Attorney general Jeff Sessions says doj officials believe they can ban rapidfire bump stock devices without action from congress. That comes after President Trump ordered the Justice Department to work towards banning those devices, which allows semiautomatic rifles to mimic machine guns. Puerto rico says delays by the Treasury Department in getting Disaster Relief to the island has put the u. S. Territory in a dangerous financial dilemma. The islands governor says the treasury imposed restrictions that made it difficult to access funding. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im alisa parenti. This is bloomberg, and Bloomberg Technology is next. Emily im emily chang and this is Bloomberg Technology. Coming up, amazon arrives at your front door after a 1 billion deal to buy a smart home tech company ring. How this plays into the ecommerce giants larger delivery strategy. Plus, comcast reaches for sky and raises the stakes for disney and fox. The allout bidding war erupting between three of the biggest players in media. Fitbit activity at an alltime low. Shares tank post earnings. But first to our lead. Amazon has agreed to buy a agreed to buy ringgit californiabased smartphone , a company that makes video cameras, doorbells, and other security tech. It is valued at about 1 billion and pushes amazon further in the smart home market. J. P. Morgan chase advising on advised ring on this and deal. Joining us now with more details is alex barinka. It was not long ago that ring was booted off of shark tank. Alex it was just five years , ago. The ceo with on shark tank asking for 700,000, saying it was valued at 7 million to get it now fastforward half a decade later, they are selling for 1 billion to amazon. A nice little ending here for ring. Perhaps a look back to the sharks and say, look at what we have done. For amazon, it is an important step as they continue to push into these more consumer facing hardware. We have seen amazon in the past six months or so really tried to embed themselves in consumerss homes. You saw it with amazon key, where you can unlock it for delivery folks so they can deliver packages, and you have seen it with amazon echo. This fits nicely within the entire ecosystem because, you know what . Amazons goal is not selling hardware but getting more getting the hardware in so they can sell more products on ecommerce platform and get you to open your pocketbook a little more. Emily talk about how this fits into the delivery strategy. Obviously amazon has been focused on that last mile. Now they have this Concierge Service key where amazon can actually go into your home and drop packages. How does it high together . How does it tie together . Alex when you use a ring smart camera, you can have the person on the ground talk to it. If you are on your phone or tablet or pc, you can talk back, so that kind of actual relationship where you are not just a passive watcher but you , can engage with the person who is there, if it is in amazon delivery person who they say is verified, you can open the door for them, tell them where to leave something. But also, amazon has been pushing Services Like housecleaning and dog walking. Anyone who is showing up at your door can potentially be let inside when youre not there. Again, so you keep spending within that broader amazon platform. Emily what do you make of the price of this deal . Full disclosure i own a ring , doorbell, and i was shocked. The product is good, but 1 billion . Alex there are reports from last year from other tech media organizations saying they were valued around 450 million so that is a twotime bump. It is a nice exit. For amazon, it is a small check size. A person familiar with the matter told me jp morgan advised ring. Amazon did not even have an advisor working with of them. They just shelled out the money for this deal. So it seems to be another one of these small things that amazon has been collecting as it continues to fill this set of tools it has to keep getting into peoples homes. Emily they did a big deal with whole foods last year. Do you think amazon will be more acquisitive in the future . Alex i can tell you now covering tech m a, they are definitely number one on my list. We are waiting for the next big deal from them. Dont have anything in the hopper that i know about right now. Does not mean there isnt does not mean that could not always change. The whole foods strategy shows , up with your food, you talked talk to them with your ring camera, you get them in the door. Emily all right. Thank you so much for breaking that one down. In earnings news square reported , fourthQuarter Sales that topped analyst estimates with a for a ninth consecutive quarter. In more than two years as a public company, square has moved beyond its iconic payment dongle to be a onestop Business Manager for small and midsized retailers, providing loans, inventory tracking, and other services. Coming up, shares of fitbit hit an alltime low on disappointing earnings and forecasts. What is next for