Skip to main content

tv   Bloomberg West  Bloomberg  November 6, 2015 6:00pm-7:01pm EST

6:00 pm
i am emily chang and this is "bloomberg west." alibaba breaks out his checkbook for investments. i will be there for it speaking in beijing to jack ma. plus, media stocks tank on concerns about cord cutting. is a rebound ratings system the answer or the final nail in the coffin? more questions. investors now asking if one of the company's directors is qualified for the job. first, let's check in on our "bloomberg first word" news. the biggest monthly searches boosting optimism on the economy even as the federal reserve prepares to raise interest rates. banks rallied as investors bet rising rates will boost profits. but utilities in the s&p fell the most since august. the dividend payout could become
6:01 pm
less attractive compared to treasury yields. security announced a series of new security efforts aimed at international airports in the wake of the crash of the russian jetliner over egypt's sinai peninsula. jeh johnson says the new safety onues -- efforts will focus commercial flights from overseas. u.s. and british officials inc. the plane have been blown up by a bomb and britain has grounded all british flights to and from the area. today, russia said it will suspend all flights to egypt until security is improved at its airports. hundreds of british tourists are still waiting for a flight home from the egyptian resort. they have been promised flights today, but only a few of the plant flights were able to take off. passengers were only allowed to carry hand luggage onboard as a result of tighter security after the crash. president obama said he is rejecting transcanada's keystone
6:02 pm
xl pipeline because he does not believe it serves national interests. the president made the announcement at the white house with secretary of state john kerry and vice president joe biden. it ends seven years to the debate. prices,apse of oil weakening the argument for the $8 billion project. squareour lead, that is on the setting the price for its ipo between $11 and $13. the price could change. onlinebal -- the payments companies seeking a payment of four point $2 billion, notably lower than the $16 it sought in its last five funding round. the changes feeling concerns there is a wide golf between how private investors and other market value tech companies. is this a foreshadowing of a unicorn correction? analystme, the payments
6:03 pm
, our ipo reporter. we have been digging through the moment -- numbers, and my cohost. great to have you on the show. what do you think about the price of the square ipo? what we are clearly overshooting of the late stage from a venture standpoint. valuations are not in line with what we are seeing in public markets. we have seen that with more than a handful of ipo's this year. with scare -- square, you have a payment company that has become a technology company if it is going to grow into the valuations it wants. data from seizing the the point of sale and processing to produce products that are more financial technology. give us the details on what we learned today in terms of the price and what investors are saying so far. >> they will be marketing this ipo and $11 to $13 a share.
6:04 pm
that is the price square and its underwriters said we want to sell these 27 million shares to public investors. it is a big haircut. some folks are saying this is a unicorn reality check. of the $16 valuation it was seeking last year in its last around. maybe a little bit of overshooting in the late stage rounds. remember, you don't have to go through the roadshow process over the next week or so. according to bloomberg data, they are said to price on the night of the 18th. that is when they will set the starting price for trading. this is potentially concerning if some of their advisors are saying you are not going to be able to be valued at what these folks thought you were worth a year ago in the private market. emily: does it mean it is not a good business? talk about the landscape and how square fits in.
