>> from the heart of where innovation, and money combined from the heart of silicon valley, this is "bloomberg technology with emily chang.

-- the heart of where innovation, technology, and money combined, from the heart of silicon valley, this is " bloomberg technology" with emily chang. emily: esg worries have roiled bitcoin in recent weeks. we will hear from an early adopter whose firm, osprey funds, may soon be swept up i coinbase. -- by coinbase. facebook's board rejects two proposals to resume mark zuckerberg's power. u.s. stocks tied to a broader economic reopening lead the way today. >> green on the screen. it was a good day for markets, especially if you were a tech investor from big tech. green on the screen helped to lift the likes of s&p 500 and

nasdaq 100, but now that we have a macro out of the way, let's get to the really big story, which is amazon, and for two reasons. that also helped lift major averages. this idea that they could actually be entering the physical pharmacy market, but let's look at the longer term. they have a pattern of really powerful rallies and a little bit of stagnation, a little bit of sideways trading, and it seems like that is where we are right now, the sideways trading. today, though, one of the top performers in the s&p 500 lifting gains, but competitors on the pharmacy side as well as the media side not doing so well. you can see cvs, walgreens really taking a hit after that physical pharmacy report. we know amazon is a disrupter. now they're going into pharmacies. cvs and walgreens not going to like it. on the media side, lions gate

taking a hit after that amazon mgm report. if you had a tech giant on your side, you kind of did pretty good today. emily: interesting way to put it. i want to dig into our top story, which is amazon agreeing to buy mgm studios, the deal setting up the e-commerce giant to become a more formidable force in the streaming industry and it also puts more pressure on retail rivals by offering customers more free tv and movies for the price of that prime subscription. let's take a look at what it all means. the multibillion-dollar deal between amazon and mgm means you could soon see "james bond" or "rocky" in your amazon shopping cart. also soon to be headed to amazon prime video, the "pink panther"

and "robocop" franchises as well as award-winning films. it is amazon's biggest acquisition since fighting whole foods in 2017, and jeff days of has not been shy about spending big on his media darling -- just bezos -- jeff bezos has not been shy about spending big on his media darling. amazon has made any living billion dollar commitment to thursday night nfl games. buying a story studio makes amazon a more credible heavyweight in the increasingly crowded streaming market. at&t sealed the deal to merge with warner media operations last week, including hbo, shaking at the entertainment hierarchy yet again. is this just the beginning of long-awaited media consolidation? either way, it is the biggest move yet by a tech giant to rock a hollywood vote.

-- rock of the hollywood vote -- rock the hollywood boat. is this a good deal for amazon? >> it makes a lot of strategic sense. i think what they are trying to do is figure out more ways to drive prime penetration, which jumped dramatically for them over the last 12 to 18 months, and based on survey work we have done, the number two reason why consumers sign up for prime is access to prime video. prime hopes amazon because those customers are far and away the most valuable customer co-howard -- customer cohort that amazon has. we do think streaming is a large market. we are not the only one who thinks that. disney upended its entire

business model to go after it. netflix remains the leader in the space, but it can generate a lot of free cash flow. yes, this makes a lot of strategic sense. emily: amazon got off to a slow start in hollywood. razors has shown he is willing to spend here. what does mgm bring amazon that it did not have before? -- bezos has shown he is willing to spend here. >> the first is just the sheer volume of historical library titles. something you mentioned. the "bond" franchise. 4000 films, 17,000 tv shows from "survivor" to "the boys" to "handmaid's tale." to put on prime or licensed to third parties if that is something they want to do and possibly explore for reimagine as jeff bezos said today, into

new spinoffs for films and tv shows, kind of the way disney did with marble. the other thing they are really getting is just this slate of talented hollywood executives that are well connected to this business and are going to help it get an even greater foothold in hollywood to make new productions and inroads with distributors. emily: you also cover netflix. is this a threat? >> two responses. one is that it is. it is a recognition that there are four or five mega platforms in this space. you have disney, google/youtube, maybe apple, discovery with time warner, and amazon and netflix. that's five large players. it clearly indicates the scope of the spending required to be competitive in the segment.

