Scott Galloway · 27:43
You wanna get close to processing power. You wanna get to a city. You also... If you have the ability to be in the business of creating mass consumable differentiated content, it is a great time to be you. I don't know if you're a gaffer. I don't know if you cater movie sets. But, you know, when you and I have been approached about doing TV shows... And when they're coming after Cara and the dog, it means there's too much capital swashing around original script and television.
Kara Swisher · 28:09
Did you get to meet Jennifer Aniston? Was she there?
Scott Galloway · 28:11
I didn't. I saw her, I saw Reese Witherspoon. I was too intimidated. Tim Cook was there.
Kara Swisher · 28:15
Yeah.
Scott Galloway · 28:15
But it was... You know, they they screamed it.
Kara Swisher · 28:17
Environment like that is weird.
Scott Galloway · 28:19
You could just tell he's uncomfortable. He's way too
Kara Swisher · 28:21
He likes to talk about football.
Scott Galloway · 28:23
Well, he's not having a midlife crisis. He's Bezos wanted to be there smiling
Kara Swisher · 28:26
He really just wants to talk about football, really, whenever I meet him.
Scott Galloway · 28:28
He's so damn likable. He's got good hair, and he seems nice. And anyways... But I saw him. That was my celebrity siding.
Kara Swisher · 28:35
So you were at a premiere?
Scott Galloway · 28:36
I was at a premiere. I put on a tie. Did you? The dog was looking good. Were you? I was looking good. Yeah. I showered.
Kara Swisher · 28:41
I'd love to see you at these premieres. You... You're very shy. People don't realize you're quite shy.
Scott Galloway · 28:45
Well, I'm I'm paid to be an extrovert, but the reality is when I'm off mic, I don't want to talk to fucking anybody.
Kara Swisher · 28:49
Yeah. That's true. You are. It's interesting. I will talk to anybody.
Scott Galloway · 28:52
I'm complex. I'm quite an extrovert. I'm a very So many layers to the dog take.
Kara Swisher · 28:56
Alright. In any case, let's... Listener mail. So we got an email question from the listener Michael Swain about an article that was written on our sister site, The Verge. The article looked at a new bill introduced by some big Silicon Valley critics this month that's meant to undercut social media monopolies. The augmenting compatibility and competition by enabling service switching act... Access is designed to make large communications platforms loosen their hold on user data. Senator Mark Warner introduced the bill last week as part of an effort to rein in big plat form monopolies. We reach out to the writer of this article, Addie Robertson, to sum up the bill and how it might play out.
Speaker · 29:32
Access is a bill that's supposed to promote interoperability between big platforms and their competitors. Interoperability is the idea that if you're a giant platform like Facebook, you should create tools so that competitors can interface with your service. But it's supposed to make sure that competitors can access the giant user bases and backlogs of data that giant platforms have already amassed. The Access Act tries to make clear that companies are supposed to preserve privacy. They're supposed to not use data in any untoward ways. But if this does pass, then it's going to raise really big questions about how you would preserve security when you are swapping data across services and how you make sure that bad actors don't get access to these systems.
Kara Swisher · 30:24
That's interesting. So data
Scott Galloway · 30:25
portability interesting. That was boring.
Kara Swisher · 30:27
No. It was not. Came up with
Scott Galloway · 30:27
that clip.
Kara Swisher · 30:28
Listen to me. Listen. It is interesting. No. Data portability is really important, the ability to move services. But these big companies have already amassed so much data. There's no way rivals can compete. It's actually critically important. Very fascinating, Bill. You're absolutely wrong. So can people tap into what Facebook or Google has already compiled and create new businesses? So it could potentially be a font of innovation so that you don't... There's no way these companies can compete or create what you were saying, different choices in average... Online advertising Yep. Without access to this data. And so how do you do it right is a really important thing. And secondly, the ability to do it is a big deal. Thank you.
Scott Galloway · 31:02
And not only that, legislation that's difficult and hard and you can imagine writing this thing took a ton. I'm a big fan of Senator Warren. Depending on how you categorize or qualify this statement, somewhere between 49% of our elected officials have a background in engineering or technology. Senator Warner is one of them and he's very thoughtful. I got the opportunity to spend some time with him. His questions are right on. He seems very interested, really wants to understand the stuff and I think a lot of our elected officials who are clearly very smart, clearly have good instincts, clearly have resources, Quite frankly, they don't want to take the time to write this kind of legislation because it's hard. I mean, it's really difficult But it's to the time to do
Kara Swisher · 31:39
actually really important. This a bill like this is critically important to allowing competitors. And we do have to safeguard against privacy issues of moving this data around. But Mark Zuckerberg talks only about data portability, not that he has to turn over the data he collects to competitors to let them build businesses.
