GoPro Soars in Debut (6/26)

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

June 26 (Bloomberg) -- Full episode of "Bloomberg West." Guests: GoPro CEO Nick Woodman, Citizen Venture Capitalist Chief Economist Max Wolff, Stripe co-founder John Collison, Salesforce's Vivek Kundra, Code2040's Laura Weidman and former San Francisco 49ers COO Andy Dolich. (Source: Bloomberg)

? live from pier three in san francisco, welcome to "bloomberg west" where we cover innovation, technology, and the future of business.

Chinese e-commerce giant ali baba chooses the nyse over the nasdaq to list its ipo.

It will be one of the biggest ipo's in history.

A smooth sailing for go pro as shares soared 30% in their debut.

They got for hundred $27 million.

They have the plans beyond cameras.

They-- they got 427 million dollars.

Strive has eyes on china.

It is the first deal between a western payment company and ali pay.

It is the dominant payment for alibaba websites in china.

Ali baba has picked the new york stock exchange for its ipo.

It is the first major tech company to opt for the new york stock exchange instead of the nasdaq.

The nasdaq still facing problems from the facebook ipo.

They will be listed as baba.

Leslie, what is the buzz about this deal?

For a long time, they would be rumored to go for the new york stock exchange.

You saw both making many many trips over to china to pitch this company.

This is a hallmark deal for them.

They could raise as much as $26 billion.

As big as the biggest deal ever in the u.s.. this is a very competitive thing.

For the nyse, traditionally not the home of tech companies.

This is a big deal.

The listening fees are no joke.

That seems to be a big source of income.

This is a decent source of income but it is much more of a marketing event.

You saw the exchange shares move slightly on this news that not enough that the listing decision could make a big difference for their bottom line.

That said, it is a marketing thing.

It's twitter lists on the new york stock exchange, both of them did.

It is an easier sell for them.

That is why these companies fight to get these companies to list.

What else have we learned?

I suspect you probably have.

What they did is they told the exchanges and then an hour later, they fouled the update, which really just included the exchange and the ticker symbol.

We reported that they were looking at baba which is seen as good luck.

"ba" sounds like a symbol of wealth for the chinese people.

They were looking for a symbol that would provide them with good luck.

It is apparently good luck for the new york stock exchange.

Is there a sense that things will slow down before this ipo?

It is a monster for the markets to choke down?

We are expecting it to be pretty quiet.

This is the last big week for ipo's. thank you very much.

For more on the ipo, i spoke with julie hyman and max wolf earlier today.

I started asking max my the ipo filing is so unique.

The appearance and the marketing has always been important to alibaba.

They make a lot of the money pushing ads to the platform.

Pretty importance to simplicity -- to the future.

It is a pretty major deal to be on the nyse.

Let me ask you about that.

In terms of the facebook adventure from what was almost two years ago, the new york stock exchange, it is surprising to see them getting so many technology listings.

And talking to people at of the choice of where to list, they really set in terms of the services that the two exchanges offer, there is not necessarily substantial differences.

It really does come down to reputation and status and where you want to live.

The nasdaq had historically been that tech place to live.

There is definitely something to be said for the safeco effect.

If they're looking for the place to list, perhaps that could be one of the elements that puts them over the edge towards that stock.

In terms of the business for alibaba, what kind of things really jumped out at you?

In terms of finishing up the miss, part of the reason we are seeing some in the big tech guys is because of how long company stay private in tech land and how big they are when they become public.

When guys are making it to the ipo's stage, they have been private four 8, 10, 15 years.

They are enormous with revenue streams.

What we will look for is that it keeps up their breakneck pace of growing both topline revenue and keeping the best in class margins which are high margins even for the fast space.

This is when we expect alibaba to become public in this ipo cover price valuation.

To the governments concerned concern you?

The spin, always calling him back to the show, trying to get to the fact that they are a cayman islands company, that it is not just a straight listing like you see with a u.s. company.

What do you think?

Obviously, it is a big deal.

The variable interest entity which has been used by a lot of the major chinese listings.

They have to do with the ability of foreign nationals to own chinese companies which they're not able to do.

We see some kind of fancy footwork.

I think that that is an issue that demands some kind of discount.

That has not been a problem in the past.

