Bloomberg Tech Podcast Summary

Episode: Spotify User Growth, Paramount’s Enhanced Offer
Date: February 10, 2026
Hosts: Caroline Hyde (New York) & Ed Ludlow (San Francisco)

Overview

This episode covers a pivotal week in tech, analyzing major stories including Spotify's record user growth, Paramount’s enhanced bid for Warner Brothers Discovery, Alphabet’s bold moves in bond markets, the current state and future of the software sector in the context of AI, and highlights from Runway’s CEO on their new funding round. The hosts bring in experts from Bloomberg Intelligence, Piper Sandler, and Bloomberg’s journalism team, plus special industry guests, to dig into the details.

Key Discussion Points & Insights

Markets & Macro Trends

• Market Rotation & Tech Sector Moves ([02:10])

  • Software stocks are rebounding: up about 9% for a third day.
  • Hardware faces sell-off, while software—after previous bearishness—attracts investor interest.
  • Retail sales lower than expected, sparking questions around Fed rate cuts and crypto movements.
    • Bitcoin up 1.6%, Ethereum down nearly 5%.

• Alphabet’s Monumental Debt Issuance ([03:19–07:23])

  • Raised $32 billion in under 24 hours through U.S. dollar, sterling, and Swiss franc bonds, including a rare 100-year note (oversubscribed 10x).
  • Robert Schiffman (Bloomberg Intelligence):
    • “[This debt] is just a trophy. It’s going to be put on the shelf of pension funds and insurance companies. And let me tell you something, if anyone’s really worried if that bond does not pay off in 100 years, come and look me up at Bloomberg. I’m going to be upstairs in my office eating free snacks.” ([04:25])
    • Tech giants are in “the best position ever—balance sheets have never been stronger.”
  • Analysts see this as bullish confidence in long-term tech investing rather than the sign of a market top.

The Software Sector Amid AI Disruption

• Are Fears of AI Wiping Out Software Overblown? ([07:23–14:00])
  • Lauren Webster (Piper Sandler):
    • Current volatility is “forming, storming, norming” phase; AI is disrupting some corners, but enterprise software is here to stay.
    • “You can’t rip it out tomorrow. This is a much longer transition period.”
  • Pockets at risk: workflow tools, some legal software as AI automates repetitive tasks.
  • Bright spots: cybersecurity, “picks and shovels” for AI infrastructure, and sectors keeping up with the AI pivot.
  • Investment flows are shifting toward “physical AI plays”—energy, networking, and security for data centers.
  • Market realigns as companies invest ahead of realizing AI revenues, with CapEx supporting growth in both software and infrastructure.
  • 2026 Outlook: Expect ongoing “gives and takes” before AI and traditional software reach equilibrium.

Spotify’s Record-Setting Quarter

• Earnings & Growth Surge ([14:50–16:59])
  • Spotify shares up 15%, biggest move on record after reporting:
    • 38 million new subscribers in Q4, total users now 751 million.
    • $835 million in operating income.
  • Ashley Kahman (Bloomberg):
    • User spike fueled by the viral “Wrapped” campaign. “People tend to activate their service to participate in Wrapped…it was their biggest wrapped ever.”
    • Advertising revenue lagged despite user growth; ad-supported revenue declined year-over-year.
    • “If you’re going to keep adding ad-supported users, you also want to see the revenue in that department go up as well.”

Paramount’s Enhanced Warner Brothers Bid

• Deal Structure and Regulatory Considerations ([16:59–20:38])
  • Paramount, aiming to outbid Netflix, offers to pay Warner Brothers’ $2.8B termination fee and cover refinancing costs if the Warner-Netflix deal is scrapped.
  • Lucas Shaw (Bloomberg):
    • “They are addressing two of the concerns that Warner Brothers has had about their deal.”
  • Regulatory hurdles exist—both DOJ in the US and regulators in Europe are investigating.
  • Shareholder vote (expected by late March/early April) is the next critical deadline.

AI Policy, Startups, and Industry News

• Andreessen Horowitz’s Influence on White House AI Policy ([25:09–26:20])

  • The VC firm is described as the “first outside call” for AI policy from the Trump administration, wielding outsize influence but denies having veto power.
  • Notable figures (Sri Ram Krishnan, David Sacks) bridge the gap between Silicon Valley and government.

