>> live from pier 3 in san francisco, welcome to "bloomberg west." i'm cory johnson, in for emily chang. from the ski slopes to the stock market, go pro expected to price an ipo at any moment. they're expected to sell a 17 point 8 million shares. $427 million in raising the offering. that will give these guys a market cap of $3 billion. aereo has been shaking up tv

industry. that could be coming to an end or a vistaprint court has ruled against the streaming startup, saying it violates the copyrights of broadcasters. it is a huge win for broadcasters like cbs and disney. android everywhere. including your living room and in your car. ruvell showed off some of the new android smart watches. the smart tv system, and android auto which brings smart mode phone features to your car. google revealed an updated operating system, android l. we are waiting for go pro to price its initial public offering at any moment. their best-known for making doings that people wear anything from skiing to biking to kayaking. , the company has been

marketing as not just a camera maker but a media a bunny -- media company. .aul kedrosky joins me i went snowboarding this winter, and i was amazed at how many people were writing with these go pros. >> it is stunning. the thing that is changed over the last 2-3 years, the go pro phenomenon is not new. what's new is people having 2-3 at once. have onesee someone board to their board, mounted to their chest him on top of their head. who used to be an owner, suddenly have four or five of them for a single i david e. that is a remarkable shift.

>> it is fairly amazing. i have been on so many shoots, we had go pros out in the water. i presume the ocean is littered with tens of thousands of lost go pros. while this is a startup, it is a profitable business with high gross margins. >> it is. it has been under threat were people have been saying since the beginning this is nothing sony couldn't do. whether it is another start up or a well-established vendor, there has always been this threat the margins would contract in the business would disappear because someone was going to do would go pro does better. not only has that not happen, they have been able to preserve margins and grow business because buyers are buying more units than people expected from the beginning.

a fantastic short film was filled entirely on go pro. it is a piece of technology. >> i will check that out. the revenue numbers are actually down. i wondered, before that they were seeing double digit gains every quarter. i wonder how big the market is ultimately for this. >> this is one example of one of those companies that is creating a market where there wasn't one before. most people who were skiing or snowboarding, doing these activities, it wasn't they were using something else. they were using nothing. this has become an example of a product that creates a market where there wasn't one

previously. that is the kind of phenomenon that often catches investors by surprise. they are continually saying you can continue to grow because here is the total address of the market. there has been a shifting targets as the company has founded. >> i want to keep running video people jumping off mountains and riding bicycles. demographically, i don't know how this works. how the audience for these things is different than the devices are capturing an audience and spend more money. >> that is not clear yet. the company is so young, it is not clear how users are going to age with their product. i was talking to someone his googlesing glasses. he is finding uses for products like go pro in the operating room.

how aremarkable relatively inexpensive small camera showing up in so many laces pretty interesting thing is that as an investment, there is a binary perspective out there. thisave a shorts petrified come he will build a licensing business and blow them up should they command a short business as a hot box vendor. >> it will be a while before anyone can get any borrow on this thing. we don't do a lot of stock talk in the show. but it is interesting that this silicon valley company, do make much of the that they are pushing the media storing -- story? >> i think they had to. aber getting pushback from investors from their investment bankers that there is a long and scarred history of hot box vendors to come out with these

great products and appear in the marketplace just as the market is saturated and the harbor story goes away. they had to tell another story. is this a credible story? one way to back-checked that is go to the go pro youtube channel and look at the average number of views of their top hundred videos. they are credible numbers. into the millions of this proprietary content network being run by go pro. >> and what a throw a number at you. how many ipos have filed now. there are 305% more ipos that have been pending then there were a year ago. it is amazing. >> it is amazing. 2013 was a crappy year for ipos. we are well below the numbers. never the less, it is stunning so far. they put up numbers we haven't

seen since 2000 him even if they are below that number. the appetite for new names is huge. not surprisingly. the old names look tired. even the companies we talk about all the time on the show are old technology names. it is a generational shift underway. >> there are 739 ipos this year. always a pleasure to hear your voice. thank you. a major blow for aereo from the supreme court. that is next. kat just rimming on your tablet and bloomberg.com.