If it becomes a major problem, that will mean that the chinese government is having a radical change of course in terms of how it wants its it economy to interface.

I think it is an issue that deserves some attention.

Let me ask you, warren buffett has this great line, you can only tell who was swimming naked when the tide goes out.

Some people tend to not care about these issues.

Do you get a sense that people are concerned about this issue?

It doesn't seem like they are at the present time.

You think about the formula we have seen for recent tech ipo's. the appetite for social and internet.

This has been strong.

Pair that with the company that as far as we can tell, making a lot of money.

You have to imagine that the demand will be high for something like this and this seems to be borne out from what we're hearing from people that might invest in it.

We rarely talk about stocks because i don't really care about stocks.

I do care about the businesses.

As you mentioned, there is this prestige issue, the notion that it can translate into better business.

Is that good news for a chinese consumer business like alibaba?

They are interested in coming to the u.s. and before it really rolls out its e-commerce platform, it will roll out the consciousness of the name.

They want to be seen as legitimate.

Senior management and thinkers are well aware that there are some particular fears attached to chinese names and to the variable interest entities.

Having the most white glove experience and getting the best name positioning is quite reasonably a major concern for all chinese firms.

A great question.

I have to agree with you.

Thank you very much.

We will be talking about go pro.

They went public with a big ipo today.

This is extreme in many ways.

We will talk about that next.

Welcome back to joseph dewolf "bloomberg west." go pro users, known for those crazy wearable cameras.

Surfing, handwriting, motorcross, shark swimming, you name it.

They're getting quite a rush.

-- surfing, hand gliding, motorcross.

They're using the proceeds to pay back some debt and possibly make some acquisitions.

This is part of their big fish into become a media company.

They have 500 million views on youtube alone.

They expect to start collecting ad revenue for partnerships.

The founder and ceo spoke with matt miller and stephanie ruhle.

We think of ourselves of being in the content enabling business because we recognize when our customers capture and share compelling content and they tag, title describe their content as gopro, they are driving our products.

To compete with gopro, you have to have millions people giving you credit for it and that is why our competitors have not made any inroads.

How would you monetize this content?

I love watching the videos, i don't pay anything for it.

When he asked somebody, hey, gopro, they usually say, oh, the amazing videos that everybody is sharing.

They think of gopro as a consumer product company, a hardware company second.

We have a global audience that is engaged.

When they see our logo head and the video began, they know they are about to see something interesting so they pay attention.

By definition, that is the job of a media company, to engage in body is so that then you can monetize that engagement.

It is not something that we started doing but it is an opportunity for us.

Where you monetize it?

In advertising?

Being in the content enablement business.

You are able to shepherd the lifecycle the video.

The monetize at first by selling a capture device.

Then, if we have content creation tools and services, we might be able to monetize helping our customers create edits.

There is an opportunity to monetize the resulting programming.

We are able to aggregate the best of our customers content and redistributed on the channels you see today.

That is the founder and ceo of gopro.

We will talk to the chief economist at citizens.

He is one of the most impressive ceo's i have met.

What d.c. in the filing?

We have an exciting name.

There are some yellow flags.

We do like the company.

Seeing some insider selling is a bit of a flag.

Also, the kind of ceo that we have.

Maybe we'll have a little bit more fonts in the road when you get to the quarterly earnings driven universe of a public company.

We like the company.

We think the standalone consumer electronics is tricky.

We look at the valuations going through $4 billion in it has to be about monetizing that content.

Everyone plans to monetize their content.

It is easier said than done.

Competition important?

That has been the knock on the company.

Sony or someone also id.

Much but it hasn't happened.

We do see a lot of content and knockoffs.

They'd need to be the apple of the wearable camera.

The bigger competition, there might be a slight of hand.

I think this is the improvement on wearables, cases, the newer, tougher smartphone.

Getting people to buy something else.

This will be hard in a world the better wearables, more and more rugged smartphones with special casing.

Interesting that the margins, you say the apple of cameras.

The margins are terrific.

Or any business, but for consumer electronics common it is amazing.

They have come down for three years.

They have come down to a still highly elevated level.

A 35 level which is hard to build, hard to sustain.

Really, there is huge brand power but that is the most.

That is why they need to monetize that content.

Otherwise, there are low barriers to entry.

