>> live from pier 3 in san francisco, welcome to "bloomberg west," recover technology and the future of business. i am cory johnson. breaking news, alibaba's ipo. choosing the new york stock exchange over the nasdaq for its ipo. could be one of the largest in u.s. history. of 37 u.s. tank and internet ipos. .o pro takes off the extreme camera maker raised one of the biggest ipos ever for a consumer electronics company. it has bigger ambitions, hoping

to become a major player in first-personto the content shot by users. and some sharks as well. , with its with alipay 300 million users, the dominant payment suzerain -- service for alibaba. news, alibaba has picked to the new york stock exchange over the once nasdaq for its ipo according to a person with knowledge of the matter. it could be the largest ever in the united states and is marching toward a summary listing. alibaba will seek the ticker baba. let's go to julie hyman. this thing is rushing ahead. they are going to make the august offering. >> yes, the filing is just out

so that appears to be confirming that indeed they are going to be listing with the new york stock exchange. this has been a battle, as you mentioned. the nyse has been gaining ground in terms of the big tech listings. it does not necessarily mean it will mean a lot to the nyse's bottom line. a prestigeefinitely play and gives them bragging rights and in terms of the ticker,f baba for the it does not just mean it is a part of the name. there is a lot of interpreting of what it is all about. there are two common interpretations of the word. one of them is eight and the other is fortune. if you look at baba, it would be gives us a hint as to

when the ipo might happen. it is going to be the nyse and set of the nasdaq. >> -- instead of the nasdaq. >> i want to bring in max. this is an interesting listing, ipo filing. because of the jobs act, we have not seen the public iteration they used to be common when companies would go public. we are going to see that with ali baba. >> it is not eligible to get a jobs act, but i do think it is important. there is a lot of symbolism. the marketing has always been important. i make a lot of their money pushing ads on e-commerce. they are sensitive to the importance of publicist he. i think it is a sign of being a goal -- global player to be on the nyse.

i think we see a hangover shadow from facebook. >> let me ask you about that, in terms of the facebook adventure from almost two years ago with ist ipo, the stock exchange getting so many technology listings. >> and talking people, they really said in terms of the servants is the exchanges offer, there is not substantial differences between them. it really does come down to reputation and status, where you want to list. the nasdaq had been the tech place, but there is definitely something to be said for the facebook affect. the new york stock exchange has history on its sign. if alibaba was looking forward to old -- for the old place list in the united states, i guess perhaps that could have been one of the elements that put them over the edge. in terms of the

business, what kind of things really jump out at you? up onterms of finishing this, part of the reason we are seeing the big tech guys is because of how long companies stay private and how big they are. that has changed. when guys are making it to the ipo stage, they have been private 8, 15 years. they are enormous with multibillion dollar revenue streams in many cases. what we are look for in alibaba is a gross topline revenue and keeping some of the best in class margins, which are high margins, which is part of the reason we expect them to become public at or above $155 billion. government'se concerns concern you? is trying toer talk about they are a caymans

island company, managed by hong kong. it is not a straight listing like with a u.s. company. >> obviously it is a big deal. which hasructure, been used by a lot of the major chinese listings, has to do with the ability of foreign nationals to own chinese companies, which they are not able to do. i do think that is an issue that demands a small discount. on the other hand, that has not been a problem in the past and if he becomes a problem that would mean the chinese government is having a radical change of course in terms of how it wants its economy to interface. it deserves some attention. i am not sure it would be front and center in my valuation. >> warren buffett has this line you can only tell who is swimming naked when the tide goes out. the market is going up right now. do you get a sense people in new

york are concerned about those issues? >> it does not seem like they are. you also think about the formula we have for recent ipos and the appetite for anything having to do with social orientation at. internet. with the -- pair that with a company seeking a lot of money. that seems to be what we're are hearing from people who might invest. ," wex, for "bloomberg west rarely talk about stocks, as you mentioned, there is this a prestige issue it could translate into better business. of ali baba, will it change by being public? >> if nothing else it is interested in coming to the united states.

