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tv   Bloomberg Technology  Bloomberg  October 25, 2019 11:00pm-12:00am EDT

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taylor: i am taylor riggs in san francisco. this is "bloomberg technology." coming up in the next hour, start the presses. that is what facebook's news app -- cap will do for publishers hit hardest by the advent of the internet and facebook. plus, prime pains. why amazon's one-day shipping is causing hurt now, but will benefit the company in the long run. and intel gave a fourth-quarter outlook that was seen as strong,
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pushing shares of the company higher on friday. we bring you our conversation with the ceo, bob swan. but first to our top story. after years of critics piling on facebook, blaming it for altering the news industry, the social network is trying to make nice. on friday, facebook launched its news tab. it will feature articles chosen partly by employees and the company says it will be free from editorial guidance from facebook. there are more than 200 publishers on board. some, being paid more than $1 million for their involvement. speaking in new york, mark zuckerberg outlined another way for news organizations to make money. >> you can run your own ads and get 100% of the revenue or you can use our ad network, which we have a lot of engineers and people trying to build a really advanced technology for this and there, we give the vast majority
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of the revenue to the publisher, but what we have really unlocked here is a business model where it makes sense for both parties. taylor: the senior vice president -- to discuss in washington, it is daniel coffey, senior vice president of news media alliance studio, kurt wagner, who covers facebook for us. give me your first thoughts. >> this is like the 10th time that facebook has attempted to make nice with publishers. studio, kurt wagner,all these s to try and make publishers feel like they are getting something in return and not just putting stuff on facebook for free. i think we heard a little from mark zuckerberg about the business. i think there are two potential lines of revenue. i think that is better than some of the efforts they have made in the past, but you have to
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understand a lot of publishers have been burned multiple times in the years before, so everyone will kind of look at this through a skeptical lens. taylor: danielle, from your take being involved in the news media, what are your thoughts? danielle: please view this as a step in the right direction and valuing the quality news that have fueled their ecosystem and allow them to flourish and make a tremendous amount of money, but is this adequate enough to sustain the news industry into the future? no, we don't believe it is. i don't even think facebook believes it is. it is a step in the right direction. it does not cover all the local communities and local coverage that goes into a national story. it is a step in the right direction, but it does fall short. taylor: a step in the right
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direction, but kurt, talk to me. how does this help facebook besides helping its image? does it help the bottom line? kurt: i don't really think so, other than it keeps publishers trying to have a relationship with the network. you see bloomberg, washington journals, new york times lead -- leave facebook, i think that could hurt the bottom line. it is certainly a goodwill gesture. we hear you, we believe in journalism, we believe in the mission and as a result, we want to help you out. i don't see a financial benefit for facebook here and in some ways, that is a good thing will stop >> we should -- full disclosure -- bloomberg news is a publisher in facebook's news tab. danielle, let me bring you in again. how does this help the image of the company because frankly, they need it.
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danielle: sure, there was no secret and you were just talking about the bottom line as to whether it helps facebook. of course it does, it helps the readers consume content or data based on the readers that they gather off of us. that is essential to their current and future business model. when they proposed to the terms they did, it was in a way that you would never conduct a normal negotiation. when it is take it or leave it, and it is done in secret and publishers can't talk to one another, that is not a traditional -- that is not a functioning business model, so it does serve their bottom line and it serves their ecosystem, but what we are looking for is how it comes back to us, the originators of the content. taylor: well, and there's a lot of national organizations participating in this. zuckerberg did talk about how it may or may not impact some of
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the local coverage hit hardest. take a listen. >> local papers have probably been hit hardest. also, one of the other products we are working on is we were building a separate tab called today, including local news. earlier this year, we announced a $300 million commitment to journalism and helping a number of publishers, but a special focus on local news. i don't pretend that any of these steps will be enough or we as one company will be able to solve this issue. taylor: danielle, your thoughts on if it goes far enough to help some of the local coverage that has been hit the hardest. danielle: it is difficult to determine whether the traffic that comes in is specific, but he today and or not,
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but the monetization that you get from the advertising business model is pennies. portion of what is coming to us because of the broken system that the house is looking into, but as far as what we are experiencing, we are not getting adequate return because the traffic that generates the advertising dollars is not enough to sustain the news content that we generate. no, it does not help the local communities and coverage that we do with local newspapers that need to be able to get a sufficient return on their investment and with the news tab, it did not cover everybody. it covered the markets and while we are happy about that and it is a step in the right direction, is it covering local communities where they need it most? it is not. at the daniel coffey news alliance and kurt wagner, thank you both.
