mark: i'm mark crumpton, you're watching "bloomberg technology." let's begin with news. hurricane matthew is battering the east coast. state officials quickly declared emergencies in florida, georgia, and south carolina. more than two million residents have been warned to evacuate. after reaching areas cut off by the storm, haitian officials have dramatically increased the number of fatalities. 108 people now confirmed dead. the previous number was 23. russia has issued a warning to the u.s. against attacking forces allied with the syrian government. it's the latest sign of escalating tensions between moscow and washington. the kremlin said strikes targeting government controlled territories are a direct threat

against russians deployed in the area. by consensus, the united nations security council today formally nominated antonio guterres to be the next secretary-general. he spent 10 years as u.n. high commissioner for refugees he said he wants to serve the most vulnerable. >> the victims of conflict and terrorism, the victims of the violation of rights, the victims of poverty and injustices. >> the 193-member general assembly is expected to approve his nomination next week. global news 24 hours a day powered by more than 2600 journalists and analysts around the world. "bloomberg technology" is next. emily: i'm emily chang, this is

"bloomberg technology." social media star snapchat may be getting ready for the public market. we will bring you up to speed on what we know. plus, does anyone want to buy twitter? shares fall 20% on news that prospects for a deal are falling apart. and a rare interview with the founder and ceo of china's didi, how he won a care for and took over uber in asia's biggest market. but first, snapchat prepares the paperwork to go public. according to people familiar with the matter, they're aiming to sell shares at the first of next year but timing is tricky. sources cite three key factors that the parent company is watching. joining from new york, mac's chest and -- max chaskin with the latest. what do we know about their

plans for an ipo? seeking roughly $25 billion, which a lot of people in silicon valley were worried that the air is being taken out of the bubble. that'll give a lot of confidence because it's a big improvement over their last valuation. the other thing is, they're trying to do this quickly. it's pretty stunning when you think about how fast snapchat is moving. they only added the basic measuring features most of their competitors have in the past weeks and months and they just announced this glasses thing, just changed their name to snap inc., which i think i just made a mistake there it's wild how fast the story has moved. the i.p.o. is the latest thing in what's been a crazy six months. emily: why do you think they're going forward with this now? i know there are a number of factors out there they said will affect their time. -- timing. part of it is they are trying to seize on some momentum.

facebook's instagram just knocked off the basic functionality of snapchat. i think there must be concern about that and you want to seize the moment right now. it's been really good. and the other thing is again, snapchat is unproven. there may be a thought like, we may as well get public now rather than risk some problem in the private market. if private funding were to dry up in the coming 12 months or 18 months, that could be a problem for snapchat if it weren't public. it's a combination of seizing the moment and also trying to time the market. emily: i spoke with twitter investor chris this week and the first thing he did when he saw me is snap, not use twitter and he's been twitter's biggest cheerleader for the longest time. take a listen to what he had to say about snapchat. >> snapchat is less about the product and more about the product team. it's a company that's been

willing and able to reinvent itself a few times. they're bold and take chances. when they walked up to me after a talk i gave, they said, we loved what you stand for, we want you in our deal. i said, -- they walked away and i told my younger business partner and he said, what? and by the time we got back to them, they did a deal with somebody else, probably cost us a few billion dollars. emily: he didn't get in on that deal but others did. he's using the product innovation, the willingness to change as a positive, perhaps in comparison to twitter which has not changed. how are -- what do we know about the actual numbers here in terms of users and user growth? and the actual market that snapchat has been able to bite off? max: i think we're talking about 150 million daily actives which is a big number. i'm not sure -- twitter has been

sort of squirrely about its daily users in the past but i think most people believe snapchat is seeing much better engagement than twitter and when you consider that the way that snapchat has grown and how young it is, that's pretty impressive. the other thing about snapchat right now is, it's just cool. i think one of the things we've learned from watching the evolution of these social networks over the past decade is, that sort of thing matters. twitter really seems to be struggling just to retain users, to get people excited about it, where snapchat, they are just bringing out new products, new ideas, sort of these new shows constantly and there's, you know, there's a real sense of momentum. emily: we'll see if cool is enough to spark public market investors. our bloomberg "business week" reporter, thanks so much. we'll continue the story tomorrow with light speed venture partner robbie maxer, the very first venture capital firm to back snapchat.

