tv Bloomberg Technology Bloomberg July 23, 2019 11:00pm-12:00am EDT
snap, bullish bets pay off as the social media company far more users coming back on a daily basis, but can the growth keep happening? the u.s. department of justice is poised to open a broad antitrust review into big tech, putting off of it, and facebook in the spotlight. regulators are looking at whether tech companies are so big they stifle competition. this ratchets up pressure on tech giants facing scrutiny from europe to capitol hill. joining us to discuss are a bloomberg tech executive editor, our bloomberg tech reporter who covers apple, and ben brody who covers tech's corporate influence for bloomberg in washington. what do we know? >> well, not a whole lot. i think what we are looking at complement toof the task force the federal trade commission announced. the ftc and the doj share
antitrust oversight. i think we are looking at a complementary task horse. is especially interesting as we had believed that doj and ftc had split up the companies. at doj would only be looking google and apple and now it seems like they will be taking something much more high-level. they could be doing criminal referrals to other parts of the agency. they could be working with ftc and some of these companies could be facing scrutiny from both agencies. about thiss talk because the doj had taken oversight over alphabet and apple. to be lookinging at facebook and amazon. both agencies could not be looking at these companies? >> potentially. it looks like the doj is referring for itself a very broad leeway here to take a broad look at these industries to find out whether further action is needed. this is basically them sending
the signal that we are casting a wide net, we are not going to limit ourselves. all this talk about us getting this and the ftc getting that, we are not going to be bound by that. we are not going to be limited by that. we are looking at the technology industry in a broadway. we talk a lot about how there's a lot of people who believe that antitrust regulation in the u.s. which dates back more than 100 years needs to be updated for the 21st century to account for social networking, retail platforms that have taken over the internet and are killing the retail industry, need to be updated for search and all of the services being provided digitally from the apples, googles, amazons, and facebooks of the world. this seems to be what the doj is doing. we are going to take a look at this. do we need to look at these industries in a new light? emily: all of these companies appeared on the hill for a hearing with congress people.
talk specifically about what this means for apple? senator elizabeth warren made the case that apple should be broken up. they shouldn't be running the app store and choosing the apps that are on it. apple doesn't have majority market share when you look at almost anything. mark: it is an interesting case for apple because they are not the dominant player in any of their markets. whether that is services or hardware. the iphone is not the biggest player. you could say they have a hold on the smartwatch and tablet market. but those are much smaller market. when you look at services, spotify far exceeds apple music. the productivity software is well behind others in usage.
if you look at the app store in particular, the crux of the issue is that apple charges a 30% fee to third-party developers. it is obviously not charge itself that. apple music compared spotify. apple isn't paying a 30% share of what it is getting whereas spotify is paying 30% to apple. that is where the issue is. they feel apple has the competitive advantage because they are on the same platform. are not having to spend that 30% cut. there are also arguments on the others as well. emily: following the antitrust hearing last week, they sent some follow-up questions to the company and made this statement, "i was deeply troubled by the misleading answers and statements made. it is unclear if these responses stem from the lack of preparation, purposeful evasion, or the inability of the companies to bring appropriate witnesses for the hearing."
