it's noon here in hong kong. an update on our top stories. losses across the asia pacific with those losses in energy stocks helping drive the decline. oil's latest slide coming -- coming amid signs of discord with opec, prior to their winter meeting friday. and japan's biggest oil refineries are set to merge. the deal is to be completed by

april 2017. fuel can he manned is falling in japan because of falling population and shrinking fuel eeds for cars. niqlo domestic sales drop. say warmer prices led people to buy less winter hang sheng and the -- hangsen down less than half a%. 'm back in half an hour. emily: i am emily chang and

you are watching "bloomberg west." coming up, yahoo's board meets as the company continues to flounder and marisa meyers tries to fend off activist investors. and outgoing shutterfly executive joins me for an exclusive interview. and he's a knight commander of the british empire. i'll talk with him about the lack of diversity in venture capital. now to yet another dramatic chapter in the yahoo soap opera. one possibility is si -- spinning off the aly baba stakes. the company has struggled to

reinvent itself with marisa myers at the helm. who would be the core venture partners? joining me, a yahoo investor. with a fairly significant position in yahoo and early investor in aly baba as well a very significant position in yahoo! and an early investor in alibaba. you have not been shy with your feelings about marissa mayer and yahoo!. what do you think right now? >> i separate my opinion of yahoo! with marissa, she is a very capable executive who has been put in charge in a no-win situation. yahoo! lost its relevance a long time ago. consumer internet companies are very much in a sociological and demographic place. generations move on from those products. yahoo!'s relevance is the uestion.

from my standpoint i am not surprised things haven't worked. what are they going to make it work with? there has not a single must-use product at yahoo!. never has been since the emergence of google because google changed our behavior around how we use the nternet. yahoo! does not do anything like that anymore. emily: mark, not a single ust-use product. as a yahoo! investor, how do you respond to that? mark: i actually don't disagree. m's point is right on. the market is valuing an asset we see value in at zero. zero is a good price to pay for something. we invested early in alibaba.

the yahoo! japan stake and the alibaba stake are worth a lot of money. $43 billion collectively. that leaves the current aly baba core business at zero. we like the yahoo! stub and we think the private equity guys will buy the asset and do what should have been done a number of years ago, have more of financial engineering approach, a dealmaking approach to that usiness. i agree with the point that obsolete technology is a real problem in the valley today. emily: the core business is valued at less than zero, some valuing it at $2 billion. some at $4 billion. what do you think marisa meyer should do right now? om: marissa mayer should leave this in the hands of the board. i question their competence.

i seriously do. they are equally culpable in the mess which is yahoo!. this board, the previous boards, they have let this status of going nowhere continue forever. there is hope against hope that something magical will happen to yahoo!. nothing is happening to yahoo. they have bled so much money. they have made all of these plays and they are not working. emily: why don't you think the onus is on marissa mayer? she has had three years. om: she should leave and let somebody else figure out the ess. emily: mark, what do you think of that? mark: i said a number of months ago that i thought the best solution would be for alibaba to buy yahoo! and make marissa head of alibaba usa and use her unique talents and skills in product development and marketing to help them build their brand in the u.s. i do not disagree that the mess

is real. i think it needs to go private, get out of the public eye and come out with a different focus, maybe do some acquisitions. make themselves relevant again. divest over time this asset. the best way to divest would be to reverse divest into alibaba. then you get rid of the tax issues. >> i have a lot of confidence in her ability to be successful t whatever she does. emily: would you hire her? >> in a second, she is amazing. she is completely magical. emily: what do you think marissa mayer's legacy is going to be?

om: she was put in the impossible task of trying to turn around a leaky ship. eople don't understand that in tech, once you miss the shift, you miss the shift. and it is pretty hard to come back. it happened with motorola. remember them? they just lost their, one miss and they were gone. we do not want to -- wall street does not want to understand or embrace that. what mark is saying, we are confusing a person with the status of the company. one person does not create the outcome that most people would like to believe. there is a reason why people use facebook. it is where everybody's attention is. emily: if the board makes a decision, what should they do?

should they sell the core business? should they proceed with the alibaba spin off? there is talk of verizon, comcast, news corp., disney potentially buying it. om: i would like to know how many people from the board actually use any yahoo! products. how many people are using yahoo mail to get business done? emily: who are these 200 million users? om: i really do not know. people who talk about selling off the core business, i am not sure what they are going to carve out. how do you slice of the company which is so tightly integrated? it is impossible task. i really do not know how this is going to happen. a lot of talk is just talk from the financial community who doesn't understand how deeply difficult it would be to pull

it off. emily: you suggested you guys might be interested in increasing your stake in yahoo!. why? mark: if they moved to a situation where the spinout has a favorable tax treatment, that will be good for shareholders. because the market is pricing in a more onerous tax level. if they move to do a private equity deal, private equity will pay a fair price. it is more of a short-term trade to take advantage of what is in undervaluation in the market. the market tends to go too far in the extreme positive and the extreme negative. you want to buy what is on sale and sell what is expensive. emily: thank you so much. om is sticking with me for the next few blocks.