outs going to roll consciousness of the name through a big ipo. be seen as legitimate. senior management and bankers are well aware there are fears attached to chinese names and the variable and other factors in having the most white shoe experience of getting the best name positioning is quite reasonably a major concern for all chinese firms, particularly leading firms like alibaba. i have to agree with you. you to stay with us. we are going to get more of you in just a little bit talking about go pro with its ipo today. its business is extreme in many ways. we are going to talk about that next on "bloomberg west." ♪

>> welcome back to "bloomberg west." i am cory johnson. known forory, gopro its crazy cameras and adrenaline pumping it to videos, surfing, motorcross, shark swimming, you name it. the stock soaring as the company hits the street with its public offering, using the proceeds to pay back some debt and make some acquisitions. it is part of its vision to become a media company. gopro says they have 500 million views on youtube. they are expected to collect ad revenue. the ceo spoke with matt miller and stephanie ruhle earlier today. >> we think of ourselves as

being in the content enabling business because we recognize customers capture content of exciting life experiences, and they tag their , they are gopro driving awareness for our company, our brand. youto compete with gopro, have to have millions of people sharing their experience in giving you credit for it. >> how are you going to monetize this content strategy? videos.atching gopro i do not pay anything for it. ,> when you ask somebody, gopro what do you think of? everybody isideos sharing and i see going viral online. they have gopro as a hardware company. so what that tells you is we have a global audience that is engaged and when they see our begins,nd the video

they know they're going to see something interesting so they pay attention and by definition that is the job of a media company, to engage in the its so you can monetize that engagement. it is certainly an opportunity for us. >> where, in advertising? >> a number of ways. toare really helping shepherd the lifespan of video. so we monetize it by selling a capture device, then if we have tools and services, we may be able to monetize helping customers create summary edits, and then the resulting programming. at gopro, we are able to aggregate the best of our customers' content and redistribute it. >> that was nick woodman. unknown surfer and silicon valley guy. i'm going to bring back max i have to sayff,

nick is one of the most impressive ceos i have met. i wonder what you see. see an exciting name getting a lot of free publicity around the ipo. there are some yellow flags. we like the company. the ceo was very exciting, maybe going to have a little more bumps in the road when you get earningsarterly universe of a public company. we like the company. we think the standalone a one trick electronics is tricky. justifyre will valuations through $4 billion. it has to be about monetizing that content. it is easier said than done. >> is competition important?

going toomeone else is eat their lunch. >> we see a lot of knockoffs. a lot of guys coming into this space. they need to be the apple of the wearable camera. it might be a slight of hand. i don't think it is the camera guys. wearables, cases, the smartphones, getting people to buy something else that has an extra step to share is going to with more and more rugged smartphones with special cases. the margins for this business are really terrific, for any business. it is kind of amazing. >> absolutely. i have come down, which is a little bit concerning. 35% level which is hard to build and hard to sustain.

--t is why we think we need they need to monetize that content, as powerful as they are, apple is the exception to command real premium to a brand late toich is a rough swim in. >> what are make of the fact sales were down? we saw double-digit gains for every other quarter. >> this is a high and purchase. q1 is usually week. is about athis supply breakdown. that highlights their investment from foxconn and their dependence on contract. we do tend to believe them they will have a catch up in revenue and some of the stuff that roque down in the pipeline works its way into the market. they look so if

great with the weak quarter going into the offering. >> absolutely. it is some chance of that. and it highlights some of vulnerability when you're outsourcing 75% of what you do. >> max wolff, thank you very much. for market dominance in mobile payments is heating up. we will be back with the latest moves next on "bloomberg west." ♪

>> i am cory johnson.

