The M&A Rush and Japan Weighs In on Chip Curbs

We break them down and it could be a huge win for the Biden Administration's pushed to loosen Beijing's access to the semiconductor industry, as Japan weighs joining curbs on China and the well unorthodox management styles of Elon Musk and Sam bagmun Freed Tech and Media founder and board member Arianna Huffington's joins to explain why it's bad for business. First, so many news headlines breaking when it comes to M

and A this Monday. I kind of keep track of them, but luckily we know somebody they can Yeah, exactly not a nine of course, Microsoft buying that steak in the London Stock ex Change. It's been a whirlwind of well getting into the week of M and A space. In fact, I think it's been to seventy billion dollars of M and A rush is coming before this holiday and that's just from Sunday into Monday. Let's push it on with Bloombergs Katie Ruth, who has been across several of these stories.

And Katie just talk us through some of the reasoning behind the sudden florry of deals. Sure, great to be with you. So we see a lot of deals happening before the end of the year. Sometimes, um, there's an eagerness to wrap things up before the holidays, especially because people don't want deals to die before the holidays. So um, you know, we had been reporting on the Kopa situation for a while. Our understanding is that there had been

talks for months. But yes, it finally got done. Although with Kopa this was part of a wave of take privates this year, in particular by Toma looking at enterprise software. UM with with the emngine Horizon situation, there had been a bidding war between them and Santa Fee, which backed out yesterday and then late last night we broke the story that Amin came through and made an offer. But yes,

this is quite the murger Monday. Uh you may imagtion The Microsoft also took a stake in the London Stock Exchange. It's interesting time a year for all of this to happen. It was interesting as well the premium that Tomer Bravo is willing to put on Cooper I think seventy seven premium over the closing price from the day that you guys first reported that that Cooper was up for sales. So it's kind of an interesting development. A lot happening in four D eight hours. It's a sprint finish to

end the year. How does that set us up for Katie, because I know there are other deals that we're tracking

as we go forward. Absolutely, so we are expecting, at least from what we hear from dealmakers, that will be pretty active on the M and A front, particularly with tech M and A. I mean, one thing that you know, observers of the stock mark it have noticed is that TEX stocks are down substantially and it took a while for sellers and buyers to agree on price, especially with volatility, and so people are expecting that at this point tech companies are going to be less likely to be in

deni all about where they're worth in um. It makes it a good time for for buyers to look and buy things on the cheek. Bloomberg's Katie Ruth their care I can tell you Katie is a jet setter. She's on a plane, she's in cities all around the world chasing these deals. She's never in one place. It's no wonder she's able to keep it all in her mind. We have a lot more discussed, Katie, Ruth, thank you

very much. Let's take into it more with Robert Profuset, who chairs the Global m and a practice over at law firm. Jones Day, December twelve, Merger Monday, Why why now? Well U two has been down compared to one, but it's still was five trillion dollars. It was just fabulous. And one of the things that always happens in a market correction is it takes Katie mentioned it, it takes time for buyers and sellers to figure out, well, what's the real number? UM? What am I really worth? UM?

Famous quote by build Parcelves was you are what your record says you are. In in Wall Street parlance, that means the market dictates what you're worth at that particular important time. But it's very hard to adjust. I mean, the m Gen deal was interesting, almost done at a all time high. For the Target Horizon Tomo Bravo deal, it's not surprising. It was difficult to get to a deal it even though it's a huge premium to their market. Before the story broke um, they were trading at four

or five times that value just eighteen months ago. So it's very hard that one of the big There are two issues that happen in these circumstances, and one of them is this dislocation on value. What what is it

really worth? So things are starting to settle out, maybe in terms of what the equity markets say, bo, what what do we really need with all your years of experience, I mean one of the top M and a corporate governance lawyers out there, And when you're talking to these businesses, what from a macro perspective do they want to see? Is it the federal reserve stopping on the hiking front.

