Against russians deployed in the area. By consensus, the United NationsSecurity Council today formally nominated Antonio Guterres to be the next secretarygeneral. He spent 10 years as u. N. High commissioner for refugees he said he wants to serve the most vulnerable. The victims of conflict and terrorism, the victims of the violation of rights, the victims of poverty and injustices. The 193member General Assembly is expected to approve his nomination next week. Global news 24 hours a day powered by more than 2600 journalists and analysts around the world. Bloomberg technology is next. Emily im emily chang, this is bloomberg technology. Social media star snapchat may be getting ready for the Public Market. We will bring you up to speed on what we know. Plus, does anyone want to buy twitter . Shares fall 20 on news that prospects for a deal are falling apart. And a rare interview with the founder and ceo of chinas didi, how he won a care for and took over uber in asias biggest market. But first, snapchat prepares the paperwork to go public. According to people familiar with the matter, theyre aiming to sell shares at the first of next year but timing is tricky. Sources cite three key factors that the Parent Company is watching. Joining from new york, macs chest and max chaskin with the latest. What do we know about their plans for an ipo . Seeking roughly 25 billion, which a lot of people in Silicon Valley were worried that the air is being taken out of the bubble. Thatll give a lot of confidence because its a big improvement over their last valuation. The other thing is, theyre trying to do this quickly. Its pretty stunning when you think about how fast snapchat is moving. They only added the basic measuring features most of their competitors have in the past weeks and months and they Just Announced this glasses thing, just changed their name to snap inc. , which i think i just made a mistake there its wild how fast the story has moved. The i. P. O. Is the latest thing in whats been a crazy six months. Emily why do you think theyre Going Forward with this now . I know there are a number of factors out there they said will affect their time. Timing. Part of it is they are trying to seize on some momentum. Facebooks instagram just knocked off the basic functionality of snapchat. I think there must be concern about that and you want to seize the moment right now. Its been really good. And the other thing is again, snapchat is unproven. There may be a thought like, we may as well get public now rather than risk some problem in the private market. If private funding were to dry up in the coming 12 months or 18 months, that could be a problem for snapchat if it werent public. Its a combination of seizing the moment and also trying to time the market. Emily i spoke with twitter investor chris this week and the first thing he did when he saw me is snap, not use twitter and hes been twitters biggest cheerleader for the longest time. Take a listen to what he had to say about snapchat. Snapchat is less about the product and more about the product team. Its a company thats been willing and able to reinvent itself a few times. Theyre bold and take chances. When they walked up to me after a talk i gave, they said, we loved what you stand for, we want you in our deal. I said, they walked away and i told my younger Business Partner and he said, what . And by the time we got back to them, they did a deal with somebody else, probably cost us a few billion dollars. Emily he didnt get in on that deal but others did. Hes using the product innovation, the willingness to change as a positive, perhaps in comparison to twitter which has not changed. How are what do we know about the actual numbers here in terms of users and user growth . And the actual market that snapchat has been able to bite off . Max i think were talking about 150 million daily actives which is a big number. Im not sure twitter has been sort of squirrely about its daily users in the past but i think most people believe snapchat is seeing much better engagement than twitter and when you consider that the way that snapchat has grown and how young it is, thats pretty impressive. The other thing about snapchat right now is, its just cool. I think one of the things weve learned from watching the evolution of these social networks over the past decade is, that sort of thing matters. Twitter really seems to be struggling just to retain users, to get people excited about it, where snapchat, they are just bringing out new products, new ideas, sort of these new shows constantly and theres, you know, theres a real sense of momentum. Emily well see if cool is enough to spark Public Market investors. Our Bloomberg Business week reporter, thanks so much. Well continue the story tomorrow with light speed venture partner robbie maxer, the very First Venture capital firm to back snapchat. Turning now to tech m a. Qualcomm is moving closer to a deal with a dutch chipmaker. Nxp. People familiar say the two companies are making progress on price negotiations. Shares of both stocks rose in thursday trading. On the other hand, twitter, shares plunged the most since 2015 on reports that prospects for a deal are falling apart. Joining us for the latest on both stories, alex sherman in new york. Alex, lets start with twitter. Theres reporting now that google and disney are not making a bid for twitter. That sales force may be the only suitor remaining. What do we know . Alex its not all that surprising that google at this stage would say theyre not bidding. Our