this is "bloomberg west." apple is not giving up. it is cutting prices on the ipad touch and a new ipod will cost just $200. apple is adding a rear facing camera and also making available more colors. its revenues have fallen quite a bit in the last quarter from nearly a billion dollars the year before. one paymenter method alipay is teaming up. it processes payments for chinese e-commerce giant alibaba. the global payments is expected to reach -- partnership, this the striped cofounder joins us now. stripe partnership, a

cofounder joins us now. i don't understand it. can you coach me? >> for usure. alipay has had little attention given how large they are. hundreds of millions of consumer accounts in china. if you look at what stripe does, we make it easy for websites and mobile apps to accept payments. there has been this emergence of global companies like go pro, dropbox, mobile marketplaces all of them have specialized payment needs and that is what stripe handles for them. today you can only sell to the credit card crowd. credit cards are dominant. is the dominant payment method in china. it is not. cash is dominant. >> for online.

so if you are a western merchant and you want to start growing your customer base internationally, credit cards will only get you so far. this is about enabling western merchants to address a larger market. over the past year we have growing our support and this is one of the steps where merchants can address the billionaire credit card holders and the hundreds of millions of alipay account holders. there is notions in the filing about a butness-to-business deal, is that a substantial part of the alipay business? >> the big thing for us is the consumer business. you have the rising middle class who are mostly buying from chinese websites. there is demand for western products. if you look at something like toro, they definitely want

sell into china. up to now for any merchant it has been hard for them. >> was a difficult to do this deal? >> it has been good working with alipay. we have focused on the product therience because i think experience really changes on a mobile device when you have less screen space. we made it so the transaction happens on the website or in the merchant app. you are never taken out of that experience. john collison, thank you very much. taking the health care deal. details next on "bloomberg west ." ♪

where stocks are trading right now. the s&p is paring some of its losses. as nineown as much points. now only off by about four. you had jim fuller saying interest rates may rise. although he is not a voting member. lumpy data down in consumer spending. inflation was down 1/10 of one percent keeping a lid on the markets. a couple of stocks to highlights, the first is alcoa trading at a 52-week high. it is a limiting producer which agreed to by aerospace in a cash ander stock deal. and we are watching mccormick, the spice maker reporting a jump in second-quarter profits but it did this sales estimates.

it really has been reaping the benefits of a key international acquisition last year. we are on the markets again in 30 minutes. more "bloomberg west" on the other side of this break. ♪

watching "bloomberg west." i am cory johnson. salesforce announcing a partnership with philips bringing together health care providers and insurance companies. the executive vice president joins me right now. tell me about this. >> thanks for having me here today. what is so exciting is that we are going after a part of the industry that needs innovation more than any other industry. >> no kidding. how many times you have to fill out the same forms. go back to the third time if they have the wrong stuff. >>

and think about what has happened the last 40 years. the focus has been around taking paper records and turning them into electronic medical records. what this partnership does is it is going to unleash a new shock of innovation into the industry. so think about how do patients connect to their doctors and how do they connect to families? it is no longer just about one individual. it is about the community and how it comes together. trillion just in the united states is spent on health care. what we are steering -- seeing .s forces that are changing it countries are going bankrupt because of health care. was the quantified

self in assets from google, apple. specifically, have the changes in the health care law made this possible? >> the big impact of the affordable care act is more of the funding is moving away from just the back office. post worldentering a innovation is going to happen with the providers. >> it gave a lot of funding for medical records. now what you do we do with that? >> the focus is on outcomes. it is no longer about the number of surgeries you are getting paid for or what medicine you are prescribing. it is more about the outcome. it is no good if you go to a hospital and you are back again for the same condition.

