>> from new york and stanford -- reshaping our world. interviews and intersite from stress so make. matt maloney. we will start with twitter ceo

-- >> who want to leverage the great work these finders due to the stories and for the viner's who are able to build a career off of all the fun things they were able to do with the platform. >> do you find yourself competing with snapshot? >> i think of it more as this

unique platform we have developed and also, there are the stop motion animation experts, there are these comedians, there are these vine magicians being able to leverage their talents, crossed the twitter ecosystem, we think it is really cool. and by bringing an niche on board, we think we can do this just -- not just on vine but along twitter itself as well. >> there's so much energy around snap chat and vine.

as you will learn the best of show its was on

>> one of the things i've been

talking about since we were on the ipo roadshow was bridging the gap twitter, and new users have come to the platform, they just saw it on tv they just saw this thing is happening, it is all on twitter. they sign up for the platform and i can't find the right account to follow. >> the short answer is yes, i love the team that we have in place. i've been particularly enthused by the way my reports are building out their bench and

bringing other leaders into the company. we just had a couple more to our leadership. that is something i'm asking about, and exciting about. >> do you feel like you made mistakes in these previous incarnations? >> i always tell my leaders, it is your job to always improve your team. your job is not to defend your team your job is to improve your team. that is something i focused on and paid careful attention to. >> i was struck by the internal statement you made about trolling on twitter. the whole world knows that this bullying happens on the network. what do you want to say?

>> i take responsibility for that, we will not go ahead with the status quo -- >> i feel like amazon has been trying to sell me the same portable usb charger. how big can it be? >> we are still experimenting there. the opportunity for twitter is to really be in the context of seeing some public conversation. oh, yeah, i want that. distinct from other kinds of

commerce, we have a number of experiments we are running their. we are learning a ton from running those experiments. i think you will continue to see us explore with different kinds of -- >> facebook is 1.2 billion users, million dollars with market cap. is your vision for twitter still on par with the facebook scale? >> i think it is to have the largest possible audience. we believe that twitter is of value and can be of value to every person connected on the planet, and that is the strategy we are delivering against. >> up next, take two -- the next big video game franchise.

we will talk to strolls they'll make about that next.

bloomberg west. now the company is betting on a new first-person shooter game called default which pits humans against monsters, just like in real life. devolve went on sale for ps2 and xbox one. it's -->> it's pretty unique as

you can play as a team afford fighting against the monster. the game won best of show. as far as we know, that has not happened before. we will know very soon. >> how you plans to launch such a thing? >> i think it is true of any entertainment business. you basically just do not know. we have a little more insight because we interact with retail and retail orders a little more product from us. our retailers really know the market and they can signal to us through our analysis how our launch is going to work. begin ship product into the retailer. in this instance the retailers

are very enthusiastic. it still remains to be seen and we never like to claim victory until it occurs. >> i just don't care about sex and violence as long as i know it's going to be there. is that morally bankrupt or is that just the market is bigger? >> i think you said it right. you want to know it's there. it's incumbent upon us to deliver a rating to stand by the rating and to market appropriately to the right audience. the rating system used is the most robust in the industry. that is it has the highest level of compliances measured. so when a parent goes to the store to buy a video store to buy a video game for his or her child, they know to buy something that's rated e for a child. and if an adult goes to buy an m-rated game they know that there's likely to be sexual content or violent content. the same way if you go to an r-rated movie or watch an action television show you know what to

expect. i'm a big believer that the right to bring what a publisher wants to the public is terribly important right in america one we need to stand behind. equally we have a social responsibility to do what we think is right and only to market to appropriate audienceanced and to let people know what's in the box before they get it home. and our ability to do what we think is right is important, our social responsibility to market appropriately is equally important. >> how do you see who your user is? do you put them into a small sort or big groups? or how do you try to size it? >> we typically look as concentric circles with the core being sort of hard-core gamers. people who love video games and people for whom it's their primary entertainment activities. >> who is it? >> it's all across the board. a bit more male than female but

not that much. median age is 37. so really adults. and older adults. i think the reason for that is that one consumes for the rest of one's life the entertainment about which you're passionate about in your late teens and that never changes. that's why our cohort is growing so rapidly and aging. obviously as the video game business has been around 35 years. every year that goes by our median cohort is going to increase in age which suits us just fine. people don't stop playing video games once they play them. typically. they love them and keep loving them. then the second circle would be people who play video games but not their most important activity. then the third is broad audience who is sort of interested but it's not their primary or even secondary activity. in the case of grand theft auto 5, you have to believe you've addressed the entire market and in other titles you might just address the core market.

