Apple Fall Season and Meta's Election Mistakes

round of midterm election. We'll talk about whether it's enough to fight the latest trends in miss and disinformation. And arm just posted record revenue and ship mints, but it's chip industry peers are seeing a slowdown ahead. I'll ask CEO Days if he airs that sentiment. Meantime, a number of high profile venture capitalists and entrepreneurs are meeting in Los Angeles for l A Tech Week. It includes names

like Mark andreson Ari Emmanuel. For a better sense of the sentiment there, I want to bring in Zillo co founder and seventy five and Sunny general partner Spencer Raskoff, who's also a speaker at l A Tech Week this week. Spencer. If we were to take the temperature of the markets, it is anything but seventy and Sonny, what's the temperature in l A? The market temper hot? Yeah, it's hot.

We're gonna We're not gonna let a week, a couple of days, or a couple of months in the stock market damper the enthusiasm for tech here in Los Angeles.

It's a really exciting time. This conference this week. You know, it was kind of an unconference because we just sort of announced it to the community just a couple of months ago, and now we have over three events and sixteen thousand people, many of whom have come from other areas including the Bay Area, exploring l A Tech filled with enthusiasm and excitement, and it's it's a boom time here.

You know, tech hubs have been changing. Obviously we've been talking about the movement away from Silicon Valley, but now with more distributed work, more remote work. What is the power of the l A tech hub? In particular? L A is the intersection of media, entertainment, pop culture, commerce. It's where tastemakers live. So you know, the ten thousand, twenty people that decide what's cool for the rest of the country, the rest of the world, they live in

l A. This is where culture happens. And now you have this convergence of media through streaming and studios which really are tech companies increasingly so the the you know, media, entertainment and pop culture is very strong in tech community here. But it should be remembered that l A also has a fifty year manufacturing history and aerospace in heavy equipment manufacturing and technology. Incredible universities and it is it has now cemented itself as the number two at tech hub

behind the Bay Area. Our goal, my goal, the l A Tech communities goal, Emily, is to get you someday to move your show from the Bay Area to here in l A and have the intro of your show talk about how l A is the tech center of the country and hopefully the world. It's a wonderful idea Spencer, and I can't say we haven't thought about it. So you will be my first phone call when that happens. But you know, look, it's it's it's dreary. There's a

lot of red on the screen. Um when you look at the markets almost every day, how is this impacting your strategy? Yeah? So um, Look, we're in the midst of a venture winter, there's no doubt. So venture firms have pulled back. Late stage growth investors, the hedge funds, the crossover investors that we're leading, all of these high price series D, series E, series F rounds. They've moved

out of privates. They're either hiding under their desk or they're focused on the public markets right now, So that chill has moved upstream to the earlier stage companies, and companies are adjusting. Companies are doing inside rounds, they're doing flat rounds, they're cutting back on marketing expense, they're cutting head count, and they're adjusting for this new winter. And you know, I'm old enough now to have been through several cycles two thousand eight, two thousand one. Great companies

can get created during these down cycles. They just have to make sure that they survive. And customer behavior changes, corporation behavior changes during this period of change and during recessions. So a lot of great companies, a lot of great things come out of them. But you're absolutely seeing companies

adjust and venture capital investors adjust. No. I know, Andrews and Harwitz has a big presence down there, and they are the target of a lot of chatter in Silicon Valley right now, Mark Andrees in writing the firm's biggest check ever to Adam Newman, the founder of we Work. UM, some people pretty unhappy about this, and we spoke to a young founder, Alison Buyers, yesterday, and I want you to take a listen to what she had to say.

You have to feel that rage when you are part of that community that is just historically blocked from accessing this funding. What is a major prestigious investment house doing backing fraud a second time. There is no excuse for that, and there has to be the ability to separate what is a good business idea that has the potential to be a good investment from the person who is behind that idea and executing on it. Spencer, I'm just going

to leave it open ended. What's your take. Well, there's a lot of commentary and discussion this week at l A Tech Week about about this exact topic. UM, you know, my take is I was very surprised by the size of the check. I mean, three or fifty million dollars for for a seed round. That's that's ginormous by any standards. UM, I don't know Adam Newman. I suspect that the team and juries and Horowitz had a hard in the eye with him and said, have you been humbled? Are you

