On hold. The social media giant said they found political ad ending link to fake accounts from russia in the runup to the president ial election. Techcompleted the biggest position in history one year ago. New dellcreated the Tech Knowledge he. Technology. Major legaleveral hurdles along with emc stockholder skepticism. I sat down with michael dell and asked him or the oneyear report card. Michael i am very pleased with how its going. Its been very strongly positive, our teams are very engaged. Our customer in ps scores have continued to improve. Our record high levels of synergies are coming to your faster than we thought. We are paying down debt and aggressive pace. A lot of things that could go wrong did go wrong. The big surprise is we have not had a lot of surprises. Access we see the success. The business is doing very well. Debt and a pck on market that had been sluggish. How did you navigate the challenges . Michael i will tell you, we are a share. Have questioned the durability of some of our businesses, but they have held up incredibly well. We are gaining share. To be able to navigate this and bring the family together, customer reaction is very strong. Got some that to continue the growth and expansion. We have great investment ratings. It is quite strong. Emily do you see more consolidation in the industry . The big players are getting anger. Will that continue . Michael customers dont want to have a bunch of Small Companies that they work with. There are deep reasons why these should be more integrated. If you think about what integrating networking and virtual live storage and how you manage software in a manner that is consistent with what customers want. Howd you create a cloud environment . Emily how do you stay nimble and make sure you are innovating from within . Is it about m a . Michael its both and the partnerships and the Venture Capital that we employ in new companies. 4 billion in r d across the family. Emily whered you see yourself in five years . Michael our customers are engaged in forward transformation simultaneously. Its an exciting time in our world. Datao you use all of this that is being created with all of these intelligent sensors being created and connected devices in this new age of human machine interaction . That is an agenda item in every company that we deal with her in with. How do i become more cloudlike . How do i automate my infrastructure to one that efficiently funds the Digital Transformation . Then you have the work force transformation. I do i make sure the people of the company have the right tools that they can be productive and efficient and its not about giving them the lowest cost thing possible. I want to retrain the highquality workforce i have. Productivity matters in the devices are important. The last one is dirty. Security. We have a broad set of capabilities to help our customers defend and protect their most critical information and data. This is about trust and assurance. Nature ofticated these attacks is increasing. Thats an incredible topic for our customers. We think we are unique in the capability we bring it ross the whole spectrum. That makes us highly relevant customers. Thats why we are growing asked the industry. This hour, we bring you more from the conversation, including their strategy for fighting off the competition. Amazon is building a Fulfillment Center in new york. It will be in Staten Island and create 2200 jobs. Part of a push to house inventory closer to customers and enable fast delivery. The company says employees will be able to work with the dance robotics. Foron has begun the search a Second Headquarters in north america. They will spend 5 billion and add as many 50,000 jobs in coming up, was russian money being funneled to produce political ads on facebook . Gopro is getting an optimistic outlook after its product line. About crowded space of action cameras and drones. This is bloomberg. Emily facebook has investigating possible naked between odds purchased on it site and russia. They discovered 100,000 in ads contacted to 470 accounts run out of russia. It suggests russian money was used in violation of law to influence the american election. Juneds were bought between and may of this year. Base because the lead of the accounts and pages and is providing details to investigators. Alked to this about sara they are looking into information campaigns. They have this malicious they element to them. There are a lot of eight pages and they try to spread propaganda in one way or the other. Thatort came out earlier detail that and linked it vaguely to russia. This says money was involved in a 100,000 may not sound like a lot of money, it can buy a lot of this book advertising. That is more than 3000 ads purchased that were targeted to certain geographic regions. While most of the ads didnt name a candidate or talk specifically about voting, they did talk about divisive issues rightsbt writes and gun and race relations. Spark or trying to whoever was trying to whether it was the government or other russian actors, they were trying tos art divisiveness in the election are in election. Is there any idea who in russia was involved . Is there any clarity on if they have ties to the government . Sarah facebook is not saying. Everyone is looking into it. There are several intelligence committees investigations into this. I think facebook is cooperating. They are trying to provide information where they can. They are trying to prevent this from happening in the future. They are looking at the patterns and matching it to algorithms and try to stop it room being a problem in future elections around the world. Facebook is offering millions of dollars to major record labels and publishers for music rights. They would be able to have songs and videos they upload. Facebook is a read