tv Best of Bloomberg Technology Bloomberg April 9, 2017 9:00am-10:01am EDT
♪ caroline: i am caroline hyde. this is the "best of bloomberg technology." where we bring you all of our top interviews from this week in tech. president trump hosts president in florida. we will dive into the major issues impacting tax payers and startups. plus, trump's administration cracks down on one of silicon valley's beloved visa programs. h-1b. they increased scrutiny for computer applicants. and visa restrictions may drive
top tech talent to other countries like india. we will dive into how the country might reap the benefits. but first to our lead this week, , president trump hosted president xi jinping in his mar-a-lago resort in florida. throughout the campaign trump , blamed china for stealing jobs and intellectual capital. but the two countries remain reliant on one another. must half of imports come from china, and multinationals have $228 billion in chinese investment at stake if trade war breaks out. we got the latest from ramy inocencio in florida. ramy: it strikes me as really interesting i have to say first off that this billionaire businessman donald trump and novice politician as we know is meeting someone who is quite the opposite, a seasoned the pushing -- seasoned politician but is now pushing back against luxury in china. money is tight, and that is one
of the things we must talk about. one of the big issues is jobs. donald trump over the campaign trail has been saying that china has been stealing american jobs and taking them over to china. another interesting topic we need to be talking about is currency manipulation. china of course has been trying to figure out where it stands in terms of the u.n. basket of currencies and the dollar. donald trump said it is potentially a currency manipulator. has not done so far. one final topic is the u.s. tried deficit, or if you look at it from the chinese side, the chinese trade surplus. $347 billion in 2016 was the amount of money the u.s. saw in terms of deficit. donald trump has been saying that has been very unfair and according to the american people, and he said he will do something about it. we will be looking at jobs, we
will be looking at the currency, and we will be looking at trade, caroline. caroline: ramy inocencio, live from florida, great to have you on the show. our next guests says the diplomatic relationship between president xi jinping and president trump is considered to be one of the most important in the world. and this will be the biggest test so far for the u.s. president. this person is a director at the asian institute. thank you for your time today. it still is amazing the significance of the relationship. i'm going to the bloomberg terminal, looking at a particular drop that shows the btv 198 for the u.s. users, u.s. total trade in china, 17% of all world trade is coming from china. this is crucial. how worrying is it trump has talked so tough on trade? >> you know, i think what is interesting is that you have heard the president have very tough rhetoric around trade, but there does appear to be two different camps in the trump
administration right now. you have certain folks in the administration, in particular you know his son-in-law jared kushner, perhaps secretary of , who have allerson much more pragmatic come business-oriented approach. how can we create jobs, how can we build the economy? they recognize that involves doing trade and doing business with china. there is certainly a different camp, you know, what you saw on the campaign trail, folks like peter navarro, who has been -- have been very clear trade with china is unfair for america and ripping jobs away. i think it is going to be interesting coming out of this meeting and going forward to see if the trump administration is able to find a middle ground. are they fearing more towards ene of the other -- veering mor towards one or the other, and what will their economic trade
strategy will be with regards to china. caroline: i'm going to check in the significance on trade, 17% is the reliance of the united states on china. you can go to btv 198. lindsay, it is also amazing when you are thinking of certain technology industries. we have focused on that on the technology show. state backed chip industries is one that wilbur ross has commented on that he is worried in china. some of them benefit from this meeting. we had the agricultural front coming from xi jinping. do you think there will be concessions on both sides of the equation here? lindsey: you know i'm not sure , how much you are actually going to see real deliverables out of this meeting. i think more than anything you , will see both leaders try to lay the foundation, set the baseline. they are going to make clear what their priorities are, which industries they care about, where they would like to see
things done, and also i think from the trump administration where they want to see china set a more level playing field. i think what they are aiming for is to lay a foundation, and we are actually going to see more concrete what comes out of that in the months ahead. caroline: as part of that foundation, we had the scoop from bloomberg colleagues talking about those asian infrastructure investment bank, potentially an invitation to the united states to join that coming from china. do you think that could benefit the relationship with the u.s., but also other hubs in the area, singapore, vietnam, taiwan? what does that look like? lindsey: sure. infrastructure is a huge priority in asia right now. there is tremendous need. i think there is a recognition that this president has talked about his desire to see infrastructure investment in the united states, so perhaps infrastructure is an area where you know this administration can
find common cause and common ground with administrations in the region. they would be great interest within china and other countries as well. looking at how the united states can play a greater role cooperatively on infrastructure. whether that means the united -- decides toed join the aib, that gets into broader strategic issues as well, but i know there will be an ask and push and they will consider it. caroline: and maybe the quid pro quo is you come into the aiib, and maybe tentatively potentially china can't invest , more even in u.s. infrastructure. we are seeing chinese money flow into startups in the united states. i am thinking of lyft. i am thinking of snap, taking money from chinese companies. how important is the money flow between the united states and china when it comes to startups,
and how much is the risk? lindsey: it is tremendously important. what will be interesting to watch in the coming months and years is i think there will be in some camps of the united states a closer eye in some camps on these investments in industry that some people in the own and states consider sensitive, where china is investing, and know how that is getting into u.s. technology, so i think that is going to be a double-edged sword. on the one hand, there are companies definitely reaping the benefits of widespread chinese investment and money they can't get elsewhere. on the other hand, i think there will be greater sensitivity to where and how the chinese are investing. caroline: that was lindsay ford, director of the asian society. now to germany, where angela merkel is backing legislation that threatens facebook and other social media platforms.
