Coming up, a happy birthday for jack dorsey. The stock surging on its first as a Public Company. I spoke with jack about the ipl. And investors lining up for a date with match group, pricing at the low in of its ipo range. And more trouble for Marissa Mayer. A shot fired, telling the company not to spin off its stake in alibaba. Square surging in its first day of trading. Pricing at just nine dollars a share. The company had been marketing shares at an 1113 dollar range. Prices would have given a valuation below the 6 billion that in its last private financing round. Was it a day to celebrate or breathe a sigh of relief . Here is jack dorsey with me. Im excited. It is something that has been a long road. What will accelerate business and help us build the tools that serve customers in the right way. Im excited to get back to work. They i caught up with square cfo. She described the disparity in the valuation. Ultimately i dont know if we can get into the disparity. We do what we can do best. Try to focus a think about what square is here to do, got to build the company. A big impact. That is what we are going to stay focused on. Today is one point on that road. Emily revenue is growing fast that it is going down. Over the long term they are looking at 2025 growth. Will are a company that stay in the hypergrowth module. We are so excited. Great products like square capital. Growth youling the see today. We are building a platform that is disruptive. Atn i look 510 years i Look Technology companies that sustain 20 plus percent growth. We have been talking to experts who say that i am not convinced this is more than a low margin payment process. How would you respond . Completely disagree. We are building a technology program. Analytics. Ardware, we add on Services Like score capital and payroll because of the cohesion we see of our platform. Emily you think it is a technology company. Absolutely. We get paid the a Business Model. When they grow, we grow. Unlike if i had a Software Model fee, i was paid a fixed will they get with a payments model is it scales with their growth. That outlines everyones incentive. Reporter lets talk about your own role and how have you stepped up . Part of aely, being company like square, it is an amazing opportunity. What jack is great at driving, we are owners of this company. It is not just about being pigeonholed into one role. I have an ability to drive one of our products. I think going for this process in the next couple of months i have empathy for that because that is what we have been doing. It keeps us honest and true north of why we show up. Emily lets talk about the noncore businesses. Which of these do you see the potential to become a real significant revenue stream . There are two i feel most excited about. Square capital, and are customer management product. They build on the assets of square. We have the data. We know how to underwrite sellers in a responsible and well done way. Base ofthis huge fac sellers. We dont have to go out to give them capital, we have grown it to 300 million originated with zero marketing dollars. That is an amazing product. We have the links between the buyer and the seller. In the online world people expect to do that. It is read to be able to link a loyalty offer like have a free the customer came back and show the seller that campaign worked. Does this become 5 of your business . Cup if you look today , square you look capital is at significant scale. Emily closest of five . We have not broken into parts. It is at significant scale at this time. When i look into it there is somewhat opportunity. It is going to be a big business. Mine theur job is to bottom line. Seedo you when do you paring down losses . I think about as margin. If you look at the discipline of square, versus the first three of last year, we saw 18 point improvement. If you look at how it is trending, it broke even. We showed we have discipline even though we are growing at 60 plus percent. It is a very grateful are right now. The street at what is saying, look for next year. We are going to be [inaudible] we see a time opportunity. I was talking to jack about the executive theme. He is time constraint. How do you decide when to go to jack . Jack is always there. He is engaged. I think what jack does well is he is good at empowering people and letting you run with things. Product,e example of a which is unique, and only jack would do that because he tends skilln into the set. There is no way it should be done. There is the way we should see it in the world. Part of the is staff. I dont see a difference right now. The square cfo speaking with me in the new york stock exchange. Another stock we are watching, intel shares climbing after an investor event. Grow in the middigit percentage range. They address concerns they are suffering from a slowing pc market. Intel is cutting losses in mobile. As we go into 2016 we are forecasting and 800 million improvement for these products. The majority will come from product margins. Boasted quarterly shares. View. Up, the investors his firm is the largest shareholder in square after dorsey. He is the former square coo. Emily a stock we are watching, best buy. Shares falling to the lowest level in three months. They told investors the u. S. Inket Tech Products worsened the Third Quarter and Holiday Season will not be much better. The drag was tablets. Spot, ultrahigh death tvs High Definition televisions. It turned out to be a banner day for jack dorsey. His birthday and squares public debut. The stock surged, 45 today giving a market cap of 4. 