cases with women who had abortions. >> what data is protected? under hepa, period tracker apps, is that protected? >> it does not qualify as far as i know. a lot of things people consider health data, people say i go to my doctor and sign that form, a
lot of your health data is not under hippa. lawyers say it may probably cover a cloud provider if they are providing services storing data for that health plan. a period tracker, your apple watch, your fitbit, that is not covered. a court order signed by a judge can allow a hiipa entity anyway. we don't have precedent. lawyers i talked to think we are in for a number of years of lawsuits to figure out how this is going to go. >> great story. let's get to someone thinking about these issues, the founding partner at springbank collective building the infrastructure to enable working women to thrive
across their years. you were under the sec and secretary clinton's state department. you have had a lot of interaction with administration. this is difficult. >> yes. >> and from a difficulty perspective? >> thanks for having me. it is difficult in a bunch of ways. with the fall of roe v. wade, we have already had digital health care companies stepping into fill in some of the gaps created by policies. we have seen companies with a demand for emergency contraception within a couple of days of the overturning of roe v. wade. we have seen hoarding behavior with some of the emergency contraception. we are seeing a telehealth medication abortion provider with a huge spike in interest. we are seeing women's health
players who are not in court reproductive health, a women's health unicorn that is a digital health web added a wallet app to help users calculate the cost for reproductive procedures. employers are facing a tremendous amount of uncertainty. given the u.s. fragmented health care system, employers have always played a major role in health care. that is only going to grow. 50% of americans get health insurance through their employer. what company you work for has always mattered. where your job is located is going to have an outsized role in the kind and quality of care you can receive as a woman. for a lot of companies, they are in the early days of figuring out the implications of implementing policies to support these workers across health care. >> there has been a lot of
concern, worry, and lack of clarity. it feels like there is innovation as well as this moment. >> absolutely. women's health care companies are going to continue to innovate. they have to innovate in this moment. over the last couple years, we have seen increasing interest in digital health companies serving the needs of women. those companies rates $4.4 billion in 2021, two times the year prior. to follow on what the reporter who preceded me was discussing in terms of these data issues, i still believe there is a tremendous amount of room for innovation. i think uncertainty creates a challenge for innovation. we have deep uncertainty around how these policies are going to play out at the state level. this is something i have seen in the government and as an investor, and norma's uncertainty can stifle innovation for new players who
are trying to solve women's health problems and creates lots of cost and burden for consumers. google and apple when it comes to challenging some of these data requests have the money and lawyers to do so. one imagines if you are a smaller startup that that legal liability could put you out of business. >> you yourself acting certain unicorns, you have been trying to look across the u.s., but are we going to see pockets of health care innovation just become in new york, california, rather than austin? >> absolutely. i think the dobbs ruling and subsequent rulings at the state level which are beginning to play out might make employment and investment in certain states more or less appealing.
we are always excited about innovations in fertility care to make it more accessible for anyone to build the kind of family they would like to build. if you are an innovator building a venture backed company in fertility care, it just makes sense to build your company in california or new york, which will presumably continue to support these businesses and not create uncertainty. that is one example. we are going to see that play out. >> are you still bullish on the space? >> i am permanently bullish about improving the lives of women. i will always be bullish about the opportunities in women's health. when we talk women's health, that does not just equal reproductive health. it never has. there is also its of health conditions that are multibillion-dollar markets where it impacts women differently than men. alzheimer's, heart disease, type two diabetes. it was not until 1986 that women were allowed to participate in
clinical research at trial. research is a core component, but it is so much bigger than that. we are going to keep investing. >> coming from one of the coolest looking barns in new york. taking time out of vacation to spend some time with us. fascinating. >> thank you for having me. >> coming up, as betting becomes the future of sports, we speak to the commissioner of major league soccer to discuss their new partnership with img arena. that is live from sun valley. this is bloomberg. ♪
underway in idaho. elon musk is expected there this weekend. ed ludlow is among the special guests. you and i, we call it football. clark's i get to talk about my two favorite things. technology in football. we will call soccer. the mls commissioner, you struck a deal with apple. a 10 year deal, streaming direct to consumers. why apple? >> they're the perfect company for us. innovative, aggressive, ambitious, thinking hard about the sports streaming place. any game, anywhere in the world on any device is perfect for our young and digitally native fan base. most of our fans are streaming football or soccer anyway. clark's why not amazon or linear
tv package? >> we will still have linear deals. it's the combination of linear than games in front of the apple pay wall. then the first global direct consumer subscription. that is really going to break new ground. whether it's someone watching a game here in sun valley or they are watching it in spain or south america, they are the perfect partner to be thinking about how do we become a global league and the most global sports? >> apple apparently paid -- reportedly paid $250 million. what are they adding out of this? is there a belief that apple will grow its own subscription audience because there is a demand?
