# Lilly to Buy Three Vaccine Developers for Up to $3.8 Billion

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 26 May 2026, 23 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/94da635e-732c-430d-b503-b45601107539/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 Paul Sweeney, Alexis Christoforous, and Stacey Vanek Smith -Madison Muller, Bloomberg News Health Reporter, discusses news that Eli Lilly & Co. is buying three clinical-stage vaccine developers for as much as $3.8 billion to establish itself as a leader in other areas and become a major player in infectious diseases. -Anthony Hughes, Bloomberg US Equity Capital Markets Reporter, discusses Quantinuum seeking to raise $1.05 billion in its US initial public offering, capitalizing on investor enthusiasm for quantum computing technology. -Craig Trudell, Bloomberg Managing Editor of Global Business Coverage, discusses Ferrari shares falling almost 8% after critics panned the look of its first fully electric vehicle, a setback for the Italian super-car maker’s controversial push into EVs. -Jennifer Bartashus, Bloomberg Intelligence Senior Analyst, Retail Staples & Packaged Food, discusses research: "World Cup's $80 Billion Prize Hinges on Fans Not Crying Foul." FIFA's nearly $9 billion expected revenue take from this year's World Cup may understate the tournament's broader economic impact, with US legal betting alone set to top $2 billion, based on Bloomberg Intelligence's analysis. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am
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[0:17] Speaker 1: Business app. Listen on demand wherever you get your podcasts,
[0:21] Speaker 1: or watch us live on YouTube.
[0:24] Speaker 2: Well, I was going to call it a merger Monday,
[0:26] Speaker 2: but it's Tuesday, so that doesn't work. But that doesn't
[0:28] Speaker 2: stop the pharmaceutical companies from doing more deals. As I'll
[0:31] Speaker 2: set it before, I'll say it again in the next life,
[0:33] Speaker 2: I'm coming back as a healthcare MNA banker because they
[0:36] Speaker 2: get paid every single week.
[0:38] Speaker 3: It seems like in this week's no different.
[0:39] Speaker 2: Madison Muller Joints. Is here a healthcare reporter for a
[0:42] Speaker 2: Bloomberg News Eli Lelei grees to buy three vaccine developers
[0:45] Speaker 2: for as much as three point eight billion dollars. Madison,
[0:48] Speaker 2: what's Elili looking to do here?
[0:50] Speaker 4: Yeah, I mean, it's definitely an interesting time to be
[0:53] Speaker 4: buying into the vaccine space, given sort of the political
[0:55] Speaker 4: climate that we have in the US with Health Secretary
[0:58] Speaker 4: Robert F. Kennedy Junior, who has pulled funding from various vaccines,
[1:03] Speaker 4: who and we've sort of lost seen a loss of
[1:05] Speaker 4: public support for vaccines, but that has not stopped Lily.
[1:09] Speaker 4: I mean, Lily has been on a tear recently with
[1:11] Speaker 4: m and A. The company has a lot of cash
[1:14] Speaker 4: on hand thanks to the popularity of its blockbuster obesity
[1:18] Speaker 4: and diabetes medications, and what it's looking to do now
[1:21] Speaker 4: is to build toward that next era of growth. What
[1:24] Speaker 4: happens after these medications that are fueling its growth right
[1:27] Speaker 4: now lose patent protection as they always do in the
[1:30] Speaker 4: pharmaceutical industry, and so vaccines are going to be at
[1:33] Speaker 4: least it appears to be part of Lily's sort of
[1:36] Speaker 4: next era. They hired former FDA official Peter Marx last
[1:41] Speaker 4: year to lead their infectious disease unit, and then this
[1:43] Speaker 4: is their first real foray into that space. So there
[1:47] Speaker 4: are three different companies as you saw that they are
[1:49] Speaker 4: buying as of today to target various different global health crises,
[1:55] Speaker 4: from antimicrobial resistance to epstein bar virus and others.
[2:00] Speaker 5: It will be pretty interesting to see what happens.
[2:02] Speaker 6: He shingles as well, one of that mic up against.