if companies could be fined they fail to remove that illegal content. they can also give users the option to complain. if passed by parliament, it would be the toughest regulations facebook would face in any country where they operate. coming up, computer programmer applicants may face scrutiny when applying for jobs in the u.s. donald trump's latest moves ahead. and later, a chinese conglomerate with grand plans to be the next tesla, netflix, and apple all-in-one, but it is facing a serious cash crunch. this is bloomberg. ♪
the best and brightest talent from around the world, but critics of the program including president trump say the visas allow companies to bring in lower paid workers. in response the u.s. citizenship , and immigration services issued new guidelines late last week that require additional information for computer programmers applying. and they extended another program. we spoke with the author of multiple books, most recently driver in the driverless car. ,he is also a distinguished fellow at carnegie mellon. he has written extensively on h-1b visas and the tech work. >> they are doing the same stupid thing they did with the muslim ban. and now they are haphazardly last-second applying them to the visa. it doesn't make sense. if they are locking out computer programmers, it means my students at carnegie mellon, stanford, can no longer get jobs
here. why do we want to lose these brilliant kids? they are going to go back to their home countries, and is going to hurt us, it will benefit the rest of the world. caroline: you are looking at the average salary for these high demand h1-b visas is $72,000. many have felt this is what needed to be driven up higher to ensure this is not about getting cheaper tech talent in, but the more educated and better tech talent into the united states. would you agree the h1-b could be changed? how would you advocate it being changed? vivek: h-1b is a flawed visa, but the next step is the green card. when people apply for permanent resident visas, they are stuck in the h1-b visa loop. the easiest fix to the immigration problem is this issue about declining salaries is to untether the visa from a company. if they hire someone with h one
b visa, then they get someone with a higher salary, they can leave and continue over there. that would get rid of the problem in one fell swoop. why don't we do that? this way there is no cheap labor anymore. caroline: so it is more about the green card that needs to be fixed. you have written at length, your book, the immigrant exodus, that was at the very heart of the fact that people come to the united states educate , themselves, and then in fact are driven back home. is china aware and benefiting from the potential brain drain that is going on? vivek: you know one way to , measure this is look at the number of unicorns these billion dollar companies get excited about. you go back 15 or 20 years ago the only ones that existed where , in america. now you have about 100 of them and india. we have about 80 of them and they noted a. so basically we are losing our advantage. we are losing our ability to build innovative companies because we are losing the talent.
it is a lose-lose. it is a brain-dead strategy frankly. caroline: have you done the research to show those being built in china and india are being built by u.s.-educated tech talent, or maybe could it be from europe, they see what silicon valley has built and they want to do it too? vivek: if you look at the background of these managers, practically every company has returnees on their management team. it means we educated them, we trained them up, then we told them to go bye-bye and compete with us. it is such a loss to america. china has more innovative technology companies than the u.s. does. by do is building better eye at -- ai than apple. apple is copying the designs of some of the social media apps in china. the are copying the designs of phones in china. a copy from china because china is innovating beyond what apple can do. apple is considered to be our
most innovative company. it has to steal from china. caroline: sad, changeable, how can we see tech talent fostered in the united states for those who indeed grew up from the beginning in the united states? vivek: you know as immigrants , want to come to america. we love america. this is the place to be. if we simply allowed people to come here and give them visas, they would come, and yes, they would make americans compete, but as long as there is not a salary disadvantage, competition is good for the country. the problem was, when you have cheap labor, indentured servitude, when people are tethered to their companies, that is when the problems occur. fix the problem, we fix the entire range of problems. caroline: i am going to throw some other range of problems at you though. it is not cheap labor that many people feel has undone manufacturing. a lot of people feel it is automation.
