And how changes in the storyline are going to change the layout. So, it is a lot of people in this room, hashing out problems, having a good time, too. Carol you put magazine puzzle together right now. That includes what is in the future section. This week, you talk about valeants ceo, he was in the news a lot this week. Ellen he was in the news a lot this week. If you remember last year, he kind of vanished after a scandal involving valeant raising drug prices a lot. It caught the attention of hillary clinton. And it became kind of this big, sort of public outrage over raising prices, partly because of martin skrelli, who was indicted for other reasons. And, then he got sick and went , on medical leave and vanished. This week, he reappeared, he went back to work, and lo and behold, almost immediately, they announced that there was an sec investigation into the company. Carol it is a story that just gets more and more interesting. Another story that i think is very interesting, and you have it in the Company Section this week, and that is etsy. It is kind of growing up finally. Ellen it is growing up. It went public. They have to figure out how to go from a platform that just sold homemade stuff to factory made items. Originally it was only about carol so the homemade stuff, right . Ellen this could be made on etsy. This is the one i made into the magazine, and this is the one that did not make it into the magazine. But what we were trying to show was that items like this are now that premade. Theyre coming off of a a manufacturing line. And we use this to sort of show that in the magazine. And for this one. This sweet face did not quite make it. Carol it could be something thats on snapchat. That is your cover story this week. Talk to us about it. Snapchat has been around for a while, and you decided to put it on the cover. Ellen snapchat is been around for a while. A year or so ago, they announced they were going to have a whole new Business Model, and people kind of laughed. It has just completely taken off during Super Bowl Weekend this year. Pepsi was on, amazon was on, budweiser, and they were all paying 1 million to be on snapchat. It is sort of a platform that you need to know about but you do not understand, and we explain it all for you. Carol speaking of snapchat, i spoke to the reporter who wrote the story. Reporter snapchat has been snapchat has 100 million daily users which actually , sounds quite a bit smaller than facebook. Facebook has one billion daily users. What is so amazing about snapchat is the audience. They are very young. They are very engaged. It is basically just the ideal audience for advertisers. Carol and advertises arer and advertisers are paying up to be a part of it . Reporter the money is pretty surprising. There were rumors in the early days that advertisers paying tvlike rates. It may not be that crazy expensive, but the money is very real. For the super bowl, for instance, there were four major advertisers, wellknown brands, and all together, they paid over 1 million to be in one snapchat super bowl story. So, it is not quite Super Bowl Ad money, but it is not quite super bowl tv money, but it is real and definitely growing. Carol it is interesting you say that. Talk to me, you mention about how many people a day. The audiences in some cases, depending on who is on snapchat, some of those folks, they have some pretty big audiences, comparable to what you see on television . Reporter yes. Big network sitcoms have sometimes tens of millions of viewers, but what happens is, many of those viewers are very old. Not very old, but older. Carol old enough. [laughter] reporter then, if you are an advertiser trying to reach people in their 20s, or late teens, it is very hard. And so, snapchat comes in and they have 86 of their audience under 35 years old. It is very clear that these are young people that are not necessarily watching television, so advertisers look at it, and even though they do not maybe totally understand it because it is so new, it seems valuable. Carol we have not mentioned the founder and the ceo, evan steagall. He is such a big part in terms of them momentum behind us. Reporter its a great story, and what is kind of amazing about it is that this company has sort of been mocked at every turn. So, originally snapchat was kind , of dismissed as kind of a thing for sending lewd pictures or what have you. , carol we all remember that. Reporter that could not be a major advertising vehicle, that is for sex. No advertiser would want to be associated with that. And then, they created this sort of media play where they were charging very high advertising rates, and he was made fun of for that. He was reportedly offered Something Like 3 billion from facebook, turned it down. And yet, despite all of these sort of seemingly counterintuitive, not quite straight down the middle moves, snapchat is doing amazingly well. And you know, this media play, which looked insane, like why would you want to read the wall street journal next to your sex . [laughter] first of all, theres a lot more happening than dirty pictures. And secondly, apparently, these people do want to read the wall street journal and there is on snapchat along with cosmopolitan, vice, and a bunch of sort of mix of new media brands and old media brands. Carol speaking of reading if , you want to read about the king of snapchat, the electorate or article in Bloomberg Businessweek this week. We will not give it away. I am here once again what the magazines editor ellen pollock. Something that caught my attention is bill collectors in russia. This is really scary. Ellen it is really scary. So russia is in a devastating recession. Mostly because of the price of oil dropping so dramatically. That means that people are in tremendous consumer debt. Something like 1. 