tv Best of Bloomberg Technology Bloomberg December 17, 2016 6:00am-7:01am EST
numbers. what does it mean for the veri zon deal? lead,to our president-elect of donald trump met with tech industry leaders pence and peter thiel sitting by his side. >> i am here to help you folks doing well. and you are doing well right now , we are still talking about the bounce. right now everybody likes me, at least a little bit. tim cook, sheryl sandberg, jeff bezos were in attendance. immigration, internet security, regulation on government investment. said, "we are net
exporters. over 60% of our sales are overseas o." we caught up outside trump tower. >> the lobby was flooded with reporters. we did get a glimpse at the beginning of the meeting, and trump tried to strike a conciliatory tone, raising peter thiel as an innovator. he said i want you to keep on innovating. i am here to help. he said call me any time. call my people any time. we really don't have a formal change chain of command here. emily: interesting to see them
starting off on this foot when silicon valley was against the election of donald trump, besides peter thiel. what are the real policy issues that they will be at odds on here? >> trade, immigration, net neutrality. emily: and social issues. why is it such a bad thing to open up the lines of communication? direct line to the president, somewhat of an unprecedented thing, you can influence the things that you are important for the tech community and the world really and job creation and whatnot, but at the same time learn where he is coming from and have a dialogue to open up these conversations. room, three trillion dollars worth of guy you are across those tech companies.
when you are controlling this much of the economy, it is about how you position america for automation and all these things when they take over. emily: we are learning that twitter was not invited. reuters reporting saying twitter was too small, this after donald trump uses twitter on a daily basis. politico has reported that the trump campaign was not happy with the way twitter handled a crooked hillary emoji. do you have any concern as someone who covers the company that this could interfere with twitter's business? >> no, i don't think so. it is clear that they are adhering to their core philosophy that they have to be at platform for everyone. jack dorsey has not been shy about sharing his political views. dorsey tweets his political
views all the time. best interesteir to maintain a good relationship with donald trump. the biggest validation you can presidentving the talked to the world through your platform, but at the same time, being invited isnvited i not that big of a deal. , and itout job creation is to a lesser extent of what you see from those guys. tech community does not necessarily create a lot of jobs relative to the weighted punches. apple is on, microsoft, facebook, google together account for 600,000 jobs, while walmart counts for 1.5 million in the united states alone. is unlikely that a lot of
that would be automated, so i wonder if trump and these companies can find common ground. >> they have to. even the jobs going overseas, the jobs disenfranchising u.s. workers by outsourcing them to china and india, those jobs are starting to be automated, so we have to prepare for the next paradigm of how the public and the constituency of the united states prepared sellthrough education initiatives so that in the next 2.0 technology world that they are able to work and contribute to society. even jobs going overseas will be taken over by robots. it is interesting that kanye west was invited. emily: and they came down for a photo op. travis kalanick was not there. the company said he was traveling.
he was named to the strategic and policy forum with the elon ceo, in addition to business leaders who will be advising trump on how the private sector thinks about some of these issues. is there anything you can tell us more about this particular meeting? >> i think it will be unclear important it will be to the strategic policy initiative. it includes pepsi ceo, but i think trump will be turning to them to talk about the future of transportation, how transportation and technology will work together, so this will hopefully be a good one as the communication moves ford, but no further details at this time. emily: that was selina wang from trump tower. in the latest tech funding board, apple has held talks
about investing in softbank's technology fun. apple may contribute as much as $1 billion to the fund. apple also invested $1 billion this year,lier marking a major shift in strategy for the iphone maker. trump thato told half of the fund would be invested in the united states. still ahead, our exclusive interview with bill merits, why he pulled the plug on a new health care fund. all episodes of "bloomberg technology" are live streaming on twitter. check us out. this is bloomberg. ♪
disney trying to recruit major hollywood studios according to people familiar with the plan. they are looking to add content to the disney anywhere service. said to be in an ongoing tug-of-war with five other major studios that support our format called ultraviolet. disney might have to change the name of the service to get other studios on board. attack focused meeting of the minds at trump tower this wednesday as the presen president-elect sat down with top executives. people ined that 62 the world control as much wealth as the poorest 4 billion. that is stunning. they could fit in this room, and
i probably know half of them, and that's down from 400 people six years ago, so i think there are some real problems to talk about that are different than whether silicon valley will get along with the president. emily: i know you are a close friend with peter thiel, how do you feel about his contrarian a potentially great influence on the president? is a friend and someone i respect a lot. he called it. he said the election was going to go this way. he said people were unhappy and pessimistic, and we have a new president elected fair and square, and as american, i think we should all want him to be successful, and so i have great respect for peter and his intellect. emily: has peter asked you to help in any way? bill: if peter asked, i would help him. emily: anything you would like to contribute? bill: i will leave it at that.
