>> 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 17.8 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. google wants 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 cameras that people wear doing anything from skiing to biking to kayaking. the range, the company has been marketing as not just a camera

maker but a media company. paul 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. you will see someone have one board to their board, mounted to their chest him on top of their head. you have people 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

filmed 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 recently, using his google glasses. he is finding uses for products like go pro in the operating room. it is remarkable how a 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. you have a shorts petrified this 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 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. catch us on your tablet or at bloomberg.com. ♪

>> i'm cory johnson. this is "bloomberg west." despite having the most high profile women 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 -- justice scalia wrote --

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. face in the tv signal to a 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. >> aereo plans to operate 22 cities by the end of this year and is built the business to accommodate whatever level of demand that comes their way. >> as demand grows we can grow. i don't think they are cable of

being successful in this world. >> jon erlichman joins me now. also, paul kedrosky. do you 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 avoid the 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 this would go if either one of 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. they don't want it to work properly. if it did 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. it is an interesting insight 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. in the old adage, we had a continual and of outcomes. it was a binary. this is a great example of 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. >> there 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 they can be about points like this. >> thank you very much. google kicks off its developers conference today. the latest announcement from google, 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. to have 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, console, and it also allows you to project or from your phone into the car all the display information so you can see your album, turn by turn directions. you can see these through the controls on the car. >> if we boil this down to three things people need to know about it, what would be one?

>> it 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 what your most likely destinations are going to be. based on 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. >> the world of apps is a big 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 news, we want to allow users to use these apps when the drive. similarly, messaging apps. not everyone uses the same messaging service. we want to enable all of those apps to use the completely voice-enabled messaging experience in android auto. that is what we are hoping today. >> that was google's android engineering director. we miss the big story in san francisco, go padres. more big news out of san francisco, the new project stacking up with developers next.

>> you're watching bloomberg west. i'm cory johnson. google unveiled plans for the android where today. live.l power samsung gear thelso announced today opportunity for developers to band -- build could be an interesting one. what is the role of google in the wearables market? jon erlichman from the conference itself joins me live. i am a huge wearable user. but you guys have taken the

approach of not be on phones and let that be a service. talk to me about the wearable stuff. >> we are super excited. we have been on phones for sure, but we are very interested in having any device. looks like an emerging category and we hope it gets adoption. for athletes to upload their activities. --did you announce >> we built the -- an app. for wear. we think it will be talked about here today or tomorrow. >> talk to me about what you saw there today, john. about the feelings you had. isi think the technology effective. to me it is still obviously about to the power.

certainly in the watch category. the brandon matters tremendously. some have already many arguments that maybe apple has the upper hand because of the power of that brand. had a lot ofe has traction with the android strategy that we talked about earlier. so why not team up with a bunch of different players? maybe not every model will get people interested but if one or two stick than they could be in a good position. >> aaron, you guys are so cycling.n running and i wonder -- do you guys -- i question the size of the wearables market. you guys are focused on hard-core athletes. where do you see the growth? factor to have

something with you when you are working out. when you're out for the run -- for a run, a lot of people don't want to run with the smartphone and their shirt. tetheris, it is a device, and they can keep the real-time data humming to them on their rest. see wheno you guys smartphone sizes of gotten bigger? what does that do for your use? are people less likely to use it on the run? less likely to travel have -- to have it travel with them? >> a lot of people stuff it they're back markets -- back pockets. a lot of them will allow you to stream data, live data about your speed etc.. to figure out what you need to get done in terms of activity. the phones, we don't think we'll

get us to decide, but you will be able to find a way to monitor your body and get the information you need. >> we are all about speed here in bloomberg. i have had my so -- my phone sewn into my arm. thank you very much. great stuff. from driverless cars to smart context, goal is no stranger to crazy attempt that new business. we will be back with the latest dreams in google x labs next on bloomberg west. ♪

and thisory johnson, is bloomberg west. google is making a push to get women in the workforce.

the search giant is committing to $50 million to the "made ith cwith code" initiative. we are joined by jon erlichman and megan smith. how is it with megan? >> it is interesting. you mentioned those diversity stats earlier. i/o there are men and women but it is predominantly a male crowd. they have been working to get young women interested in coding years oh -- for years. >> one of things that is really concerning is that only 1% of high school girls are expressing interest in coding. and yet all the products that they love are made with code. we launched a program called the things we love are made with code. these are fun, collaborative, exciting jobs.

they think these are for the boys and they opt out. push, lotsng a big of money and partnerships and marketing to really help bring the girls and. there are 1.4 million new jobs coming in. we really need all the young people to know what great career s these are. >> when you look around an event like this, you still see a lot of men, but there are a number of women who are here. have you noticed a difference over the years? >> it is important to make sure that women still feel invited to i/o. we were only 8% women attendees later -- last year. this year we are over 20%. getting into the industry, what about at the

executive level? google put out diversity stats recently. the number is roughly a fifth of men at management levels? technology, wein have slid backwards from the 80's with technical women going from 40% in the 80's to 15%. it is similar for most industries. we really have to do a push to get more women. at the college level we are seeing a lot of success, we are moving backwards a little. it turns out that for whatever women want to have an impact on the world. the media focus on female ceo stories and a lot of people are talking about marissa mayer oversleeping or missing a beating. what kind of message does that end up saying -- sending? >> i'm sure many ceos have had a

problem with a overslept. ishink -- the main thing working on advancement of women. there is a lot of unconscious bias of the world. all inheritas we from history, and when we see it we need to work on it. here at google we have done unconscious bias training. characters, on than will apply at five, and women will apply if they have seven. any one of those hand that might be the ones we need. being aware of are working on includes, part of that seeing ourselves in knowing we want to succeed. >> there is a google x presence here.

