welcome to "bloomberg west, where we cover innovation, technology, and the future of business. valuations are skyrocketing. pinterest just going to open up the revenue stock, valued at $5 billion, while uber could join the $10 billion club. and "godzilla" is stopping into the movies and heaters this weekend. we will look at whether the latest reboot of the franchise could be a winner for imax. first, a check on your bloomberg top tech headlines.

shares a world wrestling entertainment are getting slammed, falling 43% after the company said its new online tv network will not make up for lost a per and on-demand revenue until next year. wwe needs 1.3 million subscribers to 1.4 million subscribers to generate enough income from the network. blackberry is losing a board member. he will not stand for reelection after one year on the board. he is the former ceo of sony ericsson. the move will leave the board with six executives. the next battleground in the apple-samsung fight may be over a graphite-based material which could be ideal for wearable devices. it is a high-tech version of cling wrap and is thinner, stronger, and more flexible than current technology. both apple and samsung have been

racing to secure patent. two applications in the u.s., while samsung has 17. back to our lead story of the day, it has been a rocky time in the public markets but the valuations of many hot startups are soaring and show no signs of cooling off. to raise moreks than $10 billion, nearly tripling its valuation from last year according to people with knowledge of the situation. raisede, pinterest has another 200 million dollars, giving it a valuation of $5 billion, up 32% in the last seven months. are these companies worth it, and if so, why are they going public cory johnson is in the studio. jon erlichman is in l.a.. the university of florida finance professor is also with us. thank you for joining us.

michael, i will start with you. $5 billion for pinterest, $10 billion for uber. are those their numbers? >> if the company realizes the numbers. the reason why people are so excited is they have so much network effect, you have tremendous engagement. you havese of uber, fanatical support from the ecosystem. at growth potential, that is why investors have but that type of valuation on them. >> j, i know you have done a lot of research on these companies. what do you think of their valuations going up so much in such a short window of time? >> i would echo michael's opinions, that some of these companies have network effects. valuations are based upon optimistic assumptions, but google has demonstrated just how profitable targeted search advertising can be.

pinterest has the potential to make a lot of money with that targeted search advertising. cory, why do these venture capitalists want to put so much money into these companies at such high-value? pinterest is just going to make money. we know that uber makes money. if they are know close to turning a profit or even thinking about that. what is interesting is, one of the dynamics that i noticed, you see different kinds of investors in these mezzanine e and f rounds. woulde investor that you not think about, fidelity, t. rowe price. i think you see a lot of these investor that would have gotten him in the public markets, getting involved now. you have an interesting business that plays in this as well. >> what the fidelity is an t.

rowe price and black rocks of the world, what they are doing is getting involved in these companies where, in the good old days, these countries would have already gone public. tiger has done a fantastic job of investing in emerging growth companies. you have seen the public mutual funds and hedge funds stepped into the void. this is a way to get a toehold in great this is his earlier. that is filling up a gap in the marketplace. pinterest willke be competing for ad dollars with google, facebook, twitter. erlichman, how do we know for sure that they will be able to win those dollars? are in a great position because people go to pinterest with intent. one other things and makes google so valuable is because people go there and search for something specific. ways, there in some is a certain amount of pinterest envy over at google.

that is also why this is not necessarily a conversation about valuation being multibillion dollars for pinterest or uber, are we in a bubble? it is more about venture capitalists who are hungry to invest because they have money to put to work. there are only a few companies that look like pinterest and uber. if they do not invest, somebody else will. >> a lot of talk recently, are we in a bubble? , what makes what is happening now different from what happened a decade ago? >> several things. one thing that is a bit similar. as we mentioned, the fact that we have a lot of growth capital, investors with money to spend, has been pushing up the valuations on some of these companies. i would make a distinction between companies like pinterest niche,r, that have a

