Os 10 yosemite. For more on apples big day, i was joined by joe brown, paul kedrosky, and president of the Global Design for lunar. Take a listen. It has become a real it is easy to unlock and get things when you are authenticating. Security is very important right now, especially to apple. It is a really big deal. Faster wifi is very good. Especially people using laptop replacements. They are thinner. You can stack two of these on top of each other. And it is still thinner than the original ipad. How are you feeling . Are you still feeling mac . I am still a mac. It is what we thought we would see. We are seeing it. I saw on my twitter stream about how they are going on about thin, as if nothing matters. None of it changes the fundamental problem that the purchasing cycle for tablets is much slower than phones. There is been a real loss of momentum. Ing the devices that are thinner is not really going to change all of that. The fundamental problem they have been in that market. What worries me is that all of it reminds me of what cook is good at is optimization. Making things thinner. Improving battery life. And what he is bad at is making things that make you say, oh my goodness, apple is doing what . That is crazy. You are not ever going to get that from cook, but you will get thinner devices and longer battery life. The watch doesnt count . No, it is a natural extension. Maybe people are excited. It is into a category that seems largely stale for a long time. So, i guess it is most at the margin. What he is doing is saying, heres another natural evolution. Not here is something altogether new that will drive going forward. You said the future of apple is bright, will we see any surprises . Anything unexpected . What else do they have for us . I think the rumor blogs will have it 100 , ipads, yosemite. Ios8. 1. Better screen resolution. John, what else . I do not think we will see any surprises. [laughter] i do think thin is something. They are making these products better. They are keeping them at the front. And that is exciting. Like i have said before, sometimes it is innovation and sometimes it is evolution. Ive been using my new iphone 6 and i love it. It is better. It is fine. It is all fine. Meh. Come on, guys. I switch every year between apple and android. Android is laughing. Lapping apple. This phone is pretty vanilla. That said, like every year, if you do not have an ipad, it is good to get the next one. Good to get the new one. Where does apple go from here . The ipad is still 15 to 20 revenue. What is going to grow . Is it all about the phones . What else do they have . It is not clear what they have. We are more rapidly ruling things out. This is my disappointment. I gave you an example of earlier of not buying Cloud Services like spotify or dropbox, and going to the baffling decision of owning beats. That makes no sense, and i cant imagine that is going to change. There are obvious things they could have done and should be doing and they are not doing as they focus on optimization of battery life. It feels like dell circa 1996 and people are getting excited wait, wait. People are disagreeing. Buying beats, getting them a leg up. Joe brown and paul kedrosky, and john ensign, president of the Global Design firm lunar. Up next, Mark Andreasen say the Services Industry is freaking out over apple pay and every tech company over 20 years is heading for a split. My interview, next. Welcome back to best of bloomberg west. Im emily chang. The annual salesforce event is one of the biggest. I got a chance to sit down with Mark Andreasen for an extended discussion about the future of technology. He is cofounder of netscape and a Venture Capital firm and he sits on the boards of ebay and facebook. I asked him what he thinks about apple pay and the state of innovation at apple in general. It is going to be extremely successful. Apple is gaining strength. It is what i talked about earlier. Gaining strategic strength and you can feel apple gaining strength. And so, they will do extraordinarily well. You are on a few boards including ebay and hp and facebook. A couple decided to split up. Symantec is doing it. Why is it happening . There has been a whole series. There will be more fundamental structural change in the next five years than in the past 20. It is a consequence. The internet works now. Mobile and smart phones work now. They are pervasive in peoples lives. Second problem is, it was not available to most people. If you were female or black or gay or latino or disabled or from the wrong country or ethnicity or religion, it was exclusionary. It basically collapsed in the 1970s. It was a moment of time type of thing. The Car Companies started to do layoffs. Huge anxiety about work because you cannot rely on this longterm career path. And at that world, you got your benefits from the company. You could provide healthcare to your family. If you could not, did you know if you could take of your family . In the new world, the new way of looking at work is i want to seize opportunity. I want to start a company and contract or consult. I do not know what i want to do, so i will be an uber driver. Mark andreessen and by way of disclaimer, bloomberg lp is an investor at andreesen capital. I caught up with mark benioff for my show, studio 1. 0. There have been changes including Larry Ellison stepping down as oracles ceo. When Larry Ellison stepped down as ceo, you tweeted there has been and will always be only one ceo at oracle. What did you mean . How optimistic are you about a new ceo . I am sure mark will continue to do a good job. We all know that a Larry Ellison is a force of nature and what Larry Ellison wants, Larry Ellison will get. Whoever is the ceo will have to bend to larrys desires. I spoke to him about apple and hes worked with apple back in the day under steve jobs. How confident are you about apple under tim cook . I think tim is doing a great job. We have seen some great new products. I have a 6 plus i am joint. Apple is a great company. I think is the greatest story in american business. Steve was the greatest of the greatest, we all know that. And being the follow on will be tough. Groupon chairman, what about mobile . I will ask him about that. Welcome