turning now to tech m&a. qualcomm is moving closer to a deal with a dutch chipmaker. nxp. people familiar say the two companies are making progress on price negotiations. shares of both stocks rose in thursday trading. on the other hand, twitter, shares plunged the most since 2015 on reports that prospects for a deal are falling apart. joining us for the latest on both stories, alex sherman in new york. alex, let's start with twitter. there's reporting now that google and disney are not making a bid for twitter. that sales force may be the only suitor remaining. what do we know? alex: it's not all that surprising that google at this stage would say they're not bidding. our initial reporting indicated they might not bid. it really doesn't make sense, i would argue, for google to bid unless it knows someone else will do a deal for twitter. i think google is fine with an independent twitter. they have a search partnership there. you would think the reason

they'd want to buy twitter is to secure that search partnership for the long haul. if they felt like twitter would be an independent company there'd there'd be no need to buy twitter. disney, they were with a financial advisor last week. we haven't been able to independently confirm they're out of this yet so we don't know that for sure yet. rico did say they're not going to bid. salesforce is still there. salesforce has not back down. i reconfirmed that today. so they are still taking a look at this. not to to say that a deal will get done, necessarily, but maybe now salesforce sees this potential transaction has actually moved in their direction, advantageously, if they are the only bidder they might get twitter for a lower price. emily: let's say a deal doesn't get done. after all the speculation, where does that leave twitter? a potential acquisition had been priced in. now we see the shares plunge. alex: i would imagine if no teal

gets done, expect twitter shares to fall even further than they are to have. premium bakeda into that stock for months and months now will evaporate at least for the time being. knowing twitter, the speculation would probably come back around sooner rather than later. i think that there are a lot of people that are close to twitter. either advisors to twitter or people at the board level that want to see a transaction get done. so even if no deal happens now, i wouldn't necessarily rule out that no deal would happen in 2017. emily: quickly on qualcomm, n xp, we know they're getting closer to a deal on price. how soon could this happen? alex: this one may happen sooner than you think. originally, there had been reports that a deal might be two to three months away. then we did a little reporting on it on friday. now i'm hearing things have

accelerated. the two sides have made pretty good progress. there's still a valuation gap. it's less than 10%. from what i hear, n.x.p. wants about $100 a share, qualcomm -- $120 a share. qualcomm more than like $110 a share but they are making progress. there are active discussions. qualcomm is the only potential suitor right now. so all of those reasons lead me to believe that we may actually see a deal get done, you know, at least let's say in the next few months. emily: thank you for that update and your great reporting this week. facebook is working on a new virtual reality product that's a step above the samsung gear asbut not as powerful oculus rift. aey said they are aiming for sweet spot between the products

but it's not yet ready for launch. zuckerberg also demonstrated avatars that can be customized to look like real people, read hand movements, the point is to give us all a place in virtual reality. as facebook works on social software. oculus already spent $250 million on developers and is pledging $250 million more. coming up, xiaomi pushes into the u.s. we will hear from global vice president hugo barra and sling tv ceo roger lynch. ♪

emily: welcome back to "bloomberg tech," we're monitoring some breaking news, headlines from the new york post that verizon is pushing for a $1 billion discount on its yahoo acquisition. they agreed to buy yahoo for $4. billion, but yahoo in the midst

of a hacking scandal involving information stolen from over half a billion accounts this coming from the new york post, source telling the new york post, we'll work to confirm this but verizon reportedly asking for a $1 billion discount on its deal for yahoo. turning now to streaming, the xiaomi's set top box is entering the u.s. but china's fast rising smartphone maker is entering a crowded space, from apple to google to amazon, major tech players have products streaming video to a tv. one thing that makes the mi box stand out, pre-installed sling tv which offers internet based live tv. here with me now, roger lynch and xiaomi's v.p. hugo barra. thank you so much for being here. hugo, let's start with you. why get in this market when there are a lot of players here already?

hugo: you know our company well. our mantra, the way we do business, our d.n.a., is what we call innovation for everyone. it's this idea of bringing cutting edge technology to everyone by making products in very large scale and selling them at, you know, very small margin. we saw an opportunity here in the u.s. to disrupt these particular living room space with this model. that's why we brought mi box in partnership with google and sling tv. we're here because the cord cutting phenomenon seems to be going mass market. this is the right time to enter this space. emily: sling is available on other devices but if you go with the mi box, you get a discount. how many subscribers does sling have and how many more do you expect? roger: we don't release these numbers because we're part of dish network. they are released as total scrap his dish has.