Is it some sort of calmness when it comes to overall volatility, Because what's interesting is, yes, we've had a sell off overall in the market, but for example, the fear gauge, the volatility index hasn't been a real at a real elevated level from real perspective, in these discussions you're having with people who want to use the huge amounts of cash they got to put to work. What

do they want to see? Well, it's it is stability. Um. One of the things about twenty this, this not just this most recent period, is I can can more stuff happen in a in a short period of time. And we've been through I mean, you know we as awesome messed. I think ed mentioned it earlier. We went through twelve years of virtually of just quiet interest rates, nothing going on in that environment, and all of a sudden, it's a debate. Is a tenure going to five fifty or

six hundred? You know? I mean, how does that happen? And then we've got we've got war, We've got all this stuff. So part of it is just some stability um, and businesses need to do that. But when you when you think about it from m Gen's point of view, Um, you know, horizon as I'm not an expert on this on this sort of stuff, but I understand they've got some great drugs. Am Gen, like every other big farment, has got stuff coming off patent. It's always got to

replenish itself, and it's got a powerful balance sheet. I think it's a billion hundred fifty billion dollar market gap come through something and they got They got a bridge loan for the deal for twenty eight billion dollars. This is in the same market where people say they can't borrow money. Well, it's something everybody can have. Some people can borrow money. It's just that everybody can't bought for

all money like they could. So it's a it's it's gonna be it's gonna to be a more fundamental market rather than a financial market. And and the tomb of Bravo deal is important too. For one other thing, there is a tremendous amount of private equity that was that was raised in the last several years, trillions, literally trillions of dollars that's got to be put to use because of the way they're economics work. Not that they would not that they do deals they think are good deals,

but there there's some pressure to get that money applied. Well, there's some companies out there in the technology space, on the biotech space that also have an awful lot of money.

They're also keen to do deals. But the regulators we were just talking last week the prolificence of the prominence of the FTC just everywhere, whether it's looking at what meth has been doing in terms of money where it's looking what Microsoft is buying in the gaming space, how much is regulation and way for the people you talk to.

It's a factor. Um. And certainly like the Microsoft Activision deal and and even as Simon and Schuster, much smaller deal but kind of important in some way in terms of what it says that that deal was blown off by any trust reasons. On the other hand, the government has been their track record has not been too good this last and most recent period, um, United uh, United Health, Alumina, that Sugar deal, a lot of things. So just because they moved to block a deal doesn't mean it will

be blocked. Um. But it's certainly a factor. And this administration is taking an aggressive view of this, but in all candor, I'm not sure it's all that more aggressive than than the Trump administration on these things. It's just a factor. And one of the realities is, you know, the Microsoft deal. I know some people were acting like that was surprising. I would have been surprised if they would have just said, Okay, it's Microsoft after all. I mean, you have to take a look at it. Now, do

you have to sue I? I I don't know, so I don't think that's really changed. But they're like a lot of things in this world we're in there, there's a little bit more rhetoric. Hey, Bob, let's look at this from a slightly different angle. Caroline is talking about some of the big names out there that are going shopping right because they had a strong balance sheet, because they see opportunity. The other side of the table, there

are those under duress, the four sellers. When we think about the market right now, the market, what role does the four seller play in global M and A activity? Usually it's when it bought things bottom it's the four sellers that at start the level of activity. Usually it's because of over leverage. That's not going to be the case this time. It's it's just a it's just a function of the world we've just lived in. In the

last several years. I mean, there was equity available at very aggressive prices for all sorts of ideas, whether they were in the e V space or biotech or unime, equity was there that those markets are closed. Um, the public markets are absolutely close for that sort of stuff, and the private markets are very difficult, not like they were, and a lot of businesses were were financed based on

the assumption that equity could be there. Well, it's not going to be there, and they can't borrow money when they're in the startup mode. Um, So there's gonna be a lot of merging um. And I think firms like you know, I talking about tom of Brabo, they're in the news, they're perfectly well situated for this sort of thing. There's just going to have to be a lot of activity because some companies are frankly going to get close to running out of money. They don't have revenue or

very much and they got to pay the bills. We will see if and when that happens. Bob Profuse at Global m H at Giants Day, Thank you very much. Now coming up a potential win for the US and it's quest to loosen China's access to chip making technology is Japan considers similar clubs to the by An administration. This is Bloomberg Bloomberg's learned that Japan and the Netherlands have agreed in principle to join the US in tightening chip making machinery exports to China. That according to sources,