the Wearable Company . We will hear from the ceo james park. If you like bloomberg news, check us out on the radio. This is bloomberg. Emily a new note takes a closer look at Apples Health unit. Apples plan to start onsite medical clinics for its workers may go beyond its own employees if it succeeds. This comes after a cnbc report that said apple was starting clinics for its workers. Remember, ceo tim cook told investors earlier this month the company can make a significant contribution to the health care space. Fitbits longerterm outlook is facing challenges amidst falling demand. Shares hit a new alltime low tuesday on disappointing earnings results, so what is the next step . Lets get straight to our editor at large cory johnson, who is , standing by in new york. Cory yes i am. Thank you very much. Fitbit not a great quarter, at , least according to wall street with stocks selling off today. James park, the ceo joins us quite a bit, and you care about the stock more than i do, but in terms of the size of the company and what the opportunity is, if you had asked either one of us two years ago if the fourth , Quarter Sales would be below 700 million, hard to imagine it would fall after 571 million. What is going on with the demand for fitbit products . James 2017 definitely a challenging year, played out more challenging than expected. In the wearables category, the shift from activity trackers from more fully featured smart watches is happening even faster than we anticipated. We did launch our first smart watch into the category in q4, and it did outsell our prior highest product surge but it was , not the mass appeal shipment unit driver that we anticipated, and that was reflected in our financials, and that is what investors are reacting to. Cory strikes me as a really interesting problem. When i looked at the apple watch which launched after fitbit, it was a product in search of a use case. I felt fitbit was the use case. It monitored steps, helped people live healthier lives, and enhanced athletic or a physical fitness focused product. As you move from bands that just count steps or altitude to watch watches that can do a lot more, do you start to lose that focus . How do you make it a massmarket product not just for runners, but for people who want to lose 10 pounds . James absolutely i think we will maintain our focus on health and fitness. Even as our emphasis in the trackers tofts from smart watches. A lot of that will come in the product futures. There are specific health and fitness apps, the long battery life over four days helps, and especially with sleep tracking. Our app is the number one app on itunes and android for health and fitness. Platform independence plays a key role, especially as we try to integrate more deeply into the health care ecosystem. So i still believe the focus on health and fitness regardless of the device is a winning strategy. Even in 2017, while ionic was not the success we anticipated, we achieved a lot as a company. We did meet our fullyear guidance and earnings. They are in line with guidance. We actually exceeded our projections for Free Cash Flow. And we are incredibly operationally efficient. We ended up with 50 million below our target that we had stated to investors. We deepened our reach in health care, and one of the more interesting aspects if you think about not just devices, but our active user base grew to over 25 million users even if our unit shipments declined. Cory what is the dynamic . How do you ship fewer products but have more users . I did not understand that. James one of the things investors have been concerned about in the past is, what is our level of retention and usage . Is this a product that people buy and put in their drawer after a few weeks or months . What we are demonstrating is that even though unit shipments declined and the active user base grew, that means we are Getting Better at getting people to stay longer on our devices and platforms, and that is actually going to be important as we start to shift our Business Model from being device centric to one that is more around software paid services. And ltv. Cory lets talk about that, the shift in the business. For a long time, it seemed the real leg up in terms of unit sales might be the market, going into a big company and getting everyone to wear fitbit. In our company, bloomberg, if you monitor your steps using a fitbit and another application from you get credit towards buying stuff for gift cards and so on. Now you are talking a lot about health care and have been for more than a year. Is that different than a corporate focus, or is that one in the same . James it is a little bit different. Primarily our Enterprise Business before had been selling devices to enterprises. We have had large installations, 40,000, 50,000 units. We had a several hundred thousand unit deal with target, but the difference is what our Business Model is behind our health business. We are moving to one that is more based around pmpm, per member per month, which is