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tv   Bloomberg Technology  Bloomberg  June 20, 2018 5:00pm-6:00pm EDT

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♪ emily: i am emily chang in san francisco and this is bloomberg technology. fox,y has offered to buy outbidding comcast. candy and results compete with the streaming giant -- can the end results compete with the streaming giant? how does credit karma in sure -- ensure users
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are safe? story.to our top disney is close to winning approval for its $71 billion deal for 21st century fox's entertainment assets, creating a potential insurmountable hurdle from -- for comcast. disney has also agreed to sell assets to address competition problems. joining us now from new york is a reporter covering the story in los angeles. we also have our bloomberg media reporter and our senior analyst. do we know about andthe deal is laid out,
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how this is a fatal flaw for comcast? disney has come out with about $71 billion. share -- three dollars a share higher than what comcast proposed. executives had a meeting today in london. the fox board has recommended it. the bjoobj knew. -- doj knew it is about to approve this offer in as little as two weeks. they are about six months into this process and talked about divesting some assets as needed to get this deal done, which is the regional sports network and maybe a couple of other things as well. that bob iger and james murdoch have been talking.
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why is james murdoch more attracted to disney? >> the culture is more in keeping with the fox content assets. iger is the greatest manager on earth. prefer they would much to be owned by the walt disney company than comcast. emily: does comcast have another move? laura: i don't think so. see the higherl price being taken. see the vote go for the comcast bed -- bid. this could be over rolled. -- overruled. emily: a showdown could be coming. what you expect to see in terms of how this plays out? analysts are speculating in
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terms of a share price offer. the play could be something that is fairly unique and attractive, to build upscale in hollywood and differentiate yourself -- up scale in hollywood and differentiate yourself. but those companies want to win this group of assets. i don't think these companies will be giving up anytime soon. emily: can this combined entity compete with the likes of netflix? >> the question has come out, why are these media legacy
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businesses buying more legacy assets? murdoch thought they couldn't build a scale that was needed. they are all trying to build scale and hoping by being bigger in size, this would help. that alone should be able to help them against the netflixes of the world, to have massive budgets. -- who have massive budgets. y: bob iger has been extending his contract. is this potentially setting up a james murdoch to play a bigger leadership role at disney? >> i don't think that. i don't think they would allow james murdoch to take a meaningful role. emily: how does this set disney up if this goes through?
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it gives a direct to consumer more content, both in production and library. these libraries disney is about or 30 years old and they were spending $4 billion a year for 30 years -- were 30 years old and they were spending $4 billion a year for 30 years. if it as the fox assets, -- adds the fox assets, they could prices at $12 or $15 because the library is so much deeper. emily: what are people saying in hollywood? people have been in a wait and see mode for a while.
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deal,er happens with this they will go from a landscape where there were six major hollywood studios to potentially three or four in the coming years. that is something not a lot of people expected. there is overcapacity to some that innd you can see the weekly box office. there will be a lot of job loss. there is a lot of consolidation that needs to happen. emily: thank you all. ala -- tesla is suing a
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former employee accused of stealing company cigarettes -- secrets. allegedly wrote a computer program to steal proprietary information and send it to three unverified entities. judgeis asking a job -- to prevent the leaks of any carmaker secrets and is suing for damages. coming up, silicon valley has been trying to cash in on the border wall. and, check us out on the radio, listen on the radio app, or on sirius xm. this is bloomberg. ♪
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emily: the battle over the u.s. border with next go is not just a political fight -- with mexico is not just a political fight. looking toley is address comprehensive of immigration reform with big money government contracts. rosoft's cloud contract with ice recently went missing as the battle over family separated at the border was all over the news
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-- families separated at the border with all over the news. us more is our reporter was written extensively on the tech sector. karen, tell us exactly what happened with microsoft. they are talking about how they are against separation of families at the border, but their work with ice has gotten a lot of pushback? aren: microsoft touted this contract with ice back in january and how it had this great potential future. all of a sudden, it disappeared. scrutiny,t of media it was quickly put back online and they have had a ball of pushback from their own employees saying, we don't want any contract with ice. microsoft their work has been functions, the
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boring stuff of a big pure eaucracy, but bur now employees are saying, we don't want any contracts with them at all. ily: this is coming from a letter from microsoft employees by the new york times. "we refuse to be complicit. we are comprised of a growing movement who recognize no sign of any of these companies planning to protest their government contract, right? karen: no, or even anyone say, we will let this one lapse.
