alisa: i'm alisa parenti in washington. you are watching "bloomberg technology." the senate republican tax proposal set to be marked up on monday would cost $516 billion over a decade. according to the tax foundation, the plan would boost gdp to 3.7% in the long term and raise wages nearly 3%. the study also found the nation's highest earners would benefit the most on a static basis. an opinion poll finds alabama gop candidate roy moore tied with democratic rival doug jones. the poll also finds 54% of people surveyed do not think roy moore should drop out. he allegedly initiated a sexual

encounter with a 15-year-old girl in 2012. -- in the 1970's. abner gomez was criticized for taking a vacation less than a month after hurricane maria slammed puerto rico. his resignation came a day after demands by the governor that cabinet members submit unsigned letters of resignation and devote themselves completely to recovery efforts. a potential formal meeting between vladimir putin and donald trump at the asia-pacific summit was scratched. the white house cited a scheduling conflict. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪

emily: i am emily chang and this is "bloomberg technology." alibaba singles' day clock $8.6 million in just an hour. how china's one-day shopping bonanza stacked up against america's. plus, a touch of ai. short form video platform has agreed to a merger. how it opens up markets around the world. and another dent in uber's london operations. what a judge's decision in favor of drivers means. first, to our lead. alibaba singles' day is underway. analysts expect another record for china's biggest shopping bonanza, which morphs u.s.

events like black friday and cyber monday. shoppers from at least 190 countries and regions swarm the e-commerce giant and servers could clock up to 175,000 transactions per second during peak activity. we spoke with alibaba president mike evans and asked about boosting efficiency this year. >> this year's singles' day is boosting efficiency by implementing a whole lot of new technologies and capabilities as part of our retail strategy. the mom-and-pop stores you just refer to, the small stores that typically have access in a very small local market. today with the capability of technology and the digital invasion, we are expanding their capability to sell products to a much larger group of consumers. >> alibaba had invested billions into online retail several years before amazon announced its acquisition of whole foods. is china ahead of the u.s. when

it comes to emerging online and off-line retail? >> we do not necessarily look at it as a competition between the u.s. and china, but the work has been done in the integration of online and off-line, not just in terms of technology integration , but the data and efficiencies for brands and consumer experience through personalization has been enormous. we see the impact of it in our day to day business. we are going to see the impact of it today where many of the new retail initiatives are being rolled out. we believe this is the retail of the future, not just in china but all over the world. >> it has been almost a year that jack ma told donald trump that alibaba will help spur job one million jobs in the u.s. what is the update on that? is there a tally on how many jobs alibaba has helped create?

>> the update is we had a fantastic event in detroit for , farmers 3000 sme's and entrepreneurs. many are participating today in 11/11, selling their wares for chineseese -- to consumers. we have literally tons of fresh produce. apples to blueberries to fresh vegetables also being sold as part of this day, so a great deal of work has been done and we are making good progress. >> are you able to say just how much more u.s. participants are joining the platform? >> we are not going to disclose look atmbers, the web the contribution they are making to the process, not just the you -- the united states

but canada and around the world, are becoming a seriously important factor in the growth of our business. >> bloomberg news reported the chinese government is considering taking 1% stakes in some of china's biggest tech companies. how would this potential oversight impact the company? >> first of all, it has not happened, so we cannot speculate on what would happen. but i can tell you this, the government seems to be most interested in media companies and we are not a media company. we are a massive e-commerce payments and cloud computing company. >> chinese regulators have also been making outbound investment more difficult for chinese companies at the same time the trump administration is making it difficult for foreign investors to make investments in strategic industries. alibaba'ss impacting u.s. investment strategy? >> it is not really impacting our u.s. investment strategy at all.

