Scott Galloway · 1:02:36
Paramount Warner Brothers Discovery streaming service would have about 200,000,000 subscribers, making it... Giving a parody with Disney, but still behind Netflix Yep. At 300,000,000. Folding WBD's cable assets would would present a lot of opportunities for cost cutting and savings, as Ellison is already doing with Paramount Properties. It gives them the scale they would need to punch against the big guys. Netflix, they want access to WBD's premium content, including live sports.
Kara Swisher · 1:03:05
Game of Thrones. Bye bye.
Scott Galloway · 1:03:06
If they absorb premium WB content, you know, Sopranos, Game of Thrones, The Wire, movie franchises, Harry Potter, DC Comics
Kara Swisher · 1:03:14
Great thing.
Scott Galloway · 1:03:15
Netflix could force some subscribers to switch over. WBD also holds rights in various markets for nearly every sports league, which would basically give Netflix the opportunity to plant a pretty big flag into live sports, which they don't have right now. Com... Comcast wants to try and, quite frankly, this would be a defensive move for them. Their stock has been in decline for five years. It's lost over half its value since its peak, and the company is seeing consistent cable losses and facing intense streaming competition in there. Right now, they're thinking we have to take a big swing because if our stock keeps going down, we're not gonna have the bat to make a big swing pretty soon. So there... It's more of a defensive or a To
Kara Swisher · 1:03:55
be existential. It's existential for them.
Scott Galloway · 1:03:57
What what I just wanna point out is that we can talk till the cows come home about who would be the best owner. At the end of the day, the owner is gonna be who comes up with 1p more than the rest of them. So it's fun to talk about who needs it. Unless, quote unquote, the best owner sees that opportunity and it justifies the highest bid, it doesn't matter who, quote, unquote, the best owner is.
Kara Swisher · 1:04:20
But that's what I was making the argument is I think for Comcast, this is existential. They have to grab it. They they have to have it. If they can afford it because If they can afford.
Scott Galloway · 1:04:28
That's... It's gonna be given that the... See, they're shopping. It's the opposite for them. Warner Brothers Discovery versus five years ago is twice as expensive as it was because their stock's been cut in half. So they're shopping with a credit card. You know, I I... The analogy I lose is... Use is we have one of these green light credit cards for our kids, and we fill it up based on their allowance or chores they've done or whatever. The last part is a lie. My kids don't do a fucking thing around the house. Anyways, I like to pretend I'm imposing some reasonable parenting on them. I'm not. I'm not. Anyways... But what
Kara Swisher · 1:05:02
do I'll do it for you.
Scott Galloway · 1:05:03
Like I've said, Palantir, everything in the world right now is 90% off for Palantir because their stock's up to unfold.
Kara Swisher · 1:05:10
Although it's down recent... This week, but go ahead.
Scott Galloway · 1:05:12
No. Well, okay. But it's all relative. Okay. It's it's it's it's... Everything's 80% off. For Comcast, everything's twice as expensive as it was five years ago. But quite frankly, Comcast, the Roberts family, they're very smart, and they're disciplined. They're looking at the world and going, are we about to become the smallest player and just oversee a declining ship and this becomes a distressed asset with a bunch of assets that are kinda melting? So they... They're probably gonna have to stretch, but they're probably saying, okay. Do... We we prob... They probably, at the end of the day, need it more than anyone else.
Kara Swisher · 1:05:53
Right. That's what I was thinking.
Scott Galloway · 1:05:55
The Ellisons need bulk, and they have the deepest pockets. Netflix would use this offensively. I think it... I don't wanna say it'd be game over, but if Netflix got these assets, Jesus Christ, try and stop Netflix.
