Podcast Summary: Pivot
Episode: Paramount's Hostile Bid, Elon's EU Threat, and Meta's Metaverse Cuts
Date: December 9, 2025
Hosts: Kara Swisher & Scott Galloway
Overview
This lively episode dives into seismic shifts in the tech and media landscape, centering on Paramount's high-drama hostile bid for Warner Brothers Discovery, the political and economic implications of the deal, Elon's ongoing battles with the European Union, dramatic Meta Metaverse layoffs, and broader conversations on tech consolidation, global politics, and innovation fatigue in Hollywood. Kara and Scott’s signature banter and sharp takes set the tone for a sweeping discussion that pulls no punches.
Paramount’s Hostile Bid for Warner Brothers Discovery
The Bidding War: Players and Politics
- Paramount has launched a hostile all-cash $30/share bid for Warner Brothers Discovery (~$108B including debt), coming soon after losing out to Netflix.
- The deal's backers include Redbird, several Middle Eastern sovereign wealth funds, and Jared Kushner’s Affinity Partners.
- The high-profile involvement of the Saudis, Kushner, and possible Trump influence stirs concerns about cronyism and foreign control.
Notable Quote:
“The Saudis and Jared Kushner... that’s a nice toxic cocktail of crap.”
— Kara Swisher (04:30)
Regulatory, Political, and Economic Angst
- Trump, already meeting with Netflix CEO Ted Sarandos, called for involvement and expressed concerns about market competition—an unusual move for a president.
- Senator Elizabeth Warren and Hollywood insiders slam the prospective deal as “an anti-monopoly nightmare.”
- Major breakup fees and deal conditions could dramatically impact how this plays out.
Notable Moments:
- Kara ridiculing Ellison's outsider status and lack of experience:
“David Ellison’s a very nice guy, but he’s completely inexperienced and over his skis. Like most Trump officials, he has no business running this company.”
— Kara Swisher (13:45)
- Scott calling for process-focused fairness:
“Whoever has the highest bid wins. And that’s how it should be... If they don’t, they should file a lawsuit under the Revlon laws.”
— Scott Galloway (07:23)
Antitrust Worries and Market Realities
- Scott frames a merger between Netflix and HBO as “the end of the streaming wars,” warning it would create a pricing and labor nightmare.
- Kara argues the competition is much broader—pointing to YouTube and TikTok’s dominance and Hollywood’s long-standing failure to adapt.
Market Definition Debate (16:19)
- Scott: Streaming is its own market; consolidation pushes up prices.
- Kara: YouTube and TikTok expand the competitive landscape; streaming isn’t a closed ecosystem anymore.
Notable Exchange on defining the market (18:26):
- Scott: "Do you think those [Meta/Alphabet] cases were the right decisions?"
- Kara: "Yeah, I do... They have plenty of competition. TikTok is an entertainment platform."
Hollywood’s Self-Inflicted Wounds
- Kara delivers a blistering critique of Hollywood:
"Hollywood has persisted in backing shitty economics... Instead, they blame Netflix for inevitable changes that consumers like." (12:30)
- Both hosts agree Hollywood’s reluctance to change and bloated business models paved the way for tech’s dominance.
Kara’s Rant on Hollywood (20:53):
- “Every time I go on Instagram, I go to the Today Show and do a six-minute segment and there’s 14 people in the room. I agree everyone should have jobs, but have they really sat there and thought about... who's making the things that consumers like?”
Elon Musk vs. The European Union & SpaceX IPO Hints
[35:15–43:59]
EU Battle and Public Posturing
- Elon Musk lashes out after the EU fines X $140M for violating the Digital Services Act, even calling for the EU to be abolished.
- U.S. politicians—like Marco Rubio—frame this as an attack on American tech by foreign governments.
- Scott is dismissive:
“Who the fuck cares what he thinks? They’re not going to respond.” (36:18)
Geopolitics: Stronger EU & Ukraine
- The EU is quietly gaining independence, especially in its growing support for Ukraine—both financially and in arms production—while US influence wanes.