recurring in nature and more predictable. One of the more interesting things is also looking at risk sharing models where we happened to participate in share of any savings and Health Care Costs that we achieve for our users. Cory you are getting that now . You have done deals like that . James there are promising steps. We have pmpm deals with Blue Cross Blue Shield of south carolina. The recent partnership that we had around diabetes management has the potential to move to a risk sharing payment model. Cory to that, these are the kind of contracts that will be really significant, more than 1 or 2 of revenue per deal . James you know, it is hard to say what the revenue outlook will look like. We are taking a lot of concrete steps in 2018, and you can expect to see health care being a more meaningful part of our business going forward. Cory in terms of product mix going forward, you suggested that to commend you, inventory was not a big problem. Usually there is something that does not work the way it expected to, inventory blows up in Consumer Electronics and has been the death of many companies. That has not happened to you. Particularly difficult as you are moving into new products, are they on the immediate horizon . You announced a deal with adidas today. James definitely last year at this time our inventory overhang was a huge issue, and it took us much of the first half of the year to work through that. I think one of the highlights coming into 2018 is we are coming in with a relatively clean inventory position. Even with ionic we took a market rollout. We are still launching in select apac countries right now. A 679nd you have million in the bank in terms of cash. The Free Cash Flow as you mentioned is bumpy from quarter to quarter as you alluded to a big Fourth Quarter, but the Fourth Quarter numbers not that bad. You have a very long runway in this business even though you lost money in the quarter. You actually generated cash flow. James one of the things investors can look forward to is us remaining disciplined on Free Cash Flow. Even last year despite our challenges, we only consumed about 25 million in cash. In 2018, our outlook is actually to break even on a Free Cash Flow basis while we work through this transition. Cory yeah. Your stock is not reflecting some of the positive things. For the sake of all the people that can get fit, i hope it rectifies itself. Very kind of you to join us today. Really appreciate it. James thanks. Emily thank you so much. Self driving cars are getting ready for the biggest road test in california, that is. Starting on april 2, the state department of Motor Vehicles has authorized the first trial for consumer passenger rides without a safety driver at the wheel. Until now, self driving cars needed a backup driver at the wheel. Participating vehicles will have a backup driver, but this one will be patched in via remote to take over if needed. Coming up, comcast sets the stage to take over sky, challenging 21st century fox and walt disney with a 31 billion offer. We will talk about the Massive Media bidding war, next. This is bloomberg. Emily netflix continues to ramp up its spending. Is expectedg giant to spend up to a billion dollars on content this year. They will have 700 original shows and movies on the platform over the course of 2018. Everyone is shooting for sky. Fox owns a 39 and disney has offered to buy much of fox to get it. Comcast is offering 31 billion for the paid tv company. Early tuesday morning, sky said it was premature for anyone to be doing anything because it is does not yet have a firm offer from comcast. Here to break it down for us is paul sweeney, head of north American Research for Bloomberg Intelligence and our bureau chief, Chris Paul Neary chris palmieri. First, layout were each of these offers stand or does not stand for sky. Well, right now, as you mentioned, fox is saying there is not an official offer out here so there is really nothing can commit to on their end, but they will have highlevel meetings and most likely come out with their own proposal that would at least match what comcast is offering. They have to. They cannot let a higher bid stay out there. Emily so, paul, lets talk about why comcast would want sky. The ceo spoke on a call earlier today. Take a listen to what he had to say. We have admired sky for a long time, and when it became clear that not only was sky for sale but that every share was going to potentially have a change of ownership, we thought now was the time to make the superior cash proposal. We think sky is an outstanding business. Emily so read between the lines for us. What is he saying . Paul the big thing here for Brian Roberts is comcast, while a fantastic company in the u. S. With cable and entertainment assets, it is really underrepresented in the international marketplace. Does not have many businesses outside of the u. S. , so the acquisition of sky would you would dramatically increase their National Exposure to the media business. You think about the paytv