>> it's a multimillion dollar teal -- deal over time. they can now think about the live sports experience for their consumers. what it meant to them is a good question for apple. for us, we'll never were thinking about aggregating all of our content, local games, youth matches, the second division called mls next pro, any game we have an market or out of market you now have an experience for a fan that is unprecedented and for us, that's really exciting. >> does it bring you a global audience? >> without a doubt. we just signed gareth bale, he is playing in los angeles. maybe there is a small argentinian guy who might come to the league. you could have as many subscribers and fans in one is harry's or solana -- barcelona
or madrid or wales. we are a global league needing a global platform. this will give us that opportunity to expand the breadth and scope of our business. >> football or soccer is growing enormously in north america. you have gone from a situation where you are almost at 29 teams. three stadiums to now 26. where do you invest next? how do you grow to the next step? >> that's good question. $10 billion to $15 billion over the last few years. that is in unique almost cathedrals for the sport. we opened up a brand-new one in nashville, tennessee. 30,000 fans, it is sold out every game. now, content. how do you invest in delivering the right experience with local teams and in many ways being
content livery producers for our new service? how do you think about the next development of our player pool so when we have the ability to develop young players, to sell them overseas, bringing in young players in their prime that are playing overseas being a global player in both the purchasing and selling of players, there's going to be an enormous amount of investment in the years to come. >> the men's soccer team going to the world cup, does that boost the mls? >> yes. the league grows with the national team playing in the world cup, we see boost in energy. our league was born out of the 1994 world cup. imagine the rocket fuel we will have moving up to the 2026 world cup. 40 or 50 of our players will play for national teams that
will be in the world cup. we have players from 70 different countries playing in major league soccer. more than any other leak in the world. >> there is a chat called todd bully who bought chelsea. he says the premier league is undervalued. our clubs in the mls undervalued? >> i think the value in sports is driven by ultimately what the opportunity is, what people are willing to pay and how have owners, the leak has been able to exploit their intellectual property. i do believe the leak is undervalued. the future of our league and the sport of america is so bright and there are some of the opportunities with the overall diversity of our consumer base, the fact we will have more teams and more stadiums, our best
years particularly the new partnership with apple, you mentioned the new img arena, there are some any great intellectual property opportunities that we haven't yet fully exploited. the best days are still ahead. >> all eyes are on american football or soccer. a pleasure to have you here talking football and tech. will you sing for us? >> transported us there. we love you so much. an apple watch with a bigger display, larger battery, and a rugged metal casing may be in the works. apple is said to be building a new version of apple watch for extreme sports athletes. how big is this market?
>> i want to take a step back and figure out why would apple do something like this? if they're going to create a new high-end apple watch, they probably wanted to not only appeal to that specific market, but to everyone. they have the iphone pro, the ipad pro, airpods and macbook pro. that lets them charge more money. what we're going to see with this new extreme sports addition is more revenue. asp's. the average sales price of the apple watch go up for this product. that's why they are doing this. that market is not so big, but if you look more as an apple watch pro or -- more of that than extreme sports addition, you're going to appeal to the affluent customer who is willing to pay more. >> talk to us about what features, what areas it's going to try to exploit.
>> you will see a bigger battery. the longest battery life ever on an apple watch. a bigger display. the biggest display ever on an apple watch. probably a titanium case. something far more durable. three times to four times more durable than the normal stainless steel apple watch and five times to seven times durable than the aluminum apple watch. a shatterproof screen. a new body temperature sensor so you can take your temperature on the watch. it won't give you an exact number, it may be able to indicate if you have a fever or another condition that you might want to look into. >> very useful in this post-covid world. what about other types of watches? is this the only one we will get before the fall?
