Pompeo,ia director mike but tillerson and President Trump deny reports. Emily this is bloomberg technology. Coming up, bitcoins have to the mainstream. U. S. Regulators have cleared the theto allow future specs on company. We will discuss legitimacy of cryptocurrency. Plus, taking stock of uber. Joining us now, poly Chain Capital cost ceo. Ceo. Ly Chain Capitals great to have you here on the show. What a week it was. I imagine it has been crazy for you as well. I imagine it has been a crazy week and here for everyone in the cryptocurrency space. Massive. It gives access to anyone who wants to have access to bitcoin without actually having to hold bitcoins. It also means it opens new Financial Products so people can shorten it and that against the. Rice for a first time i think there is an increasing understanding that this is a massive technology, perhaps larger than anything weve seen since the creation of the internet itself, and its important we create careful, pragmatic regulation about this industry and technology. This weve had conversation earlier, but i think it is important to have it again. As a price continues to go up and up and up, you dont want to over hype, but there are still a lot skeptics and a lot of uncertainty. there have always been skeptics, and i think what we have seen recently is nothing compared to what we will see over the next i did 10 years. Many other technologies are growing at a faster clip than bitcoin. I think going forward, we will see many new ecosystems developed. Many of these things will grow even faster than bitcoin has in the past year. Some ofets talk about the comments weve heard a bubble, a fraud what do you think . Think people have been saying that since the beginning. I think the folks saying those things do not understand the Technology May be as well as they could. I also think that whenever something is this large of a breakthrough, it challenges established world views and ideas about the world, so i think that a lot of folks see their existing worldview challenged about maybe what is possible, and it scares them a little bit. Oftentimes, the response to understanding bitcoin for the first time can be backlash. Many of those folks over the last five years were originally skeptical, but as they learn more about the technology, they come around and read this is a massive breakthrough. What about bitcoin itself . How will it be used . What will it be used for . Olaf i think it is acting as a sort of digital gold. You can transmit it over the internet digitally. This means lots of people want to use it as a diversified asset class so they can get uncorrelated exposure. A lot of people want to store their money in something other than their regional currency, soy think theres a lot of Different Reasons why people might use it, but a lot of it boils down to that digital use case. Emily bitcoin job postings have spiked on linkedin. Are you guys hiring . Olaf we are definitely part of that. Emily what is the war for talent like . There must not be that many people who are experts. Has grown 10and times. The number of people in the space that are genuine experts is pretty small. Now is a good time to be an expert in cryptocurrency technologies. Emily how many people are you hiring . Olaf we are looking to hire about 10 people. Basically anyone with a deep understanding of cryptography, distributing network game therapy distributing network, game theory. It is not very deep, but the reason is because those folks who have the skills have very lucrative other opportunities. I think the competition for these types of folks will only increase for the next five years. More there was a lot optimism around ethereum. Fred wilson told me he thought it would surpass bitcoin, and now it is not even close. Olaf i think over time, many other technologies in this area will grow essentially. The reason is they actually name also its of new behaviors that are not possible with bitcoin. Ngs like a theory of what we have seen happen with largeum, they build a ecosystem of developers that are all building applications and infrastructure on top of the online protocol, so this is the type of thing we have seen never possible. Emily do you think other cryptocurrencies will surpass bitcoin . Olaf yes, i do. Last time i was here, i said it would surpass bitcoin by 2018. I stand by that. The types of things were seeing eum, they arer almost a bit scifi, beyond anything you would reasonably think is possible. Im interested in the applications that will be natively enabled by the technology. Services that offer an improvement in storage fromalth, but most things the internet were not possible in an analog world. There was not an offline version of facebook. What are looking for an excited that our those native uses are capable. I am very excited about many cryptocurrencies that are upandcoming. Efinity, polkadot i know youre looking at me like you have never heard of these things, but you probably have not heard of a theory of a eum a couple ether of years ago. Fail . Which ones will olaf i think easily 99 will a any new i think that fastmoving start of ecosystem, that is basically what is going to happen. Emily great to have you here. You are charting the bitcoin history for us. You will be part of it. A story we are watching redbook is being sued by disney for selling digital downloads of. He studios films disney said in a statement red box is selling their digital films and they have taken action to stop the unauthorized conduct. Coming up, with so many scandals, it is easy to lose track of the biggest problems behind the scenes at uber figuring out how to make money or at least lose less of it. We break down over ubers financials next. Emily this week, we learned that over ubers losses continue to mount. Next . Happens lets bring in our bloomberg tech executive editor and a bloomberg tech newcomer. Lots of talk about the deal. The deal with softbank. Its been going on for months. If any have to decide implied 48 billion valuation is enough. A 30 discount. But for a lot of people, it is a huge increase over what they got before. People are deciding if they should offer the shares and by how much, and based on how many people do it, softbank will either accept that, say they need to of the price to get more people, or walk away from the deal. We are waiting for the clock to wind down. And we have new information about their financials as well. We always knew they lost money, but we are seeing on a gaap basis that its astronomical. They lost about 1. 