Transcripts For BLOOMBERG Bloomberg West 20140530 : vimarsan

BLOOMBERG Bloomberg West May 30, 2014

To have al be able reusable dragon capsule. Reversingnership slumping sales. The company just launches brandnew mario kart 8 game and players will be able to drive a mercedes for the first time. Nintendos mario or her also appears in a mercedes commercial in japan as nintendo tries to make more money from licensing. Of the day Steve Ballmer have something new to get excited about and retirement. The former microsoft ceo known for his emotional speeches during microsoft events, jumping up and down, has reached a deal to buy the l. A. Clippers for 2 billion. That shattered the record for an nba team. 550previous high was Million Dollars pay for the Milwaukee Bucks this month. In a statement, ballmer says i love basketball and i intend to do everything in my power to ensure that the clippers continue to win and win big in l. A. Signed the agreement with the Sterling Family trust, which moved to sell the team after owner Donald Sterling was banned from the nba for life or making racist remarks. The big question here is did ballmer overpay . The clippers always been second fiddle to the lakers. Our senior west coast respondent Jon Erlichman thank you so much for joining us. First of all, what kind of an owner is Steve Ballmer going to be . I cannot wait to see the clippers play the mavericks to see cuban out jump ballmer or ballmer out jump cuban on the front row, and that is what this is all about. These are people of billion to want to sit in the front row. He just bought a two a front row ticket for 2 billion. He promises to keep them in l. A. Jon, do you believe him . He lives in seattle. Oh, definitely. People are excited about this. Financially, it would make no sense at all for and to try to move the team, and that has a lot to do with the financial power behind having a team here in los angeles with a tv rights deal that is expiring after the 2016 season. We saw when the doctors were acquired for a huge price tag. They were able to turn around and cut a huge tv deal. A new channel where there is a huge opportunity to make some money, and i think that is how you ultimately get to the 2 billion price tag. Oflarry ellison, the ceo oracle, try to buy the team. He is now zerofor now, right . What do you make of tech people getting into i do not think this has to do with micro. This is about micro and it is about buyin highballs. I totally agree you are by a bl a market. They are not going to seattle. This is an incredible move forward. This was speed dating in franchise. I talked to a sports investment banker today and he said he has never seen anything like this. Donald sterling goes off the deep end, and two or three weeks later, it is done for 2 billion. About asset appreciation. Sterling 9100 . When is Steve Ballmer going to realize a 9100 asset appreciation . Tt is worth wha somebody paid for it. It is like art. He is now a member of an exclusive club, and he has been trolling for an nba basket while team for a long time. Can we put out the irony here, jon, that Donald Sterling probably made more in this deal then he would have had these remarks not been made public . Absolutely. And he just said it this happen so quickly. It is like any hot piece of property. People have to get their bids in quickly. Generally speaking that means a higher price. I agree that he out more as a result, assuming everything continues down this road, then he would have received otherwise. Not to say that Steve Ballmer is overpaying because, as i mentioned earlier, when this new tv rights deal is worked out, all of a sudden we may say hey, that is kind of interesting. All of a sudden the clippers of a mass amount of cash flow coming their way. Do you think the clippers can take on the lakers, and the y . The verticality of the clippers may be greater than the lakers. What do you mean about verticality . How high they can jump . The lakers on that town, the dodgers on that town. This is spectacular. Do not say full of it. Full of the oneliners. Lets put things into perspective. Yesterday, apple or the day before bought beats by dr. Dre for 3 billion, so we all go crazy about 2 billion for the clippers. A Headphone Company 3 billion. Jon, what are fans feeling like on the ground . Are they more excited about the clippers whenever . You think they can take the lakers supremacy . No, they cannot, this is a lakers town, but people are excited about Steve Ballmer. People are asking if he will live here, and see that suggested he will spend more time here. To andys earlier point, the cubanballmer games, those are the ones to watch. Certainly some fun games to come up. Lets wait for the next chapter. Former dolich, president of the golden state warriors, and i was our senior west coast correspondent Jon Erlichman in l. A. Do any of the little guys in tech to really have a chance to disrupt the giant . That is next. You can also watch us streaming on your phone, tablet, and at bloomberg. Com, apple tv and amazon fire tv. Welcome back to bloomberg west. I am emily chang. Google is taking steps to comply with the european search to remove certain links. Google just removed its online form. Google will then review the request. The search giant also said of a committee to advise on the courts decision. And with us now, been laying, a former senior at google who had executive role that youtube and facebook, he has individually invested in over 80 companies today. Ben, thank you for joining us. I want to ask about this right to be forgotten that is u,ppening in the e obviously articles about you and me make up the backbone of locals business. Do you think this will hurt them . Goal has always taken privacy to consumers very seriously. You went from facebook to google, which is almost like the reverse i was at google for us, then facebook accrued me, and i went back to google after that. I went for youtube. Youtube, as you know, its a