>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover the global innovation and the future of business. i'm emily chang. marissa mayer is quizzed on that. we will also break down what she said and what it tells us about yahoo!'s business. and he is a billionaire who enjoy singing and even conducts weddings for his employees. how does jack ma, the founder of

alibaba and his personality impact the company? here is a check on the bloomberg headlines. tesla reports a $50 million loss. revenue was up 27%. it delivered more than 6400 models of the s sedan. deliverieshina bound have slow shipments in the current quarter. the stock is down in after-hours. from khan is retiring apple comm. she helped deal with the media. apple tells bloomberg west that katie has given her all in her 18 years. we are going to miss her. down on acracking so-called bloggers law.

they require any website with more than 3000 users to register with the government. bloggers also cannot remain anonymous and will be held accountable for the accuracy of their site. now to the lead story of the day -- marissa mayer talks all things yahoo! and a little bit of alibaba. among the hot button topics she covers is the yahoo! stake in and whether its acquisition spree is paying off. she could not talk specifically about alibaba, she gave a hint about what the company might do with its cash when she sells those cash in that appeal. cash in that ipo. of theave been stewards capitol today. we have sold part of our stake in ali baba.

we returned some of those row seats to shareholders. we did make some smart investment in the company in terms of building out talent and technology and platforms like tumblr. whoe turn to cory johnson is with me in the studio as well as paul sweeney in new york. she could not get very specific. you basically lead out every possible option. what do you make of the response? >> we were previewing her talk. i said to mark crumpton who is theoring the show that question of what is yahoo! comes up. questions a relevant for this company. it has over struggle between being very involved in search and being a technology company.

she handles that question artfully so. efferents a competitive set when it comes to subscriptions in the market. the alibaba state, she wouldn't talk exactly how she would spend that money. yahoo! to havere a clear method of what it is. >> paul, there are a lot of questions of what yahoo! is the bat -- about. the share price of alibaba, what do you think of it? >> many investors view yahoo! as a technology driven media company. real think about the opportunities and mercer mayer and the management team of what to do, we think the proceeds of this will be north of $10 billion. i think we will find is that they will do something similar

to what they did when they received proceeds. they will return a very big percentage to shareholders via a stock buyback or hats or a dividend and use the remainder that is something less than 50% for acquisitions. that are acquisitions in growth areas such as mobile or online video and social. there are lots of opportunities in front of them. >> i want to talk a little bit about mobile. huge priority. take a listen to what she had to say about mobile growth. >> it is certainly one of the biggest missed opportunities that i saw. there were very few people working on it. now we have hundreds of people working on it. we made big advances. is approximately doubling along every metric we have in terms of traffic revenues users.

we have unique users on mobile. >> twitter went crazy after that comment. there try to figure out exactly what numbers she had inside her head. there seem to be some questions. is this believable? >> there is a great antidote that she told. she basically said she ran into someone in the hallway and they said i working mobile. great. how big is your team? 30. another meeting with some of the hat 100 mobile engineers and she did not think with someone -- who said they had 100 mobile engineers and she do not think it was enough. she had a huge investment. we haven't seen all of the products we will eventually see out of the 500 engineers that has been hired in the course of less than two years. >> she has been hiring people

and cutting things here and there. she was asked a question by the founder of techcrunch about whether she has cut all of the dead weight. take a listen to her response. >> i think overall the company is doing much better at performing in a stronger way. the most surprising part of you who for me was how many tremendously good people were there and have eager they were to get back at building great products and bringing those services to market. >> paul, people who work at yahoo! feel energized now that marissa is on board. she has done a lot when it comes to the culture. when it comes to the product, there are still a lot of questions. what has she done? what is she going to do? >> that is right. at the least commish is brought back the cool factor to yahoo!

which it was clearly missing over the last several years. they have attracted a lot of talent. it has clearly been that she has really raised the profile of yahoo! and that is great long-term. deliverot been able to on products that will deliver revenue growth. we have not seen the company be able to consistently grow its revenue in line with where the industry is. haven't seen much growth out of yahoo!. thehas done a lot on acquisition side. she has done a lot of good things on the product site, but haven't seen it in the numbers yet. >> let me jump in there. we have seen one percent revenue growth. i missed all of these all oftions -- amidst these acquisitions, their growth is negative. , our editor at large, and paul sweeney.

