tv Bloomberg West Bloomberg January 4, 2014 7:00am-8:01am EST
pier three in san francisco, welcome to "bloomberg west." chang.ly this weekend, we bring you a special year and addition of the best of west. we showcase some of our top interviews with power players in technology and media from the last year. ,ncluding, the ceo of linkedin ebay, and disney. we spoke with industry innovators about the future of technology.
we begin with one of the top of 2013,nd companies twitter, and its ipo. it went public and began trading on the new york stock exchange, raising $1.8 billion. the company has had a storied history. its cofounders all came together to celebrate that chapter. who were joined by the ceo grew the company from a scrappy startup to a global communications powerhouse. i caught up with them on the floor of the exchange on the day the twitter went public. i think the thing that may be surprised me most about the ipo is the almost spectacular understanding of the service that so many investors that we met with half. i would go in to meetings to sell them and they would show me
tweets from folks like the likes .f sean white that.t's of examples like the opportunity to go talk to --ple who are your trying who you are trying to help understand your vision, it's tremendous. >> let's talk a bit about making money. you can turn a profit whenever you want. you can pull a little bit here and a little bit there. believe wethat we have a tremendous amount of investment that we want to do in service to the kinds of strategies that we already know are working well for us. the work we have been doing, where twitter has become increasingly the second screen of what people are watching right now, continuing to invest in that. making sure we have teams on the ground internationally with in theregional content
platform to make sure that we are the public, re-time conversation distributed by form. over 70% of our users are outside of the united states. we will continue to have that user base. recruits expensive to for your ipo. how did it not get more expensive? it's competitive out there. >> one of the things that i tried to talk to the company about is setting a very broad direction. a specific direction, but with some broad room in which they can innovate. it was important to me that the innovation, the specific ideas that are developed within the broad direction, are built from the ground up. product and engineering folks that we have in the company -- when you have the opportunity to, within your team, build an innovation that you can think of and take it to
your team and you have the authority and accountability to deliver that saying, that is tremendously motivating. continue to work in that kind of environment >>. isgetting one billion users better than getting to $1 billion. how to improve that from a product perspective to get to $1 billion? >> one of the fascinating things about twitter is that, once you get it, it becomes indispensable to you. i talked to people this morning that said that they get up every morning and it was the first thing they do. it is an incredible companion to the live experience. so many people already understand that. for us, it is all about bridging that gap between the massive global awareness of twitter and engagement on the platform, getting people to that moment where they realize, it is an extensible -- an inexpensive
inexcomponent -- an pensible component. >> in terms of the culture, how do you keep from affecting the culture in a bad way? >> everybody inside the company -- we have a core value -- reach everybody on the planet. with over 2.4 billion connected everybodythe world -- in the company has examples of why they know the service could be so valuable to anyone. white should be valuable to anyone in the world. i think for all of us, we have an extreme focus on bridging that gap and reaching every person on the planet. the book, hacking twitter, out this week. him.lmost fired
how fair was it? was that really how it played out? and know people say things they can come off like they are not answering the question, but i cannot mean it more sincerely. we have so much work to do. we have so much work ahead of us into filling everything we know this company can become. i have zero time to look back over something that happened three years ago and think about it. even have thoughts about whether i think it is something to pay attention to or not. i am 24 hours a day focused on the road ahead of us. >> you only have 24. >> the us the comment. omment. the c >> half the founders are still around. how confident should investors be in that? >> we are imaginative team up
with a spectrum of knowledge. i could go on and on. spending so much time on the leadership team of engineering and sales force -- i could keep going up another couple levels down in the company. we have every confidence in the team that we have established right now. we work together well. we have a great, healthy conversation. >> you are a startup guy. how long do you want to keep doing this? >> i have not given at a moments thought. i don't think about my life that way. one of the interview questions i would get in the past at any sort of company, where would you see yourself in five years
question mark i don't think of my life that way. we are focused on this right now and then occupies the entirety of my perspective about my life. >> speaking with me from the floor of the new york stock exchange. the company did facing criticism for not having a woman on its board when it went public, it has sense added the former chief executive of pearson. it was a big year for star wars fans. the next installment of the series -- we spoke with disney's what we caner about expect from the next edition in the film series. ♪
it struck a deal with netflix to release details on its big-budget, like star wars, episode seven. we spoke with him about the release date. take a listen. thehis is obviously one of most important films that we are working on right now. one of the things that was very important to us was that we give the creative team, jj abrams and his writing team, the time to design a write and produce the film so that we can optimize quality or so that we can create a great film. very important. at one point we considered the summer of 2015, but it out like with some changes we made in writing team that that was going to bid -- owing to create a bit of a rush. christmas of 2015 became the date.
