Signalgate Sequel, Trump's Baby Boom Plans, and Netflix Earnings

1h 6m
Kara and Scott discuss Defense Secretary Pete Hegseth getting caught up in another Signal scandal, Tesla’s latest setbacks, and whether Google will have to spin off Chrome. Then, they dive into a busy few days for the Trump administration — from getting blocked on deportations by the Supreme Court, to reportedly planning an overhaul of the State Department, to taking suggestions on how spark the next baby boom. Plus, do Netflix’s Q1 earnings prove the streaming giant is tariff-proof?

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Runtime: 1h 6m

Transcript

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Speaker 19 Support for this show comes from Upwork. If you're overextended and understaffed, Upwork Business Plus helps you bring in top-quality freelancers fast.

Speaker 19 You can get instant access to the top 1% of talent on Upwork in marketing, design, AI, and more, ready to jump in and take work off your plate.

Speaker 19 Upwork Business Plus sources vets and shortlists proven experts so you can stop doing it all and delegate with confidence.

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Speaker 21 We know how to get people to fuck. Scott and Kara know how to get people to fuck.

Speaker 21 Hi, everyone. This is Pivot from New York Magazine and the Vox Media Podcast Network.
I'm Kara Swisher, R.I.P. Pope Francis, who died doing what he loved best, which was calling J.D.
Vance an asshole.

Speaker 22 So last night, my kid, my 14-year-old, comes into my room in the middle of the night, all upset.

Speaker 23 And he said, Dad, on my group chat, it says we're bombing the Hooties in 1900 hours.

Speaker 29 Should I be worried?

Speaker 21 We're mixing, we're mixing

Speaker 21 scandals here. We're mixing.

Speaker 30 We're mixing scandals.

Speaker 20 I'm serious.

Speaker 32 I think everybody, this is my suggestion to everybody should you decide that there's so much.

Speaker 27 There's so much ridiculously insane, deprived weirdness and competence every day that we don't know where to start.

Speaker 23 Every text message I send out now, I end with 1,700 hours cash F-15s coming into Yemen.

Speaker 45 Every message I'm putting in fake military information.

Speaker 21 He's referring, Scott's referring to the second signal gate or probably the 10th, probably the 20th.

Speaker 21 Pete Hegset was including his wife, his personal lawyer, friends in attacks on, I think it's Yemen, right?

Speaker 20 Was it Yemen? Yeah, whatever.

Speaker 21 What a, Jesus, this guy's got to lay off the water.

Speaker 48 Well, that's who I want.

Speaker 46 That's who I want

Speaker 21 commanding myself. Just to add, add to this, J.D., the Pope died.
J.D. Vance visited him yesterday, and the Pope took his time to insult J.D.
Vance in his Easter, essentially what J.D.

Speaker 21 Vance represented in his Easter homily, and then died soon after. But one of the third thing that just came in is Christy Noam got her bag snatched in D.C.

Speaker 21 and it carried $3,000 in cash she had in it, which she accused the guy that she sent to the El Salvador in prison of being in MS-13 for holding $1,500 in cash. Like, what was she doing with cash?

Speaker 21 Like, anyway, the stories, these people are just, I feel like we're in a simulation, Scott.

Speaker 50 I'm just so here for Christy.

Speaker 22 No, it's such a, it's such a Cinemax film waiting to happen.

Speaker 21 She is Cinemax. She is.
Anyway, she lost her money. Sorry, Christy.
You shouldn't be carrying that much cash.

Speaker 51 Should we bring this all back to me?

Speaker 53 Ask me what I did this weekend.

Speaker 21 Oh, I will. Okay.
What do you do this week?

Speaker 54 Oh, this shit is so upsetting and boring, Kara.

Speaker 55 Let's talk about the dogs.

Speaker 21 It's not the dog.

Speaker 21 It's not boring. Let's talk about the dog.

Speaker 57 So when I moved to Florida after I lost everything in 08 and my kid didn't get into school because it was speech delayed preschool, I'm like, that's it.

Speaker 55 We're out of here. We moved to Florida.

Speaker 20 We

Speaker 54 bid on a house, got it accepted, and then Goldman, who at that time was managing my money because they were investing in small entrepreneurs, came back and said, last year you made negative one and a half million, so don't qualify for a mortgage.

Speaker 59 So I had to go home and tell my partner that we couldn't get this house.

Speaker 34 I couldn't close because I couldn't get a mortgage, which was was really a nice conversation for me.

Speaker 7 Anyways, we ended up buying a home in Del Rey.

Speaker 61 We built this home and we had to have a pool because we had young boys.

Speaker 23 And every morning on the weekends, we would get up, make breakfast, and our kids would immediately start jumping in the pool with our dog Zoe.

Speaker 47 And I would play

Speaker 7 what is my favorite album in the world.

Speaker 51 Is it my favorite album?

Speaker 23 Other than Damned of the Torpedoes by

Speaker 67 Tom Petty.

Speaker 23 I played Morning Phase by Beck.

Speaker 25 Have you ever listened to this album?

Speaker 20 No.

Speaker 61 Oh, it is so beautiful.

Speaker 23 It is so beautiful.

Speaker 25 It won Best Album. It was probably the biggest surprise of Best Album 12 or 14 years ago.

Speaker 23 It's an instrumental orchestral album.

Speaker 69 Okay.

Speaker 70 Don't rush me through this.

Speaker 49 I'm revealing a little bit about my soul to you.

Speaker 21 I'm trying to wait to see where this is going to be.

Speaker 43 So last night, I went to the Royal Albert Hall and I saw Beck play with the Royal Albert Hall Orchestra, which is one of the most talented in the world.

Speaker 72 And me

Speaker 49 and Beata just sat there and cried for an hour and a half, remembering like our kids jumping into the pool.

Speaker 23 Such a nice it's that last night was literally the moment, also the mushroom gummy self, but it would, that will be the moment.

Speaker 39 That's like my crowning moment for London.

Speaker 23 And it was such an outstanding performance and took us, took us back to this really nice moment.

Speaker 20 Oh my God.

Speaker 42 Music is so powerful that way.

Speaker 30 It colours up your mind.

Speaker 21 It is. But in any case, you want to ask me what I did this weekend?

Speaker 29 Why, okay.

Speaker 44 Oh,

Speaker 43 all right, what did you do this weekend?

Speaker 21 I we had Easter, we did the Eastern.

Speaker 20 Oh, yeah, did he rise?

Speaker 32 Is he risen?

Speaker 21 He's risen, Christ has died, Christ, my

Speaker 21 Christ was born, Christ.

Speaker 64 Wow, you're more Jewish than me right now.

Speaker 44 I'm Catholic, I'm actually Catholic.

Speaker 21 If you can believe it, you know what I'm excited for? Honestly, Conclave, Conclave.

Speaker 21 Like that movie. Did you see Conclave?

Speaker 44 I don't even know what that is.

Speaker 21 It's a movie.

Speaker 21 It was up for Oscars. It's with

Speaker 21 Ray Fiennes. They're going to have a conclave.
It's when the Cardinals get together and they all vote and stuff. There's some interesting prospects for a new Pope, including a very young one.

Speaker 20 I actually, I love,

Speaker 56 I would say I love Easter, but

Speaker 75 Easter for me is something I got to do.

Speaker 71 You know, I hide Easter eggs.

Speaker 21 Where? Don't tell me.

Speaker 23 Because I don't want anyone to know that I'm fucking a chicken.

Speaker 21 Oh, my God.

Speaker 20 That's good.

Speaker 21 Oh, my God. I had such a good, good, like, I had such, I had so many beautiful, my grandmother used to make Easter foods in Tali.
He has resin. He has resin.
She went to Mass every day.

Speaker 21 She would be very interested in who the new pope is. Anyway, we'll see who the new pope is.
He was a good pope. He was a good pope.

Speaker 37 You want to understand an organization that understands branding, that burning the ballots to create white smoke that signifies there's a new pope.

Speaker 20 Yeah.

Speaker 37 The garb, the candles, the outfits.

Speaker 77 The music, the artisanship.

Speaker 21 It's almost like they're gay. It's very gay.
It's very gay.

Speaker 42 I'm so glad you said that. And what a shocker.

Speaker 51 And you can't sleep with women.

Speaker 64 And what do you know?

Speaker 64 What do you know?

Speaker 21 Can clave. Can clave.
You have to watch that movie.

Speaker 21 Do yourself a favor and watch it with your wife. It's a great movie.

Speaker 21 It has Isabella Rossellini in it. She's a nun.
Is Isabella Rossellini? She's a nun. She's fantastic.
She was up for an Oscar, I think. Anyway, word of advice to the next pope, stay away from J.D.

