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tv   Best of Bloomberg West  Bloomberg  May 21, 2016 6:00am-7:01am EDT

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♪ this is "best of bloomberg west" where we bring you top interviews from the week in tech. the google developer conference is all about ai and vr and we hear about the company's newly announced android tv set-top box. ofy spoke faces a fallout accusations that their trending topic section is biased. handpicked a man to lead
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microsoft, we will speak with john thompson to talk about microsoft's and diversity in the valley. the highlights from googleio developers conference. the future of google is artificial intelligence and that was the message. the company unveiled a digital assistant and a new the our platform called daydream. there was also another company on campus and that was the number three smartphone maker unveiling a tv set-top box that runs on android. we caught up with the vice president for more. show me how it works. home, have the android tv what it looks like on your screen, we have different rose apps.s -- rows of you have a row of personalized recommendations, the more you
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watch, the better these will be. this supports 60 frames a second, which is new in the industry and it supports hdr content. people are talking above the next generation, talking about 8k already. what is injecting about this product in addition to the harder aspects, which i have not talked about. it is really the approach to content. we are working in collaboration with google on this. contenttv brings the you want, we have google play and all of the major entertainment brands are bringing their apps, most of them are already here. you huge number of games, youtube, the official youtube app you can only get it on android tv. just a wide variety of content .ptions
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plus, you have a lot of the google innovation. for instance, i can do this. what is that movie where jim carrey gets his memory erased? there it is, "eternal sunshine of the spotless mind. " emily: google assistant made that happen? >> essentially, that is the beginning of it in the background. emily: do you have a solution to google home or amazon echo? home have a mature smart strategy. we care a lot about this stuff we are doing the basics first, we are launching a tv-based product. we will be launching smartphones in the near future. we are very excited about the home system. emily: talk to me about your international expansion strategy. apple, mosting sales are in china. how well do you think this brand
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will translate a broad? >> i think it translates really well because we focus on the product. -- what thisket all of this about, innovation, people hear about it and we are a software industry and a electronic company here in the u.s. is to select products we believe people in this market are going to associate with and thanks, these are high and products, things i want at home. that is the angle at which we will come. emily: are you running into any challenges looking at expanding globally, and if so, what are they? >> no challenges in particular, but we want to be focused. we have been in china for six years and in india for almost two years and we are doing very well. we are number three in india. that is even faster than we
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expected. we are just about at the point that we will be on the next market. the u.s. feels like a market we are investing in because it is a large market and the most important market in the world from an influence perspective. having a strong brand here and successful products in the u.s. will help everywhere else. emily: my interview there with hugo barra. google has been clear about their ambitions in virtual reality, they unveiled the affordable head mount pairs with the smartphone, and now an ecosystem called daydream. our editor at large, cory johnson caught up with google and ask them to tell us more. >> it consists of phones with very high specifications to make sure they can render things smoothly and really good sensors . the reference design for a
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headset and a controller say you can slip your phone into something and have a comfortable experience and interact richly , like youtubeapps vr. >> the processing power has to be massive? >> today's mobile phones have enough computing power in them to drive this is areas that can really make you think, i am somewhere else, it is that emerson and high quality. >> i am trying to figure out how powerful chips and phones are compared to supercomputers, i what youut a 1987 is are figure -- what you are carrying around in your phone right now. >> compound growth is very special. >> that is the growth of an existing old industry, but we are trying to make a new industry. you are trying to create an industry around virtual reality and i wonder what you think the key drivers of that new and yet imagined -- none -- unimagined.
