>> live from pier 3 in san francisco, welcome to "bloomberg west" where we cover innovation, technology, and the future of business. i am cory johnson. bloom.eline is in full the latest 2 companies are grubhub and opower. they take aim. let's check in with top headlines. ,he so-called twitter of china a price range of its ipo. the company will sell 20 million shares.

and $19. between $17 the top end arrange a would've weibo at $380ue million. semantics will higher jpmorgan chase. activist shareholder, according to people familiar. it is a week after the security software fired the ceo, steve bennett. j. lo, jennifer lopez outbidding her former boyfriend, puff daddy, for fuse. buying it for 200 million dollars in cash and a 50% stake. torturely offered million dollars. it offers english television aimed at the spanish community.

our lead story. a wave of technology ip oh -- ipo's. .rubhub and opower they started trade. the ceo of a grubhub joined market makers. >> the reason we did it was for exposure to communicate to the world it is a massive marketplace. is $70 billion in the u.s. alone and only 3% as place online. >> it is not just a consumer-based grubhub. opower, hasrise, filed to go public. ipo's ineing a ton of technology. >> now, it feels like a good time. investors are really friendly to technology ipo's.

grubhub had a 40% pop today. , surprisingly this is the company that is profitable and they had sales of $137 million last year. this company looks a lot like opentable which is another company the market has shown an affinity for. else quite nothing like it. it is the notion that the market is as big as the restaurant market. they said they penetrated so many more cities. opentable went public in on a handful. >> the opportunity is to deliver anywhere. grubhub, menu pages, they are city phenomenon. people go to restaurants and eat food anywhere in the country and around the world. once they penetrate the suburbs and you are able to order your domino's and pizza hut to your

home, that is a potentially really big market and what investors are seeing. there is a question of valuation that shows the appetite if nothing else. we are talking about grubhub. sorry. 300 timesing about last year's earnings. yes, it is a profitable company. what does it tell us about where we are in the ipo market? >> you are right. that is optimistic valuation. billion -- 2 billion dollar market cap. for a company that is generating revenue, you get a sense of where you expect the numbers to go in the next couple of years. valuationme for the to catch up. when you compare that to what else in the technology world, $19 billion for what cap -- what'sapp.

investors are kind of having a little trouble weighing the risk versus reward. >> and what apple is getting paid primarily in a stock. all of these ipo's are getting money from investors. in terms of the numbers, you get a sense of the companies you talk to in the bay area, technology companies are at large -- they want to be fat. >> there thirst. the ipo market, not really a viable place maybe five years ago. they fell to the is so much venture capital money, let's stay private. that is going away. there is still so much private money available that you see with raising $270 million in a week. dealswere several more like that earlier in the last

month. the private market and the public markets are ready. >> interesting stuff. mark milian also bloomberg news. one of the copies going public is opower which revise cloud-based technology and help customers understand data more efficiently. shares rising and the public debut. joining us from the new york stock exchange is open our --opower's ceo. thingnot heard a single about the company on till reading the prospect of a couple of days the goals. a couple of days ago. you're helping to cut energy prices. all aroundutilities the globe to give them better information about energy use and improve customer satisfaction and help them retain companies in a competitive market. it helps them help their consumers save utility which is

counterintuitive that a large part of the industry. >> the construction of new power plants is so difficult for all sorts of environmental and legal reasons. is that sort of the ultimate pool for your service, the power companies want to increase the power available? >> that is a good way to think about it. what you have seen in the last , the entiree bulk electric and gas industry, these utilities counted on demand going up every year so that the build new power plants and make more money by getting a return. that is not an option anymore. nobody was the power play to build in that our city. as a look for new ways to profit, they have worked it out with the regulators as 30 states across the united states and the country, a mechanism when they invest in efficiency programs to help consumers like you and i save energy, they not only get

