LIVE from Toronto, Kara and Scott go international!

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What is insight driven? Messaging looked like sales like a whole lot more deals fast jump on high intent leads in the moment with Entercom for the Business Messenger that extends the reach of your team's twenty four seven intercom creates more opportunities for you by booking meetings and collecting data from leave automatically take intercom come user elegant themes they now convert twenty five percent of leads through INTERCON's messenger wheels. Don't wait get them with intercom. Go to ENTERCOM DOT COM slash from Steve intercom dot com slash deals tender Ben and Jerry's and Wells Fargo have in uncommon. They're all iconic businesses founded by regular people with the fucked as regular people main anyways. Do they think the regular people how they do it. Where did they go wrong? And where do they go. Oh right the bizarre trophy podcast digs into the personal histories partnerships big ideas that turn these companies into household names but will they maintain their iconic like status or ended up in the trash heap of history. Get new episodes of bizarre each week and find out listening subscribe on Apple podcast the iheartradio radio APP or wherever you get your podcasts hi everyone this is pivot from the vox media podcast network. I'm and I'm Scott Galloway Alright Scott. We're doing it. We're taking pivot on the road. That's right Carol. We've got everything from drink. Tickets gets bribes extortion. I mourn children heroin pictures of baby goats but we're finally settled on drum roll Scott we have no drink drink tickets bribe extortion firstborn children pictures of goats or heroin but we are going to Toronto. I've been told you're supposed to say Toronto Toronto now Toronto Rondo that's how it's spelled anyway. We flew out to elevate in Toronto to do pivot live this week. They say it's south by southwest of Canada a here Michelle Obama is there there. Are you ready. Let's do a Keira. Here's pivot live from elevate in Toronto L. Right Scott Get yourself together all right good. I'm good so first off. I off Canada Toronto so my father is eighty nine and returned eighty-five as any good son. Does I said Dad. You'RE GONNA be dead. Soon your bucket list you need to create a bucket list and every a year I will take something off your bucket list. He said okay. I'll think about this and I'll put it together. So what do you want to do and I think it's going to be well. I WANNA a home to Scotland or I want to spend time with you and your sons and every year for the last six years it's been the same thing I want to the opening night of the leaves at the Air Canada Centre for the last six years and he thinks about it every every year and then he tells me the same thing we go see usually the leafs lose and he grabbed me says we need to do something very important to have to the game and grab a CAC and we go to the dark reaches a King Street or something and he takes me by and by the way I've never seen my dad doesn't cry and the only time I've ever seen him cry when the bagpipers come out pre-game and the leafs and he just loses it anyway after the game he takes a cab to the dark reaches of Toronto Ronna we walk out tells the cab to wait and he looks up and he says you see that apartment. Yeah I see it and it's pretty nondescript brick apartment. He's like Third Floyd. You're over two three apartments. See the broken air conditioner. He's done this four times in a row and he held my hand and it goes. That's why you were conceived conceived. My guy says it angrily like it's my fault anyway so I'm very honest when I say literally for me. Everything began in Toronto so wait a second aside for your egregious kissing up to Canadians here ears right. I I was not born in Canada. Where are you Canadian? Make my parents mad here and then you become a landed citizen center. Whatever so you can escape trump when the time comes all Americans kind of honorary Canadian citizens I mean now we kind of like for the most part are we brothers and sisters is an arms at this point now? I'm making want us Scott Technology his aqua hires. I think we should have an invasion Asian higher. I think we should invade you and have your leadership takeover our country well. We'll get to your leadership in a minute. We'll get to your leadership and we got some issues with your leaders right now our we have worst issues. You know brown phase orange face. It's a problem right now anyway. This is our first international TRIPP Scott. That's it's right for our honeymoon. We were invited. It's not going to happen for you. We know yeah you know absolutely right now. There is nothing ever happened between you've been watching the dog. I didn't write your wife. Is another another issue anyway so so so anyway so here we are in a in Toronto. We big fans here. We were asked by lots of cities. He's and this is our first well. We went to New York and done live events there but be someone from Toronto wrote a ten part thread on how pitches scale it's business including its network effects and I think I think it's good. I think this selection of Toronto is the best decision we've made. So far. The let's get started. We would like to know what is going on with Justin Trudeau. We thought he was just dreamy and now apparently he's not so dreaming. So what what can anyone give us a an idea of what's happening embarrassment embarrassment so the election is in October is that right four weeks is going to win the tallest midget which really fascinating to us from the United States and look listen. We got something going on down south. That's pretty major going on this week an impeachment of the president but one of the things that was fascinating to me. He is my kids and I they like Justin Trudeau. He's got like the appeal you know. He's got the jury meeting going on and honeymoon period especially the United States like come here and be president didn't this and that after trump was elected and it was really fascinating to me. My son was seventeen my other son's fourteen we were like how bad add could it be like. Someone said he had been in Brown face and we we're like how bad could it be like. People possibly did this in college. It's really it is racists. No matter how you slice it and but how bad could it be and then we saw the picture and we thought this guy took a lot of effort to do this and that was most fascinating channing was like that is flawless makeup you horrible man and so that was what was interesting me and then three times all fantastically done which was horrible horrible in through the practicality. That's this is when it gets really scary. As you think about the prep the actual prep and you put yourself in the room or he's going Yup. This is a really good idea on a risk adjusted basis this makes a lot of sense yeah imagine and then and then you decide to do it a second and a third time but that's not disqualifying what is really disqualifying is using taxpayer funds to basically co op to foreign government into pursuing his political enemies that is treason like that's our guy. That's our guy we'll get to him. I'm in a minute but first of all so anyway. It's really we're watching it from afar. But of course we have our issues in our country so we should talk and we do often about about trump. We'll talk about that in a minute. What's going on there but I think that we have to do a big story breakdown? Let's