Productions. We will break down all the numbers for you. And microsoft stopped making phones years ago and now its back with a new model that will run on googles android system. Is now the time to get back into the slowing Global Smartphone market . But first, to our top story. On monday, wework pulled the plug on its ipo, at least temporarily. The new coceos of the Office Space Company say they want to focus on the core business before going public, which they still plan to do sometime in the future. Wework has been burning through cash and now plan thousands of job cuts. Kurt wagner spoke to an analyst and bloombergs alan hewitt, who covers the company. It is official. The ipo will be put on hold. So they said this morning theyre going to be pulling it, that confirms a lot of the reporting we have had in the last week or two which is that the ipo is unlikely to happen in 2019, likely to be pushed until next year. So theyre going to be spending the next few months with these show walls, trying to street, we are going to cut back on expenses, we are making changes at the company, it is no longer a company with this wide variety of businesses alongside its main core business, which is renting out office space. Kurtz is there any one specific moment you think gave the officials there the idea that they should pull back on this plan . Ellen i think it seemed pretty clear from the time last tuesday when adam neumann, the ceo and cofounder steps down, that there was going to be a lot of changes at the company. All of a sudden you have two new leaders. People who were both wework insiders but also had experience at other Large Companies outside taking over and immediately i observers, including myself, were thinking how are they actually going to continue forward with their plan as they had said earlier to finish the ipo in 2019. There is just so much to get done, there has been such a change at the company, and they were already talking from the first day of new leadership about difficult decisions that they were going to have to make in order for the company to go forward. So i think we were not surprised to see that theyre putting an official pause as they called it on their plans. Kurt dan, i want to bring you in here. I know that obviously there were some other elements of the ipo, there was some credit financing, for example, that was going to come when the ipo happened. Can you give us a sense of where weworks financials are right now . I am sure the Company Needs some money. What is the business like . Dan right now, this has been a black eye obviously for wework, as well as the ipo market really putting up a white flag, showing investors arent going to buy some of the business left ear valuations, but it really hits on cash burn profitability. They have to go back from a financing perspective to next steps here, it is the fork in the road situation. You talked about the thing, they first have to cut costs, invest some of the pieces and really put this car back in the body shop until it comes out maybe healthier for an ipo later this year into next year, you think about best case 2020. Kurtz i know that kurt i know that softbank is obviously heavily involved in this company right now. Dan, can you give us a sense of what their involvement might be moving forward . I know there is talk of maybe them providing some of that capital to wework, what is softbanks role going to be . Out, they havenn to roll up their sleeves and a hands on deck, in terms of just not the financing piece, but the business operations. Especially when you look at a lot of employees who joined the wework ipo with some of the calm perspectives and now are at least temporarily off the table, theyre really going to make sure that the house is in order, look at the Business Model and really right now what ambassadors are saying, you started seeing it with uber and lyft and wework and others, pellet gun peloton, its about profitability. There needs to be a path to profitability as risk starts to come off in this market and its a fork in the road situation for ipos. Beyond the zooms, the meats, but wework continues to be the poster child for what ultimately is investors saying no more in terms of these Business Models that lack profitability, at least the path. Kurt ellen, dan mentioned path to profitability. You mentioned tough decisions that need to be made. What actually happens next at wework . Ellen yeah, so we reported on some of the things they started to do, notably, a symbolic gesture more than anything else, the new ceo says the Company Wants to help sell the 60 jetion gulfstream company they bought last year to help adam neumann fly around and do travel with his job. That obviously got a lot of headlines, 60 million, they need more than that to keep going. They have also discussed selling several side businesses they acquired in the last few years that includes meet up, managed by q, and conductor and there are also talks about job cuts. As we reported, the company will probably cut maybe in the thousands of jobs, they currently have about 12,000 or 12,500 employees, so pretty serious. So i think theyre looking around to see where they can make changes and well have to see if that comes in different parts of the business or maybe also some trimming in the Main Business as well. Kurt you mentioned job cuts, what does this do for morale . I mean, you have