business in america. It is highly concentrated, saturated, maturing, cord cutting, so it is a very challenged business. Internationally starting in the u. K. And other parts of europe where sky operates, less penetration on the paytv side. More opportunity for growth, so if you are Brian Roberts and comcast, it is a nice diversification move for you. Emily sky is definitely feeling the love even though it is not on paper yet. Take a listen to what the disney ceo had to say a couple months ago. Sky is just an amazing platform. Not only does it provide consumers with a great Consumer Experience in terms of access to the programming, but also creates a of great programming from sports to news to all forms of entertainment. We have actually distributed to of our programming on sky. We are extremely impressed with the user interface, their ability to attract and retain customers, the Value Proposition to their consumers, and that obviously is a real crown jewel in the assets of 21st century fox. We certainly will be looking forward to having the opportunity to have sky be part of our company. Emily chris, does he really want to buy sky . Chris yes, absolutely. You almost have to feel sorry for him. He was embarrassed announcing this expansion of disneyland with star wars land, and across the channel comes the rebel fighters. He was saying on mondays tech conference very similar to what roberts was saying that he needs interNational Exposure, to tv business in europe is not declining like it is in the u. S. , and their assets like a direct to Consumer Service is similar to what he is trying to do in the u. S. A lot of things that bob iger wants at sky. He will have to work with the murdochs for some sort of a competitive bid. Emily how do you expect fox and disney to respond . Paul i think they will respond. I dont think they will let this comcast bid go unchallenged. If you are bob iger, you have to sit back and think, how badly do you want to be in the european paytv business . The price tag is getting pretty rich here. I think probably disney will come back and be the bidder two to come over top of comcast because disney will have a cleaner regulatory pass to approval even though 21st century fox is already possibly a year into their transaction and the regulatory process. Disney will have a better and easier path and might be the preferred bidder. Emily give us a little more detail on what fox is dealing with and u. K. Regulators and how that plays into this equation. Chris yes. This is a deal the murdochs have been doing for quite a long time. They keep doing things that anger the u. K. Regulators. This issue is still unresolved. It has several months away. Right now, disney and fox down by the terms of their merger agreement would be difficult for disney to make a bid for sky without some sort of agreement between fox and then, but certainly from everything we have seen, it would be potentially and easier bid if disney or comcast directly acquired sky because there is a feeling about how the murdochs have run things. Emily all right. We will keep watching this. Chris, thank you, as well as paul sweeney a Bloomberg Intelligence. Coming up, a case of the u. S. Government versus microsoft heading for the highest court in the land. What it means for the future of your data stored overseas. That is next. Bloomberg technology is Live Streaming on twitter. Check us out 5 00 p. M. In new york, 2 00 p. M. In san francisco. This is bloomberg. You are watching Bloomberg Markets middle east. I am debra mao checking worst word headlines. The possibility of four rate hikes this year. He acknowledged the strengthening economy and inflation and hinted that may cause a rethink. They said the possibility of a hike in the Fourth Quarter is 50 . Second and third quarter, up to 80 , and 70 respectively. The chances of a hike next month are near 100 . While many factors shaped the economic outlook, in previous years it has turned into tailwinds. Fiscal policy has become more stimulative and foreign demand for u. S. Exports is on a firmer trajectory. The latest to gauge of the factory floor in china came in well below expectation. Manufacturing pmi came in at 50. 3 compared to forecast of a 51. 1. Beijing puts the blame on the Lunar New Year holiday and attempts to tackle pollution. They expect outlook to improve and become stable from now on. The u. S. Is imposing duties as onh as 100 106 aluminum. The ministry of commerce in beijing says it is dissatisfied with washingtons decision and will take necessary measures to protect chinas rights. Opec secretarygeneral meets u. S. Shale executives in houston next monday, the second Consecutive Year he is to meet the cartels top rivals. Their dinner is scheduled as of thousands of executives, bankers and investors have a conference. U. S. Oil production sores passed 100 barrels a day. Aramcotish discussed in deal, in advance of the visit of prince salman. Saudi arabia has signaled it will sell about 5 of the company to raise about 100 billion as part of rents from salmans plan. He is expected to have talks with Prime Minister theresa may. I am Juliette Saly in singapore with a check of markets. We are seeing a stocks and bonds retreat. The hang seng down 1. 