initial reporting indicated they might not bid. It really doesnt make sense, i would argue, for google to bid unless it knows someone else will do a deal for twitter. I think google is fine with an independent twitter. They have a Search Partnership there. You would think the reason theyd want to buy twitter is to secure that Search Partnership for the long haul. If they felt like twitter would be an independent company thered thered be no need to buy twitter. Disney, they were with a Financial Advisor last week. We havent been able to independently confirm theyre out of this yet so we dont know that for sure yet. Rico did say theyre not going to bid. Salesforce is still there. Salesforce has not back down. I reconfirmed that today. So they are still taking a look at this. Not to to say that a deal will get done, necessarily, but maybe now salesforce sees this potential transaction has actually moved in their direction, advantageously, if they are the only bidder they might get twitter for a lower price. Emily lets say a deal doesnt get done. After all the speculation, where does that leave twitter . A potential acquisition had been priced in. Now we see the shares plunge. Alex i would imagine if no teal gets done, expect twitter shares to fall even further than they are to have. Premium bakeda into that stock for months and months now will evaporate at least for the time being. Knowing twitter, the speculation would probably come back around sooner rather than later. I think that there are a lot of people that are close to twitter. Either advisors to twitter or people at the board level that want to see a transaction get done. So even if no deal happens now, i wouldnt necessarily rule out that no deal would happen in 2017. Emily quickly on qualcomm, n xp, we know theyre getting closer to a deal on price. How soon could this happen . Alex this one may happen sooner than you think. Originally, there had been reports that a deal might be two to three months away. Then we did a little reporting on it on friday. Now im hearing things have accelerated. The two sides have made pretty good progress. Theres still a valuation gap. Its less than 10 . From what i hear, n. X. P. Wants about 100 a share, qualcomm 120 a share. Qualcomm more than like 110 a share but they are making progress. There are active discussions. Qualcomm is the only potential suitor right now. So all of those reasons lead me to believe that we may actually see a deal get done, you know, at least lets say in the next few months. Emily thank you for that update and your great reporting this week. Facebook is working on a new Virtual Reality product thats a step above the samsung gear asbut not as powerful oculus rift. Aey said they are aiming for sweet spot between the products but its not yet ready for launch. Zuckerberg also demonstrated avatars that can be customized to look like real people, read hand movements, the point is to give us all a place in Virtual Reality. As facebook works on social software. Oculus already spent 250 million on developers and is pledging 250 million more. Coming up, xiaomi pushes into the u. S. We will hear from global Vice President hugo barra and sling tv ceo roger lynch. Emily welcome back to bloomberg tech, were monitoring some breaking news, headlines from the New York Post that verizon is pushing for a 1 billion discount on its yahoo acquisition. They agreed to buy yahoo for 4. Billion, but yahoo in the midst of a hacking scandal involving information stolen from over half a billion accounts this coming from the New York Post, source telling the New York Post, well work to confirm this but verizon reportedly asking for a 1 billion discount on its deal for yahoo. Turning now to streaming, the xiaomis set top box is entering the u. S. But chinas fast rising smartphone maker is entering a crowded space, from apple to google to amazon, major tech players have products streaming video to a tv. One thing that makes the mi box stand out, preinstalled sling tv which offers internet based live tv. Here with me now, roger lynch and xiaomis v. P. Hugo barra. Thank you so much for being here. Hugo, lets start with you. Why get in this market when there are a lot of players here already . Hugo you know our company well. Our mantra, the way we do business, our d. N. A. , is what we call innovation for everyone. Its this idea of bringing Cutting Edge Technology to everyone by making products in very large scale and selling them at, you know, very small margin. We saw an opportunity here in the u. S. To disrupt these particular living room space with this model. Thats why we brought mi box in partnership with google and sling tv. Were here because the cord cutting phenomenon seems to be going mass market. This is the right time to enter this space. Emily sling is available on other devices but if you go with the mi box, you get a discount. How many subscribers does sling have and how many more do you expect . Roger we dont release these numbers because were part of dish network. They are released as total scrap his dish has. Subscribers dish has. Xiaomi has shown to be a tough innovator in china. I think this has been a launch that people have been looking forward to and have been excited about. Emily will the sling app on the mi box work with voice commands . How will this work . Roger its a fully integrated experience so one of the innovative things were doing with xiaomi is when you purchase the box itll launch right into sling tv. This, whathinking on you hear people talk about all the