tv Bloomberg West Bloomberg May 6, 2016 6:00pm-7:01pm EDT
neither entertainment nor a really show. reporters toed take donald trump seriously and vet him thoroughly. the wildfires in canada may become the most expensive disaster in canada's history. the fires now cover an area as big as new york city. thousands have evacuated fort mcmurray. the unitedeneral of nations ban ki-moon has created a trust fund to combat the zika virus. 61 countries and territories have reported local transmission of the virus, and some have seen an unprecedented rise in cases. the body of the u.s. navy seal killed during combat in iraq is returning to the united states. navy petty of officer first class charles keating iv will be transferred to the san diego
area. he is the third u.s. servicemen were to be killed in iraq since forces returned there in 2014. global news around the world -- from the bloomberg news room, i am ramy inocencio. "bloomberg west" is next. ♪ ♪ emily: -- ramy: this is "bloomberg west." coming up, we tell you why the latest funding for the chinese ride hailing service could mean bad news for uber. and, it is official, fireeye promotes a familiar face from within. -- the new with his ceo on a day when shares plunge 19%. and, does donald trump have any
friends in silicon valley? we find out whether the gop front-runner has built a wall between himself and potential bay area supporters. the biggest competitor to cooper in china is close to raising $2 billion in its recent round of funding. they close the round in the next few weeks, with a valuation of about $25 billion. that would make it the fourth most valuable start up in the xiaomi, anduber, airbnb. here to discuss this is david kirkpatrick. guys, welcome. first off, i want to ask you, david. worth $25tually billion? david: if uber is worth $60 billion, i think ultimately it
is their biggest global competitor. those companies might ultimately consolidate. the chinese market is so important. i think if you do it right, you can lift off from there and go global, and i'm sure that's what they want to do. ramy: when we talk about didi, we have to talk about uber, with both of them brawling in the world's most popular -- populous country. we talked to didi's ceo about whether they could both coexist. >> i would like to more focus on myself, rather than looking at others. i think the industry is in a more infancy stage. there's a lot of room for everyone to grow in the market. but for us, it is more to focus on what we have to achieve. ramy: can they both exist? can this duopoly exist? here in the u.s. we have uber otherft and a couple of ones.
david: in china, the chinese company will always have a huge advantage so i would not bet on uber. the chinese government can intervene on the side of the local player. ramy: let's talk with keith. i want to ask you about valuation, the $25 billion valuation. does this concern you david -- does this concern you? keith: i would have to look at their financial performance to decide what they are worth. they are a valuable company, but i cannot opine on that without inside information. tech two of the top four companies in the world are right hailing services. who knew? this doesn't mean people will want to necessarily program more right hailing services. what does it mean for you? keith: the key take away is this one of the a winner take all market. i think uber had hopes to or three years ago that this would
be a quasi-monopoly business. driving in theis u.s., and others are thriving outside the u.s., so the idea of a winner take all globally is fiction, and that has significant impact on uber valuation. ramy: also, to talk about the general ipo environment in the united states -- right now you are talking about in your latest bloomberg gadfly piece that there is a tech ipo desert. >> it has been startling. one tech ipo this year, this dell spinoff secure works, so you are having a situation now where there are 150-plus richly valued startups, so-called unicorns valued at $1 billion or making aluding uber, blockade of private companies waiting to go public. it really seems like an untenable situation, where you
have all these privately valued startups, these richly valued private startups, and there is no exit, or at least no public exit for these companies. i don't really know where it ends. ramy: david, you are not in your head. david: i don't know there has to be a near-term exit. a lot of these companies have enormous resources because they have these valuations and have been able to raise a lot of money. many of them have a multi-year view before they are looking for their exit. the atmosphere right now globally, politically, economically is so uncertain. i'm sure there's a lot of good reasons, even aside from what we might think about valuations, why ipo's are happening less right now, and a lot of his factors could change. ramy: we have an interesting graphic, initial public disappointment. i want to bring that up. it's a chart that is an etf of recent public companies that have fallen 18% in the past year. shira, what is to blame for
this? bad market conditions? or should they have never gone ipo in the first place? shira: it is a mix. i was really surprised when i ran the data for this column you mention, more than half of the tech companies going public since 2010, five-plus years, more than half of them are trading below the price at which they first told stock to the public -- sold stock to the public, and that is not much of an incentive to investors buying shares or the executives and other insiders of those tech companies to go public, because we have seen the market conditions have not been hospitable to young companies, especially ones that cannot make their numbers. ramy: keith, what is your take on all of this? is it about market conditions, or if the company should never have gone in the first place? keith: many of these copies are great companies, great opportunities. however -- and they have the option to go public whenever they want. however, there is a disconnect
