tv Bloomberg West Bloomberg August 9, 2016 11:00pm-12:01am EDT
mark: i am mark crumpton and you are watching "bloomberg list. hillary clinton campaign officials are reacting strongly to the comments made in north carolina by donald trump. he spoke at a rally in wilmington. >> hillary wants to essentially abolish the second amendment. pick her judges, nothing you can do, folks. although the second amendment people, maybe there is. mark: the trump campaign said he was referring of the power of
second amendment people to unify and not inciting gun owners. is on trial,ident accused of breaking the budget law. met withpresident vladimir putin in st. petersburg , nine months after russia imposed sanctions on turkey for shooting down a russian fighter plane. he hopes turkey will restore constitutional order in the wake of the failed coup attempt. theresa may faces a long list of daunting demands from the 27 when the eu members time comes to negotiate britain's eu relationship. "bloomberg west" is next.
emily: i am emily chang and this is "bloomberg west." the lay of the land over at disney. the media's german joins the road ahead. clouds may be clearing oversold her city and elon musk surprises at the other end of the earnings call. how we explained tesla's acquisition of his cousin solar company. yelp's second quarter comes highly recommended. we will watch their dust walk through the latest earnings report card. elon musk joining the solar city earnings call as tesla prepares to buy up the company run by his cousin. solar city continues to lose money. shareholders will hold a vote on the $2.6 billion deal. they lost to your $2.32 a share. there is a strategic shift underway at the country. he is focusing on profitability rather than growth and he has
trimmed his forecast for the year twice since then. how did the report impact the future tesla division? i want to bring in our analyst with the bloomberg new energy finance team in washington and cory johnson our editor at large. we have been listening to elon musk on call in the important point to make, it is not that there will be solar panels that of the entire roof of the car will be solar powered. what do you make of his comments? >> you often talk about a new project. the most exciting part of the call -- emily: aside from his first appearance. >> he answered the first question with a nonanswer. he was asked, well linda was asked, the ceo was asked how
they reached the cost. the price of the deal fell very negotiations. the answer did not come from linda the ceo but came from elon musk. i was quite surprised to hear his voice, the cadence of his speech and everything. i think the most exciting part of the call was the announcement of a new product, the solar roof. there is also a coffee table. they do not really have a timeline, no release date for the solar roof and he said, we do not want to show all of our cards yet was his take on the solar roof. it was classic sort of elon musk saying, what we are announcing today is not important. what we will announce later is going to be really cool. emily: i hear you chocolate. is a solar roof so hard to imagine? >> i guess if it is on a car or a house. emily: it is on a car, right? >> maybe it could be on a mobile home.
it could be a mobile house. >> it could be a boat, a houseboat. emily: either way, ethan. you are the expert. is something like this not just possible but profitable? >> i drive a nissan leaf with a little solar panel on top that generates enough electricity to run the radio and maybe a little bit more but that is about it. there is the potential to put solar on the roof of cars but i would have to say the efficiency of a solar cell would have to go up for the dramatically to make it meaningful impact on the overall energy demand of actually getting from one place to another in a car. emily: ethan, what is your take on the acquisition in general? is this a bailout or is it a real grand vision that he should attempt to realize? >> there is a larger picture. certainly a lot of interesting trends in terms of the
integrated home and those who are owners of electric vehicles having an interest in having solar on their roofs so they can provide power to their vehicles from a renewable source. one can start to see some sort of synergy there but the ambition is really quite grand and i certainly understand why some investors who felt they were investing in one type of company may not be pleased to find out that they might soon be an owner in the company that has multiple visions and very different ones. emily: having heard musk explain his plan in the master plan that he release, does a deal make any more sense to you? >> if you look at the free cash numbers, we mentioned linda more focused on profitability, they lost $30 million more with the new focus on profitability over a year ago. if you look at the free cash slowburn, that is the worry. they only have $147 million left. this is a problem for the
company. they are going to run out of cash with the current pace of operations. tesla will give them more access to capital, perhaps that this is a company with a legitimate concern if they do not have access to more capital. emily: ethan, solar city is an industry bellwether. what does this deal means for the rest of the industry? >> overall, the small-scale solar industry is an interesting inflection point. we think this year there may be 3.5 gigawatts of new small-scale capacity installed in small commercial or residential roads. we think that is the same number for next year as well. in the short term you do not see a growth in industry but if you look further down the road, did you see at picking up and the next five or six years and certainly if you go into the next decade with solar cost coming down.
it is really a question of what is your timeline? how focused are you in the next 12 months and in the longer term? emily: talking about focus, they say they want to be cash flow positive by the end of the year. they seem to be making good on that goal, but is that the most important metric? >> survival is important. being free cash flow positive would be lovely for this comopany. i would say they are far from that goal of getting free cash flow positive. emily: cory johnson is sticking with me. ethan in washington. thank you as well. still to come, yelp shares surging. we are moments away from an extended conversation with disney's ceo.
