have been ordered to evacuate. the storm killed at least 11 people in the caribbean. is praising the climate change accord. >> if we follow through on the commitments that this paris agreement embodies, history may well judge it as a turning point for a planet. >> the accord takes effect in a month. russia has suspended an an agreement. russia calls the move a counter to u.s. sanctions. canceled anoscow agreement with washington on the disposal of weapons grade plutonium. the syrian government will reportedly reduce the number of

airstrikes inside aleppo. it could allow civilians to escape to safer zones. in the meantime, the u.s. will relay satellite images from rebel-help parts of aleppo showing damage believed to because by airstrikes. emily: i am emily chang and this is the newly named "bloomberg technology." tech is global and so are we. we're bringing you the stories that matter most from san francisco to shenzhen, tel aviv, and more. we would like to and but you to bloomberg technology and say farewell to "bloomberg west." it is been one year since jack dorsey returned to the helm at

twitter. he is one of bloomberg's biggest shareholders. chris sacca tells us what he thinks of the right hell are's prospect -- ride hailer's prospects in and i feel. -- in an ipo. first to our lead. it is one year since jack dorsey came back to twitter as ceo. twitter shares are nearly 12% below where they were a year ago and investors fear check mercy may not deliver on the turnaround he needs. disney and google have been cited as entrusted buyers. -- interested buyers. are -- in a strong position right now.

as a board member, we have to consider the right options. >> we have always had a lot of speculation about what twitter could become, and where twitter would go. you have a really strong plan ahead of us and it is something we are focused on executing. successful,an be a independent company. teamink the world of the over there. think jack thinks brilliantly about product and direction. the rest of the team are tremendous. i do think that is the only outcome -- i do not think that is the only possible outcome. >> i hope for an acquisition. there are a lot of great teams where they fit naturally. it is a natural complement to four or five companies. emily: the many faces and voices of twitter.

cofounders, chris sacca long-time investor. and james check chackmak. sarah, you have new reporting that jack dorsey may be losing control of the company. that there are dissenting voices about what to do, whether to sell or not to sell. there is mentioned, disagreement between cofounders jack dorsey and williams about whether a sale is the best thing for twitter. jack wishes he had more time to prove out the live video strategy. that strategy -- it is more of a notoof power to anthony

who has put the company on the life streaming path. he made the nfl deal and these other streaming deals and that has been a strategy to follow. you've heard from a number of sources. also leading the live strategy there. expecting bids to roll in over the next couple of weeks. you think that disney is the best bet. >> disney will be saying how do i said -- distribute my content when people no longer subscribe to cable bundles. twitter can enable a platform where they can remain at an arms length and remain independent to do deals with other content providers. this news on salesforce i am still scratching my head on.

argument about the marketing cloud. about leveraging management software. but at the end of the day this is more about -- i get that this is data. this is the way i think about twitter, you are acquiring data and distribution. that is why i do not think the net -- the news on salesforce jives. ki emily: i know that you think google is a less likely candidate, because of antitrust chris, but the investor sacca seems to think google is one of the best fits. >> academically, on paper, google makes an excellent choice. working already together in leveraging tweets and putting them into search results.

there is a considerable amount of high trust ledges -- antitrust legislation. it on 300 million active social members on to the google platform and how it looks against facebook, we think that could raise issues where it acquirer more feasible. emily: chris sacca told me he has sold a number of his shares but he has been a cheerleader for the company. he had this to say. >> it is an incredible story of underachievement. of potential that was never realized. i would be really excited for someone with product vision to go in and take chances. we know it has the most valuable data, the most valuable body of information in the world.

they have failed repeatedly to toface that in an easy digest way. >> it is funny to call them an underachiever. they punch above their weight in terms of their social presence, their influence on the global dialogue. their smaller than the tech companies they are always compared to in revenue and market cap, yet they really are seen on par with facebook. i also think it is very interesting to look at the fact that you have companies as diverse as google, salesforce, and disney with legitimate reasons to buy it. it shows what a chameleon-like company twitter is. the big problem is, it is worth too much money. the shareholders are the biggest believers and the fact that they are not selling in a $17 billion

market cap is crazy. the company does not seem that valuable. if someone will pay that money, they are taking a huge gamble. i was talking to james earlier. that disney be made could justify the expense more than almost anybody. it is an interesting argument. emily: speaking with chris socket yesterday, you heard him say -- chris sacca yesterday, you heard him say they cannot get more market cap then is already priced in. but here are some of the things jack dorsey has done right. he is responding to e-mails faster than anyone would expect anyone to respond. >> he has been able to define what twitter is more than his andecessors have about live realtime. emily: gives it life or bus --

is it live or bust now? >> that is the point we are at. they're just putting it to the test. many to show progress or this roar for acquisition will get louder and louder. dave fair to jack, when was in the ceo seat, people were saying the same things. it turned out that changing the ceo did not make a difference in user numbers. will selling the company make a difference? i don't know. at the helm of twitter has never been an easy place to be. i know that you will keep us posted every step of the way. the hour.ost for coming up, more of our exclusive interview with chris sacca. why his calling uber's sale in china a win. jeff bezos's blue origin takes a

big step to blast wealthy tourists into space.

