Just as investors criticize the company for its tumbler investment, yahoo is close to another deal. Yahoo s also buying a Small Company called message me. And tesla will unveil auto pilot to be announced next week. Will this selfdriving sales job really fly . Theres been buzz about new ipads for months. Now were learning just when theyll be unveiled. Apples unveiling a new fullsized ipad and a mini ipad. Just in time for the Holiday Shopping season, according to a person familiar with the matter. Apples counting on these new ipads, which are said to include a gold colored option, to reverse plummeting tablet sales. It tries to reduce its reliance on the iphone which now accounts for roughly half of apples revenues. The growth rate of tablet sales has been amazing and really almost all of that has been the ipad. Yet weve seen this surprising stall in that growth. Almost as surprising as the growth itself. Yeah. I think as the platform diversifies and as you have different products, different price points, the phones getting bigger and the tablets getting smaller, i think that the ecosystem is starting to figure itself out. What is the price point across each of these devices . And what is the screen size across each of these devices and what is the use case across each of these devices . I think were sort of the dust is finally settling. And the other part is the corporate use of tablets. Thats still projected to grow. If you look at all of these products, i think well start to find a balance between what the phone is going to be used for, what we will pay for the phone, and what the tablets going to be used for and what were going to pay for it. We talk about the Corporate Market figuring it self out. One thing we dont know about this product is whether the rumored 12inch ipad will be announced. Is that a Corporate Market device . If you look so, we use i. D. C. Numbers. If you look at the 2013 to 2018 projections youll see that the tablet market is expected to grow roughly 10 . But if you look at the corporate ecosystem within that, thats projected to grow almost a little bit more than double. 20 over the same time period. So theres room for corporate tablet adoption but the question is, and theyre not as price sensitive as the consumer is, so the question is, what are the features . Is it larger sized, is it the inclusion of a keyboard, is it control over the ecosystem that the i. T. Guy needs to have in order to make it corporate friendly . Those are all the things that need to be figured out for corporate adoption to sort of take off. So therefore when this announcement comes, clearly this time of year you announce products because you want to sell them during the holidays. When you sell them during the holidays, its not budget flush. Its more likely consumerfacing. Are there things in this announcement that you will be looking for that may speak to the corporate environment and different security options, different functionality in and of itself . Right. I want to see i think that with the adoption of a larger screen, as well as more clarity on pricing and the lower you want to see a platform broaden itself out. Right now if you look at it, youve got tablets starting 299, 399 and 499 across different the mini and the regular versions, across retina and nonretina versions, so you want to see that expand. Number two, you want to see pricing and screen sizes achieve some sort of clarity. They need to be clear definitions and people ought to know, if i need a tablet for this sort of scenario, thats the tablet im going to pay for and thats a screen size i need. You want to see some clarity around that. Number three pricing and number four, you want to see some big announcements around corporations as we go through the end of the year. I think those are the sort of four key things and obviously the colors also help. Who doesnt like a little bit of color . Our senior analyst. Thank you. To other late news today. We see lots of interesting news. Yahoo the lead investor in snap chat. Its a Company Without revenues. Yahoo s interested. Maybe because of the way alibaba went. They brought that into the yahoo coffers, 9 billion with that i. P. O. Just last month. So the question is, could snapchat be yahoo s next alibaba . Also in new york is june group c. E. O. Let me start with you. Why such excitement about alibaba . Im sorry, snapchat . Theres so much startups, so little time. Yeah, theres a lot of excitement around alibaba as well. Snapchat represents an evolution in email. If you think about email as being old school, which is tough for some of us to do, you have it evolving into instagram and then snapchat is the way a lot of millennials like to communicate. If yahoo is true to its word, it wants two things. It wants to be very mobile and obviously snapchat solves that for them. And it wants to be a habit, every day. I think for a lot of millennials, that is check and check. Weve heard about a round for snapchat for a while. Is there really a round happening . Is there a lot of investor interest in this thing and from whom . There is absolutely investor interest and we have heard about this round going on for quite a while now. Everyone who deals with snapchat has to be super secretive. Its a very secretive company. But it really could be worth 10 billion. Thats what were hearing from our sources. And one of the reasons is the very high engagement, the last numbers that came out were 700 snaps per day. Im sure its much higher than that now. Ive been talking to advertisers all week as you know and they cant wait to get their hands on it. But of course there is no advertising to speak of yet. Theres no revenue. Maybe im just oldfashioned but i imagine businesses being profitable, let alone revenuecreating. But so the investors are smarter than i am. Surely, what do they see here . Sometimes they are, sometimes theyre not. I think they see lots and lots of eye balls and i think they see eye balls that are tough to reach in the form of millennials. That is how a lot of these businesses get valuated and sometimes it works out, sometimes it doesnt. If you think back to youtube, they didnt have any revenue either and google was heavily criticized for that purchase and its turned out to be a