And other americans. Global news, 24 hours a day, powered by 27 hundred journalists and analysts in 120 countries. This is bloomberg and Bloomberg Technology is next. This is Bloomberg Technology. Hammering out details to grab a andive stake in uber seeking a discount to invest in the startup. Our conversation with meg whitman, as she prepares to leave the company. We talk about her political ambitions. 10,000 andoaches we discuss the true value of the currency. Is leading investors to buy a huge stake in uber. A billion direct investments in the start of. This would put the uber valuation at 40 billion. At the most recent valuations, it was 69 billion. Joining me now is a Management Capital partner who was the head of communications in the americas and also with us is someone who covers uber for us. Where do we stand right now . The am waiting for documents to get sent out in the next few hours. Today is the expectation and it is a little behind schedule, as has everything been in this deal. This is the opening salvo from softbank. 33 a share translates into this valuation and they will see if they can get enough people to meet the outstanding shares they want to acquire. What is the likelihood of them acquiring that . This is the debate we will have an there is an appetite for liquidity. People want to sell and do not want to miss out. Some people know that the price could go up. Sell. Have shares to what are employees talking about . There is not a lot of information out. All we know is what we are reading in the press and there is not a lot of communication with former employees. I am wondering if i can sell. Do employees feel about a discount like this . For each employee, it is probably emotional. It is an emotional issue. You have to determine whether the, lower they have to determine whether the lower value is enough. Tiedvernment reforms are to this. The 17person board that happens and some of the power gets restricted because of the supervoting shares losing power and all of that is contingent on this deal going through. There is a lot of pressure to get this done. The employees do not have much of a say in this. This is down to the biggest investors and the biggest shareholders, like travis. Thatere is a misconception they have a say in what happens next. There are a handful of people and mostly investors who have all of the say and we are just along for the ride and we hope it is a good one. Thehat is happening behind scenes . The documents contain Financial Information and risk factors. You say you are selling your shares and you need to know something about the values of the shares to assess. Softbank is making a calculated decision about the share value. Wonder about other skeletons in the closet. What do you make of the news of the big hack . I do not believe in a coincidence and this came out two days before thanksgiving in the middle of this deal. It is a little too perfect and there is some intention to make investors make a quick deal with softbank. A trial has been postponed and there have been harsh words uber about another coverup. Another employee indicated used encrypted messages and deleted communications to not be found in court later and that is important here because google is andng to turn up the files there is a question as to they would ever find them, if they were using encrypted services. There will be some cleanup for some time. What other skeletons are there in the closet . You are worried about what you do not know and what is coming next and you have to do a review of each division and department to find other issues that exist. Hopefully, most of them are exposed, but your job is to deal with these. There are probably other things out there that will come up and they will have to manage it. There is london and other investigations. Sullivan is the chief Security Officer who was pushed to a lot ofs tied questions and his team is being looked at closely. The new general counsel will have to look into what the Strategic Services group, the uber internal counterintelligence group, what they surveilled and whether there was hacking. There are a lot of questions in relationship to the waymo case and others. Probesre five criminal and a ton of issues that u. S. Attorneys offices are looking at to try to figure out whether anything was criminal and that is an ongoing situation. Are there more shoes to drop . On the record, not that i know of. There probably are. , ite get closer to the ipo is likely these will be exposed and the company will move on. We will be waiting on the update. Thank you both. From one ridesharing firm to another, lyft. Valerie jarrett has taken on. Everal new roles at her most interesting is her role on the board of directors of lyft. Over the first few months of lyft and i wrotrode would talk to the guys and they said they were paid well. I think that speaks volumes of rse company and it took yea for them to reach 100 million customers. So, they are growing exponentially and went from the beginning of this year, serving 54 of the american people. Now, 95 have access. You look at the way they deliver their service and you could do better. Been associated with women and women have had a significant role in lyft. 40 of your drivers are female. I dont know if it is that high. Feel safen if they and they say, absolutely. The company goes to Great Lengths to make sure that drivers are safe. Visited Senior Management and saw diversity and the fact that they had women in key roles. I think that they cut against the grain of the tech reputation. They do it because they think they provide Better Service that way. Valerie jarrett, the former Senior