begin to begin with. We work following our work on we work do they. Have we work in Toronto. Okay so this week the CEO Adam Newman is out and the question is is have we hit peak founder. Now we're talking about. We work even though both Scott and I think that we work is not a tech company Scott. How do you feel about this? I think Komo feel like you're somewhat responsible for the situation yeah so the autopsy on we work will be death by `Swan which is our perspective perspective or the SEC. It was actually a victory for the markets because if you look at what's happened to we work in the last thirty days. It's a company that Goldman said was going to go public was taking them public at a range of sixty fifty two ninety billion you know twice value Ford Motor and now it's worth zero it literally is worth probably less than zero. It's got forty two billion dollars in long-term leases and three doing dollars in revenues and loses a billion and a half dollars for every dollar it spans in top line with no margins it loses fifty cents and it's not a company that scaling scaling that has great gross margins like Google or even a Peleton which is supposed to go public today whereas positive gross margins once it gets to a certain top line it would be profitable. This is a company that similar to Uber as it grows grows its losses so it's literally worth zero. We've had probably the greatest destruction in shareholder value over a thirty day a period that we've seen in a long long time but here's the good news there is a silver lining here the mandatory disclosure by our government agency the Securities and Exchange Commission and put out something that kind of was a whistle call for this incredible confidence that is still alive and well in American business in Kadian business called math and people showed up and saw this thing and said okay including myself and said and Keira said something is very wrong here so all of a sudden the value went from fifty billion to twenty billion ten billion to now zero but whose incurred those losses. This is the good news. We're getting to our next victim here lowly out the employers lost a lot of money which is a good which isn't good news obviously a lot of hurt a lot of employees the the move a lot of fund out of the UAE lost a lot of money okay and who lost the most money the company that has washed the dirty money of the Saudi Public Investment Fund and then has moved dollars into the US and as leaving with dimes. I think this is the ghost of Kashogi who by the way was dismembered by a bone soft funded by the Saudi government and basically as as far as I'm concerned Saudi Arabia. You should definitely invested vision fund to Right so here's the deal today interestingly enough. NBS It was was saying it. It happened on my watch. He was he was washing himself responsibility of Kashogi and then kept saying it happened on he said to Martin Smith which is in a documentary that's coming out that it happened on my watch but didn't take responsibility which was Donna Shing Yard can we we definitely definitely pivoted away from. We work there okay well. We always liked to get into dismemberment of journalists but he does it is related this idea of where the money comes from and I think I think more to the point the one of the things that people talked about is the focus was a lot on Adam Newman his pot-smoking and he bought a Surf Company and he bought this and that and he it was a bad manager. Essentially the fact matter is people enabled this behavior and allowed it with tech companies and he's not a tech startups in a way this sort of founder allowing them to behave in juvenile managers and so I think the real problem here is are the is the board of directors actors of this company which has allowed it to go on and continued and what was amazing was that Softbank which I think was essentially like provided the sugar to to like a toddler essentially like a whole giant bowl of sugar to to this management and then said I can't can't believe this management is doing what it's doing and so it seems to me that the Board board reform is a big deal whether it's the board of facebook whether it's the board which has no power or the board of this company and I think we have to really look at these investors because what happened after the Wall Street Journal story about him lighting up on a plane like you honestly. I don't care if he does that. He is that what is that air. Private plane are never going to get on so it was fascinating fascinating about that is they immediately then went after him as if they didn't know they were shocked by horrified. I know so that's what's really to me really the most annoying part of this. It's not so much Adam Newman look he's an interesting entrepreneur great idea great brand but but you know is is is running a non-economic Company essentially but that the board gets off and Softbank is off and MUSC- shoes on gets off and they shouldn't they are completely completely responsible for it as far as again you have to discern between a public company that is supposed to be representing stakeholders including the community and all the retail investors who piled into this if we work at gotten gone public a union worker in Detroit a teacher Ottawa through the T- teachers would have been a shareholder most likely and we work in them would have incurred heard those losses so the tragedy here the tragedy of the comments was presented prevented and if you look at sopping vision one was one hundred billion dollar fund. It's basically impaired now. It's probably not gonNA work because two of their biggest investments Uber and we work which they invested twenty billion dollars one hundred billion into if one of them catches AH sneezes vision one catches a cold and right now vision one fund from Softbank has full blown pneumonia so the notion that this thing is going to work. It's just it's just not going to happen and then there's some it has forty percent of the forty percent of the fund has what's called the preferred return meaning it gets seven percent per year in cash and so they're taking the few good it investments they have the proceeds of few good investments they've made and they've put it back into the forty preferred which means the sixty the remaining sixty billion of the fun but what you could think of as common is severely impaired so soft bank's adventures playing in traffic are about to come to an end it will die with a whimper not not a bang but this does represent something more on mental and that just as there's a tension between capital and labour there's a tension between capital and founders and when I was starting companies in the nineties nineties the general the general viewpoint was founder was there to start a company but they were crazy and irresponsible and as soon as the company became real you brought in some old guy with gray hair like Jim Barksdale to take over you needed adult management and then Steve Jobs changed changed everything because they brought in all these gray hair why guys almost ran apple under the ground around and then the crazy founder came back and took the company from two billion to three hundred billion and Bill Gates was the first founder take a company from zero to half a trillion dollars all on his own and all of a sudden all the power swing back to the founders and then you started seeing secondary sales when I was starting companies you weren't allowed to sell shares