Scott Galloway · 23:37
Because typically when you have brands with this type of equity, you don't want to pollute them. Right now Facebook has some baggage. Instagram and WhatsApp are pretty clean brands. And Facebook's an amazing brand because of its ubiquity and it does have a lot of positive associations associations and people interact with it every day. But there's some baggage there, right? Facebook has been dented and banged up and creating sort of this master brand or sub brands, turning WhatsApp and Instagram into sub brands, it usually would go the other way. And so, this doesn't make business sense, except that what it does is it does two things. One, it outs Mark Zuckerberg as he clearly thinks Facebook is kind of the lead dog here and it's really all he cares about and he doesn't have nearly the affection for the other brands to the extent he's willing to damage billions in brand equity. But two, I think there's more Machiavellian than that, and that is I think he's trying to again conjoin the triplets and make them one entity such that if and when the FTC and the DOJ get their act together and come in and talk about breaking them up, he can say, well, if you try and separate us now, you're gonna kill the entire baby. So, they're trying to pull things together such that they can claim, well, the spaghetti can't be unwound, otherwise you'd kill the entire company. I think this is a prophylactic move against antitrust, I think the DOJ.
Kara Swisher · 24:52
What about as a brand move? What is your thoughts
Scott Galloway · 24:53
Oh, on the brand It's really stupid. These are such powerful brands. These are global brands. Each of these brands is probably one of the 20 or 30 strongest brands in the world right now. And the idea that you would make them less distinct and create that, do away with that diversity of asset base is just, it's just, it's heresy in the world of branding that you would take three amazing brands,
Kara Swisher · 25:15
And mush them together.
Scott Galloway · 25:16
And mush them together. It's just just weird. It's like, I I don't know what the equivalent would be. It's like Lexus or Toyota saying, we're just gonna call it the Toyota Lexus. I was like, well, this has a distinct identity and a ton of brand Why would you start polluting and confusing both brands? So, it makes no sense from a business standpoint. I do think Mark Zuckerberg is a brilliant businessman, and I think he's decided that the brand equity that they will sacrifice is outweighed by his ability to claim that they're one company and you can't break us up. What So, do you
Kara Swisher · 25:46
think it's a fail. What is your fail of the week? I agree. I know why he's doing it. I think it's a bad idea.
Scott Galloway · 25:52
That's my fail. I think it was, you know, I think that Facebook brand, like, it's a lesson in really poorly managed brand architecture. It just doesn't make any sense. And I the FTC and the DOJ send a letter going background saying, just because you've decided this is one brand doesn't mean we're not gonna come in and break it up. Should we decide that's the right thing
Kara Swisher · 26:11
to Yeah. Think that was one of the things that obviously, also this week, Facebook wrote to Congressman David Siciline that TikTok is a serious competitor, and that in 2018, it was installed more times than either Facebook or Instagram. And obviously, Sicilyne, who's gonna be on the podcast soon, is one of the Democrats who's thinking about whether Facebook should be broken up. So they're now trying to make a competitor. Like, that's... Again, that was a fail to me. Like, ugh, Facebook. You really have to stop. Like Yeah. I see what they're doing, but they're they're definitely making moves because, you know, the government is moving in on them.
Scott Galloway · 26:41
Yep. A 100%. What's your what's your fail this week?
Kara Swisher · 26:44
Fail this week for me is the the activity around Google, the accusation that Google's traitorous again that continues by the Trump administration via Peter Thiel. And they were pushing the idea. They're gonna... They're investigating Google because they discriminate against right wing employees, and they focused on a right wing employee, Kevin, Cernyky, who who was, of course, was on Fox News, which got Donald Trump's attention. You know, and then he started on the suppressing negative stories about Hillary Clinton and trying to undermine him, and I just think this is just I am not a defender of Google most of the time, but in this case, it's ridiculous. It's a ridiculous attempt to do business via politics.