Speaker 21 Vance. Anyway, we have a lot to get to today, including the Supreme Court handing Trump a late-night loss.
Netflix is staying strong and market chaos, yet another Tesla setback.

Speaker 21 This company is really done for, I feel like.

Speaker 21 SignalGate, too, has dropped, as we just referenced.

Speaker 21 Defense Secretary Pete Hegs says shared attack plans for strikes in Yemen yet another group signal chat, including his wife, brother, and personal lawyer.

Speaker 21 Hegseth is blaming disgruntled former employees for leaking the information about the use of his chat. They are.
In fact, Let me tell you, these employees aren't being quiet.

Speaker 21 One of them wrote a piece for Politico saying how much Pete Hegset sucks.

Speaker 21 In the group, there were around a dozen people from Heg Seth's personal and professional circles and was named Defense Team Huddle.

Speaker 21 Heg Seth created the signal group himself and conducted the chat from his private phone.

Speaker 21 It just gets worse and worse. The details shared were the same in the chat as Jeffrey Goldberg.
He looks like he cut and pasted.

Speaker 21 And who among us has not cut and pasted war plan details in all our group chats? I mean, will he go? Because now his people are after him.

Speaker 21 His little, you know, his little, his stormtroopers are after him now.

Speaker 21 So do you think he's finished or not? Or will Trump not care?

Speaker 37 I have a question for you because what I saw, I love News Noise with Jessica Yellen.

Speaker 79 Yeah.

Speaker 23 And she said, what's going on here is a phenomenon in journalism.

Speaker 22 I'm curious to get your take on this called taking out the trash.

Speaker 80 And that is when your own team turns on you and starts leaking everything,

Speaker 41 you're done.

Speaker 47 There's no way.

Speaker 47 There's no way to plug the boat.

Speaker 52 Do you think that's what's going on here?

Speaker 21 Yeah. I mean, they're explicit.

Speaker 21 One of them, who is a spokesperson, John, john i think it's uliat or something like that he wrote a whole piece saying you know still saying he loves donald trump blah blah blah but pete hegs that has to go essentially that's what this piece said which was explicit you don't often do see an explicit one now this four people in this group chat dropped a dime on him and you could i could tell two of them the ones two or three who were just fired by him for things he lied about these people didn't do what he said they did so he turned around and fucked them and then they're like you're not fucking us we're fucking you and yeah I think there's, and then the, the guy in his piece said more to come, which is like probably around his drinking or whatever.

Speaker 21 But it sounds like a fucking disaster there. I don't know how Trump can save this.
He's got to dump him. I think there's no question he has to dump him.
But it's Trump.

Speaker 21 So you never, I mean, any other president, absolutely, he'd be gone by yesterday. But, you know, he's maybe he's thinking the Pope will give him cover or the Pope's death will give him cover.

Speaker 21 I don't know. I just think he's, he's done.
He's done.

Speaker 84 I thought that the last one.

Speaker 29 I thought that was, I thought that Waltz was going going to get fired.

Speaker 20 Yeah.

Speaker 21 Trump has a different behavior, sister.

Speaker 23 But I wonder if at some point the Joint Chiefs go, you realize at some point people are going to question orders for fear that service-to-air missiles are waiting for them because Shifter Brains over here is playing,

Speaker 23 is next thing he's going to put it out on his Nintendo Wii, what the attack plans are.

Speaker 24 I mean,

Speaker 81 at some point, this begins to.

Speaker 82 At some point, this begins to compromise the safety and security of our

Speaker 21 men and women in uniform, if it hasn't already private is a private phone who knows where he was. Like, come on.

Speaker 21 Can you just appoint his brother to some sensitive his brother is in the Defense Department. His per another friend of his, a personal lawyer was on this thing.

Speaker 21 Like, I wouldn't put my oh, God, this whole thing is just the ice sense of it. Just, it seems like it's, there's a deeper story here because they were signaling it, this one person.

Speaker 21 And to use your name in public to do it, this guy is, is either kamikaze or knows something. Like, this is going to get worse.

Speaker 21 So they're going to find an elegant way to get him out because Trump apparently likes the way he looks. He is a handsome man.
Very handsome. In a kind of a cheesy, unctuous way.

Speaker 20 No, I think he's very handsome. He's a handsome man.

Speaker 21 I think Trump likes his look and feel, but they're going to put someone else who's more competent in there.

Speaker 25 He says he can do five sets of 40-some push-ups.

Speaker 88 I can do five of 35.

Speaker 21 He should go back to Fox News. That'd be great.

Speaker 40 That'd be true.

Speaker 21 He should go back. That's where he belongs.

Speaker 21 So speaking of which, the Google, Google and the Justice Department, speaking of people in trouble, are headed to court as we tape money to argue on how to remedy the company's online search monopoly.

Speaker 21 The outcome could result in Google being forced to sell off Chrome and share more data with competitors. Witnesses from Microsoft, Mozilla, Perplexity, and OpenAIR are set to take the stand.

Speaker 21 Closing arguments will be on May 30th, a decision coming by August. And for once, I would agree with Bill Barr, the former Attorney General, who's

Speaker 21 just a sack of shit, really.

Speaker 21 In an op-ed, he wrote in the Wall Street Journal, all the solicitude we express for free markets is hollow talk without a willingness to confront bad actors that use illegal practices to squelch rivals and establish monopoly power.

Speaker 21 Well done, Bill Barr. No one says you're stupid.
But anyway, what do you think is going to happen here? Because they also lost the advertising case too just last week. So this is the first case.

Speaker 21 So they're in the remedy section of it.

Speaker 56 I think they feel the wolves are circling.

Speaker 7 And it does feel real this time.

Speaker 39 It feels, you know, while you were sleeping, you know, we're so focused on everything else that it does feel like the momentum here is pretty staggering.

Speaker 7 I wonder if they're, they're just so smart and they have so many connections.

Speaker 34 I wonder if they're going to do a blood offering and offer to spend something or offer a pretty big fine,

Speaker 80 like some sort of big bargain.

Speaker 21 No, I think it has to be a remedy. I think it has to be a spin-off.

Speaker 37 But

Speaker 49 yeah,

Speaker 38 my guess is they offer to do something prophylactically because I think they see

Speaker 58 a spin of a spin of their ad group, a spin of what was used to be double click.

Speaker 33 I'd like to see a spin of YouTube because I think it'd be so incredibly valuable.

Speaker 77 I think it'd be good for shareholders and be pretty clean.

Speaker 21 They don't seem to want to spin any of them. Not Mark Zuckerberg, not Amazon, not any of them.

Speaker 25 Well, they get to share data and it's also

Speaker 86 it all comes back to money care.

Speaker 34 This is the point it all reverse engineers do, and it's the following.

Speaker 55 Except for Zuckerberg, who I think just at this point lacks control, although maybe that's not true.

Speaker 93 The way a CEO gets compensated is the following: there is a subcommittee of the board called the Compensation Committee, and basically they're there to approve, to make sure that we have enough options in a private company for new hires and also to deal with the hardest part, and that is CEO's compensation.

Speaker 78 And we hire Towers Perrin and we pay them $200,000 or $300,000 because we don't like to do any actual work ourselves.

Speaker 46 And they come in and they say, okay, New York Times Company, you're a $5 billion revenue company in a media space.

Speaker 80 50% is the

Speaker 32 exact median of CEOs of media companies making $5 billion.

Speaker 23 And this is what happens.

Speaker 36 You say, well, Janet Robinson's doing her level best.

Speaker 32 We'll pay her at 60% because we don't, it feels weird psychologically to pay someone average.

Speaker 42 But keep in mind, this is the average of CEOs in $5 billion media companies.

Speaker 51 So you pay them, generally speaking, 60%.

Speaker 95 But what that means is when you're paying everyone 20% more than the medium, it means every three and a half years, the compensation is doubling.

Speaker 49 And what that means is in 40 years, we've gone from CEOs making 30 times average worker salaries to 300 or 400.

Speaker 48 Now,

Speaker 50 essentially what happens is

Speaker 96 that that metric,

Speaker 42 that scale you get, is based on the size of the company.

Speaker 96 So when the Bank of America CEO says, I want to make more money, Even if he's making shitty acquisitions that may not pay off in the long term, his compensation goes up based on the size of the company.

Speaker 50 So there's this disincentive or you're de-incentivized a little bit from shareholder value, although you have options, but everybody wants to sit on the iron throne of all seven realms versus Westros.

Speaker 60 And this is why I have always highlighted Jeff Buchas.

