Quarter. The right Healing Service lost almost 1. 5 billion in the period. As reported tuesday night as part of a formal bid from a softbankled consortium looking to buy a large portion of stock. Theres a 30 discount to its last private valuation, coming in at 69 billion. We caught up with someone intimately familiar with ubers inner workings, lane castleman, the former head of over in the americas, and eric newcomer. This is the opening salvo from softbank. And its consortium of investors saying, we will pay 33 a share, which translates into that 48 billion dollars valuation, and see if we can get enough people to bite at that to meet the 14 of outstanding shares of he want to acquire. Molly and what is the likelihood of them acquiring that . You know, there is a lot of appetite for liquidity and that is what softbank is counting on. People want to sell and do not want to miss out. People might offer them up knowing they can offer them at a higher price later. Emily you have shares to sell yourself. What are employees talking about . Employees have a lot of confusion going on right now. 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. Everyone is wondering, can i sell . Will i see monetary value from the stock that is been sitting here for such a long time. Emily what do employees feel about a discount like this . It, still, is a lot of money. For each employee, it is a very emotional issue. They need to determine whether or not the lower value will translate to enough income for what they believe the stock is worth. Emily how with a shake up the power structure, eric . Eric government boards are tightened. The 17person board that happens and some of the power gets restricted because of the shares ting 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. Emily the employees do not have much of a say in this. This is down to the biggest likes biggest investors Travis Kalanick himself, right . There is a misconception that they have a say in what happens next. There are a handful of people and mostly investors who have always say of what happens next. We are just along for the ride and we hope it is a good one. Emily eric, what kinds of negotiations are going on behind the scenes . Eric the documents contain Financial Information and risk factors. Of a hack mention that happened, and say, ok, 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. Former employees and other sellers will have to do the same. Emily we also wonder what we dont know. The other skeletons in the closet. Lane, would you make of the hack . F the big lane 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. Emily eric, another thing trialing, the waymo happening now. The judge had very harsh words for uber about another government about another coverup. Eric another employee indicated that uber used encrypted messages and deleted communications to not be found in court later, you know . And that is super important here because google has been trying to turn up the 14,000 files another is a question of whether them ifld able to find , they were using encrypted services. Emily it seems that uber will be dealing with clean up for a long time. What other skeletons are there in the closet . Lane you are mostly worried about what you dont know, what is coming next. You have to do a top down of each division, department, and find out if there are other issues like this that exists . 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. Emily remind us about all the open issues london, the other investigations . , the right now, sullivan chief security officer, who was pushed out and he is tied to a lot of 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. And then whether there was any there are a lot of questions in relationship to the waymo case and others. That is a whole set of issues. There are five criminal probes as of october that are to list them all is nearly impossible. There are a ton of issues that u. S. Attorneys offices are looking at to try to determine if anything was criminal. Emily coming up, we will hear from uber board member Arianna Huffington, her discussion on Sexual Harassment, from Silicon Valley to washington. Plus, how cyber monday sales stacked up this year. We will dig into the numbers. This is bloomberg. Emily the chairman of the fcc is going on the offensive, defending plans to defend Net Neutrality protections. The fcc chair since january has an issue to everyone from what companies to celebrities to lambasted to celebrities who lambasted his plan to dismantle the obama era protection. He took particular aim at twitter saying when it comes to open internet, twitter is part of the problem. The company has a viewpoint and uses that viewpoint to discriminate. Now to cyber monday. Amazon said this was the biggest shopping day ever in the companys history. According to adobe analytics, cyber monday rate in 6. 59 billion in online sales come up 16 from previous years. We spoke to bloombergs emma chandra on monday as the numbers were still rolling in. Emma one of the things you mentioned, Adobe Systems there. They have come out with their prediction. They are expecting 6. 