Netflix, Microsoft Team Up

What's his read on the economy and his view on the supply chain? Will ask all that and more coming up, and the first ads on Netflix will be brought to you by Microsoft. We're gonna tell you about the new deal between the two tech powerhouses entering the at business. So what does another round of high inflation data mean for tech specifically? What with earning season about to get underway. I want to bring in Liz Young of so Far to discuss. So, Liz, what are you expecting this earning season?

Is every day going to be like Judgment Day for the next six weeks? I think it might be. And this isn't just tech specific. These comments but I think earning season, what needs to happen is that we see revisions downward. Usually things happen in a sequence, and as we've already seen, the market has broken. The market has sent us a signal that there's rough waters ahead, whether that be in corporate America or in the economy. Now

we need earnings to kind of meet that signal. And right now we still have earnings expectations through the end of the year of ten to eleven percent growth, and

in three there's still pretty lofty expectations as well. I think that as profit margins get pinched and ceo s come out and talk to us about their Q two earnings, they may still have had a strong Q two, but a guidance going forward is likely going to take a hit from inflation, from the tight labor market, from the increasing costs that they've seen over the past six months. But what about tech in particular? Why is tech or

has tech been underperforming the last several weeks? Well, the last several weeks I think have been characterized by a market that's trying to figure out what the biggest problem is and what what their biggest fear is. And we've had a lot of trading that has been very rate related, and tech is so sensitive to the rate environment that as we continue to get data that says, you know what, the FETE is going to have to keep going because inflation is still such a big enemy. That hurts tech shares,

that hurts those high growth shares. There have been some mini rallies in between. We've seen some attempts at a rally in tech and in some of those growth names, but there's been a lot of giveback as soon as the market realizes that the FETE is still on this bandwagon. Regardless of the fact that we may have increased recession fears over the next twelve months, in the near term, the FED is still going to fight that growth narrative. So let's talk about the signals you're seeing now. Based

on what you're seeing is a recession and inevitable. Well, look, I wouldn't say anything is for sure. Nothing is ever guaranteed. At some point, there will be another recession. That's just

how the business cycle works. However, what I will say is that some of the signals that we look at, such as yield curban versions, now we've gotten a deeper yield curban version down twenty one basis points as of today, which is the biggest in version we've seen so far, aside from some of those minian versions earlier in the year. That's a pretty big signal, and that's the market saying that we're afraid that this hiking cycle is going to take us into recession. Here's what I would say about

a recession. Now, we may find out at the end of July that we have another negative GDP print for the second quarter, which would be technically a recession, but it's an odd one, right. It's one where the labor market is so strong, We're still creating jobs, We've got a consumer that's still spending and maybe as frustrated by inflation, but hasn't stopped spending because of it. So it would be a recession that didn't hurt demand to appoint enough

to bring that inflation number down. Now, what I think the market is grappling with is is there a classic recession coming at some point? Perhaps that does actually affect the labor market, does bring demand down, but it takes care of that inflation problem. So it's the path to fighting this inflation monster that we're all trying to figure out. Speaking of that monster. How much of a change is so far seeing and spending and borrowing habits right now?

Do you see customers being resilient in their spending or are savings shrinking? Well, look, I mean with our bank charter earlier in the year, there's obviously a difference that we're seeing, but it's the spending patterns are pretty consider stint across consumers broadly. Right, everybody is still spending, They've

just changed their habits. So what you find is, and this is a broad consumer statement, what you find is maybe consumers have pulled back on certain items, and we heard this earlier in the year from some big retailers. Maybe they've pulled back on certain items but started to spend on other items. So you're gonna see, naturally in a business cycle, a contraction and spending endurable goods, but other spending has still held up. We're still seeing in

all consumers the desire to travel. We're still seeing airlines that have completely full flights, despite the fact that they keep canceling all of them, but they're still full, and there's still people out there with the appetite to travel. Despite higher gas prices. People are still on the road. So Consumers have not necessarily been hit by this yet, But this is much like the profit margin story. Consumers came into this period with a lot built up in savings.