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>> users need something to experience it with, the device, and the apps and games and things they can do in the are. -- in vr. we tried to enable the google system to build the components at once. we are making investments across all parts of that from the hardware, the devices, all the way to the applications and what people can do with it. >> give me an example of something that helps iterate that process. >> one of the things we have done is create a controller that we are working with our hardware manufacturers to create more versions of so that any company making a smart phone can also manufacture alongside a controller and a headset. we have done the hard work of figuring out how to make something comfortable with great optics. it is really nice to use and can create an immersive experience and we have handed the knowledge
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to the companies to give everyone a leg up to push vr forward. >> i can -- can you think of one or two or three apps that will be killer for vr. brush thatike is tilt lets you paint and space with any material you can imagine an artist's are using it to sculpt amazing things in virtual reality. the second thing is a version of youtube we have rebuilt from the ground up and includes things like a shall audio so that sounds appear to come from where -- from where they actually are. it will a you visit concerts and events and faraway places and experience those like you are actually there see you will not have to fly around the world. >> you do not get the miles, there is a downside. >> there is a downside, you will not get frequent flyer miles. >> it can be exhausting, maybe
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the immersive games, play in call of duty 418 hours can be exhausting on an xbox, but virtual reality is too much. >> vr is certainly more immersive. we are focused on bringing amazing, real-world content -- content into vr. we have been building a jump camera and we think that will open up interesting things like taking you to machu picchu or stonehenge or the taj mahal. there is something very special about vr's ability to transfer you other places. emily: our editor at large with google's vice president of virtual reality. coming up, is facebook suppressing conservative news stories. mark zuckerberg meets with top political figures to allay concerns. we will check with someone who was at the meeting. later in the show, one of silicon valley's most
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experienced investors, my interview with microsoft chair and investor.
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emily: facebook planning itself at the center of a media storm after reports surfaced of the company's trending session -- section biased toward the news. among those in attendance, glenn beck, the head of donald trump's campaign and former white house set -- press secretary. we had another chance to speak to an attendee, arthur brooks. as well as ethan. how would you describe the overall tenor of the meeting and your takeaways? >> it was a good, constructive meeting. facebook senior leadership was there and they expressed they were worried about trust, not just with conservatives but people all around the country
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who may be worried about being underrepresented and they wanted to know what we were thinking and they told us some of the things they were thinking about doing to fix it and we got some feedback and it was good, very interesting. emily: would you say that mark zuckerberg admitted or indicated that there was highest in the trending topics section? is an ongoing investigation and they do not think that there is a conspiracy, i am sure there is not. it is implausible there is some sort of conspiracy. emily: why do you say that? >> because conspiracies are hard to pull up and they are not very profitable, is another thing to worry about. there are 167 million facebook users in the united states and they want a platform that appeals to all people with different viewpoints. having people inside the company or in leadership that we are would to shut that down
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be a pretty bad idea for business, that is not what they want to do. i do not think anyone in the room thought that was what was going on. emily: it in i .6% of facebook employees are liberal, 50% of them are more left leaning them bernie sanders, does that matter? so, i thinkhink facebook is an overall reflection of both the demographic of the people who work there, very young employees, very young company. silicon valley where overwhelmingly people are left of center. i think what is interesting about the story is, it is moving us closer to the line where facebook is a technology that they have influence over us in very subtle ways and everything i have heard the company say is they take that seriously and it sounds like they reiterated that today. that is something we will have to watch and i am curious, did facebook acknowledge that, did they say they understood that
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what they put on their news has influence on what people perceive? >> they talk about trust and trust matters, it is everything when you are a media organization, particularly one that disseminates information without trying to editorialize. facebook has no ambition to become an editorial page. this brings up emily's last question, does it matter that a liberal point of view so overrepresented from a national perspective on facebook and i think it is an interesting question. it is a big opportunity for facebook. i believe i could faithfully represent liberal point of view although i am a conservative. i think it is a good idea to have more different points of view in the room, in the community. i think mark zuckerberg can use this as a major opportunity to have facebook the a forward leaning kind of company that kinds -- tries to represent americans in a more unbiased way
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simply by getting more voices in the room. emily: there seems to be some .ension here in that facebook is an independent business organization and the conservative party would say that the government should not ever interfere, interfere as little as possible. what exactly do you want from facebook? i do not know what i particularly want, they were asking my opinion. it is not that i was going to facebook with a set of demands, i have no demands. i want free enterprise, i want a great company to be able to grow and serve americans better. that is the job of capitalism as far as i am concerned. they just wanted to know what i thought they could do to make the situation go drum something that is a bit of a conflagration into an opportunity. that is why i was there. emily: what do you think they can do? >> i think this idea of using this as an opportunity to give
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it to a community that is more representative is a big idea. company in silicon valley, it is overwhelmingly a left-wing place, i get it. it is also a pretty nonreligious place. people who look at facebook and are relying on it with trending topics and news feeds, they are not all like that. opportunitys a good to build a community where people in a civil and respectful way can understand each other's point of view and maybe some of these bumps in the roads would be naturally avoided. terms ofat said, in users, mark zuckerberg pointed out that donald trump has more likes than any other presidential candidate and also, that fox news gets more interactions on facebook than any other news outlet by far. >> until i heard these accusations, i would not thought there was any bias here. facebook is in a position to use their technology to show that. ory can algorithmically show
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prove or disprove that there is a systematic bias one way or another. i am curious, did they talk about employing technology to be quo to improve the status or to rebut some of the allegations that have been made against them? >> for sure, the trending topics algorithm is a pretty new thing and it is very small compared to the news feeds. it is something they are trying to get right. they are extremely inched it and how they can improve it and they are in -- very much in listening mode on this. i think in the weeks and months now, we will see some positive changes in the way they deal in terms of engineering solutions. i think cultural solutions will have to come along and i think they are interested in those as well. emily: that was arthur brooks, president of the american --
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we will break down how apple's big bet on the company could be paying off. could the days of the elevator pitch be numbered, taking pictures -- taking pitches on snapchat.
