1. 8 million undocumented immigrants brought into the u. S. As minors a path to citizenship. The measure was six votes shy of the 60 needed to advance. The bill was crafted by moderate republicans and democrats billing themselves as the common sense coalition. Health Officials Say the flu vaccine is not effectively protecting Older Americans and others against the bug that is causing most illnesses. The cdc said the vaccine is only 36 effective overall in preventing flu illness severe enough to send the patient to the doctors office. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im Alisa Parenti and this is bloomberg. Emily im emily chang and this is bloomberg technology. Coming up, peter thiels Silicon Valley retreat. Why the tech worlds most conservative billionaire and trump supporter is pulling the plug on the bay and setting up shop in l. A. Plus googles new plan to , limit popups. We will weigh in on the new default the defense mechanism on ads launching in chrome and the punishment for repeat offenders. And the ceo of the biggest supplier of Semiconductor Hardware expects the industry to keep booming. We will get perspective from Applied MaterialsGary Dickerson later this hour. But first, to our lead. Billionaire peter thiel is calling it quits in san francisco. According to people familiar with the situation, thiel is relocating personal funds and their 50 member staff to los angeles. According to the wall street journal, the tech worlds bestknown conservative and trump supporter has discussed resigning from the facebook board. Joining us now for more, ellen huet. Of course peter thiel set off a firestorm when he supported President Donald Trump in the first place. There was a big question whether or not he should even remain on the facebook board and a zuckerberg defended him. We will talk about that, but first, what do we know about his move . It sounds like hes moving to l. A. Ff some of his other funds are staying in san francisco. They are already kind of set appear. He bought a house here a few years ago and is said to be just calling it quits. Emily a lot of people in Silicon Valley were not happy about his support of president trump. Is he leaving because he is not wellliked . Why is he doing this . Not according to what hes told some of the people we have talked to. Hes been saying that Silicon Valley is toxic, that there are Economic Conditions here that make it very expensive and just not a good place to start a business anymore. Another incentive is that we have heard he and others have reported he is starting a conservative news network. L. A. Is a pretty good place to start a media company. There are a lot of conservative news organizations based out of there like breitbart, drudge. Emily do we know anymore about his media plans . It still seems pretty early, but he is also looking to buy gawker, which is not necessarily related. He is looking to get into the media game. Emily ellen, the wall street journal also reported he considered resigning from the facebook board and at the least, there was a big tiff between netflix Ceo Reed Hastings and thiel himself about his support for trump. Ellen Reed Hastings had written a letter that said that he thought that because thiel supported trump that he was unfit to serve on the facebook board. There were other tensions. People reported Mark Zuckerberg asked hastings and thiel if they had leaked information. It just seems like there was a lot of friction on the board. Iel mayt know why th have wanted to leave. It could be related to one of his other complaints about Silicon Valley which is that its overrun by groupthink, everyone thinks the same and there really isnt an acceptance of other kinds of thinking and he might have felt that same way about the facebook board. Emily facebook is in an incredibly difficult position. They are under pressure to make dramatic changes. Obviously the accusations that meddling on facebook could have swayed the election. Mark zuckerberg came out when thiel supported donald trump and said, if you believe in diversity, why would we take on somebody who believes in this supports donald trump. Do you think any of this has to do with some of the struggles that facebook is facing right now . Mark the thing about thiel is that he seems to feed off of friction. Our reporting it doesnt seem to , reflect any plans for him to actually leave that board. Its just part of his personality to disagree with people. I think he feels especially like a pariah now after the election and is relocating to l. A. To have some distance. Ill think he will remove himself entirely from the valley scene. He will still be a partner in Founders Fund, which is his big investment vehicle. He will be constantly here talking to investors. Emily what does it mean for Founders Fund . Thiel is a big name there. Ellen it sounds like he will still be involved in the same way, has to have approve the same decisions. Founders fund is his marquee. This is the one people in the valley are most familiar with and think most frequently of when they hear the name peter thiel. Emily houston is this happening, his move to l. A. . Mark he already has a house there so he is essentially moving now. The relocation of the two investment firms is happening in the next few months, i think. Its all pretty imminent. The news network, it remains to be seen when that actually happens. But its definitely something he is thinking about. Emily thank you both. According to the e. U. , facebook and twitter have not done enough to change restrictive user agreements. That is what the European Union is saying calling for stronger , rules to punish companies that flout the law. The statement