tv Bloomberg West Bloomberg August 12, 2014 11:00pm-12:01am EDT
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>> live from pier three in san francisco, welcome to "bloomberg west" where we cover innovation, technology and the future of business. i am emily chang. first, a check on the top headlines. apple is the latest tech company to release its diversity figures. its global workforce which includes retail is 70% male, 30% female in line with other tech companies, but 11% of apple workers are hispanic, seven percent are black -- that is higher than other tech companies. tim cook says he is not satisfied and is working hard to improve the numbers. twitter is testing video ads as it looks for ways to increase
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revenues and boost user engagement. it will allow advertisers to upload video ads inside their tweets, similar to what facebook launched last year. video can create a richer and more engaging user experience. shares of candy crush maker king digital are getting crushed in after-hours trading -- this after they cut their yearly outlook and reported smaller than estimated gains in second-quarter revenue. they also announced a $150 million special dividend. shares are down 4% since its march ipo. to the lead story -- former microsoft ceo steve ballmer has a new team to inspire -- the los angeles clippers. he is the official owner of the team paying a record $2 billion for it. this sale was completed after a california court ruled that former owner donald sterling's wife shelley has the authority
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to sell the team without his consent. joining me is trish regan who spoke with steve ballmer and was following this story all day long. what's the latest? >> it's done -- that's the headline here. 3.5 months after this whole situation erupted, steve ballmer is now the proud owner of the los angeles clippers. he was extremely excited when i spoke with him on the phone. we all know he is very excited. you have to think about that clip that we played over and over again with him screaming developers, developers, developers. he is certainly excited and thrilled to be the owner of this team. he told me he is thrilled and he will figure out how to support the team and take it to the next level. you have to keep pushing and pushing and pushing to take it to that next level. he will enthusiastically support this team. i also spoke to dick parsons who was here live on the set during "street smart" shortly after this news came across.
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he is the interim ceo of the team. he talked about the importance of leadership and how this is something that steve ballmer is really going to be able to bring to the team at a time where it really needs it along with coach doc. >> it would've been a disaster. doc and several of the players expressed to me the concern that -- what are we going to do if the season opens up and mr. sterling is still the owner? we cannot play for him. that is a nonstarter so the whole thing melted down, not in an instant, but in a very short time. doc is the glue that holds everyone in. if he left, i am certain we would've seen other defections. >> i did ask steve ballmer -- what is going to happen with doc? will he stay?
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he said absolutely, 100%. he has really gotten to know doc rivers throughout the process and he and doc are going to work to make this team go to the next level. >> what does dick parsons think of steve balmer? i can see steve bouncing around on the sidelines instead of yelling developers, it is go, clippers. >> he said he is going to the game, of course. he did say -- he is not a basketball expert so in terms of designing plays, he isn't going to be out there designing the plays. he will support and understand and occasionally give them some to think about so he will be involved. as for dick parsons and his thoughts on steve ballmer, he said this is just terrific. this is exactly what the team wants both in terms of the emotional support that he can
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offer but also in terms of the financial support. >> steve wants desperately to be a winner. all the people want to be winners, the fans want a winner. i think his energy is going to be somewhat infectious and somewhat supportive of everybody else's desire. then, i am not going to say that steve is going to sit and opened his checkbook because the nba has rules and terms of how much you can spend and how much you can pay to keep some kind of parity. steve will be there to extend that -- his team will not fail, let us put it that way, for a lack of resources. >> you can say that again. it is a happy day for all of them. i asked him about the price and he said, it is what i paid for. he let out a big laugh and it is clear he is thrilled. >> thank you so much. great stuff.
