Districts open for the rest of the year. Avoiding palest payday for staff. Powered by over 2400 journalists in 150 bureaus around the world, from new york, i am mark crumpton. Emily i am emily chang and this is bloomberg west. Star board issues war with yahoo for the nominees, what happens next . We will have all the details. Plus, one of the most powerful women in Silicon Valley talk to me how she defines the Glass Ceiling and her new role as a ceo. And into the world of Cyber Security. I sit down with the ceo of tanium, as he takes the reins from his father. First to our lead. Board,investor star wiping out the entire board of investors, including ceo, Marissa Mayer. To 1. 7 . G holdings the activist shareholder is nominating their own a ceo, jeff smith, for election at the yahoo meeting later this year. Writes, we believe the board clearly lacks the leadership, objectivity, and perspective needed to make decisions in the best interest of shareholders. Thatsponse, yahoo noted they will review the nominees and respond in due course. What do these nominees have to offer . Joining me now, eric cantor eric jackson. And neil doshi, from securities during the here and that studio. Neil, what is your reaction here to star board the clearing an allout war on yahoo . It is definitely expected. What we think is, this is going to be a huge uphill battle for yahoo to fight. Yahoo will experience a pretty costly endeavor to go to all their shareholders and convince them that Marissa Mayer is the best person to lead the company. Plan, she hadegic an old one that did not work, the new one will really take them to the next level. I think it will be an uphill battle. The new board has a lot more technology and media focus numbers. I think there is a lot of negative sentiment around investor base. This will be a tough three months for the company. Emily eric, you have been agitating for change from yahoo for a wild. What do you think of the nominees . People who can really add it to the company, and pushed forward . Whole, if youthe look at their backgrounds together as a group i think that they are more impressive than the backgrounds of the current board for yahoo . I am not as familiar with some of the nominees but Bridget Baker as an executive, having a lot of experience with subscription revenuebased businesses to read i think that was a particularly intriguing type of background. Maybe offers us some hints as to where jeff smith is thinking yahoo can go. I think rick hill is particularly interesting. And the ceo of directv it will be interesting now to hear more from jeff smith and star board as well as yahoo . I think investors can look back of the electorate being entertained by donald trump or whoever. We can ask these folks what their vision for the company is and why we should vote for them. Emily you have a serious take not on just what star board has done, by yahoo over the last few weeks. Poking the bearer just a few weeks ago in your words, how are they making this even more difficult for star board . Shira the thing that clearly seems like a misstep at the time and in hindsight was that appointment as you mentioned a couple weeks ago of two new yahoo Board Members, literally the same day yahoo and starboard were talking to discuss mutual concerns about the company. It felt like a way to antagonize starboard, and we have seen the common nation now. With marissae mayer a few weeks ago and after specifically if she aligned with the board. Are they really doing what is in the best interests of the company . Take a listen to what she told me. Overall on the board, management are very aligned. I will say, yahoos situation is complicated. And i think that is obvious to everyone. As particularly with some of the assets we have in both yahoo japan as well as alibaba. Eric, what is your reaction to that remark by Marissa Mayer . I have heard her talk so much over these last years and she has accomplished so little. I think she is a person who chooses her words very carefully. She is very concerned about what her,happen postyahoo for and is trying to manage her reputation, i think. When she meets with Charley Rosen does an hour with him obviously, it is complicated. It was complicated well before she showed up on the team. I think she was a bad hire from the beginning. Head, and iver her think they will be better served with a different ceo with an appropriate background for the job. Has a neil, starboard this once before with the company that owns all of garden. They wiped out the entire board, replaced it with a new plate of new directors. What is the likelihood they can pull this off . Neil it is hard to tell. They tried to change the board this point. 