you got to be willing to cut checks of at least $10 billion a year to be competitive, and netflix is doing that. they are spending $17 billion a year. most household are going to sign up for three or more services. that is routine. i'm almost certain netflix will be one of those three, so netflix has a hedge though competitive risk is rising. emily: is amazon going to be one of those three? >> i don't know that they will. i know amazon's prime program is going to be most -- it is something that almost 80% of u.s. amazon customers are prime customers, so that will be ubiquitous. my guess is what we look at the survey work, what we see is the more likely you are to be a prime member, the more likely you are to be a netflix member. like those two services are complementary. i think that is the bigger trend. there may be some

competitiveness, but the broader thing is consumers are optimizing digital trends, and both companies can capitalize on that. emily: what is the reaction in hollywood on the ground? >> i think initially, there was some surprise. people kind of wondered if kevin over, who owns the lead hedge fund that funds mgm, if he could pull this off. deal rumors have taken place for years and years. we have heard everything from apple to chinese companies that were interested in the studio. this latest deal process started at the end of last year. we know there were plenty of studios that took a look, and tech companies that took a look. ultimately, amazon was willing

to pay the price tag that mgm wanted, so i think people are a little bit surprised that the number was so high, but i think they see the logic in it, given the difficulty of being an independent studio these days. emily: it is a big bet and a way to kick off shareholder meetings with a bang. the other big news, jeff bezos finally giving a date for his departure -- july 5 is the day andy jaffe will take over as ceo. are you at all concerned about jeff bezos leaving the ceo role, looking at many of the big the company has made, many of which -- not all of them but many of which have paid off? >> if he is not going to have an active role in the company at some level, i think that makes amazon as a stock less attractive. the open question is he will stay as an executive chairman.

i think what brad stone has pointed out better than anyone else is that he has really been the inventor in chief, which is rare, at amazon. some of their best ideas, he was single-handedly or very heavily handedly involved in generating -- alexa, aws, etc. the company can operate well, but can they innovate without him? that is the big question for investors. emily: we are talking a little more about that at the bottom of the hour. thank you so much for joining us. coming up, bitcoin bounces off $40,000 yet again as crypto volatility continues. plus, nvidia out after the bell with better-than-expected first quarter revenue, also beating on second-quarter product revenue.

plenty more next. this is bloomberg. ♪

emily: bitcoin investors have and focus on one magic number, and that is $40,000. our ed ludlow is here to break it down. eddie: 40,000 dollars is around the two-day moving average. we have seen it hit $40,000 and dipped back down more than once. for those that follow the technicals, those that really love the lines and numbers, that

is a bearish signal that the price of bitcoin is not able to maintain or go beyond $40,000. come with me to my bloomberg terminal and look at this chart. you have to go all the way back to april 20. only on one single day has bitcoin been positive on a monthly basis. it has been suggested this could just be profit taking. the movement in bitcoin has been so crazy, why not take a bit of profit and get out? also, as you know, this is an element of sentiment. bloomberg heard from carl icahn, legendary investor, on his crypto investments. take a listen. >> i'm just looking at how i could get involved in it in a relatively big way. i do think it is here to stay in one form of another. ed: he was interested in the

spillover into other asset classes. there was a study that said some of what we are seeing in stocks is related to cryptocurrencies. but those cryptocurrencies directly, my goodness, look at the moves. when we see those big swings in cryptocurrencies like bitcoin, related stocks follow suit. emily: thanks for that. i want to stick with bitcoin and the broader crypto landscape, with an early bitcoin a, the ceo of osprey fund. what advice do you have for folks dealing with this volatility? >> stick with it. i have then involved with bitcoin a long time -- i have been involved with bitcoin a long time. feels like 80 years. in real life, it has been seven

or eight years. this was a big drawdown. it is definitely concerning for most investors, and that is why you want to right size your portfolio, invest as much as you are willing to deal with this volatility on. emily: what about diversity? you tell investors to diversify their portfolio. for folks who want to know, where should i go -- don't -- d oge? i still don't get it. >> doge is a universe unto itself, but people wonder how much of the universe does bitcoin represent. what that means is the ecosystem is growing around not just