their money back on monday get a rate of return that is greater get a rateck, they of return that is greater. innovationme policy that transforms the way utilities can help people save energy at healthy environment by reducing emissions. >> you introduce your first product in a 2007. what technologically have to change your business and technology? >> a lot has changed. within the utility industry, one a major trend has been excited is smart meters have rolled out increasingly around the globe. the u.s., more than 1/3, that gives us an enormous amount of data to work with our utility clients to serve their customers. we have over 52 million consumers worth of energy data which we believe is the largest of its kind on the planet. for us technologically, and to

really be anends, impatient around virtualization and the cloud model for software analytics., big data we run as our core data platform. in these new open source technologies make it easier for us to extract really deep insights about customers than ever before. >> you guys are just ipo at goldman sachs. i wonder why you decided to go public now. first, going public is a fund raising event. we see this enormous opportunity in front of us. we were cash flow positive last year. >> with all of these companies that need to do it desperately, you do not really need to. >> that is the best time to go public when you really need to,

you will not get the value in the market. we are doing this is why we do not need to for this enormousee opportunity and we want to capture as much of the market as we can. we are barely penetrated in this market and we surfed for any of our 4 solutions, 30 million customers. than 5% penetrated in our markets. the exciting thing for us it is not like the consumers that we are not serving or being served by somebody else, it is a blank space. we are raising enough money to go as quickly as we can. i will lett, dan, you get out of there. he is the ceo of opower. hasosoft's newest phone technology. find out what is behind the name and why it might arrival apple. we shall see when "bloomberg

west," returns. ♪

>> welcome back to "bloomberg west," i am cory johnson. uses's latest acquisition speech recognition software. terms were not disclosed as is often the case with apple acquisitions. they are fending off another challenge from microsoft. microsoft around it's a new phone. 1.en does -- windows 8. it has a new personal assistant. it said it will give siri a run for her money. i caught up with him earlier and i asked him about this thing. and why the company decided to call it cortana. >> the engineering team when

they were looking at the different names, they were saying how should it be creative? what is the principle for the character? cortana was capable of figure out everything he needed to do as he battled the enemy. engineers literally thought of this in their offices. andwalked down the hall unlike what we usually do, we stuck with the name and did not name it microsoft her so assistant. -- microsoft personal assistant. cory, where is, good barbecue? have you standing there. the inherent conflict in the company, more revenue and also that final -- did you find that cortana leads to more searches or less? allows, it cortana

is hard to think about searches. if the flight on time? you want me to track it. i do not really know. what we do know is when people are able to trust a device like that when the backing of the entire your web and all the things inside the use the devices more often. reason why this could not -- [indiscernible] it is running on an ios now? >> we have to ask the engineering team. there's a lot that happens in the phone. if you have seen it yet, it is a snappy experience. a lot with the windows device. a lot of the core functionality, for example on being.com, if you have a cortana device, the things you are tracking, a news source, it will slow down. weitz. was stefan

the guys all comedy hits like "seinfeld" are taking on technology. we will take a look next. ♪

>> welcome back. series called

silicon valley, it starts this weekend with interesting guys ahead of the show. behinddge, the guy "beavis & butthead" and other classics. we caught up with him and his partner. check it out. timeu didn't spend some working -- did spend the time working in a silicon valley the early part of entering the business world. could you describe that experience to us? --yeah, i worked up here let's see in the late 1980's. part of the -- i guess. i do not know. it was not a great experience for me. midi material, out of -- comedy material for things like "office space."

andved in east palo alto work in a couple of different places. >> if you were starting out now with the way silicon valley is now, do you think you would've stayed a little longer? >> i think -- yeah. if i had been -- born 25 years later, i could be doing a startup kind of thing. it's a different kind of world. it is easier to get started smaller with less resources and money and get funded. so, it is a lower barrier to entry. that sort of thing. .> doing a lot of research speaking to venture capitalists. what is the take away, what did you learn? >> i think this is a show with the more research you do, the more you realized there is comedy wise to do with this area.

