>> square has quietly followed to go public as the market heats up. ♪ >> this is a special edition of "bloomberg west" from the east coast, i'm matt miller. bezos adds a fortune to his fortune. air traffic control for drones why nasa is getting involved. tesla at $500 a share. is that crazy?

now to the lead, square has filed for public offering, this according to people with knowledge of the matter. the platform was founded by jack dorsey, you know him as a cofounder of twitter. currently he is the interim ceo. last year they processed $30 billion in payments from merchant customers. it is expanding into other areas like business lending. joining us to discuss their future is leslie picker who broke the story for bloomberg news. also the cofounder of button. leslie, why file confidentially isn't that suspect? >> because they can. they have less than $1 billion in revenue. he gives them the opportunity to

make revisions with the fcc, it is about a three month process. and if you are a small company like square, you can do that outside the public eye. most companies, it is close to 90% that can file confidentially, because they do not want all this back and forth with the fcc in public. matt: $30 billion is a lot to process, but not big enough to file publicly, is this a step they have taken early? most silicon valley companies wait until they are bigger to go public. >> i think what companies are worth and what they make in sales is different. you will see a lot of companies that do not have the revenue

that square has being valued at much higher. square has not raised money and a while so they could be going to the market as a fundraising event. there is so much private money out there it is possible that square has not been able to define -- in favorable terms. matt: what was it valuation last time it raised money? >> $6 billion. matt: what do you think about this? it seems like an early step. >> $30 billion in processing volume. matt: right. >> they take a percentage of that so it will be interesting

to see what the other elements of its business looks like when they are out there in the public. square capital, lending to small businesses, perhaps they are showing how healthy the other aspects are outside of court -- their core. this is their chance to show the other elements of the business outside of the pure processing. matt: does this give them a lead over competitors? >> i don't know about a lead. everyone from paypal to large banks are competitors, so there are certainly competitors. the visibility of being in the market and perhaps looking at how that 7.25% breaks down things they may do better on the risk side than other folks so

it is interesting. there are smart folks over there, they would not go public if there were not things under the hood. matt: twitter has been rocky and those the smart people are at twitter. sarah, does jack dorsey does he need to leave it square or is he focusing on it? >> the ceo of square, dorsey as we know, is also interim ceo at twitter right now as they conduct a search for a replacement for their last ceo. there were theories that dorsey would run both companies at the same time. the board is searching for a twitter ceo, but they say that they want a full-time ceo so it is not dorsey's job as long as

he stays at square. does he want to be ceo of square, or of twitter? i don't know if he can leave it square while they have this filing in the mix. matt: this is a great press move for them, maybe adding legitimacy to the business. can we expect other companies to come forward in the same sphere obviously paypal is a big presence. >> and we saw a filing from first data earlier in the week. we will see how the numbers of square compared to first data. matt: and we will see this in three months? >> we could or it could take longer. a management -- management change could change that.

it could be a year. it could be a wild before we see this thing come to market. that -- matt: ok, thank you for joining us. the story of the day has got to be amazon shares skyrocketing. this is after the company surprised investors with a profit, a tiny one. the move today gave them the market cap they needed to overtake walmart by the biggest retailer. walmart is still about five times bigger in revenue compared to amazon. amazon stock is up 71% this year and jeff raises is laughing -- bezos is laughing to the bank. he added to his personal fortune , $7 billion this morning a loan. coming up, google and amazon

developing air traffic control systems for drones. and the newest series among -- a hit, mr. robot. ♪

matt: it is official, at&t can

buy directv. it will create the largest provider in the u.s., but not without conditions. at&t must expand rock band service -- broadband service to homes and businesses and cannot discriminate against rival online services. now google wants to make it easier for drones to navigate the skies. the team is teaming up with other companies including nasa to develop an air traffic control system for unmanned aircraft. the government has not said how it will work but many organizations will attend a conference next week to discuss ideas. could this cause an explosion of commercial drone use? we have a drone pilot here with us as well as others.

derailment, thank you for joining us. let's -- tillman -- gentleman thank you for joining us. we will talk about who will run this. brian, whether or not this will be a government run network or a private network, is it possible that private companies could run these systems for drones? >> it is possible. or it could be a public, private partnership. the only thing that remains -- this is something i remains unseen. we will see this next week. matt: jesse, how difficult will this be to get up and running? people are talking as if this conference next week kicks off a gold mine of drones, but i expect red tape and the tech side of it will be difficult to

develop. >> this is a difficult challenge. you have stakeholders wanting access to this, different types of technology, so this is a means for facilitating discussion among companies to come to an agreement as to what the technology should look like so we can build a system. matt: jonathan, you have developed -- a devoted your life to drones. are there any standards among producers or any effort to reach standards? >> absolutely. right now, it is among hobbyists. it is an honor code. there are some standards that we adhere to. next week is the beginning of a process, it is not an event, by which a gun goes off and it is the wild west. we can now be in business -- no,