[2:05] Speaker 6: I guess the leader in that space is the is
[2:07] Speaker 6: it Shingris, Yeah, the Stringrix vaccine. So do we know
[2:13] Speaker 6: more about this deal? I mean, I know the three
[2:15] Speaker 6: companies that they're buying are privately held, but do we
[2:19] Speaker 6: know anything else about these deals are because usually with
[2:22] Speaker 6: these kinds of things, there are milestone so as you,
[2:24] Speaker 6: I guess, I don't know, set sales goals or what
[2:26] Speaker 6: have you.
[2:26] Speaker 4: Yeah, yeah, exactly, And that is a part of this.
[2:28] Speaker 4: There are going to be milestone payments.
[2:30] Speaker 2: Uh.
[2:31] Speaker 4: These various companies, I mean based sort of all over
[2:34] Speaker 4: the world, couple in the US. Outside of the US,
[2:37] Speaker 4: I think one is based in Zurich, and so they
[2:40] Speaker 4: you know, Lily has a track record of going earlier
[2:44] Speaker 4: in the you know, drug development process.
[2:47] Speaker 5: They like to go for these earlier.
[2:49] Speaker 4: Stage, cheaper deals versus later on sort of bigger mergers.
[2:54] Speaker 4: And that's this is the sort of the same pattern
[2:56] Speaker 4: that we're seeing here. A couple of them are in
[2:59] Speaker 4: clinical already, one of them is about to be ready
[3:02] Speaker 4: for phase one trials, and so Lily will be able
[3:05] Speaker 4: to really partner with them and take them through that process,
[3:07] Speaker 4: which is something that's often hard and expensive for biotechs
[3:10] Speaker 4: to do on their own.
[3:12] Speaker 2: So for these big former companies that are out there
[3:14] Speaker 2: in the marketplace with these weight loss drugs. They're not
[3:16] Speaker 2: standing still, are they. They're making them better, more powerful,
[3:19] Speaker 2: less side effects.
[3:20] Speaker 3: What's Lily doing for them?
[3:22] Speaker 4: Lily is basically doing everything. I mean, they have their
[3:24] Speaker 4: strategy and Obesity is to throw everything that they have
[3:29] Speaker 4: at this. They don't want to be left out of it.
[3:30] Speaker 4: They don't want what happened to Nova Nordisk to happen
[3:34] Speaker 4: to them. I mean, Novo has sort of been caught
[3:36] Speaker 4: flat footed just by how quickly this market has moved,
[3:39] Speaker 4: and there are a lot of competitors and a lot
[3:41] Speaker 4: of people, like you said, trying to develop better weight
[3:44] Speaker 4: loss drugs, whether that's you know, pill forms or less
[3:47] Speaker 4: side effects or taken monthly. Nova's sort of struggling to
[3:51] Speaker 4: figure out its next move and fill its pipeline. Lily has,
[3:54] Speaker 4: you know, strategically made the decision years ago to throw
[3:58] Speaker 4: everything that they had at over and so they are
[4:01] Speaker 4: looking at different types of molecules, something called amulin, which
[4:05] Speaker 4: is thought to maybe be a little bit gentler on
[4:07] Speaker 4: the stomach, maybe not have the same GI effects that
[4:10] Speaker 4: the current generation of weight loss drugs have. They're looking
[4:14] Speaker 4: at less frequent dosing, They're looking they just had a
[4:17] Speaker 4: new pill approved. They are looking at drugs that are
[4:20] Speaker 4: even more effective than the ones currently on the market.
[4:22] Speaker 4: So it's pretty much like everything under the sun. They
[4:25] Speaker 4: want to they want to be playing in.
[4:26] Speaker 2: The next area they need to focus on being the
[4:28] Speaker 2: pharmaceutical industry.
[4:30] Speaker 7: Baldness, baldness, huge opportunity to put the hair back on,
[4:35] Speaker 7: you know, half the most big I mean is that
[4:40] Speaker 7: something that's they're talking about is yes.
[4:43] Speaker 2: The same areas is like obesity exactly.
[4:47] Speaker 4: So Lily actually does have a drug drug for alopecia,
[4:50] Speaker 4: which is a little bit different. But there is another company,
[4:53] Speaker 4: and I'm blanking on the name, but I know the
[4:54] Speaker 4: ticker is Maine, which is pretty creative that has been
[4:58] Speaker 4: getting some hype re simply because they are developing supposedly
[5:02] Speaker 4: better hair loss treatment. So that's the one that I
[5:05] Speaker 4: know people have been watching.
