president trump has picked the former president of eli lilly's u.s. division to become the next secretary of health and human services. if confirmed, azar replaces tom price. global news 24 hours a day. this is bloomberg. ♪ ♪ i'm emily chang and this is bloomberg technology. coming up, the broadcom ceo says the company remains fully remained in the acquisition of qualcomm despite the rejection of their offer. we look at what is next for the mega chip deal. uber has set the stage for one of the biggest private start of as softbank will have a bi a stake. heating up in the discussions between at&t and the government. first, qualcomm project broadcom's $105 billion offer, kicking off what would be the largest tech takeover battle in history. the chairman of qualcomm's board issued this statement saying it is the board's unanimous belief that broadcom's proposal significantly undervalues qualcomm relative to the company's leadership position in mobile technology and our future growth prospects. what are the next steps? joining me is ian king and ed hammond. ian, i want to start with you because you spoke with the broadcom ceo. what did he have to say? ian: that was before this came out. he said i thought about this, what did he have to say? i'm aware there might be issues, push back. i thought about all of them, i have talked to the customers and investors. ed, what are the details, the bid and what happens now? ed: what is interesting here is we knew that broadcom was going to get pushback. i think they knew that as well. it seems on price rather than going to the scorched earth and saying no way this deal will get done. that was seen as relatively market and you saw that reflected in qualcomm's shares which initially went down and went up when the bell opened. i think what happens next will be really important. marketthey have shown a willino go directly to the shareholders and go hostile. they are probably now going to slate for the qualcomm board. then it remains a question of how much money can they really put on the table. almost certainly they will go above the initial salvo of $70 a share. some talks are going in the mid-80's but a lot of that depends on the feedback they get now and when they get nexget ne. now?: what happens ian: that is a very good point. the assumption by the market is this is just about a prize. n atou look lower dow that statement, there is a fundamental difference in how you run a chip company. say the good times are over and no more growth to be had. we need to back down the hatches. qualcomm still believes it can grow and move into new say the e over and no not. areas and that is absolutelyemily: he hasf what he wants. could this be the one thing he cannot make happen? ed: it is the biggest thing he has tried. a deal machine and built this company up through acquisitions, most notably the deal with broadcom. a differentstile, order of magnitude from anything he has tried. even if he does get the shareholders of qualcomm on board, which is entirely possible, the real issue will be whether or not is passes the regulators. you are seeing qualcomm's existing deals they are trying to put through in europe is being held up by the eu who is taking a very careful look at this. even if this deal gets over the line in terms of the companies deciding to dance, whether it gets through the regulation hurdle is another story. emily: ian, how much is qualcomm really worth at this point given the potential of losing apple's business? ian: it depends on who you believe. if you believe qualcomm management, it might get a bit of time. we could see a licensing model. get that extra $2 billion of revenue are year. year. it is worth much more than this, especially if you believe it-- happen,f it does not how does it reshape the chip landscape for them? ian: qualcomm has to prove itself, their management are the on the hook. they have stake in the reputation of showing growth. if they don't, particularly if they push this deal back, where does that leave them? emily: what is the next step? ed: we know broadcom has to make the next move in terms of buying the bid. for qualcomm, when of the interesting plays is how they factor in the deal in this. they could potentially increase what they offer to get that deal over the line. will they get over the line in an extensive way in which it becomes unattractive? the problem is if they do that, potentially the shareholders will turn around and say this is ridiculous, you have overpaid just do not get bought out by a rival company. there are moves on both sides that could play out and i suspect you will see both parties do something that would affect the outcome of this deal. emily: ed hammond at ian king, thank you both. alphabet continues to face more antitrust scrutiny in missouri. the state attorney general has opened an investigation on google manipulated search results to benefit its own products. he is also looking into whether google's great information fromut permission competitors. the announcement comes two months after yelp sent a letter complaining to google about regulators, congress and state attorney general's. coming up, we will speak to william hearst about his decision to launch a brand-new print magazine. bloomberg technology is live streaming on twitter. check us out weekdays 5 p.m. in new york and 2 p.m. in san francisco. this is bloomberg. ♪ emily: vanity fair has named its next editor in chief. it is at the helm of the publication. she comes from the new york times where she served as editor of