back. I am emily chang. Groupon has been posting big losses since the daily deals to broader ecommerce. Groupon has been adding mobile and features to help with the move. I spoke with cory johnson and groupon chairman who is also a former aol executive and the owner of the washington wizards. I asked where he sees groupons business going. I believed for a long time, this move to mobile would dramatically change the landscape in ecommerce and frankly over the past 18 months, that switch groupon is very well positioned. Half of the orders are through mobile devices and we are starting to see more and more realtime kind of commerce occurring and groupon has achieved a scale to be able to do business in 700 cities. That really positions the Company Really well as the move to mobile and the social shopping phenomena in this local phenomenon. Still today, 80 of consumers spending is 20 miles of their home base. We are seeing for millenials, the services and that groupon offers and not just the deal of the day, it is much more portalbased. Goods, travel, ticketing and now are offering a bunch of services to merchants. Our technology being embedded. I feel good about ecommerce and of the growth. We are seeing this relentless march to that. The iphone and android it really changed everything. I am seeing other categories that are changing. We made an investment in a company that is focused on returns and reversalogistics. That side of the business is booming. More goods that come back returned. We made an investment in a company about 750 million called custom ink, which is Group Shopping category. Everywhere we turn, Ecommerce Industries and businesses are being radically changed and transformed by mobile. I am more of a glass half empty guy. You see big revenue increases over 20 year over year in the last three quarters. The losses are kind of spiraling. The company, groupon, has lost over 150 million. When do you see that ever turned around . We are close to earnings right now. I am chairman and i should not talk about specifics like financials. What is going to be the change in the Business Model that will make it a profitable Business Model . Well, i think right now the business has scaled and we do not have to spend as much money on marketing and higher as many people and we will see scale take over. Google offered to buy groupon and now the company has a 3. 9 billion market cap and turned that offer down. Was it a mistake and what are some of the lessons you guys have learned along the way . Scaling a Global Business is difficult, but the promise of being able to do business in 700 cities is really fantastic. If i was on air a year ago or two years ago, people would say there are so many competitors and there is no barrier to entry. I think what the company has proved is there a barrier of building a huge marketplace with hundreds and hundreds of thousands of vendors and merchants that want to put information on the network. And in hundreds and hundreds and hundreds of millions of customers that invite you into their mailbox or their browser. That was a very expensive proposition and a build a big moat for the company. A lot of the companies we were told to watch out for, they are not around. We have really emerged as one of the main players. You look at amazon and walmart. Com and ebay and a groupon. We want to achieve scale in terms of revenue and the amount of customers we have. In terms of the lessons we learned, we were talking about the aol time warner merger and you were one of the guys and tim called it one of the worst. What do you think . Tim is a really good exex and we are close friends. It probably was of them worst merger ever, the division and strategy of convergence and looking at aol as a platform with credit cards and being able to digitize the print or video and deliver on a worldwide basis wasnt the right division. The lesson i learned was that culturally, you are not aligned. Aol was and all for one platform. We learned how to work with partners. We opened up, if you will, to bring partners like they or amazon or google onto our platform. And time warner was a great company, but it was run as a separate p l and that were managed as a separate p l. They could work with whoever they wanted. I find it interesting right now is that what they ended up doing with time warner is breaking get up and breaking it apart and trying to unlock the value that way. Instead of converging, they have been unlocking value by spinning out some of the cable businesses and of the like. Now that cable business is looking to be acquired by comcast. It depends on the time. Certainly, the vision of using a digital platform with lots of customers and technology that delivers these services was poorly executed. Groupon chairman, ted leonsis. Alibabas pay could mean huge business for american retailers. I will talk with the alibaba u. S. President , next. Welcome back to the best of bloomberg west. I am emily chang. Alipay is pushing further into the u. S. Market. Of their new service will a Chinese Shoppers buy things on u. S. Retail websites like macys. Alipay already works with some merchants. I sat down with their United States president for an interview. I asked him to explain of the business and its relationship with alibaba. People use it for almost everything over the internet. They can use it to pay bills in restaurants and pay traffic tickets. It is very hard to imagine hacking into account. This is been considered the crown jewel of alibaba. It processes every transaction in alibaba. We work very closely together as if we were one team. They are two separate companies. Structurally, they are two separate companies. You Just Launched and e pass. How does it work . We are taking a different angle. It is a Business Service to u. S. And european merchants so they can use in past to tap into a huge group of chinese consumers. Everyone in china has an alipay account. To allow United States companies to access a pass, they can have transactions with the chinese consumers. You are giving exposure to the chinese market. Macys can give you an option to pay with alipay. That is exactly right. People can go to macys. Com. They can deliver the goods to the doorstep of the chinese consumer. The