time, i dont watch tv anymore, why do i have a cable such . People do watch a lot of tv. Video content is at a rise but they want to be their own programmer. They say, i want to buy a box but do i lose my cable subscription . By working with sling tv we put your cable suspicion as Internet Service inside the box so you get what you had before but you know longer need a cable subscription. This is so important for the product story, why people would want to buy this story. Out of the box, when you power on mi box for the first time, connect to wifi, go directly to live television, almost as if it was a cable box. We have a special arrangement with sling whereby during that first day you get to watch live tv, entirely for free, without a paywall so you can know how well it works. Emily its interesting because in china, Live Streaming is huge. Its far bigger than it is in the united states. And im wondering if you could describe that for me a little bit and how you expect Live Streaming in the u. S. To evolve. How will it get there . Hugo so its an interesting blend of the old and new. But Live Streaming in china has taken over both for big events, which is sort of something we already know, but the personal live stream, you Live Streaming yourself is a big trend as well. Well see how much of that translates to the u. S. I think whats more interesting over the next couple of years in the u. S. Are the big things you would only catch on your regular television now being available much more easily, both live as well as on demand later. Theres unbundling trends at play here that will accelerate this trend. Emily roger, how do you see the market evolving . Roger the Pay Tv Market is in a state of transition. Five years ago, pay tv penetration by households was around 88 . Today its down close to 80 . We can see the shifts happening where consumers are moving to more stream, putting together their own bundles with Different Services that werent available before. Were just at the beginning of a long shift that were going to see, moving to streaming. Emily google unveiled google home earlier this week, will sling work on that . Roger we look to work on every device, its important to be on every streaming device people are using. Emily hugo, you can order this online but you can also buy it at walmart. Is this an indication of how we may find future xiaomi products . Hugo well see. Were here one disruptive product at a time. This is the first one poised for disruption. We wanted a wide reach Retail Partnership and google actually brought us into walmart. Theyve known retail channels really well here for some time. So one retail channel is enough for us to start with, we chose a wide reach one and well go from there. Emily you used to work for google for a long time. Ill ask you in the next block what you think of their announcement this week. Hugo, youre sticking with me. Vice president of Global Operation for xiaomi. Roger lynch, thank you for stopping by. Coming up, we dig into xiaomis other products. And smartphone competition. We will be right back. This is bloomberg. Emily walmart is boosting a stake to just under morea move to strengthen market share in the Worlds Largest online market. They are tapping jds resources to help succeed in china, where it is estimated a quarter of retail growth will come from in the next five years. Theyre spending big on ecommerce to compete with amazon. Walmart just snapped up jet. Com last month. Competition in the cell phone continues to heat up. Xiaomi unveiled its latest most premium device, in hopes to challenge apple and samsung. Just this week google emerged as another serious contender with the launch of the pixel handset, all this as the Smartphone Market reaches saturation. Vice president of Global Operations hugo barra is with me. You ran android at google for a long time, so im curious what you think about the new phones and that google is making their own phones . Hugo i had a chance to try the pixel and pixel xl yesterday. Very impressive. I am a big fan. To me the most important thing google is doing here is brand. This is the first time were seeing a phone with a big g on the back. Weve been talking about the google phone for years, but it was never the google phone. Now it finally is. Emily is this competition . Hugo for sure its competition. im delighted because i think this is the kind of move that will shake up the industry in more ways than one. Emily how . Hugo it is a different kind of innovation. I think one person put it well when he said, the pixel is the vessel for a. I. It is precisely the future of innovation in this segment. Weve been seeing display innovation, battery innovation, camera innovation for a long time, those will continue but i think where the real User Experience differential will come from in the future is the sort of things were seeing google do. Emily would you consider using the Google Assistant in xiaomi phones . Hugo we already are to an extent. We ship with voice search and google now on all our phones. When google makes the assistant, the next generation available, we are interested in using it as well. Im a big fan. Emily lets talk about the new mi phone. This is, you know, your state of the art, highest end phone. Apple just came out with the new iphones. Samsung is having some issues, which well get to, but what makes you think this can reinvigorate smartphone growth . Hugo this is our latest flagship, mi 5s, a fiveinch device, crystal display. It has a couple of innovations, one is the way you want to lock the phone. We are using an under glass fingerprint recognition technology. Instead of a button, its a piece of glass with a little dimple so you can find it when youre not looking. Its the first time someone is using this technology which makes it faster, more elegant, looks much better too. As you can see. Then the other thing were doing also is the camera that were using, this is a 1. 