bitcoin and ethereum, but around that. we have been focused on trying to curate and bring new product focused on getting people to look at what is coming down the pike, but investors who do their homework recognize that systems and e collett -- a system and an ecology is being built up here. in the long term, it is likely there will be some uncertainty. emily: when you think of the power that elon musk has on this market, is it too much? >> yeah, it is amazing to watch what happens every time he speaks. in the case of dogecoin, that

really is sort of a cult following type coin. in the case of bitcoin, tesla represented a big investor in bitcoin, and he also brought climate change to the foreground with his recent commentary. the other piece of it, though, that investors should understand, especially with regard to bitcoin's recent selloff is there's been very few opportunities for institutional players to leverage themselves into bitcoin. the mindset we saw, a lot of people were believing those were enforced leverage, so that may have caused oversold conditions. emily: elon musk has spoken out about the environmental concerns he has about bitcoin mining. we have just saying iran been

bitcoin mining. we have seen china crackdown. do you see a solution to some of these concerns? >> i think the solution is to continue to move in the direction of renewable energy. it is not the quantity of energy that we consume but the types of energy. we all know fossil fuels are the bad guys we are trying to get away from. i think it was a cambridge study that said 76% of bitcoin miners are using some form of renewable energy. i think, frankly, moving mining out of china might help that situation. coal mining and coal burning is one of the big culprits there. i don't see that necessarily as a bad thing. it is probably good. emily: interesting. coinbase is in talks to buy osprey. any updates you can give on

that? >> we are involved in the huge landscape of cryptocurrency. we would not comment on rumors, but the space is growing fast, and i'm sure they have lots of rot ambitions, as do we. emily: this would be a chance for them to break into the investment business. we have seen speculation that coinbase could be the next aol. do you buy that? >> crypto is much broader than d5. i have cautioned against using the word crypto to encapsulate a whole system of technology,

which is what is happening. i think the world is moving toward decentralized forms of technology and systems. obviously, coinbase is one of the biggest players at the forefront. probably too early to call how that will develop. we are just excited to be part of this world, and part of that is hopefully helping investors to navigate and get some assets into their portfolio that could help them with their goals. emily: we are still waiting for u.s. regulators to take a stand on crypto for hey steer -- or a steer, to pick a direction. >> in our business, the real -- kind of where the rubber meets the road, the argument is around each cryptocurrency.

i think the sec is obviously aware of the issue, and it remains to be seen what this administration will do about it. i'm pretty convinced they will do something, and we are supportive of that. the industry needs some clarity. i think crypto evolves in bitcoin time, and it is hard for regulators to keep up, but hopefully, we get some clarity in the next year. emily: we will keep our eye on you and that potential coinbase acquisition. coming up, after a year of testing instagram and allowing users to decide if they want light accounts or not, the changes are coming to the platform. this is bloomberg. ♪

emily: after years of deliberating, instagram will now let users decide on hiding numbers of likes from themselves. facebook's head of instagram says test of the function have not had much impact on user behavior so far. as rules around covid start to relax, a lot more people are left with higher streaming bills. a study found people are subscribing to more services than they were a year ago, and consumers' budgets went up, too, especially as a number of new services including peacock and discovery plus launched in the middle of it all. coming up, we stick with streaming and get back to amazon's blockbuster deal with mgm. what it means for amazon

competition in the streaming wars, plus the company holding its annual shareholder meeting. we will have the latest next. and later, a cloud-based payment company seeing a lot of green in its debut. we will talk about it with its ceo coming up. this is bloomberg. ♪ (announcer) back pain hurts,

and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pain is gone. when you're stretching your lower back on there, there is no better feeling. (announcer) do pelvic tilts for perfect abs and to strengthen your back. do planks for maximum core and total body conditioning. (woman) aerotrainer makes me want to work out. look at me, it works 100%. (announcer) think it'll break on you? think again! even a jeep can't burst it. give the aerotrainer a shot. pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com.