even after the company went public with the message would send now founders have way too much power and they're seen as almost like almost Christ like and I speak from experience here that if you tell a thirty something year old male he's Christ iced teas inclined to believe you and that is what happened here and all the timber we Christ Christ that's right. I think the best one is on twitter's was as we just we just for Jesus you just yeah but also were. We've had kind of Ecuador Call Yoga babble in that is okay yoga. He'll go wait yoga babble right we. We claimed that they were elevating our consciences. Not there any fucking desks right now. Peleton today is supposedly going public delivers happiness now they sell exercise equipment like chuck. Norris and Christie Brinkley did with the BOWFLEX. It's pretty soon someone's GonNa come out. You know some companies. He's GonNa come out that sells. I Dunno rents plants is a service and say we're curing cancer because of carbon remission recapture something but we've had enough and there's there is I'm doing this trying to to do this analysis right now looking at kind of fraud S- planning or BS and the Swan and then look at the returns and I think at some point we need to return to companies saying okay. This is what we do we buy. We ran real estate and rent it out short term. That's not sexy and one of the things you mentioned how many times they mentioned Adam Newman in the swan again it's it's not just a victory for math victory text like words but they had the word atom and they couldn't do this company without him that you meme sometimes the importance of atom the importance of Adam and Adam. This is really important. What happens now from your perspective or here? They have this sort of steaming pile of yes. What do they do what we they've hired? This guy who I met many years ago named already Minson and others others. They're going to be co co CEOS but really what what did they do now. The interesting contrast right now is between we a an uber and they're similar companies in the sense that they were both terrible businesses losing money where they replaced vision and growth for you instead had a prophets or they're replaced prophets vision growth and they weren't scaling to appoint a profitability to a certain extent we as blessed in the sense that is now valued at zero so so getting back to five or ten billion in value is an attractive doable action items so what they will do is lay off third to half of their employees they will sell the way pool companies denise they will focus all the company or selling three the companies including meet up some other stuff they bought they will focus on margin expansion instead of top line growth because it is a differentiated differentiated product. I actually think the we product several ones. I've been into his differentiated product. They did evolve the marketplace and they will build if they are swift and crisp it this and and having adult conversation with their investors go something like this. You fucked up your trusted us. Do you want investor. Do you want to get washed out because this is going to zero. Softbank doesn't put any more money in it will rationalize the business and they could turn it into three or five billion dollar business so they could actually pull this off whereas Uber is still in consensual hallucination with the marketplace that it's worth thirty or forty billion dollars. It's not so they have no choice but to try and continue the heroin that to continue the Hiawatha the Hiawatha trip trip right and continue to grow like crazy Dr Costra Shah he can't pretend can't move bust a move to profitability because that would involve substantially slotting warning raising prices for raising prices pulling out of certain sees right paying their drivers drivers minimum wage so to a certain extent we as blessed blessed with a bit of a crisis is a terrible thing to waste and we could in fact emerge from this and be a nice little company three to five billion dollar valuation which is not bad whereas has uber is painted itself into a corner until the stock declined sixty eighty percent which will happen over the next twenty four months. It won't have the burning platform to make the requisite changes needs to make and become a profitable rational company right so one of the things that I might dispute with we work. I think these things have trend cycle. They've they've sort of I I I used to cover retail and I remember the trendy retailers used to Oh we can fix it. Ultimately it loses its attraction by its constituents which would be millennial bit small businesses businesses and startups and there's a lot it's easy to compete. There's no moats for we work. It has sort of weird shitty wallpaper and beer like what is the what is beer though okay fine but like what is the why would you go there over something except if they have convenient places where you want to set up offices at prices that are decent and things it's. It's like like an exercise club. That's what it reminds me of. It's like an equinox essentially and so. Why would you not shift? I think it's I don't think it quite as much what would you do if there's going to be empty works all over the world. I think that's I think it's over so if there are empty works what they've done is the company's been structured similar to what hotels do so at the Four Seasons Toronto company a fantastic company four seasons doesn't actually the only a couple of their hotels because owning hotels is a terrible business us so they find wealthy people excited about owning a four seasons the same way you're excited about owning a Ferrari dealership and they put all the capital risk on them and they take. I don't know six to eight percent a top line. It's a fantastic business but what they also do is they ring fence the businesses by creating what's called an spa a special purpose entity meaning that if the we work back in Toronto on King Street goes out of business they can declare bankruptcy of that spa and walk away from that landlord and this is interesting and that is the next stories on we will be the blast zone in other words. He's at Ground Zero and it's GonNa get fried go from fifty billion two zero but who just kinda gets burned and who gets leukemia twenty years in terms of the rings out from the blast on that is the disaster that is we and one of those blasts two or three degrees. We'll be the commercial real estate market in New York where the largest tenant in Chicago that the second largest tenant because we could technically start Cherry picking and just walking away in the deal they have with folks as they say okay. We'll we'll agree to a ten year lease deal but you need to put three million dollars in TI's into this floor in terms of reclaimed wood and beautiful panelling hang and built in beer-taps or whatever it does so you could see some real estate owners. Take a real bath here because it's not the the Individual Properties Cross Cross collateralized by the parent company so you could. They won't be emptied. They'll be shut down your shutdown and I think we'll be interested if they get the money back from Adam Newman Newman seven hundred million. I don't know how you get it back. I don't know how you is lawsuits. I just I don't see anything good here. I think everyone's GonNa Newman sold seven one hundred million dollars in stock you should buy them on the IPO yeah before the secondary disaster here