employees who, just a few weeks ago, they were seeing a big payday on the horizon and all of a sudden the ceo is gone and their jobs may be on the line. What is the morale in the company, how do you move past Something Like this if you were if you are wework . Ellen yeah, i have talked to a couple of people who are still there. Obviously its tough times. You cant imagine how difficult it is to know that there are going to be these things going ahead at your company and not knowing exactly where or going through the change over the last six months. As you said, they really thought that the company was going full speed ahead to an ipo. I think for a lot of employees, theyre reassessing how much they think their stock is worth, theyre worried about their job. They are concerned about what might go forward. I think its going to be really difficult and i feel for them. Kurt yeah. Dan, one more for you, what does it mean for the broader ipo market right now . You see wework have these kind of struggles. Is this a signal for other companies thinking about ipoing, what do you take away from this from a big picture standpoint . Dan big picture, it has been a black eye, no doubt, for the broader market. I think it also shows that the companies with the strong Business Models, profitability with a secular trend, there is an appetite for those names, but the ones more frothier that continue to have sort of issues, profitability, issues with financial models investors in , this market, those are not names going to get through. Evaluations that are not down around from when they went private. So this is a shot across the bow from wall street to the valley, especially on the private side saying, look, were not going to take some of those private valuations and were going to command valuations that we feel comfortable with. So i think this was, ultimately, i think a line in the sand was drawn here with wework. And i think we are going to see the ramifications for months and maybe years to come. Taylor that was wedbush analyst dan ives and bloombergs ellen huet with our own kurt wagner. Coming up, tesla misses the mark. Third quarter deliveries of set a record of 97,000, but its not enough for investors. We will have details. And if you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor tesla news dominated the week as elon musks 100,000 delivery goal went unmet. They reported 97,000 deliveries in the Third Quarter on wednesday. Earlier this week, analysts 100,000d the car delivery goal put forward by musk may have been talk to divert attention from a less flattering trend, falling revenue. I was joined by a guest, and from detroit, david welch. It is a record for them, but not a record by much. Then you had musk saying they could probably get to 100,000 vehicles if they pushed. I do wonder if he would have said anything if shares have reacted better. I think the other more alarming thing for investors is the fact that most of the vehicles being sold are now lowerpriced, lower margin model threes, and you are starting to see a lot less take on the model s and model x, which are the really expensive vehicles. The question for the investors is ok, where are the profits going to be coming from if you are selling these smaller, vehicles . Ower margin taylor gene, what is your take on the 97,000 number . Gene taylor, it is a great number. I am in that camp that it would be perceived better if not for that friday emailed. There are two topics here what are is going going on with the fundamentals of tesla, and what is going on with communications intesa. Elon musk continues to say things that are not good for the stock. In this case, and separately, if we look at the fundamentals, the most important is the fact that they got a record. The 97,000, to put that in context, it puts them loosely on track to hit the low end of a range of 360,000400,000 vehicles for the year. When they originally came out without range, investors said it is a near absurdity that they would do that. But they are tracking toward that lowend. So i think it is, despite the mix of the greater model 3s, is model 3s generally consistent with the mix in the june quarter. My simple read is i think that this is a sign that the demand question, which is no longer about production, this is a demand question that continues to be answered. And it seems the u. S. , and parts of europe are ready for evs. Gene, what is your take on what david welch was mentioning, that they are sacrificing price for the sake of market share, selling the lowerpriced vehicles . Gene my view it is true, that is a fad, but my view is the sweet spot of electrification is going to be in the lower cost, lower margin vehicles. And it is still 2 of vehicles in the u. S. So i think that even though that is at a high level, that is not a good trade from highermargin to lowermargin, but the size of the market is so massive that i that the real sweet spot is the scurve. I think this is the right thing for the company, to continue to aggressively pursue that part of the market. Taylor david, how is demand in china . David there is Strong Demand in china relative to other markets for electric vehicles, and the government certainly helps that with a lot of basically make manufacturers sell these vehicles for certain credit systems. And there are a lot of incentives to buy them. In certain cities, you cannot get a new