emily: chris sacca has been outspoken on a number of topics like twitter and the 2016 residential election -- presidential election. i sat down with the venture capitalist at dream force and asked what he thought about uber selling its china business. >> i think that the china thing ended up being a big win. irrationallyt entrepreneurial. francisco,was san

the second city was new york. it is punishingly difficult, but he wanted to prove he could do it. one of the first 10 cities is hate, paris where they anyone with a disruptive product that might upset the unions. he was two years behind in china and he went into a country where at the government level, they did not want us to be there. offices were raided in hong kong, cars were being seized. it is fascinating he was able to pull off a 20% deal in what will be the monopolist there. it is a good deal considering how far we are behind in a regime that has not let google or facebook operate there. it is difficult to disrupt an incumbent business. about ipoow anything plans. the road is clear because the finances look great.

ride ato sit backa n and wave of success with the market leader in china. emily: what are the ipo prospects if it happens? >> unlimited at that point. they are making transportation as ubiquitous as water. pollbe -- you see uber represents 70% of traffic in the city now. there are some cities where they are doing flat fee pricing. in l.a. you can go literally hollywood to santa monica. there is nothing to contain that company nor travis as a founder. emily: peter: -- emily: do we see right hailing in m&a? what happens to lyft? >> announces that happening to

lyft. they said this is a guy we could lose to. it is probably not the majority likelihood, but it is a real odds. travis does not look at lyft and see that as -- at all. they promised their investors last year they would only lose $600 million in the domestic market. it is a brutal case for them. they get rolled up in an automated fracture. they try to do that and everybody passed. i don't than to is good news for lyft investors. emily: chris sacca there at dream force. i want to bring back my cohost for the hour, david kirkpatrick. interest tohris' say great things about uber. what did he said that resonated. >> some of the things he says make a lot of sense.

they have a brilliant exit from china in a market that had no shot at. the fact that they got what they did from didi is amazing. emily: that is different than saying they are a winner in a winner take all market. if didi is going to be the winner, that is not winner take all, but a couple of winners. >> i don't think it is a winner take all market. irrationally archer for no real but this is not -- irrationally notepreneurial, but this is an easy market. is an amazing company. think about what he is saying with how cheap it is to do these uber pools. think about who is doing that, the cut that -- the drivers who are not making very much money

that the company is dependent on. i think uber doesn't treat their drivers well enough. whenever i get into these cars they always city prefer driving for lyft or other companies but never uber. they're not going to get self driving cars soon enough not to rely on drivers. emily: then there is what customers have to say about these companies. samsung's note 7 crisis could be on the verge of a lot worse. details of the new smoking smartphone next. this is bloomberg. ♪

emily: in this edition of "out of this world," a big step forward for blue origin. it plans to send tourists into space. they completed the most rigorous test of an escape system that would shoot passengers out and away from the rocket an event of

a problem -- in the event of a problem. 45 seconds after blasting off parachutes deployed and slowly descended to earth. blue origin aims to send tourists and to space next year and will sell tickets between $250,000 to $300,000 a pop. one of simpson's smart -- samsung's smartphones some to smoke and forced the evacuation of a plane. this is after they announced an official recall. "the verge" is reporting that the phone was actually one of the replacement phones that samsung just sent out. samsung is staying tightlipped for now saying,

divots are -- david kirkpatrick is here. and in the studio, mark gurman. what do we know and not know? >> we know that the family aboard that southwest plane with the replacement note 7 is saying it is a replacement. they sent "the verge" the black box with a code labeling which is a common replacement device. emily, i thought that we were passed this. i thought we were done talking about these phones. i thought we would move on to a new topic, but it keeps coming up for samsung and it is already getting out of hand. clearly there is a problem here. me that ifesting to thaterge can figure out this is a replacement device, how come samsung cannot say this

