Has found political ad spending linked to fake accounts from russia in the runup to the u. S. President ial election. But first to our lead, dell completed the biggest Tech Acquisition in history of emc one year ago. The Historic Deal created the new dell technology. Which included the likes of dell, dell emc, vmware, and secure works. Dell faced several major legal and regulatory hurdles along with emc and zmware 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 from partners and customers has been very strong and 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 bigger and faster than we thought. We are paying down debt at an aggressive pace. A lot of things that could go wrong did not go wrong. And i think the big surprise is we have not had a lot of surprises. And certainly you see the success, vmware is one very important part that the family is enjoying but across the family, the business is doing very well. Emily you mentioned debt, you took on 51 billion in debt. You took on a pc market that had been sluggish. How did you navigate the challenges . Michael we have grown our shares in pc 418 quarters in a row. I will tell you, we are gaining share. I think, look, people have at times questioned the durability of some of our businesses, but they have held up incredibly well. And we are gaining share. Being able to navigate these transitions as we have and bring the family together, customerpartner reaction is very strong. As vmware went out to get some debt to continue its growth and expansion, investment ratings are quite strong. The Dell Technologies businesses is quite strong. Emily do you see more consolidation in the industry at large . We talked about how the big players are getting bigger. Will that continue . Michael i do. And the reason is customers dont actually want to have a bunch of Small Companies that they work with. There are deep reasons why these should be more integrated. So if you think about what vmware is doing, integrating, networking, and compute, and virtualize storage, and how you manage software in a manner that is consistent with what customers want. And it is really about, how do you, you know, create a cloud environment but in a premise pattern . Emily how do you stay nimble and make sure you are innovating from within . Or is it about m a . Michael it is not either or. Its both and the partnerships and the Venture Capital we deploy in new companies. So we will invest, you know 4 billion in r d across the Dell Technologies family. Emily whered you see yourself in five years . Michael look, what i see from 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 these smart, intelligent sensors being created and connected devices in this new age of human machine interaction . That is a ceo board level agenda item in every company that we deal with, ok . That is the first one, the Digital Transformation. Then you have the i. T. Transformation. How do i become more cloudlike, more Software Defined . How do i automate my infrastructure to run that super efficiently in many ways so i can fund the Digital Transformation . Then you have the work force transformation. How do i make sure that the people inside the company have the right tools so they can be productive and efficient, and its not about giving them the lowest cost thing possible. But you know, i want to try to retain the highquality workforce i have. People are figuring out productivity matters, and their devices are important. The last one is security. The attack surface is getting much greater. And 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 only increasing. Thats an incredibly important topic for our customers. We are focused on those four transformations. We think we are unique in the capabilities we bring across the whole spectrum. That makes us highly relevant for customers. And that is why we are growing faster than the industry. Emily our exclusive interview with michael dell there. Later this hour, we bring you more from the conversation, including dells strategy for fighting off the competition. Well, amazon is building a Fulfillment Center in new york. It will be located in Staten Island and create 2200 fulltime jobs. The new center is part of the push by the ecommerce giant to house inventory closer to customers and enable fast delivery. The company says employees will have the opportunity to work with the advanced robotics. And amazon has begun the search for a Second Headquarters in north america. The Worlds Largest online retailer plans to 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 giant has discovered next. Plus, gopro is getting an optimistic outlook after a push to cut expenses and update its product line. We will hear how it hold off a debt pulled off a comeback in the space of action cameras and drones. This is bloomberg. Emily facebook has been investigating possible connections between ads purchased on its site and russia. The social media giant said it discovered 100,000 in ads contacted to 470 accounts run out of russia. This would suggest russian money was used in violation of u. S. Laws that prohibit advertisements bought overseas 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 u. S. Election investigators. We covered this topic with our bloomberg tech reporter sarah fries. Sarah facebook has been looking into what it calls information campaigns, the malicious fake element to them, a lot of fake accounts, a lot of fake pages, and 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 now comes out and 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 that were purchased that were targeted in some cases to certain geographic regions which we know are important ahead of an election. While most of the ads didnt name a candidate or talk specifically about voting, they did talk about very divisive issues in the u. S. , like lgbt rights and gun rights and race relations, immigration. So they were trying to spark or whoever was behind this effort, whether it was the government or some other russian actor was trying to spark divisiveness in the election. Emily i know they are sharing information with u. S. Regulators, but is there any idea who in russia, whether they have ties to the actual russian government . Sarah facebook is not saying whether they have ties to the russian government. We are looking into it. Everyone is looking into it. There are several Intelligence Committee investigations into this. So i think, i think that facebook is cooperating. They are trying to provide information where they can. But the main thing they are trying to do is prevent this from happening in the future. They are looking at the patterns, matching it to Machine Learning algorithms and trying to stop this from being a problem in future elections around the world. Emily bloombergs sarah frier. 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. According to people familiar with the matter, facebook has agreed to set up a system for tagging videos that infringe copyrights. But that system could take up to two years to establish. Bloomberg News Reporter lucas shaw gave his reaction. Lucas facebook and the Music Industry have been spending months trying to resolve this problem where you have millions of videos being uploaded to facebook that cannot be there. Facebook is trying to build a system. It calls it content id. It will take so long, it would give rights holders millions of dollars to basically buy them off while they build the system. Supposedly in collaboration with these music partners to have a system for all of the user generated videos you see and are familiar with already. Emily this comes as they are rolling out a new hub for video. Called, watch. What do you make of this . James i think its smart. They have the leverage so they can likely get the deal done. If you think about it, what they are doing is putting the money where their mouth is. They are willing to spend a ton of money to keep 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 of user generated content. 