emily: jeff bezos is formally stepping down as amazon's ceo, turning the reins over to andy jaffe on july 5, 27 years to the day after bezos inc. amazon.com. for more on what came out of the amazon shareholder meeting, we have the author of recently published book "amazon i'm bound

-- "amazon unbound." big news. he had said it would be some time in the third quarter. now we know when. >> the day really is a formality. not only had they announced bezos had been gradually stepping back at amazon, giving andy jaffe more authority, i think he will continue to do that. he will be second chairman. he will still be at the meetings. i do think gradually, he will let andy jaffe run the company. maybe in a couple of years, we will see him drop the executive title from executive chairman, but jaffe learned alongside jeff bezos. he is a bezos disciple. i don't think it changes the company all that much. emily: interesting. one of amazon's biggest problems looking ahead is regulatory

scrutiny. we just got headlines that senator amy klobuchar is investigating amazon. what is your reaction? brad: that there is not just some dissatisfaction, but ultimately, this is a legal proceeding. one of the big gauges is does this eliminate competition? mgm is a relatively small studio. there's plenty of competition in the streaming wars, so i think the doj for ftc will ask if it meaningfully eliminates choices for customers, and it is really difficult to make the argument that it does. emily: this is on the back of the washington attorney general filing the first antitrust suit against amazon in the area of third-party sellers, where amazon has argued it does not have a monopoly even in e-commerce. brad: right. if you look at overall market

share in retail, that may be true, but there is the aspect of its conduct and amazon forcing sellers to give them the lowest price. because amazon has gotten so big, the argument starts to smell a little funny. if it's the kind of thing that does not pose an existential threat to the company, they could simply change their policy. emily: in your book, you talk about amazon studios and how it got off to a rocky start, and it's not come -- it's not easy to catch up in the streaming race where you are facing companies spending tens of billions of dollars. brat: -- brad: it is where the market is going. at&t combining the warner media assets with discovery. apple spending so much money. this race has become about

intellectual property, about franchises, about double hits. in that respect, amazon is behind. mgm, they are getting franchises, they are getting "james bond," they are getting "rocky." emily: obviously remains to see if this is a good deal. as for whole foods, it remains mixed as to if that was a good deal. brad: you look at amazon's retail business, and it has not really grown. now it is an acquisition where amazon bought it, allowed it to run independently and watched it, and now we are seeing amazon open fresh stores all over the country. emily: brad stone out with a new book. you can get it on amazon and bookstores, of course. meantime, the cloud-based

electronic billing company surging in its debut. shares opening nearly 40% above the ipo price. here to tell us how the company is planning to simplify some of the more archaic aspects of bill payments, the ceo of paymentus. why choose the traditional route of the ipo instead of spac or something else? >> it is a big day for us and our consumers and our investors. as you know, bill payment is a big market.

trillions of dollars are spent in the u.s. alone. despite our scale, we feel like we are just getting started. given the process we are already on, a traditional ipo made the most sense to us. emily: talk to us about flywire. you are the second fintech company to go public today. flywire was the other. why do you think fintech is having a moment? >> as a large industry, payments have been around as long as businesses have around in some ways. we as a company have focused primarily on simplifying the payment experience for billing companies, insurance, consumer finance, health care, and what

we are seeing is it is not necessarily just a moment, it is basically the way the businesses will be operating going forward. we believe our platform fits exactly the type of platform that billeting -- that billing companies are looking for. emily: paymentus does work with paypal. i'm curious how that partnership works. >> we have a great partnership. both organizations are focused on customer-centric innovation. we are all about improving customer experience. as part of that, we have chosen paypal as our partner for global processing of payments, and paypal has chosen to partner with us to use our technology to bring payments into paypal's customer experience.

