live from san francisco, welcome to bloomberg west will be cover innovation, technology, and the future of business. first, a check on your headlines. cloud storage provider is raising an additional $150 million in funding. people with knowledge of the situation say the latest round buys thebought it and company sometime after delaying its ipo. if you recall, they officially -- originally filed for the ipu in march and was hoping to raise $150 million in the offering. google is temporarily cupping --

temporarily reducing fares for its service by 20%. in the big apple. uber will keep its regular commissions for each ride and drivers will make less per trip so the company claims drivers richard seymour -- should see more riders. tim draper with the highest bidder for a large cache of the bitcoin currency. bitcoins are part of a larger pool. he will join us later. has to our lead -- box raised $150 million in funding and a valuation of $2.4 billion. this according to people with knowledge of the situation. time before more to going public. the cloud storage provider had

planned to go public last month but at the latest ipo. -- it delayed its ipo. time will the funding really buy box? we are joined by leslie in new york. what exactly does this mean about boxes future -- box's futeure? >> to give them the opportunity to wait for better market conditions to do with ipo. million provides a nice cash infusion but the rate is pretty high. it is unclear how long it will take them to go public but sources have said perhaps after labor day would be a good target date. inn most investors are back the summer vacations and people are paying closer attention to the business model. >> their financial situation has not changed. did they make a mistake when

they filed? >> i think they underestimated what investors were looking for at the time they went public. if you recall, it was the spring, there was this big frenzy over ipos. companies were slipping by what less than superb,. box probably they thought they could do the same thing. when they did go public, it alerted investors because they were losing twice as much money as they were making. that was certainly a signal that the quality of punk -- companies going public were not so strong. it sent a bit of a shock wave throughout the tech ipo market. >> they are burning all this cash. they spend a lot on marketing. have the tides changed? are they working on changing those numbers are pretty much staying the course? >> it is unclear whether they are changing their business model, but this cash infusion from them gives them the chance

to alter their business model and little bit -- a little bit. it gives him a chance to play around while they are still ride it -- private. it gives them more opportunities to meet with investors to say, hey, what are you looking for? and make adjustments accordingly. flipside, if their private market valuation which is about 2.4 billion dollars is higher than what public market investors were paid, that would be a negative. >> we will continue to follow box's journey to potentially becoming a public company. apple has poached a senior executive. according to multiple reports, they hired patrick, the former vice president of sales. he joins angela who started as apple's new head of retail and online sales. the hiring could help with the

launch of the widely expected smart watch later this year and apple could compete in the growing wearable tech sector. earlier, i spoke with the chief research officer who covers apple for bloomberg news. i started asking adam what exactly apple is doing. >> they hired this guy who was a senior sales executive from tag to come over and help with their self's effort -- sales effort. adding to the speculation that this watch we coming out later this year. in addition being a technology gadget, a watch is a very fashionable piece. adding this sort of experience gives them the sort of -- another person to help them entice customers to see it as a fashion item. >> if it is indeed coming this fall, why just hired this new person now? >> i think the product has been developed for having been developed for quite some time.

i think the issue here is the distribution. would apple be looking at different distribution channels? premium watch dealers. it would come with distribution experience, channel relationships, and potentially this device could ship there were very different kind of channel, not just the apple store and online. >> there were some interesting numbers about how big you think wearables are going to be. you think shipments will triple over the next three years however forced actually thinks the wearable space is going to decline. >> i cannot comment on forster's number. i am not sure about the thought. our market breaks down into three areas. complex accessories which is a form of wearables. it is a wearable you are very familiar with today like the nike fuel band we've connect with pc or other devices to get your information out.

that is actually the fastest growing. we don't see the wearables market really becoming significant for another few years, even a year out. that is where we get into smart accessories. those accessories are things like galaxy gear where you have apps that you can actually download. beyond that -- go ahead. is sayingve forster a lot of these accessories and ships that can do a lot of things are going to be built into future phones. adam, why would we need a watch at all? >> that is the open question. right now, none of these products have taken off. for apple, we are not talking about -- they want something in the multiple of billions dollars of dollars. in the consumer market, looking for something to make it much more mainstream and take it beyond a technology in search of a problem and something that

your everyday person is going to be interested in buying. >> who is this a this market will actually have longevity? >> what it is going to take to get there is we need to stop the high drink smartphones -- dehydrating smartphones and putting them in to watch like device is. it is very difficult to manipulate and get information out of them. what you have to do is create a device which is an extension of one or two applications that nail jobs people want to get done everyday. they can be around health, the broader health like managing illness and those can be around fitness. the bottom line has to be an expression of you. think about a watch. is it about telling time or wearing jewelry? i would argue it is the latter today. >> more coming up. ♪