>> i'm cory johnson. this is "bloomberg west." despite having the most high in technology,

sheryl sandberg does not but the trend when it comes to diversity. women make up 31% of the workforce. they make up 20% of senior managers and just 15% technical employees. 91% of facebook employees are white or asian. broadcast networks for the huge winners in washington after the supreme court ruled dreaming start up aereo is violating copyright. stephen breyer says we must decide whether the respondent infringes this exclusive right advice thatec -- allows and watch television over the internet at the syme time that it is broadcast over the air. we conclude that it does. justice scalia wrote the network sued aereo for several forms of copyright infringement.

w-- let's talk about aereo. how did the company actually work? or did it work? here was the set up from jon erlichman. >> at this manufacturer in salem, machines are assembling hardware. this is the aereo antenna. >> we did a lot of work. we achieve great performance. they gave us a look at the busy factory where the product comes together. it revolutionized the way we watch broadcasting uv. when you see how the technology works, it is different than using old-fashioned rabbit ears. the antennas aren't mounted on

top of a subscriber tv. they are stacked on boards. they slide into a box that accommodates 5-7 thousand antennas, and mounted on rooftops in cities across the country. signal to atv transcoder and then a dvr. >> a standard antenna takes all of the spectrum and push it down the wire. whether you want it or not. this is the model where you are only getting what you want to. >> what is the capability of what you can make? >> i think we can manufacture huge numbers. many more than 10 times a week. operate 22ans to cities by the end of this year and is built the business to accommodate whatever lannett -- level of demand that comes their way. >> as demand grows weekend grow.

-- we can grow. they are cable of being successful in this world. >> jon erlichman joins me now. also, pocket drops being -- paul kedrosky. think they were surprised by what happened today? they clearly felt very strongly that they were not doing something that was not correct. they spent a lot of time on building this technology to make sure that wasn't the case in their perspective. the broadcasters thought that from the beginning, they were creating technology that would ultimate thing broadcasters want, to get paid. at the end of the day you have

two sets of businesses, each with their own focus and agenda. each which wasn't sure where ofs would go if either one them lost. aereo had to understand that this was a great possibility. their business was frozen, essentially, as they waited for the ruling. >> what is your take on the decision? one is, there is the baroque lengths that the broadcasting companies force you to go to to use their own products. over the air hd already exist. it doesn't work properly is a feature, not a bug. i don't want it to work properly. if it didn't then it would cut into their business to provide through cable channels. it only to be easily accessed. i think that is one. the other thing is interesting. insight interesting

into venture financing. historically these kinds of binary outcome companies weren't able to attract financing. this was always the problem in biotech. either the drug works or it doesn't. a the old adage, we had continual and of outcomes. it was a binary. ofs is a great example binary outcomes to i.t. investing. >> it is interesting. let me share with you the audio version of a touchdown dance. >> what aereo was doing was taking our technology and selling it to the consumer. is that appropriate? no. the people that produce the content are the people who should be able to deliver the content. it should be done by an illegal third-party. is les moonves, giddy

about this decision. does this focus on copyright was interesting, there was little discussion at all about their responsibility as broadcasters to broadcast? >> this is selfish on their part. this is content already out over the air. they are not being paid in the first place. the notion they are experiencing losses or concert they are already distributing is nonsensical. this is zany style. it is punk behavior on the part of the broadcasters. it serves no one in reminding people what a pain in the ass they can be about these points like this. >> thank you very much. google kicks off developers conference today. the latest announcement from

google. that is next.

>> welcome back. i'm cory johnson. this is "bloomberg west." google wrapping up their first day of their developers conference. the search giant unveiled a new version of android for smartphones. other highlights, a new android television. jon erlichman in san francisco at the event. he joins us. some members of the media

were moaning about how long this keynote presentation went today. i think there was, to your point, this idea of android everywhere. it available in tv, and in cars. here is one of the executives we spoke to about that. >> android auto is familiar, but redesigned for the car. what it allows you to do is control the absent services running on your android smart phone through the familiar car control. the steering wheel button, and it also allows you to project or from your phone into the car all the display information so you can see your album, tyrant -- turn by turn directions. through thethese controls on the car.

>> if we boil this down to three things people need to know about it, what would be one? is voice-enabled. which we think is a safer way to use your smart phone in the car. you don't need to take your hands off the wheel or your eyes off the road to control android. if you want to play a song you can say play whatever the song is. android will queue that up for you. you want to ask a question, send a reminder, or a text message, do that through voice. it is voice-enabled. that is the most important thing. >> you talk a lot about how it knows where you are. >> yes. it is context aware. when you connect to your android smartphone to the car it knows that you were in the car and driving. we will mute notifications that aren't relevant but we will show you things that are applicable for the drive like accidents

coming up ahead. traffic information. your next turn if you're using navigation. it is context aware and shows you these things. it knows when you get in the car --t you are most likely you're most likely destinations are going to be. the patterns of you using vista vice not only when in the car but because you are connected. it learns from any searches that you do to look up a restaurant or a trip you are taking this weekend. it is going to have that destination queued up for you. tap it and go. bighe world of apps is a one. on your smart phone, you have a big inventory. how does that factor in? >> the big thing we're trying to do is capture the power of the android ecosystem and make it as easy as possible or developers

