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Transcripts For BLOOMBERG Bloomberg West 20240621

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First to our lead. Jack dorsey returns to twitter as interim ceo. Is it his steve jobs moment . The ceo is stepping down after five years at the helm and pressure from wall street. Dorsey was pushed out from the top position in 2008. He remained as chairman even after he left to focus on it his payment startup square. Twitter shares closed higher. If not decor jacobin who not dick or jack, then who should return to twitter . The interview is part of a longer conversation on the aftermath of the ellen pao trial. The first interview given by the firm after the verdict. Today i asked about twitter. Guest he has done a fabulous job. They are going to do over 2 billion this year in the course of those five or so years. He took the Company Value from 3 billion to 24 billion. It is a hard thing to be a ceo of a public company. He had been discussing this for a time. Emily were you consulted . And no. Emily what more would you like to see twitter do . Guest i would like twitter to be easier to use for my mom. Emily i agree. I bring up my mom. She is a experienced Facebook User but she doesnt get twitter. Guest twitter folks get that. We will see it. I would be surprised if we dont. After we invested in twitter they chose to prioritize their ad serving systems and get the business economically viable. Adam dain, mike abbott, they got that done. Emily what about the product and getting user growth . Guest that is what they have to do. Emily who could be a good ceo for twitter . Guest Reed Hastings would be great. I think there is a lot of talent out there. I think the board will do a good job finding somebody to fill dicks shoes. Emily are these realistic choices . Guest the ceo of twitter will have a job. Emily interesting thought. Not jack dorsey. Guest i think jack has stepped into this role as chairman once before. I dont know. Im not on the board. You should ask him. Emily catch the full interview next week. Joining us to discuss, ryan, formerly at twitter, and jack dorseys number two. What do you think of the picks . Guest they are fabulous picks good luck on the conversion. Emily larry pages number two in the ceo of netflix. Guest google fought hard to keep him and now he is running most of google. There is a lot of history there. It is going to be a hard one to convert. Emily what do you make of johns point that Anyone Running twitter will have a good job now. Guest that is mostly true. Have have leadership capabilities which are proven and most of those people are fully employed. John is a great salesman. He can convert these people. Emily who do you think . Guest it is more about the person to tell the story the best about what the path forward for twitter is. That is the person that gets the role. It is probably going to be someone internally. Trying to get an inside person is going to be hard. You need someone the organization trusts. Guest peter thiel. Emily not a huge fan of twitter. I believe he has called them potheads. Guest he can fix the problem. Emily what about jack . You were jacks number two. You have worked with him closely. It is realistic to think he would leave square to run twitter . Guest it is not realistic he will leave square. Square is important in the world. Jack loves square. That is inconceivable. Emily this is not going to happen. Guest he is not going to leave square. I didnt say that. Emily could he do them both . Guest bo jackson baseball and football in the same season. It is possible. Emily this is a company that needs the focus and attention of a new ceo. Guest all ceo jobs for Public Companies are difficult and challenging. I dont think that is different. It has been proven it is possible to do both roles. He will do both roles for several months. Guest it is hard to pick who the person is going to be but emily is this is steve jobs moments . Guest he rejoined three years ago and led product for a long time. That was also considered that moment. He has done a good job of vision setting. We will see. Emily another report before you were coming on the show from forbes reporting that square is considering going public this year. Is that true . Guest as i mentioned last week square will be an independent public company. The only question is time. Square is a phenomenal product. It has an incredible value and an awesome brand. That will yield a public company. When does the company decide the right opportunity and take advantage . It is growing at a rapid clip, the second largest user base in the world behind into it intuit. There are two publicly traded comparables. It should be a 30 billion company eventually. Emily this year . Guest absolutely. Emily should it . Guest i dont have a vote. Emily as i understand it we have heard that square is losing money. Is that true . Guest i doubt it. People misreport all the time squares margins. Square has phenomenal margins. They are greater than amazons. They make a lot of money. It is growing fast. It has scale. I doubt it is losing money. Emily are they fielding takeover offers . Guest i would know but i dont think the Company Wants to sell. Emily visa . Guest sure. People sell out of fear. There is usually internal fear that we cant grow fast, we cant compete. Square has no fears. Emily i will let you go. That was good. I appreciate your answers there. What everyone seems to be wanting to talk about his jack dorsey, which has gotten a lot of attention now that everyone sees what he looks like, including from his mom, not a fan of the beard. Guest that is the short version of the beard. Emily i know youre dying to talk about this. Guest as a hockey guy i relate to his playoff beard. I assume he will shave when square goes public. Guest he missed to dye his hair. He promised to dye his hair blue. Emily he cant shave his beard now or it is going to look like his mom made him do it. Snoop dogg also wants to be the ceo of twitter. He tweeted. [laughter] emily on that note, could there be a far out idea we havent thought of, someone not in the Silicon Valley realm . Guest i be surprised. It is an organization of 4000 employees. 2 billion in revenue. I dont think theyre are going to take anything high risk without knowing someone can trust them. Emily you thought google buying twitter was unlikely. Do you still think that . Guest possibly. I recommended google by twitter in 2010. That was better than the things they were trying. It is still possible. It is a good time to do that. It is an opportune moment. They would have to spend market cap. Twitter has one of the best exec team they have had today from engineering product, cfo, across the board. If they get the right ceo in place they will make a run for it. I dont see them wanting to flip it now. Emily all right. Youre sticking with me. Thank you for stopping by. As a reminder, catch my interview with Kleiner Perkins speaking for the First Time Since the verdict of the ellen pao sexual discrimination case. Revolt at reddit. Users are leaving the site in droves. Reddit shutting down discussion forms because they do not meet harassment rules. Reddit users are not putting up with it. They are leaving to a site called vote. The site has crashed. It is a discussions website and looks like red in a lot of