thank you to you both. internetad, how did an search for chinese beer launch the largest chinese e-commerce company? ♪

>> welcome back to "bloomberg west." i am emily chang. companies opposing a new sec proposal that would create internet back links. toetter was sent commissioner saying that the bothsal might discriminate technically and financially against internet companies. changes this not affect the internet fairness policy. if every security software has

been held up as a standard in the industry. they realize what a million credit card numbers have been stolen, along with personal data on 70 million customers. down.stock is the ceo joins us in the studio now along with cory. you guys just reported earnings. obviously the stock is still down. is the market missing something? >> what happened with fireeye over the last six months or so is our business change pretty dramatically. we once were a bit of a product company now we have evolved in a cloud-based company in the form of sonic subscriptions. we have acquired a company and they have other types of subscription models. we have evolved a lot. as you saw from the earnings, we have beat the consensus and our

guidance. a lot of people are confused on what uses for the most orton. -- most important. we feel very strongly about the business. the analysts were wrong and not the company. [laughter] i'm very curious about growth rate. i went through the results and listen to the call. it seemed like the confusion was about what is growing organically? the revenue growth rate has slowed down considerably. it is still fantastic, and near where it was a year ago. what is going well and what isn't? >> one of the things that has occurred when you merge really big companies and he spent -- one of theion things we did easily integrated the sales force is quickly. fireeye salespeople could sell both products. it came -- became almost

organic. believed in this all organic thing. >> they were a private company. was our product subscription. it is the most important part of our business for the most part. it grew well over 100%. so, we have had a lot of high-end growth. having said that, i think the market expert asian is even more than that. all of the components are going over 100%. we have got to keep irking hard. we're doing well. so, so far, so good. >> what about a broader tech selloff? do you think it is environment or the top of the bubble? >> i think you're hitting on it more than anything. not only has it moved toward

profitability and more mature companies from these high-growth companies, we are also facing a time where we have a very large exploration of shares coming. you put the confluence together. we be confusion over the results. couple that with the lock of expiration and what it together with a tilt, we are getting some results. evaluation some high . from a product standpoint, what changes are you saying? say from two years ago to now. >> one of the reasons i came to mcafee, i was ceo of before. the company invented a virtual machine. this thing is really powerful. it handles tech heads in a different way. as a put these brutal machines in multiple places in architecture, we have gone from four products a year ago to now

over 20 products. a lot of the strategy has been to put where the tax come in and we try to respond. they can come in from anywhere. these hackers are very sophisticated. they are breaching all of these signatures are antivirus type models. we have had a brand-new technology to displace that. it isn't a market. even some were saying that it was dead and we have to move to a new model. i think at this accelerates -- theour software caught target breach, but target ignored it. is there anything more than fireeye could have done? anything to raise the red flag higher? >> i think you hit on something. with a lot of bridges. one product cannot solve everything. it is a combination of people that is really critical. if you do not have the right processes in place, when you do

see something blinking red, you probably will miss that window. you need to the right people looking at it. one of the big reasons we acquired a company because they ofe some the best responders service models, we believe people and product are critical. we even saw more growth from that area of the business. that is what it takes. >> really quick, more acquisitions? >> we have been doing little talk ins. -- tuck-ins. there a company called impulse. it is like a black box recorder like a flight recorder. the key is to understand what is going on. good question. >> dave dewalt of fireeye. thank you for joining us. we will have more of "bloomberg west" talking about facebook after this quick break. ♪\

>> welcome back to "bloomberg west." i am emily chang. facebook is looking to make better friends with small business owners. they are launching a program designed to keep businesses have a better use of the site for advertising. my guest is with me in the studio. you guys are launching basically refresh and you are going personally. how is this going to work? >> thank you for having me. great to be back. we are having a series of five small business events around the country. it will be great to get on the road and meet them in their community. camp forit like a boot a chance to get their businesses into shape whether you're

getting things started or your business is looking to add more expertise. we'll work to help them understand how they can grow their business, especially on mobile. they can grow and benefit their communities. >> what are you telling them? >> we're helping them to grow. what can i do to grow my business? how can i work on mobile? we think facebook is one of the best solutions for small businesses on the mobile device where the you're trying to reach when billion people or you are a small-business person who is not sitting behind a desktop computer when you're out on the go. small-business owners are looking for simple and effective solutions. >> how much can facebook really help a small business? it is a limited audience, right? >> there are 1 billion people on facebook. facebook could be in effect a place to grow their business. last month, we had 12 small businesses come to facebook.

