." >> from the heart of where innovation, power and money collide, this is bloomberg technology with emily chang. caroline: i'm caroline hyde in new york elon musk offered $41 billion in cash for twitter.

he vented his frustrations with the agency including that now infamous settlement when he was forced to step down. go group in team sponsorships and a multi-year deal with a french soccer club. our interview with the goat co-founder and c.e.o. let's get to the biggest story. elon musk bid $43 million to buy twit r. take it away. >> to say it was a choppy day is an understatement. that was $43 billion all cash offer. $54.20 per share from musk.

it is conditional on anticipatedded financing. how would he pay for this? let's look at the volume. the line on the right hand side of this screen mimics what we saw on april 4. 250 million shares changed hands on thursday ahead of a holiday weekend. we know the retail investors also a big part of this story, interesting to see that on the right-hand side of your screen. i mentioned a moment ago how is he going to pay for this? elon musk sate he had the financial assets to make it happen. he had reservations whether it would ultimately happen. look at your screen. tesla down almost 4%. he might sell some of his tesla

shares to engines. he bored against value of those shares. he only has $3 billion of liquid asset. breaking news, according to the new york post, thomas bravo is working on a possible bid. this story is not going to go away. perhaps a question for some of the guests and if this goes through in the long run. caroline: coming into the mix according to new york post. all across the ins and outs and curiosity surrounding elon musk's interest in twitter. we want to unpack that a little bit more. musk's ted talk streamed to the world. >> risk has decreased the more we can increase the trust of twitter as a public platform and so i do think this will be

somewhat painful. caroline: it was quite a moment for ted amid the event that it held today. some big thoughts to be had. talk to us about how serious we think in nature this bid is. >> elon musk, he says of course he has the financial wherewithal to do this. if he sellses some shares or gets some financing but beyond that, his heart is in changing platform's content moderation policy and he spoke a little bit about that at ted. he said he wants to make sure twitter doesn't take down any accounts unless they absolutely have to. that people are allowed to edit their tweets. remember, elon musk has more than 80 million followers.

he sees some things he wants to fix to make sure that twitter is more in line with his free speech ethos. twitter will say they are doing those ideas already. adhere to the rules in the country where twitter exists. it is sort of fuzzy here what exactly he plans to change concretely if he was to take over twitter. and how it will be led. caroline: i think that is the key question. talk to us about how, we can presume that the board is not particularly about this. jack dorsey are still on the board. -- is still on the board. this is high pressure stakes for the new c.e.o. >> it is just an incredibly

high-pressured moment. he knew what he was getting in to. twitter is a company that has had a highly volatile time with its investors. it is vulnerable to activists' interest to c.e.o. change decisions and that nature of activity. so i don't think this is the end of the elon musk story. i think that we have even heard retail investors get very excited about backing him on this plan and others running away from the idea that elon musk can shake up twitter. it is supposed to be a week for 2013 employees to be heads down, focusing on their work but they are very distracted of course by everything that has happened here. caroline: there was talk about having a meeting to discuss this very bid at 5:00 p.m. today. we wonder how of course that conversation is currently

faring. thanks for getting to the devil in the details. mark, jasmine, great to have some time withs you. first and foremost, jasmine. talk to us about what you think elon musk wants out of this. is it to exercise change as he says? what sort of change do you think could be afoot as a product perspective? >> first of all, it is not totally surprising this is happening. we expected there to be some turbulent times ahead. twitter is a social platform thrives on big news and uncertainty and that side something that likely appeals to musk. in terms of what he would change, he would make ate free speech haven probably reversing many of the guardrails twitter

has put forth recently to protect the hlt of the platform to make advertisers feel comfortable advertising there. he is likely to turn it into a subscription only service. i don't think this is something that will happen overnight. i don't think he is 100% happy with the existing model and want to improve it. caroline: to that point, mark if, you see that the products can change, would it be a positive change? how do you view any of the discussion around the evolution of the product, whether it could add value because from what i took from the ted talk, this end up being a not for profort endeavor that he is taking on. >> i think you just pointed out what is going on here. i don't necessarily hear a public market strategy from musk.