network effect, where potentially they can be very profitable without competitors coming in and severely eroding profit margins. on the other hand, i have more concerned about cloud storage companies, where the barriers to entry are not there. if you go back to the late 1990's, actually before the tech bubble reached its height, in 1996 and thereabouts, there were a number of telemarketing companies that went public. at the time, a lot of companies were outsourcing telemarketing and a number of them went public at very high valuations, reflecting very high future profits, but the barriers to entry just were not there, and in every single case, public market investors about the burning negative returns. >> i remember them well. then.re a banking analyst you helped to start an investment bank. why are companies that can do round the size going public,

what has changed since the 1990's? not as much fun to be a public company as in the 1990's. all sorts of issues that you do with as a public company that frankly has nothing to do with business. >> like audits? sarbox has definitely added some regulation. >> the time and money you spend on being public is an enormous commitment. particularly with the fast-growing dynamic business where you need to spend all your time growing the business and taking that resource and doing something else with it , these companies say, who needs it? particularly when capital is available to fund their growth private. could raise up to a billion dollars. if they can get that on the private markets, why would they want to go public? >> you look at other companies and all of them have been getting slammed. of twitter, it is

because maybe people were comfortable with where the public -- company went public at, but when you talk about a $50 billion company size, all of a sudden, you look at the math behind the numbers. technologygroup of stocks, last couple of years, you have seen a lot of these companies grow, some have been acquired. while you are highlighting company that could avoid going public, there are some that went public over the last couple of years because they did not want to be the last one standing. sometimes you go public because you want to survive. part of the story is also agreed. part,tory, for the most has not worked out well for public market investors. >> talk about what is different about companies going public today, versus bubble times? >> one big difference is the maturity of the companies going public. biotech,l, other than

not have revenue, usually profits, but much more than a business plan. tom is in addition to sarbanes-oxley, there is an enormous reason why we are not seeing more small tech companies going public. most of them are never going to go public. they will sell out in the trade sales. getting big fast is more important than it used to be and there are some companies, as a stand-alone business, have very .egitimate strategies especially for a lot of technology companies, selling out to a big tech player like oracle or google or cisco systems is the value maximizing strategy and they are not being built to go public, they are being built to be sold. >> michael you have the last word. to add to those

comments, if you look at the median companies in public today, $100 million in revenue. during the bubble, $10 million. it is a different environment today. >> more revenue, bigger cache files. >> a longer runway. >> and better businesses. gsv, jay, from the university of lorna, cory, jon, thank you. scott painterto about why he decided to tap the public market in this environment. ♪

>> welcome back. turning to our top story of tech of equations and company decided to go public or stay private amid a volatile stock market, one companies turn to the public

the auto truecar, buying website that started trading today on the nasdaq, opening higher than the offering price of nine dollars a share but that was below the market range of $12 to $14 a share. cory johnson is with me. ceo scottunder and painter is with us from the nasdaq. the stock is up 70% since the open. why did you decide to go out now, versus wait a little while? >> obviously, it is a choppy market here the decision to go public was premised on where we are at in terms of building the brand and the awareness and the size of the company. we have a lot of momentum and we have gotten good at being able to predict and forecast the business at this point. the time was right for us to be a public company and i think we had a lot of confidence given that we prioritize profitability along with growth and we have the ability to balance those two the yours out. it was definitely a tough process and we are going to be

public, looking forward to driving great returns and results for our shareholders. >> as i read about your business, it looks to me like data-driven, technology driven lead generation for the car business. am i getting that wrong? focused onot really just getting leads over to dealers. we are focused on getting people to buy cars in a different way. what we provide to the dealer is a no up the cost, no lead cost, no impression based cost for advertising. they pay us only when they sell a car because we can track a customer all the way to a sale. -- we the only accounting are the only fully accountable marketing company out there. we empower come stormers with information. >> you have an interesting comeback story. there was a lawsuit that took you to the brink and you sort of changed the way you did think that the company and truly came

back. tell us about that and how you overcame it. >> it was not a lawsuit but a lot of industry resistance. of transparency, everybody in the room knowing what everyone else pay for for a car, is a pretty empowering moment from a consumer point of view. from a dealer point of view, it is terrifying. no one will make a bad price decision. so the intuition about what we represented, i think, is where we got into a bit of trouble as a company. andad to get on message focus on serving dealers as much as consumers. >> you can see in the numbers, tremendous revenue growth, acceleration. looking back a couple years ago, minor growth, and then fantastic growth. to what do you attribute that, and how much longer can that growth continue without cost spiking? >> it is a powerful network effect.

