tv Best of Bloomberg West Bloomberg September 24, 2016 6:00am-7:01am EDT
♪ emily: i am emily chang and this is the "best of bloomberg west." apple plans for a self driving car back in the driver seat. it does it tie up with formula one mclaren. liftoff for gopro, this week the , heany unveiled the drone explains why this is the product to get his company backed on track.
linkedin out in the first major product line. we hear from jeff weiner in an exclusive interview. a flurry of reports this week attending to look under the hood of apple's secretive car plans. people familiar with the matter say they are seeking a stake in mclaren, a british luxury car $200,000.rting at the financial times reporting that apple may want to buy the company outright which would likely be the biggest acquisition since the $3 billion by of beat. they deny they are talking to apple and the ceo said i can confirm eclair and is not in discussion about any investment. we also learned apple is on type lit motors and a bmw and audi are also in hot pursuit . if all of this is a secret, apple never acknowledged the existence of car plans, the so-called project titan.
we caught up with ed niedermayer in portland and mark gurman here in san francisco and another reporter on the phone from chicago. >> we know apple is in talks with mclaren for some sort of sure if you dig investment that would mean bringing cash into the business, taking a percentage of the company and this would allow apple to really choose one of two paths they are considering for a car, either building their own or partnering with another automaker. by partnering through an investment with mclaren it opens up the door for future apple mclaren tieups. emily: lynn motors is interesting. we looked at this company in 2014 and interviewed the ceo, it is an electric scooter. why would apple want a scooter company? learned that they are really proud about the patent
portfolio and have over 10 patents specific to self driving and one of the components of the project titan car project is a self driving system so the company and the patents and their engineering resources and people would be able to assist apple with that. if your building a self driving car the system behind it is critical. emily: of all of the carmakers mclaren is not electric or not into mass production, what do you make of both of these potential deals? been movingas toward electric and hybrid technology, so that is part of the picture here. i actually think this is interesting because apple is not getting into cars to be another car company. if they are going to make this giant step into this challenging and intimidating business they a fresh sheetwith
of paper and be able to bring a new value proposition to mobility rather than just making a car. with both of these companies reflect -- the fact that apple is interested in them looks at a long-term thing. do not think apple wants to put their badge on mclaren or make a virgin -- version of this self driving motorcycle. r&dink they want to -- capabilities because they want to take a high end cutting-edge approach to their own vehicles, whatever they end up being. emily: there is obviously a lot we do not know, how are you sizing of this news especially are athat cars in general low-margin business and we have no idea what apple is working on. >> good afternoon and thank you for having me.
i come from the world of stock and the gross margins in the profitability is something that i focus on. you are absolutely right. short of apple getting out in ownl-blown -- a full bl car, i think any other initiative that would help the margins and help the top line would be welcomed by me and my peers. i think ed touched upon interesting ideas and i agree thet the ip about technology and remember when we step back and look at what is happening in the models of these cars i cannot think of any particular sector of the global economy that is -- where we have seen amazing transportation -- transformations, whether self ,riving, infotainment intelligence, i cannot think of any other thing.