time, was released that so we like that. we hope it will bring some good luck. christmas is a good time, we think, for a film like star wars >s. >> there has been so much discussion on blogs about the exciting things that you referenced. last quarter coming at disneyland, some people wondering if tomorrowland become star wars land. anything new you can share in that front? >> the only thing i can share is that there is a fair amount of development going on at disney to expand the star wars presence in california. eventually in other parks around the world. we do have star wars in the
paris,arks in france and par and tokyo. kong, we are building in iron man attraction. it is likely that star wars will twon more than just our domestic parks. >> you had earnings today. you started with this announcement, a new deal with netflix for original tv shows tied to the marvel characters. there was no financial tied tont for numbers that deal. how significant you think a deal like that could be? >> there are numbers. i promise you. deal, we really smart think, for netflix. they have done well already with originalstments in an virgin
programming. it is a big step for them. marvel certainly provides that. this gives the opportunity to new series that netflix will have exclusivity for. n 2016.g int we're not going to be specific about the price, but these will be well produced series that will take production investment to deliver the kind of quality that we promised to netflix. from an economic perspective, the money that we are being paid is something that makes sense to us, given what would be the investment in the production. >> we have been waiting for an in the contract with
dish. anything in terms of -- would you like to get that deal resolved soon? >> we have ongoing negotiations that have been quite productive. there are still terms that are to be negotiated and could take a little bit more time. thate reasonably hopeful it will be included in the cantiation and weaken and v avoid an interruption. >> we sit around and think about, what if apple comes out with a full-scale television? think single device is capable of transforming the entire media landscape, given that we have already seen a number of new devices for ?atching television was for ma k >> there are game changers in
this business. outid when apple first came with the ipad, it was a game changer. you said in the meetings and there are 20 people there and everybody has an ipad, and it only been a few years since it was launched. that says a lot. exist andot really necessary.e ambiguo that was a game changer. can there be another game changer question mark of course. is, i justm that don't know. television, i think mobile has been a game changer. its impact is just starting to be felt. it has been a game changer and has suddenly caused the entire industry to think about
providing its product in ways that go well beyond the home. why that is a game changer is that suddenly consumers and the consumers have the ability to consume more because they are not confined to one space. there is nothing that will confine them. creating content, that is a fantastic game changing development. it is not for the faint of heart. you have to be willing to adapt to change, challenge your old business models, abandon a status quo strategy. >> disney's ceo speaking with our west coast correspondent jon erlichman. what isder of paypal -- his latest venture? he talks about it next on "bloomberg west." ♪
streaming on your phone, your tablet and bloomberg.com. paypal cofounder max levchin. he is the chairman of yelp, yahoo! board member and a founder of a firm. he began a conversation talking about how he thinks global apps may change the world. >> i'm not sure why healthcare is so expensive and there are a lot of good explanations but i'm pretty sure we have to make it cheaper or we will spend all her money on that. we chose infertility because it is particularly a poorly covered
area for health insurance. if you don't live in massachusetts odds are good you are not going to get covered for any in fertility treatments. want to build an app that helps people conceive naturally, increases their odds of conceiving naturally faster, to reduce their out-of-pocket costs of conceiving. a companion product is a help fund. this subsidizes infertility treatment. >> it's $50 a month to join and if you conceive you don't get any money back herbert hoover you do you get some money
back. $50 a month is not cheap. >> is completely optional. either save up or pool money or buy more insurance. >> i do want to ask you about yahoo! it seems like every day it buys five more companies. fast have a hard and policy where the board does not speak for the company. up the they are building new yahoo!
