Pivot · Jul 31, 2020

The surprises at Big Tech's antitrust hearing, Snap's first diversity report, and a scary prediction for parents of college students

Automatic transcript of the end of the episode, from 43:02. Speakers are labeled by software and may contain errors. Highlighted passages are Scott’s predictions.

Scott Galloway · 43:02 Overseas the... It no longer sits on the iron throne of Westeros, just one of the seven realms. And, unfortunately Let Kara Swisher · 43:07 me ask you something. Why don't people... People kept asking why aren't Scott and Kara here asking these questions? And let me just say, we are correct about this. Everyone will win if they break... If they Scott Galloway · 43:16 spin dangerous thing. We enter into this construct or this rubric or this gestalt of should we pun... Kara Swisher · 43:22 Gestalt. That's something go, Clark. Scott Galloway · 43:24 Go ahead. Ask ourselves, are they bad companies? Are they bad people? And do they deserve this punishment called antitrust? No. Let's assume they're good people. Let's assume they're good companies. And you know what we're going to do? We're going to turn them into great companies and oxygenate the entire marketplace. PayPal and eBay weren't bad people. Now PayPal's worth 13 times more than eBay, and there's more jobs, and there's more entrepreneurship, and there's more fintech. And American an American financial services or in... Fintech company is kicking the shit out of Ant Financial and any London fin... Antitrust... Think of it this way. Antitrust is Kara Swisher · 44:00 It's good Scott Galloway · 44:00 for America. Reward. Congratulations, We are pro You're amazing. Kara Swisher · 44:05 We're good for America. Scott Galloway · 44:06 You're jacked. Yeah. We're breaking you Kara Swisher · 44:08 up. Yeah. What are you gonna make next, Jeff Bezos? Let's make something new. You know, it also frees them. I think that just carrying around this giant burden of, like, the bigness, I think it's never good. You don't become good. You lose your touch with people. I think these are entrepreneurial people. Each and every one of them is an entrepreneurial person. And so it it bring... It drags them down, and they're constantly facing Washington and and consumers eventually. And so I agree. Oxygenate versus neutralize. Scott, that is our goal. Why don't people listen to us? We're brilliant. Scott Galloway · 44:37 I think they may listen to us too much. Kara Swisher · 44:38 Real quick before we go to another break, I also wanna mention an email we got from Andrew in Menlo Park. One thing I have not heard Scott comment on is whether Whole Foods as an acquisition was a smart move for Amazon pre and post COVID nineteen. No doubt. He has a view. Scott Galloway · 44:55 So at a minimum, they got about 500 well lit, well staffed warehouses. They've learned more about grocery. They've learned a lot more about private label. I think what's interesting Kara Swisher · 45:05 They haven't bought Penny yet, like you predicted. We're gonna get to predictions in one second. Scott Galloway · 45:08 I think what's interesting about Whole Foods was they underestimated the supply chain challenges of of replenishing stores. And Yeah. It's... They've hit more hiccups than you would have thought. But I think Whole Foods was a Mhmm. I mean, I just still love Whole Foods. I think it's amazing. A lot of people want to go back to the old Whole Foods. Some people, including you, have said that some of the quality has diminished. I went to the Whole Foods in Hudson Yards, and I thought, I'd like to live here. It's just so nice. They just do such an incredible job. It's a Speaker · 45:36 nice store. When you think about it it is. Kara Swisher · 45:38 Although I have to tell you, the workers still look more unhappy than they used to be. They used to be jolly. You sure not jolly. Scott Galloway · 45:44 Five years older. That's what happens to all of us. Don't we all start to look less happy? I'm not fucking miserable lately. It's got nothing to do with my mood. Kara Swisher · 45:51 You know, they work for gravity. And anytime you mention Amazon or Jeff Bezos, they give you, like... They they sort of blink at you, like, get me out of here. Like, that kind... That's like they're they're prisoners. It's like, you know, it's interesting. They just will not engage with you on... Like, couldn't