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response -- what do you make of the response of tech companies? so many heavyweights are coming out, saying they are against that fine lineng between politics and business. companies, it is easier for them to take a position. they don't have as much business directly with the government. the cofounder of air bnp was one of the first executives to come out against this policy. ingrained inas tech operations. movement -- but you have not seen everyone, volunteer has not said anything, which is one of the largest contract holders of -- pl
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said anything, which is one of the largest contract holders of ice. for are looking comprehensive immigration reform and getting more high school workers in their company. you have written an incredibly compelling piece about the history of technology at the border. using the united states tech at the border right now? what is working? karen: there are many parts to the border. there are the official ports of entry and the surveillance technology being used. huge expanse of the border between united states and mexico. a lot of it does not have fencing along it. the government has tried over decades to use surveillance technology to bring the image of border crossings into local
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patrol station so they can respond. colleague did reporting on this together. immense, with an extremely harsh environment. this is different than deploying this system in the middle of a city. it is way out there and makes technology a lot harder. technology and sensors have become less expensive. we will see change over time around this. emily: the founder of oculus has a new tech startup, proposing to use vr technology to stop border crossers. a big piece was written about this in "wired." this company is not much thinking about how this affects but there isilies,
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optimism about this kind of technology as a solution. are you optimistic? karen: we have seen it is hard to deploy at a large scale. doing is they are trying to use more off the shelf components and put them together in kind of a new contacts. -- new context. the government was trying to do these new projects and they exploded, basically. this definitely has potential, but the harshness of the environment out there, it has to be tempered with living in e, you haveout ther these crazy weather patterns, and largely most of the crossings our families looking for a better life. that makes it harder to do the type of enforcement you see in
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other countries. people often look to israel as an example of a high-tech border, which is true. but they police it with the military force, and they are not ashamed about that. practical along the united states border, given its size and they are facing somewhat of a different threat. emily: thank you so much for joining. coming up, we hear from the credit karma ceo about protecting consumer data. this is bloomberg. ♪
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the president and chief operating officer of goldman the bankked about expanding operations in the cryptocurrency market. are talking about doing
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some other activities in bitcoin. emily: one of the biggest seems to emerge in fintech is the use of data and how companies collect and store information and prevent more breaches. it is a top priority for credit karma, says credit karma. we're joined by ken lin. equifax breach happened, sign-up set credit at creditign ups karma actually spiked. what is your reaction? ken: this is something that will happen more and more. we want to make sure we have the right access and protection. there is this part of the
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relationship that really matters. for credit karma, we make sure consumers understand access and education and make sure they have it. >> there is a lot of talk about how credit companies collect and aggregate user data. how are you applying that data and keeping it safe? key isey key -- the beginning people access to information they historically do not see. providing access, and number two, consumers have more power to see when there are errors. the other part of that is the first party aspect.
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consumers are giving us consent to look at that information. information,e that and i think those are important aspects of the business. work a trail blazer -- were a trail blazer in applying in giving this to consumers, but now it is no longer novel. one in three americans use credit karma. why is that and how do you keep growing market share? consumers -- are looking for the options credit karma provides. we see about $4 trillion worth of consumer debt. we are able to help users optimize, when is the right time to apply for different products? that is what consumers are looking for and what credit karma is building.
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>> walk me through the 2017 revenue targets and what is the goal for this year? company,re a private so we don't share a bond that information. -- a lot of that information. but we value our members. >> you have given advice on loans and auto deals. what is next? ken: when you talk about the future of finance, there has been great innovations. when it comes to consumer problems around what loans to there is actually not that much innovation. when a consumer registers for credit karma, we spend time
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understanding how they are using their finances, and how we can predict and help them get to the next stage, whether it is saving for retirement or buying their first home? half a billion dollars was recently invested in the company. it has a $4 billion evaluation. it has been around for more than a decade. how are you thinking about an ipo? to helpipo is a tool consumers and change the space. we think about that first and foremost. raising capital should not be the end goal. is perspective is that there a lot of meaningful investment to can do in the market. we want to make sure we invest in the right ways. your cofounder is from silicon valley. that has helped you understand the average needs of americans.