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to another big story of the day -- it is not just new iphones with bigger screens but apple is working on new ipads as it tries to get customers excited about tablets again. apple suppliers have manufactured the new ipads just in time for the critical holiday season. a new full-sized ipad will be available while a new ipad mini will likely be available at the end of the year. this is according to people familiar with the matter. for apple, it is an effort to boost ipad interest. i spoke with gene munster and asked him at the new ipads would be any different or better than the current ones. >> it is probably not going to be much different than the existing ones. the added the touch id sensors to it. they added a less glare screen. i think the big piece we are focusing on is when they will
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make a bigger ipad, something that is more industrial. we are not picking that up in the supply chain now. i would not expect that this fall. i expect that will happen eventually. i think the ipad is still the troubled child here. i do not see some of the changes this fall being enough to really get that business kick started. there are some other things going on that could potentially get that going but as far as this fall, that would not be one of the focus that investors will be eyeing. >> what about these new iphones? couldn't they cannibalize iphone sales even more if they are as big as 5.5 inches? that is big. >> you are spot on. as you mentioned, it is been down 3% year-over-year for the last year and total. be ipad unit sales, that has been a problem. i think there will be cannibalization from this tablet and i think that is a good thing for apple. the asp on this tablet will be around $700. you have higher growth margins, more revenue.
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i think the best thing that can happen is for apple to actually cannibalize their ipad sales within iphone. >> we have seen reports today that apple is speaking with hospitals about potentially integrating some features into health kit which we know is a big feature of ios8 and maybe a feature of an iwatch that comes out this fall if indeed that is coming. what is your reaction? >> we know that health kits and home kit are to lifeforms that apple is going to get third parties to develop to make your ipad and your phone do different things. i think this is important to framework to how we are going to think about apple devices. i would not expect anything that would be game changing in the next three to six months. you put home and health kit along with what is happening with the ibm announcement for enterprise and you start to see how this company can create new uses of technology. i think they are doing all the right stuff.
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i think investors will be satisfied with the updates to the iphone along with the watch in the near-term. i think longer term, those health kit and home kit ibm relationships should yield better units. i think the simple take away is that numbers should be inching up as we get into 2015. >> as we are hearing more about what is in the product pipeline, we know tim cook has said it is incredible pipeline. it is the greatest pipeline in 25 years. another apple executives said that. do you believe it now that you have some clues about what is coming? >> we have thought a lot about that. we have gone back and piece together all the things that we are talking about. i think if you go and check for the greatest roadmap or greatest product releases come i think this is going to be close to it. as far as the number of things that will happen, it will be the biggest they have had in the last 25 years. as far as the impact of the
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model, that is debatable because the iphone transform the company and all of these combined will not transform apple like the iphone did. depending upon your perspective, if you look at it in terms of the quantity of announcements, i think we are spot on. if you look at the substance, it is a positive but not to the same magnitude as the iphone. >> how confident are you that an iwatch is coming and that it is coming this year? give me a percentage. >> i would say 85% chance of it happening this fall. there are still plans in asia. at the end of the day, the only reason why this doesn't happen is for some reason they kill it at the 11th hour which is highly unlikely. >> gene munster, thank you very much for weighing in. san francisco is looking to help some low-income residents stay in the city.
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>> i am emily chang and this is "bloomberg west." evictions are on the rise in san francisco as the tech boom is driving rent prices up. average rent is more than $2000 a month but some tenants with rent control pay as little as $757 a month. mayor ed lee is trying to help low-income residents stay in their homes. he is offering loans up to $3 million for nonprofits to buy smaller apartment buildings, but is it enough to counter the deep pockets of the tech community? i am joined by former san francisco mayor willie brown. my question is -- is $3 million enough when the average listing price of a home here is now $1.7 million? >> no, i have to believe that was a misquote by whoever produced that story. $3 million means almost nothing in terms of addressing the
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housing issue. you need a lot more money than that and ed lee is committed to a lot more money than that. >> you can buy a hubble with that. rents are rising twice as fast and tech immunity neighborhoods as we are in the rest of the city. the most evictions are happening within blocks of these tech community buses where the google buses and the buses that go down to silicon valley stop. my question is what else could be done? is it building more buildings? changing building codes so more housing can be built? is it revising rent control laws? there is so much going on. >> it is all of the above. the most important thing is we have to get away from, in san francisco, identifying the tech community as the culprit. the tech community is not the culprit alone. obviously, that is part of driving the economy, but we desperately need to do all the things that you referenced.
