>> live from pier three in san francisco, welcome to "bloomberg west" where we cover media, technology and the future of this is. it has been a decade since google went public. we have a special look back at how google has in -- how google has evolved into the world most -- the world's third most valuable company. at an attempt to look google's self driving cars and the extension of human life. steve ballmer is off to a rousing start as the owner of the los angeles clippers, holding a pep rally as only

steve ballmer can. we've got an exclusive interview with him where he tells us how he justifies the record to billion dollar purchase of the club and what he thinks of the controversial move by his replacement. and we have some ridiculous steve ballmer video clips. hackers in the community health centers feeling data on 4.5 million patients. the cyber attack is believed to have come from china. 10 years ago today, google started trading as a public empathy on the nasdaq, selling 19 million shares at $85 apiece. wasn't your everyday ipo. i remember covering it quite well. the whole deal got interrupted because of a playboy interview published during the quiet time. the filing started with the word google is not a conventional company. when google went public, it went public through an interesting

dutch auction at the time, pricing lower than expected. stop,ter that unusual shares never fell below the ipo price. 600,, they are at following a split last year. emily chang has a look at the golden decade of google and what may come next. >> over 100 billion searches a month. 1.1 billion android devices activated. five point 5 million gmail users. those are just some of the numbers behind google's staggering success. in his first decade as a public company, they've grown from 3000 to 52,000 employees. 17 times its ipo valuation. on the way, google has become a fixture in popular culture. the name, a twist on a map -- on a math term has turned into a

verb use around the world. whether at home or on the move, google products find -- help people find where they are going, what street and mountains look like a world away. but the core remains search will stop the company commands more in the u.s. and google is still not satisfied. >> when i think about search, it is such a deep thing for all of us. world'sstand the information, we are still very much in the early stages of that. held google become an advertising juggernaut. with all of that cash, google has branched out big time. it bought youtube and grew it into the world's largest video site. world's dominant smart phone platform. >> they're more than 1.1 billion users of android and we activate like a million and a half a day. >> but there have been challenges.

user tracking, scanning e-mails and minute relating page rankings. x the main thing we need to do is show them what data is being collected. >> for google, awareness means thinking about the future, reaching for the stars with its google x lab. fax this is about doing ran new, , making science fiction real. >> these so-called moonshot think who -- include google .lass and self driving cars even trying to identify what the healthy human being ideally would look like. rush to the world's largest search engine, they have become a company searching for breakthroughs people have only dreamed of. >> let's take a deeper look at google. this charlesto do dickens style. we're going to do google past, google present and google

future. i have three people who helped build google into the tech giant it is today. one of them developed google's maps and the google map cocreator. and the former group product manager joins us. operatingrmer chief officer from google europe and the ad knowledge ceo. you were the one who was not there at the time of the ipo. in the advertising business, what did people think of google 10 years ago when it emerged on the scene? >> 10 years ago, google was really misunderstood. selling things based on clicks and pricing per click and understanding the economics of digital advertising was something people were not used to doing. google did not just had to invent an ad unit, they had to think differently in terms of our ally and digital. >> you were there at the time of the ipo. we're always talking about products and ipos and the stock

market and stuff. was a fairly amazing moment but what do you think the world lot of google let that time? >> hombres went public a little bit earlier with less information known about them. there wasn't as well-developed secondary markets. those were not available back then and so when google went public, it was the first time people really saw -- >> i remember seeing the numbers, i was covering the numbers and they were just phenomenal. >> people were incredulous. people did not believe it could be that good. people were just in disbelief. it took a number of years of being a public company before people realized it was a sustainable business and realized it was for real.

it is hard to describe. all these companies get so much press and they're so much knowledge about their financials ahead of the ipo. it really is different times. but what were you doing at the time? >> i was with the original google calendar team. it was the first application built after the launch of gmail. i joined a few months before the ipo and worked on the team and watch the account. x at the time, there were some any parallels to yahoo! and there was the story of how yahoo! owned a stake in yahoo! and screwed that up during the process. they essentially owned a piece of the company but launching the calendar business was interesting because that presaged bigger plans to do a lot more and be in front of users in more ways. is that heart of the calendar? >> google had a mission to organize the world of information.

