alisa: i am alisa parenti in washington and you are watching "bloomberg technology." president and mrs. trump have arrived back in the united states following a trip to france where the president helped commemorate the 100th anniversary of the u.s.' entry into world war i. the french president invited mr. trump to take part in france's bastille day celebrations. the legal fight goes on over the trump administration's proposed travel ban. the justice department will appeal a decision by a federal judge in white which weakened the travel ban. attorney general sessions is taking the issue back to the high court. israel's government says a holy site that was the scene of a deadly attack earlier in the day

will not reopen before sunday after additional security assessments. the shrine was closed after three palestinian assailants opened fire this morning killing two israeli police officers before being shot. former president jimmy carter was released from the hospital today after being treated for dehydration in canada. the 92-year-old was volunteering at a habitat for humanity home-building project for about 90 minutes yesterday when he appeared to wobble. he was taken to the hospital as a precaution. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. "bloomberg technology" is next. ♪ ♪ emily: i am emily chang and this

is "bloomberg technology." coming up, sprint is tapping warren buffett and john malone for billions of dollars. will it help turn around the struggling telecom giant? we will discuss. investor revolt at uber continues. some of the first backers are looking to sell their shares. with just a few days until "game of thrones" returns, we are taking a closer look at hbo's standalone streaming service and how it stacks up to the competition. the latest twist in the uber saga. bloomberg has learned shareholders and the board have discussed selling some of their shares to softbank and other potential investors. the deal could include an injection of new money into the ride-hailing startup. it is unclear what valuation the shares would carry or how much softbank or other investors would buy. any private share sale like this would need to be approved by uber's board. for more on this story, we are

joined by peter elstrom, cory johnson, and eric newcomer who broke the story and covers uber. how will this work? >> the story is literally developing. benchmark talked about this with softbank pre-resignation of travis. emily: travis has for many years been opposed -- >> especially of investor share sales. now there are talks that include the board and shareholders about whether to sell to softbank or someone else. probably combined primary and secondary, meaning they get some new money and investors get to get some cash for their investment. emily: three months ago, uber were the most coveted shares. what do you make of this now? cory: if you are benchmark or somebody else sitting on this thing that could be one of the greatest investment gains in

your life and yet the c.f.o. is gone, the c.o.o. is gone, the c.e.o. is gone, this thing could be careening in a way without leadership that could be disconcerting. you want to take some money off the table. you can imagine sitting on this unrealized gain that could be me thousands of percent, they will be happy to only take 1000% or 500%. you imagine they want to get some of that money out. emily: peter, you cover softbank. obviously, they have a lot of money. $93 billion to put to work. will they be vacuuming up everyone else's leftovers? >> this kind of deal would be a surprise. softbank has been a big backer of competing services including didi in china. if they are also going to put money into uber, that would be a surprise. they had been backing what looked like an anti-uber before this.

he is the dealmaker that never sleeps. he continues to push for deals. he made the largest investment ever in didi. it sounds like he is interested in uber, too. emily: what do you imagine travis kalanick is thinking now? he is still on the board, still the biggest shareholder. >> i think he was caught out of the loop on this. i put that in the story. there is this question of what he thinks now. we are getting to a moment on softbank where uber is competing less directly with some of softbank's investments. they cut a deal with didi. that is not softbank but there is a pathway to be local market players. softbank is covering some of these investments. it could be somebody else. there are other investors in the mix. i am trying to figure out who they are. please call me.

emily: what is your take, cory? cory: you could certainly be invested in the number one and number two or three. the fact that they are invested in a number of these companies does not mean they have to pick the winner. they like the sector and see the growth. i loved seeing the numbers yesterday because it let us see how big the business is in russia and countries around there. so many countries are seeing these businesses grow so fast. you imagine any investor will want to get a piece of that anywhere they can get it. emily: peter, another big story breaking today that softbank has reached out to warren buffett and john malone to invest $10 to $20 billion in sprint. what can you tell us? >> does this make sense? softbank has been looking for a way out of the sprint investment. they have been in talks with a number of different partners, including t-mobile, in the past. masayoshi son has held talks.

