tv Bloomberg Technology Bloomberg June 20, 2017 11:00pm-12:01am EDT
alisa: i'm alisa parenti from washington. you are watching "bloomberg technology." let's start with a check of your first word news. elgin media reports a person wearing an explosive belt and a backpack has been neutralized at a train station in brussels. people reported hearing sounds of an explosion. officials say it is too early to say whether this is a terrorist incident. calling this incident a disgrace, president trump is laying blame for the death of otto warmbier firmly on north korea. mr. trump spoke in an oval office meeting today with the president of ukraine. he says warmbier's death would have been avoided if he had been brought back sooner. the 22-year-old came back in a coma. the cincinnati coroner's office is investigating.
meantime, poroshenko and vice president mike pence had a drop in with president trump and h.r. mcmaster. trump is expected to meet with vladimir putin next month. poroshenko relied heavily on obama's administration after russia annexed crimea rep. officials say voting at polling stations in georgia is going smoothly. karentter runoff between handel and john all sauce in georgia has become a less expensive house campaign race -- off has become the most expensive house campaign race in history. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti. this is bloomberg. ♪
emily: i'm emily chang and this is "bloomberg technology." coming up, jack ma played his trump card. the alibaba founder delivers on a promise made to the president to create one million jobs in the usa, starting with small businesses in detroit. plus, the inside track on the trump administration's plans to protect. insight from the founder of code of america, who was in the room alongside tech's biggest heavy weights for the first meeting of the american technology council. uber's tipping point. why the embattled startup thought it was time to finally let passengers reward drivers for service. first, alibaba is pulling out all the stops for u.s. business entrepreneurs. the chinese e-commerce giant is kicking off a two day event in detroit, michigan right now, drawing in thousands of u.s. business owners and aiming to learn how to succeed in china through alibaba. for the company's founder and executive chairman, jack ma, is
following through on a promise to president trump to create one million jobs in the u.s. earlier this year. he is also trying to lower -- lure small businesses to trade 10 million on his e-commerce site. joining us from new york, the cofounder and ceo of a consumer intelligence firm that works with clients in china to provide research on chinese consumers. we also have a partner at leading-edge capital. that includes alibaba in its portfolio. brian, what do you make of the fact that alibaba is holding a conference in detroit, of all places? >> i think it's great what they are doing. i think they are trying to get out to american businesses, small business owners, farmers, and agriculturalists, and trying to educate them on the opportunities in china, which are massive, and also get them to sign up on alibaba. they say, look, you have been selling in america for a long time, but there is so much
opportunity in china and the economy is growing so much. you should bring business here and start exporting here. there are a lot of chinese consumers over the last 10 years with the rise of the middle class looking for interesting products produced in america. it's a great potential marriage. emily: is the demand actually there? >> that's a good question. i would separate the demand from the supply. i think there is a demand in china for american goods. we have seen that repeatedly. the question is, where will that supply come from? i think the conference is great marketing, it is strong politically when you think about beijing and washington, d.c. and playing to both constituencies. as a matter of practicality, i don't know how many of these small businesses will be successively selling on alibaba. however, there is demand from chinese consumers for foreign goods. emily: what do you make of that as an alibaba investor? >> i think they have to position
themselves for the long term. maybe within the next six to 12 months, they don't have as many u.s. based sellers on their platform, but this is a longtime play. when we think about the business, where we get excited is, what can they do over the next 3, 5, 10 years? if you look at some of the projections they made, they were talking about doing that $1 trillion in gross merchandise value through their platform by the year 2020. that is three years from now. i think some help they could get from american suppliers would help them reach that goal. i have become very excited, and i would agree with my counterpart that most certainly it might take a little time, but over the long term, i think this is certainly an opportunity for the company to capitalize upon. emily: your counterpart, the other brian, jack ma promised he would create one million jobs in the u.s. can he deliver on that promise? >> if we are looking at a 100 year timeframe, i think he could. [laughter] i don't think in the next three to five years.