>> welcome back. uberx is now cheaper than in new york city taxi. that is the company claiming that ey wills slash prices. the company says the price that price cuts are only temporary but this does reveal it is more about its price -- this does reveal more about its pricing strategy. uber, a company you and i have talked about. what do you make of this? >> i think the are just trying to take some market share in new york. one of the things people do not realize is that in places where there was a good cab service, uber has struggled to gain market share. the only way they can go out and do that is by offering cheaper rates. i think they're opting for

cheaper rates right now. they have customers who love it and customers who hate and drivers who love it and drivers who hate it. is that going to continue? >> i think it will continue because uber represents a company which represent our future where a lot of essential services which the government provided us are getting privatized. as ank we are all, society, afraid of that future where government has less control over how we move around. hat it is.at's w i think that is why people get upset about airbnb and the services that are coming online. it is questioning our idea of what public transport it. behind ato leave class of people. that is the biggest story.

has saidt note, uber over and over again and we can raise prices when we want. is that fair? >> that is free-market. in a way, if you have a service -- it is a busy time of the year, prices go up and prices go down. i think people regulating that part of the process -- it may be a good idea. and legislative bodies are not taking the time to understand what the shift means. they react from a political vote gathering standpoint and not really saying how can we work with this technology change to figure out where the future is and how we as a government are relevant? >> we know uber has a $17

billion valuation. ech,ng followed the where do you see them going? what is next? >> i cannot tell you how big it will become but it is already become part of people's daily life. that is a good sign for company from a future standpoint. they are part of our transportation. think over the next few years, you will see it become more and more prevalent. what it means in terms of valuation, it is hard to say. >> want to talk you about coastal ventures. they have their ceo summit over the weekend. often.'t see that very from both of them sitting down together and i want you to take a listen to a quote from very page. -- klarry page.

>> they say you guys are doing too much stuff and that is true. he is right. it is hard for him not to talk about his voice. it does not sound good. what do you think. ? >> it sound like my voice when i used to smoke. >> does it worry you? >> not really. he has not been a really public speaker. i think google believes morning e-mail and technology communications. >> let us talk about what he was saying which is this debate that he had with steve jobs whether google is doing too much and his argument is -- look, we are not doing too much. what do you think? >> i think both companies have different ideologies.

was steveeve jobs jobs and google is google and larry page's larry page. they're thinking about how the world can ask and i think -- from my standpoint, what they are doing makes perfect sense. to the outside world, it seems crazy but it is not. buying nest or whatever it is. the world of technology has gone from the browser into our lives. they trying to gather as much information about us and our surroundings using whether it is dropcam, nest, android, to figure out how to serve up the best google experience. some of it is scary but that is who they are. a lot of it is just not connected and not obvious, but it all makes sense to me. about google car

and why it makes sense because what they are doing with the google car is essentially the way the technology works and the digital world will come together. the car is a microcosm of that. i don't see anything crazy. they are doing what they are supposed to do. >> we will see if it makes sense to regular people -- us regular people. thank you as always for stopping by. the world cup enters its final week this week and espn is already the big winner. next, our interview with espn president. ♪

>> welcome back. after a wild weekend of world cup action, it is germany, brazil, argentina, and the netherlands advancing to the semi finals. one group is already onwon big -- espn. betty liu got an exclusive interview with john skipper and ask them what they learned in 2010 that is not translating to 2014. >> we applied a lot of the lessons we learned in 2010. of documentaries we did, the amount of international talent. we decided that everything that worked in 2010 will work better because the time zone, because it is brazil and how special it is for soccer. more people are coming to soccer in this country. our average television rating is at 39% despite the fact that is that much up, the digital viewing has been through the roof.

