First to our lead. Potential investors are scrutinizing snap financials. According to the filing, the maker of snapchat is offering 200 million shares. That is for 14 to 16 each. At the top end of the range, snap would have a market value of 18. 5 billion. That means the snap cofounders could each take him a check for as much as 256 million. We spoke with David Kirkpatrick and editor at large cory johnson for more. Cory what becomes of this, i dont know. It is a high valuation. On the positive side, they have big Growth Numbers on a yearoveryear basis. We all know these story of who they are reaching and how valuable they are to advertisers. But this is an extraordinarily high price for any company of any kind with any kind of growth metrics, but for one with negative gross margins, with growth that is slowing so much, where there are Big Questions raised, this roadshow will be an interesting one because theres excitement around the deal but , there are some strange things in the filing, not least of which a very unsteady growth rate. The First Quarter of last year had only 14 growth sequentially, then they turned that around. These of the things that will how does this business work . These are the things that will come up on the roadshow. Caroline david what do you , think . How much is riding on snap and its founders and how much they get to take home, but the rest of the Tech Community on how successful is this ipo . David i think the industry is watching this with fascination. This company does rise above the rest right now in that it is at least sometimes, and more or less legitimately compared, to Companies Like facebook, google, and twitter. Obviously, it is way smaller, but has that seemingly potential to be an new kind of communication given the passion that young people have developed for it, so it does symbolize what some people think is the next phase of technology, driven heavily by video. On the other hand, it symbolizes a kind of distorted financial mindset where they are not giving shareholders power. The idea that facebook pioneered creating two classes of stock has been taken to an extreme, every tech company thinking the founders ought to have complete control, which is what they have here. That is something the industry is watching with ambivalence. Caroline cory, this lack of Voting Rights, it seems to be according to the filing that it was the first u. S. Company to level this and have no Voting Rights whatsoever. Is that why they are being more cautious with the overall they with the overall price tag . Cory the company is worth less money to shareholders for a number of reasons. When it doesnt have profit, free cash flow, when the owners of their shares exert the ir rights. There are a lot of things snapchat is doing that will give it a lower valuation, but whether it is beyond the pale, it is hard to say. Not having Voting Rights does not bother me any when a company is run as well as facebook. It is bothersome when youre looking at Companies Like groupon. It doesnt bother with berkshire hathaway, but it would have bothered yahoo when investors had to come in and save that company from its self, which is what happened. We see that over and over again when companies faceplant, outside investors can say we are the owners of this company and we can make this thing better. That will never happen for snapchat. Caroline david, you know the inner workings of facebook and Mark Zuckerberg well. Even as we see perhaps snap take a leaf out of Mark Zuckerbergs book in terms of voter control, youre seeing facebook copying again and again what snapchat is doing. Can snapchat change the way in which the world works . David i dont think facebook is primarily copping snapchat. Copying snapchat. There are features they have snap, and that has been acknowledged by instagram and others. The comparison between the two companies only goes so far. Facebook when it went public had the potential to become a world altering service that was used by almost literally everyone. Unless you believe that is true of snapchat, you almost cant justify this kind of valuation, cory is pointing out, and i dont think you can justify that kind of talk about snapchat. It does not have in my opinion in its current design the potential appeal to our parents, children of all ages, ordinary working people. It just doesnt have that kind of capability, so it is not a true comparison. Caroline next up for snap is the roadshow, where management will travel to los angeles, san francisco, and new york to pitch the stock. Bloombergs sarah frier and alex barinka report. When deciding whether or not to put money into snap, investors are going to compare the company to its peers, twitter and facebook. Which is snap hoping you will equate them to . Neither. My sources say snap executives want you to think of them like amazon. Seem strange . There is a method to the madness. Sarah because snape is a secretive company, investors will have to decide whether they trust management to build they business. Alex for now, it is unclear what that will look like. Sarah while the Company Grows and expands, management has told bankers that Financial Performance could be lumpy. And dont forget that snaps revenue model is only a couple of years old, and losses are higher than sales. Alex sound familiar . Those are amazon trademarks. Sarah jeff bezos has alarmed investors with his massive spending to get into new markets. So far, his efforts have been successful, like amazons ecommerce platform. Duds,others have been like its smart phone. Alex the bottom line is that amazon investors have had to be patient, and in the long run, it has paid off. Sarah the stock is up 43,000 since the company went public in 1997. In the past 10 years, it is up 2100 . Alex snap is a much younger and riskier bet. For now, evan