clinton foundation was breached by russian hackers according to people familiar with the matter. the campaign has increased concerns about hillary's digital security. the olympic committee convened a special summit following last week's decision by the international association of athletics federations to uphold it than on russia's track team -- its ban on russia's track teams at the upcoming linda games. u.s. attorney general loretta lynch traveled to orlando, scene of the deadliest mass shooting in american history. she praised first responders for their actions. ag lynch: we are also offering counseling to first responders to help them deal with the trauma they have experienced.

in their bravery, they the burden for all of us and they will carry that weight long after the smoke has cleared. mark: she also met with families of the wounded and called it a very difficult meeting. "bloomberg west" is next. emily: i'm emily chang and this is "bloomberg west." coming up, elon musk makes his latest play. tesla offers to buy a rooftop solar company where his cousin is ceo. does it make sense? we will discuss. sat down with the ceo of instagram to talk about

unprecedented growth. can china's largest internet company become a global player? nearly $9pony up billion for a stake in tencent. the largest shareholder of tesla and solar city. $50 aosal in the range of share is in the works. shares up on wednesday. musk says the basic message is that there is a huge opportunity to have a highly sustainable energy company. is surging in after-hours trading on the news. for more details, i want to bring in our editor at large, cory johnson. y: they want to cover

everything from the creation of energy to exxon mobil, maybe. this is a strange thing. in one companyng to bailout another company that has fallen substantially in the last year. just a look at the numbers shows how crazy this is. if you look at the cash tesla has on hand and throw in the debt, you have a company that cannot afford solar city. debt.has $3.2 billion in if you look at the cash and debt, solar city is $5.8 billion in enterprise value. cash has $1.4 billion in and has to build more factories to build the amount of cars it needs. now, they have to somehow raise more money to acquire a company

that's in a very different business. installing rooftop solar is a very different business than manufacturing cars. to try to do both at once is very disparate. just: tesla is not manufacturing cars anymore. they are making batteries. on the call, musk said this is something we have been debating about and thinking about for years. the timing seems right because tesla is ramping up activity with power storage. if you think about it that way, does it make more sense? they have great dreams for power wall, but most people have no use for power wall. of the teslag out plan for batteries in tesla cars . the notion that they are in the business is ambitious, but shares of tesla are plummeting in after-hours trading. i think a lot of shareholders are saying wait a minute, you are taking this business we

think has great potential, making cars, to invest in something whose stock is tanking right now. emily: elon musk has said he will abstain from the vote, but let's talk about his involvement in both of these companies and what this means. cory: keep at the board together on both companies. emily: his cousin is the ceo of solar city. cory: the notion that these companies could be independent, i think, it's good of him to recuse himself, he absolutely should, but i don't think we should look at those boards and say they are absolutely without influence on each other or don't follow the desires of. -- of elon musk. emily: my question is why now? what is the impetus at this very moment for them to make this offer? financially, both companies need a big change. tesla -- some critics say tesla

does not have the cash it needs to build extra plants to support the excel are rated production goals they have announced. -- accelerated production goals they have announced. they want to open a factory in china. where are they going to get the money for that? it's going to be very expensive for tesla to do all the things they want to do. will need to do a massive capital raise to fund this and everything else they want to do. this is a wild story. emily: we will keep talking about tesla wanting to buy solar city, two musk companies. cory: there is always spacex. emily: why not make it three? ,oming up, a supersized deal another one. a chinese internet company is shelling out for 1tencent.

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china's largest internet company sets its eyes on the west. tencent is looking at the maker of mobile hits. tencent already dominates the scene in china, but this could give the company serious exposure abroad. the other half of the story is who tencent is buying supercell from. in a surprise move, the japanese internet conglomerate announced that its president would be stepping down. context isfor n more andeditor for asia coverage the ceo of a mobile game

corporation. so, what really happened? is son said he was heir apparent to the company, and he, has been cracking a few jokes on twitter. what is the next big investment, are you going to just roam the world? tweets.o plan, he >> it certainly was a surprise when he was recruited by google two years ago. he came in first to make investments in internet companies and other technology companies. a year ago, he was promoted to president. he was talked about as the heir apparent. he said he was looking for somebody who could succeed him in the ceo role. the interview our reporters had with him, he said he wanted to remain in the ceo role for a longer time. he said i feel very young's