what does it mean that you've got pressure from lawmakers, the president, and from the attorney general now opening this investigation into these companies? >> what you get when you have this level of pressure that goes across washington is that you make it easier to eventually do something to the companies. you have pressure on them, you have made them weaker, distracted them, and in many cases you have made them less popular in public. if you are going to regulate them on the hill, it makes it easier to come down and do that. spoke to the letters that the congressmen sent out a few hours ago. he said that he believed that amazon may have lied about its relationship with third-party sellers and about how it competes against them or allows them to sell on its platform. depending on who you are asking. he sent us this really interesting series of letters. it asks a series, yes or no, basically repeating the question. they can't issue a lengthy
explanation. if they answer yes, he has already said that he doesn't believe what they said. if they answer no, they have to demand more documents. you can see how these requests can ramp up incrementally. they are caught between a rock and a hard place. whatever they do, they will be more demand of them. that is the level of scrutiny and it will only get higher. emily: we have learned a little bit about the settlement that the fcc has with facebook, how facebook handled user phone numbers. now we believe and bloomberg has reported that it is in the area of $5 billion. what more do we know now? tom: it is hard to say exactly how much more than the $5 billion. if it is the $5 billion, pretty much just a slap on the
wrist for the company. they generate tens of billions of dollars. if they do something that will tie facebook's hands, that is when investors will be looking closely. what is important about the doj looking at the same time as the ftc just speaks to the number of levers that policymakers have access to. it is potentially some criminal action the doj will come down on. is there a fine? we have said many times, fines are no big deal to these companies that are swimming in dollars. but can you bring criminal proceedings? can you also force them to change their behavior? that is what sends fear down the spine of silicon valley. to jump on one thing that was made, not only is it across agencies, this is also bipartisan. it is not going to go away. the democratic party, which
traditionally has been seen as somewhat more sympathetic to silicon valley, some of these democratic candidates are coming out with the most aggressive stances and potential policy moves, breaking up big tech. it is bipartisan, multiagency, and it is not going to go away. this is going to be a central issue through the 2020 campaign. emily: we will continue to cover those headlines. executive editor, tom giles, you are staying with me. as well as you, mark. ben brody, thanks. thanks so much. coming up. president trump's top negotiator robert lighthizer heads to china. open to finalize trade terms. this as apple is asking for a favor to waive tariffs on parts of the mac pro. that is next. if you like bloomberg news, check us out on the radio. this is bloomberg. ♪
emily: bloomberg has learned that president trump's top trade negotiator will lead a delegation of officials to china. robert lighthizer and his team on monday had face-to-face talks with chinese officials. this is after a company asked them to exclude parts of the mac pros to the import tariffs. to discuss more, our bloomberg
trade reporter in washington. still with us, mark gurman. in studio, bloomberg tech executive editor tom giles. what do we know about the meeting between the u.s. and china? jenny: we finally have the dates of the first face-to-face meeting. we have had two phone conversations between robert lighthizer and steven mnuchin and their chinese counterparts. we know they are going over to shanghai for a really quick trip. they are leaving on monday, they will be back on wednesday. they will be really picking up the pieces from when the talks fell apart in may. they have to feel each other out to see where they restart the talks. in the draft agreement that the two disagreed over. there's not really time for any breakthrough or anything like that. emily: silicon valley has a lot at stake here with tariffs being
threatened on $300 billion worth of goods. now it is asking the government for a favor not to put tariffs on supplies for the new mac pro, which is ironic given that they are also moving production from the u.s. to china. mark: they indicated about a month ago that the new mac pro, $6000 machine, is going to move from texas to china when it comes out this fall. now we have apple asking for exemptions on the tariffs, manufacturing in china, and importing to the u.s. they want to have their cake and eat it, too. it is not a good look for apple. it is interesting that they want the benefits while manufacturing in china. emily: of course, chip companies watching closely.
texas instruments just out with results. are we seeing the impact of the geopolitical issues on the numbers? tom: we got somewhat positive news from texas instruments. the concern was that their customers were going to lighten up orders. texas instruments is a little bit of a bellwether. they sell chips that go into cars and all kind of electronics. when there is a problem in the global economy, it really shows up for texas instruments. they came out with numbers that were a little bit better than expected. things are not bad as we feared -- that is the message from texas instruments. their stock is up in after hours trading. it is giving some investors encouragement that things aren't going to be as bad as previously feared as a result of the trade war.
emily: meantime, we have gotten some detail on the meeting that a number of different tech companies had with the white house yesterday. many of them were chip companies, talking about the blacklisting of huawei, how that impacts them. listen to what advisor larry kudlow had to say. larry: with respect to the additional licenses where there are no national security implications, they have applied, and all they ask is we speed up the application process, and of course we agreed. emily: do we know any more about how that meeting went, the meeting between the white house and tech companies? jenny: what we know is that the president showed up.
it was just supposed to be larry kudlow and steven mnuchin, and the president dropped in, talked to the executives, heard the case they have made to wilbur ross before. he agreed to speed up the process. interestingly, we heard today from wilbur ross that it is not a piece of cake to go through a bunch of exclusion requests or license requests and hand them out. he was kind of walking back a little bit the optimism we heard coming out of the meeting from larry kudlow and yesterday, the white house spokesman. the president agreed to speed to that -- it up. it is not that easy. the readout is that it was a positive meeting. it was not just about huawei, but the huawei issue clearly was discussed and executives came away on a positive note thinking they could maybe thread the needle and figure out a way to keep selling their products to huawei that do not impact u.s. national security.
