issa: i'm alissa parenti in washington, and you are watching "bloomberg technology." let's start with a check of your first word news. president trump joined south korea's president in calling for greater collective pressure on north korea. president trump: as the south korean people know so well, it is time to act with urgency and ith great determination. all nations must implement un security council regulations and cease trade and business entirely with north korea. >> it is election day for some n the u.s. as virginia chooses northham mocrat ralph

and republican gillespie for governor. in new jersey, republican lieutenant governor is challenging a former democrat to replace the outgoing governor, chris christie. in new york, bill de blasio is up against a republican hallenger. malliotakis. the pentagon has been aware for at least two decades about failures to give criminal history to the fbi. it includes information the air force did not report about the texas church shooter devan patrick kelley. -- devin patrick kelley. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. "bloomberg technology" is next.

cory: i'm cory johnson from new york. this is "bloomberg technology." coming up shares of snap are in freefall in after-hours trading after a crummy earnings report. we'll break it down. plus, alphabet's soup driving unit close to chauffeuring people in minivans without human backup drivers. we have a progress report from the ceo. congress continues to make the case for holding big tech more accountable. we will talk about the efforts to hold internet companies legally liable for the content on their platforms. but first in the lead. snap-on with disappointing results. the analysts are always wrong anyway, but the users numbers are really bad. daily average users, 170 million. less than the 180 million analyst estimates. like i said, they're always wrong. ad prices are looking weak. shares tumbling after the results. down in freefall 17%. decline. over 24% of them afloat were --

i was short. a lot of people were expecting this, but the only analyst we want to hear right here. good to see you as always. sorry to dis your analysts. look, analysts get these wrong. 24% of the flow was short going into the quarter. hese numbers are weak. >> in fairness, when you look at the color commentary around he headwinds in 3-q, the differ comp, you could have arrived at the numbers they posted, but with the street has once some benefit of the doubt in trying to give them some hope that engagement that some of the new features are going better, but i think the takeaway is when you look at the facebook google the -- -- duopoly, there is no silver bullet. cory: the daily users is a lot of people, but nothing compared

to twitter and an infinitesimal amount compared to facebook. which is relevant. it's a lot less than instagram and instagram stories. we don't get quarterly numbers or monthly numbers from instagram. last to report i think we had 300 million on instagram, using instagram stories. this 178 million users from a percentage effect, just 2.9% basis, a sequential it's not great. james: it is not great from about the same time, you have to think that they have so much opportunity to engage these users. they have all of these publishers trying to forge relationships with them. it is more raw content, and there is a discovery aspect that i think is not there with the ephamoral nature. it's not there with services. the biggest issue is that snap has all these users, all this engagement and i think they are their number one worst enemy. it's not facebook. it's not google. it's they are not capitalizing on the engagement and users they do have and i think you

can draw that same parallel to twitter. cory: they are losing money on every sale. they have negative gross margins. again, negative gross margins. not negative operating margins. negative gross margins. it costs them more to deliver dancing hotdogs than they get revenue from dancing hotdogs than staff, r&d, and their hosting cost which they break out. their hosting cost went way up again. james: look, there are areas of criticism that i give you credit for criticizing but on the hosting side, i don't think that's quite fair because, i mean -- corey: 88 cents -- ory: 88 cents.

james: the opportunities, the business skilled in the way it was supposed to, you would see much deeper leverage directory. cory: i wanted to start in the nba, but it did not work out that way. to your point, if the revenue was going, we would not be talking about this, but the rising cost per user, $1.18 per user, by my calculation. that number is way up from the .84 last time. there seems to be no scale to this business. once they got over 100 million users, you would think the cost would fall off and they can continue providing the service, but with the filters out there, it is costing them more to do it. james: there is no scale because the moderation and the growth curve is a lot steeper downward than you would like to see. $1.17 this39% from last year. quarter. that is a number that should be growing in the triple digits. some lower -- korey: 84 cents last year -- cory: 84 cents last year. 35% year over year. james: it is not great because you are so early in the growth curve. these numbers need to be posting at a bare minimum in the triple digit territory.

