r campaign of 2008 started the birther. i finished it, i finished it, ou know what i mean. president barack obama was born in the united states, period. mark: secretary hillary clinton sent out a tweet calling the news conference a disgrace, he owes an apology. libertarian party nominee gary johnson and the green parity's jill stein did not make the required polling threshold necessary to qualify for the first debate. that debate is scheduled for september 26 at hofstra university here in new york. the number of zika cases keeps climbing in puerto rico. health officials say more than 2,000 cases were reported in

the past week. the total so far, nearly 20,000 including 1,700 pregnant women. bloomberg news 24 hours a day powered by more than 2,600 journalists and analysts in over 120 countries. bloomberg west" is next. emily: i'm emily chang. this is "bloomberg west." coming up, it's time for the annual pilgrimage to the apple store. the iphone 7 hits the shelves. we'll look at demand and whether online orders are cushing the sidewalk frenzy. plus pandora launches a $5 a month ad free service. i'll ask tim whether we'll see the on demand service go head-to-head with spotify. edward snowden is back in the spotlight with a movie

premiere. we'll consider whether he goes down in history as a traitor, a criminal or a hero. first to the lead, apple fans making their annual pilgrimage to pick up the latest iphones with lines of customers wrapping street corners in cities around the world. apple says the retail stores sold out quickly meaning that only customers who preordered their phones are guaranteed to get them this week. it caps off a remarkable week for apple shares closing up to 11% for the week. david kirkpatrick, my guest host for the hour is with me in new york. you wandered past the apple store in grand central and it was quite a scene? david: it was crowded and quite excited it seemed to me. so my impression from talking to people there and from just checking out the landscape is there is a lot of excitement about this phone which frankly surprised me. emily: at the same time samsung, you know, exploding phone stories get crazier by

the day. i mean, there have been reports of cars on fire, kids getting burned, i mean this is really the timing is insane. donny: it's a gift from the gods from apple, let's face it. and it's terrible for samsung which really does have great prospects and i think the galaxy 7 was a good product also except that it blew up, not a good problem to have. so i think what we really are seeing with something as big in the news as prominent in all of our business discussions as apple, everybody wants to kind of call the turn and a lot of people have been really looking for a chance to say apple is finished. well, it's not finished. i think the iphone continues to stay alive. we still hope for apple to do something really new along the way in the near future, but i still think they have a lot of upside and their stock performance in the last few days would suggest that investors agree. emily: i wonder whether this might be another inflection

point by the way we see people switching from samsung to apple or other carriers possible as well where people say, you know, i'm tired of this, i'm switching to an iphone. david: if this phone is as good as it seems in certain bank things, not tons of amazing features, but better battery life and way faster, people will start telling their friends, man, this thing is better, that could do exactly what you just said and lead people who were -- hadn't upgraded or using a samsung or android phone to get an iphone 7. i think that's possible. i think it's going to be a big success. emily: david, stay with me. i want to turn to twitter. e platform kicked off 10 games, shares rose more than 4% in friday trading. is this the beginning of a turning point for the company given the social media, giving the social media company new

meeting. our bloomberg news reporter is with us as well. i tuned in. the stream was clear, everything seemed to be working smoothly. it wasn't perfect, but the reviews were good. sarah: a rare moment for twitter, an achievement, a celebration for actual product innovation which is what they have been hammered on by investors for the last couple years, really ever since their 2013 i.p. o. emily: let's look at the pros and cons, it's free. you don't have to put in any cable credentials or anything like that, the quality was good, there was a delay which some people were complaining about. the tweets that you saw were basically, all the tweets on the platform, everybody you don't know. so some people thought it was too random, they wish there were some sort of filter. no negative tweets in there. twitter did a good job of filter those out. david, what is your take? david: for me, the big thing is

symbolic. twitter is a service that is way too hard for most people to understand. it's not your grandmother's service or your mother's service in most cases. it might not be my friend's service being a baby boomer. something that everybody understands that happens on twitter is a huge win. i think putting an nfl game, there is nothing more mainstream than that. it's not hard to explain and just about everything else about twitter over the course of its entire history has actually been hard to explain. so i think that is a big win. emily: is there real value to advertisers, though? there has been some question about that. how do they monetize this? sarah: twitter is taking a revenue share on the ads sold through the platform. more important through the long term is this proves to advertisers that twitter can be a destination for live video. as twitter does these deals with streaming services trying to get other games like nba games, they don't have nba

