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tv   Best of Bloomberg Technology  Bloomberg  June 15, 2019 11:00am-12:00pm EDT

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emily: i'm emily chang and this is "best of bloomberg: technology." we bring you all of our top interviews from this week. apple's top supplier is coming up with a contingency plan to move out of china if the trade war continues. will other tech firms follow? shares soar on the first day of trading, we hear from this security firm crowdstrike's ceo. , congress is challenging the industry. we hear from a top lawmaker who
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does not think big is necessarily bad. first, to our top story. apple has a backup plan if the trade war continues to escalate. manufacturing partner says they can make all iphones bound for the u.s. outside of china if necessary. our tech editor joined us with the details. >> this is an executive who was talking to investors and other people in taiwan. our reporter in asia was there to listen. this is more of a plan. they did not ask foxconn to do this yet, but they are saying they are very capable of doing it. it has raised a lot of questions. we spoke to an analyst and he
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was saying that if you are talking about final assembly, which is what foxconn does, if you are looking at that, it might be relatively easy to move. if you are talking about the whole manufacturing process, that would be a lot harder. vonnie: we know that politically china and taiwan are at odds. is there any danger that china would retaliate against the company if apple were to move all of its production to the taiwanese company? alistair: that is a good question. apple has to be careful in general with this kind of thing. some of the activities going on with huawei in the u.s., where the u.s. government is encouraging companies and consumers to steer clear of huawei. that has really raised concerns about what happens to the treatment of apple in china. there have been a lot of concerns that there has been an
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unofficial recommendation that chinese consumers not buy iphones. that market is really important for apple. it is a big risk. vonnie: hon hai, of course also known as foxconn, had a plan for a wisconsin plant. that would have employed 13,000 people. does its plan for wisconsin change materially at all? alistair: the executive who was speaking yesterday seemed pretty bullish about the wisconsin plant and he kind of placed it in the same strategic realm, this idea that you could move the iphone assembly out of china. india is something to consider, too. foxconn has plants in india already and was dealing with similar types of restrictions from the indian government. so it certainly does have a lot of options around the world. emily: bloomberg tech's alistair barr. the recent wave of antitrust
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scrutiny is not stopping salesforce from gobbling up the competition. this week, they agreed to buy tableau software for more than $15 billion. tableau helps customers turn raw data into easily understandable charts. it is expected to give salesforce even more ways to help customers. it is salesforce's biggest acquisition to date and means they have now bought more than 60 companies in the last two decades. for reaction, we were joined by an analyst and a correspondent from bloomberg tech. >> this makes a ton of sense. tableau has been moving upmarket and they have always had the best r&d and the best product. but what they lacked was an enterprise salesforce. massive capacity for driving
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sales, it is a landgrab opportunity for salesforce to cross tableau into their existing customer base. it also makes sense for the companies in terms of their mission. they want to digitize and help customers go through a digital transformation. the challenge salesforce has had is not having the existing systems outside of their crm. tableau can really provide that. emily: an analyst out there thinks this is not one of salesforce's core competencies and does not help expand the core business. of course, you have got other competitors out there like google. talk to us about the range of reactions. >> it has been diverse. microsoft is out there and they have just been very dominant. particularly because they can sell cloud services and power vi at the same time.
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one analyst has told me that microsoft has been eating tableau's lunch. some said the deal was quite expensive, but others say all software stocks are valued pretty richly these days. what it shows is that marc benioff is not afraid to buy companies that he covets. he said he was interested in the company for a long time. and as you said, salesforce is really benefiting because it is not on the government's radar. the enterprise market is so competitive. because consumers are not involved, it does not seem there is a huge power imbalance. emily: what do you have to say to the skeptics? microsoft was eating their lunch, tableau was about to be
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in competition with google as well. now they will be a bit more protected under salesforce. but this is not necessarily additive. >> i think the skeptics will say a couple of things. that this was a defensive move on the part of tableau. i do not think that is true. in q1, they landed a 100,000 seed deployment. if you are landing customers like walmart, some of the most advanced companies are already using tableau at scale. they are growing recurring revenue almost 40% a year. some will say this is expensive, but if you look at the mulesoft acquisition, i believe that was 16 times forward sales, i believe this is about 10 times forward sales. for something growing recurring revenue 40% a year, they could have even paid more.