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are enoughk there companies in silicon valley that address the needs of average americans? ken: i think there needs to be more. the companies that play in this space are so large and have .arket power, component of supporting ecosystems. -- but we are a proponent of supporting ecosystems. the ones that make real change will put money into the hands of everyday americans. >> a fascinating conversation. emily: the ceo of credit karma in new york. one google employee is speaking out about the lack of diversity, equity pay, and more. you can check us out on twitter and follow us at tictoc on twitter. this is bloomberg. ♪
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emily: this is bloomberg technology. earlier this month, alphabets annual meeting was turned on its head when the employee considered tying pay raises to diversity. but the sentiment has been growing internally that executives are not doing enough to address workplace harassment, and more. a long time and way at google who has petitioned to create that are policies and procedures. she joins us in new york. parenthave mark bergen want to start with the big
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picture. not much progress on the diversity report. women are only 31% of the work force but they get points for more transparent and more information about attrition. what is your reaction to the fact that not much has improved in 12 months? >> i'm disappointed that not much has been done. there's a lot more that could be done to improve diversity and inclusion. emily: so what do you think the problems are? said,le brown at google when the report was released we care deeply about creating an inclusive culture for everyone and while we're moving in the right direction, we are determined to accelerate progress. google executives are often saying all the right things. >> its true that they are saying the right things, the problem is they are not doing
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the hard changes that need to happen within the company that would materially affect making changes to the way they conduct their business. emily: so you helped create a addition with co-worker.org pushing for better work pace policies. ending things like harassment. he worked at google for a long time caret we don't often hear from employees will they are currently at a company per well you sticking up about this? >> we tried to fix the problems internally, but we reached a point where we realized we couldn't help this problem entirely on our own first of all, this is a medical problem that affects not just google but all tech companies. secondly, we needed for leverage and of high to apply public pressure to get this resolved. of thewhat do you make fact that google employees are increasingly speaking out when we never heard from them before? >> it is something happening
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across the industry. just yesterday we saw microsoft employees, over 100 employees assign a petition about their work with ice caret so, it is starting to spread a little bit. google for a long time had a lot of avenues where people can air their grievances. they have a culture of having open debate and is -- and yet there have been issues where management has refused to move. now, this past year there have been significant changes. the military contract with the pentagon, that is no longer being renewed in large part because of an employee protest movement paired. active on, you have some of these issues. tell us what you are doing and what you are hearing from your colleagues about this arrangement that google has with the u.s. government? >> im confined in what i can talk about but the primary
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issues i am talking about with the media relates to working conditions, angst that materially a black employees ability to be safe in their work vices. it is true that employees do have a robust culture of communicating and expressing dissent within the company. this has led to positive results for google and the world at large however, i can't eke specifically about the civic projects that google may or may not have engaged in paired because i am concerned about retaliation from my company. you tell uscan about your own experiments at google and the experiences of your colleague that you have witnessed? it is not just about hiring, it is about retention and regression. how have you felt about your own journey at google and you feel like management has supportive of advancing your career? >> i think that i have been very lucky that i have eight
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supportive management chain. i know that other people have been evidently left. they have had experiences where they had hostile managers that refused to advance their emotions and career prospects. i know of able who have been assigned the wrong level upon hire and had it take to or three what their assigned peers have been assigned. it's a situation where a lot of people, myself and would it had many micro-aggressions. situations where people talk over you in meetings or deal your ideas. even theink it will onset at google. there are systematic problems about how they assess performance and assigned levels to people. i think it holds back minorities arear as how equitably treated with the company and what career prospects are. emily: google does have a fairly robust peer-reviewed system which employees have told me can
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be easy to game if you have a lot of friends. if you don't, it can be more difficult. >> i think with her that from a lot of employees are google is the management because at the same time they are facing lawsuit on total opposite end. the fired engineer cleaning the has has been disseminating against white males. that certainly -- i think the idea is google health they are between a rock and a hard place on issues. i think there was a point -- the company has been a trail blazer around silicon valley. everything from the way they give out free food which is something all the countries death companies aspire and look to google to set the path on hr and company culture and hiring and it seems like this issue that the employees are pushing management to a be a leader on this as well. emily: i want to talk about the department of labor investigation into google pay. a wide-ranging pending
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investigation alleging that it is unequal. google has even as a statement experiences should be based on what they do and not who they are paired we conducted our first pay equity analysis 2012 and completed the most recent ones in 2017. we looked for unexplained a differences in gender and race and the and made upward pay adjustments as necessary. based on analyses and adjustments, we erupt as distant and -- zero statistically different pay district. >> i think they have control for all the factors that are responsible for a bunch of the discrimination paired they said we adjusted for level, poor performance rating. when these are the things -- the exact things people are complaining about saying they are treated unequally peered so