Speaker 91 He sold the magazine group about two years ago before magazines went into decline.

Speaker 42 He sold.

Speaker 51 He sold the cable companies

Speaker 86 before the plummet and cable companies.

Speaker 25 He sold Time Warner about five years before it went into structural decline because he said, my job is to get shareholders as much money as possible, even if it means putting myself out of a job.

Speaker 21 So, do you imagine they would offer this? I don't think they will. I don't think it's just because of money.
I think they just don't.

Speaker 21 They're hoping to play the long game here and just delay and delay and obfuscate and delay.

Speaker 21 When in fact, they should have done it. So, should Mark.
They should spin off YouTube. It would be a very successful company.

Speaker 21 They need to spin this thing off. They need to just take their lumps and do it because they clearly use data and other advantages here to dominate the market.

Speaker 21 And again, if Bill Barr and Karis Wisher are in agreement, it is a real moment in time, I think.

Speaker 21 And real Republicans don't like this stuff, right? The question is, is Trump going to throw them some sort of lifeline here?

Speaker 21 Although I'm not quite sure what he can do, because in the advertising case in Virginia, there are state's attorneys general.

Speaker 21 But the White House looks like it's continuing with Pam Bondi. And I'm saying the White House and Pam Bondi because there is no independence between the Justice Department and the White House anymore.

Speaker 21 So we'll see. We'll see.
We'll see. We'll see.
And give me one quick prediction.

Speaker 88 I think it's a prophylactic.

Speaker 25 I think they're so focused on shareholder value.

Speaker 88 I think a prophylactic spin

Speaker 43 of

Speaker 82 WhatsApp, Instagram, or YouTube.

Speaker 21 So WhatsApp is over at Facebook, but I know.

Speaker 40 Well, right, or so is Instagram.

Speaker 21 But this is Google.

Speaker 32 Right.

Speaker 67 But isn't Instagram, isn't Meta also, that case case has got more momentum.

Speaker 21 That is going to, yes, that is also. That is also, but that's in the midst of the case.
That hasn't, but go ahead. Yeah.

Speaker 32 Anyways, you asked for a prediction.

Speaker 90 I think we're going to, we're going to see a spin in the next 12 to 24 months.

Speaker 39 All right.

Speaker 84 I've been, and by the way, I've been saying that for a long time and I've been wrong.

Speaker 21 Yeah, well, we'll see. They are definitely, it looks like Tompros isn't going to save my lifeline, but we'll see.
He might do that if he gets enough money.

Speaker 21 Just for people who don't know, the production of Tesla's Model Y has been delayed. This company has one mess after the next recently.

Speaker 21 The Model Model Y, a more affordable version of Tesla's electric SUV, was promised in the first half of this year, a potential way to boost sales.

Speaker 21 Production plans will be pushed back a few more months, though Tesla probably still plans to produce them, maybe. They think it's because he wants to double down on RoboTaxis and the Optimus Prime.

Speaker 21 He thinks that's where the future is, not in these cars. Obviously, people are running circles around them, including Japan and China and others.
And legally,

Speaker 21 it settled a racial discrimination lawsuit after a black employee alleged harassment, gender-based insults, and racial slurs on bathroom walls, which were pretty heinous.

Speaker 21 Tesla's also facing a proposed class action suit, claiming this one is amazing too, claiming it speeds up odometers so vehicles fall out of warranty faster. What a, oh, oh my God.

Speaker 21 It's just all over the place. So his car company's giving a lot of yips.

Speaker 21 We're taping this on Monday. Tesla reports earnings on Tuesday afternoon.

Speaker 21 Any predictions? Like, it looks like he's not interested in making cars anymore or he's making other things. He wants to shift Tesla.
And And I think you're going to merge XAI,

Speaker 21 X, and this together in a big

Speaker 30 lines. Yeah.

Speaker 21 And make it an AI company. Make it an AI company.

Speaker 20 Huh.

Speaker 64 That would be really interesting.

Speaker 33 And use the...

Speaker 67 use the AI kind of halo as a means of propping up the company.

Speaker 54 Actually, I think that's really interesting.

Speaker 32 Look, this company should be a $14 stock.

Speaker 93 And I'm not suggesting you invest here because it's a meme stock and there's forces outside of your control.

Speaker 27 And now that the SEC has been neutered, who knows what kind of manipulation

Speaker 32 has taken place here. But it used to be the CEO from the street, the best thing you could do was kind of under-promise and over-deliver.

Speaker 47 And there's still a market for that in traditional mature companies.

Speaker 80 Unfortunately,

Speaker 60 the ground has shifted a bit that in the kind of fake it till you make it economy, it's over promise

Speaker 98 and deliver just enough. You can under deliver, but just enough.

Speaker 26 So, for example, some of the promises Elon has made.

Speaker 89 2,200 days ago, he said there would be 1 million Tesla RoboTaxis within the year.

Speaker 80 So seven years ago, he said we'd have

Speaker 23 RoboTaxis in one year.

Speaker 78 Nine years ago, he said all superchargers were being converted to solar.

Speaker 49 That hasn't happened.

Speaker 32 Another nine years ago, he said, since Tesla started charging customers for self-driving software, that he said would be able to drive from LA to New York City autonomously by the end of 2017.

Speaker 31 He said that that would happen by the end of 2017.

Speaker 21 He seemed to me on stage at some point.

Speaker 77 Nearly eight years since the second generation Tesla Roadster was announced, you can still pre-order one on Tesla's website for 45K.

Speaker 23 That's interesting.

Speaker 65 Some of the promises that did come to fruition, but the details were still a little fuzzy. The Cybertruck was scheduled for production in 2021 and was supposed to cost $40,000.

Speaker 58 It

Speaker 23 came to market in late 2023, and the base model was over 60K.

Speaker 21 And it's a heinous-looking vehicle.

Speaker 80 They're getting, yeah, it it makes no fucking sense.

Speaker 32 It's, they're getting hit.

Speaker 20 They haven't sold that many. They haven't sold that many.

Speaker 67 They're currently getting hit with a lawsuit concerning the alleged speeding up of odometer readings.

Speaker 49 Tesla does not have incentives to fib the odometer numbers.

Speaker 65 Warranties expire faster, meaning less Tesla-covered repairs and extending the alleged range of the Tesla, which is,

Speaker 93 I remember when I was buying used cars, I thought, why don't people just fuck with the speedometer?

Speaker 20 They did.

Speaker 21 That was a big thing, is fucking with the.

Speaker 80 Yeah, but that's literally kind of like fraud on a different sort of masculine level.

Speaker 102 It was like do not ever accuse anyone of with the spider you know the odometer or whatever it is so like i don't i don't i think he's lost interest in it i think your

Speaker 18 your

Speaker 21 speculation that they might combine it all into one company is really interesting i hadn't thought i hadn't considered that because he hid to he hiding x's shitty business within the

Speaker 21 by the way they don't have that many customers what is their revenues open ai is making five billion six billion at least you know and actually growing um they have to have custom you know it'll just have this halo.

Speaker 21 So he's moving it to a new meme stock, just a better meme stock from, because the Tesla meme stock isn't going so well. That, that meme is over.

Speaker 21 And then he'll take, and then he's getting all kinds of contracts. He might be in charge of Golden Dome, all this other stuff.

Speaker 21 And so he's got other, he's got better fish to fry, better, better women to impregnate, I think here. But anyway,

Speaker 21 let's go on a quick break. We come back, the Supreme Court's late night rebuke to Trump.

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Speaker 1 Support for the show comes from Odoo.

Speaker 105 Running a business is hard enough, and you don't need to make it harder with a dozen different apps that don't talk to each other.

Speaker 108 One for sales, another for inventory, a separate one for accounting.

Speaker 109 Before you know it, you find yourself drowning in software and processes instead of focusing on what matters, growing your business.

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Speaker 7 ODU is an all-in-one, fully integrated platform that handles everything.

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Speaker 101 And the best part is that Odo replaces multiple expensive platforms for a fraction of the cost.

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Speaker 105 Running a business is hard enough, and you don't need to make it harder with a dozen different apps that don't talk to each other.

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Speaker 114 No more app overload, no more juggling logins, just one seamless system that makes work easier.

Speaker 101 And the best part is that Odo replaces multiple expensive platforms for a fraction of the cost.

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Speaker 21 Scott, we're back. The Trump administration has a busy few days.
Let's dig in for a few.

Speaker 21 The Supreme Court handed down a rare overnight order on Saturday blocking Trump from deporting a group of Venezuelan immigrants in Texas.