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we need to change the respective codes of the rules on buildings. we need to be committed to a faster response to those who are interested in building. we need to become more creative, using the tech community to help us come up with ideas on how to best do it. all of those things, plus rent control, must be reviewed to see whether or not that is a cap on how and when and where people want to invest. >> $3 million as a direct quote we got from the mayor's office in terms of how big these loans are. >> there is no way. somebody who said $3 million -- it must've been $3 million per transaction because you cannot buy anything of substance in this city in terms of multiple units at $3 million. >> you said a war is brewing in the streets of san francisco and a lot of people could be caught up in it if the tech world does
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not start change. how should they? >> the tech world this change and begin to get people like marc benioff and salesforce.com. people making wonderful contributions in one fashion or another. some are only doing it in silicon valley. they really need to do it in san francisco. they need to use that extraordinary talent and skill to help solve the problems of the city. the creativity of google dealing with the issue involving homelessness could be revolutionary, could be instructional people all over this country if they would just put their minds to it. i believe they will receive new advice from some of the government relation types who are not techies but are relationship people who become part of the tech world. when that happens, the
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transition will begin to evidence itself with good work. >> i want to ask you about robin williams and his death. i know you were a longtime friend of his. how are you feeling now upon hearing this news and what sort of -- >> i was devastated. robin was a good friend. when you lose a friend, it is not like losing some person of great celebrity status. robin was someone whom i could call upon for whatever purpose that might be needed. robin would show up for benefits for organizations like glide methodist church and others. robin would show up at my birthday parties unannounced doing his usual thing. you cannot get him off the stage sometimes. he was just an extraordinary person. at 63 years of age, that genius is lost and i have lost a friend. >> on the question of him doing
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his usual thing -- i heard he was always on. it was difficult to know the real robin williams. i want you to take a listen of a clip of him talking to charlie rose about some of the issues he was facing and also at the same time injecting that classic robin williams comedy. >> i went to rehab in wine country just to keep my options open. you come out the other side -- >> how were you different when you came out the other side? >> a lot drier. and sober and able to experience life. it is pretty amazing. before the heart surgery, one of the more sobering moments. just going -- life is extraordinary, it's a gift. >> what was he like? was it difficult to find out who he really was? >> that was robin williams. he was never any different no matter what. you can be in an argument with him and he would be resorted to
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those same tactics and those same words and all the things that throw you off to win the argument. that is who he is and who he was. >> what is your favorite robin williams movie? >> "mrs. doubtfire." >> me too. i love it. it is so good. we have been reminiscing about his movies all day. former san francisco mayor willie brown, thank you so much for joining us. we will be right back. ♪
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while girls make up 57% of overall college graduates, they only make up 12% of computer science graduates today so what are tech companies doing to get girls excited about it? i got an inside look at how twitter is teaming up with one nonprofit to train the next generation of female engineers. >> turn it up, guys. >> meet brianna, a 16-year-old high school senior who spent the last seven weeks at twitter. she is not an employee, but one of 20 students accepted into girls who code, a program who gives a high school girls the opportunity to get hands-on computer science experience inside some of the biggest companies in technology. >> i didn't know about this, what tech companies are like. people would tell me that engineers, they are basically in cubicles all the time. always on a screen. i see that it is more than that. >> it represents what many hope to be part of the solution to a long-standing problem in silicon
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valley. what is your goal? >> it is gender equity in the computer science area. >> women account for 47% of the u.s. workforce, but just 30% of staff at google, facebook, and twitter. and at twitter, women account for only 10% of the technical staff. >> we are not happy with those numbers. we would like to improve them. that is entirely our goal. >> they're one of 16 companies that open the doors to help make this change happen. >> when i started doing everything i realized that computer science was what i wanted to do. >> a twitter engineer is a girls who code mentor and volunteer. >> as a young girl, one of the reasons you don't get into computer science is because you don't have any idea of what kind of career it could lead to. >> she learned to code at 14 and then skipped high school to study it in college and knows