that is a potential blow to Beijing's technology ambitions. The two countries are likely to announce soon that there will adopt at least some of the measures the US rolled out in October. Stacy razgone Bernstein, Managing director and Senior analyst of US Semiconductors SO Stacy Bloomberg. Sources say that these two governments are considering curbs on chip making equipment

for fourteen nanometer or more advanced chips. And I want to get straight to you on whether that actually has any result or helps the US reach the result that it's aiming for, which is too It's stated aim to stop the Chinese government having access to technology that could be used for military uses. My understanding, and I know that you know this face inside and out, is that even with twenty eight nanometer, you can use some of

those chips in military function. So does this actually get the result that the US is pushing for this coalition on. I mean, it depends on what you're doing. Of course, there are military applications that use older generation chips, and in fact, many of these applications use all kinds of chips from from many types of generations. Um By limiting the access to portune nanimators and below, though, you're going to limit access to anything that that's really higher performance,

especially around the compute side of things. That's where you're going to see more of that advanced logic. And so this will prevent those sorts of chips from from this principle from getting into into military hands in China. Stacy meanwhile, China as well to dispute over the USX for controls with the w t O. Ultimately, how damaging is this to China, to Beijing and production chips, it's damaging. I

mean it stops them. If it holds, it stops them from developing their own local ecosystem to design, manufacture and build leading edge semiconductors. And they are not prevented from developing the CAPE further developing the capability to build older

generation parts. They can do that, but anything that is to be used for advanced computing UM, either from a design side or from a manufacturing side, we want to stop them, and that is something that's gonna be very difficult, if not impossible, for them to build up from a from a local standpoint. And now with these new blockades from the Netherlands and from Japan UM, this may finally

close the window on it UM. If if if all of this kind of comes together with the US, there's not a whole lot that China can do from a local standpoint to build that stuff up on their own. The reason we're tracking these three companies stacy, three countries, sorryes because of the companies. You know that this small group of key players land Research, k l A A s mL. What is your assessment of what these cubs and the plan cubs are doing to impact those companies

top and bottom lines? So it's important to remember like why are they doing this? Why do we care about the Netherlands? In Japan? So China already cannot make the most bleeding edge semiconductors That requires a tool set that has already been banned. UM. However, if you're going to sort of like a couple of generations back but still pretty advanced, like fourteen nanometers, they're all are There are

alternatives to the U S companies. UM. You can get alternative to to what sm L cells from companies like Nikon in Japan. You can get alternatives to what companies like a MAP and land cell from companies like Tokyo Electron. So there are alternatives, and that's why it's important. I think you get everybody on the same page here. Um. In terms of the impact on the company's balancies, at least to the US ends, they've kind of sized this um and there's actually only a few of them that

are impacted in video. On the ex side, although they've been able to develop alternative products that they're selling instead, and for now that's closing the gap. And on the semi cap side, there was some impact, Lamb said, I think it was somewhere between two and a half two and two and a half billion dollars a year. Aim At was similar, although they think that they can bring that down to more like the billion to a billion

and a half. I think kind of kind of range. Um. It's also important to remember though from a from an equipment side, it may get less over time because you figure if the capacity is needed and it is not being built in China, eventually it may be built somewhere else. So from the equipment players, this may turn out to be somewhat temporary. We may find that all of this capacity is not permanently lost, but it will take some time and some rejiggering of the supply chains to to

get it delta elsewhere. Or if it's not built in China. You're right about Land Research is an example. I think they did say it would impact to the tune of two half billion dollars. Caroline and I had Doug Passenger on the show actually a couple of weeks ago. He did points out that their workarounds essentially UM in terms of licensing or alternative products. Is China going to have

success they're pushing those alternatives. You know that the sanctions themselves are fairly targeted about what is and what is not banned UM and and the issue is like some of the equipment I mean, I mean land Max catchers say, and I may be using an atcher or to make fortune animator chips and maybe using the same atuer to do twenty eight man in your chips. So there's a bit of a judgment call, I think in terms of how this stuff actually will get to get UM applied.