0 at theres so much and negative stuff around yahoo however, a ,egative sense of investors they may have trouble pulling this off. Emily how do you see this playing off . Yahoo already has a long to do list in the middle of this turnaround created they are looking at potential buyers for all company. Now they will have this proxy fight in the next for the next few months with starboard. At this the problem is, they dont have a lot credibility with shareholders. If you rally shareholders to vote in favor of yahoo zone director sleigh, i dont think they have much standing with existing shareholders to convince them to do what yahoo wants them to do. Emily we actually spoke with a former board member on the board before Marissa Mayer came on as ceo, and this person said they never thought marissa was the right person for the job, but they were quite happy to leave the board because not many people wanted to stay on. I wonder how Board Members are feeling now. Eric, how do you expect this to play out . Who wins . Eric i think there is a lot of bad blood between the previous. Oard and starboard i dont think there was much negotiation between the sides. Think they that they can orchestrate a sale in next couple of months before this goes to a shareholder vote. Therefore, all of this proxy talk becomes a moot point. If they end up selling the company at a large price. I think that is what they think they can do. As of a couple of weeks ago, i was hearing from potential bettors at that nothing was happening despite the fact that they form this committee. There was really nothing happening. So well see how things play out in whether yahoo perhaps overestimates its own abilities to get this thing done. Do have some supporting that they did me several times, but not much came of those meetings. And shira ovide, and neil doshi, thank you all for joining us. Rest ofa look at the our markets, Ramy Inocencio has the rap today from new york. How did it go . Ramy markets closed mixed in some very light trading. Essentially because of the bank holiday tomorrow and the threeday weekend for easter. Take a look at where we stand. At the end of the day, you can see the nasdaq is up the most by about. 1 . But this was not enough to help the nasdaq close in positive territory for the week read take a look at where we are. The nasdaq is breaking its fiveweek street, down minimally. But it had rallied as much as 13 at one point over the past five weeks. Lets take a look at some specific stocks. Apple right now is down by about. 1 for the entire week. Interestingly, not Much Movement despite the new iphone coming out on monday, as well as the Court Hearing that was delayed on tuesday over in riverside. Amazon, also going the other way. Of 4 here. This is the biggest weekly gain in the past five weeks ago, after apple saying it is still years away from developing its own cloud platform. Remember apple said it would move some of its operating systems to the cloud that form there. Going the other way, priceline falling lower, down by about because of what happened in belgium, the terrorist attacks there. Trip advisor and expedia also falling around 2 3 . And the nontech stock Virgin America rowling as much as 14 and closing this week to date. This is its biggest weekly jump since july of last year. And the news yesterday saying shooters fore some buying some of the company. Here are the big movers, emily. Back to you, happy easter. Emily youtube. You too. And we talk to the woman taking on tesla. Emily it is game on, tesla. The newly appointed ceo is considered one of the most powerful women in Silicon Valley. She is now taking on not just elon musk but the entire auto industry. Asked her what it was like to be a female engineer back in 1984. It was a rarity. It was one of those things in a mix of you. Other a deep kinship to women engineers. Myselflike it is shaped as a woman leader in the Tech Industry. The other thing it taught me or brought to light, the fact that if you are confident, it is very important to have selfconfidence. People notice you. Either i two things, learn them because i have to it was the because only way to work. I dont know. But it is something that has been profound life lessons for me. Think is that you apart from other women who were doing it . Because obviously, you survived. Padma i cannot say whether they did or didnt. It helps me. Today, i feel like i need to give back and i help a lot of women, especially women engineers. Stay, a decision, do i what other things i need to do. I did not have a lot of that back then because there was no one reaching out and sharing barracks area. Their experiences. Emily did you think you had to act more like a man . Padma absolutely. At first, nobody would take me seriously because i either looked too young, walked too young, were bright colors. I came from india, i love bright colors. Way d to hide all that a way for the first few years. I would wear black everyday, sneakers i loved shoes and could not wear shoes. All these things that had nothing to do with my job as an engineer, but i was afraid to be who i was, who was wanted to be. I absolutely did that. Even when i became the ceo of motorola i wanted people to take the more seriously so i went to the extreme of making my hair grade just so i would look older. Emily really . Padma and today, it is the opposite. Emily do you feel you are ever treated unfairly . Padma people i think dont expect you to be competent. There was always this and out. People are skeptical. I have had situations where people are skeptical about my title and what i am doing because i am a woman. It is hard to describe it, it is not blatant or over, but i did sense it. Me to askit fair for you how you balance your work and family life, or is it not fair to ask that question . Padma i think it is fair to ask that of both men and women. Men with Young Children go through the same thing. The challenges avoid if you are a parent how you balance having a career and having a family. I feel like the word balance somehow suggest that everything has to be perfect. Like your home has to be perfect, your work has to be perfect. Integration. You have to be aware of what is important to you and how you integrate those aspects that are important to you. When my son was young and i had a busy career in a factory, i had operational