>> dick costolo says he wants get in the way. with that means for the search for the next leader. ♪ emily: i am emily chang. welcome to a special edition of "bloomberg west". we are live in san francisco. investors bet on yahoo!. marissa mayer says her plan to spin off the company is going according to plan. we will hear from the most innovative entrepreneurs at the

bloomberg technology conference, including a company -- and i will introduce you to the nexus of wardrobe. that is all next. we begin with dick costolo. he spoke to his earlier today. just days after his announcement that he is out of the top job at twitter. the stock fell to its lowest point after a fresh analyst downgrade. investors are awaiting any sign. he spoke to bloomberg businessweek about what it takes to be a good ceo. >> great ceos are a balance of resilience gritty and resilient, but self-aware. you have to have that combination.

just as importantly he has this fluency about the way he thinks about the product and the way he thinks about its potential that almost is remarkable. >> the doubt the skepticism, is this a real search? whether jack is being queued up as the next ceo because he wants it, the founder, and knows the product, or whether he wants to go out and cast a white net. >> the board is doing a legitimate search. lead independent director meeting that. >> will you return to stand up comedy? >> i don't think it would be a smart move for me to return to stand up comedy. [laughter]

look, i get heckled for free now. why go travel to des moines and go to the laugh track to get heckled by people there. emily: at least he still has a sense of humor. for more on his comments, kevin scott. i will start with you. he did not get specific about what kind of ceo he wants, but he did give some clues. >> he is a top interview particularly right now. a couple of things jumped out at me. he sings the praise of jack dorsey. he says nobody understands the product better. clearly he loves jack.

they have a strong relationship. i asked him to talk about anthony noto and the head of sales. the story he told about adam staying up all night shows a much faith he has indicative atoms. -- faith he has in dick adams. emily: is a lot of talk to their not going to do a full search. >> i think they are in a strong position. dick said the company has the blessing of being loved by so many people. they have a great team. emily: it has also been bombarded by analysts and investors who are not happy. >> i think they have a very big business already. they just need to focus on the

basics of what are making that business run. with the new leader, they will need someone who can inspire what is already a really talented team and start delivering on the potential of the company. emily: he insisted he has no idea what he will do next. >> it may be true in the short term. the guy has been under fire for five straight years. he definitely need some time off. i bet we see him start another company. emily: we will of course be watching. dick costolo said he will be on the board at twitter. i do want to talk about yahoo! another interview with marissa mayer. a conversation on the innovation and future at yahoo! she started explaining whether the nfl partnership made it a media company.

marissa mayer is attack>> the nfl opportunity was at one point our achilles heel. it now becomes a real opportunity and strength. when the nfl goes digital, we may never be the biggest technology company but we are the biggest technology that gets media. we are the biggest media company that gets tacked. >> the other piece is the status is about ali baba and yahoo! small business yahoo! said that you believe that transaction is going to proceed. what gives you confidence in the light of the fact that the irs has been greatly -- closely looking at transactions of that nature? >> we have receded with the basis of understanding on the

changes that have been communicated today. they don't apply to previously received requests for rulings's. the other thing that gave us some confidence is that it doesn't seem these proposed changes are contemplating changing the applicable law, and so more about the processes around these type of transactions. we have also been reassured that this wasn't something that was specific to yahoo! or in response to a particular transaction. many of these transactions are happening at the time. i can't presume to speak for the irs, but given our understanding of that, we feel that we should proceed with the proposed transaction is planned. >> how is yahoo! thinking about transactions these days?

how about a crime large companies for the talent they bring in the door? >> we have a three prong strategy on acquisitions. the talent acquisitions are about hiring teams. if we saw a great team we would still do a talent acquisition of that type. now it's on building blocks and larger strategic acquisitions. building blocks are lined with search indications, and digital. emily: brad, let's talk about acquisitions and alibaba. she confirms the spinoff was going according to plan despite the changes. >> it's hugely significant. a big part of that market cap is

investors expectations around the alibaba spinoff. marissa said today that they are grandfathered in. we will see with the irs says. for now, it's good news. emily: we continue to ask this question. is yahoo! a media company or technology company? kevin, how satisfied were you with her answer that we can be both, and being both as a strength. >> i think it can be a strength. one of the things that hot in the valley is a typical engineering mindset that doesn't really understand a typical media mindset, and that's one of yahoos strengths. they have a lot of history there. the direction she is pushing the company and is good. emily: it sounds to me that the yahoo! is still on the hunt. would you agree?

>> i don't think she has the runway she had when she joined the company. if they do acquisitions, they will be small ones. she is certainly spending on content now. that nfl deal was not awarded to yahoo! by the nfl. they paid for it. >>emily: marissa said something about yahoo! being a scary place when talking about acquisitions. a lot of people said they don't want to come work for yahoo!. what you think the perception is that the stage? >> certainly she has improved things. she understands the three things you have to get right for acquisitions to proceed. products energy so the thing you're buying has augment the thing you're trying to

accomplish in your company. you have to make sure that the vision and the passage aligns with what you want them to do as part of your big enterprise. you have to get them enough space to operate so you don't crush them with brc and buy them a little bit of freedom. i think she knows all this stuff. they bought a lot of companies. it's hard work. i think it makes a lot of sense for them to digest what they have swallowed rather than trying to pile on more big acquisitions. emily: we will have to see if these acquisitions stand the test of time. you'll be going onstage later today. thank you very much. brad, i believe your wanted back there. thank you so much for joining us. coming up, one of the worlds natural super materials is the spider silk. we will take a look at the

scientists who have grown the silk in a lab. special coverage continues next. ♪

emily:>> the company wouldn't want me to code professionally. i'm pretty rusty.