waves. A lot of ways. The most popular thread was called welcome to all new users from the last round of censorship. We will continue to follow this story as it develops. Coming up, the 1 billion plan to conquer china. And from the google plex to startups. Next. Emily welcome back. Tencent is facing a lot of competition. No kia has field offices around the world with 6000 employees gathering data. Silicon valley unicorns arent just dazzling investors they are also attracting google executives. A former vp at ad products left for dropbox and googles the p of engineering took a role at cloudera. How are uber and job loans snatching stars . Tom, how did you get this guy to come to work for you . Tom it is a rare event. There are over 55,000 employees in the attract the best talent in the industry. On the rare occasions where the stars lineup it is possible to attract them out. I worked hard to get dan. Unicorns are rare. Emily equity, money, power what was it . Tom folks are passionate about changing the world. That is what google has done. When they see an opportunity to change the world, it attracts technical talent. It is the right culture fit. It is the right mission. If you can impact the world and transform the world then there is an opportunity to attract a strong google palette. Guest the companies that are changing the world can attract people on that. It has nothing to do with compensation. Google made a strategy decision to pay at the extreme end of the market. That has pros and cons. It has started to backfire. Once you make things about the money they become about the money. Because google is making an investment making style Compensation Structure it has those issues. That does allow for startups to say we have a different culture and priorities. You can make your stamp on the world and that is appealing. Emily do you think it has anything to do with google product languishing . Not everyone gets to work on the self driving car. Guest over the world will figure that out. With hindsight that will be in easy call. Right now they are in this awkward precipice. What is their role in that . Right now it is stable but it is not clearly stable. Emily have you transition from google to a company like cloudera. Tom it is happening fast. He is bringing in cultural change. Not cultural change in that he wants to change the pace of innovation. That is something that is inside google which makes it an exciting place. One of the things important from our industry, there is a technology we are building, we can trace it back to google. Google invented this technology. To have google joining our company is powerful. Emily we see a lot of googlers go on to star companies. Pinterest, twitter, instagram. Is what do you make of that . Google spiking innovation . Guest ive been critical for x googlers to start. I dont know if there is a successful example. I think on the enterprise side there are several examples. I found a company that was entirely x google engineers. Im more dubious. Tom in our worlds, in the data center googles data center operated by these engineers is the data center of the future. That is the town that can build enterprise software. The successful ones are those engineers who say we can build a business around this. Emily i said the world unicorn word unicorn 10 times. What you think of that term . Do you like it . Guest they are supposed to be rare. Right now there are a lot of unicorns. We need something more rare. Emily pegasus . [laughter] thank you for sticking with us. Tom riley. In todays edition of drives, can uber crack the Chinese Market . There drivers are making one million rides a day. China business has doubled in the last month alone. According to email sent to investors and seen by the Financial Times uber is planning to spend a billion dollars in china this year. It is in 11 cities and he personally oversees ubers China Business because it is his number one priority. Next, 14 million Social Security numbers and counting. New details on the new hack of federal data. And next weeks gaming extravaganza. Emily time for the bwest byte. Today the number is 14 million. That is how many could be affected by the Government Office of personnel management. That is a lot bigger than previously reported. The opm handles background checks for everyone so needs Government Security clearance. That is why the hack is so much bigger. This may not even be the final count because the hack is still being investigated. Officials are worried they are not just after personal information but passwords and Encryption Keys that could make the u. S. Vulnerable to spying. Gamers converge on l. A. Next week. E3, one of the biggest expos of the year. The founder of Electronic Arts so great to have you here on the show. You define this injure street in a way. You have defined this industry in a way. What is number one . Console games. Guest they are two years into their newest hardware devices, playstation 4, xbox one. The developers have had a chance to catch up with hardware. This will be the peak year with the best looking and most advanced games you have ever seen on a console. It is going to be the height of those new platforms. Emily the other thing is mobile. Everything is shifting to mobile. Were seeing Game Developers struggling. Guest it has been an enormous change. We are preoccupied with our smartphones. Pretty soon we will have one billion tablets. It is a tectonic shift. It is a different Business Model. There is different Business Model going on. The method of acquiring apps is different. A lot of the apps are now free and clever new Companies Like scopely were you compete for money, and twitch where people are watching other people play the industry is changing rapidly. Emily what about the Premium Model . Gamers who are nailing premium. Guest when a game gets the formula right it makes it ridiculous amount of money. It is a feast or famine. Companies that get it right occasionally struggle to repeat it. It is something that as a design thing is shifting from being an art to a science for the industry is Getting Better at it. You will see games next week that will prove out. Emily you didnt mention virtualreality prebegot details on oculus. What about Virtual Reality . Guest it is going to be a benefit in vertical markets. Otherwise, i think for a Consumer Product it is overrated. Emily last quick question, you are moving to Santa Barbara. You think it is the new Silicon Valley. Guest one of the many places that would like to be the next Silicon Valley. I have been in Silicon Valley a long time and i see in Santa Barbara a lot of what i saw in Silicon Valley when i first got here. Theres a federalist university. Great program is pretty great place to live. What i do now is i help other ceos avoid mistakes that i have made in my career. Emily we will be watching. You will have to give us updates from the beach. Thank you for joining us. Happy friday to you. Happy friday everyone pretgif. That does it for this edition of bloomberg west. We will continue the conversation monday with the makers of fallout 4. Have a great weekend. th all due respect it is time to get yourself an abacus boys. Mark happy National Turkey day. Tonight, Hillary Clintons campaign, and gop potpourri. First the white house takes it on the chin

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