6 billion in sales. That would be the most ever in the u. S. , and as they mention, they have they have seen half of that being achieved. They noted that web traffic was up, and they noted that mobile commerce was winning the day with traffic growing about 21 and accounting for more than 50 of all visits online. That is a trend we have been seeing all year, and for a number of years in terms of the growth of ecommerce in the growth of mobile shopping. If you took if you take a look at the terminal here at btv 1928. Mobile ecommerce is a good 20 of all ecommerce. We also heard from first data, the biggest mobile Payments Company in the u. S. , saying cyber monday has gotten off to a very solid start for ecommerce. Strong and steady growth throughout the morning into the afternoon. They said through the first 14 hours of the day, they said that cyber monday will show some very good year on year growth trends. Emily talk to us about who the likely big winners are, or is it all about amazon . Emma we always talk about amazon, as the Biggest Online company, they think they will be the winners. We know that Traditional Department stores are continuing to promote and offer deals. But really, it is considered that amazon and walmart are the big Online Marketplaces and will be the big winners today competing on deal five flatscreen televisions, toys, gadgets, and a big push towards electronics and appliances. Amazon alone is expected to capture all the murders holiday to capture all ecommerce Holiday Spending growth. Chart iook at another have for you here. It is g btv 8686. What you can see is that while amazon, which is the blue line here, a soaring ahead of walmart when it comes to market cap, when you look at sales, this is the chart underneath, walmart is doing walmart is continuing to outperform amazon. Emma, i was surprised to see that instore sales, physical store sales, still account for 90 of retail purchases. When it comes to ecommerce, there is still a lot of growth to be had. Talk to us about the trend we are seeing when it comes to online versus offline commerce. Emma that is absolutely true. It is always quite surprising to see that ecommerce makes up 10 to 11 of all retail sales. Momentum is still with ecommerce, that is why there is a big focus on ecommerce with the analyst and investors looking at ecommerce. If you take a look at some of the predictions for the Holiday Season as a whole and not just as we can, you can see holiday sales growth as a whole being predicted between 3. 5 and 4. 5 , but if you look at the estimates of ecommerce growth, they are more towards 18 . That is what we are seeing traditional retailers like macys, target, and walmart being ahead of the game for a while, focusing on what they are offering online. One of the things we saw from analysts reporting on black friday, they said what had been very promising this year among the traditional retailers was a had better integrated deals and promotions for products you can buy both instore and online. So customer could find the same thing at the same price whether they went instore or online. Emily in the day is not yet done. Chandra for usa in new york. Thank you so much. Staying with ecommerce the , increase in online action also means an increase risk of cyber attack. In the Fourth Quarter of last year, there was a 20 jump in attempted hacks from november to december. Joining us from boston, patrick. What are you seeing so far this year . Are you seeing a similar type of increase . Patrick the analysis that we did based on the data we collect was done on 2016, and we saw a material increase as you said, 20 increase in the month of december. And so, we anticipate that this year, we will see the same type of increase yearoveryear. Yearoveryear in the month of december. In the primary driver is it provides the attacker, the people trying to make money typically, all of the noise happening, like what you just spoke about in regards to cyber monday, all of that provides great cover for attackers to go and get consumers and get enterprises. Emily as i understand it phishing attacks have been the , most common. Tell us about that. Patrick certainly, phishing attacks are used in a big way and they leverage social engineering. Going back to the Holiday Season, all of us are receiving in our inbox many offers from many retailers, shipping services, holiday cards, etc. And we are trained to open those. We want to click on those links. And an attacker knows that as well as we do, so they leverage that to get us to go to a malicious website, and to drop malicious code on an unknowing consumer or an unknowing employee. Then they are able to make an attack. Emily we spent a lot of time covering the equifax hack earlier this year. Have consumers been more wary this Holiday Season . Are retailers doing anything differently as a result . Patrick i think it cuts both ways for consumers because breaches have been in the news a lot. Equifax and certainly a lot of the ransomware we heard about this year. There is an awareness that goes up. At the same time, the holidays are a hectic time for all of us. In our jobs and also trying to buy presents and do other things at the end of the year. Noise,that, all of that it allows us to put our guard down a bit. And it creates additional risks, for sure. Retailers are smart about this. Retailers recognize this, both online retailers as well as storesho run physical and pointofsale systems are aware of this, and they definitely put additional security around this time of year in order to protect their consumers. Blackshat was carbon ceo patrick morley. A possible movie merger announced this week. The u. S. s number two movie chain Regal Entertainment is in talks with a u. K. World group. The deal would create a bigger international rival the industry leader, amc entertainment. Remember, regal try to find a buyer in 2014, but was unsuccessful. Coming up, General Motors is taking its selfdriving flagship car out of the showroom and onto the street. Just how it fared in real life traffic, next. Rivalsy used to be fears in the race to dominate chinas mobile app. Now they are joining forces. This is bloomberg. Emily General Motors finally let at selfdriving car loose on the street of san francisco. Chevrolet unveiled its autonomous car, powered by technology. We got the chance to take it on a handsfree ride, or should i say it took me on a ride. , we are waiting for a car. The name of our car is pickles. Pickle. Emily pickle is here. All right. Lets do this. Emily all right. We made it. We covered 2. 