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tv   Bloomberg West  Bloomberg  May 4, 2016 6:00pm-7:01pm EDT

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faith,i have renewed deeper faith that the lord will show me the way forward and fulfill the purpose of my life. mark: he did not mention or endorsed front runner donald trump, now the gop's presumptive nominee. a huge wildfire has destroyed neighborhoods and forced the evacuation of fort mcmurray in western canada. his home to the alberta oil reservehe third-largest behind saudi arabia and venezuela. the environment protection agency is accused of being almost 30 years late in issuing rules for the handling of wastewater from oil and gas expiration. environmental groups are suing the agency and seeking a court order compelling the epa to adopt measures regulating the disposal. the transportation security agency is adding more screeners
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and bomb sniffing dogs to congested airport hubs. global news 24 hours a day, by the 2400 -- journals and 150 news bureaus around the world. ♪ emily: this is "bloomberg west." coming up, investors shift tesla shares in the high gear. a never been inspected loss in quarterly earnings. two top executives leave. we will break it all down. the beats go on. at apple the tech giant changing the tune of its music with a remix of its user interface. we have a deep dive later this hour. tivo's second coming.
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the pioneer that became a victim of its own success is back in the game after a $1 billion acquisition by robi. what's in store for the second act? i will speak to both ceos ahead. tesla shares popping in after-hours trading after the company reaffirmed plans to deliver 80,000 to 90,000 cars this year. with anestimates excited loss of $.57 per share in the first quarter and it is margins of 21.7%. the news comes hours after two said they are leaving the company. here to discuss in more details is true car's eric lyman and at niedermayer. i will start with delivery. tesla says yes, we can make these deliveries this year but there seems to be a lot of skepticism around whether or not they can actually meet this delivery target. what is your take?
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>> yeah, there are definitely some times that there may be some issues with making deliveries. sales last month did not look particularly good according to what i've seen. it seems like it is always a question of is a demand-side? does the model x a done? --dud? sayingl, tesla is production has a sleeping bag in the conference room off the assembly line. a lot of this gets back to production. emily: it sounds like typical el when you reiterate whaton. ed -- would you reiterate what and just said? >> i think they could. they have had a rash of some setbacks. there are lots -- there is lots of chatter online about the
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build quality of the vehicle. they had an 18 month delay with the model x. it has not been a clean launch by any stretch for tesla with the model x. ed, let's talk about overall numbers. deliveries aside, what are your big takeaways? ed: i think it will be a huge challenge for them to deliver. they are looking now at potentially 100,000 to 200,000 orders in the second half of 2017, which is just a huge aspirational target for elon musk. you have got that while you have the head of manufacturing and production leaving the company. it seems interesting timing, right when they need some expert to understand the manufacturing and production process for tesla the most. they will be absent with this ambitious goal coming on the horizon very quickly. emily: one of their highest
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paid executives. how big of a loss is this? >> is massive. they are accelerating for model 3. i think there is already skepticism about whether or not they can get that out on the previous timeline as they never really met those timeline targets before. another accelerating on the same day that they lose two top bps for production, elon musk was just on the call talking about how they have some announcements lined up about who might be stepping into these production and manufacturing jobs. things andl these have this ability. but they keep losing all their talent. and their salaries are some of the lowest in the car business for the same positions. it's definitely a huge risk. but plugging one person and to replace another, you can do all kinds of things with that. with a history of the industry
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proves is that it is culture. that drives quality manufacturing toyota has proven that. tesla still is not shown it can really develop a long-term focused culture that makes these improvement. we see this back-and-forth and forth, up and down, all-around. emily: what about the model 3. they will belike able to stick to that price of $35,000? >> i think they have to at this point. what i have heard is that some of the orders, the majority of the orders on the reservations online are coming in well above $40,000 or $45,000. whether or not they transacted a lower price -- we saw a similar phenomenon with the model s. their were really upping purchase into a higher-priced class, which is a great opportunity for tesla to prevent -- present the vehicle. they are certainly committed to that $35,000 price. emily: what about the powerball,
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the tesla battery, and we're starting to see the first reaching customers? what are the reviews so far? >> i focus on the automotive side so i really don't have -- i have not read a lot of reviews. i am sure they are hoping that will provide enough volume to get the giga factory running. it's a huge plant. they have to get the production of a model 3 up to meet that production they will be doing. if the demand is good for these power walls, that will help a lot. the problem is there is a lot of competition. it's a commodity business. they will not get any kind of real significant margin i don't think out of this power walls. unless they are really blowing people away, which i have not seen, it's hard to get too enthused about a stationary battery as a product.