now coachable? Did you learn from the mistakes that you made? And they looked past those mistakes and said, here is somebody who has revolutionized a huge category commercial real estate, and who has created a very large, successful, publicly traded company, which was a roller coaster. It went up, it went down, but you know what, it's still a five to ten billion dollar public company today. And I suspect that he convinced Andrews and Horowitz that he learned from his excesses

and from his mistakes. Now, the commentary from from that that founder is absolutely right. It speaks to the fact that there is still a lack of diversity, equity inclusion. I mean, Emily, you literally wrote the book on this, right, um and and this is still a serious issue in tech and um uh. And so she's right to to

express outrage from her perspective about it. But I think that's when Andrews and Harwitz is thinking when they decided to back Adam Newman again, which is that he'll he'll have learned from his mistakes and uh, you know, and and be a different type of founder and a different type of leader this second time. You know, it does speak to a pattern as you say, that we have seen in Silicon Valley time and again. I'm just so, I'm curious what you think of his idea as someone

who also founded a company in real estate. Is his idea flow, this idea to revolutionize residential real estate apartments? Does it? Think it's a pretty visionary. Yeah, I think it's interesting. I mean for for viewers that that don't know. He's trying to create a branded multifamily products. So I think, like what W Hotels is to hospitality, this company flow could be two apartments. And it is a good insight

that most apartment buildings are unbranded. They're just named the address and it is kind of a you know, an uninteresting experience. You just take the elevator up to your little box and that's that. So he's trying to create, you know, we work for apartment living. I think that's a good idea. What I don't know is if the margins of managing multipamily apartment building can support the um, the the you know, the accouterments that he needs to

build to create that community. I was talking to an investor last night who is much more experienced in in multifamily real estate investing than I am, and this person was very barish on the idea, said it will never work. There's not enough margin in managing multifamily apartment buildings to you know, to create what he's trying to build, both the brand and also also other advantages to the tenants and so so this investor was was very negative on it.

I haven't you know, I'm not close enough to to know to have a personal opinion about it, but as a user, as as a you know, as a as a tenant, as a as a homeowner, I would agree that there is there does seem to be there there. I think it is solving a problem that that renters have. Well, you and I could go on and on about this for hours, but well we can do that offline. Spencer, Um, I do I do want to get your take on

on the market dynamics, the housing market dynamics. Do you think that the downturn that we're going through will delay innovation in the housing industry? You know, you know, the hope, which is what you were trying to do with Zulo Zelo is make transactions easier for homebuyers, and will all of this tunnel put that off um potentially, because what's happening is the down turner and housing is scaring venture

capital investors from putting money to work in the category. So, you know, seventy and Sunny, My venture firm has about a hundred investments, about a quarter of which are in prop tech, and so I'm a very active proc prop tech investor, and I can tell you that vcs have are really put off and scared because the public comps have come down so much. I mean, Zilo is at a seven eight nine year low and and all the other public comps have come down so much. And that

ways on investormental, investor mindset and and sentiments. So so yes, it could dampen innovation because there will be fewer startups in prop tech getting funded. Now, the good news is if you are a prop tech like Picasso one of my other companies, that is funded, that has raised a lot of venture capital, that already has a product in the market, this is a great time to gobble up market share because competitors probably won't be able to get funded.

So you know, again, like I've seen in other cycles in two thousand eight, for example, where Zillo actually benefited from the two thousand eight recession because they were already funded and on the racetrack and others couldn't get funding. Great companies can be built during this down cycle. Alright, Spencer ras Coff, I'm gonna let you get back to your very hot seventy five and sunny weather over there. Um,

thank you as always for stopping by. Apple is kicking off a busy fall products season September seven, with new iPhones, new Max low and high end iPads, and three models of the Apple Watch. The event will only be streamed online. Let's get more on this with Bloombergs Marker when who covers all things Apple for us? So what do we know? So? I know that the event is currently being planned for Wednesday,

