brad ma takes manhattan. : i'm brad stone in for emily chain -- chang and this is bloomberg west. coming up, leaders of streaming business sound off on apple's new music platform. i will ask pandora and rhapsody how they went on competing with tim cook. plus, investors are betting on plans for a stock split at netflix's shareholder meeting today. we have everything you need to

know. and activist investor paul singer takes another shot at samsung's lee family. all that ahead on "bloomberg west." now to the lead -- jack ma has big dreams for alibaba and they center around american businesses. speaking to the economic club of new york, he said he aims to reach 2 billion customers and offer 72 hour delivery around the world. here he is responding to questions about his strategy. jack: when are you coming to invade america and compete with amazon and ebay? i would say we show great respect for ebay and amazon, but i think the opportunity and strategy for us is helping small business in america come to china, sell their products to china.

brad: so what makes this the right strategy for alibaba? alex barinka has been following this story today and joins us from new york. we also have a chief revenue officer who helped establish their operations in new york. duncan clark was an early adviser to alibaba and is writing a book about the company due out next year. alex, let's start with you -- you are at jack ma's speech where he outlined some audacious visions for the company to be even bigger than walmart. what did he promise and is it a -- is it attainable? guest: bigger than walmart is what he said. alibaba had $390 billion in gross merchandise volume last year. it's a different number from walmart but it's safe to say that that is the number he's aiming for and he can probably do it in 2015. what he is selling his pitching

-- what he is selling is pitching to u.s. businesses to sell through alibaba to consumers in china and that's how he is projecting he can be bigger than what is known as the retail giant here in the states. brad: duncan, i was interested in how he outlined the international opportunity for ali baba. he described it as cross-border commerce and american companies selling to the chinese middle class. how surprising is that for you considering people have been expecting ali baba to go the other way and sell to american consumers? duncan: i think he is cautious in the fact that we have seen the failure of chinese companies rush into the market. in portland, they tried to set up opposite nike and it did not work. so i think he is right in the sense that the chinese consumer market is growing the fastest and they will play to their strengths there. in washington state, cherries

have been exported in the pallet load by airfreight to consumers, so there is a clear demand and supply, and he is focusing on that first. not to say he won't be in -- will be ambitious about the u.s. later. brad: to that point, alibaba has been a major investor in u.s. companies from snapchat to the new e-commerce marketplace, what are alibaba's ambition when i comes to the u.s.? -- when it comes to the u.s.? is it just a cross-border commerce opportunity? guest: absolutely not and we have spoken on this show before -- jack ma and alibaba are placing very strategic best -- bets. not just in commerce but also in mobile users, and let's not forget video and personal finance. they are putting bets everywhere. the focus of more commerce into china is about these longer-term that's, which -- these longer-term bets, which i think

will play out and contribute to future revenue. brad: how important is the international expansion considering it is slowing down in terms of growth? guest: i agree with that point. firstly, the international investments are strategic for china. they are involved with mobile investments and the domestic e-commerce market. the first line of defense is offense, so invest in u.s. companies that can help them at home. but i absolutely agree that they are hoping to place bets here , but it's a chinese strategy of biding your time. they are busy here but they are very busy in china with the competition. brad: jack ma also addressed counterfeiting, saying alibaba is doing everything they can to stop it. alex, does this make u.s. companies hesitant to work with ali baba or are they more confident now? alex: with the suit outstanding against ali baba, it does make u.s. companies take pause and

i think that is a little bit of jack ma's strategy. he was extremely impassioned today talking about what ali baba has done to bring that counterfeit number down to only one out of 860,000 transactions, which he says is smaller than the markets in general. he is really trying to tackle some of these things but in the u.s., it can be a bit of an echo chamber. when you have a company coming from a country u.s. consumers are not comfortable with, that might be one of the hiccups and reasons he's taking a more measured approach in terms of getting into selling to u.s. buyers. brad: jack predicted many u.s. internet companies will find success in china over the next 10 years. craig, for google, you were part of this battlefield. do you think jack wright and u.s. companies will start to have more success and how

involved could ali baba be in making that happen? craig: i could say that someone like google and the company i'm with now will look to partner with someone like ali baba because they have tremendous region they have solved a lot of tough issues. we believe they have quite good relationships with the government at all levels, and they have cloud computing services which is perfect for internet company's infrastructure. so they would be a great ally to allow the reverse to happen, which is american companies being successful in china. brad: thank you for joining us. the fight for the future of samsung is getting ugly. the number three investor in construction firm, paul singer who only acquired his stake last

week, is taking legal action in the form of an injunction to stop a powerful family from consolidating their grip on samsung. it is complicated -- the lee family controls the samsung group of 67 companies through a group of cross shareholding. last year, the patriarch suffered a heart attack, triggering a transfer of leadership to his son, who is restructuring the family's holdings. one move was to fold samsung us tnt back into its company and that is what paul singer is fighting against. he says the move is not in the interest of other shareholders because prize everyone is after is a stake in samsung electronics. coming up, apple music is here and it's streaming competitors are speaking out. rhapsody's ceo and pandora's founder join us next. and not so funny -- chinese arms makers poking fun at russia's military might over we chat.