to set up a system for tagging videos that infringe copyrights. It could take two years to establish that. Gave the reaction. Spent wants of trying to figure out how to resolve this ongoing problem for you have millions of videos being loaded with music the cant either. Facebook is trying to build a system. It will take so long, it would give rights holders millions of dollars to buy them off while they build the system. It is supposedly in collaboration to have all of the user generated videos. Emily this comes as they are rolling out a new hub for video. James i think its smart. They have the leverage so they can get the deal done. What they are doing is putting the money where their mouth is. Theyre going to spend a ton of money to people engaged. Thats one of the primary reasons for the loading uploading videos. At the same time, they will spend hundreds of millions of dollars for video content. Ishink what they are showing the willingness to really be a contender and a player when it comes to digital content. Emily who does this with pressure on . Lucas the record industry hopes youtube. Success, theyno have no leverage or it leverage. It does put some pressure on facebook figured out here in i think they are hoping the tighter they get bound together, the more seriously facebook will take the problems. It doesnt necessarily put pressure on anyone in the long term. This is just the next date step in facebook bigger net with her video strategy is. They also bid for the nfl thursday night football and lost to amazon. They are dabbling it seems. James they are making 100 million plus bids. Facebook is the advantage to amazon. They have a virtually unlimited amount of cash. Willingness,the the one thing facebook needs to be careful of his two not monetize too fast and make sure the get the aches rinse his right. Spirit ins is right. It xperiences right or emily they are going to charge to consume. James i think its the right thing to do. I dont want them to russian. Rush it. They did it so perfectly with instagram. People are still using messenger. I dont think they want inept advertising. Its great to monetize business relationships. They are facing pressure right now with the declining ads. They need to show growth. I hope is not being done as a reactive measure to Market Expectations versus actually turning on this biggest for monetization at the right time. Emily when it comes to twitter and snapchat, we know growth is struggling at of companies. Do they stand a chance . James i think twitter has a chance to chance. They have a service that is indispensable with realtime information. Know. Outlets with snap, every day is going to get harder and harder. They are their worst enemy. Theyre not capitalizing on their course strength. Facebook will spend money on content. If they win that apple, its a losing proposition for snap. Emily when you are looking at rights to a specific franchise, is a zero sum game . If they are win willing to pay up . Lucas they could all win. His ecosystem big enough for them and the media guys who already have the right . Putter head the nfl last year, but most people watch games on cbs and nbc are in nbc. Pull somelypso of those viewers away . How serious is the bid western mark i was surprised by the facebook bid for the rights. They did not want to spend a ton of money on rights. They were hoping to work out scenarios were they could share avenue revenue. They want to buy some the biggest right out there. We could see a more significant like ration of viewers from tv to these platforms. Shaw. That was lucas it is a partial victory or intel as they battle the European Union over a regulatory fine. The top court ruled that the lower court has to reexamine intels appeal in the antitrust case. They have continued a lengthy battle against the European Commission did it could have ramik the nations for suits involving u. S. Tech Companies Like google and apple. Coming up, after struggling with the bottom line, gopro is inching toward profitability. We will hear from its seat eeo next. Coo next. We will do a deep dive on the controversy over daca decision. This is bloomberg. Emily is looking to resurrect its smart phone program in india. They are marketing the mi a one phone in one of the largest emerging markets. They lost project in india three years ago. Sales were lacking. For 234. Went on sale it has a dual camera set up. Gopro has been living on the edge. There is a shrinking consumer demand and the have seen sales plummet. They are on the road to profitability. We spoke to their chief operating officer about the turnaround efforts. One of the things that was not mentioned and were most excited about, we are going to be profitable in q3. Thats a big development. Margin, whato the is driving that is simple. It is the best product we have ever launched. We are seeing Strong Demand for. In addition to the differentiation we have in terms of Voice Control and waterproof and cloud connected, we have Amazing Software which is super differentiated. It allows consumers to move their content on their cameras to their phones automatically. We create video for the consumer automatic the and they can we get to their hearts delight. Likes weve been talking about camerathe karma easier to use. What istion remains, the proposition for the consumer that is perfectly happy . Onyou look at the Movement Instagram and the content that phone doesntthe ,nable sufficient versatility immersive capture. Is freeare trying to do are consumers from the capture experience and let them live the moment and the activity and capture that activity. On the other side, on the software side, we want sharing that content to be as easy as if you captured it on a phone. Freeing our consumer to enjoy the moment and having the same convenience with a phone. Atyou