emily: there are still a large amount of people with great concern about a trump presidency. the cia has now told congress that russian night only try to election, but also elect donald trump. donald trump has attacked the cia for this revelation, if you will. what is your reaction to that? bill: i have not seen any evidence that the outcome would have been different. emily: we don't know. bill: no foreign power should interfere in our elections, but at the end of the day, i think we should judge trump on what he does. rule forhat's a good all of us to follow, and i think this news about the election is just breaking now, so it is hard to know what happened and what didn't happen. that: what about the idea rex tillerson could be secretary of state, somebody with strong
ties with russia and president clinton. he is not secretary of state, and that has not happened. exxon mobil is a giant corporation, and i wouldn't judge, i try not to corral people into what they can be as to what they have been. i would rather wait and see. emily: so, trump has said that climate change is a hoax, and i know you are somebody who is passionate about clean energy. perry ist is that rick the top candidate for energy secretary. do you have any concerns about the future of clean energy? bill: yeah, i have concerns. they go beyond that. governor of a large energy producing state. he is not in the position yet. emily: not official.
bill: it's probably not worth speculating too much, because part of the problem for me has been turning everything into fantasy football, a sporting event, and making judgments when nothing happened yet. so i deftly have concerns and would like to see clean energy advance, but i think bill gates had a great announcement about that. ways, some of this has not happened, but a lot of tweeting going on. bill: i don't look at twitter. i think we would all be healthier if we didn't. emily: bill gates, jack ma, jeff backing this clean energy fund. you think this fund will move the needle in an area that has exits.ow to have big so.: i hope i think bill gates in particular
has an amazing track record, especially health care, helping to rid the world of polio, doing the same on malaria. emily: you are on track to close this week. bill: i did this crazy thing called changing my mind. i did it. i left hundreds of millions of dollars behind, but i did it because i feel like there are a lot of venture funds right now in the valley. i felt like after 10 years in the business or close to it that there might be other ways to have a bigger impact on some of the problems i think are worth tackling. emily: i know initially it was a $300 million fund to a $500 million fund, did you have any problems raising the funds you wanted? whereno, this is a time
there is tremendous capital available, especially if you have a track record. that doesn't mean it is the right thing to do, so there is, interest rates are low, institutions are looking for places to deploy money, but it .s all much overfunded, peak vc emily: you are planning to do this on your own. i'm curious as to why. that once. i started at google ventures. have doneeverything i in my life apart from having a child, i have done the loan or started it alone, and i was fortunate to build an amazing team at google ventures. they are doing a great job, and there are lots of great funds in the valley, but there are problems. i don't know if being a professional vc, that the world
needs another venture fund right now. emily: are we in a bubble, peak vc? in a hugeink we are bubble. i think the election is a testament to that. there is a much too much capital available to investors, making too much capital available to entrepreneurs, which raises prices, expectations, and there are a lot of people working on what i think of as trivial problems as opposed to the real problems the country faces. emily: what are the trivial problems? bill: do we need another optimize advertising system to promote consumer culture. ? there needs to be some balance. out ifhow does this play there's some sort of catastrophe or disaster? good may be those are things to happen. ultimately interest rates go up sometime soon, as a result, the stock market corrects 1000 or
more points, and the pendulum will swing the other way, capital will become harder to come by and there will be an overreaction and it will seem like armageddon. i think we are overdue for that kind of correction. emily: who is in for a wake-up call? bill: i think a lot of us got a wake-up call in november, but i think you will see startups overfunded or over optimistic not able to raise future rounds. curious about why you left google, and i wonder if can't be done inside a big tech company very well. bill: i hope my last 10 years proves it can be. emily: so you think that model works? bill: i think it works. my last day was august 12, and beyond that, it is very difficult. is verya venture fund difficult. doing it inside a massive
corporation is very difficult, but it was successful. thei think that creating same model outside of google, notnot sure that, it did feel that inspiring at the end of the day, which is why it pulled the plug. emily: that was bill maris. one year after taking over the home, moving on to alibaba south china post. if you like bloomberg news, check us out on the radio. this is bloomberg. ♪
is going to divide itself into two groups, desktop vr and mobile vr. in a statement, i really miss the deep day to day involvement in building a brand-new product. with this role, i can delve back into engineer and development. meantime, the oculus founder will be moving to an undisclosed new role. a second majors security breach that may have affected more than one billion users. it said it has not been able to identify the intrusion in august 2013. it is important to clarify this is a separate hack from the one announced in september and in which 500,000 accounts were compromised. yahoo! just announced 500
million account breach, forensic experts, scoured the network, and now this is a second breach. is way they learn about this very interesting, and outside cyber security researcher who saw this on for sale in the black market. lost onethat yahoo! billion accounts, they have one is basically, that all of their users, so this is potentially a significant b low to the verizon deal. emily: they indicated the one in ,eptember was state-sponsored and they indicated possible state-sponsored involvement here. breach wast state-sponsored, they said, but they provided no evidence for that. hard to determine these