games yet, but they have content, as they get more content, they need to convince advertisers that they're just like youtube or hulu, they can sell video ads, too. emily: can they afford it? they paid $10 million for the rights to these games. if it's a success, they have to pay a lot more next year. they're striking deals with other parties as well including bloomberg. if this ends up being the direction for the future, can they pay up? sarah: well, affording something, it's a strange term in tech because, of course, twitter is unprofitable and they will continue to be unprofitable for the foreseeable future. is it important to the future of their business? absolutely. this is what their strategy has been for the last year. this is how they're going to turn around the product. as david said, make it more palatable to a more general audience. yes, they have to take a risk because they have been so risk averse. emily: david, if indeed this

continues to be successful, do you see this as something that is enough? will this change the way the world fundamentally thinks about twitter and give it a brighter future? david: certainly not just putting the nfl will not be enough. i think that if twitter continues down the path which i think is a big part of jack dorsey's vision of being a place that is almost the guide to all media and if it does it elegantly and in a way that people can understand, i think it has a real future and a bigger future than maybe i would have said it had a year ago. so i say there is promising signs for a company that has been often felt like it was sort of flailing around for an identity. its identity could be the place where you really understand what to look at, what to listen to, what to watch, what to read and of course it will always remain the place where public figures broadcast their views and that's a huge asset that it has, even though that in itself is not a big money maker for

it. emily: people said i would love to watch the oscars this way, the presidential debates are coming out. tell us what to expect, what have they nailed down and what could come? sarah: they have a lot of sports deals going on. they have baseball, hockey, down the road they're trying to get into entertainment, they wide streamed the democratic and republican debate ahead of the election this year. what we might see in the future is just a huge expansion of that. they released apple tv apps, xbox, amazon fire tv. they're trying to make this a new window through which to access twitter, the product, as opposed to having to set up a account, figure out who to follow, that really wonky experience that david mentioned. what's hard, though, is twitter has this history as we reported on of just tension, executive departures especially westbound

the product organization, they have gone through a -- within the product organization, they have gone through a lot of heads of product, lots of turmoil, see if they can stick with this one. emily: sarah, our bloomberg news reporter who covers twitter, david, you are sticking with me. intel shares hit a 15-year high on friday after the company raised its q 3 sales forecast saying a recovery in the personal computer market was behind the move. this is quite a reversal from earlier this year when intel said it would cut 12,000 jobs or 11% of the workforce, but friday shared closed up 3%. pandora presses play with a new ad-free service. taking on spotify is still to come. we'll speak with tim we understandergren. and a heated debate, will edward snowden's leak go down

as whistle blowing or treason? we'll discuss. this is bloomberg ♪

emily: pandora has unveiled one of two new products we were waiting for, pandora plus is an ad-free service costing $5 a month and a few added bells and whistles like the ability to replay songs, skip more songs and listen online. it n demand service to make able to compete. earlier i sat down with par

dora's c.e.o. tim westergren and whether the subscribers are new or existing listeners. tim: for sure in the near term, an existing audience that is right for this. we know what people want on pandora. they have been telling us how they use the product and directly. as we built the product and prioritized features, they were based on the demand of the existing audience, 100 million people over three months. a big batch will convert and flow them up the curve little by little. emily: why launch this mid tier service, why not go straight to the on demand service? tim: if you look at the mass consumer, you need to address the entire market, you need more than two options, the free or the $10 a month. you need a mid tier that will meet the average consumer where they are. if you look at subscription services historically, they always had multiple price points. you perfect that market by

segmenting. so i think this is a big step in that direction. it's the first and only mid tier and i think only pandora can do this because of our existing product and existing ad business. we're perfectly set up to address that entire demand curve. emily: you struck a deal with warner moving towards your on demand service which is coming. what else do you need to do to get that out there? tim: build the final product now, roll it out as fast as we can. i do need to acknowledge this moment for us, striking all of these deals, not just with the labels but publishers, too, that's a real watershed. i think the industry has said to us, we believe in this idea you have, this product you have and the way you want to address the market. we're going to give you the ability to build these features and these multiple tears because i think, one, they see in pandora, a company that is genuinely interested in promoting the industry and promoting artists. they also see as a company that can incrementally build new markets. so address this mid tier, this