is a replacement device? are they embarrassed? do they think they are making it up? how long does it take? emily: they are saying that they legitimately do not know yet. they're are also fielding activist investor issues where a company called elliott --agement is saying samsung should be relisting its core business on nasdaq. this is a huge company. there are a lot of different departments within this company. one wonders if they should be more focused. but ibe they should, don't think that splitting the company into is going to solve the problem. the problem here is that they wrote an amazing story detailing in the rush to beat the iphone 7 they did not put in the amount of testing that they should have in the battery components and

supply chain. they need to refocus the management within the company, they need to change their procedures, and some of the weight should go into these carriers. obviously they are trusting of their carriers, but when people buy an iphone, it's that only apple, if you buy from the verizon store it is the verizon iphone. these carriers have their brands at stake. the carriers need to put more into testing. emily: david, samsung is in a vulnerable position right now and you have investors trying to take advantage of that but how vulnerable would you say this position is? >> i would say very vulnerable. if this proves to be true we have to assume it is not a dirty

trick by apple or elliott management to make samsung's situation look worse. it would be a great thing to pull off if they could and nothing could make the company look worse but here is a company that is very opaque, family-controlled korean company that really does not have what we would consider modern governance. i think the arguments are interesting that they really need to put in place much more temporary controls and government methodologies because they are proving themselves incapable of running the company properly. this into have rushed the replacement -- they seem to have rushed the replacement as much as they rushed to launch in the first place. they seem to be really screwing up and something has to change at that company. emily: i'm sure we will be learning something. david kirkpatrick, you are

sticking with me. at&t's acquisition path is taking a page from another telecommunications giant. a reminder that bloomberg west is now "number technology." check -- is now "bloomberg technology." we are at bloomberg.com/technology. this is bloomberg. ♪

>> i am mark crumpton and you are watching "bloomberg technology." -- the unitedtes

nations security council has selected the person they want to succeed ban ki-moon. >>'s name is antonio -- his name is antonio gutierez. we decided to go for a formal vote tomorrow morning. es is the former prime minister of portugal. the general assembly must approve today's security council vote. $15 billion pledged in aid to afghanistan over the next years. the federal prosecutors officer in brussels says today's stabbings of two police officers were terror-related. last month, there was another knife attack. they were wearing bulletproof vests and suffered only bruises. theresa may's government has

rolled paying contributions to the eu government to allow british companies access to the single market. this altman says there will be no compromise on immigration, lawmaking, and freedom from uris -- european jurisdiction. goldman sachs is pulling $300 million from omega advisors. it is the second time this year they are cutting ties with the famous alum. they informed investors of that decision in a memo today. i am mark crumpton. it is just after 6:30 p.m. in new york. paul allen has a look at the markets. markets not doing so well in new zealand at the moment. off 0.4% after the first 90 minutes of thursday trade. nikkei futures are looking positive. it will be worth keeping and watch on japan's largest convenience store operator.

week sales growth has seen guidance slashed. sx futures look set for 0.5% gains in 30 minutes time at the open. we will be hearing from the nastro -- national australia bank and west bank. trade data for august in australia. you're expecting a slight improvement to the deficit. more of bloomberg technology next. emily: this is "bloomberg technology." i am emily chang.

according to people familiar matter, at&t's acquisition path started last year. the city company will shift its models so that it owns some of the videos that it distributes. still with us to discuss our david kirkpatrick as well as jerry smith. explain what we know. at&t supposedly has a list of targets ranging from $2 billion to $50 billion in market cap. >> we know that at&t is very interested in getting a piece of hollywood. distribute and content for

people either through tv or their phone. for now, they want to create the content and own what they're distributing. emily: this is a costly business. can at&t do this profitably? >> that is certainly a question. there are a lot of risks to taking this path. people either through tvat&t isy phone company and now they are looking to get into the entertainment business and hollywood. there is the potential for a real culture clash there. they have a hollywood studio, cable networks out of that. orlly, if you look at at&t comcast, this is a hedge against the distribution business. there are a lot of things that they can learn from their

viewers that they might not have access to as a distributor. emily: is it taking a page from comcast, or stealing a page from verizon? >> it is both. obviously verizon is trying to buy yahoo!. they already own aol. it is basically a content company of the newer breed. it is very risky. jerry is right to use the word culture. i don't think these companies have the culture to get into such a different business. when i look at these companies and i hear people from verizon and at&t talk about it, you get a clear sense that they look at the googles and the facebooks and say, how come they are so powerful? how come they have so much market cap? we have all these mobile users.

