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00:00GETS PEOPLE EXCITED AS THE OTHER 25%. THEY HAVE VARIOUS MARKETING SERVICES AND SOFTWARE AND THAT'S WERE THE TECH GUYS ARE GETTING BEHIND HIS DEAL AT A LOWER LEVEL. WE WILL SEE WHAT HAPPENS. EMILY: I SPOKE TO THE CFO OF SQUARE AND WE WILL AIR THAT ON "BLOOMBERG WEST" ABOUT THE OTHER BUSINESSES. SHE SAYS SQUARE CAPITAL IS DOING QUITE WELL. SHE SEES THAT BUSINESS IS SOMETHING THAT CAN CONTRIBUTE SIGNIFICANTLY TO THE BOTTOM LINE BUT IT WILL TAKE SOME TIME TO ALIX: WOULD YOU AGREE? >> I DO AND PART OF THE QUESTION OF HOW QUICKLY IT WILL GROW IS WHY THE DEAL IS PRICED AT NINE DOLLARS. THERE IS THE ELEMENT OF WALL STREET FOR SILICON VALLEY WHERE SILICON VALLEY IS FOCUSED ON HEADLINE VALUATION WALL STREET SAYS SHOW ME THE MONEY. WHAT YOU SEE IS WALL STREET WANTING TO SEE THE PROFITABILITY. THEY HAVE SEEN SQUARE HAS RAISED $600 MILLION PRIVATELY. THEY SAY NOW LET'S DO IT. EMILY: THEY SAY SQUARE HAS A LOCK DOWN ON THE SMALL BUSINESS MARKET? I ZEROED IN ON INTERNATIONAL GROWTH AND WHAT COUNTRIES THEY ARE MOST FOCUSED ON. >> THE UNITED STATES ALONE, THERE ARE 20 MILLION SMALL BUSINESSES THAT DON'T ACCEPT CREDIT CARDS. IT WOULD JUST FOCUS ON THE U.S., IT IS MASSIVE BUT THERE ARE 85 MILLION SMALL BUSINESSES AROUND THE WORLD. EMILY: SO ANY COUNTRIES IN PARTICULAR? >> WE HAVE A PILOT IN AUSTRALIA THAT WE ARE EXCITED ABOUT AND WILL CONTINUE TO LOOK FOR THE RIGHT MARKET AT THE RIGHT TIME. EMILY: WE DID NOT KNOW ABOUT THE AUSTRALIAN THING. THAT IS NEWS AND THAT'S A TOUGH MARKET WERE CREDIT CARD RATES ARE HIGH. I WONDER HOW OPTIMISTIC HE WILL BE ABOUT AN INTERNATIONAL SQUARE. >> INTERNATIONAL GROWTH IS SOMETHING PEOPLE GET EXCITED ABOUT. PAYMENT IS A RELATIVELY MATURE BUSINESS. THE REAL SQUARE GROWTH POTENTIAL IS IN OTHER BUSINESSES LIKE SQUARE CAPITAL. ALIX: WE HAVE ALSO SEEN THE PRIVATE MARKET GET INVOLVED BEFORE THEY GO PUBLIC LIKE FIDELITY HAD TO WRITE DOWN THEIR INVESTMENT UNSNAPPED CHAT. -- ON SNAP CHAT. >> I DON'T THINK AN OUTFIT LIKE FIDELITY HAS ANY BUSINESS BEING IN THIS SPACE, TO BE QUITE HONEST. I DON'T THINK THEY KNOW HOW TO PLAY THE PRICING GAME AND WHEN YOU GET THESE PUBLIC COMPANIES INVESTED IN PRIVATE SPACES, YOU'RE ASKING FOR TROUBLE. SCARLET: TRADITIONAL MUTUAL FUNDS SHOULD NOT LOOK FOR INVESTMENT, DO YOU AGREE? >> I DON'T. PRIVATE COMPANIES ARE GROWING MUCH FASTER, MUCH LARGER IN THE PRIVATE MARKET. YOU SEE THE'S DIFFERENT INVESTMENT CLASSES LIKE HEDGE FUNDS AND MUTUAL FUNDS TRYING TO GET EXPOSURE TO GROWTH AND THEY NEED TO INVEST. WHAT'S HAPPENING NOW IS THAT TRADITIONALLY IT WAS VENTURE CAPITAL FUNDS THAT MARKED UP THERE PORTFOLIOS UP OR DOWN, ONCE THE QUARTER KEPT THE METRICS TIGHT, YOU HAVE HEDGE FUNDS AND MUTUAL FUNDS STEPPING