September seven, a little rare for Apple. They usually like to hold their events on a Tuesday, but as you know, Labor days on that Monday, so they're you know, blocking off that Tuesday as a travel day. Now what does that mean to me? That means that not only is it going to be streamed online, but they'll have an in person portion probably for press and others for a little bit of hands on. We're probably about two weeks

away from this event being announced. In all likelihood, the center of the event will be the iPhone fourteen line along with the Apple Watch Series eight line. So looking forward to both of those products and seeing what's in store. When will these products be available? So you'll see Apple do an initial launch wave on September sixte that's a Friday, nine days after the announcement, and that is probably going

to be for the iPhone four teen line. You'll see four models, right, You'll see entry level versions of the fourteen as well as iPhone fourteen Pro models. Now, the big thing this year is that the mini is going away, so there won't be an iPhone fourteen Mini. Instead, there'll be an iPhone fourteen Max, which that means there's going to be a six point seven inch version of the nonprofone for the first time, to be a little bit pricier than normal for the nonprofones, but I think it

will be especially popular because of that enhanced screen size. Now, obviously we've been talking a lot about inflation, consumers under pressure, you know, difficult market dynamics. Is now the right time for Apple to be updating its flagship product. Yeah, absolutely right. Apple updates its iPhone every September October fall. They've done that since shifting their release schedule back in two thousand and eleven. There's no way Apple is not going to

update their devices. The people who were able to buy them are going to buy them as usual. You'll see a lot of new trade in deals. I think I've mentioned this on the show last last year. So I had the iPhone twelve from I was actually able to get the iPhone thirteen not only for free, but I think I got about seventy five dollars you know, cash in my pocket extra for trading in. Right. So if they have aggressive trade in deals like they did last year,

I think they're gonna shake out pretty pretty fine. You also had a story out today on Netflix some more details about their AD supported plan. What will be included, what won't be included, what do we know? Yeah, so investors and consumers of Netflix have been pretty interested in this AD supported UH tier for those unfamiliar. Right now, Netflix can cost upwards of twenty a month for their

top tier four K plan with multiple screens. Right, they want a cheaper option and the way to go cheaper is to add ads, right, and so it's gonna cost less and they're gonna offset that with advertisements. And what we learned today based on code findings inside of the Netflix iPhone app is not only are they underway on revamping their app to support this ad supported tier, but we know that they're not going to support downloads for

offline viewing. Super popular feature. I've used it before. If you're hopping on a plane, you want to download some Netflix movies and shows to watch on your cross country flight, you want that feature. This won't have it. Okay, good to know. Thanks Mark for your great reporting, as all the timbers, Mark German. While with midterm elections approaching, Meta

is rolling out its plans to tackle misinformation. After years of revising and updating its election strategy, the social media giant is sticking with some familiar tactics, the same tactics we saw in the general election, which was marred by conspiracies and culminated in the January six insurrection at the US Capital. Bloomberg's Alex Brinka cover social media for US, So Alex talk to us about what Meta is planning to do here and what if anything is different from Yeah.

So they're very much focused, like you said, on on misinformation. So they will remove posts and ads that have to do with things like wrong logistics on voting, things that

incite violence based on the outcome of an election. UM. And also UM, you know, making sure that in the week p fire to UM the close of the polls, they will not actually add any new political advertisements or allow any changes political advertisement means the reason, UM, that will give a sufficient time for folks to kind of process and potentially fact check if there's any misinformation on the platform. So for them, bottom line is misinformation logistics

is the focus. The question is is it gonna work? Are they Are they any more prepared than they were in tactics that will surely have evolved. So we have the opportunity to chat to their top policy boss, Nick Clegg, and he says, Look, we've spent the last you know, six years kind of evolving the taxes we have. We feel good about what we had in We've made some iterations, UM, but you know, he insists that the company will not

be complacent. He also said that they're sure they'll see some new things that they need to combat this year. So will it work well if the goal is to remove misinformation from the platform and kind of stay ahead of things, I expect it will still kind of be this game of lackable where you see bad actors um

putting out information it needs to be taken down. They might change the language it needs to be taken down, which would be you know, as the tune is for this year, um, pretty consistent with what we saw in And how does what Facebook is planning to do meta, I should say compared to for example, TikTok, So Meta is kind of unique compared to TikTok and say Twitter

and that they do actually allow political advertisements. TikTok and Twitter both don't allow political ads on the platform, so Meta also has this unique stance that they won't fact check ads. That's been a bit of a controversial stance um for them. So uh, that is kind of the main difference there when you look at something like TikTok. TikTok will also vet organic posts um since they don't allow those ads and basically suppress things that are unverified

from the platform. So fact checkers will allow good information that they information they deemed good to go through on TikTok to the for you page. Bad information will be taken down, anything that's not verified will be suppressed from that all important for you feed, that main kind of feed where people discover things. So, um, you know that is probably the biggest difference here is that level of suppression.