i think apple is putting a stake here and they are looking at it over the next 5-10 years and is the other gentleman pointed out, you could have some very interesting and almost innovative outcomes beyond our noble -- normal sense of thinking of a typical car. emily: there has been a lot of people within the organization at project titan and we reported on layoffs and that perhaps plans have changed. what is the latest we know in terms of what direction apple is really going in here and the status of -- the status? mark: when apple started working on this a few years ago between 2013 and 2014 it was run by steve sadowski. he came to apple and worked on many iphone, ipad, ipod generations and he was focused
on building a car. mansfield who retired, he returned among sadowski leaving. he was focusing on three components, sensors, hardware, and software. with those components you could see apple building a car platform rather than just a car and now under mansfield's leadership apple has two different roads. they can make their own car start to finish or build a platform to sell to other automakers. we do not know what apple will ultimately do and that will be exciting to see in the years ahead. emily: thank you so much for weighing in. turning now to a story we have been following eu competition commissioner is meeting with u.s. lawmakers defending a controversial state aid ruling that would require ireland to
collect more than $14 billion in taxes, apple. istics say vestager's unfairly training her sights on u.s. companies. i do not have control over taxation. what we do is to enforce legislation that goes back to 58 because our founding fathers thought we should have merger control anti-test and saving in order- anti-trust to have a level playing field. >> why is the estimate will -- so different? margrethe: the numbers we have are obviously apple's numbers, we build on the information we get from the company. i hope that we will be able to publish as much of the decision
as possible, it is now in the hands of apple and ireland if they want to redact some of the things in the decision if they .ind them to be confidential i think it is best for everyone to put out in the open the decision because then you can check as well as anyone else. david: i wonder how difficult it is for you to get your hands on data from companies like this. how forthcoming are companies with data like this? margrethe: one of the ironies is it started with a question asked in the u.s. senate because before then none of this was public. state aid control has been public ever since the beginning of the secret was the apple data .nd the two taxes in question david: what has the level of dialogue been like been like -- between your office and apple? margrethe: i would say it was
frank. works as a relationship between us and the irs government and -- irish government and the corporation has been constructive and open. we disagree on the result of the decision, but to enable the corporation to take place i think they have been accommodating. david: are there other companies that could face penalties like this or larger? margrethe: the size of the unpaid taxes is a reflection of the size of apple. if you had smaller companies it would be a much smaller number even if they had done the same things. david: you met with jack lew and you said it was a good, frank discussion of the treasury department submitted a white paper ahead of the decision and wrote a letter to the commission as well. are you optimistic there will be middle ground with the treasury department and how it you characterize your relationship with them right now?
margrethe: i think we will continue to disagree on the decision also because of the fact that we have very different legal traditions. i have learned that in the u.s. it is absolutely the order of the day for a business to negotiate tax breaks with the state where it is situated and we had the provision to do that back since 1968 so you have a clash of understanding about how this should play out. emily: that was eu competition commissioner margrethe vestager speaking with bloomberg's david gura. the right hailing app grab bumped its evaluation north of $3 billion. this is the largest ever funding round for a southeast asian consumer tech company and the latest example of how asian right hailing services are aiming themselves to fend off uber.
staying with car tech, china's internet conglomerate raised money to create the first sports car. last month another company called wmd motors said -- wm motors raised money to challenge tesla. ceo jeff weiner is announcing linkedin learning this week. in india, oracle's first -- next frontier. the ceo tells us about her ambitions for that growing market. this is bloomberg. ♪
thought this was really aggressive would we got started. we spent the last few years going out and talking to dozens of top scientists and experts who believe this is possible. emily: surprised guest microsoft cofounder bill gates appeared on stage to support the program. mark zuckerberg and facilitate and pledge to put 99% of their wealth toward philanthropy. falldin help the big product launch in san francisco this week, the first since microsoft snapped it up for $26.2 billion and they announced it is getting into the education business introducing linkedin learning, it will bring training classes to the user base and i caught up with the ceo jeff weiner in an exclusive interview after the announcement and asked about coming integrations with microsoft. jeff: helping our members stay