IN. ALL OF A SUDDEN, THE WORLD SAYS IT'S WORTH $16 BILLION AND FIDELITY STEPS IN AND SAVES WORTH LESS. THE TWO SIDES ARE TRYING TO WORK TOGETHER TO FIGURE THINGS OUT. I THINK THE WAY THE SQUARE DEAL IS TRADING, BOTH SIDES REALIZE THEY NEED TO COMPROMISE. EMILY: THEY NEED TO DO THEIR HOMEWORK AND SOME OF THEM ARE BUT THERE IS DESPERATION TO GET THESE HOT NAMES WHETHER IT IS SQUARE OR SNAP CHAT. THERE MAY NOT BE AS MUCH TRANSPARENCY AS YOU WOULD GET IN PUBLIC MARKETS. ALIX: THIS IS A LATE STAGE INVESTMENT. THE YELLOW LINE IS THE LATE STAGE INVESTING. IF YOU ARE AN INVESTOR AND YOU WANT TO INVEST IN PRIVATE COMPANIES, WHAT DO YOU DO WHEN YOU SEE SQUARE GO PUBLIC FOR LESS THAN THE PRIVATE VALUATION? IT'S ACTUALLY DOING PRETTY WELL IN THE FIRST DAY. >> I THINK NEXT YEAR WILL BE FASCINATING. THESE UNICORN COMPANIES WORTH OVER $1 BILLION, THERE ARE ABOUT 150 OF THEM ESTIMATED TO BE $500 BILLION. THEY MIGHT HAVE THOUGHT IT WAS NOT COOL TO GO PUBLIC BUT $500 BILLION IN VALUATION, SOME OF THESE GUYS WILL GO OUT OF BUSINESS AND SOME WILL STAY PRIVATE AND SOME WILL GO PUBLIC. WATCHING THAT DYNAMIC PLAY OUT IN THE NEXT YEAR OR TWO WILL BE INTERESTING. SCARLET: WHAT IS YOUR ASSESSMENT OF MATCH? >> WE RATE ALL COMPANIES BASED ON THE FUNDAMENTALS. MATCH SCORED LOWER THAN SQUARE. WE WERE CONCERNED ABOUT MATCH AND THE MANAGEMENT. JACK IN THE INTERVIEW IS A CHARISMATIC GUY. THEY HAVE A GREAT TEAM. THE MANAGEMENT OF MATCH HAS BARRY DILLER BUT THEY ARE BEING SPUN AWAY FROM THEM AND THEY ARE JUST A HODGEPODGE OF DIFFERENT DATING APPS WITH VARIOUS CEOS. OUR FRIEND FROM TINDER GOT IN TROUBLE YESTERDAY. SCARLET: IS THAT A LIABILITY NOW? >> YEAH. EMILY: IT WAS A LITTLE UNPROFESSIONAL. HOW CAN A PERSON WHO IS ABOUT TO BE PART OF A PUBLIC COMPANY SAY THINGS LIKE THAT? ALIX: HOW CAN WE PRAISE JACK DORSEY AND DISTANCE HIM AFTER THAT FOR NOT BEING ABLE TO DO IT. IS THAT FAIR? EMILY: JACK DORSEY JUST GOT BACK TO TWITTER, TO BE FAIR. ALIX: SOME SAY HE WILL NOT BE ABLE TO DO AND IS NOT THE RIGHT MAN FOR THE JOB AND THAT WAS THE RHETORIC AND NOW IT SQUARE, WE SAY HE IS AWESOME. >> I THINK JACK IS DONE A GOOD JOB IT SQUARE SURROUNDING HIMSELF WITH SOLID EXECUTIVES. SARAH FRIER DID A MAJORITY OF THE ROADSHOW. IT MAKES YOU WONDER IF JACK WILL STEP DOWN AND LET A MORE EXPERIENCED PERSON STEP IN. SCARLET: I WANT TO GO BACK WITH THE TIMDER CEO SAID. EMILY: THEY CANNOT BE REPEATED ON TELEVISION. HE IS ADDICTED TO TINDER HIS OWN SEX LIFE AND GAVE DETAILS THAT YOU DON'T WANT TO READ ABOUT AND A PUBLIC COMPANY. SCARLET: IT GOT ATTENTION BUT PROBABLY NOT THE RIGHT KIND. ALIX: IT IS TINDER. EMILY: IT WAS NOT FAMILY-FRIENDLY. ALIX: THANK YOU BOTH SO MUCH. SCARLET: COMING UP IN THE NEXT

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