Good to see you. Cant wait to talk to you about all of those things. What kind of a grade would you give on the direct listing yesterday . I would give it an a. It didnt have the wild volatility or a huge amount of money left on the table that traditional ipos have. I think it was a pretty good day for direct listings. Spencer, good morning, you took zillow public nearly a decade ago if you had to do that again with a company, that is the same, would you do Something Else . I would either do a dreskt listingov or a spac merger. They dont allow the company to leave money on the table we went public at 20 a share. We closed at 37. So we lost a lot of money on the table for an ipo so i think that there is a lot of innovation in the ipo space since a decade ago when zillow went public and i think there is now great alternatives available. Its julia here we look forward to sees what you do with your speak a question for you now that it is a public company. We have seen so many of the Public Tech Companies face so much scrutiny from washington i wonder if now that palantir is public will it face more regulatory scrutiny . Big tech has been enduring a lot of scrutiny for good reason. They monetize User Behavior and they make money if youretizing. The Management Team has been very clear about why theyre on the other side of this issue and they went to Great Lengths to distance themselves from regular big tech so looking at software for the government, that is what they do they are quite different from monetizing user data which is what traditional big tech does a fascinating story that we will follow as it develops i want to get to your spac early here i want to talk about what youre trying to accomplish, and i want you to comment on the atmosphere of everyone rushing into this new tool and whether or not you think it has legs in the long term some have their doubts thats right. I need to limit my comments, of course i will say generally i think it is interesting the benefits of a direct listing, a spak merger and i have been pretty vocal about some of those issues so i think they offer additional details, but for now i need to limit my comments to that. And spencer, i hope we do have you back on when you start trading, but i guess broadly speaking can you give us a sense of what sectors you think the biggest opportunity is in right now . Sure, a lot of spacs are tech focused. They can issue projections and they cant for a traditional ipo, so whether or not theyre electric vehicles, tech companies, cannabis, they share through a traditional ipo. Where do you think we are in terms of inningings. We talked about the way in which the country adapted mobility there has been some you floout flow, what do you think they will do . All of the cards have been thrown up in the air because of covid, right companies have untethered us from Corporate Headquarters. It allows people to own a portion of a second home and it makes Home Ownership more affordable noise that, you just see people being much more possibly and people reevaluating where they live people moving outside of city centers and in some cases moving from cities to truly rural areas. We no longer have to commute to headquarters i dont see that trend changing. I think it is a real permanent shift that will create more mobility and allow people to live where they want to live and not live where they want to work very interesting. Those that argue that remote working, and in their words, they say it doesnt work i think were going to have a high bridge approach they are, you know, for being provocative and controversial, theyre putting themselves in a position, i think at one end of the spectrum, and i think it will be a hybrid where employees may be required to be in the Office One Day a week or a couple days a month, but i think it will be a lot different employees will be able to live an hour or two hours away from Corporate Headquarters in the suburbs where they can get houses where they want, and they wont have to be in the office every day. So no i dont agree with where they are on this issue so the second house demographic, you think, is larger than maybe what many people think of it it is owning a second home is a luxury, only historically accessible to the 1 , and second homes are an incredibly under utilized asset so were trying to do coownership of second homes instead of buying all of that lake house, buy a quarter of it and have other strangers own the other three quarters, strangers that pacaso fill out, and right size your ownership in that home and we think that will make the more affordable and accessible to more people lets move on to stocks our latest survey shows investors are bullish on tech and confident that those names will buck the september swoon trend. At the same time, even within tech, and our survey, 63 think that facebook, amazon, microsoft, alphabet, will continue to be leaders in the coming months. What is your reflection on that given that names like that have given a huge valuation uptick at the same time. Im not a stock picker. So i dont know if theyre properly values or under values, as a portion of gdp, or the importance in corporate life, or the lives of people, tech is over, tech as one, right these companies, if theyre streams services, like the service were using now, theyre such an integral part of the economy and our life so it is clearly a longterm trend. The only thing that could put a king in that is potential regulation or anything else that the government throws at big tech im pretty kept kal that even that will slow big tech down i do want to go back to pacaso but the questions i have have to do with liquidity and cash flow. If you sbie this second home property, and there are few hoers that have bought in, how do you sell out of it . Is it baits on the zestimate value, and there is no cash flow if you want to build a real estate portfolio maybe there no way to do it there is not cash flow, but there is appreciation. If it goes from being worth a million to 2 million in the next ten years, your 25 appreciations. In terms of resale, it is very easy, you pick up the app, you press a few buttons, and