emily: a vc legend tells me why he feels betrayed by ellen pao's tales of gender discrimination at kleiner perkins. ♪ i'm emily chang. this is "bloomberg west." coming up, fitbit jumping in its public trading debut. what it could mean for the world 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 kleiner perkins.

a judge has ordered pao to pay legal fees to her former employer after losing her suit. 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 first should chat since the trial. i asked about reaction to the verdict. guest: i am sorry that it has been so hard for my entre norse and partners to go through this, but i am sorry that it has been difficult for on turnovers in check. i have two daughters. getting to a 50/50 world where they and everyone can participate is important. emily: she was your chief of

staff were her mentor. how did you feel when you found out she was suing you? guest: i was sick. it was painful. ellen was a good chief of staff. when i read the charges, i knew from that moment these had no merit. emily: how will where were you -- how aware were you of situation? when she was there, how where were you that she was unhappy? guest: i would rather not get into the past. she 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. what she really not ceo material? guest: i think she can be a great ceo. but to be a successful investment partner is a tough job. emily: have you talked to her? guest: only briefly during the

trial. emily: what did you say? guest: hi, ellen. how are you, how is your family? emily: what did she say? guest: ok. emily: that is it? guest: that's it. i haven't spoken with her since. emily: why didn't you try harder to settle? guest: i believe -- emily: ellen is proceeding with an appeal. she is asking for $2.7 million to walk away. why not pay her and be done with it? guest: 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? >> really. guest: the details are not what matters. we have tried really hard and it's not possible at this time.

emily: do you feel like if you pay her it is an admission of guilt? guest: i am sorry that it happened to ellen, happen to us, happen to the tech industry. emily: is it an admission of liability? guest: the jury found we were not liable after five nap weeks of testimony, so no, it's not. emily: i reached out to ellen pao for comment, but she declined. i am joined by my guests. i would to start with you -- what is your reaction to hearing what john doerr had to say and that kleinberg. guest: 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 to that years ago. emily: it's interesting, because the first thing that john doerr said to me was, look, we won in

court. but we get that. what do you make of his remarks today? >> emily, many of my clients feel 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. so, kleiner perkins was found to have violated the law,

-- kleiner perkins was found not to have violated the law 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. into this. -- 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. guest: 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. the jury determined there was no merit to the case we read they are the people who know the facts. i do not know the facts.

emily: hang on. that said, this trial sparked so much debate in this industry. people like carol sandberg told me, she saw herself in ellen pao. does it end here? this is a debate that is continuing to go on? mar: i think it does not end. there are a lot of us in the valley trying to make it better not just for women by for my toilet desperate for minorities. i am also a latina woman, so it is a double way me. emily: -- a double whammy. emily: do you think this will permanently tarnish kleiner's reputation? mar: no, i think they will be welcoming more women into the firm. i'm pretty optimistic in general about what is going to happen. it is a good sign -- the new cs

class at stanford will be 50% women. that's where we begin. emily: that is good news. mar, barbara, think you for joining us. kleiner is adding a new partner this summer and they told me that partner is a woman. you can catch my complete interview with john doerr and beth seidenberg right here on studio 1.0. fitbit raised $732 million in a larger than expected ipo. they closed at $29.81 apiece. the company and some of its backers sold 36 .6 billion shares. -- 36.6 million shares. fitbit is racing to the top of the health tracking market.

they tripled sales last quarter and they started turning a profit last year. the growth is far from over says the ceo. >> there is $200 billion of consumer spending. in health and fitness. it is a huge market and no one-size-fits-all. we have a wide range of products. different sizes, form factors, battery life, supported different mobile platforms. we want to give people a variety of ways to enter our ecosystem. emily: of next, the fcc >> down -- emily: up next, the fcc cracks down on on annoying robo calls. but not every commissioner sides with the consumer. plus, how this robot make it into your living room. that is ahead. ♪

emily: an end to robo calling? maybe. the fcc voted, but the vote was 3-2. meaning at least two are opposed to ending this entirely. ajit pai is one of those. you cannot like the robocall during dinner? commissioner pai: i certainly do not. as i pointed out, that is one of the things that is so frustrating during the day but also at dinnertime. but 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.

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 rock band, who -- who already have broadband who have incomes much higher than the poverty threshold. it's not diverting these 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 -- a 100 million dollar fine against at&t for allegedly misleading consumers at about unlimited

data plans. why is this significant? guest: a couple reasons. the number catches your eye. it's the largest fine the fcc is 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: by concerns with the at&t case are a couple cold. -- are a couple fold. first, the ruling was completely rewritten in a way that no one previously ever expected.

back in 2010, the fcc said it was x. now they say it is next was wife -- it is x, y plus z. they ignored text messages the at&t sent. ignore that there were websites to allow customers to get this information. they simply sweep all of this information under the route to -- under the rug in order to reach a headline, pulling 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. guest: there are a number. a related program is one that talks about deploying universal

service funds for the extension of a rolled broadband, and you -- 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. also 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. 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. 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 for review and approval or 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 -- i have been gleaning details about from the trade piece myself. unfortunately i cannot do it with more authority than that. emily: craig, what is your take on comcast and t-mobile? guest: 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? guest: 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 makes sense to see if a possible diet might be possible -- possible tie up my be possible in the beginning of 2017. comcast would certainly be on the short list. 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 they feel like they should do 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. thank you to both of you for joining us. commissioner pai: thank you. ♪ [speaking japanese] emily: that is pepper.

softbank's humanoid robot. the company is teaming up with alibaba to develop robots that can work in the real world. they are investing $118 million each to take a part in softbank's project. pepper has more than 20 motors and super flexible arms. it's body language mimics a humans. up next, cisco in china, $10 million of investment. what does it mean for the company? plus, snapchat may be snapping up serious cash. how a 10-second spot leads to tens of thousands of dollars for the company. ♪

emily: it is time now for the daily byte, one number that tells a lot. 400,000 -- that is how much won 10 second add-on snapchat can cost you. one of these ads can be viewed up up to 20 million times. snapchat introduced live stories last year. the feature allows you to stream content from live events like the new york marathon. snapchat is currently valued at $16 billion. well, cisco steps up in china, a market where it has been losing business to competition. the outgoing ceo and his successor chuck robbins went to beijing to meet the vice premier and sign an agreement, pledging investment in china. how important is china to cisco?

here to discuss it, nolan, an analyst, and you are on the board of xiaomi. jason i want to start with you. jason it is a big deal. : 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 footprint. 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. what you make of this? is this sort of a breakthrough? tensions have been rising between china and the u.s. on

the nsa spying situation. guest: i think it is part of a strategy of adding more efficiency to the economy. 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. 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 valley. the labor market is really tight. there's a lot of labor and innovation cisco can invest in. they can leverage that talent in china. it will be tough for cisco to

take its revenue into china up given clinical tension, but -- given political 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? hans: i think cisco is demonstrating a stronger commitment to make it happen. you do see signing of documents, but not as much publicity as this one. $10 billion is a big number. emily: how much negotiation is going on behind the scenes? we know tim cook has talked to people at the highest level there, for example. hans: i think china knows is -- knows as consumption increased they will de-lever for the chinese. so, they want to get the efficiency from the internet to

innovate in traditionally off-line economy spirit of that strategy can work, someone argue it could be as impact those bringing the industrial revolution to china. emily: where specifically do expect to see cisco investing? jayson: they are specifically not telling us. [laughter] rmb and equity invest -- r&d equity investments noncontrolling investment. , hans: i agree. 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. that is it from san francisco. ♪

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