- "For the first time, the EU is a union again... The US has become less relevant in Ukraine." — Scott Galloway (37:02)
SpaceX IPO and the New Space Race
- SpaceX’s valuation creeps toward $800B; an IPO is expected in 2026.
- Scott predicts the next great investment “frenzy” will revolve around space, given SpaceX’s dominance ("90% share of fucking everything else of the universe." — Scott, 41:01).
- Kara credits Musk for visionary risk-taking with Starlink, despite his recent antics.
Meta Gutting its Metaverse Division
[47:05–51:50]
$70 Billion Mistake
- Meta plans to cut up to 30% of its VR/metaverse division staff after losing more than $70B since 2020.
- Company pivots R&D funds to AR glasses and AI, and acquires AI wearable startup Limitless while inking new data agreements with major publishers.
Hosts’ Take
- Both mocked the Metaverse hype:
- “It was all so fucking stupid. A legless universe.” — Scott (49:20)
- “He can burn $70B... This was like a— I don't want to say a speed bump, it was definitely a pothole.” — Scott (49:27)
- Meta’s pivot to AI is deemed the correct correction—though skepticism remains about new wearable devices like AI pendants.
News Media vs. Generative AI: The NYT Sues Perplexity
[51:43–55:34]
- New York Times sues Perplexity AI for copyright violations and distributing paywalled stories without permission.
- Kara and Scott argue traditional media still shapes the original narrative, even if their economic power wanes:
- “The coal—the raw content that shapes all of this—comes from the NYT, Washington Post, CBS News.” — Scott (53:08)
- Scott calls for media giants to unite against AI scrapers—despite legal and antitrust concerns.
Winners & Fails
[58:13–61:41]
Kara
- Win: Shoutout to Golden Globe podcast nominees—even if Pivot isn’t among them.
- Fail: Hollywood’s ongoing refusal to adapt: “They’re always fighting the last war... make yourselves an economic world where you can do what you want, instead of blaming Netflix.” (59:37)
Scott
- Win: Praises US military tradition of “offering quarter” and contrasts it with wartime atrocities—emphasizing humanity and intelligence value (61:06).
- Fail: Rants on empty political rhetoric about “affordability,” suggesting real solutions:
- Build 8M homes,
- Universal healthcare (“Medicare-like option”),
- Tuition reform,
- Aggressive antitrust to combat industry consolidation.
Notable Quotes
- “The only qualification is that [Ellison]’s friends with Trump and his daddy has money.” — Kara (13:50)
- “When you have consolidation and concentration of power, it benefits the shareholders... but A, it raises prices, and B, it leaks leverage from labor.” — Scott (09:41)
- “You had a chance to change yourselves two decades ago when this started... Instead of insulting Netflix, maybe you could have copied it.” — Kara (21:18)
Key Timestamps
- Paramount/Warner Bidding War, Tech Cronyism: 03:00 – 20:00
- Market Definition, Consolidation, and the Future of Hollywood: 16:06 – 31:47
- EU/US Tech Clash, Geopolitics, SpaceX: 35:15 – 43:59
- Meta Metaverse Layoffs & New AI Focus: 47:05 – 51:50
- Media vs. AI: NYT vs. Perplexity: 51:43 – 55:34
- Winners & Fails: 58:13 – 61:41
- Scott’s Policy Rant & Housing Fixes: 61:06 – end
Tone & Takeaways
Kara and Scott bring sharp, energetic, and at times scathing analysis to the news, blending industry-savvy observations, cutting humor, and (occasionally) optimism for visionaries able to disrupt the status quo. Paramount’s power play is another act in the unrelenting saga of tech/political/entertainment mergers, with deep implications for consumers, labor, and the creative economy. Hollywood’s inertia, the dominance of big tech platforms, and the questionable alliances fueling these deals are all under withering scrutiny.
Final word: The only certainty: more upheaval, more consolidation, and no shortage of sharp Pivot commentary to come.
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