part of that is acquiring talent, acquiring smart, young, driven people that are attracted to the fact that the company has that place and think of yahoo! as a place to have a bigger lever. >> so, critics have said, these companies that yahoo! is buying failed. why would you want talent from companies that have struggled to make it? about -- the is one thing i can tell you about yahoo! and its strategies is that they look at an incredible number of possible acquisitions and choose to acquire an extraordinarily small number. going over with a fine tooth comb and the checks being written. who lovee a guy
starting companies. how confident are you that people you are bringing on want to be as passionate about yahoo! as they were about their own companies? >> that is ultimately more on yahoo! than on those people. as long as marissa continues to deliver as she has on setting a big vision, putting out huge goals, taking big bets, really trying to reestablish yahoo! as a shining example of what a successful silicon valley company looks like, people will have no reason to leave. big want to talk to about thinking innovation. a he just trying to make point question t? shown thatelon has
it is always fuzzy. if this never happens, does it matter? >> something will happen. transportation is one of the world's biggest markets. there will be innovation there. the thing that makes -- justneurs special looking at problems that are massive. other people will say, we are not touching that. you on will have transportation projects -- elon will have jects.ortation pro ice expect -- i suspect he will do something. said that you did not end
up writing the book because your views differ on innovation. what did you disagree on? the book is still in progress. gary is finishing the book on his own at this point. i would not call the disagreement so much as a priority shift in our lives. gary's part of the book was about how this country went from the biggest innovator to being in a slump. that analysis, in my mind, still holds relatively true. in silicon valley, i felt less and less easy saying that innovation is dying. i said on record a while ago that at this point the between my projects and elon lost roger 's projects, it is not true
>> you're watching "bloomberg west" were we focus on technology. i am emily chang. we went on the road to a number of top tech companies, including ebay. i sat down with john donahoe. we spoke about everything from how the company has doubled its revenue in the last five years to the introduction of same-day delivery service, ebay now. i even ordered a pair of gloves using the service during the show. i asked about his goals for same-day delivery. >> what we have done this year is in three cities, we have partnered with retailers so that when you have a situation and you want something like today,
you want those gloves and you don't want to wait, you want them now, you go to ebay now and the courier will have them for you within an hour. >> when i downloaded the app, there were only a few reviews. why not tell us how it's going? >> we are building a new experience. we have to get the experience right. the consumers that are using it like a lot. we think it is successful and we have gone from one market to three and from three to five. we just bought a company called shuttle. they will help us expand to 25 cities across the u.s. >> amazon made headlines talking about delivery by drone. they are working on octocoptors. >> we are not looking at long-term fantasies. we are looking at things that will change the consumer experience today. >> you think it is a long-term fantasy? >> we will see.
>> google has a shopping service. how you have an edge on that? >> we have 130 million active consumers. we have paypal which makes payments easy and safe. we start with an enormous advantage of an ecosystem and a willingness to partner with retailers, not compete. there will be people trying different innovations. ours is on delivering a great experience to consumers of here and around the world. >> when we talk about googles moonshots, are they important? is it important to have a moonshot mentality? >> bold innovation is important. our focus is around commerce. the notion of making a storefront window a touchscreen, that is a bold innovation.
the notion of saying you can get it delivered to an hour, that is a bold innovation. what we were doing in mobile is a bold innovation. we will do $20 billion in mobile commerce this year. i think having those moon shots be focused, they can be very important. >> paypal is 42% of your revenue, when does it become the majority? >> it is only a couple of years out. what is great about paypal is it can serve the entire commerce market. what paypal is doing is helping making payments safe and easy. we are the clear leader in mobile payments. now we are getting pulled in the off-line world. people like to shop, no one wants to really pay. paypal makes it easy to shop and making the payments just a frictionless experience. >> you bought braintree.
