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tv   Bloomberg West  Bloomberg  April 15, 2014 1:00pm-2:01pm EDT

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>> live from pier three in san francisco, welcome to bloomberg west where we cover innovation in the future of technology. google blast one-day sale. they make high-tech available today only to the general public. will they be a hit? >> jerry bruckheimer joins us to talk about sequels he has in the works to hits like top gun and beverly hills cops. first, check of the top 10
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headlines. twitter by yang a longtime social data partner for an undisclosed amount. they collect and analyze data in order to provide most relevant tweets to clients. this will give twitter a bigger share of revenue from reselling data and will give them more control over information learned. barcode printing company zebra technology is buying motor relative enterprise unit for more than three toy $4 billion. the brett is funding the deal with over 2.2 billion in debt. the deal will give them access to a number of motorola product lines, including enterprise mobile computing. dale sohn on the stand at the apple samsung patent trial. something it did not do in the 2012 case. testifying about how it developed bounds and marketing practices. they also put engineers from google on the stand.
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first to the lead story of the day. google putting google glass on sale to the general public today. plus tax for00 access to the explorer program, the same price that developers pay. it is available only to adults living in the united states. this, as they have a patent application pending for tiny cameras in bedded and contact lenses. for more, i bring in a partner at excel partners. hosting a fireside chat with the cofounder of secret, today invite only conference. bringing together the top 180 executives in mobile. earlier executives and facebook. many mobile hits. good to see you. always great to have you here. talking about google glass. thatptimistic are you
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something like this can go mainstream? isthe way it goes mainstream. glass is still beta at this point. it is still very much intended for developers. i think the reality is you try the product. probably going to be a while before it comes a mass architect. perhaps interesting to those of us who live in the valley. i think it will be a while before main street really adopted in a broad street way. >> zero chance of google glass going mainstream? >> i think that is too early to predict that. bought android in 2005, they thought it was absolutely nuts. no one thought an american company in the land of nokia and erika back ericsson and siemens would become a major player. looking back nine years ago, you can see google executed it
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extremely well. wearables inf general, how closely are you looking at wearables even when it comes to risk ban -- wristbands? >> i might beg to differ on that. in fit fit.nvestors we're very much believers in the trend. one of our investments is called my fitness pal then aggregates the fitness and nutrition data that is in talks with the wearables. aspect is extremely real and accelerating, even if glass aspects probably still in beta. >> what about the idea that people do not want a measured life? i have plenty of wristbands i do not wear. >> everyone has a different view.
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is afe is one example that very serious ur of fit it -- b has gotten a lot of motivation from it. i think it is a very motivating behavior. around the trends wearables is a very genuine trend. >> when you look at mobile right now, what is hot? years has beene about ubiquity. i think the next seven years is about richness. to my earlier comment, android 2005.rchased by google in now we're at about a billion smartphones ship. 250 million tablet. the idea of getting to mass ubiquity is happening. despite the fact that we have aretphones, a lot of apps dumb or not fully integrated to the signal information. when you look at google now
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service or swift key, a , the idea ofyboard smartplications becoming or predictive is a major area. >> viewers beginning with the cofounder. right now very controversial, some investors bullish. others think these things are not good for the world, not good for humanity. what do you think? >> fascinating services. incredible amounts of viral growth today. i would point out the idea of an amenity on the internet is not a new idea. going to blackboard services or chat rooms, the set of behaviors people are concerned about, plus the idea of people shaking that sharing ideas anonymously has been around for a substantial amount of time. i do not think now that it is on a mobile device it is any better or worse.