said, they need to remove terms that curb content, acknowledge and create a way for a user to challenge the removal of content. Facebook needs to clarify limits of liability and explain how and why it will remove such content. Both should allow users to appeal when their accounts are removed. Coming up, google is launching a builtin ad blocker for its chrome web browser. Will it impact their domination in the online ad market . And if you like bloomberg news, check us out on the radio. This is bloomberg. Emily bitcoin continues its comeback. The cryptocurrency hit 10,000 again after a selloff in january send bitcoin plunging from its record highs of almost 20,000. Optimism for cryptocurrencies is increasing as a flood of news on regulatory crackdowns has been replaced with more positive headlines. Popups, autoplay videos with the sound on that or ads that follow you as you scroll on the site, nearly everyone has been annoyed by an ad on a web browser, and now google is making some changes to fix this on its own web browser. The Vice President of Google Chrome had this to say in a blog post. It is clear that annoying ads degrade what we love about the web. Starting february 15, chrome will stop all ads on sites that have obstructive ads. For more i want to bring in the ceo of source point and the former head of google marketplace. What is your reaction to this . I think theyre coming from a good place and people are really looking at google to clean up the web. That being said, it is relatively heavyhanded and its making it more difficult for publishers to drive revenues in order to keep their business sustainable. Many publishers are in a bad state in it is just getting harder. Emily from the user perspective, though, these pop up ads are a pain and it is hard to get rid of them. It certainly is and advertising has gotten very aggressive. The real future of online publishing is asking for user choice. Emily who would say, yes, i want a popup . Say, i amwould happily going to consume a popup in order to be able to consume bloomberg news. Theres only very few people that can drive subscription revenues, so there needs to be that idea of free in terms of what is the value exchange. Emily what about other ad formats instead . Theres plenty of other options, arent there . There certainly are other options. That being said, beauty is in the eye of the boulder. Google is sort of almost singlehandedly painting a brush of where these particular ad formats are bad. There may be plenty of instances where they are not bad. Emily how does it compare to policies on other web browsers . Mozilla in private mode takes out all the advertising, others take out all the advertising. The largest browser in asia also takes all of the advertising out. Emily what about safari . Safari has things like itp, intelligent tracking prevention. In a stealth mode, they take away advertising. Everyone is trying to find the balance between being harsh and keeping users safe. Emily talk to me about it from the publishers perspective. You have something you want to advertise. What are publishers deciding between behind the scenes at one and what are the costs and benefits . The benefit from a publisher perspective is revenue. They have to choose the User Experience that will monetize that particular user while at the same time, keep them coming back. That is the balance that publishers have to weigh every day, every article, every page view. Emily unilever wants to make what do you make of unilever . Unilever wants to make sure they are in well lit environments. They want credibility to their products. They want to have those clear programs and forms of articles it just makes sense for them. Emily is it realistic, or just a threat . Of course, this is where billions and billions of seat businesses are. One ceo yesterday was talking about setting those policies and procedures and getting people into reviewing as much content as possible. There are trying to do a good job. It is not realistic to have every piece of content reviewed by a human. We have to do some combination of machines as well as humans in order to review that content. Do you think of these right now it is just a threat but this kind of concern of the content on facebook or youtube will actually hit the bottom line of facebook . Ben sure, until they get systems and processes and procedures clearly in place, or and may be a small hit. But they will work hard in making these good environments for advertisers. Emily where do you see Online Advertising going . What are the trends that will surprise us ben surprises . Ben i think you will see a resurgence in Subscription Services. You will also see choice and transparency in the transactions that happened between content creators and consumers and we will see a wide variety of unique pieces of technology that will offer users to be in control of their data, be in control of their attention and actually compensate publishers for that content in a much more innovative way. Emily what is coming in terms of the hierarchy of these platforms . Some have suggested that amazon could actually surpass facebook. Google is clearly in the league in the lead right now. But amazon could decide they could surpass facebook as Online Advertising. And advertising juggernaut. But they are also superstrong in Subscription Services. You yourself probably subscribe to prime, its not only the next day shipping service, but you can watch tons of content and you can read tons of content included in that subscription. So they are really out ahead of you. I think you will see more Subscription Services both with micropayments as well as macro payments into the future and it will