Nations ban kimoon has created a trust fund to combat the zika virus. Since 61 countries and january 2015, territories have reported local transmission of the virus, and some have seen an unprecedented rise in cases. The body of the u. S. Navy seal killed during combat in iraq is returning to the United States. The remains of Navy Petty Officer first class Charles Keating iv will be transferred to the san diego area. He is the third u. S. Service member to be killed in combat in iraq since forces returned there in 2014. Global news powered by our 2400 journalists. From the Bloomberg News room, i am ramy inocencio. Bloomberg west is next. Ramy this is bloomberg west. Coming up, we tell you why the latest funding for the chinese Ride Hailing Service could mean bad news for uber. And, it is official, fireeye promotes a familiar face from within. We catch up with the new ceo on a day when shares plunge 19 . And, does donald trump have any friends in Silicon Valley . We find out whether the gop frontrunner has built a wall between himself and potential bay area supporters. The biggest competitor to cooper in china is close to raising 2 billion in its recent round of funding. They close the round in the next few weeks, with a valuation of about 25 billion. That would make it the fourth most valuable start up in the world after uber, xiaomi, and airbnb. Here to discuss this is David Kirkpatrick. Guys, welcome. First off, i want to ask you, david. Is didi actually worth 25 billion . David if uber is worth 60 billion, i think ultimately it is their biggest global competitor. Those Companies Might ultimately consolidate. The Chinese Market is so important. I think if you do it right, you can lift off from there and go global, and im sure thats what they want to do. Ramy when we talk about didi, we have to talk about uber, with both of them brawling in the worlds most populous country. Didistalk with president about whether they could both coexist. I would like to more focus on myself, rather than looking at others. I think the industry is in a more infancy stage. Theres a lot of room for everyone to grow in the market. But for us, it is more to focus on what we have to achieve. Ramy can they both exist . Can this duopoly exist . Here in the u. S. We have uber and lyft and a couple other ones. David in china, the Chinese Company will always have a huge advantage so i would not bet on uber. The Chinese Government can intervene on the side of the local player. They are very willing to do that. Ramy lets talk with keith. I want to ask you about valuation, the 25 billion valuation. Does this concern you . Keith i would have to look at their Financial Performance to decide what they are worth. They are a valuable company, but i cannot opine on that without inside information. Ramy two of the top four Tech Companies in the world are right hailing services. Who knew . This doesnt mean people will want to necessarily program more ridehailing services. What does it mean for you . Keith the key take away is this one of the a winner take all this will not be a a winner take all market. I think uber had hopes to or three years ago that this would be a quasimonopoly business. Lyft is thriving in the u. S. , and others are thriving outside the u. S. , so the idea of a winner take all globally is fiction, and that has Significant Impact on uber valuation. Ramy also, to talk about the general ipo environment in the United States right now you are talking about in your latest gadfly piece, that there is a tech ipo desert. It has been startling. One tech ipo this year, this dell spinoff secure works, so you are having a situation now where there are 150plus richly valued startups, socalled unicorns valued at 1 billion or more, including uber, making a blockade of private companies waiting to go public. It really seems like an untenable situation, where you have all these privately valued startups, these richly valued private startups, and there is no exit, or at least no public exit for these companies. I dont really know where it ends. Ramy david, you are not in your you are nodding at a lot. David i dont know there has to be a nearterm exit. A lot of these companies have enormous resources because they have these valuations and have been able to raise a lot of money. Many of them have a multiyear view before they are looking for their exit. The atmosphere right now globally, politically, economically is so uncertain. Im sure theres a lot of good reasons, even aside from what we might think about valuations, why ipos are happening less right now, and a lot of his factors could change. Ramy we have an interesting graphic, initial public disappointment. I want to bring that up. Its a chart that is an etf of recent Public Companies that have fallen 18 in the past year. Shira, what is to blame for this . Bad Market Conditions . Or should they have never gone ipo in the firstlace . Shira it is a mix. I was really surprised when i ran the data for this column you mention, more than half of the Tech Companies going public since 2010, fiveplus years, more than half of them are trading below the price at which they first sold stock to the public, and that is not much of an incentive to investors buying shares or the executives and other insiders of those Tech Companies to go public, because we have seen the Market Conditions have not been hospitable to young companies, especially ones that cannot make their numbers. Ramy keith, what is your take on all of this . Is it about Market Conditions, or if the company should never have gone in the first place . Keith many of these copies are great companies, great opportunities. However and they