A French Company says its search ship has detected signals from one of the black box recorders from the egyptair flight but did not indicate how it was able to make the determination. French Authorities Say it is impossible to know whether its from the data or voice recorder. In paris, boat cruisers are canceled and emergency workers are evacuating houseboats after river overflowed its banks in paris and floods hit towns across france. Global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. From bloombergs newsroom in new york, im mark crumpton. Bloomberg west is next. Cory im cory johnson in for emily chang. 3. 5 billion injection into the Saudi Sovereign Wealth Fund the biggest injection ever. But this does this change the Ride Hailing Company for real. And we will take you through mary meekers predictions for internet trends 2016. Mark zuckerberg holds a live q a from space. Aliens, no. We will tell you how to nasa achieved stratospheric success in social media. But first to our lead. Uber has turned to the middle east for its biggest investment ever, the Company Announcing a 3. 5 billion raise as part of their most recent funding round, keeping the valuation at 62. 5 billion. The Saudi Wealth Fund managing director will take a seat on the board as part of the deal. Eric newcomer joins us with more. This is shocking. Are these guys on a permanent fundraising scheme here . They just keep raising money and keep raising money. Eric it certainly feels like that. 9. 5 Balance Sheet is now billion in cash, on hand. They are flush with money from the private markets. There raising from everyone under the sun from google to tbg and now we have these huge sovereign wealth funds. Everybody you can imagine is investing in uber, it seems. A million curious aspects to this. Valuation, while high, it stays at that even though it is a subsequent round. Whose equity is it selling at at thatcory point . Error they were going to raise and then said i guess we can get 2. 1 billion a bunch more money and keep the same valuation, so i think you are right to Pay Attention to that. I do not think it is a bad sign, but it certainly shows they are reaching a ceiling when it comes to what people will pay to invest in uber right now. bad sign for that company. Eric it is an expensive valuation. For any company. Certainly not profitable, trying to be profitable in the United States but competing aggressively with lyft. Cory and the fact that it comes from saudi arabia suggests some ambitions. Thank you for the huge story, we are glad to have you on. Voxx shares tanking after hours on the back of an Earnings Report with sales of 30 year over year. Loss per share if you believe , the adjusted numbers, the problem is billing. Up to 9 from a year ago this , baffled analysts who expected growth of over 20 . That says more about the analysts of than it does voxx. Sales force has agreed to buy demand where. Shares closed down slightly on the news of the acquisition. Theyre expected to increase by 120 billion. A ubs analysts joins us right now to break it down. Brent, i will start with you. That notion of it seems like threeontwo 300 million should Million Dollars be added to the top line as the projected run rate. Brent we think this is the next big cloud. You get that email about that tie. Sports a jacket or the did i show you the lining, it is orange for the giants . Brent they can show that to you and you can transact. Move,nk this is the smart the largest deal ever. On the basis of what they paid, they have paid higher multiples but its not cheap. Clearly, theres some risk here. Strategically, it fits in. But we think thatstrategically, it fits in. They dont have any overlapping functionality today. And many of their top Customers Using the platform today are ar customers. Cory may be the notion this is be 170 million is sandbagging it because if the company is on a 300 million run rate, all of those people selling this thing presumably off the bat, they should get more than 300 million. Exactly. With the demand acquisition, one thing you can look forward to is salesforce being able to bundle this solution along with the sales cloud marketing cloud and , services cloud. Theres a lot of leverage they can get because they have the best salesforce in the cloud and it is going to be much more than 300 million, in terms of expanding the cloud. Interesting to me also, i took a whole day off yesterday and i missed a deal. There is seven over the last few weeks. This suggests maybe there was not a known Competitive Bidding situation. I guess we will find out if the documents they just thought if are filed. We dont take it someone else will. Brent we believe there are from the perspective of software m a, it has picked up. The ipo window is somewhat shut. Weve only seen one or two deals this year so far, and it wasnt met with a bang. You are seeing the talent of the tech cycle. Typically, later in the cycle you see a cleanup phase and now , they are chasing opportunities and consolidation makes sense. The larger guys are chasing platforms. You have seen oracle and toward retailgned and commerce. So we think thats going to continue. We said at the beginning of the year and our playbook we expect , m a to ramp materially and the multiples have an stepping up. I think everyone was surprised they were bought or five times sales. Cory if you look at the m a numbers, its going out seven or eight times sales. 2. 8 billion for a moneylosing business doing 300 million in revenues those are unforgiving numbers even though there are a lot of deals happening here. Mandeep i think what you are seeing is once these smaller Cloud Companies are disrupted, they are moving out of the explosive growth phase and they are not profitable. They are at a point where the best strategy is to exit out or they have to be profitable, which is unlikely. There is some level of desperation in terms of exit, and that is what you are seeing. And they were probably the early ones. Has set theandwear bar high, you can expect a higher multiple going forward. Cory it is breathtaking to see. Always good to see you, thanks a lot. Softbank has plans to sell 7. 