they'll. i want to continue running the company. had hoped to take over the position more quickly, and for that reason, he was going to leave the country. .here are questions about arora outside investors had asked to investigate and possibly dismiss him. they did not think he was qualified to take over the job. the board of directors had an independent group investigate him and clear him, but there seem to be some questions behind the scenes that have not quite been answered yet. christian, as one of the earliest investors in supercell, and a board member, what do you think of tencent taking control of supercell? >> i think it's smart, to be honest. they don't have the same exposure internationally. mobile gaming is the largest

part of the hundred billion dollar games market. as a now, having tencent partner domestically is a big deal. gets exposurecent abroad. they are one of the few companies in the gaming industry that can consistently create hit after hit in the mid-core gaming sector. from that perspective, it really very good deal. perhaps tencent can help supercell in a way softbank could not. emily: softbank is unloading a stake in alibaba. peter, your firm is reporting that there may be a basement deal in asia. what are you expecting? been focused on cleaning up its balance sheet. they sold the stake in alibaba. it was about $10 billion.

now they are selling their .oldings in supercell they also sold off another game company. they are trying to raise some cash and straighten out their balance sheet. sprint has been a challenge for them. the interesting thing, from a 10 side, they are spending all this money and not getting control of the company. dayfounders will still run to day operations. the founders want to preserve this unique culture that christian was talking about earlier. gaming,n the world of one hit wonders are legend. we have seen companies suffer from this before. can they keep the innovation going? >> i think they can. the gaming industry is about talent and culture. so wellercell has done

right from the start is to have a team of creators and a culture of trying, trying, trying again. famously, they say they celebrate every failure. they have killed more games than they've launched. this year large hit and before that, heyday. , for theuestion is industry, mobile gaming has become the largest segment of the games market. what next? has proven they are very good at the gaming experience. what happens when the course of continues to grow on mobile? we expect to see in the next 3-4 years, core gaming growing in a big way. emily: all right. thank you both. down with thet

instagram cofounder and ceo for a wide interview about the company's 500 million user miles down, ad strategy, and whether or not he regrets selling to facebook. all that and more, coming up. ♪

emily: noun to instagram. four years ago, faced bought the -- now to instagram. four years ago, facebook bought the app. we sat down with a cofounder and ceo for a wide-ranging interview. ice herded by at about -- i started by asking about the half billion user milestone. kevin: i think the last time we talked, we had a couple million users. it has been a little over five years. we built from a company of 13 people to now just shy of 500.

it's crazy the scale. we have nearly one out of three people in the united states using instagram every single month as well. it's ubiquitous, and that's every entrepreneur's dream. the last 100ded million users faster than the 100 million users before that. why do you think that is? heaven: images are a universal language. they's to everyone. they allow us -- kevin: images are a universal language. to everyone. they allow us to communicate globally. emily: which countries or cities are incredibly popular? >> brazil is one of the biggest countries. different phones and platforms, but they

are totally into social media and they love sharing images. is from brazil, and when he goes home, he is an all-star. emily: what are your plans during the olympics? >> the olympics are always a big moment on instagram. you have all of the athletes and countries represented. now that instagram is so big, i platform. a great about a brexit? could that affect you? >> potentially. we have a thriving platform in the u k i don't think it will be a big deal for amsterdam. been yourt has experience working with european regulators? >> when we were talking earlier, i expressed how much my job has changed. i did not realize how complex it

would get to run a company of 13 people with 13 million users around the world to now over 500 million, taking each country on its own and understanding their local laws and local regulations. we want to be globally available, so we have a big team focused on that. it has been one of the most interesting learning curves as a ceo as we have grown. --ly: the plot from only's platform only started incorporating ads in 2013, but according to one marketer, it will account for 9.5% of facebook's revenue this year. that number is expected to grow to 14%. early, but it's promising. the cool thing about advertising on instagram is that early on when i went into the boardroom, that long, mahogany table where you are pitching your business

like it's going to make money someday, and you get the eye rolls. knew this would be a powerful platform. there are a couple of things that make the advertising work. one is inspiration. you log on every day and get inspired. the second is an engaged audience. when you get to the scale of 500 million people around the world, you can really reach any customer. we do that through targeted advertisements. emily: so, to the extent you can, give us some numbers. how much money are you making? >> that is off-limits right now. , it has grownd nicely. it's early, but it's promising. people talk about instagram and your revenue model like it was easy, once you

combine the power of facebook and all of its resources, boom, you can make money. what have the challenges been to transitioning to making money on a broader scale? company thatave a has built its technology for a single platform, it's not as easy just to plug it in. figured part is we have out how to plug it in in a native way. we did not sub or non-square photos -- support non-square --tos up until the year one until a year and a half ago. people want to post creative across different platforms. changes like that, longer video, etc., are driven by consumer need and advertiser need. emily: and you still have users who are not happy about ads and protest very loudly.