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i'm not confident it can do it they needed to do for them. emily: i've never heard of a battery plug anyone away, but an interesting point. at niedermayer, thanks so much for joining us. staying on earnings, shares in zynga are surging after the gaming company posted first-quarter results that beat estimates. they said consumer spending on games rose 8% from a year ago. is the first quarterly report under the new ceo replaced founder mark pincus. he was quote -- brought into "excel innovation." the company says he shares a common vision on the direction of social gaming. tears were down about 14% before wednesday's close. coming up, fitbit out with earnings and shares are plunging an extended training. what does the company need to show investors? ♪ emily: and the one-year-old streaming service apple music.
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can a makeover help apple reclaim its dominance in music? that story later in the hour. ♪
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♪ emily: now to ellen pao it was launching a new initiative called project include with other silicon valley women. in my conversation yesterday, she told me some companies have already expressed interest in the project. she is working on a book that will chronicle her experiences in silicon valley. i asked her about michael morris at sequoia capital who once told me the firm would
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focus on hiring women but he would not "lower the firm's standards to do so." later on he clarified and said there are many qualified women and they are working hard to find them. listen to pao's reaction. >> it is hard for people to change. there is a system that works well for them and they think it's a great system because it works for them. they don't have the ability to think outside of that system. for us, what we are trying to do is bring in all these different views. we have eight women that have not phenomenal things, each a tremendous leader in tech. these are recommendations. you can not think about them and continue to live in your world, or you can open up and really hear other people's ideas and think about what are you missing by having the static system? emily: that was my exclusive interview with a former junior partner at kleiner perkins and interim ceo at reddit.
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fitbit shares are sliding after hours as the company issues weaker second quarter guidance. the company reporting a first-quarter revenue of $505 million, beating wall street estimates and profit under $11 million. their first year as a public company has been rocky and the stock is down over 14% since its june ipo. what will it take for the company to prove itself to investors? firstg me is ramon lomas, of all, what you make of this mess -- miss? >> i think it is a pretty big miss but we are looking at this moment in time. fitbity going forward is is not the kind of company that will stay still. we have a lot more development and a lot more product and a lot of other things to look at right now. if we can just be patient and say let's look at how the run that develops, i think we will see a lot more than what we see
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here today. emily: let's talk about their new activity trackers. alta and the blade. how well are the new trackers doing? countsou look at the they made, altogether for all the devices, they sold about 5 million units. alta for about 1 million and blade for another million. take a look at what fitbit is doing. they are bringing out devices you can actually wear when you are working out and waited you were going to be out on the town. you don't always have to look like you are going to are going from the gym. look at these two devices and keep in mind these are not launches from the start of the quarter. they were staggered out. to have one million units in less than 90 days, i would consider that rather successful. there are other. companies that would like to duplicate a kind of success as well emily: from your's respective -- emily: from your perspective how
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good are they doing against the apple watch? by some estimates fitbit already has more than 60% of the wearable consumer market. >> we are looking at two different kind of companies here. if you look at just fitbit, a very tight focus on health and fitness. that is been their dna from the very start. they tell you how many steps you take, calories burned, sleep at night. that is what they are focusing on. apple with the watch is trying to be all things to all people. communications device, a place to play applications, games, social networking, communicate back-and-forth. a lot of people look at the device and say do i really need this right now? i have this great smartphone in my pocket. whole, a lot of people are trying to figure out what can it do that says to me i really need this? to have these two companies butting heads, i don't think
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that the right way to look at it? i think there is still space in the market. there is a very nascent market that really started coming up a couple of years ago. there is a lot of space to grow. around for it's been several years and they are developing and doing rather well at that. apple is a first-generation device. we have to take it works in all and there's some terrific things about it. come 2018 or 2019, we will look back and say the number one fitness trackers looked like back then? qose looked really point that -- quaint. emily: we spoke with james park a few month ago and here's what he is able to longer-term vision. >> the long-term plan for fitbit is we are not just a wearable company, we are additional health company. we are helping people achieve their goals. ministers stress, etc. map is to helpd
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people address those goals. emily: ramon, how successful do you think fitbit can be as a digital wellness company and selling a broader range of services? >> i think that is where the market as a whole is going to go. we have got to start thinking about wearables as a device you slap onto your wrist. eventually it will be targeting everything else in your house. with fitbit the arty have wi-fi enabled one they can talk to you, whether you like it or not. if you had your fitbit or whatever other device and it talked to your refrigerator hvac, moreor your about how you been doing since your last appointment, there is golden that. if fitbit will be a will to realize this kind of vision, it will require a lot of software. it will require the hardware, and he have to build the network
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out to talk to all these devices in people and systems. the --tirely holistic so by the time you put it on at the start of the day, not only are you going to see what you've been up to put all this data is being shared to all these devices and systems. think a much better life can be if you have a kind of information. emily: we will have to leave it there. ramon, thank you so much for joining us. up next, a match made in tv heaven. robi and tivo prepare for a monumental shakeup. we will hear from the ceos of both company next.