Speaker 21 The court's order bars the government for now from using using the Alien Enemies Act, a wartime law from 1798. This was a 7-2 ruling with Thomas and Alito in the minority.

Speaker 21 Alito wrote in his dissent that the court's decision was to intervene was not necessary or appropriate.

Speaker 21 The Trump administration quickly asked the Supreme Court to roll back the decision, saying the order was premature as lower courts had not properly weighed in.

Speaker 21 Really, it's none of his business what they're going to do. Actually, they're working.
This guy is putting them to work in terms of making decisions.

Speaker 21 They might try to keep Trump in check, or at least they're at least moving to do so even before things like that.

Speaker 21 Also, the Trump administration appears to be preparing for a drastic overhaul of the State Department, a plan described by one U.S. diplomat as bonkers crazy pants, and that's a technical term.

Speaker 21 A draft, that's an ambassadorial term, bonkers crazy pants. That's all the name of Scotts in my band.

Speaker 21 A draft of an executive order reveals plans to shut down embassies across Africa and eliminate State Department offices focusing on climate change, refugee, and human rights.

Speaker 21 So the entire continent of Africa and anything nice for people.

Speaker 21 The draft also calls for ending a foreign service exam, laying out new hiring criteria in line with President's foreign policy vision, which means you have to agree with him.

Speaker 21 Secretary of State Marco Rubio responded to the New York Times report on the overhaul on X, writing, this is fake news.

Speaker 21 Oh, little Marco.

Speaker 21 If these plans do come to fruition, we'll see how it affects our standing abroad.

Speaker 21 And lastly, and then you can comment on all these things, Scott, the White House is reporting looking looking into new policies that will incentivize more Americans to get married and have kids, according to the New York Times.

Speaker 21 Some proposals for those policies include a $5,000 cash bonus given to every American mother after delivery.

Speaker 21 I wish I got that. Government-funded programs educating women on their menstrual cycles to better understand when they conceive.

Speaker 21 I wouldn't be against it, except it feels very...

Speaker 21 controlling. Giving the National Medal of Motherhood to moms with six or more kids.
I'm almost there. As we discuss, this is a cause that's near near and dear to the hearts of Elon Musk, J.D.

Speaker 21 Vance, Conservative Heritage Foundation, for his part. Trump recently coined himself the fertilization president.
He's also pitching for the idea of baby bonuses for a while.

Speaker 21 Let's listen to what he said at CPAC in 2023.

Speaker 127 We will support baby bonuses for a new baby boom. How does that sound? That sounds pretty.
I want a baby boom.

Speaker 127 Oh, you men are so lucky out there. You're so lucky.

Speaker 127 You are so lucky, men.

Speaker 21 He's so gross. He's so incredibly gross.
Anyway, I'd like your thoughts. Let's start with the first, which is this Supreme Court situation briefly.

Speaker 94 Go ahead.

Speaker 53 Well, one of the two pillars of the way we approach justice or how we prosecute or acquit or deliver justice and some general themes.

Speaker 31 And Alito gave a very eloquent speech on this.

Speaker 33 I apologize.

Speaker 25 It was Justice Scalia saying that every nation has a really powerful Bill of Rights.

Speaker 86 And we keep focusing on when these decisions come down.

Speaker 93 But that's not the bigger issue.

Speaker 25 Russia has a Bill of Rights that says you are entitled to free speech and anyone who gets in the way of your free speech should be immediately imprisoned.

Speaker 90 Where a nation's metal and justice system is

Speaker 27 proven or dissolves is your willingness to enforce those Bill of Rights.

Speaker 23 And that's where we are now is that for the first time in our nation, it used to be when the Supreme Court or lower court made a decision, it was just agreement it was going to be enforced and that the president wouldn't think of turning back planes against a court order.

Speaker 23 And we're giving the president credit right now. It's almost as if we're saying, see, he's actually listening to the Supreme Court because we no longer have that certainty.

Speaker 89 To me, that's really scary.

Speaker 71 The other thing is, generally speaking, we have decided with our justice system that it is worth the trade-off, and there's always a trade-off to have some people who are guilty be free oj

Speaker 21 versus imprisoning innocent people joe rogan just said this yesterday but go ahead who did joe rogan really he likes due process yes he did he said it's better to have a that hundred people uh that are guilty get off if one innocent person gets convicted i think that was his and i right now i i can hear a lot of americans saying okay now do black people because i think there's a lot of black americans who've been incarcerated unfairly but those are kind of two pretty significant tenets.

Speaker 23 And those have been, so the notion that this Republican talking point of, well, yeah, it's worth it.

Speaker 62 If there's a couple people in El Salvador that shouldn't be, it's worth the general progress we've made.

Speaker 23 Meanwhile, the 60 minutes said 70%, 75% of these folks haven't committed a crime.

Speaker 90 So I think the bigger issue is we just have to, at this point, make sure that these decisions are upheld because we have a strongman who's kind of picking and choosing, it feels like, what decisions he's going to decide to comply with.

Speaker 86 In terms of the natalist movement,

Speaker 31 I do believe,

Speaker 46 I mean, I think of a unifying theory of everything around what the democratic message should be.

Speaker 7 And I think it should be the following, that anyone under the age of 40 who works

Speaker 49 should be able to form a household, buy a home, or at least afford rent, meet somebody, and afford to have children.

Speaker 32 So minimum wage of $25 an hour, national service, 7 million homes in 10 years, do away with capital gains tax and a tax structure that transfers money from young to old, universal child tax credit.

Speaker 25 There's a ton of actual programs I'd like to see the Democrats actually put forward instead of fucking whining all the time.

Speaker 35 But here's the bottom line: it's about economic prosperity such that if the 60% of 30-year-olds that had a kid, now it's 27%, want to take it back to 40, that's fine.

Speaker 95 But at the same time, if they decide they want to not have kids and spend that money on brunch and St.

Speaker 77 Bart's, that's their right.

Speaker 46 So, I want a program that takes the

Speaker 77 people under the age of 40 that are 24% less wealthy than they were 40 years ago, and not the 72% wealthier of people over the age of 70 and levels up young people and gives them a chance to meet each other.

Speaker 86 and gives them economic viability, but only rewarding them for some sort of kind of weird propagation, the reality of it.

Speaker 21 I'm not having babies, right? It's a good thing to have baby. I mean, I've had four kids.
I love children. It's that it should be one is your choice if you want or don't want them.

Speaker 21 But this idea that you didn't put anything else in place, like, why isn't he talking about daycare? If you really want people to have kids,

Speaker 21 give national daycare to everybody.

Speaker 30 100%.

Speaker 21 Good daycare. Like, if you really want to have kids, this is very similar to the abortion thing.

Speaker 21 If you really want people not to have as many abortions, make it so it's easy to have children, perhaps. And maybe people would make different decisions.
It's the same. They never want to solve.

Speaker 21 And they also don't like the kids after they're born, right? They don't help any of of those kids that get born who to in problematic homes and everything else.

Speaker 21 So they don't, they, all they want is, and you can see it, his giveaway was like, man, you're going to get to fuck. I think that's really what he was saying.

Speaker 21 He was saying that. I don't think it.

Speaker 21 So this idea of baby bonuses is fine. That seems fine.

Speaker 21 The idea of IVF being inexpensive, great.

Speaker 21 It's all like individual grade, but it's not followed by anything that really matters to people who have kids, which is daycare or child care, which is important at every income level, by the way.

Speaker 21 Even if you can afford it, it's difficult. Same thing with elder care, by the way, on the other side, also hard.

Speaker 21 But they don't want to do any of this thing. They just want like men to like have 14 babies, Elon, but what do you care if you're a shitty father, right? None of that matters.

Speaker 21 So I don't, you know, it just for people to realize

Speaker 21 these expanded child tax credit would be better or a baby bonus would require an act of Congress, by the way. But like expand child tax credit, that's a great idea, too.

Speaker 85 That's right.

Speaker 21 But just the other things matter much, much more. And Scott is 100% right.
If you don't want to have kids, you should not be like,

Speaker 21 you kind of, remember when people were giving money to people, giving people their college

Speaker 21 for giving the loans? Why does people who have babies get it and people that don't don't get it?

Speaker 20 There's that moment.

Speaker 21 Right? Like, why do they get money? Because we want them to have babies? That's kind of sick.

Speaker 23 You need young people who are economically viable.

Speaker 31 And if you want to talk about a baby boom, you got to reverse engineer to why the baby boom happened.

Speaker 88 And effectively, it was the following.

Speaker 23 We don't like to talk about this because some of it sounds politically off-putting, but 7 million men came home from war.

Speaker 62 And they had demonstrated heroism and uniform and they were fit.