we came in with certain ideas. lesson to a store about this and we started asking key questions this,'s do a story about and we start asking key questions a you realized that is funnier and less to do a different storyline. you said if it happens, you might get into some of the bigger issues. people talk about starting a business and innovative products and all of the money you can make. in the valley, they talk by the end, cap at women and their and womenncome gap and their place. >> these are things that have come up since we started shooting like the google buses. it is kind of brand new. there is plenty of material out there. hopefully, we do another one. quit speaking of google, the chairman, eric schmidt am a has

a cameo in a party scene. we got feedback on how authentic it was. what did he tell you? >> it was very encouraging and you look around and said i have been to this party which was great affirmation for us. >> there are references to steve jobs. >> am i? >> would you have done it without making specific dimensions of certain people? -- specific mentions of certain people? mac'sh, everyone has got and pcs. it is everywhere. there are pretend companies too. they coexist in this. it just seemed right. >> it is supposed to be five. >> what did you think about your show that will make a difference?

>> we did an enormous amount of a research and try to get all the very subtle details as writers as we could. you feel like there is a new in ourhat -- nuance show. we wanted to make it as funny and enjoyable as possible. hopefully, that is why people watch it because not it is --dem -- technology going technologically correct. >> one of the central actors said you told him that you were looking for that character and that sort of penn gillete. rooms and have your animation. how specifically do you get on how somebody should look like? sometimes, i am very specific about how somebody should look like. sometimes youipt, just put a description.

you are just trying to paint a picture. i told tjn there and you do not have to change for this. he said, no, no, i will do it. tj got fat. i did not ask him to. [laughter] >> what has been experience been like for you guys? me.reat for hbo has been wonderful and supportive. >> amazingly supportive every step of the way where they were so did interested, it is a bomber cuts if it does not work, it is one of percent our fault. it is no way we can blame somebody else. >> that was mike judge and alec berg. more of "bloomberg west" after the break. ♪

you are watching "bloomberg west" where we focus on technology and the future of business. i am cory johnson. the rise in technology, san francisco is the highest gdp per capita in the nation. while the growth has been a big boost to the economy, it is not without controversy. income equality has reared its ugly head. the question is what does it mean? francisco grown to be a vibrant city and what are the lessons to be learned for the rest of the world? those issues are explored by two new reports.

one is a partner of a boston consulting group. they are joining the now. i found the study fascinating not just because of my interest in a technology but as a citizen of an urban area. what is able in technology given us? is sinceazing thing 2000 seven, san francisco has created more jobs and all but three states. we have this little city that has had a tremendous game in not only technology but non-tech. we see here the tech sector rather than creating jobs in the suburbs and silicon valley has been migrating to the city to areas of greater density, urban areas which are a tremendous example for other cities that to revise their

cities as well. >> why should anyone care about your study? why should anybody outside the bay area care? are two reasons. san francisco is a very large, story. tech success there are a lot of cities such as new york and other cities like boston and austin, texas that are traveling the same trajectory. to understand how to understand the challenges that a large community, what kind impact they have on the overall city is instructive. the other i and while there has been a lot depressed over the past several years or months -- overas been a lot of press the past several years are much about the bus, the view is more nuanced than read in the paper. >> one of the most interesting

things is during the dot com bubble, it was a focus on finance and and i seem to get meted out to the rest of society. spreads to other disciplines and types of jobs. >> there are two separate points. it turned out san francisco was very heavily dependent on the finance sector before. worst made the.com bust that there were losses in finance jobs. right now san francisco has a more balanced economy before -- between the sectors that is better set up for the future. you would not see this kind of bustlem that if the .com brought him. when i look at the san francisco economy, i do not see an economy with controversy

but is creating jobs around a wide swath. only two states that have done better than san dakota.o, one is north that has to lead to a lot of spending and other industries in north dakota. are there industries that spread the wealth more greatly than technology? new york city along similar lines looking at technology companies and the impact and one of the things of that is interesting about this rise in technology relevant to the .com aom is it is incorporating larger section of ajc -- and jason technologies. it touches retail -- and adjacent technologies. -- it touches retail. these skills are broader as well. >> it is a very important point because it has the potential to