between the prior round of financing and the valuations they achieve in the liquid public markets, so they have to swallow that disconnect if they want to go public. so some of them may not be burning a lot of cash, and might have a lot resources, as david points out, so they can just wait and hope the market multiple changes. if they are burning a lot of cash, running out of resources, they might not have an option and might have to accept what the current public market will give them. there are maybe seven of the 150 the don't have the metrics, transparency, pretty debility you want to see, the scale you want to see on revenue or profits, and those companies have real problems in today's environment. they have significant pressure on them, and there's not a lot of great solutions for them. ramy: we will leave it there. shira ovide, thank you so much for joining us. keith, david kirkpatrick, you are both staying with us. a story we have been following. dell is planning to market a
portion of the debt needed to fund a $60 billion acquisition of emc. investors have been on the lookout for a host of acquisitions from dell ever since they got banks to commit financing for the takeover. they will sell an $8 billion term loan offering to institutional investors. clearance regulatory approva and the approval of emc shareholders before they can close the deal. soldxt, kevin mandia wants his company for a billion dollars, and now he is the ceo of the company that bought it. the new chief of fireeye joins us. and, a repeat success for spacex. why this rocket landing marks more than one small step for elon musk. we will explain next.
ramy: in this edition of "out of this world," spacex has done a for the second time in a month -- elon musk's commercial space venture has landed a rocket on an ocean platform. the booster touched down after launching a japanese can indication satellite. musk put the chances of a successful landing "maybe even" this time. this was a key test for spacex, which hopes to begin reusing unmanned rockets as early as this summer to lower the cost of each launch. facex remains -- spacex remains the only company to recover a rocket from launch. company also recovered a rocket, but it never reached orbit.
fireeye shares took a big hit on friday, plunging 20% off the back of the company's latest earnings report. the cyber security company posted an adjusted loss per share better than estimates, but it was the guidance investors zero day none. fire i said it's second-quarter loss -- fireeye said its second-quarter loss would be larger than expected, and second quarter losses are down from $815 million previously. despite the numbers, they announced a changing of the guard. president kevin mandia will take over for ceo dave dewalt next month. dewalt led the company since 2012. the new ceo joins us from mountain view, california for an exclusive bloomberg conversation. thanks a much for joining us. kevin: thanks for having me, ramy. ramy: let's start with your new role. congratulations. what do youyou, and
want to bring to reignite the fire under fireeye? kevin: why me? i worked with dave dewalt. he was my chairman when i was at mandiant, so i have known day for a long time. we have always aligned in our strategic imperatives and our vision, our intensity, our desire to win, so this was just a logical progression. when he bought mandiant at the end of 2013, we were on a mission that aligned with fireeye's mission. and as this company transforms, we have always had alignment. we can make this a seamless transition. at the same time, every company transforms and involves, especially -- evolves, especially when you need to innovate at the speed we are trying to innovate at. why now? it was just great timing to lock in a management team. we have our independent director, and we still have dave dewalt as my mentor and
executive chairman. i have travis reese, who worked with for 20 years, in the presidential role. we had our cfo. that's why we did it. let's strengthen the company and continue to evolve. ramy: in terms of strengthening the company, a lot of companies are transitioning to the cloud and's description service models. how will that help fireeye? let's strengthen the company and continuekevin: you are looking s in cyberspace, attack trends and defense trends. everyone is starting to go to infrastructure service. we have to be where the attacks will be, and where the data will be. other trends, right now if you are hacked and you know it -- you want a trusted partner. you don't just want technology in place, but technology and people and expertise behind you. one thing we saw was a huge shift between people buying our products and running it themselves versus what we call fireeye as a service, buying our
products and capabilities and we run them for them. the advantage to that, you have a trusted partner, somebody in the trenches with you hunting on your network, looking for problems, making sure you don't have challenges, and should something bad happened we are standing beside our customer saying, we are there, trying to defend the net. so we are seeing that shift from opex,apex product buy to security as a service. reading about fireeye as a service before i read about any other separate security company talking about technology provided as a service. the market will continue to swing that way, and we will catch it as it keeps winning that way. ramy: fireeye's sales have been falling over the past several years. we just had a graphic showing our viewers that. security sales are slowing for you guys. do you think it will keep slowing? what will turn this around?