certainly our goal is to address as broad a market as possible. and make it as beautiful to look at and compelling to play. >> you have this partnership in china. tell me how that works. >> we've been in business with tencent for some time and they were our partner as we ought to develop it on line in china, which is is a free to play multiplayer game in the chinese market and we entered with ten sent because they are the premier company there, how to do it and prepared to mitigate a gool deal of our risk. it's been a great partnership. we have a lot of people on the ground in china. it's still to this day the number one sports title in china for massive multiplayer game. i think we have 24 million registered users and it generates revenues and profits every month. >> in terms of the way showing profits already. what's the growth like and does it sort of latch on to the same kind of growth we see with tencent writ large?

>> certainly tencent's own growth is a nice backdrop but the game has to stand alone. it continues to grow and we hope it will continue to grow. but right now it's month to month. we can't predict what's going to happen. but it's looking very positive. >> consoles, you're saying the x box. what does that mean for you? >> that's a big market for people who love games but is a brand new market. >> you said it exactly right. people love games in china. they're accustomed to playing free to play on line games. so this is a brand new business. so far only the x box has launched. the playstation four has not launched yet in china. it's a relatively small installed base. we are seeking to get government approval to sell our basketball title there. that would be our first title for the x box in china. it's a massive market, 300 million people in the middle class, entire state of america's consumer population could fit inside

china's middle class. this remains still a very small market so far. >> what do you expect in terms of timing? do you have any idea what the process will be or might it favor local developers of content? >> so far the content has been sort of balanced with local and international. it would be -- soft is actually on the ground in china. that gives them an advantage. all of us need government approval for what we do and that is a bit challenging as you know. >> but you've already got the nba game playing on tencent. does that give you an advantage? >> i hope so. and basketball isn't controversial. >> competition in the online delivery business is hotter than ever, we'll talk to a publicly traded grubhub next.

>> i'm cory johnson and this is the best of bloomberg west. the hungry market for good delivery is spurring competition. online food services are inching closer to your plate. yelp yell p just ate up online food services spending $134 million and grubhub announced two acquisitions recently. so which company is in a position to win? grub hub spoke with bloomberg about the yelp competition. >> it's just business as usual for us. e 24 has been around for a while. in fact they had a business partnership with yelp for years. i'm wondering why they pulled the acquisition. when all the benefits of working together already exist. but for us it's about the opportunity ahead of us. there's $70 billion in takeout spent domestically and we

processed 1.8 billion last year. there's a lot left to go in front of us and that's what we're focused on. >> it must be validating for them to look at your market and finding it appealing. >> i want to build the best product and service and that's why we acquired the two rdf companies, restaurant deliveries to now deliver, 15 major markets. that's what i see as a real opportunity to increase service levels. >> let's talk about those. you were once in the business of facilitating an online purchase and then a restaurant went and delivered the food themselves. now you want to control the value chain, make those with a grubhub contractor or employee? why? >> sure. first start the majority, the vast majority of our business is still the restaurant delivers it themselves. what we found is that we can increase the level of service and make it more consistent for the diner if we're owning the last mile. we can maintain the heat of the food.

we can make sure the delivery gets there really fast. so by leveraging our technology and scale we think we can bring a better experience to the diner and add a bunch of new restaurants that didn't deliver before. that's the value we're going after. >> how does it work? are these employees that are making the deliveries or spin off a kind of uber like service? >> we're definitely looking around the world and seeing how other people are deploying vast amount of individuals independent contractors is a very strong way to go and we definitely have a lot of those. >> do you see the ubers and the side car and uber like company here in san francisco getting into the business this week of making delifferies. -- deliveries. do you see them as partners or competitors? >> you know we're going to leverage whatever we can to get the food there as fast as possible as hot as possible as high quality. the transportation company, it's a different use. they pull over to the curb somebody gets in. there's new packages. we'll see if that gets to the

place where you can put someone who goes and gets the food from the restaurant make sure the order is accurate brings it back delivers it, rings your doorbell. we'll see if that can get there. for now we're going to do it because we can do it really well and if in time they can do that, of course we'll go with that. >> let's talk about the value proposition for restaurants. i'm a user. love the service. but it's incomplete even here in san francisco not all restaurants are on the platform. how do you convince restaurants that they're not leaching commission to you guys and two that they're not losing the relationship with their customer to an intermediary? >> restaurants want to make money. that's what they're there to do. they want to process orders and they will leverage whatever they can to do that effectively. so what we bring them is a very low risk, very high reward opportunity. we say, bluntly, we only make a dime when you make a dollar and then it's on us to make them more successful. we help them manage their data we help them think their pricing