to bring their apps into the car. not all the apps makes sense. it is a make sense to play flappy bird while you are driving. for apps where it is audio streaming, whether podcasts or users towant to allow drive.se apps when the similarly, messaging apps. not everyone uses the same messaging service. we want to enable all of those the completely voice-enabled messaging experience in android auto. that is what we are hoping today. androidwas google's engineering director. we miss the big story in san francisco, go potteries. padres. more big news out of san

francisco, the new project stacking up with developers next. ♪ bloomberge watching "

west." plans forounced android wear. the opportunity to build could be interesting. what will it mean for the wearable market that is still evolving? i am a huge strawberry user. guys have taken the approach

not to be in devices generally, to be in phones and let that be a service where people monitor their workouts. aboutare super excited the wearable it we have been on phones for sure but we are very onerested in having every device. there. strava to be app for wear. and ready to go. >> talk to me about what you you there and any gleanings had from the devices that were demonstrated. is nohink the technology doubt impressive.

it is about the power of brands. certainly in the watch category. matters tremendously and some have made the argument that maybe apple has the upper because of the power of that brand but clearly google has had a lot of traction with the android strategy that we talked about earlier in the show so why not team up with a bunch of different players and maybe not every model is going to get people's attention but if one or two stick they could be in a good position. on twoare focused sports. i wonder do you guys see this because i question the size of the wearables market and how long people use those things. you focus on hard-core athletes. where do you see the growth? >> it is a new form factor.

a run whichut for is the dominant use case a lot of folks do not want to run with their smartphone tucked in the back of your shirt. because it is a tethered device they can check it away deeper and keep their real-time data coming on their wrist. that is where the use cases new. size has gotten bigger. what does that do for your use case? are people less likely to use it on a run? of ways toe tons keep this device on you. a lot of people stuff it in their back pockets. there are screens under tethered to the phones that will allow you to stream data about your workout and your speed. to you in that workout which helps you to figure out if you're getting done what you need to get done in activity.

phones are not going to get to the size of tablets but you will find a place to tuck it away on your body and get the information you need. >> we're all about speed here. thank you very much. rate stuff. google is no stranger to the crazy attempts at new as mrs.. we will be back with the latest next. ♪

>> google committing to $50 million to the made with code initiative. getting girls into coding. president ats vice google x. >> it is interesting. mentioned those diversity stats. it is predominantly a male crowd and megan smith and google have been working to get young women interested. here is more and what she had to say today. of high school girls are interested in codings yet all the things they're interested in are made with code. these are fun, collaborative,

exciting jobs. themselves.see so they opt out. $50 million ofed marketing and partnerships and other things across the next three years to bring the girls and. comings 1.4 million jobs and we have 400,000 people to fill them. we need all the young people to know what great and fun careers these are that they could be part of. >> when you look around an event and still see a lot of men, than -- the numbers of women have been climbing. >> we are making sure that women are invited and there are a lot of different partners. there is a lot of women in our industry. we just need to get them there. >> beyond getting them into the industry what about the

executive level? google put out diversity stats and i think the numbers come up 1/5 of the management team are female. >> yes. in general and technology we have it backwards. in the executive ranks not dissimilar for most industries. we have to do a push to get more women in and there is many right spots. at the college level we're seeing numbers moving to 30%. for whatever reason the young women were not seeing how coding was impactful. they are choosing other careers. >> a lot of people were talking melissa meyer missing a

meeting. >> the main thing is working on advancement of women. there is a lot of unconscious bias. none of this created this needt we do once we see it to debug it and work on it. we have done unconscious bias training. have [inaudible] that is a data point we need to know is managers. there is a group with their hands up and a group with their hands not up. anyone of them we need to promote to the job. just working on your bias and once you see it there working on programs and sang -- things that can help you. heart of that included releasing the data so we could see ourselves and know that we want to fix this problem. >> there is a google x presence

here. tell us about it. >> some of our projects are public. the team is here. we also launched a project a couple of years ago called saul x. -- solve for we're looking at incredible tech pioneers who have incredible ideas. we have invited seven of them ted and they are presenting style fast proposal talks. in of my favorite ones, and her and you and where no one can and the kidsiles. learn how to read and [inaudible] we really get to the 50 million cool -- kids who are not in school. >> do these gunshots

make their way into google or you just want to see everyone focus. make the technology to world erratically better place. medicalelp with monitoring. all these ideas. so we are on a mission and we believe, there have been peoplers who all these who solved things in the world so we stall -- stand on their shoulders. we are trying to amplify so people know about their work. often when you're doing this work you do not have a lot of support. someone thinks you're crazy. it is sooner like elon musk five or six years ago. how can we celebrate people who are in progress and there are a lot of problems in the world.

we love to self problems. >> a final question. the team is here and it has a presence here. it was not part of the keynote. how come? >> i do not know if i am the best person to answer that. we are so excited about glass. my favorite is the explorers and the kind of things they're doing. especially some of the enterprise things. see, crisise will response, etc.. some of is working on the new stuff that is coming like the new automobile landforms. megan has been around this town for a long while. i went through the slides and they were showing how they're using google glass.