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all too well what it is like to be the only woman in the room. >> you would come into this class, you would never program before but there are some guys who have been programming since they were nine. >> they want to make coding a lot less intimidating, a lot more inspiring. talented women engineers are in high demand for the hottest jobs. >> i interviewed at seven places and got six. it was good. i worked hard. >> as this summer's program comes to a close, it is now up to these girls to engineer their next move. girls who code also offers programs in new york, miami, boston, and seattle. after fleeing belize and returning to the u.s., antivirus pioneer john mcafee is back in the tech game with a focus on protecting internet privacy. he joins us next. ♪
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>> you are watching "bloomberg west" where we focus on technology and the future of business. i am emily chang. john mcafee made his name creating early antivirus software and years later made headlines again after fleeing belize where authorities wanted to question him in the murder of gregory fall. he is back in the tech game with a company that builds products to protect personal data. he recently spoke about privacy at the defcon hacker conference in las vegas and said google and laziness are the two biggest things eroding our privacy today. he joins us now from an undisclosed location to explain. you did ask us not to tell
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anyone where you are and we will respect that. you say that google and laziness are the two biggest things eroding privacy. what do you mean by that? >> google makes its money, and facebook and almost every online company, by collecting information. they would go broke if they did not do that. the information is where are you, what are you buying and doing, what do you like or dislike? it is an intrusive system that has invaded every part of our lives. it is not just google. most of the free apps you download, you get permissions like you can turn the camera on, listen to you, send messages, read your messages, read your e-mails. it is astonishing the freedoms that we have given up or the privacy we have given him willingly. that is laziness. google needs to have another paradigm for making money
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because this cannot continue. >> you say google is not the only company. what other companies would you point out? >> facebook would be number two, but google is the front runner in the invasion of privacy for the average citizen. it is shocking how much google knows about you. google would have you believe if you have nothing to live it, then why would you care? i have to take issue with that. privacy is a very important right that all humans have. i mean there are some people that may be having affairs. i hear that happens. some people may call in to work and say they are sick or not really sick. we all tell relief goods, we all have privacy's bell i was to lead a tolerable existence. if these things are taken away, if we are practicing an alien religion, we are going to have a
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very bad time if we cannot keep that to ourselves. >> one of things you said you done to protect her own privacy is getting rid of your own smartphone. what is that like? >> i used to change phones every week anyway. i will talk a litte about that. the biggest thing i have done is i have started -- this is why i went to defcon. i wanted to announce my new website -- brownlist.com. it's a way to give power back to the little man. it is a complaint site where you complain about something. i was audited unjustly by the irs. you cannot just submit a complaint, you have to submit a solution. the solutions and complaints go into the pie and asked people read them, they may add their own solutions. these solutions are voted on.
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it is a way to get anger out of the negative arena and back into the positive arena. we already have 100,000 users per day that are filing complaints from everything from a parking ticket, a speeding ticket, exxon is dumping oil in my backyard, my congressman sucks, what ever. you have to have a solution. i will be posting my own complaint that the belize government is trying to kill me. i will put all the documentation, including videos, the whole bottle of wax. there will be a lot of people who will be very embarrassed. it is a well-known fact that people are after me. my security guards -- there was a strange activities and an attempt while we were there. it all stems from belize. there was a company in daytona beach, florida.
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we have a video of a man named jean lewis from las vegas hiding behind a tree with his phone sticking out trying to take a video of me. when he was caught, he ran away and pretended he was on the phone. all of this will go online. this is how i am using my own website. >> i have to ask you about belize. the case had gone cold last week checked. what have you heard? have authorities contacted you? >> i was never charged or even a suspect. they just wanted to question me. i just chose not to be questioned. there were no charges. they just admitted they confiscated all of my property and auctioned it off. it was a lot of property value. it was every penny i had. the u.s. government is happy with me. i have no outstanding warrants. i have a few parking tickets.