what times are they delivers , these are things we are thinking through. we give them a tablet to make them more efficient to process more orders and then we drive those orders through our 5 million plus active diners in 800 cities across the country so if you're a restaurant tour in a major company and especially growing, in tier two, three, and suburban markets, you're crazy if you're not on grubhub because you make a lot of money. >> to what extent has open table been a model for you? it does remind me of open table which got a start by providing technology to restaurants to help them manage their inhouse inventory. >> it's a pioneer in the networks, absolutely. the difference between open table and grubhub is grubhub has a vastly bigger addressable market. so currently, $70 billion in annual takeout sales of which we're doing 2. in reservations it's much, much smaller. so we're looking at our opportunity and really evolving

our product. we're trying to figure out how can we add transparency, control, increase the level of service proactively to give diners a better experience so they order more. >> so as you know for me no conversation is complete without a mention of amazon. fresh, service rolling out nationwide. in some markets they are integrating restaurant delivery. to what do you see them a partner or competitor? >> they're a very interesting company. >> net neutrality is that a plan or -- >> you're watching the best of

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>> you're watching the best of bloomberg west. i'm cory. tom wheeler says his net neutrality proposal will protect the open internet by subjecting it to more regulation. but that has some people looking at it. >> the worst thing is that it micromanages virtually every possibility of how it operates opens it to billions of dollars

taxes that consumers will have to pay, lawyers filing class actions across the country. there are a whole host of harms that are going to happen. and that's why i only wish that you could see the 332 page plan that won't become public until after the f.c.c. votes on it. >> it looks like a phone book. let's talk about these and kind of go through those objections one by one because you've listed a handful. let's start with the micromanagement. at some point, and i'll take the other side. at some point if the skirmish is happening at this moment in which a user is trying to use -- to get the information to get back off the internet, isn't that the place where the regulation has to happen and get involved if there is to be any regulation? >> two responses. first nowhere in this document does the agency ever identify any systemic problem with last mile connectivity. they might say the competition

is limited but they don't give any examples of isp's acting as any competitive gatekeepers in such a way that industrywide rules are necessary. secondly, this document goes well beyond last-mile connectivity. for the first time the agency would insert itself into debates over interconnection. the negotiations between internet service providers and edge providers. it would set not only the requirements that companies physically interconnect but also the rates that they would have to adopt and it would open up a complaint process again more litigation that will would allow essentially either the commission or courts to second guess all of these decisions which currently are made in the free market. and that's not something i think the agency or the courts are equipped to do. >> well, you know, a lot of this hinges on sort of the guiding principles of how to administer this and what tom wheeler wrote about it in wired, his op ed there, is he talked about this commercial reasonableness and his evolution of what he thought about what that meant. i think what he said

essentially he said i believe the f.c.c. could figure it out what commercial reasons meant. but he said i became concerned with this new concept might down the road mean what's reasonable for commercial interests not consumers. what do you think it should mean? should the rules be there to promote what's reasonable for business? or for the users of the internet itself? >> i view our role at the f.c.c. as vindicating the public interest. in my opinion the public interest is driven primarily fundamentally by what is good for american consumers. but putting that to the side the question about commercial reasonnableness or not is something we applied in a great many context to vindicate the consumer interest. but what really happened in this case was the president in an unprecedented fashion to change course, to adopt his plan to regulate the internet.

and that's more than any change of mind i think is what's driving this bus. >> now, the taxes. you mentioned heavy taxes. isn't there already a rule in place, the internet tax freedom act that prevents there from being any taxes on the internet? how could that lead to more taxes? >> this is a critical point. the internet tax freedom act only applies to a sales tax on internet access. it does not apply to the fees that would necessarily follow from us reclassifying broadband as a telecommunications service which is what we're on the brink of doing. if you look on your phone bill and see that fee, this order explicitly leaves the door open to us raising the federal fees and letting states do the same. and that's why one independent study said that $11 billion at least in new fees will be, have to be increased as a result of this reclassification and that's something consumers will have to pay for regardless of that new legislation. >> the republican member of the federal communications

commission. expedia book its latest acquisition. but does that growing wave of consolidation mean more for the online travel industry? we'll answer that question next. ♪ ♪ ♪

>> dealmaking takes off in the online travel industry. >> what you wrote in your note this morning is probably no one to trust the issues at all because orbits is how big?

what are the implications? >> they bought a lot of the vertical plays they may well look to buy vertical plays like a tonight -- hotels tonight. they do it in a way it is usually pretty smart the rolling of assets, it is a multiyear trend. > what you wrote in your note this morning is probably no one to trust the issues at all because orbits is how big? >> orbits has a pretty small share single digit share. orbits is politely put a pretty weak asset. it has been ceding market shares for years. the are too heavily dependent on the u.s. market. what is the trend that you see orbits having the unwelcomingly having to deal with?