2 trillion rubles, which is a lot of debt. But, even if you are just a little bit in debt, you might find yourself coming up against these very scary bill collectors. You can come out of your house and find on your car, debtor written in huge graffiti with your apartment number on it. Theyll write on your apartment walls, and they have even thrown bombs and hurt children. Carol destroying baby carriages. Ellen it is crazy. It is really, really rough. And some of these cases have been prosecuted, but a lot of them havent. So it is likely to go on for a while. Carol interesting, thank you so much. Coming up, the software that may Donald Trumps run for the white house possible. And the many donald trump like politicians in power across europe. Also a divorce attorney every , Hollywood Star wants, and what is the worst business decision you have ever made . We will talk about all of that ahead on Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. Im carol massar. In the magazines opening remarks this week, reporter Stephen Ferris writes, youre it europe may sound horrified by the rise of donald trump, but the truth is, hell be right at home in paris or berlin. After all, europe has given rise to nationalistic politicians such as Jean Marie Le pen, and so promoting media personalities. In fact, trumps antiimmigrant brand is shared by numerous Political Parties across the continent from finland to greece to switzerland. In other words, europeans want europeans may want to remember the old proverb do not throw stones in glass houses. But will trumps movement have legs in america . You can read the article about that in Bloomberg Businessweek. Donald trump stays in the spotlight in this weeks politics and policies section. Would you believe trumps political rise is partly thanks to a Software Design by antiwar activists . The software is called nation builder. I spoke to reporter adam such i spoke to adam in san francisco. Adam nation builder is a software that serves as kind of a digital hub for a campaign. So you can build a website, send , email, monitor social networking, and you can ingest all of this other kind of data that campaigns nowadays gather on voters. And basically the thing you are , trying to do here is put together a profile on voters so that you can appeal to them about things that they care about in the hopes that they will vote for you, donate some of their time, give money. Many different things. It is a way which campaigns can slice and dice the electorate to their benefit. Carol talk to us about the individual who actually put this together. Because he has an interesting background. Adam yeah jim gilliam who , created nation builder is a really fascinating person. He grew up in a christian fundamentalist family. He belonged to Jerry Falwells churches. And he went to Liberty University in virginia. And then, when he was at school he became ill and got sick and , his mother at the time also got sick. And he ended up losing his faith and going to work in software. He was always kind of a techie. Carol yeah. Adam he started to work for a startup. Carol you know, when i started reading your story, adam, i thought, this is going to be for outliers, big campaigns are not going to get involved, but actually big campaigns like donald trump, are using this. Adam campaigns like Barack Obamas in 2008, 2012, really, the build mostly, they spend a lot of money to build Customized Software to do all of these different things. And so here, what nation builder has done, is sort of build a turnkey approach to this. It is not as sophisticated as what you can build with an unlimited budget that a lot of these president ial campaigns have, but it does give you a lot of these capabilities that just 10 years ago, or a few years ago were not possible. Carol speaking of innovative technology, in the company and industry section in this weeks Bloomberg Businessweek, Dana Holdings about one of googles next big ideas. Self driving cars seeing big demand from senior citizens. Dana inspiration for the story came from google. I was in detroit in january for the International Auto show and i went to a presentation that the chief executive of the self driving car project gave, and he talked at length about how google is really trying to develop this technology with stranded seniors in mind. And that was kind of the genesis for the story, and then i discover that all of the automakers are basically doing the same thing. Really researching how the elderly live, and what their mobility needs are. Carol have the automakers, have google figured out what the size of this market might be . Dana i think it is pretty significant. We have 43 million baby boomers in the United States already. And they are aging at a rapid pace. And it will be a pretty significant check of the population by 2030, which is the timeframe that a lot of people are looking at for when self driving cars will be on the market. And i think for those of us to do drive, car keys of always represented independence, when you lose your ability to drive, your qualityoflife really suffers. Particularly if you live in a rural community. Carol do we have to be worried about adoption rates . You highlight some questions for baby boomers, and then wanting to adopt self driving cars . Dana nobody has really set up on a Business Model yet. It is not clear if the elderly will actually be purchasing these cars or if it will be a , ridership model. One example might be that the Retirement Community that currently has a bus driver to take their residents to doctors appointments, maybe they will use a self driving car instead. So, i think were still waiting for the Business Models to be hashed out. Carol waiting for the Business Models, also waiting for the cars to actually hit the road. Do they have any idea when this will happen . Dana i think the technology is here. The question is the regulatory and