tv Bloomberg West Bloomberg October 5, 2015 8:30pm-9:01pm EDT
emily: the worst kept secret in silicon valley becomes official. twitter names jack dorsey its permanent ceo. i am emily chang, and this is "bloomberg west." 2015 was supposed to be the year of apple pay, according to ceo tim cook. why aren't consumers signing up? amazon is getting ready to take on microsoft and sap in helping companies analyze their data. tech giants like facebook and google get ready for new local
tax rules that could squeeze profits. first, to our lead, the man who cofounded and ran twitter before being ousted in 2008 is back on the job for good, at least for now. twitter, naming jack dorsey its permanent ceo. he remained ceo of mobile payment firm square that is expected to go public this year, this despite the board saying they wanted someone who could commit full-time. dorsey made the case on twitter, and he did it in a series of tweets, saying -- meantime, twitter director and head of the ceo search peter currie said today, over time, it became clear to us jack was not only meeting but surpassing our expectations of him as interim ceo while running square. joining me now in studio, in our new studio, john patel, chairman and cofounder of newco.
we've got adam satariano who has been covering twitter for us, as well as victor. i want to start with you, john. what is your reaction? john: everyone was wondering if this was a three-month job tryout, and now we know it was. the early buzz was it wasn't going to be jack. he was taking square public. how could he do that and turn twitter around. something must've happened in three months to not only change the board's mind but the people who are now reporting to jack. emily: he talked about his strong team. adam bain is being promoted to clo. victor, why are you so optimistic? why doesn't it bother you that
he's running two companies. victor: i want to make clear i upgraded the stock prior to the announcements early this morning. i'm somewhat apprehensive about him being the ceo of two companies, both companies operating in industries that are highly innovative, rife with intense competition, and so i think both companies will need dedicated ceos at some point. stepping away from square right now will be disruptive to the ipo. i think it is fine for him to stay on for six or nine months, but at some point, he will need to step away from square. there are several capable, i think, payment ceos across the country who can step in and run square while he focuses his efforts on twitter. if we look a year from now when twitter is a stock is at $50, $60, all of this will be a moot point. emily: of course, now there are more questions. how long is he going to remain ceo of square? what do you think? john: at least they are in the same town. emily: actually, they are across the street from each other. john: they are at different
stages. it does depend on his team. the big question is, we've got a chief operating officer, securing adam. how long he can keep that team together. there was so much work done on the product, and it's about to pay off with project lightning, that were really the product of dick costolo. we will see how that pans out. if it gets difficult, it might get harder again. emily: dick costolo, stepping up the board, and jack, insinuating there is going to be more of a board shakeup happening. it brings to mind when steve jobs came back to apple and changed the entire board. adam: they have jack dorsey is the face to lead the turnaround of the company. there are a lot of challenges they have, including project lightning, which is a way for people to see more tweets coming through. the product is incredibly difficult for people who are not hard-core users to figure out or find entertaining. expanding the audience and getting more people introduced to it and becoming more daily
users is going to be a big piece of this. right now, the company, although its influential, and a lot of people in media use it, i think with more mainstream audiences, it hasn't taken off. the company is still losing gobs of money every quarter. emily: you also have mainstream users like lena dunham saying she was thinking about getting off twitter full-time, because she couldn't handle the hate. this is something dick costolo admitted they needed to do work on. victor, does that concern you? you have some of the most high-profile users on twitter saying they can't handle it anymore. victor: to be clear, twitter has signed up in excess of one billion users. the problem is to get the users to come back. they have a retention problem. i don't think it's an issue for the stock. you need to get those users to come back to use it on a daily basis.
retention, more incremental users, and engage those users on a daily basis, i think those are the issues for twitter going forward. it is a tall order, but i think project lightning is a marketing plan and advertising campaign that is soon to launch. there is a google integration that is going to get deeper. i think those three should help in 2016 get more users back onto the platform and get them more engaged. emily: i want to drill into this point about the negativity on twitter. the anonymity of twitter, while it's always been part of the product from the beginning, it does breed hate. i've been on the receiving end of it. i'm sure you have. even though dick costolo is out to clamp down on it, i haven't seen much of a change. john: they have to change the fundamental way you interact with twitter. that is what project lightning is going after, making it a place where you can see events that matter right now, curated
by both algorithms and by editors. they have been hiring hundreds of editors over the past six months. when they roll out with lightning, they are going to create a user experience that's going to be less personal and direct and more about consuming and interacting with what is happening in real time. emily: there is a risk if you change the product too much, you alienate the people who like it the way it is. adam: that has been a core challenge for twitter from almost the beginning. they have a very passionate user base that has a megaphone, which is twitter itself, where they talk to each other about it. this is part of the reason you've seen the company go to jack dorsey. as a founder, he brings a certain amount of credibility to make bigger changes the company
could need. emily: all eyes on jack dorsey the shares did go up as a result of this move. we will be watching to see if dorsey can keep it up. john, before we go, i want to talk to you about new co-. you are launching your conference this week. victor: twitter is opening its stores. emily: give us the inside scoop. tell us about the highlights. victor: it's a completely different kind of conference. we have over 200 companies in the bay area opening their doors. we do it in 16 cities around the world, but this week, it's time for oakland and san francisco. one of the highlights is absolutely going to be twitter. emily: who is talking to you? victor: they have a full session and a roundtable of executives. my feeling is they might mix it up given this news. i was try to figure it out, but i couldn't. executives from a number of great companies including uber and lyft, and small businesses, as well. emily: hopefully your attendees will get a glimpse of jack, the new and permanent ceo.
