Youre going to be doing over the next 12 to 24 months and youre still on the board of microsoft and you have this project now in front of you, how you divide your time . So i could have the next phase of life. Im feeling a little strapped right now. [laughter] will have to wrestle that through a little bit. I have other things am also interested in. I want to myself have more time for myself including more time to study, teaching a class this fall at a business school, more time for sports and golf, that kind of thing. On top of that, i want to be a great microsoft shareholder. I want to be a great clipper owner. Im trying to figure out how to evolve my civic contribution. My wife has been really active child welfaren and education issues in the state of washington. We are asking ourselves what else. It will take some energy to figure that out. You have a lot on your plate. Do you think youll stay on the board . Him on the board today and im excited to be here as a board member. Answer he gave yesterday. Trish joins us now. Did you call him out . The newsrified it as came out. I spoke to him about 30 seconds after that he was in fact leaving the board. He said, and im going to quote, i want to be a great shareholder and i want to pay appropriate attention but between teaching classes and my new responsibilities at the clippers , its a lot. He went on to say that he loves microsoft. Today to him on the phone , i thought when i spoke to you yesterday that this might be coming. I did not think it would happen in 24 hours at a very much got the sense in the interview that he was distancing himself. Talking about the layoff being nadellas responsibility on the board not having much to do with that. Really talking about the direction of the company now being different. Emphasizing how strapped he was for time with all that he has going on right now. It simmer lately amazing its similarly amazing how much he played for the. 2 billion . How much he paid for the clippers. He said he wanted the team and he thinks he got a phenomenal deal. He was willing to pay whatever it took. When we talked about valuations in general he said if you look ofthe valuation of some these tech companies, a basketball deal like this doesnt look so bad. As he went further into the conversation he did say cheap money as a lot of the reason we are seeing these deals happen and its really fueling the lofty asset prices. He laughed as only steve does and said it may have something to do with the basketball price, too. He knows its a lot of money. He was the highest bidder and he wanted the team. View our Steve Ballmer and you have billions of dollars, you can pay 2 billion. If you are Steve Ballmer. You missed out on the team in san francisco. Anchor trish regan, hard worker. Stay with us. You have even more news. You spoke to the guys from uber who just made a strategic higher, David Plouffe. Next on bloomberg west. Welcome back to bloomberg west. Johnson. Uber has hired a new Campaign Manager, former obama political strategist live from pier 3 in David Plouffe. This i he has served as a bloomberg intervening editor. He will start with the company in late september. Campaigns hired new manager, former obama political strategist David Plouffe. Trish, what did he have to say . I asked why he was going to work for a tech company out or his experience in washington. I asked travis why he desired to hire david, someone was such a political background to work and transportation company. What they both had to say makes a lot of sense. The whale like to think about it is uber running a Political Campaign and the candidate is uber. Partneredto have just with the best Campaign Manager in the world. Thats what its about. We are in cities around the world. We need to get the positive story of over out uber out there. The taxi cartel is resisting the process we are bringing to the cities. Had aid, youve phenomenal career in washington. Why go to work for a startup . Have spent a lot of time talking. I was a customer and strong believer in the company. We had a great mind meld. Herebuilt a Great Company with great people and great mission. The opportunity to be involved in Something Like this could be a once in a generation experience. I believe that providing transportation alternative should not be an issue. Cutting down on distracted driving, helping businesses and people move around the city. Ofhink ultimately this kind rye grass, this kind of change, its hard to stand in the way of. People will put up a fight and we will be prepared to make sure we are fighting for the transportation alternative. You will be fighting regulatory challenges not just in the u. S. But all around the globe. We were just covering the protests recently in europe. Lendoes your experience itself to this global atmosphere . There are some similarities. The fundamentals of a good campaign, making sure you understand your story and who you want to tell it to, leveraging our assets. Remarkable group of customers and drivers passionate about the product. You rely on people on the ground. President ialan a campaign, we had to listen to those on the ground. There are regional general whogers around the world know those communities and know best. The headquarters is there to support them. Travis, let me ask you about allegations that have surfaced from lyft. They are saying uber is playing dirty tricks and alleging that you booked 5000 ride didnt cancel them as a way to thwart competition. What do you say in response . A lot of this plays out on the insider track. At the end of the day, competition is good for the consumer. If you are out on the court, if you are lebron james, you want. O dunk on somebody competition can be fun but at the end of the day at the better for the consumer, the driver. Did the employees do it . Ever madeall requests in the system are cancellations