but we'll see what happens to it. I mean I think more interestingly is when I was just GonNa ask what our next company is our next company to needlessly attack no no here you know what we do a public frigging service. You're welcome on. We worked by the way Uber seems to be trying really hard to get it Tesla. It's not working. He may be Jesus Elon Musk so what an odd Jesus but there you have it whoa companies at Uber. It seems like Uber you sort of getting a little head of steam about Uber going on yeah but we've been talking about this along lift ride hailing makes no sounds Uber Uber is a great company probably also worth five to ten billion dollars. It's not thirty to forty global brand. It's probably the first alas brand that the global affluency when they come in in the city it has great technology. They've done a amount of you. As much as I criticize. Uber Uber changed my life. I really do love. I I love the service something there. It's just that the valuation evaluation that you see it as an but then can it ever be an economically sound business you know they'll raise prices the plot a two-thirds of the cities as they're going to be forced to pay people a living wage and stop being in the business of exploitation and be in the business of actual transportation. I mean that's the problem with with attack right. Now is its core competency exploitation of workers as opposed to trying to liberate US and put us on the moon that's become their new core competence whereas you have twenty four thousand mostly white mostly college educated people at HQ dividing the value of Airbus but are four million driver partners are making less than minimum wage and when we say driver partner that's Latin American for no health insurance no minimum wage protection. No dignity and things have finally again. There's been there's always a tension between capital and labour things have swung so far back to lay to capital in the United States that were starting to see I think immunities kick in and people say all right enough already. Just stop it and hopefully hopefully Uber's Ground Zero and California talk about California has a b five you all aware of eighty five. It's a it's a they passed passed a law against Uber's end lifts object contractor workers where they treat them like employees and this is a big topic for our dreamy politician Gavin Avenue Sam who looks a little like Justin Trudeau he does he's the governor in California and right now he's in a war with the trump administration over a number of things things California's really leading the way on privacy legislation on emissions on they made a separate deal with the auto manufacturers to fight the trump rollbacks and also ab five which is the first really significant piece of legislation talking about Gig workers especially in tech businesses is which they're used indiscriminately all over the place as employees up deserving of benefits deserving of rights instead of treating them like the Chattel that they've been treated like and so it's it was a real shot across the bow of of those come all those guys it's not just Uber in lift its lots of them and so post mate's it just goes out to all their businesses and it'll be interesting because this is something of a calm governor newsom Gavin and I have talked about a lot for years and years the idea that we have to have a new designation for workers. It's been somewhat of a something he's talked about for a much longer time than I think people realize and so what is a worker today I think is a really important question is just immediately I kind of lost the idea of Gavin newsom and Trudeau in the same aim room mate. We should abscond with their children invade Australia. I think that would be the perfect army of handsome smart people all right. Let's talk about a Canadian. Can we talk about Ashok shop all right all right. Let's do ponding Cardia say. How do you think Canadian gangster yeah Komo? What an incredible company shop we do you own stock? What is going on all right? Tell me why you love this shop of Sarkin like an Amazon which is bad for the planet bad for the world and incredible good for Scott Galloway okay. I have no desire to be a professor tied barking at the Moon. I'm I'm on satisfy so shy itself so this is so interesting the threats to companies that dragon slayers never come from where you think they're gonNA come from and the idea so they have filled sacrifices incredible company as far as I can see that is filled this white space where basically Amazon tells every brand and third party seller where your partner partner in reality is Amazon partners with brands and third party sellers the way virus partners with a host and that is it always went ends up. You know it well for one of them. An an Amazon is now got this terrible reputation as a terrible partner so there's this white space of okay who could be an e commerce platform and actually our partner and that is ship stuff in our own boxes give us our data provide features and services but we kind of own the customer in the data set and that shop affi- and the growth has been unbelievable bowl and then shop a fi is now off their heels and onto their toes one of the first few companies. It's actually landing counterparts on Amazon and it's been a billion bucks to build out their own fulfillment now at work so they could do forty eight hour delivery so this is it's really interesting. We thought that the thing that was going to come after Amazon was is GonNa be out of DC right and could potentially be out of Canada so it's really an shop affi- is probably I would argue right now other than regulation and maybe ethics the greater substantial threat to Amazon is is shop and it's just it's it's. It's exceptionally excited exciting. I've been this excited about shop since I was sending text messages on my blackberry about a Canadian company by I really Miss Those delicious keys Mrs Kay's as we all do that was lovely shop. If is a really Scott has they super exciting company. Yeah it is incidentally question the idea of where you go in the sides needs of of these of these sort of big open spaces I just did a podcast yesterday with the CEO of Super Awesome which is not a gaming company but makes software to to help companies create kid-friendly websites and things like that with with identification with with moderation with community so that it it he's two laws all around the world like cop it in the United States or GDP our kids in in Europe. I don't know what the law in Canada is but there's I'm sure every very country seems to have a law around kids and online and so just recently the FTC fine google. I think it was it was couched change inge but but it was about one hundred and fifty million dollars I think maybe something like that for the way that and also tick tock and the way they market to kids and also protections of kids and there's this big open in space of a company that can ride through the idea of creating a video streaming service and besides offering software to lots of media companies in tech companies companies that are in this space in order to comply there now going to create a video streaming service by taking all the influencers on Youtube who who who youtube has ignored essentially that earn kids areas not protected and pull them over to this new platform so I think it's really there's all these open spaces with with these companies essentially youtube is created for adults and has kids stuff