4 miles, drove past a hundred 78 people, nine bikes and a 148 cars. Emily definitely a little jerky, stopping and starting at times. You could sense the car trying to figure out what people are going to do. Where the kids playing with a ball . Were there construction workers that were not going to mow . But i am in for around two. I think it will get better next time. Emily friday after that ride, i sat down with General Motors to see why they decided to let us ride in a self driving car that is not quite ready for consumer launch just yet. Take a listen. Our objective is to deploy cars in the most complex environments, that is why they are demonstrating in san francisco. We wanted to play with scale and apply with a really high level of safety. That is what we are marching towards. We have been moving at a really fast rate of development. That is why we wanted to get people like you an opportunity to experience the car. Were moving quickly. We are heading towards commercial deployment. We where some quarters away. Emily how many quarters . Some quarters, quarters not years. Emily my right experience was fascinating. A lot of starting and stopping. I understand it is a complex environment. There were a couple of times a try to merge, but there was a car there and we jerked back in. There was a time we pulled up to kids crossing a crosswalk, and you can see the car realizing it was a long line of children, not just one or two. But it got a little confused. How long will it take to smooth over those issues . So, safety is absolutely the number one priority. Experience is that the cars relatively cautious, but again, that is all about safety, and safety will be the defining metric that will tell us when you are ready that will tell us when we are ready to deploy these cars. We are moving quickly in terms of continued improvement. In some number of months, people can get another read on where we are and see the rate of change. Emily how do you decide when youre at a point where this car would make the same decision that a human driver what . That is what we are aiming for. Level driver Human Performance and want to deliver that same level of performance, and better over time. Emily there is still a steering wheel, pedals, a safety driver. How far are you awake my car without a wheel and pedals . It is back to what needs to be true to launch commercially and that is getting the right level of safety performance. As soon as we get to that level, we can pull the driver out of the car and that will afford us an opportunity to rethink what the car might look like. Emily what about affordability . Are they even close to being affordable, even for Fleet Companies . We think a rideshare environment is the logical place to deploy these cars, and the early days when the cars are expensive, we will still have a really compelling business case, still be able to offer rides at a more affordable rate then where human drivers are at. Emily can you give us an idea of how much it costs to make right now . One i could, but im not going to give you a number. [laughter] emily ok. So, what is the strategy to bring these to the market . To get a level of performance we want. We see the first appointment in a shared network in a complex urban environment. A rideshare type model. Emily you have partnered with lyft and made a big investment with lyft and have an agreement with uber to rent them, small number of cars. Whose side are you on . Our objective is to get this technology deployed in a largescale possible with the right level of safety. As we think about how we ultimately do that, we could have one partner, we could have more than one partner. We could potentially have no partners. Emily what you think you will have . What looks like the most plausible scenario . At this point, all options remain open. As we get closer to commercial launch, those plans will crystallize. Emily now, we see the iterations of the various cars here. Looking towards the next iteration, how do you get the equipment smaller and sleeker . Were iterating at an unprecedented pace. You see three generations of a car here, we are working on a fourth generation right now. All of that has happened in less than 18 months. Were going to continue those iterations as we get closer to him through commercial launch and afterwards as well. Emily how critical is the howogy is a mark critical is the technology . We think it is a important part of the equation. We are getting the cost of the sensors down dramatically. We think we can reduce that by 99 from where we are today to where we could be in the relatively near future to get the performance of, and get the reliability up. With that combination of characteristics, we will have a really compelling multiplayer sensor suite. Emily one of the experiences was to see the app, see the objects on the road and across the screen. How did that come together . So, the car is evaluating everything going on around it. And it is making predictions as to what those different characters are going to do. And then it plans its path around that. What you sell is a representation of what the car is seeing and how it is thinking about that environment. Emily is that other technology . that is all internallydeveloped technology. Crews,when it comes to when it comes to cruise, how does it differentiate itself from competitors . We are making sure we we are making sure we control the pieces of the system. We are doing a lot of our own mapping work. Were doing a lot of work on the hardware side. We want to keep iterating the entire system as quickly as we can, and by controlling all the pieces, it enables us to move more quickly. Emily can you give us an update general . Hevy bolt in chevy volt sales have been a record month last month and we feel really good about the trajectory. Emily a year from now, where will gm self driving efforts be . We will be in an interesting position a year from now, and we look forward to keeping you updated. Emily what has been your most interesting experience . It is