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tv   Bloomberg Technology  Bloomberg  July 6, 2021 11:00pm-12:00am EDT

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announcer: from the heart of where innovation, money and power collide. in silicon valley and beyond. this is "bloomberg technology" with emily chang.
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caroline: i'm caroline hyde in for emily chang. coming up in the next hour, the firm losing almost $20 billion in market valuation just three days after the company debuted as the largest chinese listing in u.s. history. more on chinese listings crackdown. more on the massive ransomware attack over the weekend with the global software supply chain. the white house says u.s. and russian officials will meet next week. andy jassy takes the reins from amazon. what that means, will he receive scrutiny in the overall transparency of the giant. u.s. stocks fell with a streak of seven consecutive record highs. u.s. treasury market is where the action was. yields at the lowest since february. there is a key picture that has big tech back on top. >> it was a risk day off on the market. you could see the 2020 trade. tech serving. that is what you are seeing. s&p 500 dealing with a lot of negative factors. the delta variant, the pfizer vaccine affect efficacy, and the potential for opec plus to not come to an agreement in oil prices higher. those inflationary concerns
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weighing on the s&p 500. that risk off nature showing up in the nasdaq. it did not translate to chinese textures, which is something we do with a bundle trade and has everything to do with dd. -- with didi. you've seen in the 11 days since they i.p.o.'d, a 14% plunge, or i should say an 11% plunge, it was 14% earlier, but you are seeing the idea that although it was an attractive ipo for reasons, this ipo that had so much data on a chunk of the population, one of the major value adds, chinese regulation. chinese regulatory is coming out and saying we have to remove dd from the app stores, weighing on stocks. which brings me to other big tech companies. let's bring it back stateside. you did see the pentagon award a cloud deal split to amazon and microsoft. good news for amazon, not so great for microsoft because it was a deal solely for microsoft.
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now they are having to split it. you can see amazon thriving. microsoft unchanged, it was negative earlier in the session. lead zoom out on the amazon chart. i want to show you that that spike is pretty significant. you see a sideways move in them that big spike today. caroline: new record highs to welcome the new ceo at amazon. the breakdown on all things on the market. the pentagon scrapping the contract. that was pretty controversial in 2020. the defense department plans to devise the work between microsoft and amazon. amazon was arguing that interference from then president trump cost its deal. is microsoft going to be upset by this? wringing their hands? or were they expecting? >> i think microsoft said, we are happy to continue working for the government, obviously
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they don't get that entire $10 billion pie that they were originally slated for. but the alternative was to extend the contract term, the court battle that was waging to defend this project. and that has delayed this process even more. so in this case the pentagon gets a void for the court date battle. microsoft gets to avoid having to delay its work on the contract to get a piece of the pie. caroline: if it's in practice, how do you divide it, how will it work with microsoft and amazon on the same project? naomi: essentially, they are going to decide based on unique attributes that microsoft brings to the table and wet amazon brings to the table. so the pentagon is still figuring out, what's the top
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value number, what's the value of this going to be? microsoft and amazon don't automatically get a piece of the contract, they will have to submit proposals, which the pentagon will review. the pentagon has said they will meet with other companies like google, like ibm to see if things evolved in their market services enough that the pentagon feels that they should be working with those other companies as well. caroline: back to basics, the jedi contract and! implementation, what does it mean for the pentagon? naomi: essentially the pentagon decided a number of years ago that it needed to transition to the cloud. the idea was that it would have this big data repository, and it was just one company, giving it up to $10 billion over a decade.
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a lot of big tech companies fought hard against that. initially, it was seen that amazon was the front runner of the deal because i got a similar deal from the cia. then you saw oracle, microsoft and ibm team up to lobby against the contract. then microsoft unexpectedly got the deal, and amazon filed a lawsuit saying that interference by donald cost them the deal. this has been a long road for the pentagon to implement technology it has considered critical for our work. caroline: and it still continues. hopefully they get up to speed by early 2022. we thank you. we are hearing from the other key top story, china issuing a warning to its companies vowing to tighten oversight of data security. this comes days after didi listed itself in the united states.
