woman snoring take the roar out of snore. yet another innovation only at a sleep number store. emily: stakes are high as xi jinping makes an appearance in the u.s. ♪ emily: this is "bloomberg west." i'm emily chang. coming up, alibaba shares down today as the company and its lockup. what is yahoo!'s next move? plus, apple drives ahead for his plan with an electric car and

tesla investors are pumping the brakes. and practically what creed really operating as a public and if it -- as a public benefit corporation. first to our lead, china's president 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. tensions loom. president obama has hinted at new sanctions on cyberattacks, while u.s. officials are looking to strike a potentially groundbreaking cyber arms deal. joining me is cyber security expert with me from stanford, glenn solomon, an active investor in china. what will actually happen at this meeting?

we know more about the names that will be there. what do you think will actually be accomplished at a meeting like this? >> i think it is an indication of the interest amongst the tech companies in silicon valley in china, that anybody who is -- everybody that is anybody will be at this meeting. i think the dialogue will be somewhat substantive in that people will be given the opportunity to talk about their aspiration china and develop relationships with members of the government who are important entering china. but i think you will also following this meeting more activity from what we have already begun to see, whether from uber or airbnb, certainly apple and google. more companies will be seen entering the chinese market because it is so attractive. emily: at the same time, hack attack keep happening.

the talks could eventually hinder the chinese from program -- from critical infrastructure, but nothing to protect intellectual property right now. what would it actually accomplish? >> 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 they will not attack vertical infrastructure and they will put some rules to the road, basically for fair -- basically for fair play. we believe you can engage in certain types of espionage, but not commercial.

emily: why make an agreement at all if businesses are the ones most vulnerable from hack attacks from china? glenn: when you look at cyber security and cyberattacks may need to distinguish between state-sponsored activity and commercial activity. in the state-sponsored world, it is fair to say governments all over the world 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. i think the attack that 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 about the apple attack over the weekend, the first of its kind. these are huge companies, and chinese companies, no less. what do you make of 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 did not catch that they were running fraudulent code.

they were looking to steal your information and take those credentials and use them elsewhere. it is not surprising. we see these attacks over and over again and it demonstrates that nobody is secure and everybody needs to take steps that they may not think are necessary to check code and put other techniques in place so they can be part of the solution. emily: 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 with the lockup, how concerned with what is happening are you? what do you see as the long-term for alibaba? glenn: good question. there is more sublime it comes

-- there is more supply that comes into the market and as people anticipate that, stocks tend to go down. actually, stocks tend to act well in the months ensuing after lockup. you may find that a lot has a rebound in the not-too-distant future. the longer-term story for alibaba is the growth in the economy in china. as you may know, my company is very bullish on capital in china. the state owned enterprise, largely inefficient businesses where the stocks of those companies have tended not to do well, and locals have contracted with newer companies.

we are seeing the same thing in china where -- that we see here, where software is eating the world. we are bullish long-term on that continuing to be the case and we think alibaba is a beneficiary of that as well. emily: obviously, yahoo! is sitting on a huge stake and there are some questions about how it would be taxed. we have 30 seconds. glenn: yahoo! is a really interesting business. it is mostly a tracking stock for alibaba these days full -- days. and now that many think they will be getting a better access to alibaba in a more positive way, that has reacted positively. but i think with executive living and thinking about

leaving, i don't see a way out that is great for yahoo!. their stake in alibaba notwithstanding. emily: we will be watching to see how this meeting in seattle progresses. news just out that scott walker is quitting the presidential race according to the "new york times." a new cnn poll shows that carly fiorina has vaulted into second place with a 15% vote. but her business record remains a serious sticking point. with fiorina at the helm of hp, the company lost over 30% of its value and 30,000 people were laid off.

fiorina disputes it. tom perkins, who was on the board of hp at that time, he took out a full-page ad to defend her, calling her an 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." >> let the rich get richer, but they bring everybody else with them when the system is working. emily: you're a multimillionaire. >> 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 submersibles. >> underwater airplane. emily: do you worry at all that

you are divorced from reality? are you divorced from reality? >> i don't think anyone can honestly answer that. truthfully, i don't think so. we got into a discussion about rolex watches, that it is a symbol of terrible values, etc. i think that's 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 tells us why he is refocusing omission, 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 is reincorporating as a public benefit corporation, which means it is legally bound to do good for the public. joining me now is the ceo, yancey strickler.