responsibilities. Baby, so i would be constantly stressed out. And i learned that i needed to take time for myself. Now, i meditate every day. I paint when i can on saturdays and weekends. So whatever it is that you feel you need to do to energize ourselves and get your creative juices flowing again, you have to do that. Emily what is your assessment of the state of women in Silicon Valley today, whether it is big tex, startups . In many ways there is small progress, but has also taken several steps back. Disappointing. Ry i think that we have not made any progress. We need to make a lot more progress. It is you hear people talking about it more openly that it is a problem, and people are figuring out what we need to do. But, i dont think we have seen results or movement yet. Emily why havent we seen progress . A great question. I dont know if we were all just saying things but not doing things to change. Maybe it is an opportunity for all of us to Work Together to address this. I often take time out of my day to speak at every single tech company. I have spoken at microsoft, intel, when i was at cisco i had perhaps we need to think about the things we need to do. Emily you had an opportunity to build a Diverse Workforce from the ground up. What are you doing to build your own culture and a Strong Company from the beginning . Hired myhave already first woman engineer, she trained two days ago. Emily congratulations. Padma she is amazing. My head of Corporate Development is a woman. She is a stanford grad. She joined a three days ago. So she is now on my staff and leadership team. So i will continue to do that. I want to have a very diverse team, have more women, but also have i wanted to be multicultural. I want to attract people from the auto industry, and the nonauto industry to Work Together. Will be a very diverse team. Interviewexclusive pdmapet mastery warrior warrior this is sunday. Tesla may soon face competition for their battery business. The vacuum cleaner is this dyson says they are developing electric batteries. We have the story from london. Electronic producer of vacuums, may be gunning for elon musk. Invest into Battery Technology over the next four years. Company makesed solidstate lithiumion batteries, which can store twice the power at a half to a third of the cost of existing models. Why batteries . They are a key component in the , buts cordless vacuums there are tantalizing hints they may be after a bigger target. Earlier this week, a British Government report published online said dyson was planning to build an electric car. Was editede report to delete any reference to the electronic car comment, but dyson will not report comment on the report. There are certainly applications in cars, and those are Market Segments that tesla motors is also going after. Emily our Bloomberg News reporter jeremy con in london. Coming up, a first of its kind indictment from the u. S. Against nation estate hackers. Details, next. Emily a story we are watching. The United States has accused iranian hackers of carrying out an 18 month cyber war against wall street. The group is charged with financialor dozen institutions and a flood dam north of new york city to undermine u. S. Markets and national security. The details come from an indictment unsealed on thursday in manhattan federal court. Today, we have unsealed an indictment against seven alleged experience hackers employed by Computer Security companies, working on behalf of the iranian government, including the Islamic Revolutionary guard corps. Found thatn, they these seven individuals conspired together and with others to conduct a series of cyberattacks against civilian targets in the United StatesFinancial Services industry. Cost the victims tens of millions of dollars. This followed u. S. Sanctions imposed on irans government and nuclear program, believed to be carried out by the u. S. And israel. Coming up, we will stick with it that the man turned to the 3. 5 billion company tearing up the Cyber Security market. Taniums new ceo. Oh, hi micky dolenz of the monkees here, getting ready to host the flower power cruise. announcer were taking the love generation to the high seas and reliving the 60s. Well celebrate that unbelievable era with the music that made it so special. Therell be over 40 Live Performances featuring eric burdon the animals, micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin spoonful, rare earth, spencer davis, three dog night, and many more imagine enjoying all that great music on the fabulous celebrity summit, leaving Fort Lauderdale and making ports of call in jamaica and the bahamas. Youll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 funfilled celebrity interactive events. Cabins are filling up fast, so come on, relive the era you remember so well. The flower power cruise, february 27th, 2017. Let your freak flag fly. Dont miss the grooviest trip at sea. Mark i am mark crumpton. Youre watching bloomberg west. Stagechman in an advanced of an attack plan on the country is in custody. He was arrested northwest of paris today. Security forces have locked down the area, as they conduct a major surge. The man Authorities Say is the main paris attack suspect appeared in court in brussels today. Said hisr for salah client is not interested in fighting extradition to france. He was captured in brussels last week. Elgin officials have lowered the Terror Threat level from four to three, but still describe it as exceptional engraved and say that a attack is likely and