by people just using the system. Its a natural thing. There was never any kind of intention or anything like what was being proposed. We just categorically deny it. The accusation of first place was the real dirty trick. About me ask you something that has been controversial. You have drivers frustrated by the changing discount rates. You may say you have one price and then announce a 20 discount and some drivers are frustrated by that. There predict and theyre sort of on economics based on one rate and it changes to another. How do you deal with that and keep your drivers happy, wanting them to work for uber while giving our best, most competitive rate customers . Description is a little bit of a miscategorization. The only time prices come down is when the trips per hour go up. We bring prices down and we have seen consistently across the country and the world that drivers are actually making more because they are making up for more than the price cut in trips per hour. What we do before the price cut happens is be given discount to the user before it even comes down to verify that trips per change, amentally price elasticity. Drivers make more when we drop prices. Consumers are getting iran the cities cheaper and drivers are making more money because of it. You get to a certain price point and they stay much busier and they are able to bring more income home to feed their families. Interview. Esting thats the first time we heard travis categorically deny the yft had beenl making. Superduper Campaign ManagerDavid Plouffe helping the president when the last two campaigns coming into a company that certainly needs a lot of help when it comes to the battles they are fighting in cities across america and the world. What a fascinating company. To get a guy whos used to so much herding of cats what running a campaign is its great. We will have to continue watching it. Trish regan, thank you. Next, how googly vaulter may how google is evolved. An indepth look at googles past, present, and future is remarked the tenyear anniversary of its ipo. Welcome back to bloomberg west. 10 years ago today, google began trading as a Public Company on the nasdaq selling more than 19. Illion shares at 85 a pop it was not your everyday ipo. They almost got in trouble for an interview with playboy during the quiet period. They say it warned of such things that google was not a conventional company. When they did go public, they used a dutch auction. After the unusual start, shares have never fallen below the ipo price. We have a look at googles golden decade and what may come next. Over 100 billion searches per month, one. 1. 1 billion Android Devices activated, 500 million gmail accounts. Just some of the numbers behind their staggering success. In its first decade, google has 0rown from 3000 to 52,00 employees. They have a market cap 17 times its ipo valuation. On the way, google has become a fixture in popular culture. On a matha twist term, has turned into a verb used around the world. Google product help users find where they are going, see what their house looks like from face, what mountains look like a world away. The core remains search. They have a 67 share in the u. S. And google is still not satisfied. When i think about search, it is such a deep thing for all of theo really understand worlds information. We are still very much in the early stages of that. Googlech has helped become an advertising juggernaut. With all of that cash, google has ranch doubt big time buying youtube turning it into the Worlds Largest video site google has branched out the big time. Android are 1. 1 billion users and we activate Something Like 1. 5 million per day. Allegationse been of user tracking, scanning emails, manipulating page rankings. We need to show what data is being collected. Awareness means thinking about the future, reaching for the stars. Brandnew,out doing risky, technological things that are making Science Fiction real. Shots include google glass, the selfdriving car, robots, even trying to prolong life itself, identifying the ideal Healthy Human being. It grew from a garage to the Worlds LargestSearch Engine and now a company searching for breakthroughs people have only dreamed of. And that was emily chang. As we look back at google, three men who played a key part in building google maps and Google Calendar. Brent taylor, former Group Product manager and shadow puppet ceo, and a former coo, ben leg. I started by asking off how the world saw google as they prepared for their ipo 10 years ago. Google was really misunderstood. Clips, things based on prices percolate, understanding the economics of Digital Advertising was not something people were used to. They had to educate the market on how to think differently in terms of roi and digital. You are there at the time of the ipo. We always try to talk about it was a fairly amazing moment for the world. What do you think the world thought at that time . Companies went public with less information known about them then because there was not a welldeveloped secondary market. How they are doing multibilliondollar financing that was not available. When google went public it is the first time they saw the business. Another covering it for network at the time and the numbers were just phenomenal. 