emily: meantime, we did speak to commerce secretary wilbur ross earlier today. take a listen. secretary ross: in some cases, the applications have just been filed. a few of them have said they haven't gotten their applications in yet. we will deal with them promptly. there are 50 some applications from around 35 companies that have been received. within the next couple of weeks, we expect to have verdicts. emily: does this mean that the white house is listening? tom: it is definitely paying attention. how quick is quick? and what constitutes a national security threat? that is the question i have. i know a lot of the tech companies want to know. does my product give huawei an advantage and enable huawei to
circumvent some rules? that is the question that the tech companies are still trying to ascertain. i think we will get more clarity once they start filtering through these applications which, as kudlow said, are more voluminous than expected. emily: major moves in the chip industry. mark, you have been reporting on apple's interest to purchase a ship unit from intel. -- chipunit from intel unit from intel to bring more of its chips in-house. mark: the latest news is apple is in discussions with intel to acquire its modem team. modem are the chips inside of phones that connected to the data, so you can use it not on wi-fi. it is arguably the most important part of any phone, many tablets, smart watch.
i'm sure laptops in the future as well. this would allow apple to have more engineers which would jumpstart their efforts to build a modem for new iphones and basically cut qualcomm and other suppliers out of the equation for that really key device. they: we will be beating drum until that meeting next week. mark gurman, tom giles, jenny leonard, thank you all. snapchat's growth accelerated in the second quarter. details on the latest earnings report, next. this is bloomberg. ♪
robin hood became popular with millennials for allowing people to trade stocks for free. after reporting second-quarter earnings, it looks like the social media company is in recovery mode. after snap's disastrous redesign last year, it came out with a new version of its android mobile app. it also gave an upbeat forecast, saying it expects a daily users 207 million into the quarter. daily active users coming in quite above estimates. is it all because of android? sarah: it is also because snap has made some very popular augmented reality filters that change people's faces, change the way buildings look. some fun ones like a gender swap filter you may have seen. it speaks a little bit to the risk of the strategy that snap is betting it can be as creative as that every quarter. the android redesign is important because it allows the app to be more usable in markets where it hasn't caught on as
much as the u.s. but still a long road ahead. emily: i'll admit, we have played around with some of these filters at home. but are they enough? it is sort of like a gimmick. is that enough to sustain growth over quarters or years? sarah: it is a hard bet because you want to make sure those 13 million new users who came in this quarter keep coming in every quarter. snap has decided for its strategy -- all the other big social media companies have relied on building bigger networks. snap has relied on creating something fun. it is really about always delivering something new and interesting, whether that is content, games, interesting lenses. they have spent so much on research and development to get there. it is hard to be consistently
creative. we will see of they can continue to pull it off. emily: this as the doj is entering an antitrust review into big tech. they have not specifically mentioned facebook, but we can assume it is probably on the list as it faces this $5 billion settlement with the ftc, a pending antitrust investigation, and all the other controversy they are facing. do you think the fact that facebook is mired in all of these other issues could be a distraction for facebook and give snap an advantage in the near-term? sarah: i think snap is definitely taking on some of that user distrust of facebook. those network affect are really powerful. an analyst told me earlier today that there is really no other game in town compared to facebook for the kind of return on investment that advertisers can get from their ads.
you can look at it as snap having a long way to grow, or you can see facebook as a dominant force. even if the ftc comes down with punishment, if the doj start looking into it, they are so big and so good at doing what they do that they are very difficult to compete with. emily: all right, we will let you get back to covering those headlines. coming up, the u.k. is getting a new prime minister. we will talk about what boris johnson means for the tech industry, next. check us out on twitter and follow tictoc. this is bloomberg. ♪
emily: this is "bloomberg technology." i'm emily chang in san francisco. boris johnson, the public face of the brexit campaign, was elected tuesday as the next british prime minister, with a landslide win. he promises to take the u.k. out of the european union by the october 31 halloween deadline, but how will tech be impacted by the leadership change? alex webb explains. alex: boris johnson is the u.k.'s new prime minister after defeating jeremy hunt in a vote of conservative members today. it was quite a substantial victory. what did it mean for tech? well, one of boris johnson's most ambitious targets is the
desire to bring high-speed broadband to every household in the country by 2025. the existing target was 2033. a goal that johnson called laughingly unambitious. he doubled down on that target today, even though a lot of people said no real detail on how we will achieve it and how he will get there. there is a suspicion that one of the reasons he set such a target was his core constituency would have been in the region's in the countryside, people who don't have good broadband right now. it was a real carrot to get their votes going his way. some also see it as sort of the classic boris johnson ambition without any real sense of what is realistically achievable. there was concern about the implications for the target for brexit, for example. there is likely to be some acceleration under his leadership if he is really going to push these targets, but it
seems very much overly ambitious to reach that goal. alex webb, for bloomberg opinion, in london. emily: back to our top story. shares of apple, amazon, facebook, and alphabet down on after-hours trading as the u.s. justice department says it is investigating whether tech giants are harming competition. the head of the antitrust division laid out the reasoning, saying without the discipline of meaningful market-based competition, digital platforms may act in ways that are not responsive to consumer demands. and added the department's antitrust division will explore. -- explore these important issues. to discuss, we have chris calabrese, the vice president of policy for the center of democracy and technology. with us in the studio, eric hippeau, the managing partner of lerer hippeau. what is your take on the rising pressure at the highest levels of big tech? eric: it is a major reversal of the lack of enforcement we have seen in previous administrations.