>> some of our projects are tied to google x. the team is here. we also launched a program called fall for acts -- for x. we're looking around the world for incredible tech minds with great ideas for agriculture, energy, business, medicine. we invited seven of them here for ted-style proposal talks. ones was favorite about to land from ethiopia. he was in the village where no one can read and the kids are teaching themselves to read. can the kids learn how to read themselves and teach each other? >> do these moon shots eventually make their way into

google? do you just want to see everyone focus -- x ise objected by google to use technology to make the world a better place. ideas, what we need help with his traffic and transportation, medicine monitoring. all these ideas. we are on a mission. there have always been tech pioneers from tesla to barton. we stand on their shoulders. solve for x is our passion project. we're trying to let more people know about the work. it is often the kind of work you don't have a lot of support for. someone think you are crazy. like elon musk five or six years ago. and now look at him. how can we celebrate people who are progressing? we love to use technology to solve those problems.

>> a final question. on google glass, the team is here. why wasn't it part of the keynote? >> i don't know if i'm the best person to answer that. we're so excited about glass. my favorite of the glass explores in the kind of things they are doing. irvine is giving them to medical students. like it isel ramping. platforms, cloud web forms, etc. >> that was megan smith. she has been around this town for a long time. yesterday, there was an investigation in new york -- they were showing how they were using google glass for some technological development.

i was surprised they didn't focus on that at google i/o. >> they did not talk about glass despite the fact that members of the glass demaryius answer questions. -- are here to answer questions. they might focus a little bit less on android where -- android wear. the big question i had and still have is when are they going to make that official retail announcement? program for people who want glasses open to everyone but it is $1500. because back to the question, what exactly does the average person want to pay for it and how do they want to use it? maybe the message for now is that wearables are an easier product to push out for the average consumer then glass. your point, to work with

companies who are interested in the enterprise and find valuable ways to use glass. >> thank you very much. possibly the most important thing google announced today was software for the car. we will look at why this search giant rolled out android auto. google everywhere. we are streaming on your tablet, bloomberg.com, apple tv, amazon fire tv. we are everywhere. ♪

>> welcome back, i am cory johnson. you can catch an earlier broadcast at 10 a.m. pacific. android auto. it will bring contact, music, maps, other digital media to the dashboard.

the question is whether this new technology will make the google driverless car. we are joined by jon erlichman. and john leonard. are these parts of the same initiative -- the driverless car? >> i think they are different pieces of a much larger overall vision to bring the internet to the physical world. the automotive and transportation sectors are huge part of the economy, and getting android into cars helps streamline data and experiences in this domain while doing the moon shot for this revolutionary driverless car technology. they are separate efforts but they are part of the overall vision to really transform transportation in our everyday lives. geek., i am a i delayed my car purchase this year. i want to see what the new dashboard will look like from apple.

but this one from google, was cool? >> it is cool:. . i think they are taking different approaches. a more controlled approach with apple. going along those same eyes we discussed with android, they want to enable your smartphone -- the best that you could do on your smart phone could be available to you in the car. whether it is through the controls or the phone. we spoke to someone from google earlier, and the highlight of the different things you can do. giventively simple thing, where we are and technology today. the value of your voice, the ability of the car to know where to are, and getting access the best, most valuable apps. a lotave in integrating of previous deals they have done, it already a key part of google maps. leonard, let me ask you.

the energy company and utility companies talk about reliability to the nines. 99.99999%, fo rexample. what kind of reliability is required for automotive software? >> very high reliability, especially if you are to take control of the vehicle. lena says, adaptive cruise control. -- lane assists, adaptive cruise controls. one of the good things is that some of the requirements are relaxed. if the computer were to have a doesn't affect the integrity of the vehicle. true 9'shat the performance were talking about -- those are really hard

challenges. we will have to see how things unfold. but you can't down to their vision and audaciousness. i think getting android into the out ofgetting them peoples hands and using these interfaces, that could have a huge impact. i am the parent of a 13-year-old and i'm going to buy a car that has this capability because i don't want my son fumbling with the smartphone in the car when he learns to drive. >> it is amazing to see people refuse to use headphones of the car and continued to text and drive. do you think that this has things overseas to prove these devices? >> i think the safety is obviously a motivator. but think also -- i saw the commercial google released today of having the person who has the screen that goes around your life.

with the dog, it's a wonderful thing. the notion that android follows you from the wearable, from your smart phone, into your dashboard, back again, that is transformative. if you think about the long-term vision with fully autonomous cars, you can imagine the android experience in the driver who was relieved to the tedium of stop and go commuting traffic. i do want to caution that it might be a long way off cause there are fundamental challenges. but there is no doubt they are hiring the top talent. they have got the top talent and they have got this partnership through the android network. i was impressed with how many oems they signed up with. they're certainly on a great pass to make a big impact. >> john leonard, thank you. jon erlichman, stick around for our bwest byte, one number that

tells us a lot. i thought the bike should be one because it would be luis suarez one bite. that is a different kind of bite. we can have a double byte. it is six, cory. as in six months. the minimum age to attend this conference. not see the keynote address. but 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 that for the last couple of years. they have 80 to 100 kids they were expecting to be here while mom and dad were checking out android auto and google glass. six-year-old might

understandably do some biting. fifa if word from you'll be kicked out. >> [laughter] >> there was a little bit of world cup for sure and here. >> john, thank you. you can get the latest headlines at the top of the hour on bloomberg radio and all the time omberg.com.m -- blo we are on apple tv, amazon hd tv. we have all that coming up tomorrow, right here on bloomberg west. ♪

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