kevin: one of the things, and by the way, we still exceeded our sales numbers in q1 when you look at billings, and we always pushed the street to look at billing numbers. sometime last year, one thing that did change the threat landscape -- and there's a lot of reasons why people by security. it could be a compliance driver, or a threat or an incident, we saw an abatement in cyber espionage attacks from china against the united states. now we respond to more breaches today than we did a year ago, so it is not a decline in breaches, but the type and scale of security breaches we are responding to our smaller. so without that omnipresent threat landscape, we felt at least last year a little bit of a delay in some of that pressure of, hey, we have a problem, we need something. but i don't see an abatement in the buyer. people want a cyber security solution. the liabilities if you are
compromised and know it has never been higher. ramy: there is talk about consolidation in the industry by some analysts. would you agree with that? kevin: i don't know when it's coming, but there are a lot of cyber security startups out there. some be told me a number of 1200 of them. when i went to the conference this year in san francisco, looking at all the attendees, i felt like there was 15 ideas, maybe 20 ideas, but 1200 companies. so i think you will see compression. it's hard to know how many companies the market can bear, but 1200 felt a little high to me for 15 to 20 ideas. you will see compression. we are at the early onset of it. with that, you will see some m&a activity. ramy: i want to look at the stock price for fireeye. at its high, about $95 a share. now it is around $12 or so. some people brought up the possibility that fireeye could be an acquisition target. do you think the conditions are
ripe for that? kevin: i can tell you this. i want to build the best security company, period, and execute on the vision we have. it is my job to build the best company. if there is outside interest in us, that's on them if they want to have interest in us, but we will still build the best security company in the world. that's the path we are on. ramy: time for just one more question. looking ahead, what cyber threats do you think will to find the next few years or so? geographically, by governments, by terror groups? kevin: governments, you will see governments coming up with rules of engagement. you may have some war and peace, depending on geophysical conditions. the trend we see now, if you are in a safe harbor and you can come rise folks, extortion is on the rise -- compromise folks, extortion is on the rise. the payment card industry in the united states is getting more secure. retailers are more secure. it is harder to break in and get credit data and monetize it.
but the folks who used to monetize the credit card breaches have turned to things like extortion. break in, and use things like an anonymous currency like that going to get paid. that's a challenge for any organization to deal with. you have read about rent somewhere, probably -- ransomware, probably. someone who can break in and they encrypt your drives and have to pay them to decrypt the data. they have greater impact as people depend on their systems to run the businesses. i will leave you with this thought. you watch the criminality internationally. for the most part, it is intolerable to most nations. so i am hopeful we will figure out a way over time to reduce the amount of safe harbors there are for these criminal actors. they will always exist, we will have to safeguard from them, but we will be there. ramy: congratulations on your new role. newly named fireeye ceo kevin mandia. next week, "bloomberg west" goes in a series focusing
ramy: our tech week in review. still with me, david kirkpatrick in new york. let's start with you. what stood out among the tech headlines this week? david: there were a lot of things, but i continue to be amazed by amazon. investment in an air transport company called atlas, and took leases on more planes from another transport company. so now they have 40 of their own 767's, a company that was one of ups's best customers.
amazon wants to be a vertically integrated colossus. everything from how companies work in aws, to the products we use in our homes with amazon echo, and getting to us in between. what an amazing company. you have to be amazed at this company's ambition and ability to power forward. ramy: you bring up a good point, talking about fedex and ups. i wonder what they are thinking right now. david: they can't be happy. at a minimum, it gives amazon much better negotiating power with them, because they will still be a big customer of ups. i also have to reiterate the word echo. i think the amazon ecowas one of the hottest products that has come along -- echo was one of -- the hottest products that has come