you have just listed it. Unlike timeshare thats are very unliquid, it is truly Real Property so it gets displayed on all of the major sites. We already had resails, so issues like scheduling, who gets to use the home when, that has been worked out and it is going well you schedule your portion of how many of the property you own retails we tested and it is true ownership. You own the right to stay at what is basically a poe tell at a lower price in the future. It doesnt feel like hope ownership, because its not. Spencer im curious about the inventory issue. We talked about how people are leaving cities and moving more permanently to the areas where the houses are, doesnt that limit the availability of the kind of properties youre trying to get the inventory is what it is on the market. So if someone was looking for the pacaso so if you find a home in Santa Barbara you love, you can buy a quarter, and we will lease our three quarters to other buyers what this does it allow you to access current inventory and bump up to the nice price tier instead of buying all of that, you can buy a quarter of a 4 million house. So this flexible ownership allows you to access more inventory. That is fascinating we know that the lens through which you look at the has value. We look forward to having you back thank you fractional ownership of stocks and now fractional ownership of second homes. Sales that were better than expected the estimate was for gm sales to be down 13 . They were down 10 , what stands out is the inimprovementment where they were down 10 the sales rate will be 15. 9 million vehicles guys, if that is the case, there are some that say we could see the sales rate tickle 16 million. Pickups and suvs still in redhot demand back to you. Thank you, i have one of those suvs myself for covid roadtrips. Ron howard and brian grazer are teaming up with a silicon vaey gend stay with us welcome back subpoenas have been sent out by congress for Mark Zuckerberg and others ylan has more. It is trying to force the ceos to come back to capitol hill they are accused of using their market power to control person data there has never been such an ag are gags of power in the history of human kind as big tech enjoys today with money, marketing power, and the hubris that coming with up unchecked exercise of power. This was a dramatic move, but today the committee brought in their subpoena to address privacy and the exact on media i think the issues that were distressing of how we function in an Information Age are of extreme important. I think the issue of privacy and also media domination by the platforms when they put their foot on the throats of local news media is also an issue. I would point out that they were just testifying over the house. Dorsey was over a Different Senate committee in 2018 i have reached out to all three companies but no comment thus far. A question for you on the timing of this, what is the timing of this and if it happens before theelection what is the typing of topics that will come up with that concern around election interference. There is no actual date set yet. The systems have not been formally issued, but there was a desire to have them come testify before the election because of the concerns around misinformation and bias. I expect there will be a lot of back and forth on when they can make this happen ylan, thank you. Dicks Sporting Goods is announcing highs, that move comes as other retailers pause expansion plans or close stores due to the covid downturn. Well be back in a moment. Brian grazer and ron howard after the break. Dont go anywhere, squawk alley returns in just two minutes. Taking california for a ride. Companies like uber, lyft, doordash. Breaking state employment laws for years. Now these multibilliondollar companies wrote deceptive prop 22 to buy themselves a new law. To deny drivers the rights they deserve. No sick leave. No workers comp. No unemployment benefits. Vote no on the deceptive uber, lyft, doordash prop 22. One ride california doesnt want to take. Welcome become, everybody. Up to half of all bars and restaurants in new york city could close permanently because of the pandemic. The audit also found that threefourths of the citys restaurant workers were unemployed testing is ramping up in areas that have been locked down and they have been preparing for restrictions in and out of the capital. In hong kong at least 60 people were arrested on suspicion of Unauthorized Assembly and a frenchman is facing fines for doing that climbing a german skyscraper he did it wearing a silver suit and cowboy boots why, you ask i dont know that is the news update at this hour thank you, sue. Impacting creative seasons, an offshoot of Imagine Entertainment founded by brian grazer and ron howard. They are joining us now to talk about this and more. Thank you for joining us really appreciate it brian, i want to kick it off with you this was part of your other business, your studio, for so long now youre decided to spin it off. Tell us what this new Company Really is. What is, what impact is is a content accelerator. It is designed to connect and centralize the labor force and content force of hollywood it is one app that will be able to access that so really the principal of the whole idea is that ron and i realized that after doing this for 35 years that hollywood is so hiearchial and narrow that i is keeping people from coming into the business. So we knew that original voices are not only inthis narrow kor doer, but all over the world so what we wanted to do was create like a funnel in the world that enables all of the people in the world, now we have 100 countries involved in this, to have access into this media capital. And they are not disabled by this system, they can enter at a higher place and that is exactly it is called development for a reason it has been development hell it is a system that does inadvertently block new voices from coming in it boils down to an cien ancient system of just making list, so this was a solution to give people opportunity, mentorship, leadership, and to help cut through. And it is really, really been working, growing, and we have 