Have orbited the earth. He died in december at the age of 95. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg. Caroline im caroline hyde. This is Bloomberg Technology. Amazon is ready for some football. It will take over for twitter as nfls streaming thursday night headquarters. Plus, the return of mcabee. Mcafee. It spins out as a Standalone Company once more. President trump is set to host chinese president xi jinping in florida. First to our lead, in an nfl showdown off the field, amazon has scored bigtime, winning the rights to stream thursday night football. It outbid other Companies Like facebook, twitter, and google to stream 10 of the leagues thursday night games. The prize did not come cheap with amazon paying a whopping 50 million for the oneyear deal. They allowed twitter last year to stream the games for significantly lower a significantly lower price. Joining us now, gerry smith and Keith Clinkscales. Great to have you both. 50 million, clearly the price was right. Why would amazon be the right place to be streaming . They have a pay wall. This isis gerry only going to be available to amazon prime subscribers. They might be willing to take a loss on Something Like tv rights if it encourages people to buy more diapers on amazon prime. Jeff bezos has live sports is incredibly valuable. I think their thinking is if we can encourage more people to sign up to amazon prime to watch football, then it made a lot of sense. Aroline share price is down little bit today. Some analysts making some big quotes, saying this has helped kill the bullish twitter narrative, that they will be the next big life player in sports. Live player in sports. Amazonits a big win for at twitters expense. Twitter go went ahead to show this is a possible technology that can be used. Working with the nfl, helped they helped make it really good. I like the fact that they were not only able to jump on it, but position themselves for the future in working with the nfl. Caroline they are paying an awful lot, 50 million, and its not even exclusive. Ou have nbc, cbs they are streaming it, too. Why would people suddenly be buying into amazon prime for this . Excellentts been question. This is a strategy we have seen the nfl use, where they really slice and dice their media rights and sell them in a lot of different ways. Another example is that verizon is the exclusive wireless provider for nfl games. As you saw with twitter, the number of people who watched those games last year these games are available in a lot of different places. One of the Big QuestionsGoing Forward is, the sunday football games, some of the nba games, those are contracts that come up in a few years. It becomes a question of whether amazon or apple or facebook go for any of those. Those are really valuable. Caroline scale this out for us a little bit. Weve got amazon going through prerecorded material. Do you see them as a Live Streaming player now . Does that mean netflix and hulu might do the same . About im not sure netflix and hulu. For amazon, this is worth it because of the prime package. The prime opportunities kind of like the skinny packages that are coming up in cable nowadays. If you can find a way to add more value to it, then you are in the right spot. Nfl has value. Gerry saw it as small audiences. I saw that as not a bad swing at it. It doesnt take many games. Why did i watch it on twitter last year . Because thats where it was. Moree the direction, but importantly, television measures things in a different way from tech. What Tech Companies are for is. O add value to their package having the nfl adds value to the prime package, period. Caroline gerry, i think of this btv in thevtv United Kingdom enter sports programming. They paid phenomenal amounts. What about twitch . An interesting area where gamers stream each other and watch each others games. Is this something that could be capitalized upon when it comes to the social side of the nfl . Gerry certainly. If you look at the amount of money that amazon paid for twitch, they feel like its a valuable property. Every Media Company now is taking a serious look at esports. This is a demographic of young men that are really unreachable in a lot of different, traditional forms of advertising , so they are extremely valuable. Every traditional media and tech company is thinking about, how can i get into esports . Can i sponsor a team . Can i sponsor a player . So, certainly, im sure amazon has a lot of plans with twitch. Whatine lastly, keith, does the future of the nfl look like . Will there be a day where it is exclusively streamed, everyone has cut the cord . Keith i dont think broadcast goes away or anything like that. I do think the nfl is smart enough to try to use all available technologies, and it has the market cloud to make people pay clout to make people pay. The nfl says they have to share. It creates the opportunity, but it also creates the ability for younger people to go ahead and use technologies they are more theyto using and while still have the power and availability in their reach of the entire current cable platform. Caroline fascinating conversation with Keith Clinkscales and bloombergs gerry smith. Thank you very much for your insight. Noted short seller andrew left has come out with a report shorting fleet core technologies. Now its taking aim at its fees, makes akeups significantup which makes up a significant portion of the revenue. I got a