emily: this is the best of bloomberg west where we bring to the top interviews from the week in tech. one year after losing her lawsuit, allen is back. she has no regrets. plus, they get serious about snapchat we will talk about the studio just for snapchat and where he thinks new media is headed.

digitalshrink in a revolution, we will talk to him later this hour. the investing partner has started a new advocacy group. it will push for greatest diversity at tech companies. she sued for gender discrimination. she lost on all counts. what is she been doing yet? i began by asking why she thinks this project to work when others have not. ellen: we pull together a team of women who have almost 150 years of experience in tech. we've seen the problems and issues and we have a set of recommendations of what people will be able to do to solve the problems. we think the research we've done will make a difference and emily: if you give these

recommendations to ceos, what makes you think they will listen? ellen: we have some who have said they want to use our recommendations and they will participate in our startup program. we shared it with a bunch of ceos and engineering editors. they say they agree with what we recommended. we're not telling them to fire everybody. these are ideas that came through experience, things we know and are sure will work. experience,out of the research that's out there. it's one integrated document or website that will help people do what they say they want to do in a way that makes people work. we are still talking to people. i'm excited that people are interested and they agree with what we're saying. emily: how is it going to work?

you are working with companies of a certain size. ellen: we have two different programs. one is for startups. for 18 for startups is startups that are between 25 and 1000 employees. we want to have three meetings. one to get things started, what recommendations are you going to do? what metrics are we going to collect? a second meeting three months in to see where we are and how you are doing and what's working. the third meeting will figure out where do we end up in what worked and what do we want to change in our recommendations based on these experiences. emily: for a company as big as google or facebook, women make up 30% of the work force. it's too late for them?

ellen: we think we can make an impact, the ceo can move things. the eye of changing really quickly and moving on the fly is most appropriate and impactful. emily: what will your role be? ellen: it's been funny. out of ours together spare time and working together. we got a lot of things done. it's been a passion project for us on the side. we are going to continue in our own work and drive things forward as a team. emily: you lost a high-profile case on all counts. you were in -- interim ceo of reddit. ellen: i took six months off. i spent time with my family. i went on vacation and got some rest.

and pullon this together the team of people that is there today. i know i am going to miss somebody. erica baker. there is one person i am missing. we've been working on this and i've also been writing a book. emily: what is the book about? issues, butthese animated by my own experiences in tech. how do we get through and make it a more diverse environment? emily: are you looking for a job? what is that process like? people were nervous to be seen with you. when i was at kleiner perkins, people did not want to

see or be seen with me. people are becoming more aware of the issues. it's not my one story. a lot of people are sharing their stories and having similar experiences. i've been working on the book. i've not looking for a job until i get the book done. we'll see what happens. you've had aat year to reflect, would you do it again? ellen: that's a good question. i would do it again. i will tell you what people told me. they all said they would do it again, they would not recommend other people to do it. do to what would you people who are being discriminated against? do they sue? do they go somewhere else? ellen: it depends on where you are. if people will listen and you for me itenergy,

didn't work. if that's not going to work, go someplace else. emily: why didn't you appeal? ellen: it's so expensive. you're not matched in terms of resources. they have people attacking you and your family. at the end of the day i thought my story is out, i can tell the rest of what i want to share. i think people heard what i had to say. more women have partners. they say this was not sexism. they said you did not deserve to be promoted. was there any part of you that thought maybe they were right? ellen: no. i saw the other women who had similar things said about them.

becamejohn doerr chairman. ontold me he wants to focus developing new talent. what would you say to him? do you have any advice? ellen: include some women and underrepresented people of color in the group. emily: do you have a relationship at all? ellen: no. emily: you did some bold and controversial things. you try to crack down on online harassment. the community revolted. there was a petition for your resignation. where you fired? if you feel pressured to leave? ellen: there were a lot of things that happened act than -- back then. i could write a book about just that. when i took out of that was it's difficult to change a community once it's gone a certain direction. what i hope other internet

companies realize is when you have problems, they scale with your company and it becomes hard approach you take in. to makehat can be done reddit save for women and minorities? misogyny, death threats. you were on the receiving end. ellen: you have to your team and a giant community team and a bunch of tech knowledge he. -- technology. the jury is still out on whether or not they will be to do it. it's harder to do than it is for much smaller companies with a smaller community. it's hard work. you see that from twitter and facebook and snapchat. trying to fix things later is always harder. we are focused on the startup size.