huge online video destination. At the time, it was not besides that it is today, also it was a huge opportunity and a great time to go. You have been a venture capitalist for a year, but you investing personally before that. Where are you placing your bets . Consumer side, mobile market with data what are the trends that are exciting . One thing that is obvious to everyone is mobile. One of the things you see more and more of its consumers expecting the mobile device to theirotecontroll for life. Click on anything and expected to arrive. Topengo. Ing thing is mobile commerce starting with a food order. You and i are attending class, we are hungry, i order using the app, and we go to calculus class, i skip the line. I pick up my food, and you are waiting in line for a few minutes and you say how did he get his food. What happens the next day . You use tapingo. It is on College Campuses like usd, santa clara what happens when everybody is using it and theyll skip lines . They use ite, everyday. What happens here is they increase efficiency for everyone. The average order value goes up, total revenues go up, and then also the students are extremely happy with this. This is a trend we are seeing. Another mobile commerce we are excited about is called the hunt, and it is a visual Search Company starting with search with womens fashion. I say i love it, i say where did you get it, women take photos from pinterest, facebook, instagram, so on and so forth, and put those photos on the hunt and they say where can i find exactly something that matches is out the door is like this outfit, and team members go out and find that i dont. Find that outfit. A guy who is famous for his investment theory and investing in black swans, how does your investing strategy to align with his . I Like Companies that had very good initial market traction and have the ability to be a breakout success. That generally is our theme. Having worked at google and facebook, youre trying to find little companies that can disrupt these big companies. Is there anything that can really disrupt facebook at this point . What are the chances . Isi think the question here about innovation generally. When you look at innovation and disruption, it comes from a place you least expect it. Were listening to get companies that are strong for consumers, with the opportunity to expand. So 10 years from now, arent facebook and google as dominant as they are today . Just like you see microsoft as dominant, google is dominant, facebook is dominant. You will see every one of these cycles, a new goliath emerged. Who is an upandcoming goliath . One of the proposed companies is square. Square has been facing a lot of challenges lately. They have done really well. From a merchant standpoint and getting consumers adoption with a variety of new products that, i would bet on the company. How big do you think they will be in mobile payments . Time will tell. All right, ben ling, partner at khosla ventures, thank you for joining us. We will speak with the man mcs new show. And remember, you can also watch us streaming on your phone, tablet, and at bloomberg. Com, apple tv and amazon fire tv. Welcome back to bloomberg west. I am emily chang. Space says it will be able to carry astronauts into space within two years thanks to its ecraft, thed spac dragon v2. It will be able to carry up to seven people and have for tons of cargo. Here he is sitting in the cockpit. So we have aimed for thething, version two for interfaces in the overall aesthetic, something that is very clean, very simple. s musk says it is spacex intent to deliver astronauts into space for less than 20 million. Currently the cost is as high as 76 million a piece. Hitsas had a string of with madman, breaking bad, the walking dead. Now the network is banking on the rise of the pc era. Halt and catch fire is set in texas after the ibm corner is pc market. ,u have been watching madmen then you have seen many commercials for halt and catch fire. We spoke with creators for the show started by asking where the idea came from. My father, who moved our family down from chicago to dallas, texas when i was about six weeks old for an opportunity in computers. He started working in System Software in the early 1980s, and then from there i watched his career evolved from System Software to Application Software to the internet, then finally to security software, and about two weeks after he retired, in the mid 2000s, i had already graduated from college, his company was acquired by ibm, so ibm was really this presence in his career life and also our personal lives where it was always knitting at the heels of what everyone else was doing in texas. And i think the writers in los angeles are kind of looking we were chris and i met working together in social media at disney and we were kind of getting increasingly interested in the role of technology in our lives, you know, whether it pushes us farther apart, how it brings us together, and we thought kind of the genesis of that story was 1983 and the rise of the personal computer, and we saw an opportunity and what was happening with engineering to kind of tell people the story they did not know thomas anytime you can kind of find out, that is a pleasure for us. Talk so much about Silicon Valley and silicon alley and we talk about silicon beach, but you are focused on silicon prairie. Tell us about what was happening at that time. Silicon prairie really deals of area between dallas, houston, and austin, and topaq was the First Company reverse engineer the ibm pc, and they were out of texas. Michael dell was willing computers in his dorm room at the time. We also at texas instruments, which everyone is familiar with. There is speech centers of there isechnology ationh synthesiz technology, and then the ibmcompatible machine that was sold at the market, started by the man who created to radioshack. We can play this to the end of the line where people have come out of these