have the option to go public whenever they want. However, there is a disconnect between the prior round of financing and the valuations they achieve in the liquid Public Markets, so they have to swallow that disconnect if they want to go public. So some of them may not be burning a lot of cash, and might have a lot resources, as david points out, so they can just wait and hope the market multiple changes. If they are burning a lot of cash, running out of resources, they might not have an option and might have to accept what the current Public Market will give them. There is a set of the 150 the dont have the metrics, transparency, dont have the predictability that you want to see the scale you want to see on , revenue or profits, and those companies have real problems in todays environment. They have significant pressure on them, and theres not a lot of Great Solutions for them. Ramy we will leave it there. Shira ovide, thank you so much for joining us. Keith, David Kirkpatrick, you are both staying with us. A story we have been following. Dell is planning to market a portion of the debt needed to fund its acquisition of emc. 67 billion investors have been on the lookout for a host of debt offerings from dell ever since they got banks to commit 49. 5 billion in financing for the takeover. They will sell an 8 billion term loan offering to institutional investors. Dell needs to get regulatory clearance and the approval of emc shareholders before they can close the deal. Up next, kevin mandia wants sold his security startup for more than and now he is the ceo of 1 billion, the company that bought it. The new chief of fireeye joins us. Plus a repeat success for , spacex. Why this rocket landing marks more than one small step for elon musk. We will explain next. Ramy in this edition of out of this world, spacex has done a for the second time in a month elon musks commercial space venture has landed a rocket on an ocean platform. The booster touched down after launching a japanese can indication satellite. Musk put the chances of a successful landing maybe even because the rocker the rocket will be coming in faster than last time. This was a key test for spacex, which hopes to begin reusing unmanned rockets as early as this summer to lower the cost of each launch. Spacex remains the only company to recover a rocket from launch. Jeff bezoss blue origin also landed a booster rocket but it , never reached orbit. Fireeye shares took a big hit on friday, plunging 20 off the back of the companys latest earnings report. The Cyber SecurityCompany Posted an adjusted loss per share better than estimates, but it was the guidance investors zeroed in on. Fireeye said its secondquarter loss would be larger than years to date sales are down from 815 million previously. Despite the numbers, they announced a changing of the guard. President kevin mandia will take over for ceo dave dewalt next month. Dewalt led the Company Since 2012. The new ceo joins us from mountain view, california for an exclusive bloomberg conversation. Thanks so much for joining us. Kevin thanks for having me, ramy. Ramy lets start with your new role. Congratulations. Second, why you, and what do you want to bring to reignite the fire under fireeye . Kevin why me . I worked with dave dewalt. He was my chairman when i was at mandiant, so i have known dave for a long time. We have always aligned in our Strategic Imperatives and our vision, our intensity, our desire to win, so this was just a logical progression. When he bought mandiant at the end of 2013, we were on a mission that aligned with fireeyes mission. And as this Company Transforms, we have always had alignment. We can make this a seamless transition. At the same time, every Company Transforms and evolves, especially when you need to innovate at the speed we are trying to innovate at. Why now . It was just great timing to lock in a management team. We have our independent director, and we still have dave dewalt as my mentor and executive chairman. We have travis reese, who i worked with for 20 years, in the president ial role. We can lock in our mike berry, cfo. Thats why we did it. Lets strengthen the company and continue to evolve. Ramy in terms of strengthening the company, a lot of companies are transitioning to the cloud and to Subscription Service models. How will that help fireeye . Kevin you are looking at trends in cyberspace, attack trends and defense trends. Everyone is starting to go to infrastructure service. We have to be where the attacks will be, and where the data will be. Other trends, right now if you are hacked and you know it liabilities have never been higher and you want a trusted partner. You dont just want technology in place, but technology and people and expertise behind you. One thing we saw was a huge shift between people buying our products and running it themselves versus what we call fireeye as a service, buying our products and capabilities and we run them for them. The advantage to that, you have a trusted partner, somebody in the trenches with you hunting on your network, looking for problems, making sure you dont have challenges, and should something bad happened we are standing beside our customer saying, we are there, trying to defend the net. So we are seeing that shift from the capex product buy to opex, security as a service. I was reading about fireeye as a service before i read about any other Cyber Security company talking about technology provided as a service. The market will continue to swing that way, and we will catch it as it keeps winning that way. Ramy fireeyes sales have been falling over the past several years. We just had a graphic showing