Scott Galloway · 31:56
I get it. This is important. Kudos to you. At the end of the day, though, it solves a fraction of the problem. We need to break these companies up because right now it's, I'm pissed off at Facebook. I'm taking my data to Instagram. Mean, just
Kara Swisher · 32:08
It's not taking your data. It's actually letting rivals build businesses off this data that never will be compiled again.
Scott Galloway · 32:14
So you own your data and you can begin... When you when you fire up another service, you would have your friends fire up
Kara Swisher · 32:20
in your contact Billy. Data... This is talking about the ability of some com... Some company x decides to make an actual competitive search service, they can use data from Google. They can use Google's data in a way that they can create a new business. I think it's a great idea. I think it's a great bill.
Scott Galloway · 32:39
I think theoretically it is. Do you think all of a sudden across America, venture capitalists are going to start finding
Kara Swisher · 32:44
Well, at least it gives them, like, literally. I've interviewed just today Alexis Ohenian, Ben Horowitz. Never going to invest in a social media company again because of And
Scott Galloway · 32:52
do you think that changes as well?
Kara Swisher · 32:53
Yes. Does. If people have more stuff. Right now, big companies are hoarding all the data. Let's use their data to create competitors, and maybe we don't have to break them up. I I I... You know? I don't know. It's... I I think it's a great bill. You're... It's complicated, which is why it's difficult, but I think
Scott Galloway · 33:08
it's great. Agreed.
Kara Swisher · 33:08
Alright. So wins and fails. Wins and fails.
Scott Galloway · 33:11
What's your win, Kara?
Kara Swisher · 33:12
What's my win? Oh god. There's... Jack Dorsey. Just Jack Dorsey.
Scott Galloway · 33:16
Jack. Yeah. Well done. That was a good one. My win
Kara Swisher · 33:18
Jack Dorsey is it this week.
Scott Galloway · 33:19
Is Claudia Lopez.
Kara Swisher · 33:21
Okay.
Scott Galloway · 33:21
Who this week do you know who Claudia is?
Kara Swisher · 33:23
No. Please explain.
Scott Galloway · 33:24
She was elected as the first female mayor of Bogota, Colombia. And she's also a member of the LGBTQ community. Okay. And after decades of abuse, it was especially difficult as most civil wars are on women. There's a wonderful story. Women have decided, have turned to political activism and the second most important office in Colombia, the mayor of their largest city, is now a 49 year old gay woman. And it's a huge, I think it's a really nice victory and her speech was wonderful. It says a lot about the progress of a country that's been war torn and she's now one of the two most powerful lesbians in The Americas. The first, of course, being the senior senator from South Carolina, Lindsey Graham. Anyways, my win is Claudia Lopez. Think that this is a victory for Columbia, a victory for her, and a victory for women. And by the way, what is the number one source of news on lesbian leadership? The dog. The dog.
Kara Swisher · 34:30
Don't call... Don't impugn lesbians by calling Lindsey Graham on. Don't
Scott Galloway · 34:34
do that. That's okay.
Kara Swisher · 34:35
We are not going to take him. He's not tough enough anyway. Anyway, actually, I do have another win. Casey Newton for taking down horrific contract Facebook content moderators. Cognizant is shutting down its moderation business. A few months ago, published a couple of blockbuster stories about contract workers moderating the grimace Facebook content. This week, two of the companies doing that work said they'd stop working with Facebook. Facebook's gotta do this bizwax themselves. If they make a mess, they have to clean it up.
Scott Galloway · 35:00
I get it. I like it.
Kara Swisher · 35:02
So... Alright. What is your fail?
Scott Galloway · 35:05
So, it's not so much as a fail. Just wanted to recognize a guy I went to college with and was actually my attorney at UCLA. Keith Boskey passed away at the age of That's 50 very sad.
Kara Swisher · 35:13
I know Keith.
Scott Galloway · 35:14
You know Keith?
Kara Swisher · 35:15
But not well.
Scott Galloway · 35:17
We had lost touch and reconnected. He was the president at DLD in Germany. Was the president of a video game company and a thought leader on robotics and drones. And the thing that struck me about him, I've never had a chance to meet his wife or his son, Sarah and Kevin, but within thirty seconds, he would begin talking about his son. Oh, I'm a mess.
Kara Swisher · 35:38
Oh, no. I'm sorry.