mass consumer and so i think they partner -- we struck these deals in record time. emily: when will we see this before the end of the year? tim: yes. emily: not a lot of time to build a new product. tim: i have been looking at it, it's pretty sweet. emily: how is this different from apple music and spotify? tim: it's 30 million songs in a search box and good luck, that is not what people want. people want interactivity, they want engagement and lean in and they want it to be easy to use. it shows up in churn rates and lack of engagement. what pandora will do is bring the simplicity, the intuitiveness in the existing product including pandora plus and bring it to on demand. when you see this product, you'll see, oh, that's how it should be done, the same way we invented personalized radio, the same for the interactive piece. emily: do you see a need for a free streaming service in the future or will all users have

to move to pay? in spotifies new conversation as we understand it, they're really focusing on moving their free users to paid users. tim: that's a great question. i think you need free. to retain and engage a large segment of the population, you need a free offering, the question is what is the business of the free offering. so people love free, but how do you monitor advertise it well enough that it's not cannibalizing or undervaluing the value of make. music has value, you have to preserve that. i think pandora has the unique ability to do that. we have devastated or ability to monetize free radio listening in a way nobody else has. our business model, we have a profitable foundation which is radio. that's where we engage listeners 24 hours plus a month and learn about their taste and learn about how they use the product. that becomes a launching pad for us to send people into the hierarchical products. in the meantime, they're profitable, hundreds of millions of dollars for the industry, that's the formula for success, not just for us,

but for the industry. emily: spotify has been doing some interesting things when it comes to competition. musicians who debut exclusive content elsewhere like on apple music, they're making those musicians' songs harder to find on spotify. what do you think as a competitive tactic or is that common or more common? tim: in the long run, every service is going to have to think just about the consumer. you have to super serve your consumer. i think that means that these exclusivities and the other methods are not going to be long for the world. these kind of things will go away over time. there is experimenting going on, can i do this and get leverage for that? it's not good for consumers. if you don't do good things for the consumers, you don't win. emily: when is the end game there? tim: i was a musician for a long time. i played in clubs across the country to very small audiences

for the most part of the one of the great things, the great problems that need solving, how do you bring butts in seats and bring audiences to see bands? we have been building that for a couple of years. artists actually log in and essentially address their audiences through the service including by way of sending published audio messages targeted geographically to bring people to shows. we have seen this extraordinary phenomenon where as people get these targeted recommendations to shows in their neighbors, they're responding at incredible engagement rates and we're seeing shows sell out methodically. that is, i think, the great promise of a successful service like this, not just that you please consumers and build a great business, but it becomes as sort of mother of all platforms for musicians. emily: pandora c.o.e. tim westergren there. still with me, david kirkpatrick. david, what are your thoughts

on what tim had to say there? it's interesting to see with spotify pushing towards this paid service, but he believes that you need to have a free service and that some users just won't ever change. david: he may be right about that. clearly there are three very strong players in this business with apple and spotify competing with pandora. pandora's brand is great. i think he was being really very unfair, though, when he said the other services are just a search box and then you're on your own with 30 million songs. spotify has done enormous work to make discovery better in spotify as a devoted notify user myself, i can say, nothing invested in it, just basically i love their product. it really has gotten easier. spotify has 40 million paying users. that's a lot. apple music nows that 15 million. that's pretty good. people thought apple would kill spotify right away. that has definitely not happened. spotify is holding its own. apple is coming on strong with

unlimited resources. the tearing makes sense. to me is it a really big deal? ok, somewhat of a big deal. i think the real question will be how do they manage and compete when they have this direct head-to-head competitor for spossify and apple music. emily: we have seen other music , and do try and fail you see this industry in the future being not a winner takes all industry where a few bigger players continue to go head-to-head? david: if all of the services essentially have all of the music, i don't see why it would be a winner take all industry. it's going to be which interface do you prefer, do you like the brand pandora, spotify or apple. of them will have fans so to speak. there aren't the same network effects. on the other hand, as in many other industries i was going to

say. on the other hand, if maybe the next evolution was to make this a more effectively social thing, spotify had integrations with facebook and i don't think it's really paid off the way facebook's algorithm works for them. maybe inside these services, they could build some kind of social function that really bathe them different, but pandora could do that, but no one has done that effectively thus far. emily: that's interesting, david, i believe many have tried. david kirkpatrick, you are sticking with me. coming up monday on bloomberg, we'll check in with go pro c.e.o., set to launch its consumer drone with some analysts calling it a pivotal moment for the company. we'll hear from him 11:00 a.m. new york time. and we'll bring you the best of our interviews from the week including our exclusive with sales force c.e.o. this is bloomberg.

