New National Security adviser after Michael Flynn resigned over line about his ties with russia. Donald trump has selected the r. Nant army general h. Mcmaster. Easees say china might Foreign Ownership limits on life insurance, potentially removing a drag on the business of local companies. The government could raise longstanding 50 on the local joint venture. Global news 24 hours a day, powered by 2600 journalists and analysts in more than 120 countries around the world. You are watching bloomberg. Caroline im Caroline Hyde and this is the best of Bloomberg Technology, where we bring you the top interviews. Coming up, snap pitching a stop to investors that comes with less shareholder control than any social Media Company before it. We will dig into the details. New deal for yahoo . We preview the offer that could finally and its long dance with verizon. And apple reaching new highs, what is behind the search and can it sustain . First, to our lead, potential investors are scrutinizing snaps financials. 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 value of 18. 5 billion, meaning the founders could each take home a check of 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. It is certainly a high valuation. On the positive side, they have got some big Growth Numbers on a yearoveryear basis. We all know the stories of how high they are reaching and how valuable they are to advertisers, but this is an extraordinarily high price for any company with any kind of growth metrics. But for one that has negative growth margins, with growth slowing so much, where there are some Big Questions raised, look, this roadshow will be interesting because their excitement around the deal, but there are 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, it had only 14 growth sequentially, and then they turn that around. What happened there . How does the business work . These are the things that will come up in the roadshow. 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. And i think the industry is watching this with fascination because 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 potential to be new kind oflly communication, given the passion that young people have developed for it. I think it does sort of 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 that the founder should have complete control, which is literally what they have here. That is something the industry is watching with some ambivalence, frankly. Ofoline cory, this lack Voting Rights, it seems to be, according to the filing of snap, it was the first u. S. Company to level this, to have no Voting Rights whatsoever when going to ipos. Is that why they are being more cautious with the price tag . The company is worth less to shareholders for a lot of reasons. The company is worth less to shareholders when it doesnt have profit. When it does not have free cash flow, when it does not let the owners of those shares exert their rights. So, there are a lot of things that snapchat is doing. It is going to get a lower valuation than it would otherwise get. Not having Voting Rights does not bother anyone when a company is run as well as facebook. It is bothersome when you are looking at Companies Like groupon, when you have multiple classes of shares. It doesnt bother with berkshire hathaway, but it wouldve bother them at all who when investors bothered them at yahoo , when the investors had to come and say that company from itself. 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. Can snapchat really change the way in which the world works . Dont think facebook is primarily copying snapchat. I think there are product features that facebook has bought from snap, no question, and the has been a knowledge by instagram and others. I think the comparison between the two companies only goes so far. When facebook went public at the potential to become a world altering service used by literally everyone. Unless you believe that is true of snapchat, you are most can justify this kind of a valuation, as cory is pointing out. And i dont think you can justify that kind of talk about snapchat. In my opinion, it does not have, in its current design, the potential appeal to our parents , to children of all ages, ordinary working people. It just does not have that kind of capability. It is not a true comparison. Emily 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 perspective 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 . Well, 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 snap 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 e Commerce Platform or the cloud services. While others have been duds, like the smartphone. 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. It is a surprise 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 18 a month for the 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 yahoo s internet property. The deal would reduce the price of the original 4. 8 billion deal by about 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 have been in a difficult position, they probably would have had to rerun that sales option that took 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 this, saying, 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 they can move on to whatever else is next for verizon. 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 10 to 12 acquisitions after yahoo . 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, because you are not only putting out stories on yahoo and verizon, 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 last 12 to 18 months that apple might be finally willing to do some bigger deals. They have never really done deals in the 40 plus year history of the company. They have really just grown products organically, shining 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. Part of the reason they have not if they are not structured to do big deal 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, which bought directv 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 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. 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 by the end of the year, that will be the real clincher to see how compelling the next iphone is, how they succeed in attracting new customers, particularly in 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 Goldman Sachs president and cochief operating supervisor, 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. Face major travel disruptions this week. Both ride hailing giants, uber demands include a revision to the minimum fares, bringing back bonuses, reducing the commission rate, and limiting the number of cabs 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 have worked 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 initial Public Offering 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. 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 Companie