The social media giant said they found political ad spending linked to fake accounts from russia in the runup to the president ial election. But first, dell completed the biggest Tech Acquisition in history of emc. The Historic Deal created the new Dell Technology. Which included dell, vmware, and secure works. Dell faced several major legal hurdles along with emc stockholder skepticism. I sat down with michael dell and asked him for the oneyear report card. Michael i am very pleased with how its going. Reaction has been strongly positive, our teams are very engaged. Our customer nps scores have continued to improve. Our Employee Engagement scores, our record high levels of synergies are coming to your they are coming bigger and 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. You see the success, vmware is a very important part that the family is enjoying but across the family, the business is doing very well. Emily you took on debt and a pc market that had been sluggish. How did you navigate the challenges . Michael i will tell you, we are gaining share. People have questioned the durability of some of our businesses, but they have held up incredibly well. We are gaining share. Being able to navigate these transitions and bring the family together, customer reaction is very strong. As vmware when out to get some debt to continued growth and expansion, Investment Grade rage and sees investment ratings, are quite strong. Emily do you see more consolidation in the industry . The big players are getting bigger. Will that continue . I do. 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 vmware is doing, integrating networking and virtual live storage and how you manage software in a manner that is consistent with what customers want. It is really about, how do you create a cloud environment . In and on a premise fashion. Emily how do you stay nimble and make sure you are innovating from within . Is it about m a . It is not either or. Its both and the partnerships and the Venture Capital we deploy in new companies. We will invest more than 4 billion dollars in r d across the Dell Technology 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. The Digital Transformation. How do you use all of this data 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. That is the first one, the Digital Transformation. Then you have the i. T. How do i become more cloudlike . How do i automate my infrastructure to one that two run that more efficiently to fund the Digital Transformation . Then you have the work force transformation. How 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 retain the highquality workforce i have. Productivity matters in the devices are important. The last one is security. The attack surface is getting greater. We have a broad set of capabilities to help our customers defend and protect their most critical information and data. Business is about trust and assurance. The sophisticated nature of the attacks is increasing. Thats an incredible topic for our customers. We are focused on those four transformations. We think we are unique in the capability we bring across the whole spectrum. That makes us highly relevant customers. Thats why we are growing asked why we are growing faster than the industry. Emily later this hour, we bring you more from the conversation, including dells 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. The new center is part of the push to house inventory closer to customers and enable fast delivery. The company says employees will be able to work with the advanced robotics. Amazon has begun the search for a Second Headquarters in north america. They will spend 5 billion and add as many 50,000 jobs. Coming up, was russian money being funneled to produce political ads on facebook . We look at what the social media has discovered next. Gopro is getting an optimistic outlook after a push to update its product line. We will talk about crowded space of action cameras and drones. This is bloomberg. Emily facebook has been investigating possible connections between ads purchased on its 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. The ads were bought between june of 2016 and may of this year. Facebook says it has deleted the accounts and pages and is providing details to investigators. We covered this topic with our bloomberg tech reporter. Facebook is looking into information campaigns. They have this malicious element to them. They tried to spread propaganda in one way or the other. A report came out earlier that detailed that and linked it vaguely to russia. This says money was involved and while 100,000 may not sound like a lot of money, it can buy a lot of facebook 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 in the u. S. , like lgbt rights and gun rights and race relations. They were trying to spark or whoever was behind this effort, whether the government or other russian actor, they were trying to spark divisiveness in the 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. We are looking into it. Everyone is looking into it. There are several Intelligence Committee investigations into this. I think facebook is cooperating. They are trying to provide information where they can. The main thing they are trying to do is prevent this from happening in the future. They are looking at the patterns and matching it to algorithms and trying to stop this from being a problem in future elections around the world. Emily facebook is offering hundreds of millions of dollars to major record labels and publishers for music rights. In Exchange Users would be able to include songs and videos they upload. Facebook is a read to set up a system for tagging videos that infringe copyrights. Could take two years to that system established. Lucas shaw gave his reaction. Facebook and amusing industry has spent facebook and the Music Industry has spent months trying to figure out this problem. You have millions of videos being loaded with music the that shouldnt be there. 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. Called, watch. James i think its smart. They have the leverage so they can get the deal done. If you think about it, what they are doing is putting the money where their mouth is. Theyre going to spend a ton of money to people engaged. Whether it is ensuring there are no issues when it comes to music, because, thats one of the primary reasons for uploading videos. At the same time, they will spend hundreds of millions of dollars for video content. They did 600 million for the Indian Premier League on cricket. I think what they are showing is the willingness to really be a contender and a player when it comes to digital content. Emily who does this with pressure on . Youtube . Lucas the record industry hopes youtube. They have been trying to get youtube to change the way it behaves for years. They have had no success, they have no leverage. It does put some pressure on facebook to figure it out. 