the last quarter, we will discuss the secret to the companies continued success in asia, and u.s. ambitions fortencent. wilbur has set the stage for one of the biggest writing services softbank and other firms will be allowed to invest up to $1 billion in uber, and can buy out the $9 billion in shares -- $9 million in shares. i caught up with cory johnson and eric newcomer. basically everything except the price, which is key. 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. we have sort of a slate of governance reforms and we have softbank and a number 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. eric: 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 board has majority were approval if he replaces his own board seat that he filled going forward. that was the major compromise. emily: what's your take on the hurdle that remains? cory: i think the weight to -- way to think about this is in terms of an ipo. this is, in some ways, could be 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 the governance structure, by 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 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. if existing 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 dream is that softbank and help broker peace -- can 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 global alliance and the cash burn goes down in india and southeast asia. companies can find a way for profitability. bloomberg technology's eric newcomer, and our editor at large, cory johnson. another ridesharing start up breaking news: lyft is rolling north.they will launch in toronto and across hamilton ontario starting next month. they're pushing into a territory long occupied a rival uber. about 50,000 toronto residents lyft thoughded the it's not available yet. $105 billion offers. next for the potential microchip deal. and, how apple plans to wrap up its a our efforts. this is bloomberg. ♪ ♪this week, qualcomm emily: rejected a $25 billion offer, pushing off what could be the largest take over battle in history for tech. i posed a question to bloomberg tech reporters, and bloomberg deals reporter. >> i think, what's really thatesting here as we knew they would get some pushback. i think they knew that as well. they rejected the price, rather than going here -- no way this deal could ever get done. that was seen as relatively positive by the 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. they have shown a willingness to 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 next move. emily: what happens now? ian: that is a very good point. the assumption by the market is this is just about a prize. if you look lower down at that statement, there is a fundamental difference in how you run a chip company. they 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 areas and that is absolutely not. emily: he has gotten a lot of what he wants. could this be the one thing he cannot make happen? ed: it is the biggest thing he has tried. this guy is a deal machine and built this company up through acquisitions, most notably the deal with broadcom. this is a hostile, a different 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 a year. it is worth much more than this, especially if you believe -- emily: if it does not happen, -- emily: apple is planning to take another step into turning its smartphone into an augmented reality device. apple is working on a 3-d center system for the iphone by 2019. i spoke to the man behind this group, alex webb, and our editor at large cory johnson. >> at the moment, what you have at the back of the phone, is two cameras on the iphone x. doingpple is looking at is the 2019 iphone, adding the depth perception on the back which allows them to do much more complicated augmented reality things with the rear facing camera. emily: was this impact any of the current technology, the face id, or is this something separate? alex: it is something separate. if you are a laser maker, it is probably good news because there are two lasers on the side of the screen, which allows face id to work. there would be another one on the back. if you take a monopoly board, a virtual monopoly board, you can play virtual monopoly on this table with the ar kit. if you put your hand in the field of view, it does not know your hand is there and ruins the illusion. adding a 3-d sensor can allow you to pick up a hat and move it to the next space. cory: i want to hear him talking about english monopoly. emily: it is not surprising apple would already be pushing forward on technology one, two, three generations out, but what do you make of this knowing about apple's broader ar strategy? cory: i think apple looks at what has happened to the pc industry. we have gotten to a point in pc's where there is no compelling reason to get a new model every year or every other year. the replacements have slow down -- have slown down for pcs and tablets. we see people replacing the tablet but at a much slower pace. people want to get a new phone after the 18 month or 12 month period, but they don't want to slow down and they want something compelling enough to get people to want to upgrade their phones. this is that kind of thing that is a big leap in one direction. alex: i think the thing is interesting in that for to a that there are two production from out at the moment that have this kind of technology already. kind of shows apple is taking the advantage because it wants