if you have lots of consumers, is a remarkable brand for clarifying what we feel a lot of anxiety about, buying a car. when you have the ability to bringing consumers, the dealers on the program sell more cars. when they sell more cars, they get more competitive on price, better prices attract more consumers. so you find a market clearing mechanism in truecar but you also have something that is good for both sides of the equation. that has driven all of the kpi's for our business in the right direction. >> i know you have been in talks with tesla, facing some similar regulatory problems. what has been your advice to tesla? elon have respect for what and tesla does but it is a totally different model. we want to service dealers who are looking to get buyers a new car. certified dealers around the country who believe in doing business in a different way.

they believe truth and transparency is a better way to do business. we focus on helping them and the consumer to find a better process and experience so they can save time and money. you have raised a lot of money, you have stock could do something with. how would this change your business? been a thinly capitalized business for a long time. are a venture backed startup and there is a lot of discipline that comes with that. brand, 2.3scent market share in the u.s.. that is about 50,000 cars in the month originated and sold over the truecar platform by truecar dealers to truecar customers. we want to invest in that growth. i think we also want to solve more of the problem. today we are focused on price confidence and price discovery. intont to help people loans, leases, and trade, to bring the dealer and customer together. true car founder and ceo, scott painter, thanks for joining us.

giving the great american mall a high-tech facelift. ist is what westfield's doing with their new digital storefront technology in one of its flagship malls. ♪

>> welcome back. i'm emily chang. has hired a marketing executive to lead its google blast division. her mission is to take the product mainstream. she was recently the ceo of art.com and has a wide range of fashion experience. tuesday, google will allow anyone in the u.s. to buy google blast.

return to our wiring the world series where we focus on how technology is changing retail. as more people shop on their phones, traditional shopping malls are turning to tech to stay relevant. westfield's is the largest mall operator and its flagship new jersey mom, there, the company took the wraps off of some touchscreens to supercharge your shopping experience. cory johnson is back at the story. do we want our shopping experiences supercharge? weyou would not know where sit, but most of its commerce happens off-line in retail stores. i think they know their customers are getting online and that is changing the way that retailers think about setting up shop. this is what shopping the mall usually looks like. but this is what it could look like in the future. >> it is like your tablet at home but they are seven feet tall. >> westfield is testing these new digital storefronts in the mall in paramus, new jersey. is like window shopping, a

chance to see what is available, really getting engaged with the content, and then from there visiting the merchant. >> displays look like mirrors until you get close, which is when the technology kicks in. displays,ution lcd touch screen technology, and cloud-based control allows for real-time updates. my going to a window shop, seeing what parts are available, we want to give the sharper the opportunity to get larger-than-life imagery. >> the product is the brainchild of westfield labs, part of a push to innovate. >> the big push right now is to make sure we are grabbing the attention of shoppers. we want to make sure we have their attention once we have it, providing the greatest and most we experience as possible. >> if you think that is ridiculous, you have not sat in

a restaurant and text the person across from you. >> sometimes it is easier to find what you want online and then you can go into the store and see it and know what it looks like. >> i cannot imagine a world where you look at a picture of the shoe instead of going to see the shoe. >> maybe you do not know it exists. potential for discovery. giant amazon locker has appeared in downtown san francisco not far from where we are. what is inside and how it could help amazon's business. ♪ it is 26 minutes past the hour which means it is time for all the market. let's see where stocks are trading. not much changed today after mixed economic data this morning. take a look at some movers. let's look at a couple of them. general motors, the automaker will pay a $35 million fine for its ignition switch recall,

according to the department of transportation. they will be recalling another 2.7 million vehicles. this particular find is associated with the chevy cobalt. much more on the markets later. ♪