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and this is a very valuable asset. without looking into all of the different silos, it is impossible to digitize a company. so i do think while it is outside the core competency of salesforce, it will be synergistic in what they want customers to do. emily: tableau also has customers like verizon and netflix. in the context of salesforce's other acquisitions. >> there have been similar products which salesforce admits have been a flop. they are on a trajectory of moving from a customer relationships powerhouse to more of a general-purpose information technology company. emily: coming up, the year of
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the tech ipo continues. we'll talk to crowd strike's ceo about going public next. and if you like us, check us out on the radio. this is bloomberg. ♪
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emily: the year of tech ipos continue. shares of crowdstrike soared in their first day of trading, jumping as much as 97%. crowdstrike raised $612 billion million giving them an $11.4 billion market cap. >> we are really focused on going public when we were ready. from our perspective, we have given a long-term view. today is one day will be raised a financing round and will continue to focus on the future.
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we should look back at today and celebrate it, but tomorrow we are back at it. focusing on customer success and preventing breaches for large and small companies around the globe. emily: how much are you following what is happening globally? and how much exposure do you have to china? george: we don't really sell in china, so that has not affected us. from a china perspective, we typically see a lot of activity around geopolitical tensions. that activity tends to manifest itself in cyberattacks. with the unrest, we continue to see attacks and we help nations around the world against the state actors. emily: certainly, what is happening with the trade war is impacting u.s. companies. the cybersecurity landscape changes, the threat landscape
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changes. how do you stay competitive in an ever-changing world? george: a big part of our success is the fact that we have built a crowd platform. there has not been a security cloud. part of our overall approach has been to collect a lot of endpoint data, security threat information. that has driven a lot of the artificial intelligence algorithms we have. the more data we consume, the smarter our technology tends to get. that is a big part of the overall story. what we focus on is really the platform approach as opposed to building yet another point product. that has resonated well with customers. emily: what are the biggest trends you see on the horizon? given that we are headed into the heat of a new election season and the last election was
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certainly not secure. george: whether it is elections, property theft, or destruction from ransomware, these are all cyber threats that organizations have to deal with. it underscores how vulnerable organizations are to these sorts of cyberattacks. unfortunately, they have been burdened with legacy technology that has been incapable of identifying these breaches. we focus on creating technology to stop malware and breaches. emily: what trends are you seeing in company decision-making? are they broadly very vulnerable? george: broadly, they are all vulnerable. there is a tapestry of security products that have had given
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them the protection that they need. from an awareness perspective am -- the good news is that boards of directors are taking this seriously. when you look at some attacks we have seen where ransomware literally took companies off the map for many weeks, in some cases months on end, it moved from just purely being infected to being a systemic risk for the corporation. worst-case, they are spending hundreds of millions of dollars trying to recover their company. emily: meantime, we reported that cisco has held talks with crowdstrike about a possible deal. the deal did not happen. why did you decide the right course was staying independent? george: i cannot comment on rumors, but our goal has always
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been to be an independent company. we built the company and operated it as it was a public company when we were private. our growth and our financials are of a size and scale of a public company. we went public when we wanted to and i think we have seen a warm reception from institutional investors. emily: george kurtz, ceo of crowdstrike. slack is inspected to be valued between 16 and $17 billion when it lists publicly next week. that is more than double the last evaluation less than one year ago. unlike many companies, they are forgoing the traditional ipo route with a direct listing. investors will be allowed to begin selling shares immediately. >> it is coming from people familiar with talks about the deal as they are getting ready for the direct listing next
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thursday. obviously, the people involved are the company, bankers, investors, thinking about how much will the company be worth when it lists next week? what is interesting is they are doing this math based off of some projections about the company's expected revenue for next year. so they are looking at this year's projected revenue, the expected growth rate and forwarding to fiscal year 2021, because of the way the fiscal year calendar works, and expecting basically a 20 times revenue to make the valuation. emily: this brings to mind the headline in which uber was targeting a $120 billion valuation, which i understand was floated by company's bankers and had nothing to do with actual demand. that is far out from the ipo. we are now one week from slack's ipo, so this feels specific. >> this will be different simply because it is a direct listing
