Wilcox. Now to the lead, square has filed for public offering, this according to people with knowledge of the matter. Square is in the mobile payments business. The platform was founded by jack dorsey, you know him as a cofounder of twitter. Currently he is the interim ceo. Last year the company processed 30 billion in payments from millions of merchant customers. It is expanding into other areas like business lending and payroll processing. Joining us to discuss their future is leslie picker who broke the story for bloomberg news. Also the cofounder of button. And on the phone is sarah frier, who covers both square and twitter for bloomberg news. Leslie, why file confidentially isnt that suspect . Leslie because they can. They have less than 1 billion in revenue. It gives them the opportunity to make revisions with the fcc, it is about a three month process. If you are a socalled emerging Growth Companies like square you can do that outside the public eye. Most companies, it is close to 90 that can file confidentially do that, because they do not want all this back and forth with the fcc in public. Matt sarah, what does this mean foursquares what does this mean for squares business . 30 billion is a lot to process but not big enough to file publicly, is this a step they have taken early . Most Silicon Valley companies wait until they are of worth about 100 billion to go public. Sarah i think what companies are worth and what they make in sales is different. You will see a lot of companies that do not have the revenue that square has, being valued at much higher. Square has not raised money in a while, so they could be going to the market as a fundraising event. There is so much private money out there, it is possible that square has not been able to find private money in favorable terms. Matt what was it valuation last time it raised money . Sarah 6 billion. Matt mike, what do you think about this . Surely it has a bigger valuation now with 40 billion in revenue. 40 billion in revenue. 30 billion in revenue. 30 billion in processing volume. They take a percentage of that so it will be interesting to see what the other elements of its business looks like when they are out there in the public. Square capital, lending to small businesses, perhaps they are showing how healthy the other aspects of their business outside the court outside the core payments are. This is their chance to show the other elements of the business outside of the pure processing. Matt does this give them a lead over competitors . Mike i dont know about a lead. There are Massive Companies competing with square. Everyone from paypal to large banks are competitors, so there are high hills to climb. The visibility of being in the market and perhaps looking at how that 7. 25 breaks down things they may do better on the risk side than other folks, so it is interesting. There are smart folks over there, they would not go public if there were not things under the hood. Matt twitter has been rocky and those same smart people are at twitter. Sarah, does jack dorsey, does he need to leave it square or is he focusing on it . There were problems that twitter to begin with. Sarah the ceo of square, dorsey as we know, is also interim ceo at twitter right now as they conduct a search for a replacement for dick costolo. There were theories that dorsey would run both companies at the same time. The board is searching for a twitter ceo says they want a fulltime ceo, so it is not dorseys job as long as he stays at square. It sounds like dorsey has to make a choice now does he want to be ceo of square, or of twitter . I dont know if he can leave it square while they have this confidential filing in the mix. We will see, there are plenty of ways he can do it. Matt this is a great press move for them, maybe adding legitimacy to the business. Do we expect other companies to come forward in the same sphere, obviously paypal is a big presence. Leslie and we saw a filing from first data earlier in the week. We will see how the numbers of square compared to first data. Matt and we will see this in three months . Leslie we could or it could take longer. If square has a bad quarter or has a Management Change those decisions could take a lot longer. Normally the maximum in confidential filing would be about a year. It could be a while before we see his thing come to market. Matt ok, thank you for joining us. Always a pleasure. The stock the story of the day has got to be amazon shares skyrocketing. This is after the company surprised investors with a profit albeit a tiny one. The move today gave them the market cap they needed to overtake walmart by the biggest retailer. Granted, walmart is still about five times bigger in revenue compared to amazon. After todays move amazon stock is up 71 this year and jeff bezos is laughing to the bank. According to the bloomberg billionaire index, he added 7 billion to his personal fortune this morning alone. Probably not laughing, though he plans this stuff. Coming up, google and amazon developing air Traffic Control systems for drones. That is next here on west. And a hit among hackers. We sit down with the star of mr. Robot. Matt it is