Speaker 46 And we put a bunch of money in middle-class homes through the GI bill, through FHA loans.

Speaker 23 And we said, okay, young people, here's a bunch of attractive men.

Speaker 95 Quite frankly, we aren't producing enough attractive men for the women who have ascended.

Speaker 36 And we should do nothing, including some sort of weird tax credit that somehow pulls women out of the workforce.

Speaker 31 And we should do nothing to get in the way of women's incredible ascent.

Speaker 95 What we need to do is lift up men who, quite frankly, aren't keeping pace.

Speaker 95 And the way you lift up men is by lifting up all people under the age of 40 and giving them a chance to meet, giving them a chance to fall in love, giving them economic viability.

Speaker 96 We have to get them together.

Speaker 42 Do you know realize? And I know this sounds 40% of nightclubs in London have gone away since COVID.

Speaker 64 If people aren't going into work, they're not going into bars, they're not going to church, where does a man or where does a woman who has a much finer filter for sex?

Speaker 128 Because quite frankly, the downside of sex is so much greater, ever have the opportunity to let a man demonstrate excellence?

Speaker 80 Like where, if you talk to people who've been married longer than 30 years, 75% of them say that one was much more interested in the other in the beginning.

Speaker 26 It was always the man that was more interested.

Speaker 23 Women are just more choosy for very strong instinctual and biological reasons.

Speaker 128 So where does the man have an opportunity to demonstrate excellence?

Speaker 15 And now you have men who, quite frankly, aren't demonstrating excellence.

Speaker 86 As women have ascended the earnings ladder and can contribute more to a relationship, men have not filled that gap.

Speaker 20 You know what it would

Speaker 21 have more babies, J.D. Vance, in case you're interested.
And by the way, I have more children than you. Again, let me stress that.
Is $25

Speaker 21 hello? Let them

Speaker 21 like that would be a baby boom. That would housing

Speaker 21 housing would cause a baby. If you really want to do it,

Speaker 21 we should run the fucking government, Scott Gallows.

Speaker 46 7 million new homes, manufactured homes that cost 30 to 50% less than homes built on site, $25 an hour minimum wage, national service, do away with long-term capital gains,

Speaker 21 more nightclubs.

Speaker 92 Quite frankly, subsidies to places, businesses, whether it's putt shack,

Speaker 97 whether it's bars that get young people together, whether it's nonprofits, sports leagues, anything that gets people together so they can go, you know what?

Speaker 94 I didn't like him at first, but he's funny.

Speaker 81 He's nice to his parents.

Speaker 21 We know how to get people to fuck. Scott and Kara know how to get people to fuck.

Speaker 51 I'm going to go out with a group of people.

Speaker 96 I'm going to have a few drinks and make me make a few bad decisions that might pay off.

Speaker 129 The most rewarding thing in life is the opportunity.

Speaker 7 To partner with someone, fall in love, and raise children with a competent person and have a government that has wind in your sails to be economically viable so you're not fucking stressed all the time.

Speaker 7 My point is, we we need to level up young people.

Speaker 52 I don't like programs that target specifically one gender because I think it gets politicized.

Speaker 7 We need to level up all young people.

Speaker 21 Yes, I agree. Can I ask you a question?

Speaker 21 You mentioned. So were you the one that was, you know, you said after 30 years, they say which one liked one more?

Speaker 21 Your wife liked you less than you liked her, correct? At the beginning? I'm just guessing.

Speaker 68 Is that right? I'll give you exactly what happened.

Speaker 21 You've told me this story, but go ahead.

Speaker 61 I saw someone wearing nothing but a thong who was wearing at a pool party at the Raleigh Hotel.

Speaker 23 And I promised myself, I'm going to speak to that person before I leave, to that woman.

Speaker 63 And she was with another woman and another guy.

Speaker 47 And without the benefit of alcohol in the light of the midday sun, I thought, I'm going to go up and I'm going to introduce myself.

Speaker 71 And I'm like, you can make all sorts of reasons not to take your shot. It's like, how do you do it? What do you say?

Speaker 118 So I went out to the valet.

Speaker 46 I got so angry at myself.

Speaker 55 I went back in.

Speaker 34 I walked right up to him and I said, hi, I'm Scott.

Speaker 71 And I introduced myself.

Speaker 46 Where are you guys from?

Speaker 129 18 months later, our son's middle name is Raleigh.

Speaker 21 But I'm saying she liked you less than you liked her.

Speaker 24 I'm going.

Speaker 23 My stories obviously take too long. And I said to them, I hung out with them that day and I said, come to my friend, come to my place and I'll make you dinner.
I have no idea how to make dinner.

Speaker 23 So I called George and Holly Mattson, who I was sharing a place in Continuum in Miami with.

Speaker 23 And I said to Holly, who was out on a boat with George, I said, you need to get home and make dinner for me and these three people because I'm really into this one ridiculously cool hot woman.

Speaker 60 And we had a few drinks. We were having a great dinner.
We sat down on the couch and I sat down across from her and I said, look, I'm like, I pride myself on my transparency.

Speaker 50 This is exactly what happened.

Speaker 23 There's no adjectives or embellishments.

Speaker 40 I said, look,

Speaker 60 I pride myself on my transparency.

Speaker 75 I feel a really nice vibe with you.

Speaker 34 And I'm super interested in you.

Speaker 23 And I just feel a really nice connection with you.

Speaker 50 Do you feel the same?

Speaker 97 And she paused and thought about it. And she said, no.

Speaker 130 And the worst part was to pause so she can think about it.

Speaker 129 But she looked around and paused and went like, she really wanted to give me an honest answer. She was moved by my transparency.

Speaker 82 And she's like, let me think.

Speaker 42 No.

Speaker 74 No.

Speaker 51 No. And then the next weekend,

Speaker 36 I lied to her and said I was going to a party.

Speaker 80 It was actually the rehearsal party for my friends George and Holly Madsen, a rehearsal party.

Speaker 23 And she showed up in jeans and a Led Zeppelin t-shirt.

Speaker 61 And she was about to kill me because I didn't, I lied to her.

Speaker 16 It was a rehearsal dinner.

Speaker 105 And we spent every weekend together for the next, you know,

Speaker 79 three years.

Speaker 21 Well, there you go. You can, you worked on it.
Well, that's good. You know, with Amanda and I, it was equal, I have to say, it was equal.

Speaker 21 Although I did say to her, I can't believe she's actually agreed to marry me. When I said, I'm beachfront property.
I was single for a very short amount of time.

Speaker 21 I haven't been single since I've been married.

Speaker 128 I remember you were dating someone and then you weren't.

Speaker 20 Then you were dating.

Speaker 21 I don't want to talk about

Speaker 21 the relationship. But

Speaker 21 Amanda, we went out right away, like immediately after we were fixed up by friends of ours on a blind date. We were fixed up on a blind date.

Speaker 21 But I literally said to her something very soon after, like we started seeing each other. It was very equal, I have to say, was that I was beachfront property and she better grab it.

Speaker 44 Do you like that? Beachfront property.

Speaker 21 I note, is that the most obnoxious thing ever? Yeah, that's pretty bad. I'm beachfront property.
You better grab it now. It was not, it's going fast.
Going fast.

Speaker 47 I'm like a bad condo that's been repossessed in an auction.

Speaker 21 You're lucky to have me. Can I have a very brief thing on this bonker's crazy pants, getting rid of our African embassies across Africa?

Speaker 20 That was a subway.

Speaker 21 All the things that make us Americans, which are refugee help, human rights, climate change, et cetera. Any thoughts?

Speaker 94 Look, I don't,

Speaker 103 my view is that with brand, what is a brand?

Speaker 21 This is a brand. Right.
That's why I.

Speaker 27 A brand is unearned margin because of soft power, the promise of what you will get if you buy this brand.

Speaker 31 And you got to deliver against the performance.

Speaker 48 And the promise is what I would refer to in terms of aid overseas is soft power.

Speaker 88 And people feel good about us.

Speaker 23 When you see an American embassy, you know it's going to be well staffed.

Speaker 47 You know, they're polite.

Speaker 23 You know that if you're an American abroad and you get mistreated, you go straight to the embassy.

Speaker 23 And the fact that we're reducing our soft power all over the world, all that means is a reduction in the promise, a reduction in our brand, which will reduce our unearned margin across our business relationships, our safety.

Speaker 51 Do you think how many people, and the problem is you're not even going to realize how much damage it does.

Speaker 25 Do you realize how many people call our intelligence services when they suspect a terrorist cell somewhere?

Speaker 62 They call American embassies because they're like, you know what?

Speaker 50 Those are nice people.

