More on his life and story at oracle. Making the rounds a day after telling georgetown students and vanek faculty wont Police Political speech, Mark Zuckerberg made the rounds. Rst or top story bloomberg has learned that softpa bank is putting together a financial play for wework. It may value it below 8 billion. That is far blow. It has been considering plans from different areas. Joining me to discuss is a partner from manhattan ventors, and Sarah Mcbride who is who has been tireless on all things softbank. What about this . It is even lower than expected, around 8 billion. That come pairs to around 47 billion at the start of the year. So a huge drop there in under 12 months. Andrea, if you take a look at 8 billion, are we getting closer to fair value . I think we are. Overall, something i like to onsider, being in a late venture espys, what will carry over to retail . Wework has a real business, but there is still time. Valuation billion something that could work with a retail i. P. O. . I think so. In that sense, wework is a strong player, but there is a lot of cleanup that has to be done. I think it gets a lot closer to fair value. Sarah, with this deal with bost bank, what do we know about the ferms . Does softbank want control or not . Well, everything is still in flux, but part of what is under discussion is preferred shares with nonvoting rights. Basically at this point anything is possible. They still only have two board seats, so things could go in any direction right now. You have been nodding your head . What do you make of that . Majority owns shares and seats on the board . As you take a look at we weapon work and other companies, how important is that in terms of getting this company to the finish line . Think they know where they can come in and save the business. But i dont think they are the type of firm to step up and say we have the experience to take this business to the next level. With softbanks power they are going to look to identify the Leadership Team. There was a dueling offer . Talk about that . Putting n chase is together a group of investors. They are still shopping that around among potential investors. The advantage for wework in a debt deal is they wouldnt have to give up as much control. T wouldnt be diluted. Softbanks terms would be. The thing with the Jpmorgan Chase package, it would take so much longer to pull together. Softbank could pull the money together very quickly. That is the advantage there. Shear chart that i am showing to our bloomberg terminal audience. We know the story. The bonds are trading down to about 84 cents on the dollar. Yet that is a far cry from 30 cents to 40 cents that you normally see. When you look at the jpmorgan deal and the bonds, this 15 coupon, i know we dont know much about the price or kjeldsen, is there a sense that there is a general market appetite for a big highyield deal like that . Yeah, i would say so. They have found potential investors. Nothing is firm yet. But just the notion of a possible deal, then weworks existing bonds were higher this week. They had been trading lower. If you price something right, you can always find a market for it. What are your takes on the jpmorgan competing deal . I think overall as we have seen in the real estate market, bondholders really do enjoy a strong real estate play. What we have to keep in mind is with bondholders, they are looking for steady income. With weworks business, if they can turn it around on a longterm strategy play, the bond would actually perform very well. But that is it taking the bullish perspective. A lot has to happen between now and that turnaround. And sarah mentioneded the jpmorgan deal would take longer and the softbank deal could get done quickly. How quickly does this company need cash, and if they get it, how long can it last them . If they minimize a lot of the overhead with sales and marketing, the business could sustain a little longer than we were all expecting. However, they do need about 3 billion in cash going to q1 of next were. Looking at softbanks side, how much of their reputation is at stake here . Meme wonder how much this will affect the vision fund. But people forget of the more than 10 billion that softbank has invested in wework, only about 4 million comes from the vision funneled. Some people exaggerate the fact it would have on the vision fund. But overall, softbank has invested 10 billion. That is a lot of cash going into a company that has seemingly careened out of control. I think it is appropriate that they are stepping up with a plan for how to try to turn things around. They have a slate of executives that they think might be able to help run the company. Its a difficult situation for them now, but they still potentially could turn things around. And what is the significance that it is softbank and not the vision fund that is stepping in here . Well, with that information, it allows the vision fund to prepare for the second fundraise they are ramping up for. I think the plans for that were a little premature. They wanted to see the returns on the portfolio. But with softbank stepping forward, it alleviates some of that burden and stress on the Vehicles Fund in particular. We were also getting news that the creative chief of wework, ad kimmel, is said to be resigned. At what point does it become hard for this company to retain talent if everyone keeps leaving . Well, it is going to be very difficult for them to retain talent. But again, it offers an opportunity for them to reinvent a little bit. Here is our plan for turning things around. They can turn that to an advantage as well. I think thisth is the story that keeps on going. Thank you both. That want andrea, and sarah melbourne. Thank you both for joining me. Now i want to go over to mark hurd. He was the chief executive officer of three Major Technology companies, include, oracle, and