along in recent years. if you don't own amazon echo, you should get one simply to see the future of computing. and this company has a million irons in the fire, and they are all burning really hot. ramy: i want to talk to what keith has been looking at. what has been on your radar? keith: nothing specifically new. a lot of people are focused on changes in collapse, the environment, what it means for their company. it's not yet clear, but some companies are clearly going to be spectacular successes financially, disruptive or transformative, and there's a lot of companies struggling. it's because the price of capital has gone up. think of it like oil. when the price of oil goes up, some businesses lose money and some become, massively profitable like an airline. that's happening in the
technology world right now. some businesses are massively affected. some companies with a very high burn rate are massively affected. they'll have to change their strategies to conform to this new reality, so i'm focused on how we best counsel our entrepreneurs how to thrive in the new world order. you guys are both staying with us. coming up in the -- coming up, in the 2012 presidential election the tech industry donated $20 million to barack obama. who gets the money this time? and, you can now listen to bloomberg radio on the bloomberg radio app, bloomberg.com, and serious xm. -- sirius xm. [indiscernible]
republican nominee has not offered serious proposals dealing with the economy and national security. president obama: i want to emphasize to everyone, we are in serious times and this is a really serious job. this is not entertainment. this is not a reality show. contest for the presidency of the united states, and what that means is that every candidate, every nominee, needs to be subject to exacting standards and genuine scrutiny. mr.: as for the democrats, obama said he will not make an endorsement until the primary process plays itself out, and he expects both candidates to unify the democratic party for the general election. add senator lindsey graham to the list of lawmakers who say they will not support donald graham for president. the one time candidate for the
gop nomination says he does not think trump is a reliable conservative, nor has he displayed the judgment and temperament to serve as commander-in-chief. house speaker paul ryan will meet with trump on thursday morning with other house leaders. the brazil senate impeachment commission voted 15-5 there is enough evidence to try president dilma rousseff, accused of using illegal financing to manage the federal budget. the impeachment motion goes to the full senate, scheduled to vote on wednesday. north korea began its first full meeting of the ruling workers party in 36 years. the meeting gives kim jong-un a further chance to solidify his grip on the country. kim came to power five years ago after the death of his father, kim jong-il. little is known what he will do at the congress, but he may focus on economic growth and military strength. police in montgomery county, maryland arrested a suspect linked to a series of shootings over the last 24 hours. the 62-year-old man was captured. the first shooting occurred thursday at a high school, and the second was at a mall parking lot this morning that wounded
two others. the third incident was a fatal shooting at a nearby shopping center. the city of london is reportedly on the cusp of electing its first muslim mayor. the labour party candidate, the son other pakistani bus driver, opponentsations by his linking him to extremism in stride. from bloomberg world headquarters, i am ramy inocencio. ♪ ramy: donald trump may be republican front runner, but seems he has work to do to win over the tech vote. a new article on bloomberg.com explores the donald's popularity
in silicon valley and uncovers a serious lack of supporters. the article interviewed many top names in the industry, and found none who are voting for trump. even known republicans are refusing to vote for him. why combination -- y combin ator's sam altman says he plans to vote for hillary clinton. here to break down the tech vote, tim higgins. david, first to you. i want to boil this down. trump's immigration policy. david: it's one of semi-things that have pissed off silicon valley. he spoke specifically against amazon, apple, facebook. he is considered an anti-tech person by the head of the consumer electronics association, gary shapiro. this is a guy who is fundamentally irrational on many of his views, especially about oddly, business, since he is a
business guy. ramy: what are you hearing on the ground as far as the politics side of things, in terms of the san francisco, santa clara voting party? 10:18 months ago, they thought maybe -- tim: 18 months ago, they thought maybe this was the cycle where they could crack in with enough money. there was some hope that candidates like jeb bush or marco rubio would really connect with the upcoming leaders. but comments by trump, especially around building a wall, other issues regarding global trade, really have not been playing well within the valley and the tech community. keith, you have taken a stance on twitter all about this. i will quote you. "nixon feels like a flawless politician by comparison," you said. that's you on the record. i want to hear more about your thoughts.
