perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. >> read it cofounder returns as ceo. why it may be the toughest intact after ellen pao's resignation. emily: i am emily chang, and this is "bloomberg west." coming up, the gaming world loses a pioneer the nintendo president. we look at his legacy in the top candidates to lead the company. plus google capital lead -- bets big. i'm joined by the ceo as well as google capitals gene. a firm founder and ceo max lev

chin, all of that ahead on bloomberg west. first to delete. read its revolt over interim ceo is simmering as the company struggles to define its future. pao announced her resignation after more than 200,000 people called for her to step down. in a post on reddit, he believed it is because the board asked her to demonstrate higher user growth then she got she could deliver. he cofounder steve huffman, is , taking the reins. he has already said he plans to experiment with monetization strategy, improve the relationship with users, and do more to define its content policy. huffman says he is not going to stop some of her policies. her controversial policies, including a move to ban offensive celebrated

sub-reddits. cheeseburger is credited with making the idea of a internet meme mainstream. also, a firm ceo max levchin, also the chairman of yelp. i'm so curious on what your take is. and just how difficult a job steve is stepping into. max: i'm not close enough to know what it's going on but it is close enough to silicon valley soap opera going on in real life. and that it is going to be a very tough job. the juxtaposition of an active user base and a company that has to depend on a user base for all the content it is a codependent relationship. he people need to believe the

management has their best interest in mind. when they don't, they get angry. so i wonder, what is going on here. but the history of reddit is replete with these complicated upheavals. emily: then, i want to bring you into this. ben altman said it was sickening to see some of the things they wrote about ellen. if they cannot learn to balance authenticity and compassion, it may be a great website but it will never be a truly great community. do you think that reddit should be the place for this sort of ugly underbelly of the internet? ben: anytime you scale a business you're going to see amazing content as well as terrible people acting terribly, but what is important is to look at the gender dynamic that happened to ellen. she is a female ceo, having gone through a sexual harassment

lawsuit that was unsuccessful and also the amount of vitriol not only regarding her job, but regarding her gender, is what caused a lot of people to say this is absolutely terrible, and resisting the calls from the community even more so. emily: so do you think that steve has a better chance just because he is a man? ben: i see that steve has a better chance not because he is a man but because he is the authenticity of being a cofounder. one of the things ellen lacked was not only having to be able of you. i am authentically one of you from the beginning. that is something the cofounders can actually do. the users are going to give the cofounders a lot more leeway even though they may not be the best choice. emily: max, you are nodding. they are claiming freedom of speech, but you see anti-women anti-semitic racist comments on , reddit. is that kind of stuff ok if they want to become a strong business? not just a community, but a business?

max: i do not think it is ok period. i take a very strong stand against hate speech. there is freedom of speech and then there is unacceptable. emily: so how does reddit handle that? max: saying this is what is ok and this is what is not is necessary. i don't think people who say terriblethings will stick around, but i don't think reddit wants them to stick around. it can be a source of opinions, controversial opinions but in , the name of stability. the only president who can say this is how it will be from now on is a founder. emily: i went to hear from both of you, and, ben, i will start with you. what can read it be? ben: it can be the front page of the web. however the traffic has gone to , mobile.

one of the biggest challenges ellen faced with not just the , updating of the technology, but consumption has really changed. facebook, pinterest, twitter. now they can actually fill very different roles, and reddit's core value is that it can grow into an anonymous community, and the same tactic that allows people to flower their creativity and expression is the same one that actually also harbors some of these darker sides. emily: quickly, max, can reddit be a strong business? what do you think? max: i think so. it is a real time anonymous poll of public opinion, which sometimes turn -- turns ugly but and there is interesting traffic. emily: all right, max, with me for the half-hour, and ben thank you for joining us, and we will see what kind of move steve makes.

new research confirms apple is dominating the smartphone market and i mean dominating. the iphone to a colossal 92% of the industry operating income in the last quarter, despite only making up 20% of the overall smartphone market. if you are double checking the numbers, samsung, 15% puts the total market past 100%. that is because the remaining top makers blackberry, lenovo either took losses or broke even. next tuesday, people will be looking for the growth. up next, hot news from the world of cyber security. crowded strike poses a month of round with google cavity -- google capital at the helm. i speak to both companies after the break. and the legacy of the nintendo ceo, satoru iwata, and who may be the next leader, and we will leave you with a picture of the pixar creation. peekaboo robot.