how do you balance that and keeping the user experience simple? >> our number one value is community first and we talk about it a lot. the first thing you should do is listen. makecompany, we need to sure we understand the experiences people are having. driven.ata when people hide ads, we know which adds they are hiding. we change the ads we show to people. we get great feedback both internally and externally. every employee sees ads in their feeds is well, and we are able to get great -- as well, and we are able to get great feedback. emily: instagram will account 9.5% of facebook's overall revenue. that will grow to 14% globally. do those numbers ring true to

you? >> like i said, we are not talking about specific numbers yet. we are trying to lay a foundation so we can grow from it. in, i think we will create a platform for a long lasting business that will appeal to everyone. you do not make money on to posters who get paid products and may or may not disclose that they have done so. what is your view on this? how should instagram be participating in the influencer economy? >> it's really challenging. at many other networks are the scale where they have the amount of influence that influencers have on instagram. that method of advertising is -- nearly as affect of

effective as going through the instagram system. you can't target users. you have no analytics or insights. while we see it and we understand it, we need to make sure we work alongside it and work with influencers to allow them to get the value they need. because of course, we want to make sure people build long-lasting presences. emily: is it something you would crack down on? >> i would not say crackdown so much as partner. right now, it is a very small percentage of the total value flowing through instagram. it, ate cannot ignore the end of the day, we need to be the consumer's advocate. it's not ok to not know that something is an ad. that's what we are going to crackdown on. what will you be pitching to advertisers about instagram? >> i don't want to spoil the pitch.

we have a great team going to talk about instagram and how it facebook. my job is to think about the consumer experience and making sure that ads are great in the long run, that they pair nicely with the feed and content we present. my focus is on building great product. emily: my interview with instagram ceo kevin systrom. still ahead, we continue the conversation. i ask if snapchat is a threat to the business. you can listen to bloomberg on the radio, at bloomberg.com, and on serious xm. more of "bloomberg west" next. ♪

mark: i am mark crumpton. let's begin with a check of your first word news. fiscal chaos is a crisis of the

moment and the senate needs to 1, according to puerto rico. the national institute of health is studying as many as 10,000 pregnant women in areas hit by ika virus. a u.n. special envoy to syria says political discussions to determine a path forward for the war-torn country cannot continue while hostilities are escalating and civilians are starving. the cease-fire is largely being ignored and aid convoys have been shelled by government forces. the window of opportunity to reach a political solution is closing quickly. pilots ae has offered deal in return for calling off a

threatened strike according to one of the unions representing the cockpit crews. the group's chief executive has suggested putting the company's controversial transform plan on hold if the strike is canceled. earlier thislkout month cost air france $15 million. 830 6:30 p.m. in new york, a.m. in sydney, australia. i'm joined by paul allen with a look at the markets. good morning. paul: wednesday trading has been underway for 30 minutes in new zealand and it is looking flat at the moment. expecting gains here on the a .x, the -- asx the nikkei is weak at the moment. in april, there was the fuel economy scandal. we will learn where mitsubishi

motors is later in japan. eight $.7 leading an billion act decision -- and $8.7 billion acquisition over supercell. they will hold 84% and distribute games across china. rora is going to be stepping down after son named him the likely successor earlier this year. says he would like to remain at the helm of softbank for longer. no reason given for arora stepping down. emily: back to my conversation with in's graham ceo --

instagram ceo and cofounder kevin systrom. in part three of my interview, i asked him to talk about his vision for video and his thoughts on the competition, a.k.a. snapchat. sonny about video, everyone wrote it off. what of -- what funny -- is funny about video, everyone wrote it off. what we have seen his people spending time watching video. it has grown 150% in just a few short months. more and is becoming more video dominant, video heavy. i think that is a sign of the times. people are taking more video, can you make more video. more video. all these influencers we were talking about that are going to vidcon are using video as well. emily: what is the vision of

around big events like the oscars and the super bowl? 60the idea of expanding to seconds is all about being community first. 15 seconds is too short to share anything compelling and dynamic. as we talked to influencers, celebrities, etc., they have things they want to share. theiry want to share content on instagram, we want to make sure they are able to do it in more than 15 seconds. twitter keepok and talking about live events, live the video, event-based products. your strategy around live in particular, and how do you get more of it? >> i believe our opportunity at instagram is to capture and share the world's moments both in the moment and after the

