"Woke" is the 2019 business strategy

Episode Summary

Executive Summary: The episode moves from the Bezos divorce story and media restraint around it to a broader discussion of “woke” marketing, with Gillette, Nike, Microsoft, Facebook, and AOC as examples of companies and politicians using values-driven messaging. The hosts also argue that 2019 may bring tougher antitrust scrutiny for big tech, while WeWork, Snap, ageism in tech, and two-class share structures signal deeper structural problems.

Main Topics: Jeff Bezos divorce and media restraint (Priority: 5/5): Kara and Scott discuss the Bezos/MacKenzie split, noting the awkwardness of Bezos’ public announcement, the meme-ification of the text message, and why the press has been relatively restrained compared with other scandals. Virtue signaling and values-based marketing (Priority: 5/5): They debate whether companies like Gillette, Nike, Microsoft, and Facebook are using progressive or socially conscious messaging as a business strategy, especially to appeal to high-income consumers and differentiate brands. Big tech antitrust scrutiny (Priority: 5/5): The hosts highlight comments from William Barr and Republican senators suggesting bipartisan concern about tech concentration, antitrust enforcement, and privacy, predicting 2019 could be a turning point. AOC, Pelosi, and political communication (Priority: 4/5): Alexandria Ocasio-Cortez is praised for being “extremely online” and highly effective at shaping narratives, while Pelosi is credited with strong leadership during the shutdown. WeWork and Snap as cautionary stories (Priority: 4/5): Scott predicts a difficult 2019 for WeWork due to governance concerns and questionable economics, and he argues Snap’s CFO departure is a bad signal that points to leadership and execution issues. Ageism and unequal power structures in tech (Priority: 4/5): The hosts argue that tech culture is deeply ageist and that two-class shareholder structures protect founders and weaken accountability, with Zuckerberg and Spiegel used as examples.

Key Arguments: Bezos’ personal situation is unlikely to affect Amazon’s stock, but investors will worry about his focus and leadership bandwidth. The media has been more restrained with Bezos because this is a family/personality story, not a malevolent workplace scandal like Harvey Weinstein or the Amazon/roy Price issues. Progressive or “woke” advertising can be a rational shareholder strategy because affluent, progressive consumers capture a large share of income gains. Gillette’s ad was intentionally provocative and effective because it sparked debate about masculinity, even if some viewers saw it as preachy. Big tech may face bipartisan antitrust pressure because Democrats distrust its political influence and red-state Republicans see local economic harm from concentration. WeWork’s valuation looks disconnected from fundamentals, and the firm’s governance red flags make it vulnerable. Snap’s problems are not just product-related; the inability to retain key executives suggests deeper organizational instability. Two-class share structures reduce accountability by insulating founders from consequences, especially when performance falters. AOC is effective because she understands modern media, is unafraid of hierarchy, and shapes the conversation instead of reacting to it. Ageism in tech is becoming more visible because older employees who are not ultra-wealthy are often treated as out of place or obsolete.

Data Points: Companies using Vanta: 15,000+ - Ad read promoting Vanta’s compliance automation platform. Audit prep reduction: 82% - Ad read claims Vanta cuts audit prep by this amount. SAS anniversary: 50 years - Ad read about SAS celebrating 50 years in data and AI. Microsoft pledge: $500 million - Satya Nadella’s housing-affordability and homelessness-related commitment in the Seattle area. Facebook pledge: $300 million - Referenced as Facebook’s contribution to housing-related efforts. Population represented in Senate: 70% of elected officials represent 30% of the population - Used to illustrate overrepresentation of conservative values in politics. Senate merger scrutiny rate: Less than 1% of eligible cases - Josh Hawley cites DOJ antitrust review via second requests in 2018. Historical comparison year: 1981 - FTC tracking baseline for merger scrutiny statistics. WeWork valuation: $48 billion - Used to argue the company is richly valued relative to fundamentals. Regis comparison: 1/16 of WeWork’s value - Scott compares WeWork with Regis, a similar but much less valuable office-space company.

Pivotal Quotes: "How will humans shape AI?" — SAS ad copy: Introductory promotional segment framing responsible AI around human governance and trust. "Call it compliance or call it Calm-pliance." — Vanta ad copy: Playful line in the opening sponsor message about simplifying security and audit prep. "new Congress, who dis?" — Kara Swisher: Her response to Joe Lieberman’s criticism of AOC, highlighting AOC’s fast, confident social-media style.

Implications: Listeners are being shown how media, politics, and tech are converging around narrative control, accountability, and public trust. The episode suggests big tech, founder-led firms, and brands will face more scrutiny in 2019, while effective online communication becomes a decisive power tool.