Tinder's Global Ambitions: Money Moves (07/26)

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

July 26 (Bloomberg) -- "Money Moves" brings insight to investors looking for alternatives Deirdre Bolton talks to the professionals in hedge funds, private equity, venture capital, angel investing and real estate. Find out where they see opportunities. (Source: Bloomberg)

Headline number, and future spending, what it intends to reflect, because it's kind of based on the headlines.

Current spending and how people are feeling right now, there's a little bit of a loose relationship between your expectations for the future.

But it changes so rapidly that you can't really use this as any kind of guide to where the economy is going to be in the future.

Maybe that's why we didn't get more of a bump-up for instance in stocks from this report.

I thought we might get more because it was the only thing to trade on today.

But as alan greenspan once said we focus on what they do, not what they say.

Yes indeed.

Not doing, that's not what's reflected in today's report.

Thank you so much.

That's it for on the market d. we'll be back in 30 minutes.

Locum to "money moves pickup -- "money moves." today we will share all new details on the case as a seed -- s against sac capital.

We will also meet the founder of a new site for employee perks.

Find out how the company is doing, and what the founder says about his expansive plan.

All of that coming your way on "money moves." in the meantime, the newest development in the government's case against sac capital is approved wiretaps.

Su keenan has the latest from outside the attorney general's office.

What it says is that it will have to be shared.

Sac will soon have everything the government has.

It was in this case of the government attorneys told the judge that this evidence would be eliminating.

-- i lluminating.

What you have is a team of six attorneys showing up on behalf of sac capital.

They wanted to also make sure that the government would be sharing all of the statements that have been made by former and current sac employees paid that includes those who are now cooperating with the government.

The plea is one count of wire fraud, and several counts of other fraud.

They have entered a plea of not guilty for all four counts.

It has been alleged that they have been ignoring and/or rewarding insider trading.

Many in the legal community says this resets the statue of limitations.

They want the charges to go further against the company and its founder.

With more on the government's case against sac capital, we bring in our white-collar attorney with bernstein and leonard.

What does this do, what happens next?

It clearly demonstrates the strength of the government's case against sac.

Sac is completely cornered.

You have both actions that are going on right now, and in a washington dc action you have the founder and who is fighting for his congressional rights.

That'll be going on next month.

Then you have this this evidence that will be happening in the new york world court.

-- federal court.

They will have documents, cooperating witnesses, it will be hard for them to beat this.

Stephen: is really caught in a strategic quagmire right now, because on the one hand he is already -- has already indicated before the indictment was brought forward that his strategy would be that his day to day did not include reading all of his e-mails and, and he was not involved in all of that.

I do not think that will be a strong suit, because he is now in a quagmire of details.

There's still a chance, not a large one, but a chance of an individual indictment in the next couple of weeks.

We have seen a lot of institutional pulled money out.

You have some investors who still remain loyal.

Is it possible for the fund, for sac capital to continue to operate and stay open after the indictment?

Technically, yes.

As a practical matter, you have these allegations that really affects the hold of the cash in the company.

You have a civil forward your action that is really the basis to this criminal case and i think what the justice department is doing is to look at the compliance mirror.

The justice department understands that of that is going to be your defense of compliance, and you do not have a compliant culture in the countdown, you have a problem.

That has been a criticism, there was a compliant spider, and that was pretty much it.

-- binder, and that was pretty much it.

I agree, if you have an off- the-shelf compliance room, the justice department is smarter than that.

The last thing that comes to mind is enron and arthur anderson.

It is unusual, and it is a landmark case.

Both because it is very relatively rare to have a company indicted, rather than individuals, and it is also newsworthy because you have a unique construct case.

You have insider trading team with an alleged culture of noncompliance.

If you're applying this of the corporate level, i think this is really a case of historic dimensions.

They been looking to put the skis together for seven or eight years.

-- tjhhis case together for seven or eight years.

What does this mean for the hedge fund industry as a whole?

And goes back to the internal controls and compliance situation.

They look to see systemically what are your internal controls and operating procedures?

That is going to be a problem for sac in this case.

They need to look at what they policies and procedures are in place, and understand that they are looking at these defenses that sac is trying to assert, and it will be very the vehicle for them to do it.

Wall street needs to use this as part of a wake-up call to make sure that they do not have a shelf book that they can point to, but that they can really have a culture of compliance on the top down.

We thank you as always for lending us your time, and your expertise.

With more on steve:'s bait we bring in legal enterprise reporter patricia.

-- steve's fate, we bring in legal enterprise reporter patricia.

What will happen to the billions from the fund?

That remains to be seen.