registration for a vehicle unless it is some kind of plugin car. So there is good demand in china. To genes point, and it was a good one, to get scale they will have to sell a lot of model 3s, a lot of lowerpriced vehicles, and there is an appetite for it in china and in europe. But the question Going Forward is still one of margins, because tesla will have to lower costs and show a profit on these vehicles. They have a very big staff at the plant, they are not the most efficient manufacturer. They have been trying to lean things up in fremont and they will in their new factories as well, but they need to show they can make a profit on these vehicles as they ramp up volume. And that is just going to be a matter of building up their systems and Getting Better scale, and proving that they can really operate this company. The shares are no longer really trading on the hope that they will grow, they are trading on whether or not they can execute the business. Taylor gene, any path to profitability . Gene i think eventually, yes, the scalability that david was talking about, they are taking this approach of kind of fit to print in the giga factory in china and what they are going to be doing in europe, the markets more recently have not been favorable to companies that are losing stories. That is not news to anyone. But what is important is when you have these massive opportunities, and i think electrification falls in a group of undeniable truth, i think that investors will be, despite the trend in the market toward profitability, i think they will more lenient towards tesla than they have been. I think they will continue to give the company room as long as the demand is there. I think they will give them room if there is a path to profitability. If i am wrong and they continue to burn cash, i think that if the demand continues to be there, they will be successful at continuing to raise money. They do not need to raise money for a few years. But i do not think that profitability is the critical question right now, i think demand is and they are doing a great job. Oflor that was gene munster Loup Ventures and Bloomberg David welch. Facebook also was in the news this week as Ceo Mark Zuckerberg appears poised to take on the u. S. Government if senator Elizabeth Warren wins the presidency. That is from leaked audio obtained by the verge of zuckerberg in a july meeting with employees. With Elizabeth Warren, who thinks the right move with facebook is to break up the company, if she is elected president , i would bet we have a legal challenge and i bet we would win the legal challenge. So you know, does that still suck for us . Yeah. I dont want to have to have a major lawsuit against our own government . Thean, that is not position you want to be in. We care about our country and we want to work with our government to do good things. The day, at the end of and someone is going to try to threaten something that existential, you go to the mat and you fight. Taylor Mark Zuckerberg also spoke on other topics, including cryptocurrency libre and chinabased app tiktok. I spoke to a representative who lobbies on behalf of Companies Like facebook and google and sarah frier, who covers facebook. Is not only a matter of regulating 20 different companies. Keep in mind, there are over a dozen different Government Agencies with oversight over the tech industry. But it is also the notion of having a centralized place where platforms can figure out what content is spam, what content are bots, what content is coming , andoverseas comprehensively address those problems. That is what mark is talking about. Since facebook is large, they have the backing and ability to see points of attack to prepare and protect american interests and american democracy. Talk to me about facebooks argument. I have heard this from several experts. You have heard it over and over, that being bigger helps them solve the problems more efficiently and with better resources. I just dont really buy it. I think that if you are facebook and you have all of these different services, certainly you can say that if you are finding this problem on instagram, you might find it on messenger too and you might find it on whatsapp, but there are also collaborations they have had with companies outside of facebook. A group to take down terrorist content. They share this terrorist content amongst themselves, they do the same thing with child explication content. So that all the companies can take it down at once. And so if the companies are broken up, you can easily have that same kind of arrangement where they all share information broadly. Taylor sarah, i want to pivot quickly to competition. Carl brought up the smart point about competition and facebook internally, talking about tiktok, social media and video platforms, facebook is responding to that competition by developing, i believe it is lasso. Did we learn anything today . Sara it is really interesting that zuckerberg wants to try and push lasso in countries where tiktok is not yet big. And i also found it interesting that he sees tiktok as instagram explorer meets Instagram Stories and that he is going to try to shift instagram in that direction. Look, he has tried this many times over the years, copying products, trying to push them out to a similar user base, but we really have not seen that take hold, except for with Instagram Stories. So