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i do think they are very likely to put the right water ration and monitoring in place. i think they have to do it and will do it as a part of making the community's robust. >> what about snapchat? >> i think it is a little bit different. >> -- ishere to stay? it here to stay? somethinglearly people use of the communication tool day today. so i do think it is here tuesday. >> we will talk to you more about trends in venture capital in general after this quick break. make the rounds, bubbles. we will talk about that after this quick break. ♪
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>> welcome back to bloomberg
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"west." we are back with rich wong, who has led many of the firm's investments in mobile companies including air watch, the maker of angry birds, and most recently swiss ski -- swift key. talk about what big companies are doing in mobile. has been buying in that area as well. what do you think of all of that going on, given that they are not bringing broadband to remote parts of the world just yet? >> i think it is pretty early. the reality is sometimes you buy for team and core technology. a lot of option allocate. sometimes the original idea becomes completely fulfilled. we talked about android. andtimes you take the team focus on other areas because of
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the talent of the team. case of the drone companies. i am reading the same reports you are. there can be mapping technology. or it can be applied for broadband internet service. i think it is pretty early for those technologies. so much has been activity in the tech space. buyingk ryan whatsapp -- whatsapp. about 11 digit rounds happening. multiple rounds like that so far just this year. what is going on right now? are things getting too hot? a number of major revolutions going on in technology. status shift to the cloud, which is squinted and with the rise of big data. simply is if you are
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companybent technology and not writing a key trend, it can get pretty scary. you can get left behind if you are not a key player in the major shift. the growingne of companies that is the personification, one of the ofpanies is a good example this. you represent the personification of that trend and can be extremely strategically valuable to a lot of people. >> i have been asking pretty much everyone on the show, do you think we are in a lately there has been attacked selloff. a steady sequence of very large rounds. means we are in double territory it.
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everyone wants to cash out before it is over. we" or? >> it depends how you define it. if you want to make a comparison to the 2001 era, i would say we are not. the majority of companies funded have real dismissed models. in many cases a real cash flow, quite different. the multiples are getting up there. cash flow or earnings exist are getting higher. 10% pullbackoughly of the nasdaq so far is likely to have some impact on the late stage rallies. likely we will see some moderation because of that. broadly defined as a bubble chasing company with no business model of value prop is not accurate. >> are you saying you do not think of growth is sustainable?
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the valuations are not sustainable and not going to last? >> i think valuations are sustainable but i do not know they will continue to accelerate at the pace they have. looking ahead to next year's revenues or 18 months ahead for pricing investments off the bat. the growth rate has to be there in order to support the valuations. i do not think it will double again or triple again in the following 12-18 months. so you guys just raised a new round. the last chapter of excel. what will be the next one? rex a very broad range of enterprise technology, marketplace. essentially the same software areas we covered previously. i think one of the areas harder to report on is the incredible
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revolution happening around the data center of the cloud. sometimes the reports around the trends of big data. fundamentally, whether it is storage, networking, the tools to manage the data created, we are just in the beginning of that revolution just like we are in the mobile space. >> venture capital firms have changed dramatically in the past five years. how do you see excel place in the pantheon? >> first of all, i think the most important thing is the entrepreneurs you believe in and want to work with you. i think they choose us because of the certain areas of domain and expertise. i think big data is very well known as something that is perfect -- personified. i try to spend a lot of time thinking about mobile space. valuee entrepreneurs will
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the vertical knowledge and access to the network. whether it is helping pr, recruiting. firms addinger those resources as well. >> one of your portfolio companies is moving to wholesale. what do you think of that? >> it is. hopefully a lot of people watching the show better users of it, it is the leader of the handmade marketplace standpoint. about one million sellers making handmade goods. increasingly not a lot of opportunity to distribute them through fiscal retailers. so we see the -- we see it, the company sees it. breyer.entioned jim what is his future? ande is a great hardener
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mentor. he continues to go forward to be a partner. he has a range of interest. arrange a personal interest as well. we think it is great he continues to pursue a personal interest and still remaining a partner of the team. >> always great to have you on the show. thank you very much for stopping by. mtv hits dexia side to movies like top gun, jerry bruckheimer has seen huge success. that is still to come on bloomberg "west." ♪
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>> welcome back to bloomberg "west."