possible. Numbers of the European Union say they will step up investigations of investigations. Iranianre targeted by bank hackers, according to the u. S. Justice department. They say the cyberattacks occurred from 2011 and 2013. An important part of our Cyber Security practice is to identify the actors and attribute them publicly when we can. We do this so that they know that they cannot hide. Lynch also said that at times, the cyberattacks invented hundreds of thousands of customers from accessing their accounts. Vice President Biden trying to move past remarks made in 1992 while he was a member of the u. S. Senate. At the time, he was seen to endorse blocking a Supreme Court nominee at the height of an election season. Republicans say they are following the biden role in rejecting the nomination of merrick garland. , there is no biden role, it does not exist. A new Bloomberg Politics poll shows are publicans are not rallying behind plans to stop gop president ial frontrunner, donald trump. According to the survey, 63 back trumps a view that a person with the most delegates should get the nomination, even if they dont have a majority. Pope francis visited a Refugee Center outside of rome today. It has become a holy ritual for francis, who in january change the regulations to explicitly allow women and girls to participate. Obama visited victims of their dirty war. This week, the president announced military intelligence records of possible u. S. Complicity would be declassified. Comedian and actor Garry Shandling has died. The the Larry Sanders show. Powered by over 2400 journalists in 150 bureaus around the world, i am mark crumpton. Emily this is bloomberg west, i am emily chang. Many companies in the red with ceos forecasting slowing growth of this year. The concerns dont appear to have touched the start up tanium. Company, 3. 5 billion thousands of computers and mobile devices that can deliver security updates in just 15 seconds. Joining me now is Orion Hindawi. Were see we talked you po, and you now taken over the ceo position from your father. You have spoken out very publicly about the bubble in the Cyber Security industry. Lets start with jobs first. What mark do you want to make on the company . Orion i think we are doing exactly what i wanted to do for the last eight years, build something where proud of, ship to customers, and at 99 of them renew every year. The interesting thing, a lot of people obsess about things like ar, revenue, cash flow. I do, but what is interesting to me is that customers level we do and we can pull out the technology they dont like and replace it. Emily you raise 300 million you have not touched. Is that the case . Orion yes. Raise new money why take new money if you dont need it . Orion i said a year ago that what i thought was happening in the valley could not continue. That we were really running a environment, and people were spending money, wasting it. I thought there would be a real turn. To raise opportunity money, primarily because we did not think we could do it for a long time. If you look at the market now, it is likely we will not be raising money at anywhere near the valuations they want for a long time. We have a cushion to execute without having to worry about the dynamics of the market, or whether there is a downturn in the economy and execute the way we want to irrespective of that. Emily when does the music stopped, and who gets left behind . Orion there are people being left behind already. After pointon solution have been losing tens of millions of dollars a year, that are definitely trying to raise money or be acquired. I think there are going to be a lot more of those were people realize the business is fundamentally unsustainable. And they are then going to be a target for acquisition. I think a lot of the target Acquisition Market does not deserve to exist. Emily you have also been public fire i in particular and say they dont have a good business. Wheres that going . Orion i think they are representative of a class a company that has been marketing and sales driven rather than product driven. Customers really want us to deliver products that definitely work. I dont think they are unique in this case. Their representative. We as an industry oh error customers better than to tell them that they should be terrified and should give us lots of money. There is a real need for true security, good hygiene, patching, analysis, forensics. And we oh our customers. Emily if that is true, in this age where we are more at risk of cyberattacks than ever, are there a lot of companies and theyren danger because Cyber Security firms are not doing their jobs . People when it a percent. A lot of people are relying on things that do not work. Dealof the companies they with, they will need to dramatically upgrade them. Hackers are stealing billions of dollars a day in ip and credit cards and health care data. They are not going to stop. Not provideustry do great solutions, our customers will continue to lose those things at an increasing clip. Emily apple versus fbi, what is your take . Orion it is a lot more complicated than people give it credit. In the valley it is popular to say definitely apple, but the reality, our society is based on this idea that a warrant when it is issued, should be followed. If we end up with a black box in every buddys pocket, i think Law Enforcement will have a much harder time doing their job. Conversely, if you break encryption and put black it is as into products, difficult problem to solve