# SpaceX in Talks to Borrow $40 Billion to Buy Nvidia Chips

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 7 Oct 2026, 18 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/a3453f58-9840-42be-9997-b4dc01163a4d/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Scarlet Fu & Alexis Christoforous -Ed Ludlow, Bloomberg Tech Host, discusses Elon Musk's SpaceX being in talks with banks and investors to raise $40 billion to buy chips from Nvidia. Management Inc. SpaceX's fundraising discussions are in an early stage and could end without a deal being completed, with Pacific Investment Management Co. and Apollo Global Management Inc. involved. Separately, Apple's upcoming smart home devices will include a doorbell, thermostat, and other accessories developed through a partnership with LG Electronics Inc. The products developed with LG will also include a smart deadbolt lock, indoor security camera, outdoor security camera, and floodlight camera, and will carry the LG brand. -Michael Halen, Bloomberg Intelligence Senior Restaurant and Foodservice Analyst, discusses the latest on restaurants. McDonald’s plan to overhaul its restaurants and menu is sparking angst among US franchisees facing upgrades that will cost at least $800,000 per location. The company needs the backing of its franchisees to help restore investor confidence that has faltered this year, with the company’s shares plunging 32% from a peak in late February through the end of September. Separately, a viral social media hoax claiming discrimination at Texas Roadhouse led to a six-week selloff of the company's shares, which surpassed 20% by the end of September. Analysts on Wall Street see an opportunity to buy into the restaurant chain at an attractive discount, with Evercore ISI and StoneX upgrading the stock this week. -Geetha Ranganathan, Bloomberg Intelligence Analyst on US Media, discusses Walt Disney confirming it will stream Super Bowl LXI on Disney+ in the U.S. and dozens of countries worldwide. Disney+ subscribers in the U.S. will be able to stream the traditional game presentation, as well as the Spanish-language telecast on ESPN Deportes. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios.
[0:04] Speaker 2: Podcasts.
[0:05] Speaker 3: Radio.
[0:06] Speaker 4: News.
[0:09] Speaker 5: You're listening to the Bloomberg Intelligence Podcast. Catch us live
[0:13] Speaker 5: weekdays at 10 a.m. Eastern on Apple CarPlay and Android
[0:16] Speaker 5: Auto with the Bloomberg Business App. Listen on demand wherever
[0:19] Speaker 5: you get your podcasts or watch us live on YouTube.
[0:24] Speaker 6: Let's bring in our go-to guy for all things tech,
[0:27] Speaker 6: Ed Ludlow, Bloomberg Tech host, joining us from San Francisco.
[0:31] Speaker 6: So as John Tucker was pointing out earlier, Ed, SpaceX
[0:35] Speaker 6: raised a whole lot of money with its IPO and
[0:37] Speaker 6: it's tapping the debt market yet again because it tapped
[0:39] Speaker 6: the debt market right after its IPO. Now it's doing
[0:42] Speaker 6: so again. And this is all towards those data centers?
[0:46] Speaker 4: Yeah, I mean, even, you know, months before the IPO happened,
[0:50] Speaker 4: there was a lot of discussion, you know, in the
[0:52] Speaker 4: existing investor base. And then the bankers like this is
[0:56] Speaker 4: going to be the biggest IPO of all time and
[0:58] Speaker 4: they will still go to the capital market straight after.
[1:00] Speaker 4: And so in this case, what we're reporting is. is
[1:03] Speaker 4: that in talks, I think they're pretty early stage talks, right?
[1:06] Speaker 4: To raise or.
[1:07] Speaker 7: Borrow $ 40.
[1:08] Speaker 4: Billion, $ 10 billion is loans, and then the balance $ 30
[1:13] Speaker 4: billion in investment grade credit.
[1:17] Speaker 7: And to the market, that is a little worrying. There
[1:20] Speaker 7: are warning signs.
[1:21] Speaker 4: I think you guys may have seen the CDS chart
[1:23] Speaker 4: that came out this morning after the news hit. But
[1:27] Speaker 4: the market's really happy to support that because there are
[1:30] Speaker 4: bigger picture discussions about, the useful economic life of a
[1:33] Speaker 4: GPU and the best way to finance it to get
[1:35] Speaker 4: it into a data center quickly.
[1:38] Speaker 8: What about this being a blueprint, Ed, like maybe a
[1:42] Speaker 8: troubling blueprint for other big tech companies? I mean, I'm
[1:45] Speaker 8: just thinking, you know, Anthropic and OpenAI who have yet
[1:48] Speaker 8: to come to market. Are we just going to see
[1:49] Speaker 8: them do the same and take a page out of
[1:51] Speaker 8: the SpaceX book?