Kara Swisher · 1:06:07
Yeah. That's true. So which one do you think is gonna get it? I agree with you. I mean, I think one of the things with the Comcast people are like, how can they do this? I'm like, they're rich. And I just thought I said, like, how do you explain it? I go
Scott Galloway · 1:06:19
This is
Kara Swisher · 1:06:19
They're rich. And they're like all comes to now. Yeah. But I go, they're... They want it. They want the... They want it now. They want the special squirrel.
Scott Galloway · 1:06:27
If if I had to bet, it's even with Ellison's wealth down from where it was, he's he's still, I think... Now what is he? The second or third wealthiest person in the man?
Kara Swisher · 1:06:37
He's gonna get it. Yeah.
Scott Galloway · 1:06:38
I think his attitude is, why the fuck not?
Kara Swisher · 1:06:41
All in.
Scott Galloway · 1:06:42
But but here's the thing. It all... This entire deal all comes down to one thing. How rich does Larry Ellison feel when David calls at the last and says, okay. It's go time. We gotta put in our best foot, and this is what I think it takes to get this thing done. And he very might... He very may well go, you know, the reason I'm the the wealthiest man in the world is I have some discipline and some business acumen, and this is just too expensive. David, go, you know, go find other... Just have fun at Paramount and go to the premiere of, you know, Landman and enjoy yourself. Or he says, you know what?
Kara Swisher · 1:07:17
What the fuck?
Scott Galloway · 1:07:18
What's another 10,000,000,000
Kara Swisher · 1:07:19
He's a what the fuck kind of guy.
Scott Galloway · 1:07:21
He grew 300.
Kara Swisher · 1:07:22
Remember when he made the Twitter thing? Oh, 1,000,000,000? Whatever. Whatever. I think that's what he's like.
Scott Galloway · 1:07:28
And these guys typically, when they get towards the end of their life... And and quite frankly, I I get... You don't own money. You rent it. And when you're that old and you're like, okay. Why the fuck not?
Kara Swisher · 1:07:41
Why the fuck not?
Scott Galloway · 1:07:42
If I had to bet on anyone, it would be Larry going... The bankers call him and say at the end, alright. You're $24.50. At 27, it's a done deal. I I think. I don't know. I think Larry goes, David, alright. Fine. Go ahead. Yes. Green light.
Kara Swisher · 1:08:00
Green light.
Scott Galloway · 1:08:01
Do it.
Kara Swisher · 1:08:02
And we'll be able to get it through faster through the Trump process. We got Comcast. So even though it gave money to that stupid ballroom, he's disliked by Trump. I mean, of course, there's the autocrat.
Scott Galloway · 1:08:11
That's a really interesting point because Zaslav Zaslav could say to his shareholders, but wait. Comcast was offering 50¢ more. He might be able to say we were not as confident or Netflix, they would be able to close.
Kara Swisher · 1:08:22
Close. Yeah. Yeah. But although I think Trump is quite distracted, I think. If I were Comcast, I'd go for it. Just go for it. They... But they aren't like that. They aren't like that. And and and Larry Ellison is. That's the issue. By the way, last thing I'd say, nobody cares about the news part. None of them. None of them. I don't care what they say. What... It's a problem for them. Care. I just... Everyone, at CNN and all the other places, like, what do they think about us? I go, not at all. Not at all. But the problem
Scott Galloway · 1:08:50
around Comcast, their market cap right now is $98,000,000,000.
Kara Swisher · 1:08:54
Yeah. Too small.
Scott Galloway · 1:08:55
This is like a bet the ranch Yeah. Freaking... If they go for this, this is a... Unless they do a club deal and immediately sell shit off or partner with someone
Kara Swisher · 1:09:04
Yeah. They gotta do that.
Scott Galloway · 1:09:04
Keep in mind, right now, Warner Brothers is at a $57,000,000,000 market cap with a $30,000,000,000 debt load. That's an enterprise of 87. It's not even really... If Comcast does this, it's more of a merger than an acquisition.