Adviser to president obama. Is goingman of the fcc on the defensive, defending his plans to repeal net neutrality. Issue witheated an Web Companies and celebrities to dismantle the internet protections. He took aim at twitter and he said that twitter is part of the problem. The company has a viewpoint and uses their viewpoint to discriminate. Meg whitman prepares to step down from her company and we talk about the challenges ahead for her successor. Bloomberg technology is live on twitter and you can check us out in new york and san francisco. This is bloomberg. Host the federal Aviation Administration warns of collision risks between drones and airplanes. The drones can significantly damage engines and windshields on impact. Incidencesmber of drones. Olved that is over a 150 percent jump from a year ago. Meg whitman prepares to step. Own from the company we discussed why she is leaving and why the time is right for her and hpe. A transformation that might be one of the biggest in Global Business history from a Single Company that was facing a lot of challenges to a nimble and Agile Company with hewlettpackard enterprise. It is well positioned for the wellposition for the future and it is time for the next generation of leaders to take hewlettpackard forward. Rightabout getting the person in the right job at the right time. Think that antonio is the right guy for the job . He has been there for decades. I have said that the next ceo needed to come from inside and, when you come from the outside, which i did, the length of time it takes to understand the product and the culture is long and antonio and i crafted the strategy and he will execute that strategy as a Standalone Company and he is a deep technologist. The next ceo needs to be a deeper technologist that i am. I am a consumer technologist. He is an Enterprise Technology executive. Have argued that andneeds a landscape shift appointing an employee from the inside is not that. At think about the shift we have undergone and we shrunk down to about a 24 billion company and we made six or seven acquisitions in the last months. The largest one opened up a new growth frontier in the intelligent edge. The edge will eat the cloud because so much data is being generated at the edge. So, i think that the company is in good shape and we are less the pendant on the server business. We have value products and Growth Products and we have created a new category of infrastructure and we have developed flexible consumption pricing to keep workloads and pay for them as you consume the storage. So, i actually think we are in a good place with coherent strategy to match the needs of the market. How do you turn around Enterprise Spending with more companies outsourcing to Cloud Service providers . A large part of the market, but there are many workloads and the recent trend we have seen is the multicloud strategy. There may be multiple public clouds and some will remain on trend and we have seen some Companies Moving workloads back on trend because it has gotten expensive in the public cloud and we have to enable a hybrid solution and help customers figure out the right mix where the workload should live and that is a capability we are is what ourthat partner does, help figure out where the workloads go to enable the future and the edge has as much pressure and it is growing like a weed. Chill onis put a mergers and acquisitions as outside of your wheelhouse . Do you think that hp will be creative with doing deals . I think we had some posttraumatic stress syndrome and we did not make any acquisitions until aruba and we have to be very thoughtful. We took Due Diligence to an extreme. This, im sorry about but you are the first acquisition. Aruba has been an incredible acquisition for us and we got our momentum back and aruba has been fantastic and nimble. I think we now know what acquisitions work for us and it is Complementary Technology that we can put to our fantastic Distribution System and partners and accelerate the growth of those companies and take out some of the overhead. We have a formula and we have to not overpay. , but we are going to get knowhow and confidence to do good acquisitions. Host in what areas do you expect deal hunting . Our strategy is threefold. We power the intelligent edge and we have the services. We have Cloud Technology partners, as i mentioned. A company that allows us to meet her how Much Technology customers are using. We will be looking at Small Services acquisitions and something might come up in the intelligent edge that is germane to our view of that. Few acquisitions and behavioral analytics. And, with hybrid it, there is Software Structure space and we took our user interface and put it on the most prevalent server in the world, the 380. That turns out to be a winner for us, as well. If we make them only in those three areas, we will stick to aose areas because there is lot of room to powering the intelligent edge and making services that happen for clients. Host meg whitman. Tune in later in the hour for more with meg whitman, including her thoughts on the Trump Administration and her own political aspirations. Customers have discovered a security flaw in the latest version of the operating system to logthat allows anyone in without a password, even remotely. There is a new story out on the bloomberg terminal. Check it out. This is bloomberg. Host the at t ceo met with the top antitrust enforcers to offer a lastditch attempt to avert a lawsuit blocking the time warner deal. According to people familiar with the matter, the proposal was modified to address concerns. The Justice Department sued the following business day. He