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san francisco is famous for protest. today they will march to capitol hill with a bunch the -- with the bill they want them to pay. megan hughes is outside the offices right now. have not paid taxes because they legally do not have to, right? >> that is exactly right. that is a tax break the city gave to them. get ready for our rush hour nightmare. around 4:00ill meet at city hall in will cut off traffic. organizer expect tank 1000 people. out here tome twitter headquarters to protest what are now being called the twitter tax breaks. not just twitter getting the tax breaks. a number of companies, more than one dozen including square, all getting tax
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breaks to come to this area. it allows companies to be exempt from paying payroll taxes on new hires. encourages growth particularly in this area. also exempts them from paying payroll or other types of exemptions. ideal for companies considering an ipo. they are negotiating a contract with the city because they are being asked to make concessions. there is a bigger fight over income inequality in the city and whether or not the middle-class workers are being priced out. to bring in another company who also got a tax break. the director of social responsibility as an desk. you wore -- work in the mid market area and got a tax break to be there. what is the area like for you moved in and what is it like
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how? >> we were the first company to move into the area and 2011. where we are located is high crime. high open drug use area. the difference from what it looks like where we moved in is different than the rest of the market. there is a lot of the same issues that are there. we see more retail development. war foot traffic in the area but still in on problem neighborhood . >> what do you make of the in relation to technology companies? it is unfair that they have hired people, created jobs and some people say they are not getting the right jobs to the right people. onlyrrently there are six tech companies that have a tax break. any company that applies for the
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tax break has to fulfill the community benefits agreement. it is overseen by a citizens advisory committee. we have to check in every month. that is how i know there is only six companies right now with the tax break. -- what started out as an obligation turned into the most amazing opportunity the company could have ever asked for. build a allowed us to social responsibility program and community engagement program innovative.edibly with theo things community. what more do the protesters want? >> well, i think one of the big questions i have is protesters have said there are provisions and are asking for community engagement, community hiring and training, but it is really a good space provision.
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there is not teeth behind that. no quantification being done. it sounds like maybe you disagree. is there quantification being done? how do we know companies are following up on this because the protesters do not think they are ? >> the community benefits association, the contract to get the tax rates, we're going to fill a certain number of promises. clearly.lined pretty anyone can access the documents. they go back to 2012 and read what we have been asked to fulfill. moreover, we do check in every month to the citizens advisory committee to give progress reports for what we have invested. >> thank you for joining us today. really great to have you here. we will be right back. ♪
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>> i am emily chang and this bloomberg west on bloomberg television, streaming on your phone, tablet, and there is a chip you'd going on in boston to commemorate the one-year anniversary of the boston marathon bombing. you are looking at live pictures -- the there will be a citywide moment at the exact moment the bomb went off. as we remember the bombings we also look forward to some of the technology preventing crimes
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like this from happening in the future. the city of boston is turning to artificial intelligence to detect suspicious activity before it even happens. adam johnson checked it out. >> april 15, 2013, boston is hit i'm not one but two bombs during the marathon. attackweeks of the boston police called behavior recognition systems asking about a new kind of crime-fighting technology. john frizzing he is a former secret service agent and he is now the president of drs. cancompany's technology analyze camera feeds in real-time, learn what is typical behavior, and then send an alert when its spot something out of the ordinary. >> our system will look for things you never thought of looking for.
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find an leeward and anna. it is different than what it usually sees. >> we went to see how isight works in the headquarters in houston. >> he can walkout like you are a normal guy in the office. >> i looked at the camera, i hang out, nothing abnormal here. how do i actually set this thing off? >> i am stealing the computer. this will scare them. withays it is working cities, including washington, chicago, and boston, as well as organizers kind 20 zepeda taps before they happened. >> you can see someone doing something is a precursor of a crime. >> poking around where they shouldn't be. >> is pre-crime. it is like minority report. >> that a science fiction. we are recognizing a precursor
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pattern that may be associated with a crime. >> with more technology comes privacy concerns. >> it is not our technology approach to collect any personally identifiable information. that is not the information our customers are using when they deploy our software. >> the industry has expanded tremendously since 9/11. about a trillion dollars have been spent on camera security systems to help seek out dangers. >> our very own adam johnson. and artificialas intelligence aren't the only tools that authorities are using for security. social media and crowd source information are also playing much bigger roles. social media analytics company helped stop and please do this
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,y pulling real-time data internet forums, mobile chat rooms, and more. jones,to bring in tim who joins us from our washington, d.c. bureau. you were critical to our coverage of this event last year. i want you to remind our viewers how exactly you were involved in the investigation. predatesvolvement the tragic events by two years. out to me after saying1 london riots that we should actively monitor social networks as a way of fighting crime. different organizations, gangs in london, actually managed to move throughout the city of london using social networks to communicate between each other. being in many ways quite pressing at the use of