170 yearoveryear growth. People were incredulous. You mentioned the paperclip advertising, also a new concept. Eople were just in disbelief it took a number of years of being a Public Company before people realized that it was a sustainable business. I think its hard to describe how stark that was compared to now where these private Companies Get so much press and ipo. Edge ahead of an it was a different time. Original Google Calendar team. It was one of the first applications google built outside of the search after the launch of gmail. Andrked on that team launched Google Calendar. At the time, there were so many parallels to yahoo . I dont know if you guys know that story but they essentially owned a piece of the company and there was a lawsuit and overture about it. Launching the calendar business it interesting because showed big plans to do a lot more. Was that the original plan with calendar . Always had a mission to organize the worlds information. The founders had a really broad theme and it was not just information you could find but information people kept in their email or had in their calendar. There were not really big tools for doing that in an online, shared way to give you unlimited storage. It was really an extension of that. Did you have a sense that the advertising world was going online and even going into search . Sawt the time, people online as an interesting sideline. Howive you a sense of seriously they did or did not take it, generally was given to one person, maybe not the best person. It was not something where they said we have to get it right. Its interesting. Maybe i will throw money at it and see what happens. It took several years. If i spend money buying i can build my brand. A 3, 4, fiveyear journey to really educate the market. If i spend more time buying clicks. They just sort of extrapolated that we must all be billionaires which is obviously not the case. I have to say most of the people we worked with and google it was their first job out of college and it was a very idealistic company. To have been financial windfall where you could afford a house in the bay area, like no one else, was a real blessing. For us it is a very formative company in our careers. No matter how they laughed or what they worked on that got it in a really positive way. We really learned about technology and how to make product. Nice Financial Base for our families. It was a really impactful company. It really cannot he understated. Sjogreen,ylor, carl and ben legg. Fromon bloomberg west, music streaming, home monitoring services, you name it. Google is doing it all. We look at why and what it all means when bloomberg west continues. You are watching bloomberg ont were a focus innovation, technology, and the future of business. Im emily chang. Google started out as a Search Engine and it has become a whole lot more. From search and Ad Technology to mobile phones with the android project. Google also has projects coming out of the google x labs that read like Science Fiction cars anddriving curing disease. Talking about googles success, challenges, and future opportunities. Googles International Revenue is Something Like half of all of its revenue. Google generally has much higher market share outside of the u. S. Than inside. Its really important for google overall. Focusing on engineering and innovation, it would be the same cost of whether it was a u. S. Only company or international. Moneyct that half of the coming International Funds a lot of innovation. To put it another way, if they did not have the same cost, theyll would probably not be making much money right now. I think they would just spend less money. What is it internally, bret . What is the focus on what to spend, how much to spend . They have tremendous returns on equity and tremendous profits as well. How do they think about spending within google . Over has evolved a lot time. It started growing large after bubble burst. When i left college, one of the only two hiring i did not think about that. They got all of the best engineers and Business People because there were not many jobs left. At the time, it was a bit of a freeforall. Google a lot not me. Not new, but a lot of people did. At one point around 2006, it got formalized into this what is it 80 15 5. Search, 15 on peripheral projects and then 5 on out there projects not directly related to core businesses. That changed a lot after larry ceo when heer as had the more wood behind fewer arrows mandate. That was three years ago about when we started bloomberg west. A lot of the moonshot explorations are doing in google x and a lot more Iterative Product Development in the core areas with a focus on unifying the product line. Always awas the raw focus on getting to a profit or this thing has to have a 40 operating return . When i was there, that was really not in the picture rattled. It was about building a product users love and getting the scale. Let me unpack that just a little bit. Make Something Big and widely used even if it costs more . With part of interesting about googles business is you really cannot make it interesting unless you have scale, a product that you use because you are monetizing at pennies per ad click. Youre focusing on getting to a product that lots of people loved and used. In terms of bringing in the coin, what was the approach of google in the last five or 10 years about ringing in money and selling ads . How did not evolve . Google focused on building something that consumers like. Once you got a decent audience, then how do you make money . The first goal is to push it fast, iterate fast, and then to say that this is a product therefore its ok to sell ads. Occasionally they would be subscription based. How do you get the right ad to the right consumer at the right time . Does it hurt the Consumer Experience . Then ramp up slowly once we have the right model. Why does google do this crazy stuff that is so far from search . A self driving car is not organizing the worlds information. I think larry and sergei started with an academic start. When i got to google the most distinctive thought was how ambitious and academic itself. People were willing to take very complex approaches and not be intimidated by that prospect. The culture of google is really unique and why it is such an Enduring Company is theyre willing to work on Technology Problems that scare other companies away. Its a credit to them t