cory: when i try to say something nice. that is your duopoly thing. i have been thinking about the way i started my career in the magazine business. one of the claims to fame was -- i worked for this great guy that passed away yesterday, sadly. one of his claim to fame was putting out a 584 page issue of sports illustrated previewing the olympics. sports illustrated now no longer chock-full of ads. a tiny thing. ad dollars aren't going to magazines but they also aren't going to snap and twitter. they're going to facebook and google and it seems like facebook and google alone. james: i think of them taking the lion's share of the the apple i think zor effect is potentially shrinking the overall advertising because you are not seeing the big brands advertising as much as they need to because they go to the private label. you think about the three biggest advertisers are finance, auto, and consumer packaged goods. consumer packaged goods is going private label. auto is going to self-driving and then financial services is being this intermediate as

well. if you look at the biggest ategories changing structurally, the pie is shrinking. cory: talk about shooting themselves in their own foot. they cannot get around the problems with the android. most smartphones in the world are android phones, and they don't have -- they have technological problems, to put it kindly, providing snapchat on those phones. james: look, almost all the problems i would argue are self-inflicted. like the android issue. that should be done. they have a great search functionality but people don't know about it. the maps feature i think is very interesting but people don't know about it. maybe this new ad -- this new app format that they're rolling out will start to fix a lot of these things because their strength aren't being showcase and people don't know about them. cory: the last one i will tell out there.

for all the fawning press they got over this stupid glasses, exactly my point, who would not want that besides you? $40 million whiteoff in the quarter for those dallases. $40 million of worthless inventory that i think anyone could have probably predicted. except for you. do you really wearjames: i bought those for those? research purposes, but it is actually quite entertaining to use the whole circle or format -- circular format. if they capitalize on that, then maybe there's an opportunity there. the resources weren't put behind it in the way they needed to be. cory: always great analysis, great work. they're lucky to have you. james: thank you. cory: coming up, alphabet taking over in the driving space. we will hear from john krafcik. this is bloomberg.

cory: did you see what happened to shares of blue apron today? the stock was down more than 20% today, hit a record low after the ceo talked to the investor conference and said there were concerns about the profit margins at their newest fulfillment center. blue apron report analyst ross sandler downgraded the stock to three bucks.

blue apron having all kinds of problems out of the kitchen. self-driving car units have been making progress the last few years. hit a new milestone, waymo has announced they will art shoforing -- start chofering people in minivans without the safety drivers. the staffers who are there to make sure nothing goes wrong. they are testing out the actual autonomous service in phoenix. mark sat down with the waymo c.e.o. at the lisbon summit with john krafcik and they talked about the progress of tech driving tech. >> we have been at this a very long time. it has been more than eight years working on fully self driving cars. e learned that experience is the best feature. over those eight years, we have driven 3.5 million miles autonomously. across more than 20 u.s. cities. we've been learning an awful lot as you know in the virtual world where we've now driven over 2.5 billion miles just last year. and now we are to the point

where we are driving really 10,000 miles on a daily basis autonomously in the cities in which we are testing and 10 million miles every day representing driving of 25,000 cars every hour of every day. we got it down to the point of confidence. that confidence allowed us to go forward internally with what we just showed the world today in phoenix, arizona. >> you have had success with your volunteers in phoenix for almost five years now. talk to me how that program is going. what are participants like? what are the major lessons you have taken away? john: yeah. we started the program earlier this year in the spring. the first signal that we had something special was the overwhelming demand. we talked about the possibility that these folks can help define the future of mobility. we had 10,000 applications to join the program within the first play for hours.

-- first 24 hours. right now we are in this position where there's a lot more demand for seats in our cars than we can actually provide, which isn't a bad problem to have, but wern we're learning from these guys, right. we're learning the intricacies of pickups and drop-offs. they have helped us refine that in car user interface and what we share with the users on the screen. they have helped us determine what the best way is to alert them to the location of the start button, for example, in the roof pod. those sorts of things just invaluable pieces of knowledge for our project and for the engineers working at waymo. mark: you said the commercial service is coming soon. it will take the shape of a ride hailing with a mobile app. it sounds like you are not at the onset working with lyft, any reason for not working with lyft? john: we have a lot of partners we are working with in the space. you mentioned, lyft, fca, autonation, and avis to help us with

