emily: we are learning of another attack. is there hopes of a cyber arms deal? ♪ emily: this is "bloomberg west." i'm emily chang. coming up, alibaba shares down today as the company and its and down.s lockup,

what is yahoo!'s next move? plus, apple drives ahead for his plan with an electric car and investors are pumping the brakes. eddie kickstarter is reincorporated as a public benefit corporation, saying they never want to sell or go public. cofounder, nancy strickland. all of that ahead on "bloomberg west." first to our lead, china's resident xi jinping is kicking off his first visit to the u.s. with a stopover in seattle this week. in a rare face to face, cap -- top chinese government leaders will meet with u.s. tech leaders like tim cook, satya nadella, and jeff bezos. yet, tensions loom. president obama has hinted at new sanctions on cyberattacks, while they are looking to strike a potentially groundbreaking cyber arms deal. joining me is cyber security expert with me from sanford, --

glenn solomon, an active investor in china. glenn, we have been getting s about what will happen, names like bob iger. what do you think can be accomplished at a meeting like this? you know, emily, i think it is about the interest of the tech companies in china, that everybody who is anybody in technology is going to be at this meeting. i think the dialogue will be somewhat substantive in that people will be given the opportunity to talk about their aspirations in china and develop relationships with members of the government who are important in entering china, but i also think you will see following this meeting more activity, as we have already begun to see, whether it be from uber or airbnb, certainly apple and now google.

more and more companies will be seen entering the chinese market because it is so attractive. emily: at the same time, hack attacks keep happening. the talks could eventually prevent the chinese war hinder the chinese from hacking critical infrastructure but , nothing to protect intellectual property right now. be the biggest issue right now. what would it actually accomplish? brian: it is progress that they are discussing cyber. second, what they are basically doing is continuing to negotiate. they are looking for some early steps that indicate what they are willing to do. for example, china is perhaps going to say that they will not attack critical infrastructure, and they will put some rules to about where the lanes

are, basically about fair play. we believe you can engage in certain types of espionage, but for your government purpose but not commercial. emily: why make an agreement at all if businesses are the ones most vulnerable from hack attacks coming from china? glenn: when you look at cyber security and cyberattacks may need to distinguish between state-sponsored activity and commercial activity. world,he state sponsored it is fair to say that governments all over the globe are perpetrating cyber activity, whether our government here in the u.s., or the chinese government, or governments from all major regions of the world. you are seeing lots of state-sponsored activity underway, and they are

"legitimate purposes," espionage and maybe there will be rules of the road that are established from these conversations. but there are also commercial -oriented attacks, and i think what apple announced on its app store this weekend is probably a good example of commercial activity, people trying to get access to information for whatever reason they may see, hopefully to get some profit. emily: brian, i want to talk to you a little bit more about this apple attacks we saw over the weekend, the first of its kind, store,hey hacked the app and huge apps, and chinese companies, no less. what. make of this happening? how significant is it? brian: first, we don't know who did it. but this was quite ingenious in that they had the ability to actually demonstrate advertising that you can get an access code through baidu and it was easier

to access than through apple. and when they loaded these up in the apple store, apple did not catch that they were running fraudulent code. and what the code was looking to do was to steal your information and take those credentials and use them elsewhere. so i think it is significant, but the funny thing is is it is not surprising anymore. we see these attacks over and over again and it into to demonstrate that nobody is secure and everybody needs to take steps that they may not think are necessary to check code, do application white listing, and put other techniques in place so they can be part of the solution. emily: i mentioned alibaba at the top, and there are broader concerns about what is going on in the chinese markets and volatility that we are seeing there. alibaba has not fared well since its ipo, and today, the lockup expired. how concerned with what is

happening are you? and what do you see as the long-term for alibaba? glenn: good question. things like the lockup tend to hit companies in terms of their stock price because there is -- supply coming onto the markets. many techk back at names, buying right now is a pretty good thing to do. theks 10 to react well in months after lockup, so you may see that alibaba has a rebound in the not to notice to future, but longer-term, the story around alibaba is the growth in the new economy in china, and we are very bullish on china, particularly the new economy in china. we think there really is a dichotomy between the old economy china, the state-owned enterprise, largely inefficient