[1:53] Speaker 7: Really good question.
[1:54] Speaker 4: And on Bloomberg Tech later 11.30, I have JD Moriarty,
[1:59] Speaker 4: who's the vice chair in investment banking at Bank of America.
[2:02] Speaker 7: That's exactly the question to ask him, right?
[2:04] Speaker 4: That when you're waiting for Anthropic and then opening ISO IPO...
[2:08] Speaker 4: Do investors now, right now, need to be comfortable with
[2:11] Speaker 4: the idea that when those massive IPOs happen, they immediately
[2:14] Speaker 4: go to the debt markets? But it's not a blueprint
[2:17] Speaker 4: in SpaceX's case, right? Because remember, all of the hyperscalers,
[2:21] Speaker 4: cloud computing companies who build and operate their own data centers,
[2:25] Speaker 4: have been borrowing at unprecedented levels as well. It's been
[2:28] Speaker 4: happening for 18 months. And so like it's already out
[2:31] Speaker 4: there in the market. And again, the market is pretty
[2:34] Speaker 4: relaxed about it. Not only the borrowing, but the idea
[2:36] Speaker 4: these companies tip into negative free cash flow as a
[2:39] Speaker 4: consequence of their spending and borrowing.
[2:42] Speaker 6: Let's talk about another big tech name in the opposite direction.
[2:46] Speaker 6: We're talking about tangible things that people can buy for
[2:48] Speaker 6: their homes. And that is Apple is entering the smart
[2:51] Speaker 6: home device market. It's looking to partner up with LG
[2:56] Speaker 6: on what smart doorbells, locks and thermostats.
[2:58] Speaker 1: These will not be Apple branded items.
[3:01] Speaker 4: Yeah, so it's basically a JV, which is slightly more
[3:04] Speaker 4: rare in Apple's context. I appreciate a lot of people
[3:08] Speaker 4: listening to us right now, Scott, on radio, and they
[3:10] Speaker 4: might be watching on YouTube, but go to the story
[3:13] Speaker 4: that Mark Gurman published, and there are some diagrams in there, basically,
[3:17] Speaker 4: of what a deadbolt lock would look like, of what
[3:21] Speaker 4: a smart thermostat would look like. But it is in
[3:24] Speaker 4: line with Apple for this much deeper push into the
[3:26] Speaker 4: home that they have been doing of late. you know,
[3:30] Speaker 4: to move away from the smartphone, the iPhone, which is
[3:32] Speaker 4: still their bread and butter, but sort of seeding the
[3:36] Speaker 4: competence of LG in existing product lines like smart locks
[3:39] Speaker 4: and doorbells.
[3:41] Speaker 7: They're good at that. So Apple's kind of leveraging their expertise.
[3:45] Speaker 8: I'm wondering, though, if Apple is late to the home
[3:48] Speaker 8: device or home tech game. I mean, a lot of
[3:51] Speaker 8: folks have sort of decided what they're going to use
[3:53] Speaker 8: for their home. And it takes a lot to have
[3:55] Speaker 8: somebody move. I mean, unless I guess you're part of
[3:58] Speaker 8: the Apple ecosystem and you're just buying into it. But
[4:00] Speaker 8: I just wonder if there's going to be a little
[4:01] Speaker 8: bit of a hurdle here for Apple.
[4:04] Speaker 4: You know, I'm not going to answer this from the
[4:06] Speaker 4: sort of reporting journalistic standpoint. I'm going to answer it
[4:08] Speaker 4: as the consumer. Like in my home, I have a
[4:10] Speaker 4: simply safe security system. I have Alexa-based devices. Echo devices
[4:15] Speaker 4: is my smart home thing, you know, which is from Amazon.
[4:20] Speaker 4: And I use an iPhone and a MacBook computer. So, like,
[4:23] Speaker 4: I'm all over the place. And lots of consumers are
[4:25] Speaker 4: confronting that. The bet from an Apple is... is that, yes,
[4:29] Speaker 4: if you are an iPhone user or you're a Mac user,
[4:33] Speaker 4: that there is an appeal to sort of unifying the
[4:35] Speaker 4: hardware bases that you have.
[4:37] Speaker 7: In this case, again, it's.
[4:38] Speaker 4: A JV of LG, but it's a tough and saturated market, sure.