thing of this, in 2013, there are over 100 million trips made by chinese consumers overseas. That experience can it continue for the u. S. Merchants. They can go to macys. Com and by the same thing they loved, so they can enjoy the same experience. When i interviewed jack ma, i asked him about the timeline for expanding in the United States. We have some Small Business in the u. S. In california, washington state, we are selling lots of seafood. We want to sell more things. We are coming here to help a lot of Small Business which i think needs to be done. How is this part of the Expansion Strategy into the added states . I totally agree with jack on this point. We compete globally. We can reach consumers who have needs globally. We provide a basic infrastructure. We help people to go to china. There are huge problems that retailers face in china. There are counterfeit goods. How does this help prevent against that . This is what i believe. If you give access to the real, authentic goods, people will enjoy the experience. You are giving people the real experience. It gave them access to the lifestyle and allows them to use what they are used to to make payment. That will be annexed an authentic experience. That is the best way to deal with counterfeits. They may be the biggest rivals and technology, we are talking about google and amazon. That rivalry has just escalated as google tries to invade ecommerce, an area that has been amazons domain. Details are coming up. Welcome back to the best of bloomberg west. I am emily chang. Google is expanding its same Day Delivery Service which went live in chicago, boston, and washington dc. The service now has three dozen merchants, including target and walgreens. They are shipping. I spoke about the brewing at war with our editor at large cory johnson and brad stone. I started by asking jordy how big a threat who is to amazon. The customer is going to gravitate to the company that can provide the best experience any fastest way to get them the products. Any company that comes out with a solution that will help if the customer the product easier and faster is going to be something people take notice of. Google shopping is cool if they have what you want. They dont have everything and amazon does. How big of a threat is google to amazon . I think amazon has a big lead. Theyve got amazon prime, it is a bit more expensive, but they have added in all sorts of extras. They also have a model that is expressly for the purpose of online delivery. Google is working with costco and staples and petco. Those are stores that are designed for instore browsing. Selection is limited. That is why amazon had so much success right off the bat. I think we will see this as a danger to amazon. White as google bother with this . I think they wanted a revenue source. I think they recognize that fundamentally these companies have the same infrastructure minus the delivery part of it. Google recognizes that they can be in a lot of businesses that amazon is in. It was not that long ago that amazon tried to launch a Search Engine and it was a big startup. It was cutting edge search technology. They backed away from it. Jeff bezos has always been at noodling around with the idea of search. Amazon is one of the biggest customers to google. I think they recognize they are both in the same business. If i am buying something, i start with amazon and if i cant find it then i go someplace else. Product listing ads are a part of google search, but they are lucrative. You pay a lot to be there. It is trying to protect the search business. You have a relationship with google. They usually your data to improve the shopping experience. What priorities does google have . I cant speak to their specific agenda or their priorities, we share the same mission in terms of giving customers transparency and information about where they can go to buy the best products. The way that we work with google is to provide integration with our data which helps transparency. If this retailer is good at shipping or if this is good at customer service, that is a win for the customer and the user. People feel more comfortable on the web and everybody wins. The Google Partnership with petsmart strikes me as so reminiscent of the bubble, all of a sudden we have dog food being delivered to your front door. It blew up back in the day. I use that. And is a bad a Business Model that people love. It was back then. Today it is all about density. You have billions of people on the internet. We see in San Francisco the google shopping vans and the google trucks in our streets. If you could make three or four stops in one neighborhood on your morning run, the math does work. Made it is not going to happen in the suburbs of cleveland. I think there is a profound change in america. I was walking to church on sunday and i saw a mail truck. On a sunday. What is a truck doing . It was filled with these amazon boxes. I am jumping for joy every time i get a box from amazon on sunday. It is awesome. I wonder if google is just new lean around. They are trying to protect their core franchise which is search. They have moved to counter amazon. Amazon has infiltrated a lot of google areas. The new york store looks like it will be a pickup center. The popup stores they have been doing for a couple of years in San Francisco. They have a tablet and a phone. They want to be able to show them to customers. Apple and facebook are going to start paying for their female employees to freeze their eggs. Is this a move to encourage them to have children or to delay it . That is next. Welcome back to the best of bloomberg west. I am emily chang. Silicon valley is known for its job perks, free food. Now apple and facebook are covering the costs for female employees to freeze their eggs. Facebook is offering full coverage an apple plans to offer it next year. They are struggling to retain women. Cory johnson and i spoke with the ceo of fertility authority, and Online Authority of egg banks. We applaud their efforts. They are definitely tech innovators. They are leading the space in the Employee Benefits area as well. Will other Companies Follow suit . We anticipate that another group of large corporations will pay for egg