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♪ could be coming up with its own pace of fiction services for a bundle of tv channels by early next year. the project is called "unplugged." it's one of the biggest priorities right now and it has
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been developing since 2012. executives have discussed the plan but most major media companies. they are said to be any for a package price of less than $35 a month. a subscription would complement what is already the largest ad supported video site in the world. , staying in new media rovi and tivo are taking on the industry that is changing faster the convention "house of cards." last week rovi agreed to buy tivo and a deep it -- in a deal valued just over $1 billion. it's at a time when they maybe more important than ever. joining us now to discuss the deal is the rovi ceo tom carson naveenvo interim ceo chopra. tivo is known for dvring. rovi is the guy that tells us what is on.
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what is this combined company going to be known for? theym:" -- tom: thank you for having me on. we just came back from a meeting. excitement is incredibly high. the combined companies have an incredible arsenal of technologies for allowing consumers to get to the content they want. for us this was all about the product side of the business and helping us formulate a company that is just better from a product perspective than either was can be by ourselves. emily: tivo has seen the march of technology in this space for now a couple of decades. opening up the set-top box market to more competition. how would it affect you guys if google gets into the market, amazon, apple push even further into the set-top box market? >> it's kind of all speaking to
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a lot of the rationale behind tivo and rovi coming together. the world of television has changed phenomenally of the last two or three years. a lot of new players coming in, consumer behavior has changed substantially. we see this as an opportunity to whichhat tivo has done, many view as the best way to watch television and the gold standard, and bring it together with a lot of these smart plumbing that rovi provides the makeup possible. to the extent that the sec is able to create more opportunity for opportunity in that arena. we think the combination of these two companies positions us even more strongly to play with a lot of very large silicon valley companies being a part of it. emily: you guys have a powerful portfolio combined. we have seen these companies in litigation with the likes of
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comcast, netflix, google over patent licensing issues. re: going to see more of that? this deal was really not about acquiring additional intellectual property. sometimes rovi gets a reputation for being more of a patent bully. the reality is we work very hard with our prospective licensees to come to an agreement that is fair in mutually agreeable. less than 2% of the agreements we have actually end up coming from a litigation. the vast majority of the license agreements are done amicably. this is about the product business. as i mentioned earlier, this is a great team of two companies that really do in their respective areas have great product technologies that want to combine. emily: some of these guys are
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developing their own ip for tv channel guides as well. do you have ip that they need? naveen: the way to think about it is that anybody that has -- that is doing a search for video content in whatever way, shape or form they are doing it has a high probability of meeting a license under the rovi patents. we have ases where agreements with our discussions with prospective licensees, what we find is that they have a very high interest in a lot of the product technologies because the product technology we have between the two companies really is the best of the breed. it allows the dynamic of the discussion to be not just on an intellectual property but on cutting-edge products.
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emily: we will be watching the future of set-top boxes as a rapidly evolves. and tivo ceocarson naveen chopra, thank you so much. i year later apple music has not gone platinum. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com and in the u.s. on sirius xm. more of "bloomberg west" up next. ♪
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♪ mark: you are watching "bloomberg west." let's begin with a check of your first word news. president obama drank filtered water in flint, michigan to show it is safe. the president's visit was his first in the drinking water
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became contaminated with lead. >> that's why i am here. that i see directly you and i hear you and i want all of you to know i am confident that flint will come back. mark: the president met with governor rick snyder and was briefed on the federal government's response to the crisis. a federal judge says hillary clinton will testify about issues of private e-mail server as secretary of state with a public records disclosures. the judge granted the request of the conservative group judicial watch. u.s. officials say an agreement has been reached with russia to extend syria's cease-fire to the northern city of aleppo. it takes effect at midnight damascus time. officials say they have seen a decrease in violence but violations continue in some areas. global news -- global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world.