spread jobs and growth across a broader area than people think. >> to the point, what are the havenment's actions that aided they grow faster? >> i not sure you wanted to grow fast in san francisco. they were very encouraged and welcomed to tech firms. they offered very targeted tax breaks. effective in encouraging the firms that were already thinking about moving to san francisco or staying there to do so. part of the abide lessons of new york and the san francisco, if the city's administration is that on attracting firms, is a very potent force for development. web say this in other places like new orleans, if you are prepared to a, do a little work

on tax break but more importantly, build your strategy around the tech company and build around it, you better bring in more growth. >> i was say about all of the controversy -- i am sorry to interrupt. there's been a great country and san francisco. one of the things you cited was how twitter was tron in it -- drawn into a blighted neighborhood. and they do not like the changes. one of the thing people like is diversity. when a rich, white people come in, they change by being there. is there guidance about how these companies cannot slap on top of these communities? >> in the work we did, we surveyed and did interviews of leading technology companies as surveys of the residents.

one of the things that was clearly -- that came out clearly in the residential survey was people felt very differently about the employees who work in a and lived in san and they felt differently about people who commuted every day. the area you choose somewhere that is easily reachable by the majority of your employees makes a difference. a slightlyn different way, bloomberg having its headquarters downtown was regarded favorably. having its headquarters downtown was regarded favorably. you should think about this as a -- tim's work shows it was not a rejection of tech jobs but more nuanced than that. and tim nolan.el very interesting. to sure to t -- be sure

tweet on the link. washington is pushing more technology in the classroom opportunities. that story is next. you can watch us streaming on apple tv. ♪

>> this is cory johnson. we continue to look at our special series called wiring the world. we talked about the growing business opportunity in the classroom. what about the opportunity itself, how big is and who is putting money behind it? ari levy joins me. why ed tech? >> for a very long time, education got a very small look

from technology. nobody wanted to sell to a school district. they are slow at moving. not a business you would see that is all of that attractive. now you have all of these devices that you never used to have so you can target consumer and parents. as you know, parents are more willing to spend money on their kids than themselves. if there's an cap your kid can -- is looking that -- an add your kid is looking at that could be held in the classroom, you will buy it. the application is therefore the student and the communication with the teacher that can be valuable on both end. disclosure, when i was an investor in stocks, in shorts , it was a company that came out

with great fanfare because it was focused on teaching software on macintosh computers. they did not update so they lost share and teachers were tired and stopped using it. that ability to sell seems like a great hurdle still. >> still a great hurdle. the business is focused on the enterprise sales. opportunity great but the business model has not been well worked out. the ones that have been worked out are the ones that are digital in a focus and they see the audience where a company would be selling in the same way online books are sold. theou can tap into it, opportunity is bigger. >> earlier, we were talking about ipo's. we had a company that went public this week. and another company focused on bringing textbooks into digital. both got a lot of backing from

wall street. >> what is interesting is that they do different things. help colleges get programs on line. the other is more of a content for campuses. they are folks are higher and. that is a market where you at least know there's a lot of money flowing through the system. trying to tap is not always easy, it can be difficult. students usually do not walk money.with a ton of if we see an ipo that is focus on high schools and middle schools, we know we got into a new environment. you veryvy, thank much. what about the students? , we than 600 students talked about how they use technology in the classroom. and we sat down with the surveymonkey's ceo.

which devices are most popular for students? >> laptop is the most popular device but we see people are using more mobile like tablets and smart phones. they are coming up second although individually, they are not that large. we are starting to see more. technology in the classroom is a slow to change. it is not going to be an overnight testing. >> one thing that was interesting is no device. >> i think -- >> why is that? >> schools cannot afford it. it. do not know how to use >> a lot of teachers pushing back on technology. what we are teaching is more basic than technology itself. companies -- [indiscernible] fact,hey want to do in provide education and teachers spoke with us quite a bit. they want to teach.