They could absorb some of those price increases. Plus they had such a desire to just get back out there again, which is why we're seeing an inflation and services. Much like companies came into this with record high profit margins. They can absorb some of this into earnings, but they can't absorb all of it. Now. I'm curious whether how you're watching this Tesla Twitter story. Tesla is just such a massive stock now and we're seeing it get caught up in the ups and downs of the Elon Musk

Twitter saga. We're just getting some new headlines from the CEO of Twitter and a memo to employee saying they're going to hold the Musk accountable for this forty four billion dollar deal. Every time any news breaks, um, you know, it impacts not just Twitter stock but Tesla stock. Do you see an impact on the broader markets here or is this just a separate narrative in itself. Well, I think some of this is very company specific, because this

isn't something that's going on across the entire industry. So at this point I don't think there's an impact on the broader markets. But as we get through the remainder of the year, if we start to hear things about other companies, I think the the M and A activity may pick up later in the year and into which is not the Twitter and Tesla story, but the M

and A narrative could pick up. And what you might find as the economy slows further is that those transactions, those mergers and acquisitions are now happening because of financial reasons, not because of strategic reasons. So that's something that if we start to hear a theme across companies in certain sectors that have been hit really hard by this, that's something that would affect the broader market. Interesting all right,

Liz Young of so Far Always great to have you here. Liz, thank you for giving your view on the situation and stay to play today. Well, it's long been a bell weather for corporate spending in these days. The view from IBM could be a good indicator for which way the macro headwinds are blowing. Joining us now here in the studio, the CEO of Big Blue himself, Arvin Krishna, are been great to have you here in person, Emily, always great to be here with you, and this time in person.

In person, indeed, thank you for taking the time out of your trip to the West Coast. Look, we've got a lot to talk about, but I have to get your view on the macro economy. What scenarios are you planning for? Do you think of recession is inevitable. I'm actually more optimistic, so I'll caution it with that. We are a B two B company, so we tend to see corporate spending our customers. In turn, maybe B two

see but we don't directly go to consumer. So in the B two B we see the spending environment quite robust. We see our demand signals, we see our pipelines, We look at geographies, we look at industries, and part of it may be that technology is the answer through these problems. When you look at supply chain, inflation, labor demographics, interest rates. Technology offers you a way to scale without necessarily increasing

costs that are linear or worse than linear. And so I think that that is why technology is spending I believe is going to remain robust in this In al Cahol, it all moderate scenarios. Is there's something extreme that's different, But but I don't really expect that. Are you planning for extreme scenarios? I mean, do you have to plan for extreme? Plan a bunch of scenarios, but plan is different. That's a plan on paper. Which ones do you expect to play out? You would say there's a middle, there

is a more pessimistic, there's a more optimistic. None of those are the extreme ones. Well, it's interesting because we're hearing, for example, of the CEO of Service. Now just give a very pessimistic forecast, and you have Snowflake with a very optimistic forecast. Who's right, I mean, you're optimistic. I'm optimistic. So I'd say that I see technology spending as remaining above GDP growth, whether it's three or four or five points about GDP growth. Somewhere in there is going to

remain technology, including in Europe, is our view. So we are more optimistic than pessimistic for sure. And uh, that's why in April, when we could see some of these headwinds that we're talking about were there. In Apri, we did forecasts that we would see at the high end of mid single digit revenue growth for ourselves at constant currency. So I'll put that to the side. So how is this all impacting your strategy or cloud strategy or growth

strategy looking ahead? It's actually, I think reinforcing the play we called so two years ago we called a player on hybrid cloud and artificial intelligence. We see hybrid cloud as helping our our clients through these issues. We see AI is really helping on the productivity issue. When you look at AI sixteen trillion dollars of productivity unlock over this decade, and you look at hybrid cloud, trillion dollar opportunity. All our clients want a few public clouds, still have

um their own on premise and private cloud. So when you look at how do you help your clients navigate through all that really give them a technology roadmap that lets them succeed in the face of sovereignty, in the face of resilience, in the face of supply chain issues. Both these technologies are turning our to be great, great opportunities. Right now, let's talk about the supply chain. Are you seeing relief? How much longer does the supply chain pain last?