the math doesn't work in his favor. that being said, there is a lot of trade that could obviously have been. -- happen. when jack is doing is trying to open up the u.s. market to alibaba more prodigiously than it has been. he's trying to get this brand in front of small businesses and try to make it more acceptable in the eyes of the u.s. chamber of commerce and other groups who have been battling with alibaba and the issues they've had regarding, for instance, counterfeits. emily: amazon made big news by agreeing to buy whole foods. alibaba has been investing in grocery for several years now. do you see alibaba and amazon now clashing on a new battle line? >> to some extent maybe, but they are doing this in very different geographies. when you look at what alibaba is doing, it is primarily in china, obviously.
i don't think amazon has any plans to get in there, but who knows? amazon's takeover of whole foods certainly will make for a lot of interesting dynamics, but i don't necessarily think they are competitive head-to-head. i think they are learning from one another's strategies. you see that across the board. they have gotten into payments, media, cloud, so certainly they are learning from each other, but they don't directly compete in the same geography. emily: brian buchwald, there has been concerns about alibaba and amazon clashing more broadly. will that ever come to fruition, or no because of the geographic limitations? >> amazon has had ambitions in entering china more aggressively. they looked at different paths as alibaba has looked out of china. alibaba has found greater success looking at the rest of the asia and other non-us centric markets.
if you look at what alibaba is doing, it is taking the walmart approach. they are looking at more mass brands and investments in companies. they have been much more about discount marketers and large scale supermarkets, not whole foods of the worlds. alibaba is a marketplace where amazon is the retailer taking principal risk. you could almost see amazon succeeding on alibaba with whole foods selling into china more so than the two of them really competing in china, at least in the near-term term. i just don't think amazon is the competitor that tencent is for alibaba in china right now. emily: brian neider, as an investor in alibaba, do you feel a threat from amazon? >> certainly not. there are a lot of other companies doing well in china. certainly tencent and jd.com are the ones that come to mind.
today, amazon has not really played that to the extent alibaba wants to move into the u.s. and is bringing u.s. based sellers into china. i could see them becoming a little overlap. but to this point, not really. again, because of the geographical diversification. they learned more from one another than they compete with each other. emily: brian neider, and brian buchwald, cofounder and ceo of bomoda, thank you. jack ma is expected to speak at this conference in detroit. we will bring you headlines as we have them. adobe just released second-quarter earnings, beating analyst estimates for sale and profit, proving again that switching to a cloud-based subscription model for its digital media and marketing software is paying off. adobe forecast revenue in the current quarter ahead of the average analyst estimate, suggesting it is fending off competition from salesforce and oracle.
adobe shares are gaining in late trading. if it posted wednesday, the current level wil mark a record high on the stock. coming up, big names in tech at the white house. we hear from code for america's executive director, who attended the meeting alongside apple's tim cook and microsoft's -- satya nadella. this is bloomberg. ♪ emily: u.s. treasury secretary
bloomberg television. >> i think we have been pretty consistent in saying we are working every week very closely with the house and the senate to have a joint plan when we come out. the idea is to get us all on the same page so when we release the combined plan, it will get past. -- it will get passed. it will get passed by the house and the senate and the president will sign it. it is our focus to get it done this year. it's critical to the economy. we are working every day to get that done. emily: he also says the administration is committed to unlocking the economic capital to create jobs, better wages, and getting growth above 3%. tech leaders say the u.s. government needs to modernize, after president trump's senior advisor and son-in-law jared kushner held a summit at the white house on monday. apple ceo tim cook was one of the tech titans in attendance, and commended kushner's steps in getting the government equipped with the latest technology. >> the u.s. should have the most modern government in the world, and today it doesn't.
and it is great to see the effort that jared is putting in in working on things that will pay back in 5, 10, 20 years. emily: for more insight on the tech summit, we are joined by code for america founder and executive director, who was in the room at this meeting and attended in washington, and served as deputy chief technology officer under president obama. great to have you. how productive was it? >> to the credit of the people who organized the meeting and the tech ceos, there were breakout sessions on substantive topics, things people don't normally put on the news, like procurement reform, how to get the government into the cloud, and digital services for citizens. i saw most of the tech executives went to sessions that i was in and had a pretty substantive dialogue about these issues. emily: you worked in the obama administration. give us color from the room. what did it feel like?