insurance issues that need to be ironed out before this can be adopted on a wide scale. Between 2020 and 2030, you are going to see a lot of activity. Carol time for a gut check. What is the worst business decision that you have ever made . That is a survey and the magazines etc. Section this week. The editor joins us with more. You guys devote a whole page to it. What was the worst idea that summary had . Brett to be successful business means that you failed a few times. We did an informal survey with entrepreneurs and we ask them a question. The first thing we learned as a woman who tried to do a kid hair care line, originally packaged the materials in a seethrough bottle, which he thought was great, everybody else advised against it because when the media went to go photograph the bottle, they cannot actually read any of the text. It cost her 75,000. That was obviously a big mistake. Another mistake we learned is that when you are actually in business with something that is kind of trendy, you do not want to sink all of the profits that you make back into the craze because when the craze dies down, youll be stuck with a lot of cash tied up and stuff that nobody wants anymore. Carol check out the survey on this weeks Bloomberg Businessweek. Coming up, biotech is a sugar daddy and his name is alaska. Plus, the app will make your divorce a little less stressful, at least on your wallet. And the dos and donts of karaoke with coworkers. It is all in this week passed issue of Bloomberg Businessweek. Carol welcome back to Bloomberg Businessweek. Im carol massar. In the companies and industry section of this weeks Bloomberg Businessweek, reporter donnie bloom field tells us why alaskas 50 billion wealth fund is showing money on startups, specifically biotech startups. Hey donnie, you write about alaska being a biotech sugar daddy. What is going on . Donnie so, alaska made its money from oil, obviously starting in the 1960s. , they got a 50 billion Sovereign Wealth Fund now, but what is interesting is that in the past couple of years they have been throwing this money into biotech in somewhat risky earlystage companies, and throwing a lot of money, even up to 150 million plus into a single company. Carol that is a lot of money. Has it made sense for alaska to spend their money in this way . Donnie well, one of the things they like about it is that these investments are liquid, so they actually make it a high return in the long run by getting more a company and taking some of the risk that other investors are not willing to take. They made an investment in a Company Called juneau therapeutics. Name, by the way, is not a coincidence. That investment has turned out really well. They invested 129 million between 2013 and 2014. Now they control about 25 of , the company and that is a billion dollar plus stake right now. So that investment has turned out very well for them. To be seen about whether these other investments in Biotech Companies will turn out quite so well. Carol there are a few other Biotech Companies. Who are they that they have invested in . Donnie kodiak and denali. Carol i like the alaska connection. [laughter] donnie you may notice the alaska connection. All of them do have an alaska theme. Juneau is the capital of alaska. Denali is the tallest mountain and kodiak is the brown bear of , alaska. So clearly they like having , these companies when they invest that much money in them. Kind of as an inside joke. Carol alaska with the oil prices coming down, they have had some financial problems. Lets get to some of the lawmakers, regulators noticing money being made in biotech. Donnie yeah, they noticed just how much cash they have in the fund. Right now, the governor said that even if they fired every single state employee, they would still have a budget shortfall. So, they are incredibly desperate for money, and theyre thinking about possibly tapping the funds for a couple billion dollars a year. Right now, part of it is used to kind of give money to alaskans, just as a kind of handout for living in alaska. And of course for reinvesting, but it looks like the governor and potentially the legislator is considering tapping it, just to make the math work. Carol that was Bloomberg Businessweeks donnie bloomfield. Back once again with editor ellen pollack, and there many more must reads in the magazine, and theres a Great Payment app. Tell us about it. Ellen this an application for divorce couples and i do not know why it was not created before. It allows parents to keep track of who is spending what on their kids. [laughter] it is very clever. It means that you do not have to speak to your ex, which for some people is extremely important. Carol limit the conversation. Ellen limit the conversation. And you know who spent money on dance classes versus who spent money on french classes, and there is no mixing it up. It is there and you do not have to fight about it. Carol thats great, limit interaction. We can do about divorce without talking about a story in a magazine, talking about a divorce attorney, laura wasser, wellknown in hollywood, everybody wants her when they need her. Ellen this is a divorce lawyer who is in demand constantly in hollywood. Carol high profile names have used her. Ellen high profile names. Britney spears is and this is one. The story that tells you the secrets of hollywood divorce. It is a business story. It is all driven by money. Of course. And she tells you in the story, all kinds of secrets that it never would have occurred to you. For example, i will just give you one or two. There is a reason that most hollywood divorces take place in march. And that is because it is after the academy awards, and people dont want to walk on the red carpet without someone. And then there is another reason, which i wont explain why hollywood divorces come in groups. That you have to re