we should be that valuable too. they spend a lot of time ringing their hands and thinking of strategies to make themselves more like those companies. there are bigger reasons than culture. they are not tech companies in the same way, even if they are built on technology. it is going to be hard to see them really succeed at the bigger ambition which is buying a hollywood studio and having power comparable to those companies that they envy. emily: how would you compare at&t's strategy to what verizon has also started to do? ht aol, yahoo!g verizon'se of strategy is mobile advertising. they want to be able to deliver

online video through aol and yahoo! to your phone. they want to make it easy for advertisers to reach you through your phone. strategy is still taking shape. one thing that is worth pointing out with at&t like comcast is programming costs. they're working to charge higher and higher rates for at&t to carry cable channels. now, at&t suddenly has the ability to create its own programming and it would also potentially make it easier for them and would limit the cost of having to carry cable networks. emily: it is interesting to think about what the carriers look like five to 10 years from now. the business has remained largely the same for the last couple decades. the wireless wars have

changed a lot. you can see t-mobile trying to win subscribers in a legacy business. what are you think these carriers look like a decade from now? >> there are some he wildcards. google -- so many wildcards. google was trying to get away from that, but they are going into these branded phones. who knows where they will take that? maybe they will build networks to go to their own phones. the industry is in turmoil. one of the things i was thinking about is how the distribution methodology of content is shifting rapidly. disney might want twitter doesn't would like to control a distribution path that would be a hedge against its cable channels becoming less important. amazon, which has a novel form of distribution in the form of rhyme customers, is becoming -- of prime customers, is becoming

a massive producer of video. they're shooting a video in the neighborhood where i live. they had a whole street blocked off with classic cars. the players are shifting quickly. we have to remember amazon as much as everyone else. each one has a different way that they think they will assemble an ecosystem. emily: david kirkpatrick, are bloomberg contributing editor, and our media reporter jerry smith. thank you for joining us. a story that we are watching, u.s.bi has arrested a contractor for allegedly stealing classified u.s. documents. the justice department unsealed a criminal complaint fitch said it could cause exceptionally grave damage to national security if released. according to someone familiar, the contractor is harold martin of maryland. he worked for the consulting firm booz allen hamilton.

the investigation into this latest leak occurred around the same time that sophisticated hacking tools used by the nsa were leaked online. coming up, as more players jump into the virtual reality race, we look ahead to playstation releasing its long-awaited headset. do not forget to tune in this weekend. we will give you the best interviews from the week including our conversation with mark cuban from dream force. that is on saturday. this is bloomberg. ♪

emily: a story that we are

following, yahoo! is disputing the report that it built software to scan customer e-mails for u.s. intelligence agencies. reuters had said they complied with government orders to scan half a million yahoo! accounts for the fbi. in a statement they said -- yahoo! is under increasing scrutiny for its planned acquisition by verizon. last month they exposed a hack that exposed half a billion customer accounts. the vr race is upon us. is playstation headset geared to lunch next week. it comes on the heels of oculus rift and others. google is also joining in unveiling its own. which the are headset will reign

supreme? someone whoow is has experimented with every had the are headset on the planet -- with every the are headse -- vr headset on the planet. we already have this giant network of consuls that exist. does that give ps4 an edge? >> playstation 4 is already out there. active on the network are 65 million. let's forget the content. the in-house studios are very strong. extreme fan followings. they can leverage those things and upsell these devices. emily: what about the price? the playstation is cheaper. you already have to have the consul. the htc and oculus are fairly

expensive because you need the entire pc to go with it. google daydream is very cheap, but we do not know how that will translate. how are you see this lighting up? -- playing out? >> google daydream is targeting a different customer. unit volumes will be higher. 7.1 million expected this year. and otherhtc, sony, s. for sony, the prices up the main factor. these are single devices that game developers can develop for and optimize the experience. emily: david, what is your take on the nascent vr wars? >> think it is very nascent. this is one of those technologies that we are starting to realize is going to be a major part of the landscape

going forward. sony is a real opportunity to leap back into relevance. in particular, sony will do well with it. it is a great christmas present for your 13-year-old, or your 21-year-old, but it is not going to be a product category with content that will appeal to a wide range of people and be a wide range of product like a smart phone level of cultural penetration anytime soon. that is not to say it is not important. emily: the oculus developers conference is happening right now in san jose. mark zuckerberg just put out a post saying that they will demonstrate something new at 10:00 a.m. pst on thursday. >> like david said, content is key. there might be content-related announcements.