emily: you also partner with amazon and walmart, and given all the scrutiny on amazon right now, i have to ask -- how do you feel about your partnership with amazon, and how does amazon treat you as a partner? >> amazon has been a great partner for us. we feel like amazon as well has very similar dna to paymentus. they are about improving customer experience, and we believe the model amazon is pursuing, which is to allow customers to ask alexa about bills and to process payments using their platform in the back is actually a remarkable thing for the industry. billing companies are looking for improving customer experience, and that is what our platform allows, for them to do that. in some ways, paymentus is all

about customer choice. we want to be where our customers are, and we want to provide users the ability to pay bills whatever customers want to. emily: we will keep watching. thanks so much for joining us. coming up, new york ways a safety rating system to flag truck and suv risks to pedestrians. this is bloomberg. ♪

emily: we are gathering details in a deadly mass shooting that serves silicon valley. employee open fire at a san jose valley railyard, killing eight people before ending his own life. no word yet on the motive. many of the victims are believed to be vta employees. president biden is being briefed on the situation and we will follow developments. meantime, a surge in pedestrian and cyclist deaths, particularly in new york city, has spurred a proposal to establish a vehicle safety rating system. this is part of our citylab series conversation. talk to us about what this

involves. laura: this is a bill before the new york state senate, so it would apply to new york state only. it would provide a one through five star pedestrian safety rating system that would apply to vehicles sold in new york. they would look at how many times and what is the rate and how severe are the collisions that these vehicles are involved in involving pedestrians and cyclists, and basically assign them one through five stars to give customers a better idea of the potential risks their vehicles pose to other people on the streets. emily: the vehicle is aimed at trucks and suv's. why target those? because they are bigger? laura: they are certainly bigger. studies have shown that

pedestrians and cyclists actually stand a 50% greater chance of dying when hit by a larger vehicle. vehicles have been getting larger in recent years. certainly consumer interest in buying used vehicles has not waned. the f-150 has been the most popular vehicle in america since 1981. and we have seen a really alarming spike in pedestrian and cyclist deaths in recent years, even last year during the pandemic -- emily: across the country, not just in new york. laura: right, across the country. there's all kinds of ways cities and states are responding to bike and pedestrian cyclist deaths. trying to create more bike lanes so cyclists have a safer place

to travel, but new york -- this bill in new york would be the first of its kind, and it reflects something the federal government has been pushed -- pushed by advocates to do. it does test vehicles for safety, and the federal government says it is updating that plan later this year. emily: what has been the reaction to the new york ale so far? laura: i reach out to an industry group for automakers, and they did not have a comment. they did not respond to my request. certainly the federal government seems to be paying attention. they will be updating their plan. for advocates, this is an idea that should be modeled, in their opinion, in other states and nationally. emily: thank you so much for bringing that to us. coming up, facebook shareholders

keep ceo mark zuckerberg power intact at the social network. we will have details next. plus, another day of gains for so-called memes stocks. gamestop surging wednesday, amc up almost 20%. carl icahn telling us what he thinks of meme stocks and their valuations. this is bloomberg. ♪ >> on any value basis, a lot of these companies are ridiculously priced, just ridiculously priced. so eventually, you just can't have this without excess inflation. there is going to be a price to pay for it. ♪

emily: welcome back to bloomberg technology, i am emily chang in san francisco. spacex successfully launched 60 more starlink satellites, a

milestone for elon musk's company, the 100th successful launch in a row. what does it mean for starlink's deployment and other programs? our ed ludlow joins us with the latest. talk to us about what spacex is trying to achieve with starling -- starlink. read: -- ed this is a : constellation of satellites that allow you to have internet connection even in the most remote parts of the world. they hit a number just shy of 1600, their initial target for satellites as close to earth as they could possibly be under the guidelines. that distance allows really low latency, amazing connection, where you can use that internet connection to stream video games, movies. this is not designed for san francisco. we are talking the middle of africa or asia, where there are no land lines. it is limited to north america

and canada, in beta testing mode. emily: tell us about the relationship between starlink and musk's goal to get to mars? ed: money and practice. the rocket launch business tops out at about $3 billion of revenue each year. starlink could get as much as $30 billion each year. his central goal is interplanetary travel. he does not care about the small things. it is about funding that human mission to another planet. it is also good practice. falcon 9 carries astronauts to the space station. if you want to test how long those rockets can last and reuse them, you don't do it when there are people on board. you do it with the starlink satellite. it is a proving ground for their tech. emily: let's talk about getting people on board. blue origin said they plan to