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emily: earlier this month apple made a $1 billion investment in leadings -- china's ridesharing company. reports are swirling the -- targeting an ipo in 2017. timing will the 10 -- depend on the battle with market share with uber. let's start on the ipo, what do we know? is from us, 2017, we could be considering ipo in new york depending on the
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competitive -- there is differently wiggle room there. didi hasd has -- denied the report? >> yes, but i think it sets up the timeframe. emily: you used both services, what did you think? >> i think it is pretty clear there is one service that needs to work on quality a little bit. the other one, but uber has ways to go in terms of quality. drivers arriving on time, knowing the city. because more of an edge they are supposed to be paying higher wages, therefore getting drivers that know the city better. these are tell tell stories in beijing, where people tell you where a lot of drivers come from far away. there is a lot of work to be done there. i think it is probably not true
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that they have knighted at percent -- they have 99% market share. emily: i did not the huge difference but i thought if we had gone to other cities it would have been more difficult. what do you make of apple's investment? >> i think it is probably a very smart move to get into the chinese market. that there is a government investment in uber in didi in china. you have a situation where you have a government investor and you have apple trying to get along with the government in china as well. there are common investors in the same company. then you have this interesting bidu and here of alibaba invested in the
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competitors. that actually compares to the part which is now apple and the chinese government . this is like politics at a very high level. emily: we asked about the relationship with the government and how open regulators are to the idea of a car sharing service across the country. take a listen to what she had to say. >> the chinese government has been more and more open to us. .upply issue is the top issue the chinese government understands we need to utilize the existing resource to put into the commute system so people can travel. emily: china's government has made it impossible for companies like facebook and twitter and google to succeed in china, could they do that same thing to uber? >> i think there is a huge economic need for this, there is anxiety in china about where the
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economy is headed and this is an industry creating a lot of job and that is to uber's advantage. it is not a media company, it is not about political speech, it is about transportation. i think uber hopes they will not be categorized the same way other companies have an. emily: as someone who has run a private company, do you think didi should go public or should they continue to keep raising money if they do not seem to have a problem. >> i think it depends on their international plans, whether they want to focus only on china or other markets. it also depends, what is the financing needs and the pricing they can get. they are supposedly burning both of them over a billion dollars a year. didi: even did is -- even is burning over a billion dollars a year? >> they are spending a lot of
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money, uber probably going over $2 billion last year in losses. for uber, it is more than just china. coming up, my interview with microsoft chair and investor john thompson and what he thinks of brexit. his advice for marissa mayer.