[4:43] Speaker 6: Yeah, maybe, except I don't want to spend money on
[4:46] Speaker 6: things I don't need to spend money on because my
[4:47] Speaker 6: lock currently works right now. All right, Ed, we were
[4:51] Speaker 6: talking earlier about Alexis and John looking for some wine,
[4:55] Speaker 6: California wine at good prices.
[4:57] Speaker 1: And you have... Figure this out.
[4:59] Speaker 7: This is way more important.
[5:00] Speaker 1: You've got like a hack.
[5:01] Speaker 4: What's going on?
[5:02] Speaker 1: I know I was going to use that word. You
[5:03] Speaker 1: kind of hacked this. What is your system?
[5:06] Speaker 7: You know, so I live in the Bay Area now.
[5:07] Speaker 4: I live in Marin County, but I spend a lot
[5:09] Speaker 4: of time in Sonoma County and Napa County and I
[5:11] Speaker 4: love wine. And Costco has always been a place where
[5:15] Speaker 4: you have to sort of double take.
[5:17] Speaker 7: Is this bottle of wine even real? Is this a fake?
[5:20] Speaker 4: Of course it's not a fake because you are paying
[5:22] Speaker 4: a discount of beyond 50% versus what you get.
[5:25] Speaker 7: If you were a member at that winery.
[5:27] Speaker 9: Ah.
[5:28] Speaker 4: And, you know, there are lots of examples of like
[5:30] Speaker 4: Costco does ad hoc arrangements with different wine makers and stuff.
[5:34] Speaker 4: But remember, like Costco does not make money on the
[5:36] Speaker 4: goods that it sells. It makes it from the memberships.
[5:39] Speaker 4: So that is a sort of artificial model. But right now,
[5:42] Speaker 4: everything John said about the wine industry, based on my experience,
[5:44] Speaker 4: the friends I have there, you know, that's true. And
[5:47] Speaker 4: you can pick up some astonishing deals. A big part
[5:50] Speaker 4: of it you guys didn't discuss, and I love your
[5:52] Speaker 4: audience's take, is people are just drinking less wine.
[5:55] Speaker 1: Stay with us. More from Bloomberg Intelligence coming up after this.
[6:02] Speaker 5: You're listening to the Bloomberg Intelligence podcast. Catch us live
[6:06] Speaker 5: weekdays at 10 a.m. Eastern on Apple CarPlay and Android
[6:09] Speaker 5: Auto with the Bloomberg Business app. Listen on demand wherever
[6:12] Speaker 5: you get your podcasts or watch us live on YouTube.
[6:17] Speaker 8: I want to stick in the food services industry. That's
[6:19] Speaker 8: a nice segue there, John. Thank you very much. Because
[6:21] Speaker 8: McDonald's has been in the news, really for all the
[6:24] Speaker 8: wrong reasons. Stock is down 32% from its peak in February.
[6:28] Speaker 8: It's having trouble getting its franchisees on board with overhauling
[6:32] Speaker 8: its restaurant and its menu.
[6:33] Speaker 3: Why?
[6:34] Speaker 8: Because it's going to come at a huge cost to them.
[6:36] Speaker 8: Let's talk about that now. with Michael Halen. He is
[6:39] Speaker 8: Senior Restaurant and Food Service Analyst for Bloomberg Intelligence, joining
[6:42] Speaker 8: us from our Princeton office. And Michael, give us a
[6:45] Speaker 8: feel for what are the costs here? What would it
[6:48] Speaker 8: cost a franchisee to get on board with McDonald's overhaul plan?
[6:54] Speaker 2: Yeah, McDonald's is asking for $ 1. 2 million, which we think
[6:58] Speaker 2: is is a huge ask for franchisees that are, you know,
[7:02] Speaker 2: being squeezed by higher commodity costs, right? And also suffering
[7:07] Speaker 2: from lower traffic. And some of it may have been
[7:09] Speaker 2: induced by management, right? Chris Kempczynski was, you know, widely
[7:18] Speaker 2: ridiculed for his very weak bite of the big arch
[7:23] Speaker 2: and his calling it a product, right? And then since then,
[7:27] Speaker 2: Some of their competitors, particularly Burger King, really kind of
[7:31] Speaker 2: latched onto that and have seen some really strong same-store
[7:35] Speaker 2: sales growth. So franchisees can't be happy with management right now.
[7:41] Speaker 2: And we don't see many franchisees willing to pay $ 1. 2 million.