the official, the fcc grants at t the ability to buy directv. It will create the largest pay tv provider in the u. S. , but not without conditions. At t must expand highspeed Broadband Service to homes and businesses and cannot discriminate against rival online video services. Shares of both companies closed higher today. Now google wants to make it easier for flocks of drones to navigate the skies. The team is teaming up with other Companies Including nasa and verizon to develop an air Traffic Control system for unmanned aircraft. The government has not said how it will work, but Many Organizations will attend a nasa posted nasahosted conference next week to discuss ideas. Could this cause an explosion of commercial drone use . We have a drone pilot here with us as well as others. Gentlemen thank you for joining , us. Lets talk about who will run this. Brian, i will start with you, it is not clear yet whether or not this will be a government run network or a private network, is it possible that private companies could run these air Traffic Control systems for drones . Brian it is possible. Or it could be a public, private partnership. This remains unseen. We will talk about it at nasa ames next week. Matt jesse, how difficult will this be to get up and running . People are talking as if this conference next week kicks off a an amazing gold mine of drones, but i expect red tape and the tech side of it will be difficult to develop. Jesse this is a difficult challenge. You have stakeholders wanting access to airspace different types of technology, so this is a means for facilitating discussion among companies to come to an agreement as to what the technology should look like so we can build a system. But it works for not certain parts of the market, but the entire market. Matt jonathan, you have devoted your life to drones. Are there any standards among the different producers, is there any effort to reach standards . Jonathan absolutely. Right now, it is among hobbyists mostly. It is an honor code. There are some standards that we adhere to. Next week is the beginning of a process, it is not an event, by which a gun goes off and it is the wild west. It is just the start of a dialogue that could take many years. Matt brian, how long do you expect this to take . When will we have an air Traffic Control system that will allow a company to fly a drone across state lines and do business, unmanned . Brian it will come in phases. First off we are already having , people fly in limited use cases, under exemptions from the faa. When you Start Talking about more complex operations, where there are multiple drones in the air, they need to detect and avoid one another, be able to go into safe mode is something happens, there are rules associated with that. It will be a walk before you run process. Nasa envisions a stepbystep process where we can go more complex and deliver more value as we go. Matt what kind of companies, jonathan, who will take the lead here . Jonathan i it is like the evolution of the internet. The government and educational institutions and commercial entities gave core pieces of the technology that evolved into a community effort. So, im working with a Small Company that in their way bring Fleet Management capabilities, but there are a lot of little Companies Making sensors that use lasers that act like radar. That is a small component of this. And big Companies Like amazon and google have the resources and technology to make framework contributions to this. So there are many ecosystem components to this, very small and large, but they need to Work Together as a system. The government plays a role in this in enabling the community to come together and contribute to standards that get adopted by all. Matt a lot to develop and to invest in. Gentlemen, thank you for joining us. Now, to a hit among hackers. Usas new series mr. Robot centers around a character named elliott, a sever security expert by day and a hacker by night. It has been already renewed. The lead actor joins us to discuss this project. I play elliott on mr. Robot, cybertek, who is trying to hack into peoples lives, to connect with them on a different level. Everything we own on the computer is vulnerable. It is not really ours, it is everyones. I can take over my camera and not turn it off. I have a sneaking suspicion that someone is always watching me and after doing mr. Robot on a daily basis and seeing what this guy is capable of, i dont think it is ludicrous to be thinking that way. We have received high accolades from people in the tech community, hackers who appreciate how authentic the show is. There are a few hackers who have wanted to join as tech experts on the show as advisors that is , cool. If they are on our side, is less of a threat to have been hack us. Matt that is mr. Robot. A story i am watching closely, drug testing is normal for professional athletes, but for professional gamers it will be something to expect as well. Starting in august the Electronic Sports League will introduce antidoping policies. This is after a top player admitted to taking prescription drugs for performance. Assigned that esports is evolving into