on there and hasn't done enough and so everything in Silicon Valley this this CEO what but I thought it was really smart was talking about every single thing in silicon valley is created for adults and not for kids or other constituencies and the other constituencies are growing doing like crazy and so it's an interesting idea like shop afire super awesome is that there's a space where these companies have failed miserably and to take advantage of that space I think is a great business opportunity and there's tons of them out there whether it's against Google or facebook or anything else so the question is can can someone compete in a smaller area against Youtube and create a really significant business same thing with social networks the same things with ad platforms online at platforms platforms and so you know especially given the right now people really tech companies are not the favorite even though they're saying it's only the media saying that but I I think most people feel very uneasy about tech companies such as how do you feel about Google making a smart city silent. Give me an outsider's view. I actually think it would be a really interesting experiment and I think it would be a great thing and I think everyone would learn a lot. They have the capital. They're very good at what they do. But here's the problem it's from Google it's like. Do you know the facebook portal that camera they were trying to put. It's actually a really great. It's a wonderful product real innovation. The problem is is brought to you from a guy I who puts a piece of tape over his camera and but he wants you to put a camera in your home and these companies have lost so much distrust and such the guy running google sidewalks got him. Dan Director Doctoroff is a really high integrity thoughtful person. That's the kind of person you would want. Overseeing massive capital investments in your city was a deputy mayor of New York and then you did a great job but the problem is it's from Google people have just are worried that they start using terms like surveillance capitalism so I wonder if it's going to be de away. I don't I don't know where it is here but we create traits such hostility and going back to your notion around kids and wide spaces. I would like to think that there are wide spaces and opportunities that great companies like shop if I move in and take advantage of the problem is is for the most part what you see is for every shop affi- There's a thousand acorns startups trying to fill this white spaces. They get crushed rush that a can't get funding because they're competing against a monopoly. If you look at seed funding across our economy there the categories that get no seed funding are the ones that compete pete with four because no one wants to fund ecommerce tech hardware a search engine or social company right now because no one wants to be the partner says yeah. I tried to compete against Amazon so you have a lack of funding then you have companies that are incredibly rapacious competitors and we'll put out as soon as they see anyone. It's any threat they either try and spend them to death. Legislate legislate them out of business or they acquire them and then they put an onerous not compete and non solicitation so the innovators and the employee can't do anything so the branch either gross for their own company where it gets cauterize so there's really I see only a few things we can do. The first is antitrust and we talked about this a lot and this is what I think Canada in. It's it's weird to say this is an American who owns all other stocks did the other thing that could happen here. That could really fomented conversation around better behavior and better checks is if if a country band one or more of these platforms said you know we have an important election coming up and there's evidence that facebook you haven't played it in place the requisite safeguards to ensure our our elections aren't weaponized by a foreign government. That has an agenda here. Hey Youtube we're sort of fond of this thing called kids and we've decided that the more time they spend on youtube and the more time spent on social media the more prone they are to be admitted to an emergency room for self cutting self harm so you're smarter than us. We can't figure this out. We're just going to ban you. We're just going to see what it's like to be in Canada without facebook for a year and then she gets real and then they sit down and okay the JIG is up. Let's figure this shit out because right now they fomented this false narrative that these problems are really difficult and we're proud of the progress we've made oh trust me. You kick their asses out. They'll figure it out so any country in my view that has the the backbone. I think this is an important this could be a it could be a smaller nation earleir someone but until someone says you know what we just don't have we don't have the artillery to go toe to toe with you figure this out these bombs complex so we're moving to outright also the money too I again interest interview commissioner for the FTC Commissioner for the Federal Election Commission in the United States. We don't have a quorum for our our Federal Election Commission so they can't act on any campaign finance for example which is another story but but the the FTC has three hundred million dollars in budget shit thousand people against the whole US business environment budget for the FTC three hundred million versus Adam Newman sold seven hundred million in stock aww that's America welcomes American so in eighteen hundred people eleven hundred so it's a really you know talk about government growing. It is not growing. It's extra contracting and so what's really interesting what you're saying and what you're saying about Google. Maybe has ideas. Here's my problem. Why are why for example? Why does Mark Zuckerberg know about education just because he can give someone a billion dollars? I don't know why we take with Annan Gear Gardner on this why do we let's just tax them and have our elected officials decide on policy rather than billionaire. I just don't think they don't know how to you think they know how to run things. What what is there did? They take courses in city management. Did they take courses in. They just don't have any expertise what they have is money and an enormous amount of arrogance that they can build build a better city now they can work in conjunction with cities to help them but there's no evidence that they're good at anything except what they do and frankly they're not that they need need to mind their PS and QS and do their own business because their own problems and they tend to do and this is very typical if you know them is they're over here making search and then suddenly they're like now space and you'll fix search and you're like but space and you're like what like they have. They're not interested in the thing they do. It's like me suddenly deciding you know hey I think it'd be really good to sing and dance in Hollywood musical like no this would be bad. I'm not even good until talk like this is just this. It's just it's a mentality that they could. You'd never see let me just say you never see Steve Jobs doing this and I i. I wouldn't all of a sudden say I think I'll fix he's making he's just just selling a frigging iphone. That's what he does and he you know he he was actually not very. Even though he was a marketing romantic you know they just