[7:45] Speaker 2: We think there'll be some sort of negotiation and a
[7:49] Speaker 2: much smaller remodel and investment package will be agreed upon.
[7:54] Speaker 6: Okay, what is involved in this remodeling that cost this
[7:58] Speaker 6: much money? I mean, how different are these McDonald's stores
[8:00] Speaker 6: going to look after this $ 1.
[8:02] Speaker 1: 2 million refreshing?
[8:07] Speaker 7: Yeah, you know, part of it is they want to.
[8:09] Speaker 2: it sounds like they're trying to do something, um, to
[8:12] Speaker 2: bring back the play place, right. Um, to attract more families, which,
[8:17] Speaker 2: you know, going back to Burger King again, you know, who's,
[8:20] Speaker 2: who's done a good job of, uh, attracting families over
[8:23] Speaker 2: the last year, driving high single digit comps, right. And
[8:25] Speaker 2: McDonald's seems to be reacting to that, right. That, um,
[8:29] Speaker 2: So that's going to be part of the remodel. And
[8:31] Speaker 2: then a lot of it's going to be technology, a
[8:33] Speaker 2: lot of back of the house investments in the kitchen
[8:36] Speaker 2: to drive, you know, smoother and quicker operations.
[8:44] Speaker 8: I want to switch gears for a moment and talk
[8:46] Speaker 8: about Texas Roadhouse, because this company's been going through it, Michael.
[8:50] Speaker 8: Viral social media hoax claiming discrimination at Texas Roadhouse really
[8:54] Speaker 8: did a number on the stock, led to a six-week
[8:56] Speaker 8: sell-off of the company's shares, which surpassed 20% by the
[9:01] Speaker 8: end of September. But you're saying some analysts see this
[9:04] Speaker 8: as an opportunity?
[9:07] Speaker 2: Well, you know, some are. I'm not necessarily saying that.
[9:10] Speaker 2: I mean, I think, you know, to just say that
[9:13] Speaker 2: is the only reason why this.
[9:15] Speaker 1: Stock is sold off.
[9:16] Speaker 2: You know, I don't know. I don't know if that's
[9:18] Speaker 2: the case or not, to be honest with you. But,
[9:20] Speaker 2: you know, that would kind of be ignoring the fact that.
[9:24] Speaker 2: Restaurant sales were weak last month in general across the sector.
[9:29] Speaker 2: Restaurant stocks across our coverage list, across the board, are
[9:35] Speaker 2: getting hit really hard due to the speed of the
[9:40] Speaker 2: ramp in oil and commodity prices. So to say that, yeah,
[9:44] Speaker 2: the stock is only down because of a fake news
[9:47] Speaker 2: story and you should buy it, you know, I think
[9:50] Speaker 2: kind of ignores some of the other risks out there.
[9:52] Speaker 2: Texas Roadhouse is not the only stock that's been down
[9:55] Speaker 2: significantly in the last couple months.
[9:58] Speaker 6: I mean, because of all the things that are kind
[10:01] Speaker 6: of bugging all the restaurant companies, higher costs overall, higher wages,
[10:05] Speaker 6: higher ingredient costs, you know, the headlines, I suppose, on
[10:09] Speaker 6: Texas Roadhouse don't help.
[10:12] Speaker 2: No, definitely not. That being said, Texas Roadhouse is a
[10:16] Speaker 2: very well-run company. They've been driving mid-single-digit same-store sales comps
[10:21] Speaker 2: for years. They're very good operators. They give a ton
[10:25] Speaker 2: of value. Customers receive a lot of food for what
[10:31] Speaker 2: they pay. They get very fast, good service. So there's
[10:35] Speaker 2: reasons to like Texas Roadhouse. But my question is, you know,
[10:42] Speaker 2: are they stepping in front of a freight train? You know,
[10:44] Speaker 2: we think restaurant sales should... should improve a bit here
[10:50] Speaker 2: over the next month or two because we'll be lapping
[10:54] Speaker 2: the government shutdown, right? But we've had, you know, next
[10:58] Speaker 2: year's not going to be easy. We're going to have
[11:00] Speaker 2: to lap the higher tax refunds, right? We're going to
[11:04] Speaker 2: be lapping some strong economic data from early 2026. We're
[11:12] Speaker 2: You know, we think what investors are doing right now
[11:16] Speaker 2: is they're looking past this next month or two and
[11:21] Speaker 2: the stronger sales that we should see into 2027, which
[11:24] Speaker 2: is a concern.
[11:26] Speaker 1: Stay with us. More from Bloomberg Intelligence coming up after this.