6:05 pm
we were talking to an analyst yesterday who said they have a brilliantly simple business model. >> that is right. they do have a simple business model. they have focused on the small merchant, the mom-and-pop local merchants around america. they have great potential in that space. they had created a lot of destruction in the payments industry making it simpler to sign up for a merchant account. they have been a leader in the cloud-based point-of-sale system, tablet-based point-of-sale system. they do face a lot of headwinds from competitors in the marketplace. how this potential unicorn reality check we are starting to see, how is that impacting decisions you are making, how you are dealing with your portfolio companies and evaluations you are seeing? >> there is little we can do at the late stage to impact valuations. we are seeing hedge funds and
6:06 pm
mutuals come in and price these companies up to unprecedented levels. they are correcting in the public markets. thel that money, until inflow slows down, we are still going to see the heightened prices. emily: right. we have talked about square and the executives that will be supporting jack dorsey as he heads out on the road. what our investors saying about their confidence in him and the team given that he has another very important job? friend, talking to our of payment analyst, who said in private markets for the start of world, jack dorsey and all of his experience, he is seen as a premium. that when we get to public investors, when you are asking what they think of him having to split rolls between twitter, which is having problems of its own, and having to go through this roadshow, that is seen as a discount. he will have to lean heavily on
6:07 pm
this bench of his which may not be as well-known condensers -- well-known to investors. community will be asking who will be running the company making the decisions, and how you grow your revenue base outside of just the payment processor. you will be looking at sarah folks the c.f.o., these they are now relying on if dorsey is not able to commit 100% of his time to square. emily: you are not a. -- you are nodding. >> it is not like jack dorsey is moonlighting as a babysitter. he is moonlighting as c.e.o. of twitter. it is hard to see a board feeling comfortable with that or the public market investor feeling comfortable with that long-term, particularly if both companies need to innovate heavily over the next several quarters. emily: you know the payments
6:08 pm
landscape. talk about what they are up against. where they have advantages and stiff competition? >> i break it into two categories. you have the pier play, legacy payments players, first data, heartland. iv has focused on enabling an ecosystem. there are hundreds of point-of-sale developers in the marketplace today competing with companies like square. heartland and first data have both purchased point-of-sale companies and moved into the space while they are still trying to enable this ecosystem of other point-of-sale developers. square is kind of a closed loop. you have the payment processing function as well is the point of sale all in one. merchants don't necessarily have payment of -- choice of payment processor. it does make the processing more
6:09 pm
simple for the merchant. it does not leave the merchant with a lot of choices. emily: the roadshow starts next week. what do we know about the schedule? >> we expect them to be in san francisco, it up all of the investors there. they seem to be making -- planning on making a stop in new york. when i know exactly where, i'm sure you will be the first to know. emily: thank you for that. maha you are with me throughout the show. the ipo is not the only issue jack dorsey has to deal with. at twitter, the other company runs, diversity or lack has become a topic of conversation. a blog post this week criticized the company for failing to create a diverse workplace. late yesterday, twitter's top engineer released a blog post apologizing and saying things
6:10 pm
need to change at twitter. we have talked a lot about gender diversity. now is moving into ethnic diversity. jesse jackson singling out twitter. what is your take on the new development? >> the irony is twitter has been at the forefront of the race discussion. it has been the basis and the forum for so much discussion around the black lives matter campaign as well as the anger around ferguson. you have a company much like many private and public companies in silicon valley clearly with the left dealing with the diversity issue and not in the most progressive way. emily: whose problem is it? maha: it is a problem of inflow and the h.r. developments. we need to see more diversity coming out of the stem programs in the united states, across the united states. we also need to have a more realistic financial system and
6:11 pm
real estate system in san francisco where people can afford to be here. emily: i have seen twitter making numerous efforts. they were at the forefront of girls who code. they have made women encoding a headline at their own developers conference. it seems like they are trying. but obviously there is work to be done. globalup, nielsen's president gives us an update on what could be an industry game changer. ♪
6:12 pm
6:13 pm
6:14 pm
emily: media stocks took a hit after time warner cable lowered its outlook and news corp. was dragged down by a decline in ad driven sparking renewed concerns about the future pay-tv in the age of netflix. advertisers a networks have clamored for new ways to measure viewership. nielsen has promised it can deliver. devices and set top tablets, even youtube. the nielsen global president steve hasker joins us from new york with a status update on the project. is this going to be ready by the end of the year? >> it is, thanks for having me. we have been working on this for a couple of years. we start of the launch of a product that measures, intensively the impressions to advertising. we have been putting pieces in place the last couple of years. the final piece is what we call
6:15 pm
digital content rating which we launched the week before last and a rolling out through the fourth quarter. we are giving our participating clients the chance to look at data and understand what the audience is our to their programs and the advertising industry comes across all platforms. in the first quarter of next year, we will start reduce the syndicated metrics so competitive networks can see numbers across the industry. at that point, you will have in place what we call the ability for buyers and sellers to see all impressions on all platforms. through how you are going to do this and how accurate it is going to be given that i might watch an entire episode of the voice or a clip on youtube. how can you measure all of the viewership in all of these different forms? >> it is very accurate. it does not matter whether you have a large audience or a very small niche audience to a
