, after the session concluded, saying things will be different after january 20 ago with the another duration less than a month away, jimmy carter is the only, president to rsvp. Bill clinton and george w. Bush are putting their decision off until next year, and a Spokes Person is saying george h. W. Bush will not attend because of his age. President obama is planning a farewell address next month and chicago. The remarks are scheduled to take place january 10 and will likely include a thank you to illinois for launching his political career. Global news 24 hours a day. This is bloomberg. Caroline i am caroline hyde, this is Bloomberg Technology. Off a up, twitter caps 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 o deep space exploration. And two tech titans sound off. First, our lead. Twitter is struggling with its video advertisement. The Company Discovered a software bug that overstated how often video ads are viewed on android phones. This is the latest misstep to shake faith in video advertisements. It comes after facebook revealed its struggles with video advertising and raises questions about the lucrative business of online advertisements. Joining me is our guest host, brad stone. Welcome. Is it another hit to twitter . Brad let us start out and address what i call the twitter paradox. The year has been horrible, the stock is way down, executives are leaving, and yet somehow it has never been more important to the public conversation,. Trump waged his campaign on twitter and the media eats it up. It has found its place in public discourse. On the other hand, the vp of product has left, you mentioned the cto, this is really Anthony Notos company right now. Caroline he is an X Goldman Sachs banker. 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 meant to make it so easy to trace advertisements, but facebook and twitter are derailing things. Brad the specific instance you mentioned for twitter was one month of an error in tracking video ads, they reimbursed some advertisers, very small numbers. Yet, it is part of a broader trend. For the past couple of months, facebook has made these announcements that it is miscounting impressions in the instant articles users 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 of what the traffic is 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 vine and periscope. Brad you have to give it jack dorsey for seeing that faster than other people but i think twitter just doesnt have the assets or capital to compete for the content. You look at amazon or netflix paying billions of dollars to acquire content and sometimes creating their own, twitter is a small fish in the video pond. Caroline speaking of which, where the land lies, brad stay with us. Did not mince words about how he felt about the company. He sold a large part of his stake in twitter. Check out this interview in San Francisco. It is an incredible story of underachievement. Potential that was never realized. I would be excited for someone with some product vision to go in and take chances. We know it has the most valuable in the information world. There is stuff in there for every person on the planet. They have failed repeatedly to put that in an easy to digest way for most people. Have you been disappointed in jacks leadership . Were you hoping he would bring in someone else . Yes. I was hoping to see adam get involved again. Was that on the table . Yes. Not necessarily a formal role, but i always felt he had the product vision at that company. He went from 2 million users to 200 million users, and he may not be the guy who wants to henote on the big stage, but was always at the front of the market. Four years ago he was talking about live video, and i dont think any of us understood the urgency of it. I really want to see adam bains role grow. It has not grown like we thought it would grow. He is delivered on the revenue side to the extent he can without user growth. I would like to see this go to a partner who has distribution and who can grow it organically using other platforms and also says, 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 two years without fresh blood. I dont see a path to that. Think there is any twitter 2. 0 or 3. 0 in the works. I have not heard anybody talk with any passion about what is coming down the pike right now. Do you hope for acquisitions . A new ceo . I hope for acquisitions. I think there are some great product teams that would fit in naturally. 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 . Sefit. S an obvious google i think google underestimated the company for a long time because it is not scientifically difficult to pull off. That is the same reason google underestimated blogger for so many years. It was a canvas on which humanity painted incredible thoughts. That is what twitter is. But it is to a scale that blogger did not achieve. Facebook is try to copy this Company Number of times and have not pulled off yet but i think they could bring some great vision to the cure ration cu ration of the tweet. We are busy all day and we 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. I think microsoft would be able to absorb the business and take some chances with it. Disney . Disney makes sense. I think people are overrating the importance of media on the platform. The truth is, there is a lot of audience and engagement there, and if you do that, Media Partners will come. You dont necessarily have to do a Strategic Media assets deal to get people excited about a platform. You just make it the most fun place to engage with the content and easiest to monetize and then content shows up. You were the biggest shareholder at one time. Have you sold shares . Yes. How much . The way i would put it, i dont own as many as i used to because i am not an idiot, but i own more than i should because i am an idiot. Caroline that was emily chang with chris sacca. Still with us, brad stone. I wanted to begin on who is the biggest shareholder. Chris sacca says he is not. Digging into the terminal, you can see Evan Williams is still number one. He has 6 overall. Vanguard is up there. Number three is saudi arabia. The prince of saudi arabia. Then there is jack dorsey. Do you agree with chris sacca that he was right to get out . Brad the trajectory of twitter has not bestowed glory on anyone. This is a company, the many histories of the company show it has had some dna problems. The founders never really got along. I think there is plenty of blame to go around, and some we could lay on chris saccas doorstep. He was one of the early investors, he acquired shares and lobbied very publicly for the previous ceo to be ousted. We look back and we see, 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 price target has slumped. The market cap is less than 12 billion. Brad 40 billion after the ipo. Caroline that is phenomenal changes. You see the yellow line, the price target, it has kept up basically. Were seeing a share price dip below the price target. 