our viewers that. Security sales are slowing for you guys. Do you think it will keep slowing . What will turn this around . Kevin one of the things, and by the way, we still exceeded our Sales Numbers in q1 when you look at billings, and we always pushed the street to look at billing numbers. Sometime last year, one thing that did change the Threat Landscape and theres a lot of reasons why people by security. It could be a compliance driver, or a threat or an incident, we saw an abatement in Cyber Espionage attacks from china against the United States. Now we respond to more breaches today than we did a year ago, so it is not a decline in breaches, but the type and scale of Security Breaches we are responding to are smaller. So without that omnipresent Threat Landscape, we felt at least last year a little bit of a delay in some of that pressure buying. Hey, we have a problem, we need something. But i dont see an abatement in the buyer. People want a Cyber Security solution. The liabilities if you are compromised and know it has never been higher. Ramy there is talk about consolidation in the industry by some analysts. Would you agree with that . Kevin i dont know when its coming, but there are a lot of Cyber Security startups out there. Someone told me a number of 1200 of them. When i went to the conference this year in san francisco, looking at all the attendees, i felt like there was 15 ideas, maybe 20 ideas, but 1200 companies. So i think you will see compression. Its hard to know how Many Companies the market can bear, but 1200 felt a little high to me for 15 to 20 ideas. You will see compression. We are at the early onset of it. With that, you will see some m a activity. Ramy i want to look at the stock price for fireeye. At its high, about 95 a share. Now it is around 12 or so. Some people brought up the possibility that fireeye could be an acquisition target. Do you think the conditions are ripe for that . Kevin i can tell you this. I want to build the best Security Company, period, and execute on the vision we have. Were going to pull it together. It is my job to build the best company. If there is outside interest in us, thats on them if they want to have interest in us, but we will still build the best Security Company in the world. Thats the path we are on. Im not going to deviate from that. Ramy time for just one more question. Looking ahead, what Cyber Threats do you think will to find the next few years or so . Geographically, by governments, by terror groups . Kevin governments, you will see governments coming up with rules of engagement. You may have some war and peace, depending on geophysical conditions. The trend we see now, if you are in a safe harbor and you can compromise folks, extortion is on the rise. The payment card industry in the United States is getting more secure. Retailers are more secure. It is harder to break in and get credit data and monetize it. But the folks who used to monetize the credit card breaches have turned to things like extortion. Break in, and use things like an anonymous currency like that going to get paid. Thats a challenge for any organization to deal with. You have read about ransomware, probably. Someone who can break in and they encrypt your drives and have to pay them to decrypt the data. Those attacks are on the rise. They have greater impact as people depend on their systems to run the businesses. We will have to deal with that short term. I will leave you with this thought. You watch the criminality internationally. For the most part, it is intolerable to most nations. So i am hopeful we will figure out a way over time to reduce the amount of safe harbors there are for these criminal actors. They will always exist, we will have to safeguard from them, but we will be there. Ramy congratulations on your new role. Newly named fireeye ceo kevin mandia. Next week, bloomberg west goes east, in a series focusing on Tech Innovation and entrepreneurial spirit in boston. Emily chang sits down with the president of zip car. Join us on monday from boston. More bloomberg west continues next. Ramy our tech week in review. Still with me, David Kirkpatrick in new york. Lets start with you. What stood out among the tech headlines this week . David there were a lot of things, but i continue to be amazed by amazon. They got investment in an air transport Company Called atlas, and took leases on more planes from another transport company. So now they have 40 of their own 767s, a company that was one of upss best customers. As a company this just goes to show amazon wants to be a vertically integrated colossus. Everything from how Companies Work in aws, to the products we use in our homes with amazon echo, and getting to us in between. What an amazing company. You have to be amazed at this companys ambition and ability to power forward. Ramy you bring up a good point, talking about fedex and ups. I wonder what they are thinking right now. David they cant be happy. At a minimum, it gives amazon much better negotiating power with them, because they will still be a big customer of ups. I also have to reiterate the word echo. I think the amazon echo is one of the hottest products that has come along in recent years. It has enormous implications. It is what i call ambient interface for computing. I continue to say on the air here and elsewhere if you dont own amazon echo, you should get one simply to see the future of computing. And this company has a million irons in the fire, and they are all burning really hot. Ramy i want to talk to what keith has been looking at. What has been on your radar . Keith nothing specifically new. A lot of people are focused on kind o