maintenance and fleet management and those kinds of things. we will share more about what we are doing with our partner lyft going forward. we we talked about is we will help each other with the launch of new products. stay tuned for details on that one. mark: ok. you started testing vehicles recently in michigan to deal with snowy weather. what is the next market? will it be cities like phoenix? good weather or will you take ore chag areas next? -- challenging areas next? john: well, phoenix is a big place. there is a lot of interesting and very challenging parts of phoenix that we will be driving and including the downtown area as we roll out our technology, but i think it's a good bet to look at the places we are testing right now and imagine those will be likely the next candidates for us to roll out truly driverless capability. mark: something about a truly driverless that we talked about in the past is you are taking the driver out of the front seat. companies like uber and lyft employ a lot of drivers.

what do you think of the impact on the jobs for driverless cars and what responsibility will waymo play there? john: i think it is something all of us in the space need to think deeply about for sure. and i guess a couple of things to that point. first is, we're adding a lot of jobs as we're developing this technology. there are a lot of folks who we need both with our partners but also at avis to -- and at waymo to maintain these vehicles, to work on our high technology and the cameras and the radars. so there will be a lot of skilled trade positions available at companies like waymo in the future. the other thing to keep in mind is that for the most part, the people who are using our technology right now in arizona are replacing personally driven miles anyway. the great bulk of the miles we will be driving as waymo, the driver, will be replacing miles that folks like us would

have driven otherwise. mark: talk a little bit -- you mentioned you are reimagining what the inside of the car will look like. is that the case? these vehicles will not necessarily look like they do today a few years from now? john: well, just about every car that has ever been put out to the world has been primarily designed for the driver, right, at the primary focal point. it really does open up a lot of interesting possibilities when you imagine no specific driver other than waymo is the driver. no human driver. we have taken our first shot at that with our firefight prototype. going forward, yeah, mark, we can imagine a lot of really interesting possibilities as we expand, and i mean the collective we, all of us working in the space. as we expand to provide more applications and use cases for this technology, you can imagine the vehicles becoming more specialized.

imagine a vehicle that might be perfect for just one person. another vehicle might be perfect for a larger group of folks. some might be designed with sleeping or napping in mind. some might be food related cars you take on your way to a venue. possibilities there truly endless in the future going forward. cory: that was waymo ceo john krafcik talking to mark bergen. coming up, investors left $1 billion in enters. if you space phase, will. what jeff bezos is funding of blue origin is different. we will bring you the details on that, next. this is bloomberg. ♪

cory: well, the private race into space is heating up, but he billionaires on the mission are in some different routes. all of the spaceships will go straight up. we know that. jeff bezos's sold $4 billion in stock in amazon and is using most of that money to personally support his space company, blue origin. different business model from what elon musk is trying at space x or richard branson at virgin galactic. they would have taken outside move in their to space business quickly and commercialize the business. do you live here now? >> i do now. cory: i have not seen you lately. this is really interesting that jeff bezos, who has not sold

stock in amazon for most of the time he has run amazon, which is why he is one of the richest men in the world because it is the value of the stock that gets him that way,selling stock to own a is now different enterprise. >> that points to blue origin is his absolute passion project. he is in this unique position even more so than elon musk. he can basically go, i want complete control over this, and the way you do that is to not have outside investors and also not chasing revenue out of the start. cory: in the case of richard branson anyone musk, they are cumulative their fortunes. -- accumulated their fortunes. with all three characters they have accumulated their for turns in different ways. jeff bezos started a hedge fund business but made his money at amazon by owning and keeping his amazon shares. elon musk selling shares in money-losing businesses long before they had any hope of uccess, whether it was tesla

or spacex or paypal even when he worked there. that was not yet a profitable business when he got out. he and community losses for all of the businesses, enormous. richard branson sold all leases of businesses like virgin america or other things, but it seems to follow the philosophy of bringing outside contributors to the businesses and bezos going it alone. tom: and i think part of it is bezos is in a better position than anyone else because of the funding. amazon stock is at an absolute tear. even though he is selling a billion dollars worth of stock, that is a small proportion of his whole holdings. a stock was on the mock. tom: the interesting thing is what elon musk is doing. when we first started looking at the story, is he pledging shares to support spacex? he is using shares to support the city before he brought in tesla. it's incredible if you think spacex, because they managed to build his business, not a sinkhole of money. apart from perhaps outside investors.