7 . The index of chinese stocks on track for a 9 drop over the course of the month. That will be the worst fall we have seen in the index. Bonds also falling across the board. Not a great month for asian markets. Emily this is Bloomberg Technology. I am emily chang. The u. S. Supreme court heard the case that had farreaching impacts on u. S. Data overseas. The government wants microsoft to turnover emails stored in a giant server farm in ireland. Microsoft says it doesnt have two, thanks to the Storage Communications act of 1986. It is a prime example of the law not keeping up with modern technology and the has Law Enforcement officials and Tech Companies eagerly awaiting the outcome. To get further into the case i want to bring in the vp of policy from the center for democracy and technology in washington, d. C. Also with us, a bureau chief has been covering microsoft for more than a decade. Lay out what the argument is here and how this case will proceed. What microsoft had argued was that of the mails, because they were stored in ireland, the u. S. Government went straight to microsoft come i did a run around the Irish Government and said give us the emails directly. The storage communication act passed in 1986 does not apply it is an international law. It does not really answer that conclusively, which is why we have gone to the Supreme Court. It was passed in 1986. That is 20 years before the advent of cloud services. And 24 years before microsoft started selling services in the cloud. They argued since the u. S. Government didnt go through the Irish Government to request the emails, they dont have to turn them over. And they have refused. Emily chris, your organization filed a brief supporting microsoft, why . Chris we are worried what the practical results of this will be. If we have a world in which any government can reach into any nation and grab data thats there, not only is that chaos for peoples privacy, it undermines the entire idea of cloud computing, that you get the same services in the cloud as you would if you kept information on your own servers. If you have nations reaching into each others sovereign borders and grabbing that data, it is manifestly not true. It is not good for privacy or u. S. Cloud computing. Emily that said, several justices expressed support for the government side. There are some real concerns there. Talk to us about how the justice has responded to both sides today. The justice is pushing back a little bit. Fundamentally asking about the technology and saying why does , microsoft have to decide to store this data overseas . As chris mentioned it is part of , the Value Proposition of cloud services. It has to do with latency. Otherwise if you are in ireland , and your data is stored in the u. S. , is slow down. You have chief Justice Roberts and Justice Alito pushing back on the idea that this could really impair u. S. Law enforcement and would this really hamper investigation by u. S. Law enforcement . Chief Justice Roberts saying my emails could be stored halfway across the world just because i asked for it. On the other side, you have other justices like Justice Sotomayor and Justice Ginsburg pushing back. It one of the technologies and the government seems to agree on. The challenge is the supreme , court usually doesnt wait for that sort of thing. And the bill might not get past passed. Its not the first one of its kind that been introduced. The other ones havent gone anywhere. Emily is their fear of u. S. Retaliation by customers . Chris there is a real worry. Microsoft has been trying to make the Business Case for a long time that you can trust of them, not just microsoft, all the Cloud Companies have. They came to a really hit with of the snowden revelations and the worry that the nsa was going to spy on services. If it becomes the norm that you are not protected by your own privacy laws in your own countries it is not unreasonable , to think customers will look for domestic providers that maybe more attuned to their own laws. This really is a problem that stems from an out of date law that shouldve been updated a long time ago. As we heard, it has bipartisan support and can be updated. It is congressional inertia at its worst. Emily when do you expect will get a ruling . Dina i think we are waiting for the summer. Chris, do you have information on that . Chris i am hearing june. Deciding when the Supreme Court is going to do anything is up to them, not us. Certainly by the end of the term, beginning of june. Emily the last question you mentioned new legislation. A what point will we see fresher framework of that addresses the Way Technology is used today, addresses things like the cloud . Dina the new legislation that was proposed by senator warren hatch orrin hatch and others gives the Justice Department a , lot