I actually maybe a bit more pessimistic on that than optimistic. I think supply chain resilience is a real fundamental issue that's going to go on for a couple more years, and what are the impacts of that. So I think the impact on the consumer side is obvious. It's going to be higher prices and you can see that. On the enterprise side, I think that the supply chain is going to cause more delays, more people sort of wondering about where is my alternate on supply chain. But it's

not a simple issue. That is what I think nations and leaders have to wake up to. It's going to take two three years two for us to go resolve this, and that is why I sort of say this is not a simple issue to get resolved. So you're saying it's gonna get worse before it gets better. No, I think may maybe at the worst of it right now, but and you the walls, it doesn't get better right away.

That's going to still take a couple of years. So obviously chips are in short supply, including you know, I mean, we've been following the Chips Act. UH looked like there was bipartisan agreement that this would get passed, still hasn't been passed. We spoke to UH Commerce Secretary Gena Raimondo on Bloomberg Television. Take a listen to what she had to say. Yes, it will get done. This is at

this point in the negotiation. Unfortunately, politicians look for leverage, and while it isn't right to play politics with national security, that's what I think is happening. In the past two weeks, we we made huge progress, we were closing out issues, finding compromise. So I think everyone just needs to come back today, get back to work, and commit themselves to getting it done in the next few weeks. So she sounds like she's trying to be optimistic, but she's also

clearly frustrated. I mean, you've got companies T S, M, spe C spending a hundred billion dollars abroad to increase capacity and we can't even get a fifty billion dollar bill passed. What's it gonna take. Have you been talking to lawmakers? What's your sense of the sentiment here? We have, so we've been talking to lawmakers on this issue, on both the Chips Act and USEKA for the last year. We are very strong believers that these are good bills

for United States competitiveness. We believe in the sake of both national security, but also business in general. These are good things to get done. I think the Chips Act is essential. Will it happened? I believe the Chips Act will happen. I can't predict exactly when it will happen and which way heckle, will it be part of USKA are part of its own? We are not experts on that. What we can say is there to be happy to put our voice behind the Chips Act. We are happy

to call UH senators on both sides. We believe there is bipartisan support actually for these acts, and that is what we are willing to go ask for the support. Um. Now, you just wrapped your fifth acquisition of the year with these depressed valuations. Is that making you more open to more M and A? A short answer is yes. But it's not a question of depressed valuations. So M and

A has been part of our strategy. About a year ago, when we set out on our investor day, we said you should expect us to do three to four billion a year and acquisitions in a normal year. Now you can always when valuations are right and you can get the most attractive target, and it is going to be aggreative to us then we'd be willing to also lean in and borrow ahead from our what we can do.

He saw a great example of that with Red Hat four years ago, and you just the new CEO there, and it has played out for us and we have paid down the debt we took on to acquire Red Hat. So but things like that you can do once in a while. But you would absolutely expect us to be continue to be acquisitive as we have been. So are you saying we could see a bigger acquisition like that again or are we going to be seeing you know, smaller. The smaller ones are a short thing. The big one

will depend upon both the attractive opportunity. It has to be something that is a creative to us, that aligns with our strategy, and that creates significant synergy. So if you get all those things in play, maybe where could maybe some synergies Like what areas are you The areas we are in are going to be straightforward, doesn't matter smaller. Big.