five of the top five companies in america are tech companies, and they are subject to antitrust activity. emily: used the word lax, implying that have not been doing enough? eric: i think they would like to on the privacy issue for sure and we are seeing the ftc will find facebook $5 billion. that is separate from antitrust. i find antitrust laws are going to be very difficult to enforce because antitrust laws really look at the harm to the consumer, mostly in the rise of prices. most of the services are for free so it is going to be very difficult to demonstrate that they are harming consumers in that respect. they are going to have to use, if they are going to after these companies, they have to use all the rules.
emily: chris, you wonder with pressure coming from multiple federal agencies, the president himself and lawmakers on both sides of the aisle, is there enough will to make an antitrust case when it comes to these four companies? chris: i think there is. that is not to say that is going to happen but i was honestly not as surprised by this news. i mean, we know the antitrust division is considering competition issues in this space. they have been signaling it for a while. the ftc has been doing the same thing. honestly, doj is always looking at these companies. whether they will be able to decide to bring a case is a separate issue but until we hear more, i think it is more of a wait and see. emily: the question i have been asked over and over again -- are regulators doing enough? would you say that now are regulators are doing enough? chris: there are so many issues coming to tech today. we talked a little bit about
privacy. there is competition. concerns about anti-conservative bias. it is enough in what area. i would say we need more in privacy. we need baseline privacy rules in the united states. that goes without saying. whether we are doing enough in competition, i think that remains to be seen. competition laws are very flexible and they may get to this kind of conduct. emily: eric, of the big four, which do you think presents the best case for a breakup? eric: for a breakup? ok. the obvious one is facebook because of its acquisition of whatsapp and instagram. many years ago, when the government did nothing they were a threat as a monopoly, today, particularly since facebook has announced they will integrate these three messaging platforms, that would perhaps go for a breakup. these things take forever.
if you remember, the case against microsoft took years and years and really did not do much to hurt microsoft. i think there is quite a bit of political posturing in all of this. i don't know it will lead to anything. emily: chris, we have this pending fine from the ftc on facebook as a result of a settlement, possibly some more punitive actions on top of that. we don't know what yet. but, do you think that is actually going to have an impact? chris: yeah, i definitely do. $5 billion is a big number. especially when you consider previous fines in this space are in the tens of millions of dollars. this is astronomically more than that. when you look at it as balanced against the need for, for example, better security and more privacy, i think companies are willing to take on those costs in order to avert these kinds of fines.