we heard stories from them all around the country and all types of different industries about how facebook has helped them grow their business whether it was just getting off the ground or -- >> this undated inspiration to do these -- and this gave you the inspiration to do these boot camps. >> yeah. we didn't understand how many of them are teaching folks in their own local communities about facebook. there is a guy i have known for about two and a -- two years. he runs an entertainment center in dayton, ohio. usingnched his business facebook as is exclusive marketing channel. people started to come to him. can you teach us what you did on facebook? he started teaching classes at his facility. that became the inspiration for us. what do you as facebook get

out of this? >> are you expecting businesses to buy ads? >> we have learned a lot from small business owners. we look at a lot of the data. we are meeting people face-to-face and hearing how you can change their life. >> what is something you have learned? andhe whole facebook fit that is inspired by small business owners. we could help them grow. that would return to facebook as well and help us grow. we only get paid to get money when they are willing to invest in us. we will see our growth as well. >> you're doing this in partnership with several companies. i know jack and mark are friendly. how did this partnership come about? inspired byeally the small businesses we talk to. what are the types of things you need to grow? they talked about heymans and

legal information. those are the partners we sought and legalments information. those are the partners we sought out. >> what are the mistakes small businesses make when they try to use facebook? >> when they try to think of it as a social marketing solution as opposed to marketing solution, facebook is about helping you grow your business and achieve your objectives. that means getting people to come in through the door. people are focusing on likes. they focus on the wrong thing. maybe they put up a picture of her per diem happy or a dog when they're really trying to communicate who they are. marketings a real solution to help you achieve your objectives and not just the social marketing solution. >> all right. dan fevy, thank you. >> thanks, emily. richestma is the third man. is also known for the flare he

brings to his world. more about the man behind china's biggest e-commerce company next. ♪

>> this is "bloomberg west," where our focus is on technology and the future of business. i am emily chang. jack ma hasdema -- made billions. he also enjoys performing. take a listen. ♪ amazing. amazing. i believe that was for an alibaba celebration. how has his personality out push alibaba to the top? my guest joins me now in studio. he has known jack ma for many

years. cory here as well. back in the ma 90's. what was he like? >> just like that. he was singing. [laughter] he just has that wacky, larger-than-life image. he has got a powerful sense of something different both in chinese and in english. it is unique that he can communicate effectively in both. >> he has become one of the biggest technology companies in the world. >> when i met him, it was a small apartment with a number of toothbrushes in the apartment. they're basically living the apartment and working around the clock. there was a vision. was aboutore goldman to come in. why are they so interted in this company? it is really because of him.

he had a vision. he would talk in a very articulate way and you would feel that he was someone that was special. >> it seems to be a common thing in his life. >> has been an english teacher. he has always been interested in the u.s. and the world, which is not true for a lot of tech entrepreneurs in china. he was an educated here, but he traveled here early on and had some early experiences. i think few others have seen. >> what kind of experiences? >> he discovered there was nothing about china on the internet. he was determined to do something about it. the want to talk about incident where he spun off this part of the company without talking to softbank or two yahoo! he has said that he has been compared to [indiscernible] from tiananmen sqaure. what do you make of why he did

that and what it means about him as a leader? at theinvestors looking company, it is almost like buying a car. china is a rocky road. you need some good shock absorbers. there are lot of things happening in the chinese government. company is is the able to insulate you as much as possible from that. they had to do something to take ownership into private hands away from foreign leadership to protect the company. people have questioned whether that is actually the case. it seems the company will buy back in the future. but you seem to be something odd with that. they had to do this to continue the business, the ecosystem. what hiser responsibility is to investors. it is unusual where they have

bought back the shares and to admit to take the company private again. >> yes. the second offering a few well is very different -- if you will tom is very different to the first round. company.2b there was more hype driven by retail investors. >> in the hong kong listing, it was treated as a [indiscernible] here. >> exactly. rapidan a long and decline. the business behind it wasn't that interesting. the charisma of jack was something that had risen expectation. he is a much better business. >> how does he fit in with the other chinese tech titans like robyn lee of baidu? n cannot imagine robi singing in front of his entire