its always a shot in the dark. We will see if it works. But this is it is very iktok is thethat t new existential threat on the composition decide for facebook. Taylor that was the general counsel for net choice and bloombergs sarah frier. Still ahead, President Trumps impeachment inquiry Takes Center Stage in washington. Will that affect the various antitrust probes . Probes into big tech . We explore the reach of federal resources. Also later, the big 5g rollout. We will hear from the verizon ceo. This is bloomberg. Taylor the millennial mainstay forever 21 has filed for bankruptcy. The fast fashion retailer saying it has to pay 350 million in financing to help it stay afloat, but the bankruptcy shows another sign of the punishing pressures of the broader retail apocalypse, in which the rise of ecommerce is siphoning away shoppers from brick and mortar chains. For more, i caught up with a bloomberg opinions columnist cyril hall stack sarah hall zak. They said in ecommerce comprised 60 of their sales in a court filing, and that would be a lower penetration then we see for the apparel business overall. You just dont have to look that far to see the companies that are sort of eating forever 21s lunch. Fashion know the fashionnova is a great one, tailored to instagram from the start, and forever 21 has suffered at the hands of brands like that. Taylor you mentioned instagram. Talk to me how has social media and instagram changed the way the marketing, really, and the way these fast fashion retailers can or cannot survive . A lot of these retailers have had to partner with influencers and fashionnova has gotten the likes of cardi b and kylie jenner to hawk their products on instagram. Forever 21 has maybe had a little bit less success in that realm. Instagram is also rolling out features like shoppable posts that all of these brands have to figure out how to try to master and keep up with. It is important for any Retail Branch to understand that ecosystem, but especially for one like forever 21 that courts a teen shopper, it is really important. Forever 21 in this day and age does not cut it. Enter stage right, you have ecommerce subscription models. Companies like wrench the one runway, the list goes on, really disrupting this market. What is the difference . What are these models like stitch fix or rent the runway doing to disrupt the market . Stitch fix, in particular, is a data play. They are trying to amass data on their consumer and have built their brand from the beginning on that idea, that they are not just thinking of merchandising as an art, but a real science. So thinking of everything from the measurement of a sleeve to the aesthetic of a particular garment. All of that is based on feedback that they are getting from customers from these boxes. So the theory is that they will be able to manage their inventory in a smarter way and just create a more pleasing experience for customers over the long haul. Fast fashion has been sort of more of a let 1000 flowers bloom model. A company like forever 21 is getting five shipments a week to its stores of garments, and some of them are going to be hits and some of them are going to be mrs. So these upstarts likes be misses. So these upstarts like stitch fix are bringing something new to the game. Taylor are these idiosyncratic stories or a general theme . That you have to be, like you said, more databased to succeed in this market . There are definitely idiosyncratic things about forever 21. They overexpanded their stores way too quickly. They have stores that were huge. 35,000 square feet when it only needed to be 10,000 square feet. So those are things that are specific to the decisions they made. But to me, there is no doubt that data will play an increasing role in how you market to consumers and how you build your inventory, and even your merchandising decisions in your stores and websites. We are still at this place where retailers have a lot of data and they dont know how to harness it. And the ones that figure out how to actually use it, those will and make it actionable, those are the that win. Onestaylor that was sarah hal zack of bloomberg opinions. Still ahead, microsoft is getting back into the smartphone game. But is now the right time given the global slowdown . We get the details on its foldable phone in a bit. And Bloomberg Technology is livestreaming on twitter. Check us out on technology and follow our global breaking news network tictoc on twitter. This is bloomberg. Taylor welcome back to the best of Bloomberg Technology. I am taylor riggs. The u. S. Department of justice federal Communications Commission and attorneys general across the u. S. Are keeping a close eye on bank tax. There are possible probes and inquiries into Companies Like apple, facebook, and google. As a result there have also been calls from president ial hopefuls like Elizabeth Warren and Bernie Sanders to break up some of these companies. But now with all eyes on vote impeachment inquiry into President Trump, does big tech get a breather . On monday, bloombergs kurt wagner checked in with Bloomberg Technologys Eric Newcomer and Sally Hubbard from the open markets institute. Prior to that, sally served as an assistant attorney general in the antitrust bureau of new york state. Eric i think in the short term certainly in terms of the media environment, i mean the fact is antitrust has become a