sold iphones or they sold air pods or whatever they were doing and and that's there it's just like just this mentality that they have to do something else and they have better solutions. I I think is false and we assume it because they're so rich that they must know better than us and I know a lot of rich people and expression I used for them. All the time is they're so poor for all they have is money like it's. It's really interesting I would they if they would partner with government. That would be great but in this case I think Google is looking for a lot of gimmes like how so different than any other. They're looking for tax gimmes. They're trying to take development money from the city. This is taxpayer money and they don't deserve it. They shouldn't have it and if they're so they they they did it. In San Francisco trying to wire the whole city they tried to do that. Make the whole thing wireless that didn't work because they got bored of it the same thing one one point Larry and Sergei wanted to put chairlifts and San Francisco to make it easier to go up the hills and literally Mayor Newsom at the time time had a meeting with them and I remember like why are you meeting with them over this insane fucking idea and it was because they were the google founders like why why do they get to. It'd be a lot of crazy people in San Francisco. They don't get to have lunch with Gavin Newson to decide to put chairlifts in San Francisco. Now thank goodness. We don't have them. It's it's a bit of the we call we talk about the Pablo Escobar effect and that is Bob Low Escobar retallack in this country was bad for the world but then decided to build parks right. I'm more important Columbia than the government of the rule of law and I'm going to build parks and I remember the image I like. I remember being the eleventh grade and seeing the space space shuttle brought to you by in my opinion the greatest source of good in in history the American middle class and technology and you saw the space shuttle and it had this funky funky arm with a big Canadian leaf on it. Remember that my guess is pretty soon in America we'll have you on musk's picture on the special but something tells me Canadians agents would never put whoever the CEO of shop on their space on a in Canada and in general across what I'll call I don't know you you guys are more. Let's be honest. It doesn't comes at you. Cut The tops off the trees in AD is your taxes are higher here and no one likes taxes but in the US we have the mother of all welfare queens and it does trying to Toronto. I just thought it was so cute how you thought you had a shot at age Q. Two now which is so adorable horrible Toronto was so adorable the proposal you put in sending the Maple Syrup era and Toronto Brian Universities Eric. Do you ever think do you ever think a man in the midst a nuclear midlife crisis who spends three hundred days a year and rainy Seattle is gonNA decide. He needs to spend more time in the winter in Toronto. Do you think a guy who's biggest threat to his wealth. As antitrust regulation was going to spend money in a place where there are no American elected representatives this literally and this is kind out of indicative and you're a victim of this. He was always coming to New York because guess what and I relate to this fifty four year old man with a little bit of money in his pocket wants to roll in New York especially when he's about to be single and you because when Jeff Bezos goes into any city in America with one hundred and fifty billion dollars he's as the wealthiest man in the city when he rose in New York with one hundred fifty billion dollars. He's the wealthiest man in the city in the sexiest man alive. He looks good though he's jacked. He's good he looks good anyway. Don't tell Toronto the truth about. We're not interested in you. It's not you it's them anyway. We gotta get to win. There's and losing the second and I have had this whole page on trump but let's just ignore that asshole today a throw in Netanyahu and Boris Johnson like honestly Boris Boris Johnson. He's like trump but not teflon. What is the opposite of Teflon like everything? Trump should get this guy gets and he keeps losing and he still is an asshole like. Did you see that speech in front of Parliament stonning. You're all the Supreme Court's wrong. You're all wrong. I was like you know what Sir in any case. I'm not gonNA do anything except that Nancy Pelosi I did a did a fascinating job of control and then if you if you do yourself a favor and listen to her speech I think she's I think she's really good at what she does. We'll see where it ends up. There's some testimony today but I do think it depends on how this goes obviously he's he may be impeached speech by the House but the Senate Will Not Moscow Mitch is not going to take him out. Ukraine's pours yeah exactly you did you say that Ukraine's ors our listeners missile or guy. There is a great story. Come on on yeah. Come on all great Scott. Let's take a quick break for some good old fashioned American ads. That's correct ruining the world. We'll be back in just a minute with more pivot. Live from Toronto. Hiring can be a slow process. Cathy Alter Zeo Dylan. Mika vits needed to hire or a director of coffee for his organic coffee company but he's having trouble finding qualified applicants so he switched to ziprecruiter dot com ziprecruiter doesn't depend on candidates. It's finding you. It finds them for you. It's technology identifies people with the right experience invites them to apply to your job so you get qualified applicants fast. I dillon posted his job on Ziprecruiter and said he was impressed by how quickly he had great candidate supply he also use ZIPRECRUITER's candidate rating feature to filter his applicants so he you could focus on the most relevant ones and that's how Dylan found his new director of coffee in just a few days with results like that. It's no wonder that four out of five employers who post on Ziprecruiter recruiter get a quality candidate through the site within the first day see why Ziprecruiter is effective for businesses of all sizes trust Ziprecruiter for free at our web address ziprecruiter recruiter dot com slash pivot. That's ziprecruiter dot com slash pivot ziprecruiter dot com slash P. V. Ot ziprecruiter the smartest artist's way to hire this episode is brought to you by Jay Street an organization redefining what it means to be pro Israel. I'm Jay Street represents the mainstream Voice of American Jews this fall join with Jay Street to fight back against the anti-democratic forces threatening both the US and Israel registration is now open for J Streets National Conference Tober Twenty Sixth Through Twenty Nineth in Washington. DC Go to Jay Street DOT ORG SLASH VOX to learn more and register this year Jay Street has teamed up with crooked media producers of the HIP podcast pod save the world and pods of America to bring you thought provoking interviews with leading advocates policymakers and twenty twenty me candidates post Tommy Vitor Ben Rhodes will join the Jay Street team to discuss the future of American leadership in the Middle East registered today for the J Street National Conference October Twenty Sixth Through Twenty Nineth in Washington. DC Go to Jay Street dot org slash vox and use Code Vox for twenty percent off your conference registration again. That's Jay Street dot org slash talks and Use Code V. O. X. For twenty percent off when