The areas were on is in software and in consulting, and in both the areas within that in terms of technology is around hybrid cloud, around security, around data and AI and automation, all of which played to the current economic themes of what's going on around the globe. So, speaking of Red Hat, new CEO just named what changes will the spring. This doesn't really bring any change. This has been planned for a while. Um. Look, Paul Cormere

gave us four years since we announced the acquisition. He's not gone, by the way, He's still here as Shairman, and Matt has been in his wings for a long time. Matt has worked for Pole for almost sixteen years, so we shouldn't expect any significant change. And Matt was the leader behind our open shift strategy behind containers for the

last three years. He's been leading products inside Red Hat, so you should expect more of the same, more intensity, more of a doubling down on the winners, but not a significant change. So last good question. Obviously you've been at IBM for so many years, but in the CEO seat now for our for a couple of years and through a pandemic, you know, what are your goals for let's say the next five years. Number one is relevance to our clients and that comes to the areas we

have picked. So we have picked our areas and we're going to keep doubling down on them. Um, that results in revenue growth for the company and results in cash flow growth for the company, that's it returned to our investors. Then apart from that, my goal is clear. We want to build a platform that is going to stand the test of time. The main Frame was a great platform.

Webster which was Java was a great platform. It's time to build the next PLAT which is going to be based on the hybrid cloud technologies from red At, but also a lot of what IBM is innovating around that that will provide a scream of revenue and relevance for two, three, four decades. Maybe all right, all right, big promises will We'll be watching. Arvin Christnas CEO of IBM, is so great to see you here in person again, um, thank

you for stopping by. Whether it's named the Apple Watch Pro or the Apple Watch Explorer Edition, Apple is set to give the Apple Watch a Pro tier for the first time this fall. This follows a strategy that has brought the iPhone Pro, iPad Pro, map Book Pro, and AirPods proto market over the last several years. The Pro Apple Watch will come in the form of a new model that's gaimed at extreme sports, athletes, and just about anyone else simply seeking the most advanced Apple smart watch available.

The high and model will have a larger and more shadow resistant display, a rugged metal casing, a body temperature sensor, improved hiking and swim tracking, as well as better battery life. Apple's new watch will likely come in a case size between forty millimeters and forty seven millimeters, up from forty five millimeters on the Apple Watch Series seven of today. The new screen will also have about seven percent more

active screen area than the currently largest model. I also think that the new high end device could replace the Apple Watch Edition income in durable titanium. Given that a bigger screen in higher end construction are in play here, I'd guess that the new device will probably start at between nine and a thousand dollars, approaching the price of an iPhone Pro for those not looking to pay for an Apple Watch at that price point. There's also a new Apple Watch Series eight coming, as well as a

new low end Apple Watch SC. The Series eight will have an updated display and that same body temperature reader, while the new SC will have a faster processor than it's predate sessor. I'm Mark German. This is power On. You can subscribe to Mark's weekly power On newsletter at Bloomberg dot com. Alright, meantime, gaming service provider Unity Software is spending upwards of four point for billion dollars to buy iron Source to help boot up its advertising technology.

They all stock deal sent sares of iron Source, which went public vias back last year, soaring by nearly Shares of Unity, on the other hand, fell by double digits today. There you see it. But Bloomberg Intelligence sees the deal as a real opportunity for Unity to expand its reach in advertising, particularly in app mobile ads. Here to discuss it all, Unity CEO John ric Tello, John, great to have you with us. Look, John, you've been in the

gaming industry for decades. What do you have to say to investors who are skeptical that this deal is actually good for you? Well, UM, a couple of things. I think we've set out a vision for precisely how um this uh, this merger of this deal will help us make sure that our customers can make better games and um and make a better business. And when we improve the business of our customers, we're going to do well. We also set out three very specific synergies where we're

going to realize benefit right to the bottom line. And we framed out that we expect to see EBIT run rate in million dollars. That's a lot for company of our scale, and UM we really gave it to them precisely. That look M and A. In a day when the market trades down, you know, there's a lot of things that happened. My job is not so much to think about my stock trade do tomorrow, but to make sure that we're building a company that is going to be