♪ emily: yelp second-quarter earnings report is getting a star review. spiking as much as 10% in extended trading after revenue growth more an estimated. the outlook for the third quarter in our editor at large cory johnson still with me. yelp shares hitting new 52-week highs. >> it is a good quarter for yelp. they showed with profitability, it was very strong not only with the analysts, but underneath that, you saw a lot of progress in the company, 30% growth in
number of reviews in the site. 32% more advertisers on a yearly basis. you know, i am sorry, 32% more local advertisers. that is really important for these guys. getting a foot in the door for advertisers is important because you can then expand the business. we supplement metric standpoint, i thought this was important in the bloomberg team put together this great chart. it shows how much revenue grew per customer. yes, they are adding more users revenues per user is also increasing. it shows the value of the abuser is more valuable to advertisers. they are paying more to get to those users. emily: one of the overarching questions, how does yelp beat google at their own game? i want to turn to jesse, walt disney reporting earnings after the bell as well, the company wrapping up the analyst call.
we are standing by in new york with an interview with the ceo bob iger. >> thank you so much for joining us. the walt disney company had quite the announcement. your earnings, which you would like to talk about. as most people know, i used to work for you and when i worked for you, we used to have this discussion of content versus distribution. it strikes me that this is the first time you have made a major investment in distribution. is this a recognition that you also have to have distribution? >> that is a good question. i think it is safe to assume this is our largest investment in what you might call distribution. the way we look at it is it is an investment in technology. what we have been saying for more than a decade is our strategic priorities making great quality content and using technology to make the content
better. also, use technology to distribute it in more moderate ways, more ubiquitously, more effectively, ways that the consumer, possibly even enjoys it more is gravitating more toward it. that is what this is. it is safe to assume it is a distribution play. we view it more as a technology play and that is vital for the future of this company. >> for those of us that like to watch baseball, we are familiar with this technology. i have watched what mlb has done. i assume you would have not made this investment if you were not inclined in the direction of putting disney content on this new platform. when can we expect that to happen? >> well, the goal, first of all, we have been incredibly impressed with what major league baseball and bamtech have created. all of our due diligence proves we have been right.
they have raved about this product. that is content owners as well as consumers and we get our own due diligence. we used competing platforms and nothing comes close to what this platform offers. have a great product from a technology platform. the user interface perspective, i am a big fan of the mlb. it is a really great platform. we clearly are investing in this to use it as a sports platform and as we said, we are going to launch an espn branded service, utilizing rights bamtech has already acquired. this provides us opportunity to jumpstart other branded businesses in the directed consumer space, notably disney branded, possibly marvel and star wars down the road. we do not have specific plans. the platform does not, or the
offering design nor do we have a date but we believe this puts us into the business. >> is it safe to say that espn is probably first up as you get into this process? >> that is the business bamtech is largely in all the one of the biggest clients is hbo. hbo now is powered by bamtech. sports will be first for us. >> exactly. >> very exciting for us. we think we can launch a complement to the current business espn obviously participates in in a big way. >> you mentioned hbo. hbo now is now on the platform already. is it safe to assume that you may have competitors in the content business that would be potential customers of bamtech with you as an investor?
>> absolutely. this is a whole new world where individual distributors have gone into the content distributors are going into the content space, and content owners are going into the distributor space. we are looking at a marketplace that is so dynamic. there is a lot going on that is a little different though but we were used to when things were maybe kinder gentler are certainly much more simple. [laughter] >> give me insight into the relationship with the ultimate customer. does bamtech have the relationship with the subscriber or does the content owner? >> it depends on the nature of the business. with the espn branded service, we will share the customer with
bamtech. we will show the customer with them. that is a big step for us because most of the businesses we are and other than the themepark business and disney stores, our products are delivered through third parties. we do not know the customer. we do not know goes to the movie theaters, buying disney consumer products at big box retailers. this is an opportunity to get closer to the customer which platforms like this will enable us. we think that will have value in the long run. >> this is not the only over the top initiative for the walt disney company. you have directv, hulu. how do these all together in a comprehensive package?