6:16 pm
digital content. what we do is we take our cross-platform panel, the nielsen homes where we measure multiple devices in the homes, including the tv. that panel is representative of the u.s. population. we use that to calibrate and correct multiple big datasets. registration datasets, viewership datasets. we put these together and produce daily ratings. we are finding they are very accurate. is maha.ve, this i recently read 41% of american households subscribe to some video streaming service, whether netflix or amazon, etc. how do you deal with that inevitable trend? is this the solution you are rolling out in december or is this something you will deal with at a later date? >> we are already dealing with this in a sense. here is what we have done. we have had varying successes of
6:17 pm
getting the subscription on-demand players themselves to willcipate and incorporate recall our watermarks into the content they carry and the viewers see. owners to theghts people who produce the programming and sell it to players like netflix, we have had the rights owners give us the audio signature that allows us to measure it. we are already reporting back to those owners the viewership on platforms like netflix. here is the breakthrough for them. they are starting to understand how those audiences compare to the audiences through the traditional ad-supported cable echo system --ecosystem. emily: this contrast -- comcast merger, how does it impact you? how big of a threat is it to your business? >> we don't see it as a threat. on one hand, we welcome the competition.
6:18 pm
on the other hand, we are focused on executing. if we can roll out the total audience program i described a minute ago, we are going to meet the needs of our clients. that is the single most important thing for us. emily: how accurate do you think measurements are? i wonder if once you roll this out if we will see a massive reordering of the hierarchy of what is popular and what we thought was popular all along. do you think things are generally going to fall in line with the we already know? >> the impact will vary. today,ff that is popular whether the national football the greates or scripted programming everybody loves, i think that becomes more popular. the networks good at producing that and choosing those shows and putting them in front of viewers, they will do even better in an environment where everything is counted. the networks struggling to find the right secret sauce in terms of programming, this is not
6:19 pm
going to help them much. we will see that kind of distribution play out. that meansink "bloomberg west" will come out on top. steve hasker, nielsen global president, thanks for giving us an update. looking forward to seeing that before the end of the year. for an update on the story would have been following for a while now, the blood testing startup is reportedly looking for a new lab director to oversee one of its key facilities. "the wall street journal" says there questions about the qualifications of the dr. that runs the california lab. according to the journal, he is a dermatologist without a degree or certification in pathology or last lines. the lab houses blood analyzers that it was using for some of its tests. we reached out for comment, no response so far. come, toyota's billion-dollar bet on artificial intelligence. the line between the auto industry in silicon valley gets
6:20 pm
more blurry. ♪
6:21 pm
6:22 pm
now it is time for the "bloomberg west" week in review where we look back at the biggest tech stories of the week and what is coming. sarah frier is with us who covers facebook and twitter. and our guest cohost for the hour. a busy week covering facebook, hitting an all-time high after a solid quarter. it is now more valuable than g.e. obviously, you and i have both been covering the company for a long time. what is your take? >> i think it would have been surprising if they did not beat expectations. i think we've gotten to the point where facebook just keeps
6:23 pm
doing more than what is expected every quarter. emily: 500 million people are watching videos on facebook every day. [laughter] it is a juggernaut. the rich keep getting richer. they have innovated through acquisitions as well as internal projects. it was brilliant for them to buy instagram. messenger is not making money yet. analysts are looking at that and --ing facebook has not done they have done a fraction of what they can do in the future. they are all raising their price points. what does facebook have to lose? are there any warning signs? there have been concerns about growth. .he numbers are so big how do they manage to accelerate user growth? what six months ago, we were
6:24 pm
talking about the aging of the facebook top nation -- population. everybody under 25 was moving to snapchat or instagram. they bought instagram more than six months ago. those fears seem to have been quelled through the performance. eens, nobodyask t uses facebook anymore. when you ask what you do at the bus stop trying to kill time, they say i go on facebook. they don't think of it as a cool thing they are doing. it is part of their life. emily: i don't watch "the kardashians." is listingberg today his philanthropic efforts. we saw a couple of weeks ago more news about a school he and priscilla are starting. explainod to see him the strategy behind all of these things. >> a lot of people questioned zuckerberg's philanthropy smarts
6:25 pm
after the whole gift of $100 million to the schools which many considered to be a failure because it did not reform a lot of the teacher tenure issues it wanted to reform. there was a lot spent on consultants. it looks like he has figured out how to do these projects. he wants to do them in his backyard. the primary school in east palo alto-menlo park area will help disadvantaged youth and be more of a personalized learning setting. to unlock human potential and promote equality through his education foundation. maha: communicating it in an upfront and honest way. he has never been a c.e.o. that shies away from getting his point across and using facebook as the medium to do so. that is engendering so many fans and generating so much trust and appreciation for him as a c.e.o. and a grown-up c.e.o.