go, yeah. I love Bezos. They're like... Scott Galloway · 46:08 For 12,000,000,000... I'm gonna this. $12,000,000,000 Mhmm. Or what is that? At this point, you know, when they bought them, it was like a 2% dilution. And not like that. Mean, what company, and this is again another data point on why they're too powerful, what company, whenever they announce an acquisition, the stock price goes up enough where they've paid for it? They basically can go shop on the other companies' credit cards. The the rest of the industry goes down. Their market cap goes up whenever they announce an acquisition, so they get to go shopping for free. It's like, okay. I get I get mom's credit card whenever I want. It's just... They... These guys are just way... We are so overdue. But, again, it's their reward, Kara. We like them. We like them. Kara Swisher · 46:46 Yes. Yes. Maybe we should we should maybe, you know, tongue bath them a little more to get them to do what we want. Tongue bath them like you do with your anchormen. I mean, honestly, Jesus. Okay. That's enough. Okay. One more quick break. We'll be back for predictions. Speaker · 47:08 Chronic migraine is 15 or more headache days a month, each lasting four hours or more. [Ad break] Speaker · 48:02 Why wait? Ask your doctor, visit botoxchronicmigraine.com, or call 4 to learn more. [Ad break] — Predictions segment begins — Kara Swisher · 48:35 Okay, Scott. Predictions. As I said, you were... Amazon is not boss, JC Penney. There's several you have been waiting for to happen. So give me, give me a prediction. Scott Galloway · 48:45 So somewhere between eight and eleven million households are about to receive a letter in the next seven to fourteen days. No. From some of the most thoughtful, people who have ever worn bow ties, some of the most overeducated people in America are gonna be sending letters to Kara Swisher · 49:04 Oh, you're killing me, Scott. You're about to do this to me, aren't you? Scott Galloway · 49:06 Are gonna say out of an abundance in a... An abundance of caution Speaker · 49:11 Oh, no. Scott Galloway · 49:12 We are not... We are asking that your child not return to campus, and we are going all remote. Because over the next fourteen days, checks or tuition deposits are about to be cashed. Kara Swisher · 49:24 I already paid. Scott Galloway · 49:25 And the consensual hallucination between the finance department of universities, the leadership, and parents that we're gonna be able to open is is gonna end. And it's going to largely be based on when the university gets all the deposits and cashes them, because the last thing they've decided to do, unlike every other industry that's challenged, is they are constitutionally incapable of actually cutting costs. And so we're about to see what I call the great recognition or the great sobriety across universities. There was an interesting article in The New York Times talking... Kara Swisher · 49:55 You know Louis listens to this podcast, you're killing him. Scott Galloway · 49:58 You're killing Louis. Louis is a little bit different because New York is a different situation. Argue, and I wanna say it's also situational. Yeah. But the notion that we are gonna take the downside risks of being the cruise ships in the nursing homes of this next phase of the coronavirus... Kara Swisher · 50:12 There's stories about it coming from oncologists. They come from colleges. Scott Galloway · 50:14 And that was summer. There were 6,000 outbreaks. Oncologists during this summer when no one's there. Anyways, this is... These are thoughtful, responsible people. They're subject to the same financial, you know, the same financial worries and denial that we all enter into because we live in a capitalist society. But we're about to send out... And I I wanna be clear. I don't speak on behalf of any university. I have no insider information at my university or anywhere else. But if you just do the math here, if you just do the calculus to to be the be the institution that says, hey, come take our our college town of 40,000 people and send 20,000 asymptomatic super spreaders here, and we're gonna pretend to have some sort of normalcy, that is just... It's it's literally the opening scene of contagion two. Kara Swisher · 51:03 Alright. We'll see. Scott Galloway · 51:04 Of letters out of an abundance of caution, and the kid is staying at