That hedge fund has been indicted in making illegal insider trading, and billions of dollars in profit off of that.

Basically, the government's stance is going to be that they want to go after all tainted abs -- sassets.

This is about the co-mingling that you wrote about?

The theory is that if you have dirty money and you put in your bank account, and it comes out as "cel lean" money, and you pay your babysitter, and possibly a criminal to do some work for your, -- you, the argument is that the government can take all of your money in your big account -- bank account, as it is now tainted.

It is quite a cudgel the government is going after.

They are really going after the perks.

It is not his life, it is money that they are going after.

They are personally worth about $9 billion.

Can he go -- can the government go after his worth as a private art collector?

We have heard different theories.

It you make hundreds of millions of dollars, and you plug that i can come and you continue to make hundreds of millions of dollars, exponentially your exposure is that you could lose houses, your hard work -- a you r artwork, etc.

We have seen the government do this and other cases.

-- in other cases.

The made off -- m bernie made off -- mado ff example.

They made off with the entire estate.

We know this summer, he bought new property, he bought new high-profile art.

Is that just adding to it all?

It is hard to say.

Certainly, the government has been pretty overt in its investigation.

We understand that everything subjected to the firm got subpoenaed by a grand jury.

Cohen has been under scrutiny for quite some time.

We now hear that there were wiretaps of the hedge fund.

It is hard to believe that stephen cohen was not aware that the government was involved.

Thank you, produce death -- patricia, always glad to have you with us.

We will take a quick break, but when we come back we'll show you how kkr stat -- stacks up against its peers.

All that straight ahead on "money moves." ? welcome back to "money moves ." we are taking a look at kkr, the firm run by henry kravis.

Our yields reporter cristina alesci with us now.

What drove these losses?

A are getting half of their earnings from private equity.

The value of those assets rose just one percent compared to the five percent increase last year.

It really trailed peers as well.

Blackstone portfolio in private equity appreciated higher.

Also, in the long-term it is not a late -- great thread.

Assets have to keep appreciating for kkr to sell them down the line.

On the flip side, they had some really positive to reports today.

-- report today.

On fees alone, they met expectation.

-- expectations.

Hold that thought for a minute.

We want to bring you a quick headline here.

If you look at the intraday stock price on jcpenney, according to an investor letter, david einhorn is closing his short position on jcp.

I just want to bring you back quickly on what the results of kkr say about the industry as a whole.

They want to get outside of buyouts, specifically into real estate.

They are pushing this idea that they need to track outside capital for real estate investors.

This is a place where kkr is really behind.

Also, lots of questions about the ability to get into details -- into deal.

S. despite all of the questions about michael dell and silverlake, it all comes down to this.

Thank you so much.

When we come back, the founder and chief technology officer of joann's will be with us.

-- joanne's will be with us.

We will tell you what it means to you if you are a fan of call of duty or world of warcraft.

You will see the stock moving higher, with david einhorn the -- closing out the short position.

Our next guest company is taking on amazon and microsoft.

It is an infrastructure as a service company, with small businesses with cloud services.

Jason, thank you for joining us.

First and foremost, i want to know who you are competing with, pretty big companies, amazon and microsoft.

The biggest names in that sort of computing.

How are you doing this?

Our core joint is a system software company.

We work on device drivers, the underlying hardware.

We are effectively a highly vertically integrated software company.

Our main appeal to the market is our software.

The types of things we are scaling to go we do not buy outside storage, we do it ourselves.

We are one of the few companies in the world i can do that.

You do not want to get into a pricing war with either amazon or price war, correct?

Quick if they would like to, we can -- if they would like to, we can.

We build everything.

We clearly separate between customer workloads.

If you look at things like our mantis service.

That is a computing and data storage platform.

We currently operate that at the nano second.

-- nanosecond.

We have other products that work on hourly rates all the way up to multiyear contracts.

We look at what our customer workloads are, and taylor our services-- -- tailor our services and prices accordingly.

Quick if you're helping your customers to save money, how do you make your money?

We have a pretty traditional i.t. shop.

We have fundamentally, three pillars in our industry.

We store data, we compute the data, and we send and receive over a network.

We have slogans like "the network is the computer." it is where the computer and the network converge together, or word the network and data converge together.

The current trend that we are seeing, across big data, mobile, cloud, the big trend is the emergence of data and imputing where we were burst the way that everything is done.

We are designed like a big storage platform that you can run and compute on.

That allows us to reap internal economics in ways the other players are not doing.

I bet your customers appreciate the customized approach to this.

It is 26 minutes past the hour, we want to get you caught up on trade.

It is time for "on the markets." stocks are closing a little lower this morning -- afteronoon.