spiegel will be asking potential shareholders to trust him. Caroline coming up, verizon is close to a renegotiated deal with yahoo after security breaches. The surprises just how little that discount is. We will break down the tentative deal next. Later this hour, we hear more from the man credited for the payment app loved by millennials. Venmos ceo joins us. This is bloomberg. Caroline verizon will begin offering unlimited data, charging 80 a month for a 18 a month for a single user. It is an aboutface for the biggest wireless provider in the u. S. , which has steadfastly refused to offer unlimited plans. Verizon is getting closer to a renegotiated deal for yahoo . Verizon had balked at the first price after massive data breaches. Now both companies are sharing ongoing legal responsibilities related to the hack. Bloombergs alex sherman joined us for more. Alex yahoo shareholders will walk away from this fairly happy because there was a risk that verizon might walk away from the entire deal altogether. And the game that has been going on the past few months has really been who has more to lose here . I think yahoo has more to lose. If yahoo did not get the sale done, they would probably have to rerun that sales option that people may remember took months and months and months, and they probably would not have gotten as high of a price. Verizon was the obvious buyer here with the most synergies to offer. Given everything we know, we are happy with only a discount of 250 million. That number may change, could go up a little bit, but its going to be in that ballpark from what we hear. Alex, i actually spoke to the ceo of aol, Tim Armstrong, and there seemed there was a desire to get their hands on yahoo . Lets have a quick listen to what he said last week. Mr. Armstrong i am hopeful the deal closes. We have a high appreciation for yahoo , we just need to figure out value changes based on breaches. That is really how sinful it is. Caroline the value change has clearly been negotiated. What about the next steps for both . Indeed, where verizon pushes now. Alex you just got the reason why Tim Armstrong about verizon was willing to accept such a deal. They feel like they can put yahoo and aol together. We have already reported that there was a conversation between verizons ceo and the Liberty Media ceo about a massive deal for charter communications. We dont know if that will happen, but verizon is looking at 1012 acquisitions after yahoo , so getting this deal done allows them to move on to what ever is next. You have to think there is a high to likelihood that could be a bigger deal. On the other side, really, Internet Business is only a larger fraction of the company, so from yahoo s standpoint, they are willing to accept the discounted price to get a buyer for their property, but so they can monetize yahoo japan and alibaba, which is the crux of yahoo , and that is what they need to figure out. Is someone going to buy this stuff from them . Is it going to be alibaba . Are they going to trade this stuff . All those are still outstanding questions. Caroline alex you are a busy , man. Therefore i want to make the , most of you while you are on the show. Also on apple, we are talking deals there and maybe lack there of when it comes to apple. Alex right, apple has this enormous cash pile, hundreds of millions of dollars, and tim cook has signaled over the past 1218 month that apple may be willing to do some bigger deals. They have not really done deals over the 40plus history of the 40plus it year history of the company. They have really grown products organically, shying away from m a, but tim cook promised they will do something big. We have not seen it. My colleague alex webb dug into that to figure out why they have not done this. They are not really structured to do big deals as a company. They dont have a big m a team. They dont like working with investment bankers, so the mechanics of being able to do a deal is not easily there for them. Not to say they wont, but the investing community has scratched their heads and set, look you saidk, you wanted to do deals, but why havent we seen it . Maybe their culture is not structured to do this, unlike at t and time warner. They have spent hundreds of billions of dollars on acquisitions. Caroline bloombergs alex sherman there. Meantime, this week, apple hit a record high, investors optimistic the next iphone will drive a resurgence in sales. Bloomberg Technology Reporter alex webb joined us to lay out what is behind the stock surge. Alex as much as the stock is at a record high, they arent not at the record market capitalization because of the buybacks in recent years. They are below that peak market cap, but the stock is the highest ever. Caroline it is tentatively so close to 700 billion. Is it just the market rising . Is there is a about the apple Business Model . It did take a boost off the earnings call, and the expectations for the next iphone sales, but since then, it has taken a spill two weeks ago, then the forecast for the present quarter and how that could imply sales will go for the next iphone have kept people optimistic. Carolyn i mean, if i am digging into Analyst Recommendations on apple, one sell, 41 buys. Are we likely to see the rally continue . That could be the implication of this fax, yes. But we are getting close to the target price. It is not vastly above where it is now. I think 142 is the average on the system, so it will be interesting to see how compelling the next iphone is, how they attract new customers in asia and china, and that will speak to the attractiveness of apple as a brand. We have seen competitors in asia have developed phones which are as good as the iphone or approaching the quality of an iphone, but they dont have the brand cachet, and that remains a push it is the extent to