the book department. she is known in the literary immunity. she will be the first female editor at vanity fair since tina brown in the 1980's. william hearst, the publishing magnate, unveiled a new magazine that focuses on culture, politics and the big issues impacting california. traditional print publications have been facing headwinds to say the least. naste said itnde was limiting issues like gq and glamour. joining us is william hearst, chairman of hearst. his family has had a special place in journalism for the past 130 years. nice to have you on the show. you launched a new magazine which will be going out four times a year. why launch a magazine now in this environment? william: i think when you are starting a new business venture, especially something in the area of culture and the arts, you don't want to be in that super crowded field. i think announcing a new blog or website, we have been lost. as a publication, it has a certain permanence. it is quarterly so we don't have to keep up with news. we reflect on things that are happening. i was modeling what we did with a little bit of vanity fair and a little bit of new yorker. they come out more often so they have to stay closer to the news. this lasts a longer time -- culture, politics, technology, trends, larger scale movements. we thought print would be a easy way to do it. nowadays, the print publication is mostly electronic anyway. most of the editors work in different places. the printing is just the last step in the process.w e ar we are very ready to do anything we do in the magazine online almost simultaneously. emily: what do you think is the state of the magazine business as budgets are getting cut, people are being laid off, magazines are being canceled? william: it depends on what you are doing. if you want to do a mass pop magazine, that is difficult. if you have a very focused audience and delivering something of value to them, like the economist, i don't see that as a failing business. the new york times has had a giant search in attention because of the interest in politics. the washington post, when jeff bezos bought it, most publishers were saying he had a secret technological idea. jeff bezos had an unusual idea -- run it like a newspaper. report the news, get it straight. underneath the nose of the washington post is washington and politics. the washington post newspaper in the old days sort of wanted to be the new york times. they were opening bureaus in singapore, trying to cover the world. they were a little unstable. bezos, they are covering what is under their nose. cover politics, coverancisco should technology. you are entering a crowded field. emily: what do you think of jones as the head of the vanity fair? william: it is an interesting choice. a cover technology. book choice rather than a pop-culture choice. i will be interested to see what happens but i think they will continue to have very good writing, very good photography and maybe more culture and less politics but that is a guest. s. emily: raymond carter took a a very tough stance against president trump. william: she knows how to mine old criminal cases and modern stories and melded into a unique conversation. himself thought that things were changing. emily: budgets are getting cut. the big glossy pages, maybe they won't survive. emily: awilliam: there were also lifestyle issues. big black cars for everybody, fancy restaurants. thehearst company is in newspaper business and we run a businesslike operation. it is a business reality. emily: what would your advice be to jones? william: i hate to give it away because it is advice i want to give to myself but i think arts and culture are a very enduring interest area. more people going to museums and ballets than go to sporting events. why do people who work in silicon valley want to live in san francisco? it is not because stanford is here or because hewlett-packard was that i found here. it is because of the city. that is a part of life. that is what our magazine addresses. emily: we have been talking a lot about digital platforms and the responsibility in the age of fake news. what do you think is the responsibility of facebook and twitter? william: i think news is news. fake news is made up stuff. emily: fake stories. william: what bothers -- i think the terminology is wrong. i think -- i don't believe in the trump terminology. i believe there is opinion and commentary which is very much what modern news has become. people sitting in a studio discussing things rather than reporters covering the news. emily: some of the news is actually inaccurate. william: some advertising is inaccurate. those things have to be right. if it is not accurate, it is not news, it is opinion. an opinion can be wrong, it can be interesting, but it is a completely different genre. if you let everyone's opinion be the same, you are in the commentary business. me, you have to get the names right and the fact right or you get fired. emily:if you let everyone's opie the what is the responsibility of facebook? william: i think you have to pick. every business has -- we are a commentary business and we are good at it. or you can say you are a news business like bezos did with the post. emily: they say they are a tech business. william: they are a tech business and a much better tech business that most media companies are, but media companies are better at gathering news that facebook is. there are national business boundaries between tech. i think what has gotten facebook in trouble is they are