Scott Galloway · 35:39
Anyways, Keith Boskey, dead of 53. Oh, so upsetting. Oh,
Kara Swisher · 35:44
no. He was a lovely guy. Yeah. Met was with DLD.
Scott Galloway · 35:46
Very lovely guy. That's why that's why I would see him every year at DLD.
Kara Swisher · 35:49
Yeah. He was a fascinating guy. Always interesting. Send me interesting ideas.
Scott Galloway · 35:53
Yeah, man. Nice man.
Kara Swisher · 35:54
I am so sorry.
Scott Galloway · 35:55
That is sad. Right?
Kara Swisher · 35:56
Yes.
Scott Galloway · 35:57
Short, Garrett. We gotta enjoy it. Know what saying?
Kara Swisher · 36:00
Obsessed. Not obsessed. I'm death focused.
Scott Galloway · 36:01
Yeah. So am I.
Kara Swisher · 36:02
You know that.
Scott Galloway · 36:03
It's motivating though. It's nice. I think it can be
Kara Swisher · 36:05
a I... People sort think I'm crazy, but I'm like, no. No. No. It makes me happier when you recognize that we have very short
Scott Galloway · 36:10
time on this planet. Very little time.
Kara Swisher · 36:12
And and everywhere we go, we're gonna hit this whether we like it or not. So I think it's... That was very touching, Faster
— Predictions segment begins —
Scott Galloway · 36:19
than we think. Right? Scott, I've... I'm so... Alright. Let's go to predictions.
Kara Swisher · 36:23
Predictions. Let's get you out of out of this.
Scott Galloway · 36:25
Okay. So there's this artificial the Unicorn Industrial Complex is all about pumping and dumping and trying to create a ridiculously artificial high stock price until the VCs and the institutional investors can sell. And we saw that with Beyond Meat, in that as they only had about 16% of their float. So the idea is only put a small percentage of your ownership out there and then it creates artificial demand, more demand than supply. And then the moment additional shares come out, Beyond Meat goes public at $25 rockets to $250 ridiculous valuation. Mean, just insane valuation. They do a secondary, the stock goes down 20%. The lockup comes off last week, stock goes down again. And now the stock has lost twothree of its value. We're about to see the same
Kara Swisher · 37:16
thing happen at Uber next It seems like Uber is your next thing to talk about.
Scott Galloway · 37:21
Well, Uber doesn't go to zero. There's real value there. But I think my prediction is I think Uber gets cut 20% to 40% in the next thirty, sixty days as the artificially low float goes away and the lockup comes off. And people realize this company is not worth more than Ford. It's a nice company worth 10,000,000,000 to $20,000,000,000 not $55,000,000,000
Kara Swisher · 37:40
Wow.
Scott Galloway · 37:41
Anyway, so demand and the artificially high stock prices created by a minimal float that the investment bankers and the companies manage. At some point, you got to pay the piper. It's happened with Beyond Meat. And by the way, what Uber was to WeWork, so Uber breached the firewall and everyone said, all right, we're not going be fooled again and killed the We IPO. That is what Beyond Meat is to Impossible. Impossible has lined up its IPO. That's not going to happen. Because now that Beyond Meat is crashing to something that reasonably reflects its value, the bankers and the folks at Impossible are going, oh fuck.
Kara Swisher · 38:18
What happens to the businesses then?
Scott Galloway · 38:20
They're nice businesses. They're good businesses. They're worth perhaps billions of dollars but they're not worth more than the entire agra food business.
Kara Swisher · 38:29
Do they get bought?
Scott Galloway · 38:31
I don't know. Not for a long time. They're way too expensive. I mean, I find a decent strategy. I only buy chicken and beef stocks because, Kara, I want to be a billionaire. Get it? A billionaire. That's
Kara Swisher · 38:45
And good he's covered
Scott Galloway · 38:46
in his
Kara Swisher · 38:47
moment of sweet, kind,
Scott Galloway · 38:49
That's good comedy. Now that was just I'm very hungover. Yeah, Okay. Anyway, so my prediction is Uber gets cut 20% to 40% as the lockup comes off and some sort of reasonable valuation. Everyone realizes this thing is not going up, it's going way down and they head for the doors.
Kara Swisher · 39:06
Okay, what does that mean then for IPOs going forward? I'm going to push you.
Scott Galloway · 39:09
We're just going to have a massive recalibration of value in the public markets. It's happening in the private markets. The public markets have been the rational ones. Supposedly usually the retail investors in the public markets are the stupid ones and the private markets are supposed to be the smart guys and it's actually been reversed. Next year will be a very interesting year for IPOs, and we have all these companies delaying their IPOs. Like Palantir will be the most interesting because they benefit from this kind of black box, oh, they're so mysterious. That would be just a fascinating S1.