The dow was around 15500 and the nasdaq also down.

Markets still in the red, which means they are seeing earnings down.

This is even though the nasdaq managed again yesterday.

David einhorn has closed the short position on jcpenney.

That has topped the stock up about two percent.

-- popped the stock up .. this is "money moves," or refocus on innovative investments.

We want to bring you the latest.

A federal court in manhattan today said courts authorized wiretaps may be included.

They are not specifying whether or not they were directed at steve cohen.

Steve cohen was not in court today.

For more of our headlines they we will get you our newsroom and adam johnson.

Obama will not nominate a successor to ben bernake at least until september.

He says a group of democratic senators is urging him to replace him with janet yellen but he's not make his own decision.

China ordered more than 1400 companies in 1900 entries to cut production capacity in an effort to shift toward a slower and sustainable path toward economic growth.

And in brazil i could batista has lost his billionaire status.

Just year ago he was the eighth richest man and now he is worth $200 million.

The drop comes after he completed a debt structuring deal.

His fortune has also been under pressure since oil company missed output.

In coming up, we will be focusing on the summer blockbuster season if you can call it that.

Steven spielberg offered a prediction that the error of the big-budget summer movie is over.

We will be talking with the president of hollywood box office.com.

We look forward to seeing you then, deirdre.

I look forward to watching, adam johnson.

He give you a review of what is coming up at 3:00 p.m. eastern.

If you play call of duty or world of warcraft, you probably already know the company.

The group led by ceo agreed to buy back most of the vending stake in the company.

Cliff edwards covers the gaining community.

-- gaming community.

Today's announcement ends five years of uncertainty, what took everyone so long to work things out?

They first put the company up for sale and they could not find a buyer.

The videogame industry is not for the faint hearted.

Despite having very big buyers -- big titles.

World of warcraft, call of duty -- as far as trying to sell the stake, it seems like microsoft and disney past.

-- disney passed.

Does this mean there's no value in these titles?

The problem looking for potential suitors suitors is they cannot find a real fit.

Microsoft did not want to block out the potential sales these games have on the playstation three and the nintendo.

So they would've made an exclusive titles.

It would have been difficult.

And disney has a -- has had a poor track record of buying videogame companies.

There enough.

-- fair enough.

Cliff edwards with the latest.

Staples, comcast, just three of our next business partners.

They create an ecosystem of third-party resellers.

With me now from san francisco . you are creating markets that are hosted by other companies and then packaged under those brands.

Where is the added value?

Just like referencing video games like nintendo or xbox, you need a platform to distribute and cultivate the developers needs.

We make it easy for developers to get to stranded through a variety of different stores such as staples, deutsche telecom and comcast.

What type of apps can they turn around and offer?

They can offer any type of cloud app.

In general, cloud app economy expected to more than double in the next four years.

How much market share do you think you'll have of that?

We defined our space is cloud service brokerage.

It represents the single largest growth segment of the cloud.

Will take a very short piece of the $177 billion project a club market.

I know you are the leader in this field which makes me want to ask you how are you protecting your position inthis space?

It's being ahead of the technology curve and having great partners.

We have reached over 12 billion businesses over -- worldwide and continue to innovate here in san francisco.

How did you know the market was ready for this?

Most entrepreneurs tellis is all about timing.

-- most entrepreneurs tell us it is all about timing.

The biggest challenge is businesses do not know where to go to get caught software and now we are able to bring it to the masses by enabling them to buy from trusted providers they use already.

Ceo of app direct.

When we come back, the startup that is making multimillion dollar deals with fortune 500 companies.

It is called anyperk.

? welcome back to "money moves," on bloomberg television and streaming all day long on your tablet and phone and boomer.com.

-- bloomberg.com.

My next guest is leading when the silicon valleys fastest- growing the -- startups.

Access to fitness, travel and fashion.

They have a growing list of clients.

The founder and ceo, taro fukuyama joining me now from santa cisco.

-- san francisco.

Did you see it -- your idea was a good way to level the playing field a bit?

A lot of companies are hiring great talent and perks is a great way that there is a good environment.

I know you're signing some multimillion dollar deals with pretty big companies.

Grubhub is the latest one, how is the business community responding to what you're doing?

We got deals that customers like already and a lot of the clients and partners are happy to start a partnership.

What is the revenue model?

Do you reach out to the gyms, to the restaurants or any other perks you negotiate with and you go she on behalf of the larger company -- and then you negotiate on the behalf of the larger company?

We never pay any money to partners, so we promote perks to our clients so we can charge our clients per month.

I know you are a graduate to an accelerator, how do that help you focus and next to where you are now?