[5:06] Speaker 6: But you know, when you look at these stocks like Eli,
[5:08] Speaker 6: Lilly has barely budged year to date, and you mentioned
[5:11] Speaker 6: Novo norda sort of being held flat footed here to date,
[5:14] Speaker 6: they're down almost twelve percent, which I mean, I guess
[5:16] Speaker 6: I get that, but I would I would expect a
[5:18] Speaker 6: more enthusiastic response to Eli Lad than for some reason,
[5:20] Speaker 6: the stock's just not moving much.
[5:22] Speaker 4: Yeah, I mean I think that's because at this point,
[5:25] Speaker 4: it's they've just grown so much. I mean, their valuation
[5:29] Speaker 4: is enormous. They hit a trillion dollar they were the
[5:31] Speaker 4: first healthcare company to hit a trillion dollar valuation last year,
[5:35] Speaker 4: and I think it's it's hard for investors to see
[5:39] Speaker 4: much more right now, Like when you're.
[5:41] Speaker 6: At the very they sort of top or they've peaked, right.
[5:44] Speaker 5: Like, what what is there to get excited about?
[5:47] Speaker 4: Which, you know, there is a lot that Lily is doing,
[5:49] Speaker 4: but I think to get it up from the high,
[5:52] Speaker 4: high high point that it's at now, I mean, it
[5:54] Speaker 4: has to be something pretty spectacular. So I think that
[5:57] Speaker 4: right now, investors are sort of just watching and waiting
[6:00] Speaker 4: to see what happens, Like are they eventually, you know,
[6:03] Speaker 4: is there a mistake or a hiccupcoming or are they
[6:05] Speaker 4: going to be able to sustain this incredible growth? And
[6:08] Speaker 4: so I think that that's sort of the moment we're
[6:09] Speaker 4: in right now.
[6:10] Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this.
[6:17] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
[6:21] Speaker 1: weekdays at ten am Eastern on Apple Cocklay and Android
[6:24] Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
[6:28] Speaker 1: you get your podcasts, or watch us live on YouTube, and.
[6:32] Speaker 2: We talk IPOs. We've been talking all about SpaceX over
[6:35] Speaker 2: the last and for good reason. It's gonna be some huge,
[6:38] Speaker 2: huge offering there and as well as maybe some AI
[6:40] Speaker 2: deals coming down to space.
[6:41] Speaker 3: But there's another one out there.
[6:44] Speaker 2: There's a quantum computing IPO. That's the other like secret
[6:47] Speaker 2: sauce out there edition to AI. You mentioned quantum computing
[6:50] Speaker 2: and that gets your attention. Here Anthony Edwards Joints is here,
[6:53] Speaker 2: equity capital markets reporter for Bloomberg News. Talk to us
[6:56] Speaker 2: about Honeywell this Honeywell back to deal Quantinium. What does
[7:00] Speaker 2: this company do and what are they coming public for?
[7:03] Speaker 8: Yes, well, Quantinum is another quantum computing company. I mean,
[7:07] Speaker 8: there's been quite a few that have gone public over
[7:10] Speaker 8: the last say three or four years, but most of
[7:12] Speaker 8: those have gone public SPAC mergers, which is probably you know,
[7:17] Speaker 8: sometimes that raises a question mark about their quality. And
[7:20] Speaker 8: obviously also the SPAC merger process sort of lends itself
[7:23] Speaker 8: to companies that perhaps don't have an established level of profitability.
[7:28] Speaker 8: But so the interesting thing here is that this is
[7:30] Speaker 8: a fairly large IPO.
[7:31] Speaker 9: This company will be looking at quantinium.
[7:34] Speaker 8: We'll be looking to raise about a billion dollars for
[7:36] Speaker 8: a sort of market value market cap of around sort
[7:40] Speaker 8: of twelve thirteen. And yeah, I mean the company is
[7:44] Speaker 8: not profitable, but it does. It is a bit more
[7:47] Speaker 8: mature than some of most of the other quantum computing
[7:50] Speaker 8: names out there. But you know, this is just going
[7:52] Speaker 8: to be another way for people to play quantal computing,
[7:54] Speaker 8: which has become one of these big themes. And you
[7:56] Speaker 8: know what is kinal computing? Well you sort of need
[7:59] Speaker 8: a agree and quantum mechanics to explain it to you. Well,
[8:02] Speaker 8: but basically these are very powerful computers that these companies
[8:07] Speaker 8: are developing, and you know it's a little bit way off,
[8:10] Speaker 8: but this can solve some really complex tasks that really
[8:13] Speaker 8: classical computing can't. So you know that's about those good
[8:16] Speaker 8: an explanations I can give you.