>> i think you are seeing the emergence of a completely new form of distribution. i do not think i know. internet driven, over-the-top video services which provide customers with a lot more mobility often, even though the cable providers have found ways to do that. they have had their fits and starts and issues. this platform gives the ability of consumers to consume this video mobilely. they will take advantage of operating systems that have the ability to provide users with better navigation. i think this is becoming more and more the way of the world and is vital for us to be part of the platform. the over-the-top platform that
directv, at&t is going to lunch, directv now is one example of that. hulu plans to launch a platform later in the year, and multichannel platform. another example is what sony did a few months ago. another example with what dish has done. you also see, obviously, what is going on with internet video, netflix, of course, amazon. there is huge growth in the space. it is very important for us to be there and is important when we are there to have some control over our own destiny to the extent that we can. we are excited about this. now, i have say, as we said on our call in my prepared remarks that the multichannel or the mvpd is still a priority for us. we have taken steps recently to strengthen that. we do not want that. we do not want to going away and we do not see it going away fast. clearly, there will be a lot
more growth and over-the-top services over the next few years. >> the traditional view is not going away. i do wonder, with the various over-the-top initiatives of the walt disney others, what effect that maybe having at least around the edges on the basic cable business. are you seeing effects there? >> i think content is king. the platforms are only as good as the content they ultimately provide the customers. netflix is a good example. it is not about the technology platform, be content that they have either licensed or they created, house of cards a good example of that. as we and others migrate more content on these new platforms, more high-quality in the demand content, that it is safe to assume you will see growth and may be dramatic growth in the platforms. what we have concluded is that is a good thing for us,
particularly with the deals that we have negotiated likable be good with directv and at&t. it is essentially neutral for us from a revenue perspective for our content to migrate over for further customers to migrate over to the new service. it could be enhancing in the sense of the new service may provide the customer with a better experience and that typically results in more consumption. especially if they could be consumed seamlessly on mobile. >> you just came out with your earning statement and what i took away, you have had some modest growth in the cable area both on advertising and subscription, not so much a broadcast. i wonder about the overall track. let's take espn it has been in the news the last year. you said, it will continue to grow, espn obviously largely successful but the growth may not be as robust. what does the track look like? is a what you thought six months
ago or is that changing? >> no, it has not changed at all. espn has been an incredible growth engine for this company for the last 20 plus years. it will continue to be a growth engine but it will not be as robust. the growth will not be as high as it once was. you were looking at a business that has matured. you do not see great growth that we have seen over the last 20 years or so. rates and sub-fees are not likely to go up. this could be cyclical or is dependent upon consumption. as you look at espn, you have to conclude it is a great business for the company, large business for the company. it does have growth ahead of it but it is not going to grow at the rate we have been used to. now, at the same time, we have been investing elsewhere as a company. look at what we have done in the studio, particularly with the investments with pixar and star
wars and lucasfilms. the growth of that has created for the company not just the studio but consumer products, parks and resorts, looking at the investments we have made in parks and resorts, mostly shanghai just event. you see is a company where we have growth areas that become more compelling than they had been and we have some growth areas that will continue to grow but will not be as compelling as they had been. it is just that simple. >> you obviously had a remarkable quarter particular the on movie studios. before we touch on that, do you see a day when the over-the-top services will make up for the difference in the growth rate in espn? >> do you the over-the-top services offer consumers with a great user experience. some of these services will be lighter in nature in terms of fewer channels and lower costs. that may come at a good time because it may help retain
customers who have been customers of a multichannel bundle or attract new customers that may not have signed up to the current multichannel product because it has too many channels and the cost they deem too high. we think ultimately, it is a positive. whether it changes the time completely, we do not know. it is certainly the step in the right direction. as far as the quarter goes, you touched upon it. you have to consider the studio coming over 6% and 60% over the year and has delivered over $2.3 billion in operating income over three quarters which is by far a record for the company and it may be the highest any studio has ever earned in a year in the history of the business. we have a quarter to go. that is quite a performance. parks and resorts had a fantastic quarter as well, which given the start of shanghai is no easy task. >> as you say, and i think anyone that looks will say you have a remarkable run with the studios. the question, can you keep it
up, frankly? is there a franchise fatigue or even a superhero fatigue sitting in? so many of your competitors have struggled with these franchises recently. captain america hugely successful, finding dori, hugely successful. >> plenty come back to what you commented on before in terms of the run. when we bought pixar and 2006, we used it in part to bring disney animation back because it has struggled for a decade before that. then we brought marvel and then lucasfilms. we have released 29 films under marvel and lucasfilms brands. they have averaged about $800 million in global box sales.