moment. if you want to know what it's happening in the world, we want to show it to you. that is what you can use our explorer page four. you can see a big dance music vegasal happening in las right now. we have compilations after the fact of chefs making dishes. it's all about knowing let's happening in the world right now and being able to come to instagram -- what happening in the world right now and being able to come to instagram as a media destination. facebook has dipped 80 into it -- well, they are going heavy toe into- dipped at well, they are going heavy into it as well. you have to figure out how it will be different at instagram offerings.e other

the crazy thing about a service that starts at 21 minutes a day for the average user is that time is of the essence. we only have limited time to pull out our phones and do something. the facebook family continues to share and grow on time and be the destination where people love spending time in mobile. anyone who competes against that is a competitor, but at the end focuseday, we are inward. can we deliver on creative content and products? is the experience compelling? that's what we are focused on. lot like whatds a jack dorsey says about twitter. do you see yourself competing more head to head with twitter? they don't have the user numbers you do. >> what social media outlet doesn't a this? it's the opportunity of our thing that didn't

exist 10 years ago, that could exist right now, is what happening in any corner of the planet right now? emily: one user told us they and concerned that facebook instagram were not more scared of snapchat. we are competing against many different services for time and eyeballs, but getting to 500 million users around the world is big. 300 million of those our daily act it's. .00 -- actives 300 million people open instagram every single day. that's big. we absolutely don't think that's going to last forever. we need to keep innovating and introducing products. our track record is to do that and to continue growing.

there will be other companies, but we are going to focus on instagram. about is there anything snapchat that you admire or have learned lessons from? >> chat is an amazing company. they have taken the thing we snapchat is an amazing company. they have taken things we love and really catapulted them. example ofs a great this. we are all pushing on the same direction. what school is we are actually seeing the vision come to fruition. -- what is cool is we are the vision come to fruition. everyone is communicating visually. emily: what happens when all of these companies are trying to do the same thing? do some survive and some do not? x everyone thought face book and twitter could not -- >> everyone thought facebook and twitter could not exist on the

same planet. people, theyto talk about how instagram fits a unique space in their life. what they love about it is they can connect with interest accounts, a chefs, an amazing animator, trick media, those kinds of things. on can only find those instagram. is facebook competition? is whatsapp competition? >> we don't think like that. trying toore time think of how to work together than how to work against each other. what useful is how wonderfully these companies work together to ,chieve a greater mission sharing content, sharing networks, making it easier for the consumer to access what they want, which is compelling content. my interviewas

with instagram ceo and cofounder kevin systrom. coming up, a monumental vote change the face of the european union. we will talk about the brexit. ♪

emily: mayors from 10 global cities are working together to regulate sharing company apps like airbnb and uber. our reporter has been following this story from paris. companies in the so-called sharing economy have gotten used to dealing with regulators around the world from france and the u.k., all the way to india. regulatoryad

challenges, pushback from different industries. we are seeing mayors from new york to paris teaming up to work together and come up with a common response to companies like airbnb and hoover. that's going to mean a change for those companies. uber.rbnb and it we that's going to be a change for those companies. they are used to dealing with these cities on a one by one basis. our reporter reporting from paris. staying in europe, this thursday, britain decides whether or not to stay in the european union. fears of a brexit have investors skittish. how are venture capitalist in the tech industry bracing themselves? joseph, thank you for joining us. great to have you back on the

show. what does brexit mean for silicon valley and tech? >> it depends on the state of the company. i think when you think about companies going public, anything that creates a cloud in terms of commerce, trade, immigration, where publicace company investors, any uncertainty and doubt about that causes people to slow down, and i think that's the place where we expect to see potential issues. emily: you don't invest in yo europe. why not? >> the role of a venture capitalist is to be super involved in companies. it's hard to do that from 2500 miles away, let alone 25,000 miles away. investor atre an

greylock, but you have also been involved in a company called gladly. what is a big idea in customer service? >> if you think about the 21st century consumer and the way we communicate with friends, that is not the way we communicate with companies. we are always on every channel, communicating, e-mailing. companies are using technology that was developed 10, 20, 30 years ago that focuses on the idea of cases and tickets. the anachronistic from early 1900s hospitals where they took your case file and attached it to the bed. that is not the way we expect companies to talk to us. we are trying to reinvent the idea around people at the center, not cases or tickets. so that when you are having a conversation with a company, -- aus ingle conversation