connected and inform is one of our value propositions and that is the foundation of our flagship application both mobile and we will be redesigning the desktop as well, investing aggressively and creating the most relevant news feed possible . messaging makes it much easier for people to keep in touch with their network. people reach out with the people they want to do business with and that overhaul relative to the prior inbox we have seen very material lift, over 240% year-over-year growth so these things compound to lift engagement. emily: what is it like to plan for an integration like this? jeff: there is a lot of clarity of the value that can be generated. some of our business to integrate that as seamlessly as possible on top of microsoft's footprint of north of one billion users, only a handful of technology companies reach over one billion
users. we have been working with the outlook team, the windows team, the dynamics team to think about what is possible and prepare so that when we close we can hit the ground running. emily: what should we expect to see first? jeff: i would not predict first in terms of chronological -- order, but the areas we think would make the most sense is integrating linkedin identity assets with the phone. calls, if you are familiar with them you can see if they changed companies or what they shared recently, it brings the inbox to life. there are things we can do in terms of windows integration with the activity center and notifications and we would love to integrate learning aspects into windows and office and dynamics with regard to differentiating business
applications that are generating real momentum on microsoft through leveraging sales navigator, thinks he can do with recruiter in terms of human capital management, those are the areas of focus. emily: the idea is for linkedin to remain largely independent sort of like facebook and instagram. had he expect this to work in practice and to affect the culture of linkedin? jeff: from day one it was said it is important to continuing to grow linkedin and accelerate the mission and vision in both teams are aligned behind that objective and that makes it a lot easier. it is also made easier -- to your point about culture, that goeslot of times where m&a off the rails because you have two companies with misaligned cultures. a bash sattya has been very
mission driven in terms of creating a sense of openness and the speed and agility required to make that happen. we see a lot of alignment along those lines. emily: this deal surprised at the markets and a lot of people and you managed to keep it under wraps, a kicked off a wave of m&a and speculation about more, have you have executives thinking about you -- have you had exacted -- executives coming up to you reevaluating their desire to stay private? --f: i do not know the can that the consolidation played a role on that, we remained private instead of going public and their is a debate -- that is a debate that goes on and off cyclically. in terms of increasing consolidation i think we will continue to see that trend and i think it is less about public and private and more about the competitive landscape and the
importance of scale over time. emily: where do you see more consolidation? you are the first big social network to go for m&a and there is a lot of speculation about twitter. where do you see more? jeff: i would look more at the acquirer front than the companies being acquired and you have a lot of activity taking place within enterprise and i think business applications will increasingly be used to differentiate these cloud offerings. i think innovation there and some of the consolidation will be good for all customers. emily: our exclusive interview with linkedin ceo jeff weiner. coming up the u.s. government paves the way for driverless cars to hit the road. we discuss where innovation goes from here at a special programming note, bloomberg is teaming up with twitter as the exclusive streaming partner for the 2016 presidential debate starting with the first debate on monday.
♪ emily: the u.s. government is paving the way for automotive vehicles to hit the open road. a framework from highway regulator says cars will need a 15 point checklist of safety features. in an op-ed for the pittsburgh is that president obama threw his weight behind driverless cars as a way to save tens of thousands of lives saying that 94% of traffic related deaths are the result of human error. we caught up with mark rose guide on the new guidelines and bash how they will in short driverless cars are safe when they hit the market. mark: if you look at the policy we released today the first part is guidance with a 15 point
safety assessment. it literally lists the 15 areas we expect manufacturers and designers to look at as they deploy these vehicles. we are looking at trying to build safety into the front end of the design rather than the usual department of transportation -- which is reactive and only waits until someone gets hurt or killed. this is a new proactive approach. emily: it is interesting because the companies making the cars have different views on what is safe. tesla is pursuing a semi-autonomous model while google believes that can be confusing and is pursuing fully autonomous area do have -- do you have a view on what is safer? >> you just represented the full range of innovations out there and we are so early in the development of this technology that really nobody knows what will be the safest and that is why this policy basically identifies certain performance expectves we