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>> why the need for secrecy if you did not do anything wrong? why not disclose your location? why change smartphones so often? >> the belizian government has paid a lot of money to remove me because i continue to speak out about belize. i have all of the government about the corruption there. they do not want that released. it could bring the prime minister or the government down. i have the prime minister on tape ordering the murder of people. they want to silence me. i do not like to be quiet, that is very obvious. i will not shut my mouth. >> beyond the tech products you have been building, you're working on books and movies. what are the status of those projects and who should play john mcafee in future films? >> i don't know who will play me. i hope it is not danny devito. the feature film is coming out
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in, i think, eight months. spike tv is doing a two-hour documentary. they are choosing the director right now. there was a book coming out. paramount is doing one based on josh davis' e-book. i have nothing to do with that one. i do not particularly care for josh davis as a writer. that is their thing. >> message to hollywood -- not danny devito. john mcafee, thank you for joining us today. it is no easy task to run a tech company, especially one in the midst of a huge turnaround. yahoo! chairman maynard webb is giving us a look at the challenges faced by many silicon valley leaders. that is next on "bloomberg west." ♪
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>> i am emily chang and this is "bloomberg west." time now for the office hours segment with yahoo! chairman maynard webb. he sits on the boards of salesforce, visa and yahoo!. this segment is how being the boss is now harder than ever. why now? >> now, the role is much tougher today because it used to be that you could be the hero and everybody bowed down to the ceo.
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that job was never easy, but today, you actually have to inspire and enlighten your old team. everybody wants to be an entrepreneur. they'd rather start their own company than join yours. it is way harder today than it is ever been. >> who has the hardest job? >> i am not allowed to talk about yahoo!. i would say john chen at blackberry has huge challenges in front of him. >> i spoke with john chen before we go on. it was interesting -- i asked him what he thought the chances were of turning the company around. he said he felt 80/20 that he could add value. he also said this -- >> i am comfortable with generating more value. whether it will be good enough to be iconic again, that is something i need to chew on. i don't know the answer to that question.
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>> he doesn't know if blackberry will be iconic again. >> the biggest challenges you take on -- if they were easy, everybody would do them. i am a huge john chen fan. he had a big turnaround at another company and turned it into gold. i would be betting on him. it is hard. >> he also has a good sense of humor through this. i wonder how important that is. >> i think it is important to laugh and not take yourself too seriously. these are hard jobs and you live them. there is no reason for him to be doing this except he wants to make a difference. i am always excited to cheer people on that are taking on tough challenges. look at meg at hp. there is no reason for her to work anymore on anything. she could do anything she wants to do and she takes on the toughest tech challenges on the planet.
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>> do you think she ever wishes she did not? >> i don't want to speak for her. i am sure there are moments we are like -- what the hell did i do? she is inspired by what she is trying to accomplish. >> meg whitman and chen are trying to turn around huge companies. at the same time, jack dorsey who has been running square has been getting a lot of negative publicity lately. another profile about square -- jack dorsey got skewered in a book. how do you handle the bad press? when the press is like pounding on you, how do you deal with that? >> first of all, i have hearing aids for a reason. i can turn them down or up. you should never get too excited about the press when you get good press and you should never let that press derail you from where you're going. people have a different version of success.
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you have to be anchored on coming in every day on the long game and winning against all odds. it is better if the world is running with you and giving you tons of kudos. often times when that happens, you get more than you deserve and you often get way too many bad ones when you are so working hard and you have hope. you cannot let all of that derail you. >> steve jobs often gets a lot of credit for turning around apple, inspiring the troops again. how often does that happen, if ever? >> you saw what john donahoe did at ebay. there are a lot of folks that have done great jobs to inspire their teams. look at linkedin right now. they had some troubles in the early years.