what is the strategy going to be for next year? will it be more small tech acquisitions? will it be bigger bets? >> braintree is a great example of what we were talking about. it powered up uber. you are shopping and not paying. braintree powers those examples. it will continue to grow. we will bring the same principles in the off-line world. beacon, which we announced, i had my mobile phone and walked into starbucks. it recognized that i walked into starbucks. when i got to the front of the line, the barista had my name and photo on the cash register. she said, john would you like the regular? she pressed click and i got a
text on my mobile. >> what about china? alibaba just processed $5.7 billion in sales in a single day. how do you get in on that action? >> we have a strong export business in china. we enable chinese sellers to reach consumers all over the world. this year, we will do $6 billion to $7 billion in volume of chinese sellers selling on ebay and reaching consumers all over the world. we are not competing in the domestic market. we will look at that over the next many years. >> that was john donahoe as part of our special inside ebay. we also went inside linkedin. we spoke about maintaining growth and adding more users. that is ahead. ♪
>> this is bloomberg west, i am emily chang. in 2013, bloomberg west want on the road to the headquarters of linkedin for an inside special. cory johnson spoke with the man behind some of the company's most recent milestone, hosting president obama, and reaching 225 million members. corey asked jeff weiner about what challenges existed. >> the challenges are similar now. we need to be focused. it is so easy to be distracted by the opportunities you have. managing hypergrowth is like putting a rocket in space. if you are off by inches you can be off by miles in orbit.
understanding what you are about and being true to that, making sure you have a firm foundation and have the right team, you have to have the right infrastructure. that has made huge difference for us. >> the company was going through fits and starts. the growth continues. how is that managing a challenge? >> with regard to the speed, it is making sure you are prepared for the variables. it is a dynamic environment. you have to be coupled with change. we talk about focus a lot. we created an acronym. fcs. better.ng fewer things
see his communication. s is speed. those three factors have a lot to do with us being able to traverse that kind of speed. >> you do regular tom hall meetings. >> open communication is so important. it comes back to this notion of managing speed. the more optics we can provide to our employees, not only what is working but what is not working, the better we can come together to improve the things that need to be improved upon or to learn the things that are working and continue to invest in share that across all 26 cities we operated around the world. >> you're a public company. i see employees with boxes next to the desk, it means they are growing so much that they're moving from dust the desk. it is hard to maintain a culture that way. the old-timers are not the center of things. how do you maintain that? >> this building is brand-new. we do have people taking on new space.
it begins with culture and values. it is about taking time and investing in our culture and values and defining what they mean. culture is the personality of our work environment. and that element of aspiration gives you permission to dream of that about the kind of organization you want to build. values are the operating principles to make decisions. once you understand those elements, your organization, you have to hire against it and develop against it. it is all about the leadership manifested it day in and day out. it is not enough to put on the walls. >> what is this place like? what is it like to work here? >> the first word that comes to mind is transformation. it is a cultural transformation. we think about transforming the
trajectory of our employees careers. we think about transforming the company and realizing the platforming. we think about transforming the world. >> how do you organize your day? >> my day -- i try to break it down across two dimensions. one is coaching our people and making sure we can get the best of our people. we don't want them to just solve problems, they will need to cascade how to solve those problems for their teams. coaching is a big part of it. thinking proactively a nd strategically is another part. i cannot imagine growing a company. >> how do you break out time for that? >> several years ago, i felt like i was back on my heels with the schedule.
there were so many things i had to deal with. you need time to catch her breath. you need to think proactively. we do sit down and understand what is motivating people. that takes so much time. i started having buffers in my schedule. you will see in my calendar big gray spots. it is not a mistake. i am blocking out two hours a day, 30 and 60 minute blocks, so i can think and get my stuff right. >> that was jeff weiner with cory johnson. google has driverless cars. what is a big thing they are working on? that is still to come on bloomberg west. ♪
>> welcome back. i'm emily chang. this is "bloomberg west" on bloomberg television. it is always important to be thinking about the next big thing. we asked some of the top minds in technology at this year's summit in half moon bay, california. he is the google fellow known for working on a driverless car. he cofounded an education start-up. i sat down with them for an exclusive conversation. >> i want to start with the google car. we drove around a few years ago. give us an idea of how it is going. >> it's going great. four or five years with no accidents. it drives better than a human
driver. >> when are these going to be on the road? when can i buy one? >> it will be less than five years. >> let's talk about innovation. you are a guy who has a wire into engineers and designers and aspiring entrepreneurs. you are a big thinker. how did you think the innovation is that we are seeing in the ecosystem? are you disappointed in it? is it to social and mobile? are entrepreneurs thinking big enough? >> i am proud to be an american at this point. not everything satisfies me. there is a lot of great stuff going on. i like to bring innovation for incremental work to world changing ideas.
