Transcripts For BLOOMBERG Bloomberg West 20151013 : vimarsan

BLOOMBERG Bloomberg West October 13, 2015

I will have all the details. And Fantasy Sports sites track record weekend with pro football fans despite the controversy. First, to our lead and the biggest tech takeover ever. Dell agreeing to buy emc for 67 billion. Dell is adding almost 50 billion to it that load on top of the 11 billion its carrying for dell. Its amid the hottest product lineup in an ever more competitive environment. For emc, the buyout will hopefully satisfy activist investors looking for growth. Dell will assume an 80 stake in vmware, which will remain a publicly traded company. Joining me now is a partner at greylock capital who worked there for a decade and alex sherman, our m a reporter at bloomberg. Lets start with you. Lay it all out for us. Alex the idea is dell is one of several large, Legacy Tech Companies whose in many ways best days are behind them and they are trying to figure out what is the next depth forward for us. Part one of that plan was to go private and refocus on the enterprise segment to get away from what we all know dell as from a consumer pc Product Company to a company that Services Information technology at small and mediumsize businesses. Emc is a Large Enterprise Company and whose core competency is storage rather than servers for dell. Emily do you see them getting out of the business . Jerry pcs are declining and everyones moving to a mobile, tablet world. If you are dell, why would you spend more time in a lowmargin pc business to pursue the storage business . Emily what is the amount of debt they are taking on . Can they pull this off . Alex i wish i knew the answer to that. Meg whitman just put out a memo to her own clients. Take this with a grain of salt because hp and emc last year were deep into discussions to do a deal themselves. But they said dell will need to pay off 2. 5 billion every year. Thats not going to go into r d or getting into the cloud. Emily she came out saying this is a real opportunity and they are going to have to radically reduce r d and it will create disruption as they rationalize channel programs and leadership. I feel like when people are comparing this to hp and compaq, whenever a big tech deals like this happens, it does not go well. Can this go well . Jerry history would indicate that its not going to go well. At best you had hp which did the largest m a and is now splitting itself off and now dow is taking dell is taking the mantle. Maybe in a few years, they will realize smarter is better and split themselves off. Emily why do this . One is being a private company. The deal is with activists shareholders. Number two is consolidation. You are looking at markets where you have four or five mega buyers. Dell wants to get enough size and mass and technology and be Technology Provider to these customers. Emily it is interesting that you see them going against the tide Mark Andreessen says he expects a lot of Tech Companies to break up. Who knows if that will happen. Are we expecting more big m a or a more big tech breakup . Alex thats a great point. Hp almost did the deal with emc. That may have been plan b. I think well see other Big Companies split up because thats a trend we have seen symantec, ebay the one everyone speculates is will ibm split up . They need to do something, so to your point, what is that something . Its either a big m a transaction or breaking up. Emily jerry, what the you think . Jerry hp is not a consumer business focus on markets and customers and serve that customers serve the customer to the end. Ibm has been doing this for assetsshedding noncore and retooling themselves as end toienend consultants. I dont know whats left in the cupboard for ibm to financially engineer. We have to figure out what areas are surrounded by services. A big gain on these technologies like dockers and containers and , thats going to list a bunch of i. T. Services. I dont think they are going to buy a Large Company like dell emc. We are really in the consulting business. Emily do you think they could take on aws . Jerry i dont see it. You look at the assets they have. It takes billions of dollars and lots of know how to retool your business and be a public crowd divider. I was at amazons Conference Last Week and they are so far ahead, i dont see them catching up. Dell and emc have on Premise Software and they are not used to selling per container , her transaction deals. Alex its useful to point out that what has save them is the 625 million acquisition of vmware, not 50 billion dollar deal. Emily it will be interesting to watch how they treat vm going forward. I will be in austin speaking with michael dell about all of this next week at dell world. The social network the social network is trying to look more like the shopping network. Facebook is adding a shopping section to its mobile app. Facebook is looking at ways to lure users into making purchases. The company says it wont be taking a cut out of revenue generated by consumer transactions. Instead, if facebook hopes to make its advertising more effective to make it better for what people are buying. They have too tested over the holidays. Coming up, my exclusive interview with steve wozniacki. And what about being played by seth rogen . Emily the movie is out and one critical review is in Aaron Sorkins steve jobs is in and has been well received by hollywood critics. In silicon valley, a different story. Steve wozniak enjoyed the film, but not because it has anything to do with reality. I sat down with him earlier in an exclusive