>> to the credit of the people there, it felt like the people who have come into the white house since obama left have looked at what i and many other colleagues did to say this is how we are going to modernize government, and yes, let's continue and accelerate that. i think they are doing a good job of strengthening the u.s. digital service and technology transformation service, which are two units that do great tech for the american people. that's good. i'm happy to see them doing that. they have a long way to go. on the other hand, they are doing this in the context of an administration whose other actions don't necessarily represent what is best for the american public, if you talk about services. emily: let's take a listen to what microsoft ceo satya nadella
had to say to president trump. >> all the technology we had to say, because it started in government and recent institutions you funded, as well as enlightened immigration policy. of course, i'm a beneficiary of that, and i hope we continue to really make sure the american competitiveness is what helps us set policy. emily: immigration has been a hot topic for president trump. how did he respond to that remark? >> i don't recall what the president said to that remark. i also know there was a lot more probably said behind closed doors. they had five breakout sessions per slot, and i was not in the one on immigration, although i was glad to see it on the agenda. emily: did president trump seem receptive to what was discussed? >> president trump certainly responded to those tech ceos. i would really look, i think, more towards what the tech ceos are saying to each other and how they will hold the president
accountable, not just the things about modernizing technology, but modernizing in the service of what? they should be in the services for the american public, and a are going to have to stand up and ask those questions. emily: you posted ahead of the meeting and talked about why you were going. he said politics aside. why did you think it was important to be there, even if you don't agree with the politics? >> of course. there's politics, and then there's governing. governing is our problem, we have to get involved if it is going to work well. americatizens and code and we at the tech industry, we have to get more involved if we want the business of government to work. it doesn't work well today. try applying for food stamps for , instance. if you want to do it online, it's good that is online. until recently, it is almost an hour online. 50 screens, hundreds of questions, doesn't work on a mobile phone. we have shown you can do that in seven minutes on a mobile phone,
including uploading documents. it is not just that it's a burden on the user, it's a bad outcome. food stamps is one of the programs most highly correlated with better health and education outcomes for kids. when we have half of our population in the state not on the program and half a could be on the program we are missing , out on the benefits, and will cost us a lot more later when we have to intervene. emily: as the former deputy cto, what are the biggest challenges you will run into modernizing government? >> the biggest challenge is getting the talent they need. there are amazing public getting the talent they need. servants already working in government, most of whom came under the previous administration. shout out to those who have come since then really said as one , person replied to me on twitter, "i'm going in because if our government is a house on fire, i'm going to run towards it, not away from it."
some will continue to go. there are also wonderful people who have been working in government to do this for so long, but we really need to keep that talent going. it is harder to do it when people don't agree with the policies of the administration. emily: you started an organization called code for america. this issue came up, tim cook even spoke about it. what is at the top of your priority list? >> we are trying to prove government services can work for all people equally with dignity, that government can work the way it should in the 21st century. we are trying to reframe the conversation from modernizing to making it work for people. i think we can do that not just by speaking up at meetings but by following up and showing it can work and asking everyone who works in tech to pay attention get involved, support government , when it's doing the right thing, and hold it accountable when it's not. emily: jennifer pahlka, founder of code for america, thank you
emily: amazon wants to dress prime numbers. they are making prime wardrobe, a company that allows customers to test wardrobes for a seven-day period. they are using a twist on the subscription box phenomenon as part of a broader effort to compete. they had their own stable of fashion labels to sell items like suits, dresses, lingerie. according to a poll by bloomberg, amazon could overtake macy's as the largest clothing seller in the u.s. this year. the legal dispute between apple and qualcomm is ramping up, and apple fire the latest shot. and in filing, apple claims
there's mounting evidence that qualcomm's operating an illegal business model designed to extract high patent royalties on every wireless device sold. to be clear, apple is adding these allegations to a complaint already filed in january that it -- already accuses qualcomm of monopolizing the chip market. qualcomm fired back saying it is apple that it has been unfair. joining me now to discuss is our litigation analyst matt larson in san francisco. new allegations. how does what apple is saying change the case? reporter: apple is building up the rhetoric in this case. they are trying to set the stage for a much larger dispute, a much more expensive dispute, potentially for qualcomm. apple has long alleged qualcomm is double dipping by selling chips and charging royalty rates on the same technology on other people's chips.