single conversation. it can enable the agents to have , knowledgeable conversation. i see you are calling about this reservation or this purchase. it's reinventing the conversation. atly: we see this happening kleiner's and general catalyst. what is the process like? history atthat greylock where we are either incubating -- emily: workday. >> workday is a great example. palo alto networks was also incubated with the office. usually, when you see a massive market opportunity and there is a team of people we know well, we will act as cofounders and entrepreneurs alongside them. it has turned out quite well,

historically. emily: lastly, microsoft bought linkedin for $26 million. that's a huge exit. is that a win for linkedin or for greylock? >> we are no longer investors, full disclosure. from my perspective, it's a great combination. microsoft's role in work and productivity and linkedin's role as a network of professionals, i think we will see good things come out of it. emily: all right. i will look forward to having you change my customer service experience. thank you for stopping by. coming up, he is a rock star of the product world, now turning his attention to a software that is rocking is miscommunication. business communication. ♪

emily: two stocks we are

watching after reporting earnings. adobe seeing record revenue and year of 20%. despite this, shares are taking a hit after hours, down 4% among signals that momentum for cloud-based products is slowing down. , the company is reaffirming full-year guidance. another story we are watching, businesse communication platform that has rocketed into our offices continues to grow. 3 million daily active weekday users. it is looking to build a base of corporate customers, and now the platform itself is expanding with message buttons that will let customers go beyond communication to submitting expenses, booking travel, without having to leave slack for another app.

joining me now is vice president of slack, april underwood. does this vision go? what is next? april: it's a great question. when we think about lack at its most basic level, -- slack at its most basic level, it allows people to communicate in a new way. it's the best place to use all the apps you already use at work together. today, message buttons really allow the messages to come from all the applications used, google drive, greenhouse, all the applications you use to get your job done every day. it's actually allowing every person who uses slack to get more done inside slack. emily: what are your other priorities? april: the platform is really important to us. the world has really changed. there have never been more

applications you can use at work than there are right now. ans rarely easy to build application and get it into the hands of customers. that platform, and allowing all the apps to work well together, is really important to us. emily: everyone is talking about ai right now. how else could it be integrated in the plat arm? important,hink ai is and that's one of the reasons we are making our own investment into it. customers, for example, that are making use of slack to automate some of their workflows. as worthless get smarter and smarter, examples like the just get smarter and smarter, examples like logistics, ai can make it more automated. that gives people time to do the hard, creative work they enjoy

doing. ?mily: what about bots april: people are talking about bots a lot. to me, bots are a way to describe the ability to interact with software the way you and i can interact. you and i can text each other. can i text software and get things done? when people talk about bots, they mean a lot of things. that in slack, one of our customers is in the e-commerce space. the software sits alongside the humans and allows the team to get things done more efficiently. a human would do but faster and more accurately. that's something we humans fail at doing. emily: you worked at twitter in the early days. we have seen companies like we

rework andnefits -- benefits pulling back because they went too fast. what are you doing to be careful about how fast you grow? ultimately, our mission is to make people's working lives more pleasant and productive. we are all unified around that mission, and that goes a long way toward helping us bring in new employees and putting them straight to work toward the goals that matter to us. but we are also focused on diversity. we are trying to build a different kind of culture where people can do their best work. we work hard at it every day. i think if we stick with that, we can grow to new heights. emily: i was your reaction to microsoft buying linkedin? i was like many people, surprised, but it makes sense. lincoln built a business that

would be valuable to an acquirer businessin built a that would be valuable to an acquirer in many ways. mean anything to you? april: i don't think it does. emily: some other startups were snickering. see that much of a connection between what they do and what we do. emily: april underwood, thank you for stopping by. great to have you on the show. now to find out who is having the worst day ever. today, the prize goes to the clinton foundation. it is said to be among the organizations in the latest suspected reach by russian hackers. presidentialon's campaign is reaffirming concerns about her digital security. the fbi continues to investigate her use of a personal e-mail server while secretary of state. that does it for this edition of

"bloomberg west." tomorrow, we kick off our coverage of the entrepreneur summit with steve case. .hat and much, much more that's all for today from san francisco. ♪

yorkom our studios in new this is charlie rose. joe biden is the 47th vice president of the united states. he has dedicated his life to public service. he was a united states senator from delaware for 36 years. he has a deep knowledge of as the policy and served chairman of the senate foreign relations committee twice. last fall he decided not to run for president in 2016. that decision followed intense deliberations with his advisors and his family. he has withstood tragedy in his life. he lostis