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technology we started a pro bono relationship where he offered our application for free to the boston police department so they can monitor social networks. bythere were days that went when it seemed like we had no .dea who did this how critical do you think social bostonas in solving the bombings and finding who did this? we as an application provider provide our services for free. we were not part of the investigating team because we legally couldn't do so. i cannot speak onto the classified side of things. efforts tolearly look for patterns in past data. an ongoing new social media was
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shared. the general population began to volunteer information. various photos began to be shared near real-time. our application was one of multiple tools that were available to law-enforcement during that time. ultimately this was solved by good old-fashioned policing. tools were part of the overall information envelope that was used after the events. well our otherw law enforcement agencies using crowd sourcing information and how good are these agencies at talking to each other? say there is aren't a pretty significant effort before the events of last year. there is a term you may hear
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called open source intelligence. , and by federal side the federal agencies there was already a movement afoot to leverage social media to gather intelligence for their purposes. i think what happened post-boston the local level has agencies get more active. the international associations of chiefs of police had gotten quite social, both in terms of their outbound communication with her constituents. they're also a big user of various tools. i think in the last year there has been an awareness and a media ison that social like what e-mail was 10 years ago. it is a new form of communication, a new channel of gathering information and it cannot be avoided in the conducting investigation and in trying to prevent a disaster for -- a disaster. >> thank you so much for joining us. good to know some of these things are in place already in
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law enforcement agencies across the country. to his credit he is one of hollywood's to get producers. up next jon erlichman talks with jerry bruckheimer about his plans to remake one of his classics.
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>> welcome back, i am emily chang. microsoft is hosting a major event in san francisco at this hour where it is announcing updates to its big data services. the company introduced a new data platform that will lower the cost for big data analysis. focused ons also building an ambient intelligent platform that is enabled by microsoft technology. a big new hire for twitter. the company announced it hired daniel graf as the vice
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president of consumer products. i bring in jon erlichman and joining me from boston is the chief research officer at idc. two critical years, things weren't really working out. a huge job ahead for this guy. tell us how they ended up hiring him. >> we know they were getting close to this announcement and trying to find somebody at google makes sense in a sense there are a lot of talented product folks there and that maybe isn't the same kind of competition as you would see and --itter or facebook or facebook. scale said -- it was something that appealed twitter. twitterple are using
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when they are on the phone are on -- on the phone. or is a big issue on two fronts. first of all, getting people to sign up and continue to use the and of thevice overall engagement. these are some of the knocks against twitter, keeping people on there for longer periods of time. it goes along with a pretty successful monetizing strategy. >> twitter has been focusing on refining the consumer products. talked about changes they're making to try to make twitter to go mainstream, to make it more appealing to mainstream users. what you think about the evolution of the twitter project and where it needs to go? i think what you are seeing -- what twitter is doing is they are trying to create a platform that will do two things. towill make it easier
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interface with the technology area and you have more people using the technology you have more enterprises that are interested in the sentiment around what those people are saying. i think a lot of the invention off that platform is about creating new kinds of services that are going to get enterprise customers interested in what their customers are saying and asks us -- and ask is that data in the same way. this isn't just about twitter data, this is data from other sources and other social media necessarilyn twitter properties but twitter may end up aggregating. stoneas speaking with biz who made the point that you don't have to be on twitter to use it. it is on12 that television, newspapers, magazines. it is everywhere. in terms of getting more people to keep coming back and continue to engage with the service making changes to profile pages,
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photos are bigger, background photos are bigger, the uc it moving in a direction where it looks more like facebook or something else? >> i think it is how people use it. i think people know what facebook is and a lot of people know what twitter is. celebrities love twitter, journalists love twitter. if you sign up for twitter, who do i follow or who is going to follow me back, what kind of conversation are we going to be having? fundamentalng those questions becomes important if twitter wants to be a sort of important service to the growing number of people. i would also say that as twitter thinks about where its business is going, they are obviously very aware of all the conversations taking place on twitter. bob crawford was talking about that and we did see an acquisition today that pushes in that direction, more of being able to harness all of that, all of the raw data and potentially
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make more money from taking that available to anyone and everyone who wants to make sense of the conversations on twitter. >> what direction is this taking? >> this becomes an integral service to the way people out -- to the way people into rack. they are going to aggregate services together and try to create useful information for people. it comes down to analytics. prete, thank you both. we will be back after this quick break. ♪
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>> jerry bruckheimer is betting big on sequels pre-the producer is working on a new film tied to his beverly hills cop that beverly hills cop and top gun franchises.