>> you are watching "bloomberg west." where we cover innovation, technology, and the future of business. i'm emily chang. long been a leader when it comes to 3-d printing but now it is getting into hardware as well. my partner and editor at large cory johnson has more. think an seem to impressive quarter yesterday, unveiling a new open software pop arm called spark and autodesk's first ever 3-d printer. that you aresting not just getting into making a printer for software companies, which is weird, but also

redefining the way that this architecture works in 3-d printing. one in every definition need to happen? >> for a long time i have been fascinated by the problem but frustrated with the realities of 3-d printing and many have been. together ao put software platform to move to the next level. the best analogy i have is android. pre-android, there was a whole in the world and people learned how to use them. we wanted to start with that. >> what needed to evolve? the 3-d printing industry has really only grown at a 20% rate for the past 18 years. people are hearing about it for the first time, seemingly not new, but you are the leader in the software to design stuff. what was it specifically that we were not seeing? something, to print

you need a model. that is what we do, we make that modeling software. but there are a lot of hurdles. their early days of printers, getting from here to there was hard. the printers were unreliable. there were a lot of steps involved and it needed to be simpler. and we thought they needed to be more innovation amongst printers. as google has done with the android operating system, now there are more people competing with great hardware devices. android operating system is virtually free. what is your model? >> it is free. openly licensed, anyone can have it. >> but you will make printers too? are you getting in this business in a big way? you have to have sales, distribution, a supplier for the plastics. i will answer the question yes, we are getting into it, but let's back up. he grew up in an area where

people said you could not do hardware and software, there was this unwritten rule. apple is in it in a big way. google. beensoft's xbox has successful. oracle is a hardware company these days. if you look, one of the very few systems in which hardware and software have been divorced from each other is the intel one. we are getting into printers where we announced a with implementation, showed a picture of it, and we will bring up the printer later this year. >> talk about what is does for the expansion of your business. i you have to have sales staff on a global level. challenge we are finding, probably due to where it is in the process, easy to build one of something, relatively easy. five of

something. but how do you scale it up to build hundreds and thousands? we are going through the process like all the hardware startups that are around the sentences go bay area, learning how to take something from a great idea into a great product. >> autodesk is going through a dramatic transformation, going round selling boxes with cds, dvds, whatever, to subscription software. >> absolutely, the model is changing. we announced yesterday, our second quarter is really in the transformation and it is going well. we have a firm belief that all software will be delivered on the cloud in the future, delivered from the cloud to all different kinds of devices, including your mobile device. we are all in on this business transformation change and so far so good. >> you announce the initiative yesterday. working in that direction through acquisitions or how long?

>> related to 3-d printing, really the past 18 months. we have been building up to this. it is not like we woke up one day and said let's make an announcement. specifically, what kinds of pieces of technology have been the most difficult to acquire? that has been one of the debates when people look at the x1's and the stratus'. they say they have something special that nobody else can do. what is unique in terms of what you can do with intellectual property? >> when you get a new manufacturing process -- and i believe this will be a huge .hange for the industry very generally, 3-d printing will be huge going forward. throughcome through the advances in hardware, software, materials science. what we are really interested in

is, the things you design should be different. if you can make things differently, you should design them differently. you should not take an old design and put it in a new material or process. >> that is what i thought about the 3-d printer. who needs to make a $3000 coffee mug? >> what people say about consumer 3-d printing is way overhyped. when you think about industrial 3-d printing, it is underappreciated. will be way impact larger in the industrial context than ever in the consumer context. -- is thenk development of this open architecture also going to be open in the way that lennox is, improved by the community that contributes to it? >> we will start announcing people, we have some partners already. my inbox is full of people interested. first let's get to a base level and then move on from there.