but there is protectionism around, i think -- i think at the core, it is probably an expense and sort of knowledge gap. it that i do with technology into my classroom to help my kids? it is easier to say i do not need or it will cost a lot of money or a particular teacher mike wanted but they do not have the discretionary fund. >> you did ask the question, how many of you inc. technology has helped technology -- and help the classroom? >> something there is a distracting quality. more people said it helped improve their grades in high school and college but also people felt it was a distraction. as a history of technology and education thomas thinking a lot about it, it is his vivid it is talked about a

classroom that had results. teachers will spend 11 minutes getting one booted off. i want to know how valid that is. >> yeah, it is also historical. --you look back 15 minutes 15 years ago, you could do it internet in the classroom and all of a sudden education would improve and that was not the case. there were false hopes. if you were a teacher, people told you it would change things before and it did not. i still think there is a lot of opportunity and we are seeing the very early stages of mobile and education. >> teachers are using the smart boards. high schoolards in and college are super popular. electronic clickers that respond to the teachers, it is very popular in universities. you can imagine it will end up on your mobile device. technology is going to change.

i think it's going to get it there, but it is slow. people thought it would increase cheating. there are positives and negatives and the survey about technology. as we learned in that >> we l a, the students were downloading things they were not supposed to so they took them back. what about software? >> it is still early. i think there is great software for elementary school. that is where a lot of the work gone.fort has not too much of great software for high school and college kids and he came through the survey. we saw that. down, it looked like it was older stuff. but that was david goldberg. dave goldberg. we talked to the former ceo of a marble. -- ceo of marvel.

stan lee. that is coming up next. ♪

>> welcome back. 'sptain america is marvel ninth movie. it is the biggest box office draw. was more this country million dollars. these are some the most popular franchises. in"the avengers" brought more than $600 million. we spoke to stan lee. we asked why it has such an enduring popularity. >> i remember when i was a kid, everybody wanted to see "king anded -- kong" "frankenstein."

people like things that are bigger than life. they did not make that many on till recently when the producers discovered these superheroes are just the most popular things ever with the public. >> sometimes ask the question, is there superhero fatigue? spiderman" amazing and a second one will be followed by the third one in 2016 and one in 2018. do you think at a certain point, moviegoers get fatigue? bond," iabout "james do not know how long it has been going on but it is still strong. i think it will be the same thing with marvel. >> let's compare spiderman and that is released by sony and isen to the many felt that being distributed by disney now.

the latest one being "captain american." some of the numbers suggest that films under disney are bringing in more bugs than others. if that is the case, what does it tell you? >> like anything else, if you have a plethora of characters. characters, some will be a little more popular than others. the amazing thing about these movies is every one of them seem to do a well. some may be bigger blockbusters than others. there seems to be as the moment a sensational demand for these type of movies. >> a lot of people are pointing to the next "avengers." nature andthe global possibly being the biggest film of all time. would that surprise you?

>> not at all. >> warner bros. has a/v -- the d.c. family of characters. it does not like they have generated as much at the box office. do you have any thoughts? wish my friend of bob crane was still with us. he created "batman." that batman was a big deal on tv and movies and we ask marvel had done nothing. i wish he was here so i could return the teasing. a character should be something that the reader or viewer cares about and maybe at marvel, we have put more effort into refined and that -- refining the characteristics of our heroes, maybe a little effort they have on the other side. us anderlichman joining

take a shot at bob came from the old days. what have you got? >> you mentioned that the great "business week story." 8 million is our number. marvel has more than 8000 characters. when a disney bought marvel, bob iger got a bunch of interns to start reading through the comics and add up all of the characters as you much of value. they kept counting and came up with these characters. >> that is the best interna job ever. job ever. every one of them. >> it highlighted the skepticism that some of the bigger characters. it looks like the deal has worked out pretty well for down. >> jon erlichman. a great interview with stanley. you can get the headlines at

bloomberg.com. we will see you on monday. ♪

>> welcome to "lunch money." i'm adam johnson. exclusive interview with the secretary. bank of america's brian monahan gets a title not usually associated with the thinking that -- a banking head. finally, the final four. forget the "we're going to show the love the engineering that makes it all possible.