cory: maybe it's my obsession as a former hedge fund manager, stock if you locked up shares, which raises the cost of shortselling, but also some costs to cover. tom: that is getting very technical for me. cory: a huge short interest in tesla. someone is getting paid to hold the stock. we don't know if musk is getting paid or not. he hasn't said anything about it. is an interesting thing. how far along are these guys in their efforts? it seems they are all making very great progress in their efforts. tom: i think so. spacex is an operational business for the last 10 years at least. blue origin is looking a lot of progress. what they are not tried to do is get customers yet. maybe next year they might send tourists to space. spacex is that neither leader in trying to commercialize it. out of choice, blue origin is pretty much like in stealth mode and doing the same thing. cory: richard branson is in a great because he wants to put

his mother, who is 93 years old, on the first flight. his race is real too because he wants to do that and he might get in the flight himself. tom: i think he said he will be certainly among those customers. maybe next year might be the time. ory: and not unlike tesla, hey managed to secure a lot of that business with big deposits from some of those future astronauts if you will. tom: yes, it is enormously popular. just members of the public putting down hundreds of thousands of dollars. with tesla's deposits for uture models, they have been using that to fund the operation up and running. cory: i checked, and richard branson's mother is in fact 93. good to see you. thank you so much. coming up, big tech companies have long used the 1996 law to shield themselves from what

their users post online, but that could change if some people in congress have their way. we will talk about that story, next. sfu like bloomberg news, check it out, check out my show on the radio, "bloomberg markets," on sirius xm. this is bloomberg. ♪

alisa: you are watching bloomberg. well, trump has asked north korea not to underestimate the united states. he called on all nations to deny aid and assistance to pyongyang, to choke off the rogue regime, saying it was a matter of conscience for the world to stand together against the nuclear threat. president trump: today i hope i speak for not only our countries but for all civilized nations when i say to the north, do not underestimate us. and do not try us. we will defend our common security.

our shared prosperity and our sacred liberty. >> saudi arabia says it has unfrozen the bank accounts of individuals they suspect of corruption and not those of the companies they own or manage. despite arrest in the kingdom, against one of the world's richest men. reverberated across board rooms both regionally and globally but the united states has demonstrated further support for the saudi government's further actions. >> we continue to encourage saudi authorities to pursue the prosecution of people they believe to have been corrupt officials. we expect them to do it in a fair and transparent manner. we call on the government of saudi arabia to do that. >> and snapchat's parent company plunged in new york trade after missing revenue and user estimates last quarter. the tech firm now says it will redesign its photo and video sharing app to make it easier to use in an attempt to broaden

its audience. let's get a pulse check on how asian markets are fairing mid session or late session in some of these markets. you are seeing upside from the big stocks coming through in china on the lunch break. up by .8%. of course, we had that trade coming through. showing that chinese, ports continue to hold up in october. exports were up by 6.9% in dollar terms in october from a year earlier. imports up by 17 points, 2%. elsewhere you are seeing the nikkei index retreating from those 1992 highs, down by a third of 1%. hong kong being lifted by the big surge we have been coming of the ebook. having a look at the currency markets, of course, we have seen a bit of dollar weakness as we see these concerns about the tax cuts in the u.s. you have the japan yen there, firmer by .2% against the dollars. a little bit mix coming through

in the commodities markets. copper in shanghai up. aluminum is down 1.4%. that's a check of this wednesday here in asia. you are watching bloomberg. ♪ cory: this is bloomberg technology. for years a crack on a big check and a wall called the 1996 communications decency act kept internet companies from being held legally liable of what their users post on the websites but that may be about to change. check out what dianne feinstein said. senator feinstein: you created these platforms and now they are being misused and you have to be the ones to do something about it. cory: talking about the existential threat is josh. josh, good to see you.

