emily: a vc legend tells me why he feels betrayed by ellen pao's tales of gender discrimination at kleiner perkins. ♪ emily: i'm emily chang. this is "bloomberg west." coming up, fitbit jumping in its public trading debut. what it could mean for the world wearable tech market. and a chipmaker with a $10 million bet on china. all of that ahead on "bloomberg west." first to our lead -- ellen pao

versus silicon valley venture capital firm kleiner perkins. a judge has ordered pao to pay twittered $76,000 in legal fees to her former employer after losing her gender discrimination lawsuit. they said today that the ruling was fair. the case sparked debate about equality for women in business and especially the tech industry worldwide. i spoke to john doerr in an exclusive interview for tonight's studio 1.0, their very first sits down since the trial. i asked about reactions to the verdict. >> i am sorry that it has been so hard for my entrepreneurs and partners to go through this, but and sorry that it is hard for minorities in the tech industry. i have two daughters. getting to a 50/50 world where they and everyone can participate is super important.

emily: ellen with someone you personally brought into the firm. how did you feel when you found out she was suing you? >> i was sick. it was painful. ellen was a good chief of staff. when i read the charges, i knew from that very moment that these had no merit. emily: how aware of you -- how aware were you of situation? >> i would rather not get into the past. ellen did some really good things, and i wish her well at reddit. emily: now she is the ceo of reddit. she is making bold moves. was she really not senior partner material? >> there is a difference between looking at an operator and an investor. i think ellen can be a really great ceo. i hope that she has. but to be a successful

investment partner is a tough job. emily: have you talked to her? >> only briefly during the trial. emily: what did you say? >> hi, ellen. how are you, how is your family? how are you doing? emily: what it she said? >> okay. emily: that is it? >> that's it. i haven't spoken to her since. emily: why didn't you decided to settle? >> i believe this should of been handled outside the courts from the very beginning, it just wasn't possible. emily: she's looking for an appeal of $2.7 million to walk away. why not pay her and be done with it? >> if it were that easy, it would have been done. i will just tell you, it's not possible. >> and we have tried. emily: how hard have you tried? >> very hard. >> the details are really not what matters. what matters is we have tried really hard and it's not possible at this time. emily: do you feel if you pay her this $2.7 million, that it

is an admission of guilt? >> i'm sorry that this happened to us and to the tech industry. it is a civil case, so the question of liability. emily: is it an admission of liability? emily: the jury found that we were not liable after five and a half weeks of testimony, so no, it is not. emily: i reached out to ellen pao for comment but she , declined. i am joined by my guests. what is your reaction to hearing what john doerr had to say and that kleinberg. >> i think in the long term this is the land of optimism and it will have a beneficial effect. we're all talking about women and men sure much more than we were two years ago.

emily: it's interesting, because the first thing that john doerr said to me was, look, we won in court. but in the court of public opinion, they cited against the venture industry. we get that. what do you make of his remarks today? >> emily, many of my clients feel when they get into these cases that employment litigation is the most personal litigation there is an a harassment claim is personal to the plaintiff and the defendant. it's very emotional for both sides. it's more than about money. that is what i heard from john doerr. it was not about money for him. it was about his reputation, his firm's reputation, and i think he feels it was not something he could settle, at least at this juncture because his firm was not found liable. whether it is about paying 2.7 million or she picking hundred 76000, -- $276,000 kleiner

perkins was found not to have violated the law and discriminated against ellen, and i read the judge's opinion and i think the award is about more than fees. the judge's award, and think he is trying to send a message. end this -- this should be over. the verdict is final. both sides should respect the verdict and move on. emily: you are saying that ellen should drop her appeal. >> i don't know the merits of her appeal. i think what the judge was trying to do is send a message to ellen that it is, i think somewhat irrational for a plaintiff who has lost to demand the defendant pay $2.7 million. after hearing 5-6 weeks of testimony, determining that was no merit to the case -- those are the people that know the

facts. i do not know the facts. emily: barbara -- hang on. people like sheryl sandberg told me told me she saw herself in ellen pao. does it end here? this is a debate that is continuing to go on. >> i think it does not end. there are a lot of us in the valley trying to make it better not just for them, for minorities. i am also ate latina woman, so it is a double whammy. emily: do you think this will permanently tarnish kleiner's reputation? mar: no, i am a optimistic person. i think it is starting again. agaion, i am pretty optimistic in a general about what is going

to happen. it is a good sign. the new cs class at stanford will be 50% women. that is where we begin. emily: that is good news. mar and barbara, thank you so much for joining us. kleiner is adding a new partner the summer and they told me that partner is a woman. you can catch my full interview with john doerr and beth seidenberg right here on studio 1.0 7:30 p.m. eastern and pacific. fitbit is in good shape after raising $732 million in a larger than expected ipo. shares reached the height of $34 and $.90 apiece before closing at $29.81 apiece. the company and some of its backers sold 36.6 million shares, compare that to the plaintiffs asked -- compare that to the planet to sell less than