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rather than an ipo. my understanding is that an ipo, there's a little more control over where the bank and the company, where everyone will agree where the stock will open. they will set a price and set boundaries around that. with a direct listing, it's a little different. what is going to happen is, at some point, there will be a reference price will come out either from the exchange or the bank. as we found with spotify last year, the reference range was quite large. somewhere between $40 per share up to $130. pretty wide, not very specific. and what happens on the morning of trading, the exchange and direct market maker, which in this case is citadel, will collect, buy, and sell orders from a bunch of different groups and then try to figure out based on those orders where to open trading. that may take several hours. emily: the skeptics say slack's financials do not appear to be as positive as, let's say,
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dropbox or docu-sign when those companies went public. what is the response to that? ellen: slack has not been talking a lot. but it is true. if you look at the growth rate of its revenue, it has been declining over the last few years. what is interesting is when we talk about the forward projections for the valuation of the company, they are based off an assumption that the revenue will grow 50% next year because they have just seen that it is expected to grow 50% this year, but if you look at it, it grew near 80% the year before and over 100% the year before that, so it has actually been declining. it is unclear to investors and people observing and deciding whether to buy this stock that the growth rate slack saw in some of its earlier years will continue at the same rate. emily: because they are doing the direct listing, it means investors and employees can sell their shares right away. should people buying into this company for the first time be worried about a talent exodus if
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employees can suddenly cash out? ellen: we have already seen there has been some trading happening on the private market ahead of time. it has been pretty consistent with the expected price for the valuation of this listing, somewhere around $16 billion or $17 billion, and volume has been as expected. i think people are looking at that as an indication of whether people are expected to sell a bunch. with spotify, if you look at the first few days of trading, there was not a lot of volume, and in the end, people will probably have faith that slack is a company to be held in the long-term and will not have a big selloff. but you are right that investors and employees, unlike in a traditional ipo, can sell the first day. emily: spotify was very quiet on the day of its direct listing. do we expect to see slack executives in new york on the floor of the exchange celebrating? ellen: i'm not sure if there will be banners and all that, but the ceo will be in new york.
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they will be doing something that morning on the new york stock exchange. when you talk to experts about what they expect or what they hope will be a win for the slack listing, i think no news is good news. if it is quiet, if it stays stable, if there is some trading and nothing crazy happens, it will probably be seen as a pretty big win. emily: bloombergs ellen huet. as a reminder, bloomberg is an investor in slack. hong kong's falls into chaos as citizens protest and extradition but what does it mean for investing? later, dropbox is coming after microsoft and google. how they aim to evolve from a file storage system to a collaborative workspace. this is bloomberg. ♪
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emily: in hong kong, chaos in the streets. thousands of protesters
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demonstrated against a proposal to allow extraditions to china. this as hong kong's legislative council attempts to debate a controversial extradition bill, saying it would blow up the legal wall intended to keep hong kong's justice system separate from china's. what does this mean for china's business climate, especially at a time when wall street is lending billions of dollars to china's hottest tech unicorns? we explain why exactly u.s. banks are interested in tech in china. >> we have seen that the technology startups in china are tapping into the syndicated loan market at an unprecedented pace. a lot of wall street lenders are taking their playbook into china, lending these startups billions of dollars and hoping they will get further mandates in the future. what we are seeing from this particular protest in hong kong
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did have some impact on the market. we have seen that trade has caused some of the ipo's to pause. they have decided to wait until the environment clears up. it is still unclear, no deal has been pulled because of the extradition protest, but we should monitor very closely whether these companies that will be looking to go public in the next three, six months, if they will change their mind or have any other sort of other contingency plan. emily: these companies may have a lot of potential, but they are asset-light. they are unprofitable. what is the attraction for investors? >> investors are looking for high-growth when they look at chinese tech companies. that is generally the theme for tech in china. as you said, these are asset-light companies. they do not have a track of profit making, but it is not an unfamiliar notion. it is happening in the u.s. for a long time.
