After it set the terms of its ipo. According to the filing, the maker of snapchat is offering 200 million shares 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 evan spiegel and bobby murphy could each take him a check for as much as 256 million. We spoke with David Kirkpatrick and bloomberg tv editor at large cory johnson for more. Cory what becomes of this, i dont know. I mean it is certainly a high valuation. On the positive side, they have got some big Growth Numbers on a yearoveryear basis. We all know these story of who they are reaching and how hard those consumers are to reach, 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 that has negative gross margins, with growth 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 very strange things in the filing, not least of which a very unsteady growth rate. There was one quarter on a sequential basis, the First Quarter of last year, and only 14 growth sequentially, then they turned that around. So what happened there . How does the business work . These are the things that will come up. 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 . They have got to get it priced right. David it is one of the biggest ipos in recent history. 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 it has that seemingly potential to really be a new kind of communication given the passion that young people have developed for it, so i think it does symbolize what some people think is the next phase of technology, driven heavily by video. On the other hand, it also for me symbolizes a kind of distorted financial mindset where they are not giving the shareholders any power whatsoever. The idea that facebook pioneered creating two classes of stock has been taken to an extreme, and now every tech Company Seems to think the founders ought to have complete control, which is what literally they have here, so that is something the industry is watching with ambivalence frankly. Caroline cory, this lack of Voting Rights, it seems to be, according to their own filing of snap, that it was the first u. S. Company to level this, to have absolutely no Voting Rights whatsoever. When going to ipo. Is that why they are being more cautious with the overall price tag . Cory the company is worth less money to shareholders for a number of reasons. The company is worth less to shareholders when it doesnt have profit, when it does not have free cash flow, when the owners of their shares exert their rights. So 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 anyone when a company is run as well as facebook. It is bothersome when youre looking at Companies Like groupon, where you have multiple classes of shares. 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. So we have seen over and over again when companies faceplant, outside investors can come in and say we are the owners of this company and we can make this thing better. That will never ever 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, we are also seeing though facebook again and again trying to copy what snapchat is doing. Is the competition that fierce . Can snapchat change the way in which the world works . David i dont think facebook is primarily copying snapchat. I think there are product features they have borrowed from snap, and that has been acknowledged by instagram and others. So, but, i really think the comparison between the two companies only goes so far. Facebook when it went public had the potential to become a worldaltering service that was used by almost literally everyone. Unless you believe that is true of snapchat, you almost cant justify this kind of valuation, as cory is pointing out, and i frankly 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 and next up for snap is the roadshow, where management will travel to cities including los angeles, san francisco, and new york to pitch the stock to prospective investors. Bloombergs sarah frier and alex barinka report. When deciding whether or not to put money into snap, investors are inevitably going to compare the company to its peers, twitter and facebook. So 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 a business on the backs of highly engaged young users. Alex for now, it is unclear what that would look like outside of the snapchat app. 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 right now losses are higher than sales. Alex sound familiar . Razor thin margins and fluctuating Financial Performance are amazon trademarks. Sarah Ceo 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 or its cloud services. While others have been duds, like its smart phone. Alex the bottom line is that amazon investors have had to be patient, and in the long run, it has really paid off. Sarah the stock is up 43,000 since the company went public in 1997. And in the past 10 years, it is up 2100 . Alex but amazon is a once in a decade consumer company. Snap is a much younger and riskier bet. For now, snap Ceo Evan Spiegel will be asking potential shareholders to trust him. Caroline coming up, verizon is close to a renegotiated deal with yahoo , but a cheaper price after revelations of security breaches. The surprises just how little that discount is. We will break down the tentative deal next. And later this hour, we hear more from the man credited for the payment app beloved by millennials. Venmos ceo joins us. This is bloomberg. Caroline verizon will begin offering unlimited data. The company will charge 80 a month for a single user. That is 10 higher than the plan offered by tmobile. It is an aboutface for the biggest wireless provider in the u. S. , which had steadfastly refused to offer unlimited data plans. Meanwhile, verizon is getting closer to a renegotiated deal for yahoos internet property. The deal would reduce the price of the deal by 250 million. Verizon had balked at the first price after yahoo reported massive data breaches. Now both companies are sharing ongoing legal responsibilities related to the hack. Bloombergs alex sherman joined us with more. Alex yahoo shareholders are going to 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. So yahoo has to walk away from the same 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. Caroline alex, i actually spoke to the ceo of aol, Tim Armstrong, just last week, and it really did seem there was a desire to get their hands on yahoo and its consumers. Lets have a quick listen to what he said last week. Mr. Armstrong i am hopeful the deal closes. I think we have a really high appreciation for yahoo overall. We just need to figure out value changes based on breaches. That is really how simple it is. Caroline the value change has clearly been negotiated. What about the next steps for both . Indeed, where verizon pushes now with yahoo consumers. Alex you just got the reason from Tim Armstrong about why verizon was willing to accept such a low discount there. They want yahoo to feel like they can put yahoo and aol together. Part of why they want yahoo is so that he can move on. We have already reported that there was a conversation between verizons ceo and the Liberty Media ceo potentially about doing a massive deal for charter communications. We dont know if that will happen. It was very preliminary, but we do know that 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 likelihood that that could be a bigger deal than yahoo . On the other side, really, yahoo s Internet Business is only a small fraction of the larger company, so from yahoo s standpoint, they are willing to accept the discounted price to get a buyer for their property, but also so that they can monetize yahoo japan and alibaba, which is really 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 softbank . Is it going to be alibaba . Are they going to trade for a while . 