[11:33] Speaker 5: You're listening to the Bloomberg Intelligence Podcast. Catch us live
[11:37] Speaker 5: weekdays at 10 a.m. Eastern on Apple CarPlay and Android
[11:40] Speaker 5: Auto with the Bloomberg Business App. Listen on demand wherever
[11:43] Speaker 5: you get your podcasts or watch us live on YouTube.
[11:48] Speaker 8: Alexis Christophorus in for Paul Sweeney today, along with Scarlett
[11:51] Speaker 8: Fu in the Bloomberg Interactive Brokers Studio. We got confirmation
[11:56] Speaker 8: just a little while ago that Disney Plus is going
[11:58] Speaker 8: to stream the 2027 Super Bowl on its subscription service,
[12:03] Speaker 8: both in the U.S. and dozens of countries worldwide. Just
[12:06] Speaker 8: the latest headline coming out of Disney in these past
[12:09] Speaker 8: few days. And here to break it down for us
[12:12] Speaker 8: is Geetha Ranganathan, Bloomberg Intelligence Analyst on U.S.
[12:15] Speaker 5: Media.
[12:15] Speaker 8: She's joining us from Bloomberg's Princeton office. So Geetha, I
[12:18] Speaker 8: guess this really wasn't a surprise, was it?
[12:23] Speaker 9: Not really, Alexis.
[12:24] Speaker 3: So I guess the surprise element is that they are
[12:27] Speaker 3: streaming it on.
[12:28] Speaker 9: Disney Plus as opposed to ESPN.
[12:32] Speaker 3: So we've already seen a lot of different streaming platforms
[12:36] Speaker 3: stream the Super Bowl. Peacock did it this year, which
[12:39] Speaker 3: is the streaming service from NBC. We know that Tubi,
[12:42] Speaker 3: which belongs to Fox, Did it in 2025. So nothing
[12:45] Speaker 3: new here. I mean, streaming has now just become a
[12:48] Speaker 3: part of the overall television conversation here. And, you know,
[12:52] Speaker 3: it's obviously with such a massive event like the Super Bowl,
[12:55] Speaker 3: it becomes a huge subscription acquisition, subscriber acquisition event, as
[13:00] Speaker 3: well as a great retention event. But I think what
[13:02] Speaker 3: this piece of news, Alexis, what it tells us about
[13:05] Speaker 3: Disney's ongoing strategy is that they're really looking to convert
[13:10] Speaker 3: Disney +, which is really more your platform for some
[13:15] Speaker 3: of the old cartoon movies and just their regular movies,
[13:19] Speaker 3: their animation titles. But they're now looking to make that
[13:23] Speaker 3: the front door to the entire Disney ecosystem and what
[13:26] Speaker 3: better way to do it then use the Super Bowl,
[13:28] Speaker 3: the biggest sporting event in the United States.
[13:31] Speaker 9: Exactly.
[13:32] Speaker 8: And ESPN, which we know is owned by Disney, this
[13:34] Speaker 8: will be their first Super Bowl production. But I guess
[13:37] Speaker 8: my question would be, if you can see the Super
[13:40] Speaker 8: Bowl on a number of different platforms, what is Disney
[13:43] Speaker 8: giving the viewer, the paying subscriber? Where's the value for
[13:48] Speaker 8: the viewer in watching the Super Bowl here? What's sort
[13:50] Speaker 8: of the value proposition that Disney is representing?
[13:54] Speaker 3: Yeah, I think the value proposition is, you know, obviously
[13:57] Speaker 3: they are going to do a lot of cross promotion.
[14:00] Speaker 3: They're going to I'm sure, you know, you get to
[14:02] Speaker 3: see a lot of Disney plus content.
[14:04] Speaker 9: They will use a lot of promotional tools.
[14:06] Speaker 3: And the Super Bowl is kind of that window to
[14:08] Speaker 3: get to your Disney plus subscription, as well as the
[14:12] Speaker 3: whole Disney bundle. So remember, Disney is the only company
[14:15] Speaker 3: out there which with such a powerful streaming bundle where
[14:19] Speaker 3: you have Disney plus subscribers. where you have Hulu as
[14:23] Speaker 3: well as ESPN. So you're really attacking all the different
[14:26] Speaker 3: four quadrants of the market and they are the one
[14:29] Speaker 3: comprehensive service. So I'm sure the value to the consumer
[14:32] Speaker 3: is going to be getting a whole lot of content
[14:37] Speaker 3: at a much cheaper price than what they would otherwise get.