it sounded cheesy at the time but the founders had a broad mission for what that meant. information about what people kept in their calendar. they could give you unlimited storage in your mail or let you do it in interesting ways. theid you have a sense at time the advertising world was changing and going online and even into search? sawt the time, people online as an interesting sideline. but to show you how seriously people did or did not take it, it was given to one person, maybe not the best person. it was not something where agencies said we have to get this right. maybe that interesting, we will throw a bit of money at it and see what happens. if i spend money buying clicks, i can build my brand.

year journey, five to really educate the markets. >> i remember at the time i bought one share -- maybe even 100 shares because i could not get any information. they would not give out information's, so i put into shares and i got in on the communication that way. i got it at $85 and sold it at $99. and my friend said now you know what it's like to put -- to be a smart hedge fund manager. there was a notion of getting rich quick. the proceeds to charity, i should also point out all stop what was it like to be part of the ipo and have all the friends and family thinking you were warren buffett? >> that's the interesting thing. people read about larry and sergei becoming billion heirs. so they extrapolated we must all be billionaires. withof the people we work

as their first job out of college, we were focused on products and said to have that financial windfall where we could afford a house in the bay area like no one else was a real blessing. for a lot of us, it was a formative company in our careers. no matter what they worked on, -- weooked at it until really learn how to make technology and products and it was something that established a nice financial base for our families. it was -- it really cannot be understated. >> i look at this picture of me covering google -- this had to be at least 10 years ago. we will look at google presence after the break. we will talk about where google is today and what that business

means. stick around. ♪

>> i'm cory johnson and this is bloomberg west. aogle may have started as search engine but has gone into everything from search to elegy to android phones. has moon shots, as they call it, science fiction things like a self driving car. here to talk about their current project successes and challenges are my guests, a former project manager and the former coo of thate europe will stop sort of aspect of google plus growth is underappreciated. >> yes. google's international revenue is half of all of its revenue. it was phenomenally successful. google germany has a much higher market share outside of the u.s.

than inside. that is important because if you think about the folks on engineering, it will be the same costs whether it's international. it has half of its revenue coming from international funds a lot more innovation. if they did not have that international revenue and had the same infrastructure costs, they probably would not be making much money right now. >> i will totally disagree with that. i would just say they would spend less money if they had to. on a totheir focus spend and how much to spend? is profligate -- hester mendez office. how do they think about spending more on google? >> when google started growing large, it was after the dot, double growth will stop there companiesne or two

actually hiring. but that was the time when everybody is pulling back. but i have all the best engineers, the best business people from the best in the valley because there were not a lot of jobs left. at the time, the press criticized google a lot -- >> not me. >> a lot of people did. one point, around 2006, it into this 80, 15, 5 -- 80% of resources spent on search and product related to spent ond ads -- 15% things like google maps or google news and 5% on out their projects -- things not directly related to google's core businesses. that changed a lot after larry page took over as ceo of. a lot of their core products --

>> i think when we started bloomberg west. >> exactly. a lot of these moonshot explorations are being done and there's a little more iterative project development with a focus on unifying their product line. >> was there always a focus in terms of new products to get to a product? -- projects to get to a product? >> when i was there, i was not in the picture at all. it was getting to scale in terms of a product. >> let me unpack that a little bit -- make something big and widely used? >> part of what is interesting about google is you can't make an interesting business unless you have a product people use. focus was getting something

lots of people love them lots of people used. oflet me ask you in terms meaning in the coin, what was the approach in the last five or 10 years about ringing in money and selling ads? workst's exactly how it -- google build something consumers like and when she got a decent audience, say how do you make money? is to push fast, iterate fast and say this is a pre--- this is a free product and it's ok to serve the ads small, how did you get the right ad to the right consumer at the right time? does it hurt the consumer experience yes or no? does it ramp up slowly once we work out the right model? >> sit tight.

i want to keep the conversation going. we're going to throw it into the future and talk about those moon shots like self driving cars. allextending human life -- of that from google. we shall see when "numbered west" continues. west" continues. ♪

>> i'm cory johnson and this is "bloomberg west." google started trading as a public company 10 years ago today. i remember it well. the company has changed, looking very forward into some interesting things. let's talk about google's future with the same crew we have been why doesith will stop google do this stuff that so far from search?