keith: the fundamental issue with trump is more that he is a mega-maniac and borderline psychotic. the views are separate. i just think the character issues are more troubling, and that's why the nixon comparison -- nick's and in many ways was an excellent politician, but had fun mental floss. trump is taking -- fundamental flaws. trump is taking that to a new level. ramy: should donald trump actually care about with silicon valley thinks? does he need to care? baseon the one hand, his of support really has not been that part of the country. in the old industrial area, turning out in droves for him. california traditionally doesn't go in the red category for the general election, so in some ways he doesn't need any of that support. but what he does need is money. he is far behind in setting up a fundraising apparatus to raise the hundreds of millions of dollars he will need in a general election. the estimate is that each side will need $1 billion. that takes a lot of people, a
lot of pockets of wealth around country to fund. ramy: let's bring up one of the charts we have in terms of how much money the technology to politicals campaigns. i believe it's about $7.8 million this year, just from tech alone. taking a look right now, tim, do you think there needs to be more from technology? $55 million towards the presidential race in finance and insurance, will that ante up for trump? kim: the money out of tech has been increasing over the past few cycles, and a lot that has been going to the democratic party. hillary and bernie are fighting it out for support in the valley. bernie sanders has been raising more from the valley than hillary clinton according to the numbers. so trump has not really even .egun raising money
time will tell if there are hidden pockets of interest in silicon valley. ramy: david, some tech firms, at least in terms of donation, have leaned republican. in a bloomberg.com article, intel, oracle, cisco give the most money to republicans before trump being the present of nominee. david: i don't think the past will at all help us understand the future of american politics over the next six months. that doesn't mean anything about whether they will support trump. i know a lot of republicans i spoke to who say they will support hillary. many of them were hoping that somehow kasich would come out a brokered convention, but nobody seems to think that is even a possibility anymore. my own opinion, though, about trump is that, as a typical new york, manhattan liberal, there is something kind of endearing to see all these republicans saying, i can't support this guy. there is a weird way in which trump may bring the country
together and maybe break a logjam we had in washington. if hillary draws a lot of republicans in the general election, maybe she will have to govern in a slightly different way and we will not have this very huge partisanship we have had. ramy: out of three candidates we still have, bernie, hillary, donald, which one has the best here on the ground to the tech industry? david: i don't think any of them do. of the three i would say hillary, but i don't think she has nearly enough of an ear to the ground. thanktim higgins, keith, you very much for your time. david kirkpatrick, you are staying with me. according to an sec filing, amazon founder jeff bezos collected $671 million after selling one million shares of e-commerce retailer. the last time he sold a block of shares was august 2015. this is $135 million more than his proceeds were then. he still owns 82 million shares of the internet company. coming up, will these helium
balloons replace the satellites we use today? we will hear from one chinese entrepreneur about his latest moonshot. this weekend, we will bring you our best interviews from the week. ellen pao speaks out for the first time since losing a gender bias case against vc firm kleiner perkins. the best of bloomberg west, this weekend on bluebird television. ♪
tsy shares down more than 9% on concerns of the company's long-term outlook, a turnaround from earlier this week. shares had been up after etsy reported earnings on tuesday, announcing the first quarter the profits since becoming a public company. next up, the chinese entrepreneur building an alternative to satellites use today, helium balloons sent to the edge of space. he wants these unmanned devices to provide services coming from processing telecoms, meteorological data, satellite tv, traffic surveillance, and tourism. this time he is launching a $300 million investment firm based in israel. elliott gotkine caught up with him. elliott: why israel?
of all the countries in the world you could have chosen? >> we know that israel is the most innovative country in the world. a lot of science and technology was developed in israel, and the most important thing is that we use that to create the new future, the next future for everyone. elliott: you made your first investment out of this fund, $20 million going into eyesight technologies. what is the reason behind that? >> our first big investment was eyesight, and that is a company with technology that can make machines understand environments , and make machines understand the user's activities, motions, and even tiny motions.
so the big picture behind the machinest is to create for human beings. elliott: you are involved in other projects, including replacing satellites in very technologically advanced ways. tell me more about the other projects and what you hope to achieve. to use space in a more efficient way is one of the most important goals of our innovation. the idea is that we use this new type of materials to bring a lot of different platforms, including human beings .hemselves, into space the new type of satellite, which is not actually a satellite, really allows people to put hundreds of kilograms payloads into the sky to do surveillance or the internet of things. also, to allow people to fly
pack, soike a jet everyone can do whatever you want with these new machines. when you look at these innovations, there are two parts. you have to design the future, and then you have to realize with the technology those futures to share them with people. the first part is the hollywood part, and the second part is the silicon valley part. with this, we are thinking hollywood plus silicon valley. elliott: of all the things we know you are doing, what is the most outrageous, crazy idea that you have you see happening at some point in the future? >> so actually, we do have some designs for the future. for more freedom, more
environmentally friendly environments, and also more safety, more green energy stuff. so if you are really looking at the future, we see that in a patient has to be global -- innovation has to be global. i, tois why we created gc build up this feature for people. that's why we are building a new area. ramy: very cool stuff. that was elliott gotkine. you may soon hear what was once known as muzak in your local mcdonald's. totartup has reached a deal pipe back our music into as many as 36,000 mcdonald's restaurants around the world. for becomesrst deal a call soundtrack outside of the nordic region, and they hope the
ramy: it is a trial made for hollywood, and it began friday in los angeles. the issue -- whether 92-year-old sumner redstone was medically competent when he andw his girlfriend out dropped her from his medical care. alix steel and scarlet fu caught methuselah advisories partner and asked him if the window is closing for media m&a. >> they have access to debt markets when the markets are open.