manufacturers to attain although we do not tell them to get there and we are opening them up for all kinds of innovation to look at new safety mechanisms to save lives and we are waiting to see what will be the most effective. emily: at what stage will regulators need to tackle aspects that go beyond this like insurance and liability and who is at fault when something goes -- goes wrong? mark: the second part of the policy addresses the states that are responsible for the human part of the driving, they have liability insurance concerns and there is a recommendation to start a commission that will look at liability insurance for how the state should address that issue. emily: how pervasive do you think so coming technology will become? evasive hope -- hope because it represents great lifesaving potential and we already have these different levels and we love to say it is a great future, but it is being
created in front of us. we do not really know what the future will look like, it is truly being designed and innovated right now as we experience it. emily: wendy is think it will become pervasive? do you think the driver's license will become obsolete for example or if so how soon will that happen? the pervasive part i hope as soon as they become on the streets so we can save more and more lives and i am not sure driver's licenses or people who want to have their own hands on the wheel with the top down on highway 1 in california. i am not sure that will ever go away. emily: how involved are companies like google and tesla and help -- shaping the guidelines. did you consult with them and how often? mark: we had an open public meeting in washington and in open public meeting in silicon valley and stanford, california and we had almost 50 speakers and dozens of people who
submitted stuff to a public docket. we interacted with safety advocates, tech companies, academics who do research, a wide range of people. the other part is the policy out and we have a 60 day comment. -- comment. period. and other steps over the next month to make sure we annually update the policy. amily: that was nhts administrator mark rose kind. chinese hackers managed to break into the model s control system and taking over the car locks number breaks, and turn signal and winter wipers and the company set a realistic estimate is the risk to the customers was very low although this did not stop us from responding weekly. tesla said it took 10 days to fix the security vulnerability. a is unveiling the long-awaited camera drone this week, is it
♪ emily: welcome back to the "best of bloomberg west." i am emily chang. gopro unveiled a host of new products including the new consumer drone. it will go for $800 and fit in a backpack and come with a gamestop controller to show the live feed of the drone i view. why is this a big deal for the company? the release was postponed once already and the hero 4 was criticized for being late to market and overpriced. gopro shares are down 80% from high ander 2014
analysts have been viewing the product event today is a pivotal moment. we sat down with gopro ceo nick would been and asked him how the throne will help the business move beyond amateur footage. >> one of the things gopro is known for is versatility and i think the same for that benefited the sales of cameras will benefit karma and that is our customers buying and using products to accomplish things that we have not even dreamt of and we expect the same for karma. emily: talk to us about these cases that you foresee. nick: obviously consumers will have a blast using karma whether or handheld footage mounted tofootage their body while they are skiing or biking they will be able to capture their lives with professional stability they are
only used to seeing in film and television and i think we are entering a new era of high quality consumer generated content and it will be very exciting. already gopro's have one emmy's for their contribution to television. before, i think that karma is so capable and a versatile it -- whether you are capturing aerial footage, handheld footage or mounting karma to a vehicle or a bike or a piece of equipment i think we will see people using karma to in thehock absorbers automotive injury -- industry so they can improve the performance of those products. karma will be used for a ton of interesting applications. emily: what are your expectations for sales? hundreds of thousands of units -- millions?
i thinkme will tell, that karma hits the sweet spot with existing gopro customers. we have millions and millions come over 20 million gopro's sold since the introduction of in 2009 and,hero is compatible with hero 4 cameras and i think we have a terrific installed user base that will get a lot of functionality and use out of karma and we also think it can -- we can expand the market and professional capture both in film and television production and the industry as well. emily: there have been concerns the action camera market is sony, polaroid, better camera on the iphone, how does that impact expectations with the hero 5? nick: the truth is the consumer rate of purchasing gopro from best buy, target, walmart, the
rate that people are buying gopro has never been so when people say the demand for go pro is waning and the market is saturating, we just don't see that in our business. thatmers by the hero for are two years old. when you consider a hero five can upload to the cloud. there are so many additional benefits to the user. we're feeling good about it. >> doesn't make you worry about >> it is a tech
spec. what a consumer is really after about the story they can share. it's now an end to end storytelling solution. it enables people to automatically upload to the cloud. quickly create a story they can share. >> there was a lot of was around go pro as a media company. is that still your strategy? >> the vision remains the same that as we enable people to regularly capture and share go pro is a brand by the people for the people.