65 micron large, large pixel camera sensor. Coincidently, the same one we think is being use on pixel. Emily whats your take take on the samsung issue . Have you seen any impact . Massive global recalls, people, you know, could potentially end up switching to xiaomi or other brands because of it. Hugo it is a real issue. potentially very significant backlash. We are one the biggest innovators in battery technology. We were the first ones, the only ones really to talk about the density specifications of our battery because were probably the leading player in china or india about how much juice we can get out a battery volume. Battery technology is complex, you have to test it a lot, and we do. We havent encountered these kinds of issues. I think we will get past this. Hopefully theyll recover, theyll get their brand back. Its realy perhaps a small mistake that will cost them dearly but i dont think this is a longterm problem. Emily we have 15 seconds left, i know you said that its really the supply issue that are impacting the xiaomi growth numbers. When do you see the supply meeting the demand for xiaomi phones . Hugo our supply line is being reinvigorated every day. We are seeing more demand than we have ever had before, were doing everything we can to go larger and larger scale. Emily all right, hugo barra, Vice President of xiaomi. Always wish we had more time. Thank you for joining us. Coming up, the leader behind the chinese right hailing lineup giant didi might not be a household name yet. It is in china. We will be talking about him next. The top stories this hour. Samsung posted betterthanexpected earnings as chip improvements limited the impact of the note 7 recall. Samsung did not specify the Financial Impact of the recall of its Flagship Smartphone but analysts estimated could be 1 billion to 2 billion. The pound plunged over 6 against the dollar, the biggest decline since the brexit referendum result, a move that traders struggled to immediately explained. The drop was all but reversed, but some blame it on algorithmic orders, a lack of liquidity in early trade, the socalled fat finger, you could say. Exchangeoreign reserves declined more than expected in december amid speculation as the central bank resume selling dollars to support yuan. The pb is seats. Shrankcs stockpile below estimates. Global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. This is bloomberg. Lets get the latest from the markets right now. For that lets go to shery ahn. Shery angie, thanks. We are looking at asian markets, in the red board, including hong kong, which of course was gaining always will. Traded in hong kong are also in the negative, falling 0. 2 . Industrials leading gains. Remember, we have seen such a boost for hong kong stocks, h shares in particular. The h shares are heading for the best weekly gain in more than two months, since midaugust. We are seeing oil and Energy Stocks have been boosted, although today they are losing ground, so take a look at these stocks trading in hong kong,. Moving right now first of all hsbc. Theyve bought back more than 3 million shares listed in london, falling a little bit, about 1 . Take a look at China Oilfield Services losing over 2 after they were cut to neutral at ubs. Japan now coming back from its punch break. Lets see what lunch break. Lets see what they are doing, because in the morning session they declined for the first time this week. The nikkei, they will restart the afternoon session. There you go, down 0. 25 , not being helped by the japanese yen witches strengthening which is strengthening 0. 2 , strengthening for the first time in nine days now. That is a little bit of positioning as well as they head to a holiday in japan on monday. This is bloomberg. Family this is bloomberg technology. I am emily chang. You may have heard of Travis Kalanick at uber, but what about jim cheng wei . Xing won a didi chu turf or with uber and turned his company into a global force. He sat down with brad stone, the interview featured on the latest issue of Bloomberg Businessweek. Brad just got back from beijing. Tell us about this guy. Very different from travis, but also similar. Brad four years ago, hes a middle manager, sales guy in ali baba. He breaks off to do this thing, competing with 30 other ride sharing startups. Goes headtohead with another one backed by alibaba, wins that battle, then went headtohead with uber and theyve done a peace deal over the summer. Uber agreed to leave china, but got 17 of his company. He is a battle or. Battler. Emily i know hes interested in military history , he led the battle with uber like a war. Brad at uber, they call the main Conference Room the war room. There must be something about these guys. The Military Point of view is the successful one. Sure cheng wei, is very interested in military history, talks about famous battles of world war ii, called his morning meeting the wolf totem after a famous novel and movie. It was about a student studying wolves in inner mongolia. It is an intensive business, so that sort of, outlook and being brilliant. Emily hes taken out two big players but is the fight other, at