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look at what brad smith at intuit is doing. all these folks are doing a great job of just not leading, but inspiring their teams in new ways. >> maynard webb, chairman of yahoo!, great to have you here. we have new information on the death of actor and comedian robin williams who was found dead yesterday at the age of 63. the marin county sheriff confirmed williams committed suicide by hanging himself in the bedroom of his home just north of san francisco. we will look back at his extraordinary career and the legacy left in hollywood from tv stardom on "mork and mindy" to an oscar-winning performance in "good will hunting" to box office hits like "mrs. doubtfire." that is next. here is a look at the top stories making headlines on bloomberg.com. ♪
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career that spanned decades. he pick up emmys and an oscar. he was the leading man in more than 30 films and his movies have grossed more than $6 billion at the box office. for more on the career of robin williams, we are joined by daniel loria, the managing editor at boxoffice.com. the movies he was in seemed so much larger-than-life. how well did his movies actually do at the box office? >> they did very well. robin williams was an actor who can get hits in the $80 to $150 million range. these midrange hits are not superhero movie numbers but they are the sort of numbers that really elevate the box office. they might not be grand slams, but they are home runs. >> "mrs. doubtfire," my absolute favorite robin williams movie. i was surprised to find out that was the highest grossing of all
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of his movies. he also performed in more dramatic roles from "dead poets society" to "good will hunting" which is the movie he won his oscar for. it was really his comedy, i think, that put him on the map, that we remember, isn't it? >> it did. like many great actors, i think jimmy stewart as well, at the prime of their careers they are able to subvert their personas and take darker roles. not everybody does that. robin williams did that. in the early 2000's, he took roles in "death to smoochy," "one hour photo." he was best known for his comedy but he had a great range of roles and characters that he played. >> i was speaking with former san francisco mayor willie brown who was a longtime friend of robin williams.
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he gave a birthday message that mayor brown's birthday party and he talked about how robin williams was always on, on or offstage. he was cracking jokes, being the comedian we all know. i asked if he thought the pressure to be robin williams is what got to him. he said no, he thinks robin did not believe in his own genius and always doubted himself. in the pantheon of actors and acting, how genius is robin williams? how will he be remembered? >> he is on a great short list, specifically for a generation like mine that grew up watching films like "mrs. doubtfire," like "jumanji." we grow up having him be a presence in our vhs players. this is an actor we grew up with. when we got older, we get to see him in more dramatic roles. he will be on the short list of well-regarded actors in the future. >> from his career from "mork and mindy" to "good morning,
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vietnam" to "good will hunting," it spans so many kinds of roles and different kinds of projects. he was working on a number of different projects, including a potential sequel to "mrs. doubtfire." what happens with some of the things that were in development? >> i understand a lot of the films he was involved in are in postproduction. they are either on the release calendar or looking for distribution deals, specifically the independent films. for a film like "mrs. doubtfire 2," if i understand correctly, it is still very early in the development phase. anything that was very popular years ago that hasn't had a sequel are also on the development stage. i don't think that was in the imminent future, but you never know with hollywood. we will always remember him as mrs. doubtfire and i am not sure audiences would like to see anyone else in that character. in projects like this, it is
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impossible to tell if we would be able to see the film with him had he still been with us today. >> i don't think there can be another mrs. doubtfire. these movies have already wrapped up -- a "night at the museum" sequel, a british live-action comedy. these are movies that have already wrapped. we will see what happens with those. daniel loria, thank you so much for joining us. it is time for the bwest byte where we focus on one number that tells a whole lot. matt miller joins us for the byte today from new york. it better be good. >> i don't know. that's tough. you are making me feel pressured. 5000 is the byte which i think is interesting because not only is that the number that uber guarantees you will make if you are a driver in new york, but also they apparently made at least 5000 reservations at their
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rival lyft and then canceled them. the lyft is claiming that the uber employees are doing this which is a bummer for their business, drivers and passengers. i am not sure if it can be proven, but there is a strong crosstown rivalry. they are based blocks away from each other in san francisco. they wear the company t-shirts to work and do not hang out with each other at the bar after. lyft is offering a guarantee of $10,000 a month to try to trump uber. they are trying to attract drivers as quickly as they can. >> it is brutal out there. those car-sharing turf wars. matt miller, thank you so much. it was a pretty good byte. you can get all the latest headlines at the top of the hour on bloomberg radio and all the time at bloomberg.com. thank you so much for watching this edition of "bloomberg west." see you later. ♪
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