interview. Steve this movie was topnotch professional the script and how well the actors played it and the cinematography, i was not familiar with Aaron Sorkins work because i dont watch television. This was the first time i saw it. It was unbelievable to me. Emily and you actually spoke with him leading into this film. Tell me about your role. Steve we talked for hours and hours, anything i could think of saying. Tiny bits that got used and painted in a different way and different place. Emily and you spent hours with him on the phone or in person to. Steve in person. Emily did you guys argue or anything . Steve i never once looked at the script. I did not feel it was appropriate for anyone to look at the script and say it didnt happen this way. It is his art. When youre close to something, every movie ive seen about apple, they have the same people and their personalities are wrong. These are not the things we would have done and after a while, you realize its the artistic freedom to make a movie that is enjoyable. Emily some have said there are a lot of things in this movie that didnt actually happen. Would you say that . Steve maybe everything in the movie didnt happen, but its all based on things that did happen. Every scene that i am in, i was not talking to steve jobs at those events. I dont even say things like that. I dont say them. They were based upon things for example, there were examples of me saying please acknowledge the apple ii for 15 years like i would do that . That was based on one shareholders meeting. The people in the apple ii division were ready to quit. But on their behalf, i was there only voice. I called john, not steve jobs. Things really get built into a movie. There are myths about me and steve jobs in those come out more along the lines of the myth and not reality. Emily what is the myth and what is the reality . Steve i was so gung ho for every project he introduced. I thought they were good because they came from steve jobs. One of them was the macintosh he portrays it like a bunch of people were for the apple ii and not the macintosh. He showed me the 1984 commercial privately and said the board voted it down. It was not going to show at the super bowl. I was shocked and said part of the reason was because it cost 800,000. I said i would pay 400,000 if you pay 400,000 and we can show this ad and we should show it because this is us. Even john scully believed in the macintosh. Its just that you have to manage a business and its going to take three years to build a market and steve did not understand that. These kinds of interactions come out in the movie. Steve jobs was good and they didnt listen to him and messed up apple thats not the movie is not about reality. The movie is about personalities. How would a discussion between steve and john scully go down . They even show them meeting at a later date. Steve never talked to john after that. Emily if as you say, everything in the movie didnt happen maybe, does it matter that this becomes the popular understanding of what did happen . Steve in the background of what was going on, everyone knows the story of the evolution of personal computers and the evolution of apple products. Everyone knows that. This was in private meetings that are never on video. How did steve interact with people on a daily basis and it shows different sides of Stephen Steve in that regard. Emily so you are saying it doesnt matter . It matters that its a great movie. This is a product. If steve jobs were making movies as his product, this is the kind of quality he would want. Emily lets talk about seth rogens portrayal of you . Steve i liked it very much. The character that he played, doing things that i didnt do, different places, times, ways, i liked the way he played it. Even him doing things in ways that i would not i admired that character even know it said words i could never say. I would say what he did was more important the way he says it back to me. I would never call steve an epithet. I would never do that in life. I just cant. Emily did you ever talk to seth . Steve yes. Emily tell me about that. Steve hes one of the coolest actors in my mind. Im glad they picked him to portray me. He says i usually dont lay people who are smarter than me. Emily tim cook said he felt the movie was opportunistic and johnny ives said he felt like steves image had been hijacked. What do you make of that . Steve those comments got to me deeply and i started inking it started thinking, yeah, it is opportunistic on someones life, but any thing any business does is opportunistic. This has taken a persons reputation. The thing is, steve jobs has multiple sites to his personality that hes known for. Hes known for greatness and thinking ahead. Great products look at the ipod , and the iphone. That was the start of it, how music is sold. These movies all go back to a former part of time thats not up to that point in time when those things happened. There are hundreds of cases i know firsthand experiences where steve did things, how could any human being do this . Unfortunately, a legacy has to live with the truth or not. Emily have you ever been asked to take a role that is ceremonial at apple . Would you like to be more involved in the day today there. Daytoday there. Steve steve jobs asked me questions like that near the time he was dying you want to come back to apple . I love the life i have. I get to go around and talk to highschoolers and University Students and inspire them to want to have the creation of technology and make that part of their business. Emily what did he want you to do . Steve maybe some little role, but i told him frankly, im sorry, running Big Companies to the organization, the personal ethics versus the is this ethics. I couldnt do it. Im not the right person for that. Emily steve wozniak. You can catch the full interview on bloomberg. Com. As always he had a lot more to , say. This week, draft kings learned that the old saying is true there is no such thing as bad publicity. A record 7. 