he has passed away. Oracle announced last month that hurd was taking a leave of absence for unspecified Health Related reasons. Chairman Larry Ellison said hurd was a close and irreplaceable friend and a brilliant leader. Mark hurd was 62. For more i want to bring in brad stone to talk about hurds legacy. What is hurd going to be remembered for . Well, taylor, mark hurd has really been just an extremely visible productive c. E. O. In sal con valley really for as long as i can remember, but particularly starting in 2005 at Hewlett Packard where he expanded the company through acquisitions. He made it a lot smaller through layoffs and relentless cost cutting and a tenure that was marked by some controversy. If you rethe pretexting scandal where they were trying to identify the source of leaks, and he left around a hayes of controversies around expense account improprieties. I think the legacy is really one in helping to sateri oracle from this traditional Business Model of selling licensed soft war to a cloudbased company that now has to compete with the likes of amazon. Hurd was instrumental in taking the company from the legacy business into the newer cloud model. Are they set to be able to do that in his absence . I think so, but he was important. One, he articulated the need to move to the cloud early. In the early 2000s, Larry Ellison called Cloud Computing a fad. Mark cam in and put a flag in thed ground and driven the transition. He has been the pickup face of oracle, and that is where they are going to struggle to replace him. The coc. E. O. Really operates in the background. Larry elston, the chairman and the visionary, we only see him a couple of times a year. Mark was the guy talking to customers, talking to us in the media. He was delivering the key notes at oracle world and i think they are going to struggle to find a rereplacement there. Talk to me about what oracle does here. In that september earnings statement, they highlighted they have leadership that is qualified to take this company into the next stages. Ow prepared are there, given stafford katz and larry ellis who is there. How prepared are there, and frankly, do we know anymore about oracles Leadership TeamGoing Forward . I am probably not the person to talk about that. I have heard them talk about deputies as pokes replacements. They have a recent record of suds. They hit a stock high earlier this year. The stock is up 20 . But there are some existential questions. Amazon made a big fuss last week when they announce they moved the consumer business from oracle into their own cloud services. They have some vocal rivals that are creating stir in the marketplace. Where hurd was good was he could give as good as he got. Now they need a chief general on this battlefield that has become Cloud Computing. Bloomberg Senior Executive editor brad stone. Thank you for joining me. We will have more when we come back. Lets get a check on the top analyst tech calls. Microsoft, the price because raised to 160 from 153, and rbc capital markets, which called the stock one of the most likely outperformers over a multiyear period. Shares fell friday. Bank of america upgrade the stock to a buy from neutral on stronger monday tie zation trends. They have higher confidential for snap average revenue per user. The Company ReportsQuarterly Results tuesday. And shares of tesla fell friday after the analyst lowered the price target to 372 from 386, saying it reflected a toning down of the optimism that was reflected in original near term estimates. The Analysts Expect a 2019 loss per share of 2. 94. Though were your top tech calls. Now now ant financial, the finance giant expect Credit Demand among shawl and mid sighs enterprises to remain strong despite a decelerating economy. We sat down with an exclusive der view. Started by asking if deal making was in the companys future in competition. I think our philosophy is very straight forward. Strategic. Doing the Portfolio Company is in ine with our overall strategy. That is not our focus. We are really focusing on strategy management, number one. Secondly, we are focusing on anagement. We need to finish by closing together. One of your key partners is pay tm, are you looking at increasing your investment there . They are looking to raise maybe 2 billion. I think ptm is doing well. I am happy to to be a partner of them. If you remember, back to about five years ago when i first looked at the company, i really liked it. The founder and c. E. O. Of the company, the first time i am looking at a corks actually i dont like the business of the company. Liked him because he is so energetic, very passionate with a strong vision. Overall i think india, the whole economy also developing very healthy and fast. Ptm is in a good position to capitalize. When do you plan to i. P. O. Ant financial . We just did a new run. The company is very healthy in terms of cash flows. We are happy with our overall the business momentum. For dont hatch any plans Capital Raising or for i. P. O. For now. When we have the plan, i will let you know. Would it be realistic to think that you would be ready to pull the trigger on an i. P. O. In 2020 . We dont have a plan right now. When the time comes, it comes, you know. We will let you know. But i think one thing to add is is an ultimate is not the ultimate goal of the company. It is just one stage of the company. That what eric jing. Videogame stocks traded lower on monday. Lower Software Sales for consoles and hand held devices fell 12 in the last year. The analyst said the deadline was due to the launch of sonys spiderman a year ago. That was the fast eling selling First Party Playstation title in history. Comimg up. Mark zuckerberg is still out there pushing back against facebooks critics. This time he took to fox news saying there was no antisocial bias at the network. And Bloomberg