he's looking for some kind of investment in the company. buffett could put in $10 to $20 billion. part of that would go for shares in the company. part of it would be cash the company would be able to use to build out its network. it is not clear what role john malone would play. masa is looking for alternatives with sprint, not just wanting to negotiate solely with t-mobile. emily: sprint shares spiked on the news. t-mobile also up slightly as well. what do you make of that? cory: their sitting on so much unutilized spec growth. they just do not have the money to deploy. they have already borrowed so much money. they want to take that and build out a network. they do not have the cash to do it. a friend in need is a friend

indeed. i'm sure they are looking at anyone who has deep pockets to fund that growth. emily: talk about what you think is masayoshi son's greater game. >> they thought they would be able to merge the companies and repeat in the united states what he did in japan by buying the third-largest carrier and making it into a competitive player. he has not been able to accomplish that with sprint. i think he is for some sort of exit from the business. maybe part now and more later. they are two of the best dealmakers in the country and will not provide this capital support cheaply. it will come with serious terms from masayoshi son. malone made billions with xm sirius and a number of other deals. they will get a good deal if they come in with this kind of capital. emily: what you think this means for a possible merger given the political environment?

cory: i think that is the key. is the federal trade commission more likely to approve this kind of deal that looked like it would get rejected in sprint/t-mobile? indications are certainly yes. maybe this gives them more cash and leverage to try to draw a better deal with t-mobile. emily: cory johnson, peter elstrom, and eric newcomer. we expect the investor names before the end of the show. thank you. the indian software exporter raised its annual revenue forecast as it gained new contracts despite shrieking client budgets. it beat on the top and bottom lines on latest earnings but quarterly earnings rose just 1%. as for ambitious plans to hire 10,000 workers in the u.s., the c.e.o. says they have already hired about 600 new employees. a long way to go. we go across the pond for a look

at london's booming sector where the largest european series is placing bets. "bloomberg tech" is live streaming on twitter. check us out weekdays. this is bloomberg. ♪

emily: at&t is dialing up organizational changes following its $85 billion acquisition of time warner. people familiar with the matter say stephenson will oversee a pair of c.e.o.'s who will independently manage the businesses. it has been a volatile week for bitcoin, on track for its biggest weekly decline since march.

the frenzy to get into cryptocurrencies continues and dominated discussions in london. the annual conference wrapped up today. caroline hyde sat down with a key investor in the space. tell us what you got. caroline: thank you. i got a chance to sit down with rob moffat, partner at the largest series a focused company. it announced a $66 million funding round this week to help expand geographically but also push into cryptocurrencies. before delving into the world of blockchain, i started by asking where he was finding opportunities to invest. take a listen. >> we have seen a lot of activity around lending. the first peer-to-peer lender.

that was the first area we feel is great growth. the second is around reforms of doing digital banking. $66 billion raised this week. they do foreign-exchange for people traveling abroad for financial needs and become this real hub for financial needs. that has been quite a growth from zero to 700,000 users over two years. it is extraordinary to see that growth in financial services. caroline: what about the cryptocurrency in general? we have had volatility this week. how does this continue to grow or not? >> we are looking for half we will build real businesses. i think ethereum in particular is fascinating. there are so many different industries that can be

transformed using ethereum. whether it is trade, whatever it might be, there is a lot you can do with smart contracts. the question is how far away is that and how long it will take to get there, and what mechanism you use to get there does it justify having hundreds of different coins for every different use case or is there a lot i can be done with ethereum? that is what i am trying to work out now. i am less worried about the near-term volatility. caroline: we have seen plenty of volatility in recent share offerings. in the u.s., snap is down again today. are you optimistic or more sanguine about the exit for companies such as yours? >> i think the ipo market is there if you have a good company. you have to be able to prepare

for that. they have the classic way of doing it. beat, raise, and build from there. maybe snap went out too high. it is still a multibillion-dollar company created from nothing in five years. that is an impressive result for snap. caroline: has your view of what a good company is changed? or the lifecycle of a good company? is there pressure on portfolio companies to not just have revenue but also be shown new profits as well? do you need to be more obvious about a viable business model? >> in europe, that has always been the case. i cannot think of any tech idea in europe where the company has not been profitable or had a clear path to profitability. i think in the u.s., that has

not necessarily been the case. there have been a few that have managed to get out purely on growth. we have not seen that here. i think, have the dynamics changed? not really. growth is what people get excited by. caroline: are there any portfolio companies that are potentially ready to ipo? >> i think there are a couple of ours in that window. it is starting to get at the right price. we did an ipo in thailand. that is a nice success story for us to think about for other portfolio companies. caroline: m&a not the only route to exit. there's also ipo. are we seeing others wanting to get into startups? >> i think the softbank fund is

a good indication. caroline: does that worry you? >> they are out of our range. they want to invest $500 million. our maximum is $15 million. they are not short of ambition. they're willing to take out the biggest public tech company in the u.k. that is an interesting strategic investment. i think we will see more of that coming from china in particular. the u.s. continues to be engaged with europe with google and other acquisitions. magic pony last year had a strategic price. we are seeing it but not in huge volume. more of the volume might come from asia. caroline: more chinese and asian money chasing european startups.