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we caught up with bruckheimer himself. >> there is a conversation around design. with companies like apple, we know design or where they are going with design. you in about design for your films or television? what does bruckheimer decide? x it has to look good. we put a lot of time and energy into making things look interesting and unusual. we always try to put something a little special and a little different into what we do. where the movie business is going, you had something with disney and now you have this new deal. you talked about where disney is focused on its movies and where you are focused on your movies. they are not the only studio doing superhero movies. are we going to see superhero fatigue? >> i saw the latest captain america.
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everybody is cheering and laughing. film that you highlighted as part of this new deal with paramount was that you are working on another beverly hills cop. what can you tell us about it, where things are right now? >> we are in the process of getting the script finished. this -- brett ratner is excited about doing it. thefully we will start in summer or fall and get rolling on it. we are going to have some fun. he is really excited about doing it. >> the other film everybody has been talking about is the next top gun, which i can say you have been working on it but this is a long process for you and tom cruise. you made some headlines recently , sort of setting the stage first is -- setting the stage of cruz versus the drones.
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>> i think we are going to take advantage of what the world is like today, with the drones taking over in a lot of our ward. is the pilot obsolete? are those guys -- are they gone from now? i don't think so. you still have to make quick decisions. we are hopefully going to highlight both worlds. >> what is the timing on that one? been working on it for over 30 years, so i wish i could tell you how long it will take us to get there. fun working with tom. unfortunately tony scott, who came up with the idea i just told you, passed away. that is very sad for us. >> i believe david ellison is a partner. at the ellison family, a lot of people talk about them. megan is getting a lot of attention during the award season.
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davidan you tell us about ellison? >> he is a pilot, so that helps us a lot. he is very excited about this and david has great takes -- great taste. he continues to make successful movies. he really understands the as better than anybody. for a guy to understand the deals, to understand what actors were, what directors work, what writers work, i am very proud of what he brings to the project. >> you still have times to disney and there are projects you are involved with. of the caribbean, the latest installment is one people continue to ask questions about. what is the latest on number five? >> we are working on it. donnie is excited about it. obviously disney is. we are excited about it. hopefully we will get that going this fall if everything lines up properly.
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loves to talk about these movies online. >> we make them one at a time. >> will keith richards be back? >> i hope so. we would love to have him back. huge success in film, you have had huge success in television. obviously csi is on that list. a lot of people are talking about this as the golden age of television. financially for you, what does that mean? has this been the most financially successful. for you -- successful time for you? great for me. they may not be a network, they are on cable channels and all around. the reason the call it the golden age is because the work is so good. you look at what the other showtime, ando,
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cbs, abc, netflix, some of the series they have on. there are amazing stories with great actors. >> does that mean parting with at best partnering with netflix on original shows -- does that mean partnering with netflix for original shows us in the cardiac :00 hopefully we will. >> in terms of a show like csi, how long can that show stay on the air? it seems like probably a long time. >> it is going on its 15th season. we have wonderful directors who direct our actors and take those words and make them come alive. we are about to do hopefully a spinoff of csi about the dark net, csi ciber's. it is all about entertaining audiences. on the point about the csi spinoff, you seemed quite interested in how technology is influencing society and bringing it to the big screen.
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>> some the things have changed since i made csi 15 years ago. -- i don't think we had cell phones 15 years ago but things change. >> jerry brown timer with our very own jon erlichman. a top gun sequel, i am in. maybe cory can score a role in that one next to tom cruise. bruckheimer has this new book, "when lightning strikes." was interesting how we talked about how tech is becoming an in theeater role storylines, potentially from the new top gun to this idea of a csi spinoff. cyber world.rous >> can it be as good? that is the question. thank you so much for bringing that one to us. thank you all for watching this addition of bloomberg west.
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we will see you later. ♪
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>> this is the intersection of business and economics with a mainstream perspective. ukrainian troops move against pro-russian separatists. marking the first year anniversary of the boston marathon bombing. and a look at what is needed to fill vacancies at the federal reserve. to our viewers in the united states and to those of you joining us from around the world welcome, we have full coverage of the stories making headlines


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