islamic state targets. it leaves france for the middle east on thursday. meantime french police are asking for information from anyone recognizes this man. he is one of the suicide bombers believed to have targeted the french national stadium in paris last week. authorities in belgium and france have also issued a warrant for this man. his brother was among the attackers killed last week. we are learning more about why the death toll stabilized after initial reports prepares doctors and emergency staff have been conducting practice drills since the text back in january. authorities credit a readiness drill that was conducted on the very same morning of last week's attack for saving lives. and in germany, twin bomb threats canceled soccer matches

in hanover. angela merkel had been is scheduled to attend the game between germany and the netherlands. ♪ emily: i'm emily chang commences bloomberg west. coming up, privacy or security? which is more important when it comes to fighting terrorists online? and we will devote -- looking good and bad and i week at square.

i sit down with our cofounder to our at the road ahead and lead. the debate over internet privacy or the week of terrorist attacks. 129 people died in paris, -- leavinge of saddam in washington to call on silicon valley. senator dianne feinstein says she has no -- has asked a number of companies for health and saying she has not gotten any great if you have a product that allows evil monsters to communicate in this way, to be had children, to strike innocents whether it is at a game in a stadium, or restaurant paris, take down an airline, that is a big problem. some electives on the part of silicon valley to give intelligence firms alluded axes to the customers. tim cook says for one any backdoor is a backdoor for everyone. everyone wants to crack down on terrorist to everyone wants to

be secured. the question is how. analyst.e now is there steve, i want to start with you. have washington calling on silicon valley. as the valley saying we have to draw the line somewhere. where do you think that line should be drawn? >> i'm is the believer that the private sector in silicon valley in particular has a great opportunity and a requirement to really get involved in this fight and really understand how to do it equipment and privacy. as a venture capitalist i see every day new companies that are being built trying to do this balance in a very interesting to way. with the things i'm saying i'm more optimistic than ever that we can great to approaches that have this supported balance between great technologies and services little -- but also

being responsible. emily: how can you be optimistic in the face of a major attack like this when it seems like they were using encrypted communication to plan these things? -- this is part of a broader scheme of how we communicate. what we are able to do now is think of new ways we can make sure we know how everything is happening and not open everything up every way -- all the way. all of this use is for keeping archaic at health care data save. it is a very important privacy keys that is there. emily: what is the middle ground? create toays can we balance the two of these things and attacked our safety? think the answer is an open door policy where you have open

communications. it is not the answer that is that turkey that people should use. there's a lot of great technology that we are known for . only the right people can see the needed data. emily: that's unrealistic? >> i would generally agree with that. i see to be clear that privacy and security as not being two things that are balanced. privacy and security. as he just indicated and him cook suggested to you when you have a backdoor it is a backdoor for everyone. we can security, the opposite of what you should be doing at a time like this. it creates all abilities for everybody fired data

vulnerabilities for everybody. what you can give me some -- what canble to you give me as a concrete example her? security is a broad issue. not just around the specific topic. we're getting machine learning techniques to not only look inside communication to look inside the meta-information going on. you can tell by where activities happening or perhaps i what time of day is happening that something looks bad or suspicious. i think this idea of not looking ,n the data will looking around might be in the various in some way. emily: one of the legal framework? laws. passed sweeping do they not work? >> i do not know about the

investigation to be able to say if they do or do not work. we have no evidence to show that mass surveillance is any more effective for targeted surveillance. metadata information is a key tool. that can be highly revealing of people's private lives. we can support something that is targeted as possible. we are looking at the u.k. preparing to fast-track new surveillance laws. in light of what is going on right now, what are the chances they do not pass? i do not want to speculate on the chances they will pass. i think the government has been climbing down a little bit from fast tracking a bill. it gives us many reasons to be concerned. and gives many of these worse abuses and enshrines them into law, including a very intrusive programs.