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emily: the advanced imaging sensing start-up has broken its ties with tesla over safety concerns with the electric carmakers autopilot feature. it comes after tesla accused mobile eye to block efforts to develop vision capabilities for its cars. it's under investigation after a fatal crash in florida. regulators have called on tesla to require that drivers keep their hands on the steering wheel at all times. the latest mobile app report says half of all u.s. smartphone users download zero apps per month. the remaining 50% download just about 3 1/2 apps per month. really it's just 13% of all users accounting for half of all of the download activity. these stats sound challenging but they actually represent an improvement. two years ago, as many as 2/3 of smartphone users didn't download any apps in a typical month. in the meantime, mode media, a

start-up that five years ago was planning an i.p.o. is sewed to be shutting down, this according to people familiar with the matter. it was ranked bycom score as the 10th largest digital publisher in the u.s. and raised more than $150 million since it was founded in 2004. still to come, a new report from congress coincides with edward snowden's hollywood debut. we'll discuss the n.s.a. whistleblower's impact on tech's most important debates, privacy versus security. that is next. if you like bloomberg news, check us out on the radio on the bloomberg radio app on bloomberg.com in the u.s. on sirius/x.m. this is bloomberg. ♪

mark: i'm mark crumpton, you're watching "bloomberg west." a check of your first word news. hillary clinton says donald trump finally admitting that president obama is an american citizen isn't enough. hillary clinton: barack obama

was born in america, plain and simple and donald trump owes him and the american people an apology. mark: but trump said clinton's 2008 campaign for the suspect si started the birther controversy and in his words, i finished it. first lady michelle obama made her first campaign appearance for hillary clinton today in virginia. she spoke at a rally at george mason university. mrs. obama said it is "excruciatingly clear that clinton is the only canada prepared for the presidency." this weekend the clinton campaign rolls out bernie sanders and elisabeth warren at events in ohio. european commission president insists that following this summer's brexit vote, there will be no modification on the issue of travel between the u.k. and the rest of europe. the comments came at the onclusion of an e.u. summit in slovakia. >> between presidents, this is

about people in europe. it's about the rights of ordinary people, the workers of those living in europe so i can't see any possibility of compromising. mark: e.u. council president confirmed that leaders were prepared to begin proceedings for the u.k. to leave the bloc in his words even tomorrow but were waiting for britain to make its move. law enforcement officials have evacuated more than 2,000 refugees camping out on the streets of northern paris. they were either taken in by social services or bussed to temporary living facilities. france has been criticized for its handling of the migrant crisis. japan and china maybe on a collision course in the south china sea. the country will step up its activity in the disputed region. those comments came less than two weeks after cheans leader urged japan to exercise caution in the contested waters.

relief teams working alongside north crean soldiers rushed to clear roads, build shelters and provide food to thousands of people near the border. it was devastated by heavy flooding when a typhoon pounded villages last week. the floods killed more than 100 people. for the first time u.s. troops are operating alongside turkish government forces fighting islamic state in syria. that's according to the pentagon which also says american special forces are providing the same training and advice given to other groups fighting in northern syria. global news 24 hours a day powered by more than 2,600 journalists and analysts in more than 120 countries, i'm mark crumpton. this is bloomberg. emily: this is "bloomberg west." i'm emily chang. one of the most controversial figures in recent history is back in the spotlight this week.

edward snowden, the n.s.a. whistle blower who revealed the global extent of u.s. surveillance capabilities. thursday a house intelligence committee released a summary of its two-year examination of the 2013 data leak and decided that snowden is not a whistleblower. a fictionalized and sympathetic oliver stone movie made in coordination with the exn.s.a. contractor himself opens to the public friday, today, and coincides with a fresh effort by human rights groups to get snowden an official pardon. still exiled in russia, snowden tweeted, congress spent two years writing a report to discourt you from going to see this film. we want to discuss the actions and how we think about cyber privacy and how it impacted the relationship with the u.s. government of the joining me in the studio, a privacy advocate whose nonprofit gives political dissidents and human rights activists access to encrypted messaging in and a former n.s.

