HOWARD SCHULTZ, CEO OF STARBUCKS, AND JACK DORSEY, CEO OF SQUARE AND CO-FOUNDER OF TWITTER, DISCUSS THEIR COMPANIES’ PARTNERSHIP ANNOUNCEMENT ON “CBS THIS MORNING”
SCHULTZ TELLS CO-HOSTS CHARLIE ROSE AND GAYLE KING, “THE CONSUMER IS GOING THROUGH A SEISMIC CHANGE IN WHICH CASH, OVER TIME, IS GOING TO BE OBSOLETE”
DORSEY ON THE POSSIBILITY OF A TWITTER MERGER: “TWITTER WILL STAY INDEPENDENT”
Howard Schultz, CEO of Starbucks, and Jack Dorsey, CEO of Square and co-founder of Twitter, discussed their companies’ partnership announcement with co-hosts Charlie Rose and Gayle King, live today, August 8, 2012, on CBS THIS MORNING on the CBS Television Network (7:00 AM – 9:00 AM).
Below are excerpts from the interview:
ROSE: You’ve made a deal with him so that Square's device can be used to buy coffee in Starbucks stores. You’ve invested $25 million in his company, and you're going to join the board. What else is there to know?
DORSEY: I'll start. We started a partnership so that Square could carry all of Starbucks in-store payments including their mobile app payments and “Pay With Square” can be used, which is our application, in every Starbucks store in the United States, which is an amazing start and really shows a commitment to the future of payments which Starbucks has led to many degrees.
ROSE: Why did you do this?
SCHULTZ: Over the last year and a half, we've already processed 60 million mobile transactions at Starbucks. The consumer is going through a seismic change in which cash, over time, is going to be obsolete. As a result of this partnership, we enhance the customer experience and the other issue, I think, is we have an opportunity through the tools and the resources that Jack has created with Square to open this up to small businesses across the country and create jobs.
ROSE: So this is an acceleration of the cashless society, isn't it?
ROSE: And you have competition, but you're out front in this thing. Tell us exactly how it works. You have a little device. You walk into a Starbucks or other stores now—
DORSEY: In this particular case, what you can do is you can take your phone with you and there's an application called “Pay With Square.” You can open it up and you can actually show the counter, the bar code scanner at the counter, that application and it charges your credit card on file. You can also, of course, use your credit card at any point or use the Starbucks mobile application to pay. So, a very similar experience to what Starbucks customers are used to right now, but we're adding the ability to accept “Pay With Square.”
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ROSE: This is a guy whose collected attention in Silicon Valley and you obviously have a lot of respect for him, therefore you're making the investment and joining the board. There's also talk about talks between Twitter, with your chairman, and Apple. Can you help us understand what's going on?
DORSEY: No. I mean, there are always rumors of conversations that have gone on in Silicon Valley. A lot of them are purely rumors. It's easy to get distracted by the rumors, but we want to focus on building really great products. That's what we're doing.
ROSE: Twitter will stay independent?
DORSEY: Twitter will stay independent.
ROSE: Not looking for a merger with anybody?
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ROSE: We also heard, as Gayle said, the police having to subpoena a Twitter account. Give us a sense of how Twitter faces an issue like this?
DORSEY: Well, I don't know this specific case. I haven't been briefed on it. But we always comply with local laws and we also have to balance that with defending our users' voice, which we believe strongly.
ROSE: How do you make the balance?
DORSEY: It's really dependent on the court case and the local municipality and what they're doing. It's always a fine balance.
KING: When we talk about Twitter, Jack, as you know, it's in the news every day. Sometimes not so good. People have lost their jobs because of what they wrote on Twitter, athletes were sent home because of what they wrote on Twitter. When you first started the company, what were you hoping it would accomplish? How Twitter would be used?
DORSEY: It was a very simple idea, which was that anyone could share what was happening around them and anyone else in the world could see them. It has remained that simple of an idea, it has remained that powerful of an idea. Anyone in the middle of, for instance, Baghdad, Iraq, can have a global conversation just like anyone in the United States. We’ve definitely achieved that. You see life in front of you. You see the pulse of the planet in that.
KING: In real-time. When you see how it's used in other ways, is it frustrating or upsetting to you? What do you make of that?
DORSEY: No. This is how the world wants to use it. It speaks to the power of it as a utility. Just like any other utility, you plug in an electric guitar to an outlet, you plug in a microwave and you can use it in very, very different ways.
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KING: What was the reaction you got to your open letter where you said, “Listen, I'm sick of all the partisanship, we need to do something ourselves about job creation.”
SCHULTZ: We've raised millions of dollars. We've put that money to work. We've been able to create thousands of jobs and I think people are kind of clinging on to the fact that Washington is not doing much and companies have a bigger responsibility today than they have before because, I think the rules of engagement have changed where corporate CEOs and businesses have to step up and do more for the communities we serve. I think Starbucks, as well as other companies, have gotten a good feeling from our customers as a result of that.
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Chris Licht is Vice President of Programming, CBS News, and Executive Producer of CBS THIS MORNING.
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