staff? >> he is a more soft-spoken guy. >> it would describe himself as a geek. jack is not a techie. he did not study overseas. he has his outreach connection. he didn't actually study overseas. he didn't study at a prestigious chinese organization either. he didn't have pedigree in terms of tech. >> i believe he failed the initial entrance exams. >> yeah. >> i recently interviewed robin lee and asked what a successful alibaba ipo would mean for china. take a listen. >> it is always good to see chinese companies to become more means moreif an ipo successful, i would be happy to see that. but chinese internet market is

already large. good companies come out every day. i'm more anxious for that changing dynamic of that market and what new opportunities came out from there. i will pay more attention to that. less attention about the gigantic companies going public. >> it is interesting. these guys are friends, but they are also fierce competitors, right? >> friends are friends means -- friends or frenemies, i'm not sure. [laughter] jack ma and pony ma, their businesses are becoming much more competitive with each other. the businesses are increasingly opposed. alibaba and baidu has no love lost between those companies. >> really? >> you have a vulcanization

between these two. >> interesting. their earlyribing days in the internet here it was a small group of people who kind of knew each other and had personal relationships. it was in the early 90's. it was a small group of people who tended to know each other and go off in their own directions. jack wasn't in the first batch. company thatther predated jack. buddy handy humor. he is a must like a court jester. -- but he had the humor. he is like a court jester. >> thank you for sharing your personal story with jack ma. great to have you on the show.

is planning to buy maker studios. how do they plan to leverage its premium content? that in more when we return. ♪

>> i am emily chang. this is "bloomberg west" on bloomberg television and streaming on your phone, tablet, and on bloomberg.com. disney. is a hit for sales were up 10%. they reported $7 billion. profits soaring to $1.9 billion. they also posted growth including film, cable networks, and theme parks. made headlines recently when disney said it would pay as much as $950 million for their online video company.disney made it a pitch to advertisers on what

its business is all about. and has been a very busy couple of weeks for them doing these presentations. there was hulu and aol and youtube and maker studios as well. my guest joins us now. good to see you. we last spoke to you when you were at yahoo!. what was the main message of what you guys were trying to hit home? there's a lot of stuff that falls under the maker banner. >> great to be here and talk to you again. my voice is a little shot from last night. we had a great time on stage telling the world our brand story or should i say the advertising world our brand oury and highlighting of upcoming content offerings. >> so, you have got everything from epic battles with history

which is some of the most popular stuff they have ever done to teaming up with people like [indiscernible] is behind the partnership that you have unveiled yesterday? to empowerion is creators and inspire expression. maker is sitting at the convergence of media. the convergence of new media and traditional media like tv and film. perfect maker creator. he great content for all platforms. he has been a huge champion of the digital space. we are really excited that he announced a partnership called smartish where he will be sourcing talent from our network of 55,000 creators and he will be producing his own programs. that is one of the differentiators of maker. have a global network of creators. it is a reach that gives us over 6 million streams a month. last fromnging in the

hollywood and from youtube to create content together. we are a place for collaboration. >> you have also unveiled something called maker tv. people interpret it as this is a home where the maker content can live away from you to. what is the strategy there? >> we launched maker tv at the start of the week. it is our own but dietary -- proprietary platform. it gives audiences a deeper and more immersive experience than youtube. andube is still going to be is our biggest distribution partner. maker tv allows us to have a best of experience of the maker content from comedy on the games, fashion, and beauty. we partner deeply with brands. the audience can experience a best of. thek of it as our place for audience in the place to build

brands. curiousone has been so about this purchase. there were a couple of hands of the kinds of ways that you will be working together, and maybe with some content tied to the is a brand. what can you tell us? >> we are so excited. there is such a natural fit between our money 300 -- 23 content verticals. we have 23 verticals. to havee are looking short form expressions of all kinds with the disney library and the new disney content. last night he had a few teasers. we have the only making with our beauty icon. we teased an amazing opportunity with star wars that is one of the most beloved brands across our networks. >> very quickly, obviously

disney is curious about finding its next generation of stars. what makes someone successful in online video? authenticity. our makers are very authentic and are passionate about what they are saying and doing. i think authenticity and passion shows through on that edge of the platform. that is really key. >> keep it real. thank you for joining us. emily, back to you. >> thank you. the debate over income inequality in san francisco is getting more heated. what is the responsibility of big tech companies? ♪