essentially what this case does is it builds out apple's lawsuit and tries to sneak markings in. again, this is setting the stage for a much longer slog. potentially years in the making. emily: these are two companies that had a symbiotic relationship. what is at stake for qualcomm? reporter: it's huge. it's a large portion of their licensing revenue. licensing makes up about a third of their business model, and the royalties are about a half billion dollars per quarter. this is significant for qualcomm. it also potentially impact licensing agreements qualcomm has with other companies. these are patents on industry-standard rates. one company trickles down and has what other companies can get down the road. emily: and for apple, what is at stake for them? reporter: it's all about device margins. apple is looking to reduce royalty rates and licensing fees it pays to third parties. less money goes out the door and the more profit they get to keep on ipads, iphones, and other devices. this is a margins story and
protecting the average selling price apple can keep for itself. emily: what are the next steps? reporter: next step is in litigation. these are the initial stages. qualcomm will respond in july. qualcomm also has another lawsuit pending against the contract manufacturers that make the iphone. qualcomm is seeking to recover royalty rates from those companies, and a hearing on that is scheduled in august. emily: apple is working on its own chips now as a result of some of these disagreements. how does that change the overall landscape? reporter: it puts more pressure on qualcomm. i think this overall dispute will resolve into some kind of deal. hopefully it involves potentially a joint cooperation agreement or licensing component, and a balancing of business interests. like you said, they worked together very well for a long period of time. a likely resolution will be more than just a simple licensing agreement. but we will have a couple different components and balance out apple's aspirations. emily: for qualcomm, rather than putting all their eggs in one
basket, how are they diversifying their portfolio for the future? reporter: for qualcomm, this sets the stage for next-generation licensing. qualcomm is participating in different standard-setting organizations. they continue to develop a portfolio of chips. they are looking at other opportunities to license patents outside of mobile. they are looking at potential opportunities at 5g and the internet of things. this is about securing a good rate and key part of their business, and opening up doors for other opportunities. emily: matt larson of bloomberg intelligence, great to have you on. you are in san francisco. coming up, we will take a look at the software company tableau, and find out how it is faring after shifting to a subscription model. you can listen on the bloomberg radio app, bloomberg.com, and sirius xm. this is bloomberg. ♪ [ noises inside can ]
[ laughing ] it's driving me crazy come on. [ spitting from tongue ] time for my secret weapon. sports, movies, tv, ah, show me music to distract a minion. [ voice remote click ] oh! [ pharrell starts to play ] [ minion so happy to see screen ] ahh! i'm pretty smart. ahhh! [ lots of minions ] [ mooing sound ]
show me unicorns. [ click noise for tv ] ahhh! that works too. find your awesome with the xfinity x1 voice remote. see despicable me 3. in theaters in june. saudi king has removed the proud his post.rince from this is breaking right over the bloomberg terminal right now. prince, he waswn the crown prince. saudi arabia now naming the former deputy to rise up in his instead. he is now officially the crown prince. >> that is just breaking news. just to recap what she pointed out, the put context into this, the former crown prince has been removed.
with1-year-old who came up the 2030 vision for saudi arabia and diversifying the economy, you see him on your screen right there. he will now be -- and not be elevated to crown prince. -- we nowion plan have a clear indication of who will be succeeded. we will get you more updates when we do get updates. the bottom on your screen, that is breaking news. let's see how this is impacting markets. look at the asian msci deciding to include china. there was a drop from the peak. energy producers lower across the region see oil players drag sydney shares down 1%.
china are dragging in hong kong. and even the yuan, striking off the msci decision. this after the pboc weekend for a second day. we do have thewon -- we do have lowwon testing. a second -- testing a second low. naming in focus after the preferred bidder for its ship -- chip unit. toshiba is aiming to finalize a deal by the 2018 shareholder meeting. the bears are returning, new york crude below $44 a second day. the tradetoward share, 38.2%.