political conversation, and that attention has animated a lot more action than we have seen in years, so when the story turns to impeachment, there is a degree to which facebook, google, facebook, apple can take a breath and sort of figure out their strategies. The conversation will turn back to them and keep working, but certainly, for this moment, impeachment has sucked a lot of the oxygen out of the room. Kurt sally, what do you think here . Do you think this is a lot of distraction in the press and on the surface, or is this something that might actually help behind the scenes . Sally i think it might help the press and the coverage in the and the media, but i dont think it will affect the actual investigations. At this point, they are really in the hands of the antitrust worker bees, you know, the staff attorneys who are working diligently. And you know, the political decisions were already made to investigate. Now we are in the process of document requests, document review, depositions. All that stuff takes time, and i dont think the impeachment is going to distract from the work that the attorneys are doing on the ground level. Kurt you know, theres a bunch of different investigations. There is obviously the attorneys general, the doj, the fcc. Sally, i am curious, are any of those organizations perhaps more impacted by the impeachment than others . Sally i would say doj would probably be the most impacted by an impeachment process because there have been some implications of the attorney get wrapped, could up in that whole mess. The doj potentially, but at the same time, we have a whole antitrust division and career lawyers who are already working away. So in terms of if there is any affect, the agency it would most effect i dont think state , a. G. s or the fcc will feel any impact. Kurt eric, we have seen this play out, although it has been a while, with tech Companies Like microsoft. What do you think this does from a distraction standpoint . Is there anything they can do to make sure they are not totally derailed by Something Like this . Eric you know, it just seems like they need to get their message right. I mean certainly in sort of the media ecosystem, they just keep getting hit, one thing after another, whether it is sort of apples handling of its app store, you know, there are new stories one after another where these companies have antitrust vulnerabilities. And so i think getting to a place where you sort of have more positive message, if thats possible, would be the hope. And so this is a moment where they can sort of collect themselves. But i totally agree that the actual investigation is happening and that the fact that they got in a situation where they are such a target, now it is somewhat out of their hands. Kurt eric, you mentioned the app store. We were talking before the break about the Advertising Opportunities that facebook and google have. I am wondering, is there any particular market or any particular business line that you you think might be the most vulnerable right now . Mean elizabeth , warren has been driving the conversation, put out a framework back in march focusing on areas where Tech Companies compete with people on their platforms. If you are google and selling ads or amazon selling products against people in your marketplace, i think those are areas she is focused on. But i think there is so much power in the technology industry, and now that its a bipartisan issue, where republicans and democrats are game to go after the Tech Companies, there are a lot of vulnerable areas here. Kurt sally, i am wondering, for those of us who, you know, have not seen this play out as often as others, what are the actual next steps . What is the government going to be doing that these Tech Companies are going to be seeing in the near future . Sally the next step is really reviewing some of the document requests, basically subpoenas to the tech giants, particularly you know, there is 50 state a. G. s who joined together to investigate google. They served cids. Nine who are serving cids to facebook. We have seen the house judiciary subcommittee issue an extensive document request. Right now, its going to be answering, producing those requests im sorry, producing documents that are responding to those requests, and its going to be millions of documents. So it is going to take time for the attorneys at all of these organizations and agencies to review it and figure out where are the strongest claims that can be brought, and how can they build a case . Taylor that was bloombergs kurt wagner. He checked in with Bloomberg Technologys Eric Newcomer and Sally Hubbard of the open markets institute. And coming up, microsoft unveiled its foldable phone but it is not the right time for the company to get into smartphones . We discuss. Carpooling hits its oneyear anniversary. Our exclusive conversation with ceo noam bardin in a bit. This is bloomberg. Taylor microsoft has unveiled a number of new products, including a new surface laptop with a 360degree hinge and a nine inch screen and a redesigned version of its surface pro hybrid tablet soft top. The star of the new lineup revealed on wednesday is a dual screen mobile phone that will run on googles android operating system, jumping back into a place it exited years ago. I spoke with yusuf mehdi, the Vice President of microsoft corporate modern life and devices. Yusuf