to milk this cycle and the next cycle rather than putting all of the technology as soon as they can, it leaves room to advance -- it leaves them little to room advance the next generation. emily: apple working on ar headsets. how does this tie into that? alex: it can be seen as a foundation stone in some ways. there are increased numbers of augmented reality apps. the problem with augmented reality glasses at the moment is there is not a huge amount of content out there, which makes it worth people buying. if apple is building a whole ground of foundation for -- of ar content, they can parlay that into smart glasses in three or four years time. cory: they have the ability to do a lot of things with ar using air pods as well. augmented reality with the air pods with some kind of glasses as well could be somewhere they go. i think the fundamental of this is one of the development tools. if you think about pokemon go, it was ground breaking stuff, but they had to build that from the first 1 and 0 to the top. now, developers can get a head start and we might see real advances quickly. emily: new technology can be hard to imagine how you would use this. as with pokemon go, if somebody explained that to me, i do not think i understand it until i played it myself. alex, give us some ideas about how i as a regular user might benefit from this kind of technology. alex: ikea, which has an augmented reality app, it allows you to place a virtual sofa in the image of your living room and walk around and see how it might look. what it cannot do is hang a mirror on the wall or a picture on the wall. it is not as good dealing with vertical planes. it adds that some of perception to it. you have seen the walking dead app where you seize on walking around your living room. the moment a person approaches a zombie, a does not know the person is there anything place an interactive thing with your friends saying hit them in the face or god knows what. that was alex webb and cory johnson. the decision to launch a brand-new print magazine in the era of digital complications. to a newazon takes ai level. they plan to launch the first cashier list -- can -- cashier-less the main store. this is bloomberg. ♪ emily: vanity fair has named its next editor-in-chief. she comes from the new york times, where she served as the editor of their book department. she is well known in the literary community, but lesser-known in hollywood. the firstnes will be female editor of medicare since the 80's. william hearst the 3rd has unveiled a new magazine.that focuses on culture , politics, and the big issues impacting california. traditional print publications have been facing headwind. just last week, a company announced it was closing teen vogue and limiting other monthly issues, like glamour. family, who has had a legendary place in a journalism for more 130 years, sat down with us to discuss media. >> when you are starting a new business, particularly something in the area of this, 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. 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. under bezos, they are covering what is under their nose. washington to cover politics, san francisco should cover 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 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 guess. emily: raymond carter took 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. i think graydon himself thought that things were changing. emily: budgets are getting cut. the big glossy pages, maybe they won't survive. william: there were also lifestyle issues. big black cars for everybody, fancy restaurants. the hearst company is in the 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 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: 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. if you added transparency, then facebook deciding to be a commentary or news organization, it does not matter, but in the zone of advertising, you have to play by those rules. emily: that was william hearst, chairman of the hearst board and publisher. coming up, an exclusive interview with blackberry ceo. he will tell us why europe and the middle east are in the company's future. all episodes of bloomberg technology are live streaming on twitter. you can check us out at bloomberg tech tv, weekdays 5:00 p.m. new york. this is bloomberg. ♪ ♪ emily: welcome back. canadian technology company blackberry is trying to become a software powerhouse. it is trying to grow revenue by 10% to 15% over the next year. much of that growth is coming from the middle east and europe. john chen explained the plan to julie hyman. john: we're seeing growth in the middle east and in europe. tystly from securi businesses. mobile security, threat analysis, we have some big contracts. julie: is the growth of the software business going to remain quick enough to make up for the declines you have been seeing and service access fees paid by the legacy blackberry users? john: eventually it will. we do about $100 million a year on the access fee. rates -- we have roughly a mid-$700 million software business. 