Kara Swisher · 39:37
All right, let's enjoy that. We will read that together. That would Together, by the fire.
Scott Galloway · 39:41
Yeah. I like it. Reading S1s.
Kara Swisher · 39:44
Just very briefly, the rumors that Alphabet, Google's parent company, might be buying Fitbit was interesting. We'll talk about that next week, the wearable space.
Scott Galloway · 39:53
That's right. I thought that was bullshit, and it ended up I got that wrong. I thought that was a lie, that released by Fitbit, but it looks like, in fact, Google is in fact, in talks to acquire them.
Kara Swisher · 40:03
Anyway, interesting. We will talk about the wearable space next week and so much more. Scott, that I was... I'm so sorry about your friend dying. I really
— Predictions segment ends —
Scott Galloway · 40:11
You know, it's a stretch to say we were friends. Know. Think it's
Kara Swisher · 40:13
it's Still in effect too
Scott Galloway · 40:14
often. Very sad. Right?
Kara Swisher · 40:15
I I I keep... I don't know if you know this. I use the the Weetrock app all... Constantly so I can hear death death quotes all the time. And so I get five of them a day, which isn't... Which I... Everyone makes fun of me. But there's a really good one I got today, which was oddly enough. Liz, live as if you were to die tomorrow. Learn as if you were to live forever. Mahatma Gandhi.
Scott Galloway · 40:35
Oh, that's that's Gandhi?
Kara Swisher · 40:37
That's Gandhi,
Scott Galloway · 40:37
my friend. Robes? Yes. Yeah.
Kara Swisher · 40:40
Yeah. Benjamin Franklin, death takes no bribes.
Scott Galloway · 40:42
That's right.
Kara Swisher · 40:43
Isn't it? And on that note, on Halloween
Scott Galloway · 40:45
That's right. Let's go out. Let's dress up our kids.
Kara Swisher · 40:47
Let's dress up our kids.
Scott Galloway · 40:48
My new rescue dog from Puerto Rico is going as a little wiener dog. It's gonna be hilarious. My 12 year old wants to go as an archer, a mid... A medieval archer. He's way too thoughtful last year when he went as an artist. I wanted to do Star Wars as a family, he said no.
Kara Swisher · 41:03
Okay. And you're going as Scott Galloway?
Scott Galloway · 41:06
No. I go... Every year, go as Starship commander Jean Luc Picard. Huge crowd pleaser.
Kara Swisher · 41:10
Anyway, everybody, thank you so much. We will be back next week. It's time to go. But if listeners have a question or an idea of a company Pivot should mercilessly take down over the next couple months, shoot us an email at Pivot@VoxMedia.com. We're not limited to anything. We love new ideas and companies and and different things. I know we talk a lot about Facebook and Uber and stuff like that, but we were definitely willing to talk about lots of different companies. Also, we're hiring a new producer for Pivot. Scott, give the pitch, please.
Scott Galloway · 41:37
Come come come work. Come work for the jungle cat and the big dog and for the rest of your life.
Kara Swisher · 41:44
Oh, you're not selling.
Scott Galloway · 41:45
Be angry.
Kara Swisher · 41:45
You're not selling it. Anyway, please apply at voxmedia dot com slash careers
Scott Galloway · 41:50
to be
Kara Swisher · 41:51
the right person. We need to have snacks to join the team. Scott, please read the credits.
Scott Galloway · 41:56
Oh, good. Oh my god.
Kara Swisher · 41:58
Find the script, Scott.
Scott Galloway · 41:59
Do you
Kara Swisher · 41:59
want me to start? Today's show was produced by Rebecca Sinanese. Try to get there.
Scott Galloway · 42:04
Erica Anderson is Pivot's executive producer. Thanks also to Rebecca Castro, Drew Burrows, and Yashat Kerwa. Make sure you've subscribed to the show on Apple Podcasts. And if you like this week's episode, leave us a review. Thanks for living in to Pivot from Vox Media.
Kara Swisher · 42:19
Oh my god. I can't
Scott Galloway · 42:21
What did I say?
Kara Swisher · 42:21
Living in.
Scott Galloway · 42:22
I I got that wrong?
Kara Swisher · 42:23
Yeah. It's listening.
Scott Galloway · 42:24
Dude, if you were as hungover as me right now, you would be seriously impressed.
Kara Swisher · 42:27
For listening to Pivot.
Scott Galloway · 42:28
From Vox Media. We'll be back next week for another breakdown of all things tech and business.
