H3 Ethan Klein Cheating Scandal Broke The Internet
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02:13This Ethan Klein H3 cheating scandalappears to have broken the internet today.And for those unfamiliar,Ethan Klein's a big old school YouTuber,a podcaster.Less known for years ago,videos like Vape Nage,as well as podcasts like the leftovers,
02:26frenemies, and the H3 podcasts.But now it appears like the H3,three podcast might just be over after Ethan Klein's allegedly been having an affair for over six months.And you had fans knowing that something was up yesterday when Ethan first posted that the show wasgoing to go on an indefinite hiatus. But then not long after that you had his wife,Ila explaining why, writing, I am living in a nightmare I can't wake up from. My husband has beenhaving an affair. I have been fed lie after lie after lie for months. claiming that she could sensethat something was wrong between them but saying that Ethan was dismissive when she tried to ask
02:53about it and so that just left her starting to question herself and her sanity. Then she saysEventually, he was caught in a lie and I knew I was done.But the lies continued.It was just a kiss, became it was emotional cheating.And saying, after I dragged these lies from him,he finally admitted that he'd been in an affair for over six months,the extent of which, I'm sure, I still don't know.But then adding that the betrayal she feels is measurable
03:11because the person she loved for 20 years evaporated overnight.And at least for right now, it appears that they're not togetheras she said that she's figuring out how to navigate their separation and co-parenting.And after this came out, like, it just blew up online with people taking sides immediately.And that includes his crew.with a crew from the podcast who also released his statement in support of Eli.claiming that they all agreed that they would not continue working with Ethan involved or profiting in any way,saying that they're disgusted by his actions and the hurt he caused,
03:34that they're sticking together as they figure out what comes next.But then also, because there were a number of people online going like,hey, is this a bit? Is this a drama joke?You had one of the people on the team AB writing.It makes me sad seeing how many fans wish this was all just a skit.Trust me, I wish it was too.Actually, yeah, I was one of the people that thought this was a bit or a weird, weird prank.Right, and that in part because Ila's clothing brand Teddy Fresh had just come out with this dump him sweatshirt.
03:57So my initial thinking was, oh, this is kind of in poor taste, but I guess that's how the internet works.But it does appear based off of the people that are working there that this is a real situation.And so then with this, you saw people online calling Ethan out sharing old clips of him slamming men who cheat like this moment where he was discussing the dry guy scandal.I just hate men who have kids.They fucking put their wife through childbirth.They deliver you two beautiful children.children. And then you go and cheat on them, bro.Fuck that. That is... So sad. It's so...
04:30And while there's no shortage of people finding things, clipping things, and sharing it,that one especially got a lot of attention because Ethan and I have three kids to get.And then on top of that, you and others bringing up this tattoo that Ethan got that has a photoof Eel's face and says the greatest thing a man can do for his children is to love their mother.And then in the midst of this, you also have people trying to find clips where they think thatit seems like Ethan slipping and secretly revealing an affair.Because one of the things that you've got people out there alleging is that he ended upcheating with an employee of his. But at least as I'm filming this, it doesn't appear that that's been
04:57confirmed. Now, for his part, you had Ethan addressing the controversy kind of saying,I know a lot of people are understandably looking for a comment from me, but I ask that youplease respect my family's privacy and do not contact them looking for me or asking for theircomments, saying they have nothing to do with this and share in your outrage and disappointment.Thank you. Then as far as the internet, the reactions are very much what you'd expect.People who have beef or do not like Ethan using the situation to dunk on him, a lot of his ownsupporters and audience feeling betrayed, very taken aback and not knowing how toto move forward with this. There's also a million-in-one memes out there. While those reactions and
05:27takes are going to continue and still likely evolve as people learn more, just time goes on,personally, the situation just makes me sad for the kids. Hey, whether you're a long-time fan of thereas a hater somewhere in between, you didn't know they existed. I'd love, of course, to knowyour thoughts, reactions, and maybe even predictions as things move forward. Especially becausesince this is breaking news, everything is updated in real time. And in fact, as I was filmingthis video, we got an update. With Ethan posting one final comment, I'm working with Ito urgently remove my ownership and financial stakes in any podcast, Teddy Fresh, Teddy Glow,or any joint venture that I would profit from, saying all your support will go directly to
05:58Ila and the crew. I do this in the hope that people can still support Ila and the crew without theconcern of enriching me. In closing, I know the crew will make an awesome show. They are packed to the brimwith the most talented, creative, hilarious, and all around great people. So yeah, let me knowyour thoughts and reactions in those comments, but we also need to talk about this huge Elon Musk'ssituation with SpaceX and Tesla, but first, a quick break with our sponsor. Right, so Octoberis the month. Everyone on the street looks like they got dressed for a different day.Leave sideways rain by lunch and a sidewalk that's basically a shallow lake by the time you're heading home.And that is why I'm in my Vessys, right? Today's sponsor. Right now, I'm living in their new match sneakers.
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07:04So hey, scan that QR code or head to vesey.com slash defranco to get 20% off for new and existing customers.And that's with a one-year warranty 30-day hassle-free returns.That's vessi.com slash defranco.Pick up your match sneakers.You're welcome.And then, I've been right back into the news.Unfortunately, we may soon be living in a world where something called,called Mega Musk Inc. exists.
07:23And with that, referring to Elon Musk's big dreamsof a mega merger between Tesla and SpaceX.Right, so you're looking at an estimated$5 trillion corporate giant that would bringelectric vehicle and robot development togetherwith rockets, satellite communications, and AI.It would essentially be the largest dealin corporate history between essentially a guy and himself.