we are not really focused in the u.s. to make advancements in our e-commerce business. our investments are in platform technology to allow brands, retailers, and small businesses to capture the can -- the china consumer opportunity. so trade is really moving in the other direction. >> alibaba's international revenue had triple digit growth last year mainly driven by southeast asia. what is the next market you are preparing for? >> when we think about our globalization strategy, it really breaks into two pieces. the consumer component, which is really targeted at 5 billion to 7 billion people that live in emerging markets around the world merging into the middle class and who will be the big consumers of the future. so when we think about investments and think about our strategy in that part of the world, look there for the next steps. on the product side, most of the best products, highest quality products in the world come from the developed markets of the world. our partnerships and association

s and the work we do with retailers and brands and small businesses will be providing great products to those consumers. emily: that was selina wang with alibaba president mike evans. in a new company twist that pits jack dorsey against himself, square has surpassed twitter in market value for the first time. dorsey is ceo at square and twitter. he helped found both companies. twitter shares have lost about a quarter of their value over the last two years. coming up, alibaba is in listing -- is in listing high-tech solutions and old-school brick and mortar stores. how moving the online experience into the off-line world will be the future of retail. and we are live streaming on twitter. check us out. this is bloomberg. ♪

♪ emily: the two biggest apps for uber-like truck services in china are in talks to merge. this is according to people familiar with the matter. they have had a frosty relationship the past with the ies trading accusations about harassment that have even prompted police investigations. a merger would be the latest example of chinese tech startups getting together. alibaba's singles' day is well underway, but there's growing concern consumers could be facing fatigue from the annual 24-hour online flash

sale. to combat this, alibaba is testing futuristic pop-up stores building on the idea of new retail. hans, i want to start with you. you were an early investor in alibaba. you have seen alibaba grow by leaps and bounds, singles' day growing incredibly over the years. are you seeing any signs of singles' day fatigue? not., we're we have been fortunate to be an investor in alibaba since 2003. they continue to innovate. we look at the first singles' day sales in 2013, and it was only about $5.7 billion. the transaction this year could $13 billion. a massive scale you have seen is already quite unprecedented. on top of that, alibaba started

with new retail combining online and off-line, trying new technology, it just adds more excitement every year. bob, what do you think about this new retail trend marrying the online experience with the experience in the physical world? is that the only thing that will get shoppers to go out in the real world? >> i don't think so, but i think it is an important way to drive those kinds of sales. the traditional retail environment clearly is challenged. we have seen what amazon has done in the u.s., what alibaba has done in china. and other equivalents around the world. people love the convenience of saying i want to get this and they just get it, but there's a certain physicality of experience that people still like to have, so i think there is a need to drive people to retail to experience things in a different way. ar and vr are an interesting way to do that and frankly a good way to expose people to that technology, but in generally i think it will be more baby

steps, because i think it will take people a while to understand what these are, and if there are benefits, or a unique thing you do want to twice. emily: we just looked at video of a customer putting makeup on herself in front of a digital mirror in a store. what kind of experiences do you think will be compelling enough to truly transform the off-line experience? hans: at the end of the day, something that is functional and offers great value for the money you pay will be the number one reason why consumers in china or elsewhere, quite frankly, will want to shop in the new retail experience they are talking about. stores, you can buy a lobster from australia that in an off-line supermarket would cost you $100 u.s. you can do that for only 100 renminbi at the same quality. the reason that is possible is because alibaba has so much scale and can cut out the

middleman and deal directly with the source and lower the cost for consumers to shop. inside the store, you can scan any product and figure out the story and information behind each product, which makes shopping more fun. once you order, it can be delivered to your house or you can pick up in the store or actually consume in the store, have them cook for you. the choices people have and the ways they want to consume them, it is completely up to them now. experiencemaking the more seamless and more free for users to choose. emily: bob, there is a sense that alibaba may be beating amazon in the off-line world. we are seeing amazon with whole having their own brick-and-mortar initiatives. do you think that alibaba is ahead in that respect? bob: they are willing to