super valuable in the long term. And as investors, you know, get comfortable and understand our story, but also see it in the results. I have confidence that will be fun. So how maig An impacted Apple's ad tracking privacy changes have here not at all actually, so UM no, these were well understood well before, so we considered UM you know, looking at an iron source and UM as we've reported, UH, there is durability and long term viability to UM the io S side of UM gaming advertising. I mean like

it's a huge market. UM. I mean about three to five percent of applications are paid for by the consumer ninety five or consumers don't add UM hence the need for advertisement. Here's a real important trick. And almost no industry do users or players or viewers think that advertising is a positive. One of the only industries I'm aware of in the gaming industry, mobile gaming in particular, they tell us time and again that they think the advertising

thing is positive. And not only do they say it, we can prove it because games with advertising, um, when they're tested against those without, achieve higher levels of engagement and what means they're playing more. And so we know this is true. I think it's it ought to be the envy of everybody in the advertising world. And of course it's performance advertising. So our customers what they get

from us is return on investment. Maybe they want to spend less and sometimes against the recess and etcetera, but they don't want less r A I. And that's what we're looking now. Unity did have a round of layoffs recently. You cut your guidance for the full year. Are those kind of issues behind you given the macro economic headwins

we see ahead for you know, every company. Well, first off, I mean, let let me just talk a little bit about the layoffs, because um, I think they were somewhat blown out of proportion, not not by by you, Emily, but some of the press. Um. We're a company of about sixty people. We eliminated about two hundred and fifty positions and we offered half of them new roles for you know that would be a better career opportunity for inside of Unity and outside of Unity or inside of

university what they're doing previously. And then for each and every one of those individuals. Look, I I take it. You know it's important to make sure that everyone is treated well, and we treated him super well. Um. A loss of that number of jobs, a covery of our scale through the focus. Look, you know, we're not the

in theory of government where everything lives forever. Some things are working better than others and allow we reallocate to optimize our our approach to market and the opportunity in front of us. So Um, Look, I think it's always unfortunate when even one person loses their job. What I'm proud of is we get it in a way that I think was as positive for those involved as it

could be. Everyone was given an opportunity to talk to us about what they might want to do, and half of them were able to offer them something, and a lot of them are gonna end up right back at Unity because this is a great place to work. So I know you're expecting this deal to generate a billion dollars in adjusted earnings. Will that still happen if there's

a recession ahead? And do you think a recession is inevitable? Well, look, I think one of the things that always happens anytime where business show start talking about the FED is the only thing that's um, truly in great supply is pundits. And so you know, I don't want to get into, you know, pictuit of trying to be a pundit. You know, there's definitely some you know, some evidence of a slowdown.

Whether we'll register is a full scale recession. But here's something you know, I don't know, but I will point out a couple of things. Um. Yeah, certainly economic cycles affect businesses, But if you go back over the last twenty to thirty years, you look at each and every time we felt recession. Um, one of the interviews that

fared the best is the gaming industry. You know, lots of reasons for that, but it's a relatively inexpensive way to entertain yourself and It's one thing to get into a game and see and that and end up buying a you know, a one dollar in that purchase. It's not maybe the same thing as buying an new F one pickup truck. And the other issue is this advertising media is performance based, so to agree that, you know, you know, recessionary things happen, they're always going to buffet industries.