least in china . Brad theres a couple of local players, but the landscape is changing now. Its going to move to Driverless Cars and then theres the world outside of china. Didi didnt agree to not expand outside china, he said he and uber may end up competing in other countries. So by no means is it over. Emily we know uber has a fleet on the ground of driver this cars. Brad who isnt in Driverless Cars . U made a bigid investments in my sense is didi is just getting started, trying to make some key hires. Cheng wei said somewhat humbly maybe well surprise you. ,but i think they have data. On thehave didi apps phones and that is a big start. Emily both didi and uber lost a lot of money taking each other on. Theyve gotten rid of some subsidies, how close are they to turning a profit . Brad i think next year theyll file to go public. I would say now they are not close. A big part of their business is facilitating yellow cabs and they hardly make any money on that at all. And we talked to drivers that complained that fares have gone up and discounts and perks for drivers have gone down. Didi like everyone else trying to rationalize their business. I expect the economics will improve and well get a look at the underlying profitability. Emily brad stone, our global tech editor, thanks for sharing that with us. A stock we are watching, koopa software surged its first day of trading, this after the company priced its shares at the high end of an increased range. Its been a slow year for i. P. O. s, but the move suggests a strong appetite for tech offerings. Carol massar and cory johnson spoke to coupas c. E. O. And asked what to expect in coming months . Take a listen. We had a great reception from investors across the country. What they can expect is for my team and i to continue to driving our company further and further, focusing on customers, ensuring success and driving measurable value to them, greater profitability better , visibility, more compliance for our platform. Emily this weekend on bloomberg, well bring you all our best interviews from the week, including our interview with gopro c. E. O. Nick woodman as they revamped the hero 5. That hits store shelves. The best of bloomberg tech this weekend on bloomberg television. Up next, how cloudbased tools are unlocking new frontiers in the way we work. This is bloomberg. Emily apple is consolidating its efforts in cloud services, combining the teams working on siri, maps, apple news, apple music, even parts of itunes into one location in their infinite loop campus. The groups currently work separately in different business parks, something thats been blamed for Software Bugs and slower development. The reorganization comes as apple hopes to Grow Services and compete with amazon. Advances in Cloud Infrastructure have enabled major changes in the way people work. File sharing and Team Communications helped teams work remotely and a crop of startups are trying to address pain points for businesses across the economy. What does the future of work look like . What is the next generation of workers looking for . Dropbox Vice President of engineering, and April Underwood, Vice President of product. Thank you for being here. Im fascinated with this topic because, you know, from the way Office Spaces look to the technology we use, its all going to change. I wonder how you think its going to change. April, lets start with you. The office space. What looks different in, say, 10 years . April different lighting. [laughter] i think that the office space, and i think that really, the experience of work has a lot of similarities of today. But i think a lot of constraints are being removed. People have the opportunity to work in a more distributed fashion, not necessarily all in the same physical space. They have the ability to work different hours and also the global aspect of the economy sort of necessitates that. But you know, more importantly, i think that theres an increased appreciation for really allowing employees to have the agency and really the flexibility to choose the work style that works best for them. Thats one of the things obviously were focused on is even though those constraints may be removed, people still need a place to go to to get work done. When they open slack, they are at work. It enables them to still be able to communicate with each other but work with a wide variety of software and do that across geography, across time zones and do it in an efficient way. Emily some people say productivity hasnt changed very much, even though how we get stuff done and the amount of flexibility we have has actually changed a lot. How would you respond to that . I think we made an incredible amount of Technological Progress over the last 20 or 30 years but at the same time, the amount of information and communication has increased way faster than technology has been able to keep up with, especially in the workplace. If you are going to look at how Productivity Software was built for the last 20 years, it was a machinelike lifecycle. Over 20 years. Whereas slack and dropbox get goal every day. Thats our base of experimentation. I think the other thing that has changed is that we are building for the user, not for the buyer. Because historically youd have to build for the people building the software not using the software. Which meant low iteration cycles. As well as essentially not really being for the user. Once you remove the constraints i think well see a ton of productivity gains over the next 20 years. Emily april, what are the