>> i think larry and sergei met while doing their phd's at stanford. i remember the most distinct feeling i had was how ambitious and academic it felt stop people were willing to take complex approaches to complex problems and not be intimidated by the prospect will stop the culture of google is unique and they are technologywork on companies that scare other companies way. it's a credit to them that they are willing to continue to invest in. if you look at the mess -- the missteps like xerox where they were unwilling to commercialize any products -- >> like the mouse. >> the classical user interface. iogle, to their credit -- make fun of google glass as much as the next guy, but it is interesting how much they are taking these research

developments and trinity products will stop it reflects well on the way they approach research and development which is different than other companies where they are off on the side. >> there's a post to use a certain percentage of their time working on a vanity product or a product they love so much, but peter lynch is a great money manager and wrote up on wall street -- he talks about how companies try to get into areas where they are not good and away from the core competency. when you see these futuristic projects, do you see a risk of a company losing track? >> at the time when i was at google -- we did not call the moonshot that the time, but projects like street view comes to mind -- they were just in their early stages. a stanford professor came in with this idea to drive a car with cameras on it and take actors run the world. but they were excited about and

kept on it after setback after setback. now google has the world map in a pretty impressive way. about me ask you advertising technology. greatestto me the technological innovations are all about ad technology. >> yes. i'm not sure i would agree. google is innovating all sorts but that is clearly where they make their money. if you say where has google innovated in a way that creates a lot of shareholder value, search is number one. if you think about where google is going, to really make a difference, tied at $10 billion business into what they do now because that wouldn't make a difference. the next $10 billion business is probably youtube.

but some of those other subjects might get there. >> the former chief operating officer in google europe and the former product manager and one of the inventors of google calendar. tank you very much. as we celebrate google's decade as a publicly traded company, we're going to look ahead and talk about the future of google's estimate. steve ballmer made his debut as the owner of the l.a. clippers. wonderfult some monkey boy like steve ballmer moments, coming up next. i promise. >> it 26 minutes after the hour which means bloomberg television is on the market. stocks are trading higher after we got some economic aid is showing inflation is ready much subdued. housing starts rose to the highest level in eight months. speaking of the housing sector, -- stock to tell you about

raising their forecasts as sales of seasonal merchandise in home depot, getting a boost from rising home prices, encouraging customers to spend more on renovations at him. we will be on the markets again in 30 minutes after the break. next.bloomberg west" ♪

>> welcome back to "bloomberg google's're marking 10th anniversary as a public company and we continue to look at what's ahead for the search giant and for all of us. done everything from glass to self driving cars -- they call them moonshot and it's starting to reflect the future of technology itself will stop joining me via skype is the clarify ceo, and artificial intelligence startup. he interned at google's machine learning lab. also joining us is an m.i.t. robot assists and professor who took the self driving car out why doest ride will stop

you think google is doing this? >> i think google is doing this because driving is such a transformative technology opportunity. i think it has been valued as a trillion dollar business if they could succeed. tackling that will push the frontiers of machine mapping and the ability to bring search into the physical world. the opportunities are enormous. why an you think about advertising technology company is doing things like robot, cars and so on? i don't think they are just an advertising or search company. they could be targeting ads, it could be helping people find -- they coulds

to do that. >> in terms of machine learning, it's something that's important -- but we rarely talk about here on bloomberg west. can you help explain why you see that in other pieces of google's operation? >> they have been doing that to and the amounton of data google's and -- google and companies like facebook have acquired, by developing what they called the learning, which is almost an end -- almost a virus infecting the academic community -- it is that powerful. dividing the ability to mine and exploit the data google and other companies have to make better protections and translate that into useful services and products.

as theou see advertising ultimate all of all of these things, whether it's learning to solve problems in the desktop computer world or robotics? >> i don't think is the ultimate goal. it's one business model and i think there will be others for google. machine learning is at the core of the technology. cars,zing self driving that's a different avenue. >> what is artificial intelligence meant to google? ofi think it's making use the extreme amounts of data they have collected. making it more useful to the end-user.

applying sophisticated it's where they are incorporating great research and sophisticated algorithms all around. >> to what end? where do you think they go? increasingly applying that artificial intelligence to do what? >> it's about improving the way users interact with data. andmproves people's lives that's valuable not only to google but the end-user. >> what do you see google doing in the future? them doing some crazy robots from one company they acquired. how will we look at this company 10 years from now if it indeed

exist 10 years from now? >> exciting thing is it's bringing this technology into the physical world. one noted robot assists called it the science of robotic work -- imagine things like fulfillment orders will stop >> the science of rogue ramming work? >> yes. anything that can be done through robots that are -- that can physically interact. the opportunities are enormous. abouts amazing to think 10 years ago the financial event of a weird ipo done through a dutch auction -- where were you 10 years ago? did you imagine you would be working on this kind of work with google? i was building underwater robots at the time. i try to think 10 years from