emily: caroline hyde in london, thanks. snap and blue apron have had a tough go. what their struggles mean for others on the horizon. this is bloomberg. ♪

emily: call it the amazon affect. the online retailer was not the only winner during the prime the sale. ebay also had best sales they ever. in anticipation of prime day, the competing marketplace launched an advertising blitz using the quote "did you check ebay?" snap shares continue to fall after another analyst downgrade adding to a dismal trading week for the stock. the analyst lowered their rating it cut the share blaming a lower

at forecast. the parent company was downgraded by morgan stanley. the stock has plunged this week to break below the ipo price of $17 a share. what does this signal to ipo's on the horizon? joining us to discuss, alex barinka in new york. how do you think these other companies are perceiving this market? >> one thing is for sure. for ipo, you have got to get the evaluation right. that is the biggest takeaway from the snap move. if you do not give investors any forward-looking benchmarks to work off of, that could present an issue. when snap listed in march, the company did not give overlooking guidance. analysts had the backward numbers to work off of and create their own models.

after the first earnings report, you saw the stock fall off. it has not recovered and has gone down since then. a lot of this is lack of conviction in the fact that snap has something to show investors. this is always going to be a prove-it/show-me story because their management did not give a lot of information as to what incremental changes look like and how they will better show advertisers return on their investment. you have seen the evaluation come down quite a bit. in october when we first reported on the size of the company, they were aiming for a valuation of as much as $40 billion. right now, it is closer to $18 billion. in about six months with the listing in the middle. lots of concerns in terms of living up to that valuation. emily: blue apron is down 26% now since the ipo. what is happening?

>> that took off to the negative since the beginning. that deal launched three days after amazon agreed to buy whole foods. that has over-hung the deal for sure. they did go out at the valuation they planned on listing at a year ago. when they did list in the past few weeks, you see they also had taken a number of valuation cutdowns to the current valuation. when you take a step back and think about the rest of the company's in the private market pipeline, we talked a lot about the overheated 2014 and 2015 private market funding environment. now we are seeing that play out with some of the biggest names as they hit the private market. before these deals which consumers know about -- you know snapchat, you know blue apron --

we saw a lot of enterprise tech listings. those have gone out on average basically flat or a little up in terms of valuation. now we are getting into bigger deals where you saw a lot of crossover investors, public market investors piling into private rounds and driving up valuations. some of these concerns about whether or not private values will assert themselves in public markets are playing themselves out in these situations. emily: every hour, there is a new story breaking in washington. so much uncertainty around the future of the administration. is that impacting any of the folks who are talking to about what might be in the pipeline? >> right now, it is not impacting things. what it impacting that has an effect on ipo's is general equity market sentiment. we are continuing the bull market. investors are very uncomfortable. there is not a lot of volatility yet. people are attributing some of that to people standing on the

sidelines because they do not know if major policy pieces are going to work their way through the system. if you are a company and ready and did not get out already, you're probably prepping to go post-labor day in september. if you are not, you're looking more at a 2018 listing. if things stay calm as they are now, it is ok to get the deal out there. the big concern points -- economic policy does not go through. if there are other risks in the equity market, it does slow down the pipeline as we saw in 2016. emily: alex barinka, thanks so much. i know you will keep on top of it all. coming up, the biggest headlines that caught our attention in the week in tech. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app and on sirius xm.