>> they did not talk about glass despite the fact that members of the team are here to answer some questions for the people that use it. it might be because if you were to talk a lot about glass people might focus less on things like android where. the wearables software. the big question i had and still have is when are they going to make that official retail announcement? the explorers program they have got is open to everyone. it is 1500 bucks. ask thel have to question, what does the average person want to play and how do they want to use it? to be the message is wearables are an easy product to push out the glass as they continue to feel to that process. and work with companies who are

interested in the enterprise of finding valuable ways to use glass area and >> thank you. importanthe most thing they announced was software for the car. we will see why they rolled out android auto. they will have google everywhere. you can find a streaming on your tablet and your phone and apple tv and fire tv, bloomberg radio. we're pretty much everywhere, too. kind of like google. we will be right back. ♪

let's welcome back. i am cory johnson. they can catch the earlier broadcast. google announced software product for your car called android auto. it will ring contacts, music maps, -- music and maps.

what does this new technology mean for the driverless car project? and john leonard running us from new york. is this -- are these parts of the same initiative, the driverless car and now android for the auto? >> they are different pieces of a much larger vision to bring the internet to the physical world. the automotive and transportation sector is a huge part of the economy so getting android into cars gets data. it is doing the moon shots of this revolutionary driverless called nascar technology. there are separate efforts but they are part of this audacious vision to transform transportation in our everyday lives. as you know i am a big-time geek. i delayed my card purchase.

i want to see what the new dashboard will look like. what did it look like a maze it cool? >> it is cool. there is a more controlled approach. they want to enable to be available to you in the car. whether it is technically through a screen or some of the controls. we spoke to someone earlier in the highlighted some of the different things you can do through this. they are relatively simple given where we are with technology today from the value of your voice, the ability of the car to know where you are and getting access to the best, most valuable apps and they have been integrating a lot with some of the previous eels they have done.

they're trying to build on to that. companies or the utility companies talk about reliability to the nines. what kind of reliability is required for automotive software? very high reliability especially if you are taking control of the vehicle. abouting that is good this application of android to the dashboard is some of those requirements are relaxed. if the computer were to have a delay in playing the right song or sending a text or making a [inaudible] 9'she true many

performance are hard challenges. we will have to see how google achieves that. i think just getting android into the car. the safety implications of getting the devices out of people hands and using these voice interfaces, that could have a huge impact. i am a parent of a 13-year-old and i will probably buy a car that has this capability because i do not want my son fumbling with his smart phone when he learns to drive. >> it is fairly [inaudible] refuse to use wireless headphones and to continue to text and drive. has this driven ntsa to approve these kind of devices? >> the safety is a motivator but i think also i saw the commercial that google released today of having the person who has the screen that goes around

us -- goes around your life. with the dog and it is a wonderful thing. this notion that android follows smartphone phone into your dashboard and back again, that is sort of transformative. if you think about the long-term vision of these level for cars that are autonomous you can imagine the android experience and the driver who is relieved of the tedium of the stop and go traffic. i do not -- that might be a long way off because there are fundamental challenges to solve. there is no doubt that they're hiring the top talent. they have got the top talent and they have got this -- these partnerships through the android network. oeas surprised by how many m's they signed up. there are the great pass to make a big impact. >> thank you very much. e.ick around for the bwest byt

one number that tells us a whole lot. i thought it should be one. him kickedat made out of the rest of the world cup. >> it could be. you could have a double byte. it is six as in six months. the minimum age to attend this conference. not to see the keynote address and go to the different sessions but for the childcare program. if you're six months of age or up to 11 years old they have childcare for the attendees. they have been doing this for the last couple of years. i they were expected to be here while mom and dad were checking out android auto and google glass and all that fun stuff.

>> still no word on whether suarez will get kicked out. >> there is a little bit of world cup for sure. during the keynote session. >> thank you. you can get the latest headlines at the top of the hour and all the time at bloomberg.com /technology. hdtv andple tv and we have all the latest news and technology coming up tomorrow right here on "bloomber g west." ♪

>> this is "taking stock" for june 25, 2014. i'm pimm fox. the theme is protected. broadcasters protect tv terror by convincing the supreme court the area went to far converting programming into a streaming video service. the decision is out. we talk about the future of the media industry. air france looks to protect its bottom line with the new seating layout. you'll meet the airline chief executive. the protector in soccer, the goalie. the former world cup goalkeeper