now, i think there will be more robots in our everyday lives. a big question is how you achieve this physical scale up. they have this amazing mountain view and i was blown away when i drove in the google car last month, but scale up and bit -- scale up in bits is one thing. i think that we will have robotics -- i'm not sure it will be a science fiction movie but google andolks at elsewhere will find ways to do you -- to do useful things and that will have a value and lead to uses we never thought of. much will stopry steve ballmer makes his debut as the owner of the l.a. clippers as only steve ballmer can. we will hear from a former microsoft ceo and what he thinks about the new management at microsoft will stop you can

watch us on bloomberg.com and apple tv. ♪

>> you are watching bloomberg west, where we focus on innovation, technology and the future of business. retired microsoft ceo steve ballmer paid a record-breaking $2 billion for the los angeles clippers and now with ballmer-like enthusiasm, he's trying to turn this long troubled franchise into a champion. but you've got to be a big clippers fan now. how was it? >> he was really excited. i talked to him right after the deal closed on the phone just last week. we sat down for an interview shortly after he got off the thee where he was rallying fan base. he is really excited and we

talked about a lot of different things, not just the clippers -- we talked about microsoft and what he thinks with 18,000 people being laid off and nadal at the helm. we talked about his efforts to try to do more in terms of gun regulation, so it's been a lot of different topics. but i did ask him, $2 billion -- that the lot of money for this team. know, with the way valuations are these days on everything, especially technology, i think it's worth it. i would not have made it if i did not like the deal. i was the high bidder -- we know that from the process. i think this is exciting to me. i think the brand is tremendous and the opportunity is fantastic. i think the nba will be an appreciating asset and there's

little chance -- up goes the nba and l.a. is a unique market and a phenomenal opportunity. when you look at tech companies with no earnings and huge eluate shims and a lot of downside, the clippers look like a really well valued team to me. are companies with market caps of $150 billion that make money. >> what kind of business team are you looking to put in place? >> we need somebody to lead the clippers this is function. there is no one in that job on a full-time basis. >> what is your leadership style in hell is that applicable to what you're going to do with this team? >> i'm and easy ethic, passionate, optimistic leader.

i won't say i micromanage, but i do ask a lot of questions. that is how you push to be better. all of those things work in the business. when i joined microsoft, there were 30 million people in the couple million in revenue. almost between $80 billion and $90 billion in revenue. well.orked for he do those same characteristics apply? desire to be better, optimism, enthusiasm, passion, those same qualities work for he well but the first job is to get the right people at lace because i'm not the expert. placee to have experts in who can run all the various parts of the clippers. >> you talk about leadership and growth microsoft sought while you are there. such ald you grade what nadal is doing right now? >> i think is off to a fantastic start and stop we like to

pretend it's a short-term game but it's a long-term game. in years. get told but for six months on, i love him and his work, from when he worked for me. he's had a heck of a good six months but the truth is it's going to take years before we really know how well he is doing, but i'm excited. x 18,000 people were laid off. >> that was a decision driven by the manager team. boards don't run companies. >> it was his decision. we knewwe bought nokia, there were redundancies and things that needed to be done about but he dove in and decided what that looked like and used that opportunity to make some other changes he felt would streamline and make microsoft better. job,s why we put him in a to run the company. the ceo runs the company.

if the board does not like the job the ceo is doing, the board can change the ceo. -- just like the ceo deserves board support, i'm here to support him. >> he did say he has every intention of keeping him on -- they have dealt with all of this controversy. >> he's doing great things down there in l.a.. i've covered steve homer for a long time. he's one of the rare ceos who has a great physical presence like some athletes. did he seem to be cognizant of the monkey boy image he has? looking at this -- there are all of these great moments from steve ballmer. he's going to be quite a

cheerleader. i asked him where he is going to sit because that part of this whole thing. i asked if he's going to be courtside and he said i'm going to be there, i'm going to cheer. so we've got a lot of interesting things to look forward to on the sidelines. >> i hope to be on the side cheering against them. trish regan, great to have you on "bloomberg west." let's head to mark crumpton, also on "bloomberg west was covert look at what's coming up at the top of the hour. >> we are going to continue to follow the situation on the ground in iraq a day after government forces and kurdish troops backed by u.s. airstrikes seized control of the mosul dam, a strategically important lace. we will have an update. them interesting housing data coming out today -- such an important driver in the economy.