-- subscribers dish has. xiaomi has shown to be a tough innovator in china. i think this has been a launch that people have been looking forward to and have been excited about. emily: will the sling app on the mi box work with voice commands? how will this work? roger: it's a fully integrated experience so one of the innovative things we're doing with xiaomi is when you purchase the box it'll launch right into sling tv. this, whathinking on you hear people talk about all the time, i don't watch tv anymore, why do i have a cable such? people do watch a lot of tv. video content is at a rise but they want to be their own programmer. they say, i want to buy a box but do i lose my cable subscription? by working with sling tv we put your cable suspicion as internet service inside the box so you

get what you had before but you know longer need a cable subscription. this is so important for the product story, why people would want to buy this story. out of the box, when you power on mi box for the first time, connect to wi-fi, go directly to live television, almost as if it was a cable box. we have a special arrangement with sling whereby during that first day you get to watch live tv, entirely for free, without a paywall so you can know how well it works. emily: it's interesting because in china, live streaming is huge. it's far bigger than it is in the united states. and i'm wondering if you could describe that for me a little bit and how you expect live streaming in the u.s. to evolve. how will it get there? hugo: so it's an interesting blend of the old and new. but live streaming in china has taken over both for big events, which is sort of something we already know, but the personal live stream, you live streaming yourself is a big trend as well.

we'll see how much of that translates to the u.s. i think what's more interesting over the next couple of years in the u.s. are the big things you would only catch on your regular television now being available much more easily, both live as well as on demand later. there's -- unbundling trends at play here that will accelerate this trend. emily: roger, how do you see the market evolving? roger: the pay tv market is in a state of transition. five years ago, pay tv penetration by households was around 88%. today it's down close to 80%. we can see the shifts happening where consumers are moving to more stream, putting together their own bundles with different services that weren't available before. we're just at the beginning of a long shift that we're going to see, moving to streaming. emily: google unveiled google home earlier this week, will sling work on that? roger: we look to work on every device, it's important to be on every streaming device people

are using. emily: hugo, you can order this online but you can also buy it at wal-mart. is this an indication of how we may find future xiaomi products? hugo: we'll see. we're here one disruptive product at a time. this is the first one poised for disruption. we wanted a wide reach retail partnership and google actually brought us into wal-mart. they've known retail channels really well here for some time. so one retail channel is enough for us to start with, we chose a wide reach one and we'll go from there. emily: you used to work for google for a long time. i'll ask you in the next block what you think of their announcement this week. hugo, you're sticking with me. vice president of global operation for xiaomi. roger lynch, thank you for stopping by. coming up, we dig into xiaomi's other products. and smartphone competition. we will be right back.

this is bloomberg. ♪

emily: wal-mart is boosting a stake to just under morea move to strengthen market share in the world's largest online market. they are tapping jd's resources to help succeed in china, where it is estimated a quarter of retail growth will come from in the next five years. they're spending big on ecommerce to compete with amazon. wal-mart just snapped up jet.com last month. competition in the cell phone continues to heat up. xiaomi unveiled its latest most premium device, in hopes to challenge apple and samsung. just this week google emerged as another serious contender with the launch of the pixel handset, all this as the smartphone market reaches saturation. vice president of global operations hugo barra is with

me. you ran android at google for a long time, so i'm curious what you think about the new phones and that google is making their own phones? hugo: i had a chance to try the pixel and pixel xl yesterday. very impressive. i am a big fan. to me the most important thing google is doing here is brand. this is the first time we're seeing a phone with a big g on the back. we've been talking about the google phone for years, but it was never the google phone. now it finally is. emily: is this competition? hugo for sure it's competition. : i'm delighted because i think this is the kind of move that will shake up the industry in more ways than one. emily: how? hugo: it is a different kind of innovation. i think one person put it well when he said, the pixel is the vessel for a.i. it is precisely the future of innovation in this segment. we've been seeing display innovation, battery innovation, camera innovation for a long time, those will continue but i