of what it wants. The Justice Department has the demand this data stored overseas but gives companies a Legal Framework to challenge that. To say when a piece of data or a lot of data is stored in a country whose laws dont allow the things hours do, to ask a court take that into account. Chris mentioned whether they will use local providers. What happens when a foreign buildingike alibaba data centers in the u. S. The , question microsoft has raised, what happens if the Chinese Government says we want data stored in the alibaba server that is in california . It brings up a whole set of issues, what other countries will do if the u. S. Does this as well. Emily our Seattle Bureau chief, thank you. Thank you both for joining us. In the latest revolving door in technology, pinterest has named their first chief operating officer. They are looking to scale internationally a head of an ipo. Former executive at square and google for the position. They were most recently a Business Leader over the revenue product and international expansion, customer support, and partnership. She joined the Electronic Payment Company in 2013 after several years at google. Itr revolving store door story, francis fray the , woman uber brought on to help ousted his replacement. She will continue to serve as an advisor to she embarks on her own projects to advise a Leadership Development program for executives centering on women and minorities. Coming up, we will bring you coverage from barcelona. Googles top ar executive explains how the company is taking the augmented reality system public. This is bloomberg. Emily add mobile World Congress in barcelona, google talked to investors about how its bringing its augmented reality system out of beta with new features. The Vice President of ar into be vr business and operations joined us to talk about the release of ar core with Caroline Hyde. Take a listen. It is a developer platform for augmented reality on top of android. What we are excited about is 100 million phones have ar core on them. We have simplified those phones to build a highperformance bringing ar core to china. We will have a global footprint for developers to bring delightful experiences. Entertainment experiences where you can have a stormtrooper standing next to you from star wars or go shopping or you can get a couch right to your living room and make sure it fits. And education when you have kids walk around using just the phone they have. Exciting for developers. Where are you likely to see are you hoping for money to be made off of one of these . Right now, it is all about enabling developers to make ar experiences. Some will be making the next pokemon go. Some will be shopping, some will be educational experiences. Or just expression, hanging out with stormtroopers or whatever. We see that as being a very broad platform. People will have many experiences. Come when money will there is usage, retention. It is adding value. With of the android platform, how will we see this regionally broken down . Could we see it in emerging markets as well . Absolutely. Oncore currently works highend phones because it meets needs certain performance. A certain type of camera. Over time, we will build that. Not just for highend phones, but mediumrange and lowend. You can expect over the next couple years billions of phones will have ar capability built into them. And how will you oversee vr as well . When will that become more of a reality . When does it lower the price point to make it more userfriendly . Vr is where the team started, in Virtual Reality. It has added augmented reality as part of it. Virtual reality, the difference augmented reality brings digital objects into your physical world. Virtual reality and Virtual Reality capturing of the real world is where we are leaning. Come to mobile World Congress simply by putting on a headset. Be a lot more convenient and easier . We see that in education. We saw a product called exhibition. We rolled it out to students in the u. K. And the u. S. Instead of going on a physical field trip you can put on a very , simple cardboard headset and go on a virtual field trip. The idea of going places is what is resonating. We are building capture systems, headsets, cardboard on the low end. And daydream. Or you can simply slip the phone into a beautiful comfortable clothbased viewer. This works within your ecosystem. How important is it to google as a whole . Ar and vr are platforms for immersive computing. Computing networks more like we do with humans. Instead of looking at a small rectangle glass in 2d, you interact with computing in 3d. So google lens, for example, is one of the technologies where it where the phone recognizes what it sees. What a cute pair of shoes, where can i get them . The idea of recognition and enhancing that or augmenting that in our realworld is a fundamental use of our platform. On one end you can wear goggles and go there. Ar is on the other side where through a phone, you can bring objects into your physical world. Immersive