no word on whether or not the robot -- they plan to continue to develop the robot to give it more human emotions. ♪

emily: now, to a major loss at nintendo. the company's president and ceo has died of cancer at age 55. satoru iwata started his career as a gaming programmer in the 80's. in 2000 he joined nintendo. two years later he became president. he launched the famous wii console as well as the ds and the gamecube, and he was much more than a figurehead.

he was respected by colleagues and beloved by fans, and there were #, thank you iwata. , max levchin is still with me. ceo and cofounder of a firm. how big a loss is this for nintendo and the gaming community? >> this is a huge loss for nintendo and for the gaming industry. if you look at the executives who have run the gaming companies, or microsoft or sony, a lot of times, we have the gaming development, and he was a gamer at heart, and he was somebody who was through and through a gamer and not necessarily just a multimedia guy, so he is heartfelt by everybody, and it is no surprise that it is all over twitter and worldwide today. emily: we heard from another nintendo gaming executive, who told us it will be years before

his impact on nintendo and the full gaming industry will be fully appreciated. for most of us fortunate to work with them is his mentorship and especially his friendship. max, you actually spent a lot of time in the gaming space. when you were working on slide. what do you think about this loss? max: it was a tragedy, frankly. the man was in his prime, and he could have made another tremendous set of contributions. when i was studying his work, he reinvented the rules anytime he did not like the battle. he went up against playstation and microsoft's xbox 360 by creating this tiny, low powered console and redefining what it meant to play games at home. he introduced the games that the nintendo wii was so famous for he created an entire new category, mostly because he realized he could not eat the other guys. his inventiveness was just amazing. this is sad to hear. emily: so, p.j., where does

nintendo go from here? what do you see in terms of future partnerships in terms of products? who is next to lead? pj: i think that's a great question. a lot of his legacy is not only did he find the secret sauce for the wii and create something that was a great legacy of hardware, but he also helped transition the company into the digital age and set them up for new revenue streams that they had never seen before, and the partnership with theda and on -- a dna on the mobile front is huge. they talked about amusement parks coming forward. they are now into the toy business with miibos, and eu have the next likely logical expansion which would be what do you do with the ip with tv and movies, so all of these things that are coming have been set up with iwata and his leadership, and these are things we are

going to see for years. and you mentioned reggie. reggie is a great gentleman who is running north america quite successfully. i am not sure if they bring some of the over from the u.s., or do they stay locally, and stay with somebody in the japanese corporate culture background? i think it will be likely from japan. emily: interesting. i do know that reggie has his own kind of fan base and the gaming world. ok, p.j. mcnealy, thank you for joining us. now, if you needed any further evidence that security is red hot right now, crowd strike has just raised $100 million in a funding round led by google capital. i am joined by two at the center. google capital general partner with us in the studio, and in phoenix, crowd strike ceo george.

$100 million. you guys are seeing 700% growth by some metrics. how can you keep that kind of growth up? george: well, we are lucky to have a partner in google capital, and we have seen tremendous growth. we are excited. we have got some world-class customers, and as you know, you cannot pick up a newspaper without seeing this, and this is driving an overall environment for the security marketplace. and when you couple that with the fact that the existing legacy technologies are just not capable of dealing with this advanced threat, it really is an opportunity for crowdstrike. emily: how does this play into your other investments at google capital? late stage investment, technology not to compete with google. guest: from a google perspective, security is something that they take very seriously, foremost in our mind.

emily: is google a crowd strike customer? guest: google does not disclose the in-house relationships, but, certainly, crowdstrike is very well known to google and to the environment, more broadly. max: i'm a long-term maker and consumer of the products. especially during the paypal years, one of the truisms is people would like to pay for it after the attack has successfully occurred on their network. how are you finding your sales process, your ability to convince people that this is something they finally be to pay attention to? and i ensure that the newspaper coverage helps. how are things changing on that side? -- in the buying side. emily: george, you take that. george: if you look at where security has been, it really is a board level discussion, and i think that is one of the big drivers and changes that we have seen. the board is very concerned with their brand.