Apple is the exception not the rule.

This is a rough lake to swim in.

What do you make of the fact that sales on the year-over-year basis were down, although we saw double digits in every other quarter.

This is a high and purchase, so we will see and reduce the basis.

They do claim, they have made an explanation.

This is not a supply breakdown which highlights both their investment and their dependence on contract manufacturing.

You tend to believe they will have a catch up incremental increase as some of the stuff that broke down in the fulfillment pipeline as it works its way up the market.

You wonder if they kind of baked in the first quarter of a public company to look so great with a weak quarter going into the offering.

Always a good point.

This highlights some vulnerability when you're outsourcing about 75% of what you are doing.

Thank you.

The battle for market dominance in mobile payments is heating up.

Be back with latest mobile moves in the chinese market next.

The iphone has eaten into the ipod business, apple is not giving up on them.

Apple has cut the price on an ipod touch.

Apple is adding a rear facing camera to the ipod touch.

The revenue from the ipod has fallen quite a bit.

China post number one payment method is teaming up with show right to connect chinese buyers with stripe merchants.

The company processes payments for alibaba.

This is nearly a third of all he of alibaba's business.

We're are joined by john collison.

I have read this perspective and getting my head around this business is particularly tricky.

I don't understand this so well.

Can you coach me?

Yes, i think that alipay has had surprisingly little attention here.

Alipay is hundreds of millions of consumer accounts in china.

We make it easy for websites and mobile apps to accept payments.

Over the past 10 years, there is the emergence of companies like go pro, specific -- should description services like dropbox.

I'll be specialized payment needs and that is what stripe handles.

-- all need specialized payment needs.

Credit cards are pretty dominant.

I said that alipay is the dominant payment method in china.

It is not, paying with cash is the biggest way.

If you are a western market and you want to grow internationally, credit cards will only get you so far.

This is allowing western markets to grow internationally.

This is where merchants cannot only address the alien or so credit cardholders but also the alipay account holders.

But there are notions about the business to business deals.

But, is that a sustainable part of the business?

Click the big thing for us is the consumer business.

You have the rising middle class in china.

All of these consumers are mostly buying from chinese websites and there is demand their for western products.

If you look at something like gopro, they definitely want to sell into china but up till now, for any kind of u.s. merchant, that has been pretty hard.

Was a difficult doing this deal?

Leslie spent the last few months working on it.

One of the things we focused on is the product experience.

-- we spent the last few months working on it.

The experience changes on a mobile device.

One of the things was make it so that the whole transaction happens on the website or in the merchants app.

You are never taken out of that experience.

I thank you for your time.

Salesforce and philips partnering up to take a health care deal.

Details next on "bloomberg west." and overall down day for the markets.

They paired their earlier losses.

The s&p closing down by about 2.3 points.

Basically you had some choppy economic data.

Consumer spending was weaker than estimated.

You are watching bloomberg west.

Salesforce announce a new partnership with philips.

They bring together health care providers.

Tell me about this.

Thanks for having me here today.

What's so important about the partnership is that we are going after a part of the industry that needs innovation more than any other industry.

No kidding.

How many times you have to fill out the same forms.

Go back to the third time if they have the wrong stuff.

And think about what has happened the last 40 years.

The focus has been around taking paper records and turning them into electronic medical records.

What this partnership does is it is going to unleash a new shock of innovation into the industry.

So think about how do patients connect to their doctors and how do they connect to families?

It is no longer just about one individual.

It is about the community and how it comes together.

3.8 trillion just in the united states is spent on health care.

What we are steering -- seeing is forces that are changing it.

Countries are going bankrupt because of health care.

Whether it was the quantified self in assets from google, apple.

So specifically, have the changes in the health care law made this possible?

The big impact of the affordable care act is more of the funding is moving away from just the back office.

Now we are entering a post world where innovation is going to happen with the providers.

It gave a lot of funding for medical records.

Now what you do we do with that?

The focus is on outcomes.

It is no longer about the number of surgeries you are getting paid for or what medicine you are prescribing.

It is more about the outcome.

It is no good if you go to a hospital and you are back again for the same condition.

Those are the perverse incentives.