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pg&e is telling customers that they may lose power and this comes after kevin newsom declared a state of emergency for the counties of sonoma and los angeles because of the kincade and tick fires. coming up, you cannot deal what is there. that is the approach they are taking to protect your data. we here from the ceo how they can achieve that. that is next. this is bloomberg. ♪
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taylor: securing customer data online is a hot topic across the globe and one company says it has a unique approach to handling sensitive information. very good security lets companies access that information without ever needing to hold on to the data themselves. it just secured a $35 million funding round led by goldman
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sachs merchant banking division. for more, i want to bring in the ceo and founder. talk to me about the funding. congratulations. what are you using the money for? >> thanks so much, taylor. is a pleasure to be here. we are very excited to partner with goldman. both marshall and i are very thankful, but really the big idea is to completely democratize best in class data and privacy security for companies of all sizes, so the funding is going to follow where we will invest in r&d and hiring sales, marketing and expanding on our growth that is happening growth. taylor: and huge investors, horowitz, goldman sachs, big-name backers, why are they interested in you? >> they see a shift in the market coming.
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one of the biggest issues we see is previously, you had to release data going and an out of data centers and that approach 10 years ago, 15 years ago, but now data, which we called an asset before, is becoming increasingly a liability, so when they see a shift happening, how do you catch up with data in advance and build a solution that can catch the market with data all over the place? >> is this purely a data privacy issue. have some of the investors, namely goldman sachs, because they have talked a lot about digital currencies and making a play in that area as well. mahmoud: we are very excited to partner with goldman. they're obviously a very respectable partner. i can't comment on a specific initiative, but i can say there
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are a variety of good reasons why they took an interest in us. taylor: you started out this conversation by saying you are a classic silicon valley company. talk to me about valuation and if you are cash flow positive in -- and when you can expect to see some profitability? mahmoud: we can be profitable if we choose to, but we purposely do not. toare looking for funding accelerate growth. we took the funding and wanted to move faster than if we had just been by ourselves and so the idea is that next year or the year after that, we could be profitable, but what happens if you're able to get to that position today? the reason we took that money to accelerate two years, three years of our timeline, so we are not too worried about cash flow volatility. we can be, but what we want to do is capture the market today. taylor: you want to see that path to profitability.
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thank you. shares of amazon in the red in an earnings report in order to increase spending for getting packages out in one day. that is something that investors were trying to reassure -- be reassured of in a column >> on wednesday. the cost side, throughout density and other things, will -- other things will improve over time, but for now, there is some startup pain in adding capacity. taylor: brad, talk to me about this. it was the profit decline everyone is worried about, but are you shrugging it off because you know every time they invest, revenue eventually follows? well, taylor, i think it is safe to say the market is shrugging it off. the stock is down 1.8%, well above the market lows after trading yesterday where it was down like 7%.
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this is a movie that a lot of these longtime amazon investors have seen before and it is a happy place. people were worried that amazon retail was slowing down and now it seems like next day delivery has re-accelerated it. yes, the profit miss, but amazon didn't have profit for years and that is nothing to the long-term investors and analysts. as to whether pays off, it looks ike next day shipping -- didn't think it was much different from sushi-day shipping, but so many companies like walmart and target have caught up with sushi-day shipping, so amazon is trying to go further and read a gets competitive mode around its main business. taylor: if one day shipping was so good, why did they come lower on crucial holiday sales on the top line? >> i think the history frankly
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on this revenue guidance is they are always conservative. i don't put much credence in that. i think the topline surprised this quarter -- and we will see what it does for the holidays. a smaller than average couple of days between thanksgiving and christmas and how some holidays abroad including india, some of that went into the third quarter. we will see. i think the pattern is next day shipping does make a difference. is unit growth at amazon slowing down and bounced back up by several percentage points so the evidence so far is next day shipping moves the needle but we will see. taylor: you are also going to the sooner than you think conference. i'm not cool enough to call it by its acronym. you are out there next week. what are you looking for? >> we have this conference three times a year.