pretty good response from customers and former employees, not just investors. Caroline coming up, a huge tech deal is resurrecting a wellknown company name and also bringing it back into the private market. We will speak with brian taylor about mcafees spin off. Thats next. This is bloomberg. Startup focused on improving the Trucking Company is about to raise more cash. This is according to for people familiar with the matter. They hope to generate huge savings for the 700 billion trucking industry. Their Technology Makes it less dangerous for trucks to travel within close proximity to each other. For more news on intel, intel security is being spun off and named mcafee. It will once again be a standalone private company. A private Equity Company will take a 51 stake. Jason kelly is with us in san francisco. Joined by none other than Brian Taylor Bryan taylor. Jason its great to be with you and with bryan. Big day, obviously. This is a Standalone Company again, a peer play. Why does that make sense right now . Bryan cybersecurity is one of these existential threats to our lives, our companies, our institutions. Mcafee is one of those businesses that is there to protect us. Its the mission of the company we think its a really Important Mission and we are thrilled to be part of it. Jason it was part of intel. There were sort of big hopes and dreams for it. Now its a Standalone Company. What gives it an advantage there . Bryan i think somebody at intel figured they were not the natural owner for a 2 billion Cybersecurity Software company. We caught them at a moment when they were reflecting. Do they want to double down and reinvest in the business, or do they want to sell . We gave them an alternative, a partnership. Intel still owns 49 of the company. We get to refocus and reinvest in the business. Jason what does the private equity playbook look like here . What are the levers that you can pull . Bryan we had 16 months from when we started this deal to when it closed yesterday. In that time, we had a chance to have a vulcan mind meld with management. First and foremost, keep pushing for the products that. Its a great set of products. It can be made better every day. Second, we have great customers and we have deep relationships with those customers. Its even broadening our scope. Third, we have a unique landscape. There are Cybersecurity Software companies we can buy and put through this Distribution Channel to add value to our customers. Jason potential acquisitions down the road. You can do this organically and maybe with some buys . Softwarethink security is the overfunded is an overfunded area. We think we have a platform to buy those and deliver value to customers. Software ave oversight over software at tpg, not just in by outland in bu yout land. What are you seeing as far as themes . Bryan we do Large Capital deals and Seed Investments and equity checks. We see the whole landscape. Weve been working together for over a decade. We have eight to 10 different themes we are practically pursuing in the marketplace. We are proactively pursuing in the marketplace. Find this creates interesting opportunities. Jason whats the one you are most excited about beyond cyber . Bryan health care is a one dollar trillion industry that is completely retooling its is a 1 trillion industry that is completely retooling its backoffice. We have been pursuing it now for a number of years. We just closed our first major investment and we have others in the works. Jason competitively, who do you run into in the market . Strategics, all of the above . Whats the Competitive Landscape . Bryan when i started doing this, there were two or three of us. Today, every private equity firm says they have a software practice. Ive been doing it for 15 years. My partners have been doing it for 15 years. We have been doing it together in 10 years. If we are proactive and thematic, we end up not facing a lot of competition. Theres a big enough market that we find situations like mcafee where its really just us and the seller trying to build a partnership instead of a transaction. Jason when you look around Silicon Valley and the world beyond, how do you feel about valuations as a buyer . Bryan in 2003, we had 3 billion of Software Buyouts and we thought we had hit the top of the market. It reflects that people have come to appreciate the power of these businesses. The tailwinds in revenue, the defensibility of the business model, cash conversion i think thats reflected in values. Im confident software continue to penetrate the enterprise and revolutionize how we do business. Jason on the exit side, theres always the question, is the ipo window open . Are there a lot of active buyers out there . Is the ipo window open in your estimation . Bryan it comes and it goes. On acquisition is not based an ipo. We focus on can we build great businesses and let exit take care of itself. Jason too much capital out there . Bryan i focus on the micro. Are we finding businesses and driving value around that . To be bryan taylor, great with you here in san francisco. Caroline, back to you. Caroline fascinating interview. We have seen Enterprise Software is where its at when it comes to the ipo market. Later, we will get more on that , chrisom the mcafee ceo young. Coming up, President Trump is set to host chinas president this week. We would dig into the top issues tech investors should be watching. And a feature we would like