can go and turn on your webcam or the microphone on your phone or on your laptop without adequate authorization. -- we are very worried about the of privacy and reasons there. emily: do you think these could have prevented the attacks? >> it is not the core of the issue. we are concerned about having what controls in place. we can find a play to get what is important to the law keeping. you really need to recognize is have unintended consequences are more often than not without people can get access to the second keys in getting at this data. that in turn can be used to prosecute people who were protesting government, to get medical data that is our own. it can have a lot of cd concerns that we're not thinking about. you need to be careful not to overreact and have unintended consequences from some of these policies. emily: thank you for joining us.

this debate, insurable continue. now cyber story we are watching. the international hacking collective known as anonymous has begun posting what they allege to be personal information about suspected islamic state extremist. the islamic cyber army issued their own statement, offering guidance on how to protect against cyber attacks. accounts claim the group is responsible for taking down more than 5500 accounts related to isis. it is important to note that none of the details that anonymous have been published have been independently verified. the group has wrongly identified alleged extremist in the past. we watching to be seen how this operation plays out. that lastotnote on

discussion. there are reports today that islamic state issued regular warnings to his followers to keep their communications secure. they circulated a list of the secure a munication -- communications apps. coming up, what does square have to do to attract new merchants? we crunched the numbers on their ipo. and carl icahn is putting his money where his mouth i betting big on paypals. . ♪

emily: a stock we are watching, angie's list. shares fall as much as 8% at the open, but recovered. an increase from an earlier offer of 850 a share. they said they needed time to see the turnaround plan. some layoffs to report. jobs inl cut about 1000 spinoff the go to business. they could have a value of $4 billion. two scores highly anticipated

ipo. iss week the mobile payment expected to price on wednesday. according to a regulatory filing, they will marketeer between 11 and $13 a piece. for 4.2 billion dollars valuation. this is short of the $6 billion in the last funding round. why the large gap in this valuation? isn't the right time to go public? joining me with a bullish case is wrecked almost become a partner at double diamond group. and arris group, we have a payment analyst with bloomberg intelligence. strength of the core payment processing business. how strong is it? >> the processing businesses quite strong. there's not a lot of debate on whether you should compare.

they are the growth rate of the industry, and are the very brink of profitability. , not say i am bearish on it. an ideal,estors and you are looking at with the opportunity is valued at. we took a look at because the company is not profitable on an adjusted basis, we looked at trailing 12 month sales for the company. that is the evaluation they are looking for. what we came up with was the stock is valued at about nine to 11 times at trailing sales. that is twice as much as payment index bloomberg intelligence is valued at. the valuation is very rich on our sales. emily: do you think the

valuation is rich? >> i don't really. obviously, as a public investor, and is lower than what the investors were getting in several months ago. atiously, you have to look growth in future evening -- earnings. they are the brink of profitability. when you look at growth and appear that to the rest of the --ustry, it should be revenues growing up the bed so our losses. what do you see in the financials? >> revenue growth is still very fast. over 50% in the recent quarter. it has been slowly crawling with her volume growth over the past few quarters.

one positive thing, in our research that we discovered, is that if you look at the transaction gross margin that we quarters is recent over 1% of their volume. to theires favorably peers. i'm talking about companies like heartland payments that focus on small merchants much like square. moreare also generating revenue from outside of payments. things like software and data services. these things carry higher margins. that part of it is positive. what i'm concerned about is one of the things they talked about repeatedly is about half the new customers are coming to them versus responding to marketing. with all the competitive products, square was very unique. there are a lot of similar devices at the market. are they going to have to ramp market?