those are the perverse incentives. now technology is at the heart of this transformation and salesforce.com, working with philips, when it comes to cat scans, mris, are coming together to advance this new platform that is going to enable developers and third parties to build game changing applications. >> does hit the make this -- hipa make this hard? >> whether you look at sutter health, aetna, the same with philips, they have been using our platform. it is going to make sure, as part of the innovation, that it is consistent with the privacy requirements of this industry. >> what makes it hard? >> you are seeing for the first the internet of things

coming together. historically you did not have that. you had a huge focus on the back office. all of the money went into emr. it is not going to be the legacy of theseecause advances in technology, you are going to be able to build applications that you could not. trends is that consumers have more access to high grade i.t. the stuff their phone can do is so much more powerful. and that therefore a lot more things can be consumer driven. >> absolutely. there are also advances in terms of where the focus of health care outcome and when you look at the technology we are talking about, they are no longer tied

to the back office, emr universe. with the quantified self, were devicest, in your home, you can develop care what you could not before. thank you very much. i appreciate it. facebook releases its diversity figures. how does it compare to others? we will tell the next. streaming on your tablet, phone, amazon fire, we've got it all. ♪

>> i am cory johnson. this is "bloomberg west." after eu ministers said

people can be forgotten online, itgle received requests and is going through them on a case-by-case basis. tech giantse of the that has released its diversity figures following a suit with facebook which released its figures for the first time. company'sf the employees are female. nine percent are hispanic. what is facebook doing to create more diversity, especially for a company that has announced such a desire? joining me now is -- nice to see you. these numbers don't reflect -- i don't know if i expected anything different. a big discussion as the ceo of facebook. >> it is great to see them release the numbers.

it is nice to not have to speculate. anybodyy i don't think is happy about where they are right now. i am a straight white guy. so i lose this conversation. why should people care? what difference does it make? all sorts of arguments around to diversity. you want your creative to yourct the -- you want product to reflect the users of the product. hirenies are not able to enough talent. there is a huge demographic shift going on right now. the year 2040 is one people of color will be the majority of the u.s. is why you're in is called 2040. >> that is right. that is a different workforce. if companies can't figure out

how to attract and retain workers from these backgrounds, they are not going to have enough people to higher. >> i was talking to my friend the other day, he was saying the knowledge of the companies when they are hiring about where to notion, they don't even know. they do not see harvard, sometimes they are not interested. >> it is true. companies are good at hiring an inefficient way when it comes to talent. it is easy to go to the top 10 engine nearing schools. if you also care about diversity, you have to broaden where you recruit. when we go out and find students , we go all around the country to a lot of schools. of the 27 students we have, they come from 18 universities. th of is a real bread

where we go. with the bored conversation of we don't have enough minorities and women. know that. the discussion often is not the products are not going to be as appealing. you are limited in your product because -- you are limiting your product. absolutely. it is a common thing entrepreneurs and developers scratch their own itch. they see problems in their life and they go ahead and solve for those. greatestto solve the number of problems for your consumers, you need to have people that are representative of the people using the product. >> how are you paid? a combination of philanthropic funding, the us at foundation gave grant.

it was lovely of them. interest in the philanthropic community of seeing this problem solved. it is also corporate sponsorship. we help companies think through their diversity challenges, and our students pay for that privilege because they see this as an issue. fromura weidman power, code 2040, which i will never forget now. the world cup has been a huge hit, but will the one-month tournament have a lasting effect? we are going to discuss that next. you can watch us on your tablet, phone, and on apple tv and amazon fire. ♪

>> welcome back to "bloomberg west." i am cory johnson. of anyn essential part

man cave, of course. the latest features companies are trying to push on consumers. one brought to his personal man cave to test it out and see if it is a homerun or another curveball. the world cup is in full swing which means you have to have your essentials on watching the big games. i've got mine. md, i like to call up the doctor, and a big old tv. go tv shopping today and you will encounter curved displays and 4k, or ultrahigh definition. this tv from samsung has both. start with the curve. as you can see, it has a slight bend. samsung and other makers will tell you it is about viewing

angles and creating an immersive experience. mostly it is bunk. actually it can distort the image. why should that get in the way of the marketing efforts? the other feature the tv has is hasesolution which means it twice as many pixels as the best tvs. it should mean better image close itand way up really does. as you start to move away, it starts to matter less and less and then not at all. then there is the question of 4k content. there is not that much of it. this tv comes with a hard drive loaded with five movies and three documentaries. you can't update the hard drive.

so i really hope you like "night at the," counselor." "the t notsmurs 2," bu "smurfs 1." most of us bought a tv the past few years. the industry needs new reason to trade in our old sets for a few ones. , and that tried 1080p works. then they tried to push refresh us, which nobody understood. and 3-d was a flop. curved displays are the next attempt to make us think of the tvs we own are obsolete, which is hard since they are great already. what really matters is what is on. this is my favorite program.