big win for them. I think that thats what you look for in these kinds of things and there are busts also. The tumbler acquisition, kind of the jurys out on that one. That was another highprofile yahoo investment and well see where it goes. Im not sure that anyone could really say thats been a success yet. What does it mean if yahoo s an investor . Does it mean something strategic that they imagine and incorporate in their service or is it like earlier investments like alibaba and people forget, manly because its a secret, but yahoo was an investor in google. Google came around and ate yahoo s lunch. They made money on the deal but that was it. Yahoo , who knows if this is the beginning of whatever it could be, but they dont have a Venture Capital arm. So it looks like theyre just making investments in products that they think will succeed. Of course yahoo is known as the company that buys up a lot of failing startups on the low end, right . They bought message me for less money than investors put into it today. So theyre playing all across the spectrum here. Yahoo needs to be cool again and this is part of the picture. And with snapchat, the other thing you need to think about with the valuation, is evan spiegel turned down facebooks offer for about 3 billion last year. So what youre dealing with is his idea of how much his company is worth. We actually dont know the company hasnt given any numbers for how many viewers they have, how many users they have. The controversial young c. E. O. Thank you very much. We appreciate your time. Thanks. One of the largest cyberattacks ever all started with a lousy single employee password. Up next, were going to look at the lessons that can be learned from the massive hack attack of jpmorgan chase. Im cory johnson. This is bloomberg west. Jpmorgan chase discloses the size of its data breach in one of the largest cyberattacks ever. The data on 76 million households, seven million small businesses, all discovered by hackers. Thats 2 3 of the u. S. Households affected. User content of information was swiped. But theres no evidence the hackers took account numbers, passwords, birthday and Social Security numbers, if you believe what jpmorgan has to say today. This happened after hackers exploited a single employee users name and password and wormed their way through the system for months. Earlier i spoke to our Center Editor and tripwire security. I started by asking if this was an unusual approach for the hackers to take . No, actually. Especially with the retail breaches weve seen. Finding different side channels. In target they were able to go in and compromise the system through a trusted business partner. Targeting employees, you know, in their home networks, generally those are going to be less secure than the corporate network. So it makes it a very easy target. 2 3 of americans. Thats an amazing number. Yeah. I mean, its to the point you really i mean, this year, lets just say, its to the point this year that its almost impossible to be shocked anymore. The scale of these intrusions have gotten so large that you look at a number like this and you say, wow, thats really big but its remarkable both in terms of the duration of these things, you know, in this case it sounds like they were in there for at least a month, possibly longer, and that was a similar situation with home depot as well, earlier in the year. I mean, so its not just the scale, its how long theyre inside the systems before people notice, which on both levels is remarkable. Yeah. Let me ask you also. When we look at sort of the size of this, its amazing number. Weve seen so many of these, perhaps weve become inured to this point. In this case, you know, jpmorgan came out and said, we are spending more they gave an exact number, about how much theyre spending on this, into the hundreds of millions last year. And yet they still got hacked. Right. A lot of businesses need to be aware of that. We always say that its not a matter of if youre going to be breached but when. And this is a good example of that. If attackers want in, theyre going to find a way in. Be it through a remote port, an application has a vulnerability, or of course people. Phishing attacks very common. I think jpmorgan did some good things here. This could have been a lot worse. The information that was compromised was limited to name and phone number and address. No Financial Information was compromised and no passwords were compromised. So thats actually a good thing here. That they actually were able to protect the inside of their network and secure the data. So there are some good things about this particular case. If thats the case. Its not clear to me, i mean, thats what jpmorgan is saying, that theres no evidence that further information was collected, but i mean, and not to force them to disprove a negative, but theres also no evidence that some of that information wasnt collected, right . My understanding of what theyve said so far is that it seems to be limited to some basic information. But given the duration of time inside the system, its just not clear to me that we have a really good handle on what information was collected. And their reassurances so far seem really tepid to me. What weve seen in the past from a lot of these things, what weve seen from so many of these are drib drabs of information. We saw that disastrously with target. Where every single week or so wed get new information that it was worse and worse. Bigger and bigger. And that in fact the initial sort of promises that, hey this wasnt that bad, actually seemed to get worse. Is there any reason to think jpmorgans different here . Right. You raise a really good point. When there is an issue like this, when there is a breach, its very difficult for businesses to identify the scope of that breach. And look how long it took them to actually provide that information. Theyve had security teams working on this for a pretty long period of time. So thats why im assuming that given the amount of times theyve done to do this research, they wanted to be able to wait before they could actually speak with confidence as to what information was actually compromised. Theres still a chance more information could have been compromised but so far from