we will find out why after the break. ♪

♪ brad: unicorns -- we keep spotting them. today it's blue apron. this grocery delivery company

has raised 135 million dollars and a $2 billion valuation. here is what they are planning to do with it. >> we are investing in our film and infrastructure and supply chain to allow us to get fresher food at better prices and allow people to cook it at home. brad: this company delivers fresh ingredients to your home. and they give you the recipe. everything is measured out so you waste less food. they plan ahead with farmers to grow the right amount. >> we are designing a supply chain around and use. -- end use. we can do that all the way back to the farmer in a way that is more economically efficient than a grocery store can. brad: now there is one more player shaking up the grocery business. by now, you know the highlight of apple's development conference was the unveiling of apple music. the service costs $10 a month

and builds on the acquisition of beats electronics. but the idea of music streaming has been around for more than a decade, a fact competitors were quick to point out. the ceo of arguello -- rdo said welcome, seriously to the most important frontiers and digital music revolution began 16 years ago. and spotify's ceo tweeted, "oh, ok" but deleted it. here to talk about it is tim westergren, founder of pandora and david hose, ceo of rhapsody. david let's start with you. this model apple introduced yesterday has to be awfully familiar to you because it is the same one rhapsody has. what do you make of it? how impactful will it be in the digital music landscape?

tim: we are happy to have apple join the party we started 13 years ago and we have millions of customers using our product having access to tens of millions of songs from their phone at any time. the great thing about having apple come in and be part of it is that it's going to educate the market that this exists and because a lot of people don't even know it is possible. we are happy to have them here. brad: tim, i think i know what you are going to say. i know you have said before that apple is a great partner for pandora. what do you make of the announcement? tim: like david, i say it is good news and further validation that we have been skating to the right place. pandora is little different. our focus has been on the passive, radio-like experience. it's fantastically hard to do. it takes a lot of data and experience, so we think we are

in a good spot and we compete primarily with radio. this is further evidence that this is where the audience is going. brad: apple has what we like to call a vertically integrated ecosystem. they have their customers credit card numbers and they can put their app right on the iphone. don't they have an unfair advantage over an app like pandora or rhapsody that users have to install? tim: they bring a lot to the party but this is not the first time a source has come along -- itunes radio came out just a couple of years ago. we have had a lot of competition and ultimately, the task of delivering a personalized radio experience is fantastically hard and requires an immense amount of intellectual property and data, both of which we have and and we have been at four 15 years now. we have incredibly precise information about what people like and don't like and

listeners are unforgiving about radio. if it doesn't play what they want, they don't stick around. brad: on that same theme about whether apple has an advantage they are going to charge rhapsody that 30% apple tax for every subscription you sign on the iphone, but they don't charge themselves. how much of an advantage do they have versus the ecosystem of other streaming apps? david: they absolutely have a huge advantage. i'm sure we will hear lots of conversation over the next weeks and months about how apple is providing a directly competitive product to me, yet they charge me 30%. i pay 70% plus to my artists and other rights holders for the music. apple takes their 30%, i don't think they are paying that to anybody, so if they suck money -- so they suck money out of the ecosystem. no doubt that is going to be an

ongoing topic going forward. as tim said, yes, the apple products will be preinstalled on the device and people will get a chance to experience it, but like everything in life, if you have a choice between two things that cost the same, you're going to pick the better one and we believe we have a better product. we have been acted for a long time. we, too have so many different users who have an engaging with us and we know what they like and don't like. our app store rating keeps going up and the amount of time people use the product is going up. go try apple and then come to the good one, and that is rhapsody. brad: is there anything truly unique about apple music? tim: there are a lot of things there, it's hard to focus on one. brad: the social media components, the dj component -- tim;: i think a lot of the