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i think wall street banks are looking at this as a good opportunity to build relationships early on with these companies in the hopes that further down the road when they go public, if they become, like, a billion-dollar company, they would get the mandate for more lucrative fees. emily: give us an example of specific deals. your story mentioned bytedance, a big and growing company, but also a company that has run into challenges, specifically with the u.s. government. crystal: several companies have raised fixed loans in the past. you mentioned tiktok, a popular streaming app. they have raised billions of dollars, and that includes big names like goldman sachs, morgan stanley. we have seen some auto financing deals. they have all raised big tickets. this is probably the trend, instead of raising private equity where you would dilute
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investors at a lower price, you are raising private loans instead, so you keep that valuation and still achieve the goal of raising funds for further growth. emily: we have seen many u.s. tech companies wait many years to go public. is that the trend with chinese tech companies as well? crystal: it is increasingly going that way. tiktok's mothership has been talking about raising funds, but nowhere close to going public yet. we are seeing other big unicorns such as alibaba's financial affiliate. they have been private for the longest time. these are the big leading tech companies in china. they are really taking their time instead of rushing to the public market, unlike their other peers in china. emily: coming up, and lawmakers
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thoughts on big tech. our conversation with congressman a doug collins of georgia is next. and we are live streaming on twitter, check us out and follow our global breaking news network tictoc on twitter. this is bloomberg. ♪
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emily: welcome back to "best of bloomberg technology." i am emily chang. house judiciary committee held hearings to find out if tech has gotten too big. it looked at the detrimental effect the internet has had on journalism. more american adults get their news from social media than print newspapers. a top republican on the judiciary committee attended the hearings and spoke with bloomberg. >> it is something that is on how tech can work together to
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provide a better platform so everyone can be enriched. we do not want to lose that. big platforms are not going to cover. the big platforms and tech platforms don't want to lose out on the content it helps them generate as well. this is an opportunity for everyone to come to the table and have ideas on how we can move forward in a symbiotic relationship instead of one that seems to be at odds at times. tom: representative collins, my question for you is how exactly will your legislation help remedy the situation? rep. collins: what it will do is instead of -- take for example my district, which is a relatively rural district with a single county or weekly paper. they have no way to negotiate with bigger platforms on their advertising rights and respect for the content that is being taken at this point. what our bill does is for a four-year period is take out the
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antitrust exemption to allow these newspapers in various areas to come together and negotiate in a better bargaining position. how can we continue to protect the content and get a better rate in advertising and a cut of that? it also allows the house to come in and say how we can better enhance what we are offering as well? vonnie: would you ever subpoena executives or documents even if they were proprietary? rep. collins: going into subpoenas is something that has been overblown. this is a time when what we have agreed to do have a hearing and to say there is a legislative solution as if this is an adversarial solution. i want the tech companies and others to come in and say how are we in the state of technology now? i'm not one that says they need to be broken up because it is big. what we need to say is how do these new technologies work in the environment today and how do their competitors work traditionally in antitrust?