if you can get your start up to inclusive,and hopefully that grows with the company and grows with the community and builds in all the great things you want from the get-go. emily: are they harder on women in leadership roles? do we hold people to a different standard? i am thinking about marissa mayer. ellen: that's a hard question. i don't know the details of what they are doing. i do know that the leadership roles have a much lower number of women in there. there should be more women ceos and there is something going on that is making it hard for them to succeed in that's making it harder for them to get into those positions. : how do we get more women into technology? in at get all the girls

an early age and get them into school. i think that your problem is once they get in, are we giving them an environment where they can succeed? are we giving underrepresented people of color opportunities to learn and get hired and get promoted and get into roles were they can lead? that is we have a lot of bias. we are not finding people were making an effort. we are come with the way things are. my exclusive interview with ellen pao. big changes are afoot for the industry. we will hear from the box media ceo. studioreating an entire for snapchat. tivo is planning for a

monumental shakeup. we'll hear from the ceos from both companies. ♪

emily: vox said it was expanded into tv and creating a studio for snapchat. many traditional news outlets are struggling to keep media levels up. they are siphoning away at dollars. i set down with jim to find out with more about his expansion plan. emily: you are doubling down. why now? jim: all of our growth is on mobile generally. within mobile, it's on a few of the big platforms. e-mail is a mobile application. ucs doing more e-mail newsletters. facebook is a great mobile application and we are investing in face back.

snapchat is the fastest growing. we have a great brand. we want to unleash those great brands either in food or tech or news and take advantage of our storytelling skills. we are really excited to be investing more and snapchat. emily: i am curious about how these are evolving. jim: that's a good idea. year. a i think they were aware of the brands we were creating. we are creating a new group of france are designed for digital consumers who tend to be young adults. they tend to be highly engaged in new media. we got to know one another. snapchat is going out to the best programmers. they love our brand. it's a great partnership. emily: everyone is trying to understand how these new platforms are evolving. what works better for vox?

jim: i think visual more generally. that means video certainly. it also means great graphics and photographs. it's things that can appeal to people. what excites us about snapchat is is a form of storytelling. it involves video and photo imagery. it's really exciting if you can get audiences to engage on their terms. it's not as simple as a tv channel. audiences want to engage in a different way. we pride ourselves on being a great story platform across different platforms. it might be snapchat or facebook. emily: you have different websites. balance investing in these new platforms and experiments and investing in the provisional -- traditional way?

jim: that's an important question. ourselves on being able to change quickly. we like to think of ourselves as an organization that strives not just to embrace change or tolerate change, but to thrive in change. that teens having some strong core values. we are holding on to them and trying new things and experimenting with new things. we tend to experiment where we know there are big audiences that will be receptive to the brands. we are receptive to the marketers we work with. we allocate resources and capital. we scale up. we scale down. it involves looking at a lot of data and understanding the audience and your skill set. be alert and ready for change. we have to be ready to allocate differently.

emily: you are launching a tv show on any chick -- any. about programming for the snapchat audience. i mentioned it's a different kind of storytelling medium we are excited about. television is a storytelling medium that a lot of people are interested in as well. whether it's snapchat or television or a website or facebook or any other thing that comes along where we see big audience potential to have our brand speak to audiences, we will be there. we are excited about it. this is our house and home in real estate. we are going to tell some exciting stories. and tell stories about big housing trends. this is what we know well. we are excited to partner with

somebody who knows tv well. emily: that was jim bangkok. pioneer is back in the game after a billion dollar acquisition. what's in store? we will hear from both ceos just ahead. the man who saw potential in steve jobs and laid the groundwork for the modern videogame industry, we will talk to the atari founder. ♪

emily: rosie and tivo are teaming up to take an immediate landscape. deal combinedllar to powerful players. tom carson will lead the new company. they joined us this week to tell us more about their plans.

emily, tv is a household name. guide that tells us what's on. what is the combined company tom: to be known for? thanks for having me on. we just came back from an audience meeting with tivo employees. the excitement has been incredibly high. a lot of it has to do with the combined companies. they have an incredible arsenal of technology for allowing consumers to get the content they want. for us, it's about the product side of the business and helping us form a company that is better from a perspective. emily: tivo that scene the march of technology in this space for a couple of decades. the ftc may be opening up the set-top box market to more competition.