emily: this is not a good thing if customers are coming to them organically? >> it absolutely is good. what i'm wondering is that is going to become harder and harder. the novelty is gone. when they first to the scene three or four years ago, it was a very novel concept that met the unmet need a small merchants, simple, fair, easy-to-understand pricing, fast settlement. now you have other companies, clover that they bought. a whole host of others that are targeting the same space. emily: laying out the competitors in this landscape. how differentiated is squire from the competition? the devices itself. if you look at just the devices from you can argue that there's a lot of competitive options in

the market. if you the overall end to end strategy, square is unique. heartland is an example. they dealt in the hundreds of ifusands last i checked in you look at the average square customer it is more like 12 or 13,000. the business model has been to go after businesses that have not had access to payments in the past. the reason they have not had ant is because it has been unprofitable for the colonies like heartland to even targeted them. it costs too much to find them. rigefore the revenues the you are not enough to bring in for acquisition. you can go out and find these customers and bring them in and make a profit on them. throughe done that innovation across the product level as well as distribution strategy and online acquisition and risk mitigation and all the things they had to do. it is an end to end business strategy.

in one of our this device. no one has the full business model to target this small micro merchant and make a profit on it. there is very little competition out there. to your have to get views on jack dorsey running square. how bullish or bearish argue on that? >> that is tough. obviously twitter has their own challenges which he needs to spend time on addressing. there's a lot of pressure from that side. he has been hiring a lot of senior executives. interestingly most are square capital. somehave been bringing in senior people but it will be tough. >> i agree. obviously it is about the strength of the team.

obviously, the track record is very good. and it is a strong team. is it ideal for our and investor perspective? probably not. but you look at the potential opportunities, i think it is a very good opportunity. emily: we will be watching to see where prices and shares late in the day tomorrow targeting to start trading on thursday. thank you for joining us. activist investor carl icahn is shifting his sights ebay to paypal. according to sec filing. the billionaire filing has sold his ebay shares and taken an equal position in paypal. he lobbied hard to spin off paypal. now test carl icahn

now is 4% of paypal. coming up, star wars battlefront. mixed reviews. ♪

emily: earlier today i sat down for an extended interview with linkedin cofounder reid hoffman. investor, and i asked him to weigh in on the great debate. are we in a tech bubble? >> in some ways we are, in some ways we are not. , it tends to be a private market bubble. the private level does not have as much market impact. it is not something we've 2001,n back to 2000 or you worry about quite as much. emily: as a venture capitalist

he invested in the company. airbnb. we talked about how airbnb needs and experience in strategy ended differs from uber. >> airbnb has a global network of fact that is useful. ofyou have a whole bunch residencies in europe or the u.s., then people who traveled there, that is a global network effect. that is very useful. muchdo not have to do as work as overdose. why do they have to work harder? >> they have to work harder because the network is much more local to a city. say that itasy to

could be a halo of london or different regions. put actually have to intensive effort into the growing of each specific city which is part of what developed his playbook. they have done it extraordinarily well. and to do that intensively. emily: linkedin cofounder reid hoffman. do not miss my phone conversation with him in a special edition tomorrow at 6:00 p.m. in new york. coming up, the growth of gaming this holiday season. we will hear from the pic to ceo. ♪

i just had a horrible nightmare. my company's entire network went down, and i was home in bed, unaware. but that would never happen. comcast business monitors my company's network 24 hours a day and calls and e-mails me if something, like this scary storm, takes it offline. so i can rest easy.

what. you don't have a desk bed? don't be left in the dark. get proactive alerts 24/7. comcast business. built for business. tand that's what we're doings to chat xfinity.rself, we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. emily: i'm emily chang and mrs. bloomberg west. this is bloomberg west. bobby jindal is suspending his presidential campaign. he just told foxnews, "i have

come to the realization this is not my time." let's get you caught up on global news. it is 6:30 p.m. tuesday in new york, 7:30 a.m. wednesday morning in hong kong where we are joined by heidi. heidi: thank you. the u.s. says some territorial disputes during the apec summit will be unavoidable. president obama but the issue back in the headlines by making a symbolic visit to the warship. pressure has been welcomed into the military front against the so-called islamic state. they will use the navy to support attacks in syria. the work is of allies in response to the terrorist attacks in paris. in other news, macau expects the casino slump to continue into next year.

