Pivot – Rupert, Russell, and a Looming Shutdown

Intro

In this episode of the “Pivot” podcast, hosts Kara Swisher and Scott Galloway discuss the departure of media mogul Rupert Murdoch, the challenges faced by Instacart and Disney, allegations against Russell Brand and the CEO of CS Disco, investigations into Elon Musk’s financial activities, Twitter’s subscription plan, and the potential government shutdown. They also touch on topics like dress codes in the Senate, college rankings, and the use of AI in music and virtual assistants.

Main Takeaways

Rupert Murdoch’s Departure

• Rupert Murdoch, 92 years old, is stepping down from the Fox and News Corporation boards and moving to a chairman emeritus role.
• His son, Lachlan, becomes the sole executive in charge of News Corp. and will continue as executive and CEO of Fox Corp.
• Murdoch will officially hand over the reins at the company’s annual meeting in November.
• It is unclear whether Murdoch is stepping down due to sickness or simply wants to live it up with his new girlfriend.

Instacart’s Challenges

• Instacart’s IPO values the company at over $11 billion, down from its pandemic high-private market valuation of $39 billion.
• The company’s current valuation is about 3.9 times annual revenue.
• Two-thirds of Instacart’s revenue comes from grocery delivery, while a third comes from media advertising on the platform.
• The two businesses of grocery and media advertising are not good businesses.

Disney’s Park Investments

• Disney plans to double its investments in theme parks and cruise lines to $60 billion in the next decade, and revenue from theme parks has helped offset streaming losses.
• Disney is considering selling off its linear TV assets, and many potential buyers are interested.
• The operating profits of Disney’s theme parks have grown from 2 billion to 10 billion in the last 10 years, and they print money.
• Disney and Universal have become a must-visit destination for families with children, creating a huge opportunity for Disney to invest in their parks and differentiate themselves from competitors like Amazon and Apple.

Allegations Against Russell Brand and CS Disco CEO

• Russell Brand is facing allegations of rape, sexual assault, and emotional abuse, resulting in demonetization on YouTube and being dropped by his book publisher, The BBC, and his agency.
• The CEO of CS Disco resigned abruptly after allegations of groping, giving up stock options worth $110 million.
• While everyone is innocent until proven guilty, the stories surrounding these individuals raise concerns and await further investigation.

Investigations into Elon Musk

• Investigators are looking into whether Elon Musk used Tesla funds to build himself a glass house and engaged in dealing between Tesla and other Musk-connected entities.
• The new information shows that there is even more interest in what Elon and Tesla have been up to, and criminal charges might be in the mix.
• There is a governance issue, but there is no evidence of anything illegal.

Twitter’s Subscription Plan

• Elon Musk plans to charge all ex-users a monthly fee to combat armies of bots on the platform.
• The plan includes a lower price tier than the $8/month for ex-premium subscribers.
• The plan may be difficult to execute and seems like a flailing business strategy.
• Many people are not willing to pay for the subscription plan.

Potential Government Shutdown

• Congress is facing a potential government shutdown at the end of the month.
• House Speaker Kevin McCarthy is facing division within his own party as right-wing GOP members push for lower spending and cuts to federal agencies.
• The shutdown would have negative impacts on the economy and national security, including travel delays and disruptions to military aid and training for Ukrainian forces.
• Republicans are willing to shut down the government because they don’t like government and want to see a shutdown.

Summary

Rupert Murdoch’s Departure

Rupert Murdoch, the 92-year-old media mogul, is stepping down from his roles at Fox and News Corporation, handing over the reins to his son, Lachlan. The reasons for his departure are unclear, but it comes as a surprise ahead of the election. Murdoch’s legacy in the media industry is controversial, with both praise for his business acumen and criticism for his attacks against progressive voices and undermining of elections.

Instacart’s Challenges

Instacart, the popular grocery delivery platform, is facing challenges as its IPO valuation drops significantly. The company’s reliance on grocery delivery and media advertising as revenue sources raises concerns about its long-term sustainability. The grocery store industry’s tight margins and the company’s high valuation pose additional challenges.

Disney’s Park Investments

Disney’s plan to invest $60 billion in theme parks and cruise lines highlights the company’s belief in the value of these attractions. The operating profits of Disney’s theme parks have seen significant growth, providing a financial cushion against streaming losses. By investing in their parks, Disney aims to differentiate itself from competitors and maintain its appeal to families with children.

Allegations Against Russell Brand and CS Disco CEO

Russell Brand and the CEO of CS Disco are facing serious allegations that have led to professional consequences. While the presumption of innocence should be maintained, the stories surrounding these individuals raise concerns and await further investigation.

Investigations into Elon Musk

Investigations into Elon Musk’s financial activities, including the use of Tesla funds and potential dealing between Tesla and other Musk-connected entities, have sparked interest. While there is no evidence of anything illegal, governance issues have been raised. The CEO’s sudden resignation and the SEC investigation may be linked.

Twitter’s Subscription Plan

Elon Musk’s plan to charge ex-users a monthly fee to combat bots on Twitter raises questions about its feasibility and effectiveness. The subscription plan may face challenges as many users may not be willing to pay for the service.

Potential Government Shutdown

The looming potential government shutdown raises concerns about the impact on the economy and national security. Divisions within the Republican party and their willingness to shut down the government highlight the challenges of governing and the need for bipartisan cooperation.

Conclusion

This episode of the “Pivot” podcast delves into various topics, including the departure of Rupert Murdoch, challenges faced by Instacart and Disney, allegations against Russell Brand and the CEO of CS Disco, investigations into Elon Musk, Twitter’s subscription plan, and the potential government shutdown. The discussions shed light on the complexities and controversies surrounding these issues, highlighting the need for further investigation and thoughtful analysis.