balance advertising and subscription in terms of making publishing sustainable longterm. Emily thanks for stopping by. Cisco shares jumping out to a 17 year high on thursday after a bullish forecast. Cisco is promising increases in revenue after sales rose for the first time in eight quarters to almost 12 billion. The company is reducing its reliance on the shrinking market for highpriced hardware and pivoting to software and services. Coming up, we speak to the ceo of Hotel Tonight. What they are doing to stay out of competition in the battle for your bookings, next. And we are Live Streaming on twitter, check us out. This is bloomberg. Emily the fcc chair said to be the subject of an internal probe that is investigating whether or not he acted improperly to help Sinclair Broadcasting purchased purchase a tribute station. The push for policy changes to benefit the marylandbased broadcaster. Sinclair is trying to buy 42 tribune stations in 32 markets. Its being reviewed by the fcc and boj. An sec spokesman called the accusation absurd. In the increasingly crowded marketplace for online Hotel Booking, one company was an early entrant in the space. Hotel tonight, a lastminute Hotel Booking app. Alex barinka caught up with the ceo at the tech conference to get the latest on how they are continuing to rise above the competition. Take a listen. We are different because we are mobile only and we initially focused on the mobile only use case of lastminute rooms. That is how we got in the marketing got a foothold in got a lot of Customers Using us. We have expanded since then to take on more and more cases. Our customers are now using us for all of their Hotel Booking. They can book way far in advance. We make it so easy to book at the last minute and give you the best deals because we use mobile to target the deals at the right customers. I remember a few months back i was interviewing the ceo of travelocity and it struck me how similar a lot of these companies are. I hear you on the mobile differentiation and i hear you on the lastminute booking, but it seems like a very crowded space. As you continue to mature how do , you take market share from the bookings. Com, travelocity, hotels. Com, as you go forward . To focus onegy is product execution in Product Innovation in bringing something new to customers every time they open the app, so it is better and better every day. A lot of small improvements and big improvements. Like our loyalty and Perks Program that we revamped at the end of last year. Thats how we are going to win. When you look at the incumbents and the desktop players, most of their r d efforts have gone into improving the Conversion Rate of their marketing and marketing efficiency. But it does not slow down to greatting in providing a experience for the customer. And that is where we are going to win. When you talk about expanding across all of customer booking needs, bookings come to mind. The likes of airbnb, theyve been targeting business customers as well. They spend more. What are you doing to grab that Business Share . Is it just because consumers love your site . How is that changing customer appetite going . We did not know what kind of use case we would get. But we found out of the gate a Solid Product market fit with Business Travelers. They travel at the last minute, they like to save money and time. You can book a hotel in just 10 seconds and know youre going to have a great place to stay. We will continue to invest in that and tools to make it easier for Business Travelers to book, share their itineraries with coworkers. You will see a lot of new things coming with us pretty soon. Does airbnb keep you up at night . No i love airbnb. , its a very complementary product and business to us. When you look at them, its going to be a longer length of stay further in advance. , for us, its a lot of Business Travel and weekend getaways at the last minute. It is a big market there are , going to be many winners in this market. We will be one of the winners. Geographically, where have you had the most success and what is next for Hotel Tonight . We are operational in 30 countries. The u. S. Is where we started and is our largest market, followed by europe, which is growing nicely for us. We are also in latin america. Mexico is one of our fastestgrowing countries and we are putting resources into that. When you think of where you are in terms of business maturity, in terms of your capital needs, you say you are investing in r d. Are you going to need more cash on the Balance Sheet . Where are you in the stage of the Hotel Tonight lifecycle . We are profitable as a business. We are fortunate to have some Great Investors support us and continue to support us. Right now it is about focusing on deploying that capital into delighting the customer and making a unique, differentiated and superior product experience. Will mobile be the heart and home of Hotel Tonight . It will mobile allows us to , have the best customer experience. We can have a onetoone conversation with our customers. We can provide eight second bookings. We can use all the Technology Going into the mobile platforms. Because we are only mobile, we can do locationbased targeting. Our unique geo rates that other guys on desktops can do. So you are throwing out a bunch of things that i know a lot of your competitors would be jealous of. Being a player on mobile, profitability. You yourself have sold two companies in the past. What is next for Hotel Tonight . Do you want to stay independent . Do you think someone like google could come along and gobble you up for their portfolio . Timedont spend much thinking about that. I am focused on providing a great e