we have been talking about marissa mayer's struggle with activist investors. later on, we will be talking to jeffrey housenbold. he just announced his decision to step down. says the activist investors have nothing do -- to do with it. box, the cloud storage provider just added 5000 new customers in the third quarter. we will discuss, next. think of it as foursquare crossed with the game of risk. geolocation technology is revolutionizing the gaming industry. ♪

emily: box reporting its third-quarter earnings. sales came in slightly higher at $78.7 million, up 7% from the previous quarter. box says it added 4000 new customers in the third quarter, growing its paying customer base to 54,000 businesses. joining us now to break it down is our next guest. dave, what is your take on the results? dave: i think it is great news. there is still a challenge to understand these recurring annuity businesses. they hit their numbers, which tells us they are smarter about operational efficiency. they beat revenue by $2

million. i think they raised fored year spg like $4 million or $5 million. emily: when box filed for his ipo, you came on the show and you said it looked like a house of horrors. how do you feel now? om: slow progress from the house. halloween is behind us. this is definitely progress. we have a tendency to expect things to be magical overnight. it takes a little while to build a business or kill a+++

emily: what would you highlight here? these partnerships with ibm and apple, how much of a help the business? >> the key is how box is able to leverage these partnerships. over a period of time, deal sizes will continue to grow. i think you will see the results over time. with any cloud model, it takes a while for companies to really grow their dealsizes and that should help their operating cash flow. emily: we have been talking about dropbox and the negative sentiment around dropbox. how much of what is going on ties to what we are seeing with box? >> i think there is a lot happening in the market. the partnership between box and ibm is an indication of what we are seeing in the larger market. the top legacy companies or tech companies, every quarter, hey are losing market cap. there's over $1 trillion in value in those countries. these new unicorns are the people consuming that. box has found a position in the enterprise space. dropbox has the consumer space.

emily: what happened to dropbox? om: it is easy to say they are in trouble, but we do not know the numbers. emily: they are also not sharing the numbers. they do not have to share the numbers. but you know, they raise it at $10 billion valuation and if some firms are marking it down to $4 billion, isn't that significant? om: the valuation -- i think, as a business, they are following the right trend line, same as with box. whether this becomes a really massive business in 12 months or 24 months, that remains to be seen because we have no data. i cannot live without dropbox. emily: i am a dropbox customer as well. om: think about -- cloud, it

keeps becoming part of your sage behavior. you start to pay more and more to your vendors. emily: what do you see as far as appetite for a company like dropbox? as compared to box? >> overtime, they will move to the enterprise. the difference between box and dropbox, box focuses exclusively on enterprise. dropbox has been consumer focused. now they're moving toward enterprise. they have a very solid product. given content management is moving towards cloud, i see no reason why these companies would not do well in the future. emily: your company is valued at more than a billion dollars and you are a unicorn company. everybody is saying that winter is coming. what are you doing to prepare

or the cold? dave: it will be a deflation, not a huge pop. we saw this about six months ago. when these private valuations have come down about 30% to kind of match what you are seeing in the private -- public markets thei love it, by the way. i think this is very healthy. there are unicorns that are not real, valued based off of page counts. i think they will go away, they will die. companies like dropbox or box, annuity businesses, i have my executive team, they have all been through ipos. i love this. emily: thank you so much for oining us. we will be right back with more of "bloomberg west." ♪

emily: another google maps exec jumps ship for uber. gupta was formerly director of product management at google maps. at uber, he will lead its mapping unit. my next guest has a long istory in the business, having run google's geo-division. he then took that experience and built a game making osition within google. niantic. the first company spun off in the alphabet restructuring earlier this year. why did you guys split off? >> what we were doing made more sense as a separate company. emily: how do you go from running maps to running games? >> what we are doing in the gaming industry is based on maps. we are doing real-world games,

you play them outside. the fundamental technology builds on that foundation of maps. we build games on top of that. emily: mapping technology is a big part of the game. give us an example. john: when you play the game, you get immersed in the fiction. you join one of two teams and then you are visiting landmarks. we take works of art, like statues that might exist in a park,historical markers, prominent local businesses. those are points on a game board that spans the entire globe. everybody is competing around the world. mily: interesting. om: how soon does this become real? we heard about location-based gaming and augmented reality, they are coming. it seems some of technology is ready.