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 step in facebook figuring out what the video strategy is. On that note, they made a bid for the cricket games but 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. At the end of the day on a headtohead matchup, amazon versus facebook is the advantage to amazon. Investors are conditioned to a 0 margin so there is a virtually unlimited amount of cash. Facebook has the willingness, the one thing facebook needs to be careful of his two not is not trying to monetize new emerging efforts to fast. And make sure the get the experiences right. Lets talk about that because we are just starting to see what theyre doing, they are going to charge for new features for consumers. They spent 20 billion on whatsapp. James i think its the right thing to do. I dont want them to rush it. They did it so perfectly with instagram. People are still using messenger. And whatsapp. I dont think they want inept advertising. Its great to monetize business relationships. Emily it has been a few years. 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 the spaghetti turning on the spigot, for monetization at the right time. Emily when it comes to twitter and snapchat, we know growth is struggling at those companies. Do they stand a chance . James i think twitter has a chance. They have a service that is indispensable with realtime information. Media outlets know. With snap, every day is going to get harder and harder. We came out initially bullish on snap. They are their worst enemy. Theyre not capitalizing on their course strength. In the meantime you have facebook, showing the willingness two 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 . Can they all win if they are willing to pay up . Lucas they could all win. The question is, is the ecosystem big enough for them and the media guys who already have the rights . Twitter had the nfl last year but most people watch games on cbs and nbc. Can amazon pull some of those viewers away . How seriously are facebook, amazon, twitter going to bid on these rights . I was apprised on the facebook bid for the cricket rights. Facebook indicated in the past, they did not want to spend a ton of money on rights. They were hoping to work out scenarios were they could share advertising revenue. They want to buy some the some of the biggest rights out there. We could see a more significant like ration of viewers from tv to these platforms. That was lucas shaw. It is a partial victory or intel four 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. Intel is among the few companies to have continued a lengthy battle against the European Commission all the way to the top courts, it could have ramifications 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 coo next. Leaders in the Tech Industry lash out against President Trumps decision to end a program preventing the deportation of immigrants legally brought to the u. S. As children. We will do a deep dive on the controversy over daca decision. This is bloomberg. Emily google is looking to resurrect its android one Smartphone Program in india. They are marketing the mi a one phone in one of the largest emerging markets. They lost the android at one they launched the android one, project in india three years ago. Sales were lacking. The phone went on sale for 234. It has a dual camera set up. Gopro has been living on the edge. There is a shrinking consumer demand and they 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. In addition to the margin, what is driving that is simple. The hero five is the best product we have ever launched. We are seeing Strong Demand for. In addition to the differential ands 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 from their cameras to their phones automatically. We create a video for the consumer automatically and they can tweak it to their heart delight or share it directly. We have been talking about making the camera, the software, and the hardware easier to use. You are trying to target a broader base of consumers but the question remains, what is the Value Proposition to the average consumer that is happy with the camera on smartphones . If you look at the movement happening on platforms like instagram and we chat, if you look at the tip of this spear on those platforms, the phone does not enable sufficient versatility, immersive capture. What we are trying to do with gopro is free our consumers from the capture experience and let them live the moment, live the activity, capture it, and on the other side, on the software side, we want the experience of sharing that content to be as easy as if you captured it on a phone. We are freeing our consumers from capturing in the moment to living that moment and enjoying it and having the same convenience you have today with your phone. They are projecting a return to nongap profitability in q3. Should we expect to see a still stained return to prop a sustained return to profitability and how you achieve that . We set a goal at the beginning of the year to be profitable on a nongap basis for all of 2017. We expect to achieve that and we expected doubledigit Revenue Growth this year and as it relates to next year, we expect to be profitable and more profitable in 2018. We implemented a number of cost measures, in march of this year, it took several months to get those costs out of the system. We will have the full year benefit of those cost savings next year with continued Revenue Growth, lower, we expect to expand margins and to deliver better profitability in 2018. The company is announcing positive news but shareholders, there are mostly cell and neutral ratings on the stock. What are investors missing . A true turnaround situation like this before, the stock likes performance. We dont focus too much on the stock, it is our job to deliver Amazing Products for consumers, to deliver an amazing Work Environment for our employees and to deliver against the expectations we set for our investors and over the first quarter, the Second Quarter and now the third quarter, in addition to meeting expectations for consumers, and meeting expectations for employees, we are meeting expectations for investors. In a turnaround like this it takes time for the stock and investors to follow but we are confident we will continue to execute and that will come over time. C. J. , youre at the global tech conference right now, what our conversations like with investors . How is this different from previous years . It is different from 12 months ago. There is a recognition that gopro has a sound foundational business. As we share our vision for the teacher and how gopro can become an extension of the smartphone, an untethered lens, the discussion is how big can the opportunity be . How much can the instagram content sharing can go for capture . The discussion has shifted from is the business sound, yes, the core business is sound and profitable and growing and now it is, how big is the opportunity . Emily speaking with bloomberg there, and coming up ceos blasted President Trumps decision to enddaca. A reminder that all episodes of Bloomberg Technology or Live Streaming on twitter. Check us out. This 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 welcome back to the best of Bloomberg Technology. After months of mixed messages, the deferred action for childhood arrivals better known as daca is ending. President trump explained the decision. I have a great love for them. People think in terms of children but they are really young adult. I have a love for these people and hopefully now congress will be able to help them and do it properly. In speaking to members of congress they want to be able to do something and do it right. Emily the Program Allows people who enter the u. S. Illegally as children to apply for a renewable two your permit that shield them from deportation. Those who fall into the category are known as streamers. The repea