Let's say that TikTok has to make sure that information that's not fully verified or they can't say one way or another doesn't necessarily garner as big of an audience as as a piece of content normally could. Well, and it's hard enough in English, how are they thinking about handling these issues in other languages? Say Russian? Yeah, so um men I didn't talk a lot about Russian language. Um this go around. What they did talk about was

adding additional Spanish language fact checkers. They have about ten fact checkers they're working with. Half of those are Spanish because what they saw in the general election was a lot of news and commentary was in Spanish and so they felt they needed to add it add some external partners who kind of focus on that language as well. So no mention of Russian, Emily um for the for the U S audience, but they are at least adding that additional language there for this election, Okay, Alex Sparenka

as always appreciate your stopping by, thank you. Due to the macroeconomic uncertainties as well as due to high levels of inventories that customers have built across various end market segments. For US, those in mentories are being adjusted down and that is what is resulting in the dues demand for US. That was Micron Ceo San jam Rocha earlier this month. The slowdown in semiconductor demand was tough to find, though.

In Arms latest earnings report, the chipmaker reported record first quarter revenue and shipment, says its diversification into cars and infrastructure starts to pay off. Here to discuss Arms, Ceo Renee has So we've been hearing from a lot of chipmakers that demand is going to slow down. Their numbers haven't been good. How how is it that ARM bucked the trend? Well? Q one was good for us. We were very fortunate. We had record revenue for US in

Q one. We had record royalties for US over four hundred million dollars and royalties We had never done anything close to that before. So it's quite good, uh. I think for US, Emily largely It's been the result of the diversification of our business. As you mentioned, ARM was largely known for smartphones a number of years ago, but now you know, we're in the cloud, we're in networking equipment, we're in industrial, we're in IoT, automotive. All those markets

have been strong. So the result is a really good quarter for us. Are you seeing any signs of a slowdown? We're seeing some, but largely speaking, areas like automotive, is like the cloud, areas like networking still really really strong. We've seen some slow down and smartphones some in PCs, We personally have not been impacted by it that much because we're seeing more and more ARM compute in each of these devices. So as a result, our results have

been really really strong. So what is this show investors about the company? As you know you're getting ready to go public. Not much I can say about that process, but the results I think speak for itself in terms of how well we're doing. So there's been a number of announcements about ARM getting into the data center. AWS is obviously leading the way. What kind of progress are you making there and what kind of market share do

you think ARM could potentially get to. We're growing. I wouldn't want to speculate the how large your market share can get. But you know, some of the fundamentals that we bring are really important, and that's really around efficiency. You know, when you build a new data center, you only have so much power you can put the data center and you have only so much square footage. So compute performance matters, but compute efficiency really matters. It's an

air that's really ARMS DNA. It's an area that we're really really good at and we're seeing that really in terms of benefits of what a WS is doing and other partners. You know, we had announcements from Microsoft, Google, all the major hyper scalers now have made announcements on ARM. You've also been working a hard hard to grow PC market share. Obviously Apple has helped there. What about Windows? When are we going to see a big Windows breakthrough?

I think you're seeing more and more of it. The laptops to day they are based on ARM are terrific in terms of battery life, they're terrific in terms of performance. Uh, they don't need fans. I think you'll see the Windows ecosystem moving to ARM in a big way pretty soon. So UM chip stocks the market has not been kind to them this year. You know, what's your sort of outlook, you know what will in your view, differentiate ARM from the pack. Yeah, I can predict what the stock market's

gonna do. Obviously, if I was, i'd probably one of your earlier shows for this are different with a different job. We have two pieces to our business. We have a royalty business, which is an indicator of units that ship, but we also have a licensing business, which is really about design winds. The canary in the coal mine relative to new design starts, that's really strong, uh, and in fact, it's strong as it's ever been. We're seeing a lot of investment in R and D, in automotive, in the cloud,

in IoT and laptops and smartphones. So I think going forward the secular trends are driven a lot of growth. We're we're very very bullish on that, and we're saying again our licensing activity, which is an indicator really of investment in R and D, has never been better. Now. I know you can't talk specifically about the I p O, but what has the volatility meant for your strategy and your plans? I mean, you have to be watching the market dynamics and wondering if now is really the right time.