one last question -- bringing the founder back to a company, john, how optimistic are you about it? you have known him for many years. you knew dick costolo. is he a different person now? victor: absolutely. he has learned so much. square has not been a ride on the unicorn. square has had its ups and downs. he has learned a lot from that. i think he would only do this if he truly understood the work involved. i've not noticed many founders going to two companies and treating them equally. there's always tesla and spacex. the truth is, i think folks at square are going to get used to playing second fiddle. i don't see any way around it. emily: we are going to be watching what happens with square. adam, you are sticking with us, as well as victor anthony. thank you so much for joining us. to a crackdown on corporate tax dodging. dozens of world economies are close to adopting sweeping
changes to international tax rules that could impact major tech companies like google and apple. this is important because tax loopholes are believed to deprive governments of up to $240 billion a year per that is why the organization or economic for economic operation and development released a plan today that aims to and tax shelters and require companies to pay taxes in countries where they own a profit. 62 governments, companies, and non-governmental groups were involved in negotiating this plan. it will be discussed at a meeting of g20 finance ministers in peru this thursday, and if approved, it will be presented to the leaders in turkey in november for a vote on adoption. coming up, the year of apple pay falls short. we will have the details, next. in a highly anticipated steve jobs movie, michael fassbender was not the first or even the second choice for the role, but he is already getting oscar
emily: this friday marks the long-awaited premiere of the steve jobs biopic. michael fassbender who plays the late apple cofounder is getting rave reviews, but he wasn't the first or second choice for the part the first choice was leonardo dicaprio, and then screenwriter aaron sorkin told me christian bale was up for the part. talks broke down. even sony dropped the project
under pressure from jobs' wife. that drama will soon be hollywood history as it opens in limited theaters this friday. the film also stars kate winslet, seth rogen, and jeff daniels who plays former apple ceo john scully. in my interview with sorkin, he had this to say about apple's real-life cast. >> i've met everyone and spent a lot of time with the other seven characters who are in the movie. joanna hoffman, a fantastic character, she was the head of marketing for the mac team. john scully who was the ceo of apple and became famous, or infamous, depending on how you look at it, for firing steve jobs from apple. he is a wonderful man and a great character. emily: joining me now from new york, john scully himself, the former ceo of apple, former president of pepsi. also still with us, adam satariano.
john, i know you talked with aaron sorkin. what was your experience working with aaron sorkin? have you seen the movie? john: i really loved aaron sorkin. he's incredibly talented. i have seen the movie. they gave us a private showing, my wife diane and i. it's incredible entertainment. it captures an important side of steve's personality. i have to tell you, because i knew steve as a great friend, the young steve jobs, and he was a very real person. he had a sense of humor. he was passionate about being a perfectionist, but he was just fun to be around. the people who worked with him had a lot of respect. people need to look at steve jobs not just in the context of this movie, but the real steve jobs was a really great guy. emily: what about jeff daniels' portrayal of you? was that spot on?