35 million. they started turning a profit last year. ceo james park says the growth is far from over. james: there is $200 billion of consumer spending in health and fitness -- we have a wide range of products. different sizes, form factors battery life, supported different mobile platforms. we really want to get people multiple ways to enter our ecosystem. emily: fitbit is valued at $4.1 billion. up next, the fcc cracks down on annoying robo calls. but not every commissioner sides with the consumer. plus, find out how one company plans to get to the humanlike robot into your living room. that is ahead. ♪

emily: an end to robo calling? maybe. the fcc voted to control the amount of unwanted calls and texts consumers received, but the vote was 3-2, meaning at not at least people are opposed to ending this entirely. ajit pai is one of those. you cannot like the robo call during dinner? commissioner pai: i certainly do not. that is one of the things that makes it so frustrating. but the question is, what should the fcc do about it? unfortunately, the agency opened the door to class-action lawsuits across the country and that's not going to benefit consumers. emily: the fcc also voted to

expand subsidized broadband access to low income households. this is something you also voted against this. i don't get it. isn't the internet vital to everyone? commissioner pai: there's a couple different reasons why. first and foremost, the fcc refused to adopt fiscal responsibility reforms that have made the lifeline program as it is known rife with waste, fraud, and abuse. in terms of extending it to broadband, the fcc should be targeting these scarce funds on people who do not have internet access. instead the agency has opened the door to subsidizing people who already have broadband, who had incomes much higher than the poverty threshold. is not targeting these broadband funds where they are needed. for this reason i took a different view from the majority. emily: i want to bring in craig moffett from new york. another major headline out of the fcc this week is this $100 million fine against at&t for

allegedly misleading consumers about unlimited data plans. why is this significant? craig: it catches right, because it is the largest fine ever issued. but it also says something about the role of the fcc and i think this is something that commissioner pai has been a real spokesman for. we are seeing this creep of the fcc as being more and more and more interventionist. this is more of a landmark. this is getting through what they call the transparency requirements. getting at broadband for the first time, and it is significant in the context of the implementation of the so-called title ii rules around net neutrality. emily: what are your thoughts on this? commissioner pai: my concerns

with the at&t case are a couple fold. first, the ruling was completely rewritten in a way that no one previously ever expected. back in 2010, the sec said it was x, now they are saying it is x + y + z. they ignored the bill inserts that at&t sent, ignored the two text messages that at&t sent. ignore that there were websites to allow customers to get this information. the sec simply sweeps all of this information under the rug to pull a number from thin air $100 million, some plea to justify its existence in this internet regulation space. emily: craig, you say even though this lifeline will not have a big impact on the telecomms or internet service providers, there is another fcc program that will. tell us about that.

craig: there are a number. a related program is one that talks about deploying universal service funds for the extension of rural broadband. and you are just now starting to see the phone company sign up for some of those funds so they can bring broadband out to underserved areas. you are also seeing to the extent that some of those funds remain unclaimed, you will see cable operators starting to do that. i think that is part and parcel of the same impulse. which is trying to take a more governmentally interventionist role in trying to propel certain policies around closing the digital divide in bringing broadband to lower income americans, underserved americans. emily: commissioner pai, i want to talk to you about this potential tie up between comcast and t-mobile. it seems like it was going to happen, but yesterday we learned that comcast is not even interested.

is this because the fcc rejected the comcast-time warner cable merger? what's going on? commissioner pai: unfortunately because that is a potential transaction that could come before me and ultimately for approval and disapproval, i cannot opine on the merits of it. and whether that will happen or not, that is something i did not clean details about from the trade piece itself. unfortunately i cannot do it with more authority than that. emily: craig, what is your take on comcast and t-mobile? craig: t-mobile is everybody's partner. emily: so, is any partnership with t-mobile going to happen, or is this comcast thing going to happen specifically? craig: remember the context for this was t-mobile was reportedly in conversations with dish network about a possible tie up and i expect what they are signaling is they are not entirely happy with the prospect of dish network as their