selling advertising. once you are selling advertising, you are playing by a different set of rules. fox is mostly commentary and sells advertising, but they have to account for where these ads come from and how to report it certain ways because they are taking political ads. facebook and decide tofacebook a commentary or news organization, it does not matter, but in the zone of advertising, you have to play by those rules. emily: william hearst, great to have you on the show. william: thank you. emily: coming up, things are heating up between at&t and the justice department over the time warner deal. we will take a closer look at what is holding up the $85 billion merger. this is bloomberg. ♪ emily: at&t's fight with the justice department over the time warner deal is headed for thanksgiving showdown. officials have told at&t to address their concerns about the $85 billion merger before the november 23 holiday. if not, the government could file suit to block the deal. earlier, bob spoke with bloomberg about politics possibly getting in the mergers way. administration, anything is possible. look, as you know from your own experience, the people who populate these agencies are well intended, hard-working people. buy the political angle despite the comment that president trump made about the deal. a lot of things about this president has been -- i think there is an issue but in their mind. whether or not that leads to a remedy, hard to tell. it is a vertical transaction. i cannot think of a vertical transaction being blocked. >> the concern is somehow they would use their position to disadvantage other suppliers of programming. are they really going to take that the court? bob: that is really hard to tell. i'm not involved in the deal. on the outside, i don't have a better view than anyone. you would think that basically a nolanam would not take on ryan in his prime. you would take on somebody on a decline. it is hard to tell but there is a lot of talk. was pretty tough so we will see. these vertical deals are solved by agreements, unlike horizontal deals where there is an issue. agreement thatn i will let other people buy that stuff. >> you remember last year before the election, a monster october m%a, and then things cause for a bit. if you are a ceo from a large company and the tax bill does not have a stamp of approval yet and you are sitting there and watching this deal play out and the theater around it, does that make you hold back or do you see things pick up? bob: things have picked up in the last six or so weeks. the larger deals have a larger period, butestation things are very active. this was actually a very active year in an under -- i hate to say it -- but under $1 billion does not make the front page of the wall street journal. things are very active right now. the financing markets are fabulous. you look at what news reports are in broadcom, no problem with financing. $100 billion. that is like a nation. >> the debt market in the past couple of weeks. bob: the deal financing markets are great because the banks really make money. they hope they don't have to loan it. >> broadcom and qualcomm on the table which could be the biggest tech takeover ever has some time to play out, but the tax reform, tax cut story is interesting. do you expect any of that money to come home and actually be used beyond dividends and buybacks but to be used for transformative deals? bob: the biggest issue is there is nothing exotic in them. we can talk about the individual race but things like border adjustment tax, that was a big negative because how do you value an auto parts company or retailer or anyone who gets hit significantly? repatriation, we have been talking about it for years. people are starting to think it is real. think it will have -- it will be some of all of the above. pay down debt, do all of that stuff. thinkit provides fodder for moa especially if you are in a gargantuan company which is somebody who probably needed to put equity in the deal. guy point ofls view and a push and pull -- on the one hand, you did not wait until tax upon his pinned down, but on the other hand, is there any concern the market may not be this favorable? bob: i think it tilts to the latter. repatriation itself, that could have an effect on rates. on treasuries out and bring the money back, that would push rates up so who knows? years talkingese about repatriation, we will not have tax reform but some things will happen and repatriation seems to be one of them. emily: that was the global chair of m&a bob profusek. coming up, we will check out what could be the largest private start of deals ever. details on softbank's multibillion-dollar investment in uber. if you like bloomberg news, check us out on the radio. you can check us out on the app and bloombergradio.com. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> you are watching bloomberg technology. let's start with a check on your first word news. the u.s. and philippines say president donald trump and agreed touterte mainstream the human rights agenda in the respective countries. they met today. sarah sanders did not say if president trump had been critical of duterte's violent war on the illegal drug trade. kentucky republican senator rand paul is back at work after recuperating from violent injuries he suffered earlier this month during an altercation with a neighbor. paul, who says he's still in pain, thank people for their support in a tweet. -- pleaded not guilty cost --es -- >> let me pick up. let's have a quick look at the markets being called early in the asia-pacific. new zealand is the only market that is open at the moment, up a quarter of 1%. looking at futures right now, it does look like we might get some broader decline but let's do a fair value calculation. what we're looking at -- it's being called on the nikkei 225. a 300 point decline on the index. i'm doing a fair value calculation give or take. we might be opening flat, maybe slightly lower depending on how the dollar-yen moves from here. can we get the dollar-yen and currency chart up to give you an indication? a a few other things to mention, just before i go, we have a lot of data coming through in the asia-pacific. earnings coming through, retail sales out of china and new a a few other things to mention, just before icredit data out oft close on monday. if this is coming out of australia, but broadly speaking we are looking at a fairly moderate start to this trading session. we have come very close to the record high last week. a lack of corporate catalyst when you look at the corporate pipelines which is 10% of earnings. apart for that, fingers crossed that we get more traction as we make our way into the trading session. more from bloomberg technology next. ♪ ♪ emily: this is bloomberg technology. uber has set the stage for one of the biggestoffer. something in other firms can invest up to $1 billion in uber and buy up to $9 billion in shares to existing investors. newcomere now is eric and cory johnson with me in the studio. eric, i will start with you. uber has set the stage for one of the biggest project startup deals ever. it has approved softbank's done and what remains to be done? what terms areeric: we have basy pricehing except the which is key. and who the sellers are, we don't know that for sure and therefore we don't know the total amount that is up to be bought. have sort of a slate of governance reforms and we have softbank and a number price which is key. of other potential buyers. the thing we have been negotiating over for the last many weeks now is those governance reforms and the process by which softbank would buy the shares. emily: talk to us about some of the governance reforms. there was some contentions. steve made some compromises, benchmarks made some compromises. tell us about those. : travis wanted benchmark to put their fraud lawsuit against him on hold and agreed to end it at the end of all of this once governance reforms goes through. benchmark has been unwilling to put it on hold and really commit publicly that there would be any lawsuit. they came around and travis agreed to give the board -- the approval majority were if he replaces his own board seat that he filled going forward. approval that was the major compromise. emily: what is your take on the hurdle that remains? cory: i think the weight to think about this is in terms of an ipo. could ben some ways the ipo for the long-term shareholders. this will allow a lot of the long-term shareholders to get out of $8 billion worth of stock. it really clears up the corporate governance questions of who owns what can the company and what classes of the share of the stock may be offered in the public stock? not only would softbank be buying a billion dollars worth of shares, but by clearing up by governance structure, doing that it sets the stage for these guys to go to the public markets. interestingly in this sort of between the lines, and eric newcomer's wonderful story, is what we really see happening is with valuation. softbank has agreed to pay a higher valuation for his by doing that it sets the stage for these guys to go to the public markets. its first bunch of shares and then it's subsequent shares and they would buy from the shareholders. the shareholders could say they are paying everyone else is paying, but they can dribble down to a lower cost. softbank will invest in both worlds and the valuation of uber does not officially declined but the overall valuation will decline in the deal. shareholders sell to softbank for less than that top $70 billion market cap valuation. eric: we will know it is less. the valuation will probably be lower and we are already seeing the positioning. we had an investor reach out to say this cannot be too low so -- softbank put out a statement saying this is not done yet. the price position is really beginning and that is what cory said. this is not the last round pricing. how low it goes will be a major point of contention. cory: here is why that matters -- because the reason that matters is because what matters is what the valuation really sets up. if there are ratchet deals, if some of the investors have deals where a lower valuation issues more shares automatically, a cascade of shares to anyone that invests before the last round, they would have to do that. they could say the official valuation has not gone down so we don't have to issue more shares. there is no ratchet trigger, no devaluation of earlier shares. they don't have the flood the market with new shares because they have not officially lowered the valuation, but they actually -- of the blended valuation will be the official valuation. we will see that in the paperwork. emily: obviously, eric, a lot of unfinished business here but when softbank is officially on board, what could they contribute to uber as a strategic partner? how could they help the moderate issues abroad? eric: hopefully they can stop investing in uber's competitors. i think the dreameric: is that softbank and help broker peace in india or southeast asia