get the first human to space in july. spacex has not happened yet. spacex seems to have been moving so much more quickly than blue origin. why is it taking so long? ed: spacex has the relationship with nasa. they really got in early with the commercial contract to take astronauts to the international space station and bring them back safely. they have done it twice. that is something that not just blue origin, but boeing, one of the oldest aerospace companies, has not been able to do. they have not been able to convince nasa their aircraft are ready. musk is thinking about high net worth individuals traveling around the moon. his basic timeframe is human orbit of earth and of the moon over the next year to 18 months. mars sometime in the next six years. there is a big leap, but each launch that takes place generates data and that contributes to the success of future launches. emily: how does virgin atlantic fit in? ed: two former astronauts went

up. they have a different propulsion system. they fly them up and launch mid air at a much lower level of orbit. they want to have richard branson, the owner billionaire, test out what it is like to be a private customer in space, feel weightlessness for a short period of time. then they plan to charge a lot of money to do it. they are several years away from being able to do that. emily: we are watching. ed ludlow, good to see you. he is called the most powerful unelected man in america and it may stay that way for now. at its annual shareholder meeting, facebook rejected two proposals intended to diminish ceo mark zuckerberg's control over the company. here with more details, bloomberg's naomi next. naomi, some investors have called for mark zuckerberg costs -- mark zuckerberg's power to be

curbed. that is not happening. why not? naomi: the rub for investors frustrated with the level of power mark zuckerberg has is, mark zuckerberg controls the majority of the shares on the board. whatever he recommends, the board do on various proposals, that is the way the board votes. once again, he likely voted against proposals to curb his own power. emily: what does this mean? at least for the next year, nothing is changing. the pressure remains on. naomi: i think we should expect to continue to see shareholders raise concerns about how mark is running the company. in today's meeting we saw concerns about, if the company is doing enough to address sex trafficking, how is it handling content moderation issues in the face of increasing regulatory scrutiny from around the world?

we also saw shareholders raise concerns about hate speech and racism that proliferates on the platform. mark is going to continue to have to answer questions about what he is doing to address this problem while he continues to hold these multiple roles. he is ceo, chairman of the board, and has a controlling stake. emily: while facebook faces regulatory scrutiny for the amount of power facebook has as a company, did this come up in the meeting, and how big of a risk are these antitrust concerns? naomi: regulatory scrutiny did come up today. they are a real concern. obviously both on the state level and federal level. antitrust regulators are looking at facebook's power and dominance in the market.

they face several inquiries around its handling of privacy issues. we are also seeing europe make moves to pass laws that restrict privacy and data crossing borders. apple is also making the move to restrict data collection. facebook has to face a lot of that. especially because the core of its business is digital advertising, and that is heavily centered on the ability to collect our personal information and monetize it. emily: i want to ask you before we go about this instagram story. instagram has been testing hiding likes for a while. i feel like it dragged on a couple years. now they are giving users the

option, but not making a choice as to whether they give us the option or they take it away for everyone or not, i should say. what is your take on this? naomi: yeah. i think it is interesting. you are right, facebook has been experimenting with this for a while. what they told us is, after all our tests, our research, we realize users are split. some wanted the option to hide the likes, some did not. actually removing the likes did not affect people's mental well-being in a significant or meaningful way. this is facebook's attempt to give people what they want while addressing criticism that it is -- that it's platform, -- that its platform, particularly instagram, poses significant negative mental health effects on users who get caught up in a popularity contest. emily: we will see how that plays out and the cascading impacts. naomi nix, thank you for

stopping by. that does it for this edition of "bloomberg technology." make sure you join us tomorrow. we will be speaking to secretary of commerce gina raimondo, who hosted the latest white house summit on global chips. ♪

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. ♪ >> the california gold rush is considered to be one of the most impactful events to affect america's young economy during its first 100 years, and it has certainly had a long-lasting impression in numismatic history as well. the people of california soon needed a way to standardize the value of the new gold, so they set upss