what's my credit score? your credit score is 650. that's magic! no, that's credit sesame.com you get so much more than a free credit score so do more with your score at credit sesame.com emily: square has filed publicly for an ipo just as jack dorsey juggles a revamp of twitter and brings on a new chairman. ♪ emily: i am emily chang and this is "bloomberg west." coming up, netflix misses analysts estimates, blaming the new chip credit cards. is netflix close to crashing? below thent shares

ipo, and another merger might be in the works. more sales are said to be in talks. first, to our lead, the square ipo. the payments company filing for an initial public offering, looking to raise $275 million. that number is a placeholder and will probably change. jack dorsey is pulling double duty as ceo of square and twitter will have to juggle for square as he tries to restructure the company. joining me now is alex barinka, who covers ipo's, and the bloomberg head of global technology, brad stone. let's dive into the numbers. square is making money but it's not profitable. brad: growth is slow, which i was surprised to see. the starbucks partnership, wow. emily: can we talk about that? because that actually cost them money. brad: there is a long history of starbucks being a poor partner

to technology. groupon gave black marks to starbucks as well. not surprising, jack dorsey has talked about it being a bad deal. the deal isentioned going away. if we cannot rely on starbucks, what can square rely on? >> an interesting part of the filing was looking at the breakdown of how big the customers are. in the slides, there is a slide that shows customers bigger than $500,000 in revenue are growing. it looks like they are trying to move into a bigger ballpark, let's say, of customers. instead of just the small merchants that you typically think of as typical users of square. you would expect that would be one of the areas they are moving into. and the notoriety of being a public company might help with that. some of their competitors are

out big in the space as well. first data being one of them. emily: i do want to talk to you, brad, about the risk factor and the fact that jack dorsey is the ceo of twitter. , our founder, is the ceo of twitter. this may at times adversely affect his ability to devote time, attention, and effort to square. brad: of course. that is a risk. emily: he doesn't talk about it in his letter, interestingly enough. he actually doesn't mention twitter at all. alex, what do you think about the fact that he is running both companies, and what are you hearing from investors? alex: they going to want to see him on the roadshow. as they go through the process and as they are pitching, that is one of the things they will pay attention to. we just put out the news, first ipo came in below range.

you can see that investors are maybe taking a pause in this payment space. as he is dealing with the problem child that is twitter and managing job cuts at that social media company, i think people are really going to want to see that he has a strong management team and that he has the right ingredients in place to take care of this company as well. emily: early this morning we got some news out of twitter. jack dorsey brought on the longtime head of business at google as executive chairman. it is interesting. he is taking on a more operational role. he is actually going to show up to work sometimes. i want to bring in josh ellman, a partner at greylock who worked at twitter for a time. josh, what is your take on omid joining twitter? what does he bring to the company and to jack dorsey in particular? josh: he was involved in so many of google's core decisions to grow the entire company.

as twitter is navigating the world, i think omid is going to be a steady hand, how you manage investors, and how you keep driving innovation. he really helped jack start up the innovation engine. emily: what do you make of the fact that he has only tweeted like a dozen times ever? does that matter or is he an example of the kind of person twitter is trying to reach, people who have tried it but not stuck around? josh: people have said you don't need to tweet to use twitter. i firmly believe twitter can be an amazing source of news if you set it up right. to me, that he is not really how many times he has tweeted so much as how he follows it. to me, even if he hasn't really

been a twitter user so far, he is such an incredible thinker. if you're going to debate if he can make twitter a better product, i think he can sell it. emily: obviously, we know that twitter has some challenges ahead. square filed publicly. jack dorsey has two big jobs and that's listed in the risk factors section. what is your take on the fact that jack is going to be doing both of these jobs at once? josh: there are two schools of thought. you never ask someone with more than one child how to you care for both of your children? jack is in that position. the key to the measure of success is whether he has excellent teams around him at both companies. obviously, adding omid's influence can only help twitter. emily: what is your take on the new products that have been unveiled so far? can twitter moments be the future of twitter, and what other products would you like to