i hear a public good strategy. i have been on the side lines on twitter skeptical about the asset for years because of the slow pace of product innovation. i don't hear musk addressing those issues. i think his goals are different. i think he wants to turn it into an absolutist free speech. that's not what shareholders are necessarily focused on. what are you doing the make the site for intieft for consumers. only about 10% of twitter users would pay for a subscription service putting up the kind of numbers, $2 or $3 a month. maybe you get half a billion in revenue. advertising is a great model. they need to improve the tools

and i don't hear that coming from musk but i don't think that is his strategy. he is coming out with a public good strategy. just what you pointed out. caroline: to that end, jasmine, that of course is not music to investors' ears. what is music to investors' ears is growth. in a weird way, this is a advertising and free p.r. going on for use of the social media platform. >> the interesting thing here is that musk's comments really come at a time that twitter has had a rebound in ad growth. last year, worldwide ad revenues were up 20%. in 2020 only 7.4%. you're right at the very least this will drive a lot of user engagement on twitter. controversy tends to turn or until it has people lead into

the plasm. time it makes advertisers wary. the company has done a lot to make it brand safe for advertisers. musk takes a very different view on speech on twitter and will probably push for less content moderation. caroline: as you said for the few years you have been on the sideline questioning the overall business model. when we saw the changing of the guard, jack dorsey handing it over. how do we feel about this new c.e.o. having to navigate what is a complete storm, perfect or not? >> i view that as a really strong neutral. look, i don't know that we have heard under the new c.e.o., a really clear strategy for the company going forward. i'll give him a few months.

i think we should. i want to be respectful here. it has ban slow pace of innovation. the company came out and said that. i'm not sure this is the radical change that twitter really needed in order to speed up the product development side. make it increasingly more intuitive for users. some of the content moderation has been absolutely necessary. a few years ago there was too much visit roll and too many f bombs on twitter. i don't think advertisers and i don't think users are really -- i think most users probably are not all that into it and don't care much about the political moderation. there are so many broad sets of interest. probably just a small part of

twitter's appeal. what is going to change the growth pro file? yes, we had a good last year. this company has not it happened the scale of google or facebook. caroline: one answer question for you both as we head toward the on the other hand this conversation. when i'm ago at $54.20 in terms of taking it truth, do you think we'll potentially see a deal? is it worth $54.20? >> you know, it is so hard to say. i do believe that because of musk's character there is a very large chance this deal does not materialize and that he changes his mind. caroline: mark, $54 .20. is it worth that? >> i think he is going to get rejected and sell his stock. is it worth $54.20 under a

series of product improvements, absolutely it is. we have to see the improvements first. i don't think today it is worth $54.20. i don't appreciate his pot analogy. he doesn't have to put that as part of his bid. i think that undermines the credibility of the offer. caroline: great to have both of you on. thank you. coming up, e perturbed about the settlement involving tesla. this is bloomberg.

caroline: welcome back. twitter wasn't the only thing on the mind of elon musk today. on the ted talk we got some things off his chest when it came to whether he had the fun for tesla. he said funding was secured which led to the investigation by the s.e.c. take a listen to musk's version of events. >> the s.e.c. knew that the funding was secure but they pursued an active public investigation nonetheless. at the time tesla was in a precarious financial situation and i was told if i did not agree to settle with s.e.c. the banks would cease providing capital and tesla would go bankrupt immediately. that is like having a gun to your child's heads. i was forced to concede to the

s.e.c., those bastards. it makes it look like i lied. i was forced to admit that i lied to save tesla's life. that is the only reason. caroline: some strong language in that. musk was asked if he was glad he didn't actually take tesla private. he admitted he was. joining me now, harvey pacific . i'minterested of course as a man who you know, has helped lead the s.e.c. understand in which this organization works and has had to suffer some of the well, abuse it would seem that you [captioning made possible by major league baseball properties, inc.] the like of elon musk. how do you think about that settlement and the controversy

it stirred and the ongoing anger that still is within elon musk himself? >> i think it is basically musk's fiction. if he didn't want to litigate with the s.e.c., or couldn't afford it, all he had to do was say i'm not going litigate. i'll default and let the s.e.c. get a judgment and see what the court will order. but he spent probably hundreds of thousands of dollars on legal fees to execute a settlement that went back and forth. having done that, he should live up to his agreement. he agreed to do it. if he didn't want to do it, nobody held a gun to his head. caroline: the proverbial one. he said he was in a difficult

situation financially, prescarce at the time. it is a different beast now but a beast currently having to analyze what perhaps a taking private of twitter looks like by one elon musk. the way in which he has conducted it, the all-important h20 number in it, is it $h20 number in it, is it something they will take seriously? >> i think it is very hard to take anything mr. musk does seriously. he always has ulterior motives. there are serious questions about what he is really about. he said if his offer is not accepted, he will have to reconsider his position. so he has already created an overhang on the market. i think it is a safe bet that