that is not an accident, but great intellectual property and tremendous execution with people, real talent across the businesses. that sets us up really well as we look ahead and more films from marvel and star wars and is the animation and pixar, for instance. that comes back to the question you asked about superhero fatigue. we do not worry that much. we do not focus on much of what is happening at other studios or with other franchises. we are focused a lot on what we are making. that is that we are looking at every film and make sure you are in business with the best, most talented people and you have to manage the creation and production of those films in an incredibly hands-on and responsible way, a partnership with the creative community. the result, films people love. captain america a great example of that. we have marvel's dr. strange coming sometime this november, next year spider-man is being made as a sony release and then
thor at the end of the year and the guardians of the galaxy and then we are launching two new marvel characters. captain marvel and black panther. sorry, we have a lot of marvel characters. >> you have too many successful movies, bob. that is your problem. >> i guess it is a good problem. each one is produced with an eye for making that film great. we feel really good about them. as long as you make great films, the fatigue issue does not affect you. the audience is smart and knows all too well these days about the quality of a film and how it affects the performance. you cannot hide. you can run but you cannot hide. [laughter] >> that has been my experience
certainly. you personally take creative responsibility for the movies. what about the theme parks? what about shanghai? >> this is the biggest investment we have made outside of the united states and the most populous city in the most populous country in the world which was a 17 year journey for me from the moment i stepped foot on the property to when we cut to ribbons. i was obviously quite involved. we build something that was very large, very complex and unique in the sense that a lot of it is original product in shanghai disneyland. it open flawlessly. the reaction to it in china has been great. interestingly enough, visitation is come from all over china and is taking great advantage of
shanghai as a tourist destination, particularly in the summer. intent to visit is very high and awareness is extremely high. people are staying two hours longer purpose of than we expected which suggests the bar enjoying the product a lot. we had estimates, but we really were just guessing about how it would do because it is a brand-new product in a brand-new market but we are extremely pleased with what we have seen so far, well over one million people have visited the park since it opened on june 16 and the prospect of the business loves very strong, so much so that we have already broken ground with expansion. we feel great about it. >> bob, last question. give us some advice. we talk a lot about china and doing business with china in western companies, particularly u.s. companies in china. as you say, you spent 17 years and have had a lot of success learning to work with and really work with the most senior leadership with china. other companies have not had any
easy time. what advice do you have for others that want to go do business in china? >> i have thought about that question. i have been asked that a few times and it is not an easy answer. i am not sure any to situations are the same. we can to china is a known entity in the sense that disney is well known in china and not only an entrusted brand but trusted company. it took a commencement of communication, a lot of canned or, patients, perseverance and tenacity. there were many times when it would have been easier to full bartend and say, this is going to take too long or be too hard and yet we did not do that because we truly believed in the market and we believe at how our product would perform in the market. and so, we never backed down. we created a tremendous rapport with not only our partners that most of the segments of government from beijing to shanghai and ultimately, you
build up a trust where they believe what you are saying because you are speaking the truth and you have faith in them. and, frankly, as partners, they have been great partners to us throughout this process. my only advice would be, it is a big, complicated market as everyone knows. there's a lot in the market that is not meet the eye. you may feel you are a next her but there are a lot of surprises that come from a variety of different directions. not necessarily good or bad that they exist and you have to have real patients in real commitment to be there. i think the patients that we showed actually paid off because we paid in there but also we were respected for having that patients because it was not an easy deal to negotiate and it was not an easy project to build and yet our partners have been with us all along and i think we all feel great about not only the partnership we created but the product we created. >> quite an accomplishment. thank you for spending time with
us today. that is bob iger, ceo and chairman of the walt disney company. great to have him here with us today. emily? emily: david, thank you so much, a fascinating interview with bob iger. since you ended with china, i will start there. it is interesting to hear his comments on china because bob iger himself has met with the chinese presidentthis is advice to other u.s. ceos, apple comes to mind because of steve jobs never going to china and now we see cook's working very hard on building a relationship with china because it is simply such an important market. >> emily, it is interesting because i did work for what does the company. one of the first things bob iger did under my monitor was going looking at hong kong before shanghai. it was hong kong first.