17 ofng in the red, analysts say to sell. Brad there is not a lot of consensus. A goes back to the paradox. This product as it exists is necessary. It serves the public function. And yet as we have seen from the stagnant user growth, it does not have widespread appeal. The company has been on a journey to find Something Else and we will see if the video strategy can be that something. Caroline i think the most ironic is that one of the most public figures, donald trump, did not think they were heavyweight enough company to invite to the tech meeting. Uninvitederhaps they jack dorsey because of his 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. Caroline 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 privatepublic partnerships with nasa that has given rise to spacex contracts. Peter thiel is Donald Trumps most prominent Silicon Valley supporter. His Founders Fund was an early backer of spacex. Joining us is marco and lori. Lori, i want to get your point of view first. What are the intricacies the administration 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. Now 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 wins out . Will it be the likes of space x and blue origin or the older guard . The likes of boeing and lockheed martin. Marco i 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. I think what you will see now is private industry setting the tone a little bit more than in the last halfcentury. My sense is that given what we have seen 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 blockades 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 . Lori 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. A you going to have, as we do now, the 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 the mid2020s and into the mid2030s into mars, or do you allow the private industry to complete those missions . 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 halting the Space Program over or slowing the Space Program over. And that they will allow entrepreneurs and even the boeings and 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. Takes up to, that 3 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 are developing similar rockets, we will know the shift toward more of a Publicprivate Partnership of having private Industry Leader the way is not going to happen quickly. However, if the sls is canceled, we kind of know where we are going. Caroline last time we had you on, we were discussing perhaps the setbacks we had seen for spacex. How much will this hinder spacex growing within nasa . Marco i dont think it will so much. As i said before, 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 about what elon musk said a few months ago about his plans to go to mars, they asked him more be what would 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 a government agency. Caroline lori, if we do see Silicon Valley more embraced by nasa, maybe even speeding up, even if some of the private industry also do well, 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. There is a lot of talk by republicans and the Incoming Administration of coming back on Earth Sciences at nasa, letting noa do it. Noa is an operational agency, and the nasa systems have been critical to 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 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 that mike pence has involved himself and is hoping to lead the space council, which weve had in past administrations but not more recently, and put us back to the moon instead of longterm, we will still go to mars, but 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 sense 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. A reminder that all our episodes are Live Streaming on twitter. Check us up weekdays at 5 00 p. M. In new york and 2 00 p. M. In San Francisco. This is bloomberg. Caroline on todays tech funding board, alibabas Ondemand Service is securing billion for expansion. This latest round has the stock up by about 8 billion. Staying with chinese tech, baidu says reports that it is planning a billiondollar ipo for its video streaming site next year are not accurate. The internet giant published a statement on friday. Baidu says 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 numbers run in with california regulators. That is next. This is bloomberg. You are watching Bloomberg Technology. Lets begin with a check of first word news. Maltas Prime Minister says the libyan men who hijacked a plane and diverted it to malta had a hand grenade and pistol. A second pistol was found on the plane. All 111 passengers on the plane will be returned to libya after their questioned by police. The hijackers are being interrogated. Investigators are trying to determine whether the suspect in the deadly german truck attack had help. The suspect was killed today by police in milan. Germany and italy are trying to reconstruct the root he took from berlin. French authorities have not said how he crossed into france. And Islamic State link to video shows him calling for more attacks in europe. The group claimed responsibilities for the attack. In moscow, Vladimir Putin took aim at the 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 Donald Trumps remarks about expanding the nuclear artists arsenal do not taken by surprise. Isthe president elect, that nothing new, in his Election Campaign he kept saying there