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of course when you control for those angst, the pay would be regarded as equal. i have a friend that i referred to google and she had four years of experience. the recruiter talk to me and said, hey, we're putting her through the system and when they sign her to her interview. they set the interview this person for an entry-level position. and i went to the recruiter and said, this doesn't seem right. i know of plenty of other people with that level of experience who have been brought in a level higher. the recruiter told me i need a reason to increase her level two level or, such as a higher expected compensation. we know that equals past compensation, there compensation history and expectations tend to be affected by their gender. as a result, i can't imagine that if this is a systematic policy of alphabet that it would result in having a hole large number of people who are underrepresented minorities in assigned to the wrong level
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because of the fact that they didn't give their recruiter a pay target because they didn't want to name the first number. i think it's a situation where you can say, you can totally have a inequality and say come adjusted by level and performance everything is fine. so i think the numbers look good on paper, but the reality on the ground is why different. emily: now, we know that the founders of google a lot of of voting power. were you disappointed that shareholders voted down this proposal to taipei to diversity progress? >> i am certainly not surprised. control i insiders at the company, getting the proposal passed by the vote count was going to be a long shot. a significant number of shareholders who hold the docs and in out -- outsiders
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pursuing having a safe work lace free of harassment. you have been active on twitter offering to help microsoft employees. our google employees organizing at all regarding these protests? can you tell us anything happening at the grassroots double? >> i have seen a lot of employees who are can earned about the ice detention. a lot -- a large amount of fundraising or the children that are affected. i also know that google employees are broadly concerned about the ethics of what we as google employees work on as what we as tech workers work on. therefore, i am on many others are working together with microsoft employs to help them as best as you can with ensuring that a to have a voice in what their employer does. engineer at google.
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thank you. enthusiastblockchain have been boasting all the various solutions for the technology and now he why and microsoft are paring up to use this in the gaming industry. and tune in for a new episode of european conversations with robert smith airing wednesday at 9 p.m. in new york. this is bloomberg. ♪
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emily: while the price of declines have taken a tumble, there is a lot of interest in watching. global spending is expected to reach $2.1 billion. more than double the $945 million spent in 2017 hurt let's
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get to carolina hide. >> thank you very much indeed. paul to -- let's talk to rhody. he is in seattle. talk to us. the company announcing a partnership with michael soft this time for content rights or media and entertainment. it is all about gaming. paul: to start with. the solution where trying to solve here is the incredible complexity of business complex -- business contracts. and all the videogame publishers out there. there are several thousand publishers and games. every single one of them has unique contracts and rules for the unique countries. that is a hugely complex problem. this he: how can expanded? is it as easy to apply to other
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areas other than royalty and content? can blockchain easily be purposeful? paul: absolutely. or videod royalties games are similar to movies and entertainment. plan to put out this solution of ross all ranges of intellectual property. emily: ey geta: why did involved in this? i'm sure that got plenty of blockchain expertise in the company. paul: they do. microsoft has been an incredible technical partner. not only do we have deep process knowledge around it, but we have been partners with microsoft in the technology development. they were putting together process around art contracts. this will be the biggest
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blockchain industrial blockchain in the world. out,it is fully deployed our engineers worked alongside microsoft engineers. larger thane even them combined. carolina: talk about the scaling challenge paired it is what has and holding back any who have frustrated with why it can't be used for the payment solution. i have you been able to scale to get so many transactions when it is an industrial solution? paul: there are some advantages when working with the microsoft environment. we chose a program called quorum. we made some choices in the design architecture that will allow us to speed up the process. the most important thing is if you look at platform like ethereum and bitcoin and others, they have plans for scaling, but what is or challenging is
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figuring out the business process application and business value creation. that was the biggest driver for microsoft. we are able to take out two thirds of their cost of managing. and, we are able to drop the time required to process and sections and tell partners how much they have coming. we dropped it like 99%. timeiggest cycle compression we have had in my career. carolina: where else are you looking than? what other industries? if this number that ey is already looking at? what about other technical partnerships than microsoft? paul: we have a foundational principle at ey that we believe blockchain's will do for ecosystems of companies what erp did for the single enterprise. anywhere that you have complex business logic and shared network control that need to be diplomatic, it is a good solution. the early ones we are working on our things like supply-chain management, logistics partners,
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manufacturing, any kind of intellectual property. ultimately the goal is to have an integrated system where we could take license token from a microsoft solution and drop it into a an effect for building materials for a car in a car sharing environment. there are lots of different solutions that can go and to end. carolina: i've got to get your take their on what i'm hearing. you hear from every big bank ceo, i don't think or know if there is much longevity in crypto, but there certainly is in the technology that underlies block chain. what do you think about the crypto that is blockchain is built upon? do you think it has a long-term staying power as many of those who are investing in it believe? is towhat i would do break the two things. there is cryptocurrencies, like klein and ether. -- like that coin and ether. they definitely have one jeopardy.