>> it's a little self-serving but this shift to mobile is a big trend in every online business. the starting point still is google. that's where people go and historicically have gone to start their travel. in a mobile world though people are going directly to aps. that means brands are important, aps are important. that plays well to something like expedia, that is gathering up all the starting points. why wouldn't i think that there's other places that people are starting. there's other flavors that resonate better with consumers. we are the leader in the

innovators around last-minute travel. we do that better than anyone else in the world, and we have carved out a really nice market. >> from a design standpoint expedia is like a smaller version of the website where you've got to pick dates and scroll through stuff. is design an important part of that? is design a business impediment for expedia? >>when we started we started with a clean slate. our back end front end always reimagined and invented for the mobile use case. it's very fast to book a room. because of the way hotels compete for inventory and shell -- shelf space. some of the numbers that are growing so fast do you see that as a problem?

>> there is been to seismic shifts >>in the rise of media and mobile. it required expedia and priceline both to pivot well. to make sure all their apps worked well, seamlessly on all -- >> there've been some antitrust issues with google. how big a threat is google? >> google is the biggest player in travel and i think it's always going to be the biggest player in travel. i don't know that you use them so much and you may have figured

out how to get around them. but if you want to succeed, you have to pay the piper and the piper here is google. so they'll stay at the top maybe along with trip adviser and nice economics on that. they tried for years and made halfhearted efforts. >> mark mahaney and sam shank. google created a new high-end robot called spot. what the robot dog means for the world of big data. that is next on bloomberg west. ♪

>> welcome back to the best of bloomberg west. i'm corey johnson. is uber worried about google rolling out a service with driverless cars? benchmark capital's bill gurly spoke to us at the conference where he had some tough words for google and it's so called moonshot project. >> a lot of the really large companies have done a good job of what i would call distracting the press by profiling self-driving cars or drones. how many large market cap companies have done a drone pr event? and i think it's -- they want to appear innovative this kind of thing. but ask any analyst covering google what are the revenues they have in their model for autonomous cars in the next five or ten years? and i know the answer zero. >> but revenue aside google is

certainly putting some mind capital on those moon shots, including the acquisition of a robot company. innovation far from slowing. they just released video of a brand new robo dog. four legged 160 pound robot can withstand all kinds of challenges. climbing stairs and ling rugged terrain, and standing after it has been kicked. so what does google plan to do with this robot? i spoke with their robotic director dan kara. >> it's important to make this robot walk or do research on this research because there's a number of other capabilities that will be built out of this. you have to stop thinking about google working to developing robotics products and think of it more as terms in developing a robertic solution stack. that would be research which generates capabilities which generates new products and market places tied in with data. so this is a data play.

not a hardware play. what they've done by purchasing boston dynamics and then ten days earlier before they announced the purchase they announced they were purchasing seven other companies. they are acquiring the best researchers and best robot assists in the world. they have ties in with android and java. so it is -- yes this is eye candy for roboticists and most people in the public but there are thing which is can be built out of this on the data side. >> i'll tell you what's happening. when the guy kicks the dog that's teaching for the robots in the future to take over. this is the beginning of the terminator. i know where this leads. i don't understand about the data. like what kinds of data are they going to gather from these

robots? >> if you have an index internet then you can have indexes of things such as object models to recognize people or objects or even to recognize things like how to open up certain doors or how to move up certain types of stairs or how to drive in traffic. so there's piles and piles of data which again drives intelligence for these types of systems. so that's where the data component comes in. it's also important to notice that director of google's robertics initial initiatives now first time i heard him speak was on the subject of cloud-based robotics. this is where this is going. it's ubiquitous intelligence being actualized in robotics systems that work in the real world. >> i don't see the place where

you've got this cow that runs across a parking lot leading to more impressions for advertising. is it about understanding the context of movement so that you can somehow, i don't know perform better search display better aps? am i too small minded for what this means to a company that's in the business of selling adds? >> i don't think they know how this is going to play out. but think of it more in terms of a research platform in terms of a product. to work on these robots and use these not only handle that sort of dynamic walking and the ability to recover when it's not but also how to interact with humans, how to be able to work in the physical environment with the type of device out there. so once you're able to work in this physical environment you're gathering more information than is just limited to the virtual world. think of these things in terms of a mobile sensor as opposed to a robotic.