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from bloomberg world headquarters, it's just after 6:30 p.m. on wednesday in the work, 8:30 thursday morning in sydney. paul allen has a look at the markets. pual: good morning. u.s. stocks slid to a three-week low. as expected have an impact in this part of the world. the new zealand stock exchange. the opens in 30 minutes and look pretty flat right now. the moderate markets across the asia-pacific are closed including japan and korea. we are expecting declines in australia at the open. not just because of the week leave, a look at the price of iron ore. down again overnight. it's now had his biggest two-day drop since july and no impact a lot of mining stocks. we will be watching rio tinto. there -- they are looking for an expansion of their iron and
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copper mines in mongolia. and just have a cash earnings for the first half of $3.31 billion cash profits. that was up 5% but it is slightly less than the analyst were expecting. crucially for the national australia bank, that debts of all and by $24 billion. that infected the earnings of the other two big banks this week. we will be keeping and i on the national australia bank at the opening. i am paul allen for bloomberg tv in sydney, australia. ♪ emily: welcome back to bloomberg west. apple is in the spotlight yet again. this time the focus is on its year old music streaming
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service. they plan to revamp the service and is expected to be unveiled at the company's worldwide developers conference in june. it comes on the heels of the exit of top executives. and lukewarm reviews. well the pending changes give it an edge on the competition? who to discuss is alex webb broke the story about a lot of the drama going on inside the apple music division. hang a picture for us. what is happening? alex: drama is a good word. it's a very cast of characters in this the problem. there are a lot of people involved. people that already existed in the itunes universe, and the people that came on with beats. getting them to work together has been challenging and a lot of guys at each have left. emily: including the former ceo. at the same time you have jimmy ivy it was still there. they have -- he has no title.
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what is his role? alex: he does a lot on the live music side. talking artist, getting artists. the actual product development hearing the first iteration, not so much. a bit more in the one they are developing now. emily: the hope is that they could marry to download business and the itunes business with the streaming business. it makes sense because it gives him an edge with artists like adele who don't want to release their albums on streaming services. what changes are they thinking about making? alex: a lot of it is the music interface. it sometimes very hard to use. that's the kind of thing they will be changing. it's confusing for a lot of people. they don't want to cannibalize the download business too much. it still works, three times more than the streaming business.
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they are trying to balance the two interests. emily: you describe a potentially bureaucratic environment where it is hard to get new ideas approved. alex: yes, if you come out of a startup you can come up with an idea and the next day he can be a product. it's different when you move to a $550 billion company. applesingle proposal at music had to be signed off by a vice president. that slows down things a lot and it's very frustrating for a lot of the beat evil -- people. emily: tim cook said he's more opened acquisitions and beats was the biggest one-day ever made a $3 billion. do you see apple attempting to do this again? repeatedlytimated it was the biggest deal. the whole java speaks to the extent in which apple is able to
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integrate different cultures. it has a very specific culture of the company. they are not terribly adept at bringing in big acquisitions and doing it well. emily: i want to talk about ubs analysts putting out apple's future and the release of the iphone seven. he says there is hope for the latest iphone cycle after disappointing sales of the iphone 6s. alix steel and scarlet fu caught up with melinda this -- him and find out how much we can ask for from the apple upgrade cycle. >> investors are questioning whether apple has reached a new level of maturity. in the last 6-12 months we've seen disappointment in terms of upgrades. our survey of consumers in five countries suggests the iphone 7 in september is likely to see of great demand better than the 6 the -- better is than the 6s but not the 6.