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the platforms are likely to be even more powerful. in the long run, things like ethereum or quorum, a token can be a payment token or have dollar or euro. those will certainly be out there, but we believe the long-term future of blockchain technology is inter-: company collaboration. based on classical the currency tokens like dollars, euros, yen and other types of tokens we are used to using. carolina: there arises the private watching. paul brody, it has been great having your expertise. thank you so much. coming up, from being denied a visa to being voted one of the top ceos here at our conversation. this is bloomberg. ♪
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emily: social media giant
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instagram has announced it has reached a billion active users. facebook has about 2.2 billion monthly active users. snapchat has felt 100 million. it will start a new chapter of mobile video. so that users can watch longform vertical video. the video could be up to an hour long. earlier in the show, silicon valley has a long complicated history with migration reform. my next guest is somewhat intimately in earlier with the highs and lows of the system or he grew up in china. when he applied for a visa in the united states he was ejected eight times. he went on to become a corporate vice president at sis oh. -- at cisco. raised $145 million in funding including from sequoia capital.
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on thursday, he was named the number one ceo in the united rates according to the online recruiting site glass door. eric joins us now. inc. is a much for joining us. >> thank you for having me. emily: what went through your head when you heard about this on her? eric: this award is not about me. it's about our employees achievement. it truly lets the culture we as a team have. emily: tell me about yourself or you were born and raised in china are you mentioned -- you applied for a visa eight times. and you still applied against? ? carolina: carolina: eric: i've planned for was borntimes said i in china and came here in 1997 as a new immigrant. web xed web back -- emily: when you were at cisco
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you weren't happy with the product that they were creating? and they are the giant in this industry. didn't you go to your bosses and say this isn't working? eric: i did and i was working very hard to make the web editor. 30 years later, i did not see a single happy web x customer and i felt like i had obligation to fix that. cisco is a great company but it was not a collaborative project. i had no choice but to leave to fix the problem. emily: lots of controversial discussions happening right now on immigration reform and the separation of families at the border. what has been your reaction to all of this as one who has been through this process? eric: i think i'm ultimately it is to making a tough decision. make sure all the decisions are
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made sustainable. separating kids from the family is absolutely wrong. you cannot punish those kids. the kids are crying. i have three kids. i feel very sad. emily: silicon valley has a long-running diversity problem as we have been discussing her and are in a unique position to make a difference here at what are you doing at your company to make silicon valley a more inclusive place? -- oneilicon valley is of the reasons it is so sick intle is cousin it brings diversity. if you have people coming from all over the world together together to discuss something, that is where innovation comes from. emily: and yet women are underrepresented and minorities are underrepresented. eric: absolutely. that is why we need to look is on the problem. our perspective, we look at the female engineers and female executives.
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we look at our executive team. so, mark zuckerberg, lloyd blankfein, mark any off, those are the ceos on this list several years and row. what are you going to do to stay on it next year? eric: first of all, i admire them. perspective, our especially for me as an immigrant, i have to work harder and harder. take sure to keep our employees happy and keep our customers happy. emily: ceo of them. thank you so much for joining us. that does it for this edition of tim burke technology. i'm emily chang from different as appeared we will be back tomorrow. this is bloomberg. ♪
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haidi: yes stocks listed by a rally in tech, concerns ease about a potential trade war. streak. iran edging away from a threat to veto higher production. haidi: president trump changes course on immigrant family signing in order to understand his own policy after widespread outrage. >> disney is said to be close to

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