are looking profitability. Is this a sustained return to profitability beyond the end of the year . Set a stretch goal at the beginning of the year to be profitable for 2017. We expect to see that. We expect to achieve doubledigit revenue growth. We do expect to be profitable next year and more profitable in 2018. We brought in a number of cost measures in march. It took several months to get those. Yearll have the full s. Nefit of those costsaving andxpect to expand margins reader profitability in 2018 area shares are down a third over the year. There are neutral ratings on the stock. What are investors missing . I have been through a turnaround situation like this before. Stock price always lags performance. We dont worry much about the stock. Our job is to deliver Amazing Products work in sumers and deliver an amazing Work Environment for our employees. , second First Quarter quarter, and now the third order, in addition to meeting expectations for consumers and employees, we are meeting expectations for our investors. Stock totime for the follow. We are confident we will continue to execute and that will come over time. You were at the global tech conference. What are the con conversations like . Its like different from months ago. There is a ricky missions it gopro recognition that gopro has a very strong foundational business. An untethered land to the smartphone. Its making that opportunity big. How much of the instagram content share can go . It has shifted from is the how big is theto opportunity ahead of us . That was the gopro coo. Ceos blasted President Trump this week over ending daca. We will hear from one startup speaking out next. All caps episodes are streaming on twitter. Check us out. Is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. Emily best of Bloomberg Technology welcome back to best of Bloomberg Technology. On emily chang. After months of speculation, the Trump Administration made it official. The deferred action for childhood arrivals, daca, is ending. President trump explained the decision. President trump i have a great heart for the folks we are talking about, and a love for them. People think in terms of children, but they are really young adults. I have a love for these people and hopefully now congress will be able to help them and do it properly. Speaking to members of congress, they want to be able to do something and do it right. Emily the Program Allows people who entered the u. S. Illegally as children to apply for renewable twoyear permits that shield them from deportation. Those who fall into this category are known as dreamers. Tech reaction was swift with leaders quick to offer their take. Dreamersok tweeted contributed to our Community Just as much as you and i. Apple will fight for them to be treated as equals. Streamers are our neighbors, our friends, our coworkers. Congress needs to defend daca. Microsoft giants like intend to take legal action if their employees who are dreamers are deported and will find their employees legal bills of necessary. The Cato Institute immigration policy analyst joined from washington to discuss. It really puts the employees in a state of legal limbo. But President Trump and attorney general sessions said today is that they want to kick this over to congress, give them six months to pass legislation that could in theory make these people have full legal status, just like they have had under the dream act or some other capacity. The reality is Immigration Reform has been a real hard sell in congress for several years. On its platea ton already when you think of at the debt limit and Hurricane Harvey and passing a budget and all those things. It is probably not something they were looking for. It adds to a full plate over the next six months. Obama didx, president make a statement today. He said to target these people is wrong because i have done nothing wrong. Lets be clear, the action taken today is not required legally. It is a political decision and a moral question. Talk to us about that. Is this a moral question. And not a legal issue . Both. I think it can be in terms of the moral dimension, to have people brought here as children under the age of 16. They did not make the decision themselves to come to the United States and break immigration laws. Many in these cases have grown up here. Many did not know they were Illegal Immigrants and deliver older. This is the only country they know. They are educationally and culturally american. About 80 of americans have sympathy for them and want to give them the ability to stay or a path to citizenship. These are people we can have a lot of sympathy for. In general we dont to punish people for the crimes of their parents. This is one of these cases where the American Public is completely on the right side of this ethically, notwithstanding any of the legal issues. Emily President Trump is saying it is time for congress to pass comprehensive Immigration Reform. Willie actually support it . Will he actually supported . Bill the land which he used was very interesting. He has publicly agonized over this decision, even during the campaign he said it was something he would do on his first day in office. The language from attorney general Jeff Sessions was much harsher. He described people who have benefited under the dream act as illegal aliens. He said they have been taking jobs away from true citizens. That kind of terminology does not sound to most peoples ears very compassionate. It raises the question of how much support people for behind a congressional effort. Attorneyr general sessions said any kind of legalization should promise be put together with other proposals the president s want, like one that would cut Legal Immigration and half. Including cutting skilled immigration by 100,000 a year. That is a nonstarter. That is