9 billion of its stake in alibaba. That may be the beginning of a bigger shakeup. The softbank president is examining several possible sales to strengthen the Balance Sheet. Super cell move could value the game maker 5 billion. There are reports the planned alibaba shares sale could by buy yahoo japan. Coming up, the highly anticipated trend report, the playbook Silicon Valley runs off. Facebook will go to the ends of the earth and beyond to promote live video. Mark zuckerbergs broadcast from the International Space station later this hour. Cory russia has arrested 50 suspected members of a hacker ring. They have stolen for just 45 million from banks of the last year. The countrys biggest ever crackdown on financial hackers according to the interior ministry. Again used malware to infect computers to launch 18 targeted attacks. This comes at a time when banks are falling victim to cyber attacks. 81 million was stolen from bangladesh. Now to the anticipated fly deck in Silicon Valley. She unveiled her latest internet trends, chock full of sobering insights. She coauthored the first internet report in 1995 when she was an analyst at morgan stanley, speaking at conferences. There are more important things to look at and the big takeaways. I love this slide deck, and i have from the very start. Shes to come to our Industry Standard conference and now shes sharing it of a different crowd. Some of the things they are talking about are very shocking, not the least of which are slow grow rates on the internet. Guest one of the reasons she points to and one reason to love this report so much is she gets up out of the every day and goes back 20, 30, 40, 50 years and points to the fact that china has been on this massive building boom. It has been 21 trillion of Capital Growth in the past that years, more than we have done the previous 30. Theres been a massive runup in china and its starting to taper off, and as a result, the numbers are coming down. Cory she basically says developed markets are developed. Guest except for india. There is still room for growth. It is the one country that did see some positive uptake in Internet Usage and new users and smart phone users. Now it is the secondlargest market just behind china, passing the United States. A big part of that is mobile consumption, and what is happening in mobile. Most of these users will never see a desktop. Particularly users who have yet to be added. But without china, the growth rate would be flat. Sorry, without india it would be flat. John one thing to keep in mind with india is that indians love their cheap phones. If you look at the average smartphone price in india, it is down around 120. It is 280 in china. In terms of the revenue opportunity for big vendors like apple and samsung china was a , much richer market. You were referring about the slowdown in china lets put it into context. Fiveandahalf plus years ago, in 2010, that was a market growing well over 110 . Im sorry, in 2015, the unit growth in china was about 1. 5 . We have seen a rapid flow down there, due to saturation. All eyes have shifted to india where the unit Growth Opportunity is high, but the revenue opportunity is going to be lower because we are talking about the popularity of those lowerpriced phones. Cory in china when that market had yet to take off, apple was a huge success in china. John i think thats fair. One thing we are looking for in india they dont really have a , lot of 4g networks there, so as those 4g networks we love so much, as they begin to get belt out nationwide, they will need 4g phones to leverage the power of those networks and that means paying for a higherpriced zone. Phone. Speaking of phones, i got i today. Y sir it is Voice Recognition stuff, she spent some time talking about that. Lizette that was a rl highlight that Voice Recognition , is Getting Better and better as accuracy improves and latency decreases, then peoples excitement and willingness to use it accelerates as well. Cory she talked about how many people use Voice Recognition. Lizette it is up pretty significantly. You see that as the components improve and the software Voice Recognition gets better, you see more people using them in the home and in the car and not just because it is fun, which 20 of the people interviewed said that, but because its more convenient and accurate and safer when you are driving. Cory my kids use it to hear riddles but im shouting out my Shopping List and going through my empty refrigerator. Thank you very much. Great stuff. Coming up, we will be back with the latest developments in the first major summit since the big summit in paris. Were going to find out how they are using technology to do it. Cory to a story we have been following microsoft sold nearly 1500 patents to xiaomi. They aim to expand into overseas market. Namely, europe and the u. S. , which had eluded them. They cover wireless indications and multimedia technology. A little over six months ago, delegations were working toward a historic climate agreement and in paris. Now countries will put their money where their mouth is. Nearly 20 countries in san francisco, they rollout cleantech to make the best use to scale. This is a tech story, i believe. Theres old tech and coal and nuclear. Guest its a tech story a nuclear story, its a mix of all those things. Cory part of it is presenting on a platter saying this is here , ready to use. You do not have to wait. Ethan one of the overall messages was about the cost of this today. Certainly not everywhere, all the time but in a number of places. Thats one of the messages we are trying to perpetuate across multiple governments. Particularly in lesser developed countries. There is the view