i think we will be able to move forward. there is so much more to be done with 3-d printing, people printing with carbon fiber, ceramics, metals. this will be an exciting field for years to come. >> autodesk right across the street, thank you very much. >> thank you. google, amazon, ebay are going head to head when it comes to same-day deliveries. but who will win? you can watch us streaming on your tablet, phone, bloomberg.com, apple tv, and amazon fire tv. ♪

>> this is "bloomberg west." i'm emily chang. we take a look at how technology

is changing the future of retail . from the ebay to google shopping expressed amazon drones, the race to master same-day delivery is heating up, but what will it take to make a same-day delivery network successful? me from boston is the director of mit's center for transportation and logistics. he consults governments and leading manufacturing retailing and transportation enterprises on their transportations and logistics worldwide. thanks for joining us. this seems to be a really hard problem. just how hard is it to have a successful same-day delivery network? actually, it is not easy, of coarse, because you need to control a lot of moving things away from the factory floor, warehouse floor. the experience, the customer experience, depends on the driver, the person who delivers it. over 100 years to develop the system they had.

a takes a while to develop nationwide system that can deliver on time, and most importantly, at low cost. a system like this exists already. there are service-level agreements, if you have a server and a critical part does not work, this company would have a server -- service-level agreement with these companies who could deliver the missing part into the viewer hours. when you order a pizza, you do not wait two days. you get it within half an hour. but you pay for it. actually, you pay quite a lot for the delivery. this is where the rubber hits the road, so to speak, the cost of the delivery, not the technical ability, but the cost of the delivery that would separate the winners from the losers. >> how much does it cost? >> google will not charge anything for it because -- in

fact, before i say how much it cost, it depends on several factors. a high-rise go to building and make 100 deliveries in the same building, that is not as costly as delivering in rural america where you have to drive 20 miles between deliveries. so it depends on a lot of factors. is why arent thing people doing this? many analysts would say, who needs same-day delivery? you need your toaster or toy within a few hours? it is not clear that this serves an existing problem. maybe, maybe not. for amazon and google, their reasons are somewhat different. amazon, they started amazon fresh, delivery of groceries. why? .hey need to develop volume the volume of deliveries which tends to cut costs per pound

delivered. so they need something that people need every day. groceries r it. on top of the groceries, later on, they can have all the packages arrive. amazon, they get something that they have always looked for. >> you talk about these companies specifically. i have tried all the services and i have gotten used to getting my stuff pretty fast. if i can get it on the same day, why not? which of these companies do you think is best is issued to do same-day delivery very well and cost effectively, is it amazon? no, it is walmart. they do not do it yet, but walmart has small warehouses, stores them a fulfillment centers, more than anyone else. when they get into the market, and i have no doubt they will. they are actually growing faster than amazon in the online market.

my guess is walmart will be it. if not, amazon is likely to be -- i hate to call it a winner. it is hard for me to imagine how they will make money in this, but they will control the customer experience and the overall business may grow. i do not think -- i do not understand why google is doing it. they are picking stuff from costco and walgreens and delivering it by contracting drivers, so they do not control the customer experience, but of course they will get a lot of data and maybe understand and at other services. >> what do you think of amazon drones? think -- look, it is very

hard to forecast that technology will not work, but we are quite far from a time when drones can deliver to your backyard. areas,d work in rural but can you imagine how many drones would have to be around new york or san francisco or boston to do something like this? itbe in a rural area where is not close to airports and other air traffic, maybe something like this could work. >> it sounds a little bit like the apocalypse to me. anything is possible. mit's center for transportation and logistics in boston, thank you. speaking of amazon, check this out. a massive yellow locker that has shown up in downtown san francisco. we will take you there next. ♪