biggest pain points you are trying to address. Email is a big one. Do you think email will go away ultimately . April i think people will always need ways to communicate with people outside their organization and email is great because anyone can email one another. But thats also one of its major downsides. So you know, the main problems that slack solves is brings increased transparency to organizations so conversations that happen between two individuals that may be of value now or six months from now or a year from now are available to other individuals within the organization. Slack brings that transparency by organizing conversation around work and around topics. It allows people to harness the power of that archive. But it also really brings sort of, a lot of new elements that make workplace communication just more attuned to the needs of the individual users. Notifications that allow you to tune into the things and stay plugged into the topics that are critical to your work. But were just getting started. Artificial intelligence, a lot of things we could do to help elevate the most important topics and connect the right people to one another as well as the right tools, Software Applications and so forth, thats still to come. So we feel like, were in an early stage of this major transformation around workplace communication and productivity and we think its an important , part of that, but its just the beginning. Emily how do you see a. I. , how do you intend to use a. I. To improve productivity . Aditya i think we are still in the early days of applying ai to productivity and collaboration software. In the last 10 years, we made so many advances in ai, but the uses today are to rank the ads you see, rank the search results you get, and the recommendations you have from amazon. I cant actually think of one actually super important or super useful application of it at the workplace. I cant tell you what were working on there but there are interesting things going on. Emily of course there is competition out there. The information wrote a piece about facebook trying to create a slack competitor, and reportedly peddling their own ai as a way to gauge sentiment at work, gauge how employees are feeling about certain things. What was your response to that . April yeah, i mean, im not surprised to see that there is more competition in this space. Its what were trying to solve with slack is really a widespread problem. People spend so much time searching for information, communicating with each other, and then there has been a proliferation of software, more new types of software that help people do their work better than ever before. They need to talk to each other. They need to work together. So thats one of the things we enable so im not surprised to see more companies coming into the space. There are plenty of other companies in dropboxs space, yet they are a very successful company. Were not surprised by that. A lot of the products that we hear rumors about, we havent actually seen yet. So i think its really early to say exactly, you know, whether one of these other products is going to be, you know, really meaningful swing at this. If we go back in history, i. B. M. Probably didnt anticipate that some hippies from microsoft would be able to sort of be really competitive with them and it turns out of course microsoft was. Google has run into that around social with facebook and there are applications like snapchat that are just taking the world by storm. So theres always room for new entrants. We are trying to enable that further with our platform by creating the ability to help, you know, work teams find new Software Applications. So were not just sort of at that forefront of actually coming at this in a new way but enabling the next generation in software developers. Emily you guys have been trying to take on bigger and bigger businesses. And im curious, you know, what goes into designing a product for 10 people, versus 10,000 people in a Single Organization . Aditya one of the big mental model changes we made is that we are, instead of thinking it has a 10,000 person enterprise we think of it as 1,000 10person teams. How do we get growth and how do we get essentially a team a big behemoth to think of itself as a collection of loosely organized, nimble, fast, teams. And if you can crack that nut you can rely on a lot of bottom up adoption that things slike things like slack and dropbox have seen. Emily last question to both of you, about millenials. What do they want, what do you think they want and how do you design products for them . April one thing millenials value is selfexpression. I was at twitter for five years, so everything we have seen in social reflects that. One thing that we bring with slack, we bring personality into the workplace, and we find personality is not a distraction but an enabler for teams to work better together, for individuals to do their best work. Thats just one of the many ways in which i think millenials will have the expectation to bring that personality but also, theyre just going to expect that software at work is easy to use. The trainings we used to go through to learn to use software in the workplace is going to seem like its completely from outer space to this generation that has never lived without the internet, and thats what products like ours come in. Emily youre nodding vigorous. Aditya yeah. Simple, delightful, zero training cost, i think the disparity between Consumer Software and software at work is so high, thats a hurdle we