i know this is something you have written an awful lot about and had a lot of thought worked into. what about the answers to that? what about educating to ensure that perhaps everyone can have a utopian view of the world rather than potentially a dystopian view as we go into robots taking over our jobs? vivek: that is what i discussed extensively in my book driving the driverless car. technology is allowing us to solve the grand challenges of humanity. and robots are taking the jobs of humans. every technology has good and bad. the fact is we could benefit from this if we led the innovation and if we now started training up our workforce. you are right, we have got to train americans in using robotics, and being able to maintain these robots, because manufacturing is coming back to the united states. it is not the old manufacturing that allowed us to assemble goods. it is highly automated robotic
manufacturing. we should the implementing them, and for that you need the best and the brightest people in the world. caroline: you say policy makers need to listen to this, educators need to listen to this corporate leaders need to listen , to this. are they? vivek: corporate leaders get it. they see the need for new immigrants and new technology. policymakers are getting dumber by the day. it is sad to see what has happened to america. the iq level of capitol hill is decreasing every election it seems. so this is a loss for the united states. the people get it. one of the problems is this big gap between the haves and the have-nots. i say has an have-nots, not only in money but also in knowledge and education, experience in social values. we are building two americas. people who are left out and getting angry, and people who are not participating in the innovation.
your viewers are all tech savvy. they get it. the trouble is -- we are right next to mar-a-lago where you don't have, this has become trump territory, and people don't want to listen. they are feeling left out and feeling disenfranchised. we need to figure out how to equalize. we need to offer the same technologies to everyone to educate them, inspire them motivate them to be part of this , whole thing. the we make sure rebalance the dangers of technology. with robots, it is good. if we have robots serving us, cleaning up, it is good. when they take our jobs away, that's bad. this is what we have to learn. caroline: do you advocate things such as the universal basic income, do you advocate taxing robots to supply a safety net for those who do not want to be retrained? vivek: universal basic income is a critical ingredient. taxing robots does not make sense, because i could have my dishwasher be a robot. are going to tax my dish washer?
whether we are ready or not, jobs will be eliminated. a lot of talking to go into, how do we transition? the jobs that are coming, whether we are ready or not jobs , will be eliminated. caroline: coming up the , entertainment industry is getting in on the vr craze. we take you to china, where one of the country's biggest filmmakers has plans for the technology. and add cash crunch to economic growing pains. we look into the chinese conglomerates long list of problems. this is bloomberg. ♪
potential for virtual reality. when one is geared up like a videogame good immersed in a deep space killing spree. >> it is like a combination of a movie and a game experience. stephen: all you are really doing is walking around a barren, foam padded basement. >> this is freaky. stephen: the so real vr venture is filled by a chinese film visionary who made some of the most iconic silver screen work into the yard. >> for me, as a movie director, this technology is significant. it is not flat. you can see color in 360 degrees. you can interact with it. it opens up a whole new world. stephen: so real, he wants to industry around theme parks in china. >> so real wants to become the universal studios of china. why universal studios? because it is backed by a wealth
of intellectual property. says chinese mental growth should surpass the u.s. to become the world number one market by 2019. as many of china smartphone makers roll out their own vr devices, but this year is pivotal. idc says the shift is already happening as venture capital shifts the content away from the initial equipment makers. >> wow. that is a whole other world, down the rabbit hole. nothen: this person does want to be one of those left for dead. they are developing their own games and plans to have 10,000 thercades across china by >> we don't have good enough 2020. content to get repeat customers. people play our games for 10, 20 minute tops. stephen: this man says vr right now is best suited for b2b applications by companies that
can afford it. >> when they become a lot more mature, and there are a lot of applications, people can start to put it down. >> the vr industry is ready for a breakthrough, but those who left because of the bottlenecks will all swarm back. when everyone wants to be in vr, it will be too late. the closest start first wins. stephen: unless of course the virtual space zombies get them first. >> one more, ok, dad. stephen: stephen engle, bloomberg news, beijing. caroline: a cash crunch at leeco continues. according to people familiar with the matter the company , delayed paying u.s. employs this month. it is the latest sign the billionaire may have over in his plan to create a foothold for the internet-mediate empire. selina wang was the first report the story. reporter: this has been really fascinated company to track. they are -- i was at the grand