vulnerability analyst now c.t.o. of binary defense systems. i want to start with you, niko. the reviews have been a little mixed. i wonder, how do you think snowden should go down in history, a traitor, a criminal, a hero? niko: that's hard to make a judgment call on that without all of the facts. i don't know if we have all of the facts. i think what i can say definitively is are we better off as a society for what snowden did? definitely. it torpedoes privacy in the spotlight in a way it needed to be there and made us look at our policies and redo them again. i think that's really important. emily: as someone who worked for the n.s.a., what do you have to say to that? jared: a lot of people want to demonize certain government agencies or the police or the f.b.i. i grew up as a poor kid in the midwest, a normal kid that worked there. it's just people that worked there. as far as what he did, he definitely, what he did was

illegal and that's kind of one of those things. i do agree, though, that the fallout of what he did it helped spark this security versus privacy. we don't get both perfectly, right. we're either more secure or we're more private. i do love the fact that some reforms came out of the n.s.a. based on this. it's just how he did it, he took so much and cost the taxpayers so much and exposed way more than what was necessary. that's really my beef with it. emily: is there another way that snowden could have made his point? >> i think this is what we should really be focusing on. he really tried to use these channels and to raise this to a level before he did what he had to do. i think this is where the u.s. system is broken is that we need more people like edward snowden, but we need a way for them to disagree with our government and stand up within the government and say this is wrong. the government, a lot of great

people working there, we're all doing good things and we need another outlet like this for people to disagree. emily: snowden obviously encourages other people and major companies to stand up to what they feel is government overreach. would we have seen such opposition from apple and microsoft to government policies if it hadn't been for edward snowden? jared: yeah, there are some good things that came from it like i said. this debate, i could tell you personal stories of how i have seen this play out in my own life, whether the police has more or less people affects people in a personal way. i'm glad that came to light. i'm glad that the reforms that came to be. trying to make him a hero and a hollywood movie, basically it turns out i think from the facts, if you look at them carefully, he was a disgruntled employee, i don't know what he thought he was going to do initially with all that boat load of data. i think there were better ways. i think there were probably

legitimate channels he could have followed to get similar results. would it have been as effective in the long run, we don't know. emily: nico, you're a privacy advocate, do you think we're more or less safe because of what he did? nico: i think we're more safe. i'm not in the government. i don't get to see the bad cases of how they endangered us. overall, by society raising the bar of understanding of what's going on, it's definitely helped us. emily: jared, i believe you probably have a different view on this. do you think we're more or less safe because of what snowden released? jared: actually, what is interesting, it's not a matter of safe. when you talk about privacy versus security. use -- i am all about privacy. all kinds of conferences for 16 years so i'm very well aware of what our community feels about privacy and how we're very much for it. i am too, actually.

emily: most regular people don't even know about these apps. jared: yeah, and that's part of the, i guess part of the good thing of what came from this. i do think there is more awareness that we're having this conversation right now that we probably wouldn't have had otherwise. definitely some good fallout. you can't take and do what he did legally, it was against everything he swore to do. i'm not sure that he went out as a noble whistleblower. i think that kind of has what it's become. i think really it was just more of a disgruntled employee that did what he could. some good cape of it. i'm happy about that. emily: where should the line be drawn between security and privacy? nico: i don't like to put them on different sides. they're on the same side and think about it as such. that is one of the mistakes we're making. you need security and privacy working together in order to be repetitive. emily: nico, thank you for thank you jared,

for joining us as well. oming up, fed approved heart monitoring wearable, this is bloomberg. ♪

emily: new data shining a spotlight on the challenges at google cyber, a project to give high speed internet to u.s. households. data gathered shows google fiber spent a billion on infrastructure last year. that is less than competitors, fiber hasn't been able to grow its subscriber base. it has less than 1,000 customers in austin and san francisco and 54,000 households in total according to neilson.