how would it impact you guys if amazon or apple push further into the set-top box market? it speaks to the rationale of us coming together. the world of television has changed phenomenally. new players are coming in. consumer behavior has changed considerably. we see this as an opportunity to and what tivo has done create the best way to watch television and bring that together with a lot of the smart haveof plumbing that we provided. to the extent that the fcc is able to create more opportunity for innovation and competition in that arena, we think the competition makes us stronger to play with a lot of large silicon

valley companies being part of that. emily: you have a powerful portfolio combined. we see companies in litigation with patent licensing issues. are we going to see more of that? abouthis deal was not acquiring intellectual property. gets a reputation for being a patent bully. the reality is we work very hard with our prospective licensees to come to an agreement that is fair and mutually agreeable. less than 2% of the agreements we have end up coming from a litigation. the majority of our license agreements are done amicably. this is about the product business. great team of two

companies that really do in their respective areas have great product technologies that allow us to be effective. emily: they're developing their own i.t. for tv as well. do you have ip that they need? tom: anybody that is doing a search for video content in what ever form they are doing it, there is a high probability of needing a license under the rovi patent. even where we have licensing agreements with prospective licensees, we find out that they have a high interest in the product technology. the product technology that we between the two companies

are best breeds. to be notthe dynamic just on intellectual property but on cutting edge technology. tom carson and .ov the founder of the con academy when we come back. bloombergsten to radio on sirius satellite radio. ♪

♪ welcome back to "best of bloomberg west." let's turn to education in the way one man's vision may be changing the rules of the classroom. supercharging with video, lectures at home. kahn academy.y -- we are checking in with sal ka

hn about what is changing and education. it's been a year since we spoke and you have record numbers across every category. video, teachers, students. give us an update on where you are. associate useople with videos, especially around math. we're much more than that. partnership with the college board around the preparations for the sat. we saw the data from this march where kahn academy was the official prep for it. we've seen a 20% reduction in paid test prep. the use kahn academy. now they take the psat and it can be used for a diagnostic. it's much more than videos. we are tied into things like the sat, trying to get as many students as possible to come the college and life ready. we doing internationalization front in india.

we've been working with the foundation in mexico, with a lemon foundation in brazil around making sure all these regions have access not just the videos and in their language, but standards. it's available on the platforms that are relevant to them on mobile. there has been a lot going on and we continue to add more content. emily: you've also launched the khan lab school. it is sort of like amazon opening up a brick-and-mortar store but you believe it could that you are documentary to the overall platform in the future. what have you learned? >> our mission is a free world-class education for anyone anywhere. we take that seriously. the spirit behind starting a physical school is let's use that as a lab to understand what the best learning can be. students get more responsibility. they are building a portfolio, they are learning. as we learn from that we hope to

share it with many more people and incorporate it into what is on khan academy. i've learned a lot. i think the virtual in the physical are somehow in competition which is other but they are very complementry. if students can learn at their own pace and time and freeze up a lot of time during the day for more human to human interaction, for more projects, more tutoring. -- when you don't have everyone learning at the same pace you have a mixed age environment. i have seen my own son already able to mentor younger students or being mentor by students older than him. it really matures the students in a powerful way. in a lot of ways it teaches them cognitive skills or maybe more valuable.than even the math of the science emily: tuition is $22,000 a year which is less than a lot of private schools but more than the average person can afford.

you also have elon musk starting his own school with a local teacher with 20 kids. you have mark zuckerberg funding and giving to education more broadly. i wonder if you're back in the same position where instead of democratizing education we have public schools that everyone can afford and a few elite schools if you can afford. >> i think the spirit behind a lot of the schools, especially -- there is arate feeling that the model of modelion of this factory of the lecture, everyone moves at the same pace, you get grades. even if you get a 'c'you move on. you have gaps in your knowledge and students hit walls and they don't really appreciate the creativity of a suspect -- subject. there is an appreciation that will not serve students wealth of the 21st century. khan academy has a two-pronged

approach. it's a different organization than the lab school. that's what everything about let's share as broadly and widely as possible. it's literally a free world-class education for anyone anywhere. you can access the smartphone insult educate yourself. if you're part of the physical plant -- classroom it can be a richer experience. school and what elon musk is doing as well is pioneered new models that can be a catalyst for other things. we are already working with the local public school district. it's not just a one-way stream of information. we are learning a lot from them on how together we can get to a world that is more project-based, more portfolio-based. emily: part of the reason we wanted you to come on the show is we are going to be in boston for three days talking about the boston tech scene at harvard in m.i.t. you have a degree from m.i.t.