their reputation, their relationships with customers their exposure and the cost of a , data breach, and that is being driven top down into these companies. years ago we would have to evangelize security. now it is topical at board meetings. and board members are asking some tough questions in making sure their companies are focused on security. that has really been a big boost for us and the security industry, in general. emily: now, gene, looking at some of the other companies in google capital portfolio surveymonkey and glass door, how , are you involving the strategy at google capital? what is the strategy? in google ventures recently did an earlier investment in uber, and then there was self driving cars and ride sharing, and now they are sort of competing with each other. what is this tragedy -- the strategy? guest: that is what google wants to see. and the strategy to do that is to try to find sectors where google can bring expertise in the form of our people to really

support companies to grow rapidly, and so in general crowdstrike would be a good example of a kind of company we like to invest in that has a focus not so much in doing what google is doing per se, but we are fellow travelers in the technology space, and we are able to support this relative to the financial investment. emily: and what is our take on the environment right now, our valuations working from your perspective? guest: it is not terribly controversial to say that valuations are relatively frothy. there are a number of companies we are excited to be with, so it is an interesting time. emily: so is crowdstrike the latest unicorn? what valuation are we talking about? gene has deferred to you george. george: we are not specifically giving out specific numbers, but i would say unicorn is a good

way to describe it. approaching unicorn status. emily: ok, what about your plans to go public? george: at this play we have a lot of opportunity in front of us. really what we are focused on his customer acquisition geographic expansion, building out our falcon platform and redefining the endpoint security market where other players and antivirus technologies are falling down. emily: ok. approaching unicorn status. i will take that, george, and from google capital, thank you both. still to come, max's creation of hit after hit. including yelp, slide and affirm. we will check out his latest creation, after the break. ♪

emily: it is time now for the daily byte, 2.1 billion dollars, and that is the value of short sale positions tied to just $5 billion worth of games stocks, that is 16 times the average for the s&p 500. a lot of investors think downloadable games will kill b -- in the game store culture but here is the surprising part. gamestop shares are up about 40% this year with some analysts saying it is a run. one possible reason is their trade-in program for used games. another story we are watching, comcast is the latest cable giant to unveil a package for cord cutters, called stream, going for $15 a month, including hbo. along with the big four networks. the offering, the largest pay-tv provider to take on web alternatives like hulu and

netflix. as well as the $20 service from dish. back to our special guest host max levchin, launching today a new company and product called asymmetrica, and when i saw this, i thought it was exactly what i need, but it a -- basically makes it easier to read. max: yes, it improves reading comprehension. through micro typography. it instantly indistinguishably introduces special spacing between words and letters on any webpage, creates these word bundles. emily: we actually have the way it looks here, the original, and then the way it looks. explain to me what is going on. max: after 40 years of research, it shows that humans comprehend text when classes are separated slightly better visually than when they are just typeset in a standard way, and comprehension

can go up up to 40%, so you can be up to a 40% better reader which i certainly can use. emily: and it works with any link? max: yes, it is a browser plug-in. created by two guys that started the company. as i was getting busier, i did not forget about trying crazy projects. this is one of those things. one of the guys, ken brownfield worked with me on thomas every product i started, so i am super excited. it is amazing. it is something that you add to your browser. it works with every major browser. it is a plug-in, and automatically changes the layout of every text page that you encounter on the web and makes it ever so slightly more readable. emily: very cool. you also have more news. you are getting into student loans, especially for those who want to go to coding or -- why take on this issue of student debt? max: it is super straightforward.

we are building this company on the premise that the world needs honest financing. financial products, services. banks have lost their credibility with the new generation of millenials, and do not trust are like big banks. they are looking for something better. to me, the best use credit for a person is to borrow money to invest in themselves, take -- make themselves more employable, a higher earning and able person. it would be inappropriate not to be lending to students. the best for my money, or at least in my opinion, the kind of education today is if you can go and get yourself a 10-week program that takes you from a geography major who is probably , not very high hireable, to a javascript developer or something which typically quadruples your earnings capacity.

it is a great way to participate in the economy. and the one thing stopping people from taking these classes is financial aid, and that is where we come in. emily: how do u.s. ask -- assess the risk that is coming in? that is a problem, student debt. max: it certainly is. that is our specialty. we are a bunch of young and old. a bunch of people who have cut our teeth on assessing risk. the old idea that we use for our point of sale products at the merchant checkouts and other kinds of data. we are still testing lots of new models, to see about repayment and we are confident we can take on the risk. emily: well, good to know. and good to hear as a former student myself. max levchin, a former paypal cofounder affirm, thank you so much for joining us. it is always great to have you. and that does it for this edition of "bloomberg west." we will see you tomorrow. that does it for today from san francisco. ♪

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>> from our studios in new york city, this is charlie rose. >> good evening. i'm ian bremmer filling in for tiny rent -- charlie rose. we begin with iran nuclear negotiations. secretary of state john kerry remains in vienna or talks with iran, now in the 15th day. it is the longest trip abroad by any u.s. secretary of state by -- since george schultz. the third deadline has come and gone but talks extended until monday. both sides claim slow hard progress. meanwhile, opp