you registered to attend Jay Street the political home for Pro Israel Pro Peace Americans Jerry. I'm in the mood for some healthcare. I'm in the mood for the American dream. I know let's get right back to Canada. Let's get back to pivot live from elevate in Toronto. I wonder if they have free psychological testing kind of hand. What is the what is your win so I always get a name wrong? Young phoebe Waller Bridge feely waller bridge the yeah. The Creator and star of what I think is the best here is the last few years. I'm not playing Monday morning quarterback. I love this for a while. top four top winner at the Emmys for words best comedy and it's also indicates kind of a an interesting shift and that is is Amazon prime has finally starting to make inroads against net flex find the time to deal with her twenty million bucks a year right to create more stuff and and and Jeff Bezos said bring me my game of thrones and instead of a dragon you got dame but it's working for him and Amazon is now in I think about one hundred million homes one two hundred fifty overnight flags people with Amazon Prime Watch five hours a week versus ten for net flex but it just shows how incredibly powerful infinitely cheap capital is when you can go into Jason Industry and Star monetize it as you said across paper towels but I think it's probably a pretty negative forward looking indicator for Netflix because just a a a quick quick micro class here. If you think about all the companies that have gotten past three or four hundred billion dollars market cap they have several things in com and but one of them is the vertical they build and manufacture their own products they distributed and then control the end distribution Google controls your android phone apple has has their own stores now in addition to their own totally vertical Amazon obviously totally vertical controls up until can even put stuff in your home now with ring net flicks got to about one hundred and fifty billion but they're not vertical and I think in in this goes to the prediction but I think Netflix is going to start to erode value is all these other companies find reasons to spend billions on content to distribute across their loyalty programs are hardware devices and Netflix is not vertical they don't control the TV. They don't control the screen so I think an interesting acquisition would be net net flix to acquire Sony because not only would they get a lot of original content reverse integrating them back into content Anton creation they would get owned and operated platforms in the form of Sony televisions Sony playstations and they could control the distribution. If you will never going to happen knocking it can happen why not reed hastings but move along Reed Hastings won't do well. You're talking about a Broadway show Gimme netflix acquiring Sony I mean there's unrealistic and there's that win is with this idea phoebe fleabag. It's wonderful you haven't seen it. It's inspiring show but the winner is is is phoebe Waller Bridge my winner. This week is whistle blowers. I love a whistle blower as you might imagine but I like whistle as do this legally and are protected by our governments I think it's critical to the functioning democracy that whistleblowers have protections and in two cases. Mit Mit Media Lab I actually just did interview with whistleblower aid which is the group that that helped Ronan Farrow come find this whistleblower at mit this woman woman who was in the Development Department and was able to legally bring forward emails that of course implicated a lot of people at Mit Mitee in taking money from Jeffrey Epstein and hiding it. I thought that that was a great system to work at work in the right way and then secondly in this case was civil all right is also involved in this in the Ukrainian whistleblower the intelligence officer who is trying very hard to remain anonymous. I I've fourteen seconds where trump trump tweets his name. I'm worried about that but or his or her name. I don't know if it's a woman I think that whistle blowing is is critically important morton in this age especially when there's so much digital footprints for these people the the the trump mission happens to be completely incompetent and how it's it just writes. It's everything down now where you're going to now we were going to lean on a on Ukraine or the Korean president. You know there was a good joke. It's a nice country you have their. It'd be a shame if something happened to it. it was the it was a mobster mentality that they just like and releasing that the phone call just even the small amounts they released is just. It's literally like yeah I did. I did the murder here. Let me show you the body that kind of stuff. It's really interesting but it starts with a whistleblower so I think whistleblowers are the best people ever when they do it in the correct way. I liked that in my my loser loser was going to be founders talked about. I'll pick a new one and I'll couch it. In something positive I do think I'd like to think that immunities are kicking in across a number of dimensions in a weird way. The immunities kicked in around disclosure around we and said you know we're sick. A private companies foisting these Unicorn Feces on tourists at the startups zoo you in the retail markets and we're not going to allow you to to kind of inflict that sort of economic loss on retail investors. I'd also like to thank immunities kicking in around what I call saw fascism and that is leaders in Europe in the US who've decided to bypass Congress demonize immigrants and effectively not condemned violence against their political enemies and and the repudiation of Boris Johnson were twenty three of his own party defected to the other side. I think is a very hopeful sign and I'd like to think in America. The immunities are kicking in is well. Oh so am I loser is the soft fascism the past passes for what is leadership in some what traditionally been great great democracy so loser a soft fascism and I know that makes no sense help me bring me back Toronto they fascism listen soft ashes and sounds like a meal of some sort such ranks on the US. I go I go. We're such Williamson's progressive. We I go on Fox News. Because I consider myself part of the resistance I want to go behind enemy lines and because because I've called for the breakup of ticked detect introduced me no joke because this socialist anime will you say that like it's a bad thing seven ten happiest countries in the world at one thing in common they're socialist list and by the way happiness is not only a function of thinking Oh my kid can get a gulfstream because he might go to mit because we're rich and the only people in America innovator people with rich kids top one hundred under universities more people from the top one percent of households in the bottom sixty percent who gets into Google facebook Amazon and apple the kids that go to the top school so do the math we used to be about upward mobility. The middle class kids like US instead. We're upper mobility about crazy upper mid mobility about rich people so the notion that you not only have happiness from what you you can get but happiness from fear from what could be taken away from you right now in America and you don't suffer from this. Oh your wife has lung cancer which also means you're going going bankrupt right so the notion that we have some sort of we have modern societies that have capitalism or you can be