and harvard business school. you're one of the most decorated people in silicon valley. when you get all those degrees again? >> what i get those degrees? yeah. -- it waseople ask me is the hands-down great life experience. the number one thing is the people you meet push you to become better. i think boston particular, especially m.i.t. and harvard, but the whole town feels like a big college campus. they really pushes you to become a better person, especially intellectually. emily: our interview with khan academy founder sal khan. nolan bushnell who created atari along with "pong", we will ask you how gaming to change education. for the best longform interviews check out the "studio 1.0" podcast. be sure to leave us a rating.

it will help more listeners discover our content. ♪

♪ emily: if you have ever played a video game, dom debt of gratitude -- you go in debt of gratitude toward next guest. he treated pong, asteroids and centipede. these days he's bringing games into the classroom of the covenant called brain rush, trying to make education as addictive as atari. rush, you say, can teach suspects -- subject 10 times faster than in the classroom of the 90% retention rate. how so? nolan: it turns out that when games are played it provides context. quite frankly, kids learn at their own speed. they played to mastery. playing to mastery is the key. no abcd.

you don't complete the game until you understand it completely. that is really important. emily: educational gaming is one of those ideas that seems like it's always just about to hit it a. why has it not happened yet? games are ank that part of young people's lives today. they spend so much time of their cell phones and computers, tablets, that they feel as comfortable learning and using technology as they are in the regular classroom. emily: you're credited as being the founding father of the electronic gaming industry with pong and everything else you have done. today the most popular games are things like "call of duty," games filled with a lot of violence. do you think in the future violence will always be part of the industry?

violence oflly the the games has been decreasing. while there is a big ones like "call of duty" and what have you it is kind of cartoon violence. "grand theft auto" is probably one of the exceptions. if you look at the numbers of people playing, there are a lot of puzzle games that are good for your brain. the cell phone games that people play on the subway or the school grounds, they are pretty good and not violent at all. emily: what about the medium? virtual reality has been touted as being potentially transformative for the gaming industry. do you think it will be transformative and when will that happen? reality think virtual has certain problems that are not totally solved yet. i think there will be virtual reality in arcades and in public

places. option in thehe home has the wait until the headsets are sub $200. i see that being quite a ways off, particularly for the ones that are well-designed and ready to go. the systems right now -- go ahead. vr, what not be our -- is the next big shakeup? nolan: i think augmented reality probably has a much more interesting area where you can play with a bunch of your friends. i think it's going to sort of take over the board game business and the party were people get together and have fun and play a game with an augmented world in front of

them. i think that will be very fun. emily: how big of a future do you think the console and console games have? i have been expecting it to drop off for the last 10 years, so i'm probably the last uy that should answer. i think pc's do a good job of gameplay of the consuls represent purpose-build things that give access to people that are less technically literate. i think they are around for a long time. emily: we've been talking about diversity in the tech industry. i'm curious for your historical perspective. why do you think it is that women have largely been left on the sidelines of the tech revolution and the gaming industry in particular? isn't anything you remember from your early days that may be laid

the groundwork for what we are seeing today? well, i think that it stems back to the number of women in the math and sciences in college and high school. i think a lot of women just choose to not going to the hard sciences. and i'm not sure why that is. i have five sons and three daughters. all my sons are intact and i'll make --are in tech and all my daughters are not. i feel like i was equally supportive to both of those things. some of the great games -- if you have ever played centipede, that was done by donna bailey, one of my great female programmers in the 1970's. emily: atari cofounder nolan bushnell. coming up, he was an early

investor in some of tech's biggest unicorns. our exclusive interview which arterarter -- with troy c is up next.