which that remains a differentiator, that shininess apple has about it and its attractiveness as a brand. Caroline and how much they can from their buck they can get from their user base. They say they have a one billion pieces of equipment. Alex that is the narrative that the executive team is trying to push. They say they intend to double Services Revenue over the next four years, and the average revenue per user is a statistic that people are keen to look at. It is a highmargin business selling services. It is infinitely replicable, apple music, television content, as well as the app store, which sells a huge number of products every year and apple gets a cut of that. Caroline that was bloombergs alex webb. Coming up, wall street meets silicon valley, and that Goldman Sachs technology conference, highlights from our interview with David Solomon, next. This is bloomberg. Caroline a story we are watching, commuters in india face major travel disruptions this week. Uber and another ride hailing bringing the biggest cities to a standstill. Drivers strike for better pay and working conditions. Meanwhile, staying with uber, a littleknown option available. It is said to have a program that lets those who work at the company for four years, sell back 10 of uber shares. They said the plan caps buybacks at 10 million per employee, but it is meant to give uber in place an incentive to stay. The company has no ipo inside. This week, we were live from the Goldman Sachs technology and internet conference in san francisco, where investors and bankers converge with tech titans. Deals are ushering in an aggressive era of m a. We spoke with David Solomon about the rising tech deals and activity in the space at the conference. There is certainly a lot of capital available for companies that are growing. A lot of that capital is available privately away from the public market. Last year certainly was a historically low year in terms of ipo activity. I believe these things ebb and flow, so we are hopeful to see more of ipo activity this year. If they are able to run their businesses, grow, and Access Capital privately and there arent other pressures, these companies are putting off the opportunity to come to the market longer, and the reason they can is because of capital available privately. I would expect to see Companies Come back to the market, but that process will be thoughtful, methodical for these companies. Caroline we saw plenty of consolidation and m a while cash balances were heavy. We might see more cash, if we see money brought back into the United States. M a in the tech space is active right now. We have been involved in 14 m a transactions since the first of the year. That is more than we have seen and a comparable sixweek period since the late 1990s. I think there are a number of reasons why that is occurring. One thing that is happening is you have very Large Companies that are growing quickly. Facebook last year grew over 50 on a 28 billion revenue base. Amazon grew 27 on a 130 billion revenue base. They are taking revenues away from other businesses, disrupting, and that puts businesses in a place where they have to think about Strategic Options carefully. We will see consolidation in the tech space, and activity levels will continue to be high this year if the environment stays the way it is now. It will be a relatively good m a year. Caroline lets talk about fintec. Lloyd blankfein said Goldman Sachs is a technology company. Are you hiring more technologists and engineers than bankers . We clearly are using technology and our business more than we would 15 years ago. It is easy to go look at the equity trading business 15 years ago. It was voice to voice, person to person, and now there is a fast system of connectivity and people trade equities electronically, so that is a massive shift in the people and systems you need. That is going on in most aspects of the business. The firm adapt to those environments, and we have a diverse workforce, and we obviously need different talent. We have increased the number of stem graduates because there is more engineering work, coding work, and we look to make Technology Investment that can lever our ability to serve our clients, so we need more of those people. It is a Diverse Group of people that puts us in the best position to service our clients. As we discussed, the quality of our people and ability to attract great people to differentiate the firm is important to our overall business. Caroline does your culture have to change to attract these people in . Do they want more parental leave, holiday . I dont think it is fundamentally different again people today coming into the workforce want to work for a Great Organization with terrific people that serves clients, has a business purpose, gives them the opportunity to learn, grow, so we have been focused on cleaning the best Work Environment for longterm growth, positive experience, economic reward. People believe if we do that, it is good for shareholders, clients, and a positive cycle. Caroline you got into digital lending, how is growth there . That is a new business and platform we started. We think we are in an interesting position given our Balance Sheet and funding, but without the Legacy History that other commercial banking competitors have come a we are in a position where we can build a tailor Technology Product to clients, a very targeted universe we are going after, but we think we have an interesting product and are excited about the growth opportunity. It is new. But so far, it is off to a good start. Caroline my conversation with Goldman Sachs cochief opperating officer David Solomon. Still to come, general Keith Alexander joins us to discuss the new administrations approach to cybersecurity, next. If you like bloomberg news, check us out on the radi