rich. You can have the spoils of being great at what you do but at the same time you take away these immense disastrous fear and anxiety from people you know that's something that we should all aspire to so we we are I think learning and this notion that they can call us socialists. Well you know what boss I'm fine communist Socialist. I'M GONNA start calling the far I would it. Is that have taken over. Some of these governments now does their fascist fat fascism is refusal to condemn violence a it's a it's a demonization of immigrants rants and it's extreme nationalism. What better describes the administration overseeing where I live right now or some of the very dangerous things that's going on in Europe so fine? I'm a socialist socialist fascist. Let's get let's get to it all right. Okay well running for office the Democrat we'll see how that goes well. I'm hoping I hope for the best hope for the Best I plan for the worst so my fail is facebook buying a startup which I've interviewed the CEO of this company that's researching how to implement noninvasive brain impulses that could do do things like text with your thoughts so Zuckerberg in our brains. I thought facebook dating was bad enough yeah so I'm finding this to be problematic automatic that the facebook keeps marching into areas that I think again they should work on their business and they have been they've been trying to fix their problems for sure but I think yeah I know they have to keep growing but it seems a little desperate to move from all like libra and see enormous problems all over the globe yeah and of course it's only their own wallet even though they say it's an independent. It's just not so linked to facebook. They're going into the Lieber. They're going into dating and now they're going into mind control so mind controlling whatever I don't think there's a difference I find it fascinating on one thing that they still continue to be this ambition and a little bit desperate because they just can't you know their businesses doing rather. Well really make their business as good as it could be. I I wish they would do that. Instead of you know if feels like this'll make a great press release this'll be and then it'll go nowhere Ryan's when Google started doing like fifty eighty three moon shots all at once when I wish they would just fix their search and youtube and things like that so so I think Zack in our brains is my fail. Yes absolutely you have to quickly make a prediction of okay so I I love socks in the markets. PELETON's going public. Today may already be public but effect typically what happens is when a company goes public and has does really poorly fewer companies get out and CASS Apollo across the entire market so the markets are typically not only review looking but they can only see five or ten feet behind him so when a company has a tremendous leap poor. IPO IT literally early cuts the number of companies that can get out and half. I'm GonNa Company is a great. IPO A flurry of companies come to the market and I would describe as right now. We're in a bit of a chill not only from what's happened with Uber but the we company going from fifty billion deserves put Chil- so telethon is going out today and it's a really interesting company. It has forty five points of gross margin margin on its bikes. These are apple hardware like margins. It has a recurring revenue stream. It does have in fact I've kind of service. The SAS element to it. They've managed show unbundle. This APP is paid for APP from the bike which is impressive. It's growing like crazy. It's also losing money going out in puts it price at the high end of the range would shock me last last night. It's going out. I think it's GONNA decline in value but it'll hold so I think it's going to be off ten to thirty percent in the next six months and hold we also have a Hollywood agency. A famous is Hollywood agency going public in the next couple of weeks endeavor which is incredible collection of assets but it's not entirely clear the synergy there and evaluation Asian. They're trying to go out so I think what we're about to see is companies. These great good to great companies get out but they're going to recognize a ten twenty percent decline in value but then they will hold. We're not gonNA see the fifty billion two zero so my prediction and I realize this isn't that enthralling is it. The stocks that come out over the next three to six months careful are going to be yeah. People are going to be a little bit more measured. It's going to be a little bit more. PG Thirteen and we'll see a small check back but they won't collapse the way we saw weekly will oh be a lot of IPO's supposedly talent to your airbnb curious. Perhaps pinch story out and doing quite well. Actually Pinterest is probably the best-performing of the attack is the big AIRBNB AIRBNB big can we yes. We can't just hand all right all all right so here's the thing capitalism with a conscience freedom from fear being taken away from you a series of good universities. There are affordable bill for the middle class. The American dream is alive. The problem is it's alive in Canada the you you just suck up to the Canadian magazine smell on your buddy like somebody's flying all right you are we are brothers in arms. You are an inspiration for us and it's my dad reminds me every Sunday night. You have the fastest frontline hockey. Thank you Canada. Thank you the America. We are with you all right. Thank you very much. This is pivot live from Toronto. I'm Cara Swisher Moore. Are you have to say I'm Scott Galloway all right. Thank you very much. Everyone that's a show show. What do you think Scotch and we up and move to Canada and get gay married? What do you think I'm an you know? every marriage is a triumph over experience and I'm trying to be more hopeful so let's get on it between the two of us. We're coming up on nine or ten are we. Thanks candidate we love you. Do Today's show was produced by Rebecca Sonatas and Eric Johnson Eric Anderson is pivots executive producer. Thanks also Rebecca Castro drew boroughs and the shot Kirwa thanks to the people of Toronto and elevate eight for having US Scott You WanNa thank the People Toronto. Yes thank you so much. Go leafs. Make sure I don't even know what that is. Make sure you subscribe to the show on Apple podcast. If you like this week's episode owed leave us a review. Thanks for listening to pivot from box media. We'll be back next week for another breakdown of all things tech and business the mob queens is a new true crime podcast from our friends at stitcher. It's about Anna genevieve's a New York Drag Club maven entrepreneur and bad ass mob wife Jessica bending her who wrote bring on and her co host Michael Seligman who produces this is really Paul's drag race or Hollywood besties on a mission to uncover Anna's story once and for all as they race between species mob informants and former drag queens to figure her route the hosts quickly discover their mob green might not be who they thought she was listen and subscribe to mob Queens Right now. Hi It's John Genero executive producer of espy nations team podcasts Haad cast the NFL season is finally here. If you're anything like me you'll confer podcast that covers your team so you can get caught up on all the relevant news and opinions on your way to work or school school espionage has got you covered we've created thirty two. 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