what are we learning there? >> this jump surprised economists. is has housingw in the united states regained momentum after two months of declines benchmark we will have details. >> thank you very much. coming up, hackers at a major u.s. hospital company. more than 4 million patients us personal data was stolen. we will tell you may be behind the attack, next. ♪

>> welcome back to "bloomberg than 200ckers hit more hospitals across the u.s., mainly in the south. the company says they stolen social security numbers, birthdays and addresses of 4.5 million patients. one cyber security firm believes the attack came from china during the months of april and

june. from streaming video to crowd source images, technology is playing a central role in telling the story in the protests and ferguson, missouri. what technology is being used by citizen and law enforcement as well? of the safesidents joins us. talk to me about -- we talked how the technology of twitter and facebook is helping spread the story of what happened in ferguson. doing inaw enforcement those regards? >> law enforcement and the public can use mobile technology to essentially share photos and videos in real time will stop they can geo-tag and map the content so it is actionable and malleable. >> what do you mean actionable? >> being able to crowd source

the content and share it with others is a valuable tool for law enforcement and public safety and communities as a whole. they can share that information and receive it in real time over the >> i don't know if it's my facebook feed, but this story has touched a nerve with people and they are coming out on social media talking about it we have seen channels up by independent journalists covering what they should see -- >> we should talk about what this is for people who don't know -- you have live streaming video or people become their own broadcasters. >> that's right. we have an easy service that lets anybody go live from a mobile device to an hd broadcast like you do in the studio. we are seeing four or five for an independent citizen journalists covering events as they see them on the ground. them tolly easy for start streaming that way and they are providing their own

commentary and point of view which is something we are pleased we have found a way people to use it. >> is it safe to say there's one point of view or is it diverse? >> it is somewhat diverse all stop the people who tend to initiate those broadcasts are showing what a is like for individual citizens on the ground. that is something overlooked by mainstream media, certainly in countries outside the u.s. >> air is a sense that this is uncensored -- that is more raw than you might see on a broadcast network. >> we have seen that many times. when everything was kicking off in ukraine, number of citizen journalists started setting up cameras to share a very raw and uncensored view of what was happening. >> talk to me about the business of what you guys do and how that changes event like we see this weekend and ferguson. >> no matter how many cameras there are at any given location,

they will never be as close to the action as people armed with smartphones are. there are 2 billion smartphones worldwide and people are lee engaging in these types of events. >> engaging in what way? bigel like there's a great is this opportunity presenting itself, not to be callous about the horrible situation on the ground, but there is money being spent and law enforcement agencies figuring out what they're going to do in the future. i wonder how that changes the technology question mark >> the public has demonstrated that they are not only willing but capable of supporting the communities with smartphones technologies by sharing information and that is what this is about. it's about being a good neighbor and supporting each other. >> it doesn't feel neighborly what is going on there. let me ask in terms of a business opportunity, how do you

guys generate revenue from this is this and how does it change with what is going on in the story? >> it's evolved from what citizen journalists are using to a platform that can get across that they share were -- they share widely. there no longer dependent on the media and if it's interesting enough, they can share what they think is important. that is the business opportunity , to enable let sharing some businesses can connect with their customers. >> thank you very much. time for the bwest byte, where we focus on one number that tells us a whole lot. i have no idea what today's number is. what have you got? crossedillion -- apple $100 a share today for the first time since 2002 -- i'm sorry 2012. ae company inching toward

record because investors get pumped up for the new iphone. i told thehe stock, story earlier -- so i could get more information about the dutch auction that wasn't available. i thought i was a genius for selling it at $99 on that eight. charity,e profits to but i could have given more if i had waited. theirent to one of shareholder meetings and met a couple of retired teachers who some apple stock when it was in living onnd were now their retirement on the stock. it has treated people well. >> it is an amazing thing, this company coming out of nowhere, it's just another search engine but it's become one of the most dominant businesses in the history of the world. you can get the latest headlines all the time on your tablet, or

bloomberg.com or bloomberg leo. we will see you tomorrow. ♪

>> from bloomberg world headquarters in new york, i'm mark crumpton. ."is is "bottom line forces increased attacks against the islamic state militants. home construction in the u.s. rises to its highest level in eight months. and the new owner of the l.a. ballmer, rallies the fan base and speaks to bloomberg. to our viewers in the united states and those of you joining us froou