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that was a pretty interesting decision on that part. the reason i say it's interesting is that what we learned throughout bloomberg reporting is that, didi seems to have known, even have been told i the government and china to postpone the ipo, but it went ahead anyway. >> that is correct. they were told to delay it. we don't know if that's because they know that the probe is going to come or whether they knew they would get taken off the app store. we don't know what didi knew, but they knew it was perhaps not the best time to do a deal. it was the 100th anniversary of the chinese, his party, so there are many factors why last week was an interesting timing for a big debut. but having your app taken down 3 c1 %-pafter going public is not gr optics.
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there are a lot of questions about what they know at the time, what the communication was and whether investors and bankers no. we will continue to follow the story, but this is weighing in and definitely having effect on adrs. especially because this is not the first time a high-profile deal saw cracked down after they have gone public or planned to go public. ant financial saw the same things, bytedance has seen the same things. it's a very interesting time for the government. caroline: what do you think, in terms of the pipeline of companies that have to list, how many will be put off by what alibaba was had to go through and now didi? crystal: we have seen the chinese adr pipeline shrinking over the years. a majority of the deals back in
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the days were from china. these days, the majority of inte9b's%=91 are from israel. there are a lot of enterprise companies. the biggest news is from korea. chinese adr is increasingly less influential in the ecm market in the u.s. a lot of the u.s. investors, especially venture investors, are privately invested in a lot of these big chinese tech companies, like the ant, the didi, and the bytedance and they want the liquid access. that dynamic is going to continue to play, whether regulatory risk is bigger than the liquid exit, that is down to the back. caroline: we will have to see it go through the hong kong/shanghai route.
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we thank you as always. coming up, the news of the weekend did not stop. cyberattacks continuing. hundreds of businesses affected by what is believed to be a russian linked group. we have the details next. this is bloomberg. ♪
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caroline: the latest cyberattacks stemming from russia, again, and has hit 20 software firms, affecting 1000
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businesses. it follows a cyber attack that left the united states without adequate gasoline supplies. one on the irish public health system as well. undoubtedly, many more attacks go on unreported. they do not wish to advertise their willingness to pay ransom. a question remains will ransomware send, and if so, when? you deal with dozens of ransomware cases, involving this particular rebuild. who is potentially behind over the course of what happened over the weekend? >> it has been a busy weekend, caroline. in short, this attack group has been responsible for what we call a model of ransomware as a service for the model. while the attackers might be new to your viewers, we have been investigating them since 2018. this group in particular is responsible for a lot of these more sophisticated business processes that we see from attackers. and ultimately, what we are talking about, as this concept
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of ransomware as a service, that strategy was used in this case. in particular, what that means is this group has a rented out their communications infrastructure, their developers, their leak site, which is known as the happy blog, in order for another group who is responsible for conducting the attack. in return, they get up percentage of their proceeds. caroline: hire a ransomware hitman. how does this feed into what we are now learning with the rnc, the republican national party being hacked as well? that seems to be russian government related of hackers, but perhaps not this group. wendi: one of the things that's important to realize is, we've got a ransomware problem throughout the world. ultimately, regardless of where the attacks are coming from, we
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cannot allow governments to enable attackers to operate with impunity in their environment. so it's going to require a coordinated effort where we share threat intelligence, where we are making sure that we are disrupting attacker infrastructure, and that governments are working together so that we can have more organization to actively choose not to pay the ransom. that is critical. caroline: what is so interesting about the timing of all of this is that president biden only just met with putin. only just discussing the fact that they want to see a step back from russian cyber security threats. is it always going back to russia? as you say it, it is russian based, but it could have been anyone hiring them. what do we know for the timing and the sensitivity with russia and the united states? wendi: that is a very sensitive issue. diplomacy between our two countries is always something we
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will be working towards. i think this attack is not necessarily new, but what is new and interesting about this attack is the financial model that they are moving towards. quite frankly, we are curious as to whether that is something we will continue to see. in this case we have seen the attack demand be $70 million, and to put that into historical context, five years ago the average ransom demand we saw was 10,000 u.s. dollars. 70 million is huge. what they have done here is, they now have decreased that ask to 50 million, but that is for a universal decryptor, which is similar to the master key at a hotel. they have also monetized individual systems. for 45,000 u.s. dollars you could decrypt an individual system, which would be like getting the key to your specific hotel room. hackers are going to be more creative on ways to demand more money on these attacks.