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once in asia, once in europe, and wednesday it is in brooklyn. we try to take a different approach instead of the same executives of the same companies saying nothing, we are talking about solutions to the moment that tech finds itself in. we talk about the antitrust investigation into the big tech companies, panels on privacy focused design and security inside companies. we have the great design emphasis from google talking about how we can have a more productive relationship with the technology and your colleague caroline will be cohosting with me, and we designed a deepfake video involving her and she is going to get into deepfakes and the impact they are going to have on our culture going forward. taylor: this is also notable because it is in brooklyn and not san jose, san francisco, not in silicon valley. in all your years covering tech, have you started to see this
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shift? are we losing a little of the tech to the east coast? brad: this is more about connor programming. there are plenty of conferences in california. we thought we would experiment with an event on the east coast and we have the ceo of the next mets coming to talk to us and the nba is interested in a -- nba posh interesting relationship with one of its most important partners, china. san francisco and silicon valley, still the center of the tech universe. if there is a threat, it is an -- in asia and beijing and shenzhen, but look. tech is growing and i think it is more dispersed across many cities including new york and washington, d.c. than it has been historically. taylor: as long as it is in san francisco, we can keep our jobs another day. that was technology editor brad stone. coming up, gains for intel after
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-- on friday after the company gave a profit forecast. we hear from the company posh ceo bob swan next. this is bloomberg. ♪
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taylor: intel gave an update for the fourth quarter, improve demand for semi conductors that power cloud computing. bloomberg's paul allen and shery ahn spoke with bob swan earlier. take a listen. >> we outperformed in the quarter and we expect about 200 million of that was pulled from the fourth quarter in light of games idea about availability to products, so not a whole lot of it, but some of it, but despite that, we did take up our fourth-quarter outlook as well. >> in june, you said you were reviewing your supply chain in
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the context of the trade disputes and the u.s. entities. i'm wondering if you could share any insights from that review. are you making any changes? >> i think for our customer base, we have china is a large market for us in terms of customers for china consumption, but also for global oems that have more of their assembly and test operations in china, so what we are saying in light of the debates around tariffs, we are trying to work with our customers to ensure they can get their product most effectively by leveraging our global supply chain to diminish the impact that tariffs could have on their supply for global markets, so we have a wonderful global supply chain and we work closely with our customers to be able to deal with the dynamics we are wrestling with. i would say that we are
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encouraged that china and the u.s. are talking because we are a strong believer in global trade and we don't find tariffs to be a constructive mechanism for global trade, so we are very encouraged that the two sides back to the table. in the meantime, we will leverage our global supply chain competencies to mitigate the impact on customers around the world. >> what are your shipments of huawei looking like? they has been blacklisted by the u.s.. bob: we don't really get into talking about specific customer demand. i would say huawei has been an important customer of ours and we continue to see them to be an important customer going forward, but at the same time, we have to adjust and a doubt to -- and adapt to the laws in the markets we serve. we will continue to serve them to the extent that we are allowed to. under the current entity lists. are you getting temporary
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waivers and licenses to supply to huawei at the moment? bob: i think the semi conductor industry, we have put applications and to get licenses to ship, but we have not heard back yet. we hope to hear sometime soon, for we have not read back yet. taylor: that was intel ceo bob swan. and another ceo is aiming to take its popular music stream is -- he spoke toer us from the new york stock exchange. >> at a time when the management team is mature and the company has a leading advantage on the market, then we can make the decision whether or not it should go public. taylor: despite the trade tension, they still chose to go public in the u.s. following in the footsteps of its parent, which
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went public on the nasdaq in 2000. bloomberg caught up with the ceo following the company's debut on the new york stock exchange. >> our parent company has always been a u.s. listed company and we really like the markets because they have treated us well. there has been a lot of return for u.s. and chinese investors all over the world, and for us, we think at least we are not doing trade related business and education -- i would expect it to be a very good way to connecting the u.s. and chinese people. >> one of my last questions, what was your reaction to the opening price, about 20% lower?