things, and the implication is yahoo! would have reason to say that to help preserve this deal. this one appears to be a straight cybercrime operation, and so the fact yahoo! scoured this network and did not find should reallyat race and questions about how well this company has secure their networks. about what me more you see different from this breach. >> in this breach, more records, one billion accounts. the passwords leaked in this breach were secured with an encryption algorithm. the other was supposedly equipped with the more secure encryption algorithm. even though know, they had been scouring their network. emily: there was concern the deal with verizon was already on
the rocks because of the initial hack. tim armstrong said he was cautiously optimistic the deal would go through. what does this mean for the deal now? >> big, open question. this is not just about user accounts. that yahoo! has been looking at what intellectual property did they steal. if you have lost all your user accounts and potentially significant corporate intellectual property, would you paying close to $5 billion for? has said they believed the breach is material, giving them the right to negotiate downwards or walk away. emily: yahoo! says change or passwords, they are on the issue, but now three years later, isn't the damage done? has been done.
this has been trafficked in cybercrime circles for three years. been using it for identity theft, send spam. telling people to change their passwords now, that's a good practice, but that's a long time. emily: that was jordan robertson of bloomberg technology. of "out of this world" a delay for spacex. late 2017,ned for but now pushed to may 2018. this is the capsule that spacex is willing to take nasa astronauts to and from the international space station, part of the plan. there had been speculation the flight would be delayed after the falcon nine rocket exploded. andex adjusted its timeline finalize its investigation into the falcon nine accident. emily: still ahead, we weigh in
bridges with the new administration. i think that is important. it is too early to tell what the policies will be. where wel be areas agree, and areas where there will be some disagreement. told us thebezos meeting was very productive. theand i spoke before election. i know you are not a donald trump supporter. what are your biggest concerns with the trumpet ministration? vinod: the area that needs the most conversation is around climate change and clean technologies. i suspect we will have relatively good agreement on things like skilled immigration, buts need to be addressed, that applies more to the larger companies like microsoft, amazon, and google, and apple. companies be smaller
around skilled immigration into this country. it is important to innovation, but i believe the new administration and silicon valley is focused on innovation. emily: bill gates also met with donald trump yesterday. let's take a listen to what we had to say. >> we had a good conversation about innovation, how it can help in health, education, impact of foreign aid and energy, and a wide-ranging conversation about the power of innovation. recode wrote an op-ed saying these tech later should not be meeting with donald trump. be ashamed of themselves because of what he has said about the tech sector and attacks he has made on companies from apple to amazon. what do you think about that idea? vinod: well, i think 50 million so voted for trump,
and i think we have to recognize that that happened. today, we need to work together and find what is the right bridges to build together that meet both of our needs. sittingeter thiel was next to donald trump in this meeting, influential and getting these folks together. he is a contrarian and not shy speaking his mind, but his views differ from a lot of folks in silicon valley. had you feel about him of being an donald trump's ear on silicon valley? vinod: peter is focused on innovation and capitalism, focused on less regulation, all of it jives with what the tech industry would like to see. i mostly agree on many of these issues. there are other issues where he has a different view, and i
think that is true in any time there are more than two people with strong opinions. emily: i want to get your thoughts on some of the cabinet takes. >>. rick perry for department of energy, an agency you wanted to cut but could not remember the name of. who has bigllerson, ties to russia for secretary of state. what you make of these choices? well, they have previously spoken out against clean technology and climate change issues. that is a little worrisome. i was on a panel a couple of .ears ago with rex tillerson we had different views and the and as he said, he's willing to pay less of an insurance premium to manage that risk then i might be willing to. i think that's a great starting
place for a dialogue, what is the level of risk, and what level of insurance or action should we take? new $1you are part of a billion fund focused on cleantech with no gates, jack ma, jeff a sow's. -- with bill gates, jack ma, jeff bezos. tell me what you would like to accomplish. low carboneed more technologies, whether buildings, transportation, or electric power. view, and a long investors willing to take high technological risks on breakthrough technologies. the purpose of the fund is to make both those happen, and if they do, i think there is less competition in that area and a lot of economic opportunity to create very large businesses. investmentskind of
do you expect this fund to make? vinod: bill gates has talked ,bout solar fuels, solar energy not electricity, but fuel for trucks and airplanes. that is a good example of a high risk technology, but a lot of potential. many others, nuclear is an area water, newmising, kinds of buildings, new strategies for building construction, so promising areas, and breakthroughs could result. i do believe enough technologies exist to have unsubsidized market competitiveness. unfortunately, too many clean technologies get associated with subsidies that are not necessarily required in every area. emily: last time you and i spoke, you said it is time to subsidizing solar.
