Steve Case Maps the Tech Landscape

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

March 10 (Bloomberg) -- Bloomberg Television's “Lunch Money” Host Adam Johnson reports on an interview “Bloomberg West” Host Emily Chang had with Revolution Co-Founder and CEO Steve Case. (Source: Bloomberg)

Sxsw including aol founder steve case.

Emily chang caught up with him and asked about the facebook-whatsapp deal.

Facebook was giving 10% of their stock to acquire whatsapp.

It was not all cash.

They are saying having this is valuable and will give us 10% of our company.

We do not want it to be in somebody else's or bit like google and we do not want it is a defensive move.

It is a company that has active users adding one million a day.

As they try to compete on a broader scale there is significant revenue opportunity.

Will that be worth $19 billion, whether that becomes a good acquisition, it will take five years to figure out.

But i understand the facebook logic.

You have gone through big m&a with aol-time warner.

What of the big challenges committee?

The model has shifted in the last 10 years.

The model with aol-time warner was how do you manage them in integrative way.

Microsoft acquiring companies in the 1980's and 1990's required people to move to seattle said it would be in one place.

The model that is emerging with facebook and instagram or amazon buying zappa was or google buying youtube is to buy these businesses and still keep them reasonably independent and reasonably autonomous so they will keep the entrepreneurial zeal and keeping the core team together.

If you try to push them together you will lose some of those people and some of that innovation.

I just interviewed eric schmidt of google.

He had the idea that the four horsemen are facebook, apple, google, amazon, that that is not going to change.

What do you think?

It depends on the time frame.

They are great companies.

Calling them the four horsemen is fair.

Eric is very smart.

You naturally, things will shift.

One of those companies will make a mistake and, or, some company will emerge.

Ever since sxsw became a tech gathering, austin became a hub for high tech.

Any other places to watch out for?

The washington dc area, where i have lived for 30 years.

It is where my firm is based.

A very vibrant market.

All kinds of interesting companies.

The education and health care space.

D.c. is on the rise.

More broadly, the regions around the country.

They are starting to show momentum.

It is easier and cheaper to start companies.

You can decide where to start a company as opposed to feeling you have to move to san francisco or new york.

It is a trend that will develop over the next decade.

The rise of the rest.

How is being based in d.c. different than if you were on sand hill road?

Silicon valley is a great ecosystem.

It is the best in the country and the world.

There are great companies and great people and great investors there.

It is sort of like one pond everybody is fishing in.

We are trying to focus on other ponds with less people and less investors.

But still are developing in interesting ways.

In austin, we made an investment in a company that is going like crazy.

Inr rural north carolina, a lot of companies in the d.c. version.

It is different.

There are opportunities anywhere.

We want to back entrepreneurs with big ideas wherever they happen to be.

Our bias is to invest ease of the mississippi.

We think there is opportunity there and there is less venture-capital focus on those markets.

A little off the beaten track.

That creates opportunities for us.

Speaking of valuations, whatsapp, $19 billion.

Pinterest, 3.8 billion dollars, makes no revenue.

Twitter has a thirtysomething billion dollar market cap and does not make a profit.

How fair are those numbers?

The violations are healthy.

Parties all you something when they aren't growing like -- hard to value something when they are growing like crazy and you don't know what they're going to look like five years down the road.

Sometimes you guess right, sometimes you guess wrong.

The valuations are pretty rich.

I do not think -- i know there is concern about a bubble.

I do not think it is broad-based.

There are a number of companies that are very healthily value.

Some might be overvalued.

There are a lot of companies that are fairly valued and many companies that are undervalued.

You cannot take it with a broad brush.

You have to look at the specific situation.

It will play out over time.

From talk of one bubble to

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