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tv   Bloomberg West  Bloomberg  October 7, 2015 8:30pm-9:01pm EDT

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we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. emilyit is day two at the vanity fair new establishment summit, covering intersection of hollywood, wall street, and silicon valley. i am ely chang and this is "bloombergest." coming up, one of theworld's richest investors is upng his investment in itter. i will ask the twitter cofound for s take on jack dorsey overseeing two companies. speaking of twitter, former ceo di costolo has a new job. it involves going back to his pts as a standu
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comedian. iill be sitting down with anotheround of heavyweights, including tim mstrong, brian grazer, and the chief eative ofcer for jawbone.stment compane boosted their combined stake in twitter more than 5%. this is according to a disclosure made in the same week that jack dorsey was made permanent ceo. the purchase gives the company the second-biggest stake in twitter, worth about a billion dollars. it puts him ahead of ceo dorsey, who owns about 3%. trail cofounder evan williams. brad stone and i caught up with ev williams earlier today in his first interview. since naming jack dorsey
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permanent ceo. he was on the executive search committee. we started by asking him about their decision. ev: everyone knew jack was capable and he had a unique perspective on the company. there is a question of could he do both the twitter job and the square job. so we wanted to see what our options are. that was our job as a board to look for and why. eventually, we thought the combination of what jack brings to the table and what he had already done in the last three or four months convinced us he was the best person for the job. emily: how do you really feel about the fact that he is doing two jobs? elon musk was on stage saying he does not recommend it. ev: i do not think jack would recommend either. he has his commitments at square. it is not ideal. no one would say this is ideal. we don't want anyone putting their time.
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it did not change the fact that we thought despite that, he was the best choice. brad: your work is not done. what are you looking for in the new twitter board and chairman? ev: the beginnings of figuring that out really, so i cannot speak to that. we were fully focused on the ceo search for a while. and it wasn't untold deciding for sure the jack was the ceo what we knew needed in the board. brad: a lot of attention has been paid to the ev-jack relationship. how is it doing? ev: it is better than it has been in years. we have come together through this process. i have joked that twitter is like our mutual child. we have come together and we hold its future as our highest priority. and we see eye to eye when it comes to the future of twitter.
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emily: how much will you be working with him on the product going forward? ev: i am happy to be helpful where i can. and, you know, i am fully focused on medium. i am not as good at splitting my time as jack is. i will help where i can. emily: let us talk about medium. you have a big event in san francisco tonight. you are going to unveil something. give us a clue. ev: we will unveil a few things. some of it is product. we have wrapped up a bunch of new features. particularly in our apps. new versions and some partnerships we are announcing at the same time. a little bit about our future plans, how to make publishing sustainable on the platform. and on the internet. we are excited. it is a wide collection of stop. uff. brad you guys raised $57 million : in capital.
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what does i give you? ev: it gives us momentum, more publishing every day. what that lets us do is to extend our runway for a good long while while we build the business. that is the focus. emily: google announcing accelerated mobile webpages today. they are working with twitter on this. what is your take on this? do you see medium as a part? ev: it is a user focus -- user-experience focus procedure. everyone is saying the same thing. speed and convenience always win in the end. that is why we built medium. if we can build this seamless reading and writing experience. it all integrates nicely, and people will use that. that is where they will go versus 1000 from websites that load slowly. brad: somebody called medium the
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prnewswire for a new generation. quite unflattering lee. take on that? ev: it is a shortsighted take on it. medium is a publishing platform. all those people are publishers on the web now, millions and millions of websites are basically promotional websites. they will publish on platforms -- it is a small percentage of overall media publishing. twitter does promotions, youtube does it. all major platforms have a marketing promotion. emily: what does success for twitter and jack look like in five years? in 30 seconds. ev: twitter is just getting started in terms of its potential. and i think jack can unlock that. and really the team is going to unlock that and it will be much bigger than it is now. emily: that was ev williams. and speaking of twitter, dick
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costolo is writing for "silicon valley." you may recall last season ended with the ceo getting ousted. very similar to the real life drama at his real-life company. we sat down with the show's executive producers and ask them about the news. >> i think we are allowed to say. yeah he sits in the writer's , room with us a couple of days a week. it is great. he has a comedy background. he did improv comedy in chicago back in the day. emily: what is the most surprising thing he has brought to the table? >> i did not remember ever being shocked by anything he has said. most of the time, he says that happens all the time. that is sort of shocking. emily: we ran into dick costolo
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here a couple of hours ago. and he said when that happened, his phone started ringing off the hook. it was hbo saying we might have let a cat out of the bag. he is having fun and he feels free. brad: he looks relieved of a burden, and frankly, so does ev williams. they pursued the search with such scrutiny. jack is back permanently and there is a grace period. twitter has time to reboot a little bit. i have a big challenge ahead of them, but the scrutiny will let off a bit. emily: dick is taking some time off, we will see where he ends up next. it is not the end for him. brad: and we will all be valley.""silicon emily coming up, more of our big : interviews from the vanity fair new establishment summit. as we head to break, i want to leave you with one stock on the move today and that is gopro.