he spent years building a hong kong park. he has spent 17 years on this project and shanghai. he obviously has established relationships with the chinese government, the officials. they know him and they trust him. this has not been easy and he admits that. it has taken a lot of patience and a lot of understanding and a tenacity of steadfast. emily: the shanghai park is a huge undertaking for them and there has been some skepticism around whether they can actually sustain the attendance. shanghai winters get very cold. i lived in china for a couple of years. the tickets are more expensive than other chinese parts. are you satisfied with his answer on attendance levels and a you think they can keep it up? >> i am sure he was honest. i think he would be the first to say it is too soon to tell.
as you say, ticket prices are relatively high given the business over there. also, there has been some question about whether people going to participate as much for the food than it would in orlando or los angeles. i think time will tell that. the disney company says this is worth a substantial investment, not only the billions of dollars but also the time and commitment. they think this is a long play. we have to remember, emily, when they went to paris was not a success. they had a lot of problems in paris that they learn from. this was before bob's time. they have had difficulty going into overseas locations for their theme parks. emily: david, you ran abc news for more than a decade. when it comes to disney, will it be investments and online television? what do you think is the most interesting take away from your conversation with regard to how they are balancing a legacy business and a new business?
>> it is a little bit like what i think venture capitalist do. they put a lot of bets in a lot of different areas because they are not sure what will pay off in what will not. that is what bob iger is doing in the over-the-top digital area. they have things that they are licensing out, the only piece of hulu, and multichannel colossi cable over the internet and they will now have an ownership interest in the platform, the traditional cable and they serve all of the above. this seems to be there strategy. they really follow where the consumer is going. the one thing i know bob always used to say, you never want to get between what the consumer wants and what technology will provide.
they will go right through you come over you, around you. bob, he has always been an early adapter and says, we have to be there for the consumer just to make sure they have access. i know from my personal experience with major league baseball, it is a high-quality experience to watch the baseball games on my iphone. emily: david, i appreciate the metaphor and i am sure our audience will as well. thank you, david. turning to another topic. that is impact investing, finding profitable ways to deliver low-cost basic services to rural and low income communities. a small team founded by venture investors aim to do just that. thank you so much for joining us. first of all, what makes a good social impact investment and how is it different from a consumer internet investment? >> the big thing to define social impact is a company that can improve the standard of living and access to opportunities for consumers. there are many different impacts.
that is our gold standard and that is what we look for. the most important criteria we have when we invest like this is to put consumers first. today you see a lot of conflict between shareholder interest and consumer interest. if you look at traditional industries like airlines, banks, especially, you see the conflict between what is best for shareholders and what is best for consumers. our focus is to put low income consumers first for the company and the goal of the company is to sell as many consumers as possible with the best quality product of service and build the company around that. for really good consumer internet companies, they should have the same agenda. there should be a shared interest.
in amazon for example, they would definitely share the same vision. not all companies are built that way. we enter the very active agenda and say, this is how companies should work, putting consumer interest first and that will create the most long-term sustainable shareholders. emily: one thing that is interesting, you are investing in things that people will definitely use but will need like energy, education not consumer products that they may or may not use. tell me about the specific kinds of services that you are focused on. >> what we call basic services as opposed to discretionary services, energy, education, access to finance. these are core products that
improve standard of living everywhere. we find companies that can take existing technologies and put together a product that creates access to that service. that means, taking something really standard like solar panels. how do you create an electricity service for rural, sub-saharan africa? using technology everywhere and developing business models around it. we have invested in companies that have electrified hundreds of thousands of homes and rural africa and india. they also work in partnership with local government because they have found ways to automate that product or service using technology and make it far more efficient than local businesses have been trying to do. emily: how do you assess risk and return and how might that be different from your traditional consumer investment?
>> that is a great question. it is not so much a function of a company's mission but the boat working in, right? the market has less money. if you are working in silicon valley where customers would pay a lot for convenience, if you are working in rural india they will not pay the same for that service. it is much more a function of the market than the business model often which means when you look at the kind of market we are operating in, our expectations for highly successful companies are lower than the expectations we have from that same kind of business model say in silicon valley.