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everyone has a part in the picture to play as we look forward to the privacy and data and commercial space on how tech dominates and how the other industries work with them. we have to have input first and most players be involved. vonnie: there has been an effort to suppress or downplay conservative views on social media? rep. collins: i think there is valid and legitimate questions. we have had some of these conversations before with the social media platforms. i spoke to sundar pichai of google about how the algorithms work. we talked with twitter, we talked with facebook. these are conversations that need to happen. especially the youtube issue, we have to make sure at a certain point in time the positions are working as they should and the platforms that have enormous responsibility for what they put out -- it is not simply a
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billboard where everyone goes by and puts up what they want to put up. there is editing involved. that is a very valid conversation for these tech platforms to answer for. tom: what is your response to the argument that the big tech companies have actually helped media companies stay afloat and indeed thrive by providing them a low-cost distribution platform? rep. collins: i would not disagree there has not been areas in which they have been able to thrive. that came out of the hearing today, that some of these organizations and along with the big tech platforms have an ability to increase their viewership or increase their presence. at the end of the day, many of the smaller news organizations are having the content taken without being able to access the profitability part which is in the accounting revenue and ad revenue or actually pay for the content being used. that is where the disconnect comes. the question is keeping some of the folks away from accessing
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what is rightfully theirs from a content perspective. tom: we understand the doj and ftc have had a meeting of the minds that are in a way dividing the tech industry. what is your sense and how effective law enforcement and regulation can be in terms of reining in the technology industry? rep. collins: again, it goes from a simple perspective. the doj and ftc are looking at this from a perspective, has there been issues that need to investigate from a legal standpoint that need a legal remedy? then i'm sure they will look into that at the forefront. the question i have is, this is not simply to say we need to step in simply because a company is dominant or a company is big. sometimes you get big because you provide a better mousetrap. that is not something that should be punished. as we look at that, if there are criminal acts that need to be involved, antitrust issues, i am sure that will be looked at. i want to see it come forward in a position, especially from a congressional standpoint, how
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does this work in the overall economy and how do we let everything work together? emily: congressman doug collins there from georgia. dropbox unveiled a new integrated workspace in its biggest overhaul to date. it introduced a desktop workspace that allows customers to collaborate. we spoke with dropbox about the new changes. >> we are really excited about it. the biggest change to our product and a new desktop app. it allows team workspace when you can have files and cloud content. anything you are using. integration with tools like slack and zoom, you can send messages and start meetings.
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it is a more integrated workspace because we saw so many of our customers and ourselves struggling with these new apps, but how do you stitch them together? we see a big opportunity to make that a seamless opportunity. we are really excited about it and cannot wait to get it out there. romaine: do you see this type of integration in these types of apps? do you think this is something we will see more of not just in your particular space, but with other types of software and software services? drew: absolutely. certainly, most if not all companies want integration, but the opportunity we saw is to organize it. bring it into a coherent experience different from some of the messaging tools. what dropbox allows you to do, all your content in one place that works across different ecosystems. instead of the interface being a list of messages, you can see here is what we are working on,
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the most important piece of the content. we think from a design standpoint it is a different approach. caroline: from the perspective to keep everyone coming back to dropbox, as much as you are working with the other apps, you are also competitive. do you think this plethora of new apps we are having can really survive? the fact you have deals with zoom, slack, google, microsoft -- do you think the ecosystem can support all these different players? drew: we certainly do. what we are seeing is that users want choice. they are using all kinds of different apps for communication, content. what is missing is a way to stitch it together. that is the role we think we can play. it is very similar to the role we played in the beginning, help you get to your stuff from different platforms. now we think about how to organize your working life and stitch together these different
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things? a lot of what we are doing is complementaries. you will not stop using these other tools. we are making it easier for you to get them. we find that a lot of our customers love using these different tools, but they need a more integrated experience and not having that means you are switching back and forth and a lot of friction. caroline: it is interesting within the enterprise software space, we are talking about numerous players. when actually the argument from capitol hill is that too few players when it comes to the technology space, they need to be broken up. how do you take this sudden viewpoint coming from capitol hill, and do you think it has grounds in any way? drew: i think it is an important conversation to be having. from our perspective, we think competition is a good thing. and we need a level playing field. it is an important conversation. romaine: what are the other