unveiling in october about their u.s. strategy. they bought this enormous plot of land in silicon valley. they said they were going to hire 10,000 employees. and now this, month after month we have seen a severe cash crunch. we have seen suppliers allegedly missed payments, stripped of broadcast rights. this is really the story of a company that went too far too fast, and sources have been telling me this has stoked frustrations with a lot of the u.s. employees. there were a lot of promises given, and delaying payroll for employees is always a bad sign. the company told them it was due to getting money out of china. a lot of my sources say they believe there are other issues involved as well. caroline: the company has responded saying actually the payment wasn't missed, but you know differently. and indeed what therefore do we , think in terms of the higher level employees they had in
management to lure over? now they seem to be looking for the exit. reporter: definitely, they hired a very high number of executives from qualcomm and samsung. two of the four main executives they have hired have already left, all in the span of one year. he has this other division, a big venture in electric vehicles, and that company has seen significant turnover, especially their u.s. finance team. most of them actually left at the end of last year. they started to rehire some folks for that team, but sources tell me it was frustrating for them because at the end of last year they told the ceo that we can't keep spending and spending. he said keep on going the money , will keep on coming, and obviously it didn't. so that also stoked frustration which caused a lot of turnovers. caroline: technology reporter selina wang. still ahead, details on the technology being used to build the hyperloop. we will hear from hyperloop one
♪ caroline: welcome back to the "best of bloomberg technology." i am caroline hyde. now hyperloop one was in washington hoping to win support from policymakers. remember, this is one of two companies trying to create the futuristic transit system, three times fast as high-speed rail, into a reality. they finished installing the tube on the nevada test track to install -- and sure this works. they also have 11 routes proposed with up to 20 around the world including abu dhabi and dubai. the ceo spoke to us about his company's plans in the u.s.
>> well, this is american-made technology. obviously our reputation innovating across so many categories of world transition has been world leading, but in the area of ground transportation and in the area of high-speed rail, there is no real american technology. it is an l.a.-based company that has grown from a garage to 260 employees right now in less than 27 months. we are demonstrating that we can really build something new something different, by bringing , the greatest minds together. providing them with the capital and tools required to make this happen, and the answer to their question is we can do this in , the united states if we collaborate with grover mintz. if we -- with governments. and get support from regulators so we can dovetail with existing transportation programs and write a few new rules for hyperloop. i think those two things are the conversations we will have here
as well on capitol hill. caroline: three winners, what happens to those projects definitely starting to break ground? you said you want to have hyperloop beginning to be a reality by 2021. rob: so we have 35 semi finalists, 11 of those are from the united states that we just launched here today. we will bring that about down to about dozen, then we have to do more work, detailed engineering studies, really get to the next level of specific route analysis, the economic analysis, because we are doing this to transform economies and drive economic growth and advantage. there is a little bit more work to do with those 12 finalists, but then what we do want to do is when we find governments that are supportive, we are working with a route that makes sense to build, that first production system, we will help finance that. we will deliver values that our team is bringing in working with
regulators and governments and obviously designing the technology to solve real-world prop -- transportation problems, so we are going to try to pick a route that makes sense, that can be financed, and take a route that can be built quickly. that will get us to a system and production in 2020, 2021, and we are very encouraged and hopeful that one or two of those could be in the u.s. caroline: how close is the technology? you mentioned you are installing the tube installation, that is up to 1000 miles. how quickly can you prove the technology works? rob: yeah, the company's guiding mission and the thing that has created so much excitement in this young company has been to build a full-scale prototype. we can talk about this forever and talk about the advantages of the technology, but we are near completion of a full-scale