home. Kara Swisher · 51:07 I don't care about the people that already had college, Scott Galloway · 51:09 but gonna charge you the same. The thing that'll stay the same is the tuition. — Predictions segment ends — Kara Swisher · 51:13 I paid that bill. Although I had one of those $5.29, so I don't even know I had the money. You know what? I put it away a hundred years ago when Louise made it. Scott Galloway · 51:19 '29. You're so responsible. Kara Swisher · 51:20 Thank you. I do... Was I... I was glad Scott Galloway · 51:22 I lesbian relationship handles the $5.29. Speaker · 51:25 Kara Swisher handles get Scott Galloway · 51:26 much more interesting. That's the first one. Kara Swisher · 51:28 Swisher handles Scott Galloway · 51:29 First of my least interesting questions on lesbian Kara Swisher · 51:32 hands all... I I control the money, Scott. That's what I do. Scott Galloway · 51:34 You're the money. Kara Swisher · 51:35 Control the money. Scott Galloway · 51:36 You're exceptionally productive. I'm convinced you don't sleep. Kara Swisher · 51:38 I am. I don't sleep. I don't sleep. Not at all. Speaker · 51:41 But I like I like the way I am. Kara Swisher · 51:42 In any case I like Scott Galloway · 51:43 the way I am. Kara Swisher · 51:45 I mean, I'm not friends and anchors. There's some Scott Galloway · 51:47 good side. Like that prediction. The way I am. Kara Swisher · 51:51 I like that prediction. I like that. I don't like it, but I like it. I like me. No. I really do like me. Scott Galloway · 51:56 Yeah. Know. We get that. We 100% believe you. We 100% believe you. Kara Swisher · 52:01 You don't like you, but you like you, if that's... If I can say it that way. Scott Galloway · 52:05 Yeah. But I hate myself less and less every day. Kara Swisher · 52:08 Yes. But you really like yourself too. Scott Galloway · 52:10 Well, anyways, let's let's say this Kara Swisher · 52:12 in a little bit. Complex. Anyway, we'll we'll delve into it in our three hour long Listen. Scott Galloway · 52:16 The level of me liking myself or not liking myself is dependent entirely on one thing. Kara Swisher · 52:21 Tequila. Scott Galloway · 52:22 Vodka. Oh my god. You're stealing my humor. You're stealing my humor. Kara Swisher · 52:26 I picked the wrong liquor choice. Scott Galloway · 52:28 Me. You get me. Kara Swisher · 52:29 I get you. Now listen. Jen, I started Scott Galloway · 52:31 to hate myself. Tequila. I'm gonna sort of miss you. Dance, which is bad for all of us. Kara Swisher · 52:36 Let us tell our listeners Scott Galloway · 52:37 what's happening. Like me. Vodka Kara Swisher · 52:39 like me. In the next four weeks of regular pivot, the twice a week, we have guest hosts. But we're going to have five pivot school episodes. So Scott's not really going away even though he wanted to dig the month of August off. Kara Swisher is gonna be doing Scott Galloway · 52:52 they pull me back in. Kara Swisher · 52:53 Oh, yeah. You wanted to do this. This was... You're thrilled that it sold so many tickets. Listen to me. There... There's there's there's... Regular pivot's gonna happen and... Which I'm gonna have guest host, and I'm gonna work, you know, as usual as hard as ever. And Scott's gonna take the two off for the week, and then we're gonna be in Pivot School once a week. Just so you know, we have a lot of guests, like, guests for Friends of Pivot. Some of them actually that I'm asking are like, I wanna wait for Scott to get back. There's several people that are well known that are like, oh, no. I want Scott. So So just so you know, feel good about that. They were like, they don't wanna Scott Galloway · 53:22 get luxury brand or not that I'm a luxury brand is scarcity. Yeah. Kara Swisher · 53:25 Yeah. They were like, no. I wanna tangle with Scott. Not the Twitter people, but they wanna tangle with Scott. And I'm like, sure. That's no problem. Tangle. Okay. But make sure to tune in next week. Scott Galloway · 53:33 Breaking news. They wanna at my phone because I can... I'm I'm a little bit bored. So Right. Herman Cain just died from COVID nineteen. Kara Swisher · 53:41 Oh, no. That's sad. Scott Galloway · 53:42 That is sad. I was on Fox Kara Swisher · 53:44 with Herman Cain. Have gone to that Tulsa rally without a mask. Sorry. It's just terrible to do that. Wear your mask, dude. Scott Galloway · 53:49 Really... That is so Wear That is actually Your