tv Bloomberg Technology Bloomberg June 20, 2018 11:00pm-12:00am EDT
first, to our top story. disney is close to winning approval for its $71 billion deal for 21st century fox's entertainment assets, creating a potential insurmountable hurdle 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. what exactly do we know about how the deal is laid out, and how this is a fatal flaw for comcast? >> disney has come out with about $71 billion.
three dollars a share higher than what comcast proposed. executives had a meeting today in london. the fox board has recommended it. the 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. emily: we know that bob iger and james murdoch have been talking. 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. i think they would much prefer to be owned by the walt disney company than comcast. emily: does comcast have another move? laura: i don't think so. i think you will see the higher price being taken. i think you will see the vote go for the comcast bid. this could be overruled. emily: a showdown could be coming. what you expect to see in terms of how this plays out? >> analysts are speculating in 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 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, who have massive budgets. emily: 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?
>> it gives a direct to consumer more content, both in production and library. these libraries disney is about to buy were 30 years old and they were spending $4 billion a year for 30 years. if it 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. whatever happens with this deal, 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 degree and you can see that in 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. tesla is suing a former employee accused of stealing company secrets. the engineer allegedly wrote a
computer program to steal proprietary information and send it to three unverified entities. tesla is asking a judge 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. ♪
♪ 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. silicon valley is looking to address comprehensive of immigration reform with big money government contracts. microsoft's cloud contract with ice recently went missing as the battle over family separated at -- families separated at the border with all over the news. after bloomberg asked about the
omission, it is back online. here to tell 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? karen: microsoft touted this contract with ice back in january and how it had this great potential future. all of a sudden, it disappeared. after a lot of media scrutiny, 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 office-type functions, the boring stuff of a big pure
-- bureaucracy, but now employees are saying, we don't want any contracts with them at all. it puts them in a tough position because they come out strongly saying that this type of policy is on -- is unacceptable. emily: this is coming from a letter from microsoft employees by the new york times. 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.
emily: what do you make of the response of tech companies? so many heavyweights are coming out, saying they are against this, but walking that fine line between politics and business. >> some tech companies, it is easier for them to take a political position. like one of the cofounders of airbnb. iny are not as ingrained tech operations as some of the business-to-business type of companies. but you have not seen everyone, volunteer has not said anything, which is one of the largest contract holders of -- palantir has not said anything, which is one of the largest contract holders of ice. they are looking for comprehensive immigration reform
and getting more high school workers in their company. they are also looking for comprehensive immigration reform. emily: you have written an incredibly compelling piece about the history of technology at the border. hundreds of millions of dollars spent on technology. projects started and stopped. how is the united states using 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. x-ray cameras, databases, biometric databases, things like that. there is the huge expanse of the border between united states and mexico that is just a rain. errain. t 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 patrol station so they can respond. me and my colleague did reporting on this together. border is immense, with an extremely harsh environment. there are huge wins, extreme heat and insects eat through sensors. 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 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. stephen leiby wrote about this in "wired." this company is not much thinking about how this affects immigrant families, but there is -- but did express optimism
about this kind of technolas a solution. are you optimistic? karen: we have seen it is hard to deploy at a large scale. it doesn't mean things don't work in particular areas. what they are doing is they are trying to use more off the shelf components and put them together in kind of a new context. the government was trying to do huge thee of -- these bespoke projects and they exploded, basically. this definitely has potential, but the harshness of the vironment out there, it has to be tempered with living in cities and out there, you have these crazy weather patterns, and largely most of the crossings are families looking for a better life. that makes it harder to do the type of enforcement you see in
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. that is less 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. ♪
but exploring very cautiously. 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. with more than 80 billion users, it is a top priority for credit karma, says credit karma. we're joined by ken lin. >> after this equifax breach happened, sign-up set credit karma -- sign ups at credit karma actually spiked. which means consumers would trust another financial institution with their personal data to protect themselves. what is your rion? ken: this is something that will happen more and more. we want to make sure we have the right access and protection. for us, there is this part of the relationship that really matters.
the outrage at times was with a company that he did not have a relationship with and your information got breached. 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. you collect a lot of sensitive information on your users. how are you applying that data and keeping it safe? ken: the key is beginning people -- giving people access to information they historically do not see. we are 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. consumers are giving us consent to look at that information.
we don't share that information, and i think those are important aspects of the business. >> free credit scores was something you 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? ken: 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. >> walk me through the 2017 revenue targets and what is the
goal for this year? ken: we are a private company, so we don't share a lot of that information. from a board perspective, we were 1% off. we see good growth for business. 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 apply for, there is actually not that much innovation. that is what we are very much focused on. when a consumer registers for credit karma, we spend time 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? >> silver lake recently invested half $1 billion in the company. it has a $4 billion evaluation. you have also been around for more than decade. how are you thinking about an ipo? ken: an ipo is a tool to help consumers and change the space. we think about that first and foremost. the time to use an ipo is to raise capital. it should not be the end goal. our perspective is that there is 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. do you think there are enough companies in silicon valley that address the needs of average americans?
ken: i think there needs to be more. to get to scale is the way you change the industry. the companies that play in this space are so large and have market power, but we are a proponent of supporting ecosystems. at the end of the day, these companies that are getting to scale are the ones who will change the ecosystem and make finance my efficient. that will put real money into the hands of everyday americans. >> a fascinating conversation. emily: the ceo of credit karma in new york. coming up, 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.