5 billion dollars in three months. Besides the accounting information were getting, their losses have started to grow again. They have been decreasing quarter of a quarter, and now they are going up again. Tom, you have covered the Tech Industry for many years. I joined this company and started working with you when over did not eat when uber did not even exist. It was just a black car service. How unusual is the story of this company . Tom it really met a deeply felt need. Venture capitalists are looking for does this meet the need i had . For a lot of people, yes. But how do you scale that . How did you go from city to city and region to region and do that in a very Silicon Valley way . What we saw in early stages was its ability to enter a market and flout the rules. Were going to go in and move into this New Territory and ask questions later. As they ask those questions and regulators asked those questions, it just got harder and harder. We have seen them expand and now they have had a really retrench in a lot of areas. You are seeing the cost that that provides to the bottom line. Emily i want to talk about another story we broke last night about a prominent investor who had invested in uber and airbnb, shervin pishevar, has , being accusedod of Sexual Misconduct. We have documented six cases of unwanted advances or sexual harassment. One of those people is a long telling usxecutive he groped her at a party in 2014. He has denied these allegations the via a representative, saying he maintained a friendly relationship with her. The denial was interesting. Another person who was at the party talked about how he showed up with a live pony on a leash wearing a santa hat and could not have touched anyone because he had the leash in one hand and a drink in the other. Similarly, he has denied allegations from five other women who we talked to who did not want to be named that he either sexually assaulted or harassed them. This is our opportunity to ask you questions or a change. You were really the author of this story. You really drove the story. It took a long time to come together. Weve heard a lot of stories about Sexual Misconduct across Silicon Valley. Why does it take so long to pull a story like this together . Tell us about that. Was involved in reporting the story as well. This has been a difficult story to do, the stories of misconduct related to men in power have been difficult, but this one in particular was very hard. We started looking for the story back in july when we got a tip about a Sexual Assault that he was involved in allegedly in london. He was never charged. Around the same time, we started talking to women and started collecting story after story of women who had unwanted advances from him, and we spent a lot of time trying to talk to these women about their experiences and to convince them to come forward, and some of these women had agreed to speak to us on the record tom right. You wrote about this in the story. What changed their mind . Emily before any stories about this alleged Sexual Assault in sued ahappened, pishevar London Research firm for being part of a broader Smear Campaign against him, and that very much discouraged more women from coming forward. The women that had agreed to give their names decided not to, and we ultimately told their stories on background, which was incredibly difficult. Successfullso the effort against the son to get an injunction on them to stop them from according the alleged rape in london. It has just been at every turn. This super powerful figure in Silicon Valley, someone who has donated more than 500,000 to Top Democrats hillary clinton, cory booker, kamala harris, president barack obama. This super connected figure, and i think it took a lot of courage or you and your sources to get the story out, and it has been a long time in the works and has been supercop located because of the situation in london and sort of an effort to muddy the water there, so getting these women who had experiences with him outside of the legal system was i think super important. Weve been spending a lot of time today Colin Shepard capital, the Venture Capital callingcofounded, calling thee, politicians he donated money to to ask what kind of action if any they are going to take. I did hear from uber who told me in a Statement Today they fully support those who have felt harassed speaking out whenever and however they choose and they commend their bravery. Tom cole in his response is also i would like to go back a little to the denial. The denial focused on this idea you later maintained contact with me, we were on friendly terms. Tell me about that one employee,t, newish and outside investor. You can imagine that she must have felt as if this is a person who had power and influence over her and that perhaps she wanted to maintain the cordiality of that relationship. Taking aishevar different approach than some of these other men who have been accused. He has outright denied some of the allegations. His attorney said they are confident the allegations will be shown to be untrue. We are doing as much is possible to get more statements from the people who are still connected to him. Thank you guys so much for