the city's chief executive forecast revenue which is half of last year's. macau is going through its worst downturn on the record because of a slowdown in china and asia's crackdown on extravagance. it is not just macau, louis vuitton is downsizing in the chinese market. some may be moved or refurbished, but the total number of chinese stores will come down. emily: that is interesting. i live in china for a wild and i hile and i did a number of stories on ghost malls and nobody buying. is that because chinese consumers do not want to shop? are they buying online? haidi: you would know how prevalent those brands are in china. it is a bit of a double whe ammy. lv has been in china for a number of years, but it is

perhaps oversaturated. you hear comments about it. it may be chinese consumers are going for other brands or they are shopping elsewhere. emily: all right, haidi in hong kong, thank you. ♪ the company behind blockbuster video games like grand theft auto and nba 2k. the ceo of take two joined bloomberg go. the company behind blockbuster video gamesthey asked him wheree company's growth is coming from. >> growth is coming from externally from us the what are now current gen platforms from microsoft and sony which are growing rapidly. we expect further growth this holiday season. our growth has come from continuing putting out hits. we have put out one new massive

franchise every year. we no longer are only grand theft auto. dead redemption, ba, civilization and many others. >> how dependent argue you have to keep coming out with those hits? i look at something like zynga ==-- how much pressure are you under to keep delivering new titles because that is a humongous rmb investment? inba, civilization and many others. >> how dependent argue you have to keep coming out with those hits? r&d investment. >> it provides some protection for the uncertainty related to the new releases. there is no question. every success you have before yesterday, you have to do that next best thing. >> it is a live event business that exists in gaming. people crowding into madison square garden to watch competition.

is that a great investment opportunity? >> we actually invested into w what thetwitch. twitch does not monetize the event themselves. they monetize the activities surrounding the gameplay. i do think video games is the growth industry and people do enjoy watching professionals compete. >> talk about two other potential areas of growth -- international and mobile. the whole story is mobile these days. >> walmart has international stores. that is hard. >> right now, our business skews 35%t t to north america but comes out of north america. all over the world. the biggest markets are the u.k. and asia, japan specifically. we see enormous growth in the asian markets where we make big investment.

that fits nicely with your question about mobile. mobile is not really the issue. the question is whether it is a casual game or very robust console experience. are exposed greatly to that market in asia. we have the greatest sports title in asia with nba 2k online. it is also a free to play title. we are exposed to what you call the mobile market, which we call the free to playr market. we do see it as a great growth area. >> do you see the effects of the reported china slowdown? >> we have not seen it, but it does not mean it does not exist. we are in a small segment of our . we create revenue. >> tell us about virtual reality. do you see that as a new opportunity? >> it remains to be seen. the headsets have yet to be

released commercially. there are some issues around this notion of having a mission inclusion of headsets. i'm not saying it will work but the jury is out. in terms of interactive entertainment, it remains to be seen. if there is a market there, we will be there. twoy: that was the take ceo. turning to another videogame -- star whirls that -- star wars battlefront. sales kicked off today. electronic arts is projecting sales of 13 million copies. joining me now is chris, who covers the videogame industry. is 13 million a big number? chris: yeah, it is. electronic arts took up their

estimate. they were originally saying nine to 10 million and bumped it up to 13 million. we have more controversy. the reviews came out and they were kind of mixed. ea's stock was up a hair today. it remains to be seen based on these reviews how big a hit it is. emily: talk to me about disney's strategy for star wars videogames from the disney standpoint. lucasfilm as a long history of making video games. when disney acquired the company, they decided to farm it out. disney is making the infinity 3.0 game which features star wars characters this year. approach.wo-pronged infinity is more of a kids game. battlefront is more of an older gamers game. that is their strategy. emily: what are the other hot

titles we should be tracking? chris: a lot of familiar trends coming back. they'reduty, halo -- having a good year with the nba and fifa titles. after a couple of years of this new wave of console, you will see a bigger focus on the games. emily: what do you think will be driving sales? what do you think are the hottest games? chris: what is really having a lot because we are a couple of years into this cycle, you are seeing these bundled packages. you can buy the new playstation 4 with the star wars battlefront game for the same price. it is $50 lower than it was two months ago. the bundled deals will drive games like halo and xbox. emily: all right, chris, who covers the videogame industry for us. thank you for joining us.

