Pivot Podcast Summary: April 25, 2025 Edition
Title: Elon Steps Back from DOGE, Wall Street Whiplash, and Meta’s Antitrust Trial Continues
Hosts: Kara Swisher and Scott Galloway
Release Date: April 25, 2025
Network: New York Magazine and Vox Media Podcast Network

1. Celebrating the Webby Awards

The episode kicks off with Kara Swisher and Scott Galloway celebrating their podcast's recent accolades. They proudly announce that Pivot has won both the Webby Award and the People's Choice Award for Best Business Podcast.

Notable Quote:
Scott Galloway [01:54]: “We won the Webby Award and the People's Choice Award. Both of them.”

The hosts share humorous banter about their awards and the nature of such recognitions, reflecting on the often arbitrary aspects of award systems.

2. Meta’s Antitrust Trial and Instagram Acquisition

A significant portion of the episode delves into the ongoing antitrust trial against Meta Platforms Inc. The discussion centers around Instagram co-founder Kevin Systrom's testimony, where he alleges that Meta underfunded Instagram post-acquisition to suppress competition against Facebook.

Notable Quotes:
Kara Swisher [09:35]: “Kevin Systrom testified that Zuckerberg was not investing in the Instagram app because he saw it as a threat to Facebook.”
Kevin Systrom [09:35]: “We were struggling to keep the set up $500 million evaluation… Mark came along and... you get all the expertise of Facebook… That sounded like a really good deal.”

Kara shares her own interview from South by Southwest (SXSW) where Systrom expressed frustrations about integrating Instagram into Meta, likening the experience to having a problematic roommate. The hosts debate the validity of Systrom's claims, considering Instagram's substantial revenue growth under Meta's umbrella.

Insight:
Kara emphasizes that despite Systrom's testimony, Instagram has evolved into a critical revenue driver for Meta, suggesting that Zuckerberg may have recognized Instagram's potential value over time.

3. EU Antitrust Fines on Apple and Meta

The episode explores recent fines imposed by the European Union under the Digital Markets Act. Meta faces a €230 million fine, while Apple is hit with a €570 million penalty for antitrust violations.

Notable Quotes:
Scott Galloway [19:17]: “Meta and Apple are the first companies to be fined for violations of the EU's Digital Markets Act.”
Kara Swisher [20:57]: “Half of what Apple and Meta make in one day. So the question is, is it going to happen every month unless they change their behavior?”

Scott predicts that these fines are likely just the beginning and that European regulators will continue to enforce antitrust measures rigorously, potentially leading to more significant repercussions for big tech companies.

4. Sarah Palin's Defamation Lawsuit Against The New York Times

Kara and Scott discuss the outcome of Sarah Palin's retrial against The New York Times regarding a defamation lawsuit. Palin sued after the Times mistakenly linked her to a political incitement related to the 2011 Gabby Giffords shooting.

Notable Quotes:
Scott Galloway [22:16]: “Charles forme have to starve one of the kids from,”
Kara Swisher [24:03]: “She caught this moment of charisma and fire… Governor Palin has just revealed herself to not be a serious person.”

Kara argues that the lawsuit highlights the challenges public figures face in defamation cases, especially under the "actual malice" standard established by the landmark 1964 case New York Times Co. v. Sullivan. The hosts agree that Palin's reputation has waned over the years, making her case less likely to succeed in future appeals.

5. Tony Hsieh’s Will and Legacy

The hosts reflect on the late Tony Hsieh, co-founder of Zappos, whose recently discovered will detailed his plans for his $1.2 billion fortune. Hsieh aimed to leave substantial sums to his alma mater, Harvard, and other undisclosed beneficiaries, emphasizing surprise and privacy.

Notable Quotes:
Scott Galloway [26:07]: “He was a hugger… he had this happiness tour… but he was so sad.”
Kara Swisher [27:01]: “He struck me as someone who really struggled with loneliness.”

Kara shares personal memories of Hsieh, portraying him as a complex individual who, despite his business success, grappled with personal struggles and loneliness.

6. Elon Musk Steps Back from DOGE and Tesla's Earnings

A major focus of the episode is Elon Musk's announcement that he is stepping back from Dogecoin (DOGE) management to focus more on Tesla, especially after a disappointing earnings report.

Notable Quotes:
Kara Swisher [35:16]: “Doge and Elon Musk are going to fade away... Tesla sales continue to plummet.”
Scott Galloway [37:22]: “Tesla's operating margins have dropped to 2.1%. This is an unprofitable government-subsidized.”

Kara expresses skepticism about Musk's ability to reverse Tesla's declining sales and financial performance without relying on government subsidies. Scott adds that Tesla's recent performance metrics are alarming, with operating margins significantly decreased, indicating deeper financial troubles.

7. Trump’s Impact on Wall Street

The discussion shifts to former President Donald Trump's controversial remarks about Federal Reserve Chair Jerome Powell, which caused significant market volatility. Trump's criticism led to declines in stock and bond markets, showcasing his persistent influence on financial sectors.

Notable Quotes:
Scott Galloway [56:32]: “President Trump's attacks on the Fed chair Jerome Powell… triggered a major off of stocks and bonds.”
Kara Swisher [58:26]: “The only two things you have to remember in a negotiation are not to make it emotional and always show a credible willingness to walk away. This guy gets an F on each of those.”

Kara criticizes Trump's negotiation tactics, highlighting how his emotional and antagonistic approach undermines effective economic strategies and damages America's international standing.

8. Predictions and Conclusions

In the finale, Kara and Scott offer their predictions on various tech and business fronts:

• Alphabet (Google):
  Kara [69:54]: "Rumors of Alphabet's struggles have been greatly exaggerated. YouTube remains a juggernaut."
  Scott [73:00]: Agrees with Kara, expecting Alphabet to outperform expectations.

• Big Tech Spin-offs:
  Both predict that within the next 12 to 24 months, major tech companies might undergo strategic spin-offs to navigate regulatory challenges.

• Geopolitical Shifts:
  Kara [73:20]: Anticipates that Trump's actions will influence Canadian politics, leading to the election of Mark Carney as Prime Minister due to Trump's unpopularity.

Notable Quotes:
Kara [70:53]: “I think Tesla is going to be folded into another merged or an AI company that makes robots.”
Scott [73:15]: "Tesla is definitely on a downward plunge."

The hosts conclude by reiterating the need for strategic adaptations in big tech and cautioning against overreliance on charismatic yet volatile leadership figures like Elon Musk and Donald Trump.

Conclusion

In this episode of Pivot, Kara Swisher and Scott Galloway provide incisive analysis on pressing issues in the tech and business worlds. From Meta's antitrust challenges and Tesla's financial woes to the broader implications of political interference in financial markets, the hosts offer a blend of expert insights and candid commentary. Their predictions about the future of big tech and geopolitical shifts underscore the complex interplay between technology, business strategies, and political dynamics.

For those seeking a comprehensive understanding of the current tech landscape and its intersection with global politics, this episode delivers a wealth of information and thought-provoking perspectives.

End of Summary