when can i commercially buy hese things? >> i think you can have a really fun august metropolitanned gaming experience right now. inggress is 14 million downloads worldwide. a lot of people are playing augmented reality games. in the future, you have people building goggles which will make that experience sexy and ore immersive. emily: what about google glass? john: glass, some future version of that. emily: some future version of that. om: what happens in a game like this? how much behind the scenes computation needs to appen?

john: ingress, everybody is competing in the same space. a massively multiplayer game. it is definitely a computational challenge. emily: you took funding from nintendo. but you could also be competitors with nintendo. they're working on their own mobile platform. explain that to me. john: it is more of a partnership than a competitive relationship. it is a really important relationship for them and we are bringing a fresh take on t. pokemon is the number two ranchise behind mario. emily: once virtual reality hits the mainstream, more and more people start buying headsets or the future version

of google glass, how is gaming different? john: the gaming industry is going through a huge transition right now. it is a huge industry, a third of that is mobile and tablets. you have this huge disruptive force of virtual reality, on the one hand, oculus, cutting you off from the world. and you have augmented reality, which is a cousin of vr. it is adding to your interactions with the real world. rather than sitting inside, sealed off from everyone else, you are getting some exercise, interacting with people face to face. you are adding this imaginary element to that. both of those technologies will disrupt the industry. and it's going to be in a very significant way. emily: we will have to leave it

there, unfortunately. you guys can continue this conversation during the break. ♪

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>> it's 12:30 here in hong kong. an update of our top stories. the dollar enjoying a boost after janet yellen says she's remaining over the state of the u.s. economy ahead of this month's crucial fed meeting the but also a warning that delaying so-called liftoff too long could disrupt. >> gains in the market coupled with my view that long-term well amping remain boltster my confidence.

spepspepsbsh s&p down gradse the big banks. they say taxpayer support in a fute -- future crisis are uncertain. and people say two suspects, a male and a female, are dead in a mass shooting in san bernardino. there's been at least one mass shooting every week of president obama's second term. and india's second largest city remaining effectively shut down by the heaviest rains in a century.

the forecasters are expecting more rain in coming days. 4 planes are stranded in the airport, including some operated by spice jet. >> things are looking grim indeed for a second session here in asia. seeing the effect of that oil selloff overnight. we're seeing only pockets of green gore -- for taiwan, and shang hey but who knows what will happen in the amp session? e aussie sector, oil declining significantly. near 3% declines. those comments from janet yellen also weighing on investors. looking forward to the e.c.b. meeting as well as that opec meeting so lots of risk on the table for asian markets and investors to consider but we're

looking forward to the opening of mainland markets as investors weigh up whether they will be getting more easing. we are counting down to the opening of the hong kong and mainland markets at the top of this hour. emily: the man who runs the online photo company shutterfly is taking himself out of the picture. he will be stepping down as ceo and president next february after the company reports quarterly results. he took over in 2005 and the company went public in 2006. shares of shutterfly have gained over 200% and he is with me in the studio in an exclusive interview. thank you so much for joining us. you sent a very heartfelt resignation letter. why did you resign? jeff: i was the fourth ceo in four years and it was a

urnaround situation. i said to the team, we will either go bankrupt, gets sold, or create a billion-dollar company. our guidance for the year is 1.4 billion. so the main reason i've hit this really big milestone, it has been 11 years and i have been running 70 hours a week. the company is poised for the next leg of growth and we will attract a new ceo that will ring us to that level. emily: you have been in this business for a long time. what are you most proud of? you worked really closely with meg whitman at ebay. what are you proudest of? jeff: no one expected us to survive against the largest companies in both retail and technology. we were competing with apple, kodak, walmart, msn, aol. we were this little david against all of these oliaths.

we triumphed. today we're the market share leader. incredibly profitable. the second is the culture at shutterfly. we have been recognized by many media outlets about our culture. it is a great place to work and it is also a high performance place to work. we have been able to retain our talent. emily: any regrets? jeff: i don't have any regrefments it's been an amazing journey. we have been able to touch people's hearts, not just their pocketbooks, with our amazing products. we have been able to give back to the community through our foundation and our relationship ith ellen degeneres. emily: you guys did try to sell the company. or you did at least look for a buyer for eye time. -- a time. why depth that happen? jeff: we had some inbound interest. we had some inbound bids and the board decided those bids were not fully valuing the company.