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caroline: how much are they looking into getting to the entire food chain? the fact that it has a ripple effect of affecting thousands of other small businesses, is that something they are looking to do, or is that a happy byproduct from this? wendi: they are absolutely looking to disrupt supply chain. that relates to their ability to demand more money. one of the areas we are cautiously optimistic about in this case in particular, is that the ceo has come out, provided specific actions that the company has already taken. they have clearly communicated those and focused on the effectiveness of their response plan. that is something we would encourage clients and organizations throughout the world to focus on preparedness. that is the key to stopping these attacks moving forward. caroline: we thank you. meanwhile, coming, neighborhood social media app is the latest
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company to go virus. we will hear from next-door ceo sarah friar. that's next. and, as we head to a commercial break, look at this chart. u.s. traded shares of weibo ending tuesday are up almost 7% after jumping almost 40% at the top of the day. this came after a report that said the state investor or in talks to take the company private. a statement denied that report. this is bloomberg. ♪
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caroline: next-door is the
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latest company to go public. the social media app will merge with a company created by a venture-capital billionaire. it is valued at $50 billion. we spoke with nextdoor's ceo. >> next-door is already in one and three households in the united states. 276,000 neighborhoods across the country. we are primed and ready for growth. what these proceeds do our, number one, they let us continue to grow new neighbors onto the platform. it allows us to keep adding personalization, so when you come as a neighbor it feels like home. it's a place where you want to meet the people around you. and we want to keep investing for businesses. small, local businesses that strive in local communities, but also our proprietary ad. beyond that, it's about going global as well. we know next-door works in every country around the world, we need to get it there. >> you talked about the appeal of working with sarah, and you
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guys have a previous relationship going back to square, in the square anomaly being a 2 billion-dollar market that went to 100. this deal values next-door roughly four and change. how do you see this growing? could this be another $100 billion company or even bigger? >> next door is the neighborhood social network just like linked in is the network for professionals. it has strong network effects and an unusual feature which is online and offline effect which is you seldom see in online networks. so in terms of potential, we see a lot of potential, most growth is ahead of us. the huge growth factor of course in local advertising, international growth, but there's also nonadvertising sources of revenue that are
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possible in the future that excite us. so how big can it be? it depends on how well the team executes but it's not limited by the opportunity and we think we have a great team here. >> a big part of the ethos in this company is kindness and its claim to be a kinder networking platform. i wonder how you manage it. when you have this trend of social media with a repository of choice for a lot of venom, how do you maintain that message on your platform without censoring your users? sarah: this is at the core of who we are. nextdoor was founded on trust. you have to be confirmed of the real neighbor at a real address. there is no avatar. we think part of it is social science, behavioral science.