this is bloomberg. ♪

alisa: i am alisa parenti in washington and you are watching "bloomberg technology." let's start with a check of your first word news. president trump plans to put ty cobb in charge of overseeing the white house's legal and media response to investigations into russian meddling in the 2016 campaign. according to people familiar with the decision, he is intended to be the enforcer of discipline, public spokesman, and the point person or questions from congressional panels and justice department special counsel robert mueller. senate majority leader mitch mcconnell's latest health care draft almost certainly is heading to rewrite again to find a way to appease both sides of the republican party. the bill already has drawn two

firm no's leaving mcconnell unable to lose any more support to get the 50 votes he needs. the chairman of the freedom caucus spoke with bloomberg today and said he thinks the senate bill could make it through the house. >> i think it has a real chance to happen. that is what we told the american people we were going to do. this is not full repeal. this is why we fought so hard and have the long debate. debate made it better. it is still a good step in the right direction. alisa: jordan also said he was concerned with some of the taxes still included in the bill. the white house says president trump spoke by phone with king salman of saudi arabia. he congratulated the president on the u.s.-led coalition's victory over islamic state in mosul. the leaders are also said to have discussed the diplomatic disputes with qatar. the u.k. acknowledged for the first time in writing today it will have to pay money to the european union when it withdraws from the bloc, seeking to tap down on a fight over the brexit bill.

speaking to bloomberg today, ireland's finance minister said the e.u. is not planning on punishing the u.k. pre-brexit. >> there is no intent whatsoever within the european union to be engaged in punishing the united kingdom. we respect the decision of the british people expressed through the referendum. the european union recognizes that, too. alisa: he also said both sides will engage in a process that will yield a figure at the end of it. the american doctor who specializes in conditions such as the one affecting charlie gard will travel to britain next week to assess the critically ill baby. the 11-month-old suffers from a rare genetic disease that has left him brain-damaged and unable to breathe on his own. his parents have been fighting to take him to the u.s. for

treatment. after much legal wrangling, the doctor has decided to go to them to examine the child. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am alisa parenti and this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. let's return to a top story we are watching. sprint is seeking new investments and reaching out to high-profile names. chairman masayoshi son held talks with warren buffett and john malone about investing. shares of sprint rose 4% in friday's trading session after details warren buffett could invest as much as $20 billion. we talked about these stories with tom giles and eric newcomer. take a listen. >> this is a company that is losing money. it has slipped to fourth place in the ranking of u.s. wireless

companies behind t-mobile. now it has verizon, at&t, and t-mobile ahead of it. it has not gone well. masa has been looking for a partner, looking for a way to work on sprint and make it a better investment, find a merger partner. t-mobile is often mentioned. we have seen t-mobile shares up on the news. this is a way of infusing some capital into the company, giving it more firepower, and maybe making it a more attractive partner for t-mobile. emily: t-mobile and sprint try to merge before and it did not work out as far as regulators were concerned. >> that is right. the sense is we do not think the trump administration is going to be real hard on mergers, although the verdict is out on at&t and time warner. emily: let's talk about snap. second downgrade in a week. snap shares not feeling it. >> underwriters downgrading

them, morgan stanley and cohen. stock was falling to 1530 last i looked. 1524 being the lowest it hit. well below the ipo price. it has been punished. emily: $15.30 right now. >> competition from facebook. in a note, they expressed concerns about the monetization efforts you see at snap taking longer than expected to pan out. snap since the ipo has been a real storybook of overvalued companies. when they go public and get in the white-hot light of public scrutiny, not doing so well. emily: morgan stanley earlier this week talked about the fact the ad product had not evolved. investors were excited about the

proposition. facebook stepped up how they aggressive they were being. they copycatted snap features. i was speaking to dick costolo about this earlier this week. when he was twitter, he had to contend with facebook. take a listen to what he had to say about the prospect of snap. >> i think they will continue to show fascinating insights that will be copied by others. they will have to figure out how to uplink bigger players like facebook on the ad side. emily: very cautious about competition from facebook. what do you think? >> i think evan had this story we would be the product innovators in have to keep updating the app to keep ahead of facebook. that has not proven true yet. i think we need to see. facebook is a good copycatter and are not embarrassed to say

it. their stock price took an even bigger beating when they went public. you come out, you have a lot of shares tied up, there is a lot of anxiety, and your stock price takes a beating. it is not the first time we have seen it. it worked well for facebook. it did not work well for twitter. we will have to see. emily: uber backing out of the russian market. it will still have a stake in the company. the market leader in russia, basically the google of russia, essentially has won. tell us what happened. >> uber is ready for a profitability story. the losses in russia compared to china were not as big. it was not looking like either business was going to return much profit. the index was way ahead. it had like $1 billion in gross bookings compared to uber's $500 million. uber got more than one third of the company.

