tv Bloomberg West Bloomberg September 21, 2015 4:30pm-5:01pm EDT
>> stakes are high as china's president makes his first president to the u.s. this week. is there hopes of a cyber arms deal? ♪ emily: mrs. bloomberg west. i'm emily chang. coming up, alibaba shares down today as the company and its lockup. what is yahoo!'s next move? plus, apple drives ahead for his and with an electric car
investors are pumping the brakes. and practically what creed really operating as a public and if it -- as a public benefit corporation. first to our lead, china's is kicking jinping off his first visit to the u.s. with a stopover in seattle this week. in a rare face to face, cap chinese government leaders will meet with u.s. tech leaders like tim cook, satya nadella, and jeff bezos. president obama has hinted at new sanctions on cyberattacks, while they are looking to strike a potentially groundbreaking cyber arms deal. joining me is cyber security expert with me from sanford, -- from stanford, glenn solomon, an active investor in china. what will actually happen at this meeting?
we know more about the names that will be there. what do you think will actually be accomplished at a meeting like this? >> i think it is an indication of the interest amongst the tech companies in silicon valley in china, that anybody who is -- everybody that is anybody will be at this meeting. i think the dialogue will be somewhat substantive in that people will be given the opportunity to talk about their aspiration china and develop relationships with members of who are important entering china. but i think you will also following this meeting more activity from what we have already begun to see, whether or airbnb, certainly apple and google. be seenpanies will entering the chinese market because it is so attractive. at the same time, hack
attack keep happening. eventuallyould programhe chinese from -- from critical infrastructure, but nothing to protect intellectual property right now. what would it actually accomplish? >> it is progress that they are discussing cyber. second, what they are basically doing is continuing to negotiate. they are looking for some early steps that indicate what they .re willing to do for example, china is perhaps going attack vertical infrastructure and they will put some rules to the road, basically for fair player -- four fair play. -- basically for fair play. we believe you can engage in
certain types of espionage, but not commercial. emily: why make an agreement at all if businesses are the ones most vulnerable from hack attacks from china? at cyberen you look security and cyberattacks may distinguish between state-sponsored activity and commercial activity. in the state concert world, -- in the state-sponsored world, it is fair to say governments all over the world are perpetrating cyber activity, whether our government here in the u.s., or the chinese government, or governments from all major regions of the world. you are seeing lots of state-sponsored activity underway, and they are "legitimate purposes espionage" and maybe there will be rules of establishedt are from these conversations.
but there are also commercial oriented and tax. i think the attack that apple thisnced on its app store weekend is probably a good example of commercial activity, people trying to get access to information for whatever reason they may see, hopefully to get some profit. emily: brian, i want to talk to you about the apple attack mother first of its kind -- the apple attack over the weekend, the first of its kind. ande are huge companies, chinese companies, no less. what do you make of it? first, we don't know who did it. but this was quite ingenious in that they had the ability to actually demonstrate advertising that you can get an access code through baidu and it was easier to access than through apple.
and when they loaded these up in the apple did not catch that they were running fraudulent code. they were looking to steal your information and take those credentials and use them elsewhere. surprising. we see these attacks over and over again and it into to demonstrate that nobody is secure and everybody needs to take steps that they may not think are necessary to check code and put other techniques in place so they can be part of the solution. emily: there are broader concerns about what is going on in the chinese markets and volatility that we are seeing there. alibaba has not fared well since its ipo and today with the lockup, how concerned with what is happening are you? what do you csa long-term -- what do you see as the long-term
for alibaba? glenn: good question. it comesmore sublime into the market and as people anticipate that, stocks -- there is more supply that comes into the market and as people anticipate that, stocks tend to go down. actually, stocks tend to act well in the months ensuing after lockup. you may find that a lot has a rebound in the not-too-distant huger. but longer-term -- the not-too-distant future. the longer-term story for alibaba is the growth in the economy in china. --you may know, my capital my company is very bullish on capital in china. enterprise,ned inefficient businesses where the stocks of those companies have tended not to do s have contracted
with newer companies. we are seeing the same thing in china where -- that we see here, where software is eating the world. on thatullish long-term continuing to be the case and we think alibaba is a beneficiary of that as well. obviously, yahoo! is sitting on a huge stake and there are some questions about how it would be taxed. we have 30 seconds. yahoo! is a really interesting business. it is mostly a tracking dock for alibaba these days full -- attracting stock for alibaba these days. and now that many think they will be getting a better access to alibaba in a more positive way, that has reacted
positively. with executive living and thinking about leaving, i don't see a way out that is great for yahoo!. their stake in alibaba notwithstanding. emily: we will be watching to see how this meeting in seattle progressive. news just out that scott walker is quitting the presidential race according to the "new york times." poll showsew cnn that carly fiorina has vaulted into second place with a 15% vote. but her business record remains a serious sticking point. with fiorina at the home of hp, the company lost over 30% of its value and 30,000 people were laid off.
tom perkins, who was on the board of hp at that time, he took out a full-page ad to defend her, calling her a ceo. but is tom perkins really the guy fiorina want making the case for her to be president? -- you might remember he 1% toed the "war on the the persecution of the jews." get richer, but they bring everybody else with them when the system is working. emily: you're a multimillionaire. billionaire, i'm a millionaire. i have created some billionaires, but i am unfortunately not one. andy: you have fancy cars submersibles.
