Brew Markets Podcast Summary

Episode: Bumble CEO Embraces AI & Starbucks: Is Today’s $1 Billion Move Enough?
Host: Ann Berry
Date: September 25, 2025
Podcast: Brew Markets (by Morning Brew)

Episode Overview

In this episode, Ann Berry breaks down three of the day’s top market stories: the increasing use of “golden shares” in government-corporate deals, the bold AI-driven vision of Bumble’s returning CEO Whitney Wolfe Herd, and Starbucks’ $1 billion restructuring plan under its new leadership. The discussion delivers timely insights on critical trends—government oversight of key companies, AI’s transformative role in online dating, and the scale of change needed at global consumer giants.

Key Discussion Points & Insights

1. Golden Shares: U.S. Adopts European-Style Government Controls

[00:02–04:09]

• Definition & Context:
  Golden shares grant holders, typically governments, extraordinary veto power over corporate decisions, even with minimal ownership—a “super veto button.”
• Historical Use:
  First seen in 1980s Europe (e.g., UK’s share in British Airways) to protect national interests during privatizations.
• Recent U.S. Example:
  In 2025, the U.S. government obtained a golden share in Nippon Steel's acquisition of U.S. Steel—coalition of economic and national security interests.
  • "The president can block any attempt to relocate U.S. Steel’s HQ... and prevent changes to U.S. Steel’s executive or board structure..." – Ann Berry [03:18]
• Current Event:
  When Nippon Steel aimed to close a plant in Illinois, the administration used golden share rights to keep it open.
• Debate:
  Critics: Golden shares can deter foreign investment and distort markets.
  Supporters: Essential for protecting key industries in a global economy.
• Host’s Take:
  Ann predicts a wider U.S. use of golden shares in the Trump administration, mentioning TikTok and future big tech deals.

2. Bumble’s AI Makeover: Whitney Wolfe Herd’s Visionary Comeback

[04:35–12:58]

• Sector Slowdown:
  Online dating is suffering—declining paid users, lower spend per user, and tumbling share prices (Bumble’s market cap fell from $13B to under $1B).
  • "...total paying users decrease nearly 9%. Bumble’s market cap today is actually below $1 billion." – Ann Berry [08:39]

Whitney Wolfe Herd’s Background & Return ([05:35–08:11])

• Early Tinder executive, left following a high-profile harassment lawsuit, then founded Bumble at age 25.
• Bumble’s innovation: women initiating contact.
• Achieved several “youngest and first” records, including youngest female self-made billionaire and youngest woman to take a company public.
  • "She was the youngest woman to take a company public when Bumble IPO'd in 2021." – Ann Berry [06:11]
• Stepped back in 2023; returned as CEO in March 2025 after a controversial marketing strategy and removal of key app features.

The New AI Strategy ([09:25–11:50])

• AI Concierge Vision:
  Wolfe Herd’s plan, revealed in a 2024 Fortune interview, sees AI "concierges" screening potential matches—a radical change for dating apps.
  • "Imagine ... there’s 600 potential people... imagine that pool all have AI concierges... they go and sort of date each other... and then come back to you with two you want to meet." – Ann Berry paraphrasing Wolfe Herd [09:25]
• Execution to Date:
  Bumble hired tech and relationship experts, relaunched the BFF app, and overhauled its tech divisions for an AI-first approach.
  • Bumble quote from latest earnings call: "AI is being embedded responsibly and ethically across the entire product ecosystem, from matchmaking and personalization to member support and internal operations." – Whitney Wolfe Herd (quoted by Ann Berry) [10:57]
• Market Response:
  Despite bold strategy, Bumble’s stock hasn’t rebounded yet and the turnaround is in early stages.

Industry Backdrop

• Competitors like Meta and Match are also integrating AI (e.g., Meta’s “Meet Cute” tool and restaurant-booking assistant).
• Dating apps face an inherent paradox: If they work, users leave—making retention tricky.
  • "If it works to help you find a partner, then you don’t need the app anymore." – John [09:04]
• Marketing Shift:
  Bumble’s fresh tagline: "For the love of love," a pivot from last year’s more controversial messaging.