Kara Swisher · 1:09:19
Yeah. It is. It is. And I I gotta say, they all do like it. I have such regard for Brian Roberts. I know he... You know, he... It's interesting because he's... In a weird way, you know, his dad gave him his company. Right? Two people I really... I think he did a lot with the assets his parents gave him, and I think Rupert Murdoch did. Those are the ones. And we'll... Time will tell if David Ellison is the smart of his father.
Scott Galloway · 1:09:43
Just going back to MBS, I personally believe, like, at some point, I just wanna know. I mean, at some point, is it twenty years? Is it fifty years? When reporters stop asking questions about the murder of Khashoggi, it'll be interesting to see. I I think a more interesting question would have been rumors are that David Ellison has approached Saudi sovereign and wealth funds about helping fund the acquisition of Warner Brothers Discovery. How do you feel about the Kingdom Of Saudi Arabia having direct influence over the largest news network in
Kara Swisher · 1:10:18
the world? Yeah. They can't. They... That they can't. That to me when I
Scott Galloway · 1:10:21
But that's what they're talking about. Supposedly, Ellison's over there looking for financing.
Kara Swisher · 1:10:25
But he can't do it. He... That'll that'll just that'll be a problem. That'll be... I think that'll be a problem. They're gonna have to just use their own fucking money, and they've got plenty of it if they wanna do it. But selling off... All I can tell you, all all the people calling me from the news, don't care.
Scott Galloway · 1:10:40
I wonder what Kalshir or Polymarket are saying. I bet if I had to handicap it right now, I'd put the Ellisons at, like, 60%.
Kara Swisher · 1:10:47
Yeah. 60. Unless Comcast decides That's paramount. And goes. Paramount. We're going for it. Anyway, interesting thing. Interesting... You know, these industries are
Scott Galloway · 1:10:55
It's not
Kara Swisher · 1:10:56
It's speculation. Alright, Scott. One more quick break. We'll be back for predictions.
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— Predictions segment begins —
Kara Swisher · 1:11:31
Okay, Scott. Let's hear a prediction just for people to know. Here... I'm gonna make a very brief one. New York City mayor elect Zoran Mamdani is meeting with Trump at the White House when this airs on Friday. I think they're gonna get along like bees and carrots. I don't know why I think that. I think... Trump has often... Even though he insults Mamdani, seems to think he did a good job at the campaign. I just think it might go better than we think, but we'll see.
Scott Galloway · 1:11:58
I think your instincts are absolutely right. I think it's in both of their interests. First off, Trump is very luxist, and Mamdani is a young, handsome man. He's very drawn to these young, handsome men. And Mamdani Mamdani will come out looking very... Mamdani can come out and say, I gave it to him and he said, I think they're gonna come out and said, while we had our differences, we're committed to getting along, and this is his native city. I think they both have mutually vested interest in coming across as statesmanlike. So I agree with you. I don't think... Why would they invite him down only to then have more antagonism and bullshit?
Kara Swisher · 1:12:38
Zelensky, they could do it. It could happen. Like, if if he... If... Here's... Let me tell you, Mamdani, don't get caught in a... On a couch with JD Vance. That's all. Just don't. He's too savvy.
Scott Galloway · 1:12:48
Are they planning to do a joint press release?
Kara Swisher · 1:12:50
I don't know, but you never know. Look. Gretchen Whitmer got sucked up into that. Like, he's gotta be very careful about where they sit him. That's... You know, they could be trying to, like... It's a trap cut by from Star Wars. That's all I'm saying. Be very careful about how they present you and what they... Because they could pick a fight. That's the other opposite thing. They could pick a fight, a public fight with it.
Scott Galloway · 1:13:09
I gotta think someone in Trump's orbit's smart enough to go, you know what? We're fighting a battle on a lot of fronts
Kara Swisher · 1:13:14
right now. Not a good one, and people love this fella. He he... Every time Trump insults him, he compliments him. It's really interesting because he's like, I kinda like the cut of your jib even though you're a communist kinda thing. Anyway, your prediction.