I mean, many people are saying the window, the I

p O window is closed right now. Yeah. I can't speak about the I p O process, but what I can tell you is that, you know, there's been a lot of semiconductor downturns in history, obvious we all know that what's different about this one is we're not seeing people tap the brakes relative to new investment, and we're not seeing people tap the brakes on our and d for us, the licenses that we do today, they end up in products three or four years down the road.

The royalties that we're seeing today as a result of design wins that we did three or four years ago, we see continued strong demand for our technology and products. Let's talk about China. Continuing tensions in U. S. China relations, more restrictions from the U. S side about doing business in China. We've seen, you know, with the ARM example, just how difficult it is to run a joint venture there.

How are you navigating that? You know, given the unique arms in a very unique geographic um and sort of geopolitical position, how do you navigate that without upsetting Washington? And Beijing. We're in a unique space. So when the US, for example, puts down restrictions around entities or companies that can't be shipped to that require licenses, like any other company, we have to apply for a license, will adhere to

the compliance rules. We're a little different than traditional US companies because ultimately those rules come down to the nature of the u S content, i e. The percentage of u S engineers working on the products. The majority of arms engineers are not in the United States. The majority of them are are in Europe, mostly in the UK, so we are generally not as impacted as other companies around these areas. But of course when we need to comply, we will, and we have to apply for a license,

we'll do what other companies do. What's your view on the supply chain right now and how the COVID restrictions in China will continue to impact supply I think it's a very hard thing to predict, to be honest with you, because the shutdowns are sudden, they don't come with much warning. It doesn't take a whole lot for a section of the country to shut down, and the next thing you know, you can't get a port open. You can't ship product. So I think the supply chain perturbations are with us.

For for a while, the world was very accustomed to the old normal. World was flat, We had no pandemic, there were no skirmishes or conflicts across borders. We live in a different time now, unfortunately, and I think you're seeing that manifest itself in terms of all kinds of shortages. I think it will exist for a while. So what have you changed about the way you do business, the way you run the business to navigate that, to get

a round that, or can you hard for us? We don't build products, as you know, We license I P so we ship blueprints to companies who build chips. But what about your customers? We watch that very closely, right We we want to make sure that we can supply the products they need at the time they need to have them to ship. But ultimately we're kind of behold

into what the supply chain looks like. Again. What we continue to see though, is people doing more and more designs, doing more and more design starts, not slowing them down. We're not seeing anyone say, look, I'll push a product out by six months because I'm sitting on inventory our partners don't think that way. It's really about innovating as fast as possible because the demand cycle is so so strong. Well, there is concerned though that that demand cycle doesn't keep up.

But you know, demand aside is supply are are we still going to continue to see supply issues? And how long do those supply issues last? I think we will see it for a while, until the world gets to a new normal of understanding what the buying patterns are, what the forecasting patterns are. You know, let's take system on chip for example. You may be able to get it enough die from t SMC, but if you can't get the substrate that you're going to put the system

on package, you're going to have a problem. So I I personally think it's with us for a while. So where is ARM Let's say a year from now, hopefully, I mean with you talking about record revenues, record royalties, record design wins. I'm hoping that the momentum continues. I'm confident that it will and will you be public sure? I one more time? Okay, RM CEO d Haska to have you back, thank you time now for our crypto report. And even though the market might not be as bullish

as it was last year. Coin fund is announcing the launch of a three d million dollar early stage Web three venture fund called coin fund Ventures, and it's backed

by institutional investors, family offices, and crypto native founders. I want to bring in David Pacman, managing partner at head Venture Investing at coin fund now for more So, David, we've been talking about how there's a lot of dry powder out there with the market downturn, you know, a lot of investors right now having to sit on the sidelines. Why launched this now? Well, this is not our first

bear market in crypto, it's our third. One. Uh coin Funds a firm that's been investing in crypto for you know, since and we launched our second seed fund in the depths of the team bear market. That funds done really well. So we have three seed funds and now we're launching this venture fund focused on early stage like Series A stage venture projects and companies. Um but in our view, this is probably the largest economic value creation opportunity we've

ever seen in tech. Bigger than Web one, bigger than Web two. You're rearranging the entire value stack of software. We're gonna build software on top of decentralized blockchains. Crypto is gonna eat the global financial system, and n f T s are going to completely rebuild the way we monetize intellectual property. That's a huge opportunity set and so independent and of where we are in market cycles, we think crypto is the best place to be making tech investments.