I think this is an industry. This is a sector that we buffeted far less sell. So we feel confident in what we we outlined today. We wouldn't upset it um. You know, crystal balls are never perfect, but we think we've got the right collection of assets and in this instance we're strengthening our hand with in combination with Unity, we can and iron source. If we can help our customers make better content and have a better business, we

know there's long term success and not. All right, well, thank you for giving us your view into your crystal ball. H John, Always good to have you here, John wick A Tello CEO of Unity, Appreciate you stopping by all right. Bill Gates is donating twenty billion dollars to the Bill and Melinda Gates Foundation this month. The foundation has a new goal of increasing its annual giving by fIF to nine billion dollars a year. Gates's latest donation brings the

foundation's total endowment to about seventy billion dollars. The rise and Fall of Three Arrows Capital is shedding light on the obscure practices of some crypto firms they bet on prices only going up. Known as one of the largest crypto hedge funds in the world, Three a C invested in some of the best known blockchain startups. But when crypto prices turned this year, Three a C unraveled and

may have even accelerated the decline. That is the topic of this week's Bloomberg Big Take title titled When Hold Spelled Total Failed The Collapse of Three Arrows joinings now are Bloomer Crypto Reporter movie ou Shan, who co wrote this p so talk to us about the draw the most dramatic twist and turns in this fall. I think the most dramatic part is that how a very well known hedge fund in crypto just felt all of a sudden.

I think there is such a surprise to so many um unlike a lot of our previous fail us in crypto, that people in cy crypto in general were aware of. So did the collapse of Three Arrows really or cause or lead to potentially the crypto broader crypto contagion? What are we sing so far? There's a definitely contention in

crypto market right now. We're seeing um some of their biggest counterparties, for example, uh, the Canada based Voyager Digital they announced bankrupt as a result of the exposure to See Arrows who borrow tons of money from Voyager and was not able to fulfill the obligations. Talk to us about the role of transparency here, I mean, were they really only betting that crypto was going to go up? What hedge fund does that? That's that's I think that one of the most things I my personally find very

surprising throughout the reporting part of this story. It's just that these two people who are formal for X traders, They're supposed to be very intelligent, sophisticated traders in crypto, but turned out literally every single person I talked to told me there's the biggest force in crypto and they believe this kind of theory of superpycho that crypto would never fall like other markets, and they put on big best on every single project that invested in. So how

does the crypto market move on from this? Obviously it's not just three arrows. You know, we've seen the collapse of of terra Um and it's really scared off a lot of investors. Yeah. I think, as you said, this is the transparency issues, and there's a trust crisis in crypto right now. So I think moving forward, um, I think the market this space really needs to be more transparent.

For example, all the speak lenders they need to you know, communicate with each other talking about who's borrowing money to whom to make sure all of their contemp parties are going too big to certain extend that can have more impact across the market. All right, Well, I'm sure that we will see more tumult ahead. Bloomberg's movie out Shan on this week's Bloomberg Big Take, Thank you, Welcome back

to Bloomberg Technology. Netflix has chosen Microsoft as its tech and sales partner for its new AD supported streaming service in hopes of advancing its efforts to reignite subscriber and revenue growth. Joining us now Bloomberg's Lucas Shaw. So, Lucas, what are we learning about this? New tier if you will. Well, Netflix still isn't saying an awful lot about how it will work for its customers. We don't know if they'll be ads before a shows starts, in the middle of

a show, both of them. We don't know how many ads. We don't know the price of the ad tier. The only thing we know at this point is that they're relying on Microsoft for a lot of the kind of the back end work, not anything that the customer will see. But it will be Microsoft sales team that sells the ads, and it will also be Microsoft technology that will handle the serving of the ads that we all see. It's a big win for Microsoft, which is not as big a player in the video ad space as say Google

or Comcast. Right, it was news to me that Microsoft had a bursioning ad service. You know, how is this a step towards some broader goal here of you know, taking on some of its competitors. Yeah, I mean Microsoft, I think said that last year it's ad business was about ten billion dollars, which is as big as some of the big kind of the TV based media companies. Obviously not as big as a as a Google or Facebook.

Um it acquired Xander, which is this AD business that A T and T had had built up last year in a deal that was estimated about a billion dollars. Nosanders not say the best in class, but is did try to compete with Google and Facebook obviously has LinkedIn, and so it's building a pretty robust AD business and wants to compete with players like Amazon and Google and Facebook. So here's the question. I mean we've heard over and over again. Content is king, it is all about the content.