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 employee at google who has petitioned to create that are policies and procedures.
she joins us in new york. and we have mark bergen parent want to start with the big 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? danielle brown at google said, 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. >> it is true that they are saying the right things, the problem is they are not doing 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 problemis a systematic 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. emily: what do you make of the fact that google employees are increasingly speaking out when we never heard from them before?
>> it is something happening across the industry. just yesterday we saw microsoft employees, over 100 employees assign a petition about their work with ice caret so, 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. -- protest movement. emily: liz, you have active on 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?
>> i'm confined in what i can talk about but the primary issues i am talking about with the media relates to working conditions, angst that -- things that materially a block 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. 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. emily: what can you tell us 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 supportive management chain. -- a 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. s and careermotion prospects. i know of able who have been assigned the wrong level upon hire and had it take to or three years to be assigned what their peers have been assigned. it's a situation where a lot of people had many micro-aggressions. situations where people talk over you in meetings or deal your ideas. but, i think it will even the onset at google. there are systematic problems about how they assess performance and assigned levels to people. i think it holds back minorities as far as how equitably are 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 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 company 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 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 investigation alleging that it
is unequal. google has even as a statement -- google has given us a statement that says google 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 -- and ethnicity and made upward pay adjustments as necessary. based on analyses and adjustments, we have 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 -- the discrimination. they said we adjusted for level, poor performance rating. when these are the exact things
people are complaining about saying they are treated unequally. so 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 talked 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 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 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 inequalities and say 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 -- to tie pay to diversity progress? >> i am certainly not surprised. voting power 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
who are outsiders and in pursuing having a safe work lace -- workplace free of harassment. emily: you have been active on twitter offering to help microsoft employees. are google employees organizing at all regarding these protests? can you tell us anything happening at the grassroots double? -- grassroots level? >> i have seen a lot of employees who are can earned about the ice detention. 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 -- employees to help them as best as you can with ensuring that a to have a voice in what their employer does. emily: engineer at google.
thank you. coming up, blockchain enthusiast 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. ♪
-- in 2017. let's get to caroline hyde. >> thank you very much indeed. let's talk to paul rhody. he is in seattle. talk to us. the company announcing a partnership with michael soft -- with microsoft launching a blockchain solution, this time for content rights or media and entertainment. it is all about gaming. paul: to start with. the solution where trying to -- the problem we are trying to solve here is the incredible complexity of 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. it lends itself extremely well to being deployed on a blockchain. caroline: how can this he
expanded? is it as easy to apply to other areas other than royalty and content? can blockchain easily be purposeful? paul: absolutely. rights and royalties or video games are similar to movies and entertainment. music votes, patents. patents.books, we plan to put out this solution of ross all ranges of intellectual property. caroline: why did ey get involved in this? what was the value add for microsoft? 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. been puttings have together process around art
contracts, scaling up their blockchain. this will be the biggest blockchain industrial blockchain in the world. when it is fully deployed out, our engineers worked alongside microsoft engineers. caroline: talk about the scaling challenge. it is what has and holding back any who have frustrated with why it can't be used for the payment solution. why 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. it allows us to scale. 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 challenging is'
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%. the biggest cycle time compression we have had in my career. carolina: where else are you -- caroline: where else are you looking than? what other industries? if this number that ey is -- is 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, manufacturing, any kind of intellectual property.
ultimately the goal is to have an integrated system where we 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 -- go end to end. caroline: 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? paul: what i would do is to break the two things. there is cryptocurrencies, like bitcoin and ether and others.
they definitely have one jeopardy. 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 intercompany collaboration forpayment in exchange products and services based on classical the currency tokens like dollars, euros, yen and other types of tokens we are used to using. caroline: there arises the private watching. paul brody, it has been great having your expertise. emily: thank you so much. coming up, from being denied a visa to being voted one of the top ceos here at our -- top ceos.
emily: social media giant instagram has announced it has reached a billion active users. facebook has about 2.2 billion monthly sers. 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. as we mentioned earlier in the show, silicon valley has a long complicated history with immigration reform. my next guest is somewhat intimately in earlier with the highs and lows of the system or -- highs and lows of the system. 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 cisco. he has raised $145 million in funding including from sequoia capital. on thursday, he was named the number one ceo in the united
rates according to the online recruiting site glass door. a recognition based on the anonymous and voluntary reviews from employees over the last year. eric joins us now. thank you so much for joining us. >> thank you for having me. emily: what went through your head when you heard about this on her -- this honor. 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? eric: i've planned for 20 or 30 times said i was born in china and came here in 1997 as a new immigrant. i joined webex and worked on webex for many years.
emily: when you were at cisco, 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 bossean say this isn't working? eric: i did and i was working very hard to make the web better. 30 years later, i did not see a single happy webex 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
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 -- discussing. you are in a unique position to make a difference here at what -- difference. what are you doing at your company to make silicon valley a more inclusive place? eric: silicon valley is -- one of the reasons it is so sick -- so successful is because it embraces 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. we look at our executive team. emily: so, mark zuckerberg, lloyd blankfein, mark any off, -- marc benioff, those are the ceos on this list veral years and row. -- in a row. what are you going to do to stay on it next year? eric: first of all, i admire them. i think, from our perspective, 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. we should be fine. emily: ceo of zoom. thank you so much for joining us. that does it for this edition of tim burke technology. -- bloomberg technology. i'm emily chang from different as appeared we will be back tomorrow. this is bloomberg. ♪
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