prototype. although meters, it combines all 500 the innovations we have developed since the company was founded, custom-designed electric propulsion system, the tube that allows us to remove most of the pressure and therefore resistance. eithers that will carry cargo or people. the control system that allows us to manage very high-frequency pods. we will accelerate quickly and decelerate quickly inside that 500 meters. that is not what you and i will experience as we moved to a production basis but i will be , transparent, this is a full-scale architectural system. thathen taking architecture, deploying it in architecture environment, is only the next step, so we are very excited that within the next couple of months, we are going to show the world that hyperloop is real, and we are getting close and we are excited that that has been the single
most important milestone for our company. caroline: can it be real in a highly populated area such as say the northeast corridor? rob: yeah, the beauty of hyperloop is we require much less land. whether we are above grade, perhaps on an expanded right-of-way, and expanded rail white of way, or win 8 -- right-of-way, or any title, because of the factors in our architecture, by reducing pressure, you reduce the size of a tunnel that could come into a city center. so i will be very transparent. we need less land. we could be two thirds the cost of high-speed rail, three times as fast, and in our analysis but we have been sharing with experts around the world, to the three finds -- two to three times the economic benefit of any other mode of transportation on the efficiency of economy, to create very large labor pools between different centers in
major cities, so we can go in places that other modes of transportation find difficult, and the north, northeast corridor is one of those where i think hyperloop will make sense , and we have got some work to do there. caroline: hyperloop one ceo rob lloyd. we also had a chance to catch up with the company's executive chairman and asked about how this project is being funded. >> we've raised $160 million in funding in our 2.5-year history of founding, so it has been we , talk about this ability to do moon shots, build something from an idea to now in the deserts of nevada of reality is pretty spectacular. ,nd we have got great investors present and future, who will be part of what we are building, so it is going quite well. we will have more to say in the near future.
caroline: such exciting projects as these sometimes are not without controversy. and one of those controversies has been the lawsuit between you and the original cofounder you , and the original cto. how does that affect money? shervin: we are going from strength to strength. we are 250 people, incredible talent. we are building this. we are -- everything is looking really great. there hasn't there hasn't been , any slowdown in our progress to make the hyperloop a reality. caroline: coming up, future visa restrictions could drive top tech talent to other countries including india. we will take a look at the country's growing tech landscape and how it could benefit from u.s. visa reform. plus the return of mcafee, the standard company reemerging as a standalone company after being scooped up by intel. we will speak with brian taylor
♪ caroline: tillerson a startup is , about to conclude a $60 billion round of funding, that includes an investment from intel according to people familiar with the matter. the company hopes to improve highway safety, hoping to generate huge savings for the trucking industry. 'slerton -- peloton technology makes it less dangerous for trucks to travel in close proximity. now back to a theme of the week president trump's h-1b visa , policy have gone largely theseged, and while wholesale changes make wait -- may wait another year, president trump remains an advocate to reform the h-1b visa program. other countries could reap the
benefit. one of these countries is india. we spoke with the nexus cofounder. the partners have a heavy track record of investing in india. >> benefiting greatly from so-called reverse brain drain. rather than people coming from india to the u.s., now we are seeing a big outflow of talent, and really the top potential talent in many cases back to india. so it is really beneficial to india to have the people who are back. caroline: are they largely indian born who come here to be educated? are we even seeing u.s. born looking at other tech hubs? naren: mostly it is people who were born in india, went to school in india and the u.s., maybe the u.s. for a few years, work for apple or a startup, then they want to go back to india and the opportunity might be better for them. we don't see too many people born in the u.s. go back to india and work there, but i
think that might change in the next five 10 years. caroline: what about putting off those who are coming here to be educated? you yourself came over to be educated in california stanford , and the like. you originally had been educated over in india. do you think this could stop people from coming to the united states? naren: i think what is stopping people from coming to the united states, two things. opportunities in india after school in india, and secondly, the negative feeling that is being created about immigrants in the u.s. people are saying is it worthwhile? caroline: the pr is already hurting? naren: it is hurting big-time. it will continue to hurt in a major way long-term. caroline: let's be optimistic, looking at the silver lining that these clouds of bad pr and concerns about immigration, where are the opportunities? you have already got a multitude of portfolio companies in india. which areas which sectors are , really hot in india?