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then the ipo price. do you think investors are pricing the right value? >> i think we operate for the long-term. getting to ipo is an exciting step for us and it is a very good way for us to attract that -- better talent, to be a a more respected company. we think it is the right move and we are very confident in our plan, so we think this is a new starting point. taylor: that was the youdao ceo at the new york stock exchange. coming up, we recap the biggest stories in tech. amazon's disappointing forecast. -- fourth quarter court past, zuckerberg defending libra and capitol hill and the downward spiral that is wework's valuation. all of that is next. this is bloomberg. ♪ everyone uses their phone differently.
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taylor: this is "bloomberg technology." i'm taylor riggs in san francisco. now to our weekly roundup of the top stories in tech. this week started with the quarterly earnings bonanza. amazon shares rebounded on friday after the e-commerce company reported its first quarterly drop in profits since early 2017. the company reported a miss for next quarter's guidance as well. to discuss, i'm joined in new york by shira ovide. here in san francisco with me is executive technology editor tom giles. i cannot remember what city i am in.
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shira, let me start with you in new york. you had a good piece talking about the one bright spot of amazon which was the cloud business is starting to show signs of cracks. why? shira: i don't want to get hyperventilated about one ok quarter, a couple of ok quarters, but remember amazon web services is extremely important to amazon both financially and strategically. even though it has about 1/5 or so of the revenue of amazon's e-commerce operations, it generates more operating profit than all of them, than the e-commerce business. that shows you amazon needs aws to work in order to generate total profits for the company. in this third quarter, what you saw was both the slowest quarterly growth rate for aws since amazon started breaking up -- breaking out those results five years ago, and a margin, a profit margin that was at least by amazon's standards not great.
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that combination was a little bit worrying. taylor: tom, we look at the profits so much because the company heavily invests, but analysts are defending the stock. is this because every time you see big investment, eventually leads to growth? tom: that is what happens with bezos. he is willing to spend heavily. we were doing the math on this. the analysts' expectations is 24% higher than where it closed today. analysts are out there telling their clients buy these shares even at these near record levels for amazon. despite the concerns about profitability, i think shira raises some really good points. people are falling over themselves to recommend this stock. the belief is, yes, it costs a lot to do that one-day delivery but it is going to pay off because people want their stuff and they want it quickly.