[8:18] Speaker 10: So what are some of the complex tasks they can solve? Like,
[8:21] Speaker 10: what are some of the whis that quantum computing can
[8:24] Speaker 10: make money or help businesses in kind of in this
[8:27] Speaker 10: moment we're in.
[8:28] Speaker 8: Yeah, well, I think the classic use case which people
[8:32] Speaker 8: have been talking about and certainly with this the marketing
[8:35] Speaker 8: of this IPO is around drug discovery, where basically that
[8:39] Speaker 8: has a process that takes you know, can take a
[8:42] Speaker 8: very long time to take a drug from from the
[8:45] Speaker 8: R and D to commercialization. And using these you know,
[8:49] Speaker 8: powerful powerful computing that's one you know, one idea I
[8:53] Speaker 8: guess is that you may be able to really speed
[8:55] Speaker 8: up the whole R and D process because the way
[8:57] Speaker 8: these computer work, these computers work that they can sort
[9:00] Speaker 8: of process so much information sort of simultaneously in a
[9:04] Speaker 8: way that classical computing card and you can really sort
[9:06] Speaker 8: of go through these trials and and much much quicker
[9:11] Speaker 8: and really get to you know, get through that process.
[9:14] Speaker 2: That's just one one area.
[9:16] Speaker 8: And obviously the full commercial adoption of quantum computing is
[9:20] Speaker 8: some way off, and obviously there's a view that there'll
[9:24] Speaker 8: be plenty of other, you know, ways in which quantum.
[9:27] Speaker 9: Computing can be deployed in the future as well.
[9:29] Speaker 1: Well.
[9:30] Speaker 2: The Trumpet Administration is supporting quantum computing. They're announced on
[9:33] Speaker 2: ME twenty first two billion dollars in funding for some
[9:37] Speaker 2: of these companies.
[9:37] Speaker 8: Is Quantinium part of that group, Yes, So Quantinium got
[9:41] Speaker 8: one hundred million out of that deal. So you know,
[9:44] Speaker 8: obviously in recent times the US government has put a
[9:47] Speaker 8: bit of money into some companies, and those companies like Intel,
[9:51] Speaker 8: and that's become obviously a very hot.
[9:53] Speaker 9: Stock after being very poor stuff a very long time.
[9:56] Speaker 8: But yeah, so the whole sector, well, there's two billion
[10:00] Speaker 8: dollars devoted to about nine different companies in IBM getting
[10:03] Speaker 8: a billion dollars was the line's share of it, but
[10:05] Speaker 8: there were some companies that actually missed out, so you know,
[10:08] Speaker 8: some people wondering why that was. But basically, the government's
[10:11] Speaker 8: prepared to invest a lot of money, and governments around
[10:13] Speaker 8: the world are actually by showing it preparedness to invest
[10:16] Speaker 8: a lot of money in quant computing because they feel
[10:18] Speaker 8: like it has a sort of an important industrial and
[10:22] Speaker 8: you know, national security relevance to them.
[10:26] Speaker 2: SpaceX, let's take it rep back.
[10:28] Speaker 3: There have we seen a schedule at road source schedule.
[10:30] Speaker 8: Yet, I know, But basically the expectation is that, I mean,
[10:34] Speaker 8: this IPA Quantinuum is going to price on Wednesday, Dune third, Okay,
[10:38] Speaker 8: but the current expectation is that SpaceX will be launching
[10:41] Speaker 8: its IPO, begin marketing its IPO on the day after
[10:45] Speaker 8: that potentially, and so really what we're seeing is Quntinium.