freezing for female employees. Are you telling young women or women who want to be moms, we want you to be a mom, just not while you work here. Is this profamily . It is profamily. They are trying to help women to the degree that they can have it all and be able to do that. I think both facebook and apple would tell couples to try and conceive the oldfashioned way. We endorse that as well. In the event that that doesnt happen and you want children later in life, this is almost like an insurance policy so you will be able to conceive in your midtolate 30s or whatever you choose with exit you may have frozen in your late 20s. Is the Company Engaging and false promises . In vitro is so very difficult and often not covered. Is this making false promises and putting the interests of the Company First . It seems like it is not really helping people have children. It is making it harder. It is a pretty invasive procedure. Its not like you just cap your fingers and your eggs are harvested and it takes a while and it is costly. The first question is about false promises. Fertility is directly related to age. It is not a linear thing where if you know that 65 of the time youre going to get pregnant. It does not mean that if you freeze 12 exit you have a 100 rate of having success. It just means the success is likelier. It is not a false hope. It is more difficult to conceive frozen eggs after the age of 35. As to the second question and the procedure being invasive, it is noninvasive. It is half of the cycle. Ive underwent several myself. You get accustomed to the injections. It is easy to inject yourself with the medication. The retrieval is a 15 minute outpatient procedure. Most of our patients return to work the same day. We dont think it is medically invasive. It is an outpatient procedure. The cost is about 13,000. That is for Companies Like ours that helps the patient finance treatment. We work with clinics around the country. We have exclusive rates and we share with our patients and allow them to finance. How widespread is egg freezing today . I know the technology has been around for 30 years. How many people are doing this . We think that egg freezing will become standard in the next five to 10 years for all professional women. We are seeing about a 45 annual increase over the last five years. We project with the research we have done about 16,000 cases of egg freezing today. We think that could increase to 50 . Our editoratlarge, cory johnson. The new movie the book of life comes with a mobile game. This is a new trend when it comes to movie marketing. Welcome back to the best of bloomberg west. I am emily chang. Foxs animated movie the book of life has hit theaters and along with it a new mobile game. Fox partnered with a company to develop a game featuring the actors from the movie. The collaboration makes the first time they have partnered with a major studio on a game. I spoke with them to see how the partnership happened. We are seen a big trend in the industry where content owners really understand the value of taking that content and integrating it into the game and understanding that in a lot of cases the revenue is generated from the game is larger than the original intellectual property. How does this improve marketing for the movie . This is a perfect winwin situation. From our perspective, the Partnership Works with marketing. The movie helps promote the game and the game helps promote the movie. We spend less money on it marketing dollars. We get this amazing animation and audio. All the great talent that you just mentioned, there will be much higher conversions and a Higher Quality game. What about the money spent on developing the game . We get all of the ip from fox. Every single still an piece of audio and animation comes to us. It compresses the time in which the game comes to market. The stars are very involved. Meaningful moments of the game are accentuated with various elements of the movie. This is a big part of the character of the game and what differentiates it from other games. Kim kardashians game is doing well. Is that changing the approach to video games . Definitely. From our strategic perspective, we are looking at 30 to 40 of our new games involving some sort of ip. It might be a celebrity or a television show. The other two thirds will be our own independent ip. What audience does this reach that you would not reach with a Traditional Campaign . They reach everyone. The definition of a gamer has changed. I havent played it yet. You have probably paid cookie crash. That is one of the big things in the market. Gamers used to be a 15yearolds playing mortal kombat. Now it is everyone. The you fear that the game could have a shorter shelf life because movies have a short shelf life . Your movie is going to be an afterthought in a few months. I think that is a good point. We chose the movie because we believe it is going to have an arc of three to four years. How is the audience different than an audience that would traditionally download a game or candy crush . Can you reach a greater swath of people . I think more people will discover it because Channing Tatum has millions of twitter followers. I think a new group of people will discover it. The movie has a little bit of a latin theme. I think it could be more global in nature, especially in the latin speaking countries. Where you putting your resources in terms of other mobile games . Our top game is cookie jam. This is on the Top Grossing Games in the world. We have another game called panda popper. Japan is the top market in the world, china will soon be the top market in the world. The u. S. Is number three. We are focusing very heavily on international. That does it for this edition of the best of bloomberg west. You can catch us monday through friday. We will see you next week. Turning ideas into action. The Clinton Global Initiative attracts some of the worlds most influential people. Leaders in business, politics, and philanthropy. The goal find solutions that promote economic recovery in the United States. On a bloomberg tv special, from this years meeting in denver, colorado, we sit down with former president and cgi founder bill clinton. We should look at this money as a onetime stimulus