6:26 pm
no longer the 21-year-old. emily: they are focusing on schools, hospitals, science, innovation. at in the post today, he said priscilla and i are having a child. it has encouraged us to think harder about what we want to do in this world and how we want to use our wealth and influence. >> he was very personal about it. he had a more detailed post about newark and the lessons he learned and the stats. emily: and numbers about how is working. sarah, thank you for sharing that with us. we will be back with more of "bloomberg west" after this quick break. ♪
6:27 pm
6:28 pm
6:29 pm
i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy. what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. i am emily chang and this is "bloomberg west." time for our global tech business flash. berkshire hathaway is reporting
6:30 pm
third-quarter net income that doubled from last year to a record $9.4 billion. the company also reporting unrealized losses on its ibm stake the client to $2 billion as of september 30 or about 15% of the cost of accumulating the holding. berkshire says ibm continues to be profitable and generate significant cash flow and says it has no intention of selling. bloomberg news is reporting hello fresh, the german food delivery startup, is postponing is frankfurt ipo due to market volatility. hello fresh fetched a valuation of $2.8 billion in september. the company delivers weekly meal kits with recipes and ingredients to customers in several countries including the netherlands, the u.k., and the u.s. videogame giant activision blizzard says it is creating a studio to turn its popular videogame franchises into movies and tv shows. the first project will be an
6:31 pm
animated tv series based on the sky lenders game and toys. the brand has generated more than $3 billion in sales for activision. a startup backed like chinese a startupe has -- backed up by chinese billionaire has been dreams of taking on tesla in a billion-dollar investment in a u.s. factory to build electric cars. it plans to debut the first car in two years and quickly followed with other models. gerdes says it aims to make subscriptionsng on entertainment in the car. it is packed with managers who left tesla in recent years. now to blackberry, which unveiled its new smartphone today. the phone is the first blackberry product run on the android mobile operating system. the big question is whether it can turn around blackberry's stumbling hardware business. the c.e.o. joined "bloomberg " earlier today to talk
6:32 pm
about the importance of the new device. >> the device has always been an important part of our business. we are generating a lot of business in the software world with connected cars and everything connected, all the buzzwords. we are doing a lot of different things. it is still very important. >> nothing creates as most buzz is a new consumer device. is that a good thing or a bad thing? >> it is a good thing. ago you likee time people to talk about you, good or bad. the worst thing is nobody mentions you. [laughter] it is a good thing. we love the attention. love the attention. it is a challenge. pimm: challenging one? john: we lost our number one position a few years ago. a number of things have happened. we lost that position. we are trying to come back.