[10:48] Speaker 8: And then there's actually about a handful of other companies
[10:52] Speaker 8: that are looking to go public before SpaceX, which somewhat
[10:55] Speaker 8: lies in the face of the idea that other companies
[10:57] Speaker 8: were going to completely steer a wide berth of space
[11:00] Speaker 8: But you know, we don't expect to see a lot
[11:02] Speaker 8: of other IPOs on the road at the same time
[11:04] Speaker 8: as SpaceX. But we are going to see a decent
[11:06] Speaker 8: amount of companies here, about four or five billion dollars
[11:08] Speaker 8: worth of deals come right before SpaceX front or just
[11:12] Speaker 8: I'm not sure front run direct term, but just to
[11:14] Speaker 8: kind of get out there before.
[11:15] Speaker 2: SpaceX sucks all that capital out of the marketplace.
[11:18] Speaker 3: Presumably.
[11:19] Speaker 8: Well, you know, I think the early indications are that
[11:22] Speaker 8: there is going to be a lot of demand for SpaceX.
[11:24] Speaker 8: I think we're going to find out more about that
[11:25] Speaker 8: over the next week or so. I mean, it's been
[11:26] Speaker 8: interesting because when that filing came out last week, I mean,
[11:29] Speaker 8: I think a lot of people scratch their heads around
[11:31] Speaker 8: the financials and the like, but I think, you know,
[11:33] Speaker 8: there's a palpable sort of level of interest and hype
[11:35] Speaker 8: around the whole thing, which probably means that they are
[11:38] Speaker 8: going to be able to get the money fairly well.
[11:40] Speaker 9: And you know, we can.
[11:42] Speaker 8: See that the banks are showing I seem relatively confident
[11:45] Speaker 8: they can raise the pretty reasonable sums of money in
[11:48] Speaker 8: some of these other deals as well.
[11:50] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
[11:57] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[12:00] Speaker 1: weekdays at ten am Eastern on Apple, Coarclay, and Android
[12:03] Speaker 1: Auto with the Blueberg Business app. Listen on demand wherever
[12:07] Speaker 1: you get your podcasts, or watch us live on YouTube.
[12:11] Speaker 2: This next segment, this should really be Matt Miller.
[12:13] Speaker 3: I don't know where he is, but I'll try. We'll
[12:15] Speaker 3: try to do it justice.
[12:16] Speaker 2: Here, Craig Drudel joins his Global Autos editor for Bloomberg News.
[12:20] Speaker 3: I think you have another title.
[12:21] Speaker 2: Now right, Yeah, yeah, old notes what you need to
[12:25] Speaker 2: like grandpoo Bob.
[12:26] Speaker 3: We moved you back from London.
[12:27] Speaker 11: Managing editor for Business, very titled.
[12:30] Speaker 3: Yes, that's big.
[12:31] Speaker 2: We moved them back from London. So Craig here in
[12:33] Speaker 2: New York for better or worse. Craig talked to us
[12:35] Speaker 2: about Ferrari. That's all people are talking about here. They
[12:37] Speaker 2: launched their first fully electric car. Again, I'm not like
[12:42] Speaker 2: a Ferrari, dude, that's a Matt Miller's territory. But tell
[12:44] Speaker 2: us what you're saying.
[12:46] Speaker 11: I knew, no matter what, it was going to be
[12:49] Speaker 11: something that I would be talking with a lot of
[12:51] Speaker 11: people this morning, knowing that this unveiling was going to
[12:54] Speaker 11: be happening last night. But it absolutely has been you know,
[12:59] Speaker 11: universal and universally sort of what is this? You know,
[13:03] Speaker 11: how is this uh a Ferrari. It is very Unferrari
[13:07] Speaker 11: like in its exterior design. It looks like a just
[13:12] Speaker 11: more of a sort of typical car. I do think that,
[13:15] Speaker 11: you know, they do get some credit for, you know,
[13:17] Speaker 11: some of the details that they shared previously. The interior
[13:20] Speaker 11: I think is widely uh you know, widely you know,
[13:23] Speaker 11: well regarded and has some cool touches to it. But
[13:26] Speaker 11: from the outside it looks, you know, very Unferrari like
[13:30] Speaker 11: h and is very polarizing.
[13:31] Speaker 10: Okay, Yeah, the Ferrari is known for its like really sleek,
[13:35] Speaker 10: beautiful Italian lines, and this looks a little bit like
[13:38] Speaker 10: a Prius.