But the general characteristics of what is banned and what is not are fairly got and dried. I mean, LAMB presumably can contrive to develop alternative products. Whether or not that's going to be a viable path that I don't know. UM. Some of the product companies, at least like an nvidio for example. It's not equipment, it's actual chips that have been done. They've actually been able to develop alternative products that come in sort of just below the threshold, and

so right now they can sell those. The issue with that those of specials you're never going to rise. So the gap between what is legal and available to Southern China and what is available in the rest of the world over time is going to get bigger and bigger and bigger, and so eventually, you know, these sort of substances may may no longer be suitable for what they're replacing. Geer political macro to the micro of how effects all these companies you watch. We thank you always on these stories.

Beency Managing director and senior analyst Stacy Baskin. Ticket Master apologizes again, this time involves bad funny. The Wall Street Journal reports hundreds of fans who bought tickets were turned away from the Artists concert in Mexico City on Friday because security officers fought their tickets were Carrol fake. This after ticket Master said it's system had been overwhelmed with

an unprecedented number of people with fake tickets. Mexico's Office of the Federal Prosecutor for the Consumer said over the weekend that fans with legitimate tickets would be refunded, and then it asked ticket Master for a report explaining what had happened in a little bit of d h r V there, Yeah, a little bit. And I mean talking of apologies, I mean some people call some ma'men freed, right, he's still on his apology tour as many and dobing

it at the moment. And it's across well media outlets such as ours, it's across social media, particularly such as Twitter, and it's actually a pretty heated spaces debate. And you and I ed we're testing out spaces as a way in which we want to conduct our conversations bringing our audience.

But I think what stood out for me, and we're gonna discuss much more about whether or not sp is going to be at the Senate hearing or indeed the House hearing, but the fact that we are getting our news from Twitter spaces, that this idea of citizen journalism it's really coming to a fault, and in large part

it's sort of spirited by crypto. Yeah, then you asked the question about SPF or why is he going to go or not go as a case byb before Congress and Clappers or Hill, when you can get all the information you need from him live on any given social media platform. I think that's the frustration of these lawmakers

have as well. Yeah, and in some part though, I mean, I know people have been very critical of lawmakers when it comes to their real understanding acute technological understanding of social media, for example, And we've had Mark Zuckerberg and the likes dragged up in front of them. What about the will understanding in crypto two? And what about the people that are actually asking questions on these Twitter spaces.

Welcome back to Bloomberg Technology. I'm Karine Hide in New York with Eddudlow in San Francisco, and there's a day where tech stalks we're actually pushing higher like that. That's ed. But let's talk about one name that's kind of languishing at the moment. Yeah, and it's Tesla. And it's really hard to understand why there's no specific news drive and not at least this Monday, the stock down more than

six percent, trading at a three week low. Yes, there are a lot of headlines over the aggregate of a week right, we talked all about the pullbacking production in Shanghai. We talked about the Bloomberg News report that Elon Musk is considering switching some of the unsecured debt for margin loans in his financing of the Twitter deal, which would be backed by Tesla stock. That could be bringing some

downward pressure. Then there's also Elon Musk himself, what he's saying on Twitter, his actions over the weekend, which I know we're going to go into. I just want to bring up this chart really quickly and get into some technicals. We don't often do this, but it's interesting. From its one high, there's this sort of clear downward channel trend for Tesla stock, where on multiple occasions it's tested key levels of support, key levels of resistance, but it's still

continues this downward slide. And it's really hard to pick out why a lot of analysts don't necessarily agree on what is supporting or not supporting the stock as the case. Maybe you know, when we've reported about questions on demand from China, a lot of the Tesla retail investors and fans pushed back and say that can't be the case. But we've also reported that Tesla's cut prices. So question I have, and I know we're going to get into this with our guests in the moment, is how much

is it just Elon Musk? Right? Is there a key man risk element? Is there a distraction element? Retail investors have been worried about that head and yeah, we want to dig into it. Want to dig into Elon Musk's management.