partner, and so they are looking around to see what alternatives are out there. it certainly makes sense to talk to comcast. it is possible to see if they sprint tie up is possible in the beginning of 2017. comcast would certainly be on the shortlist, but i do not think comcast is a likely partner. part of that is because having gone through the regulatory process with time warner cable i cannot imagine comcast will say now is the time to start that again, in this case with t-mobile. emily: t-mobile looks interested in partnering with someone. it remains to be seen who that someone will be. fcc commissioner pai, craig moffett, thank you both for joining us. [speaking japanese]

emily: that is pepper. softbank's humanoid robot. the giant is teaming up with alibaba to develop robots that can work in the real world. the chinese tech giant or nothing $150 million each. -- are investing $118 million each. softbank is also planning a service recognition with an app store. it has more than 20 motors and super flexible arms so that his body language is that of a human. up next, cisco steps up in china, legend $10 million of investment. what does it mean as it heads for the big leadership change at the top? plus, snapchat may be snapping up serious cash in its live stories. how a 10-second spot leads to tens of thousands of dollars for the company, up next. ♪

emily: it is time now for the daily byte, one number that tells a whole lot. today's number is $400,000 -- that is how much one 10 second ad on snapchat can cost you. the company reportedly charges marketers to sense per -- 2 cents per view on its live stories. it could be viewed 20 million times. snapchat introduced live stories last year. the feature allows you to stream content from live events like the new york marathon for coachella. -- or coachella. snapchat is currently valued at $16 billion. well, cisco steps up in china, a market where it has been losing business to local competition. the outgoing ceo and his successor chuck robbins went to beijing to meet the vice premier and sign an agreement, pledging to invest $10 billion in china

in the next few years. how important is china to cisco? here judaism -- here to discuss it, we have someone on the board of xiaomi. i want to start with you. how big is cisco committing $10 billion to china? >> it is a begin. cisco does a little over $1 billion in revenue. china used to be north of $2 billion. $10 billion over 10 years is a big number. they have the opportunity to add a lot of r&d talents. they have a large manufacturing footprint, and have for a couple decades. they could have walked away from china given all of the challenges they face, but this is definitely a recommit. emily: a lot of companies have walked away from china. google left the country, facebook is blocked in china. what you make of this? tensions have been rising between china and the u.s. on the nsa, spiking situation. -- spying situation.

how is this viewed from the chinese side? >> i think it is part of a strategy of adding more efficiency to the economy. . -- china's population is aging. some numbers say close to 25% of the population will be age 65 or older. china has to become more efficient and innovative. this is part of the strategy to do that. emily: what you make of the fact that cisco is doing this as john chambers is on his way out. chuck robbins is on his way in. what does this say about the leadership transition? jayson: it's telling you that the new management team is committed to china. it is the same benefit for cisco. they have a hard time hiring talented employees in the silicon valley. the labor market is really tight. there's a lot of talent and innovation cisco can invest in. it is a benefit to cisco too.

they can leverage that talent in china abroad. it will be tough for cisco to take its revenue into china up given clinical tension, but certainly the company hopes to do that over time. emily: at that it was interesting that they had a signed agreement with the chinese government. i have never heard of something like that, at least publicized. is that common? is this the only way to get into china for u.s. businesses? hans: i think cisco is demonstrating a stronger commitment to make it happen. you do see signing of documents, but they have not caught as much publicity as this one. because $10 billion is a big number. emily: how much negotiation is going on behind the scenes? between a u.s. businesses end of the highest levels of the chinese government. we know tim cook has talked to people at the highest level there, for example. hans: i think china knows that as consumption increases, they will de-lever for the chinese. so, they want to get the

efficiency from the internet to disrupt and innovate the traditional off-line economy. if that can work, that could bring an offshore revolution into china. emily: where specifically do expect to see cisco investing? jayson: they are specifically not telling us. [laughter] rnc, and equity investments. -- r&d and equity in this. they are ready have a huge investment foxconn. emily: all right, we will be watching where they put that money to work. thank you for joining us. that does it for this edition of "bloomberg west." do not miss my interview with the kleiner perkins general partners on studio 1.0 in just a few hours 7:30 p.m. pacific and eastern. right here on bloomberg television. that is it today from san francisco. ♪

>> from our studios in new york city, this is "charlie rose." charlie: sally mann is one of america's preeminent photographers. for three decades, she has captured images that are hunting disturbing, and romantic all at once. her 1992 series, called "imme diate family" created 10 years it featured her children at home on their virginia farm. these photos deemed a great work of art outraged some for their composition and nudity. sally writes about that moment as well as her life and work in a new book called "hold still: a memoir with photographs."