pieces exist across different services and we as a company have been over many years focusing on what we know works and what people actually use. there's a lot of novelties of features that seem interesting and compelling but don't become habitual products for folks -- we tend to shed those things in a hurry and focus on the things people use a lot of. ultimately, it's about simplicity. people want to hit a button and hear stuff they love without too much trouble. we are going to stick to our knitting. john: tim westergren and david hose, thank you for joining us. russia and china agreeing not to hack each other, but that's not stopping their militaries from topping each other. top chinese arms makers are poking fun at the kremlin competition -- a t 14 armada russia's newly minted tank, stopped abruptly in red square. it was practicing for a world war ii parade. but they used the episode to promote their own tanks, saying on the wechat messaging service

that the t 14 transmission is not well developed and russians are trying to catch up with chinese tanks. apparently chinese arms messengers have a habit of putting stuff on wechat because they are not pc enough for their own website. next, the music announcement at the apple developer conference made headlines, but it was who was on stage that is getting a lot of buzz from the tech community. plus, doom and gloom from cisco's john chambers. we will get his comments next. and don't try this at home -- a youtube user created a 40 watt laser shotgun that can destroy balloons and ping-pong balls and set fire to pieces of wood. set fire to pieces of wood. ♪

brad: time now for the daily byte. today, the number is 40%. that is the dire prediction run john chambers who says more than one third of businesses today will not survive the next decade. speaking at cisco's annual conference, he says 40% of businesses in this room will not exist in a meaningful way and 10 years. he went on to say survival will turn their companies into techie versions of themselves. and that 70% of companies will attempt to go digital but only 30% will succeed. chambers is expected to step down from cisco after 20 years at the helm. the incoming ceo starts on july 26. the big announcement at the apple developers conference may have been about music and

software, but who the company put on stage also got attention. the vp of product marketing and jennifer bailey, the head of apple pay both presented at the worldwide developers conference. it has been five years since a female apple executive presented there. some are praising apple but others say it is not enough. here to discuss this is the ceo and founder of web 2.0 and the director of the documentary "code -- debugging the gender gap." thank you both for joining us. let me ask you to -- two women presenting yesterday and people are celebrating the fact. how happy are you or is it patronizing and sad that we need to look at the first women on stage in five years and make a big deal of it? guest: we could do a happy dance if we really wanted to, but this should have been a long time coming. there's not just one type of

person working at apple or the tech industry. it's great apple has done it because they are an iconic company. one that many companies want to emulate. big companies and small companies want to be like apple, so i am thankful, i suppose. brad: a breakthrough or a step in a long journey? guest: i think it is a first step, and i applaud them for that but it's time to step up. brad: i was reading twitter yesterday and all i saw was people complaining about the fact that there were no people of color. clearly apple does have a long way to go. guest: when you think about it the number of women in the tech world is less than 18% and the number of diverse people of color is less than 9%, i believe. it is pretty representative of what is going on there. brad: i want to read something tim cook said -- i think it is our fault, the whole tech community, we have not done

enough to reach out and show young women it's cool to do it and how much fun it can be. do you agree? guest: absolutely. it is a cultural problem. the problem is the perception and the stereotypes. when you ask a young woman what a coder looks like, they automatically think it's a man, and you have to be sitting in the basement eating stale pizza and drinking red bull. we have to change that image. brad: is change happening at a fast enough rate? are you satisfied with the diversity report? guest: i wish things would go faster but i think a lot of people wish that. what is great is that there is change. we just had tim from pandora and 40% of his company's diverse from a gender perspective. companies like pandora follow -- at sea, lyft and we have , companies that we recognize

through our awards to show there are a number of companies not filling into the old stereotype of the year pond -- beer pong and hot tubs you would see in silicon valley. along with making tech cool, it's got to be interesting to work at these companies and pandora is doing a great job in that respect. brad: your film dived into this. what organizations are advocating for change? guest: a lot have actually done it, but i think the ones that actually do our light at sea -- are etsy they are doing well. they have increased the number of e-mail engineers on their team and i know indiegogo has in a good job. it's a complicated issue. diversifying your interview panel is something that helps. brad: unfortunately, we have to leave it there. thank you very much. that does it for this edition of

"bloomberg west." tune in tomorrow for a conversation -- ♪

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announcer: from our studios in new york city, this is charlie rose. charlie: we begin with turkey -- parliamentary elections failed to produce a single party government. it's the first time the justice party faces the prospect of a coalition government and the first time -- joining us from washington is stephen cook on the council of foreign relations and a contributor to "foreign affairs" magazine. i'm pleased to have all of them on the program at this moment.