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when people are their real selves, and you might bump into them in the line of the local coffee shop, you inherently act better. that said, we don't wanted to be sweet. kind can get you into that zone. we want kind to read as bold. we want to bring tough conversations to the floor and have people disagree but not be disagreeable. we can use technology in tandem with behavioral science. so we do things like kindness reminder. if we see you posting something with some of that venom that you just talked about, we slow you down and remind you that what you are about to post is likely to be reported, for example. that tends to make people be there better self and they think from here, not from here, where their biases reside. we have done a lot of work to wrap technology into this. it's not about moderation and editorialize, but how do we utilize technology to help people engage, but in much more constructive ways. even though sometimes it means that it took down engagement, you don't want to just fuel the
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engagement fire for growth at any cost, we believe great growth comes because you build a platform that people feel welcomed onto. >> obviously it's something we are seeing slow down and we see that reflected along these vehicles. do you think this particular market bubble has run its course? vinod: there are good things about spacs and bad things about spacs. biotech has always been able to do ipo's without having revenues for 5-10 years. the ability to explain your future when it's different than your past, which we have seen the case of next-door accelerating growth, is a real benefit to companies when they are considering an ipo if it's a spac alternative, in my view. and you can eliminate the abuses in the spac market. for example, no warrant, longer lockups. companies are held to the samecq
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an ipo. i think it's a very good, important tool. the slowdown is healthy, and will result in better spac and better spac behavior. caroline: that is vinod khosla with next-door ceo sarah friar. the innovators in the world of decentralized finance. building synthetic versions of ways to track some big companies. tesla, apple, other big stocks that have been created by the project mirror protocol and synthetics as well. they are now trading on blockchain's and they reflect the prices of the securities they track without any actual purchases or sales of the real stock. coming up, we hear from the binance u.s. co on the regulatory scrutiny it's facing for its wild ride this year. crypto is staying on volatile at $33,000 for bitcoin.
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from new york, this is bloomberg. ♪ ♪ ♪
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caroline: this is "bloomberg technology." i'm caroline hyde in for emily chang. let's get back to the market fund bring in kriti gupta for a look at how markets shaped up. kriti: a risk off day. on risk off days, who are the winners? it's tech. it's treasuries. you could see that with the nasdaq 100 outperforming. this will be crucial as we talk about where we go next. let's talk about the fact that the risk sentiment dips, bitcoin does too. looking at the two day chart. you are seeing the very big sentiment indicator dropping.
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no one wants to invest in those assets anymore. that's really seeping into the broader market. where do you go from here? caroline, the 50 day moving average might be a roadmap traders are looking for. look at the longer-term chart. bitcoin is trading close to where it was at the start of the year. but that's when we started to see 50 day moving average provide this line of support for the cryptocurrency. now, it's resistance. let's see if that holds, something to watch for in the days to come. caroline: live editing going on in the bloomberg terminals. we thank you. let's take a look at regulatory crackdown around cryptocurrencies. escalating amid concerns about potential involvement in money laundering. we spoke with the binance u.s. ceo brian brooks earlier. take a listen. brian: it seems that regulation is bad for crypto. the truth is, we are at a transition point with a number of people participating in the market has gotten so big in these frameworks.
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that's a sign of the maturity with the growth of the market more than it is a sign of something bad. what it means is, the biggest exchanges in the world need to be very sophisticated about how do you allow decentralization to occur? do you bring those assets to the market while ensuring good risk management, compliance with law, the disclosure of what you are selling to your customers? that is why we are excited about bringing the former california institution officer on board. we need people who have been in senior roles to help us navigate. i think successful companies will see that and try to compete with that talent. >> can you clarify the relationship for viewers between binance u.s. and binance globally, which is the world's biggest crypto exchange, by far. i know that there are separate legal entities, but can you ask -- how are you owned by them or what is the relationship?