44.09 level has been broken. the next levels to watch here. crude falling over 20%. ♪ this is "bloomberg technology," i am emily chang. uber is out with the new, some say long overdue feature, tipping. it is something ceo travis kalanick has been opposed to. now that he is on an indefinite leave of absence, uber is making concessions to turn its image around and keep drivers in the seat. here with the story is eric newcomer who covers uber for bloomberg. what happened? reporter: they finally broke down. i think this has been coming for a while. they wanted to pivot into rebuilding their relationship with drivers. they knew if they announced it while they were still dealing internal employee
problems, they would not get much credit for it. white-collar workers, the 14,000 full-time employees around the world, and now it is the 180 day campaign to help drivers. obviously, you need to start off with tipping. that is the main one. emily: lyft came out saying they've already collected $250 million in tips, which is a lot when you add it all up for their , drivers. how compelling is this in terms of a feature to woo them to one company or another? reporter: i think drivers are optimizing for how much money they can make. often, uber gives them more trips, that's why they stay. one of the key things they say is lyft cares about me, and the reason is because of tips. the question is, how much to those drivers who move over to lyft, they can say that uber cares about me the same?
this campaign with a rollout of features for drivers and incentives will be an attempt to pull the lyft drivers back to uber. emily: what do we know about the driver turnover rates? reporter: there was a report that after a year 25% of the , drivers are still there. emily: is that uber in particular? >> yes. there's a lot of turn. this is always part-time work. emily: that's incredible that the uber machine can keep going when only 25% are sticking around. reporter: at some point, you imagine they will hit the ceiling of low income workers who would be tempted to work for uber that haven't tried it and decided it's not for them. emily: are there any issues around the changes being implemented while travis kalanick is not there? when he returns, will he embrace them? reporter: well, he must have been in the loop. this is a long going debate. there was an internal email sent two of the top executives , have been working on this and
strategizing. i can't imagine he was out of the loop. i already reported he was coming around to the idea. we don't know where he stands on it, but i don't think it is like, travis is gone, let's do something in direct defiance of him. it is something even he knows has to change. here is a moment to turn the page. emily: what have you been hearing about how things are running with him not there? reporter: we have this kind of mystical 14 person committee that we have not seen a lot about. i wrote a story about the three top operations executives. rachel holt, andrew mcdonald and pierre. they have divided of the world and they are running the day-to-day, but in terms of big strategy questions, it's not clear. how much money is spent? what about self driving cars? who makes those decisions it's
, probably still made by travis kalanick. emily: eric newcomer, it has been a few days without you on the show. great to know there is some uber news back in the spotlight. eric newcomer, thank you. another company changing the way it charges users is tableau software. the data visualization service moved to subscription earlier this year, and caroline hyde caught up with the ceo to investigate how the move was going. caroline: great to see you. tableau has been going through major shifts, moving to a subscription model rather than charging a single license and service fee. it is aimed at additional flexibility for customers, and reducing upfront expenses. i caught up with the tableau ceo. he was right here in london and i asked him about the shift at the company, new customers, and what brought him across the pond. >> we have had a worldwide customer base for years now. in fact, over half of our
customer expansion last year was outside of the u.s. we had a wonderful customer base throughout europe. it's important to get out and see customers. i'm excited to be in europe this week. caroline: talk to us about customers. last thing i read, 54,000 accounts. i'm sure it is being added to. you have expedia and hello fresh as well, the german-based startup, expanding globally. >> we are really excited to be working with hellofresh and other startups in europe. as you said, hellofresh is berlin-based, providing home delivery of food, and they are really revolutionizing that industry through use of data. they have thousands of consumers sending recipe feedback every week, and they do very sophisticated analysis. not only did they optimize the recipes based on that, but they worked through to their supply
chain, knowing what ingredients they need to have where, based on the demand. it is fascinating. caroline: of course, tableau software, the business intelligence and analytics. we are talking about making it easier for the human to spot trends within data. data visualization is at your core. how is it changing the world in which we do business? >> the amount of data in the world is absolutely exploding. i think there has been a pretty well-documented trend of how much data has been created in the past few years, but it will be dwarfed by how much data is created in the next few years. as the data gets created, many organizations faced being drowned in it. if you can't see what's important in the data, you can't act on what is important. many other organizations are finding ways to capitalize and create new business models using the data. at the heart of it, we are trying to help organizations around the world see and understand data, and ultimately make better decisions and get to market faster using data.