arning to media, gawker.com, website known for its snark, is reportedly revamping. the new york times says the site which you see cover new york and the media will now focus on politics. other changes planned include emphasizing seven related sites like the tech site gizmodo and dead spin. 10 people are excited to lose their jobs. coming up, lyft announces plans to exceed $1 million in sales next year. my conversation with the cofounder next. if you like bloomberg news, check us out on the radio. you can check us out on bloomberg.com and sirius xm. more of "bloomberg west" next. ♪

announces it lyft expects to reach $1 billion in growth revenue this time next year. this increase they increase their u.s. market share despite increasing competition from uber who expects about $2 billion in revenue in 2015. i spoke with john zimmer, the cofounder of lyft, and asked him how they manage to reach this milestone. john: in october, we hit $1 billion and now we are 40% in san francisco and austan. those of the examples we brought up. emily: how did you come up with a number 40%? john: yes, there is third-party data on credit cards as well as e-mails that allow us to get the market share number. actually with the company we weked with, the third party,

asked them to predict how many rides we are doing and it was so accurate so we can track it. emily: what kind of investor has carl icahn been? what is your relationship like? john: it is good. i saw him last week. them.roached he was a disciplined investor. they make good noise about the truth behind our business which is what we want to tell people about, the 40% share in san francisco and $1 million. this is a massive opportunity. this is growing faster than any other player in the u.s. emily: i just came back from china, i was in beijing talking to uber drivers. you have a partnership wit. how is that going so far? what is the most important part of that partnership for you guys? john: it is going really well. before i saw carl, the week before i was in beijing.

in a few months, we will do global roaming, our global coverage where you can take your lyft app take a ride to jfk and land in beijing and use lyft without having to open up a new account and without reading chinese and get your ride. that is one of the biggest unlocks. with the service coming to u.s. and vice versa, 8 million travelers a year can use that more. emily: john zimmer, cofounder and president of lyft. well, the gap is growing between the technology world haves and have not. s. the combined stock value of the big five makes up about 12% of the total value of the s&p 500. older companies such as ibm and yahoo! continue to climb. is shara. me discuss

you came out with interesting observations. who is hot and who is not? >> it is the tech winners and the not. the tech companies are the five you mentioned, the five biggest technology companies in the world which keep growing more successful. that has this network affect where success breeds more success. apple, google, microsoft, facebook and amazon. i don't think they would have been on there a year ago. if you see the charts in my piece, microsoft continues to shrink because they are heavily dependent on sales of computers, but i have managed to convince wall street they are going in the right places. emily: how much does this have to do with adela? i sat down with him and i found him refreshingly impressive. shira: he has managed to change the sentiment in wall street

about microsoft. emily: who is not hot? --ra: ibm, yahoo!, cisco these are companies where revenue is shrinking. they are strategically before uddled. o emily: do they stand a chance? rejuvenating? shira: it is funny because emc and dell are teaming up for the same reasons hewlett-packard is splitting apart. they say they are better apart than together. they have the same challenges and approaching it from completely different tactics. we will see who wins. emily: we have asked the question before and the answer is one tech company has really rebounded from the near break and that was apple. do you see that in the future for yahoo!? shira: it is hard to reinvent

yourself in the technology industry to get change happened so quickly. apple did it, ibm did it arguably. ibm is trying to reinvent itself again. the fact we can only name maybe two examples in 40 plus years of technology history says something which shows you how difficult it is. emily: what happens the yahoo!? you have analysts saying it is time for marissa mayer to go. shira: they have not really articulated what the strategy is. they have all this cash coming in from the alibaba spin. what will they do with it? marissa mayer says they will jettison some underperforming strategies. and then what? they have not articulated what the strategy is. emily: do you see yahoo! going private? shira: it is getting to the point where they need to either sense strategy or think about plan b which is selling the

company, breaking it apart. emily: it is all fine and good when you are on top, if history is any indication, companies do not stay on top for long. do you see an apple or facebook knocked off at the top spot? nobody can really come up with a viable scenario in which that happens. shira: that is right. it is not realistic. it is hard to see how those five big technology companies can get unseated. the nature of technology is shift happens without being able to predict them. you are already seeing companies like apple which is heavily dependent on sales of the iphone, though sales are starting to slow. that is the big question for a company like apple after being on top for so long. emily: 2022. thank you for joining us.