think where the real user experience differential will come from in the future is the sort of things we're seeing google do. emily: would you consider using the google assistant in xiaomi phones? hugo we already are to an : extent. we ship with voice search and google now on all our phones. when google makes the assistant, the next generation available, we are interested in using it as well. i'm a big fan. emily: let's talk about the new mi phone. this is, you know, your state of the art, highest end phone. apple just came out with the new iphones. samsung is having some issues, which we'll get to, but what makes you think this can reinvigorate smartphone growth? hugo this is our latest : flagship, mi 5-s, a five-inch device, crystal display. it has a couple of innovations, one is the way you want to lock

the phone. we are using an under glass fingerprint recognition technology. instead of a button, it's a piece of glass with a little dimple so you can find it when you're not looking. it's the first time someone is using this technology which makes it faster, more elegant, looks much better too. as you can see. then the other thing we're doing also is the camera that we're using, this is a 1.65 micron large, large pixel camera sensor. coincidently, the same one we think is being use on pixel. emily: what's your take take on the samsung issue? have you seen any impact? massive global recalls, people, you know, could potentially end up switching to xiaomi or other brands because of it. hugo it is a real issue. : potentially very significant backlash. we are one the biggest innovators in battery technology. we were the first ones, the only

ones really to talk about the density specifications of our battery because we're probably the leading player in china or india about how much juice we can get out a battery volume. battery technology is complex, you have to test it a lot, and we do. we haven't encountered these kinds of issues. i think we will get past this. hopefully they'll recover, they'll get their brand back. it's realy perhaps a small mistake that will cost them dearly but i don't think this is a long-term problem. emily: we have 15 seconds left, i know you said that it's really the supply issue that are impacting the xiaomi growth numbers. when do you see the supply meeting the demand for xiaomi phones? hugo: our supply line is being reinvigorated every day. we are seeing more demand than we have ever had before, we're doing everything we can to go larger and larger scale. emily: all right, hugo barra, vice president of xiaomi. always wish we had more time. thank you for joining us.

coming up, the leader behind the chinese right hailing lineup -- giant didi might not be a household name yet. it is in china. we will be talking about him next. ♪

>> the top stories this hour. samsung posted better-than-expected earnings as chip improvements limited the impact of the note 7 recall. samsung did not specify the financial impact of the recall of its flagship smartphone but analysts estimated could be $1 billion to $2 billion. the pound plunged over 6% against the dollar, the biggest decline since the brexit referendum result, a move that traders struggled to immediately explained. the drop was all but reversed, but some blame it on algorithmic orders, a lack of liquidity in early trade, the so-called fat

finger, you could say. exchangeoreign reserves declined more than expected in december amid speculation as the central bank resume selling dollars to support yuan. the pb is seat's. shrankc's stockpile below estimates. global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. this is bloomberg. let's get the latest from the markets right now. for that let's go to shery ahn. shery: angie, thanks. we are looking at asian markets, in the red board, including hong kong, which of course was gaining always will. traded in hong kong are also in the negative, falling 0.2%. industrials leading gains. remember, we have seen such a

boost for hong kong stocks, h shares in particular. the h shares are heading for the best weekly gain in more than two months, since mid-august. we are seeing oil and energy stocks have been boosted, although today they are losing ground, so take a look at these stocks trading in hong kong,. moving right now first of all hsbc. they've bought back more than 3 million shares listed in london, falling a little bit, about 1%. take a look at china oilfield services losing over 2% after they were cut to neutral at ubs. japan now coming back from its punch break. let's see what -- lunch break. let's see what they are doing, because in the morning session they declined for the first time this week. the nikkei, they will restart the afternoon session. there you go, down 0.25%, not being helped by the japanese yen witches strengthening -- which

is strengthening 0.2%, strengthening for the first time in nine days now. that is a little bit of positioning as well as they head to a holiday in japan on monday. this is bloomberg. ♪ family: this is bloomberg technology. i am emily chang. you may have heard of travis kalanick at uber, but what about jim cheng wei? xing won a didi chu turf or with uber and turned his company into a global force. he sat down with brad stone, the interview featured on the latest issue of bloomberg businessweek. brad just got back from beijing. tell us about this guy. very different from travis, but also similar. brad: four years ago, he's a

middle manager, sales guy in ali baba. he breaks off to do this thing, competing with 30 other ride sharing startups. goes head-to-head with another one backed by alibaba, wins that battle, then went head-to-head with uber and they've done a peace deal over the summer. uber agreed to leave china, but got 17% of his company. he is a battle or. -- battler. emily: i know he's interested in military history , he led the battle with uber like a war. brad: at uber, they call the main conference room the war room. there must be something about these guys. the military point of view is the successful one. sure cheng wei, is very interested in military history, talks about famous battles of world war ii, called his morning meeting the wolf totem after a famous novel and movie.