where it has investments and grab. that is the hope. that is not an explicit part of this deal, but softbank has invested everywhere and i think it is in everyone's interest except probably lyft to see a the cashliance and burn goes down in india and southeast asia. and companies can find a way for profitability. emily: how do you think this will resolve ultimately? cory: if you are in early uber investor -- emily: or early employee. cory: i really think investors more than employees. emily: there are a lot of employees waiting to sell their shares. cory: there are a lot of employees that have $1 million more on the line and there are investors that have $1 billion or more. they could see this thing totally more on the line and the skyrocket in private valuation and completely collapse and never make a dime. they are looking at that saying please take me out of some of these shares. skyrocket in private softbank is coming to the rescue here. emily: cory johnson and eric newcomer, i'm sure there will be more news. we masoftbank is coming to the e here. emily:thanks so much. another ridesharing startup lyft will launch in toronto as well as ontario next month. lyft is pushing into a territory long occupied by lyft will launh in toronto as well as ontario next month. lyft is pushing into a territory long occupied by rival uber. about 50,000 toronto residents have downloaded the app this year even with no service available yet. coming lyft will launch in up, we will talk to the -- who was of one of the early believers in what -- who was one of the early believers in what is now china's biggest search engines. we will ask what makes it such a popular investment, next. this is bloomberg. ♪ emily: a story we continue to watch. since 2011, facebook is asked of the federal election commission for blanket exemption from disclosure rules, transparency which could have helped avoid russian ad spending ahead of the election. facebook has come out with a statement saying it is firmly committed to transparency in advertising say in the coming months we were required more thorough documentation from advertisers, this play more information about the advertisers, and build a searchable archive of any such ads that runs on the platform. figures venture partners has completed its largest fundraising to date. the firm raised a total of $230 million in october of which 190 ventures.s for vigor ventures. it is considered singapore's biggest private fund. joining me now is the chairman of the ventures. it is considered singapore's biggest private fund. joining me now is the chairman of the company, one of the early investors in china's biggest search engine, bided. aidu. talk to us about your strategy given your position in the southeast asian sector community. uest: we are a global fund but southeast asia is a very big part of our business. there are 600 million people in southeast asia so everything that happens in china is expected to take place in southeast asia and india. emily: you are investing in deep tech, medicine. our global strategy is deep tech. emily: what the you mean by deep tech? uest: it is not just a social network. it is not just advantage. in china, you don't just have 0eb 4.0, you also have web 3.itt in southeast asia and india, 3.0, 4.0 and 2.0. you can still have e-commerce and social networks and social engines, so it is the whole broad-spectrum. in the u.s., we are cutting edge. emily: i'm curious about your interest in medicine given the failure rate of new medicine going through clinical trials. what do you think about0 that? finian: we don't like that because it has high risk and totally binary. we love the regenerative medicine space. mainly because nobody prays for an ipad. they pray to save their lives. tople are much more willing pay to save their life. emily: what do you make of softbank coming into the industry with $100 billion to invest? finian: it is a game changer. emily: doesn't it make it harder for firms like you? finian: easier, because they come in very late. they are a multibillion fund that by a very high prices are very because they committed. when we invest early, once they come in, it is an exit for us. emily: how does it change the landscape? finian: the whole world has changed mainly because people are looking for returns in the past could invest in fixed incomes and equities and private equity. now there are no returns from fixed income so they have no choice and put all of the money in equity and private equity. as a result you get the likes of uber. ,m etc. you have $200 billion unicorns today. this has never happened before. emily: what do you think the biggest opportunities are in emerging markets? finian: opportunities are everywhere. in the global markets, it is in tech. in emerging markets -- like you have a piece of bread, butter is on the other side, you turn it around and everything is up for grabs. in the u.s., the civil things have been done. low hanging fruits are got. in emerging markets, you have low hanging fruit everywhere and you have high hanging fruit which requires technology. emily: what is your take on the rise of cryptocurrency? what are the risks, the potential payoffs? finian: it is definitely here to' stay. there is no question that the percentage of cryptocurrency will be larger than today. that does not mean a particular cryptocurrency will continue to go up. some will grow. trends, the these increasing amount of capital in the environment, how is that changing your approach? finian: we always by definition need