So what's your unique approach, where, where, and how do you plan to place your bats differently from all of that other dry powder out there. I think first, we have seen a retraction in the amount of crypto investors

out there. There certainly are a group of crypto native investors like us who only invest in crypto and block chains, UH and all the technology around Web three, but many of the traditional venture firms and hedge funds that started digging into crypto have pulled back, leaving ample opportunity for us to make investments. We invest along the entire waterfront of crypto, everything from layer ones and the blockchains themselves

to the infrastructure stack built above them. We invest at the n f T and gaming layer, and investors in Dapper Labs, the creators of the n f T standard and one of the most successful n f T game, crypto collectible companies. We invest in stable coins and payments and UM asset management and wallets and exchanges and really defy and all the different places where crypto is starting

to see evidence of mainstream adoption. I think the differentiating factor between us and other investors is, first of all, we're crypto native, we only focus on crypto, And second, we have super deep technical depth. We audit the smart contracts of our portfolio companies, we help them architect the token omics UM. We're value added and helpful in helping people build companies here on the board of rarable, the

largest n f T marketplace. You also co founded the Apple Music group back and I'm curious what potential you see at the intersection of n f t s and music. There's so much kind of resentment in the music industry about you know, sort of others having the power rather than the artists themselves. Could this somehow resolve that tension

for all of intellectual property. N f t s create a way to sell scarce assets collectibles that can become more interesting or more rare, or develop more attributes over time. That will be true for music. It's been heavily true for pictures and videos where we've sold more than thirty billion dollars of n f t s in the two years since they've been created, making I think n f t S the most successful consumer product released since the

invention of the smartphone. This is an overwhelmingly successful new product category, but for music it's been small. We've not seen significant traction around music n f t s, but we will. You know, going back to before the Internet, music was scarce. You could have only a certain number a limited number of pressings of vinyl or or or rare merch items that people collected. But once music went digital, there's no scarcity anymore. A stream of music is ephemeral

and there's really nothing to collect. N f t s put the collectibility back into intellectual property, and music will not be left in the gold here. I think artists, as you point out, are looking for ways to monetize their fan base and increase engagement, and I think they'll do that through n f t s. But it's early. I think there's only limited evidence of kind of music success anywhere near the scale of what we've seen elsewhere

in n f t S. Right. Still a lot of people who listen to music don't know what crypto is, don't understand and f T s, but I wonder in the future could musicians, could crypto be the new platform or potentially more valuable platform then TikTok or YouTube as a way to build and and amplify a following. The web two business model is to sell attention right to pump videos and feeds and kind of keep people glued and monetize them through the selling their data effectively to

advertisers or trving them with data driven advertising. That's not a great all for content creators, just don't make a lot of money from it. The web three model is to create scarce, limited edition digital collectibles that can be purchased and owned provably by your fans in any medium,

and you can get much higher revenue per user. One of the most exciting things about n f T s are that the average n f T buyer spends between three and nine hundred dollars per year on n f T s. That compares super favorably to people spend like a hundred eighty bucks a year on Netflix or less than sixty dollars a year on Spotify. So if people are willing to spend more for n f T s for digital collectibles, then more of that can go to artists and creators, and I think that's a business model

that most people who are creators will will embrace. So what's your how do you see the music industry, let's say ten years out, what will be different about it and what will you have potentially invested into maybe benefit from it. So I think that first of all, to build digital collectibles or any type of digital into actual property, there's a lot of software that has to be built first.