experiment. in general what you see in china is more experimentation with different models of retail. the notion of qr codes never really caught on in the u.s. people in the u.s. would not go to a store like that and expect to buy a lobster. we just would not do that. just a totally different cultural difference, but we have to think about the fact that each company has to react to the environment they are in. they are going to do these things. i think amazon clearly does recognize that they do need to have a physical presence, not only obviously with bookstores, ironically, but of course, with whole foods and these other kinds of brick-and-mortar stores. because again, there is that physical experience and people do still want to go out on certain occasions and go shopping and i don't think that is ever going to go away. emily: hans, how would you compare alibaba singles' day to prime day and the initiative that amazon has? gos: if you look at amazon as an example, is an extremely

interesting idea thinking of amazon as an example. with a digital camera, you will be able to tell who you are, but there are limitations in that it is hard to scan more than 20 people at the same time. china, in the meantime, uses something as simple as qr codes and enables hundreds of millions of people to have access to services that were not possible before. so how to combine tech in a way that makes it accessible to the mass market is increasingly important. in that area, i think alibaba is ahead of most of the giants in the u.s.. i think what a lot of people don't realize is that in the u.s., most of this model surrounds advertising, so the entire engine behind that is to monetize that well. in china, it is a different environment. eunice based on a transaction engine. the experience that tencent and alibaba have built in new retail is something you do not see in many parts of the world. this is why when mike evans said the new retail shopping would

not only be popular in china but the rest of the world, what we will see over the next few years is tencent and alibaba exploding -- expanding the model beyond china and that is extremely exciting. 11/11 bob, do you see expanding into other countries? bob: i think it would be a challenge especially in the western world because we have to remember a lot of this is based around timing of the year. 11/11 is way too close to traditional western holiday shopping because of christmas, whereas chinese new year is not until february, typically, so it is three months away. it is a big enough gap that you can get away with it. amazon prime day is an interesting thing. maybe we will see an 11/11-type prime day and i think there is an opportunity to do things there, but i do not see the whole concept transferring at all, especially the way they do it in china. emily: bob, you are sticking with me, as well as hans,

speaking with both of you after the quick break. coming up, we are talking about the hit social media company that turns users into hit social media stars. it just got bought. we look at the $800 million deal next. this is bloomberg. ♪

♪ emily: facebook has set its sights on yelp. the company relaunched its standalone offense app. it combines events and permanent places to a single search engine powered by the social network 's 70 million business pages. this is not the first time facebook has tried to imitate the success of other platforms. it created facebook at work. that was meant to mirror slack, and a craig flick -- craigslist like service. video app musical.ly has been acquired, representing the biggest venture abroad for the

chinese start of valued at $20 billion. it's best known for a mobile news app with 120 million readers and viewers, which pairs well with musical.ly's 100 million users, which has been increasingly popular among american teenagers since 2016. our guests are still with us. hans, this is good news for you, an early investor in musical.ly. talk about the motivation behind the deal. hans: as you know, i am a board member of musical.ly. we call it series b, and series musical.ly. while i cannot comment on the price structure of the deal, and after all, the deal was just signed. it is not closed yet. i think the synergy between the companies is very interesting. they put up a press release 12 hours again -- hours ago.

they clearly indicated that musical.ly is the first chinese team to build a mainstream app accepted in the u.s. and western world. they have a strong recommendation engine and algorithm. it's a very natural fit both from a product capability standpoint as well as geographic fit. so i think together, we will be able to build a very interesting platform for global expansion. emily: the founder of musical.ly was in our studio about a year ago and we shot a fun little musical.ly ourselves. i'm curious -- [laughter] when a company is making a decision about whether to sell or go long, why sell now? was musical.ly at a point where they were starting to see growth plateau? what is the strategy? hans: musical.ly has a lot of inbound interest and is one of

the fastest-growing social networking apps. to be able to go from zero to over 200 million in registered universe, 60 million daily users. the growth is incredible. as with any fast growth, there will be areas where you can get more help. on monetization, technology, ai-based algorithms. i think the founders quit -- founders quite frankly like each other and see that they could work well with each other so that if there is a deal and it gets closed, it could be quite synergistic. emily: it is interesting, this is one of the first chinese apps to have success in the u.s., but at the same time, we saw tencent taking a 10% stake in snap. an american company. bob: let's not forget they did try to launch this service in china and it did not do very well, so you wonder how this can really transferred other places?