john: jeff daniels is very talented, and the cast did a terrific job. i think kate winslet will probably be up for an oscar nomination, maybe michael fassbender, as well. jeff daniels could get a supporting nomination. this is first-class entertainment, and it takes creative license as you might expect. the same thing apparently happened with "the social network." they built an incredibly entertaining story. emily: adam, what are you hearing about the movie? it's getting great reviews despite the drama. adam: there is a lot of drama in it, which is going to end up being good for the premiere weekend. there are mixed feelings about it, particularly from people close to apple. lauren jobs has worked behind the scenes little bit to squash the movie. apple itself and some of the executives at the company have mixed feelings about it, because
it is based on a walter isaacson's book, "steve jobs," which many people at the company say they did not like, saying it captured only one side of steve jobs. i think the movie, being based on that book, is the root of the issue. emily: i do want to talk to you about apple today. we have a story out about apple pay. tim cook said it would be the year of apple pay, and yet it's not seeing a lot of adoptions by retailers and also consumers. what is going wrong? do we just need to give apple some time? >> i don't think this is a problem unique to apple. i think mobile payments thus far, the hype hasn't matched with reality. a big part of it is, taking out a debit card and having it swiped at starbucks is not a difficult thing to do. the idea of taking out a phone, putting your thumb print over the thing, and having it work is a little bit of a cumbersome
process. you see it coming to apple watch, and so there are other elements to it that, maybe over time, some of that friction will deteriorate. right now, it's not making much of a dent in the way people make payments. where it's doing well is when somebody is downloading an app and you can make a digital purchase. emily: john, i want to talk to about what you are working on right now. your cofounder and ceo david steinberg is also with us. this is attempting to take on this big problem of data analytics, competing with the likes of microsoft, salesforce. we just heard amazon announcing a new product. what makes you think that zeta has what it takes? david: we joke and say we have some small competitors like adobe and salesforce. we take
our clients' data and make it actionable whereas other companies are focused on crn. we do the entire lifecycle. we help our clients create new customers, in addition to keeping them longer and selling them more products, by using massive pools of disparate data and combining it into solutions. emily: as someone who has been through so many eras of technology, from apple to pepsi, now zeta -- you guys raised $125 million at a $1 billion valuation -- how do you deliver on the promise of zeta and manage your own strategy? john: i've been in consumer marketing for almost my entire
career, and this is the logical next step in consumer marketing. it's all about data. the zeta has been an incredible story. we will cross over $200 million in revenue this year. we are highly profitable. we just announced a major expansion of our facility by 50,000 feet. we will be adding another 200 people. this is a company with huge momentum. yes, we are a unicorn, but we believe we are just beginning to build the real value for zeta. emily: thank you both, and adam satariano, thank you. coming up, how will amazon's new analytics tool help lock in new customers? we will introduce you to what they are calling a revolution, next. ♪
emily: to another story we are watching, it seems as though chinese president xi has rejected mark zuckerberg's friend request. at a white house dinner, facebook founder mark zuckerberg asked of the president to give his unborn baby an honorary chinese name. president xi refused, saying it was too much responsibility zuckerberg tried to use his baby's name to ease the tension. facebook has been blocked and has been blocked since 2009 when the social site was
allegedly used to organize antigovernment riots. zuckerberg would love to crack china's 660 million internet users. president xi said the internet would expand in china, but it must be in line with "national realities." to amazon's cloud business -- amazon web services is expected to announce a new service this week to help businesses analyze their data. the new service is codenamed "space needle" and could help amazon on lock-in customers by housing more of their data on the platform. many big companies store data on aws, but space needle is expected to help amazon compete in the business intelligence market, which as we discussed, is pretty crowded. it could be worth as much as $143 billion in 2016 according to pringle and company. francois joins us.
boris, you said this service could be like the 800-pound gorilla. why are you so optimistic about it? boris: aws is already present. a lot of customers already have data in aws. they've got tons of databases that already work in aws. amazon has all sorts of ways for customers to get data into the cloud. we've been waiting for this for many years. obviously, i cannot confirm or deny anything. amazon has not announced this, but based on my general knowledge of the market, based on where things have been trending the last several years, i would say there will be an entrance into the market by the 800-pound gorilla, and it will be big. emily: tableau, this would put you in competition with amazon. how big of a threat do you think this is? francois: first of all, it's important to know that amazon is a great partner of tableau's. they provide phenomenal data
services, making it easy and fast and approachable. tableau connects and unlocks all that data. what is important to know is customers have data all over the place, from data in amazon to on premises to excel, and tableau facilitates making it easy for anybody to connect to that data and make sense of it. what we are delivering is analytics for everyone, and that is a key differentiator. emily: do you think a company like tableau has something to worry about? boris: i don't think so. even though i've been in this market for 30 years, information management, data warehousing, analytics, it is still extremely a green field opportunity. emily: we are going to have to leave it to there. i'm sorry. i know we could talk about this for hours. boris edelson, francois, thank you both. we are going to be at "the
>> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with the prime minister of israel here in his hotel room in new york. we talked to him after he addressed the united nations and talked about his concern for israel's national security. he talked about iran and the nuclear deal. he talked about the palestinians, and he also talked about syria, all subjects we want to talk to him about. i'm pleased to have this opportunity to talk to him before he returns to israel. thank you for joining us. prime minister netanyahu: good to join