need to cross over the next 1 or 0 10 or 20 years. Emily thank you both. Dropbox president of engineering and April Underwood from slack, looking forward to the future as you describe it. s up next, could the biggest known company hacking of all time put yahoos 4. Billion Purchase Price in jeopardy . Well discuss, next. And if you like bloomberg news, check us out on the radio. Listen on the Bloomberg Radio app, bloomberg. Com and in the u. S. On sirius xm. This is bloomberg. Emily a story we are watching, alphabets Health Tech Company is joining the fight against the zika virus. Theyve developed machines and sensors to automate the breeding and sorting of sterile mosquito, long considered a strategy for getting mosquito populations urn under control and limiting the spread of zika and other viruses. The head of engineering set verily doesnt yet have a Business Model in mind, but they are confident such a large economic burden as mosquitoborne disease can create a sustainable business. Turning back now to the major tech deals in the works, we are diving into a report that verizon wants a 1 billion discount on its deal to buy yahoo after reports of a major hack attack according to the New York Post. Aol boss Tim Armstrong flew to the west coast to meet and discuss price reduction, according to the report. Joining me now, corey johnson, you spoke with tim just last week. What was the take on that . Corey we had a long conversation last week. He of course didnt want to say anything, and i kept asking. One thing we learned from him, yes, the order of events, yahoo got hacked, yahoo knew it got hacked, long pause, yahoo says, verizon, by the way we were hacked before we agreed to the merger. Emily we dont know how long the positive us. Corey but we know they didnt disclose it as part of the merger. People who look at the documents say they should have disclosed it, they should have been required to disclose. That is a problem as they try to complete the merger because it is supposed to be something they should have disclosed. The result was, i pressed him set, him and said, do you have the right to renegotiate . He said, the value of the deal, if it has changed they should have the right to renegotiate. I asked him, is it possible that such a hack could happen and theres no damage to the underlying property . He said, theres a lot of companies, like theres a target down the street from my house, a target down the street from my house, he says, and the parking lot looks pretty crowded to me. So the suggestion is, yes, they could be damaged to the underlying product, but maybe not that much. Emily is there any precedent for a price change . Corey absolutely. On hacking, no. On products being damaged and then being aware of it, yes, a false conveyance, with the Underlying Company prospects changed. Emily qualcomm and nxp . Corey think about this in a couple ways. We have a chart we put together showing the difference in gross margins. Maybe we can fire it up. I will tell you about it. They are both Profitable Companies when it comes to gross margins. You put these two companies together, if you put these two companies together, whats going to happen fundamentally is that the numbers are going to come down. The margins are going to come down from a merged company because qualcomms margins are better than n. X. P. But n. X. P. Gives qualcomm a way to get into the automotive business that they havent had. If we think about selfdriving cars, whether through a company like tesla, or this new company ford, chrysler, shery, ferrari, chevy ferrari, whoever. , as cars become more complex electronic vehicles and the chips go from being simple chips to not quite a c. P. U. In a p. C. , but maybe something in between, nxp is in a really good position to let qualcomm have access to that world. Emily we have a minute left to talk about twitter. Corey thats hardly enough time. Emily google and disney off the table, sales force maybe still there we dont know about any other suitors, stock dropped 20 . Corey topline growing so fast for twitter. Disney would love to have a 20 yearoveryear growing business on the top line. Who wouldnt. But what we see with twitter is a slowdown in user growth is so important. When Companies Look at this, im sure any company who is able to kick the tires, to get more information theyd get it. Its only growing users at 1 year over year. Emily but espn is losing users. Not all businesses continue to grow as fast. Corey 1 is not growing fast at all in the tech business. 1 is a cable business that is 40 years old. 1. 5 in this market is pathetic growth for any company. You could sell tires and grow faster than that. You dont need a tech evaluation to do it. Emily cory johnson, our tech editor at large, thank you so much for breaking it down. And that does it for this edition of bloomberg tech. We will of course keep following all those deals or potential deals. Tomorrow we sit down with matthew print to wrap up this week in cybersecurity. A reminder, check out our new website for everything you need to know about the world in tech. This is bloomberg. Rishaad noon here in singapore. I am a shot. Samsung posting better than expected thirdquarter earnings. That all managed to limit the fallout from the note 7 crisis operating income rose 5. 5 coming in at 7 billion. They did not diversify their impact from the phone recall. The pound plunged more than 6 against the dollar. The drop was immediately all but retraced. Chinas Foreign Exchange reserve declined more than anticipated to