Speaker 1 They're the good guys.

Speaker 32 And we're losing that.

Speaker 50 This is

Speaker 25 a reduction in soft power across America.

Speaker 21 Also, across Africa, we just decided to give Africa over to China anyway.

Speaker 52 Which, by the way, has been a hotbed for, quite frankly,

Speaker 6 it's not only

Speaker 86 not playing offense.

Speaker 100 Africa likely will have the greatest GDP growth over the next 40 or 50 years.

Speaker 40 It's just kind of time, right?

Speaker 46 And it has huge, unbelievable human potential, unbelievable natural resources.

Speaker 23 At some point, Africa is going to have its moment, and we want to be in there and establishing strong business and military relationships.

Speaker 84 You know, in addition, there are some hotbeds of terrorist activity in Africa, and we want African nations and governments cooperating with us.

Speaker 51 It all comes down to the same thing.

Speaker 56 To believe that you can build a bubble around your shores is just naive.

Speaker 58 I've always believed you not only take the fight to foreign nations, you take the empathy and the goodwill.

Speaker 89 It has to be a carrot and a stick.

Speaker 21 Yeah, I agree. This is, it's an astonishing thing.
We're just giving up. Literally, I know it sounds dumb.
Do you remember like sort of the image I have of you, this, you know,

Speaker 21 Hershey Bars by GIs and stuff like that? Like all this stuff we did. It sounds like it's such a trope, but it's so like we are the good,

Speaker 21 we've not always been the good guys, but we're the good guys. And now the Chinese are going to be the good guys.
And they are not the good guys, by the way. It's just grotesque.

Speaker 21 Anyway, let's go in a quick break. We come back, China's latest salvo in the trade war and Netflix.

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Speaker 21 Scott, we're back. China is warning countries not to make any trade deals with the U.S.
at China's expense and is threatening retaliation against countries that do.

Speaker 21 They're doing the carrot and stick situation. China said it was responding to foreign media reports that the Trump administration was trying to pressure other countries as a negotiating tactic.

Speaker 21 Harming the interests of others for one's own selfish and short-sighted gains is like negotiating with a tiger for its skin. Oh, that's an interesting metaphor.

Speaker 21 The Chinese Ministry of Commerce said in a statement. They went on to say, in the end, it will only lead to a lose-lose situation.
Why do the Chinese seem so reasonable at this moment?

Speaker 21 What does it make of the strategy? I mean, obviously, they're going to have to threaten too, because we're threatening, presumably.

Speaker 42 Our threats mean less and less.

Speaker 25 I do think that one of Obama's biggest mistakes was not responding when Syria crossed that red line.

Speaker 45 You should make very, very

Speaker 32 few threats, but what they should be is not threats.

Speaker 22 They should be promises.

Speaker 63 And

Speaker 56 unfortunately now, we're just, we're threatening everybody.

Speaker 89 So no one takes this seriously.

Speaker 32 They're like, I just don't think we have, there's no veracity with our threats.

Speaker 60 Because it's like, well, he didn't threaten Canada, but he came after them for no apparent reason.

Speaker 23 And then when he threatens to ban TikTok, he does.

Speaker 21 Harvard, it was a mistake.

Speaker 77 We are not a serious people.

Speaker 35 It just doesn't,

Speaker 38 we have absolutely no authority or reliability.

Speaker 80 We come home every day to a drunk, manic depressive, bipolar mate.

Speaker 31 We don't know who we're waking up against or we don't know who we're waking up with every morning.

Speaker 36 And the fact that any nation is going to respond and back down other than saying, oh, okay, sorry.

Speaker 16 And wow, have you lost weight, Mr.

Speaker 27 President?

Speaker 65 And then to just back channels to China and say, hey, we really should have those talks we were talking about about lowering trade barriers.

Speaker 14 And China, oh my God, they must be licking their chops, as is Vietnam, as is Turkey, as is the EU.

Speaker 42 The EU is, I mean, obviously this has hurts them, but they're making all sorts of, they're doing all, they're working overtime.

Speaker 78 They're doing all sorts of trade deals right now.

Speaker 21 Yeah, and they still don't want to turn their back on us and they don't have to.

Speaker 21 Anyway, amid all the economic turmoil and confusion, one company that is weathering the storm is fine and people are worried about this.

Speaker 21 Netflix, the company reported in its Q1 earnings last week, beating revenue and earnings targets. And a letter to shareholders, Netflix said the revenue and profit growth outlook remains solid.

Speaker 21 It's not making any changes to its forecast for the year.

Speaker 21 Look, this is the one company that stays going, even despite the volatility, because it requires, I would imagine, maybe making, they make a lot of films elsewhere, but a lot of their stuff is sort of tariff protected in a weird way, correct?

Speaker 52 Yeah, I don't see how it's subject.

Speaker 80 I mean, eventually, eventually it'll impact them, but I mean, this this is, this is arguably, I mean, we always say this about a lot of companies, but one of the best managed companies in the world, but arguably the best pivot in the world.

Speaker 64 They were sending out DVDs.

Speaker 129 A real insight was, they said,

Speaker 63 a real insight was the best broadband in the world is the U.S.

Speaker 33 postal system.

Speaker 82 that rather than trying to send a movie over pipes, send it in the mail.

Speaker 7 And then when the pipes caught up to the mail, they said, we're pivoting.

Speaker 31 And that was the ultimate pivot and it worked.

Speaker 23 They then adopted a page out of Bezos' playbook and said, if we can paint a really compelling vision for this company and deliver against it on an incremental basis, we can attract more cheap capital, which gives us more and more money.

Speaker 39 And we're just going to literally outspend, we're going to overwhelm the competition with capital.

Speaker 27 And they spent $18 billion a year.

Speaker 31 And then when they kind of pulled ahead and it was clear no one was going to be able to caption in terms of capital, they then globalized the industry and did to LA what Tokyo did to Detroit.

Speaker 25 And that is they moved huge production facilities overseas.

Speaker 86 And now they can, on $18 million, on $18 billion in content, which is what,

Speaker 40 five to eight times what HBO, Apple, all of them spend, Apple, I think, spends $5 billion.

Speaker 82 They can spend, if they're spending three times what another company spends in gross dollar volume, they can produce four times the content because it's just a better managed company.

Speaker 95 About, I think now almost 40 or 50%, or maybe even more of their capital is spent overseas in production than spent domestically.

Speaker 21 Yeah, they really were smart about that. They also brought shows from there, either remade them or used them from there.
They were very good about the globalization. Let me say, let me give kudos.

Speaker 21 to Reed Hastings, who has stepped down as executive. He was executive chairman.

Speaker 21 He was very quite involved to chairman of the board. I met Reed when he was selling those DVDs.
I mean, he was moving those DVDs very early in Netflix's history.

Speaker 21 And there had been a series of companies like this, if you recall, that were trying to do this, what he was doing. I did a very famous interview with him.

Speaker 21 I think it was 2007, maybe, with him, the head of Hulu at the time, Jason Kylar, and Chad Hurley, who's the head of YouTube. And

Speaker 21 we were put down in a basement. And I always thought that these three, especially Reed Hastings, really had a vision for the future.

Speaker 21 But they, they, he, he really, even though he's dropping his status, he's, he's the pivotal person who made a lot of decisions.

Speaker 21 And he is smartly followed with executives that he has cycled out some that haven't worked, even though if they did well for a while, I have to say, he really has to go down as one of the greatest.

Speaker 24 Agreed.

Speaker 23 But I mean, and kudos to Reed, he brought in Ted Serandos and Ted, whose job as a young man, he ran six or eight video rental stores.

Speaker 52 I mean, the guy just has a feel for content.

Speaker 63 And they now are leveraging their platform.

Speaker 49 They're going into video games.

Speaker 23 They're going into

Speaker 7 sports.

Speaker 23 They're going into, this is a scary one.

Speaker 22 They're going into podcasting.

Speaker 64 The really interesting thing would be the clash of the titans the celebrity deathmatch would be if alphabet spun youtube i mean the war between netflix and hbo and disney and

Speaker 23 it's not that's not the war that's over the war if there is one is between netflix and youtube that's why they should spin it off by the way youtube happens to be bigger by the way 13 versus netflix at 11.

Speaker 21 yeah anyway you're right and who would be the ceo of that i mean they would try to get sarandos obviously right they try to grab him, but...

Speaker 79 Of YouTube? Yeah.

Speaker 40 Oh, I think Neil Mohan's done an incredible job.