it was about a student studying wolves in inner mongolia. it is an intensive business, so that sort of, outlook and being brilliant. emily: he's taken out two big players but is the fight other, at least in china? brad: there's a couple of local players, but the landscape is changing now. it's going to move to driverless cars and then there's the world outside of china. didi didn't agree to not expand outside china, he said he and uber may end up competing in other countries. so by no means is it over. emily: we know uber has a fleet on the ground of driver this cars. brad: who isn't in driverless cars? u made a bigid investments in my sense is didi is just getting started, trying to make some key hires. cheng wei said somewhat humbly

maybe we'll surprise you. ,but i think they have data. on thehave didi apps phones and that is a big start. emily: both didi and uber lost a lot of money taking each other on. they've gotten rid of some subsidies, how close are they to turning a profit? brad: i think next year they'll file to go public. i would say now they are not close. a big part of their business is facilitating yellow cabs and they hardly make any money on that at all. and we talked to drivers that complained that fares have gone up and discounts and perks for drivers have gone down. didi like everyone else trying to rationalize their business. i expect the economics will improve and we'll get a look at the underlying profitability. emily: brad stone, our global tech editor, thanks for sharing that with us.

a stock we are watching, koopa software surged its first day of trading, this after the company priced its shares at the high end of an increased range. it's been a slow year for i.p.o.'s, but the move suggests a strong appetite for tech offerings. carol massar and cory johnson spoke to coupa's c.e.o. and asked what to expect in coming months? take a listen. >> we had a great reception from investors across the country. what they can expect is for my team and i to continue to driving our company further and further, focusing on customers, ensuring success and driving measurable value to them, greater profitability better , visibility, more compliance for our platform. emily: this weekend on bloomberg, we'll bring you all our best interviews from the week, including our interview with gopro c.e.o. nick woodman as they revamped the hero 5. that hits store shelves.

the best of bloomberg tech this weekend on bloomberg television. up next, how cloud-based tools are unlocking new frontiers in the way we work. this is bloomberg. ♪

emily: apple is consolidating its efforts in cloud services, combining the teams working on siri, maps, apple news, apple music, even parts of itunes into one location in their infinite loop campus. the groups currently work separately in different business parks, something that's been blamed for software bugs and slower development. the reorganization comes as apple hopes to grow services and compete with amazon.

advances in cloud infrastructure have enabled major changes in the way people work. file sharing and team communications helped teams work remotely and a crop of startups are trying to address pain points for businesses across the economy. what does the future of work look like? what is the next generation of workers looking for? dropbox vice president of engineering, and april underwood, vice president of product. thank you for being here. i'm fascinated with this topic because, you know, from the way office spaces look to the technology we use, it's all going to change. i wonder how you think it's going to change. april, let's start with you. the office space. what looks different in, say, 10 years? april: different lighting. [laughter] i think that the office space, and i think that really, the experience of work has a lot of similarities of today. but i think a lot of constraints are being removed. people have the opportunity to work in a more distributed fashion, not necessarily all in the same physical space. they have the ability to work

different hours and also the global aspect of the economy sort of necessitates that. but you know, more importantly, i think that there's an increased appreciation for really allowing employees to have the agency and really the flexibility to choose the work style that works best for them. that's one of the things obviously we're focused on is even though those constraints may be removed, people still need a place to go to to get work done. when they open slack, they are at work. it enables them to still be able to communicate with each other but work with a wide variety of software and do that across geography, across time zones and do it in an efficient way. emily: some people say productivity hasn't changed very much, even though how we get stuff done and the amount of flexibility we have has actually changed a lot. how would you respond to that? >> i think we made an incredible amount of technological progress over the last 20 or 30 years but at the same time, the amount of