this is already the most strained sporting -- streamed sporting event of all time. we are 70% beyond the sochi olympics. we will be more than double it. >> a want to go through some of the numbers for live streaming. over 3.3 million for the u.s.-germany match. 3.5 million for the u.s.-belgium match. how do you capitalize on that? >> we are because those people who are watching, we are selling ads. >> you sold more? the seven rating should be higher for the world cup. this just means we are delivering. >> it didn't go off without some hitches, as you know. just tod out on twitter

see what people said while they were live streaming. espn stream bad and getting worse. can we start a kickstart her campaign to buy espn s'more server time? time?e more server >> the problems have been tiny. i am sure that tweet came from the usa-germany game we had a very small number of people, some issues. 99 .9% of the people have had a very good experience. you log onto the next game and i promise you it will look great and kudos to our guys. we can now handle an enormous volume of digital users. we had enormous amount of videos. a lot of participants. >> you would say you were definitely well-prepared?

as prepare as you would've been for all the people to click online? >> your research is absolutely correct. it is tiny. our guys have done great. >> does that mean you can see this through enthusiasm translating to live streaming other kinds of sporting events from here on out? >> i don't think there is any doubt. this record will be broken because people are getting used to the idea that they can watch their live games on whatever device they have, wherever they are, under their control and that is going to keep going on because of the importance of watching sporting events live. >> the world cup race -- you are not going to have them in 2018 or 2022. >> you are a spoiler of the party. concentrating on doing a great job. it is going to be a great event. of course, there will be some

regret not having it but that is the capitalist system. we are going to participate. >> does it make it a bittersweet -- >> no. it is so fun and great. the production, all of our people are doing such a great job that i am just going to enjoy it right now. >> thanks to betty liu with espn president, john skipper. he won bitcoins. what does tim draper have planned for all of his virtual current see? he joins us, next. ♪ >> time now for bloomberg television on the markets. let's get you caught up where stocks traded today. u.s. stocks dropping from a record with the s&p 500 index suffering its worst day since june 24.

analysts brought forward interest for the fed to raise interest rates. the dow industrial is down over a quarter of percent and nasdaq was down over three quarters.

>> you are watching bloomberg west will be focused on technology and the future of business. tim draper was the highest hit her on a u.s. government auction of nearly 30,000 bitcoins. a larger pull of the virtual currency that was seized from a website. he beat out 44 other bidders which were worth about $19 million at the time of auction. the we use the currency to help grow a startup he is backing which enables companies to trade and store bitcoins. timing us to discuss, draper himself.

thank you so much for joining us. so, why? why did you bid so high? exciting newvery technology. entiretransform our economic system in over a long period of time. this was a long-term purchase for me. i am very excited about what it can do, where governments are emerging but they have bad currencies. i'm excited about where he can do -- what it can do for the u.s. a transfers lot cheaper than using one for a credit card. i am excited about what it can do for the speed of money moving across borders and around the world. it is really exciting and i think everyone should be trying it. everyone should go by a bitcoin and see how it works. borrow them it or

and set up an account. re isry spending it -- thes a great company called snap card which allows you to buy it on any site. you can buy things on any site with bitcoin. >> what was the winning bid? we know that were worth about $19 million. we heard you paid a bit more than that. >> i bid more than all the other apparently. [laughter] that is the way it goes. there are so many people who can really benefit from this. there was a company that is in argentina. argentina loses the entire value of the argentinian peso every three or four years due to

insulation -- inflation. they are solving that. there is a project in africa that is doing the same kind of thing. in mexico, there is one called coin cove. a lot of interesting companies that are really trying to transform the emerging economies. you mentioned that one company -- but do we need more big companies like amazon, like starbucks to start accepting bitcoins to enable it to survive as a currency? effect, you can go to amazon and buy things. it is already happening. and, there are many companies that are making a great press announcement. i've noticed a few since i have decidedbid that have

they're going to also accept the bitcoin. it is happening. it is a new ecosystem and it is tiedpowerful that is not to the whims of a government. if you are not comfortable with your government, bitcoin is a great hedge. in fact, i think any institutional investor needs to hold some bitcoin because it is a possibility that this becomes the main currency of the world. >> why don't we have a big national exchange in the united states yet for bitcoin? >> there are. all these things do take time, but there are -- you go to bitme.com and there is an exchange which is happening in real time. i encourage you to all go and

give that a shot. saying thisle are was just a publicity stun t. bitcoins are not necessarily that useful in developing countries that maybe they need liquidity for this bill is best -- business. what is the real story? >> this is a really exciting time for people in governments that are not competing well for their citizens. this is a great opportunity for those citizens to go do real commerce and more efficient real commerce than they could with their currencies. this is a great time for them. i have noticed throughout the third world, people are using bitcoin very often. that is exciting for me, exciting for the ecosystem, and it is really exciting for those