competitive entertainment. Coming up tesla shares, can they , break 500 by the end of the year . We will speak with one of the ceos who is making the case. And honda unveils its first vehicle with carplay and android auto. Wireless Silicon Valley sees this as an ally, next. Matt now to the daily byte. One number that tells a whole lot. The number is 380,000, that is the number of honda accords sold last year, the topselling car in california. The japanese auto giant has big plans for the next generation of this model. The 2016 car will be the first hundred vehicle first honda vehicle to offer android auto and apple play. They hope that the hightech will attract younger buyers. This is the same customer that buys this car, the ones that want tech. The accord is the leading seller for those under the age of 35. It was a natural fit. Matt honda unveiled the new accord yesterday, with google and apple working on cars of their own, we asked if they see these tech players as a threat. These are disruptive ideas entered into a very stable industry and they are shaking things up. And it is really good full stop we at honda embrace racing. We feel like it is raising the bar for everybody. Matt honda is also launching a Startup Accelerator to encourage entrepreneurs to develop apps. Tesla, shares are close to a record high, 286. Its also one of the most shorted stocks on the nasdaq 25 of its flow is being shorted. When investor thinks tesla stock is going to turn on ludicrous mode at 500 by the end of the year. I am joined by portfolio manager, cole. Thanks for joining us. It is a bold call. Analysts will make these calls for publicity, but i guess that you think this is a legit target. We obviously think that, or else we wouldnt discredit ourselves. We were one of the first to call this original tesla short squeeze in april a few years ago and we were right. , we stayed away from this stock for a while. It really needed to digest the momentum as we move into the next product cycle, which is a point in time right now. As we size up where things are going in the future, we see that it would rather be a bull and a bear on the stock. Matt i remember that you are one of the very few investors that swam against the stream and i am guessing you made a lot of money on that trade. We did very well. We stayed away from this for a while, but we are back in and Going Forward, because looking at the model, the make or break for this company. Elon musk is a shoot the moon a strategy kind of person. The next product cycle that will turn them into the next apple as a business. But success of this public release puts them well on the pathway to what they are trying to do on a longterm basis. Matt i took a look at your presentation, five reasons why tesla will hit 500 by the year end. The model x strikes me as the most important reason. If they do well with this vehicle, the sky is the limit until the third vehicle needs to come out. But, it is a big if. elon musk is great at putting up those moon targets, but he is often very late. That model should already be here. It has been late, but that goes to the focus they have on product quality and knowing that this is a make or break thing for them. They will not release a product that is not perfect or will not delight consumers. It is something that will be better than the previous model. We remember all the accolades that have come out and i expect them to deliver something that will amaze the market. There is a plenty of pr and announcements that they have kept up their sleeves. You will see that in the next six months. Matt what about the battery business . That seems like a big question as well. It is interesting to talk about, but there does not seem to be a real use case for these storage batteries. Cole not yet, but if you look at where the world isnt going it is wellknown that with shifting to reusable power, this is a massive next big thing. It will be something that will be akin to the internet with energy storage. They are well positioned as a business, because there is so many ways to drive the cost of batteries down. They can be a huge window inside of that segment. That is the core part of their longterm strategy. Today their vision is cars, but Going Forward it is about energy. Matt only a few seconds left, but i have to ask what you think elon musk is worth. That is the Biggest Tail Risk of the business. If his airplane gets hit tomorrow, that will be the biggest risk to tesla. Matt cole wilcox. We hope elon musks plane doesnt get hit tomorrow. That doesnt for this special edition of bloomberg west from the east coast. Emily chang is back on monday with talking about the sharing economy. Have a fantastic weekend. Mark im mark halperin. John and im john heilemann. With all due respect to donald trump, you just found your secretary of state. John Dennis Rodmans endorsement for donald trump. First, the cache of the day. The New York Times broke the story that two inspector generals requested a review whether emails from Hillary Clintons personal cap was mishandled and one of the igs asserted that she either received or sent emails that
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