2 billion. Jack dorsey gave a oneday paper gain. Here is my interview with jack dorsey. I asked about the notion square did not end up live up to its private notion. This is a fundraising event for us. Money to continue to build the business and make sure we are serving ourselves better. Emily where you going to focus . On our new reader. We want to see that on the other side of every transaction. To not evenyone have to think about it. My mom open the market today. It was amazing. About weve been talking your executive bench. Do you think you are going to need to hire a president or coo . Emily we have a significant bench. I am proud of our team. We have one of the best coordinators in the world. Our focus is on what we need to go forward. It is a great team. Emily is there a c eo that inspires you . Emily bob iger. I learned from him every single day. He is not just a great coo. He is a great leader. He runs a business that has multiple parts to it. They feel empowered. It is diversified and consistent. They have stuck to the purpose of how the company was founded. Everything that walt disney started with is still in the company today. It is something we can all learn for learn from. Walt disney was the First Technology company, the first ecosystem company. It focused on experiences. It is fantastic. Emily what do you think your biggest challenge is going to be as coo . Building the strength of the game, recruiting and making sure were building the right experiences people love. If they love using the tools we are good. Emily what markets are you focused on for growth . We are in japan and canada, the United States. In the United States there are 20 million Small Businesses that dont accept credit cards. Their 85 million Small Businesses around the world that dont. Emily any countries in particular . We have a pilot in australia and then we will look for the right market at the right time. Emily joining me from san coo ofco, the former square. One of the biggest shareholders. Im going to ask you about the coo russian. He politely punted on that one. What is your reaction to the debut today ending up at 13 a share, pricing two dollars below the marketed range . It is a major milestone for the company and Small Businesses. I think the ipo is going to boost awareness. It makes it easier for sellers and Small Businesses to thrive as a business. More of them will be aware of square as an option. That will help boost growth. It gives the company more resources which they can use to convert into more traction in the market. It has been great for everybody. Emily what you make of the disparity between the 6 billion todayion and 4. 2 billion . Does the alarm you . I think it is distracting. Evaluation at any one point in time doesnt matter. I treated yesterday that paypal it is now worth 31 million. When i moved out to silicon public,netflix went amazon went public. None of these initial prices really matter. Emily what do you make of the notion that square is the first of the unicorns to go public and it didnt live up to its private market expectation, is that a fair comparison . Like snow. I think again, the history of square will be written years in the future. The question is, it is only in the second and third inning of its arc of history and it has a lot to do, and initial product that will expand to Small Businesses, converging on square as the operating system. There was a host of competitors that wanted to offer attractive products but all of the have failed from amazon to groupon to paypal. Square is dominating the most important segment of growth. You will see that. Then what is square worth . Emily it has this bright future. Unicorns out there, what is the future for the rest of them . There is a mixed bag. Some of them are going to be the most Important Companies in the world and some are probably going to fail. It is hard to discriminate from afar. To opine onhard companies i dont have visibility into. All of your metrics become fair game and everyone has access to them and can make an informed judgment but it would be difficult and precarious to opine businesses that all you know about is through reading in the media. Emily we have talked about house where is dominating Small Businesses. We got a quote from an analyst said paypal has a big lead with small merchants which will make it difficult for square to expand beyond payments. Square doesnt have the user base on the customer side to generate the Network Effects paypal has more on the merchant site for that matter. What is your response . I havent met a single business in the world that runs paypal products and services in the real world. Online they have been successful and will continue to be for a while. I have i look around every day trying to find somebody who uses paypal to run their business and have yet to find one. There is some truth to the Online Transactions that paypal processes that have a network of fact. Metrics, it ise starting to erode. More and more people are processing paypal transactions through credit cards rather than using their paypal account. Theyll pose a problem in the long run. After the break i will ask about what you think about jack dorsey doing both of these jobs at square and twitter. More with him next, and still ahead Marissa Mayer future at yahoo is being question. This hour. Later ended fourres dollars above its listing price but questions remain about whether jack dorsey can be the ceo for the long haul. You probably know better than anyone outside of the company. Thinko you think, do you for the longer term that he can remain the ceo of square and twitter . I believe so. It gets easier and not more difficult. The company is still in the drafting phases of what it will become over time. As you create more network affect, as you have more traction in the market, the incremental decisions get easier and then you are mostly doing strategy and editing. It can be done across multiple companies easier than doing the hard work. Over time this will be very scalable. Emily square is not a Public Company. , everylic companies herter, to earnings calls, doesnt recommend it. Steve jobs said it was deplorable. There is a difference between recommending and can it be successful. Spacex is going to be a Public Company, worth 20 billion plus. It is going to succeed at this horrible job. Steve