what theyre telling us, you know, id like to believe them. That was ken weston of tripwire security and bloombergs paul. Up next, tesla isnt tripping, its hitting the gas, on an automated driving feature. Find out what they are and how it could impact teslas business next. Im cory johnson and this is bloomberg west. Teslas adding some features to the model s that suggests a driverless car . Its new capabilities will be revealed in an announcement next week. The news comes after the c. E. O. Posted on twitter that the electric car make already, quote, unveil something else. It included a photo of a tesla. The date october 9. Joining me now is our bloomberg tech reporter. First of all, this announcement, i guess, i was wrong about the dog . It looked like the garage door was open just enough to let the dog get under. No one knows the extent of the announcement. We think we just have part of it so far. Whats that . Basically, if youre buying tesla, unless youre cory johnson, its an expensive vehicle, so youre up against the b. M. W. s and mercedes of this world. Basically the average cost is about 95,000 per car last quarter. A lot of the competition amongst that bracket right now is whats called advanced driver assistance, lane keeping, automatic parking, the improved stop you running into the back of other vehicles. That kind of feature. Speaking of my fantasy life, i got inside of an audi, the new one, and it has a headsup display. That kind of hightech driver assistance. Is that really driverless or is that just driver assisted . You mentioned the audi. One drove itself onto the stage. Really . But that obviously there are a lot of regulatory issues. There are a lot of other issues in terms of testing that need to actually happen before we really get there. Before the regulators are going to allow cars to drive themselves. No ones more of a showman in the car industry possibly than elon musk. Talk to me about sort of what this means . They bill themselves as a Technology Company. If you dont have the latest technology, then how can you call yourself a Technology Company . Right now weve seen the model s has a huge 17inch touch screen and it adds a lot of in a sense, the last generation of technology, which was the entertainment stuff, that was the revolution that they were a part of. Other automakers have passed them in bringing other electronics into the vehicle. Passed tesla. So last i checked, you were the chip reporter. Here you are doing these automotive stories. Whats going on with the chip business and the car business . Because cars have actually been a Huge Consumer of chips over the last decade. Its on the up and up. As weve reported, Companies Like invidia and intel, they want to talk about vehicles. Theyre looking for hundreds of millions of units and they see vehicles as one of them because theres so much electronics going into it. You need a strong brain. Take, for example, invidia. Lets back track. Were not talking national semiconductor, analog chips that make this signal go to this signal, but essentially funky compacitors. Were talking about graphics processer to the most powerful computers, visual things ever done. Thats absolutely right. If you want to trust your car to be driving at speed and not drive into the back of some vehicle that slowed down immediately in front of it, what do you need . You need the ability to process those images as fast as is possible and send a signal to the car. Whats best way of doing that . With a graphics processer. Thats really interesting. It also makes me think, we see these stories about subprime lending into the auto sector and what could that mean beyond the auto sector . But were really talking about Technology Going into the auto business, Technology Going into every business, means that if the auto sectors of the overall economy, it actually can affect the tech sector in a big way. Its a great story. If auto sales go up 5 , down 10 , it doesnt really hurt them particularly because theres 10 , 20 , 30 more chips this cars every year. Specifically, do we think this is tesla playing catchup or are they going to play a leap frog here . Thats what were not in a position to be able to say right now. Depends on the sweep of capabilities that they bring, how they integrate them together. Ian king knows whats going on. Thank you very much, we appreciate it. Were going to look at what and where and when and why, thats next. Youre watching bloomberg west. We focus on innovation, technology and the future of business. From fred wilson, to some of the loudest voices in Venture Capital, a warning that theyre burning through cash and way too fast. When the market turns, and it will turn, well find out who has been swimming without their trunks on. Many highburn Rate Companies will vaporize. So moneys sloshing around, we know that. Its getting spent, we know that too. But still, some startups need some help getting from point a to point b. I sat down with a man who does just that. Heres his definition. A super angel is one of the most unfortunate words ever selected for describing something. Youre super. You have that going for you. Great. Super angel though is an institutional venture fund of small size. This word super angel got coined as a result of individual angels writing bigger and bigger checks and making their own Family Office essentially the bank. And we now are stuck with a word that actually is the opposite what have it means. Were institutional seed funds. But you guys are looking at to me whats interesting is that youre in this place. After the angel, the seed round, hey, i though this rich guy and ive got a great idea, but you guys are almost there in a bridging capacity, yes . Its amazing whats happening right now. Its like theres two completely parallel universes of Venture Capital. You have the big firms. Theyre trying to write 10 million checks, then you have microv. C. Firms. Were trying to put 500,000 in. The two worlds have completely different views of how the companies are, how theyre growing, and one of the big concerns right now, for example, among the big venture firms, is while the burn rates get really high, well, when you put 30 million into a reasonably early stage company, the burn rates going to go up. In o