great piece from you today. close are we to truly mainstream the art? live streaming events in virtual reality. join me next with predictions. tomorrow, do not miss investment views from martin gilbert. he will be on bloomberg "go" on 8:3at 8:30 a.m. more bloomberg west next. ♪

emily: comcast and time warner are the latest big media giants to stake a claim in virtual reality. they joined a nearly $31 million funding round in the company behind the virtual lifestream of the democratic presidential debate and the warriors opening night game. disney led a round in the vr startup. joining me now is the cofounder

d.j. thank you for joining us. you are giving me a little preview. what am i looking at? dj: you are looking at the golden gate bridge. all of that you see is transmitted live. emily: it is pretty cool. do you make of the fact these big companies want to make their stake in vr? dj: it is a way for audience to connect with content and entertainment. emily: talk to me about the live streaming aspect because i think that is what makes your company unique. dj: it is. we started 26 years ago. the fact we have a real mature technology around broadcast of virtual reality helped us scale the delivery of content. emily: talk to me about what is possible. dj: you can put people in places

you cannot buy tickets or places people want to go like sitting courtside at a game or standing at the end zone or going to the other side of the golden gate bridge. emily: you work on the output. who works on the hardware? dj: all the major companies working on hardware. we are expanding, not only our team, but the reach of our technology. emily: i recently got a chance to speak with the ceo of oculus. they are coming out with their headset early next year. take a listen to what he had to say about the mass-market potential of vr. >> i believe the mass-market will be a lot of early adopters of vr. if you're looking at the smartphone scale, billions of users -- that will take a long time. emily: wendy you see mass-market adoption -- when do you see

mass-market adoption? >> starting this year. black friday is the first time consumers have the opportunity to buy hardware. emily: you think this holiday season we will see mass-market adoption of these? dj: it is the first time the mass-market has access to buy. but i think we will see it next year. emily: how does vr go mainstream? dj: as it goes out through mass-market, allowing people to connect as they have not had before. we have devices including our cell phones that will possibly be headset. emily: who are your main competitors? dj: really anyone else out there that is working on vr. we are unique because we do live. emily: one of the most interesting things i've had discussions about with relation to this and live events is the potential for it to transform to music business and maybe artists

do not have to go on the road one million times to make money now. what do you see there? dj: for artists, traditional medias -- this is another way for them to connect to their audience. not only can you follow your favorite band on a tour, you can sit next to your favorite drummer up on the stage and see it from a different perspective. emily: does that hurt ticket sales? dj: i don't think so.nothing replaces going to a concert , but our experiences in vr you cannot get from a concert. emily: same with sports games. cable companies are interested in investment, but couldn't their hurt their business model? dj: i think it is as different as radio is the television. even though you are watching on tv right now, there are multiple ways to consume. cell phones, laptops -- it is a different way to get

content. emily: the biggest surprise for next year? >> i think probably live and sports and gaming. emily: over and out. dj, the cofounder of nextvr. thank you. that does it for this edition of "bloomberg west" from new york. do not miss my interview with reid hoffman tomorrow. ♪

announcer: from our studios in new york city, this is "charlie rose." charlie: we turn this evening to paris -- 129 people were killed in a series of terrorist attacks on friday that targeted civilians at bars, restaurants, a concert hall and a soccer stadium. the attacks followed two suicide bombings in lebanon and a downing of a passenger plane over egypt. isis has claimed credit. francois hollande called the attack an act of war and promised a response. french authorities carried out anti-terrorism raids today