computing is the way i would describe it. We are investing in all three of them to bring them at scale to consumers. Are you behind the curve, having seen ar tech . Is it something you are in a race to keep up with . We have been investing in ar with a project angle since 2014. So we recognize augmented reality is an important place important next platform for immersion. Over time we realized we did not need the hardware, we are doing everything software. Core brings many of the same capabilities to android as it does to the iphone. Emily that was google talking to Caroline Hyde in barcelona. What the man who left mcafee is doing to protect all of that. Next. This is bloomberg. Emily a followup on the story we covered on monday, facebook wants to set the record straight saying president ial candidate donald trump spent slightly more than hillary site clinton ahead of the general election after a former employee wrote an article for wire thats that trump was targeting people in more rural areas and likely paid less per ad. According to a tweet from andrew bosworth, trump actually spent slightly more for reach in most of those months. The chart only counted the price of ads based on the number of people those ads were guaranteed to reach. When it comes to cybersecurity, one of the names that jumps to mind is mcafee, they have been at the forefront of protecting computers and networks for years. Caroline hyde it caught up with chris young at the mobile World Congress in barcelona were they talked about the state of cybersecurity and how you can protect the internet of things. We are doing a few things. Number really interesting one, innovation. We took the Amazon Alexa Skills and we now have voice command capabilities for one of our products called a secure home platform. This year we announced a partnership basically bringing security to the home router. One of the biggest issues we see as homes have connected devices is that basically, those devices can be attacked. We see cameras being recruited in the botnets and we see those things happen. The secure home platform allows us to extend security to any connected device in the household. And using the voice command, it is really simple so people can have security inherent in their home. Said europeans are more data centric. [indiscernible] we see the developed world operating very similarly. The attack types are similar in countries that are developed countries. That being said, the privacy laws and regulations and expectations around privacy tend to be quite different between and among countries. The difference between the u. S. And European Countries is real. But the good news is, International Standards like gdp are, for example, it will actually drive good data privacy standards that will permeate countries around the world including the u. S. And raise the bar for security which is ultimately the goal. The bar needs to be raised because the malware is becoming ever more present. Do you still see the attacks growing exponentially . Chris Cyber Attacks are one of those items that continues to rise. Attackers are becoming more creative. They are not just using malware. As they are finding ways to compromise your username and password so they can get into your account without using malware. The attackers are becoming incredibly creative. They are executing their attacks faster, more broadly across different devices. It is one of the things we are doing with a secure platforms, trying to protect multiple devices in the home. The problem is growing and it is ways becoming harder to detect. Part of the goal for mcafee is to take some of that complexity out of the factor for the user, whether they are in the home or whether it is a Business User as caroline whether it is a Business User as well. Caroline how likely are we to see increases in attacks as more and more devices come online . Chris more devices mean more attacks, points of entry. There is more surface area for attack. A botnet was used to attack dime a couple years ago. It we dont hear about it in the headlines as much now, but theyre alive and well. Theyre adding new devices every few minutes. These largescale botnets that go after devices continue to proliferate. That will spawn new types of attacks and point the finger to why we have to have good, Strong Security that extends all the way to the home and not just on pcs, but to protect all devices at the home. Emily chris young, ceo of mcafee speaking to bloomberg and our own Caroline Hyde. That does it for this edition of Bloomberg Technology. A reminder, were livestreaming on twitter weekdays at 5 p. M. In new york, 2 p. M. In san francisco. Thats all for now. This is bloomberg. Following is a paid advertisement for the traeger renegade elite. Announcer the traeger renegade elite is the most versatile grill you could ever own. Traeger renegade elite is a superior grill that gives you that delicious woodgrilled flavor every time. Taste the difference. The traeger renegade elite. Greg i am greg. This is danielle