• Startup Highlights

  • Runway’s $5.3B Valuation & AI's Next Frontier ([29:55–37:18])

    • CEO Cristobal Valenzuela: New $350M raise to develop “world models”—AI that simulates the world for both media and robotics.
      • “Language models are describing reality; world models are simulating the world.”
      • Customers: marketing, Hollywood, media, plus industrial (robotics, automotive).
      • On labor market impacts: “The industry is adapting pretty well...Every studio has an AI department now.”
    • Remaining private “for a bit” to focus on research before potentially considering an IPO.
    • On AI-generated content: urges consumers to start assuming most content is AI-generated, suggesting the real content (from cameras/humans) may need watermarking in future.

  • Other News

    • Stripe tender offer boosts valuation to $140B.
    • Cadence Design Systems launches a chip development AI tool.
    • Alibaba debuts RIN Brain, an advanced robotics AI model.

Social Media and Safety Trials

• Meta Runs Teen Safety Ads Ahead of Landmark Trial ([40:45–47:31])
  • Meta and other tech giants face a trial over whether their platforms intentionally addict teens.
  • Kurt Wagner (Bloomberg):
    • “These advertisements…promote their teen accounts…timing is interesting…they’re trying to set this narrative about themselves with the backdrop of this trial.”
  • Professor Eric Goldman (Santa Clara Law):
    • Plaintiffs’ legal challenge: Must prove the platforms’ designs actually caused harms, which is “tricky.”
    • “When we talk about solutions, we can’t do that without talking about the problems we’re trying to fix.”

Lyft Earnings Preview ([47:55–50:34])

• Lyft expected to show strong Q4 growth, with boosts from recent acquisitions and product expansions.
  • New markets in Europe (via Free now) and premium services signal positive movement.
  • Product updates for seniors, airport partnerships (e.g., with United Airlines), and simplifications of the app’s interface to broaden reach.
  • Still trailing Uber in global scale, but analysts remain optimistic about trajectory.

Memorable Quotes

• Robert Schiffman (Bloomberg Intelligence) on Alphabet’s century bond:
  “If anyone’s really worried if that bond does not pay off in 100 years, come and look me up at Bloomberg. I’m going to be upstairs in my office eating free snacks.” ([04:23])

• Lauren Webster (Piper Sandler) on software’s fate:
  “You can’t rip it out tomorrow. This is a much longer transition period.” ([08:20])

• Ashley Kahman (Bloomberg) on Spotify’s Wrapped impact:
  “People tend to activate their service to participate in Wrapped…this was their biggest wrapped ever.” ([16:00])

• Cristobal Valenzuela (Runway CEO) on AI content shift:
  “I would suggest everyone probably starts to assume that most of the content that you see is going to be generated. What we should be watermarking…is the real content.” ([36:25])

• Eric Goldman (Santa Clara Law) on tech addiction lawsuits:
  “There are many causes of harms in people’s lives and so isolating that causation is going to be tricky for the plaintiffs.” ([44:31])

Important Timestamps

• [02:10] Market rotation, software sector resurgence, crypto update
• [03:19–07:23] Alphabet bond market moves; macro analysis with Robert Schiffman
• [07:23–14:00] AI fears and the software sector: Lauren Webster & David Solomon insights
• [14:50–16:59] Spotify’s record Q4: user numbers, earnings, “Wrapped” campaign
• [16:59–20:38] Paramount’s enhanced offer for Warner Bros., regulatory angles
• [25:09–26:20] Andreessen Horowitz’s role in shaping US AI policy
• [29:55–37:18] Runway CEO on new funding, world models, industry/labor impact
• [40:45–47:31] Meta’s teen safety trial, commentary from Kurt Wagner and Eric Goldman
• [47:55–50:34] Lyft Q4 earnings preview, strategic moves, and market competition

Tone

The conversation is brisk, informed, and lively, staying true to the Bloomberg Tech style—analytical, data-driven, and peppered with expert insights, occasional humor, and sharp questions.

This summary captures the episode’s detailed commentary and expert perspectives, offering a clear guide for anyone wanting to understand the latest dynamics in tech, media, and finance.