with a pat answer. Everybody wants to stand up and shake their fists and sane christian is awesome, which i agree with, if you dont have launched, our society breaks down. Say encryption is awesome, which i agree with, if you dont have a Law Enforcement, our society breaks down. If we build systems that are so close they cannot do their jobs, i am a frayed will all suffer as a result. So you think there should be some vulnerability . Orion i think if a federal judge issues a warning, there should be some way to honor it. Emily how you find that balance as a ceo . Orion it is a tremendously hard problem. We refuse to put backdoors into our own products. That is what Everyone Wants to be able to do. Conversely, if somebody came to me and said there is a really legitimate reason why we have to work with the government to put prevent threats, we have to listen to that. I dont have an easy answer for this. But on both sides, there are legitimate reasons why. Emily you have been pretty public, you say an ipo is in your site. Is that something we will see this year . Hard thing to a answer. I dont know what will happen in this market. A lot of of people are seeing it frozen in place. A lot of ceos were planning on going public and are now terrified. They were losing money and bought the market would make up for it, but realize that will not happen. We are making money every quarter. As a result, we can choose where we want to go and not force ourselves into an unfriendly market. I will say, i continue to say that our investors and employees and customers deserve us to go ipo. Emily when going public help your reputation . Think they do, they want to see us running a tight five that we will exist in years. And some companies are paying a price for it, because when they look at financials, they see they are unsustainable. When you look at our financials, they are very clean. ,mily all right, Orion Hindawi the new tanium ceo. Thank you for your candidate take. Coming up, hedge funds done with Tech Startups as more and more Unicorn Companies delay going public. We go into public funding, next. Emily paypal shares dropped as apple reaching out to potential ecommerce pardons partners. The move positions apple as a direct competitor to paypal. About 30 of paypal comes from mobile. That portion of their business could be at risk. Another stock on the move, tesla rallying 2. 5 against their highly anticipated model three unveiling next thursday. Lowerl go for a 35,000 than much of the electric carmakers competition. You can preorder it as of march 31. It wont go into production until 2017. And it will cost you a reservation will cost you 1000. And a segment, a deeper dive into the hedge funds. After apulling back spike in interest in the state. The number of deals involving hedge funds it dipped 38 from the third to the Fourth Quarter in 2015. Dropping the 4. 6 billion in the same. Studio, thenin the merits in. What are you seeing here . Ben it is pretty severe, it started midway through last year. People started to sniff around. And theny got heavy started to move away. You saw a lot of hedge funds that i would call less expert or slightly lower tier coming into , at all the conferences we go to looking for deals. Bankerled a deals. Emily because they were bad deals . The margin was now appropriate for a different type of investor. Or maybe they were deals they did not understand, their results not what you expect. And what type of results are you seeing . Global seems like they are certainly making tech investments. If you look at these piled on hedge funds that ben was talking about, you see them getting out entirely. I have been talking with portfolio managers, and they tell me they are getting out because they are sick of in things. Intangible if they put their money into it now, they may not get a grand slam, but something that is more immediately yielding. What does this mean for startups and the Tech Industry . Venture capitalist because it means less competition. Ben we think it will go a lot farther. A bunch of things are happening. Most of startups are realizing quicker than they didnt 2008, it is bitter. It is like the raven and, people being mauled by bears. Evenant, people being mauled by bears. Have visibility for everyone to price up to that level. You have a demand higher up the chain and less lower down the chain. People are doing more work and diligence, being more rational and paying fair prices three that is good overall, classically darwinian. But it can be challenging because they have never lived through this before. Fory what does this mean the ipo market . Ceos that were planning to go public are now terrified. They have really fallen sideways. A lot of companies are now looking at the market and it is not a pretty picture. These companies were driven by the alternative investors to have these larger Balance Sheet and now they are able to stay private longer. If you add that to what is happening in the markets, these companies do not have an impetus to do it. Emily then what are the options for investors . Are they stop . Maybe the deals werent as favorable as they thought, what are their options . Ben for startups it is different for the hedge fund people. You have people coming in because it is sunny and warm, unaware of hardships around the corner. They get stuck and have no options. For entrepreneurs, there has always been a stack of investors , people who come in for that last round. These people spend their whole lives approaching companies at the