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conversations, the idea of responsibility a lot of tech companies, particularly those who traffic in content have. i wonder how you view not only what has happened, what type of responsibility you think the companies themselves should be shouldering to make sure their services are being used in a proper way? drew: sure. i mean, trust and safety is the first thing on all of our minds. and, all aspects of that. whether it is the security of service, the content people are putting on services like dropbox. i think we are seeing a broader conversation of a lot of technology companies putting themselves in situations, how do we protect free speech but then what do you do when people put up content that is objectionable or unsafe or not true? our role is simpler. people don't usually use dropbox as a publishing platform, but we care about the safety and
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well-being of our users. to the extent that anyone puts objectionable or unsafe content on dropbox, we take it down. emily: that was dropbox ceo drew houston. coming up we go to los angeles for the e3 gaming conference. later, chinese carmaker nio has seen its stock plummet. the ceo remains optimistic. this is bloomberg. ♪
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emily: the e-sports market is booming with highly skilled players, arena-sized audiences, and a revenue projected to reach $1.8 billion by 2022. bloomberg's shelley hagan takes a look. shelley: it is a far leap from the penny arcade. e-sports takes the gaming world with highly technical players, arena sized audiences and big sales. the global e-sports market raked
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in $865 million in revenue over 2018. nearly 26 million viewers in the u.s. the audience is larger in asia, boasting 50% of the world's viewers, compared to 12% in north america. with the e3 conference underway this week in california, all eyes are on the booming business. two california-based companies, activision's blizzard and electronic arts have a combined market cap of more than $60 billion. private investment is growing as well. total u.s. venture capital investment in the u.s. reached $1.8 billion in 2018. that is a 5000% increase in a 10 year period. cloud 9 e-sports, a north american team, raised $58 million last year. teams compete in popular games, from fortnite and league of legends.
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estimated total of 100 million players. the winners take home more than the high score. the largest prize pool was more than $26 million. with the global market expected to reach $1.8 billion by 2022, it is far from game over. bloomberg news, new york. emily: meanwhile developers including microsoft, activision blizzard, electronic arts just a few industry players participating in the events to highlight upcoming releases. this year's conference is different than years past. instead of focusing on hardware and titles, a lot of it has to do with streaming and how these games are played. take 2 ceo explains. >> we are showing borderland 3, the third in the iteration. we are super excited about it.
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we have a hundred different stations where you can play the game here. people are really excited to be playing the game. vonnie: in terms of the pipeline, what do we expect from take-two beyond that? a lot of people are talking about red dead online. should we anticipate more of "red dead?" strauss: you should be expecting more from red dead online. more content is also coming in for grand theft auto online, which is a big title five and a half years after the initial release. in terms of upcoming releases, we have nba 2k coming, wwe. it should be an exciting year for us. vonnie: are you interested in bidding for any other sports licenses? you mentioned nba, wwe. what else are you interested in?
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strauss: the sports business is pretty well spoken for. the nfl property is under exclusive license. one of our biggest competitors controls the fifa title. we have golf, boxing, hockey. right now, our focus is on golf and of course basketball. vonnie: we are seeing more and more subscription models. what is your plan for subscription and streaming? are you launching your own platform? strauss: we want always to distinguish between a technology streaming and a business model subscription. we are interested in both but they are different animals. you can have a subscription business without streaming and streaming without subscription. we are excited about many potential developments in the market.
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we are supporting google, microsoft, and i expect we will support others as well. subscription vehicles, many are being developed, some already. we support game pass on certain titles. we are open-minded. we have our own small direct to consumer presence and we are obviously looking at that market as well. when people look to acquire entertainment properties, they want to go where they can get a multiplicity of properties, not just an offering from one company. vonnie: how concerned are you about the current standoff between the u.s. and china for growth of take-two interactive there? strauss: we are very optimistic about china. our relationship with tencent is great. nba 2k, up about 74% year-over-year.
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45 million registered users. we also distribute in china in a myriad of other ways. our nba 2k title was just approved ps4 in china. we think there is a great market opportunity in china. we hope that trade talks will be resolved in a way that is beneficial for the overall entertainment business. emily: still ahead, lawmakers and business leaders go to london. we will discuss the future of london tech, as the city looks to redefine its relationship with europe, next. this is bloomberg. ♪
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emily: the u.s. continues to press allies like the u.k. to ban huawei from the next generation of networks. caroline hyde spoke to jeremy wright at the sooner than you think conference about the issue. she asked about huawei. >> it is important we have quality equipment and are at the forefront of the 5g revolution. it is important we have a safe and secure telecom infrastructure.