Now technology is at the heart of this transformation and salesforce.com, working with philips, when it comes to cat scans, mris, are coming together to advance this new platform that is going to enable developers and third parties to build game changing applications.

Does hit the make this -- hipa make this hard?

Whether you look at sutter health, aetna, the same with philips, they have been using our platform.

It is going to make sure, as part of the innovation, that it is consistent with the privacy requirements of this industry.

What makes it hard?

You are seeing for the first time the internet of things coming together.

Historically you did not have that.

Historically you had a huge focus on the back office.

All of the money went into emr.

It is not going to be the legacy vendors because of these advances in technology, you are going to be able to build applications that you could not.

One of the trends is that consumers have more access to high grade i.t. the stuff their phone can do is so much more powerful.

And that therefore a lot more things can be consumer driven.

Absolutely.

There are also advances in terms of where the focus of health care outcome and when you look at the technology we are talking about, they are no longer tied to the back office, emr universe.

With the quantified self, whether fitbit, were devices in your home, you can develop care what you could not before.

Thank you very much.

I appreciate it.

Facebook releases its diversity figures.

How does it compare to others?

We will tell the next.

Streaming on your tablet, phone, amazon fire, we've got it all.

? i am cory johnson.

This is "bloomberg west." weeks after eu ministers said people can be forgotten online, google received requests and it is going through them on a case-by-case basis.

Google is one of the tech giants that has released its diversity figures following a suit with facebook which released its figures for the first time.

Only 31% of the company's employees are female.

Nine percent are hispanic.

What is facebook doing to create more diversity, especially for a company that has announced such a desire?

Joining me now is -- nice to see you.

These numbers don't reflect -- i don't know if i expected anything different.

No one has made a big discussion as the ceo of facebook.

It is great to see them release the numbers.

It is nice to not have to speculate.

Certainly i don't think anybody is happy about where they are right now.

Turns out i am a straight white guy.

So i lose this conversation.

Why should people care?

What difference does it make?

There are all sorts of arguments around to diversity.

You want your creative to reflect the -- you want your product to reflect the users of the product.

Companies are not able to hire enough talent.

There is a huge demographic shift going on right now.

The year 2040 is one people of color will be the majority of the u.s. that is why you're in is called 2040. that is right.

That is a different workforce.

If companies can't figure out how to attract and retain workers from these backgrounds, they are not going to have enough people to higher.

I was talking to my friend the other day, he was saying the knowledge of the companies when they are hiring about where to higher, their notion, they don't even know.

They do not see harvard, stanford, yale, sometimes they are not interested.

It is true.

Companies are good at hiring an inefficient way when it comes to talent.

It is easy to go to the top 10 engine nearing schools.

If you also care about diversity, you have to broaden where you recruit.

When we go out and find students, we go all around the country to a lot of schools.

Of the 27 students we have, they come from 18 universities.

There is a real breadth of where we go.

I'm so bored with the conversation of we don't have enough minorities and women.

Duh, i know that.

The discussion often is not the products are not going to be as appealing.

You are limited in your product because -- you are limiting your product.

Absolutely.

It is a common thing entrepreneurs and developers scratch their own itch.

They see problems in their life and they go ahead and solve for those.

In order to solve the greatest number of problems for your consumers, you need to have people that are representative of the people using the product.

How are you paid?

A combination of philanthropic funding, the knight foundation gave us a grant.

It was lovely of them.

Because there is interest in the philanthropic community of seeing this problem solved.

It is also corporate sponsorship.

We help companies think through their diversity challenges, and our students pay for that privilege because they see this as an issue.

Laura weidman power, from code 2040, which i will never forget now.

The world cup has been a huge hit, but will the one-month tournament have a lasting effect?

We are going to discuss that next.

You can watch us on your tablet, phone, and on apple tv and amazon fire.

? welcome back to "bloomberg west." i am cory johnson.

Tv is an essential part of any man cave, of course.

Curved is the latest features companies are trying to push on consumers.

Sam grobart had one brought to his personal man cave to test it out and see if it is a homerun or another curveball.

The world cup is in full swing which means you have to have your essentials on watching the big games.

I've got mine.

Md, i like to call up the doctor, and a big old tv.

Go tv shopping today and you will encounter curved displays and 4k, or ultrahigh definition.

This tv from samsung has both.