remember, this is the most expensive of all of the moon shots. a recent report from the tech cited information says the founders have told the unit to bring its overhead down. turning now to medical technology, the first f.d.a. approved to combine electrocardio gram results with blood pressure readings in a single display, integrating the two technologieses into a mobile app. vid kirkpatrick is here with me and vick, c.e.o. of alive core and long-time former google executive. vick, this is obviously very difficult to do, no one else has managed to do it with regulatory approval, explain how it works. >> the device is small, like a stick of gum. you hold it and it will do an electroarrestedo gram of your

heart. most consumers don't know how to read it. our software will read it and give you an interpretation telling us if you're in normal sign us rhythm or not. emily: what kind of picture does it give of heart health? >> heart disease is responsible for more deaths than all forms of cancer combined. and arrhythmias of the heart often go undiagnosed. sometimes the first diagnosis you get is that you have a stroke. and so people feel palpitations and their only option is to go see a cardiologist, take off their shirt, spend 20, 30 minutes doing an e.k.g. this makes it he is to check. for many people, the first diagnosis of afib occurred because of this device. emily: it works with the iphone, f.d.a. approved and the apple watch, you're working on getting that f.d.a. approved. >> that's correct. emily: we have seen companies have issues with regulators and how do you sort of balance

moving forward as a company and waiting for the f.d.a. to say yes or no? >> we don't think there is a balance. we think there is no choice. the regulatory agencies like the f.d.a. that are put in their place to protect the consumers, can you imagine, when we tell someone their heart rhythm is normal, if it's not normal, we could put people's lives at risk. we really view the f.d.a. as a partner. we go through their process, go through the clinical data and that stamp of approval from the f.d.a. that we have been cleared, we view that as a badge of honor. it does take sometime, you're right. but we think that investment is well worth it. emily: david, what are your thoughts? david: i think this is a great product. i think some things -- this is a sign of where we're headed with health care in a world where digital technology gets cheaper and cheaper and where really creative entrepreneurs like vick are bringing together capabilities with really good interfaces and his background

gives him great tools for doing that. i'm really excited by it. i think there may be hypocon degree actions who are somewhat exacerbated or made a little bit more free to self-diagnose when they don't need to with products like this and many lives will be saved as well. it's also pointing in a direction that is incredibly promising over time. i know it is. so many companies are thinking along these lines. emily: $99 for this, but the british national health service is covering it for some patients. i'm curious, though, because this is life and death, right. do you ever worry about patients relying on this too much? >> no, we don't worry about patients relying on it too much. when it tells you you have an issue, you have possible ifib, we strongly encourage the patient to immediately contact their doctor. we make it very easy in the app for you to email that rhythm

strip to your physician and we hear stories time and time again of physicians who come to us and say, i got an email just an hour ago from a doctor who said he was able to diagnose a patient who sent in his rhythm strip. we thinks it makes it very convenient and as david says, we believe this is where the future is going. i have to also point out that this is not only the first app that is f.d.a. cleared to do an e.k.g., but partnering with the number one recommended blood pressure monitor in the united states, now you can record hypertension and e.k.g. in a single app. the partnership has been fantastic. they have been wonderful to work with. now to have one app where you can look at hypertension and e.k.g.s is really great. emily: there has been some skepticism around the apple watch, how big it's going to be. how big do you think it's going to be and particularly for health and health monitors? >> i'm very optimistic. i think apple tends to get things right, particularly over

time. they got a lot of consumers to adopt their technology. i have an apple watch myself and using it with our product which is not for sale and not f.d.a. cleared at the moment, but we're excited by when that is approved, it really makes for being able to take your e.k.g. in a very discreet fashion. i don't have to carry anything else. it's on my wrist all the time. we think it's going to be very, very popular. judging by the people who have gone through our website and registered to be made aware of when it's available, the interest has surprised us. thousands upon thousands of people who have registered. emily: vick, it's fascinating what you're working on. thank you so much for coming for that update. great to have you. david kirkpatrick, our bloomberg contributing editor, david, you are sticking with me. coming up, a firm has raised a $7 billion fund, we'll hear why it's putting that money toward a buying spree next. this is bloomberg.