>> welcome back to "bloomberg west." i am emily chang. the industryke up

in more than a dozen cities around the world very get suggestions from local residents. he spoke with charlie rose -- they spoke with charlie rose. take a listen. was able to approach them and talk about the idea that things that we're going to do their. i got on board immediately amber very excited about this and that we could do it -- i got on board immediately and they were very excited about this. >> you can catch the full interview tonight on charlie rose at 8 p.m. and 10 p.m. eastern on bloomberg television. incomethe debate over inequality in san francisco. heated protests have erupted over rising rents and that private buses that carry tech workers down to major companies. wendy different technology companies -- 20 different technologies want to fight poverty in its corporate

challenge initiative. -- they really proposed have based $10 million in just 60 days. the founder is here with us now in studio with cory johnson. thank you for joining us. >> thank you for having me. >> how did this come about? proposed this idea of list try to get 20 companies in. $500,000 each. i said i liked that idea. it is a good one. he was the catalyst. had amazing companies like linked in, salesforce, the list goes on and on. dropbox. we have had an amazing response. this is just the beginning. it is day one of our challenge to our business community to get involved and to give back. >> it is interesting.

they really respond to this incredible wave of criticism. it is really interesting and really knew. -- new. >> we are in a critical moment. we have amazing companies doing wonderful things throughout the globe. oftentimes what we forget about is people living in poverty right here in the bay area. 1.3 million people too poor to meet the basic needs. become it has increasingly aware we have an obligation and responsibility to give back in our backyard. >> talk about the objective of tipping point. >> we are nine years old. it started with four of us. our focus is on serving those living in poverty. 1.3 million people.

20% of people here in the bay area are living in poverty. we find and fund the very best poverty organizations and help them scale so they can serve their clients better. >> privacy your focus is here. what is the methodology you use to figure out which organizations to give money to? >> great question. we take a business minded approach to investing. we don't just fund them. there are 45 organizations we are funding. we asked them to track the results and hold them accountable. if they're not working, we cut them. if the stock is not performing, you look somewhere else. finite dollars in this region. we need to make sure they being put to the best use. the 45 groups we have, we believe they're doing a great job. >> you got a big response from

the technology community. andhave an angel investor small companies and startups to do more. are i asked a start up ceo you thinking about this, i haven't gotten overwhelmingly yes response. one person said the product already helps the community. >> i think you need to build it into the culture from the beginning. they have always had it from the beginning. i talked to these young ceos about it being a retention tool. there is a war over talent. we need to have employees want to be at the company. if your companies giving back to the community, you are likely to hold on to your communities. they will produce more for you.

they want to give back. they want to be involved in the community. i'm much more optimistic about what they're capable of. there is a lot of negative out there. i think it will be only the beginning. , do you get akly sense there is an uptake in the feeling of the need to do something? >> companies say they want in. .e are incredibly optimistic this is going to be a seminal moment in this region's history. sf is only starting out. >> i hope so. >> thank you for joining us. time now for the bwest byte, one number that tells a whole lot. jon is with us from l.a. >> how about the number 8? that is the numbers of witnesses

in the house judiciary committee tomorrow. we will do a blowout special focusing on it. we are looking at a lot of aspects about this. we will find that important phrases people will be listening for. this will be one of the seminal technology stories. >> jon, a people following this in hollywood? >> definitely. there are deals and companies like disney and local tv stations. you were talking about facebook earlier in the program. some have been making the argument that this deal has to happen because of the scaled a large technology companies have around the world. >> a big special we have got coming for you tomorrow. comcast time warner is one of the biggest potential mergers. probably in the history of the cable industry. >> great stuff for the show tomorrow. >> thank you for watching this

edition of "bloomberg west." see you later. ♪

>> welcome to "money clip." today's investor, jeff gundlach, he talks about the no normal and why he is so down on housing still. the head of chrysler and fiat says let's finish this damn thing. by the way, that is a direct quote. janet yellen testifies as david einhorn gives his report card on the fed chair.