FTX fallout: Sequoia's LP letter, SBF's crisis comms + Lon Harris on Andor, $DIS earnings | E1609 | Summary and Q&A

TL;DR

FTX, a cryptocurrency exchange, faces controversy as CEO Sam Bankman-Fried apologizes for poor management, while Disney reports strong earnings for its streaming platform Disney+.

Key Insights

• 🪡 FTX's controversy highlights the need for better regulation and due diligence in the cryptocurrency industry.
• 🔬 Venture capital firms should take more responsibility for conducting thorough due diligence before investing in risky ventures.
• ✊ Disney's success with Disney+ demonstrates the power of strong content and a dedicated subscriber base.

Transcript

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Questions & Answers

Q: What controversy surrounds FTX and its CEO Sam Bankman-Fried?

FTX is under scrutiny for lending customer funds and poor communication. Sam Bankman-Fried apologized for mismanagement and the lending of $10 billion to FTX's sister company, Alameda Research.

Q: How did Sequoia respond to the FTX controversy?

Sequoia, an investor in FTX, wrote down its investment to zero, highlighting the lack of due diligence by venture capital firms in the cryptocurrency space.

Q: What were the key insights from Disney's earnings report?

Disney+ has a strong subscriber base of 164.2 million, with a revenue run rate of $7.7 billion. The streaming platform continues to drive growth for Disney.

Q: What is Netflix's plan regarding live sports streaming?

Netflix is considering entering the live sports market, following in the footsteps of other tech giants like Amazon and Apple. It has bid on streaming rights for various sports events, such as women's tennis and cycling competitions.

Summary

In this video, the host discusses the latest news about FTX, streaming, and Disney's earnings. The FTX news involves Sam Bankman-Fried (SBF), the founder of FTX, and the issues surrounding customer funds and transparency. The host also touches on streaming topics, such as Disney earnings and the idea of a Disney super app. Finally, they talk about the show Andor, the latest hit on Disney Plus, and provide some recommendations for what to watch.

Questions & Answers

Q: What is the latest news about FTX?

The latest news about FTX involves SBF and the issues surrounding customer funds and transparency. The Wall Street Journal reported that FTX's sister company, Alameda research, borrowed $10 billion in customer funds. There are concerns about poor internal labeling of bank-related accounts, which led to inaccurate margin calculations. FTX International, however, assured its users that there are enough assets to cover deposits.

Q: What did Sequoia Capital report about their investment in FTX?

Sequoia Capital, which invested in FTX, released a note to their limited partners (LPS) addressing the situation. They stated that due to the liquidity crunch and solvency risk, they are marking their investment in FTX down to zero. However, they clarified that their exposure to FTX is limited and that the fund remains in good shape overall.

Q: What were the highlights of Disney's earnings report?

Disney reported fiscal Q4 and full-year earnings for 2022. In Q4, they had a revenue of $20.1 billion, which was a 9% increase compared to the previous year. The Parks revenue grew by 36% to $7.4 billion, indicating a post-COVID recovery. However, the media and entertainment revenue fell by 3% to $12.7 billion. Despite this, Disney's stock rose after the initial dip due to missing revenue expectations.

Q: How did streaming factor into Disney's earnings report?

Disney's streaming service, Disney Plus, is a significant focus for the company. Although media and entertainment revenue fell slightly, Disney is investing heavily in streaming content. The success of shows like Andor on Disney Plus indicates growing interest and engagement with the streaming platform.

Q: What is the idea of a Disney super app?

The host discusses the concept of a Disney super app, which would integrate various aspects of the Disney experience into one platform. For example, users would be able to buy theme park tickets, access streaming content, and shop for Disney merchandise all in one app. The goal is to create a seamless and integrated consumer experience, making it easier for users to engage with everything Disney has to offer.

Q: What is the show Andor about and why is it receiving praise?

Andor is a show on Disney Plus set in the Star Wars universe. It follows the character Cassian Andor and his adventures before the events of Rogue One: A Star Wars Story. The host praises the show for its unique and refreshing tone, which deviates from the typical Star Wars formula. It is described as a 70s conspiracy thriller and incorporates various genres and styles. Even those who are not big Star Wars fans can enjoy Andor as a standalone series.

Q: What are the recommendations for what to watch?

At the end of the show, the host shares two recommendations from Lon Harris. One recommendation is for kids of the 80s, while the other is for fans of Boardwalk Empire, Rocky, or The Sopranos. These recommendations are based on personal preferences and are not directly related to the topics discussed earlier in the video.

Takeaways

The FTX news regarding customer funds and transparency highlights the importance of proper governance and compliance in organizations. Sequoia Capital's note to their LPS serves as a reminder that investments can have both successful and disappointing outcomes, and that diversification is crucial. Disney's focus on Disney Plus and the concept of a Disney super app demonstrate the company's strategy to create a seamless and integrated consumer experience. Andor's success showcases the potential in creating standalone shows within established universes, appealing to a wider audience. Ultimately, the recommendations for what to watch provide viewers with additional entertainment options to explore.

Summary & Key Takeaways

• FTX, a cryptocurrency exchange, faces backlash due to mismanagement, including the lending of customer funds and poor communication by CEO Sam Bankman-Fried.

• Sequoia, a venture capital firm, writes down its investment in FTX to zero, highlighting the lack of due diligence by investors.

• In the streaming world, Disney reports strong earnings for its streaming platform Disney+, with a subscriber base of 164.2 million and a revenue run rate of $7.7 billion.

• Netflix considers entering the live sports market, following the footsteps of Amazon, Apple, and other tech giants.