Scott Galloway · 1:13:28
I really do think we're we're on the precipice of a pretty significant shift in what I'll call the societal structure, control structure, what what... The societal order. I think the vibe and the tone that will become increasingly apparent amongst these billion... The quote, unquote, these billionaires across leaders, business leaders, I actually think the tone and the vibe is gonna have more impact than the crimes themselves. And I think we're gonna see a dramatic reconfiguration of Congress's approach to tax policy and how... I think this is a big moment, and I think I'm now increasingly believing that the Democrats are supposed to take back the house. I think they're gonna take it back viciously. Viciously. I think this is gonna feel like the Republican wave under Gingrich. I think this is gonna be pretty severe, and I think we're going to see... And, unfortunately, the, you know, the the... Whatever is the chime or the pendulum on the clock is never... You can never visually see it at exactly the median. I think we're gonna see... I don't think they'll go through, but I think you'll see proposals for wealth taxes similar to the ones that's been proposed in California. I think you're gonna see a dramatic shift back to progressives because when you read these emails, you're like, wow. These guys, they really have become Marie Antoinette with with with, you know, with blazers. Yeah. And I think that
Kara Swisher · 1:15:03
They weren't blazers. They were cashmere hoodies.
Scott Galloway · 1:15:05
It is. Yeah. Khakis. But this... I think the vibe of these emails is really unsettling, and I think it's it's gonna it's it's gonna accelerate a decline or accelerate a pretty serious move to... I don't, you know, call them progressive policies. Call them what you want. This is gonna... This is... I think we're at a pretty pivotal moment, and it's more about the culture and the vibe than the specific crimes.
Kara Swisher · 1:15:31
Yeah. I think I think what you're talking about. I don't... If I think if Demarash was smart, they'd call it common sense and decency. Right?
Scott Galloway · 1:15:38
Common sense and decency.
Kara Swisher · 1:15:40
Like, if they just kind of do that, it's such a... Because Trump seems not common sense and not... And and decent. It just is a... Anyway, that's my feeling. Common sense and decent. Common sense and decency. I like that. I agree with you. It's a Marie. You must have had some interesting dinners in Los Angeles. That's what it sounds like.
— Predictions segment ends —
Scott Galloway · 1:15:57
You'd be so proud of me.
Kara Swisher · 1:15:58
What did you do?
Scott Galloway · 1:15:59
We had this dinner, and they invited... Met one of these people we talk about all the time on this show, and they said, it would be okay if we invited so and so and his girlfriend. I'm like, no. I don't wanna meet them. I talk about them all the time, and I don't wanna meet them because this is what happens. I meet them, and I like them, and I stop speaking in an unfiltered way.
Kara Swisher · 1:16:20
Yeah. Good.
Scott Galloway · 1:16:21
Can you
Kara Swisher · 1:16:22
tell me who that was? Nope. Alright. You'll tell me later. Okay.
Scott Galloway · 1:16:25
I'll tell you.
Kara Swisher · 1:16:26
Anyway, we wanna hear from you. Send us your questions about business tech or whatever's on your mind. Go to nymag.com/pivot. Send a question for the show. Call 85551 Okay. That's the show. Thanks for listening to pivot, and be sure to like and subscribe to our YouTube channel. We'll be back next week. Scott, read us out.
Scott Galloway · 1:16:43
Today's show is produced by Lara Nayman, Zoe Marcus, and Taylor Griffin. Ernie and Todd engineered this episode. Manolo Moreno added this video. Thanks also to Drew Burrows, miss Liberio, and Dan Shalon. Nishad Kurra is Vox Media's executive producer of podcast. Make sure to follow Pivot on your favorite podcast platform. Thanks for listening to Pivot from New York Magazine and Vox Media. You can subscribe to the magazine, nymag.com/pod. We'll be back next week for another breakdown of all things tech and business.
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