the way we think about it is, we are in the surface business, and we want to solve the problem for customers, how can you be productive while being mobile . You would say, hey, can i get back to you when i get back to my pc . You want to have one that fits in your pocket with dual screens. That lets you really be productive and creative. Taylor and why the Android Software . Yusuf we had announced actually two dualscreen devices. Surface duo and surface neo. Is the one that fits in your pocket. We felt surface neo should run android because when you want to be mobile, you want to run the millions of android apps. It made sense to do that. On the surface neo, which is more of a pclike formfactor when you want to use a pc, we put a new expression of windows called windows 10s that lets you run windows apps that lets you be super productive and mobile. Taylor the Smartphone Market is very crowded. Is your foldable phone, if i can call it that, your way of differentiating yourself . Yusuf yeah, the way we think about it, it is exactly right. We think there is an opportunity for a new category. We feel like we are at the beginning of a new set of devices we think of as dual screen. We see it in the research. People are actually 44 more productive with two screens, when you have got the ability for your brain to work with right and left. We want to unlock this new category of computing that allows you to be much more creative, bring new types of apps into play, new types of postures for the device, things you have not seen before, from read mode to tablet mode to laptop to compose, a lot of new capabilities. We think this is just the beginning. We want to see the whole industry moving on this opportunity. Taylor you mentioned apps. Am i able to use then both microsoft and android apps on one . Full them over each other . Yusuf yeah. On surface duo, what will be great as we will have a superset, the best of android and the best of microsoft together. We have been working with google to make that happen for todays announcement, and we are delighted about the collaboration we have got. We think we will have Something Special for customers. Taylor talking a little bit about the phone, for lack of a better word for me, tell me about some of the improvements on the laptop. What are some of the best improvements you have made . Yusuf so some of the best things on surface neo are a couple things. First of all, really the ability to do things you cannot do today. If youre on a team call or conference call, you can now watch the video, and on the right, take notes and be able to interact between the two. You can add a keyboard when you want to and get really productive and write notes, but if you want, you can take it off. You can flip it over. So if i was, for example, during doing this interview with you and had my device with me, i could flip it and invert it to see my notes and actually show you on the screen. This ability to run full windows capability and be really productive while being mobile, that is a unique capability. Taylor this is a very, very crowded market. In just the last few weeks, we have had hardware and product launches from facebook, amazon, apple, you name it. Where does your hardware strategy fit into that competitive world . Yusuf for us, the device business is super important in three ways. First and foremost, it has become an amazing business onto itself. It is a multimillion dollar business now that is growing rapidly. Secondly, we are inspiring the ecosystem of windows pcs with our surface devices. So for example, we kick started the twoinone category that most people did not think it really existed. It is now a 30 billion market. Lastly, our devices open the opportunity for a broader cloud and Business Productivity market. So office 365, microsoft 365, they shine on top of our new surface devices. That is really how we see the opportunity from where we are coming from. Taylor quickly here, what are you doing to make sure my privacy is protected . Yusuf well at microsoft, privacy we believe is a fundamental human right. We bake it in from the getgo. We are fortunate our Business Model is not predicated on having to make money off other peoples data. We want to put that in. We put the user in control. We maximize transparency and control of your data and let you choose what you choose to share or not share. Taylor that was yusuf mehdi, microsoft corporate Vice President of modern life, search and devices. Telecom giant verizon is focused almost solely on 5g technology to drive its next wave of growth but it faces competition. At issue, whether tmobile will be able to complete its 26. 