this is a big deal. this is seen as a forward-looking thing saying, let's have the same laws as publishers. let's open up this world so people can -- companies are responsible and you can let this thing flourish, the internet flourish. josh: yeah, absolutely. when you hear senator feinstein saying things like you're responsible for this content, that's actually not been the ase up until this point. and if we see action it could change the economy of the nternet. cory: what could change and what could happen? josh: the problem being responsible for content is there's too much content for them to watch as it goes up. so it would really be a policing nightmare. the reason the senators are bringing this up, obviously, has to do with the questions bout russian interference.

cory: russian interference in the election, no question about it. i would disagree with that statement, they companies can afford it. fates book and google has to monitor onwhich songs are being used, and youtube, they pay rights to the song owners. so someone is managing those things. but it might hurt small companies who are lacking resources. google and facebook are not lacking resources. in any way. smaller companies and startup companies are. josh: right, that's always the tension in these tech policy questions where fwoogle and facebook are in good position to handle any increases in regulatory cost but tech as a whole would be in a much more complicated position. we will see exactly how this plays out. battle in this had nothing to do with the russian interference. it has come via a sex trafficking law. advocates for sex trafficking victims want a law thateasier to go after platforms makes it that enable sex trafficking. cory: then we have the issue of -- and there are some platforms

that have targeted them. dark ve the issue of the web, everything from pirate robbers to all sorts of illegal activities, guns and human trafficking, drugs, and beyond. josh: yeah, absolutely. and so what happened this week -- or actually last week, was that the internet association, the trade group for the big tech companies, dropped its opposition to this bill that would put more of an onus on tech platforms to watch for sex trafficking. cory: why? just for the sex trafficking? josh: just for the sex trafficking part of it. it's largely interpreted as just the general atmosphere has turned against tech. and they've really been fighting that bill hard and thought maybe this isn't the hill we want to die on. cory: as we think what happened with the russian -- the fake news, where they were -- where russians -- from what we understand and their agents,

creatively figured out the things that would really push buttons in the u.s. election and cause chaos and lead people to vote with their worst intentions and bring people to do that. the other thing that happened is people retweeted that stuff. initially might not have been seen by other -- so many people. tell someone you were retweeting fake news during the election or putting this thing on facebook so people would have the responsibility but it seems like the internet companies have been reluctant to talk about the ways their services worked to amplify news and amplify ideas. josh: yeah, absolutely. they don't want to claim responsibility for what's going on in the platform. they would really like this to be seen as a conversation we are facilitating, have at it. we will provide the tools behind the scenes. cory: and, again, the efforts -- it seems like the information has come out, particularly facebook in drips

and drabs, where only a certain amount of people saw these and the number got bigger. they wouldn't share the content for a long time saying they couldn't but eventually they could but it seemed like they didn't want to talk about how their service worked. again, i think people who retweeted this stuff or reposted this stuff bear some responsibility. i am sure facebook could, if they know how many impressions were garnered then they would know who is doing this. josh: you kind of have to wonder if they were going to have this conversation maybe it would have been better to just put everything on the table at first, take your hit and have a conversation about it. instead, we have had the conversation over and over with each consecutive revelation. cory: we have another election day in the u.s. not as big a deal as we will have with a congressional election in a year. these issues are not going away. josh, thank you very much. we will hear from arm holdings ceo's simon segars about the m&a landscape and a microchip market.

that's next. this is bloomberg. ♪

cory: well, back in july, british chipmaker arm holdings was purchased by softbank for $32 billion. a big price, but arm holdings can be seen in much of the market. the ceo joined us from the web the summit in lisbon to talk about the relationship with softbank and the m&a in the chip business. simon: this is a huge deal for the industry, consolidation has been going on for quite some time, driven by cost pressures, driven by therd intensity of producing advanced devices, and this will be a huge transformational deal for the industry. >> do you think it will get past the regulators?