see? josh: moments opens the eye to what twitter can be. not just streams of 140 characters. i think that part is incredible. i still think what twitter needs to do is figure out how to help everybody express their interests more simply. what technology do you like? what sports teams do you like? where do you live? what things are you interested in following, and then deliver those in a more timely way in format that can be curated and made more excellent. emily: brad, you have been covering google for a long time. -- howinging omid on much more manageable does this make this for jack dorsey? brad: the history of twitter is ceo's coming and going,

alliances being formed, people losing their jobs. it happened to jack already. the role of the board is to hire and fire the ceo. to make sure governance is on track. emily: and they have. brad: that's right. i think we are going to see more and more members in jack's corner to make them feel secure and give him the runway to not only fish the product -- fix the product but maybe like facebook, give them a syndicate to build internally some other properties to reach that billion users that really have not found the core twitter app to be appealing. emily: we are going to continue digging through the square filing and keep talking about twitter. brad stone, our bloomberg global tech editor, alex barinka, who covers ipos for us, and josh of greylock on the phone. in other news, shares of first

data are set at $16 apiece, below the $18 that was expected. they will offer 160 million shares, said to be the largest ipo of the year. our netflix shares losing momentum? ♪

emily: netflix shares take a hit in after-hours trading.

they have recovered a bit now. investors are reevaluating the stock after reed hastings video streaming service missed on several key fronts. netflix signed it 880,000 new subscribers in the third quarter. animus was -- analysts were looking for 1.2 5 million. joining me now is neil doshi. iso with us from new york the ceo of vimeo, kerry trainor. neil, i want to start with you. what is really going on? netflix is blaming credit cards. they are blaming credit cards saying people have not renewed their credit cards and automatically subscriptions are dropping off. that may be part of the reason. you also had a great titles late in the third quarter. i think people are also

reevaluating whether they want to sign up for netflix again. it may be season by season or show by show. some people might sign up during house of cards and orange is the new black. emily: i am watching narcos and i think it is great. do you think the content is just not as good? neil: narcos is doing well, as is daredevil. emily: bloodline. neil: netflix said they might be getting into news next year. we will see how their original movies do as well. emily: kerry, you guys are just starting to get into original content. you had a series, "high maintenance," which was picked up by hbo. can you lay out how you see yourselves positioned in a world where there is also netflix,

amazon studios, and the hbo's of the world? >> certainly, the most exciting thing vimeo provides is a platform for any creator to upload their work. and with vimeo on-demand, sell it on their own terms. an open platform for any creator to use and any viewer to access on any device. if you think about youtube, it's almost like the open global version of broadcast television. it is free content supported advertising. vimeo is the global equivalent of hbo or netflix, where any creator can use it to sell at free content. high maintenance was our first original series where we are ad. vimeo is the global equivalent of hbo or investing in individual creators who we think are coming from a very different world than what netflix is providing. it's great content, still very

traditional. high maintenance is creators who found their way to an audience through vimeo and we are supporting them as an original series. emily: original content is expensive, and netflix is spending billions of dollars to make the shows. how much is netflix spending and how concerned are you that they will be able to make up for it? investing in individual creators neil: they are spending $5 billion-$6 billion and they are continuing to raise debt on a regular basis to fund their original content. it is very expensive. competition is heating up. so far, i think they have managed their portfolio fairly well. we will see how they do over the next 12 months. emily: kerry, how costly as it for you guys to compete in original content? you are not sure spending $6 billion, but how much are you spending to make this idea a reality? kerry: the key, again, for us is that we are focused on a very

different tranche of the market. the orders of magnitude are quite different. however, we do believe there is a global community of high quality creators who can access their audiences directly, and we already have thousands of sellers on the on-demand system selling tens of thousands of pieces of content, and we will have over a million purchases of those content. while we expect in the year ahead to be investing in the eight figure range as opposed to billions, for us to highlight, support, and show to the world and viewers out there that this tranche of content exist, we are very excited about what we have coming up. emily: i want to ask about your efforts. you said it will take a year for your next original series to be available. why will it take that long, and will the first slate of originals you have planned be enough to bring in new customers? kerry: yes, they will be

premiering next year, but they will not be taking a year. out, aee programs, the short film, and a comedy special. the first will come out in december, the comedy special. arby in the first quarter of next year. they are actually going to be coming out in the next 5-6 months, and we expect to be rolling them out in more frequent succession after that. emily: quickly, neil, what is your outlook for netflix given the new information we have gotten today? neil: this is a company that has been executing on a number of fronts. they take a hit sometimes when they enter new markets. as we look at 2016, it will be a little more challenging. they are going to enter new markets they have not participated in. a lot of them are in asia. a lot of different business models. there could be more volatility as we move into next year.