6:33 pm
everybody is a critic. some of them remember the past and comparison from that. some of them think about the current competition, the other fruit company. i don't want to mention my competitors on the air. >> many people feel like apple is unstoppable. the one place they couldn't get into was business, because we all used blackberry for work. then you have ceos walk into their i.t. department, i have this tablet, make it work. now the apple ecosystem has made its way into corporate america. what are you doing about that? that is your dojo. john: first of all, we didn't like that happened. [laughter] julie: they didn't like it. john: since that happened, the first thing that we did was we created a lot of software that manages everything. it is not just managing blackberry. if you talk about any seachange, we made sure all the new -- know
6:34 pm
how we have, which is huge, could be run on any devices. forth., that company, so that's important. but then there is also a category of users that looks for high-end, looks for the keyboard for productivity, looks for a battery that you never charge during the day. i don't need a wireless charger. go to bed, plug it in. you look for all these features and security and privacy. that's what this is for. we hope that market grows bigger and bigger. apparently, i'm not going to name names on the air, there were a lot of celebrities now wanting this device. julie: you've got to ask him about alicia keys. >> he had nothing to do with alicia keys, though. julie: there's a big risk in tying yourself to celebrities that backup product.
6:35 pm
-- that back a product. and then they are holding an iphone. this is a dangerous place to play. >> absolutely. john: i'm not asking celebrities to publicly endorse us. i'm amazed and happy that they are using it now. that's part of why i'm mentioning it. but i will not have a celebrity spokesperson for it. erik: how much marketing muscle in dollar terms are you going to put behind this phone? john: quite a bit. erik: what is quite a bit for blackberry? i don't know. john: we are still a $3 billion company. we have over $3 billion in cash right now. we are pouring a lot of it into new development. but i agree with stephanie. this is not about getting another well-known figure who uses, then come -- stpehani -- stephanie: you're looking -- not looking for a
6:36 pm
kanye selfie. john: a selfie i could handle. >> why now? maybe it's a great idea. there are people, users, customers, shareholders, who want to know why you didn't do this before. john: well, i just got here, literally. a couple years ago. >> almost to the day, in fact. john: yesterday was my two-year anniversary. it takes time to develop. >> could you have done it before? john: from a technological point of view, absolutely. we could have done it before that. putting a product like this together, marrying the best of two worlds, with everything we know about security, all of our backend systems, we have a pretty interesting dashboard to ou, foru who is pinging y example. it takes time to do that.
6:37 pm
stephanie: you say it takes time. how much time do you need? i told everybody two years ago that it would take me three years. stephanie: one more year. john: i'm two years into this. >> you mentioned you have a big business that is apart from cell phones. is it the idea that, if i go and buy one of these, it is more likely i will use your other products? or how is that connection made? john: back to the earlier conversation about enterprise and government and using our phones, they use our phones more securely and because of the software, the servers. the department of defense uses our servers to manage all devices. it happens to be all blackberry device. that's one of those situations. it doesn't really have to, but if you really want to take the highest level of security and privacy, then you should marry the two together. >> here's what some of those
6:38 pm
enterprise and government customers are wondering. doesis device, the priv, not meet your expectations, what happens to blackberry's handset business. -- business? john: we will migrate more and more towards software. i'm talking about software that goes into phones also. if we don't get a good hardware business going, like making money, we will be more considering the software side. >> but will you get out of hardware? john: the market will tell us. emily: blackberry ceo john chen from this morning. maha, what are your thoughts on the priv? you were shaking your head throughout the interview. maha: i feel so bad for blackberry. they have been playing a game of musical chairs. some of the companies were lucky enough to get by. some of them have done well on their own. emily: do you think john chen,
6:39 pm
who has this long history of tech turnarounds, do you think he can make something of it? maha: it's a hypercompetitive hardware device game. i just don't see it. emily: what about software and services? maha: i don't see it. emily: i appreciate your honesty. that's why you are here. maha ibrahim, my guest host for the hour. coming up, googles switch to an app ecosystem. ♪
6:40 pm
6:41 pm
emily: tonight on bloomberg, do not miss our exclusive conversation with the bank of england governor. that is live and streaming on bloomberg.com. before he started his own
6:42 pm
company, nest, he worked directly with steve jobs to create some of apple's most iconic products. in this week's in-depth interview on "studio 1.0," i asked about some of those earlier jobs. tony: there were times it was friendly. i would not say we were friends in terms of hanging out, it was tough at times. but it was a great mentor relationship at times. there were other times he called me on my craft were i called him -- on my crap or i called him on it. he didn't like that. it was all about what was the best experience for the customer, which is what i love. i would never trade that experience for anything. emily: i read it was like father and son. tony: there were a lot of love-hate moments. oh, we're going to take over the
6:43 pm