i think uber sees this is a good opportunity to step away from losses, have an upside in the russian market, and let a local leader run the business. emily: let's talk about the search for the uber c.e.o. there have been a lot of names thrown out. some people are not interested. some are not in the mix. what do we know? >> i have been skeptical of the names thrown out. marissa mayer and those names get thrown around. it does not seem they are truly in the mix. i think it is very likely like the airline industry, huge operations experience. there are a lot of names throughout. they will have to get -- travis is involved. he has to like the new person, presumably. it will be interesting to see how that process works out. >> you want somebody who knows how to deal with operations.

you want somebody who can deal with regulators. outside of silicon valley. tpg brought somebody onto the board who has this background in industries outside of silicon valley, outside the technology industry. emily: my conversation with tom giles and eric newcomer. now to a story we have been following. another lawsuit in a wave of allegations about the tech industry's hostility towards women. a former female employee of betterworks systems sued the start-up and three executives alleging sexual harassment, physical assault, and a work environment hostile to women. it involved inappropriate actions by the c.e.o. he is co-authoring a book. they declined to comment. coming up, game over for draftkings and fanduel and their

merger. you will hear from the c.e.o. on the next move in daily fantasy sports startups. this weekend, we will bring you our best interviews from the week including our wide-ranging conversation with dick costolo, now c.e.o. of the startup chorus. tune in saturday for the best of "bloomberg tech." this is bloomberg. ♪

emily: juicero says it is cutting 25% of its staff. the company came under scrutiny in april when bloomberg revealed the pack could be released by hand yielding almost the same amount of juice as the machine. as part of a change in strategy, the founder and former c.e.o. will no longer be involved in

daily operations but will keep a board seat. a game changer in daily fantasy sports. draftkings and fanduel called up the merger this week after opposition to the deal from the ftc. scarlet fu had a chance to talk to the draftkings c.e.o. and asked about the reasons to terminate their plan. >> it was not an easy decision. as we look at our current situation and the prospects in terms of cost, curing resources, and the likelihood of prevailing with the litigation, we thought it made sense to move on as separate companies. >> you mentioned the cost. how much have you spent on trying to get the merger through?

can you give us a sense on what the final bill might be? >> so far, it has been the millions. litigation is the most expensive thing. had we decided to continue to proceed and seen it through, it can you give us a sense on what would have been far more expensive than what we spent thus far. >> can you give us a sense on how the decision to terminate the agreement evolved? was it you who decided it or the c.e.o. of fanduel? >> it was much more of a mutual thing. it was not even just nigel and myself. we have a board and investors that weighed in. it is certainly a mixed bag. some people were in favor of continuing to try to pursue it. the overall general vibe on our end is we all thought it was the best thing to eventually move on. in talking to fanduel, i don't have as much insight into the dynamics of their board or shareholders. in talking to fanduel, it sounds like they arrived at a similar place. we talked about how this makes sense to manage.

we all decided we had to continue to run the process in parallel in case some thing changed. that is why you mentioned earlier we were filing briefs and pursuing that until the last minute. it was apparent in the last week or two that both of us wanted to figure out a way out. >> i asked because you are raising money throughout the merger process. draftkings was operating as if the merger was no guarantee. you talked about your financial performance in a statement you released. what is the key driver in the change in your financial position since the merger was announced initially? >> i think there have been two things. one is our business performance has continued to improve. we are now growing at almost 40% year over year and climbing up from the 20's last quarter. that continues to get better and better. we are expecting a really big nfl season. i think we will have enormous

growth and a lot of exciting promotions and new initiatives that we will be launching. secondly, we were able to bring on some great investment partners in a fundraising process we ran back in january. eldridge industries came in. we had investment from others like soros. we are very well-capitalized right now. we don't need money and do not need it for the foreseeable future, maybe ever. that was part of the decision as well as we look at our current situation and looking forward, we said we are in a good spot, we don't really need this merger anymore. >> you say you don't need money now. you and fanduel burned a lot of cash on marketing and advertising when you were independent companies, particularly in 2015. what did you learn from that ad spending war and how will you adjust your approach going forward as separate companies?