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shares fell to their lowest price ever after morgan stanley slashed its target price to $35. from $62. citing stanley disappointing sales of the new camera. ♪
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♪ emily: welcome back to "bloomberg west." aol chairman tim armstrong has been on the frontlines lines of online media and advertising for a long time. earlier today brad and i got to , chat with them and we covered a range of topics. starting with verizon's purchase of aol. so great to have you here.
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i enjoyed your panel on stage. it has been six months since verizon announced buying aol. how is it going? tim: we got to spend almost a year with verizon before we did the deal. --the team at verizon everybody knew what they were getting into. emily: what changed for you? tim: for me personally, 40% of my time is back into product. i do not have the luxury of doing that. we do a daily 8:00 call now. we are moving things in real time. it was harder to do with a public company. verizon is a great mix because we are adding a lot of growth opportunity. they have a massive opportunity to build businesses on top of their current network. i think it is a mix of strategy, culture, and people, and it is going really well. i am happy with it. brad: the online advertising business has been imperiled recently. one, ad blockers.
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which allows internet users to bypass sites like the huffington post. "bloomberg businessweek" had a story about how a lot of the clicks advertisers see are fakes. so how imperiled is the online environment? and what can aol do? tim: i think there is a big problem here. the fact that consumers are blocking as is a signal to us as a publisher that you have to improve your advertising. that is what we do on a daily calls. how do we improve that experience? by the way everybody in the , ecosystem is going to do that. the internet is the most transparent media type in general. i think anything that has to do with fraudulent things, you have massive benefits in the future against that. everyone will be connecting through a machine in their phone, and that will help figure out who people are. meeting with people
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to lead the charge on fraud. i feel good about it from our standpoint. whole industry has to address it. what those two problems are the industry's biggest opportunities. everybody is using mobile media and trying to put ad dollars there. it is a high-class problem. we have to have high-class solutions. emily: a lot of talk about a tech bubble. what about media specifically? the same valuation for buzz feed. you bought the huffington post a few years ago. are we in a media bubble? tim: i think the valuations are not high enough. and the reason is, because when you look at the consumer migration of products and services, and you look at the valuations, when we bought the huffington post, our stock dropped by 20%. investors were saying, stay out of content. they were nervous about it. but the reality is there are
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probably only a handful of companies who invested while the entire economy was really poor. people got out of content and we got into content. what you are now is you have all of these traditional companies try to make the transition to digital. there are only a handful of people at scale that invested. there is no supply of companies to buy at the scale of huffington post or buzzfeed or business insider. or vice. when we look back historically 10 years from now, people are going to say, the biggest missed opportunity was everybody ran away from content and five or six companies went into content. recode also got acquired. there is an amazing amount of benefit to having invested during that time. brad: really quickly are we , going to see amazon and apple with these over-the-top tv bubbles? the dismantling of the traditional tv model? tim: the areas that are
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declining tend to decline slower than people expect. i do think because of two things -- the networks have gotten faster and more creative people are investing in high quality content. that drive the content will be better for consumers. you may see an acceleration of the tv issues. one statistic i'll throw out, some of the tv businesses are down. when you look at those numbers, you say something is happening here, looks like it is systemic. emily: what role is aol going to play? tim: we are doing a modernization for go90. and over time, we are getting into deeper partnerships. as one company we are helping , verizon managed the advertising side into managed product. and content over time. brian have done a
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really good job of lining up tiered content. plan to integrate more. but that is what we are doing now. emily: aol's tim armstrong earlier today. i also got a chance to sit down with oscar-winning superproducer brian grazer. he is the man behind such megahits as "apollo 13," "a beautiful mind," "24," "friday night lights," "empire." he broke the news to me that his next project is a movie starring eddie murphy for netflix. i asked him why he chose netflix instead of a traditional studio. brian: i like netflix a lot. we are doing "arrested development" on netflix. we are going to do another season. i like them a lot. i think the way they govern their creativity is exceptional. if they like the idea and the foundational element, you are off to do what you believe in and they trust it.