the message for me on this is the ftc is always going to be somewhat limited in what it is going to do. congress needs to create more baseline authority for the ftc and other entities to be able to enforce privacy laws so we can get stronger privacy across the board. emily: eric, is all this pressure on big tech good for startups, good for venture capitalists? because you are investing in companies that are trying to disrupt these companies. it is very hard to disrupt anything. eric: maybe to some degree we will see new openings for companies but it is hard to see how you will take on as a start up, how you will take on amazon or apple or facebook. i don't foresee anything happening in the near future that will make any difference. emily: meantime, we've got the attorney general signaling that the companies' time to comply on various encryption issues is running out. take a listen to what we heard
from the attorney general earlier today. a.g. barr: i'm suggesting that it is well past time for some in the tech community to abandon the posture that a technical solution is not worth exploring, and instead turned their considerable talent to developing products that would reconcile good cybersecurity to the imperative of public safety and national security. emily: so, chris, the government and the doj specifically has been pressuring technology companies to give law enforcement access to encrypted communication. what is your take on this on top of all of these other issues? chris: well, i mean, it does sort of look like doj is piling on. there is not a lot of new stuff here. it is the same old tired argument. we want you to build this backdoor into your communications, but don't worry, only the good guys, only law enforcement can walk through that door. even doj acknowledges this
creates huge cybersecurity issues. they would like tech to somehow fix them. it is hard not to see it as exploiting the existing political climate given that the department of justice has not actually proposed any technical solution to help us get there. rather, it is tech, you are really smart, figure it out. emily: lots more to continue to follow. chris calabrese, thanks so much. eric hippeau, you are sticking with us. coming up, 2018 was a record year for venture capital, but how does 2019 compare? we will talk about the global funding climate, next. this is bloomberg. ♪
emily: according to facebook, u.s. venture capital investment reached $130 billion in 2018, surpassing an all-time high in 2000. despite trade tension and a global economic slowdown, 2019 is shaping up to be another big year. the first half of the year, u.s. investments were $66 billion, on track to reach record levels. still here to discuss is eric hippeau, from lerer hippeau, an early stage venture capital fund based in new york. how does this year compared to last? eric: so far, so good. it is on pace, maybe a little better than on taste. the venture capital industry in the u.s. is booming. lots of great companies to invest in. emily: what are you most excited about? what sectors are you most excited about? eric: we are doing quite a lot these days and digital health. finally perhaps the health care system will open up to innovation. the reason for this is because in the health care system, everyone is very guarded about their data. the big providers keep that data.
that data is starting to leak that data is starting to leak out. people are going to give access to that data so if you think of building services, communications, tracking patients, and all of these things, access to the data is key to a lot of innovation in this area. emily: how do you compare the state of funding in the united states compared to what is happening globally in the midst of these macro economic issues? the trade war with china and the broader economic slowdown? eric: it seems like other parts of the world are going very well. europe in particular has seen a lot of investments. latin america has seen new funds. i think china might be slowing down because american vc's are more cautious as to where the future is going to be. i think globally, you are seeing record investments. emily: given the acceleration of the ipo market, are you trying to convince more of your companies to pull the trigger?
to take the public route? eric: i have always thought being a public company is a great thing, despite all the hassles. i think to have your own currency, to be in charge of your own destiny, to be able to reward your employees with stock options is a fantastic thing. we are seeing a very healthy ipo market this year. what we are hoping is the public investors are going to get a little bit more encouraged, take a little bit more risk and want our companies to go public sooner so they can benefit. emily: will we continue to see more tech companies going public second half of this year and next year? eric: if the market holds, there is a long list of companies that have filed. emily: what companies are you most excited about in particular? eric: well, in my portfolio, we have a lot of companies. i will mention k-health. we are talking about digital health. this is a company that does a.i., artificial
intelligence-based diagnostics, which is the trend of the future. in the future, when you speak to your health care provider, you're first going to go through a diagnostics, a.i.-based diagnostics. k-health signed a major deal with anthem and anthem will deploy it to all of their patients. emily: given the acceleration of the ipo landscape, what about m&a? are more companies thinking we can go it alone, take ourselves public? or perhaps selling is better? eric: not everybody can go public. you have to have a certain size, a certain forecast. the m&a market is quite healthy at the moment. for this year so far, a better year in terms of last year. those companies that have a choice and can go public, my view is it should. emily: how concerned are you about the trade issues and the growing sort of sense of isolationism in the u.s. and other countries?
