Exclusively Interview With Jim Breyer the Founder and CEO of Breyer Capital on LIVE Davos 2019 – The World Economic Forum in Davos, Switzerland
Sara: Welcome back to Squawk on the street live CNBC from the World Economic Forum in Davos, Switzerland.
Sara: Joining me now is Jim Breyer the founder and CEO of Breyer Capital, he was also an early investor and Facebook sat on the company board for a decade wears many hats talking about AI and much more.
Sara: Welcome Jim, nice to have you.
Jim: Sara, a pleasure…thank you!
Sara: I actually wanted to start up of David was talking with Viacom. Earlier they made a deal today to buy a streaming service TV you’re on the board of 21st Century Fox. How can all of these companies have their own streaming services? How many streaming services can we have?
Jim: We have dozens of streaming services but there will be dozens that are highly unprofitable there’s no doubt Netflix and Amazon were very much at the forefront of my 21st-century, Fox and Disney decided that grade scale matters and whether it’s Comcast the parent company that course reported nice numbers today like your parent company. Absolutely, 21st-century, fox and Disney there will be a couple other major studios and it’s not unlike the technology business.
Jim: My view is there are 3 to 5 very important worldwide media companies going forward. There are 3 to 5 technology companies that are going to be truly important. And it’s also great time to be a TV script writer, television producer, independent software AI developer building on the cloud services and some very optimistic about not only entrepreneurship and innovation, which is represented in today’s Viacom transaction but the opportunity to use a lot of the new technologies around cloud services to build wonderful businesses or nonprofit.
Sara: But you said you see the big players really owning the world is streaming so what does that mean is there’s room for new fox to start streaming services?
Jim: My view though is 10 years from now as an investor. The top 20 companies in the world by market cap will be in the US and China, 18 of the 20 will be technology oriented, but that also means AI first or technology first whether it’s Comcast or Disney or Facebook, Netflix, Google, Tencent others what really matters is building a great customer and enterprise software experiences and I do believe I am two years in to an AI 10 year investment strategy. I made six investments AI last year after receiving approximately 10,000 AI business plans and they run the game from cancer research to helping police forces do a better job to helping our troops all around the world have better information.
Sara: Who’s winning? The US or China on AI it’s running that race?
Jim: It’s never a soundbite but it makes the space race look tame in certain areas like facial recognition China is far ahead, in security solutions sold into governments, the US is catching up but we need to move faster, in areas like devices are of those Korea and Japan on the display devices but in semiconductors, the US has at least a five-year lead which is why I love Nvidia and Intel so many of the semiconductor stocks long-term. There will be slowdowns but the US far away has at least a five-year lead when it comes to semiconductor technologies.
Sara: How you played out in the public market as explosion of growth of AI?
Jim: I like it with some of the great software companies Salesforce, Microsoft many of the enterprise software companies that are selling into businesses and commercial accounts. I would buy Microsoft again and again and hold it and I do really like what would be the FAANG stocks, forgetting about valuations for a moment because I’d like to spend 2 to 3 years on public equity holdings. And then for private companies that I’m investing in many of them partnering with salesforce and Microsoft Oracle and others it’s a 7 to 10-year bet.
Jim: Facebook in 2005 Mark was 20 and I was there, and I helped navigate very treacherous public offering as we all remember that piece fundamental business is long-term are so important and Instagram may be even with all the accolades the most underrated application in the world.
Sara: Well, 2018 was another turbulent period for Facebook, loosing public trust, what does 2019 hold tight?
Jim: I’ve heard. I just hate to throw darts and pile on when a lot of people are, but Facebook and I sent this to Sheryl, and I said this to Sheryl and Mark and others we as Facebook should’ve been much more transparent much more out front and I hope, and I believe 2019.
Sara: So, do they get it?
Jim: I believe Mark really gets it, but I have a long-term buyer. I feel Mark Zuckerberg is a genius.
Sara: Does he deserve to be CEO and Chairman, or should they split that?
Jim: He deserves to be CEO and chairman and Sheryl Sandberg deserves president and they’re terrific and they’re a great team and this is one of the idiosyncrasies of the world we live in. I really believe in chairman and CEO for founders and young companies being in charge and whether it’s media companies whether it’s the best technology companies whether it was of the emerging AI companies where I’m spending a lot of time very often with Chairman and CEO.
Sara: Even when that company is going through the turmoil that Facebook is going for what’s the real execution and leadership questions?
Jim: There been terrible decisions in many cases and I really believe that it’s not a function of the chairman CEO being in the same position up but then again, it’s a venture capitalist my big successes and is a technology investor the biggest successes is open the chairman and CEO in the same spot.
Sara: Very quickly want to ask about China because you have been in China for more than a decade and very bullish on it cross-border deals and dried up completely can you invest in China right now during this trade war?
Jim: And the answer is yes, and I’ve been investing in China for 15 years. The team I’ve worked with investors series A Tencent and Baidu another we continue to make significant investments in China and will continue to do it. But the Internet and a lot of the opportunities in China and US diverged. But I’ll remain very active.
Sara: They don’t get approval to work together.
Jim: They do not get any approvals to work together cross-border investing for now is dead. But 3 to 5 years from now, I’m still very optimistic up. It’s really helpful for US companies in Chinese companies to build often together in different parts of the world. India will be the next show then for the market.
Sara: We can talk to you for hours about all these big topics. Thank you for sharing some of your time here.
Jim: Thank you.
Sara: Thank you so much for Jim Breyer, Breyer capital.
Originally published at www.iqmediacorp.com on Aired: January 23, 2019 at 10 am EST.