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emily: the private equity firm raised $7.6 billion for its latest fund with plans to per suring other software and tech buyouts. they include solar winds. i spoke with the managing partner orlando and asked him why software deals are so compelling to p.e. >> we've had the pleasure over the last 15 years of buying 150 software companies with a value greater than $30 billion. what has happened over the last several years is the swift to software service is creating acties investors and the environment of companies going private. emily: why are activist investors more interested? >> over the last five years, they have had a great run, almost anything they buy in software goes up because they get the company sold. there is more activism and more capital into the category and we're taking advantage of that.

emily: software is a competitive space for private equity. they are stepping up their deal-making in software, too. how do you continue to differentiate yourself? >> the main differentiator that we have is for 15 years we have been in this space and we work with the existing management teams of the companies that we buy. we're transient owners. we have it for four or five years, we have a track record of helping the existing management teams transition the companies to a new way of innovation and growth, whether it's an application software or other softwares. the when we present ourselves to a accompany, we have known them mutually for a number of years and they trust us, they trust our track record and they know that we're in the category for a long period of time. emily: when you announced that you suggested that dissatisfaction with the public equity market might push more growing software businesses into the arms of private equity

rather than towards i.p. o. do you see this has a permanent shift or a temporary opportunity? >> i see that has a permanent shift because as i was mentioning before, the big trend that is now irreversible is the move towards cloud computing and software service. this has been spoken about for the last seven or eight years, but now over the last two to three years, that's irreversible. what is happening with that is it's putting a lot of pressure on the established software vendors that have been in business for 15 to 20 years to change their business models, to change the way they produce technology, the way they distribute technology and the way they prize their products to their customers. as a result of that, these companies are stumbling over one quarter, second quarter or third quarter, it's a very difficult transition to do particularly in light of the public markets that demand a certain amount of growth and

quarter over quarter performance. these managers in our opinion are making the right long term strategic decisions but they're being penlized for that in the markets. the opportunity that the industry presents is get out of the public light, spend four to five years being private, invest in the long term of the business and we can launch them into the new wave of innovation. emily: we have seen a lot of big tech n.n.a., microsoft buying linked in, for example, how do you see i.p.o.s going private and m.n.a., what do you see more of and less of in the next three to five years? >> one is we see a lot more privates. in the last 18 months ago, our firm has looked at 108 billion worth of private transactions, very few which have been done. now we see public company c.e.o.s, for the first time in software really being private, being as popular or going private, being a win for them instead of going public being a

win for them. so it's also popular among their piers in the industry. in terms of i.p.o.s, they're struggling now. companies are not finding value going public and to hit certain quarterly targets. for employee morale, it's difficult. if your stock price drops 30% to 40% after an i.p.o., employees are very potential in this environment, it's hard to motivate and retain them as well. emily: orlando bravo there, managing partner at tomo bravo. at this day in tech industry, 19 years ago today that steve jobs was named interim c.e.o. of apple. he returned to what's become the world's most valuable company after being booted out more than a decade earlier by then c.e.o. john scully. jobs went on to form a computer company he would later sell to apple for $400 million which led to his ultimate comeback. still with us for a last word, david kirkpatrick. david, quite fitting that this day in tech coincides with the

new iphone 7 hitting the shelves. no one knew it would become the product it would become, but steve is the one who really had ith in it and it's sort of incredible to think of that legacy. david: coming up on five years since he died and just now i checked, 19 years ago, apple's stock was at the equivalent of about 80 cents. it's now at 115. that's a 14,000% increase. so something was really done right at that company by steve jobs. emily: do you see the rally continuing into next week? you know there are so many as we talked about earlier in the show, apple haters out there and a lot of positivity around companies like amazon instead. what do you see? david: amazon is an astonishing story. i wouldn't want to compare the two head-to-head. right now i think it will depend on what the reports are coming out of the stores over the weekend, even anecdote reports about iphone 7 crowds,

et cetera, et cetera. short-term stork movements are not my forte. do i think apple has a really strong future? like i said earlier in the show, i absolutely do. one of my closest friends basically has all his retirement money in apple stock. you should diversify a little bit. you know, he has held on to it and he is pretty happy with that. he plans to hold it. i don't really argue with that. emily: david kirkpatrick, our guest host, our bloomberg contributing editor, david, as always thanks for joining us, happy friday. that's it for this edition of "bloomberg west." on monday we will check in with go pro c.e.o. as he gets set to launch the long awaited drone. that is all for now from san francisco. have a great weekend, everyone. this is bloomberg. ♪

announcer: from our studios in new york city, this is charlie rose. charlie: maureen dowd is here, she is a columnist for the "new york times." she joined the paper in 1983 as a metro reporter. her career covering politics spans nine presidential campaigns. she describes this election as the most epic battle of the sexes. she describes it in a new book, the book is called the year of voting dangerously, the derainingment of american politics. jim, co-founder writes dowd surely captures the theater of politics better than anyone else. i am pleased to have her back at this table.