that you do coal you do renewables once you now and you do renewables once you get to be richer. Cory i do a day learning a daily radio show and there is this notion that because radio is older, it is bigger. You dont have to start with one it does not always work like thatyou dont have to start with one technology and go to the , next one. Radioeople listen to every week than watch i think television, a little known fact. I think this notion of starting with new technology really changes the game. Ethan i think there is definitely something to that. I think the newer technologies we are seeing have the potential to be revolutionary not just in terms of cleaner energy but , changing the way we receive the energy. If you have a system on your roof as we do in this building, you have a certain degree of selfsufficiency. You are producing your own energy, and it puts you in the drivers seat. Cory what are the newest technologies important to achieving these goals . Evening solar is old but it is new. You see a lot of excitement around them. The thing that always seems to work is economy of scale. We have seen it in solar and driven cost down in a large way. Were starting to see it in lithiumion batteries. Economies of scale, im a big believer. It is worth investing in new technologies, because we want to take a longterm bets. Cory is this a story primarily . For developed nations or third nations . S even ethan it has to be a story for both of we are going to think about climate change. The growth is coming from lesser developed countries. In a number of cases, the least developed cases pay the most for electricity and thats good news for renewables because that means renewables can be more cost competitive. Cory im thinking of putting rooftop panels on homes in tanzania. It is a trip what they are doing there, in hundreds of African Homes that are no longer burning kerosene. Ethan beyond that, this tradition of solar lanterns. You can do that instead of earning a candle or burning Something Else in your house. That is all starting to happen. Weve tracked about 100 million of these systems that will get distributed in the next year or two. Pico, as in super small. Extra small. Cory i am all for it. Go big or go home or go extra small. Tune in tomorrow for more coverage of that clean energy. On thursday, we will talk to u. S. Energy secretary. Coming up next, with will video the more important than mobile . We will ask facebook why the company is betting on it. If you like bloomberg news, check us out on the radio. You can hear it on the Bloomberg Radio app and on station 119. Bloomberg west continues next. The stop stories this hour, the yen strengthens further in the last hour after boj board member calls the inflation target for the medium to longterm goal. The rate policy, saying it had a tightening, rather than easing effect. Low, just a day after the Prime Minister the later tax increase until 2019. Opec ministers prepare to meet indiana with speculation that saudi arabia is planning a deal within the cartel. Delegates say a Production Target scrapped from december may be on the table. But no formal proposal has been made. They are expected to show a decline. Afterank has dipped alibaba revealed it is buying back its own stock. There is a plan to shore up its finances, and offer 400 million in shares to the alibaba partnership. And more to partnership in singapore. Powered by over 2400 journalists in 150 bureaus around the world, latestet the greatest from the markets right now from david. David we are watching stocks, let me start with the casinos here. A net gain on wednesday. 10 , we were looking at about 8 . A little more than estimates here. 24 straight months we have seen declines there. Lets look at carmakers over in japan. You are looking at two factors here, stronger yen compared to when trade started, and u. S. Auto sales falling 6 in may. Here we are, reopening for the session. We did see momentum, downward momentum pick up. A lot of that will depend on where the yen goes. 109 four for mr. Sato. The yen was already outperforming, let me just end. Can we flip the boards . This is how asia looks. Pulling downormers the overall index. Southeast asia doing a little better. Out, it ispan perhaps a broader, more accurate read about what is going on in asia this thursday. Cory quarter after quarter, facebook success has monetized mobile, creating billions in free cash flow. Today, 79 of the companys revenue. Everson sat down to ask if mobile would have an impact on traditional companies. Carolyn companies that have been around for a long time have to either acquire a disruptor to inject that into their system, have a venture fund that in it or invest in a parallel organization or rewire their culture, which is the hardest thing to do. Facebook has an open about its own struggle as the mobile dynamic shifted. How are you using that to do what you are saying there . Convincing companies of the profound cultural change they need to undergo. Carolyn we live this disruption ourselves. When we went public we had no , mobile revenue and our mobile app was built on html five and it wasnt particularly good. So mark held a company all hands and declared we not only needed to be mobile first, but mobile best. That drove mobile change quickly. The team showed him a desktop mockup and he ended the meeting. Until people came back in with mobile first, there was no meetings with mark to do product reviews. And that sent a message quickly and we reach rained our engineers within weeks, and now, over 80 of our revenue is based on mobile. We went through this transition. Mobile is not the only one we have gone through. Weve seen visual communications take off which is why we acquired instagram. Which now has 400 Million People use it, 400,000 businesses arent instagram. We acquired whatsapp and pulled messenger out and now have a one billion people on whatsapp because of the inflo