In chicago according to a report in politico. It will likely include a thank you to illinois for launching his lyrical career. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Caroline i am caroline hyde, this is Bloomberg Technology. A tumultuous year with another misstep, but this time it has company. How a social media giant is struggling. Plus, the commercial space race that could be set to lift off under donald trump. How peter thiel could be the x factor two deep space exploration. Wo tech titans sound off. First, our lead. Twitter is struggling with its video advertisement. This is the latest misstep to in videoth advertisements. It raises questions about the lucrative business of online advertisements. Is our guest host, brad stone. Is it another hit to twitter . Out andt us start address what i call the twitter paradox. The year has been horrible, the stock is way down, and yet somehow it has never been more important to the public conversation, depending on how you view donald trump. Onhas waged his Campaign Twitter and the media is it up. Eats it up. It has found its place in public discourse. The vp ofer hand, product has left, you mentioned the cto, this is really Anthony Notos company right now. He is really running things and it is his video strategy that has taken front and center. I really wonder what 2017 holds for jack dorsey as a leader. Caroline talk to us about the advertising conundrum that is going on at the moment. It is ironic, these companies are supposed to make it so easy to trace advertisements, but facebook and twitter are derailing things. Brad the specific minton mentioned, they reimbursed some advertisers, very small numbers. It is part of a broader trend. For the past couple of months, facebook has made these announcements that it is miscounting impressions, what people see on the site in its video advertising, and it is ironic because here was an industry the promised precision and really demolished traditional advertising, and they are now admitting they have not counted things very well. We need a neutral audit and i think that is where they are going. Caroline twitter seems to be ahead of the game when it comes to video advertising, looking at. Ine and periscope, bu brad i think twitter just doesnt have the assets or capital to compete for the content. You look at amazon or netflix are doing, paying billions of dollars to acquire content and sometimes creating their own, twitter is a small fish in the video pond. Caroline brad, stay with us, because this year was one of because we have heard from one of twitters most vocal detractors. He sold part of his stake in twitter. Check out this interview in San Francisco. Is an incredible story of underinsured underachievement. Product vision needs to come in and take chances. We know it has the most valuable body of information the world. There is stuff in there for every person on the planet. Toy have filled repeatedly put that in an easy to digest way for most people. Have you been disappointed in jacks leadership . Yes. I was hoping to see someone else get involved. Was that on the table . Yes. From 2 million users to but it was users, always at the front of the market. I dont think any of us understood the urgency about video. Deo live a i really want to see adam bains role grow. It has not grown like we thought it would grow. He has grown to the extent he can without user growth. I would like to see this go to a partner who has distribution who can grow it organically using other platforms and also say, we have the best data and faster than anyone else, why are we not making it easier . Do you think twitter can still be an independent company . I dont see how it gets materially better over the next three years without new blood. I do think there is any twitter 2. 0 or 3. 0 in the works. Ive not heard anything about what is coming down the pike right now. Do you hope for acquisitions . A new ceo . I hope for acquisitions. This is not a new thing for me. Ive been saying it for a long time. It is a natural complement to four or five companies. Who would you like to see . It is an obvious google fed. I think google underestimated the company for a long time because it is not scientifically difficult to pull off. Google put off blogger for so many years. That is what twitter is. But it is to a scale that blogger did not achieve. I think they could really bring some great vision to the cure ration of the tweet. And we busy all day check into twitter, i dont want to see the 10 most recent tweets, i want to see the 10 best. That is why sportscenter exists, you can see the highlights and you dont have to watch the game that happens to be on at that moment. Would be ableoft to absorb the business and take some chances with it. Disney . Overratingpeople are the importance of media on the platform. It was a lot of audience and engagement there, and if you do that, Media Partners will come. You dont necessarily have to achieve and media assets deal to get people excited about a platform. You just make it the most fun place to engage with the content and then content shows up. You were the biggest shareholder at one time. Have you sold shares . Yes. How much . Useddont own as many as i to because i am not an idiot, but i own more than i should because i am an idiot. Emily changat was with chris sacca. On who is thegin biggest shareholder. Chris sacca says he is not. Williams isevan still number one. He has 6 overall. Vanguard is up there. Number three is saudi arabia. With chris sacca that he was right to get out . The trajectory of twitter has not bestowed glory on anyone. This is a company, the many histories of the company show it problems. Me dna the founders never really got along. I think there is 20 of blame to layround, and some we could on chris saccas doorstep. He was very