>> it is interesting because from a pure performance standpoint, it was a very successful time for us. we gained millions of new customers. we grew substantially. that year we group 400% or 500%. unfortunately, it attracted regulatory attention. i think there was burnout in general. we got feedback from customers even though it was effective acquiring new users some were growing tired of seeing that volume of advertising. i think we learned a lot about how to strike the right balance. you will certainly see increased advertising from us this year and going forward, but nothing at the level you saw in 2015. i don't think we will ever go back to that. >> is there still room for two separate companies in the online daily fantasy sports market? will one of you need to team up with another partner, a casino or media company? >> i believe there is room for more than two. i think this is an enormous market and only going to grow from here.

you are seeing other companies enter the space thinking the same thing. there is -- because of when there was the regulatory question, i think there was a pause in terms of interest from other companies coming in. but now you are seeing that reaccelerate again. i think there is plenty of room for many companies. for any technology company focused on entertainment and trying to earn the dollars for discretionary things, you have to constantly innovating and changing. 20 or 30 years ago, the companies on top of consumer tech today, many did not even exist. it is a constantly changing world. with technology, it is only going to increase. the intersection of sports and media as well as gaming, which is evolving as fast as anything, we are going to have to stay nimble and innovative. i think you will see a lot of

interesting things are less in the coming years. caroline: scarlet fu speaking with draftkings c.e.o. jason robbins. "game of thrones" is one of the most popular shows on the planet. can its success help hbo's streaming service? this is bloomberg. ♪

emily: the longtime amazon executive is departing the company after nearly two decades. as vice president, he oversaw the launch of two of the company's most popular devices. he confirmed the departure saying he retired from amazon and loved every minute. he will be replaced by tom taylor who has been running the payments and fulfillment business. season seven of "game of thrones" debuts on sunday. it is a massive hit for hbo. has it translated into subscriber growth for the streaming platform?

bloomberg reports 3.5 million people have signed up but it is not growing as fast as streaming competitors. paul joins us from new york. why? >> 3.5 million subscribers is a good number for hbo. hbo is one of the first streaming apps to come out media to compete against the netflix of the world. it is kind of blazing a new trail in terms of how many subscribers would sign up. 3.5 million is nowhere near the likes of other streaming players. i think what hbo is finding out is hbo is a viable product within the context of the overall hbo brand. if there is great programming on hbo,, hbo viewers want to view it anytime, anywhere.

and hbo now is one of several options hbo fans have to watch programming. as a standalone app, some of the growth was not as much as they thought initially. emily: is the content available on hbo now exactly what is available on regular hbo? might they consider exclusive content? >> the answer to that is yes. they were going to have a lot of original programming exclusively for hbo now. i think they have backed away from that a little bit, maybe in response to some of the slower growth numbers. i think now they are positioning hbo now as one piece of the hbo experience along with live viewing and playback you get with many pay-tv operators. hbo now is the third leg of that stool in terms of giving the hbo fans their content wherever they want it, whenever they wanted. emily: i'm watching these scenes and getting so excited.

it is pretty amazing how even in the seventh season there is so much anticipation around this series. does it all come down to having successful original content and having a major hit show? >> i think it does. hbo has had such a long track record with their original programming, starting with "sex and the city" and "the sopranos." "game of thrones" has reignited the creativity at hbo. i think it has raised its profile even more with consumers but also with their pay-tv partners, the cable companies, the satellite companies. those are the companies that really promote and sell hbo to their customer base. it is a lot easier to promote and sell hbo to cable subscribers when you have must-see television like "game

of thrones." emily: netflix is reporting results on monday. what are you expecting? >> another good quarter. stock is up 30% year to date. 60% over 12 months. the market continues to discount stronger. i think the key issue investors will be focusing on is international subscriber growth. that is where the growth for this company is going to come. the u.s. market is fairly saturated. growth rates have slowed in terms of new subscribers. investors have turned their view to international growth. emily: we have asked if the billions of dollars netflix is spending original content is going to pay off. do we have any more evidence that it has been worth it? >> i think most investors feel comfortable in a programming investment as long as subscriber growth continues to grow. the long-term liability for netflix is north of $14 billion. how do you pay for that programming liability?

you continue to grow subscribers. that grows your revenue and cash flow which pays for the programming. the top line of that story has to be subscriber growth. the company has pivoted away from the domestic u.s. market focusing on international growth. i think as long as that topline growth continues to grow, and as we see some newer markets go from loss-leading markets to profit markets, that will give investors comfort there will be long-term cash flow to support the growth of the company and programming liabilities. emily: paul sweeney, thank you. that does it for this edition of "bloomberg technology." i will be heading to aspen, colorado, on monday for the tech conference speaking to a great lineup of guests, including the chief operating officer of instagram.

"bloomberg tech" is live streaming on twitter. that is all for now. this is bloomberg. ♪

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