the main issue is that it is longer-term. around the 2020 timeframe is when the ecosystem around this new product type will evolve. right now, the focuses mostly on gamers. emily: what about content? who can compete the best? >> even if you have the content, the delivery platforms are not there yet. streaming this much bandwidth, the requirement, the experience -- it won't be ready. nascent just pitched the idea to these consumers like lookout for these products. hopefully it will solve itself and this will reach mainstream. emily: david, you wrote the book on facebook. any idea on the surprise from zuckerberg tomorrow? >> no, but it is interesting to see how excited he has become about oculus. obviously excited enough to spend billions in the first place, but he really believes it is not just for gamers and down the road, our interaction with

our friends on facebook will be in a virtual space where we feel in a convincing way that we are with each other despite distance. . that is very cool. i'm very interested that he thinks that so passionately. i want to watch that very carefully. emily: david kirkpatrick, you are sticking with me. our vr in-house expert, thank you for stopping by. tomorrow on bloomberg tech, our bloomberg coverage continues. --ill be joined by the vp amazon and google have been investing a lot of money into a drum delivery. how'd -- on drone delivery. how do they get beaten to the punch by a startup and re-know, nevada? that is next -- in reno, nevada? that is next. ♪

emily: the commercial drone

market in the u.s. is projected to top $1 billion by 2022. everybody is fighting for a piece of the pie. one interesting segment of that is delivery drones. amazon and google are investing heavily, but they may have been beaten to the punch by a startup in reno, nevada. ♪ >> there are already more than half a million drones registered in the u.s.. there is nothing quite like a flying robot delivering a package into your hands within minutes of placing the order. that is a magical experience. >> that experience is not as far away as you might think. flirty is the first company to get government approval to make deliveries by drone, beating out amazon and google. ♪

ip, are you ready to go? ok, we are clear and ready for you to deliver. we are in the desert outside reno, nevada in a secret site where the start up regularly tests delivery drones. >> what is the scenario we are thinking about today? the customer application? >> it is simple. you open a smartphone and pushing button to order over-the-counter medicine. we load up the package. they take off vertically. they fly based on predefined gps coordinates, through the customer's hole location or smartphone location -- home location or smartphone location. when a customer is ready for delivery, it hovers at about 50 feet. it is up to 100 feet, it paused, now it will come down to 45 feet

to have her and lower the package to us. >> with customized packaging to ensure cold food stays hot, hot food stays hot, and delicate products remain unbroken. >> chili dog here. >> exactly. >> we fly back and land autonomously where we took off from, reload, and conduct the delivery again. >> all of the testing is paying off. they are already delivering domino's pizza in new zealand. in july, became d-up with 7-eleven to make the first drug delivery of customer medicine in the united states. >> when we are operating in a neighborhood near you, we will be able to deliver within 10 minutes of placing the order. we've designed our drones to carry up to 5.5 pounds for up to 10 miles. they are electrically powered green aircraft.

>> right now, flirty is beating the tech goliaths in drone delivery. the next step is profit. todo that, sweeney will have convince a lot of shoppers that it is worth the premium delivery fee. drum does society need delivery? if you're hungry -- drone delivery? if you're hungry, would you like your pizza delivered by drone or by car during peak hour traffic? if your kid is sick, would you prefer drug delivery by flirty, or load your sick kids into the car and take them to the store? within several years, drone delivery will be as common as seeing a truck delivering packages on the street today. emily: bloomberg's spencer soper with us there. joining us for final thoughts is david kirkpatrick.

it is exciting to think about, but i keep asking, how soon will this happen? >> i don't think it will happen soon. i love the company is named flirty. they have a well spoken ceo. the big question is, if all of us started doing that, the software and systems to allow drones flying all over in different directions, not hitting each other, or falling on our heads, we are nowhere near that. maybe not for the masses happening tomorrow. emily: david kirkpatrick, techconomy ceo. thank you for joining us. >> on bloomberg technology. emily: our very first show of a new chapter. netflix is one step closer to having its original movies shown on the big screen. according to "the wall street journal," the streaming service has signed a deal with a small luxury theater company. it covers the same day release

of 10 of netflix's upcoming movies. this is the first deal netflix has signed with a theater chain. check out our new website for everything that you need to know from around the world in tech, powered by our 12 international bureaus. that is all for now from san francisco. this is bloomberg. ♪

from our studios in new york city, this is "charlie rose." charlie: maria sharapova is here. she is a five-time grand slam tennis champion and one of the world's highest-paid and highest profile athlete. in january, she tested positive for a heart medication recently banned by anti-doping regulators. she disclosed the infraction in march. maria: i wanted to let you know that a few days ago i received a letter from the idf that i had failed a drug test at the australian open. i did fail the test