what we do is we adjust our investment model to fit that. we make smaller investments and hence the return rate we can expect are similar to the market. emily: how is the organization structured? i would imagine in be different selling the social investment then the hottest news app. >> the people we work with understand how technology can obstruct a market and build affordable and she solutions and very expensive solutions. we are working with people that really understand that and are highly motivated to support positive innovation. they are very focused on a different kind of consumer then other investors may be. really, 99% comes down to the same basic which is, how do i do like my customer and how to build something that is cheaper
than the customer is willing to pay for it? emily: you are focused on india and africa and you actually used to work at sequoia. i am curious how the approach to india is different given that that is where so much potential is right now. >> sequoia has a much bigger presence in india. they are much larger. emily: on the question of india specifically, we see a sort of landgrab area of the amazon. amazon making huge investments there and you have so many u.s. tech companies that have failed in china but are looking at india as the next frontier. will they succeed where they have failed in china? >> that is a great question and it really depends on the organization designed within the
companies. amazon has done a fabulous job with the indian market. we have never seen a company do such a great job of entering a new big market before. they are adding $5 billion to the india market which is more than both of the competitors have raised so far. they are well positioned to beat competition. i think what is important to understand is how to do business in a large country that is very accepting of local businesses coming in. and he has a lot of english-speaking population so you do not have that much of a language barrier and they are very accepting of global trade and the ecosystem around it. there is a willingness to work together, but there is also an unwillingness to be left out.
you have to go in with that approach of saying, we need to partner with the right people and hire really talented leadership on the ground and an update to fit our existing business model to the local consumer so having more vernacular language options. whether that means there is a different payment model. it is kind of small innovations like that that you need to understand well and have a good policy in place to tackle. it is important not to kind of come up with a mental model that you think is best suited and try to go and force it on a market
♪ emily: looks like intel is continuing the trend. the chipmaker announcing it will by nirvana systems to better its chips for artificial intelligence work. the deal comes on the heels of a slew of tax files from walmart buying jet.com for $3 billion to apple's purchase of another company. joining me now is peter ahlstrom in tokyo. intel is buying a start up.
apple it just buying one. is this reactionary? >> we think they are forward-looking. we think ai together will be some of the most significant innovation accelerators for the next era of i.t. we are at the dawn of that era. we think there will be many startups coming out. what intel sees is the ability to build a chip architecture about powering next generation systems. there are a lot of companies that use the architecture. prices dropped and intel has to fuel some of the most advanced technologies and industry. they think that the nirvana architecture can allow them to differentiate in a way they have not been able to do before.
emily: these companies update ambitions and then they sell. is this the new ipo, the new hail mary? >> these cost a lot. when you think about the new regulatory pressures, the new pressure to grab customers and revenue, someone else is a platform and scale and you can bolt that on, you may be able to turn something that is not that profitable into something that is profitable. emily: do you see da's and tech giants whether it is alibaba, do you see them more acquisitive as well? >> certainly they are all very acquisitive and they have been stepping up acquisitions on an opportunistic basis.
there were a lot of startups that were funded last year and the year before that probably had hopes of going to an ipo and now the financing market has turned down pretty dramatically and those companies, if they need capital may have to look for deals instead of ipos. it is a little bit different here. we did have japan's messaging service go public a month ago. the stock is 30% above where it went up and that serves as a pretty good example of where these companies could go. emily: we have earnings coming up later this week. this is a company that struggle to return to the highs it saw post-ipo. is continuing to buy companies a good thing or could we see them pull back? >> well, alibaba has been trying to get beyond being the e-commerce company of china. now you see the china economy slowed down quite a bit and alibaba has made it clear its ambitions go far beyond china so
they made an acquisition in southeast asia, but another e-commerce company, so they are using this acquisitions to get beyond the focus market of e-commerce in china. they say they want to get 50% of the revenues outside of china. that is a long ways from where they are right now so they will have to do some deals to get there. emily: and what area do you see the most acquisitions happening, apple, google, facebook, any one of them in particular? >> i think when you look at apple, there is so much happening in ar and vr where apple is try to do things and making acquisitions in thei would expect apple, if i were to pick two areas, i would take those areas and they could make big moves, potentially picking a company like nuance. when you look at a company like facebook, it becomes different.
they have a need for cognitive and i would expect them to pull in those kinds of technologies. they have a need for developing new types of applications on their platform. emily: thank you so much for stopping by. great to see you in person. our asia editor in tokyo. thank you for waking up early with us. do not miss goldman sachs' chief operator. this is bloomberg. ♪
necessarily cut facebook spending but we use targeted ads only where it makes sense. p&g is determined. it is time to find out who is having the best day ever in the winner is, argentinian golfer. he arrived in rio with everything but his golf clubs. the delegation told him to take his frustrations to the local media and it worked. he initiated a series of tweets complaining about american airlines and losing his bags after a long trip that involved two separate carriers. he was reunited with his clubs later that night. this is it for this edition of "bloomberg west." we are focused on early investing and brian o'malley. that is all today.
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