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taylor: shira, we also go over the earnings of twitter and we saw revenue fell, in part, because they stopped a glitch that abused customers' data and their privacy. where are they going to make up that revenue? shira: revenue didn't fall. it was lower than people including twitter expected, both in the third quarter and the forecast for the fourth quarter. i agree. i thought it was very concerning, but the reasons for the revenue decline which is basically twitter fixed what it called "errors" in a few of its products including settings, where basically it was ignoring people's privacy preferences. as a result, it turned off some kinds of ad targeting it previously turned on in violation of people's trust. as a result, revenue growth fell short of the company's forecast, both in the quarter and ongoing basis. to me, this raises questions about just the help of twitter's -- health of twitter's
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advertising business. if, basically, it could have a revenue growth shortfall because of a couple of setting changes that should not have been there in the first place, then maybe this ad business is not on such solid footing after all. taylor: i want to switch to another story outside of earnings where we talk about facebook and libra. mark zuckerberg was on capitol hill on wednesday. one of the first things he said before talking about libra was his take on political ads. he has come out and said we are not going to moderate. we believe in free speech. it is up to the politicians to determine what is right or wrong. tom, in all of your years of covering this, is that the right approach? tom: not if you are alexandria ocasio-cortez. she really took him to task for this. that was one of the most interesting and memorable interchanges of this several hours he spent being questioned by lawmakers, was her going into very specific instances of what
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if i buy an ad that says the republicans were backing the green deal? what if i buy an ad that says this? he basically said this is something we would not bar you from doing. he's really going to be called to task for that, especially given what happened in 2016 when there was so much disinformation that was spread on the facebook platform. this is going to come back and haunt them time and time again. in my view, it is a matter of time before you are going to have some backtracking and more mea culpas from facebook on this one. taylor: as we take a look at the testimony and transition to libra, did we learn anything new about libra this week? shira: i think what we learned this week is libra is not going to happen, at least not any type -- time in the foreseeable future. zuckerberg in his opening statement said they will not move ahead with libra unless and until there is regulatory
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approval in the united states. i don't envision a scenario where that happens in the foreseeable future. maybe we should all stop thinking about libra for the time being. taylor: dead on arrival, we should stop taking about it? tom: i think there is going to be a continual debate -- there is going to be discussion over is this the right thing to do? what is facebook doing it for? why are they putting so much effort behind it? i do think it gets put on the back burner, but i don't think the discussion is going to go away. i think people are going to continue to debate whether it makes sense for me as an uber, lyft or spotify to be part of this if and when it gets off the ground. taylor: we all know it would not be a news day if we did not talk about wework and softbank. shira, you have another scathing article on wework and softbank. walk me through why it could get worse for wework. shira: this is a story that keeps getting wilder and weirder. the thing i'm a little concerned
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about for wework is it got this bailout, this kind of financial emergency -- basically, it is a loan from softbank or arranged by softbank for $5 billion. i wonder how much time that buys this company. remember that as of june 30, they had $2.5 billion worth of cash on the books. it seemed like it would be enough money to carry them through for a while. all of a sudden, the ipo didn't happen and it emerged this company was going to shut its doors and run out of money in weeks. i just wonder what is the real cash need of this business, particularly now that they are going to, we think, lay off a
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couple of people, pay them severance, and so on? how much time does $5 billion buy this company? the other issue is they have signed leases, they committed themselves to making $47 billion in lease payments, for a company that bleeds cash. those two are pretty big concerns. both the rate of money they have been going through and the amount of money that they are committed to paying in future years. taylor: tom, does softbank look financially savvy here for are they throwing bad money at more bad money? tom: they have little choice. they are so deeply in on wework right now, you cannot just pull the plug because all that you have at stake is at risk. we've also talked to people familiar with the matter yesterday -- you talked about it here. we are looking at a write-down for them of at least $5 billion. we will get more visibility on that in the coming days when softbank reports.
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there has been a lot of scrutiny right now into softbank's investments, its attempts to raise vision fund two. are they good at making bets? a couple of their bets right now, uber and wework, not looking smart. taylor: the $5 billion write-down could really just be the beginning. that was tom giles and shira ovide. thank you both. now, sticking with wework, the company has investors thinking about the profit roadmap for private and public companies alike. one activist investor says box is a great example of the potential and nothing like wework. jeff: the wework issue has a lot to do with leverage, contingent liabilities and other aspects. this is still a good business. it is a well-capitalized business. this is a very healthy company with growth. it is growing a little slower than it used to be, but it is still a growing business. even though the profit margins are not where we think they could be, it is now a slightly
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profitable company. yes, from our standpoint, we think it should be more profitable. as i just talked about, we think there is a real opportunity to both reinvigorate growth, as well as to balance that with improved profitability. box has that opportunity. we are excited about it. we think the product is really good. rated very highly. it's cloud content management sharing. a terrific company, but it could be worth more. taylor: that was starboard value ceo jeff smith. coming up, we hear from susan lyne about the latest developments in big tech antitrust. plus, the former president of abc entertainment gives us her thoughts on the upcoming streaming wars. this is bloomberg. ♪
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taylor: let's take a look at the top tech calls. shares of nvidia closed higher friday after rbc capital markets raised the price target to $251 from $217. the analyst said the chipmaker was the best large cap name to own at the time. the analyst pointed to intel's quarterly results which saw strong growth in data center products. the analyst said nvidia would be a gainer on that news. speaking of intel, credit suisse raised the price target on intel to $65 from $58, saying growth margins were the only blemish in the earnings report. the analyst said the results and outlook provide more positives than negatives. ahead of earnings on monday, analysts at bmo raised alphabet's price target to $12.45 from $12.25 a share. earlier in the week, credit suisse raised the price target to $1700 a share, saying the products in the last few years are driving strong growth of search and youtube. those were a look at the top
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tech calls. and now for our conversation with susan lyne, the founder of bbg ventures and former abc entertainment president. 's carolg businessweek pos massar sat down with lyne for a wide-ranging conversation on the upcoming streaming wars, big tech antitrust, and investing in female founding startups. take a listen. susan: i do believe there is too much power in too few platforms at this moment. that is always dangerous. whether they get regulated, whether they get broken up, that is for other people to decide, but i don't think you could leave things the way they are where a single platform like facebook has the power that it does. carol: bbg ventures, are you finding all the opportunities you want?