emily: thank you both. now, another stock we are watching today is maxim integrated products. shares of the semi conductor on news isping 10% in talks for a possible merger with analog devices. this was prompted by rising costs and a shrinking customer base. maxim was reportedly working on a strategic review when analog approached it about a merger. there is more change brewing in the semiconductor industry. fairchild international has hired goldman sachs to help it find a buyer. the company is in discussion with potential suitors, such as d infinion. fairchild surged almost 16% at the close. a market cap of $1.89 billion. up next, genetic testing startup

23 and me gets funding. we sit down with andy page in an exclusive interview. ♪

emily: uber is getting serious about the delivery business. uber rush is moving to san francisco and chicago. it was previously a pilot program in new york. the company said today it is no longer an experiment. while the delivery space is crowded with the likes of shyp stacart, critics have long

said uber has the potential to wipe out the competition. here is an investor explaining it to me in june. >> i did not invest in ship, because i think it is something uber can and will do. i think travis's ambition is boundless and his ability to execute is unlimited. ceoy: yesterday, postmate's told me yesterday why investors should not count them out just yet. >> we have had a profit margin almost since we launched, for three and a half to four years now. in germany in the business school, the first order of business is to figure out if you have a profitable business or can have one. we are on a path to profitability. emily: you will be profitable in 2016? >> yes. will beostmates

profitable in 2016, he says. check out the full interview at bloomberg.com. 23 and me, the genetic testing company, just raised funding led by fidelity. the plan is to use that to introduce a new consumer product with health analysis and expand its new drug discovery arm, which the company set up in march. under the leadership of a former genentech veteran. the round of funding brings 23 unicorn club, with a valuation of $1.1 million -- billion. joining me now from mountain view for an exclusive interview, andy page, president of 23 and me. thank you for joining us. a lot has changed since you and the fda had a bit of a standoff over what 23 and me should and should not be doing. what does 23 and me do today and what will it do in the future?

how does this change your vision for the company? post fda warning letter, we no longer sold our health reports in the united states. what we have announced previously is we will be relaunching imminently our status reports. it's a whole new customer experience. the entire site has been redeveloped and redesigned. it's a very exciting development for the company. emily: if i am a customer, what can i get if i come to you? if it's not a dna test or an ancestry test, what will i get? andy: if you were to come today, you would get ancestry. if you were to come after we launch, you would get ancestry, but also traits about yourself and fun information as well as health reports under what is called the carrier status. there is a tremendous amount of information and the whole site

is designed around sharing with friends and relatives. finding relatives. it's an entirely new experience for consumers. emily: tell me about the work you are doing with richard scheller and this in-house drug invention. what diseases or what areas are you focused on? andy: richard and robert came from genentech to lead our therapeutic effort. they are using the world's largest database, with over a million people in it, 900 thousand have consented to research. they are using all the information we get from consumers who engage in research and answer questions. the combination is a unique resource to drive drug discovery. we have a broad mandate, and we are extremely pleased with how it has gone so far, faster than

we would have anticipated. as a result, one of the uses of proceeds from the round you mentioned earlier, is to build a lab that supports our efforts. emily: are you planning to seek out a big pharma partner or to do human testing yourself? >> we already have external pharma partners, as we announce this year's. the effort with richard will be a combination of in-house efforts and partnership with third parties. we have not announced how early we will be partnering, but we anticipate partnerships along the way. in some cases, we may take the drugs fairly far along. in other cases, it may make more sense from a research perspective to partner. emily: thank you so much for joining us today and sharing your vision. that does it for this busy edition of "bloomberg west." thank you for watching.

tomorrow, we have bret taylor. ♪

>> the following is an point paid program about humana paid medicare plans. >> welcome to your medicare, your decision, the program that guides you through the medicare options. there are many different medicare choices today. are you sure you have the right medicare plan? are you with the right company? do you wonder if you can save money with a different plan?