naren: technology has been hot in india. if you look at the silicon valley startups, 30% of startups have indian founders. and today, technology is global in nature. if you're based in silicon valley, or you are based in mumbai, or you are based in beijing, there is really not much difference in what you are able to do. today, bill gates could have started his company in holland. how does it really matter? you are distributing globally in any case. that is something to keep in mind in the country, that the entrepreneurs are mobile. they can do anything, anywhere. what myink that is target is. so we need to create attractive and modernized for startups no matter where the people are from. naren: are you -- caroline: are you starting to see perhaps -- i spoke with the adobe chief executive, and he said we will go where the talent is. we start to see apple, microsoft more and more satellites set up , in india and china to harness
the right tech talent even if they remain? naren: they are doing that already in a major way. microsoft has 10,000 employees, ibm has more employees in india than anywhere else except the u.s. and maybe we have crossed the u.s. number also. it is the right thing for companies to do. but i want the u.s. to stay the technology leader. i think we are able to carry the financing here. there is an infrastructure here, there is a culture here that can promote technology in a big way. if we lose the lead, the world is going to be a loser, so it is incumbent on us to keep the u.s. in the forefront. caroline: what is interesting is you see some deep pockets in heat forng into in the these startups, are you feeling more competition, not only u.s. vcs, sequoia has one, but also china?
naren: yes. we see competition from them, and competition is good for us. they are our partners and our competitors, so net-net, it is positive. caroline: meantime facebook now , reports 170 million users in the region. that is a 42% jump from 2015. facebook has been working on increasing its presence by laying down 500 miles of fiber optic cables in uganda and partnering with local wireless carriers to create wi-fi hotspots in nigeria and kenya. now mcafee is making a comeback . more than six years after intel bochy antivirus company for $8 billion, rebranding it as intel security, the two are parting ways. mcafee will once again be a standalone company. it is owned by ppg and intel. jason kelly set down with brian taylor, partner at ppg.
brian cybersecurity is one of : these existential threats to our digital lives. it threatens our families, it threatens our companies, it threatens our institutions. mcafee is one of those businesses that is there to protect us. the mission of the company, we feel it is important, and we are glad to be a part of it. reporter: so there were big dreams for it. now it is a standalone company. what gives it the advantage there? bryan: i think somebody at intel figured out the 6000 billion dollars government -- guerrilla, they were not the owner for the cybersecurity company. we caught them in a moment where they were reflecting whether they want to double down and reinvest in this business, or do we want to sell? we gave them an alternative, a partnership. they are so committed to it, but we refocused on the core business and reinvest in the business. reporter: what does the private equity playbook look like here?
once you get into the guts on your already in. what are the levers you can pull? bryan: well we had 16 months , from when we started this deal to win this closed yesterday, and we had a strategy that is our strategy, keep pushing forward the product set. it is a really great set of products that can be better, and they are making it better every day. second, we have deep relationships with great customers, but it is even broadening our scope with those customers. and there is a landscape of cyber security software companies we can buy and put through this distribution channel to deliver value for our customers. we are focusing on that. reporter: potential acquisitions down the road you think you can , build this organically and maybe some buys out there. bryan: sure. i think cybersecurity is one of the most overfunded. it is like the terminator, sheep in wolf's clothing, and is just
a set. we think we have the platform to buy those features sets and deliver value to customers. reporter: so you have oversight of software and technology at tpg, and not just buyouts, but also in growth capital. bryan: that is right. reporter: what you see in terms of themes beyond cybersecurity? bryan: cybersecurity is important, but you are right. we do large-scale capital deals and smaller growth deals, $15 million seed investments to $1.5 billion equity checks, and we have seen the whole landscape. we have been working together for over a decade, and at any time we have eight to 10 different themes we are pursuing in the marketplace. our business model, our strategy is pursue proactive themes, from a real point of view build , proprietary relationships that are long-lasting around those themes, and we find it creates interesting opportunities. reporter: what is the one you are most interested about beyond cyber? bryan: health care.