5 billion takeover of sprint. The combination would make for a threeway race of verizon, at t, and tmobile to build and capitalize on the new 5g surface. From the Techcrunch Disrupt conference in San Francisco wednesday, i talked to verizons Ceo Hans Vestberg. Hans yes, for the mobility case, we have a plan to have 30 by yearend, 250. We are adding 13 a week. We are not only doing that. We have also done [indiscernible] that our 5g for the consumer point of view should be in the most densely Populated Areas where you have important data and that is where our 5g is that is where we are focusing right now on our mobility. As you know, we also do fiveyear in the fourth quarter, we will launch an Enterprise Service with the all new capabilities of 5g. As you ko taylor you know, at t has been leading the charge a little bit in terms of nationwide rollout. When can we expect from verizon nationwide rollout of 5g . Hans i think what we are preparing right now is we have the best 4g network in the market. We will continue seeing our customers get the best technology we have. We are giving them the first , and at thef 5g same time we will continue to do that, and when we see that the market is ready we will have national , and we will have National Coverage as well, but usually, we speak less and we execute and we have it and then we talk. So that is our strategy. Taylor hans, do you need more spectrum for 5g . Have you talked about an option for some of those midbands for something that could potentially happen from the fcc . Hans first of all, there is an ongoing option, so i am limited to what i can say, but ive said it before. We have all the assets to launch a very competitive 5g experience. If that is coverage or [indiscernible] for consumers, for large enterprises, we have all of those assets. Taylor we talked about 5g, that arguably holds a little more of an advantage for the business consider Business Customers than the consumer. How can you capitalize on the Business Customer . Hans i think all will benefit from it. Designed from the beginning was very much to make the world cordless, so the 5g mobile edge compute that we want to launch at first center at the end of this year, that is really where you can as an enterprise start innovating. Doing a factory wireless [indiscernible] for example or putting up a 5g Campus Network or private network, all within two point speed and latency unparalleled to what you have today. Suddenly you can innovate around that. Me myself i have met many of the , fortune 400 enterprises in the country. Showing the platform we are going to create and how they can innovate to us. So this is a partnership with us, with the customer, and probably in some cases, some Software Developers as well. That has software they need updated. Taylor you know, it is interesting. I have been speaking with some analysts who tried 5g in south korea and other places, and some of them say it does not quite live up to the hype. How was the transition from 3g to 4g compared to 4g to 5g . Does 5g live up to all the hype . Hans i think theres a huge difference. The 3g to 4g was of course a n improvement. But to be honest, the move from 4g to 5g is even greater. The speed is so much faster. [indiscernible] is so much more and the latency. , of course, it is all about and about an ecosystem that you get devices out, and sometimes we talk a lot about consumers. And they and right now, we have four phones right now, four smartphones in the market, all of them are 5genabled. So we see that whole ecosystem coming from consumers, but then as you said yourself, but then you have an enterprise basis, and we also have a 5g home basis instead of fiber, which is a total different way of thinking about the Business Model for access and bringing it to your home. It is very different to 5g, because you can have several Business Cases on the same infrastructure, because it is the same network. It is the same infrastructure. It is not a separate network for all these Business Case i am talking about, it is the same. Taylor i want to talk about the fundamentals of your business. When can we expect 5g revenues to offset the decline in the wireline business . Hans i think we have been very clear, as we had our Capital Market days in february, when it comes to the mobility, we will have an impact of 5g in 2021. When it comes to 5g home, the same, 2021. And when it comes to 5g mobile edge compute, 2022. So we have been very clear with that. Remember, we are a large company. 4g will not go away. It is an extremely important sort of technology, and customers are on 4g. Remember, that is not strange that you will have 4g customers for a long, long time so you need to continue to have the best 4g network as well. Taylor and have you modeled out any competition, if the tmobilesprint deal does go through . Hans i think we all need to work with our own assets. What you are listening and thinking about whatever is , happening, we have our strategy and want to execute on our strategy. We believe in our network and 5g platform and the use cases we have and that is what we are going to execute on. As we see more discussion around 5g, that just proves the case, how important 5g will be for the company, for the enterprises, and for the telecom industry. Taylor you have done a restructuring recently. Do you feel like you are right sized . Hans i think that i am not sure if you are referring to our voluntary program that we had in november one year ago, which ultimately was 10,000 employees leaving over six months. That is finished right now. I think we have done some process changes in the company. We have also sought outsourcing more i. T. That we have never done before. Also, 10,000 employees have left the company in 12 months. We continue of course to be efficient, but that is part of what we do every day. But not only that, we are also looking for new growth opportunities. It is how you run a company. Taylor right. That was verizon Ceo Hans Vestberg from the tech disrupt conference wednesday. Coming up, it is a notable name in the navigation world waze. We will hear from the ceo next on how