emily: it is day two at the vanity fair new establishment summit, covering intersection of hollywood, wall street, and silicon valley. i am emily chang and this is "bloomberg west." i will ask the twitter cofounder for his take on jack dorsey overseeing two companies. dick costolo has a new job. i will be sitting down with another round of heavyweights,

including tim armstrong, brian grazer, and the chief creative officer for jawbone. to our lead, a vote of confidence for jack dorsey. a saudi arabian billionaire and his investment company have boosted their combined stake in twitter to more than 5%. the purchase gives the company the second-biggest stake in twitter, worth about a billion dollars. it puts him ahead of ceo dorsey, which owns about 3%. brad stone and i caught up with ev williams earlier today in his first interview. he was on the executive search committee.

we started by asking him about their decision. ev: everyone knew jack was capable and he had a unique perspective on the company. there is a question of could he do the twitter job and the square job. we wanted to see what our options are. eventually, we thought the combination of what jack brings to the table and what he had already done in the last three or four months convinced us he was the best person for the job. emily: how do you really feel about the fact that he is doing two jobs? elon musk said he does not recommend it. >> i do not think jack would recommend either. he has his commitments at square. it is not ideal. no one would say this is ideal.

it did not change the fact that we thought despite that, he was the best choice. >> your work is not done. what are you looking for in the new twitter board and chairman? ev: the beginnings of figuring that out really, so i cannot speak to that. we were fully focused on the ceo search for a while. he is going to play a big role. >> a lot of attention has been paid to the ev-jack relationship. how is it doing? ev: it is better than it has been in years. we have come together through this process. twitter is like our mutual child. we have come together and we hold its future as our highest

priority and we see eye to eye when it comes to the future of twitter. emily: how much will you be working with him on the product going forward? ev: i am happy to be helpful where i can. i am fully focused on medium. i am not as good at splitting my time as jack is. emily: you have a big event in san francisco tonight. give us a clue. ev: we will unveil a few things. some of it is product. we have wrapped up a bunch of new features. some partnerships we are announcing at the same time. a little bit about our future plans, how to make publishing sustainable on the platform. we are excited. it is a wide collection of stop. >> you guys raised $57 million in capital. ev: it gives us momentum, more publishing every day. what that lets us do is to

extend our runway for a good long while while we build the business. emily: google announcing accelerated webpages today. what is your take on this? ev: it is a user focus -- user-experience focus procedure. speed and convenience always win in the end. that is why we built medium. this seamless reading and writing experience. that is where they will go versus 1000 from websites that load slowly. >> somebody called medium the prnewswire for a new generation. ev: it is a shortsighted take on

it. medium is a publishing platform. all those people are publishers on the web now, millions and millions of websites are promotional websites. it is a small percentage of overall media publishing. emily: what does success for twitter and jack look like in five years? ev: twitter is just getting started in terms of its potential. jack can unlock that. the team is going to unlock that and it will be much bigger than it is now. emily: that was ev williams.

speaking of twitter, dick costolo is writing for "silicon valley." we sat down with the show's executive producers and ask them about the news. >> i think we are allowed to say. he sits in the writer's room with us a couple of days a week. he has a comedy background. he did improv comedy in chicago back in the day. emily: what is the most surprising thing he has brought to the table? >> i do not remember ever being shocked by anything he has said. emily: we ran into dick costolo

a couple of hours ago and he said when that happened, his phone started ringing off the hook. we might have let a little cat out of the bag. he is having fun and he feels free. >> he looks relieved of a burden, and frankly, so does ev williams. jack is back permanently and there is a grace period. twitter has time to reboot a little bit. emily: dick is taking some time off, we will see where he ends up next. coming up, more of our big interviews from the vanity fair new establishment summit. as we head to break, i want to leave you with one stock on the move today and that is gopro.

morgan stanley slashed its target price to $35. ♪

emily: welcome back to "bloomberg west." tim armstrong has been on the frontlines of online media and advertising for a long time. brad and i got to chat with them and we covered a range of topics. so great to have you here. i enjoyed your panel on stage. it has been six months since verizon announced buying aol.

how is it going? tim: we got to spend almost a year with verizon before we did the deal. everybody knew what they were getting into. emily: what changed for you? tim: my time is back into product. we do a daily 8:00 call now. we are moving things in real time. verizon is a great mix because we are adding a lot of growth opportunity. they have a massive opportunity to float businesses on top of their current network. i think it is a mix of strategy, culture, and people, and it is going really well. brad: the online advertising business has been imperiled recently.

ad blocking and click frogs. how imperiled is the online ecosystem? tim: i think there is a big problem here. the fact that consumers are blocking ads is a sign you have to improve your advertising. that is what we do on a daily calls. everybody in the ecosystem is going to do that. the internet is the most transparent media type in general. anything that has to do with fraudulent things, you have massive benefits in the future against that. that will help figure out who people are. we have been meeting to lead the charge on fraud.