businesses, where the stocks of those companies have tended not to do well with the local indexes in china, contrasted with the new, with the tech in china thatsses are seeing the same thing going on in china that we see here, where software is eating the world. software is eating the u.s., and the same thing is going on in china, so we are bullish long-term in china, that continuing to be the case, and we think alibaba is a beneficiary of that, as well. emily: and a quick last question, glenn. is some questions about how it would be taxed at yahoo!, but what about that? we have 30 seconds. glenn: yahoo! is a really interesting business. it is mostly a tracking dock for -- stock for alibaba these days. and because there is now some glimmer of hope that yahoo! shareholders will be able to get

access to alibaba perhaps in a more tax favored way, you are seen positive reaction to that news, but i think in the long term, yahoo! is in a situation where lots of executives have been leaving and thinking about leaving, so i do not see a great way out for yahoo!, alibaba their stake in alibaba notwithstanding. emily: their former cmo left recently. glenn and brian, thank you. we will be watching to see how this meeting in seattle progresses. now, news just out that scott walker is quitting the presidential race according to "the new york times wrote that could potentially help a another , and carly fiorina has gone up to 15% of the vote, up record, but her business remains a serious sticking point. at the helm of hp, the company

lost over half its value, and 30,000 people were laid off. disputes how bad her tenure was and points to the multimillionaire venture capitalists, tom perkins, who was on the board of hbs the time, and tom perkins, who was on the board of hp at that time, he took out a full-page ad to defend her, calling her a n excellent ceo. but is tom perkins really the guy fiorina want making the case for her to be president? you might remember he compared the "war on the 1% to the persecution of the jews." i spoke to him about that comparison. let's listen. >> let the rich get richer, but along the way they bring , everybody else with them when the system is working. emily: you're a multimillionaire. >> no. i am not a billionaire, i'm a millionaire. i have created some billionaires, but i am unfortunately not one. emily: you have fancy cars and

yachts and underwater submersibles. >> airplane. underwater airplane. emily: i saw it. it is basically an airplane that flies underwater. are you worried that you are divorced from reality? are you divorced from reality? >> i do not know if anyone can answer that. truthfully, i don't think so. we got into a discussion about andidiocy of rolex watches, why does any man need a rolex watch, and it is a symbol of terrible values, and etc. etc., but i think that is a little silly. this isn't a rolex. i could buy a sixpack of rolexes for this, but so what? emily: tom perkins there, a big backer of carly fiorina. coming up, kickstarter is say no to profit over people. the ceo tells us why he is

refocusing his mission, next. ♪

emily: in the age of billion dollar plus valuations and splashy ipo's, it is rare to say -- for a ceo to say he never wants his company to go public. that happened with kickstarter over the weekend. it reincorporated as a public benefit corporation, which means it is legally bound to do good for the public. joining me now to explain this move is the cofounder and ceo,

yancey strickler. joining me from new york. it is interesting about how you made this decision. how did you do this? and how did you come to the decision that you would, indeed, incorporate? yancey: this is actually something that we were focused on from the very beginning. we were always focused on building an organization that reflected our ideals and was always charting its own course. a public benefit corporation didn't exist the way does now when we started six years ago. when delaware passed a law in 2013 that you could become a public benefit corporation, we were excited to make that change. we have it on our website, and our charter details the commitment we are making to the community and the public. and we have always tried to be values driven and idealistic. we have a new commitment we announced today of donating 5%

of our annual post-tax profits in support of music education and inequality, and it was the sort of things we want to continue to be. so much talk on unicorns, and what is your thought about the path of that other companies are pursuing question or is it wrong to pursue a big, splashy ipo, and what should these companies be doing if it is for the public good? yancey: i think from an entrepreneurial perspective you just have to be aware of what you are in it for. for us, it is sustain long-term growth. we want to be a service that is long time, andry we have thought of ourselves as operating as if we were a public trust, and we have a step where we have been a revenue model and we have operated in the black for the past five years.

and we have shareholders and investors that deeply believe the things we do, so when you have that alignment at the management and investor level, you can make a choice like this. you can make a decision that certainly costs the company potential profits, but we believe it is in the long-term better interest. and so for communal, and onto poor, it is especially important that you and your investors have that kind of alignment, where everyone knows what exactly is the outcome, so for some companies, that is an exit, and that is what venture capital is looking for, but we have always wanted to do it differently, and we have been fortunate to have investors like fred wilson, who are aligned around this same sort of approach. emily: you have also got jack dorsey and others, and i am curious. how did they take this decision, and how much convincing did it take them to get them to the point of where they were, ok, we are behind you on this?