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emily: welcome back to the best of "bloomberg west." i am emily chang. we cannot leave without speaking to one of the greatest
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>> there is a shift in the industry why everyone is moving into the cloud so why shouldn't we capture that? if we invest more, how much more with the revenue be? that's a topic of discussion that we will always have -- are we moving fast enough to take advantage of this and routable opportunity? emily: how do you see the cloud wars playing out? >> if you look at history in our industry, what you see is an act category, typically there are two or three leaders in that category. ourselves in the interesting and lofty position
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of being the one or two that is the leader in the cloud space right now you can we sustain that and move further toward being the number one. can you do it? amazon is giving you a run for your money. >> they have a head start on us and we have more work to catch up t. can all of the other players who want to be number three, can they catch up? not just with microsoft that pass them. byare not going to sit idly and rest on the past success. we have to double down the company to make her that none of them catch us to we have a good chance of catching them in passing them. emily: you are a big investor so how crucial is cloud today? >> if you are a startup company,
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it has to be cloud-based. for a is looking perpetual license to model anymore. ago thatember years mark said i only invest in .nnuity revenue streams i thought that was odd in that was five or six years ago but guess what, that's what all the vc's are doing today. if it is not recurring revenue, they are not interested. once you capture that customer, this -- the sustainability is quite powerful. never say never but i don't think there will be significant in software ore hardware any longer. hardware will be necessary because all applications run on some hardware layer but proprietary hardware solutions? i'm not sure that's sustainable any longer. what about china?
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have u.s. technology companies cracked the code in china? >> i think you know the answer to that and it is no. we are all trying our hearts out to hold much as we can to our standards and principles but also find a -- a set of things that can make concessions to the chinese government that gives us access to the billions of users there. the standardsg that we have and the consistency we want as we run our business with the interest we have an having act tes -- access. emily: could india be a replacement market for china? >> no, it can be supplemental because one of the few growing economies in the world that you peoplereplace 1.8 alien -- 1.8 billion people. their gdp growth is still more than 3x hours in the u.s. so you
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cannot replace china. you can certainly augment china by having a stronger focus but you cannot replace it. emily: you are ceo of symantec for many years and they are going through another ceo transition. what do you think about what's going on there? >> it's a huge personal disappointment. i spent 10 years there and i thought we were on a very good path. obviously, we were not. i think it's time for not just the team of the company but the board of the company to do a little self reflection if we have made the right calls. if we made the wrong calls on people, have we made the right calls in ourselves? i think it's time for more self reflection than perhaps they are doing but i am not involved in the company at all. emily: what would you say to marissa mayer right now? >> hang in there.
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activist investors engaged in symantec replay. one of them was carl icahn. fortunately for us, because of the volatility of the stock, he bought low in the stock moved and he sold out. we never really got the public exposure, if you will, that marissa mayer has got. with a toughtarted hand that was dealt to her and quite frankly, she's to play it out. don't let an activist push you to do something you don't strategically believe in. to the extent or board supports her, hang tough. emily: this is an issue if talked about a lot which is diversity. that's when it comes to women and minorities. given how money years in this industry, where have you seen the most progress and where do you think there is still the
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most work to be done? >> some of the more established companies have clearly done a better job, older companies like ibm and companies like intel have done a terrific job of at least raising the issue and trying to do something about it. it ultimately comes down to the numbers, not the words. numbers do not necessarily support the words right now. i was quite shocked when i came to the valley in 1999 when everyone was so enamored with the fact that i was the highest ranking african-american in the valley and i said what the big deal. i now recognize that it is a big deal. we need to do a better job of diversity and inclusion. i think companies like microsoft and google are working hard at they've got to double down or triple down if they want to make real progress. emily: that was john thompson, microsoft chairman and investor. coming up, the company that
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reimagined the vacuum cleaner is after your hairdryer. for more of our best interviews, 1.0heck out our studio podcast.
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pioneeringn, the vacuum company is the middle of a transformation and wants to re-do the way we think about appliances. now they are up ridding a hairdryer. we spoke with the dyson ceo. this is a $400 hairdryer. why should i spend $400 on a hairdryer? >> when i turn it on, we can still talk.