simon: i don't think there's really my place to comment on it. there's obviously a lot of complexity to it and it has a long way to go. that's something really up for them to work out twoon them. -- between them. >> talk to us about softbank in your changing relationship. you are on the board of directors. would you consider yourself till a u.k. company? simon: arm is a global company, we're headquartered in the u.k. and the largest portion of our employees are based in the u.k. we have 500,000 people in the company which is spread around the world and that's because the industry is spread all around the world so we have people in places where they can work with our partners closely in the right time zones speaking the right language and we have engineeringrd centers around the world where we can attract the best talent. so we're a global company, but we're headquartered in the u.k. i would have said the ack is i

wigs -- before the acquisition by softbank -- it is still true today. >> will it be true in the next few months? it looks like the talks are failing right now. i now you have spoken in the past about your concerns for a hard brexit. now the u.s. is talking about lowering tax rates and the u.k. is mired in brexit talks, there must be thinking going on about moving your domicile at least. simon: we have looked at the various issues that affect us as a business. primarily for us it's about being to attract talent. the u.k. is our headquarters, a large number of our employees are there. we have benefited from employing people across mainland europe. our expectation is that it will get harder as a result of brexit. but we are not planning on making fundamental shifts in moving out of the u.k. moving any of our i.p. out of the u.k. we have done analysis on that. did not look like they would be real benefit to that. i think we will stay roughly in

the shape we are now. >> a.i. and web security, big theme at the summit and i know you do see risks to businesses posed by artificial intelligence. hat are those risks? simon: really, we are looking at a world of opportunity that comes from a.i. we are heading into a world where sensors distributed from chips will be everywhere and anywhere. they will generate a massive amount of data. with computing spread through networks, computing in the cloud, computing in the edge, there is ability to analyze that and gain real insight and that leads us to the world of a.i. i think there's big opportunities there. but with billions of more and trillions maybe of connected devices, there are some real potential security risks there. i think it's incumbent across the whole industry to really think about that, think how the

world of computing will be different in the future from what it's been in the past and that we need to rethink security models because the threats could grow exponentially and the costs associated with it could grow exponentially as well. >> simon, it sounds like the area that's what you will be looking at acquisition targets. obviously you have south bank backing so you have wider purse strings. give us an idea where you're looking for targets? history roughout our we have looked at acquisition as a way of accelerating our strategy. we are looking at this world of super distributed computing. we are looking at how we manage these tiny computers that will make up the internet of things. and we are looking at acquisitions that will help us deliver a platform, so that remotely distributed devices can be managed through the lifeline and have their security observed and monitored, and actions can be taken if there is a security issue. over the last year, we have acquired four companies.

we brought in technology that allowed us to develop connectivity to the internet of things, put identities on chips, all of which are helping solve security problems. there are targets that will help us deliver on this technology road map, and we will look to bring them in-house as well. >> do you have a blank check from softbank? there are highly accredited company, they are not afraid of spending money. isn't afraid of spending that money. what sort of sum could you spend? i mean, is there a big deal in the offing? softbank to do that, a 10 billion pound, 20 billion pound, 30 billion pound deal? simon: we really don't talk about it in terms of magnitude. arm has it as arm as a stand-alone company has a pretty reasonable amount of cash on the balance sheet, over one

one billion pounds. we have always had the ability to raise more, if we wanted to. from all my dialogue, it is about moving fast. it is not being constrained and if there is something big we wanted to do i'm pretty sure we would find a way to finance that. cory: that was simon segars, arm holdings ceo. earlier today on bloomberg tv. well, cooling up, draftkings moving beyond betting platforms, and into deals of streaming big-time sports. that story's next. this is bloomberg. ♪

cory: sports betting giant draftkings will stream top-level european basketball this winter. this move brings them in competition with yahoo!, twitter, and smaller companies, all vying for sports fans. the c.e.o. talks to us from the lisbon summit. he sees big money in transforming draftkings into a

one-stop shop for sports. >> to really anticipate what the customer wants and provided -- provide it forwe hear from our customers they them. would like to experience everything in one place, but it is hard for them to track down where they watch the games, play the fantasy sports games. having it in one place makes it easier. the idea here is, look, we have a sport many of you are familiar with but have not played before. we have millions of customers and many play nba basketball on draftkings but many don't play basketball sports i am aware on the fantasy side and if they do it's quite rare. there's no reason why. the biggest reason is they can't watch the game so easily. hopefully this will fix that and get millions playing on raftkings play euroleague. >> do think it will bring in a stream of new users? in the past, there was a focus on advertising. you said there do not need to be that focus anymore. is this diversifying the offering a way to bring in new users?