its carpooling feature is different from ridesharing. This is bloomberg. Taylor last week, rbc analyst mark mahaney called waze and google maps buried treasure for alphabet. He also said it is great for advertisers, thanks to all of the Data Collected on users rides. Waze just completed 140,000 shared rides last week. Waze ceo and founder of waze waze ceo and founder noam bardin joined me last week. Noam traffic keeps getting worse. And the only way we can really impact our everyday traffic challenges is by getting more people into every car. This is what carpool is about. It is very different from ridesharing or other forprofit businesses. This is really about trying to Work Together as a community to lower the number of cars on the road and improve our daily life. Taylor talk to me about how much revenue carpool contributes to waze. Noam so we have not released revenue numbers, but carpool in general is about sharing a car, so the rider actually pays a portion of the cost of driving the car, and the driver gets the portion of that cost back to them. There is money changing hands here, but its all below what would be considered profit. And this means you are not paying taxes. You are not a commercial driver. You are not a ridesharing business. We limit you to two rides a day. It is really about rides happening anyway. If you are driving to work anyway, take someone with you. This is not about you finding a new job. Taylor do you consider uber pool a competitor . If so, how do you compete with them . Noam no, not at all. We are focused on the long haul from the suburbs to the city. Obviously if you are in the city it makes a lot of sense to use , the Ridesharing Services and different transportation services, but if you live in the suburbs and you are driving in and sitting in an hour of traffic, you dont have many options. No one is Building Public transit, no one is investing in public roads. The government is not going to save us, so we have to take our future into our own hands. When you look in your car, your car can do. We have got extra seats waiting there. We need to take care of the friction, finding someone dealing with pavements, handling , everything around that so you can leave your car home and ride with someone else. Taylor are you still doing data sharing with cities . Noam correct. Cities have been very supportive of our carpooling efforts because they see the same problem. If you think about dot or a musicality, they are challenged, how do we get less cars on the road, so we have cities that are actually sponsoring our service, even subsidizing rides for their citizens. San diego, miami are great examples of cities who started as partners with us for data, but now have gone much deeper to help promote our Service Together to their citizens. Taylor are there any concerns about privacy in the data sharing . Noam so obviously, you opt into the service. You only share the data you wish to. And our goal is to allow users to make their own choice. We will show you who the users are who could ride in the car for you, but you have to decide who you feel comfortable with. We have a feature that allows you to ride only with people of your own gender. We have a feature that only allows you to ride with people from your own company. It really depends on how you feel in terms of trust. When you think about it, at the end of the money, youre leaving money on the table today by driving alone. It is extremely expensive, and at the same time, you are creating traffic. So here is a way to make a little money, save time, get into the age of the lane and do really doing better for the world, because 30 of global emissions are coming from transportation. Taylor you know, noam, at the top of the show, we talked about how an rbc analyst said maps and waze had the potential to be monetized. Do you see that monetization of maps helpful, or does that hurt waze . Noam so obviously, as any business, we have to be rational. Right . We have to have income to be profitable because if not, we can never achieve our mission. There is a thin line between being Mission Driven and being you know rational in terms of your financials, and we are very focused on that, and this is why we have to have a rational Business Model, and theres tremendous potential in maps in general. Right . Transportation is a multitrillion dollar business that is all being reinvented in the current years, so theres a lot to go around. That being said, how and who is something that we are all working on together as an industry to try and figure out. Taylor that was waze ceo and founder noam bardin. And that does it for this edition of the best of Bloomberg Technology. We bring you all the latest in tech throughout the week. Tune in each day, 5 00 new york, 2 00 San Francisco. Bloomberg technology is Live Streaming on twitter. Check us out technology. Be sure to follow our news network tictoc. This is bloomberg. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. Plus, get 250 back when you buy an eligible phone. Thats simple. Easy. Awesome. Call, click, or visit a store today. Carol welcome to bloomberg businessweek. Carol massar. Jason im jason kelly. Were inside bloombergs headquarters in new york. Carol we look at President Trump and what it may mean for the 2020 election. Jason how the companys culture caused it to stumble. Carol keeps climbing. Jason first up, a private