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brian: we are not owned by them. does not own a share of binance u.s. we share a common founder. historically, by nancy west licensed the technology. the way to think about it is, a couple of years ago it was clear that the world was segmenting into two basic markets. you have most of the world, which was still learning crypto, did not have crypto licensing requirements, and then you had a part of the developed world that put crypto in a framework. we were founded to ba compliant license exchange. we have 43 u.s. states that allow us to trade in their borders based on licenses and other legal compliance mechanisms that we have. we will eventually have all 50 states licenses. of course, there are other parts of the world are served by different companies. other than licensing the name and technology we have a , separate board of directors, separate ownership, and you might think of us as a binance brand of exchange doing our own
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business here. they are the biggest in the world, we are the eighth biggest in the world. different companies. >> we have the brand in the u.s. when we talk about the u.s. , regulation, or lack of it, i am curious of your thoughts as to why this move has been so slow, to see something a little more formative out of the sec and the other regulators here? whether it's setting up guard wales, whether it's improving etf, there does not seem to be any real momentum. at least not that i could see publicly. brian: that is a great comment, and it says more about the u.s. regulatory system than it does about crypto. in this country we set up a lot of different regulators engaging in their share of turf. the issue is, and i know this having run one of these agencies, there is a turf conflict between the fed and the occ or the fcc and the cftc. everybody is trying to grab turf. because of that it's hard to get clarity. if you look at the united
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kingdom, where there is a single regulator for the entire financial system, it's easier to get clarity. overhear you have competition among agencies. there is overlap in their jurisdiction, so it's tough to deal with. we are not as far behind as people might think. at the end of the last administration, all of the major regulators got together through the president's working group on financial markets and provided clarity on certain crypto assets like stable coins. that's an example of how our regulatory system can adapt if they all work together. caroline: binance u.s. ceo brian brooks earlier. the solar industry has spent decades getting electricity directly from the sun. now it's working on making panels more powerful and transparent. bloomberg reports from south korea. >> today we are at an electric
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power research institute for a peek at one of many innovations companies are working to take solar power to the next level. perhaps the biggest success story for energy and environment in the past decade is how companies manage to cut the cost of solar panels by 90%, making them a cheaper source of electricity then in many parts of the world. now that they have made them cheap, companies are working to make them more powerful. the reason for that is that panels are just part of the cost of solar power. developers also have to compensate workers and pay back loans. as panels become a smaller part of the overall cost, it helps developers if they are more powerful to get more return on the rest of their spending. this is one of several firms researching a material. it is thin and transparent, and converts sunlight into electricity. the hope is that it will be layered over solar panels to give them an extra jolt of power, and someday maybe even tapped to the sides of buildings to generate clean energy in
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places like hong kong and singapore. it is not commercially viable yet, it's just one of several things companies are doing to supercharge solar. other innovations include having panels soak up light reflected off the ground, increasing the -- that make up the panels, and using more costly but powerful cell designs. caroline: thank you for that report. women make the first move dating at bumble has opened its first cafe in new york city. bumble brew will be a restaurant and wine bar for daters.i.x] it will be located in manhattan's nolita neighborhood downtown. since listing in february, shares have risen 28%. coming up, investors like amazon's new ceo. andy jassy rising on the first day at the helm.
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we will be taking a check. who took a chance on the e-commerce site back in 1995 when it was just a glimmer in jeff bezos eye. this is bloomberg. ♪
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caroline: nintendo has unveiled its long-awaited upgrade to the switch. the device comes with an led screen and $350 price tag. it is the first hardware upgrades in 2017. the new switch goes on sale october 8.
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a wave of new software just-in-time for the holiday season. let's see how gamestop performs. amazon shares rise the first day of andy jassy's new role. as for what amazon will look like, they will gain more resources. the company says there's more in the cloud. this as microsoft is nipping at amazon's heels. for more on how jassy might position the company after jeff bezos's departure, let's bring in matt. 1995 you took a chance on a then little-known company. kudos, my friend. what an amazing investment. you are with our work shifting conversation right now. clearly, some good news helping the stock on the back of today, the news around the pentagon as if you are andy jassy, and i'm sure you know him well, what are his key focus points right now?