publicly for the previous ceo to be ousted. The last year has not been any better for the company. I think there is plenty of blame to go around. For sure he is right, there probably is a buyer, and as the stock continues to fall we might find out. Caroline speaking of stock falling, i have the recommendations up for twitter at the moment, the white line, the market cap is less than 12 billion. That is phenomenal changes. You see the yellow line, the price targets, it has kept a basically, were seeing a share price dip below and is price target. All along in the red, only 70 of analysts 17 of analysts say so the stock. Brad there is not a lot of consensus. Exists isct as it necessary. It serves the public function. As we have seen from the stagnant user growth, it does not have widespread appeal. Ae company has been on journey to find Something Else and we will see if the video strategy can be something. Caroline i think the most ironic is that one of the most public figures, donald trump, did not think they were heavyweight enough to invite to the tech meeting. Or it could be during about their refusal to play ball during the campaign. Caroline brad, thank you. You are sticking with this. Up next, a changing of the guard in washington means a chance to shake up the u. S. Agenda for deep space. What president elect trump means for nasa and spacex. This is bloomberg. President elect donald trump has not said much about the u. S. Space agenda once he takes office, but this week his team added a key figure to its socalled nasa landing team. Charles miller is joining the panel and he is seen as a strong advocate for partnerships with nasa that has given rise to spacex contracts. Peter thiel is Donald Trumps most prominent Silicon Valley supporter. Analystus now is Margaret Charis and lori garber. Lori, i want to get your point of view first. What are the intricacies they will have to go through in handing over from obama to donald trump . Lori the landing team got a late start, but they seem to be a large group. I think with charles miller, that makes eight or nine members and they have a very short time to review what is happening at nasa and recommend new leadership for the agency and policies. I think the team itself is split between a handful of people who are traditionalists who would like to see the status quo am a costplus contracts perpetuated and some of these new people who would like to do what the Obama Administration tried to do more of at the beginning but ran into congress. It will be interesting to see if they have more luck. Caroline marco, talk about the potential split. Who potentially went out . Will it be the likes of space x and blue origin or the older guard . Boeing and lockheed martin. Dont think anything is going to change dramatically over the next year or so, but there are clearly two camps, one that has a preference toward nasa continuing to lead the way, to create a vision for what to do in space, and then you have this new approach, which is really more of a partnership between nasa and private industry and even letting private industry take more of a visionary lead. Traditionally, nasa has had a harder time coming up with the vision over the longterm and sticking with it. Not that this is nasas fault, a lot of Times Congress changes things. Now is what you will see private industry setting the tone a little bit more than in the last halfcentury here it my what we seen given from mr. Trumps talk, he will have more of a preference for letting commercial industry take a leading role. Caroline lori, you are talking about the arcades the Obama Administration came across during that particular rule over nasa. What would you like to see in terms of the legacy obama had and how that might unfold under donald trump . I think weve got a foothold with commercial companies and have had some successes and there will be no turning back. The question is really one of balance. Theyou going to have majority of the funds going toward cost plus contracts to build a very large rocket that doesnt really have a destination that takes 3 billion per year to go in may be mid20 20s and into the mid20 30s into mars, or do you allow the private industry to compete . I think it is something we hope we can do, to have the private sector more involved. I think the one bright spot perhaps of a donald trump administration, hard for me to say, is that they will stand up to congress and say no, the contracts in your district are not Worth Holding the Space Program over or slowing the Space Program over. That they will allow entrepreneurs and even the lockheeds to compete. Caroline marco, what gets prioritized in the next 48 years, what will we see achieved by nasa . Marco a lot of the future of where we are going in space will be determined by the space launches and sls. That is a huge program. Up 3i said, that picks billion per year. This is a 10 billion program through 2018. If the decision is to keep that program going, even at the same time as other Companies Like spacex art developing similar rockets, we will know the shift toward more of a Publicprivate Partnership is not going to happen quickly. However, if the sls is canceled, we kind of know where we are going. We had youast time want, we were discussing perhaps the setbacks we had seen for spacex. How much will the sender spacex growing within nasa . Marco i dont think it will hinder it much. If youre trying to do some ambitious stuff in space, you will have setbacks just like you have had in all the other industries, aircraft, automobile, railways. One of the things that struck me a fewwhat elon musk said months ago about his plans to go to mars, they asked him more be the main requirement for candidates to go on a mission, and he said, you have to be willing to die. I think that was very honest and telling. It