other traditional tech hubs, kind of came for their second chance, their last chance, and in a lot youays that is always what are looking for. People seeking retention, to do right where they have failed in the past, and it gave us the opportunity to do a modern western. So many tech been themed stories, movies about Mark Zuckerberg and steve jobs come in now a show about modernday Silicon Valley called Silicon Valley. How do you think the themes and all that material compares to the themes of you exploring your show . I think that the themes are very similar across the board is really about humanity cozy relationship with technology, and when chris and i first came up with this idea, we wanted to tell a story of how do we get to where we are now . There is no going back. Technology is completely in our lives, and what does that mean . What is that symbiosis look like . As we look back through history, personal computing really seems like a watershed moment where we could explore that relationship, and the flavor is different from another show or another movie, but the parable seems to be always the same, which is technology,ates the but technology is a reflection of humanity in all of its imperfections. And i think we are becoming increasingly aware in our modern age to the effect of the individuals who made these things, per the personal imprint into the machines. I think we see the great creativity of steve jobs in the apple products, and the social thatrk and movies like show you Mark Zuckerberg, his demons and his brilliance into the facebook product. That is the way we want to cash in a way that our heroes, but our frictional company, they care about their company and products even in 1983. Record sound like you have gotten approval from people it sound like you have gotten approval from people in the business at a time. Some of the feedback that ive heard from people who have seen it is they are impressed. Is that feedback from people who are currently the influencers in the world of technology is that important to you . Is it important to be potential success of the show . I think so. I really love that people are responding to it in that way. People who are working in technology now, people who are not as milieu with the history of how we got here are looking at it and feeling like it is plausible, feeling like it is real, and that way they can appreciate the drama and enjoyed the story that much more. Itself hasandwork changed, but the dilemma is on a human level. Can you have worklife balance . Can you iterate something fast enough to get it on the market before Something Else completely eclipses it . Am i a visionary or am i a fraud . The challenges on a personal level are kind of timeless. I think we are finding a modern audience is can still connect. Chris cantwell and chris rogers, creators of amcs new series halt and catch fire with our Jon Erlichman. Coming up, with the massive growth of chinese social Media Companies like weibo, will internet censorship in china and anytime soon . You can also watch us streaming on your phone, tablet, and at bloomberg. Com, apple tv and amazon fire tv. It is 26 past the hour, which means bloomberg is on the markets. I am matt miller. Take a look at the indexes as we near the end of the trading session on this friday. Just a couple of hours away. Use the red arrows across the board after an investor was disappointed by some Consumer Spending figures, but still, 1918 on the s p 500 aint bad. One stock we want to highlight bidt now, hillshire the is on. Tyson made a bid to buy hill shire, which would make it one of the top bids. It topped pilgrims pride by five dollars a share. Hillshires stock is trading above the 50 per share offered. Optimism that an even higher bid may be coming along. Bloomberg west is coming right back on bloomberg television. You are watching bloomberg west, where we cover Innovation Technology and the future of business. I am emily chang. Bloomberg top headlines. It appears that a Class Action Lawsuit will go to trial on july 14 over apples alleged ebook pricing. It had challenged the decision to give the case classaction status, but a federal court in new york has rejected that challenge. Apple is still reeling over last years ruling that said apple violated antitrust laws in its contracts with th ebook publishers. Twitter is nearing head fry steps down. Ceo dick costolo has made no secret of the fact that he wants to speed up product innovation. And facebook ceo Mark Zuckerberg and his wife, priscilla 10, make a major donation to schools. 120ouple is donating million to low income areas are here in the bay area, East Palo Alto and parts of san francisco. The zuckerbergs previously donated 100 million to schools and new work, new jersey. Chinese Internet Companies go global, the internet remains uncensored at home. How fundamental has the internet become for chinese citizens, and how much of a particular Chinese Communist party is it . Joins us, he is author of a new book, age of ambition chasing fortune, truth, and faith in the new china. A longed in china for time, you cover china for a very long time. Use all many of these changes firsthand. One of the most interesting things about this book and having lived there myself, you story oft china as a contradiction. The Chinese Government has fostered the internet. At the same time, it has censored the internet. How has the internet in your opinion changed Chinese Society . We think that the internet has changed our lives in america. It is even a much more transformative for an average chinese citizen. If you think about it, somebody living in the countryside before did not have the transportation, the technology to feel connected to other people. All of a sudden now you go online, you have that half of the population on my today. That means we are only halfway to the end of this story. It has gone up 60 in the last or years. It

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