right point in their evolution. They will no longer have to compete with investors that are putting in money without necessarily adding knowledge. Emily it is a cycle, right . When does this belttightening and . A sevenyear plus, a sevenyear minus. I will wait a couple of quarters no, you are underestimating. I assume it is not because people under invest. Included,irms, myself have raise a lot of capital. It is not our job to sit on that capital, but to be good stewards and make smart investment. It is pretty ugly out there right now. People dont understand what to do. There is a Certain Group of people there is a huge opportunity here. But when people dont understand how things work, it is hard to put a price on them. And they dont like hard news. A quarter of real darkness, and we will see how things change. Emily thank you. Up, has the economy found its way into your closet . We found a ceo who plans to be the netflix of style, next. Shares at the world stopest game retailer, game dropping. Their forecast also came up short. The company is feeling the brunt of a hit in gaming towards the internet. Activision blizzard are doing more Business Online and making them obsolete. The sharing economy is heading to your closet. Highend fashion rentals for Red Carpet Events has a subscriptionbased model to allow women to rent highend clothing for a monthly fee. The cofounder and ceo, jennifer hyman. With theeen this netflix and spotify, why will this work with close . Rentals have become popular, and subscribing to everything in your life, too. There were around 5 million members renting for occasions that would happen on saturday nights. We started hearing from our customers that the majority of their life is happening every day at work, and they wanted that same behavior to rent for their everyday lives. Why would people want to rent versus own their clothing, which is something so personal . Jennifer when you think about the utilization of clothing, the average American Woman is buying 64 new articles of clothing per year, half of which are worn it three times or less. There is considerable pressure on women, especially professionals, to have newness and variety in their wardrobes all the time. And that is compounded by social media. So if you look at what happened prethe era of facebook and instagram, we were buying less articles of clothing per year. The only massmarket retailer that can cater to this extreme need for variety right now at an average price point that anyone could afford is currently h m zara, fast fashion. That is why that is the only segment of the industry that has grown. It is a substitute for spending your dollars on fast fashion. Emily amazon just cannot with a gender pay study that says men and women at their company make about the same amount of money, even though the best majority of Senior Executives are men, so there is dispute. But the reality, women still dollar, for the men. These other kinds of trends you study. What if you found . Jennifer we found that women, on average, spend 10 of their takehome income on clothing to wear to work, whereas men only income on on their close to where to work. There is a perspective that women are vain and like to wear and buy more close, but this differential started when offices became business casual. When offices were business formal and women can wear a suit to work every single day and a underneath a soup, women were spending approximately the same amount as their male counterparts. Now, because of the need to look professional and sophisticated every day regardless of income or industry, it is created an enormous financial pressure on women to dress for work. This is just the cost of apparel, not the beauty, hair, all the other things that are actually requirements to excelling in your job. The other thing, is that we price things that a massmarket retailer. Gap, you are now spending around 70 more for the level of variety you need in your professional work, then you would have been when businesses were formal. Question, ite last sounds great for me as a customer, but how do you make the economics work for you . Youre taking care of shipping, cleaning. Is this longterm, a sustainable model . Not have beenould able to afford it had we launched six years ago when the business was first getting off the ground. Because we scaled our technology, operations, drycleaning businesses, we could now affordably ship out these units to women several times a month. We also price the program at 139 a month from the get go, because we wanted to make a healthy gross margin on the business from the beginning that could lead toward profitability. Have seen other businesses intentionally priced low in order to generate demand. And then they raise their prices exponentially. This is the price we believe we will say out in the long term. Launchingnifer hyman a new business, thank you so much for joining us. From our studios in new york city, this is charlie rose. Charlie we begin this evening with continuing coverage of the brussels attacks. Authorities have begun identifying the suspects in the bombings. Two of the bombers were brothers and belgian nationals. The identity of the third has yet to be confirmed. Police are searching for one additional suspect. Joining me now from brussels is alissa rubin. She is the paris bureau chief for the new york times. She has been reporting on the attacks. I am pleased to have her back on this program. Welcome. Guest thank you. Charlie tell me where the investigation is. Guest