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and it has been working for them. meantime, one of their competitors is thinking about breaking out. according to people familiar with the matter, amazon is looking into launching a live online tv service and has spoken to cbs and nbc. about carrying their channels. it would put the online retailer into direct competition with companies like comcast and at&t. and of course brad, you wrote , the book on amazon. what do you make of it? amazon is trying to do everything in terms of disrupting entertainment. brad: the dismantling of the cable bundle is the most slow-moving but so obvious disruption. people pay an average of $100 for a cable bill. most say they don't get that value. emily: i watch about five channels. and i have to have a cable subscription. brad: right. apple and amazon are trying to invent the future they want to see. get some of that $100. you need live tv to do it. it will be interesting because
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, you know comcast owns nbc. ,they will not want to part with that. emily: apple has not been able to do this and they have been trying for years. brad: it is an economic question. it is all about the deal. it is possible it will be a process. emily: vice is trying to buy a cable network by the end of the year. going in the opposite direction. brad: vice very popular with live video. there is value to advertisers. that is why shane smith is negotiating to buy a tv network. they have seen the travails of al jazeera in the u.s. buying current tv. you know it is a challenge to , navigate that. and get good placement on the cable and satellite. emily: i did speak with shane smith a few minutes ago and he says they are doing exciting things in tv. we will be watching to see how things are. coming up how is silicon valley , rethinking the role of design?
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we will talk to the chief creative officer of jawbone, here at the vanity fair summit next. , ♪
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emily: welcome back to "bloomberg west. i am emily chang. we are live at the vanity fair new establishment summit in san francisco. yesterday, i spoke with graydon carter and asked him about whether or not we are in a bubble. graydon: i think there is a bubble. i think there is always a bubble. in the age of celebrity, nothing stays the same forever. emily: to bubble or not to bubble, that is the question.
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turning now to design, another osborne or here in silicon -- another entrepreneur here in silicon valley is changing the way we interact with technology. so many collaborations. you are here with a new set of watches. not smart watches, traditional watches. that you design. tell us about it. >> i would not call them traditional watches, i would call them beautiful watches. movado -- one of the biggest classics of design. the museum watch they are known for. but this is an update, a new design and approach. it is very exciting to move into such good company.
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brad: we are looking at these watches and seeing significance in the fact that they are not connected. you cannot check your e-mail. do you still see a lot of virtue inhaving devices that are beautiful but do not do everything? yves: look at the way we dress, look at the accessories you wear. you choose them because they are beautiful and they reflect who you are. you love them because they mean something to you. they do not need to be all the same for us here. we all prefer different things. i think that kind of diversity in clothing and jewelry and accessories will continue, whether they are connected or not. emily: this is interesting because i use my iphone. my apple watch can do a million things. i do not use any of that other stuff. what do we really need on those connected devices? like a jawbone.
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yves: people love to own their own data and to know what is going on. it is very personal. when you get a job own tracking device -- jawbone tracking device, it is how you sleep, your heart rate, these are important -- the kind of knowledge you are really looking for as an individual. it changes the way i eat, what i do throughout the day, changes what i do before i go to bed. for example we all try to , optimize ourselves and have a better life. those devices help you do that. brad: there have been some quality problems associated with previous jawbone products. what did you learn about integrating beautiful designs with practical, efficient, customer oriented software? yves: you have to have a beautiful product and it needs to be well-crafted and it needs
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to be beautiful and to survive the everyday life that we have. so what i have learned is, the , products people love our products that last. and that is what we do. that is what we work on every day. emily: chief creative officer of jawbone, thank you for joining us today. great to have you. that does it for "bloomberg west." hear from the vanity fair summit. brad, thank you so much for joining us. tomorrow, former facebook bp now social capital founder, joins us tomorrow. we will be talking about diversity. ♪
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announcer: from our studios in new york city, this is charlie rose. charlie: the largest regional trade accord was reached on monday. the transpacific partnership links the u.s. to japan and to 10 other nations in the pacific rim. the agreement covers 40% of the global economy, 800 million consumers. it will address tariffs, labor practices, and intellectual property. the deal must still be ratified by all countries involved. the us congress could vote on it as early as next year. joining me now is jiayang fan. she writes on chinese politics and culture for the "new yorker." patrick foulis is the new york bureau chief for "the economist."

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