Scott Galloway · 27:26
Well, and this got overshadowed again with all the mushroom clouds and dumpster fires everywhere. But supposedly Trump is considering an executive order around these platforms, an executive order to try and diminish or to try and reduce the amount of conservative bias. It's like, okay, what's that gonna look like? I mean, wanna talk about our heads start spinning around First Amendment and censorship when the president's gonna put out some sort of executive order He's not gonna work. Yeah, I can't imagine the mechanism. I just don't see how on earth that would happen. Well,
Kara Swisher · 27:59
the fact that he's doing it, it's like between Fox News and Peter Thiel, this is just insanity. So, you know, again, to defend a giant company like Google is not my easiest stance. But in this case, I think it's just... It... That that... The executive order to do that without any proof whatsoever except for this idiot who worked at, Google who, you know... Whatever. It's not... I'm sure it's not great to be there at your... At at the Kombucha social hours if you happen to love Trump. I I'm... Yeah. So what? Yeah. Like, so what? Work somewhere else or just, you know, say your piece and then argue with people. But this idea that he was discriminating against just because he doesn't... You know, the... There's such talk about, like, snowflakes. They're just snowflakes. I don't know what else... That's what they use, the term snowflakes. So, that was a fail for me this week, and I don't I don't know where it's gonna happen, but it must be very concerning to Google. It has to be very concerning.
Scott Galloway · 28:48
Do you have a win?
Kara Swisher · 28:49
A win, yes. I actually, it's something I just... I tweeted about last night, the Beanie Friedman. Did you see Book Smart? I love Book Smart so much. I'm so sorry it didn't do better. But she's an amazing actress. She just holds the screen like nobody else. She's also from Lady Bird and Book Smart, and she's gonna play Monica Lewinsky in season three of American Crime Story about Bill Clinton's impeachment. And Monica Lewinsky is one of the producers. I just am so excited about that. Don't get excited about that much television, but I think it's great.
Scott Galloway · 29:17
Nice. Nice.
Kara Swisher · 29:18
Yeah. You have to see Booksmart. What's your win?
Scott Galloway · 29:20
You know, it's funny, on the way over here I was trying to think of a win, and I don't have a win and I feel like it's my right not to have a win. My question is, it's strange, do remember when nineeleven happened, there was a pretty large cohort of people that had serious anxiety or couldn't fly? I never understood I was here when it happened, I thought, okay, if you know someone that was hurt, or actually no one was hurt, people were murdered, very few people got injured. Either survived or they were killed. But it sent a large portion of people into a funk, right? Which is understandable, but I never really understood that. And these shootings
Kara Swisher · 29:51
And you lived in New York, you weren't in a funk? Everyone I knew in
Scott Galloway · 29:54
New Oh, saw the buildings come down. Mean, And was right I just, I know that sounds terrible, I just, I thought it was obviously tragic, but it didn't put me into any sort of depression or cause any anxiety. And this shooting, I don't know if it's because I'm getting older, but these shootings this week have really sort of rattled me. And I'm trying to figure out, is it the age, is it having kids, is it finally developing an overdue sense of empathy? What is it about events? And I would love to find who the premier psycho, what is it about certain events that you're not close to have an impact on you versus those that don't? But this, it feels like this one was different. I don't know why. Was it for you? Did this, has this
Kara Swisher · 30:35
laddle you? No, it's just an ongoing feeling of depression over the fact that this is I don't know if it's depression corrected, that this just doesn't end. It gets ratcheted and ratcheted up, and you are constantly pushing back on what is, you know, racism, like, you know... And then you have a group of people, like, I don't know, like Tucker Carlson, for example. Woman who's just such a...
Scott Galloway · 30:57
Here we go. We're
Kara Swisher · 30:59
on He's gone a fishing. He should stay fishing. Who are just like, there's no such thing as this. And when it's so clear that it is, you feel like you're being propaganda, being manipulated. You feel like you're living in Soviet Russia.
Scott Galloway · 31:11
Yeah. And you know how I address and fix my depression? How? Equinox. Here's the thing, Kara. A species Enpromise. As a species, we are
Kara Swisher · 31:22
happiest Hottest old white man.