was extremely successful at both companies. Even if most would not want to thet, it doesnt mean that people who want to do it, who embrace the stress dont thrive at it. Emily do you think jack needs to hire a coo . No but the team you build is the company you build. To both companies have the right town or leadership, or the right energy. To have significant leaders in each functional unit. Or yound a president dont have that cohesive team, historically in Silicon Valley you wouldnt want to have a president and coo. That is a crutch to emily is it a crutch for him at twitter or facebook. It is an alternative structure but the preferable is to most of the advice have significant leaders in each functional unit. Where it well is when the ceo wants to play both at the same time. Mark is driving the product. That is true at yelp. In that structure i see it can be a logical solution. Emily we will talk more about yahoo coming up. More bloomberg west is next. The only way to get better is to challenge yourself, and thats what were doing at xfinity. We are challenging ourselves to improve every aspect of your experience. And this includes our commitment to being on time. Every time. Thats why if were ever late for an appointment, well credit your account 20. Its our promise to you. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Emily it is 6 30 p. M. Thursday in new york, 7 30 in hong kong where we are joined by heidi. Good evening. The bank of japan is adding [indiscernible] he is pointing out slow wage growth is still a program problem but stressing the need for Japanese Companies to raise spending. The apec summit has wrapped up in manila after discussions dominated by terrorism. Y announced the attacks they denounced the attacks in paris and vowed to stop militants. Growth,o say prosperity, and opportunity of powerful tools to address radicalization. They have been boosting shares. Further pressure on chinese borrowers to the point that some say firms have entered into a ponzi stage to meet obligations. Wind Securities Company says the amount of loans and financing covering Interest Payments will rise to 1. 2 trillion. Emily beijing historically has allowed companies to fail. How do you expect this to play out . This is a sensitive balancing out. There is no question the corporate onshore defaults has gone up. Just one from 2014. We had a cement Company Default last week. Hasa state own giant postpone payments. It is point to be a matter of managing these companies. Some of them are simply too politically sensitive to let go. Emily all right. Thank you. A warning from activist investor to the yahoo board. Change your alibaba strategy or face a proxy fight. Star board asked yahoo not to spin off its stake in alibaba. They are asking yahoo to sell its search and display advertising businesses. The enterprise value is 31. 2 billion but excluding alibaba and partial ownership, the core business is actually worth 2 million. , my guess to discuss to has been covering the story. Yahoo ard is saying that , the core of yahoo is worth 2 billion. How realistic is a proxy fight now . The 2 billion valuation sounds low considering these assets they have. Revenue for billion dollars a year. Some people say zero. Depending on what happens with this been out its been out. It is still very supportive of management. They want to execute on this spin out they say is going to happen in january. They will sell the shares along with japan. Emily the concern is if they oh billionsy could of dollars in taxes and shareholders would be on the hook for them. What do you think . Great question. , thes been a long time market has price that into the market cap. They have some discount associated already. It should basically be a fair market transaction. Emily at the same time analysts are saying Marissa Mayers time is up. 13s year alone we count executives who have left which disrupt continuity. We believe the board must assess if the Management Team has support and if not a transition to new leadership could be in the best interest of the shareholders. On the other side i have heard people say she has not had enough time. Do you think she has . Quite she inherited a significant challenge. Yahoo s best days were behind it. The people i know and technology i cant think of a person better suited for the job. You could replace her but you are going to get someone worse. Emily analyst say yahoo should go private. I wonder how realistic that is. Couldood point that you get rid of the current Management Team but who is going to take it on after them . Analysts are saying when you have a spinoff and yahoo gets separated from this stake then it will be a manageable target for private equity and they can go in and say we are going to thege management away from public eye. If it is not this team, what team could do it . Emily we rarely see major comebacks. Apple is the only company that has pulled this off. At this point, how much hope is there . What do you think of what is left . The 2 billion valuation is probably close to accurate of what yahoo is really worth. With a vision and execution and some real risk you might be able to rebuild fundamental value on top of that but you would have to roll the dice and be able to break it to get to a different state. Emily what does yahoo look like at that point . If this is successful welker yahoo be . The criteria would have to be that yahoo has a place on a large segment of americans home screens on their phone. If you dont have an app on a large segment of americans home screens the chance your company is going to be worth a lot is small. Emily what is the next move here . What do we expect from yahoo . They committed to going through with the spinoff. Earlier they said by the end of the year, last quarter when they reported several weeks ago. We are waiting to see what happens. The big question is what is going to happen with the tax. They wouldnt give them preclearance. We are waiting