it is a $3 trillion industry that is completely retooling their back office and there are import and software business is being built to deliver on that promise and we have been , pursuing it for a number of years, and we have just closed our first major investment, and we have others in the works now. reporter: competitively, who do you run into most in the market? is it vcs, strategic, private equity? bryan: when i started doing this in 2000, there were two or three of us, and that was it. today, every private equity firm says they have a software practice. i am so grateful we are at a place -- i have been doing it for 15 years. partner has been doing it 15 years. we have been together 10 years. and if we are proactive and thematic and how we perceive the market, we are not facing a lot of competition. there is a big enough market where we find situations like mcafee, it is just us and the seller trying to build a partnership instead of a transaction. reporter: when you look around
here, san francisco, silicon valley beyond around the world, , how do you feel about valuations of the buyer? bryan: i remember in 2003, we hit $3 billion in software buyouts. we thought it was the top of the market. last year, it was 55% of the overall equity industry. people have come to appreciate the power of these businesses. the revenue, the defensibility, cast and version -- cash in version, and i am confident software will penetrate the enterprise and revolutionize how we do business, and it will be thriving. reporter: last question, on the other side on the exit side, the ipo window open, there are a lot of active buyers out there? is it open? bryan: it comes and it goes. i am thankful our strategy is not predicated on the ipo exit. there are many avenues. we sold one of our businesses to another private equity firm. it was just the right moment and
the right buyer at the right time. we focus on great businesses and let the exit focus on itself. reporter: too much capital, not enough? how do you feel? bryan: i don't focus on the macro. i focus on the micro. i we finding interesting opportunities and can we drive value around that. caroline: coming up, aol tim armstrong on what his company will look like after the merger with verizon is finalized. and details on the newly announced a vision called oath. for somen is ready football. the tech giant will take over from twitter as the nfl thursday night streaming service. we will have all the details behind the big win. this is bloomberg. ♪
reporter: in an nfl scrimmage off the field, one company just scored the rights to stream thursday night football. it is a huge win for amazon this year, outbidding facebook, youtube, and last year's winner twitter. amazon will pay $50 million for 10 games in september. that is a significant increase from the $10 million twitter paid for the same number of games last season. according to people familiar with the deal amazon will offer , the games for free to its amazon prime subscribers worldwide. of course the games aren't , completely free as prime membership costs $99 a year. which is another big shift from last year's streaming model. twitter offered thursday night games to everyone for no cost. part of twitter's appeal was having a social element while watching it, a way to talk about it with other fans on the same , screen. but since the partnership twitter has lost key executives, , cut staff, and explored a sale. the company also leveraged less
than 3000 views a minute while tv broadcast averaged 15.8 million. so amazon has a lot to prove. this is its first major push into live streaming and sports. the e-commerce giant may just be getting into the sports streaming game, but for now amazon can take a victory lap. ,caroline: also announced this week verizon will announce a new , division called oath that is the debut that coincides with the telecommunication giant's merger of its aol unit with its yahoo! asset. tim armstrong said the unit will oversee 20 brands and reach one billion consumers. he talked about it on daybreak america. >> we are launching like berkshire hathaway, we have a b&b oath, it allows us to clear the lane to really promote yahoo! and and well and techcrunch, and movie phone. it is really a values-based
brand. it is long-term. some of the reaction is very short-term thinking, and we are a long-term company. we have done really long-term strategies. we are big believers in brand and believers and a long-term commitment to talent. reporter: besides being a great executive, you are interested in marketing. you get this much attention -- people have been saying, how much did they spend on this? >> we basically have not -- we developed the brand and house. last 14 hours, we probably have gotten $50 million of brand marketing for it. when we go to launch brand campaigns for yahoo! and aol, it will be clear. even though it will be leaked, it has turned out to be good for us. reporter: exactly how is this mortar -- merger going to work? and can you run up against your old shop of google and facebook? really somebody will have to take them on at some point. tim: i would say, david let me , start with verizon.
verizon has a long-term strategy in the media space. we were the first acquisition they did. yahoo! is next. we will touch over one billion consumers. i think we are in a very good position to launch the largest house of trusted brands in the space. google and facebook and amazon are all partners of ours overall. we are focusing on a business model side of brand advertising. i was at google for 10 years. i see an open lane and space. i see advertising space, that is where we are going. reporter: is marissa mayer going with you? tim: we are right now, the executive scene is me and marissa and this will come in terms of leadership, which we will announce in q2. marissa and i have said before marissa will stay through the , next phase. the next phase will be a mixture of the two executive teams. caroline: that does it for this edition of "best of bloomberg technology." we will bring you all the latest in tech throughout the week. tune in each day, 5:00 p.m. new
♪ david: you started out, your father was a stockbroker. have you ever considered go into banking? jamie: i knew more of what i didn't want to do. i did not want to be a doctor or a lawyer. david: you had a lot of jobs, offered the ceo of home depot. jamie: it was a hell of a run. he fired me. jamie: i am not a hired gun. david: do you think the country is better off for having dodd-frank? jamie: the system is completely recovered. part of that is dodd-frank. david: you would never consider running for office, have you? >> would you fix your tie, please? david: well, people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. just leave it this way. alright.