The last quarter. We will discuss the secret to the companies continued success in asia, and its u. S. Ambitions. Uber has set the stage for one of the biggest deals ever. The service has approved buy a 1s offer to billion stake. Softbank and other firms will be allowed to invest up to 1 billion in uber, and can buy out the 9 million in shares. I caught up with cory johnson and eric newcomer. We have basically everything except the price, which is key. And who the sellers are, we dont know that for sure. Therefore, we dont know the total amount that is up to be bought. But we have sort of a slate of governance reforms, and we have softbank and a number of other potential buyers. But the thing we have been negotiating for the last many weeks now if those governance reforms, and the process by which softbank would buy the shares. Emily so, talk to us about some of the governance reforms. There were some contentions over Travis Kalanicks role. They made some compromises and 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 was going to be any sort of lawsuit. They came around, and travis agreed to give the board sort of the approval. The board has a majority of the approval if he replaces his own board seats that he failed Going Forward. That was the major compromise. Emily corey, what is your take on the hurdles that remain . Cory the way to think about this is in terms of the ipo for the longterm shareholders. This will allow a lot of the longterm shareholders to get out of 8 billion worth of stock. So, but it also really clears up the Corporate Governance questions of who owns what in the company, and what classes of shares of stock may be offered in the public stock . Not only would softbank be buying 8 billion 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. I think interestingly, in this sort of marginality, between the lines and eric newcomers 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 the subsequent shares from existing shareholders. The shareholders could say they are paying everyone else is paying, but they can dribble down to a lower cost. So softbank is going to invest in both worlds, and they valuation of uber doesnt officially decline, but the overall valuation will decline if existing shareholders sell that top 70 billion market cap valuation. Eric we will know it is less. The blended valuation will probably be lower. We are already seeing the positioning. We had an investor reach out to say, you know, this cannot be too low. And softbank but out a statement sort of saying, this is not done yet. The price position is really beginning and that is what cory said. You know, this isnt the last round price. And how load goes will be a major point of contention. Cory but 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 can sort of say, hey, the official valuation has not gone down. So we dont have to issue more shares. There is no ratchet trigger, no devaluation of earlier shares. They wont have to flood the market with new shares because they have officially lower the valuation, but they actually of the blended valuation will be the official valuation. We will see that in the paperwork. Eric, a lot ofy, Unfinished Business here, but when softbank is officially on board, what could they contribute to uber as a Strategic Partner . How can they help them you know, moderate some of these issues they are facing abroad . Number they can stop one, investing in ubers competitors. I think they would appreciate that. And i think the dream is that softbank can help broker peace in india or Southeast Asia where it has investments and grab. So, that is the hope. Explicithat is not an part of this deal, but i mean, softbank has invested everywhere , and it is in everyones interest, except probably lyft, to see a Global Alliance and the cash burn goes down in india and Southeast Asia. And companies can find a way profitability. To profitability. Emily Bloomberg Technologys eric newcomer, and our editor at large, cory johnson. Well, another ridesharing startup making news lyft is rolling north. The Ride Hailing Company will launch into toronto and across hamilton ontario starting next month. Territoryshing into a long occupied by rival uber. About 50,000 toronto residents have downloaded the lyft though its not available yet. Coming up, qualcomm rejects broadcoms history making 105 billion offer. What is next for the potential make a chip for the potential microchip deal . And how apple plans to wrap up its a our efforts. This is bloomberg. Emily this week, qualcomm broadcoms 25 billion offer, kicking off what would be the largest takeover battle in history. . Hat is next i posed a question to bloomberg tech reporters, and bloomberg deals reporter. What is really interesting is we know that broadcom was going to get pushback and they knew that as well. The fact that qualcomm rejected, and on the price, saying no way this deal would ever get done. That was seen as relatively positive by the market. You saw that reflected in qualcomms shares, which has initially went down and went up when the bell opened. Reallyppens next will be broadcoms call. They have shown a willingness to go directly to the shareholders and go hostile. I think was a continuation of that strategy. They are probably going to launch a slate for the qualcomm board. They have to do that by december. 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 talk around whether they could go in the mid80s, maybe mid90s, but a lot of that depends on the feedback they are going to get now and when they next make a move from qualcomm shareholders. You want to keep negotiations from it, what happens now . That is a good question. 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 once. Could this be the one thing he cannot make happen . Ed it is the biggest thing he has tried. Look, everything he has done, emily, has been friendly. 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. Get theeven if he does shareholders of qualcomm on board, which is entirely possible, one of the real issues will be whether or not this passes with the regulators. You are seeing qualcomms existing deals they are trying to put through in europe is being held up by the eu who is being held up by the e. U. 