[13:39] Speaker 1: Yeah.
[13:40] Speaker 11: And and it's interesting that Johnny I've you know, was
[13:43] Speaker 11: brought in for the design of this, so you know,
[13:46] Speaker 11: maybe that was intentional to to sort of really shake
[13:50] Speaker 11: things up and and also perhaps to create some distance,
[13:55] Speaker 11: you know, given that no matter what, this was going
[13:57] Speaker 11: to have to be quite a departure from you know
[13:59] Speaker 11: what we've come to known from Ferrari for so many years.
[14:02] Speaker 2: How committed to evs are the Ferraris of the world,
[14:06] Speaker 2: the Lamborghinis of the world. I mean, when you're buying
[14:09] Speaker 2: a car, you know, you're like a Matt Miller. You
[14:12] Speaker 2: want to be seeing, you want to be heard, you
[14:14] Speaker 2: want to the roar of this thing and the distinctive
[14:16] Speaker 2: roars the sounds that these supercars make. How committed are
[14:19] Speaker 2: these manufacturers.
[14:21] Speaker 11: We've seen a lot of the higher end manufacturers actually
[14:25] Speaker 11: take steps back from from making this transition, and it
[14:28] Speaker 11: was always going to be complicated. I do think that
[14:30] Speaker 11: there are going to be some markets in the world
[14:32] Speaker 11: where they have to have a vehicle like this for
[14:35] Speaker 11: compliance reasons that you know, even for really low volume
[14:38] Speaker 11: manufacturers like Ferrari, which you know they will sell this
[14:42] Speaker 11: vehicle in the hundreds, as opposed to you know what
[14:44] Speaker 11: we're used to seeing from you know, the sort of
[14:47] Speaker 11: mass manufacturers, and so you know, this is not necessarily
[14:51] Speaker 11: a case where you know, ferraris going to live or
[14:54] Speaker 11: die based on the success of this vehicle. But there
[14:56] Speaker 11: are also going to be some countries where there is
[15:00] Speaker 11: not a sort of slack cut for even a high
[15:03] Speaker 11: you know, high value but low volume manufacturers like Ferrari,
[15:07] Speaker 11: and so they need to make this transition, even if
[15:10] Speaker 11: it's a very gradual in nature.
[15:12] Speaker 10: So in addition to the awesome rumbling engine, also the
[15:16] Speaker 10: cars are supposed to go really fast. They are built
[15:18] Speaker 10: for speed. What about this one?
[15:21] Speaker 11: Yeah, I think this is interesting. It's going to be
[15:24] Speaker 11: sort of commoditized that we see, you know, really quick
[15:27] Speaker 11: acceleration for electric vehicles. We've seen that for some time, right,
[15:30] Speaker 11: and I think that's something you have to give Elon
[15:32] Speaker 11: Musk credit for that. You don't have a situation where
[15:36] Speaker 11: electric cars need to be sort of compliance vehicles that
[15:40] Speaker 11: look like toasters and like science projects. You can make
[15:44] Speaker 11: an electric car, you know, not just a sexy but
[15:48] Speaker 11: you know, the instant torque that you get out of
[15:51] Speaker 11: out of an electric vehicle with you know, battery that
[15:53] Speaker 11: just that that power goes straight to the wheels. You're
[15:56] Speaker 11: going to get that, and you would expect that of
[15:59] Speaker 11: Ferrari's where they have they're going to have a motor
[16:01] Speaker 11: on each wheel for this vehicle. It is going to
[16:04] Speaker 11: be incredibly quick, about two and a half seconds from
[16:08] Speaker 11: zero to sixty. So this one will absolutely throw your
[16:11] Speaker 11: head back, even if you know, maybe it's it's not
[16:14] Speaker 11: the biggest looker, uh, you know, to to sort of
[16:16] Speaker 11: show off to your to your friends.
[16:18] Speaker 2: All right, while we got you here, you mentioned it
[16:20] Speaker 2: Tesla here.
[16:22] Speaker 3: I mean, what's going to happen with this company?
[16:24] Speaker 2: Because everybody's attention, including I'm assuming Elon Musk's attention is
[16:29] Speaker 2: on SpaceX.
[16:30] Speaker 3: What do you guys who followed Tesla.