twitter, although it said it will review the offer will ultimately reject it. that is not to say it should reject it but it is to say that they will. they will have all sorts of reasons that they concoct to refuse to accept musk's offer and then the market price of the stock will plummet. so he is playing a game with twitter and with the investors in 2013 and the market, twitter securities. caroline: it is a game and the way he conducts himself through the medium of social media which is fascinating in this current day and age and we should bt be shocked by it. the head of the united states, the president himself used to give a lot of news via the

social media platform. how do you think s.e.c. regulation can adapt to this new age of this new environment? >> i think it is very difficult because the s.e.c.'s rules did not really contemplate social media. while there have been very good attempts by the s.e.c. to try to modernize their positions, it is still very difficult for them. the fact that somebody can simply -- to 85 million people, market influencing information is not something the s.e.c. has yet come up with a solution for and i think that is going to have to be something. it takes a very close look at. caroline: if you were chairman,

one word of advice right here, right now for the s.e.c.? >> if i were chair, what would i do? caroline: yeah. well, first of all, i would say former s.e.c. chairs should be seen but not heard. caroline: nicely said. >> that is one aspect. but i would say this. ld be investigatingthe origins investigating the origins of this offer. i would investigate why he filed the wrong form and i would look into a variety of musk potential infractions. i would want to consider whether any of those infractions should or could impede the progress of his offer and whether investors have been -- i believe he has

done a lot of serious damage to the way the markets are supposed to function. caroline: chairman harvey pitt. thank you so much for your expertise. we wonder if the s.e.c. was listening. from new york, this is bloomberg.

>> here are some other sthiers we are following. cuts are coming at peloton. they are slashing prices for their major hardware product. the treadmill is being reduced by $150. the bike is being reduced by $500. peloton is rising the price of its monthly subscription, part of a comeback plan aimed at generating more revenue. coming up, elon musk's attempts

to take twitter private. sounds familiar doesn't it? that is next. this is bloomberg. ♪

caroline: welcome back. let's get back to the top story. elon musk and a $43 billion bi to take twitter private. take us back to basics. what does he want to change about the platform? >> i have breaking news first. according to sources inside the room, twitter ceo is speaking to staff telling them the board is going through a rigorous process

of evaluating elon musk's bid. what we can get from that, at least the idea of the bid is still alive at this stage. it is being considered by the board. there are four key points. first, open source the algorithm. that's nothing new. during a ted talk, he said there are too many bots on the platform. spam bots. get rid of the bots, he said. i have experienced that on a day-to-day basis. then, the edit button. he says it has to be time-limited from the time you post. finally, no bans. maybe a timeout. rather than an all-ban. look at the chart. this goes back to november. this is the first time we have

had activist action. jack dorsey stepped down here after elliott management gets involved. then elon musk discloses his status at the beginning of april. the stock has kind of changed fortunes. we're still not at the same level of a year ago. the shares were $70, $75 a share. we are lingering around $45 per share. one of the questions put forward today amid high volumes of trading was did this bid lowball them and will they come back with a further bid? i wonder if that is possible. finally, the retail investor. how influential is the retail investor with tesla and twitter? these are the top two stocks on the fidelity platform. in terms of buy orders from retail traders. elon musk puts a lot of faith in retail investors.

caroline: interesting take. thank you. there have been previous pushes for change at twitter by the likes of management. activist investors are not new to this platform. what on the platform could be changed? what are the concerns about elon musk perhaps taking over? today he mentioned the idea of free speech. that him buying twitter would be the ultimate goal. take a listen. >> it's important that it be an inclusive arena for free speech. twitter has become the de facto townsquare. it's important that people have both the reality and perception that they are able to speak freely within the bounds of the law. >> defacto townsquare.