is clear there are going to be problems along the way. I think that is why private industry is a good leader for this industry because they will slow down a little bit but they will not stop. That is not so easy for government agency. Caroline lori, if we do see Silicon Valley more embraced by nasa, maybe even speeding up, what about where the focus is being put . A lot of Space Missions are to do with Climate Change and that will probably come off the agenda. Lori that is the big shift that i think most of us fear. The Earth Sciences program will be greatly reduced. Byre is a lot of talk republicans and the Incoming Administration of coming back on Earth Sciences at nasa, letting do it. Noa tosystems have been critical monitoring the planet. That is probably the most negative thing people are concerned about. You also have a shift in the longterm human expiration destination, from mars to the moon. You look at Newt Gingrich as a king key advisor, and we have all heard that we have had elon musk and jeff bezos at the tech meeting a week or so ago, and after the meeting we were told involved pence has himself and is hoping to lead the space council, and put us back to the moon instead of longterm go to mars. The moon as a next up. The commercial space industry, where you are developing space in a more rational stepbystep approach, that is a more natural way of doing things. There is a huge moonmars debate. I since the moon is rising. Caroline wonderful to have you both on. Thank you both for giving your time today. Now, more of Bloomberg Technology coming up. All of our this is her life streaming on twitter. This is bloomberg. Caroline on todays tech funding board, alabama ondemand alibabas Ondemand Service is securing funding for expansion. Round has the stock up by about 8 billion. Baidu says reports that it is planning a billiondollar ipo for its video streaming site next year are not accurate. They published a statement on friday. They say there is no timetable in place for the ipo and it supports independent growth and development is going well. Coming up, everything you need to know about this week in tech news, including ubers running with california regulators. That is next. This is bloomberg. You are watching Bloomberg Technology. This is a check of your first word news. Maltas Prime Minister says the man who hijacked a plane and diverted it to malta had a hand grenade and pistol on him. A second pistol was found on the plane. Plane1 passengers on the will be returned to libya after they are questioned by police. The hijackers are being interrogated. Investigators are trying to determine whether the suspect in a deadly german truck attack had help. He was killed today by police in milan. Germany and italy are trying to reconstruct the root he took to milan from berlin. Said how 30s have not he crossed into france. Video shows him calling for more attacks in europe. Isis claimed responsibility for the attack. Aim at thetin took u. S. Democratic party at his annual News Conference today. The russian president said the democrats need to learn how to lose with dignity. He also said that Donald Trumps about remarks about the u. S. Arsenal Nuclear Arsenal did not taken by surprise. He is something new. He kept saying in his campaign there is a need to consolidate the nuclear element. There is nothing absolutely new. Trump tweeted the u. S. Must bolster its weapons until the world comes to its senses regarding nukes. The world is reacting to these remarks. A chinese official said a country with the largest arsenal should take the lead in disarmament. Beijing is reportedly playing close attention to what Nuclear Weapons policies Trumps Administration will follow. Australia has five suspects inspired by Islamic State in custody after reported plans for Christmas Day attacks. Assure you that our Police Services across the country, our intelligence agencies across the country and around the world, are at the highest state of alert, learning from every incident, whether it , puttingre or abroad in place the measures to keep australians safe. Economic community of West African States says the block will use military action ia. There be a namb the president lost the election and refuses to leave. This is bloomberg. Caroline this is Bloomberg Technology. We are visiting the top tech stories of the week. There are more people leaving twitter this week. Self drivingulling cars from San Francisco street. Earlier i sat down with brad stone and sarah frier to recap the tech week. This company has had executive turmoil as long as they have been a public company. If you look at any time they have mentioned executive leadership in a presentation, you can cross off most of the names. Most of the name since they started in going public. They have had an out of trouble a lot of trouble defining their vision and moving in a direction that contributes to growth. This contributes to instability that twitter does not need when it stock is so under pressure. Caroline a billion dollars in market value wiped out this week. We have had a joke that it is dangerous to profile a twitter executive these days because they might be gone by the time the story comes out. This is really anthony Motors Company right now. Ofdoes have a vision organizing twitter around live video. We will see how that goes. They have very little runway. They have to do something dramatic. If the price falls, it might tear it up again in toys 17. National and sara overcharged some of their advertisers for video advertisements. Advertisement is what they want to focus the company around. The fact that they were overstating how many people viewed the ads. They issued refunds but it is still not a good place to be. To their credit, they are not the only company who has had that problem. We were talking about facebook here