we think our prospects are directly linked to that. the result of that is sharing at larger volumes. the vision remains the same. >> as a potential acquisition target that google might be interested, apple or sony -- is this something you given thought to? >> not a lot. itthere was an opportunity -- that helped us accelerate our vision, that might be something that is but we are doing such a great job of executing against
our vision ourselves. >> products that are patented, how do you think about ip in general? robustave a really program. is something that we relied on. we are very proud about the momentum we're making. >> would also you doing to address it? out teams that are capable. they are trying to eliminate the
desktop pewter from the editing equation. they want to edit and move on with their lives. and we also have quick sd card readers for phones. it produces really compelling video. ethically done it. >> oracle is doubling down on the cloud, proclaiming amazon's lead is over. our interview with mark hurd next. ♪
>> oracle is betting big on the cloud. it made a slew of announcements to compete with the amazon cloud business. larry ellison proclaimed amazon's lead is over. cory johnson spoke with mark hurd and let's take a listen. >> because of cloud, we get a chance to go into what you might think of the midmarket of force that we never would have had the opportunity to go into. you have these companies that have the opportunity to get the best. they don't need a data center. it started with the same technologies. we also spoke in san
francisco. >> india is a phenomenal opportunity. i personally believe the potential for us is 10 times what it is now because the market is so enormous. the chief minister said the state alone had 100 10 million -- 100 and 10 million million people. it is just an enormous opportunity for us. >> i know you have been there personally and you put a lot of effort into this. there something about where
oracle is focused on the cloud and were india is now that it can happen now? >> with cloud technology, you can deliver much more quickly at a much lower price. you can scale fast. they are on a very short timeframe. chief minister wants to have things up and going. us, we can get everything going in the next year and be delivering to the citizens right away. additionally, it allows you to benefit from the massive economies of scale. not only the global infrastructure but of india. that infrastructure in that size. the match between what they need to do in the technology we bring is a perfect match.
the imagine the size of business is different. >> can handle industry from all sizes. very small farmers and remote villages and very -- all the way others. we can scale to both sides of the cloud. >> there is also a governmental digitization strategy. >> what got me started is the prime minister came here to talk about digital india. i saw a real vision and real ability to bring everyone forward. i met with the prime minister.
unity.saw was real they were going to make it happen. oracle embraced us. of software world now, is the database the center of that? i realize i'm asking the ceo of oracle -- >> that is where all the big things goll of these somewhere. oracle,oracle -- four we have all the analytic tools. though it's our foundation, it's not all there is. there are technologies that
enable your mobile phone, enable analytics. emily: ahead of the $4.8 billion acquisition, they confirmed their personal information was stolen in a 14 -- 2014 attack. they believe the attacker is state-sponsored. it includes names, e-mail addresses, passwords, possibly security questions and answers. yahoo! said it was aware that reports of data from 2012 were up for sales on the dark web. verizon said it was just told of the data breach and it has limited information and understanding of the impact. we caught up with the head of
research. in the cofounder of tinfoil security for more. >> this is the largest number of records stolen in the history of the internet. we say that it took two years to figure it out or find it. when you have a state-sponsored , they are good at hiding their tracks. builds as much as they can and sells it as quickly as possible. a state-sponsored attack, their motives are presumably not to make a quick buck. they are good at hiding their tracks and persisting. find this out until you accidentally stumble upon
it. the fact that they found it now is a good. whether or not they are still in the network is still up for debate. notoesn't mean they are there. what do you make of that contradiction that there is no evidence of a state-sponsored attack? i agree with the other guest at this point. everyone says there was compromise by a state-sponsored attacker. yahoo! knows more than we do at this point. it is a common thing to claim to absolve yourself of responsibility. i would go a step further and say the network is probably still actively compromised.
there are attack surface is infinite and it will be impossible to ensure anybody that whoever compromised the network is completely out. do you believe that there may have been some sort of negligence involved or that this could happen to anybody? companyn happen to any and there is a certain amount of truth that you can't really defend yourself from russia or china. google succumbed to a chinese sponsored attack. i would not say there's because itinvolved is almost an intractable problem . they can outspend by orders of magnitude and they are just going to win. it's unfortunate yahoo! has
>> we make the most orders in the world. we have done this for many years. we have the capital needed to do it well. this would never be the key for uber. and we have the benefit of being targeted and specialized in delivering food. >> a city like berlin or germany , is it to -- >> it is hard for someone to come in and that stage and make it sustainable and profitable.
>> it is important for us to make sure we don't lose what we have. it provides a very healthy dynamic with a very good investor. >> when you look at rocket internet, is it a force for the future? >> delivery has become a very important part of their business. the financials make it very hard for them to tell what we do. of course, it is the most important asset in the portfolio. there is a position at the time
to go public. ?> you won't have to knock down >> we have grown percentagewise. and remove their profitability. i think it would be very strange. it is more an opportunity. >> an opportunity to raise funds? very close to the profitability asset group. continuehe position to to run a healthy business.