Scott Galloway · 31:24
We are happiest when we are in motion and surrounded by people we love. And I wanna give a shout out.
Kara Swisher · 31:29
And as you said, you still have back fat.
Scott Galloway · 31:32
Nonetheless. You go. Back fat. You know what? When I go to Equinox three times a week, I look fifty three and seven eighths nude as opposed to just 54. It's working. It's working. But a shout out if you're feeling depressed like me, it's really easy. Get outdoors, exercise, sweat with people you love. That's where we are happiest as a species. I'm not
Kara Swisher · 31:52
at Equinox or Soul Cycle. As Christy Teigen said, I'll meet you at the library with weights.
Scott Galloway · 31:56
I'm going I'm going boogie boarding with my my eight and 11 year olds. Truth be told, we might be chum. We might be a little tasty snack. And, oh, by the way, what great timing. Can't turn on a TV and see a great white shark, like, eating the shit out of a seal that looks like a little boy in a wet suit. I am a mess, but I am going to go into the water and go boogie boarding with my kids this weekend.
— Predictions segment begins —
Kara Swisher · 32:19
Well it's lucky most people in the world have a worse life than you. Any predictions this week Scott?
Scott Galloway · 32:23
Oh shame me. I feel so shame. Oh my God I'm enjoying my life. Yes, So you know
Kara Swisher · 32:29
there's immigrants down in Texas that are being mistreated. But I'm so upset for you that you can't work I'm out so glad. Anyway, what is your predictions? I don't mean to Equinox shame you, but I think I will for several weeks.
Scott Galloway · 32:42
Well, talked about... So I like... There's... I always talk about stocks that I don't... That I think are gonna get cut in half, but the stock that I really like now and I'm looking at, if you will, or thinking about... Only buy stocks that I can give to my kids, is a stock we've talked about, and I think a stock to watch is the real real. Went, they have Julie. Oh yeah, I think this thing is a juggernaut. I think if you look at some of the companies that have created tens of billions of dollars in value, they monetize these fallow assets, whether it's cars or apartments and the real, real is I think there could be something. I think this could be, if you will, a $305,100,000,000,000 market cap company. And I think it's built some moats around it. I don't think their competitors are that strong. There's a network effect, explosive growth using the internet. And they've also similar to what Uber's done, but in a better way, have figured out a way to assemble a group of humans, or organic intelligence. So, my prediction is, we talked about Beyond Meat getting cut in half, and I got a bunch of crap on Twitter for always being Debbie So, I think RealReal is gonna do really well
Kara Swisher · 33:49
this year. I think it's interesting. Julie Wainwright, I covered her for many years, but she had several companies for this, including pets.com where she And got what didn't really make a recovery for a long time, I've known her really well. She's actually coming to Code Commerce in New York in September, so I'll be interviewing her there. But I've known her for a million years and this was an idea. I I put up the email she sent me when she started it. She goes, I've got this kind of interesting idea finally and talked about it and and said you should come visit our warehouse when we start doing it. And so, I'm really happy for her that this has worked out, and it does meet a need that is... It's a nice clean company that does like exactly and a very helpful thing to a lot of people. The whole idea of clothes, and I think I'd like to talk about this next week, the idea of actually owning clothes and how you move what you own around. I'll be writing about that next week, whether you can rent everything, Scott. But it's a great company, you're right, and she's a really terrific and interesting... She's a very interesting and one of the few female CEOs in a tech related company. I'm gonna make a little prediction. Go ahead. The Disney stock getting cut because of the earnings and stuff like that, I think Disney's gonna do just fine. And I'll be really interested when they roll out this...
Scott Galloway · 34:58
It's a great call.
Kara Swisher · 34:58
You know, they've had a bad history on the Internet. So I'm really excited to see what they do around this Disney, Hulu, ESPN stuff and how well they're gonna do it. We'll see. They're really great in content. They have seven of the top, what, 10 movies. I think the worries about them are premature.