was accompanied by a highpowered trial lawyer. The negotiations broke down after less than one hour. We are watching shares of roku pulling back. They had gained 31 and the company was compared to netflix. A sales wi roku nner. A writer said it was time to pop a bubble. They called the maker of the Television Streaming device a total joke. Has 10 million square severalspace across countries. The terms of the deal were not disclosed. Sticking with mergers, a movie merger. The number two chain is said to be in talks with a u. K. Group. Deal would create a bigger international rival. Riggle is trying to find a buyer was trying to find a buyer in 2014, but was unsuccessful. What is behind this rise . We will discuss. If you like bloomberg news, you can check us out on the radio siriusxm. This is bloomberg. Alisa im Alisa Parenti from washington. You are watching Bloomberg Technology. Secretary of state Rex Tillerson is seeking to reassure europe that the u. S. Remains fully committed to a european security, particularly in france from russia. Speaking at the wilson center, tillerson tried to dispel concerns that the Trump Administration is pulling back from nato by demanding european members spend more on their own defenses. Ninee have detained turkish leftists. Said thestatement turkish nationals, eight men and one woman, were detained in athens. Authorities added that the operation was not connected with islamic terrorism. Kenyon Opposition Leader attasued to protest keny reelection to the presidency. Shortly after calling the presidency illegitimate, he was shoved into his vehicle as always fired tear gas at protesters. A sevenyearold was among three People Killed in tuesdays violence. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti. This is bloomberg. Its just after 5 30 p. M. In washington, 6 30 wednesday morning in hong kong. We are joined by sophie kamaruddin. Recordbreaking gains on wall street. Reporter we will see if asian stocks will be able to track the headwinds. Sian investors asian stocks could be set to climate futures higher in sydney as well. Now checking on the dollar as the u. S. Senate tax bill has one less hurdle to contend with, and the new fed hike fed chair spoke. The yen has little change. Gold, little change after topping 1300. Oil continues to slip. Plus, markets are waiting to learn how long opec production. Ups cuts will remain that is the rap here as we head to the Asian Session on this wednesday. More of the next with Bloomberg Technology. Emily this is Bloomberg Technology. Im emily chang. One week after topping 8,000, bitcoin is approaching five figures, gaining mainstream market affection attention. Of the biggest balls on wall street spoke at a new york conference earlier. He urged caution. Become thethis will biggest bubble of our lifetimes by a longshot. I want to record to show i didnt say that. [laughter] mostly because it is so global. They are starting a 500 Million Dollars fund to invest in cryptocurrencies and says bitcoin could easily match the gold market cap. Adam white is Vice President of coinbase, an Online Platform that allows you to buy or sell club bitcoin. It has almost tripled its user base this past year, now standing at 13 million. Biggest bubble of our lifetime, do you agree . I dont know if i would agree. I think the price is an easy metric for everyone to point at. It is widely covered, it is fascinating, it is one important quantitative indicator to look at the success of this technology, but we spent a lot of time in the space looking at the utility, how many people are using the technology, what is the transactional daily volume . That is separate from the price and we are seeing great growth. Emily talk to us about the growth at coinbase, the accounts tripling to 13 million in the last year. Where do you see that growth going . We started with around 5 million retail customers on coinbase. Com. That is effectively the easiest way to get started buying and selling digital currency. We are reporting almost 12 million retail customers. We see coinbase becoming the easy onramp to the Digital Currencies base. Volume,t total trading and we have seen over 50 billion worth of cryptocurrency traded on our platform alone. These are leading indicators we are seeing average, everyday users beginning to adopt an experiment this technology. Emily it may not be the biggest bubble of our lifetime according to you, but there is a lot of volatility. Lets look at the chart on the bloomberg. This compares bitcoin volatility to the euro dollar, the most traded currencies out there. What do you make of this volatility, and how can people put trust in this currency if this keeps up . Its a great question. I do think the volatility will be shortlived in the lifespan of Digital Currencies like bitcoin. We are in the early stages of this technology. We are watching the market engage in this process of price discovery. We are seeing rapid increases and also recoveries in the price. Whats interesting is i coauthored a paper last year, and we look at the 2016 volatility of bitcoin compared to asset classes. We found that coin was as volatile as both oil and less yeartwitter stock in the 2016. In my opinion, we are seeing volatility right now that is not a bad thing. More liquid markets with Institutional Capital entering the space will decrease volatility and make Digital Currencies like bitcoin a stock. Financial emily we heard from glenn hutchins, cofounder of silver fraud as ithis relates to bitcoin. Take a listen. There has been a discussion of bubbles and frogs percolating around our universe. To makeit is important a distinction between a bubble and