[16:32] Speaker 2: To this day one, how do you think this is going
[16:33] Speaker 2: to play out?
[16:34] Speaker 11: I think it's it's fascinating that also that we probably
[16:38] Speaker 11: take for granted how long it's been the case that
[16:40] Speaker 11: this is the company that that Elon Musk is paid
[16:44] Speaker 11: most attention to. Uh, and that even for you know,
[16:47] Speaker 11: Tesla being as as successful as it has been and
[16:51] Speaker 11: built itself into you know, the far and away the
[16:53] Speaker 11: most valuable car manufacturer. SpaceX has long been his baby
[16:57] Speaker 11: and sort of you know what he's uh, sort of
[17:00] Speaker 11: focused on of, you know, taking us to other planets.
[17:05] Speaker 11: I do think that it's fascinating to me that some
[17:08] Speaker 11: of the people that are closest to Musk now are
[17:11] Speaker 11: sort of talking very openly about the notion that the
[17:14] Speaker 11: SpaceX IPO might be sort of step one in further
[17:18] Speaker 11: consolidation of his empire, and that perhaps a Tesla SpaceX
[17:24] Speaker 11: combination down the line.
[17:28] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up here
[17:30] Speaker 2: for this.
[17:34] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[17:38] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
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[17:44] Speaker 1: you get your podcasts, or watch us live on YouTube.
[17:48] Speaker 2: The World Cup is coming, starts June eleventh. First game
[17:52] Speaker 2: for the US of a June twelfth, US against Paraguay.
[17:55] Speaker 3: You got that going for you.
[17:57] Speaker 2: It's big business. It's big business globally. We're not really
[18:01] Speaker 2: into it so much yet here in the US, but
[18:02] Speaker 2: I'm sure we'll get there over the next few weeks.
[18:04] Speaker 2: Jen Bartasha, she's been crunching the numbers. She covers all
[18:07] Speaker 2: the retail stuff for Bloomberg Intelligence. Jen, I'm seeing some
[18:11] Speaker 2: huge numbers of what the world Cup means economic impact
[18:14] Speaker 2: across the globe.
[18:15] Speaker 3: How do you guys look at it?
[18:17] Speaker 12: Yeah, hi, Paul. So you know, the estimates this year
[18:21] Speaker 12: are that the World Cup around the world could be
[18:24] Speaker 12: a result in eighty billion dollars worth of spending. So
[18:26] Speaker 12: it's a huge sporting event. It's the biggest event for
[18:30] Speaker 12: a lot of countries around the world. But as you
[18:32] Speaker 12: alluded to in your warm up or entry, the United States,
[18:37] Speaker 12: we're not such a big soccer country, so it's going
[18:39] Speaker 12: to be very interesting to see how having the tournament
[18:42] Speaker 12: here plays out with regards to that anticipated spend.
[18:46] Speaker 6: I'm wondering if the NBA finals and I'm going to
[18:48] Speaker 6: be very New York centric right now for a moment,
[18:50] Speaker 6: but we've got the New York Knicks in the finals
[18:52] Speaker 6: for the first time since nineteen ninety nine over at MSG.
[18:57] Speaker 6: Is that going to take any of the thunder away
[19:00] Speaker 6: from the World Cup or these two different sets of
[19:02] Speaker 6: fans or maybe is that part of the problem.
[19:05] Speaker 12: Well, it's a good question, Alexis, and I think that
[19:09] Speaker 12: you're talking about kind of two sets of fans. Everybody's
[19:12] Speaker 12: very excited about the Nicks, and you know, as that
[19:15] Speaker 12: final comes through and we see what happens. I think
[19:18] Speaker 12: there's grounds and reason for the city to celebrate, But
[19:22] Speaker 12: the World Cup matches are actually happening outside of Manhattan.
[19:25] Speaker 12: They're happening in New Jersey and right now. One of
[19:28] Speaker 12: the challenges I think for the World Cup is that
[19:30] Speaker 12: none of the matches are sold out. Ticket prices are
[19:34] Speaker 12: way out of the reach of your average your average fan,
[19:38] Speaker 12: and so as we get closer to the tournament, part
[19:41] Speaker 12: of what we'll be seeing is, you know, do those
[19:43] Speaker 12: prices come down to help improve engagement and get people
[19:46] Speaker 12: in the stadia and get them excited about the tournament?