to be the latest, techiest space every time otherwise we are dead, because we are a venture capitalist. megatrends are ai, ar, the sharing economy. in the emerging markets, you have all the catch ups. we invested in it he payment company that is trying to create a paypal like environment for india. as long as you don't have payment, you don't have e-commerce. e-commerce is growing like everywhere. everywhere. you have heard of alibaba single day. it dwarfed a similar event like that in the u.s. emily: one trend that is overhyped, what is it? finian: that is a tough one. emily: somewhere where you are not investing. finian: there are many places in which we don't invest. a lot of these places get overhyped and then under hyped. it does not meet if it is overhyped we avoid it. we wait for it to burst and then we come in. thank you so tan, much for joining us. coming up, another venture capital firm feeling the pain of misconduct claims. details on the resignation. tuesday, kevin brady will join bloomberg tv to talk about the latest on tax reform. you can catch is that conversation at 1 p.m. eastern time. this is bloomberg. ♪ alibaba's single day generated a record 2.3 billion dollars in sales at the e-commerce giant works with traditional retailers. the chinese company hosted a gala with nicole kidman and ph arell williams. another sexual misconduct case the vc the vc world. claims of misconduct against the ceo. is known for backing elon musk companies and serves on the board of tesla and spacex. he is leaving the firm to focus on legal matters including taking legal action against those who have made those statements. joining me is alan hewitt. what do we know about what happened? >> not a lot. we know over the summer, dfj hired an outside law firm to investigate steve jurgensen after they found indirect allegations about his conduct. they did not say if it was sexual misconduct. we know that process is ongoing and it seems like as of today, he has resigned. is on leave from the boards of tesla and spacex which are two companies you are really associated with. we don't know what comes after that. his official statement about going after those who have defamed him, we don't even know yet what allegations he is now facing. emily: there was a female entrepreneur that made a allegingpost something. we did get a statement from dfj that says their culture has been and will continue to be built on the values of respect and integrity in all of our interactions. to beer happened, it had quite significant given this is a firm that has his name on it. ellen: we also don't know whether he is going to stay on the board with some of the other companies he is involved in. that involves planet labs, synthetic companies. he is a very involved investor and i think it remains to be seen how this is going to fall out for him. emily: he was speaking at a tech conference last week in washington state. this did not come up at all. certainly interesting given the people who lost their jobs, resigned, publicly disgraced. ellen: it is interesting his firm -- it seems like there was reporting that got the firm to give the statement saying there was an investigation and that he stepped down. it did not really come out of the usual pattern which is usually a media report with multiple accusers going forward and seeing this is what happened. we are seeing the effects but we don't really know what happened between him and other people that mighhe might have worked with. emily: you have a story out about justin kobach, the first domino to fall. six women saying he sexually harassed them. trying to start -- ellen: it is five months after the story came out that had these six women and then new york times and other women. multiple women went on record saying he made unwanted sexual advances towards them while they were trying to pursue a business relationship with him. it has been five months, he has been off the radar. he was really the first big-name in tech, among the venture capitalists. yeah, he is going to colleges. mater, to duke, his alma and gave a talk in front of students at a business class. undergraduate students, morning aboutbout -- warning them the workplace. he wants to advance women by eradicating bro culture. i think it was received with a lot of mixed responses from when it and men who really care about -- from women and men who care about diversity in tech. i think that is not a topic he should be talking on. whose advice and authority that young men and women should be listening to. emily: their sympathizers are not buying it. a lot of questions. ellen, thank you for joining us. that does it for this edition of bloomberg technology. we are live streaming on twitter. check it out weekdays 5 p.m. in new york and 2 p.m. in san francisco. that is all for now. this is bloomberg. ♪a lot of questions. announcer: from our studios in new york city, this is "charlie rose." charlie: david brooks is here. he has been an op-ed columnist for "the new york times" since 2003. his writing spans the world of politics, culture and the social sciences. he is the author of several books. his latest column out today examines observations from tuesday's election results and what they tell us about the evolving nature of voting trends across the country. i am pleased to have david brooks back at this table. welcome. david: good to be back here. charlie: nice to have you up here, it really is. i want to talk in broad themes about some of the things you have been writing about. in today's column, "we are