hence, the purchase of net. again, a device in the home that acquires information and data that can be monetized in a number of different ways. >> so what so they'll do the new street map, the google street project with robots driving around and know where people are and what they do so they can be in a position to better context ualize things like advertising research? >> it might be beyond advertising research. i can't speak to that. what i do know is they have now with these acquisitions a whole heap of really smart people doing basic core research to do so not just what they're doing but for example images of different types of environments. you can build map from just people taking photographs from

their cell phone now as opposed to having a car drive around. you can also build the equivalent of a functional map on learning how people move through their physical environment. so it's not just simply clicking on ads. it's how to move from one place to another. the way to gather this information, one way to gather it is through actuated sensors that can move in physical environments. >> dan kara. >> need a date for valentine's day? need to pretend you have a date? we're going to introduce you to business behind pretend relationships. make believer girl friends and boy friends. that story is next.

>> this is the best of bloomberg west. i'm corey johnson. it's valentine's day weekend and if you don't have a date you can always pretend to have one. the technology is here to help invisible girlfriend. the st. louis startup that provides make believe boyfriends and girlfriends. >> one thing that we found is the whole judgment is that your worth is based whether you're in a relationship or not there's a lot of people who don't want to be in a relationship who want to have cover because they want to have cover at a job or they might be getting hit on at the office. there are a lot of reasons of why people might use my service. $24.99 a month. you get 100 text messages. from a real invisible boyfriend or girlfriend. you get handwritten notes, voicemail and expanding soon to gifts and perhaps even flowers at work. >> wouldn't you go through that really fast? how many tweets or social media messages? >> we're not using social media.

we realize most interaction people have is through their phone so we're using text messages. >> on the other hand, there is someone who is sending -- i'm thinking of the movie her, which is a movie that i loved, where this person had this actual relationship with this computer. >> you know, we're in a position where we're not trying to convince you you're in a relationship. we're trying to give you believable social proof. but we find our users are starting to use the service for conversation. they're talking to their invisible boy friends and girlfriends at a higher clip we anticipated. >> so beyond the person getting hit on at work, who else would need this kind of service? >> a soldier overseas without a girl back home. might be someone who is living a -- gay or lesbian and have the conservative parents in the bible belt. we found that we have lots of people using it for different reasons. we have one person trying to make their ex jealous. so there's lots of different possibilities.

>> if i signed up my wife might be jealous? >> she might give you more presents. >> i'm not going to try that. >> you have a lot of users already. >> i do. we've launched three weeks ago. in those three weeks over 50,000 people have created boyfriends and girlfriends from all over the world. >> when we talk on the phone you won a big startup contest in st. louis? >> it was november of 2013 we won the startup weekend competition and got a little bit of attention right then so we've been working to build the services that we launched three weeks ago. >> who are the people on the other side of sending these messages? do they have boyfriends and girlfriends? are they pollyamorous? >> exactly right. >> who are they? >> we have a roughly 500 person workforce in the united states. we're partnering with a company in st. louis that helps us kind of generate these microtasks whether it's through amazon's o desk.

there's people who are doing these small tiny tests for us so they're able to respond to the text messages. >> so web services, is it's a distributed model not unlike uber without you needing to go out and hire them? >> that's exactly right. and we have so many other businesses like that are you also hosting an amazon web service? >>not yet but what we've found is we've seen such an immediate influx that we're focusing on scaling the business to handle those sort of traffic. >> what are you doing for valentine's day? >> i'm spending it here in san francisco with my wife who is in the room next door. >> invisible girlfriend cofounder. that does it. catch us monday through friday at 10:00 and 3:00 on the west coast. or 11:00 and 6:00 back east. we'll see you tomorrow. [captioning made possible by bloomberg television]

>> it has been five years since haiti was hit by a devastating earthquake. >> we lived one of the worst moments in our history. it was an armageddon-like situation. >> the government says the country is moving forward and haiti is open for business. >> we want to do more. we want to attract more businesses. that will change the entire region. >>maybe what we are doing today will show the government that they need to come here and help people to have roads electricity, running water. >> there are people living in the streets and the country still has horrible