do you continue to believe that now that we have a president-elect who may not believe that climate change is real? well, i think it is our job to educate him not on whether climate change is real or not, but the degree of risk we have of catastrophic climate it ends caused by climate change. risk and risk management issue, and i think it's a businessman, president-elect understands risks. microsoft is taking a second shot at chat box. .e will test the new bot that is next.
emily: two top republican the lawmakers offered strong support for u.s. intelligence officials rk contrast to president-elect trump. mitch mcconnell and paul ryan both praised intelligence agencies for taking on cyber threats from foreign governments, and there are new reports that russian president vladimir putin was personally involved in the attacks. says theins allegations are "absolute nonsense." met withalley leaders president-elect trump, many who backed hillary clinton and did not hold back their disdain for trump. one key question is, what trump's presidency will mean for
global tech investment and how venture capitalist should be preparing for coming years. spark has invested in companies like twitter and oculus. >> if there is anything we know about donald trump, a lot of and certainty follows him. there is a lot of discussion around this meeting tomorrow. people arethat these accomplished, smart, successful people i hold in high regard, and we have to surround the presidency in cabinet with more folks who are smart. emily: what you hope they convey? >> i hope they find common ground around innovation. i hope they open up a dialogue between the president and silicon valley. emily: how are you digesting this is far? what are you telling your companies.
there is a lot of weight and see. megan: we have all been internalizing this personally. keep on keeping on, build great companies, focus on hiring great people and focus on your business. emily: you used to work at kleiner perkins, now you are with the growth fund. what is the difference when you're looking at growth stage companies and how has your strategy shifted? about inflection investing. we are looking for companies that have found product-market fit and just need to put gasoline on the fire to become iconic companies. for metrics that we can point to that indicates that inflection point has taken place. they can be revenue, users, or an engagement. emily: is there more competition
at the growth stage now that the belt seems to be tightening at the earlier stage and it seems like fewer companies are getting a larger pool of capital? megan:megan: there is a tremends amount of capital, and everybody's capital is green, but we think there is a dearth of investors who can add value. emily: we are in a huge bubble, vc, what are your thoughts on that? megan: the choice will be around finding a partner good for your business, not just blank checks. emily: you announced an investment today, $20 million. spark is traditionally a consumer focused firm, and this is an enterprise startup. long historyhas a of investing in companies like twitter and others. there is this trend we are
excited about, the consumerization of the enterprise, but we expect individuals for the products and services we use at work to look and feel like the products and services we use it home, and that does not matter be hind a desk or behind a bar, we want engaging products. fully integrated platform for enterprise companies to build better products for their end consumers. emily: they are based in raleigh, north carolina of all places. are you looking beyond silicon valley more often now to find those diamonds in the rough? megan: we are always happy to get on a plane. theding a company outside bay area bubble is actually a competitive advantage. they sit at the intersection of three famous universities and have incredible access to talent at cheaper costs, so we consider
that a positive when it comes to investing. inly: where are you looking 2017? where do you see yourself placing bets given the uncertainty and the climate right now? megan: we will ride out this macro shift. andave invested in slack others, but we think there is tremendous opportunities for compelling, in gauging, delightful products for the work ways. we tend to be founder driven. about applied artificial intelligence, machine learning development, relegated to r&d departments. we are seeing products and services that consumers use. s ofwith fast amount data, and they can learn over time. arare excited about vr and
in the enterprise. emily: a trial after a company shut down an earlier bot when users got it to tweet inappropriate remarks. our bloomberg tech reporter tried out the new bot. >> a lot of people expected the interact will be with artificially intelligent bots. microsoft backs fired when it created this bot nine months ago. they have not formally announced it, but they have this bot on the app kick. we are going to try it out. let's start with who is barack obama. no, i'm not talking about this video. it sounds like the sort of conversation i have with my parents when politics,. , up.e more sor
