So, our next guest is going to be weighing in on Disney's billion-dollar deal with Open AI, dueling bids for Warner Brothers, and so much more this morning. Walter Isacson is here. Great to see you.Of course, Walter's Carella Weinberg advisory partner, Twolane University, history professor, CNBC contributor, uh, amazing writer and allaround great friend of ours. >> Help us understand. Let's go AI first.>> Obviously, >> you saw the the Disney story. Were you surprised. And what do you think it portrays.I was ...

Summary of the Conference Call on the China Internet Sector Industry Overview - **Industry**: China Internet Sector, specifically focusing on food delivery platforms - **Key Companies Mentioned**: Ele.me, Meituan, JD, Alibaba Core Points and Arguments 1. **Regulatory Intervention**: The State Administration for Market Regulation (SAMR) summoned food delivery platforms on July 18, 2025, to rectify aggressive promotional practices and promote rational competition, aiming for a healthy ecosystem that benefits all stakeholders [2][3] 2. **Comparison with Previous Summons**: The current regulatory focus has shifted from the sound growth of the platform economy to the sustainable development of the catering and service sector, indicating a more targeted approach to address specific industry issues [2] 3. **Impact of Subsidies**: Substantial subsidies have artificially boosted demand but have led to negative consequences such as: - Diminished in-store dining experiences - Reduced profit margins for restaurants, especially SMEs - Increased waste generation - A low-price mindset among consumers, risking long-term price deflation in the industry [2] 4. **Short-term Sentiment**: The regulatory summons is expected to enhance short-term market sentiment, with stock prices of Meituan, JD, and Alibaba increasing by 3-5% following the announcement [3] 5. **Investment Strategies**: Platforms are likely to adopt a more ROI-focused approach, transitioning from direct subsidies to tiered discount vouchers, which could help alleviate pressure on the catering sector [3] 6. **Long-term Industry Changes**: Anticipated structural transformations include: - Consolidation within the catering sector, favoring chain stores over SMEs - Increased customer price sensitivity due to heightened competition - Platforms accepting lower margins as part of their sales and marketing strategies [4][6] 7. **Stock Implications**: - Near-term recovery expected for Meituan, followed by JD and Alibaba, with Meituan poised for the most significant rebound due to its lagging performance [7] - Medium-term outlook suggests potential lower valuation multiples for Meituan and JD if competition persists, despite confidence in their operational capabilities [7] Additional Important Insights 1. **Market Dynamics**: The entry of e-commerce giants into the food delivery sector is primarily driven by the need to attract new traffic and protect market share, especially as Meituan expands into other e-commerce categories [3] 2. **Fulfillment Costs**: There is a risk of excessive investment in fulfillment infrastructure, which may not align with consumer demand for rapid delivery [6] 3. **Regulatory Risks**: The evolving competitive landscape and regulatory changes pose significant risks to the sector, impacting monetization and operational strategies [13][14][18] This summary encapsulates the key discussions and insights from the conference call regarding the current state and future outlook of the China Internet sector, particularly focusing on food delivery platforms.