joining us. And for a team effort on this story. Amazing bloomberg tech team reporters. Ok, coming up, the largest proposed tech deal ever still has not gone through. We look at the latest delay in broadcoms effort to acquire one of its rival chipmakers next. This is bloomberg. The New York Times is revamping its pay wall access. The paper has scaled back the. Umber of articles you can read those not subscribe will be able to read five free articles per month. More than that will require a subscription. The publication added 154,000 digitalonly subscribers to the publication, a 14 jump from a year earlier. Now to a story we continue to watch, broadcoms pursuit to acquire rival chipmaker qualcomm. An upped bid may not come until closer to march, when broadcoms Board Meeting takes place. The question is why . We think it is tactical. There has been consideration of a couple of options, esther if you put the directors forward first or up the money. We understand qualcomm is also in the middle of its own attempt to make a huge acquisition. What is the status of that . Shareholders do not like the price and qualcomm needs 80 of them to agree. Probably not going to happen at that price point. They are most likely going to have to up that amount. Toshibas attempt to rescue itself. It has devolved into a very bitter legal fight. It looks like they are getting , whicho resolving that means Western Digital has a future in the chip business. Emily how do you expect this to play out . If the Broadcom Qualcomm deal happens, it would be the biggest ever in the Tech Industry. It is difficult to say. If all content get that in xp deal done, that would put them into position to much they should be worth more. If that does not happen, then maybe broadcoms offer to qualcomm shareholders looks attractive. Looks like they could get almost 80 and be happy. Emily how long could this dragged on . Goes all the way into a hostile takeover, were looking at quite a long time. Emily years . I dont know about years, but we know the meeting coming up in march will be the main indicator of what will happen. King covers the chip industry for bloomberg technology. Great to have you on the show. Coming up, vmware has been diversifying to keep up with demand for Cloud Services. We will talk to the ceo about managing its performance. Thats next. This is bloomberg. You are watching bloomberg technology. A white house lawyer says Michael Flynn is the only one implicated by his guilty plea. Michael flynn admitted making false statements to the fbi. This is epic. This is seismic and proportion frankly. It means director Robert Mueller is getting high up in the food chain. There are few people left for generalet to between flynn and President Trump, so it is all closing in on the president. A bloomberg columnist says President Trump soninlaw and jarederod kircher kushner directed Michael Flynn to contact moscow. Tennessees bob corker will not vote for the tax overhaul. 51 senators are in favor of the legislation, and that includes the susan collins, who says to date she will vote yes. The european console president donald tusk says theresa may has until monday to present her final offer on brexit divorce terms. A major impasse has been a hard border in northern ireland. U. K. Said it must keep the irish border open. I have addressed the border many times. The best solution would be for the United Kingdom to remain in the union and single markets, but as that option was thrown out, it must offer credible, concrete, Workable Solutions that guarantee there will be no hard border. The eu was behind ireland on the need for a border plan. Argentina has called off the rescue mission for its missing some burying. Missing submarine. This one disappeared off the coast of patagonia. Continue, butl without International Assistance and only in waters up to 500 meters deep. Welcomed then world cup at the kremlin palace. The teams gathered in moscow for the big draw. The team will be split into eight groups. Russia will play saudi arabia in the opening game on june 14. The u. S. Failed to qualify. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Emily this is the bloomberg technology. Vmware with strongerthanexpected numbers th. The company is embracing Cloud Services and the companys stock have shot up 50 over the last year. Joining me now is the ceo from stanford. What you think is driving results right now . Always great to have the chance to be with you. We would say three things are driving our performance. Out,trategy we have laid the cloud strategy, partnerships with amazon, ibm, really resonated with customers. , and sales execution breaking out of tech. It is a good market for Technology Companies moving into every business and every aspect of every business. So those three together, good results, and we are are excited about the benefits we are bringing to our customers. Is the benefit of the deal so far . Reallybenefit does not materialize in a substantive way this year or next year will but when we announced it, the customer said i understand how my vmware franchise will move a hybrid cloud world. The benefit of that is enormous for customers and they said now i know i can continue to invest in vmware and had you will give me the seamless ability to go to the cloud and take advantage of it in ways nobody else can, so we have seen that be a driver since the end of last year. Customers are really getting excited about it. We Just Announced the second version, general availabilitys number two. We will be expanding internationally next year. Is customers say this something i can take advantage of for my businesscritical application, lets go. Talked over the last several months about the big being under the dell under ella and whether figure is really better. Do you believe under the dell umbrella and whether bigger is really better. We described this synergy t