information and communication has increased way faster than technology has been able to keep up with, especially in the workplace. if you are going to look at how productivity software was built for the last 20 years, it was a machinelike lifecycle. over 20 years. whereas slack and dropbox get goal every day. that's our base of experimentation. i think the other thing that has changed is that we are building for the user, not for the buyer. because historically you'd have to build for the people building the software not using the software. which meant low iteration cycles. as well as essentially not really being for the user. once you remove the constraints i think we'll see a ton of productivity gains over the next 20 years. emily: april, what are the biggest pain points you are trying to address. email is a big one. do you think email will go away ultimately? april: i think people will

always need ways to communicate with people outside their organization and email is great because anyone can email one another. but that's also one of its major downsides. so you know, the main problems that slack solves is brings increased transparency to organizations so conversations that happen between two individuals that may be of value now or six months from now or a year from now are available to other individuals within the organization. slack brings that transparency by organizing conversation around work and around topics. it allows people to harness the power of that archive. but it also really brings sort of, a lot of new elements that make workplace communication just more attuned to the needs of the individual users. notifications that allow you to tune into the things and stay plugged into the topics that are critical to your work. but we're just getting started. artificial intelligence, a lot of things we could do to help elevate the most important topics and connect the right people to one another as well as

the right tools, software applications and so forth, that's still to come. so we feel like, we're in an early stage of this major transformation around workplace communication and productivity and we think it's an important , part of that, but it's just the beginning. emily: how do you see a.i., how do you intend to use a.i. to improve productivity? aditya: i think we are still in the early days of applying ai to productivity and collaboration software. in the last 10 years, we made so many advances in ai, but the uses today are to rank the ads you see, rank the search results you get, and the recommendations you have from amazon. i can't actually think of one actually super important or super useful application of it at the workplace. i can't tell you what we're working on there but there are interesting things going on. emily: of course there is competition out there. the information wrote a piece about facebook trying to create a slack competitor, and reportedly peddling their own ai as a way to gauge sentiment at

work, gauge how employees are feeling about certain things. what was your response to that? april: yeah, i mean, i'm not surprised to see that there is more competition in this space. it's -- what we're trying to solve with slack is really a widespread problem. people spend so much time searching for information, communicating with each other, and then there has been a proliferation of software, more new types of software that help people do their work better than ever before. they need to talk to each other. they need to work together. so that's one of the things we enable so i'm not surprised to see more companies coming into the space. there are plenty of other companies in dropbox's space, yet they are a very successful company. we're not surprised by that. a lot of the products that we hear rumors about, we haven't actually seen yet. so i think it's really early to say exactly, you know, whether one of these other products is going to be, you know, really meaningful swing at this. if we go back in history, i.b.m. probably didn't anticipate that some hippies from microsoft would be able to sort of be

really competitive with them and it turns out of course microsoft was. google has run into that around social with facebook and there are applications like snapchat that are just taking the world by storm. so there's always room for new entrants. we are trying to enable that further with our platform by creating the ability to help, you know, work teams find new software applications. so we're not just sort of at that forefront of actually coming at this in a new way but enabling the next generation in software developers. emily: you guys have been trying to take on bigger and bigger businesses. and i'm curious, you know, what goes into designing a product for 10 people, versus 10,000 people in a single organization? aditya: one of the big mental model changes we made is that we are, instead of thinking it has a 10,000 person enterprise we think of it as 1,000 10-person teams. how do we get growth and how do we get essentially a team a big

behemoth to think of itself as a collection of loosely organized, nimble, fast, teams. and if you can crack that nut you can rely on a lot of bottom up adoption that things slike -- things like slack and dropbox have seen. emily: last question to both of you, about millenials. what do they want, what do you think they want and how do you design products for them? april: one thing millenials value is self-expression. i was at twitter for five years, so everything we have seen in social reflects that. one thing that we bring with slack, we bring personality into the workplace, and we find personality is not a distraction but an enabler for teams to work better together, for individuals to do their best work. that's just one of the many ways in which i think millenials will have the expectation to bring that personality but also, they're just going to expect that software at work is easy to use. the trainings we used to go through to learn to use software in the workplace is going to seem like it's completely from

outer space to this generation that has never lived without the internet, and that's what products like ours come in. emily: you're nodding vigorous. aditya: yeah. simple, delightful, zero training cost, i think the disparity between consumer software and software at work is so high, that's a hurdle we need to cross over the next 1 or 0 -- 10 or 20 years. emily: thank you both. dropbox president of engineering and april underwood from slack, looking forward to the future as you describe it. 's up next, could the biggest known company hacking of all time put yahoo's $4. billion purchase price in jeopardy? we'll discuss, next. and if you like bloomberg news, check us out on the radio. listen on the bloomberg radio app, bloomberg.com and in the u.s. on sirius xm. this is bloomberg. ♪