>> i am really worried about sam grobart's diet. that was an awesome piece. if you have one of those fancy tvs, you have probably been watching the world cup. 20 5 million americans watched the added states world cup match against portugal, the fifth highest sporting event. will it turn into long-term ratings for espn? i'm joined by the former chief operating officer of the 49ers and is currently a partner. this tournament, i watched the to becup, this seems really capturing people more than in the past. >> especially in this country. the world cup is the ultimate party. inre are more butterflies soccer stomachs than ever before. whether we have a long-term

growth, the u.s. get out of this group with a record number of people watching in this game against germany and they will build as we move through the world cup if we advance. mentors for years was trying to get a big soccer magazine off the ground. numbers weree the there, guys of my generation, and yet it never really took. >> it has. i happened to be involved in the soccer league, when the new york ked soccer pele spi interest. it has taken 50 years. we have seen slow growth. this is a good business plan mls has. they have shrunk the stadiums, they are selling out, they have created pockets of interest like the northwest, some of the east

coast teams, and the asset appreciation of the franchise has increased. it is starting to get serious. >> man u in the uk. this is in new york. the expansion franchise in new york city is a joint venture of man u and the yankees. seattle, you can't get a ticket. philadelphia. >> you are involved in the nba id the grizzlies in memphis, have been looking at the sacramento kings lately because of the new ownership group. they have talked about the citiesc second tier that have a different metric involved in making the numbers work. what are those? >> sacramento is not as tiny as people think. it is in the 20's.

places like new orleans, charlotte, minneapolis struggle. the metrics are to own the region. the northern california region, create a rivalry with the war years, whether san francisco, oakland, golden state, and their arena will be a major flash point. have will be built and fans before golden state finishes its new place right around the corner. >> i was thinking of portland, san antonio. i huge city. -- a huge city. >> give them credit, for many years that team drew sellout crowds at a high number and then they lost their way. with the new kings ownership, having kevin johnson as the mayor, they've got everything moving in the right direction and they have recaptured the dna of sacramento. city, agot the

municipal bond rating such at a low level. >> look at it, you're going to build a new face on piers 30 and 32 for $1 billion. you are right. >> and the real estate around it. they have a guy who knows real estate. >> it is retail development. you see the giants in mission bay. that is the model for quality civic involvement in sports. want to bring in jon erlichman for our bwest byte. jon? >> it is related. 166%. companiesmanages what are saying about brands online. the first week of the world cup, the references to espn online had gone up by 166%.

youtube, hadtunes, gone down substantially. the caveat is sometimes those are positive, sometimes when you are live stream is not working and you're trying to watch a game, they can be negative. you, doeset me ask that help soccer, is that changing things for the business? >> absolutely. the sport has in made over decades is coming, and be "bloomberg west" lucky charm of having us advance to the next round. you're going to take the credit anyway. it is a good day. the ratings will increase. it is good for soccer. >> andy dolich, appreciate your time. you can get the a-list headlines on bloomberg.com, bloomberg

radio, we will be there. and we will see you tomorrow. ♪ .

>> from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line," the intersection of business and economics with a mainstream perspective. the president's recess appointment power is curtailed by the u.s. supreme court. we go inside the fbi's supersecret lab for improvised explosive devices. and owning a piece of the derek .eter legacy to our viewers here in the united states and to those of you joining us from around the world, welcome. we have full coverage