caroline: the way in which you charge for this visualization has been changing as well. you have got to a subscription model. how has that been adopted by customers? >> it has gone incredibly well and proceeded more quickly than i might have imagined when we embarked on it. really, at the beginning of this year, we started talking privately to many customers about pivoting from a one-time perpetual software licensing year, we started talking model to an ongoing subscription model. in the first quarter of 2017, 26% of our license bookings were subscription. that is before it was even public on the website, which didn't happen until april. we expect the trend to continue accelerating, and it is driven by customer demand. subscriptions for most customers are better because it requires them to spend less money up front, and allows them to use operating expenses instead of capital expense and it is a risk
, reduction program. at the end of a subscription period, they are free to make a different decision or leave the vendor if they do not like the way it is performing. caroline: and that builds in a little more business risk for you. how do you ensure they want to continue to subscription? >> it creates risk. it forces you to be a better supplier. we like that. we like the fact it will cause us to sharpen and improve our game. i think if you are willing to bet on yourself, which we are, if everyone is moving to a subscription model, which is common in the software world, the companies that are most innovative and have the best service are likely to win most of those competitive bids. we like those odds. caroline: you said about a quarter of your customers, even before you started marketing online, went to subscription. where do you stand now? where do you aim to see
subscription? >> if you look at all of 2017, we will finish the year in the mid to high 30% in terms of subscription bookings. long-term, the vast majority of business will be subscription. it is better for customers and most want to move in that direction. we are just trying to move along quickly. caroline: that was tableau ceo. next, he jets to germany, and i do the same. emily: caroline hyde in london with the ceo of tableau. thank you. a stock we are watching shares , of comcast fell the most in two years in tuesday's session. craig moffett downgraded the stock to neutral, citing rising cord cutting. and a slowing broadband growth. comcast actually gained pay-tv customers in the last quarter signing up 32,000 people in the period, but he wrote in his note that the market is now too complacent about cord cutting.
coming up, airbnb is tackling the global refugee crisis with the new platform. can they also become a philanthropic powerhouse? and a feature i want to bring to your attention. our new interactive tv function on the bloomberg at tv . watch us live. if you missed an interview, you can go back to it. you can send producers a question. this is for our bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ emily: airbnb is outlining
100,000 displaced people in the next five years. airbnb hosth an from denver who hosted several refugees. she explained why she signed up for this program. >> when i was first contacted by airbnb asking if we could host a refugee in need, it was an unequivocal yes. it is consistent with our values as a family, and quite honestly, it aligns with the broader vision and mission of airbnb, which is to serve those in need. emily: we spoke with airbnb co-founder, who make new announcements about the platform from paris, and how the company is trying to get more people like susan signed up for the program. >> well, you can imagine over the last five years, we have seen incredible growth of our host community. it begs the question, what if we became proactive about situations in the world rather than just reactive to natural disasters? quickly, the topic of this came
-- of displaced people came to us. currently, there are 65 million displaced people. that's the most since world war ii. it also happens to be close to the population of the united kingdom. as we looked at what is airbnb good at? short-term hospitality, trust between strangers, and global presence. we thought we could extend this natural generosity into a platform we are calling "open homes." emily: you called this 21st century philanthropy. why are you doing this? >> i feel we have a responsibility, this incredible asset, this amazing community of over 300 million homes in many countries. looking around in the world of how we might apply what we are good at with where it is needed the most, it makes a lot of sense. emily: you are a $31 billion company. you have investors who placed huge bets on your future. how do you sell them on the idea this is worth devoting time and resources to, from a business perspective?