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matt: i think he has already accomplished one of the most important ones, which is bringing back two really important people to the team and adam to run aws. adam was his right-hand person in that organization for the first 10 years, and then jeff blackburn, who built a whole bunch of the digital businesses and grand corporate development. for andy to be able to move into this role, this new role of ceo, to have two trusted partners that have come back into the organization really gives him leverage. caroline: how much is a trusted person to andy jassy at the moment? particularly as we go to regulatory conversations. how well is he known by that community? matt: that is exactly the right word. trust and transparency are the two things that andy is going to need to focus on both internally and externally. and it's really interesting to
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look at these two new corporate principles that were put out just last week, and you see the words empathy and the one that is employee focused and you see the one humble and externally focused. i think those are very intentional choices of words. andy is a person i think people find it is easy to trust, he's got a set of attributes that can combine a genuine authenticity with very high expectations. now he's going to have to extend that into a much broader set of areas, in addition to the one that he built, which is aws, but into all these other parts of the business. to your point, a lot of external arguments as well. caroline: what other cylinders can he fire up? aws has been powering the growth story for amazon, but now they are ever expanding the area of e-commerce, looking at fashion and other parts. where do you think amazon really goes? it's not always tried straight and true. they went into hardware and that
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does not always pay the dividends. matt: they have had successes in hardware like kindle, and then things like the fire phone that did not work at all. but rather than stopping there they continued on and invented the echo and invented the echo in the alexa ecosystem. but i think they are very comfortable with pioneering and innovating and trying new things, then trying to learn from the things that don't work rather than give up. here's a good example, health care. i think that is an area of massive opportunity for amazon. you saw just today that they announced an at-home $40 kit for doing covid testing. that is just one of many examples, but it wasn't but a couple of years ago when they had this unsuccessful venture that they were trying to do with warren buffett and berkshire hathaway along with jp morgan. yet, i think that in the health care area, whether it's in things like this testing service that they just launched, or their own prescription drug
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offering that they have, and some of the other things they are working on for employees, and now people outside of the employee base of amazon, there is a lot of opportunity to reinvent in the area of health care. that's the high ones on the list. caroline: do you want to see them do m&a, or is it more about organic growth? matt: i think it's usually a combination. i do think andy has historically been pretty frugal. i think the company has been overall, but he has been comparatively frugal. you can't really think of any major examples of acquisitions within aws. it will be interesting to see how that translates. i think they try to keep an open mind. there have been times -- whole foods, they spent almost $15 billion. food pack was a young company
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that they spilled a billion dollars on, investing and buying that company. i think they will keep an open mind on acquisitions. the interesting thing when you come back to aws is, what are they going to do with the application model? when you think of aws in terms of things that they have built themselves, it's mostly at the infrastructure and enabling technologies level. they don't really have a lot of big successes. there are a few small examples within the application layer, and that's where microsoft, google, even salesforce are both competitors, and in some ways collaborators. then you ask the question, is that going to be in area where they partner with companies out there that complement them, like a salesforce, which they just announced a partnership with? or will they have to buy some companies to build up their application stack? caroline: we know any acquisition they do make will be under regulatory scrutiny. i am interested, to finish it
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off, your knowledge of the characters involved in your knowledge of the culture that has been brought to amazon. how does that continue to iterate? matt: there has always been a focus on the customer perks. people say that and that amazon they live it. that is going to stay and will strengthen under andy's leadership. i do think going back to these words like empathy and the humble, i might add authenticity, the output of that, of earning trust, how does it manifest itself in a deeper way with employees, with the external parties, whether the government or media or others, and with other partners. i have this concept of how do you build a sustainable ecosystem? amazon is a sustainable ecosystem company. i think some folks would say they have not done it very sustainably, in other words,
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they have taken too much from the ecosystem versus building out an ecosystem that could have an effect that is continuously sustainable and a win-win-win. that will be an operational challenge that andy and his team's face. caroline: we thank you so much. he was in on the amazon investment train very early on. school may be out for the summer, but this company is looking to make the process more accessible for students. we speak with the ceo next.÷ the apple edged closer to a record high as eight gained for a sixth straight session. jp morgan analysts saying it's time to buy again. apple hit a record high, $143 in january. this is bloomberg. ♪
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>> we've gotten a positive reaction so far. so we are hoping if it's another eight months, it could be longer, but things are going well. at&t teams are working hard, our team is working hard. very excited for these two companies to be together. we have a strategy that we've developed, we will see how hbo max does, how we do at discovery plus and we will see if we can come up with something, some best practice. caroline: discovery ceo david zaslav giving some insight into the pending measure. stay with bloomberg for continued coverage of the wheeling and dealing at sun valley. ed ludlow is all over it. let's talk about education.