the other thing is, i respect the technology discussion and all the capabilities, but fundamentally, we have to think about the audience. i did a little bit of research myself. i have a 20-year-old daughter in college, and i asked her from her perspective, and she said it is really just a tween kind of thing and you grow out of it pretty quickly, and the concern is how to drive a business around that. technology aside, the other things aside, fundamentally, if people stop caring about it, you have this challenge. look at the challenge snapchat is having already. this to me seems even more specialized than that. i think that is a real question. emily: hans? hans: i think musical.ly found a great audience pre-snap that had a lot of traction. over the next year or two, they will continue to refine the product. they had a revamped team in august that diversified the format and user base. i think it would be interesting

to see how it can evolve. musical.ly is quite popular in america, europe, latin as well as southeast asia. we see users from india using it as well. the social networking experience could be transcendent beyond beyond geographical boundaries. sure, you will have users who will play with it and decide they do not want to use it anymore, but new unit is -- new users, the experience they have will be different from what users had six months or a year ago. the product can easily evolve. emily: ok. hans, great to have you on the show. bob o'donnell, you are sticking with me. coming up, why broadcom is making a push to become the biggest chipmaker in the world. up next, we discuss how it plans to be inside all your digital devices. if you like bloomberg news, you can check us out on the radio, listen on our radio app,

bloomberg.com and sirius xm. this is bloomberg.

♪ >> i am alisa parenti. you are watching "bloomberg technology." china is taking another step to liberalize its financial industry and will remove limits on foreign ownership of banks. and fund companies. less, -- plus, overseas firms will be allowed to take controlling stakes in chinese securities businesses. bloomberg spoke with j.p. morgan ceo for asia. >> this is probably going in the right direction. this type of conversation is positive and good for china. of course it is good for international companies that want into that market. it is an interesting, attractive market. >> international banks and securities firms had been

frustrated for a long time by ownership cap that make them marginal players in china. in brussels, brexit talks have ended for the week without any breakthroughs. the european union chief negotiator says there is some progress on the issue of citizen rights. >> the u.k. has now provided useful clarifications that are a good basis for further work. we also had grudging discussions on direct effects of the withdrawal agreement. this is a key point to guarantee citizen rights. >> he also implied the u.k. has two weeks to come up with a better offer on the financial settlement. u.s. secretary of state rex tillerson is warning countries and groups against using lebanon as a vehicle for a larger proxy fight in the middle east. tillerson says the u.s. backs lebanese independence. and recognizes the country's

prime minister appeared -- minister. the prime minister unexpectedly televised his resignation in riyadh last week, where lebanese authorities say he is being held against his will. pope francis is challenging world leaders to imagine a world without nuclear weapons. at a vatican conference pushing for global disarmament, the pope warned nuclear deterrence policies from the cold war era provide "a false sense of security." he also endorsed a new u.n. treaty calling for the elimination of atomic weapons. a man accused of bombing a german soccer team seven months ago will go on trial. two people were injured when three explosions hit the bus as it left the team's stadium for a champions league game on april 11. 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: this is the "bloomberg technology." i am emily chang. in what was a busy week in tech, the biggest story what could be the biggest tech m&a deal ever. broadcom's bid to buy qualcomm. the deal would make the company the largest chip maker in the world and potentially put broadcom in every device on earth. to discuss this and other top headlines this week, i sat down with brad stone. >> this is an earthquake and -- in chip land. you have the third-largest chipmaker in the world, not just broadcom and qualcomm, but nxp