[14:41] Speaker 8: So Disney Plus recently raised prices, right?
[14:44] Speaker 9: Subscription prices.
[14:45] Speaker 8: I think it was for ad-free something like $ 3 more
[14:49] Speaker 8: a month at a time when a lot of consumers
[14:51] Speaker 8: are already being squeezed, you know, at the grocery store,
[14:54] Speaker 8: at the gas pump. Is there any indication that prior
[14:57] Speaker 8: times Disney lost subscribers when it raised prices? What has
[15:02] Speaker 8: the past sort of told us about the present?
[15:05] Speaker 9: That's an excellent question, Alexis.
[15:07] Speaker 3: And what we've seen with Disney is they've been extremely
[15:11] Speaker 3: aggressive in terms of raising prices.
[15:13] Speaker 9: So just over the past four years, they've raised prices.
[15:16] Speaker 3: Something like about 80% to 85% on their streaming service.
[15:20] Speaker 3: Compare that to Netflix, which over the same time period
[15:23] Speaker 3: has only raised it about 25%.
[15:25] Speaker 9: So definitely, they've been really aggressive.
[15:27] Speaker 3: And really, the motive there has been streaming has gone
[15:30] Speaker 3: from being a loss leader and a loss maker to
[15:33] Speaker 3: now becoming one of the biggest elements of the whole
[15:36] Speaker 3: profitability story. And one of the ways that they get
[15:38] Speaker 3: to profit and they keep increasing that profit is by
[15:41] Speaker 3: raising prices. But what we've seen for Disney as opposed
[15:44] Speaker 3: to some of their other rival streamers is that even
[15:46] Speaker 3: when they raise prices, they do not necessarily have to
[15:50] Speaker 3: contend with elevated churn. And that's really the power of
[15:54] Speaker 3: the bundle. Most of the people who do take Disney
[15:56] Speaker 3: subscriptions have the bundle. And if they didn't have the
[16:00] Speaker 3: bundle and prices are raised, let's say on a standalone
[16:04] Speaker 3: Disney subscription, this becomes a point for them or this
[16:06] Speaker 3: becomes a motivating factor for them to actually take the bundle,
[16:09] Speaker 3: which tends to be a whole lot cheaper and which
[16:11] Speaker 3: gives them a much better value proposition.
[16:13] Speaker 8: And we're seeing streaming services more and more pay big
[16:16] Speaker 8: time to carry live sporting events. So, Disney, I guess,
[16:21] Speaker 8: this past summer said that they were going to take
[16:24] Speaker 8: on Formula E racing, right? They were going to start
[16:27] Speaker 8: offering that to subscribers later this year. Is that really
[16:30] Speaker 8: the next big, I guess, race for the streaming services
[16:33] Speaker 8: is how do they lock in or when possible come
[16:37] Speaker 8: up with agreements where they are going to be like
[16:41] Speaker 8: the home of a particular sporting event?
[16:45] Speaker 9: Absolutely. Absolutely. Absolutely.
[16:47] Speaker 3: A great piece of content, especially when you're trying to
[16:51] Speaker 3: attract advertisers, right? You want a captive audience. Sports is
[16:55] Speaker 3: the best way to do it. Remember, ESPN is the
[16:58] Speaker 3: biggest buyer of sports rights.
[17:00] Speaker 9: Right now in the market.
[17:01] Speaker 3: They pay about $ 11 to $ 12 billion a year. And
[17:05] Speaker 3: Disney's whole content budget, which is close to about $ 25
[17:07] Speaker 3: to $ 30 billion, majority.
[17:08] Speaker 9: Of that, about 40%, is just sports. So this is
[17:11] Speaker 9: a great way for them.
[17:13] Speaker 3: Putting it on a streaming platform is a great way
[17:14] Speaker 3: for them to monetize it, not just for you know
[17:17] Speaker 3: for them in terms of subscription revenue but advertising remember
[17:20] Speaker 3: disney is selling a super bowl super bowl spot an
[17:23] Speaker 3: ad spot at 12 million dollars that's just a staggering
[17:27] Speaker 3: amount compared to like the eight or nine million that
[17:29] Speaker 3: we're used to seeing so this is such a great
[17:32] Speaker 3: way for them to kind of monetize it across their
[17:34] Speaker 3: entire ecosystem and that's that's why you want sports because
[17:37] Speaker 3: people will pay advertisers.
[17:39] Speaker 5: Will pay This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
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