We call that in Web three. Those software we call protocols, and so we're investing in a lot of the marketplaces and protocols on which n f T s are created and sold and tracked, to think of it as n f T infrastructure. There are examples of n f T products that have come to market that have been very successful that we've also invested in, like NBA Top Shot, which is a basketball collectors game created by Dapper Labs. And so I think our intention is to invest up

and down the n f T stack. But it doesn't mean that we're buying n f T s ourselves. We actually have a portfolio company called Metaversal that does that. But I think one of the big questions for music is will the artists release their own creative works digitally through n f T s themselves or will they continue to give their rights or sell their rights to record labels and have those labels do it for them. If they choose the latter half, they will really maintain the

status quo of the USIC industry value chain. But if they pulled back their works and they monetize it themselves by selling them through very low cost marketplaces to their fans, they can have more control over their careers and also all creators can have more money. Absolutely fascinating. Thank you

for laying out a different view of the future. David Patman, uh Coin Fund managing partner, appreciate it ten cents As a report that the company intends to sell all or much of its twenty four billion dollar steak in the food delivery company Maytowan is incorrect, Bloomberg crystal Z joins us now to explain, and Crystal, as I understand it,

didn't actually deny the report. Helps make sense of this. So, I mean, there are many reasons company deny a story, and this tree strategy all of a ser came out and said that the story way that Royte has put out yesterday's inaccurate. UM. But if you think about the kind of strategy that Tanson has been working on since last year, they they already disclosed their plans to difester Stag in j D and overall in China, you're seeing

that anti trust is becoming a bigger issue. So the Chinese government had flat out say that they don't want any one company, one technology company to have too much influence in society. So it actually would thematically make a lot of sense for UM ten sent to difessor Stag in Matuan. But we saw Matuan uh stock absolutely just tanked after the report came out, and you know now that they're inaccurate. UM statement or denial had gone out, it's actually come back up. So it's not to speculate

what's going on. We're following the story out of Asia, out of the US, but there could be most of the story behind if there is some truth here, if something like this happened, what would be the significance of that. Yeah, so Chinese companies as of two years ago have not really had any antitrust concern. Basically, if your Chinese tech company your strategy has been just to build, just to grow, and a lot of ten cents investment has pen across

all sectors in someone's life. You have your delivery, you have grocery, you have all of these um in some messaging apps. So in terms of information, in terms of reach, Tenson has been really really strong and tapping into all these sectors. Um. But now you're seeing that it's taking a more Western approach. The government is saying that no one company can be that big, and um, it could really kick off as furry of deals and ten Cent Ali Baba, those could be the first targets. Um. So

it's Ali Baba we have already seen. You know, they're run into kind of scrutiny with the government, and it wouldn't be surprising if ten Cent goes into the same direction. How does the Chinese governments, you know, recent crackdown on tech, I mean it's been happening over the last several years play into this. So it's we are seeing this play out. And actually, anyways, if you remember the d D I

p O is probably a really good example. UM. The government told them, you know, for enlisting, it's not the best option for you. It really manifests in many forms. It could be telling big tech company to die fester stake in other companies, all just retaining these control in China onshore instead of letting them raise capital elsewhere. So we're seeing we have been seeing a lot less foreignlisting.

There hasn't been really any Chinese listing in the US after d D, and we've seen how a lot of UM Actually multiple Chinese company that have US list of vehicle have announced de listing plants. So in many ways, UM, the Chinese counter of capital markets has become more closed off, and as a country they are really protecting their technology a lot more we've been obviously there's been a lot

of our atility in US markets. Is that are we seeing the same thing in in China markets when it comes to Chinese I, P O S Chinese listings is the window post. Yeah, if you look at Tencent and may Juan, those two stocks actually are down between twenty five to thirty five percent here to date. It sounds bad, but if you compare that to NaSTA, G S and P or those tech companies UM in the same category in the US, those are probably down double of triple that.

So the US capital markets is actually um more closed off than right now at least more inactive. Is more inactive than the Hong Kong or the Shanghai capital markets, but that could change anytime. We've seen follow on mark in the US come back. Um, so if more of these follow on block trains come back in the US, we could see I P are coming back as well. All right, Crystal Z, thanks for that update, appreciate it. And that does it for this edition of Bloomberg Technology.

Coming up Thursday, we're gonna hear from the co founder of Ulu Ventures, Miriam Rivera, talking about her investment strategy and how it's changing in a recession. And don't forget to check out our podcast wherever you get your podcast. I'm Emily check in San Francisco. This is Bloomberg h