Let's start with the curve.

As you can see, it has a slight bend.

Samsung and other makers will tell you it is about viewing angles and creating an immersive experience.

Mostly it is bunk.

Actually it can distort the image.

Why should that get in the way of the marketing efforts?

The other feature the tv has is 4k resolution which means it has twice as many pixels as the best tvs.

It should mean better image quality, and way up close it really does.

As you start to move away, it starts to matter less and less and then not at all.

Then there is the question of 4k content.

There is not that much of it.

This tv comes with a hard drive loaded with five movies and three documentaries.

You can't update the hard drive.

So i really hope you like watching"gi joe," "night at the museum," and "the counselor." and "smurs 2," but not "smurfs 1." most of us bought a tv the past few years.

The industry needs new reason to trade in our old sets for a few ones.

First they tried 1080p, and that works.

Then they tried to push refresh rates on us, which nobody understood.

And 3-d was a flop.

Curved displays are the next attempt to make us think of the tvs we own are obsolete, which is hard since they are great already.

What really matters is what is on.

This is my favorite program.

I am really worried about sam grobart's diet.

That was an awesome piece.

If you have one of those fancy tvs, you have probably been watching the world cup.

20 5 million americans watched the added states world cup match against portugal, the fifth highest sporting event.

Will it turn into long-term ratings for espn?

I'm joined by the former chief operating officer of the 49ers and is currently a partner.

This tournament, i watched the world cup, this seems to be really capturing people more than in the past.

Especially in this country.

The world cup is the ultimate party.

There are more butterflies in soccer stomachs than ever before.

Whether we have a long-term growth, the u.s. get out of this group with a record number of people watching in this game against germany and they will build as we move through the world cup if we advance.

One of my mentors for years was trying to get a big soccer magazine off the ground.

It seemed like the numbers were there, guys of my generation, and yet it never really took.

It has.

I happened to be involved in the soccer league, when the new york cosmos and pele spiked soccer interest.

It has taken 50 years.

We have seen slow growth.

This is a good business plan mls has.

They have shrunk the stadiums, they are selling out, they have created pockets of interest like the northwest, some of the east coast teams, and the asset appreciation of the franchise has increased.

It is starting to get serious.

Man u in the uk.

No, this is in new york.

The expansion franchise in new york city is a joint venture of man u and the yankees.

Seattle, you can't get a ticket.

Philadelphia.

You are involved in the nba and the grizzlies in memphis, i have been looking at the sacramento kings lately because of the new ownership group.

They have talked about the specific second tier cities that have a different metric involved in making the numbers work.

What are those?

Sacramento is not as tiny as people think.

It is in the 20's. places like new orleans, charlotte, minneapolis struggle.

The metrics are to own the region.

Own the northern california region, create a rivalry with the war years, whether san francisco, oakland, golden state, and their arena will be a major flash point.

Which will be built and have fans before golden state finishes its new place right around the corner.

I was thinking of portland, san antonio.

A huge city.

Give them credit, for many years that team drew sellout crowds at a high number and then they lost their way.

With the new kings ownership, having kevin johnson as the mayor, they've got everything moving in the right direction and they have recaptured the dna of sacramento.

They got the city, a municipal bond rating such at a low level.

Look at it, you're going to build a new face on piers 30 and 32 for $1 billion.

You are right.

And the real estate around it.

They have a guy who knows real estate.

It is retail development.

You see the giants in mission bay.

That is the model for quality civic involvement in sports.

I want to bring in jon erlichman for our bwest byte.

Jon?

It is related.

166%. a company manages what companies are saying about brands online.

After the first week of the world cup, the references to espn online had gone up by 166%. things like itunes, youtube, had gone down substantially.

The caveat is sometimes those are positive, sometimes when you are live stream is not working and you're trying to watch a game, they can be negative.

Andy, let me ask you, does that help soccer, is that changing things for the business?

Absolutely.

The investment in the sport has made over decades is coming, and be "bloomberg west" lucky charm of having us advance to the next round.

You're going to take the credit anyway.

It is a good day.

The ratings will increase.

It is good for soccer.

Andy dolich, appreciate your time.

You can get the a-list headlines on bloomberg.com, bloomberg radio, we will be there.

And we will see you tomorrow.

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change