30,000 writers that we now now are very capable of doing work, and they come from all over the world. And then we evolved this app and we recognize that we could take it much, much further. That it can also be, you know, a way for lou the line talent to interfashion with one another, understand what is going on, and again, democracitize it and broaden it in a powerful way so it is really all about democratizi democratizing, and youre going to launch what is like a linkdin for entertainment jobs low that operate and how will it change hour companies in hollywood work we should both talk about it, it is essentially going to replace this system of it all being word of mouth and personal relationships which, of course, still matter but as production globalizes more and more, it will facilitate people who, people with needs, production managers, producers, studio execs, to be able to reach out not just to writers, but also to below the line people. Cineatographers, and find the best people at the best time and quickly figure out who is available, who is good, and you know, it is something that when we looked around we realized it was just very absent in our industry so we think it will fill a tremendous need so for example and brian, why. Go head sorry, go ahead i was going to say for example, i was giving an example of this, were doing Aretha Franklin it is a tenhour series under the banner of genius for disney. Youll go to the set and hear the crew talk about where is your next job. And they dont know where their next jobs are because there is no centralized system to provide them transparency of where the jobs are it will connect everyone in a transparent universe for them to be able to get writing jobs, a writer on a big show, ron howards next movie maybe. The writer will be replaced or we need a new one, there has to be a way that is different from whispers in the hallway. It is designed to help people in a very disorganized environment, and covid has not helped that, to find their job. It could be writers, directors, or below the line. And brian, im curious from, your experience 35 years working in hollywood, the two of you together, to partner now with a Silicon Valley giant, why is it so important to have that vc funding and what do you think they will bring to this company. What was more important is bill and benchmarks intellect and building a tech company from start is something they have done quite often and they were you recallly on uber and other companies and it involves large scale populations. Theyre able to help us with a deeper understanding and capability of execution on a tech company that will incapusulate and when i pitch itd to bill gurley he said ill come down tomorrow he came down and he spoke to myself and Tyler Mitchell who is now the ceo, for five hours, kpauzi exhaustively someone with that kind of sustainability, interest, and labor forces and large populations in the Tech Industry hey, guys, while we have you, ron, i would love your take on theatrical distribution today. We spoke about formats and what matters these days in terms of platforms and screen size. And you told the story about watching the grapes of wrath. What does that mean now for the future of theaters now that we have the house and senate calling for help from the distribution change . Formats are changing, interests are changing, and covid is accelerating that it is something were aware of, and the but you know that is an important aspect of the industry still if is going away, as covid continues in the country, it was important for the theater owners, for them to make this request, and that is what that was. Brian, how much traction do you think will get on the hill i hope it gets a lot im wondering about this effort to change the way that talent gets into the system. Is there a problem of over supply particularly when it comes to new talent im hearing that covid resulted in a back up of projects and the projects with big names will be at the front of the line still markets collars amarketin are limited, arent they no so much now. Productions are getting going, you know, we have productions at imagine that are back up and running. And were excited about all of that but yes, i mean, in the very short term, of course. The a projects, the projects that the Companies Feel are most important about their platform or distribution system, they may get moved to the line, but there is a great ongoing need for, you know, for stories and for fresh voices as brian was saying. In our first impact accelera accelerator, a kid from zimbabwe came in, he had 12 to his name, and after he got through our impact accelerator, after that eight weeks, he was able to get into a fourway bidding war in which netflix won this animated movie that is a sevendigit experience so then we had several girls, women, from india that had very Successful Television shows. 30 years ago, it wasnt thought of that way, sadly i think were more koaware of ta and they want to produce content that is very rewarding it just opening the door for more and more unique voice thats is exciting and great for the business as far as the money side, brian, the benchmark, some of our viewers may remember that imagine had a brief experience as a public company. I dont think it was something that you were especially fond of looking back, and now here in this spac boom is there any reason to think you might return possibly. We learned from a trial and error experience, but i think there is a rewarding possibility ahead, sure. Bryant, brian, we talked about the theatrical business, but am wondering about the streaming business i know it is something you have pioneered and been a supporter of for your whole career, why does it make sense for net frflx to bring some of those voices. I think you should definitely ask them they, why is it snornt it is recognized, again, that first of all it is a movement, an important movement, to be acknowledged for me and my career i can only speak for that personally. I started off knowing eddie murphy, and it was the far the of many movies that interested me the most. It was a positive effect in the culture. Was it boome