yancey: we have always been open about who we are and i think people have enjoyed that. this was put out to a vote among the kickstarter shareholders, includes former and current which employees. there was not a single dissenting voice, and this is how we have always operated, and a think collectively, there with pride, to make this statement today and so clearly communicate what we stand for. emily: any idea of how this can impact your recruiting? yancey: my expectation is that it will be very powerful for recruiting. this is a frame we have given every employee that we have brought in, what we think about the long-term prospects of the business, but i strongly believe it is going to attract a certain type of person to us, so we are regularly bringing in high-quality talent, and we pay market salaries, and we have a great team of just over 100 at new york city, so i think this

is just going to be a coma for the type of candidates we are trying to attract. emily: do you think there is anything more that other technology company who maybe do not go for the pbc thing, but what about giving back to the public? yancey: i think ensuring consistency in your operations is very important. you do not want to be professing one value in one channel and doing something different elsewhere. for people starting, young entrepreneurs, i would encourage them to become a benefit corporation from the start. that way, you're able to thetify the values from beginning, and you do not have a shareholder vote, and it does not restrict you. you are sure a for-profit company. if we could have done that years ago, we would have. emily: interesting stuff, the kickstarter cofounder and ceo.

yancey: thank you. emily: and now, speeding up the plans to build an electric car, tesla. they want to have them on the road in four years, this according to the wall street journal, who said apple spent over a year investigating options, including meeting with government officials in california. the company is reportedly tripling the six-person team leading the project, code-named titan, and has been on a hiring spree. in recent months, apple has been signing on experts, and while their first electric vehicle probably will not be fully autonomous, a driverless car could still be in its future. coming up, a virtual reality gets a big vote of confidence from disney. the ceo tells us his plans, next. ♪

emily: it's time now for the daily bike, one number that tells a whole lot, and today's number is 14. that is the number of emmy award s hbo took home last night, giving them the title of the undisputed network. why is that important? because amazon and netflix have been trying to steal their crowd -- crown with original content, but a look at last night's scoreboard shows that from a critic's standpoint it is still safe. awards,entral had four and stay in virtual reality, a startup jaunt has just raised andmillion led by disney, it has bragging rights as the vr company to date,

and the founder joins me. great to have you back on the show. what do you plan to do with this money now that the coffers are full? jens: where going to scale up. we have a lot of pieces to jaunt. we have a hardware team that has built a camera that is a very advanced software camera. and we do photography software and apps, where you can consume the content. emily: you have done some interesting things to leverage your relationship with disney, and what else will we see? jens: the first we did is where you can find yourself on the rooftop in damascus, and we tend to do a lot of work with our partners, not just in news. we are very excited about storytelling. taking vr from being an

it toential item, actually being a part of a story and telling an entertaining story, and that is why the strategic round is important for us. storytelling,that is it production, making original content? jens: there will be people who sell the cameras, people who provide content, and for us the , key is the content. we think as people get the headsets, they will want to go and explore. they will try games. they are going to want cat videos in vr. side, are on the high-end delivering high-end content. emily: how is your company and your technology different from what oculus has to offer? jens: the key is the cinematic as recorded with a camera,

opposed to cg or animation, and that is really one of the key difference is. the other key difference is we partner with the creative community. that is we do not have the house, but we work with brands and independent filmmakers to create content. emily: and your hardware is available to partners. do you see making that commercially available? jens: maybe eventually, but right now it is very high-end and custom-made hardware. emily: one will vr be mainstream, how many years are we talking? jens: i think next year. emily: next year? jens: we have tremendous headsets coming online, oculus, rift, and the sony playstation vr is coming. once it is in place, we think it is going to go mainstream. emily: wow, i'm going to hold you to that. thanks for joining us here on

"bloomberg west." that does it for today's edition. tomorrow, we will bring you the winner of the google science fair. you do not want to miss it. more on that breaking news about scott walker, coming up. ♪ ♪

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bettie: welcome to this special edition. i travel to china and spoke with a former ambassador to the united