people in the third world war actually rising up -- who are actually rising up because they will have the most efficient currency system in the planet. >> what are they using it to buy? >> anything. pogos, the are using bitcoin to make quick transfers. into convert pesos bitcoin because they have more faith in that. >> what do you think is potential for an alternative currency, and no other alternative currency to replace bitcoin in the future? >> i think bitcoin is really the leader and will be for a long time to come because there is a real network. if people are trading bitcoin and buying things in bitcoin, it is going to be harder for another currency to come up. that was my conclusion in bidding on it.

was speaking with reid hoffman, the cofounder of linked in any says bitcoin is actually the number one trend that is on his mind lately. he is thinking about it, you were thinking about it, but you spoke to so many business leaders across the country. on the people that are not the bitcoin bandwagon, what is the biggest hesitation? what are they worried about? >> they have to try it. it is very simple. you go and buy a bitcoin and once you bought it, try to spend it and use snap card for that. it is not hard. then, we will start saying it is not bad. actually, it is more efficient than using a credit card or dollars or any currency that is tied to any government. this is a very exciting time. it is a technology that i see

coming up that really has an amazing future to which. it. i am very interested in financial technology, new financial technologies because i think the banking world and the investment banking world and the venture capital world are all going to be completely transformed the next three or four years. i think bitcoin is one of the technologies that makes this very easy to happen. through bitcoin, there are now smart contracts. there are companies that are doing sub ledgers like a network accounting system where if i buy something from you, both of our sub ledgers get updated automatically. e-shares keepsd track of all your shares so they don't have the go through many

iterations with lawyers and accountants every time some shares could move from one place to another. transformative to finance as the internet was to information and communication. >> ok. tim draper, we will talk about more where you are placing your other bets. tim draper. stay with me, more with tim draper next. have seento aereo, we many tech companies face regulations. what companies are worth the risk? draper weighs in next. ♪

>> i am emily chang in this is bloomberg west. l.a., a stolen exploded in flames after a high-speed chase ended

when the car collided with several vehicles and a light pole. the drivers currently in critical condition. a spokesman told bloomberg west the investigation is still in the hands of l.a. police and fire authorities, but tesla is ready to help as needed. to better understand what happened, tesla has requested to take a look at what the vehicle. >> tesla is one of the bold investments tim draper is made over the years. aereo, what are the risks of technologies and ideas? back with me is tim draper. tim, welcome back. when you hear the stories about tesla cars, they have had issues with fires before -- does that worry you? think there are far fewer tesla fires and there are gas powered fires. i think it is actually scarier to be in a gas powered car now.

your general question is a good one. i think it is that incumbent can afford lobbyists who will then sometimes stifle creativity and progress. i think in a lot of cases that happens. whereas a startup does not have a lot of lobbyists and does not think they have to go change things in washington in order to create their new technology. threatens anlogy existing inc. -- an existing industry because it is a better way to go for the consumer and everyone, then that threat is ofetimes -- instead competing in the marketplace, sometimes companies will go to washington and try to get a law changed. actually, that brings me to california. the reason that i created it

because i feel that governments are not close enough to their people now. closer it needs to get and more relevant to the people in that region. like silicon valley's red -- government would be very different from a government in central california or one in los angeles. youn that note, tim, invested in a number of elon musk companies -- tesla -- co mpanies that could have big rewards but differently have bigger risk and regulatory issues. how do you weigh the pros and cons when you're making those kinds of investments? fortunately, as a venture capitalist investor, we have a portfolio approach so occasionally some of the companies will go out of business.

however, in the cases of backing elon musk, he really is an extraordinary man and has done amazing things for our society. space x can launch a payload into space for 1/200th nasa launched the exact same payload. tesla is great for the empire meant. -- for the environment. itis unbelievable how well balances because the batteries are balanced throughout the car rather than having one big gas engine. awesome if you want to do another startup. i will be ready to back him. >> is he the kind of guide that will actually listen to your feedback or do you just give him money and you does whatever he wants? >> pretty much both. he listens to feedback. i would just give them money and

he could do whatever he wants. he did do something -- he made public the hyperloop idea. i think his hands are full with spacex and tesla. he had this great idea for the hyperloop. got the students focused on the hyperloop and coming up with good ways to actually make the hyperloop happen. hyperloop is a very high-speed train that was planned to go from san francisco to l.a. and back. great -- what he does is he thinks big anything to the future and then he says -- this could happen. then, most of the people say, that will never happen but a few people gather around him and say how could it happen if we wanted it to happen? that is the way his businesses grow and thrive. it is so exciting.