i do like to code for fun. i have a couple of things that i like to do at home, scripts i like to write. emily: i love that anecdote. marissa mayer earlier today from the bloomberg technology conference going on behind me in san francisco. speaking of another company, spider silk is one of natures most durable materials, five times stronger than steel and more elastic than rubber bands. scientists have been trying to make synthetic spider silk for a long time, but nobody has been able to cracked the code until now. a team working in the bay area have found a way to make lab grown silk. they have raised $32 million to ramp it up. we went to see how they do it. ♪ >> the idea came up as an outcome of graduate school.

we were working on a project to understand how fighter silk worked and realized there was -- how spider silk work and realize there was an application. >> spiders are coniferous and territorial. people have been trying to pursue this area of research for decades. we have come up with a template to make proteins to form fibers. each one has properties for the function it supposed to perform. spider silk is the silk that holds up the web. there are four parts that go into making the fiber, research and development, where we design a protein and make it in the lab. we grow it in fermentation where we make a lot of protein. we recover that from fermentation and spend fibers from it.

-- spin fibers from it. it opens up a nearly infinite space for the kinds of materials you can make. emily: such a fascinating story. joining me is dan whitmire. also, tom giles, managing editor for bloomberg. it's amazing what you guys are working on. spider silk has an criminal -- has incredible properties. can you replicate that? >> yes. this is the challenge of technology has been trying to solve. many have tried. we can do what we would never have dreamed up a decade ago. emily: where are you when it

comes to getting clothing on the commercial market? >> we are in the process of product development scale up and launch. >> tell us about what the funding allows you to do. emily:>> in the early day was filling in the little pieces to build the technology platform. this is big. it has potential. now it is about how you make enough materials to every consumer can have a product made of this material. emily: what clothing you imagine will be made by the silk? >> everything from stretch dear to more comfortable you name it, we can work on it. active wear apparel to what you wear any office or with your friends. >> do you envision non-apparel uses as well? >> everything from fishing lines

to medical sutures to medical implants. as a starter, we have chosen consumer apparel first. emily: why should i choose active wear over lulu lemon. >> you always want higher quality, more durability, easier to care for. we can do all of it. emily: what else is happening in the world of textile and fabric innovation? >> for a long time, it was based on petroleum-based polymers. they have been around for a long time. we think this is something new that can really be a game changer. emily: you guys recently moved from san francisco to emeryville? >> is that a function of the bubble, the boom, we are seeing in san francisco real estate? is it more practical?

>> it's both. it's a hard place to secure office space we also have it laboratory and small-scale research we found something ready to go and move to to emeryville. emily: i'm still waiting for my spider silk jumpsuit, i don't know about you. thank you for joining us. coming up, we will speak with the ceo and founder of -- you don't want to miss this. ♪

emily: welcome back.

i am emily chang in san francisco. it is time for the daily bite. -- byte. 10 million. that is the number of cyber attacks that opm faces every month. they have stolen at least 4 million records from federal employees. today, hackers are not just looking for government or corporate data. officials may have broken into front office computers. both the mlb and astro say they are cooperating with the inquiry. back to the conference. we've been talking all day about how code is changing and disrupting every industry, not

the least of which is fashion. joining me now is katrina lake the ceo and founder of stich fix , the interesting way to discover new things to wear. start off by explaining how it works. >> as a client, you sign up and we will have a stylist to put together five things for you to try on. it's like having a fitting room delivered to your home. you can find out what you don't want and keep what you want. i had two out of five over the weekend. emily: i have two out of five things that i was going to keep. >> two things seem like a good number where you will be

satisfied and excited about what you are keeping. emily: one thing that surprised me is that you have 2000 employees now. i wonder how you scaled it. making sure that you are attending to the personal desires of every single customer is a difficult job. how are you doing that? >> that personalization is what is unique about stich fix. the way were able to achieve that is combining the best of both worlds of art and science. which is why we are here at a technology conference. we have dozens of engineers and others working with this to build tools so our stylist can use algorithms to send you the best picks, stocking the right styles so we use the best of silicon valley combined with retail to deliver this personalized experience that is scalable. emily: one of the things that i enjoyed with these style cards with different ways to style each item.

it was not just a shirt in a box. interest, you ask people to send you style boards. how optimistic are you about by buttons? we've yet to see the progress. >> i think the buy button is way -- the way people are finding inspiration, in the way of magazines or stores, but they're having it on pinterest and instagram. emily: people will buy with the bible. >> i think so. emily: people will buy with the buy button. thank you for being here, katrina. thank you for joining us. that is it from the bloomberg technology conference in san francisco. we have a great program for the rest of the day. the main actor on the hit show, silicon valley, who, spoiler,

may be out of a job. that is coming up next. ♪

mark: i'm mark halperin. john: and i'm john hailemann. mr. trump, thanks for your time and thanks for being a huge fan of our show. you yourself have the show. you are finally running for president. mr. trump: i have never done this. it has not been that easy. in some areas you do better than bobby jindal. on the