to bring to your attention is our interactive tv function. The it at tv on bloomberg. Can become part of the conversation by sending us instant messages during our show. This is for bloomberg subscribers only. This is bloomberg. Caroline in germany, chancellor merkel ascap and it is backing legislation that threatens facebook and other social media platforms chancellor merkels cabinet is backing legislation that threatens facebook and other social media platforms. If passed by parliament, the measures would be the toughest regulation facebook faces in any country where it operates. Meanwhile, President Trump is set to host chinas president , ximeanwhile, President Trump is set to host chinas president , xi jinping, in maralago, florida, on thursday. A wide range of topics are on the agenda, including some that will hit tech hard. Joining us from new york to preview this important meeting is selina wang, who covers all of our key china giants for us as well. Its pretty fascinating. Youve got to dig into this particular function, ectr. It shows the trade flows. China is the u. S. s number one trade partner. 2 3 of 1 trillion is exchanged between the two countries. Give us a sense of how important this will be to the likes of alibaba, tencent, who are looking to be doing that trade with the u. S. Selina truly, this is a much awaited meeting. Its the first major meeting. Oureed to temper expectations. Theres not likely to be tangible outcomes from this, but and sets thetage tone for future policies to come. Among chinas tech giants, there is alibaba, baidu, tencent. Alibaba has the most to lose, given jack mas tense relationship with donald trump. Baba and tencent itsaba has a large part of business that focuses on trade between the u. S. And china. If trump or to raise tariffs on goods coming from china, that would hurt their aliexpress business. That could make it harder for them to onboard u. S. Businesses onto their website. Going tothat xi is want trump to focus on china as a vast market for u. S. Companies to sell goods to, and which could help create jobs in the u. S. Caroline the tech titans have been making inroads into china. Im thinking apple. As well as their supply chain is so important. They are big players in the u. S. As well. Selina apple is going to be a major player, watching to see what the tone is that comes out of this. He was going to slap some problems on companies that would send their suppliers and workers overseas. Apple, of course, have major supply Chain Networks in china. If that were to be the case, it could significantly raise the productioncost of and ultimately the cost of goods to consumers. Caroline whats fascinating is the amount of money that comes in terms of direct investment from china and also vc money, companies being bought, startups. Its a big exit route. One Company Found backing with the facebook of china. Alibaba and tencent have been plowing money into the likes of lyft. Weve seen so Many Companies in the u. S. Is this the more important area that will be focused on, the money, the investment . Selina this is a multifaceted issue. On the one hand, you have some domestic chinese policy impacting this, which the Chinese Government is trying to curb some of these Outbound Investments for currency stabilization. Thats one issue making it harder for outbound investment. On the other hand, you have this review process that has become more highly politicized, i would say. Its a process which determines whether or not acquisitions of this sort could have some National Security and locations. The westinghouse deal may come into the picture. Thats more black and white because this is for nuclear technology. That has clear National Security implications. Another company ive been covering, their deal for moneygram, a money remittances cleary there are not National Security concerns, but you already have congressmen and trade groups allow urging them not to allow this to go through because of potential National Security concerns. Xi has an interest to have Chinese Companies acquire Strong Technology in the united states. Caroline absolutely fascinating. So many of the companies you report on touch on this. Its as to why they cant pay some of of their u. S. Employees right now. Selina wang, thank you. Up next, the return of mcafee. Cybersecurity giant reemerges as a Standalone Company more than six years after being scooped up by intel. We will hear from the newly named ceo. Thats next. If you like bloomberg news, check us out on the radio here you can listen on the bloomberg and onpp, bloomberg. Com, the u. S. On sirius in the u. S. This is bloomberg. [ engine revs ] [ screams ] [ shouting ] brace yourself this is crazy [ tires screeching ] whoo boom baby rated pg13. [ screams ] [ [ screams ] ] [ shouting ] brace yourself this is crazy [ tires screeching ] whoo boom baby rated pg13. [ screams ] are watching Bloomberg Technology. French president Francois Hollande has condemned what he calls a war crime after the chemical attack in syria. France pushed for an International Military campaign against syrian president Bashar Alassad after alleged chemical weapons in 2013 and is said to still hold that position. In the u. S. , parents and children caught crossing the Mexican Border into the u. S. If they are crossing illegally, they can remain together. Its a partial reversal of an earlier stance. 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