First to our lead, uber losses widened in the third quarter. The Ride Hailing Service lost almost 1. 5 billion in the period. It all came to light as shareholders reported tuesday night as part of a formal bid from a softbankled consortium looking to buy a large portion of stock. Softbank to get a nice discount. 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 managing partner at greenbrier and the former head of uber communication 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 48 billion dollars valuation, and see if we can get enough people to bite at that to meet the 14 of outstanding shares of we 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 their shares and do not want to miss out. People might offer them up knowing they can offer them at a higher price later. Emily lame, you have been talking to former employees and 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 be able to exercise and 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 would this shakeup the power structure, eric . Eric government boards are tightened. 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. It is sort of separate, but they have been attached by the board and the is pressure to get this thing done. Emily the employees do not have much of a say in this. This is down to the biggest ubers biggest investors like Travis Kalanick himself, right . There is a misconception that they have a say in what happens next. There are a handful of people , maybe eight entities, a couple employees 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 happening right now behind the scenes . Eric the documents contain Financial Information and risk factors. Probably a mention of a hack 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 knows a ton about uber at this point so they are 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, you are communications expert. What do you make of the news of the big hack . Lane i do not believe in a coincidence and the fact that this leaked out two days before thanksgiving in the middle of the steel is a little too perfect and there is some potential behind it to make investors make a quick deal with softbank. Emily eric, another thing happening, the waymo trial that has been postponed. The judge had very harsh words for uber about another coverup. What happened . Eric they got this letter from a former employee that indicated that uber used encrypted message to an practiced deleted communications so they cannot 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. Now theres a question of whether they would ever be able to find them if uber were using encrypted messaging services. Emily it seems that uber will be dealing with clean up for a long time. What are you doing to find what other skeletons there are in the closet . Lane you are mostly worried about what you dont know, what is coming next. You have to do a topdown review of each division, department, and find out if there are other issues like this that exists . Hopefully, most of them are already exposed, but your job is to deal with these. Rights 15,000 employees now, but there are probably some other things out there that will bubble up over the next couple of months and years and they will have to manage it. Emily remind us about all the open issues london, the other investigations . Eric right now, joe sullivan, the chief security officer, who was pushed out and he is tied to a lot of questions and his team is being looked at closely. I think tony west, the new general counsel will have to look into what the Strategic Services group, the uber internal counterintelligence group, what they surveilled and all that sort of stuff with the physical intelligence and whether there was any hacking against competitors. There are a lot of questions in relationship to the waymo case and other cases. That is a whole set of issues. There are five criminal probes as of october that are open so to list them all is nearly impossible. There are a ton of issues that u. S. Attorneys offices are looking at now to try to figure out if anything was criminal. Emily coming up, we will hear from uber board member Arianna Huffington, her discussion on take on the startups are uturn and 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 repeal Net Neutrality protections. The fcc chair since january has took issue with everyone from Web Companies 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 year was the biggest shopping day ever in the companys history. According to adobe analytics, cyber monday raked in 6. 59 billion in online sales come up , 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 what the biggest prediction for the day in terms of sales. They are expecting 6. 6 billion in sales. That would be the most ever in the u. S. , and as you mentioned, they have seen half of that being achieved. We heard from them earlier in the day when 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 and also the growth of mobile shopping. If you take a look at the terminal here at g 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. This is the overall they said overall 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, everybody thinks they are going to 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 deals like flatscreen televisions, toys, gadgets, and a big push towards appliances and electronics. We heard being say that amazon alone is expected to capture all ecommerce Holiday Spending growth. We heard from gbh insights that said amazon captured 50 of the online spending on black friday. Take a look at another chart i have for you here. It is g btv 8686. What you can see is that while amazon, which is the blue line here is soaring ahead of walmart when it comes to market cap, when you look at sales, this is the bar chart underneath, walmart is doing walmart is continuing to outperform amazon. Emily 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. The growth and momentum is still really with ecommerce, that is why there is a big focus on ecommerce with analysts and investors looking at the industry and among retailers themselves. If you take a look at some of the predictions for the Holiday Season as a whole and not just this weekend, 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 . They are up more towards 20 . 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 they had better integrated deals and promotions for products you can buy both instore and online. Sigh customer could find the same thing at the same price whether they went instore or online. Emily and the day is not yet done. A few more hours to capitalize on those deals. Bloombergs emma chandra for us in new york. Thank you so much. Staying with ecommerce, the increase in Online Transactions 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 in the month of december. And the primary driver on that is that 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. All of that, all of that noise, 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 those who run physical stores and pointofsale systems are aware of this, and they definitely put additional security around this time of year in order to protect their consumers. Emily that was carbon blacks 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. According to people familiar with the matter, the deal would create a bigger international rival to 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. And they used to be fierce rivals in the race to dominate chinas mobile app. Now they are joining forces. This is bloomberg. Emily General Motors finally let its self driving cars 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 pickle. Were going to take a drive today. Emily pickle is here. All right. Lets do this. Emily all right. We made it. We covered 2. 4 miles, drove past 178 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 move . But i am in for around two. I think it will get better next time. Emily right 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 these cars in the most complex environments. That is why we are testing and demonstrating in san francisco. We wanted to play with scale and deployed 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 give people like you an opportunity to experience the car. Were moving quickly. We are heading towards commercial deployment. We are some quarters away from now and we are really excited about the rate of progress. Emily how many quarters . Daniel some quarters, quarters not years. Emily my right experience ride 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 . Daniel so, safety is absolutely the number one priority. Part of the experience you wouldve noticed today is that the car is relatively cautious, but again, that is all about safety, and safety will be the defining metric that will tell us when we are ready to deploy these cars. We are moving quickly in terms of continued improvement. That is why we want to give people an opportunity to experience the cars today. 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 human driver would . Daniel that is what we are aiming for. We understand human level driver 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 away are you from a car without a wheel and pedals . Daniel 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 . Daniel one of the reasons 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 one right now . Daniel 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 . Daniel the first thing is to get to a level of performance we want to have. We see the first appointment in logical first mode of deployment 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 . Daniel our objective is to get this technology deployed in a the Largest Scale 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 do you think you will have . What looks like the most plausible scenario . Daniel 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 . How do you make it look more like just another car on the road . Daniel we are 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 th