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 their willingness to really be a contender and a player when it comes to the Digital Content arena. Emily lucas, who does this put pressure on . Youtube . Who else . 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. And also it does put some pressure on facebook to figure it out. I mean i think they are hoping the tighter they get bound together, the more facebook, the more seriously facebook will take the problems. It doesnt necessarily put pressure on anyone in the long term. This is really just the next step in facebook figuring out what its video strategy is. Emily on that note, james, facebook also made a bid for Indias League premier cricket games. They lost, but they also made a bid for the nfl thursday night football games. They lost to amazon. They are dabbling it seems. James they are dabbling while making 100 million plus bids. At the end of the day, i think 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 they can spend. Facebook has been willing to show the willingness i think is impressive in and of itself. The one thing facebook needs to be careful of is not trying to monetize new emerging efforts too fast and make sure they get the get the experiences right. Emily lets talk about that because we are just starting to see how they will be potentially earning money from like whatsapp, using it to communicate with consumers. What do you think of that . By the way, they spent 20 billion on whatsapp. We should point out. James i think its the right thing to do. I just dont want them to rush it. They did it so perfectly with facebook, so perfectly with instagram. Right now, people are still using messenger and whatsapp. I am not sure they are kind of ready for the in app advertising. Its great to monetize business relationships. Emily it has been a few years. James they have been a few years, but they are also facing pressure right now with the declining ads. They need to show growth. I hope is not being done as a reactive measure to the Market Expectations versus actually turning on the spigot for monetization at the right time. Emily when it comes to twitter and snapchat at this point, we know growth is struggling at both those companies. Do they stand a chance . James i think twitter does have a chance as long as they deploy the right strategy. Twitter is a service that is indispensable for realtime information. We use it, every site, every website, Media Outlets reference it. 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 core strength. In the meantime, you have facebook showing the willingness to spend money on content. If they win that apple, its a losing proposition for snap. Emily when it comes to snapchat, it is a right to a zero sum game, but amazon and facebook, can they all win if they are willing to pay up . Lucas the Tech Companies good could all win. The question is, is the ecosystem big enough for them and the media guys who already have the rights . What we saw with the nfl, twitter had the nfl last year but most people still watched the games on cbs and nbc. Twitter was much smaller. What we will see with amazon this year is, can amazon pull some of those viewers away . How seriously are facebook, amazon, twitter going to bid on some of these rights . I was really surprised by the facebook bid for the cricket rights. Facebook executives have in the past indicated 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. That suggests they are willing to spend enough money to sort of by away some of the biggest rights out there. When that happens, we could see a more significant like ration of viewers from tv to these newer platforms. Emily that was bloombergs lucas shaw and james. It is a partial victory for intel as they battle the European Union over a 1. 6 1. 26 billion 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 e. U. Courts, it could have ramifications for disputes 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 chief operating officer next. Plus, 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 controversial decision. This is bloomberg. Emily google is looking to resurrect its android 1 Smartphone Program in india. The Alphabet Company teaming up with xiaomi, mi, a1, in one of the largest emerging markets. Her and google first launched her the android 1 project in india three years ago. In sales were lacking. The phone went on sale tuesday for 234. It has a five and a half inch screen with a dual camera set up. Well, gopro has been living on the edge the last few quarters. Seeing shrinking demand, the company has seen sales plummet. But they say they are on the road to profitability. Bloomberg spoke to the chief operating officer cj prober about the turnaround efforts. Cj one of the things that was not mentioned in the preamble and were most excited about, we are going to be profitable in q3. Which is a Big Development in addition to the highend range of the revenue and the highend range on the margin. What is driving that principle is the hero five is the best product we have ever launched. We are seeing really Strong Demand for it. In addition to the differentiation we have enabled through hero five in terms of Voice Control and waterproof, cloud connected, we have Amazing Software ecosystem which is super differentiated. It allows consumers to move their content from their cameras to their phone automatically. We create a video for the consumer automatically and they can tweak it to their hearts delight, or they can share it directly. Emily we have been talking about making the camera, the software and hardware easier to use assuming 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 these ever improving smartphones . Cj if you look at the movement happening on platforms like instagram and we chat, at the and the amount of content creation, you look at the tip of this spear on those platforms, the phone does not enable sufficient versatility, sufficient immersive capture. So what we are really trying to do with gopro is free our consumers from the capture experience and let them live the moment, live the activity, capture that activity, and on the other side of it, 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 really freeing our consumers from capturing in the moment to living that moment and enjoying it, and then having the same convenience you have today with your phone. Reporter gopro is projecting return to nongap profitability in q3. Should we expect to see a sustained return to profitability beyond the end of the year, and if so, how are you going to achieve that . Cj yeah. 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. We also expect to achieve doubledigit Revenue Growth this year, and as it relates to next year, we expect to be profitable and more profitable in 2018. And the reason for that is we have implemented a number of cost measures, in march of this year, and it took several months to get those costs out of the system. So we are going to have the full year benefit of those cost savings next year with continued Revenue Growth, lower opex, we expect to expand margins and to deliver better profitability in 2018. Emily the company is announcing process of today, but the shares are still down over a third on the year, and there are mostly cell and neutral ratings on the stock. What ar