Name: Here’s How Fortune 500 Companies Will Change in 2016
Uploaded: 2016-01-08
Duration: 3 min 20 s
Description: From M&As to CEOs, we’ve got predictions.

[ MUSIC ] Brian, one of the things, we spend a lot of time talking about towards the end of last year was how these centuries old companies were being disrupted almost overnight from things that were completely unpredictable. Whether it's Uber and Airbnb in their ilk or new business models, are we gonna see more of that? And are there any particular industries that you think will be particularly impacted? I think absolutely. We're gonna see more disruption. Technology's changing things faster in some ways than people. I mean, it's not totally unpredictable. Amazon's been around for 20 years, but if you look at the games that they made and retailed this past year against, say, Walmart. And you look at the market cap of Amazon, up well above 300 billion and Walmart shrinking and Amazon captured so much of the additional retail dollars spent in 2015, like a quarter of it total in the U. S. So, technology is really changing markets more rapidly, I think, than some people Have expected in the short term. We had Mark Shields of Ford, CEO of Ford, talking this week at CES about how they're no longer an automobile company. They're a mobility company. Right. Doing all sorts of things. And GM making this deal with Lyft and investing $ 500 million. Exactly. Right, right. I mean, that's So those are some of the biggest names in the fortune 500, Ford and GM, and they're talking about radical changes to their business model. Steve last year was the biggest year for M and A. Do you think that we will see that trend continue and these companies buying each other as we saw so much of last year or buying other companies. Yes I think we have to in part because we're talking about a slow growth economy, like we said, at two or three percent but expectations of a ten percent growth. So the managers are looking around, and they're looking to do technology, but they're also Also looking to M & A as a way to boost growth and interest rates while coming up are still low and they're still financing available for these types of deals. We'll have to see the Dell deal, right? The Dell and AMC deal which surprisingly only had a half or less of it is gonna be high [ UNKNOWN ] Dell live. It's supposed to be regular corporate debt. And if they can end up selling that debt then I think other companies are going to plunge forward and they're going to say financing is available, we need to grow, so we're going to go ahead with deals. Okay, so now we're almost out of time, but I want to ask you three very quick questions. Quick fire round. First is, there is a lot of talk about women CEOs. Do you think there will be more or less Female CEOs of Fortune 500 companies this time next year than there are now. Steve, what do you say? I hope so. Okay, great. Brian? I'm worried that we will have less. I'm worried about Marissa Mayer at Yahoo. But I hope so as well. And someone else might come onboard that we don't know yet. Okay, second, we have a presidential election this time next year. Who is going to be the President of the United States? Steve? I'm going with Buffet's pick, Hillary Clinton. Okay, great. We may not have more Fortune 500 women CEOs but we may have a woman president. There we go. You guys are in agreement for that. Finally is there anything, any last prediction on some thing we didn't talk about that you think's gonna happen this year? Steve. Corporate tax reform People want to do something about inversions and we need some tax revenue. All right. Okay, Brian, how about you? I think we may see some pain in Silicon Valley. The unicorn trend may slow down. We may see some shakeout there, not a total meltdown but kind of a reckoning. [ MUSIC ]

Here’s How Fortune 500 Companies Will Change in 2016

From M&As to CEOs, we’ve got predictions.