it is they start -- it is the start of a dialogue that could take years. matt: when will we have an air traffic control system that will allow a company to fly a drone across state lines and do business unmanned? >> it will come in phases. we are already having people fly in limited use cases, under exemptions from the faa. if you are talking about multiple drones in the air, they need to detect and avoid one another, be able to go into safe mode is something happens, there are rules associated with that. it will be a walk before you run process. it will be step-by-step. we can go with that. matt: what kind of companies

jonathan, who will take the lead here? >> i it is like the evolution of the internet. the government and educational institutions and commercial entities gave core pieces of the technology that evolved into a community effort. so, i'm working with a small company that in their way bring fleet management capabilities but there are a lot of little companies making sensors that use lasers that act like radar. that is a small component of this. and big companies like amazon and google have the resources and technology to make framework contributions to this. so there are many ecosystem components to this, very small and large, but they need to work

together as a system. the government plays a role in this in enabling the community to come together and contribute to standards that get adopted by all. matt: ok. thank you. now, to a hit among packers. mr. robot centers around a character named elliott, a sever security expert by day and a hacker by night. it has been already renewed. the lead actor joins us to discuss this project. >> i play elliott on mr. robot he is a cyber attack, he is -- cybertek who is trying to hack into people's lives, to connect with them on a different level.

everything we own on the computer is vulnerable. it is not really are is. i can take over my camera and not turn it off. i have a suspicion that someone is always watching me and after doing mr. robot on a daily basis and seeing what this guy is capable of, i don't think it is ludicrous to be thinking that way. we have received high accolades from people in the community hackers who appreciate how authentic the show is. there are a few who have wanted to join as tech experts on the show, that is cool. matt: that is mr. robot. a story i am watching closely judd testing is normal for professional athletes, but for professional gamers it will be something to expect as well.

though being policies will be enforced for professional gamers. this is huge for the industry and could be a sign that this is evolving into a main form of competitive entertainment. coming up tesla shares can they break $500 by the end of the year? and honda unveils its first vehicle with android auto. that is next. ♪

matt: now to the daily bite. the number is 380,000, that is the number of honda accords sold last year, the top-selling car and california. the giant has big plans for the next generation of this model. the 2016 a court will be the first to offer android auto and apple play. they hope that the high-tech will attract younger buyers. >> this is the same customer that buys this car, the ones that want tech. so we will be supporters of those under the age of 35. matt: they unveiled the new accord yesterday with google and apple working on cars of their own, we asked if they see these tech players as a threat. >> they are entering into a

stable industry and they are shaking things up. it is good. we embrace at honda, new competition, it is raising the bar. matt: honda is also launching a startup accelerator to encourage entrepreneurs to develop apps. tesla, shares are close to a record high $286. but it is also showing that 25% of its flow is being shorted. it could hit $500 by the end of the year. i am joined by portfolio manager cole. it is a bold call. analysts will make these calls for publicity, but i guess that you think this is legitimate. >> we think it is a widget --

legitimate target. we were one of the first to call this original tesla short squeeze in april a few years ago and we were right. we stayed away from this stock for a while. it really needed to digest the momentum. as we size up where things are going in the future, we see that it would rather be able -- bull and a pair at this point. matt: i remember that you are one of the very few investors that swam against the stream and i guess that you made a lot of money on that trade. >> we did very well. we stayed away from this for a while, but we are back in and going forward, because looking at the model, the make or break for this company is the issue of

moon strategy and the model ask as if the next -- ask -- ac as ifts -- as if they could turn into the next apple. matt: i took a look at your presentation, five reasons why it will hit $500 by the year end. if they do well with this vehicle, the sky is the limit until the third vehicle needs to come out. but, it is a big if. elon musk is great at putting up those moon targets, but he is also sometimes late. that model should already be here. >> has been late, but that goes to the focus they have on product quality and knowing that this is a make or break things for them. they will not release a product that is not perfect or will not

delight consumers. it is something i will be better than the previous model. we remember all the accolades that have come out and i expect them to deliver something that will make the market. there is a plenty of pr and announcements that they have kept up their sleeves. you will see that in the next six months. matt: what about the battery business? it is interesting to talk about, but there does not seem to be a real use case for these storage batteries. >> not yet, but if you look at where the world isn't going it is well-known that with shifting to reasonable power -- reusable power, this is a massive next big thing. it is something that will be like the internet with internet storage. they are well positioned as a

business, because there is so many ways to drive the cost of batteries down. it will be a huge winner. that is death only part of their long-term vision. today their vision is cars, but going forward it is about energy. matt: only a few seconds, left but what is the lawn must worth -- elon musk worth? >> if his airplane gets hit tomorrow, that would be -- he is the brand and the person. matt: thank you. cole wilcox. this is it for this edition. emily chang it will be back on monday. she will be talking about employees verse contractors. have a fantastic weekend. ♪

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visit philipslifeline.com/caregiver today or call this number for your free brochure and ask about free activation. mark: i'm mark halperin. john: what all do respect to donald trump, you just found your secretary of state. ♪ dennis rodman endorsement for donald trump. first, the cash of the day. the new york times broke the story that two inspector general's requested a review whether e-mails from hillary clinton's personal cap was mishandled and one of the ig's