>> you know, i think this is really just a natural extension of what we are already doing. it is a question of, why not provide the same solutions to travelers to those who are displaced? emily: how does this benefit the business of airbnb? does it benefit the business financially? >> airbnb does not take transactions on this connection. this is about generosity in times of need. it is a part of the business. we have a great core business that is able to fund this kind of thing, but it's an investment it is just an extension of our values in the company coming to life in the real world. emily: what happens when there's a problem, like when a host and a guest don't get along? or maybe there is a cultural clash? >> we partner very closely with third-party agencies that are well respected and we work closely with them and provide
the same customer service with the regular product as well. emily: airbnb was hosting a massive convention for hosts in november 2015 when the paris terror attacks happened. you were there. there is a very divisive debate going on around the world around immigration and terrorism. there is talk of closing borders and building walls. how do you respond to that? >> i think if anything right now, the world could use a little more understanding of each other. if that is something we can do with our platform by allowing people to open their homes, and we are happy to play the part. emily: tech leaders are making critical decisions about how to work with the u.s. presidential administration. we have seen some tech leaders drop off presidential councils when they disagreed with president trump on climate change. what is airbnb's strategy when it comes to working or not working with the white house, even on issues you disagree on?
>> we see home sharing as a nonpartisan issue. we work with democrats and republicans alike. we work with any administration to bring home sharing to life. emily: airbnb is expanding with the open home platform. you are also adding more experiences to the platform, instead of just places to stay. give us an update on the business and plans for an ipo. >> from a business standpoint, we are really excited. in 2016, we launched trips, which allows anyone to offer an experience. it answers the question, what can i do? now that you helped me discover a local part of the city, how can i find out cool and interesting things to do? these experiences allow hosts on airbnb to share their skills and passions and allow outsiders to feel like insiders when traveling. emily: airbnb has three very involved cofounders. as the company has grown and
moved forward, how do you distinguish your role, and what are your top priorities? >> i think each of us is nicely settled into what our passions are and what is most valuable in the company. i enjoy thinking about the future. i run a design studio inside the company which is a research and , development team. that's where the origins of the open form -- open home platform began. thinking about how we might utilize the core competencies to put a dent in this global problem. emily: our conversation with airbnb co-founder, joe gebbia. he told me there are no regulatory issues because no money changes hands. you can check it out at airbnb.com/welcome. coming up, the man u helped spearhead one of tencent's most successful ventures is looking beyond our own planet for opportunity. this is bloomberg. ♪ emily: chinese tech giant
tencent is pushing its startup investment into outer space. stephen engle caught up with tencent's exploration officer in hong kong. >> we are open to the unexpected. so, how do you evaluate an unexpected company? let's say a company is going to do something with space technology and you've never heard about it. is that something you want to get involved in or not? planetary resources is mining of one, asteroids, is that something? >> with some of the space ideas, i have to admit it is inside , design. we also explored a company called moon xpress planning to be the first private company to land on the moon. >> tourism? >> it is not tourism. it will be drones, unmanned vehicles doing tasks on the moon.
we would like to see how far humanity can push the frontier. what can we do beyond earth's? asteroids? the moon? sometimes it is not immediately clear how that will become a business. i would say investment offers are a little bit more aspirational. the greatest challenges humanity is facing now are here on earth. we invested in a company based out of argentina, and they can see what's happening on the ground at a resolution of about one meter, and do it with a very low cost satellite model. we love this technology because it is exponential. think about it. you put a satellite in the sky, circling the globe at 17,000 miles per hour. inherently, the business is global from day one. with one satellite, it is seeing what's happening around the world. it will go around the earth every 90 minutes. it is covering the globe. it is picking up information
about earth so it can be useful , for many industries. >> as you identify companies to invest in at what stage do you , go in? those that havebeta -- those are have beta trials, or already in market? >> we want to start as early as possible. we do investments of a couple hundred thousand dollars. we started the beginning to a large-scale investment of a public company. a lot has been written about our investment in tesla. it's a similar idea, but it's a later stage company and a lot more money to get involved. reporter: how does the tesla investment fit? >> it is strategic, and could be a great financial return. but it fits into the cleaner, greener future. it's a great example of a company that is fundamentally re-architected. what it means to have transportation as well as energy, and a smart ecosystem around bringing that together.