10% to 15%,owing you can do the calculation. thee: when you look at proportion of your revenue coming from the software business and enterprise mobility management specifically, one of the more important parts if not the most important part, you got big competitors in that market. vmware, microsoft. coming at it from a blackberry angle, what is your sales pitch when you're speaking to companies, potential clients going up against a large competitors? john: nobody can beat us insecurity. in security.ty -- that is number one. we are the number one company from ability first. we maintain that dna. if that is important to you, we are the only choice. you can take one of those other people. julie: when you look at the business over the next three to five years, directionally where you want to take a business, where you see it going? john: good question. everybody cannot ignore iot. we focus on enterprise and management. directionally where the industry is going, not just where blackberry is going, it will be in better software technology to make everything you touch safer, more secure, like your car in your home, like medical equipment. that is where i see the big potential. john: do you see any -- julie: do you see any product gaps? john: for we are today, no, but the market evolves very quickly. we are putting a lot of attention on how that applies to security, threat analysis, mediation, for mediation. we are working -- remediation. we are working on those things. i'm sure the market will continue to evolve and we will see some gaps. expect to you continue to be an will of the more along the lines of buying a company that has a revenue stream or buying something more intellectual property? john: that's interesting. i'm interested in both. i think one of the things library needs is a new strategy which is taking shape. it needs more channels, more reach into the market. yes, in that sense i have been focusing on the company that is a mature business face. mr. does not mean old, demeans growing -- mature does not mean old, it means growing to get our channel broader. the gap, we don't have a lot at this point. iperesting iv technology -- technology, we are interested in looking at it. julie: let's talk about cars. you are now in the fleet management market. your product is called radar. can you tell us how that is doing so far and how you might be expanding there? john: it is early on. the products of them to a lot of proof of concept. lots of great accolades. definitely are the leaders from a technological point of view. building a sales scheme to reach the market, investing in the marketing. early signs are very encouraging. i expect that to be a growth next year. we have two versions. one is for the containers, which is the heavy duty one. the other one is more for the chassis, managing other assets. there is so much opportunity there, it is unbelievable. is in everything. hospitals, transportation, logistics of course. who was managing all these truck and -- we are early on in the game right now. julie: how about driverless technology? -- about 60 perhaps million cars in the world today using our technology embedded. system, in thet last two or three years we added a lot of investment. we built up things like wayne changing and signaling -- wayne changing and signaling -- lane changing and signaling. connecting cars to the bigger market today for the next five years, and then it may turn into a more autonomous technology. emily: that was john chen speaking with julie hyman. softbank is deepening its ties in the middle east. the tech giant plans to invest as much as $25 billion in saudi arabia over the next three or four years. $50 billion is expected to go to a new city that the crown prince plans to build. the project is backed by more than $500 billion from the saudi wealth fund. robin lee has been outlining his strategic shift towards artificial intelligence and autonomous car's. they gave the keynote at the world conference in beijing. tom mackenzie reports. ceo a cofounder robin lee is focusing squarely on artificial intelligence. ai not just the power the search engines side, but his video content and increasingly pushing the autonomous vehicles space. it is partnered with a number of carmakers in china. bus maker.aker -- robin lee also announcing his desire to push into smart cities. logistics, transport. baidu launched a hardware product. an ai-powered smart speaker system you can deploy in your home and network with other devices and will be voice-activated and controlled. baidu is making the shift because it is facing increased pressure when it comes to revenue, particularly on spending for the likes of tencent and alibaba. baidu says they have an advantage which is a treasure -- inof data and research the search engine business. that will help them deploy ai products we can use in our homes and day-to-day lives. tom mackenzie, bloomberg, beijing. posts coming up, tencent a blowout quarter with its fastest growth in seven years as wechat plans a newly one billion smartphones in china. we will discuss the company's growth story. an online carlin provider back by tencent made his debut in hong kong. we will catch up with the ceo next. this is bloomberg. ♪ ♪ emily: in china, tencent posted the strongest growth in seven years. they posted a 61% rise in quarterly revenue. tencent is writing success of videogames and expanding internet ad business. the earnings comes after the vital percent stake in snap. peter alstom joined us from tokyo. deter: tencent has surprising growth. the fastest revenue growth since 2010. also on profits, they blew past the estimates on profits by about 14% on a gap basis, which is substantially greater. analysts are having a hard time understanding exactly what is going on. a lot