emily: a story we are watching, alphabet's health tech company

is joining the fight against the zika virus. they've developed machines and sensors to automate the breeding and sorting of sterile mosquito, long considered a strategy for getting mosquito populations urn -- under control and limiting the spread of zika and other viruses. the head of engineering set verily doesn't yet have a business model in mind, but they are confident such a large economic burden as mosquito-borne disease can create a sustainable business. turning back now to the major tech deals in the works, we are diving into a report that verizon wants a $1 billion discount on its deal to buy yahoo! after reports of a major hack attack according to the new york post. aol boss tim armstrong flew to the west coast to meet and discuss price reduction, according to the report. joining me now, corey johnson, you spoke with tim just last week. what was the take on that? corey: we had a long

conversation last week. he of course didn't want to say anything, and i kept asking. one thing we learned from him, yes, the order of events, yahoo! got hacked, yahoo! knew it got hacked, long pause, yahoo! says, verizon, by the way we were hacked before we agreed to the merger. emily: we don't know how long the positive us. corey: but we know they didn't disclose it as part of the merger. people who look at the documents say they should have disclosed it, they should have been required to disclose. that is a problem as they try to complete the merger because it is supposed to be something they should have disclosed. the result was, i pressed him set, -- him and said, do you have the right to renegotiate? he said, the value of the deal, if it has changed they should have the right to renegotiate. i asked him, is it possible that such a hack could happen and there's no damage to the

underlying property? he said, there's a lot of companies, like there's a target down the street from my house, a target down the street from my house, he says, and the parking lot looks pretty crowded to me. so the suggestion is, yes, they could be damaged to the underlying product, but maybe not that much. emily: is there any precedent for a price change? corey: absolutely. on hacking, no. on products being damaged and then being aware of it, yes, a false conveyance, with the underlying company prospects changed. emily: qualcomm and nxp? corey: think about this in a couple ways. we have a chart we put together showing the difference in gross margins. maybe we can fire it up. i will tell you about it. they are both profitable companies when it comes to gross margins. you put these two companies

together, if you put these two companies together, what's going to happen fundamentally is that the numbers are going to come down. the margins are going to come down from a merged company because qualcomm's margins are better than n.x.p. but n.x.p. gives qualcomm a way to get into the automotive business that they haven't had. if we think about self-driving cars, whether through a company like tesla, or this new company ford, chrysler, shery, ferrari, , -- chevy ferrari, whoever. , as cars become more complex electronic vehicles and the chips go from being simple chips to not quite a c.p.u. in a p.c., but maybe something in between, nxp is in a really good position to let qualcomm have access to that world. emily: we have a minute left to talk about twitter. corey: that's hardly enough time. emily: google and disney off the table, sales force maybe still there we don't know about any

other suitors, stock dropped 20%. corey: topline growing so fast for twitter. disney would love to have a 20% year-over-year growing business on the top line. who wouldn't. but what we see with twitter is a slowdown in user growth is so important. when companies look at this, i'm sure any company who is able to kick the tires, to get more information they'd get it. it's only growing users at 1% year over year. emily: but espn is losing users. not all businesses continue to grow as fast. corey: 1% is not growing fast at all in the tech business. 1% is a cable business that is 40 years old. 1.5% in this market is pathetic growth for any company. you could sell tires and grow faster than that. you don't need a tech evaluation to do it. emily: cory johnson, our tech editor at large, thank you so much for breaking it down. and that does it for this edition of "bloomberg tech." we will of course keep following all those deals or potential deals. tomorrow we sit down with matthew print to wrap up this

week in cybersecurity. a reminder, check out our new website for everything you need to know about the world in tech. this is bloomberg. ♪

rishaad: noon here in singapore. i am a shot. samsung posting better than expected third-quarter earnings. that all managed to limit the fallout from the note 7 crisis operating income rose 5.5% coming in at $7 billion. they did not diversify their impact from the phone recall. the pound plunged more than 6% against the dollar. the drop was immediately all but retraced. china's foreign exchange reserve declined more than anticipated to