1 Million People entered tournaments for the nfl games leading to the guest weekend ever for the two Fantasy Sports companies. The record weekend comes despite the controversy over a draft kings employee who won 350,000 on a rival site. Employees are banned from entering any daily fantasy tournament. But it seems to have only brought the company more users. Coming up, airbnb Ceo Brian Chesky says if an ipos in the future and how he feels about being compared to her. And the husband and Wife Team Behind a billion dollar startup tells us about their behindthescenes business. Emily a potential setback for Ride Hailing Services in china the government has said it would ban the use of private cars for taxi hailing services. Both companies have raised millions of dollars from investors to expand in china. The airbnb ceo discussed ubers growing problems earlier today and describes how his company is different. Brian one think people will say is that airbnb is a collaborative company. Cities around the world say they like working with us. I dont see us battling cities. We are a company that brings people together. They lived together every night. If a Company Brings people into other peoples homes you dont want to be a brand that is fighting. Emily he says he has no plans to take airbnb public in the next few years. He says he is not concerned with competition from hotels and has plans to be accessible everywhere. Airbnb is one of more than 500 brands using software made by the newly minted unicorn, medallia. They are in the business of Customer Experience management. Oneed the vc firm to make of its best investment ever. Cofounders borge hald and amy pressman join me now. Obviously it is getting a lot of attention, but this is not a household name. What do you do . Airbnb is a customer. What do you do for airbnb . Amy we gather Customer Feedback everywhere, from media for, from surveys, Call Center Data and we , put it together and hard the wire that data throughout the organization so that everyone in the company can take action to improve the Customer Experience. Emily explain how that would work in a situation with airbnb. Borge airbnb uses ratings online. That is one thing they do. The other thing they are concerned about is what the renters think. So we capture feedback from a lot of different parties that are important and have them great analytics. The key thing is there are people within airbnb that can now specifically take action to make sure those constituents are excited about working with them. Emily who are your competitors . Amy great question. Theres not a single competitor. We meet different people in different scenarios and the reason is, we are a platform, so we have this as part of our social Media Monitoring and we meet different competitors in different situations. Emily the story behind your company is so fascinating. You didnt take any outside funding and built this for 10 years and then sequoia was trying to chase you down. What happened . Borge you are right. We did bootstrap and it was awesome and what we realized is you come into 2010 and social media was really changing the whole space. Customer experience has never been more important we realized this is going to be a global category and we need to be the company that runs that and we needed capital. Emily the most interesting thing about your story to me is that you guys are husband and wife. What is it like growing a billiondollar company with your spouse . How does that impact how you run the business . Borge when we started out, we naively did not think eight or 10 years into the future, but it has been phenomenal. We are incredibly complimentary. N our skill sets i dont know if you have something to add. Amy what cofounders arent married . Emily they dont go home to each other every night. How many kids do you have . Amy three. We have some interesting dinnertable conversations. You are at a billion plus evaluation. How far north are we talking about here in the whole unicorn mantra . Borge we are not super excited about focusing on valuation. We are here to build a longterm business. We want to change the world. We want a world where customers are truly in love with the customers who serve them. It is significantly north of a billion dollars, but thats not our objective. Emily what is next . Amy this is just the beginning of our journey. More growth. We are focusing on scale and global with our lot of Systems Integrators and mobile System Integrators so we can get much larger. Emily amy pressman and borge hald, cofounders and husbandandwife. Thank you so much for joining us. That doesnt for this edition of bloomberg wes. Tomorrow, we will be talking all about intel. From our studios in new york city, this is charlie rose. Charlie russia and syria continued attacks on opposition groups. U. S. Defense secretary ash carter criticized russia at a nato meeting in brussels. They have initiated a joint ground offensive, shattering the facade that they are there to fight isil. This will have consequences for russia itself. Which is rightfully fearful of attack upon russia

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