we're going to break that down. i am joined by a social media expert. your perspective on what he wants to achieve by doing this? >> he put a big performance on today, but i decided to make a sandwich instead. time better spent. i was hungry. even seeing that clip, the last person we want owning is elon musk. we see other platforms being owned like with mark zuckerberg. this is not a company where we want to see that happen at thi point. caroline: there was discussion of more than 2000

people or up to 2000 people potentially owning twitter with him and perhaps it being a not-for-profit. would that be a direction of trouble? does it need to be publicly held? >> it really should be owned more by those who need a real stake in the public square and speech. retail investors, he is not going to take this over with retail investors. he needs institutional investors. he needs the big corporate to have big bucks. he needs people like the saudi prince who was an early investor. he doesn't have the friends to help him take it over at this point. i don't see the retail investors -- concerned about public speech and that is represented with those who do retail investing. but it's not going to happen for

elon musk that way. maybe he has another plan. there's a lot of people who have a stake in this and they want the power associated with. they are just interested in making money, they care about the social aspect of big platforms like twitter. caroline: it must be incredibly torrid if you are currently the ceo of twitter. what is some advice to change what is occurring and are people feeling the denial of free speech or too much? >> we have to remember this ceo is new. he is essentially company guy at this point. he is steering the boat for the current investors. free speech has not ever been

the case with a company like twitter. it is a public company and its about the speech of those who own and run it and that's what he is interested in. elon musk is interested in expanding his speech and power and what he wants to use it for. caroline: is it a regulatory tape that we need? is there involvement necessary? >> i saw on the list of things being discussed with employees and nowhere did i see how to regulate government. including our own in the united states on these platforms. we still don't talk enough about how much the federal government pushes out federal propaganda on these platforms. that is probably something he doesn't want to draw attention to. it's less about the edit button. this is about being able to assert some control over our government, being able to push

back when he doesn't like what the sec is doing. what if he ends up putting a bunch of federal accounts in a quarantine? i don't think the government would like that. there's a lot of power here. it's not about trump coming on the platform. just because he is on, doesn't mean he has reach like he used to. it can limit how much ability he gets in the algorithm also. again, transparency. if it's totally transparent, it will be gained by bad actors in our government by the power players. maybe independent audits are needed to make sure the system is not abused. these ideas that he is floating, they don't make a ton of sense. caroline: you are always thought-provoking. thank you. coming up, as elon musk has offered to buy twitter and open-source it, what does decentralized social media look like?

we are talking with a guy who is trying to do that. that's next. this is bloomberg. ♪

caroline: we continue to discuss elon musk's bid for twitter. he is currently saying the twitter board has a liability if acting against shareholder interest. the twitter board's duty is breeched if they act

against shareholder interest. he is commenting on a possibility that the board could use a method known as the poison pill to expunge control such as someone what elon musk. currently he is using the platform saying if the current board takes action contrary to shareholder interest, they would be breaching their fiduciary duty. the liability they would assume would be titanic in scale. the board previously has been evaluating. we understand the ceo is having a meeting with the staff evaluating the offer coming from elon musk. we are going to weave all of this into our crypto report. we keep on discussing how and when platform could evolve if elon musk's intervention could add crypto influence in the space and take it open-source in terms of algorithm. what would that look like? let's bring in our next guest.

he is the creator of deso, built for the purpose of scaling decentralized applications. your take on open sourcing of the twitter algorithm? would that make it more decentralized in nature? >> that's a great question. to take it back a bit, it's funny because i think twitter is distracting people from a lot of the real innovation that is happening in social media. imagine if the iphone came out yet all anyone wanted to talk about was the blackberry. most people don't remember what a blackberry is because it's no longer relevant. right now twitter and other platforms are the blackberry and deso is the iphone. why? because it's better in every way. now to go to your question about

open sourcing, when you make a post on twitter a corporation owns it. they control who gets to see it and they make all the money. all of that is opaque. in contrast, when you make a comment on deso, it stored on the blockchain and you own it the same way you own bitcoin. it goes onto a public ledger. it shows up in hundreds of apps that all have their own approach to moderation most of which are completely open sourced. right now, we're talking about which billionaire should control the internet. elon musk or the saudi prince to control twitter and the answer is we want nobody to control it. deso is to social what bitcoin is to money. you can own it for the first time and it's extremely exciting. caroline: what's interesting is on the centralized website of twitter, you had the likes of spf, talking about what he

thought decentralized twitter could look like. talk to us about is there anyway you can reverse engineer this? he was talking about tweets going on, sent to choosers who have access to them. you can monetize it by having a protocol charging something per message or being about the user interface. is there anyway you could reverse engineer twitter in and of itself? >> of course and actuall everything he describes in his tweet already exists on deso. including end-to-end encoded group messaging. if you want to see it for yourself, there are many apps listed on deso.org. you can use the enemy of