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. And one that will play out over years. Emily ian, how much is qualcomm really worth at this point given the potential of losing apples business . Ian it depends on who you believe. If you believe qualcomm management, it might get a bit of time. We go back to this lucrative licensing model. Get that extra 2 billion of revenue a year. It is worth much more than this, especially if you believe the detractors, they are worth what qualcomm would want to pay. Emily now to a bloomberg scoop. Apple is planning to take another step into turning its smartphone into an augmented reality device. According to people familiar with the matter, apple is working on a 3d small rear facing 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. It is not terribly accurate. What apple is looking at doing is the 2019 iphone, adding the depth perception on the back , which allows them to do a lot more complicated, augmented reality things with the rear facing camera. Emily what this impact any of the current technology, the face id, or is this different . 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 3d sensor can allow you to pick up a hat and move it to the next space. It would appear like that on your screen. [laughter] 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 apples broader ar strategy . Cory well, i think apple looks at what has happened in the pc industry. We have gotten to a point in pcs where there is no compelling reason to get a new model every year or every other year. And the replacements have slow down for pcs and tablets. Their people replacing tablets, but at a much slower pace. And they are worried about that in the phone business. People want to get a new phone after the 18 month or 12 month period, but they dont want to slow down and they want something compelling enough to get people to want to upgrade their phones. And 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 bumping all the technology into the phone as soon as they can because 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 realitybased 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. Now if apple is building a whole ground a foundation 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 really groundbreaking stuff, but they had to build that from the first one thes and zeros 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. Cory now you can quit playing. [laughter] emily 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 , i walk around and see how it might look. What he cannot do is hang a mirror on the wall or a picture dothe wall what it cannot 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. Emily bloomberg techs alex webb and editor at large cory , johnson. The decision to launch a brandnew print magazine in the era of digital complications. And later, amazon takes ai to a whole new level. The tech titan prepares to cashierlessrst convenience store. This is bloomberg. Emily vanity fair has named its next editorinchief. 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 lesserknown in hollywood. She will be the first fema editor of vanity fair since the 1980s. Staying with media william , hearst, iii has unveiled a new magazine. It focuses on culture, politics, and the big issues impacting california. But traditional print publications have been facing headwinds, to say the least. 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 journalism from more than 130 years, sat down with us to discuss the current state of media. When you are starting a new business venture, particularly somewhere in the area of culture and the arts, you dont want to be in a super crowded field. So announcing a new blog or new website, we would have been lost, where as a publication has a certain permanence, it is quarterly, so we dont have to keep up with news. We can reflect on things that are happening. I was modeling what we did with a little bit of vanity fair, and a little bit of the 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. And we just print would be an easy way to do it. Nowadays, a print publication is mostly electronic anyway. All of the editors work in different places in the copy comes in electronically. The printing is just the last step in the process. So, we are very ready to do anything we do in the Magazine Online almost simultaneously. Emily well 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 well, it depends on what you are doing, you know . If you want to do a mass pop magazine, i think it is very difficult because that group has moved largely to the web. But if you have a very focused audience and delivering something of value to them, like the economist, i dont 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, i remember when jeff bezos bought it most publishers were saying , he had a secret technological idea. Something to do with molecules. And 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. And under jeff bezos they are , covering what is under their nose. Washington to cover politics, San Francisco should cover technology. If youre not covering what is under your nose, trying to be someone else, youre entering a crowded field. Emily what you think of Radhika Jones as the new head of vanity fair . William it is an interesting choice. A book choice rather than a popculture 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 a little more culture, and a little less politics, but that is just a guess. Emily Raymond Carter took a very tough stance against president trump. You wonder what voice she will bring to the Political Part part . Ion mar 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 right, budgets are getting cut. Maybe the big, glossy pages, maybe they wont survive, we dont know . William they were also lifestyle issues. Big black cars for everybody, fancy restaurants. The Hearst Company is in the magazine business, too and we , run a businesslike operation. It is a business reality. It be yourwill advice to Radhika Jones be . 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. There are more people going to museums and ballets than go to sporting events in San Francisco and new york. Why do people who work in Silicon Valley want to live in San Francisco . It is not because stanford is here or because hewlettpackard was found here. It is because of restaurants, arts, cultures, hospitals, the whole texture of the city. And i think that is a part of life, and the part that are magazine addresses. Emily we have been talking a lot about digital platforms and the responsibility in the age of. Ke news what do you think is the responsibility of facebook and twitter . William i hate the term fake news. Fake news is made up stuff. Emily fake stories. William what bothers i think the terminology is wrong. I think i dont believe in the trump terminology. I believe that there is opinion and commentary, which is very much what modern news has become. Emily right. William people sitting in the studio discussing things rather , than reporters covering the news. Emily some of the news is ac