Technology is Live Streaming on twitter. Check you out. And follow our global breaking news network at tick to be. This is bloomberg. Facebook c. E. O. Mark zuckerberg was did having his social network, this time on fox news. It was the same set of talking points he offered at georgetown the day before. He also continued to make the case for why facebook is involved with political advertisements. Should we be in political adams at all or something we should block completely . You know what . From a business perspective, the controversy that all this creates is clearly not worth the very small at of our business that is paced on political adams. It is not anywhere near a big part of what we do. But the reason why i have stood up for this. Adams can be an important part of voice. Joining me to discuss, the man who hitly wrote the book on facebook. It is David Kirkpatrick in new york. Give me your thoughts to what you heard there about facebook being in or out of political adams . Well, you know, one of the things that zuckerberg kept saying both in the fox interview and in his speech at georgetown yesterday was that in a democracy the people should decide. The users of facebook, the people, should decide a they think is true and not true and they should not be sort of treated condescendingly with the company deciding for them. But in reality, the way that people, citizens, in a democracy decide what they want is by voting for politicians, who then set the laws. The thing that i feel was most missing from zuckerbergs talk and interview is the recognition that he has to work with government in order to figure out what the best way to handle these things is. He kept saying i decided, i believe. It doesnt really matter. One man shouldnt be making these decisions. He also said they shouldnt be in the political ad business. It is a smart portion of revenue and they dont need it for business reasons. Then why are they . Etched it it needs to be because it is empowering for the community to have playings at all levels from the school board to the president having the ability to be on facebook. I dont disagree with that. There are many points he makes about how empowering social media and facebook in particular have been for ordinary people and politicians business, l, small et cetera that are right. Everyone at all helves has more of a voice than ever. But i dont think he is fully owning up to several things. One of them is the degree to which the only way this can properly be resolved even on an ongoing basis where it is continually being refined, is if government is at the table along with the companies. And you know who else is at the table, and it is china. He talked a lot about china and facebook needing to be able to take on them or else we will also lose out. React. Take a listen to what he had to say. China is building its own internet focus the on very different values and is now exporting their vision of the internet to other countries. Until eventually, the internet has been defined by american platforms with strong Free Expression values. But there is no guarantee that these values win mcmurry out. Is that a valid argument or is he spust speaking his book . It is a valid argue, and it is also very opportunistic for him to be making it. Facebook came this close to launching in china a number of years ago. I think it was in 2011 when the Chinese Government decided after arab spring they were going to allow it. If facebook had launched in china in partnership with a local player, they would have sacrificed a lot of their supposedly absolute values that he is now defending. He will do what is useful for his business. One of the things he is leaving out of all of these discussings is the extraordinary profits he is taking from the entire ecosystem in the midst of all these controversies. It is than walkoff the reasons why so many people are so suspicious with him and yst reputation is mud both among informed since and politicians. Quickly here, about 209 seconds. Breaking up to say big tech doesnt solve the problem. I am not a proponent of breaking up big tex. I am in the ruling it out as an idea, but doipt think it is the solution. Good ored what, government has to get more informed and figure out what to do with the platforms by figuring out what to do with them. David, you will be sticking with me. Coming up, we continue it talk facebook and our look back at our week could. We will look at plans with cryptocurrency and libra. That is next. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Taylor this is Bloomberg Technology. Im taylor riggs. Now to our weekly roundup of the top tech stories in tech, starting with wework. As we told you earlier, the startup once valued at 47 billion now looks like it is close to about 8 billion or less. This comes as another executive has jumped ship. To discuss in new york, David Kirkpatrick, and max chafkin. Max, 8 billion closer to fair value . Max fair value is whatever the end up paying for it. I think the question people should be asking themselves is why anyone was able to talk themselves into thinking it was worth 47 billion . Especially when you have a drop like this when not a whole lot changed. What is crazy to me is a lot of the things investors have sort of freaked out about retroactively where things out in the open, things in the s1. It was all there. You have to wonder was softbank kidding itself in an effort to raise money for its subsequent funds and was the rest of weworks kind of cap table going along for the ride . Taylor david, do you think 8 billion is still too much . David it might be. I think there is a real question whether wework will be a growing concern in a year, two years. I know people who have offices in wework, Significant Companies making contingency plans in case they come to work one day and find the door locked. I dont see this compa