That's a big deal. Kara Swisher · 53:53 Mask. It's not a joke. It's not like Louie Gohmert. Screw him. He should wear... He got people to see the possible Let me just say, wear your freaking mask. This is where it leads, unfortunately, especially if you have other issues. Just wear your masks, please. Don't be a mask Scott Galloway · 54:06 hospitalized for earlier this month. Yep. Coronavirus. Kara Swisher · 54:10 You know? And also, the national security adviser has COVID. I mean, honestly, wear your freaking mask. Scott Galloway · 54:15 Really worried about, Kara? What? Going off script here. I'm really worried that in The United States, we always turn to technology for some sort of silver bullet solution because we're lazy, and I really worry that our dependence and reliance and cold comfort from the notion of a vaccine is gonna reduce our discipline around non pharmaceutical intervention, specifically wearing a mask and distancing, America... Kara Swisher · 54:41 New studies coming out showing it really is effective. Scott Galloway · 54:43 Well, not only that, but think about World War It was a race it was a race to splitting the atom. Whoever got the bomb was gonna win, but we didn't stop building b 24 super fortresses. We didn't stop fighting on the beaches of Normandy. This is our enemy. We gotta go after this thing. And we didn't say in World War two. Oh, that's It's Kara Swisher · 54:59 the least you can do, people Scott Galloway · 55:00 in America. World war two. Oh, wait. The enemy is a decline in the Nasdaq. Let's spread money all around. We asked people for money, and we went after this fucking thing. Speaker · 55:08 I mean, let's let's let's flare a Scott Galloway · 55:10 war on this thing. Kara Swisher · 55:11 I'm sorry. I... I'm sorry about Herbert Cain. That's sad. But, make sure to tune in Tuesday because congressman David Cicillini will be our friend of Pivot. We're looking forward to having him on the show. Scott Galloway · 55:20 President of Cicillini. Kara Swisher · 55:21 That's right. He's coming on. He's a badass, I have to say. But next week on the podcast, Scott Galloway · 55:25 I'll be good. Placing Kara Swisher · 55:26 Scott, he was good. Next week on the podcast, he'll be emperor thing. Scott Galloway · 55:29 That guy's not from Rhode Island. He needs to stop flying. Kara Swisher · 55:31 He's from He's from Rhode Island. Scott Galloway · 55:33 That guy's such Kara Swisher · 55:33 a Rhode Island name. Scott Galloway · 55:34 That guy's from Ronkonkoma, not Rhode Island. Kara Swisher · 55:36 He's from Rhode Island. Scott Galloway · 55:37 Yeah. That guy's from Rhode In Kara Swisher · 55:39 any case, Scott, I'm going to disappear him, and our friend Stephanie Rule from MSNBC will be the guest host for next week. We have a lot of great guest hosts coming. Scott Galloway · 55:48 Allowed to do anything with Stephanie without me. I am. It's a throbault Kara Swisher · 55:51 for guys' sex. We're we're we're... I... You know what? You have your anchors. I have my anchors. We can't get rid of them. On Tuesday, August 4, our first Pivot School. Now is your last chance to get tickets. We have people coming. Scott Galloway · 56:03 2,000 people. Kara Swisher · 56:04 Thousand. Let's get to 3,000. 5,000 would be better. Just go to pivotschool.com. Don't forget, if there's a story in the news that you're curious about and wanna hear our opinion on, email us at pivot@voxmedia.com. We might read your email on the show. We've got quite a few this week. Scott, please read us out. Scott Galloway · 56:19 Today's episode was produced by Eric Johnson. Fernando Finite engineered this episode. Erica Anderson is Pivot's executive producer. Thanks also to Drew Burrows. We have an enemy. We have turned back fascism. We have arrested the march of HIV. We have turned back some of the most formidable foes and enemies in the history of mankind. There is American ingenuity. There is American courage. There's nothing wrong with America that can't be fixed with what's right with us. Let's show this thing our medal. It's not too late. Distance, mask, concern for one another, empathy, masking, distancing. This is our enemy. Let's show this thing what we're made of. Kara, have a great rest of the weekend. Kara Swisher · 57:01 Nice, Scott. Thank you. Nice. Don't be a mask hole. [Ad break] Scott Galloway · 58:01 See store [Ad break]