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we talked before we got started about there is so much capital out there with private equity. are you finding enough opportunities? susan: my gosh. we absolutely are. we have seen 5000 companies with a female founder since we launched bbg ventures five years ago. carol: this is what you do. there has to be at least one female founder. susan: exactly. we do that not to be a do-good organization, but because we think there is a real competitive advantage to having a founder who intuitively understands the end-user. women are the dominant consumer. we're responsible for 80%, 85% of all consumer purchases. in all likelihood, if you are building a consumer product or you are building a consumer service, women are going to be the early adopters. they are going to be the people who determine whether or not you scale. so, we saw both an opportunity because the risk in the venture capital world was focused on something else. we saw big opportunity to invest
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in the best of these female founders. carol: i love to hear you say that. i know you have been on corporate boards, are on corporate boards. i think it is getting better in terms of female representation. what do we need to do to get much, much better where there is really parity? when i think about it, it should be diverse at all levels. susan: absolutely, no question. carol: what does it take to get there? we have been having this conversation for a long time. susan: absolutely. in my world now, the venture-capital world, i think it takes probably five to 10 female founded companies going public and maybe five to 10 exiting as unicorns for there to be a major shift. we are already seeing a number of storied, old boys club vc's bring on their first female partner. and it is all because of fomo. it is because they fear they are
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going to miss the next wave of big successful companies. so, you have to have somebody on your team, on your investing team who has those networks. who knows those women and who can make sure your firm gets a chance to at least compete to invest. that's what's going to change it. carol: one last question. in terms of investing, you make investments. i'm curious, is the endgame still taking companies public? we have seen what an interesting year with wework, ipo's. what is the ultimate endgame but does that not have to be it anymore? i?ll it not be that susan: i think that more companies end up getting sold than go public. that's always been the case. i do think there are a number of female founded companies out there that will go public during
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the next, let's call it, two years, three years that are on that trajectory. that are preparing themselves for it and trying not to make the same mistakes. the real issue for the companies that have gone public and that have either failed -- carol: or not made it there. susan: they were focused on growth over everything else. they went public still losing billions of dollars. in some cases, billions of dollars a quarter. the public markets said we don't like this. there was clearly a big disconnect between what the private markets value right now and what public markets are looking for. i think the female founders i have seen out there, they are watching this very closely. and, so are every vc.