Start a little bit more with someone who has built businesses, helped steer them on boards, and now is focused on behavioral change and sign them to about Arianna Hufington's She says, in fact that Elon Musk's management style there is an example of poor business strategy after he told employees to

embrace hardcore work experience at Twitter. In an op ed for The Information, Havington writes that worker mental health is more important than ever as an essential part of business strategy, proving not only employee productivity, but also recruitment and retention. She labels Musk burnout denier. Of course, it's Huvington has focused on building healthier corporate environments through her Thrive Global campaign, In fact, signed by more than a hundred leading companies.

Ariana Huvington's found a CEO Thrive Global is with us Now, Arianna, you write in an op ed and on LinkedIn that Mask is kind of a count a case study for leadership. Just talk us about why is such a powerful counter

case study. But Caroline, at the very moment when you have major multinational companies like Fiser, Accentual, Sales Force, Walmart investing into their employees well being, mental health and seeing the business results in terms of recruitment, retention, productivity, we have Ellen Mask, whi is a genius when it comes to understanding energy in cars, clearly not understanding human energy and acting and expecting his employees to act as though

and work fueled by burnout leads to pick performance and great business results, and we see that it doesn't. We see a chaotic process of decision making which clearly is not benefiting Twitter, and it's obviously not benefiting Tesla because to adds points about why is There'sla stock down? There's no question that Ellen Mask is the genius behind Tesla. Who when that genius is distracted by auctioning espresso machines from Twitter and moving beds into conference rooms and traveling

fauci on Twitter, if our investor in Tesla. I would be worried about why isn't he focusing on Tesla, especially during a time of growing competition. What's interesting is this sort of hero status of sleeping in the office of I mean San Batman Freed, who were about to talk about much more in terms of the crypto world, falling asleep on bean bags and almost its being something that

they wanted to show the vcs and the potential investors. Look, how then dynamic and and focuses he is the minute he wakes up and comes to give you a pitch. When can we stop having this sort of idea of cultish fanaticism around certain people and an ability to do it all at about to our sleep. Well, actually the majority of the world has opted. That's what it's so fascinating,

especially because of the pandemic. We went from sleep deprivation, exhaustion, bre not fuel at work being a badge of honor and celebrated to the opposite. I mean, we have major CEOs now, including Satya Natella and Jeff Bezos. When he would say of Amazon talking about getting eight hours of sleep.

We have major elite athletes like Lebron James and Tom Brady and Roger Federer talking about the importance of recovery four peak performance and all these people are very hard working, Carol, and I wanted to say, this is not about not working hard. This is about working smart and not having the diminishing returns we've all experienced when we were exhausted and burned out and running on empty And so the

science and the data are so unequivocal. And that's what I find fascinating because I'm a big admirer of Villain Masks. He's unqu tronably a genius. So somebody who understands so perfectly energy renewable energy when it comes to cars is missing out, is actually using incredibly outdated modes of human energy when it comes to how he wants to run his businesses Ariana is Elon Must not just going back

to his playbook. I want to bring up something you said in your op ed that he's showing the downsides of a model fueled by burnout and lack of sleep in his own decision making. And that made me think about the reporting from twenty eighteen when Must said he was sleeping on the production line with his engineers. You know, he does have a good track record of getting these companies be a Tesla, be it SpaceX through moments of duress.

And you look at those two companies now, they are the clear market incumbents for both electric vehicles and commercial space launch. Absolutely, And I think two things have happened. One, the culture has moved on, and the pandemic has dramatically accelerated the cultural shift away from celebrating as Caroline was saying, burnout and wearing it as a badge of success. When Elon Musk asked his Twitter employees to commit to a hardcore,

intense way of working, twelve hundred of them resigned. That would not have happened in What happened with the pandemic is that people looked at their lives and what do they value, And millions of people said, we value hard work, we value being completely engaged by our work, but we also don't want to be defined by our work, and we want to be able to also prioritize our own health and well being. So that's the moment we're in