i think media will be just fine. the question is, how many large transactions are left that can really be done? business.ntrated we have a whole host of interesting new names in the digital world that will be the fodder of the m&a. buzz feed, refinery 29, smaller comp knees the scheme of things compared to the giant bloombergs of the world, but they are and they will be the core of m&a going into 2017. digital companies looking for a new home, aligning themselves with traditional legacy media companies. that's happening more and more. scarlet: we just had the digital world's answer to the upfronts. what to do learn about how the tie-up my progress in the years to come? >> the fact you have some thing called the newfronts tells you something, as though this huge collection of companies now need
to come to madison avenue and show what they have got, to see if they can drag advertising dollars along with the eyeballs. we know the eyeballs have moved massively, and there is a tremendous amount of consumer attention to these kinds of digital assets. the issue is traditional legacy video, and television in particular, still has huge amounts of advertising dollars compared to the total of everything in the digital world. so as these digital businesses grow, what we think is happening at my firm is they are increasingly moving towards legacy media because they need those dollars, and they are finding the advertising community is still very much wedded to the vehicles they knew about. feist, for example, a fantastic digital company, now has a cable example, avice, for fantastic digital copy, now has a cable network. ramy: meanwhile, we have seen a lot of news this week pointing to the rapidly shifting media landscape. hulu announced it would start
licensing full lineups from major networks, and youtube is rumored to be doing the same. here to talk about that is david kirkpatrick. joining me from our princeton -- first, i want to ask you about some of these streaming services we have been talking about this week. talk to me about the winners and losers. >> there has been such an explosion of these skinny bundles, these streaming services, in the whole media landscape. the winners are i think the tech companies, like google with youtube, companies like amazon, which want to become a bigger part of the ecosystem, want to those eyeballs and those at dollars. and then of course the consumers, because so much more choices are available to the average consumer these days. mediaition, the large companies, disney, viacom, time warner, they will get this
additional revenue stream from being able to monetize their content on digital platforms. so those are obviously the winners. the problem with the losers, the smaller cable networks which may not be able to get a place on a skinny bundle. they might ultimately lose out a little bit. it is intensifying pressure for the pay-tv competitors. ramy: we talk about skinny bundles here. david, what does a skinny bundle need to have? david: the key thing for success, and there was a piece this week about this exact point, content that people really want to watch, which is probably going to increasingly be exclusive content you cannot get anywhere else. so if you just take a bunch of stuff other people have also taken and put it in the bundle, you will not get some kind of gigantic market share. the key is, just like amazon and netflix have shown so brilliantly that they can do, create content that is truly unique and competes with the
best stuff anybody has ever seen, and that's what we are seeing happening with the so-called tech companies. ramy: "house of cards," "orange lack." new b when the game show network from the 1980's comes in, i might have to stay. but that is, i'm an outlier. [laughter] there is some good news with the tv companies out there. some have said there has been a death knell for tv companies. has that been overrated? david: the problem is the targeting, which we have all become used to on the internet, has to come to television as well, and the technology, which does exist, is still in its infancy. ,elevision advertising is great but the idea of just throwing one message in front of tens of millions of people is going to be increasingly less appealing to marketers, i think. so the idea is to find new ways to interpolate the cable channels, cable networks, the, the cable systems in various
regions. dia, companies like simulmei run by my friend dave morgan in new york, are doing that. tv advertising will continue to be gigantic, but digital advertising generally will take over. ramy: geetha, i want to ask you. there is a song that says "video killed the radio star." will video killed the tv star? geetha: just from the results of the traditional tv companies, this quarter we are seeing there is real strength in the tv business. you spoke about tv advertising. that is a $70 billion business. the numbers reported this quarter were absolutely mind blowing. cbs reported 12% growth, a number we have not seen now for many, many years. it looks like the momentum is there. tv ads are able to hold ground, and the really interesting point
les moonves, from shift back tog a tv from digital with all the problems of ad fraud and ad blocking. the ad content is secure. the other content is affiliate fees, and it looks like that is fairly stable. i think they are in good shape. ramy: thanks very much. we have to leave it there. thanks so much for joining us. week, "bloomberg west" goes east, with a special series focusing on tech innovation and entrepreneurial spirit in the city of boston. join us, 6:00 p.m. new york time. ♪
♪ >> from our studios in new york city, this is "charlie rose." charlie: the musical "hamilton" is nominated for 16 tony awards. it tells the story of america's founding fathers based on a biography of hamilton. the production has earned a pulitzer prize for drama for lin diggs miranda. daveed plays both the marquis did a and at -- lafayette hamilton.