Speaker 21 I'm just wondering if they would go, but that would be great. He has.
And before that, another person who I had great regard for, Susan Wojewski, who died, also did a great job

Speaker 21 there while she was running it. And she was one of the very earliest, in fact, one of the earliest Google executives.
They started Google in her garage. So yeah, you're right.

Speaker 21 YouTube versus Netflix is the story.

Speaker 19 There's really the story.

Speaker 21 Anyway, all right, Scott, one more quick break. We'll be back for wins and fails.

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Speaker 135 Sometimes the difference between success and failure comes down to one chance encounter or following a counterintuitive instinct or ignoring conventional wisdom to make a bold decision.

Speaker 135 Like when the founders at Palo Alto Networks wanted to redefine cybersecurity for the modern age.

Speaker 136 Everybody thought we were crazy. Nobody would use the cloud for cybersecurity.

Speaker 135 Or when mobile gaming giants Supercell could only rewrite the rules of the industry after failure in the company's formative stages.

Speaker 133 Many of the best things we've learned have actually come through failures.

Speaker 135 These are all examples of Crucible Moments, turning points in a company's journey that made them what they are today. Hosted by Sequoia Capital's Rolof Bota, Crucible Moments is back for a new season.

Speaker 135 With stories from Zipline, Stripe, Palo Alto Networks, Supercell, and more. Subscribe to season three of Crucible Moments.

Speaker 135 New episodes are out now and you can catch up on seasons one and two at cruciblemoments.com on YouTube or wherever you get your podcasts. Listen to Crucible Moments today.

Speaker 21 Okay, Scott, let's hear some wins and fails. Why don't you go first this week?

Speaker 32 You have an easier time disassociating than me.

Speaker 70 I've been so stressed and upset about everything that's been going on that to just be at the Royal Albert Hall listening to beautiful music that reminded me, I think it it was Diane, was it either, I think it was Gloria Vanderbilt, Anderson Cooper's mother, who said that the happiest time in her life or the happiest time she believes in anyone's life is when you're, when you have young kids at home.

Speaker 67 And I do think I'll look back on that and look at that as the happiest time in my life.

Speaker 27 But feeling that music in that venue, it was just so extraordinary and just absolutely gave me an hour of peace and emotion to share with someone I care a great deal about in the content.

Speaker 34 I mean, we just knew exactly how we were both feeling.

Speaker 23 I felt very connected to London. I felt very connected connected to music.

Speaker 54 And it was just a nice hour of respite.

Speaker 21 Does anything else remind you of that? Like Saul was wearing a shirt that Louis used to wear this weekend, and that gave me the chills in a good way.

Speaker 7 You know what is incredible is

Speaker 47 a woman who used to work with me at L2.

Speaker 55 I don't think I'm speaking out of squalid.

Speaker 71 I wouldn't say her name, but she just took on a strategy role at Apple's and she's overseeing memories.

Speaker 88 You know that, do you have those things that pop up?

Speaker 30 Yeah. Oh my gosh.

Speaker 59 That I'm you know, as you know, I'm fascinated with death.

Speaker 99 I'm just going to play that shit over and over and live my life again.

Speaker 32 Those, that does, music does, seeing certain people does.

Speaker 59 I mean, that's, and the piece of advice I would give to anyone, especially men who have a tough time with this, you know, from the, I've said this, from the age of 29 to 45, I didn't cry.

Speaker 99 I didn't cry when I got divorced.

Speaker 67 I didn't cry when my mom died. I just kind of forgot how.

Speaker 71 And it is a real gift to.

Speaker 63 in a practice, an effort, to really lean into your emotions.

Speaker 54 If you hear something funny, force yourself.

Speaker 7 This is one of the things I really like about you.

Speaker 74 You laugh out loud.

Speaker 84 You have a wonderful laugh and it's infectious.

Speaker 36 And it gives everyone else permission to laugh and it just makes everything a little lighter.

Speaker 100 If something upsets you or it moves you sentimentally, let yourself weep, let yourself cry because it informs what's important to you.

Speaker 23 When you see a piece of art or a piece of creative that inspires you, sometimes I even rewind it 15 or 30 seconds and say, wow, this is such a wonderful scene.

Speaker 78 I want to watch it or I listen to music.

Speaker 95 Really lean into into your emotions because our advantage as a species.

Speaker 4 You're a crier.

Speaker 20 You're a crier. I cry at the door.

Speaker 30 You really are. I'm a hat.

Speaker 50 You do. I cry at the door.

Speaker 29 You really do.

Speaker 21 I'm scared to watch certain movies with you.

Speaker 49 It's one of the things I like.

Speaker 59 I like the messy part of myself.

Speaker 22 My kids see me cry all the time.

Speaker 44 You win?

Speaker 21 You're fail. Excuse me.
You're fail.

Speaker 78 Don't rush me through my personal parables

Speaker 46 as I open myself to you and you jab.

Speaker 20 You jab.

Speaker 74 But my lesson here is...

Speaker 21 I let you cry.

Speaker 20 I like your cries.

Speaker 100 Our advantage as a species is our cooperation and the way we cooperate is we communicate.

Speaker 35 A close second is we're able to feel things.

Speaker 23 That part of our brain is bigger, with the exception of elephants and killer whales, which, by the way, should not be locked up in tanks when you realize how emotional they are.

Speaker 95 If you don't lean into your emotions, you're not taking advantage of what it means to be human.

Speaker 64 And it's very rewarding.

Speaker 39 It really informs your life.

Speaker 99 Otherwise, you're like me, 29 to 45, and just kind of sleepwalking through life and thinking, okay, how do I make more money and have more sex?

Speaker 23 Which was an empty, meaningless experience because a pretty good empty, meaningless experience, but this is better.

Speaker 40 Anyways, my win is the Royal Albert Hall and back and listening to Morning Phase and thinking about my boys.

Speaker 45 My fail is

Speaker 62 at the end of the day, management is just one thing.

Speaker 71 It's your ability to allocate capital to a greater return than your peer group.

Speaker 34 And the cruel truth of capitalism is every organization has a finite or scarce amount of resources.

Speaker 49 So Tim Cook's job is just to allocate capital more efficiently than the CEO of Meta or Samsung.

Speaker 23 And the president has more capital to allocate than anyone in history.

Speaker 32 And the best allocation of capital, and we talked about this, is the investment in our universities. And probably the greatest innovation in history was our race to split the atom.

Speaker 80 If we hadn't gotten there first, and Hitler had, we'd be doing this podcast in German.

Speaker 24 And that effort, and one of the things I don't think they did a great job of in the movie Oppenheimer, was nodding to all of the universities that were involved.

Speaker 20 Oh, yeah, you're right.

Speaker 90 And I'm going to get some wrong here, but Caltech, Berkeley, WashU, Purdue, University of Minnesota, Chicago, University of Chicago played a huge role, Rochester, Princeton, all of these universities were working on different things from the effects of radiation to the risk of us lighting the atmosphere on fire.

Speaker 37 And these individuals were so who had this incredible, esoteric, generic, ridiculously mile deep and a centimeter wide expertise in something were all coordinated by the army and the government to try and figure out a way to get there first to literally save the world.

Speaker 80 That has happened every day since then and has given us unbelievable return on investment.

Speaker 130 And it's not only capital

Speaker 91 through investments in our great universities, but it's the ability to attract the best human capital that know how to deploy this capital because they're so brilliant.

Speaker 128 And

Speaker 46 when you start sending out errant emails, which by the way, end up are not legal, telling people, graduate students, to self-deport, let me give you a basic rundown on who our students are in our universities.

Speaker 23 The undergrads at our elite universities are a mix of rich kids and freakishly remarkable Americans, and then a combination of the two from foreign countries.

Speaker 82 At business school, I won't speak for other graduate schools, the MBAs are the following.

Speaker 22 The Americans at business schools are what I affectionately call the elite and the aimless.

Speaker 71 They're good, smart kids who hated their first job, don't know what the fuck to do with their lives, so they they go back to business school to try and figure it out.

Speaker 55 There's nothing wrong with that. I was one of those people.

Speaker 39 And then the foreign students are the richest kids from Paraguay whose dad owns the licensing agreement from L'Oreal and the ultimate luxury brand is to send their kid to NYU or Stanford.

Speaker 78 And by the way, those are the kids you want to party with because they're rich kids and they love to party and also they're going to be running their country at some point.

Speaker 77 And then there's the PhD students.

Speaker 71 The PhD students, we don't cash their check for $72,000.

Speaker 73 We pay them and they come here and take on a very narrow topic and they're so good at what they do that they teach students and then they go on to do nothing but focus on a tiny part of the world and decide, I'm going to know more about this tiny part of the world than anyone in the world.