right now. And I have no doubt that Evillen mask started applying that scientific, clear data point around how to best work and achieve business results. He would be even more phenomenally amazing across all his companies. Arianna, you've been a board member and an executive, a leader at a number of companies technology sector in the media. Give me some concrete proposals that you think Elon Musk should put into play to fix the situation at Twitter, to improve

performance of Tesla. What advice would you give him then to change what has been the case so far? Well, the first thing is along the lines of what we're discussing, kind of recognizing that he is going to make better decisions when he's not running on empty, when he's not exhausted to get a good night's sleep, in other words, get a good night's sleep, but recharge, work hard. He's always going to work hard. You work our Caroline works hard,

and work hard. That's kind of table stakes. But we all know also that our work depends on judgment, and his work and his achievements and what he does for his companies depends on the quality of his decisions. And look at the quality of his decision has not been good.

There have been so many reversals, and there's been kind of so much trolling of figures, the Twitter files and all that, and that's all a huge distraction, and that really is my big hop that he recognizes how much more effective he would be as a leader and how much better the business results would be if he looked

at the science and data of pig performance. I mean, it's interesting, is it mentions that your expertise having been a board member of Uber, for example, and holding executives to account, making sure that there is the right governance in place. Many might look at two of these two leaders to single out Elon Masks. Some magnnfried that they either have people on their boards who perhaps yes people, or they don't really have much of a board at all.

Do you think as we had to some sort of economic slowdown in the downtown, people will put more focus on corporate governance? Oh? Absolutely. I mean it's actually stunning that fd X did not have a board. Isn't it stunning that um, you know, major vcs invested in a company without a board? I mean, and of Adober Actually I saw firsthand the dangers are burnout and the decisions it led to that almost brought down the company. And

we saw what happened with the FDx. So we have so many examples that is now time to stop celebrating an outmoderate way of working. Actually, Caroline, I've looked at where they started. It goes back to the Industrial Revolution when we're kind of really started revering machines. And the gold with machines is to minimize downtime. And that's the same goal with software. But for the human operating system,

downtime is not a bug, it's a feature. And once we accept that, it changes the way we around businesses. I mean, gonn as we structure our Monday to Friday almost in a way that was when Henry Ford first was pioneering. It is in many ways back dated. I'm interested in your expertise, not only the common governance in your experience, but also as a woman who led the

charge in a in a new form of media. You must be fascinated to watch what which was doing as a new form of media in a way citizen journalism, we all call it. How are you seeing? How do

you think that landscape will evolve? Well, what is amazing now is that when I launched the Huffington Past two thousand five before you were born, Caroline, and you know, we the farcus and the vision was to democratize media Now we've seen, you know, the democratization of media, and there is a lot of great stuff about it, but I've also seen how people gathering around just what they believe.

The hot danger of confirmation bias and only reading things that you agree with is a tremendous danger for democracy and for the truth. I still find Twitter to be a chaotic experience. You know, when I use the platform, I can't tell if it's improved or if it's got worse. It's certainly changing. What is your kind of view on the platform itself, the content that gets generated from it, the news that spreads through it, well, it's definitely changing, but and you don't know how far it will change.

I think it's interesting that the Eleen mask still agrees that some people should be banned. It's just that he may think that people he would ran are different maybe than the people you would run or I would ran. But the principle that free speech doesn't mean that you can cry fire in a crowded theater is still prevailing,

which is very interesting. All Right, Five Holdings founder and CEO Arena Huffington's thank you so much for sharing some of your time with Caroline, and I thank you coming up, we'll discuss what to watch for in Sam Bankman Freed's house hearing on Tuesday, that and much more. Of course,

this is Bloomberg now. Of course, all eyes are still on the ft x is founder CEO Sam Bankman Freed, as he is expected to testify just virtually on Tuesday in front of the House Financial Services Committee over in Capitol Hill in peace to say our own Snai Bassa is headed to DC in real life right after the show. Thank you sticking around with us, and look, what are we anticipating for him to say that knew that we haven't already heard in some form of apology tour already.