of this is driven by their instant messaging services. they have we chat, which is now up to almost one billion users in the country. that allows them not just advertising the platform but to promote different products, including the games business which is proven strong for them. they have a whole catalog of games. that has allowed them to cash in on these services. emily: taking a look at the see theg chart, we revenue growth of tencent compared to the world's biggest companies. that is the white line. alibaba is the verbal, facebook the yellow, alphabet the blue /green. d.c. signs of weakness? -- do you see signs of weakness? peter: it is very much a chinese-focused company. they talk about money to reach out beyond china and expand international, like alibaba has. they have struggled a bit more. they are not as well known outside of china as alibaba is. you mentioned snap. they have taken a stake in tesla. they want to expand not just instant messaging services, for some of these games that have been quite popular. so far it has been great and helping them tremendously, but they want to move to expand internationally in the future. emily: what do you make of the 12% stake in snap? is that the first of other similar moves? very: tencent has been active in investing in startups in the u.s. some more established companies. snap is an interesting case because tencent's business model has been so successful with promoting products and marketing and advertising. it seems like the kind of skills snap could probably benefit from. a small stake even a 12% is not clear exactly what kind of collaboration there will be between the companies, but it sounds promising of tencent can bring some of those skills in advertising and marketing a particular to snap. emily: peter, vis-a-vis the other chinese tech giants, alibaba or baidu, do numbers like what we see only further cement tencent's dominance going forward? peter: it is interesting. ever since alibaba went public in 2014, alibaba and tencent have traded places as the most valuable tech company in china. just beforeis ahead trading yesterday by a small margin. this will widen the gap a little bit. tencent has been doing very well. it's business is not that will understood. it is a hybrid of facebook and twitter and the games company all wrapped up in the one. that has been very popular for them. emily: that was peter alstom in tokyo. , an online carlin provider jumped on his first day of trading in a market group by tech fever. we caught up with stephen engle in hong kong to discuss the ipo scene. stephen: trading started for yixin's ipo. congratulations on the successful listing this morning. , what a company has an ipo in hong kong, if your tencent-linked or alibaba-linked to gives you a pop. how much of a pop do you get? >> we are back by tencent in many different facets. risknts, user traffic, management. they are very different facets of the business. the pop is in the fundamental of my businesses, not just on the stock market side of thing. stephen: it helps to have one billion plus users on we chat. andy: we are currently integrating on our account systems. we are overlapping accounts. we are creating higher payment in a virtual circle. we love customers to purchase long on cars, leasing on cars using their capabilities. at the same time when we provide services to them, we are allowing or enabling customers to use it as a means for payment on the service side of it. there are many different facets for the individual who owns a vehicle in china. it's all about car life. ipo's, timing is everything. are we in a tech bubble now? andy: i think we are right in the middle. hong kong is a great place to be. east resources meet the west resources. investors locally are living currently in the market where we operate. i think hong kong is one of the best places to be right now. thehen: we are above previous tech bubble already. andy: we are operating on the fundamental basis. to howking at the market the market overall in china is driven and how the stock market and capital markets are reacting to that. and what we can deliver in the next few years. stephen: tell me how the auto market has evolved. beijing ago i lived in and i try to get out of financing. they said, do you have a house for collateral? i know you work with a third-party. have you reduce your risk? andy: when i started yixin. half years ago, pleasing penetration in china was in the -- leasing penetration in china was in the single digits. not necessarily people are rich but they are likely to use cash to pay for cars. now we are faced with a new generation of car buyers. like to get used to the credit life and pay in installments, submitting cash. yixin happens in the at the right time in the right place in china at this moment. how much growth easy and auto financing and auto insurance? andy: tremendous. the auto industry in terms of selling wise was about 3 trillion renminbi for year. you are looking at a 4 trillion 70%-80% will be in the retail end. about 3 trillion or so market to penetrate. right now we are only half that. tremendous growth in the next few years. stephen: i saw some pretty big numbers for your parent company. yixin they have been participating -- andy: they have been participating in the last two years. we had a record day. 120,000 submitted applications that day. we are looking to deliver thousands and thousands of vehicles after that. stephen: well