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with many children learning remotely, extra help for those struggling with change, there has been a huge demand. tutoring is helping every student reach their potential at no cost to the student. joining us now, phil cutler, who's been raising money for the company and out looking to wheel and deal with the actual school districts. talk to us about how your business model is different than the rest. >> thank you for having me on here today. for sure, our approach to tutoring is very different than the other companies that exist. we go directly to the school districts, partner with them, and that allows every student within their schools to get access to academic support. traditionally, a lot of that support has been reserved for wealthier families. with us, we partner with the school district to allow every
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student that access. caroline: there are you finding demand coming from? you are based in montreal. is your presence in north america, largely? phil: our customers are almost exclusively in the u.s. we have a strong presence in the coast of california. definitely the largest for us now. we work with over 100 school districts coast-to-coast. caroline: it's interesting that it's california school districts. do you think we will associate technology with california, is there an element to see more school districts willing to embrace the move towards technology, or is everyone now post-covid? phil: i would have had a different answer for you a couple years ago, but right now we are seeing everybody open to it. the last year has been educational for our system. the piece has been highlighted by the fact that students have been remote, back in school. there is so much change and it identified the fact that there are a lot of schools that did not have that support. in the past, california, technology, california has a lot of synonymousness there, i think we are seeing paper being something that's applicable to everyone in the country. it has been crazy to watch this over the last year.
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caroline: how does post-covid help or hinder? to a certain extent, i feel like people will never want to have their children on zoom again. it was all too much, too fast, too big. how much will we get a balance of technology within the education process? phil: when you look at what was happening pre-covid to today, pre-covid, 60% of school districts were one to one devices. computer, laptop, whatever it was. i the time students returned to school in august of september, that number had risen to 95%. billions of dollars were invested in hardware. schools will ask students to hand in their laptops. this is the beginning of a trend. we are starting to see that evolution happened and it's happening rapidly.
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caroline: rapid growth in companies, paper, all of them with slightly different business models. i'm interested to know what makes yours different from another company that might come along and want to service school districts? phil: the space is a moment. -- the space is having a moment. we have seen dual lingo instructors filing their s ones. there is a lot of movements that have been venture backed and may not have necessarily had the exit velocity that you would've typically seen in other areas. we are seeing that in education, which is exciting. our particular model, by partnering with the school
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districts it is an equity play for them. a lot of the businesses you mentioned they are going directly to the consumers. and with the partnering of schools and the individual level, not the school district. the district level is making sure every student within that community is supported by the tutoring that we provide. this is something that comes back to the notion of equity. caroline: one thing you are going to announce, something you are going to develop? one thing you're going to scale? phil: there is a lot we have to be focusing on right now. i think for us one of the exciting things that we launched today is a summer offering for students to be able to participate in enriching summer experiences. it's all virtual, but for a lot of our customers, the school districts don't have a ton of resources available to their communities during the summer. just giving students the ability to learn something to stimulate their minds during the summer months. it's free of charge to all those families.
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it's an investment by the district into their communities. we are excited about that. caroline: paper ceo phil cutler. that does it for this edition of "bloomberg technology." tune in tomorrow when we are joined by the cofounder and ceo of online videos platform. i am caroline hyde. this is bloomberg. ♪ (announcer) back pain hurts,
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