07:41Or with a company potentially rivalingsome of the most highly valued businessesin the world like Nvidia, which is at $5.2 trillion,or Apple, 4.95 trillion.And also basically, if this happens,the richest man on Earth,gets even more power.And while it's not confirmed yet,
07:53both companies have apparently now formed committeesto explore the idea, right, which Musk revealedduring SpaceX's recent earnings call with investors.These special committees are, uh,consist of independent, uh, independent directors.And because I'm a conflicted party,I can't actually be in the discussions of the special committees.So it's this, it's sort of a,
08:14it's an odd kibuki dance, uh, where two,two groups of people are talking and I,can't be in the conversation. Do I think it would be a good idea? Yes. But at the end of the day,the shareholders have to be supportive of this andparticularly on the Tesla side we will need a 50% vote of all shares, not just those who vote,but of all shareholders. So to summarize, he is totally staying out of it, but he alsocompletely endorses it. Right, and this whole bubbling merger is the latest in a trend forMusk who's been combining companies left and right recently. Last year he emerged xAI and x and then earlier
08:51this year, SpaceX acquired XAI, and then over the summer, SpaceX closed its $60 billion purchaseof AI coding startup cursor. And if you've been paying attention to this space, Musk'sactually been planting this Tesla-Space-Merser seed for a long time now. And actually,just days before we mentioned that merger on the call, you had him unveiling a prototypeof Tesla's next-generation Roadster, which uses SpaceX technology to hover. Or with that event,also being livestreamed from a SpaceX test site. And so to many, that's sent a pretty clear message.And you've seen Musk already kind of running them as one company, with Tesla and SpaceX sharingexecutives and addition to sharing technology and specifically Tesla's solar panels and batteries are
09:22used in SpaceX satellites. SpaceX runs the Starlink satellite internet system that Tesla's self-drivingcars use. They're developing an advanced chip factory, terra fab together. And Brian Mulberry is chief marketstrategist for Zach's investment management, which holds shares in both companies. And so they'reinterconnected in all these different ways. And you have some people saying, yeah, it'd probably bemore efficient to just combine them. But also beyond the efficiency aspect, it's not rocket scientist,hey, huh? Yeah, I'm so clever to figure out why Musk wants this merger to go forward. Right, here'sBut quick break down to the power dynamics at play here.Musk controls SpaceX with 10 to 1 super voting shares
09:52and almost 80% voting control.He controls the board and the votes.Meanwhile, with Tesla, there's more of a check on his power right now.Right, he only owns about 19.8% of the sharesand SpaceX currently has a market value of $2 trillion,while Tesla's value is 1.5 trillion.And so there's this likely scenario where SpaceXis the acquiring company in the situation
10:09and Musk then controls the combined entity.And so as much as you might hear Musk saying,hey, this is about innovation and bringing the tech together,it also is probably a lot about control.And actually, you had analysts at William Blair speculating that this is actually little to do with improving the businesses.Writing, we fully respect the overlapping collaboration potential, but we are hard pressed to find a material opportunity that could only be achieved by an official combination.Now, with that said, as far as what could get in the way of his quest for more control, well, first of all, as Musk alluded to on the call, it might be tough to get shareholders' approval on the Tesla side.And half of them would need to approve this.
10:40And they might not be super into the idea of giving up more power to Musk.Not to mention that Tesla has bigger revenues than SpaceX, so those would be diluted in the merged version.But then also, let's say they all go on board, which I think actually probably would be the case, that would be my prediction.There is also the politics layer of this, right? The regulatory hurdles.And there, you had a former Justice Department official saying that antitrust regulators might try to stop the merger if Tesla SpaceX was considered a vertical foreclosure, right?Which is when a firm uses its position to restrict competitors operating at another level of its supply chain.And this antitrust situation, it could kind of go either way depending on political variables.Because as you know, Musk gives a whole lot of money to the Republican Party.
11:13In fact, he just gave another $76 million to the Republicans bringing his total.giving this midterm cycle to more than $442 million.And it appears he's got Trump-aligned U.S. antitrust enforcers on his side.But if the Democrats do take back control of the House in November,he may very well face congressional investigations.And actually, Senator Cory Booker is one of the Democratswho voiced concerns about this Tesla-Spacex situation.Brittany Wade in on this merger saying,
11:35if Elon Musk moves forward with the merger of Tesla and SpaceX,the deal would carry real risks that antitrust enforcers across the world would scrutinize.And saying, when one person controls the infrastructurethat governments and militaries depend on,his business decisions become national security decisions too.And so you have a lot of people saying,Musk is clearly trying to move the merger forward now,while Republicans are definitely still in control.
11:54And so if this merger happens, it could be happening imminently.And in fact, you had former Tesla board member Steve Wesleysaying that he thinks that the companies will move quicklyto announce a merger proposal before the electionsif they possibly can.But then also, it's not just US politics in the mix here.There's also China.Tesla depends on the Chinese market
12:09for both manufacturing and sales,with China accounting for 22% of their revenue last year.Meanwhile, Starlink technology is used in foreign conflictsand the company has a relationship.with the Pentagon. And you could also have international antitrust authority scrutinizing what themerger might mean for overseas auto, AI, and aerospace industries. So a lot at play, at stake,up in the air, and we're going to have to wait to see what happens. And that, my friends,you beautiful bastards, is the end of your special Extra Friday show this week. Thank you for
12:31watching, like, and subscribe. And if you want to watch more, I got you covered here. Yeah,I love yo faces and I'll see you right back here on Monday.
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