Scott Galloway · 35:15
A 100%. I I like your prediction more. And I don't know if you saw, but yesterday announced they're moving towards this grand bundle. They're bundling Disney plus ESPN and Hulu ad supported Hulu for what exactly twelve ninety nine, the same price as Netflix. So they're moving towards this grand bargain prime life offering which is absolutely they should way to get the way to go. But yeah, I like your prediction more. Think that I think the market got wrong was off 5% after the earnings call because let's be honest, this bundling and recurring revenue bundles are just extraordinarily expensive, but I agree with you. I think it's gonna come back.
Kara Swisher · 35:48
Have had not much success on the internet. I've written about all of it. Dig and everything else, but and they had that thing called Starwave, they had all kinds of, they just had them. They've never really been that successful in internet offerings, but I have to say Bob Iger has been early to it. He's been trying at it, and I think he's... He will get it right. If there's any if there's any media executive who will get it right, I think it will be him.
— Predictions segment ends —
Scott Galloway · 36:08
Is... A 100%. And where are you this week, Cara? Where is...
Kara Swisher · 36:11
I'm on the cape with the sharks, and l don't go swimming that much, so l'm totally safe.
Scott Galloway · 36:16
Yeah.
Kara Swisher · 36:17
L also did the Bill Simmons podcast, and l'm trying to compete with all your podcasts. You're doing with other people. You're cheating on me, so l cheated on you with Bill Simmons, who was brilliant, and also Jon Lovett last week. So I was around.
Scott Galloway · 36:30
I know, but that's like, okay, I go play tennis with my friends and you go to Wimbledon. Bill Simmons and Jon Lovett, those...
Kara Swisher · 36:37
But we're gonna interview a presidential candidate.
Scott Galloway · 36:39
Can't that. Stop
Kara Swisher · 36:41
teasing me. We are. We're working
Scott Galloway · 36:42
with Stop teasing me.
Kara Swisher · 36:43
It's gonna happen.
Scott Galloway · 36:44
It's like when my dad would always tell my mom he was gonna buy her a rabbit coat. That's what we did. That was luxury item in the Galloway household, a rabbit coat. And we never did. We're still waiting on that rabbit coat.
Kara Swisher · 36:55
You're gonna have a rabbit coat, Scott Galloway. I am gonna get you a rabbit coat. We're gonna have such a good time, and you have to, like, behave and ask good questions.
Scott Galloway · 37:01
Good What's the point? What's I'm 54. I'm an atheist. I'm economically secure. I have a core group of people who love me. What the... What's the point of behaving? Ruth Bader Ginsburg, Muhammad Ali, Kurt Cobain, my heroes all have one thing in common, circle slash behave.
Kara Swisher · 37:17
Alright. Okay. Alright. On that note, have a beautiful time. I'll talk to you next week. Have a... Try to be careful when you swim and try not to wear bright colors and kick with your little feet because you are
Scott Galloway · 37:28
Shark bait.
Kara Swisher · 37:29
Shark By the way, you know what? We have done so much crap to sharks. I'm sort of No, like no,
Scott Galloway · 37:33
it's terrible. There's a lot You There's a big pushback against Shark Week for being so sensationalist when the bottom line is for every individual bitten by a shark, about a 100,000,000 sharks are killed by humans. Yeah.
Kara Swisher · 37:45
We've fucked with sharks. Yeah. And I feel like they're tired of it. In any case, I don't want anyone to get bitten, obviously, but sharks have had a harder time than I think people have most... For the most part.
Scott Galloway · 37:55
We feel for the sharks.
Kara Swisher · 37:57
Feel we're feeling very lefty this week. Yeah. Anyway, today's show was produced by Rebecca Sinanis and Eric Johnson. Eric Anderson is Pivot's executive producer. Thanks also to Rebecca Castro, Drew Burrows, and Nishat Kerwa. Make sure you subscribe to the show on Apple Podcasts. If you like this week's episode, leave us a review. If you have any suggestions for what you wanna hear us talk about on a future show, probably we won't listen to them, but send us an email pivotvoxmedia dot com. Thanks for listening to Pivot from Vox Media. We'll be back next week with another breakdown of all things tech and business.