-- epitome of decentralized social media and it's happening before our eyes. deso already has 1.5 million accounts. hundreds of applications are being built on it. sam made one years ago. i'm sure he is looking at it again. a lot of impactful people are looking at this and it's just a matter of time before the heat gets on it. caroline: let's talk about this as if twitter did embrace web 3 a little bit more than web 2 and aided the gateway drug to jumping onto one of apps on deso, what would that look like? how can you help me, others who

are used to web 2 getting to grips with a deso decentralized platform looks like. it looks scary. it can sound intimidating. demystify it for us. >> if you go to an app called diamond app.com it's similar to twitter. you can follow people. you can make posts, but when you follow someone that is stored on a public blockchain and when you make a post, it shows up on all of the apps built on the deso blockchain not just the one at. -- app. all of these different moderation policies that are totally open impact your post and you get more reach. then because you are on blockchain, you also have access to bitcoin. your post can become an nft automatically because it is stored on the blockchain.

then you ask what is the future of twitter, no matter how you slice elon musk taking control twitter or not, deso is inevitable because either the apps outcompete twitter or twitter ends up embracing it storing its content on there so we can access things like nft's, micro transactions and the coins associated with it. either way, it's the future. that's why it is so exciting. caroline: what about content moderation? >> this is the unintuitive thing that a lot of people take for granted. when you have an open platform like deso, there's a lot more transparency into what is going viral and why. the reputation of the people who are posting. is it a bot or not?

you can have the best machine learning resources in the world analyzing the content identifying bots, bot farms, bot aarons. in the long-term, moderation could be something that a lot of people take part in by analyzing the chain, identifying things they believe are harmful. all of this can be done by smaller players with higher fidelity and accuracy than the platform monopolies today because everyone in the economy has the incentive to build a piece that they are good at. we are good at building the blockchain. we might not be the best at content moderation, but the best people in the world can do their part and we can utilize that service from them to create so much more efficiency around everything currently being done by a stag platform monopoly today. >> great to catch up with you. thank you for painting that picture for us. the creator of deso. coming up, let's get away from twitter and talk about soccer and e-commerce.

they are joining forces. we'll talk with the goat co-founder about a partnership with psg. our exclusive interview is next. this is bloomberg. ♪

goat is continuing its international expansion through a strategic partnership with one of the most iconic football clubs. we are a principal partner which means being on the sleeve of the jerseys, all across the arena. and in the app, a dedicated psg experience. >> talk to us about the exclusive products. if you go onto the goat website, you now see players with the logo on the sleeve. what other offerings are you looking at? >> with psg, the great thing about it is they are not just a football club, they are building a brand. a lifestyle and fashion brand similar to what goat is doing. have built our own fashion and lifestyle brand full of accessories, fashion, sneakers and more. looking at the psg partnership which is so natural because our visions are very much aligned, we were thinking about expanding and increasing brand awareness through europe and beyond, they were such a natural partner. caroline: what about lionel messi and some of the other

players. how do you team up with sports stars and the brand of them as well? >> it's great that they have some of the goats of football talking about messi neymar, etc. aligning them with goat the brand, there will be so many fun activations and experiences with the club and the players. caroline: what about overall europe as a marketplace to expand in? how big is the sneaker resale market? >> goat started in 2015 and we have become the leading and most trusted sneaker and fashion marketplace in the united states. we have seen the fashion just like football, it's not just a domestic market, it is global. we are seeing so much growth in europe and beyond. we are great in the u.s., we want to continue to provide that experience for the rest of the world. the partnership is key i helping us expand to europe. caroline: i love that you just

called it football. talk to us about the world of nft's. is it something you will look at in your space? >> nft's are of course something we're looking at. there is so much value in bringing products to consumers in the real world. that's what we're focused on now, but we are always keeping an eye on it. caroline: i wish we had more time. it's fantastic to catch up with you. tell us how the expansion into europe goes. co-founder, c.e.o. that does it for this edition of bloomberg technology. don't forget to check out our new podcast. you can check it out on the terminal or wherever you choose to get your fix of podcasting. we wish you a wonderful break and celebration. some time off. we will keep you posted on whatever happens with elon musk and his bid to take over

twitter. tune into bloomberg tv online and tv. this is bloomberg.

correction reach the pinnacle of enterprise as ceo of the american food and drinks after 12 years. >> i had a loyal people who followed me because they became better leaders, better executives, better people. >> she has been made one of the most powerful people on the planet, and she brings a unique insight into the challenges of equality.