it is wonderful to have them on the earth. >> tim draper, thank you as always for joining us today. >> thank you for having me. anybody 18 to 28, go to draper university. >> thank you so much, tim draper. amazon streaming television service land a big name in kids programming. we go inside the latest project from the creator of "blues clues." ♪

>> welcome back. amazon has been ramping up original offerings for its instant prime seat -- streaming service to compete with netflix. recently, amazon studios release its second original kids the show. jon erlichman has more.

is reallysantomero known in the world of kids programming with shoes -- shows like blue's clue and this new show creative galaxy was made for amazon as an original. my first question for her was why go to amazon with a show like this? been a huge amazon consumer for a really long time, but really it was because of the head of amazon kids. her idea and vision to create a great -- a creativity curriculum and bring that the kids fit so well into what i wanted to do with the program. >> just to be clear -- this is a show that is not dumbing things down. the first episode you talk about art. noton clearly focused on just kids programming, but educational programming. >> exactly. i have a background in child development. we researched everything we do.

all ofexposing them to this expressive vocabulary in making the process of creating crafts and try to solve problems with art. we are showing picasso and van exposing kids as much as possible to an amazing art curriculum. process ofas this launching into original shows where they will pick up a pilot, show that pilate to their viewers, get some feedback, and then make a final decision. what did you learn as part of that process? >> it was a huge focus group. we go out and talk to kids all the time and parents and for me, it was really about listening and learning but the bigger audience, in terms of what people wanted. i was sitting there per forever while the pilot was up just recording but people were saying in order to make a better show. it was exciting, interesting, and a little bit nerve-racking.

>> it is interesting. when my daughters are watching cable, kids programming on cable, and a lot of times there are stuff they want to buy because they are seeing advertisement. in this case, you are not really exposed if you're watching through prime. i kind of find it interesting. sells is a big place that a lot of stuff, but there is a difference between the experience through a service like prime and watching traditional cable. >> preschoolers or kids in general can get what they want when they want it. what we have been able to do is inspire kids to actually go out and make stuff after they watch the show. the music, everything is really all around this idea that we want kids to go out and be able to make something that they might have the materials for in their kitchen. we are trying to get them to go out and make stuff. bingedo talk a lot about

viewing but when we talk about binge viewing, we talk a lot about it with adult programming, maybe less with kids. as a creator, what do you have to think about now knowing that it is quite possible that kids are going to be watching maybe three episodes at one time? that atnt to make sure the end of the day, kids are learning so we do tons of research to make sure our goals are being met. i feel good when they're watching the show. i know they are getting something out of it, but also you can pick and choose. we had a little boy tell us the other day he had been learning about van gogh and so he wanted to watch an episode about him. you can pick and choose which is also great about having a library for you. it might not be binge watching, you might be pickier about what you want to watch. we hope everybody is watching all of them as many times as they would like. creative galaxy

trader, angela santomero. >> that show streaming now which i believe is related to the bwest byte? one number that tells a whole lot. the byte. according to research, out of the 75 top-rated shows and television over the last four years, 12% of them are making their way to amazon. they are not just doing original shows, they are buying the rights to existing tv shows to have a lot to offer. >> i have to tell you as a customer when you can watch at some of the shows for free, it is pretty sweet. how big a competition can they be to netflix? >> netflix is still obviously having the lion's share of that content but amazon is willing to spend. a bit like a cheap prices for customers but they are spending big bucks on the stuff. >> thank you so much and thank you so offer watching this

edition of "bloomberg we see you later. ♪

>> welcome to "money clip." herbalife is fighting bill ackman over the legitimacy of its business and fighting some of its own customers as well. mexico is cruising to latin's number one automaker ahead of brazil. in sports, he is number one, novak djokovic and he talked about what it is like to winning wimbledon. the head of espn has a victory lap on his own. our innovation story, the brave new world of robots and artificial intelligence.