i talked to ed lu, he wants to defend the world from an asteroid attack. changing the medical field and medical science, changing transportation, these are big things and i am proud we can do them. >> elon musk founded tesla and paypal, he makes entrepreneurs feel like they're not thinking big enough. do you disagree with them on that? >> i think most of us are not thinking big enough. we are thinking logically. his first personal reasoning is a college education should not cost $50,000. you should monitor yourself before you need to go to a doctor. there are so many things that need to change. >> should entrepreneurs be
focused on the internet or other industries? like energy, education, space? >> yes. there are big topics that need our attention. there are big things we can solve. the really great entrepreneurs go out with something new that people think at the time is crazy. all of a sudden it becomes commonplace. it becomes possible. there is a utility for them. you need to go where someone has never gone before. >> you want to bring higher education to the masses. how is that going? remind our audience what it is you do. >> we were the first to start online classes. we had 160,000 students. at the end of that we had credits.
that is the barrier that exists. it puts you from a fringe product into the mainstream. the degree is a top-notch university. it is a computer science degree. it costs about $6,000. tuition has become so high, we leave kids with $100,000 worth of debt. kids are afraid of starting a family because of debt. >> you went to stanford. you also know the value of higher education from an established institution like stanford. how do you balance that? >> if you look at institutions like stanford, they are wonderful institutions but they
are small. if you're small you can do things. what is missing is scale. none of our students would make it to stanford. they would be left out. reaching people that would be left out of high-profile education can change the world. >> sebastian draughn at our next big thing summit. another notable highlight was seeing how tech can help the paralyzed walk again. we will see that next on "bloomberg west." ♪
>> this is "bloomberg west," i'm emily chang. another highlight from our next big thing summit was seeing how technology can make the impossible possible. xo bionics makes a robotic suit that helps paralyzed patients walk again. it has been on the market for over a year. i spoke with their ambassador. he is paralyzed himself. here he is, demonstrated how it works. >> let's see what you can do. you're all suited up. how does it work? >> are you ready?
>> yes. >> there you are. how does it feel? >> it always feels good to stand. it feels fantastic. i feel connected again, when i'm standing upright. >> how long does it take before you can take a step? >> i am ready to go. >> i want to see this in action. >> one foot in front of the other, that is amazing. when you first did this, went through your head? >> the first thing is how important it is to connect with the world at eye level. when you're in a chair, you are
looking up. it is extreme important. the other thing you notice is how comfortable and stable you feel in the device. there was a period of time when you find your balance again. you're relearning to walk. it feels good. i sense a vibration through my legs when i am walking. it helps and that helps me regain a sense of balance again. >> what is something you have not been able to do yet? >> the dream is over my left shoulder, to play golf again one day. for everyday use, just being able to walk around and go upstairs, go around my home and keep my body in shape. right now it is for rehab purposes only. that is extremely important,
just as you might go to a gym i would use this device to stay in shape. >> how long before you can play a round of golf? >> i do not think that long, at the pace of this technology. >> he was demonstrating how technology can make a man walk again. that does it for the best of "bloomberg west." you can watch "bloomberg west" monday through friday. you can always catch bloomberg television streaming on your phone, tablet, and bloomberg.com. ♪
>> once it was the little studio that could. now it's got a big reputation for pushing the technological envelope. >> pixar invented all this stuff. >> art challenges the technology and technology inspires the art. >> that combination has brought big rewards to pixar and parent company, disney. pixar's films have made nearly $8 billion worldwide, breaking box office records. >> they've had success after success after success. it's not a formula you want to tinker with. >> and that formula is simple -- make great movies. >> we are about putting stories into the culture. we're about telling stories.