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the days of 20%-30% growth have gone by. >> do we know anything about the iphone 7 yet? what it will contain? >> there is a little bit of talk about dual cameras and so forth. it doesn't appear on the service it will have dramatic changes, nothing like the 6 they gave you the big screen phone. we expect nos screen that is probably one more generation off. let's say it doesn't have significant new features. is there enough pent-up demand to see people moving? my guess is they would like to see a real feature differentiation. we don't think it's likely but there are still over 200 million iphone users that are not going to a big screen yet. they could provide some growth in fiscal 2017. >> you have a tiny one? >> my head is too small to have a big screen. i don't know what i will do. what kind of price and upgrade
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cycle do you think is factored in right now for the stock price? >> probably not too much. the apple stock price is not discounting too much good news. probably looking at flat or slightly down growth in the fiscal 17. what you should be looking at is the fe, which they just introduced. it's in the old four inch format. it has relatively new technology. we think that will not so much attract new people in india, it's too expensive, but about one third of the apple base is on the old four-inch format. we think that is likely to be a pretty good upgrade. that could treat us to some potential growth in 2017. >> carl icahn has negative his position and apple. why was that bad? is it because investors interpret that as he can't get what he wants? >> he may $2 billion which is not all bad. he was prompting the company to do more in stock repurchase
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which they have done but not as much as he wanted. he said if you value apple is a. annuity play by cosco, it would be worth over $200. who knows for sure what he really took the position down that he did mention china. china's revenue is down 26% the last quarter for apple. it's two thirds of apple's growth. if problems continue to occur in china, give be difficult for the stock to dramatically rebound. is alextill with me webb. what is your take away he said? it makes sense that the iphone 7 would have increased demand of about 8%. >> that's probably reassuring to investors. the question has been to extend to which there is pent-up demand. he thinks there is. if you look at what we have in the system, there is a fiscal year sales decline predicted but i think it is a 4% decline. that is far less the sort of 20% decline yet seen in the quarter so far. emily: there is a narrative
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going on. carl icahn sold all his shares. there are question about whether apple really is a growth stock in the future. when we look at the services, and he goes back to apple music and the idea is going to ultimately make up for some portion that hardware will not account for the future, how much growth are we expecting in the services business? how much potential does apple music have if they get it right? alex: as a proportion of apple's total revenue, it's not a massive percentage. about 11.5% total. if you compare that to netflix, it's a big business. pushing $20 billion in revenue for services. that is everything for music, icloud, sales on the app store. to 50%-20% growing per quarter which they are, it's a big business for them. not as big as the itunes business.
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the hardware is where they make the money. emily: we will be watching in about a month. alex, think he so much. apple hascond time lost a battle for the use of the iphone trademark in china. a beijing court decided a little leather goods maker could use the label for its wallets and purses. apple failed to prove that the iphone was "a famous brand" across china before the small firm applied for the trademark in 2000 and. the company did not selling its smartphones until 2009. apple still has the trademark for the iphone name on mobile devices but not full ownership beyond that. coming up, cbs earnings beat expectations next to add sales. les moonves tells us how traditional advertising is standing up to digital, next. ♪
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emily: cbs just posted first-quarter profits citing the super bowl and grammy awards as a catalyst in at sales. les moonves joined david weston on bloomberg go this morning. he asked how the broadcast advertising business continues to succeed despite the emergence of digital advertising. >> i think are are a lot of things going on. one, a lot of money that have potentially moved to digital suddenly people are realizing that not all digital is that great. there is a lot of false viewing on digital. i think a lot of money is returned to network television. network television is proving it's doing better than most of the babies -- basic cable networks.
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we are seeing a return to the broadcast. there is no better bang for your buck. helped by the big events like super bowl and grannies, but the underlying growth was 12%. we. are pretty excited going into the upfront >> where d.c. dollars coming out of digital? we saw numbers out of facebook and they seem to be growing to the sky. >> there are certain digital places. facebook, google doing extraordinarily well. we have a number of digital assets doing well. people are saying to best buy is broadcast along with digital. obviously the facebook's are doing extremely well, but not all digital is created equal. >> you mentioned digital assets. tell us about those. you have cbs, showtime. of those, which are doing the best right now and which is the best potential as you look at them? >> i am not going to pick out among my children. i'm extremely pleased. all three have only been in operation for less than a year
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or little more than a year. we cannot be more pleased with the results on all of them. cbsn is a nonprescription based, but the numbers are growing every day, especially during the election season. cbs all accessd are doing extraordinarily well. they are beating mixe -- projections. we look forward to adding "star trek" in january. that will add a bone and he continued strength of the showtime lineup. in all honesty i next are nearly pleased with all three. >> recognizing they are relatively new, when will they become material to the revenue line of cbs? >> it is already happening right now. i think in the quarter succumb you will see some more numbers, more transparency into what we are doing. the revenue is beginning to make a difference and in 17 it will be a very large number. >> staying with the fee
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structure apart from advertising, you expect $1 billion this year coming out of the stations. will that continue to grow past 2016? >> we have set by 2020 we expect have $2.5 billion in reverse copies. fees.omp people are paying more for our content and you have the addition of the skinny bundle plus all access. what we are saying is we provide cbs the matter how you want to get it. and for sure the reverse comp fees are going to essentially. >> when you talk about the skinny bundle what is your concern about cannibalization of some your existing programs? >> we are willing to put our content everywhere as long as we get paid for it. there is a lot of noise in the marketplace about the skinny bundle becoming much more important.