jason: it is possible. the main idea is to get existing users to adopt the game and play it. there may be a benefit to new users coming in. the thing is, in order to play -- you can watch one game for free every week. but in order to watch more games you have to be playing on draftkings so it's really metropolitan for the people playing in the fantasy sports games and hopefully that will get some new people try it out that hadn't before. >> is it your expectation there will be a significant boost to revenue or this is just an early stage of the project at the moment? jason: i think it's an early stage and what we love about euroleague is they love to experiment. they wanted to try something with a company that's looking to blaze new trails. i think when you look where the future is going to be in terms of sport, everyone's already streaming. everyone's already playing fantasy sports. why not have them in the same place? and i think in general all the experiences related to media and gaming will be in the same place and more seamlessly accessible to customers. we're trying to prove that out and show it actually enhances the customer experience, enincreases engagement, revenue

and participation in sport. i think if we demonstrate that there will be new sport that will be eager. >> that's my next question. if the success of basketball, e there other sports perhaps outside the u.s. to bring to your audience? jason: i think there are many lesion internationally that would be interesting gaining a u.s. audience. you know, football, obviously, as we call in the u.s., soccer, is the most popular sport in the world. in the u.s. many of the leagues that's well-known in europe people don't follow as much. part of it is accessibility of the game. i think in the u.s. there are many broadcasters that have invested tremendous amounts of rights and they are creating subscriptions and streaming packages and they are looking at ways to distribute the produck. we have the customers they want. hopefully they'll partner with us. if we prove out it works, i think anyone that owns the right, whether it's the leagues themselves or those invested buying the streaming rights they will be interested in working with us. >> this seems to be one example

of draftkings' recent sort of commitment to new media, original content beyond the existing fantasy sports platform and i know a lot of that recently is focused on talent hiring. could we see some more partnerships with content creators, with perhaps nonfantasy sport platforms to build up that new media offering, that original content offering? jason: absolutely. i think that is going to be a big focus for us. you will see more partnerships, content creators. also those who own content rights. you know, there's this -- it's inarguable there is a link between fantasy sports and content consumption. every stat you see is fantasy sports players want to consume a lot of sports content. i think it stands to reason if you make it easier and more accessible for them they'll want even more of it. cory: and jason robins talked to bloomberg about his company's plans for global expansion? jason: more into europe.

australia is an interesting market we spent time focused on. i think that is one you will see us. we started primarily looking at asia and latin america. we are in the early stages. today we've done more work on europe and australia. that's interesting. africa, there are fantasy sports being played throughout many parts of africa. it's a worldwide phenomenon. it's a matter which countries we will go into first. >> a part of accessing new markets is, of course, understanding and complying with regulation. and trying to push it forward in terms of consumer protections. how difficult is it to do that? not just a push for regulations, but when you look at new markets, understand it, comply with it, and present a business case for going there, with that in mind? jason: well, you know, it just

takes time. what we found, most of the regulators around the world have been very much willing to look at this in a different way and say, what does the customer want and how do we get it to them? people around the world want to play fantasy sports, whether they call them manager games, they want to play them. more recently you mentioned the maltese license in january. that was a great example where we worked with a regulator to create a completely new set of licensing. never had license controlled skilled games before and dozens of operators within weeks apply for those licenses. i think it showed it was a thing where there was pent up need for. it was great and that allowed through parts of the e.u. >> as part of that initiative you have a new officer, who had a lot of experience in his previous role. when you hired him, you said part of it was about breaking into new markets. what was the thinking about needing to bring someone like that in? jason: well, if you look at what he and dish did, they are

doing the same thing we tried to do. they created new industries that came with new regulations, they had to work with new lawmakers. they had to focus on, how do i both innovate at the same time and educate lawmakers so that innovation is possible? and i love the way and i think all great people in this space look at it. they say, how do we allow a business to innovate, how do we create a path to do that? he's proven it. he's done it for decades at dish. i think he's pretty excited about and we're excited about have him do it at draftkings. cory: that was jason robins talking to bloomberg at the web summit in lisbon. that does it for this edition of "bloomberg technology." we are streaming on twitter right now. "bloomberg tech," 5:00 on the east coast, 2:00 in the west coast. ♪

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