up. one which is close to my heart perhaps? should britain leave the eu? have never been there is her response to that. everybody should go there. who is the ceo of microsoft. i'm sure they are awesome, but we have not met yet. formerne for her then, microsoft ceo, steve ballmer. do you like steve ballmer? that's a good one. i know they are associated with the company that made me, so i am excited to meet them. her comments on steve ballmer
will see google self driving cars on the road officially? probably have a commercial product soon. they have been talking about graduating, a term they use for a stand-alone business. alphabet is still figuring out the logistics and what it is like to build the stand-alone companies. emily: google has been working on this for years, and yet uber beat them to the market with a self driving car and partnership , buttraditional automakers why has it taken so long? mark: google will say uber has sort of a self driving car. google is aspiring to fully less, and they are probably the most advanced moving towards that goal, but still several years away. take a listen to what he
had to say about the competition in this arena, particularly when it comes to uber. >> travis and others have been vocal about the fact that the self driving car came in a way that is threatening business. he owns many customers right now. up with it for half the money, he would be in trouble. emily: tessler, the automakers investing heavily in this area. -- tesla, the automakers investing heavily in this area. mark: we are backed by the most powerful computing company in the world. differentiator inent radi some ways.
for google, they can afford to play the long game. emily: he has been running the unit for over a year, former ceo of hyundai. there has been turnover in the business. thrun was running it before that. piece in a big business week about the turnover at alphabet in general. we have seen the leaders of alphabet companies leave. why is this happening? wantinganother sign of to clean up the balance sheet and making it clear who gets the resources and why. mark: the founders want these companies to operate like startups. i talked to people who have left the team and some of the the gotion they have is to market strategy will change month-to-month. findare still trying to out what of the viable recurring
revenues. emily: alibaba south china morning post is set up for new leadership. jack ma, chairman of alibaba, bought the 113-year-old english publication. the move raised eyebrows and critics had concern that alibaba would influence reporting. the paper is focusing on all things digital and preparing to integrate e-commerce. the incoming ceo joined us from new york. take a listen. >> the opportunity we have at the paper is unique. it is one of the venerated news organizations of the world with 113 years of incredible heritage and history as a top-quality journalistic outlet. china morning post
occupies a critical and super unique position being the english-language language newspaper of record for hong kong. that means the paper gets to cover china with intimacy, but also objective it he, which i think will be more and more important in the world. is third thing is that it deeply personal to me as an asian american growing up in the western world, i understand there is a duality of views right now in the way china is being covered and i am excited about the opportunity to help bridge that gap. emily: let's talk about objectivity. i laid in beijing, and we read the south china morning post, and it was perhaps the only paper that did not seem to be a mouthpiece for the chinese government. owns thislibaba paper, is that going to change? is the tradition of independence and journalism going to go away? it has not changed and will not change going forward.
continues and myself to be committed to editorial independence as well as editorial integrity. morning postna with that 113 years of history has over the course of that history cover china and hong kong and the region with objectivity. that won't change. emily: how will you deal with censorship issues? will you censor things that the chinese government does not want to hear? gary: not at all. we have anare there, intimacy to china and understand the nuance of reporting inside and outside of china. but because of the one country to systems, press freedoms in hong kong continue to be protected by law, so we have the ability to be fair and balanced. spoken with jack ma, and what has he told you he wants from your leadership? gary: absolutely. they are truly committed to the legacy of this paper, as well as
the legacy of the news industry, and so what they are looking for two is our ability to translate that 100 13 years of heritage onto the new platforms and the new kind of scale that the internet allows us as a news organization to access. we have had similar conversations when jeff bezos took over the washington post, but what about the potential for conflicts of interest to arrives between alibaba and the reporting of the south china morning post, how we you navigate that line? gary: jack and joe have been adamant with the press and our internal team that the south china post covers alibaba just like any other company, and we are committed to that. emily: that does it for this edition of "best of bloomberg technology". we will bring you the latest in tech throughout the week, tune in each day. speak about we will