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obviously we live in a 180 channel universe which a lot of people do not want to pay for. the skinny bundle will become more and more important at a lower price point. people are going to get only those channels that they want. we are basically saying however you wanted, if you want to be in the 180-channel universe we are fine with that. if you are in the 15 channel universe, we are fine with that. if you just want cbs all a card, carte, we are find that as well. >> when you look at a deal with dreamworks, would you have liked to have bought it? -- her interest in harriman paramount that you get expand your content-based? >> i think comcast made a smart deal getting dreamworks animation. they are a big film business. dreamworks animation, a very good company.
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would not have been a great fit for cbs. we are still primarily a television company. are we looking to expand in content areas, absolutely, but he needs to be the right fit for us. emily: that was les moonves with our very and david west. up next, everything you need to know about -- before alibaba's earnings report on thursday. and we bring you all the best interviews in the week. more my exclusive conversation with ellen pao, former interim ceo of reddit and partner at kleiner perkins that he sued in a gender discrimination case . ♪
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emily: we will be keeping a close eye on alibaba when the report for the fourth quarter.
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they more than double their profit in the span of a year, but you would not know it looking at the stocks. they lost whether one third of their value since peaking after record ipo in 2014. the reason they become a proxy for the chinese economy as it navigate a puppy transition from manufacturing to consumer spending. what will alibaba have to show investors? joining me is stephen engle of bloomberg news. jack ma has come out and said he has a lot of faith in the chinese economy. what will you be watching when it comes to alibaba's numbers? stephen: we will be looking at a number of different things. you are right. this company, at least the stock has been the unloved giant on wall street because the shares have lost about one third of their value since that peak of just under 120 u.s. dollars a ipo infter its big september of 2014. they have doubled their profits in a year.
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they had revenue growth of at least one of the 20% a year. they are loved and the stock is trading at about $75 right now. what we are at before the bell is a number of things. the investors want better revenue growth. before the ipo they had revenue growth in the 40%-40 5% range. we are expecting about 33% revenue growth for this current fiscal fourth-quarter. investors want more and more clarity as well on margins. alibaba has been on acquisitions spree. they bought a big stake for southeast asia in e-commerce. they want to see how they will monetize that investment. and going even further forward, perhaps an ipo for ant financial, the owner of alipay. he could unlock a lot of value for alibaba investors. this is a division that is valued somewhere near $60 billion. there is a lot of unlocked,
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untapped areas where investors are hoping to get more clarity. emily: what about all the acquisitions that alibaba has made across a lot of different areas? how successful have these acquisitions actually been? stephen: yeah, they are going into a lot of areas. video content, movies, the south china morning post. jack ma but that newspaper in hong kong. he is really going into a lot of different areas. he has stated he wants about half the revenue to come from overseas eventually. overseas revenue has declined the last three straight quarters. it's only 6% of total revenue. that's an area where he is still needing to go a long way to achieve his goals. emily: let's talk about international growth. jack ma said international growth will contribute significantly more to the bottom line, but it has been slow going. how much progress of actually making?
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stephen: it is slow going because right now this is a domestic play. we were in beijing last ever for singles day. the incredible amount of volume of goods and dollar figures that have been transacted for the chinese market. that is where they are really getting most of their revenue right now. they have huge competition from the likes of jd.com which is seen growth of 50% the last three quarters. they have a lot of domestic competition. that is why jack wants to go abroad. -- asiasoutheast area is an area where he is pushing forward with his e-commerce goals. emily: good times in beijing with you. thank you so much for joining us. out who waso find having the best day ever. respawn winner is entertainment. they will burst into the gaming scene in 2014 with titan fall,
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announcing they are working with ea to create and all the third person videogame set in the star wars universe. no other details in the game were released that enough to fuel the frenzy on this unofficial star wars holiday, may 4. may the force be with you. that does it for this additional -- edition of "bloomberg west." tomorrow, salt, talk -- sal kahn talked about his plans for revolutionizing education. that is all today from san francisco. ♪
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announcer: from our studios in new york city, this is "charlie rose." you begin with sports and one of the biggest upsets in european football history is not sports in general. underdogs leicester city won the english premier league on monday after a consistently strong season. the upended traditional expectations, competing against wealthy clubs such as chelsea and manchester united. some of their players were competing in a amateur league's a few years ago. here to talk about this fairytale championship is

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