emily: investors are continuing their caution towards tech. specifically private valuations with some notable voices point to a few early signs of a bubble. i spoke with troy carter, founder and ceo of atom factory. the firm was an early investor in some of tech's biggest unicorns including uber and spotify. i asked if winter really is coming for the industry. troy: we are starting to see market corrections both on the late stage and in the early stage side as well. we do feel -- i think we are starting to see a lot of the younger entrepreneurs get a lot smarter in terms of their business approach. before where it was about how can -- it was all about

hypergrowth, i think a lot of entrepreneurs are factoring in droplet ability of revenue and things like that as well. we are starting to see a correction in behavior. emily: you are an investor in uber, lyft and dropbox. they all have different narratives going on right now. is uber worth $62.5 billion? troy: i think it will be worth a lot more than $62 billion. when they finally do decide to go public, it's probably going to be one of the largest ipo's in history. we are just think seeing the beginning of uber. emily: dropbox has been plagued by write-downs from mutual funds. how significant are the? they do seem to be adding negative sentiment around the company. troy: they have a very smart team in place. drew is a fantastic founder.

i think they have an awesome product roadmap ahead. i'm still bullish on the long-term. with dropbox emily: i want to talk about spotify. you are one of the first to embrace spotify. the company still has some challenges to overcome with many of the most prominent artists. how to this challenge is play out for spotify? do you think they can overcome that? can they succeed for the long haul without the biggest names in music? troy: i think they look at the biggest names. just looking at projecting ahead, i think spotify will definitely win the music streaming race without a question. i think the revenue pot is growing exponentially for artists. so when you see -- i won't even say necessarily for artists. i will say for content owners. i think the misconception is

that spotify is not paying out a lot of money. spotify is paying out a lot of money. is whether that money is making its way into the hands of the artists. i think that is the one thing the artists have to figure out with record labels sooner than later. idc some changes in behavior there as well. i think long-term spotify is going to be a fantastic shape. i don't think those artists will be able to reach broad audiences without spotify. emily: beyonce just dropped an entire album with streaming rights exclusively on tidal. is tidal stealing some of the thunder that spotify or apple music would have had? troy: i don't think she dropped it exclusively. if i pull up youtube right now, not even probably, i can listen to the entire album. audio, therewith is no such thing as a real exclusive.

just because once you buy the cat out of the bag it will be all over youtube. my argument is what is youtube paying up to the artists for the songs that are out there illegally? emily: would you say apple music has been a success? troy: they never made any grand proclamations about what they are looking to accomplish as far sheer numbers. when you look at what they are able to do with drink and able to do with some of the other exclusive content and some of the talent they have able to attract to the platform, jimmy i mean and dr. dre are a force to be reckoned with at apple. i think they have attracted a lot of talent that apple would not have normally been able to retract -- attract. judging from that level i think they have been a great success. also i think they have been fantastic but educating consumers on streaming. the moment that apple put their

stake in the sand we saw spotify grow as well. i think it is one of those things where we are seeing everybody benefit from apple's ability to educate consumers. i think judging by that i would say so far it has been successful. emily: this is season 2 of your accelerator program. you were just opening up for applications now. how would you compare atom factory and the quite crowded landscape of start of accelerators out there? troy: i don't know if it's necessarily too crowded. you have a lot of young entrepreneurs starting companies. i think the accelerator programs are fantastic. just be able to give them the support they need, whether it is funding, mentor ship, access to networks. i do think there is a lot of value in these accelerator programs. emily: what kind of founders are you looking for?

you say they can disrupt entertainment and culture. troy: it's open to all types of founders. i think that we learned from our network is we have a strong relationship in entertainment and media, and with a lot of cpg and fortune 500 companies. we look for companies we can plug and play right into adam factory --atom factory. it was everything from a mobile streetwear marketplace to sidestep efforts focusing on merchandise to transfer doing large file sharing and serves as a media platform as well. we look for companies we feel can fit right into our network and we can help them from day one. emily: that was our exclusive interview with troy carter, founder and ceo of the atom factory. that does it for the best of bloomberg west. stay with us for the latest news from the world of tech. tune into the daily tech

program, bloomberg west, and next week we will be live from city's exploring the most exciting startups. we will see there. ♪

carol: welcome to "bloomberg businessweek." i am carol massar. david: i am david gura. carol: right now, breaking the addiction to sugar. david: a cautionary tale to other unicorns. carol: and the powerful powerbroker behind donald trump. david: all of that and more, ahead on "bloomberg businessweek ." carol: we are here with 's"oomberg businessweek editor. you talk about the bank of england