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and, i do think there are lessons that have been learned that you have to take seriously more than just, you know, setting your growth. you have to be able to show there is a business model here that can be successful even if you are not profitable right now, that there is a path to profitability that is very clear. taylor: that was susan lyne of bbg ventures and bloomberg's carol massar. coming up, private companies are tapped to create space habitats once the international space station retires. feedplore the feet by -- one boston-based company. that is next. this is bloomberg. ♪
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taylor: over the past few decades, the international space station has allowed astronauts to live, work and conduct
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research in microgravity. with the station's planned retirement by 2030, private companies are being asked to create the next generation of space habitats. a.i. space factory is an architecture firm in boston which reverses an idea to send 3d printing robots to mars which can then harvest the materials found on the site to build the next generation of space habitat on mars. its technology is on the cutting edge. vice president pence: we will return american astronauts to the moon, not only to leave behind footprints and flags, but to build a foundation we need to send americans to mars and beyond. >> this proposed mission along with spacex's own mission to reach the red planet is affecting the long-term market and some companies are already thinking about orbiting habitats like space stations to build on the surface of other planets. >> i was working on a firm designing skyscrapers. i saw elon and he landed his
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falcon x rocket in the middle of the ocean. that was a trigger. i thought this could actually happen. it has always been my dream to put a building on the moon, on mars. if he is going at the pace he is going, it could definitely happen within my lifetime and i want to be the one to build it. >> in this warehouse, startups from across the u.s., architecture firm a.i. space factory is designing the production of a structure they created for nasa competition to design the next generation of space habitats on mars. >> when you start designing a mars habitat, you look at everything that has been done already and toss that aside. we were given a set of guidelines from nasa. they think the best way to build a habitat on mars or the moon is to use what they call resource utilization. use the materials that are there. if you have seen sci-fi movies, you might see glass and steel
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domes on distant planets, but the reality to ship that kind of material would be so expensive, you would never be able to build in the first place. the idea is to send a 3d printing robot which can then harvest the materials you find on the site and build it. -- with that. >> the reasonable print material is biopolymer used by recyclable plastic or sugarcane, and the rocks found on mars and earth. >> it is a rock that gives us incredible strength. we have tested this material. it is three times as strong as concrete in compression and it has the ability to prevent itself from being pulled apart. that is something concrete is not very good at. you need to think at all times how you optimize the amount of material that you use. that is also why this thing is shaped like an egg. if you think of an egg, it is structurally optimized. it is very thin, but provides the strength the egg needs. that is why it is shaped the way
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it is. >> the egg shape and the nest and shell structure also accommodates for extreme differences in pressure and temperature on the surface of mars. more research still needs to be done to find out how print materials could be gathered and how 3d printing could work in a unique environment of space. >> you are dealing with a completely different set of physics and environments which is very harsh. the cold, the low gravity, the vacuum of space. and, finding solutions for how to build or do anything in space just requires a high degree of innovation. there is no such thing as brute force when it comes to space. you need to think about the problem, find a very elegant, lightweight, cost-effective solution. the next challenge is really going to places on earth, taking the dirt we are finding on a side, and beginning to print with the dirt. we have to perfect this technology on earth. then, we need to prove it on the moon and finally onto mars.
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>> the first customers could include nasa and companies like spacex, who would lease out the structures for individual missions. before that, a.i. space technology hopes their technology can be monetized and transformational on earth. >> the challenges of building on mars forces us to make this jump in construction technology which we can now apply on earth to build more sustainably. rather than build with steel and concrete, which are these very manufactured materials, to go to a site and have a solar powered ray that would have our 3d printer to print in the most sustainable way possible. we never would have found these ways if it was not for the challenge of building in space. >> 3, 2, 1. ignition and liftoff of the falcon ix to the space station of the first commercial launch of kennedy space center's historic pad 39-a. taylor: that is part of our special bloomberg original series called "giant leap."
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you can check out more on that does it for this edition of "bloomberg technology." we are livestreaming on twitter. check us out @technology. be sure to follow our global breaking news network, @tictoc, on twitter. this is bloomberg. ♪ here, it all starts with a simple...
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>> this program is a paid presentation for dr. ho's circulation promoter. heather: i am heather smiley. on today's show, we are talking about circulation. if you suffer from pain, bad circulation in your legs, pain in your hips, knees and ankles, or feet, from arthritis or sports injuries, today we will meet dr. michael ho, the inventor of dr. ho's circulation promoter, a device to relax muscles, improve circulation, and relieve pain.


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