we are seeing it in the u k, poised to pull out of the european union. china as well. what does that mean? eric: it is worrisome because it is an about-face in terms of the politics we have had in the past 20 years of globalization, open markets, freedom of ideas, freedom of people moving to be able to develop their ideas wherever they want. this goes hand in glove with the anti-immigration movements. all of that is not good for innovation, not good for us. emily: what does it mean for innovation? eric: it means you are going to see silence again. -- silos again. people in china are going to do their own thing, they will not collaborate with people in the united states. it is going to slow it down. on the other hand, i don't think this is a sustainable long-term policy. i think globalization is here to stay. this is a course correction that maybe was needed, particularly in the case of china. but, it is in their best
interest in our best interest to continue with open markets. emily: eric hippeau, good to see you here on the set. thanks for coming. still ahead, looks like softbank's vision fund will not be a one-hit wonder. we have details on how it plans to replicate the $100 billion plan, next. this is bloomberg. ♪
alibaba in the united states as trade tensions with china continue. alix steel and david westin sat down with john caplan, the head of alibaba's north america b2b, to discuss. john: today is a great day for u.s. small businesses. manufacturers and wholesalers can join alibaba.com today to sell to the world. the platform is open to enable those businesses to reach the 190 countries, four corners of the globe where we have 10 million business buyers on the platform. david: how big is that business in the u.s. going to be? john: $23.9 trillion. it is six times larger than the b2c market. david: i did not realize that. b2b is many times larger than b2c. john: alibaba.com is the largest b2c market on the planet. what we have built our simple to use tools for small businesses to have a global storefront to market to customers and then to
reach deep into the globe so they can sell their goods. david: despite being here on bloomberg, how do i know that that i can now sell onto alibaba.com? john: today is the big announcement, but one third of the demand are here in the u.s. those folks we have been doing business with for 20 years since jack founded the company. we are telling them you have been sourcing on the platform, now you can sell to the world. david: any plans to go b2c? john: we are entirely focused on the b2b market. alibaba.com is purposed built to help businesses sell to the world so we are focused on helping digitized small businesses around the globe. one interesting statistic -- 70% of u.s. small businesses do not sell online today. this market is not yet digitized. we created simple to use tools to help small businesses get online. alix: it is hard to say the word competition and alibaba in the
same sentence, but how do you compete in other areas? who are your competitors and what does that wind up looking like? john: the value chain for small businesses, for b2b is so complex that no one has digitized end to end rather than alibaba.com. we created a platform for small businesses to negotiate, pay, handle the logistics. i think we are in a class by ourselves. david: how does this read again some of the u.s.-china trade tensions? does it affect you at all? john: our business has seen triple digit growth. this plan has been in the works for many years. i joined alibaba.com in 2017. the transformation of our business from yellow page business to end to end procurement platform is now adding the globalized supplied to the platform. emily: that was alibaba.com head of north america b2b, john caplan, and bloomberg's alix steel and david westin.
softbank is close to announcing the launch of a second technology investment fund model. on its $100 billion vision fund. for all the details, we are joined by bloomberg's ellen huet. what do we know? ellen: we know some things and we don't know others. we know our reporting has shown softbank is getting ready to announce a second vision fund that could come as soon as this week or early next. what we don't know is the official size of the fund or to exact leave the investors are going to be. there has been reporting done that it will be quite large, similar to $100 billion first vision fund which was an eyebrow raising, record-breaking huge weight in silicon valley. it seems like the reporting suggests some of the biggest investors in the first vision fund will be coming back and investing again in the new vision fund. that includes sovereign wealth funds of saudi arabia and abu dhabi.
emily: when the plan was unveiled, there was a question of will there be enough places to put this money? we have seen softbank drive massive rounds into rising tech startups, giving them essentially a lifeline for potentially years. how successful have the first vision fund been? ellen: in june, he was talking about some of the successes of the first vision fund. he said they had a 62% return on the funds invested already, $64 billion. that included enormous checks to big names in silicon valley like uber, wework. softbank corporate has but about $10 billion into wework. we can see through that and other checks of hundreds of millions of dollars into some of these other companies in the valley that softbank has made quite an impact on funding the last couple years.
they have been big investors in slack, another company that went public. they have not deployed all the capital. it does look like, if this plan goes forward, they are using that momentum from early successes of the first vision fund to raise a second one. emily: i wonder how much of those early successes was uber alone. uber was public and softbank was the last investor to get in at a valuation that was below the valuation it is trading at now. there was greater optimism that uber would soar past the $100 billion valuation which it did not. softbank got in essentially below the ipo price. ellen: this is the testament to the optimism of masayoshi son. he sees great opportunities in this growing area of the tech sector, and just looking forward to trying to replicate the second fund. with wework alone, we have seen the valuation change in subsequent rounds of funding as
softbank alone is the only new investor. they see opportunities to reinvest in companies even if they are not being followed by other investors willing to write the same size checks. emily: we will keep following. ellen huet, thank you so much for that report. that does it for this edition of "bloomberg technology." we are livestreaming on twitter. find us there @technology. follow our global breaking news network, tictoc, on twitter. this is bloomberg. ♪
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