For the first few months we've not do anything but talk users and make sure we have a company that people want.

That is where we started and is a really good thing for us.

You have a long list of backers.

You have support from the investment community.

What is next for anyperk?

We make sure we deliver the best experience to our customers.

And we can grow.

We'll are growing 30% monthly so we focus on the growth.

Is it just silicon valley or overseas?

We have a lot of customers in san francisco, new york and l.a. we focus everywhere in the estate and after that we will focus overseas.

But right now we are 100% customer of the united states.

Part of your mission statement is for companies to remember that people are actually working for them and these things matter.

We believe perks are one of the most important part -- parts for companies.

Thank you very much, taro fukuyama, the anyperk founder and ceo.

We are back in just two minutes.

The ceo of the love companies with this next.

? if you're social life is in full swing, you might already know about the mobile dating at called tinder.

They already have 7.5 billion profile ratings.

The app just launched on android.

Sean rad with us now from los angeles.

We are having a ton of fun playing with this.

We have two phones as we could not only have -- we could have not as much one-on-one phone.

For people that do not know how does this work?

Tinder find out who in your area is interested -- interesting to, it's about finding people you are interested in.

Justin just found a match.

But i don't see any interest here come a just keep looking people -- just a looking people, is that the point?

The idea is to find people you have some sort of interest in.

And if that person shares the feeling then we connect you with them.

You get a match and you can talk to them on tinder.

There's nothing here on the first screen about books or movies that people might like, just a headshot.

When you dig further come a when you click on the person, it will show you the common friends you share and common interests that you both have.

Tinder is all about helping you connect with new people around you.

All we're doing is facilitating an an introduction between you and another person you have an interest in.

From there, it is up to you to have a conversation and get to know that person and take that relationship further.

Is a get out to your facebook network?

We use facebook as a way to learn about you.

And as a way to serve up relative recommendations.

I know you have global expansion plans, are they rolling out soon?

Tinder is already available in most countries.

We are rapidly expanding in countries such as the uk, canada , australia, france, and slowly expanding our footprint international.

Hasn't been -- has it been as well received over there as it has been here?

Absolutely, we are seeing a similar growth pattern as in the u.s. i know you launched a partnership this year with usa networks and the program.

What made you think to cultivate that relationship?

We just thought it was a great way to allow our audience to connect with various celebrities and characters of a show.

And to provide usa networks with a way to interact with their audience in a unique way.

The results were phenomenal.

We increased their viewership from their audience 18-35. is that the demographic you are working normally?

It is our core demographic between 18-35. currently you are not monetized, what is the plan?

There is a variety of ways that we can monetize tinder.

Right now we are focused on user growth.

When you're talking that meeting new people is a value proposition, it is something people are willing to pay for.

And there are various avenues we will explore in the future, but now we are focused on creating the best user experience and expanding our audience.

Are you considering raising money?

We are not raising money at the moment.

I will ask a just my team, -- justin, on my team.

Honey likes to have -- how many likes and you have?

I am playing around with it , on lawrence phone -- on lawrence phone yes come on me not so much.

Sean, what is been the most surprising element between the time you thought of this the time you launched it, and the time you're seeing this phenomenal growth?

I think we started the company because we noticed there was a lot of great ways to connect with people that you already know and have a relationship with an further connect with them using facebook and various platforms.

But meeting new people is generally a challenge.

There are some he social barriers involved there.

Tinder solves certain problems there.

? is 56 minutes past the hour so kind to check on the markets.

Julie hyman has the latest.

I can tell you that u.s. stocks are edging lower this afternoon.

Trading higher than we -- then when we spoke 30 minutes ago.

Overall, a little bit of a surprise markets are lower because we had positive numbers on consumer confidence this morning.

It seems they are disappointed in earnings results in particular the surprise loss in the second largest gold producer.

Also want to highlight jcpenney because we have news that david einhorn is pulling off his short position.

That's a little but of a pop off the back of that in jcpenney's stock.

Jcpenney still down 16% since the start of the year.

One name we cannot ignore, expedia now down 25% making it the worst performer in the s&p 500. this comes after they missed second quarter estimates.

But now, want to get into a little fixed income talk.

We were having an interesting conversation earlier and you were telling me that returns on the derivatives are now being junk bonds, what is going on?

A pretty interesting phenomenon, but if you had high yield, you made 4.5% more which is substantial.

It says investors are looking for a way to avoid that direct interest-rate exposure.

Credit derivatives are fewer credit exposure so that sites inflating you a little bit.

Isn't liquidity and big problem for derivatives?

People say that, but it turns out that the on the run index of the market instruments -- the benchmark indexes, they are one

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