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it is fairly quiet. >> what matters more is we invented everything about the hairdryer. the first thing is we developed a very small digital motor that is very powerful and creates air pressure and we put it in the handle. the weight is in the bottoms of my hands don't get tired and we put intelligent he control in because most hairdryers burnt hair. youries faster, gives smooth drying and i have three women in my house with a lot of tyson products but they would kill me if i took this away from them. you spent all the time of this technology. what else can you do with this? what other products can you reinvent? i don't really dry my hair that much. i am not your target demo. example because
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our engineers get frustrated about things and they want to solve a problem. when we looked at hairdryers, we thought nobody has really intelligently about it and if we took the technology apart and develop different motors, we could go to a different place. we did the same with vacuum cleaners. hours are battery driven and you not have a cord and they are light and powerful. fanse doing the same with and air purifiers. emily: fans, air purifiers, what else? of whate in the midst is the most exciting slate of dyson technology. later this year, we will earth -- release the robotic vacuum cleaner. it's connected so when you are on vacation, you can tell it to clean. can cleanr vacuum while you're not home? >> yes, we have 2000 engineers
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and are working with 40 universities. there is enough frustrating things left in the world that maybe we can find a solution. >> why did it take so long for someone to redesign the hairdryer? if you really want to come up with different technology, you need to take a foundational approach. i don't think others would do what we do. we developed a motor and spent $70 million on a motor and other developments only to make a better hairdryer. is very, very small, the fastest spinning digital motor you can have in the world and out of that coming can create a different appliance that is exciting. it makes all household appliances quieter. >> that is frustrating. we have a bit of work left. emily: you have filed patents
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with that or he is? what is the state of the battery research? >> we are very interested in batteries. the engineers getting frustrated about motor tech knowledge he. we knew nothing about motors but we thought we could develop better digital motor technology. we rely on the best conventional battery technology but it is limiting what our products can do. we are now investing in solid-state data retention knowledge he. findingthe aim of delivering significant energy density which means machines that can run much longer are much more powerful. emily: can you take on tesla? >> we are not commenting and will not. on whatantly get teased our engineers are working on. emily: coming up, he cofounded
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twitch and is now a partner investing in all things video. justin kahn is now taking pictures on snap chat and we will discuss. ♪
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emily: there is a contest for startup founders to send their pictures in with snap chat and 10 of the best ideas will be chosen. i caught up with a partner kate who came up with the eye via, justin kahn. beenl these people have reaching out to me for entrepreneurship advice on snap chat. emily: so entrepreneurs were pitching you? gethey were asking how i started and they were sending me pitches. it was a massive community of young people on snap chat. were andgo where they
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created a competition to see if we could source good companies. emily: how does it work? >> we opened up an application process for companies to apply. so far, we have received about 400 applications which is more than we were expecting. vc's are increasingly using snap chat. did you watch a bunch of those and say we should do this? decemberinto it in after years of having snap chat and looking at it from a product perspective, i finally got it. i started watching dj caleb. all of the companies present their final product and has been criticism that mo day is now picked over and all all
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the best deals are already taken. can you see this replacing demo day? not replace demo day. we will evolve have demo day works. dohink the companies that the best on demo days are not always the company that do the best in the long run. we see that time and time again. we are trying to figure out how to make it more. how might you evolve the process? >> doing something where there are more sitdown meetings. investors were able to better connect with companies more direct late. it provides them a way to do that. emily: what's your take on
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valuations? >> they are going down. there were mega rounds last year. since then, the investment appetite for vc's has gone down a little bit. they also closed pretty big rims but they are waiting to see what happens with false valuations. it's a slow deflate. nothing catastrophic or if emily: as the founder of justin , or what do you think about facebook live or periscope and snap chat and how does this shakeout? >> people clump snap chat together with facebook. i think periscope and facebook are more similar.
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we all have these mobile apps that will let people share video. they did not take off. the reason is because they are hard to get an audience. it with twitter and facebook, it's much easier for you to get an audience. emily: do you think facebook alive could steal a lot? changes its mind on what it wants to prioritize every six or 12 months. iss likely that while live really popular or facebook, it may not he in a year or two. they popularized video and all of a sudden, facebook feeds were full of video. now live is on everyone's feet
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so it changes. toebook has the power control kingmaker or whatever application. emily: what does it mean for twitter? >> i think the engagement on facebook is higher but periscope will probably do better than i had originally thought. twitter has been able to create other apps. are usingough people justin every day emily: tv became quite a success so do you have other at rice? it to twitch and it worked out pretty well. emily: selling to amazon for $1 billion? >> when we sold, evil thought it was crazy. all the metrics have doubled since we sold. viewersround 55 million now the last announced number is 100 billion -- 100 million
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viewers. it's probably higher now. my advice to entrepreneurs never sell your platform. emily: that does it for this edition of the best of bloomberg west. tune in every day at 6:00 p.m.
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welcome to "bloomberg businessweek." carol: the issue is now online. all that is just ahead. >> carol: i'm here with ellan pollack. >> you don't start, i have complaints of people on

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