>> welcome back to "bloomberg

west." i'm emily chang. amazon's efforts to get your purchases to you even faster does not talk with same-day delivery. they even have a locker program where you can get your stuff delivered to a locker instead of your home, but a giant version of a locker has appeared in downtown san francisco. cory johnson is there checking it out. >> right here in downtown san francisco at the edge of the giantbuilding, this yellow box, and the amazon giant locker. it is a publicity stunt but it is also a real experiment. they are experimenting with ways to get products closer to the consumer. they have embraced sales tax laws. the fundamental change in the business, this locker is part of it. they have lockers set up in a handful of major cities, partnerships with 7-11, the idea that customers that cannot get

things delivered to their door can get their things delivered to lockers like this. it is part of a broader effort from amazon to get closer to the consumer. they are moving their foot on that centers -- not distinction centers -- because i want you to be fulfilled, but closer to more cities. here in san francisco, they have another one in tracy, similar ones in other parts of california. the locker is a big change for amazon. what about amazon fresh? just delivering groceries, but they are figuring out how to get things to their customers really quick. changing from a business that lets you buy stuff to a method by which you get stuff. >> mystery solved. thank you so much. i will have to check that out after the show. "godzilla" hits the theaters today. the film could gross as much as

$70 million in ticket sales in north america this weekend. adding to its anticipated success, it is being released in imax theaters. jon erlichman spoke with richard und earlier.elf are a lot of people excited about this one? >> the big guy has a lot of fans. admin rights greetings on thursday generated $9.3 million at the box office. 23% of that was in imax. we got a little more color on the expectations from the ceo of imax. >> we have fairly high expectations. movie, weok at a think about what the audience connection would be to seeing the movie in imax. the thing that everyone knows about godzilla, he is big. people's association with imax, it is great for big experiences and bringing you in the movie. we look at the percentage of box office that we do for a movie and for this one we think it

will be pretty healthy. >> to put some perspective on that, the last time we spoke, "pacific rim" had just hit theaters. in the opening weekend, you generated 90% of the overall box office for that film. would you be looking for the same performance from a film i godzilla? depends on the overall gross. expectations are pretty high for godzilla for the weekend. the bigger the overall number is and the more screens it opens in , the harder it is to get an index up there, like "pacific rim." that is a different comparable but it will be tough to do those types of percentages, if this does the numbers that i hope it does. films comingese out through legendary and warner bros.. how important is the studio relationship to you guys? >> really important, and

especially, warner bros. was our founding order in the commercial film business. we have done more films with warner than any other studio. i think they really understand imax. our organizations are incredibly well integrated. our marketing teams know each other well, the distribution teams in a different countries, we know the warner personnel. in terms of partnerships, we work together very well. legendary, as you mentioned, "the civic rim," that is one where we worked well in china with legendary. that is definitely a plus for us on the movie. >> "godzilla" and then later in the summer "transformers." later in the fall you have "interstellar." a lot of films coming up in imax. what makes a good film for imax? >> first of all, the key

audience is the same boy audience. we think about how the fan boy as a category would react to it. then we think about the marketing appeal. "transformers" or weething like "godzilla," can see a connection as part of the dna. finally, we look at the director, cast, and we think how that will appeal to the audience and whether it could expand beyond the fan boys. also, we look at international appeal. last year we had almost 60% of our box office internationally. we are in 58 countries. we try to do things that have a broad global appeal and godzilla is one of those. >> what is the roadmap at this point? you have talked about china being on the way to being the world's largest film market potentially for you guys. how far how could that be? we think china will exceed

the u.s. in global box office probably 18, 19, on a country versus country basis. but our tracking is extremely good there. in china we have only about 140 commercial theaters. when "spiderman" opened up a week and a half ago there, we did over 10% of the box office on less than one percent of the screens. so i think we are part of that filmgoing experience there. as their box office increases, that is a good thing for us. there, including our backlog, will go up to about 400 theaters. we have only about a third of that open now, so we expect good rings. >> back to you. "godzilla" you can see starting today because it is friday. have a wonderful weekend.

we will see you on monday. ♪

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>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line," the intersection of his nest and economics with a main street perspective. ukrainians cash to save solvent. us home construction jobs in april. and the winners and the losers in the race for tv ad dollars. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines on this friday. phil mattingly looks at