Is it really all about the content? Or is an AD supported service that is somewhat cheaper really going to make a difference when it comes to racking up subscribers. I think if your Netflix right now, you now have about two twenty million customers. They say that each one of those subscribers is really like say three and a half people, So they're already at like six seven hundred million people who are using their service. There's only so many people who are going to pay for it. This

ad here helps them in a couple fronts. One is it could appeal to some people who maybe don't want to spend quite as much money. And in some of these cases, these AD supported services actually generate more money because people are paying a monthly fee and if you can make a lot of money from the advertising. You know, Netflix is associated with quality programming. They need to both keep find ways to keep increasing the customer base and make more money from those people. This could do both.

It's the same reason that they're crying the kind of what they call the crackdown and password sharing, because if they can get other users to pay more who are already using Netflix, that's a win for them. All Right, Lucas Shaw, thank you for your reporting here. We'll keep watching meantime. Want to end the show with some news out of Tesla. The EV maker's AI and auto pilot chief says he's leaving the company. Ed Ludlow back here with more. Obviously there's a critical role. Yes, this is

Andre car Party. He's been at Testa since two seventeen, but he went on leave in March, and you know Sour told me this was a guy who didn't miss thedair work for five years. He went on leave. He's tweeted that he's leaving Tesla. You know, his strong capable hands also pilot. The work tests done on AI to power that camera based technology has really come a long way.

But he's doing something new. You just don't know. So do we know if this had anything to do with disagreements or a de prioritization of like the work that he's doing. We don't you remember last week we reported that tesselaid off around two hundred and thirty autopilot data labelers, you know, as part of the big layoffs program. They have made progress in this area. They're working on their own chips, their own supercomputer dojo to help the AI

trained in your networks to improve this technology. But he's been on leave. We don't know what's going on behind the scenes. And now he's cool time on his Tesla Chris, So just another problem for Elon Musk another one. But Elon tweeted he's grateful for the time he had. You know what, what has Elon said so far about the Twitter suit? Have we heard from him? He tweeted, oh the irony law. I gotta get a loll on the

this is cutting edge. Look, how are we expecting this story to progress, you know, in terms of moving through the courts? Um, when are we going to see another development? We've seen Twitter salvo. When are we going to see a salvo to school of thoughts must counter suits. It could go to trial move very very quickly, but we're going to have a very protracted legal dispute. It's already been protracted, I mean in court for a year's some are bracing for really, so what happens to Twitter in

that time? I mean, well uncertain. This is a real financial headwind for them. It's a financial and public relations headwind, but headwin for employees. I mean they're trying to recruit people, get people to stay at the company, and keep the trains running right exactly so, And that was part of what Twitter CEO paragagh Worl said two employees on Wednesday. We're facing the changing economy and this court case. Brace yourself, what are we see? What are we hearing inside the

company from employees? I know you're talking a lot of people. They're not that impressed, right. They feel like Twitter's management have been on the back foot this whole time, that they should have been more proactive. That Elon must All Hands a few weeks ago just was kind of the I seen on the case on the right word the final straw for a lot of employees. And they've they've frozen hiring, they've cut projects. It's not happy as happy a place to work right now, but there's fighting talk

coming out for management and the board. So sometimes fighting talk gets you going fighting words. Indeed, all right about the thank you? Well that does it. For the edition of Bloomberg Technology tomorrow, we're gonna be joined by Maven Clinic CEO Kate Rider. She's going to talk about the role Tell Ahealth will play in the state by state debate since Row versus Wade was overturned. And don't forget

to check out our podcast. You can find it every day wherever you get your podcast on the terminal, Apple, Spotify, I Heart, Google Play and more. I'm emily checking San Francisco. This is Bloomberg