How Will Government Shutdown Impact Tech?

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Oct. 1 (Bloomberg) -- Cory Johnson reports on the impact of the U.S. government shutdown on tech industries. He speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

So many people come industries, companies affected by this.

What are you seeing as a standout?

Some have a fundamental belief that government does not do anything, but if you work for a technology company, you know that they write some big checks and it will affect jobs.

Yes, websites, twitter accounts, maybe none more important than the panda bear cam.

Tragically, we will not see pictures of the panda bears.

This is really cute.

Fundamentally purdue close to worthless, but not so much the way that this is hitting technology companies.

A lot of companies could be hit in a crucial time here at the end of the third quarter, in the fourth quarter, late payments.

Companies like microsoft, google, cisco.

When a patent suit is not resolved [no audio] small business administration will also be shut down.

It is an increasing part of technology startups backed by sba loans.

Any surprising company that we may not expect?

The big government contractors have a lot of money at stake.

For quarter is big because of budget flushes.

Companies are trying to get that last bit of money for the end of the year.

You have big government contractors like saic, hewlett- packard,, harris, dell has one billion dollars in spending.

Some really big contracts out there.

Those are the companies that have the most at risk here in all technology because they rely so much on government contracts.

We are hearing from our sources familiar that the twitter ipo will not be impacted , that they will move at speed.

What is your read?

It is unclear who will be affected and how much.

The sec will not will -- look at initial filings.

Will they continue to work as much, how much of their support staff will be there to work on this?

We do not know the answer.

Twitter doesn't tell us much.

Aly baba might be an even bigger deal because we know they have not filed yet.

That is a big ipo in technology, resolving this, their inability to file could cause a big delay in the capital market plans to resolve the yahoo!

Situation and could hurt them.

Furthermore, there are a lot of ipos being planned right now, over 500 pending, so we can expect a lot of ipos going into the pipeline that will not happen in this fourth quarter.

If they go into next year they may not happen at all.

This is a really big deal for the ipo and start up world.

If they freeze filing this month and get pushed into november or december, we could be looking at next year suddenly.

Will the market support them, will these companies survive not going public?

What do you make of president obama earlier comparing the technical glitches involved with rolling out affordable health care and the website with demand for apple products and upgrading to ios.

It shows the pervasiveness of information technology in the consumer's fear and government.

Interesting that he would go on to talk about that and improving things.

Cory johnson, thank you.

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


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