world. you need creative tension to really change things. emily: you quit a couple of times. you made up. like -- tony: it was a dramatic relationship. emily: there is this modern theology of johnny as apple design guy. i wonder how do you remember it. was it more of a team effort? it comes to design, there is no right or wrong. there is opinion. and different people had different opinions and led the charge for certain decisions. so, there was a team effort between myself, johnny, the marketing team, steve, and we would talk about the features, feature sets, what a looked -- what it looked like. there were certain decisions i could make myself. there were decisions about what it looked like, and johnny had
6:44 pm
big opinions. steve always rendered the final opinion on almost anything that involved the customer. it was very much a team oriented thing. emily: is this sort of mythology that pits you and johnny against each other -- is there any truth to that? tony: creative tension makes things better. we had times where we saw i die -- saw eye-to-eye and times where we didn't. was it personal? no -- no, it was all about the business and the product. i think that's what made the magic happen. emily: i really enjoyed the conversation. tony fadell, ceo of nest. google is growing its apps partner ecosystem. one of the apps is a communication productivity tool, which enables communication on multiple devices, including
6:45 pm
mobile phone, this top -- desktop pc. ceo steve walker joins me with maha ibrahim. that --nted the couple the company that became google voice. in have a lot of experience this. i feel like "productivity" is the buzzword. what is it that sets this apart? >> so many businesses are moving to the crowd for productivity, e-mail, documents, calendar. 365 arepps and office leading the way. having a phone system that goes with them, that is not just desk nobodyusk -- a is sitting at is really important. we were able to build a scalable, large-scale project -- product. we want to bring that to google apps for work users as well. maha: other than venture capitalists, does anyone have a phone at their desks anymore?
6:46 pm
craig: you would be surprised. motorola is a traditional company with housings and thousands of employees -- with thousands and thousands of employees. they've gotten rid of 90% of their phones. you are working not at your office. you are working anywhere on campus, at home. your e-mail is there, your document is there, your phone system should be as well. maha: is this replacing a traditional pdx? greg: it has all of the functionality without having it in a rack and being supported by the i.t. department. all you need is a connection to the cloud. emily: what sort of trends are you seeing in productivity? we are hearing a lot about google, microsoft, making productivity their thing. where is this going? craig: everyone is connected all the time. trying to figure out how to manage those connections and let
6:47 pm
you be productive. we've always been focused on the --ce side and the real thing the real-time communication side. we have video and messaging. we think it should all be in one as opposed to a new app that lets me communicate better internally than externally. it should be one system for all your communication. emily: i have one last question. we were talking about a unicorn correction earlier. i know you're a longtime entrepreneur. in terms of how you are running the company, you did a big fundraiser. are you trying to fund raise responsibly, where you are not going to find yourself in a situation where your valuation is too high to 16 -- sustain it for a good exit? craig: we are building the company for the next level, and that's the responsible way to do it. i remember the 1990's and how crazy it got. we have always tried to, series c, and atb, series
6:48 pm
each step, you reach new milestones. we are trying to be responsible. emily: craig walker of switch, thank you so much for joining us today. still to come, the "bloomberg west" team, including me, traveling to beijing to attend alibaba singles day. we will discuss, next. and do not miss my interview with jack ma live from beijing next wednesday, 9:30 a.m. ♪
6:49 pm
6:50 pm
alibaba and the latest in a string of deals. the company agreed to buy a is basically that like the youtube of china, ideal said to be valued at $4.8 billion. also alibaba said to be in talks to invest as much as $80 million in a grocery ordering app,
6:51 pm
according to people with knowledge of the matter, all ahead of the annual singles day festival next week, a 24 hour online shopping extravaganza, for which i will travel to beijing. i'm already getting excited. joining us is john ryan from china market research group. also, brad stone, who helped break the story about alibaba's potential investment in boxed. and more ibrahim. what do you make of this buy? >> it's great to be here. alibaba is facing real competition from 10 sent and baidu. it announced a deal so it would be the exclusive online showing partner for the james bond series. they are very strong right now otheregrating with jd and e-commerce players. alibaba is not in desperate mode, but challenged mode. that's why they are making an accusation -- qc --
6:52 pm
acquisition into youku,. emily: can you give us a sense of how many people in china watch youku? is it really like the youtube of china, or should we think about this more as a netflix or something else? >> youtube and netflix mashed together and a lot bigger. if you look "big bang theory" downloaded 240 million times in china last year on a rival website, youku is even bigger. the scope is hundreds of millions of downloads, not the millions or tens of millions. the second part is the real shift in china is more towards spending on services and entertainment and away from physical items. it's a very smart thing for alibaba to buy into youku, because that is the wave of the future. emily: i wonder what this potential investment in boxed means. i know you have been chasing this story. i ordered one time from boxed.