One thing that's interesting is you have the new CEO, John Ray speaking first, and then Sam Bateman Freed speaking after we hear according to sources, that will be in the afternoon, and so there's a bit of time in between. And to what extent does he start to answer some of the things we know that John Ray has not only put in the bankruptcy filing but also in his own testimony that is posted on the House Financial Services

Committee website right now. Those allegations include combing going of funds as well as a failure to implement visually any systems or controls necessary for a company to be entrusted with other people's money. Now we know that tam bang Bean Freed has spoken a lot, including today on a Twitter spaces as well, and it's worth taking a look at what he said, and we can expect him to reiterate some of this tomorrow. And it's that right now he has no data about anything, so that all he

can go off of is his memory. Remember, he's no longer the sea of the company, so there is certain amount of data that he's no longer proven to. But with that said, he was in charge from the beginning of f t X, and he also said that he bared responsibility for making sure he did the right things as a company, and he had a massive failure there no matter what. So we've known over time that he's

taken some responsibility for some things. But at the end of the day, he has been a very very careful to really recuse himself and distance himself from the idea of ft X investing customer assets to his knowledge and commingling to his knowledge. You're right that we get a sort of Acts one and then Act two with John Ray the third, who's the current f t X CEO or administrator testifying. It's not as if though they're gonna bump into each other in the hallway and have an

awkward hug or something. Is an SPF testifying from elsewhere? Uh yeah, not a lot of hugging these days, for sure. Ed. So, yes, he's testifying virtually, and remember he is testifying tomorrow, he's slated to testify. But we also have to talk about the idea here that the Senate has already said, and this is shared Brown and Pat Toomey had said in a statement that they are unwilling Sam big Befrieen's council has said that they're unwilling to accept service of a subpoena.

And so why he's testifying at a one branch here and not the other is or one chamber rather than the other, is an interesting question. What he said earlier today on this podcast is that he wants to be able to make sure that he's able to give a full account rather than uh, you know, and incomplete account here. But you know, the point that we've been making all day here is why is he willing to give those

in complete accounts? To the media, but not not the lawmakers here who are responsible for constituents and have also, by the way, in large part taken money from him in the form of political donations as well. Just talking about media, this piece run by the Australian Financial Review about an inn a circle powerhouse at FTC ft X the using I think it was telegram. Was it forms of me of signication? Signals similar idea? Cool? What did they call the name of the chat and how are

we seeing him respond to it? Allegedly wire fraud was the name of the chat with his inner circle, and he did respond immediately on Twitter and said if this is true, then I wasn't a member of that inner circle. I'm quite sure it's just false. I've never heard of such a group. But it's something he may be asked about again in the series of many things he may be asked about. I would say also in the Unusual

Whales podcast, the last question was kind of interesting. They asked him about that that the money he gave to the Block executive, and that is something that he did not answer and hopped off the podcast at that point.

For so between the lawmakers that he had given money to as well as the media organizations, he might get a lot of questions about the type of influence he was trying to wield and why I know what the three of us are going to be doing on Tuesday Bloomberg Sinnali Basset, thank you very much, noise by the rich world were expecting. So today's going viral is Elon Musk's own appearance and a Dave Chappelle and Chris Rock

show in San Francisco. Now the billionaire was brought on stage wearing an I Love Twitter t shirt to some pretty mixed applause. As you heard, they're actually it was booze that generally took over. Must didn't have a chance

to speak. It was practically bood off stage, and the video was taken by someone who snuck in a camera to the event, posted on Twitter before the account suddenly got deleted because Mono reported Matt Novac posted it on YouTube, and in a tweet, Must wrote, technically years and ten percent booze except during quiet periods, but still that's a lot of booze, which is the first for me in

real life. Frequently, in case our audience Karro couldn't hear, I just want to point out very quick that Dave Chappelle was saying that some of the people booing were perhaps those that Musk had fired from Twitter. That was what he was saying on stage. I mean, it's comedy is always very edgy and close to the line, isn't it end? But I have to say it felt like that perhaps has a bit of a come up and spree lunch. Yeah. I mean it's hard to know what to say is funny or not funny, but clearly there

was a strong reaction there. Well, that does it for this addition of Bloomberg Technology, tell us your thoughts on Twitter. But tomorrow we have Parallel Alter Network CEO. This has boom there