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, but also on apple. We are talking deals there and maybe lack thereof when it comes to apple. Alex right, apple has this enormous cash pile, hundreds of millions of dollars, and tim cook, their ceo, has signaled over the past 1218 month that apple may be willing to do some bigger deals. They have not really done deals in the 40plus it year history of the company. They have really just grown products organically, shying away from m a, but tim cook has made the investment world think they are getting ready to do something big. We have not seen it. My colleague alex webb dug into that to figure out why they have not done this. And part of the reason why they happen is that they are not really structured to do big deals as a company. They dont have a very big m a team. They dont have a history of doing deals. 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 i do think the Investment Community has sort of scratch their heads and said, ok, look, you said you wanted to do deals, but why havent we seen it . Part of it may be 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 are optimistic the next iphone will drive a resurgence in sales and help the Company Services business growth. 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 they have done in recent years that help to prop up that stock price. They are below that peak market cap, but the stock is the highest ever. Caroline market cap closing at 699. 31 billion. It is tentatively so close to 700 billion. Is it just the market rising . Is there is a about the apple is there exuberance about the apple Business Model . Alex 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, and since then the forecast for the present quarter and how that could imply sales will go for the next iphone have kept people very optimistic. Caroline i mean, if i am digging into Analyst Recommendations on apple, one sell, 41 buys. That is on this particular stock. Are we likely to see this stock rally continue . Alex , well that is certainly the implication of those stats, 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 it in particular by the end of the year how compelling the next iphone is, how they attract new customers, particularly asia and china, and that will speak to the attractiveness of apple as a brand. We have seen that the competitors in asia have increasingly succeeded in developing phones which are as good as the iphone or approaching the quality of an iphone, but they dont have the kind of brand cachet that apple has, 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 get bang from their buck from their user base. They say they have they have a one billion pieces of equipment. It is all about the Services Sector as well. 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, 2021, and the average revenue per user is a statistic that people are increasingly keen to look at. It is a highmargin business selling services. Software is infinitely replicable, and that is why apple is pushing into things like apple music, television content, as well as of course 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 at the 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. Both ride hailing giants, uber and ola, are bringing the biggest cities to a standstill. Drivers strike for better pay and working conditions. Demands include a revision to the minimum fares, reducing the commission rate, and limiting the number of caps registered on the apps. Meanwhile, staying with uber, a littleknown option available. The 69 billion company is said to have a program that lets those who work at the company for four years, sell back 10 of uber shares. This according to people familiar with the matter, who said the plan caps buybacks at well below 10 million per employee, but it is meant to give uber employees an incentive to stay given that the company has no ipo insight. 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. Wednesday we spoke with David Solomon about the rising tech deals and ipo activity in the space at the Goldman Sachs 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. And i am a big believer that these things kind of ebb and flow, so we are hopeful to see more of ipo activity this year. But i think when you look at the world that a lot of these Companies Operate in, if they are able to run their businesses, grow, and Access Capital privately and there arent other pressures from shareholders or venture capitalists, these companies are putting off the opportunity to come to the market longer, and the reason they can is because the capital for growth is available privately. So i would expect to see more Companies Come back to the market than we saw last year, but i think that process will be thoughtful, methodical for these companies as they are growing. Caroline we saw plenty of consolidation and m a while cash balances were heavy. We might see more cash, if we see more money come from abroad back into the United States. M a in the tech space is pretty active right now. In fact, we have been involved in 14 m a transactions since the first of the year. That in that six week period is more than we have seen in a comparable sixweek period since the late 1990s. I think there are a number of reasons why that is occurring. One of the things that is definitely happening here is you have very Large Companies that are growing very quickly. Facebook last year grew over 50 on a 28 billion revenue base. Amazon grew 27 on a 130 billion revenue base. As those companies are growing, they are generating cash, generating market cap, but also taking away revenue from some other business, disrupting to some degree, and that puts businesses in a place where they have to think about Strategic Options