we have a growing business, let's keep executing against our strategy. emily: you have been dealing with a number of activist investors. marathon. ankora. does your resignation have anything to do with these activists? jeff: marathon got two board seats during a proxy battle. our board is fully aligned on both our strategy and operating plan. emily: it must not be fun to deal with activist investors. jeff: i do not think i would use the word fun. i think 93% of fortune 500 companies have had an activist investor in the last four years. we are living in an age of activism. if you want to be a public ceo, you have to understand that and be able to deal with that. emily: this is something that marissa mayer is dealing with right now, a lot of negative sentiment. hat are your thoughts? jeff: marissa entered into a situation that was pretty difficult. a lot of turnover in the ceo ranks.

t wasn't not -- clear what the articulation -- art i can lakse and focus of the strategy should be. she is facing lots of competition. she had a lot of headwinds. the tailwind being the alibaba ipo. she is getting pressured to create value in the core business. emily: what is your advice to her? jeff: i do not know the yahoo! situation well enough to give marissa advice. she is very smart. the board has very smart people on it. the chairman of the board was my mentor at ebay and i think the world of him. i think they will explore all options to make the right ecision. emily: are activist a necessary evil or a distraction? jeff:some activists help create value and unlock it were a company might be myopic. other activists are very short-term minded.

they simply want you to lever out buy-back shares and make a quick dollar. it depends on which activists, which situation. they are here to stay. emily: as someone who has lived through many years in silicon valley, do you see -- can yahoo! be saved? jeff: you have hundreds of millions of users. generating $4 plus baseline -- billion of revenue. it is a real business. yes. many of us who have been watching, we are cheering them on and we want them to be successful. particularly companies who are buying advertising from the likes of facebook and google, we want more choices than just one or two so i'm cheering yahoo on. emily: but if they sell the core business, what remains? jeff: you can combine with other companies.

emily: what are you going to do next? jeff: i have no idea. people have been asking me that for the last 24 hours. i'm focused on delivering q 4 for shutterfly. i will take some time with my three boys and figure out what the next adventure is. emily: would you prefer to run a small private company or a public company? jeff: both. emily: very diplomatic. jeff: i would like to go to another small company. i would love to go through that experience again. o be able to take a company, build an iconic brand beloved by the customers. and create value for our shareholders. emily: what is your take on valuations right now and his discussion of bubbles or bust? jeff: i think you go through cycles. the public markets have it right.

he hype of the headline number is a fallacy because there is liquidation preference from the private investors that allow them to markup the headline price, which allows you to attract additional capital. many of these companies will have down rounds if they go public. some of them do not even have a real business model. there are companies like uber and others who are revolutionizing different aspects of our economy and they will be worth a lot of money. emily: i do want to talk about shutterfly. we are just through the thanksgiving holiday. how did you guys do over the holiday? jeff: we had a fantastic black friday to cyber monday. it is part of our important q4. once people have the turkey and stuffing, they start to think about christmas. they love to communicate with

their friends and family and oved ones. we have an amazing assortment of glitter cards, foil cards, ornament cards, and customers are coming to our design forward and on trend products. is it's an exciting time at the shop. emily: well, i am putting in my order this week for my holiday cards. thank you so much for stopping by today. >> thanks for having me. emily:after months on the defensive, airbnb is giving the world a glimpse into its operations. in new york city, at least. to save you the trip, we pulled the most interesting numbers. 16% of hosts with their full house or apartment on airbnb or over 121 days a year. $5,110 is the annual immediatian owned by hosts.

126 new york city hosts make between 100,000 and $350,000 a year from airbnb. 42, the number of nights the median airbnb property is ented out. coming up --my conversation with sequoia capital chairman sir michael moritz about diversity in silicon valley. ♪

emily: i sit down with sir michael moritz. chairman be british capital and a british knight. since joining sequoiahe has invested in some of , silicon valley's most famous companies, including google, yahoo!, and linkedin. i asked him about the lack of diversity in silicon alley.

and why sequoia still doesn't have any women partners. sir moritz: i genuinely believe we are in line to so many backgrounds, religions, we have more different nationalities working at sequoia -- it is a very cosmopolitan setting. the fact that we have embraced china, india, it shows that. the real question you might have is why, for example, aren't there more women? we have many more women working in our china business than we do in our u.s. business. why is that the case? the issue begins in the high schools. women in america and also in europe tend to elect not to study the sciences when they are 11 and 12.