the whole industry has to address it. what those two problems are the industry's biggest opportunities. everybody is using mobile media and trying to put ad dollars there. we have to have high class solutions. emily: a lot of talk about a tech bubble. what about media specifically? you bought the huffington post a few years ago. are we in a media bubble? tim: i think the valuations are not high enough. when you look at the consumer migration of products and services, when we bought the huffington post, our stock dropped by 20%. investors were saying, stay out of content. only a handful of companies who

invested while the entire economy was really poor. people got out of content and we got into content. only a handful of people at scale that invested. there is no supply of companies to buy at the scale of huffington post or buzzfeed or business insider. when we look back historically 10 years from now, people are going to say, the biggest missed opportunity was everybody ran away from content and five or six companies went into content. there is an amazing amount of benefit to having invested during that time. >> are we going to see amazon and apple with these over-the-top tv bundles? the dismantling of the

traditional tv model? tim: the areas that are declining 10 to decline slower than people expect. i do think because of two things -- the networks have gotten faster and more creative people are investing in high quality content. that will be better for consumers. you may see an acceleration of the tv issues. some of the tv businesses are down. when you look at those numbers, something is happening here, looks like it is systemic. emily: what role is aol going to play verizon's go90? tim: we are doing a modernization for go90. we are helping verizon managed the advertising side into managed product. the people running that product are doing a good job of lining

up tier "a" content. we are palyinlaying a massive support role. emily: tim armstrong earlier today. i also got a chance to sit down with brian grazer. he is the man behind such megahits as "apollo 13," "a beautiful mind," "24," "friday night lights," "empire." his next project is a movie starring eddie murphy for netflix. i asked why he chose netflix. brian: i like netflix a lot. we are doing "arrested development" on netflix. i think the way they govern their creativity is exceptional. if they like the idea and the foundational element, you are off to do what you believe in and they trust it.

emily: one of netflix's competitors is looking to branch out. according to people familiar with the matter, amazon is looking into launching a live online tv service and has spoken to cbs and nbc. it would put the online retailer into direct competition with companies like comcast and at&t. brad, you wrote the book on amazon. amazon is trying to do everything in terms of disrupting entertainment. brad: people pay an average of $100 for a cable bill. most people say they don't get $100 worth of value. emily: i watch about five channels. and i have to have a cable subscription. brad: apple and amazon are trying to invent the future they want to see. you need live tv to do it. it will be interesting because

comcast owns nbc. emily: apple has not been able to do this and they have been trying for years. brad: it is all about the deal. sling tv has live service, sony has it. emily: vice is trying to buy a cable network by the end of the year. going in the opposite direction. brad: there is value to advertisers. that is why shane smith is negotiating to buy a tv network. they have seen the travails of al jazeera u.s. buying current tv. it is a challenge to navigate that. emily: i did speak with shane smith a few minutes ago and he says they are doing exciting things in tv. we will watch and see. how is silicon valley rethinking the role of design?

we will talk to the chief creative officer of jawbone, next. ♪

"bloomberg west. emily: welcome back to "bloomberg west." we are live at the vanity fair new establishment summit in san francisco. yesterday, i spoke with graydon carter and asked him about whether or not we are in a bubble. >> i think there is a bubble. i think there is always a bubble. in the age of celebrity, nothing stays the same forever. emily: to bubble or not to bubble, that is the question.

turning now to design, another entrepreneur is changing the way we interact with technology. jawbone.signed the so many collaborations. you've worked with samsung, prada. you are here with a new set of watches. not smart watches, traditional watches. >> i would not call them traditional watches, i would call them beautiful watches. movado -- one of the biggest classics of design. this is an update, a new approach. it is very exciting to move into such good company.

brad: we are looking at these watches and seeing significance that they are not connected. do you still see a lot of virtue in having devices that are beautiful but do not do everything? >> look at the way we dress, look at the accessories you wear. you choose them because they are beautiful and they reflect who you are. you love them because they mean something to you. they do not need to be all the same. we all prefer different things. that kind of diversity in clothing and jewelry and accessories will continue, whether they are connected or not. emily: my apple watch can do a million things. i do not use any of that other stuff. what do we really need on those connected devices? >> people love to own their own

data and to know what is going on. it is very personal. when you get a jawbone tracking device, it is how you sleep, your heart rate, these are important -- the kind of knowledge you are really looking for as an individual. it changes the way i eat, what i do throughout the day, changes what i do before i go to bed. we all try to optimize ourselves and have a better life. brad: there have been some quality problems associated with previous products. what did you learn about integrating beautiful designs with practical, efficient, customer-oriented software? >> you have to solve all of it. you have to have a beautiful

product and it needs to be well-crafted and it needs to be beautiful and to survive the everyday life that we have. what i have learned is, the products people love are products that last. that is what we do. emily: chief creative officer of jawbone, thank you for joining us today. that does it for "bloomberg west." brad, thank you so much for joining us. tomorrow, former facebook vp joins us tomorrow. we will be talking about diversity. and his new future list. ♪

the following is a paid program. the fame that the opinions that ofd do not reflect the affiliates or the employees. >> welcome to your medicare, your decision. it guides you from the options available from humana. there are many medical choices available today, but are you sure you have the right plan? are you with the right company? do you wonder if you could save money with a different plan? no matter what medicare coverage