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what we are doing isn't focused on huawei and china. i am looking at a way we can develop a system for the supply chain to make sure they meet our requirements on safety and security. we will bring those proposals forward as soon as we have them. >> when will there be an end to the review? jeremy: i cannot say exactly when decisions will be made. the americans have made decisions recently that we have to take into account, which in a telecom world will have an impact on huawei. we have to work through the consequences of that before we make a decision, but we will do that as soon as we can. caroline: how difficult does that make the decision, the u.s. blacklist? jeremy: you can't pretend decisions around the world don't have a bearing. if components in america go into components supplied by huawei into the u.k. telecom system, then all of these things interact, so we have to work through the implications of all these decisions, understand them, then make our own decision.
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it is for us to decide what is best for the u.k., but we have to accept the reality, which is that this is a hugely interconnected world. caroline: your background as a lawyer coming into play in a big way, i'm sure. talk to us about the growth we are still seeing in london, outside of london as well. the u.k. has been focusing on technology growth. how much of a distraction do you think brexit has been? jeremy: two things, first of all, you're right. growth is happening across the u.k., and that's very pleasing. we are seeing huge growth in places like manchester. if you look at the report they came out today, job opportunities for oxford, cambridge, reading, newcastle and belfast. all across the country. in relation to brexit, people are concerned that when we leave the european union, if you are in the tech sector, you will still have access to the talent you want to bring in, and some of that talent comes from the european union. what will happen as we leave the european union is we will be able to design our own
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immigration system. we should do that if we are sensible in a way that makes sure we bring in the people we need and want. what we're saying to the tech sector is we have this opportunity to design the immigration system that we want. help us design it, tell us what it is you want to see in our immigration system that will enable you to continue to access that talent. emily: u.k. digital and culture secretary jeremy wright. at nio, electric car sales are plummeting. losses mounting and the stock price is cratering. the ceo does not see what the fuss is about. he spoke to bloombergs selina wang. >> i think our investors do not understand our long-term value. from the standpoint of nio, we have faith in our long-term value. there are complicated reasons that led to the stock rise and fall which is beyond our
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control. it's a very complicated thing, especially if there is a shortselling mechanism in the u.s. >> the chinese government is trying to attract the top technologies to list on domestic exchanges. is that something you would consider? is at shanghai tech board early stage. we need to look into its regulations, which is also very complicated. we will consider overseas investors' interests. >> the money you have you think will be enough to last you through the rest of the year? >> broadly speaking, we would like to connect u.s. and chinese capital markets. nio has raised funding from global investors. we have not raised any rmb funding, but most of the funding are u.s. dollars. we will be able to raise rmb funding in future. we definitely have a clear timetable. we hope to close the deal in the
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foreseen future. so far, we are on schedule. >> it took tesla 15 years to become profitable. how long will it take nio? >> you cannot ask a four or five-year-old toddler to make money. i think it is quite difficult. tesla has been established for 16 years. nio has only been established for over four years. i'm sure we do not need over a decade to make profit. >> what are the plans for the united states? how are you thinking about the united states as a market long-term? >> i'm currently leading a team who has been working so hard, aiming to answer the question, what do nio's products, service, community mean? what is the correct way to provide service? we will start to provide service after we figure it out. emily: that was william li, and that does it for this edition of "best of bloomberg technology." we will bring you all the tech throughout the week.
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nejra: coming up on "bloomberg best," the stories that shaped the week in business around the world. tariff talks drive market sentiment every which way, with the white house at the center of most of the stall. >> he wants the meeting. he wants the meeting. >> this is really an attempt to escalate pressure on xi. >> turmoil in hong kong as protests swell and iraq over controversial legislation. >> this crowd is very angry. >> a slew of economic data comes


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