>> this is the only time that apple will have three distinct watches at once. you will have the one i am calling apple watch pro, and apple watch series eight that will get an improved display but not a bigger screen. then it will get an updated processor. then you will get a new apple watch as he. that's $300. it will be an update to that model to likely replace the low end series three which they are still selling for $200. that one will get the same processor as the other two. it will be a speed upgrade over the current chip in the current low end apple watch. >> coming up, as investors remain cautious on digital assets as crypto winter seems to
firm. how is your area, how are your startups airing at the moment? >> bitcoin founders tend to be financially responsible. the folks who have prepared long in advance for the bitcoin bear market. what they're doing now is finding ways to take advantage of it. there are two things that are important. one is to build the established roadmap. a bear market is a time when you get more resources to dedicate to building because you aren't dedicated just to keep your head above water. the second thing we can do in a bear market is to take time to dive into the engagement and adoption metrics from the bull market or from any part of the market cycle and start to understand what users are saying about the product and protocols. that will be the experience of this market for top founders in the space. >> what of that data early
though it might be. what is that telling you about if and when we exit crypto winter, what people want? what real use cases will be built? >> people want the space to continue to mature. some of the collapses we are seeing and companies that were making promises they couldn't keep around yield product or otherwise is starting to drive home the point to folks holding digital assets that there needs to be more accountability. it's possible in bitcoin and bitcoin was to allow for transparency in the ecosystem because the bitcoin blockchain is a public ledger. as an example of something that customers are starting to demand or should, you can ask for folks holding her bitcoin to be able to prove those reserves. we know some of the platforms that had promised the lending based yield returns. we know that some of those
platforms are now telling their customers that they don't have the funds that they said they had. with bitcoin and other digital assets, you can demand exchanges or other platforms holding her assets to prove that they do so. proof of reserve software is available and customers are beginning to demand it. the first company to launch to introduce a best product here is out of fidelity and fortunately for us, the still more portfolio company. we are seeing another trend which is folks look at the option to be their own bank. that was one of bitcoins core promises that you wouldn't have to rely on third parties to store your funds, you could do yourself. that is also very difficult, but now we see in the market the acute pain and realization of what is at risk if you aren't holding your own funds. we are seeing consumers
recognize the value of that and send funds to companies. there are several options you can use. >> what about the lending protocols? what about yield farming? what ends up being what flourishes out of that? >> the concept of using yield from black box or making promises that can't be back up with productivity that drives the yield, i hope that is dead. what we saw in the last bull market was the concept of yield generated with a complete lack of economic activity and we saw leaders in the space explain it as putting money into a black box and taking out more money. of course, this is fantastic proposition that we are now
seeing as something that can't be secured over the long-term. yield in that way sort of like the hopes and dreams yield i hope is dead. we will see products mature that can offer real yield based off of economic activity and an example of that would be the ability to create yield on lightning networks by lending out your position to others that needed. -- that need it. more generally, are you worried, i know you have seen bear markets before credit with the lack of activity we are seeing in the space, does that worry you in any way or are you still feeling this is a matter of time? >> in terms of entrepreneurial activity, we are seeing a flourish meant. we have these really lovely
tailwinds in the bitcoin space provided by lightning network now that is growing in adoption as well as something on lightning networks roadmap which is the addition of other digital assets to the lightning network. that's the tailwind for entrepreneurs in general including folks that haven't even gotten started yet. i think of it as a similar opportunity as cloud and mobile introduced in 2008 which we know carries company's whatsapp or uber to great success through 2008 and beyond. that opportunity exist today for innovators. >> it's always great to catch up with you. coming up, the best and brightest in tech and media still continue to do is hit -- dissent upon sun valley. we will be speaking to one of them the sophia ceo.
caroline: back to sun valley. sonali basak spoke to the ceo of sofi. >> it's a year that is atypical from the standpoint that equity values have come down. inflation is on the rise. you also have an uncertain marketplace. it's much more a year about partnerships and new partnerships that get extended as well as finding new partners. there has never been a time like this in the last 30 years. we have had so many conflating factors. >> what is the investor tone?
you yourself had 60% decline in sofi, but so have many of the players. you were doing acquisitions yourself. how do you nag -- navigate that turmoil given that you have recently decided to go public? >> we are sticking to our strategy. we have found ray success over the last three years despite the fact that the student loan business has been negatively impacted. we have been able to grow 50% last year and we will grow 50% again this year. we will increase our profitability from 30 million 200 million. right now, it's hard for investors to see out be on the next six to 12 months. we are making sure they understand what we are
prioritizing and that we were -- that we are delivering. >> what about another area of the market? you have a lot of young customers looking at new ways of both our wing, saving, spending, investing. you recently announced new crypto products yourself. we see other brokerages pausing withdrawals. how do you think about consumer protection in the space and things to watch out for? >> the first thing i would say is that our strategy is to be a one-stop shop for consumer financial services. in investing, we also want to be a one-stop shop. we offer fractional shares, shares without commissions, our own etf's. the ability to buy 30 currencies. -- 30 currencies.
we launched it and put a warning saying it's an unproven asset, it's highly risky and you could lose all the money. while there is an appetite to want to invest, we have an obligation to inform people about the risks and we do that every time they buy or sell. >> what about plain old stocks? do you think the meme stock frenzy is over and even just the general interest from the marginal buyer the young person looking to invest in the first time? >> our investors are long-term. they do recurring investments. we offer our six etf's so they can buy what they like and a diverse my way. over 74% of our members say they will continue to invest more. 35% because the market is being so attractive now.
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