you say is your biggest risk right now? there are a lot of cities that have restrictions, traffic restrictions. what is your biggest risk? have we actually get to thousands of different license plates because we release vehicles to consumers. we are not only the leaseholder but the vehicle owner as well and the license fee owner. we are stacking up thousands of different license plates in different provinces. the biggest challenge for yixin 's we are operating in such a big ecosystem. there are multiple parts in the system. we want to make sure every part is working together. our growth ing the next two years. emily: that was stephen engle. coming up, amazon takes ai to a whole new level. they prepared to launch their first cashier-less grocery store. listen on the bloomberg radio app, bloomberg.com, and on sirius xm. this is bloomberg. ♪ emily: square has been allowed its purchasers to except it points in 2014. -- bitcoin since 2014. amazon is a limiting checkout lines. the company has been working at the technical bugs in its cashier-less convenient store called amazon go, and it's almost ready for prime time. typical amazon fashion, we don't know every detail of how it works. we know you walk in, scan your phone, pick something off the shelf, and you walk out and it charges you automatically. we understand through athens it uses facial recognition technology. we think it recognizes your face and then pairs that with your amazon account. emily: spencer, they have been working on this for a while. why have we not actually seen this at work? spencer: they definitely had some unexpected bugs when they launched. they unveiled a year ago. at that time they said they expected open early this calendar year, which did not happen. they had to push it back. what we have understood is they are working through situations beyond individual shopper, which is a simpler transaction. they have to think through groups of people coming in. a couple or a family. there might be a situation where mom, dad and a couple of kids go in. the verse and check them of phone leaves and the other parent remains with the children. there are a lot of group shopping scenarios they had to consider and work through. emily: olivia, you uncovered a little pikachu challenge for the employees dressed up and tried to full the system? olivia: amazon has been encouraging its employees to use the store often so they can find any bugs. three very great amazon employees said they will try to trick this up and they put on three matching bright yellow pikachu onesies. they bought snacks and sandwiches and apparently the bill was accurate. it even past a pikachu test, which is really great. i think it is pretty interesting. spencer brings up the children issue and i think it's amazing the store has been delayed so long, mainly because of kids. if you are going in and shopping -- if you have ever shocked of the small child, it is difficult. emily: i have. olivia: when a touch everything that was tripping up the sensors. emily: do you think this technology is something we will see in whole foods? that would be obvious, right? spencer: i think that will be the long-term plan. amazon has very much said that is not the plan, but that may not be the near-term plan and they don't to say that because they don't be seen as a job killer. if this becomes a consumer expectation, how can they possibly leave cashiers and the checkout logjam and other stores they operate? granted, that would be a much more difficult proposition,, bigger store bigger inventory. ultimately it will get more and more ambitious with it and apply it to a bigger setting. that is what amazon is trying to do, redefined the shopping experience, take away an inconvenient piece. if they can do that in a small store, you figure they would try to apply it to a larger store. emily: we saw price cuts on thanksgiving merchandise and whole foods. is there more to come? olivia: just in time for the holidays. to can get your turkeys $3.49. prime numbers for $2.99, a $.50 drop. they are trying to get people to sign up for prime. that is the strategy behind price drops and we will expect to see them more, but with the little added "you must be a prime member" city getting at -- to get after discounts. emily: can we see more of the same of the christmas holiday coming up? spencer: this is going to be an interesting holiday. the first holiday shopping season with amazon owning whole foods. we are are already seeing them capitalize on the physical presence by introducing their gadgets. they will not put in random, nonfood items, but the amazon branded gadgets that makes the most sense to them and they see more loyal amazon shopper. things like echo devices and their fire tv sticks, those sorts of things. they are definitely capitalizing on the physical, much bigger physical presence they have with the whole foods acquisition. silverthat was spencer and olivia celestin. that doesn't for the best of bloomberg technology. we will review the latest in tech throughout the week. tune in each day at 5:00 p.m. in new york. all episodes are live streaming on twitter. check us out. that is all for now. this is bloomberg. ♪ julia: we are inside the magazine's headquarters in new york in this week's issue, the flooding of houston's energy corridor, theresa may's delicate balancing act, and a bloomberg annual business school rankings. all that to come on bloomberg businessweek. ♪ julia: i'm here