why are you doing this? how did you come to the decision that you would, indeed, incorporate? yancey: we were always focus on building an organization that reflected our ideals and was 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 drafter a charted. it 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 literacy overall. but as far as the company, the

document shows what we want to be. emily: so much talk of unicorns, what is your take on what other companies are pursuing? is it wrong to pursue a flashy ipo and what should companies be doing for the public good if they go the public route? yancey: no, i don't think it's wrong. i think from an entrepreneurial perspective you just have to be aware of what you are in it. for us, it is sustained long-term growth. we want to be a service that is around and we have often thought about operating as if we are a public trust. we have been a revenue model and we have operated in the black for the past five years. and we have shareholder investors that deeply believe in the things that we do. 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. for an entrepreneur, it is important that you have that kind of alignment between the company and shareholders. we always wanted to do it quite differently, so we have been fortunate to have great investors who are aligned around the same sort of approach. emily: i'm curious, how did they take this decision? how much convincing did it take to get them to the point where they were like, ok, we are behind you? 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, which includes former and

current employees. there was not a single dissenting voice. this is consistent with how we have operated. we are proud to make statement today and clearly communicate what it is we stand for. emily: any concerns about how this could impact your recruiting? yancey: my expectation is that it will be very powerful for recruiting. this is what we've given to every person that was brought in we hired them, to be clear about the values and a long-term prospects of the business. i strongly believe this will attract a certain sort of person to us. we are regularly bringing high-quality talent and with a -- we pay market salaries and we have a team of just over 100 here in new york city. emily: do you think there is anything more that other technology companies who maybe

do not go for the pvc thing, what do you think others can do to give back to the public? yancey: i think ensuring consistency in your operations is very important. you do not want to have one thing going on one channel and something quite different elsewhere. for those considering starting as entrepreneurs, i would encourage them to become a benefit corporation from the start. it doesn't restrict you in any real way. you are still a for-profit company. if we had the idea to do that 10 years ago, we would have. emily: thank you for joining us. in today's edition of drives, apple taking on tesla. the iphone maker reportedly speeding up its plans to build an electric car and hopefully 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 tripling the team leading the project, code-named titan, and has been on a hiring spree. in recent months, apple has been working on the electric battery and a driverless car could still be in its future. coming up, a big vote of confidence from disney. the ceo tells us his plans. ♪

emily: it's time now for the daily byte, one number that tells a whole lot, and today's number is 14. that is the number of emmy

awards hbo took home last night, giving them the title of the undisputed winner among networks. why is that important? because amazon and netflix have been trying to steal their crown with original content, but a look at last night's awards show that hbo's dominance from a critic's standpoint it is still safe. virtual reality start up jaunt has just raised $65 million led by disney. it gives it bragging rights as the most funded the vr company to date. the founder and ceo joins me. what do you plan to do with this money now that the coffers are full? >> basically, we will scale of -- up operations.

we have a lot of pieces to jaunt. we have jaunt studios. we have a hardware team that has built a camera that is a very advanced software camera. emily: you have done some interesting things to leverage your relationship with disney. vr news patch area, for example. what else will we see? jens: the first thing we did was the rooftop camera in syria, where you can ask you find yourself on the rooftop. we are very excited about storytelling in general, taking vr from being on a work cap or -- rooftop or in a temple and actually being part of a story, and entertaining story. emily: on that note of

storytelling, what do you see as the biggest opportunity? selling the hardware, selling the headset, or production, making original content? jens: there will be people who sell the cameras, people who manufacture the content. 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 and cat videos in vr. we deliver the high-end content. emily: you have jaunt studios. how is your company and your technology different from what oculus has to offer? jens: the key is the cinematic art. we recorded it with a camera as opposed to cg or animation. one of the key differences. the other difference is we partner with a creative community. we don't have in-house, but we

work with independent film studios and brands and other makers to create these. emily: the hardware, do you you see it as commercially available? jens: maybe eventually, but right now it is very high-end and custom-made hardware. emily: when 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, and risk is coming online, sony playstation vr is coming. emily: i'm going to hold you to that. thank you for joining us. did you hear that? next year for vr. tomorrow on the show, we will bring you the winner of this year's google science fair. you do not want to miss it. more on the breaking news about scott walker coming up. ♪

announcer: on today's paid presentation for cindy crawford's meaningfea