6:53 pm
i got toilet paper and diapers. what does this mean? brad: we have been watching and wondering how alibaba would come to amazon's home turf. they've made a lot of small investments. shoprunner. it's all been challenged, small investments. with boxed, it is a combination of amazon prime and cosco, jumbo items from your smart phone, no membership fee. it's getting a little bit of traction. they are based in new york city. to $100 be $80 million million. maha: all of these companies, jet, boxed,, etc., in my view, mini-amazons. they are underinvested-in amazons. they need all the great stuff that makes amazon so efficient.
6:54 pm
and until they do that, they are going to be mini-amazons. emily: what is alibaba? what do you make of this potential investment in boxed? is alibaba trying to be like the amazon for the world? some people say that is not really the right way to look at it. shaun: i don't think alibaba has a clear strategy into the united states right now. i think they are under so much pressure in china that they are looking to buy into logistics and really bring products of the united states into china, but that growth is not really sustainable as long as the consumer economy continues to weaken in china. alibaba has to make investments out of the country, go into the united states, and try to sell to the u.s. consumer, which is doing a lot better. i'm not convinced, though, this is the right strategy. over the last three months to six months, they've been a little confused. they seem to be grabbing at everything rather than having a very focused strategy like they did before their ipo. emily: brad, having wrote the book on amazon, how do you think
6:55 pm
about it in that context? alibaba's future? brad: that alibaba will have a very tough road in the united states. we've seen ebay struggle. we've seen all of these layers struggle. it's because amazon does a great job for its customers. really, no one can beat its scale, it's price management, it's loyalty. it will be difficult. boxed has a different strategy, selling in bulk, something amazon has not been focused on. maybe there is a chance here. but you will awaken amazon and they will come to compete with you. emily: amazon is where all my diapers come from. redstone, thanks for joining us. -- brad stone, thanks for joining us. maha ibrahim, shaun, thank you. shaun: i hope to see you in beijing next week. emily: he sure to catch my sitdown with alibaba executive chairman jack ma live from beijing next wednesday tom and
6:56 pm
9:30 a.m. eastern time, here on bloomberg -- wednesday, 9:30 a.m. eastern time, here on bloomberg television. the fortunes of sony are in the hands of "james bond." it is set to be the biggest opening in the history of the series, making $90 million, but'sonys -- but sony's deal to rights to distribute will expire with this film. we will be watching. that does it for this edition of "bloomberg west." have a wonderful weekend. that's all today from san francisco. ♪
6:57 pm
6:58 pm
6:59 pm
7:00 pm
>> from our studios in new york, this is "charlie rose." is the 24thectre" series the james bond daniel craig returns did sam mendes also returns after the success after "sky fall" which billion worldwide. bond faces off against a global criminal organization, "spectre." here is the trailer. >> you have no authority.

39 Views

info Stream Only

Uploaded by TV Archive on