3. Starbucks: Is $1 Billion Enough for a Real Turnaround?

[12:59–16:37]

• Leadership Review:
  CEO Brian Niccol (ex-Chipotle) has focused on minor changes (greetings, vibes, drink options), but the market wants more.
  • "Turnarounds are tough. They take time. They need patience, something the market has very little of." – Ann Berry [13:40]
• The Announcement:
  Starbucks will close 1% of North American company-operated stores, reduce corporate headcount by 900, and spend ~$1B on restructuring (~$600M in cash).
  • "He said he has identified and is closing, quote, coffee houses where we’re unable to create the physical environment our customers and partners expect or where we don’t see a path to financial performance." – Ann Berry [13:20]
• Market’s Take:
  Stock dipped ~1%, as closures had been hinted at previously; Wall Street considers these changes relatively minor for a $95B company.
  • "You’ve just got to go bigger for meaningful change... tweaking around the edges." – Ann Berry [15:36]

4. Quick Market Headlines

[16:38–18:30]

• CarMax:
  • Stock down 22% after weak earnings; shares down 50% in 2025 so far, while rival Carvana is up 80%.
• Amazon:
  • $2.5B FTC settlement for “duping” customers into Prime subscriptions; will notably simplify cancellation.
  • “A $2.5 billion dollar fine sounds like a big number, in the grand scheme of Amazon, not a lot of money.” – Ann Berry [17:41]
• Spotify:
  • Purged 75 million “spammy” songs, targeting AI-generated and SEO-hack content; stock up 58% year-to-date.
    • “I would absolutely die to sit down now with someone from Spotify and have them actually define in words 'spammy song.'” – Ann Berry [18:30]

5. Looking Ahead & Closing Thoughts

[18:31–20:25]

• Teaser:
  DJ Steve Aoki is set to discuss AI in music and live events on tomorrow’s show.
• Quantum Computing Note:
  HSBC and IBM’s recent partnership headlines a “world first” use of quantum for bond trading, signalling real-world financial applications are arriving.
  • “This, to me, is another sign that more and more headlines are coming on the actual applications of quantum computing as it moves from sort of a science experiment to something that’s going to impact us every day...” – Ann Berry [19:31]

Notable Quotes & Memorable Moments

• On Golden Shares:
  "Think of it as a super veto button. ... the holder can block certain key corporate decisions like takeovers or changes to strategy, regardless of what all the other investors want." – Ann Berry [00:51]

• On Dating App Economics:
  "It’s tough to be a shareholder in one of these companies and also root for people to find their long-term love." – Ann Berry [09:15]

• On Bumble’s Market Collapse:
  "Bumble’s market cap today is actually below $1 billion. So enormous degradation in value. But here she is, trying to bring it back to life." – Ann Berry [08:39]

• On Starbucks’ Strategy:
  "...when you’re a $95 billion market cap company ... you’ve just got to go bigger for meaningful change because when you’re that large. Well, Nichols' announcement, as big as a billion dollars may sound, means he was really just tweaking around the edges..." – Ann Berry [15:36]

• On Quantum Computing’s Arrival:
  "This ... is another sign that more and more headlines are coming on the actual applications of quantum computing as it moves ... to something that's really going to impact us every day, including in finance, including in the markets, including in investing." – Ann Berry [19:31]

Timestamps for Key Segments

• Golden Shares Discussion – [00:02–04:09]
• Bumble: Whitney Wolfe Herd’s Return & AI Vision – [04:35–12:58]
• Starbucks Restructuring Analysis – [12:59–16:37]
• Market Headlines (CarMax, Amazon, Spotify) – [16:38–18:30]
• Future Topics/Closing Thoughts – [18:31–20:25]

This episode underscored bold moves and big questions for corporate America: How much government involvement is too much? Is AI more than a buzzword for consumer platforms? And just how big must change be at a giant like Starbucks? Stay tuned for the show’s next episode featuring DJ Steve Aoki—and ongoing analysis of how tech and money intersect in the markets.