Speaker 39 Arguably the most impressive cohort in America is our PhD students.

Speaker 77 We get the Tom Brady's.

Speaker 94 of every nation who decides, I'm super into liquid particle propulsion dynamics and I'm going to go to the University of Wisconsin at Madison and devote my life to it.

Speaker 86 We find these people that have done nothing but go so fucking deep around this specific topic that they know more about it than anyone in the world.

Speaker 98 And yet we've decided we don't, we want to scare these people from coming here.

Speaker 21 We haven't. One person has decided.

Speaker 64 Well, we not, we elected this guy, but

Speaker 91 it's as if we're a team and we get the number one draft choices from everywhere.

Speaker 32 And then Tom Brady shows up and we said, you know, Tom, I hate to say this, but there's a chance you might show up one day and ice might be there and ruin you and your family's life for no goddamn good reason.

Speaker 100 We are scaring away

Speaker 95 one of our core competences, our core advantages globally is not only the fact that we allocate capital to this university, but we attract the finest human capital to allocate this capital, resulting in unbelievable innovation that has driven prosperity, that has driven unearned margin.

Speaker 46 My fail is an unnecessary turning away of the strongest human capital in the world.

Speaker 20 And that is our amazement.

Speaker 70 You meet a, just trust me on this, you meet a PhD student from India.

Speaker 36 I don't care what fucking field there are, you're talking to someone who was the best at their elementary school, then the best in their region, then the best in their state, and then the best at IIT, and then figured out a way to come to the University of Pennsylvania and study options theory and and helps banks figure this shit out.

Speaker 21 It is incredible what they're doing here, the destruction around, not just there, but at NEH. Okay, mine are.
I have so many wins today.

Speaker 21 One, I recommend you reading Larry Davids, My Dinner with Adolph, which is a sort of attack on, it's a very funny thing of him having dinner with Adolf Hitler and making fun of Bill Maher.

Speaker 21 It's very, very, very funny. Bill Maher needs to step down on defending it.
Nobody thinks you shouldn't have had dinner with him, Bill.

Speaker 21 They just, you're moving into Gail King territory here in defensiveness.

Speaker 21 But it's really funny, Larry Davids' little essay in the New York Times. And I love Larry Davids so much.

Speaker 21 My other win is more seriously, is Alaska Senator Lisa Markowski, one of the few Republicans criticizing Trump.

Speaker 21 She admitted last week she was afraid and fears retaliation, but she's doubling down and being sort of a leader in that way.

Speaker 21 And she does, you know, she has won, she won despite an attack by Trump in the last election. So she's safer than most people at this moment in time, but good for her for doing that.

Speaker 21 And I think it's infectious, just like what Scott was just talking about at universities.

Speaker 21 When Harvard did it, then MIT did it, then others did it. Now Columbia looks like it might be finding its spine at some point.
So I really admire her for doing that.

Speaker 21 Also, I just for a little thing, this is a picture, speaking of medical students. This is a picture my mom found of my dad from, it fell out of a drawer of hers this week.
And this is me as a kid.

Speaker 21 My mom's pregnant with my brother, but there's our little family being very feckin' Donald Trump. But we did it because my dad was a poor guy, like you said, and he got a break.

Speaker 21 He got, he went to the, he went to the Navy, paid for medical school, built his family, was able to lift himself up from not poverty in West Virginia, but not means in order to go to West Virginia and to go to school there and stuff.

Speaker 21 So that's nice.

Speaker 21 And then my fail is this continued, it's sort of coming together.

Speaker 21 Wired has a piece of something I have talked about on this podcast.

Speaker 21 The scale at which Doge is seeking to interconnect data, including sensitive biometric data, is unprecedented, raising alarms with experts who fear it may lead to the disastrous privacy violations for citizens and immigrants alike.

Speaker 21 I've always said their game was uniting the data. I heard this weekend, I'm not going to say who it was, by someone who's considering leaving the United States.

Speaker 21 European countries are offering our greatest technologists. Speaking of what you're talking about, Scott, it dovetails perfectly.

Speaker 21 Countries are trying to get our technologists to go there by giving them visas so they're safe.

Speaker 21 And a lot of people who I never thought would consider it are considering it because they fear retaliation. You know,

Speaker 21 the thing, the executive order against Chris Krabs has been chilling to a lot of people I know who've been working on really important things.

Speaker 21 And the whole point of Doge is to unite this data, as I've said, to create an Uber data situation, which has never been united, to create an ability to cross-reference things that have never been cross-referenced, and for good reason.

Speaker 21 It's not for efficiency. They don't do it.
It's because we're scared of creating a surveillance state the way they have in China.

Speaker 21 And so the fact that it's a reverse brain drain going on really dovetails in what Scott was talking about: we are rejecting the finest from elsewhere, but our own people will be leaving our country to develop in other countries.

Speaker 21 And that is the biggest tragedy of this. At the same time, the government is creating an an Uber database.

Speaker 21 I have said this over and over again. I know you said Elon's leaving, but the legacy of what he's doing here is incredibly dangerous for our freedom, as far as I'm concerned.

Speaker 21 So I think we should pay a lot of attention to these databases being joined in a way that you'll be searchable and findable. And there will be so many mistakes in the data that it's terrifying.

Speaker 21 A lot of people considered dead, that aren't dead, have to prove they're not dead now. People that are getting arrested that are American citizens now.

Speaker 21 We shouldn't be arresting these immigrants without due process.

Speaker 21 But now it's moving because of mistakes and everything else. And also

Speaker 21 it will not be mistakes at some point.

Speaker 21 So we should be very wary about what Doge is doing in that regard and pay attention, even if Elon's been out of the news a little bit recently because of so many other. ridiculous situations.

Speaker 21 So I just please pay attention to that. Wired has a great story on that this week.
And so that is my fails.

Speaker 21 If we don't pay attention, they will have all our information and then do terrible things to us.

Speaker 82 I'm still kind of

Speaker 28 sort of blown away by your

Speaker 25 speculation or thesis that

Speaker 55 all of these, both the government and Musk are bringing all this information together to develop sort of one like,

Speaker 22 I don't know, skynet of surveillance,

Speaker 23 of surveillance, control, and capital.

Speaker 21 It'll be used against immigrants first, but it's always, you know, it's always for more.

Speaker 21 And by the way, I don't want Democrats having this power either.

Speaker 21 fyi i don't want any of them having this power i i i you can have your opinion about whatever you thought about um the various things of leaking information but the government should never have this much power and information about people in one place it will always be abused um as as has been shown throughout history anyway uh we want to hear from you send us your questions about business tech or whatever's on your mind go to nymag.com slash pivot to submit a question for the show or call 85551 pivot elsewhere in the Kara and Scott universe.

Speaker 21 I talked with Melinda French Gates and on with Kara Swisher. Let's listen.

Speaker 19 I never,

Speaker 21 never would have guessed that USAID would essentially be folded.

Speaker 21 You know, it was endorsed by Republican and Democratic administrations because they saw that people could live where they were if they had good health and they had peace and some chance for prosperity.

Speaker 21 And so to see that, you know, 16 million women won't have access to maternal health services because of that pullback, how does that make us look better? How does that help us with peace?

Speaker 21 It's just what you were saying, Scott. Same thing.
You and Melinda Gates are on the same wavelength.

Speaker 21 Also, I'll be interviewing Lisa Su, the CEO of AMD, speaking of badass women, live on stage at Johns Hopkins University Bloomberg Center in Washington, D.C., this coming Monday, April 28th, a week from now.

Speaker 21 If you want to hear a smart conversation about semiconductor chips, industrial policy, and the future of AI, Google Kara Swisher and Lisa Su, SU, to RSVP, tickets are free. Okay, that's the show.

Speaker 21 Thanks for listening to Pivot. Be sure to like and subscribe to our YouTube channel.
We'll be back on Friday. Scott, read us out.

Speaker 99 Today's show is produced by Larry Naiman, Zoe Marcus, and Taylor Griffin.

Speaker 107 Ernie Intertod engineered this episode.

Speaker 17 Jim Mackle edited the video.

Speaker 120 Thanks also to Drew Burroughs, Ms.

Speaker 99 Severo, and Dan Shallan.

Speaker 8 Nashot Kirwaz Vox Media's Executive producer of podcasts.

Speaker 99 Make sure you subscribe to this show wherever you listen to podcasts. Thanks for listening to Pivots from New York Magazine and Vox Media.

Speaker 57 You can subscribe to the magazine at nymag.com slash pop.

Speaker 8 We'll be back later this week for another breakdown of all things tech and business Beck's morning phase.

Speaker 41 Trust me.

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