the hiring pool is much smaller. emily: you think it is a pipeline problem? some would say you are not looking hard enough. sir moritz: we just hired a young woman from stanford. who is every bit as good as her peers and if there are more like her, we will hire them. what we are not prepared to do is to lower our standards. if there are fabulously bright, driven women who are really interested in technology, hungry to succeed, and can meet our performance standards, we will hire them all day and night. emily: do the l.p.'s care? obviously the returns are great. do this care about this issue? >> they care about performance. our job is to build the very best team. whether they are black or white

or female or male or muslim or christian, we don't care. emily: i also asked him about sequoias robust business in china and what it takes for u.s. tech companies to succeed there. sir moritz: i do not think anything has changed about china. the underlying consumer demand is very strong in china. business is very good. it is strong and healthy and vibrant. we have built our own business there over the course of the last 13 or 14 years. a very robust business run by some wonderful people. it is no accident that the most valuable internet companies are chinese. because over the next 20 years, there will be far more business

done between technology companies than there has been over the last 20 years. emily: what does silicon valley have to learn from china? sir moritz: i am always struck y how eager people running chinese companies are to learn about their american ounterparts. how frequently they come to the united states, how jammed their schedules are when they come here. i wish the ceo's and founders of silicon valley companies did the same thing in china. i think we can learn a lot from them. in mobile, in particular, the products are different, the services are different. if any silicon valley company aspires to be a global company, china will be a big part of heir future. emily: now we are seeing airbnb start its own china-based company. and linkedin.

what does it take for u.s. tech companies to succeed in china? sir moritz: we try not to make the mistakes we have seen others do. you need to understand the market is different and you definitely do not staff your company in china with people from america or europe. you need to understand there is a very different work ethic in china. people work a lot harder. it is a whole new level of competition. emily: my interview with chairman of sequoia capital. you can catch the whole interview on "studio 1.0" tonight. a digital rights group says google is invading the privacy

of students. the group says the system collects data about internet and video searches by students. google says it will disable a setting that allows chrome synced data to be shared with other google services. and coming up, why the hottest holiday gift this year might be a gift card for shares of tech stocks. ♪

emily: a story we are watching, the 92-year-old owner of viacom is under pressure to disclose more about his mental health. iacom released a statement

saying redstone's doctors have certified that he is mentally stable. imagine if purchasing a stock at a company was as easy as buying a gift card. it already is. spock -- stockpile affers gift cards. stock pyle offers gift cards. they can be found at major retail chains. pick one up when you're buying your groceries. you can also buy one online. joining me now is the ceo of stockpile. perfect time for the holidays. how does this work? >> it really is that easy. i have one right here. you walk into your local retailer, buy one of these off he gift card rack. pay for it like any other gift

card and give it to the recipient. they simply scratch off the code, enter it at our site, and $50 turns into fractional shares of actual stock. emily: do you have to sign anything or register with the s.e.c.? you have to sign up for a >>brokerage account. it takes about three minutes to get a brokerage account. emily: how does the business work? >> we get a few things. we made it easy and acceptable for anyone to own stock in their favorite companies or give it as a gift. 86% of americans have ever had a shot of doing that. we're bringing access to the stock market to anyone who wants it. emily: do you have to have particular qualifications? >> you don't. you can buy a dollar amount you are comfortable with without having to stretch. if you want to buy google stock today, you have to save up to $700 to buy one share.

here you can buy whatever is your comfort level. emily: what is the fee? >> our gift cards are priced a lot like those visa gift cards. a $50 gift card, we charge a ew dollars on top of that to cover credit card costs and trading commissions and things like that. the recipient does not have to pay a dime when they are redeeming the gift card. what is interesting about a visa gift card, you give them as gifts. you are buying these as gifts. some people are using these as a starter kit to get started in the market. emily: what are the most popular stocks? >> facebook, google, apple. we are also seeing some more sophisticated behavior. people are interested in the arket indices. you can neff directly in an e.f. -- e.t.f. linked to the

dow. we are seeing a card that has a whole bunch of companies listed on the front. emily: what are the least popular? >> i cannot say that. a lot of stocks out there, one secret, when you get one of these cards, you can switch to something else is the gift giver did not give you the stock you wanted. emily: can you give us any numbers on black friday sales? >> sales are going through the roof. we ordered a million cards for the season. what we are seeing is people are buying these cards by the handful. and i think the reason is when you buy a gift card, you are buying for friends, family. nieces and nephews and kids and grandkids. we are in the middle of the christmas season. but think of all the occasions that this is perfect for. emily: what if we are in a bubble? any guilt? >> no one is good at timing these things.

you and i probably wouldn't be sitting here if we were good at timing the market. this is more for the long haul investor who wants to start early. and do it regularly. emily: happy holidays. thank you so much for joining us. catch "studio 1.0" tonight. ♪ >> the following is an important

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