underwater airplane. all that you worry at you are divorced from reality? are you divorced from reality? >> i don't think anyone can honestly answer that. truthfully, i don't think so. we got into a discussion about rolex watches, that it is a symbol of terrible values, etc. i think that's a little silly. this isn't a rolex. rolexesbuy a sixpack of for this, but so what? there, a bigrkins backer of carly fiorina. coming up, refocusing omission, next. ♪
emily: in the age of billion dollar plus valuations and splashy ipo's, it is rare to say -- for a ceo to say he never wants his company to go public. with kickstarter over the weekend. it reincorporated as a public and if it corporation -- public benefit corporation, which means it is legally bound to do good for the public. yanceg me now is the ceo, y strickler.
how did you come to the decision that you would, indeed, incorporate? oncey: we were always focus building an organization that reflected our ideals and was always starting its own course -- charting its own course. a public benefit corporation didn't exist the way does now when we started six years ago. when delaware passed a law in 2013 that you could become a public benefit corporation, we were excited to make that change. -- our charter details the commitment we are making to the community and the public. and we have always tried to be values driven and idealistic. we have a new commitment we announced today of donating 5% of our annual post-tax rapids in support of music education -- post-tax profits in support of music education and literacy
overall. the company, the document shows what we want to be. emily: what is your take on what other companies are pursuing? pursue a flashy ipo and what should companies be doing for the public good if they go the public route? ancey: i think from entrepreneurial perspective you just have to be aware of what you are in it. for us, it is sustain long-term growth. we want to be a service that is around and we have often thought about operating as if we are a public trust. andave been a revenue model we have operated in the black for the past five years. and we have shareholder investors that deeply believe in the things that we do. atn you have that alignment the management and investor
level, you can make a choice like this. can make a decision that certainly costs the company potential profits, but we believe it is in the long-term better interest. entrepreneur, it is important that -- for an , it is important that you have that kind of alignment between the company and shareholders. we always wanted to do it quite differently, so we have been fortunate to have great investors who are aligned around the same sort of approach. curious, how did they take this decision? convincing did it take to get them to the point where they were like, ok, we are behind you? yancey: we have always been open about who we are and i think people have enjoyed that. this was put out to a vote among the kickstarter shareholders,
which in includes -- includes former and current employees. there was not a single voice. this is consistent with how we have operated. we are proud to make statement today and clearly communicate what it is we stand for. emily: any concerns about how this could impact your recruiting? yancey: my expectation is that it will be very powerful for recruiting. what we've given to every person that was brought in we hired them, to be clear about the values and a long-term prospects of the business. i strongly believe this will attract a certain sort of person to us. we are regularly bringing high-quality talent and with a market salaries and we have a team of just over 100 here in new york city. do you think there is anything more that other technology company who maybe do thing, whathe pvc
do you think others can do to give back to the public? yancey: i think ensuring consistency in your operations is very important. you do not want to have one thing going on one channel and something quite different elsewhere. for those considering starting as entrepreneurs, i would encourage them to become a corporation from the start. it doesn't restrict you in any real way. you are still a for-profit company. to do that 10idea years ago, we would have. emily: thank you for joining us. in today's edition of drives, apple taking on tesla. the iphone maker reportedly speeding up its plans to build an electric car and hopefully have them on the road in four to thethis according
wall street journal, who said apple spent over a year investigating options, including meeting with government officials in california. the teamny is tripling leading the project, code-named titan, and has been on a hiring spree. beencent months, apple has working on the electric battery and a driverless car could still be in its future. up, a big vote of confidence from disney. tells us his plans. ♪
daily bike, one number that tells a whole lot, and today's number is 14. that is the number of emmy award hbo took home last night, giving them the title of the undisputed network. why is that important? because amazon and netflix have been trying to steal their crowd with original content, but a look at last night's awards show that from a critic's standpoint it is still safe. virtual reality start up john has just-- jaunt raised $65 million i disney. it gives it bragging rights as the most funded the rp company to date. the founder and ceo joins me. what do you plan to do with this money now that the coffers are full?
>> basically, we will scale of the operations. we have a lot of pieces to j aunt. we have a hardware team that has cameramera -- built a that is a very advanced software camera. you have done some interesting things to leverage your relationship with disney. this news patch area, for example. what else will we see? was: the first thing we did the rooftop camera in syria, where you can ask you find yourself on the rooftop. we are very excited about tori telling in general, taking vr -- storytelling in general, taking vr from being on a work cap or in a temple and actually being part of a story, and
entertaining story. emily: on that note of storytelling, what ucf the biggest opportunity? selling the hardware, selling the headset, or production, making original conduct -- content? jens: there will be people who sell the cameras, people who manufacture the content. for us, the key is the content. we think as people get the headsets, they will want to go and explore. they will try games and cap videos in vr. we do live -- we deliver the high-end content. emily: how is your company and your technology different from what oculus has to offer? the cinematicis art. we recorded it with a camera as opposed to cg or animation. the other difference is we
partner with a creative community. we don't have in-house, but we work with independent film studios and brands and other makers to create these. emily: do you you see it as commercially available? jens: maybe eventually, but right now it is very high-end and custom-made hardware. mainstreamwill vr be , how many years are we talking? jens: i think next year. emily: next year? jens: we have tremendous riskets coming online, and is coming online, sony playstation vr is coming. emily: i'm going to hold you to that. thank you for joining us. did you hear that? next year for vr. we will on the show, bring you the winner of this year's google science fair.
john: with all due respect to scott walker, that hold back down thing? not so much. scott walker of wisconsin, the union chris seder is dropping out of the presidential race. walker's campaign says the main ise -- the main colbert money. front runner in iowa, now out of the race, what happened to him?