[19:50] Speaker 2: Jen Right now, what are the brands that are really
[19:53] Speaker 2: making big commitments to the World Cup these days?
[19:56] Speaker 12: Yeah, it's a it's it's obviously there are a lot
[19:59] Speaker 12: of partnerships. It happened with regards to brands on the
[20:02] Speaker 12: apparel side, Adidas is leading. You know, they have made
[20:05] Speaker 12: commentary from their management team that they expect the World
[20:08] Speaker 12: Cup to generate a billion euros and revenue for them.
[20:11] Speaker 12: Are analysts who's Punam Goyel are a lead analyst for Adidas.
[20:15] Speaker 12: She thinks it's closer to one point two billion euros.
[20:18] Speaker 12: You've also got brands that are doing other partnerships like
[20:21] Speaker 12: Old Navy and the Gap where they're at a much
[20:23] Speaker 12: lower price point, but they're having the ability for people
[20:26] Speaker 12: to just buy a T shirt for the team that
[20:28] Speaker 12: they're supporting. So you're seeing it across all different levels
[20:32] Speaker 12: within the retailer space, and I think that those are
[20:36] Speaker 12: the things that get people excited if they pick, if
[20:40] Speaker 12: they pick a team and they're able to follow it
[20:42] Speaker 12: and they're able to participate in some way. But those
[20:45] Speaker 12: are you know, when you look at the athletic brands,
[20:48] Speaker 12: Adidas and Nike are the ones who have the kits,
[20:51] Speaker 12: the uniforms for the most teams that are in the Cup.
[20:55] Speaker 12: So if people go out and they buy the actual jerseys,
[20:58] Speaker 12: that's a benefit for Adidas.
[20:59] Speaker 6: In ni Jen, I want to go back to ticket prices,
[21:02] Speaker 6: which has been a sore spot for fans that they've
[21:05] Speaker 6: just been you know through the roof in many places
[21:08] Speaker 6: because FIFA is using dynamic pricing. If there are a
[21:12] Speaker 6: lot of seats left just before these matches happen, you know,
[21:16] Speaker 6: are we going to see material drop in prices?
[21:18] Speaker 12: Do you think it is possible that we'll see a
[21:21] Speaker 12: dropped in prices as the matches become nearer because of
[21:23] Speaker 12: that dynamic pricing. But it's not just the match. If
[21:27] Speaker 12: you've seen any of the other media out there, it's
[21:30] Speaker 12: about getting to the match as well. So you know,
[21:33] Speaker 12: we've seen you know, New Jersey Transit for example, talking
[21:36] Speaker 12: about getting to Giants Stadium where there are going to
[21:38] Speaker 12: be matches. You know, the round trip train ticket at
[21:41] Speaker 12: one point was one hundred and fifty dollars. Now it's
[21:43] Speaker 12: closer to one hundred dollars, but that's still a big
[21:46] Speaker 12: outlay just to even get to the stadium where that's happening.
[21:50] Speaker 12: Not every city is doing the same thing, but there
[21:54] Speaker 12: are lots of ways that fans are getting gouged beyond
[21:57] Speaker 12: just the actual ticket price to be able to go
[21:59] Speaker 12: to the stadium and enjoy the show.
[22:01] Speaker 2: What did the retailers say, Does this drive sales like
[22:04] Speaker 2: the people come and buy jerseys and things like that.
[22:08] Speaker 12: It depends. I think it's the answer, Paul. In the
[22:11] Speaker 12: United States, I think that there's a little bit less
[22:15] Speaker 12: of that unless the US team happens to go far.
[22:19] Speaker 12: The further the US team goes in the tournament, I
[22:21] Speaker 12: think the better that is for US based retailers. Because
[22:25] Speaker 12: people will jump on that fanbag fan fan bandwagon and
[22:30] Speaker 12: purchase things to show support for the US team. Globally, however,
[22:34] Speaker 12: it's good for those brands that are, as I said,
[22:37] Speaker 12: Adidas and Nike, those brands that have the official jerseys.
[22:42] Speaker 12: There's a lot more of that kind of purchases that
[22:44] Speaker 12: happen overseas.
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