that qualcomm is trying to buy, that controls pretty much the entire chipset in the smartphone. our colleague said if you take all the components of these two companies out of the iphone, you are left with an expensive ipod. that tells you what they do. emily: broadcom has gotten to this position with aggressive m&a. what could stop this from happening? >> qualcomm does not want this to happen. in the of your normal provisions of resistance. but also regulation, regulatory review. qualcomm, they are spending a lot of time with donald trump. they are lobbying here. qualcomm's nxp deal is stuck in regulatory review. clearly, they are taking a closer look at these kind of feels -- of deals. emily: qualcomm is in this

difficult position because of its relationship with apple, facing litigation around the world. apple is trying to pull a lot of revenue that qualcomm has relied upon for years. broadcom, apple is a huge customer of broadcom as well. if this happens, how does that change the relationship with apple? qualcomm and apple are in a war now. we did the math. if all the deals go through together, they would own 40% of the chips inside an iphone. some of the capabilities they would own, the ability to make phone calls, connect to wi-fi, and do apple pay. the combined company could say at one point, if apple tries to if you kick us out, we will not give you apple pay chips and the chips you need to

connect to other networks and wi-fi. it is a war right now and could become nuclear in a year from now. that apple --told we were told that they would not be pursuing this deal if their key customers were comfortable with it. so maybe apple views broadcom has an amicable partner. emily: indeed. also tencent buying 12% stake in snap after snape reported earnings and the stock crashes, goes back up with this tencent investment. evan spiegel of snap and tencent -- and tony ma of tencent have had a long history together. what did you make of this twist? >> tencent was an early investor in snap. i asked tencent's president over the summer if they had considered another investment and he said they had gotten close, but it had not happened. clearly mutual admiration on the -- on both sides. tencent invested in super cell, the videogame maker, then acquired it.

tencent has been looking for a western strategy for a long time. wechat has not been doing well in western areas. perhaps this is setting the stage for a deeper partnership down the road. emily: is it a hail mary for snap? >> tencent just bought shares on the open market. emily: they have discussed it to a certain extent. >> perhaps. i know evan admires tencent and what they accomplished with we bringso if tencent could some of its was the most social media to snapchat i'm sure they , would appreciate that. emily: apple working on an ar headset that comes out as early as 2019, 2020. >> it was an especially strong appleor apple's groups -- scoops here at bloomberg. in 2016 aboutews

apple working on ar. now we have more detail. they are working on an operating system that would power it. they're hoping to have the technology ready internally as early as 2019 to release as early as 2020. you would have display glasses, you would put them on, you would be able to see maps, directions. i could look at you and it would everything there is to know about emily chang. emily: all the bad things pop up? >> not only, but the good things. emily: the halo will pop up instead. here is a look at top tech headlines with brad stone and mark gurman. also this week, our bloomberg view columnist wrote an interesting piece about how apple is ramping up its push into the content business. his thoughts, by netflix. -- buy netflix. >> when apple got into the content business on the music side, the music industry was flailing. there was not a legitimate way to sell digital content, at least not smoothly, cleanly,

friction free. itunes provided that. there was a really good match. apple has discovered moving into the video content side that it is a much more challenging game, and they need video content for things like ipads and itunes and want to participate in the surface and fee-based side because that has become a growing business for them. they are lagging behind other players like roku, and on the content side, amazon and netflix. they are finding they have a couple of new original content pieces, but not seeing the same leverage with the film and television industry they saw with the music industry. emily: it feels like they have been negotiating with these content providers forever. >> it does. if you compare the amount of money they are investing, if you look at amazon and netflix, several billion dollars. whereas if you look at what apple is spending, $1 billion.

i'm not sure we can gauge what the real commitment is here. bloomberg reporting shows they -- shows that tim cook is all over this. he is very careful. i'm not sure i see the content synergies. >> the content synergies are such that it is an instant set of executives with deep ties to the industry, not just from one or two studios. >> they are critical of the content they are providing. would he want this massive library he can't control? >> look at the music side. you can't control all the stuff out there. same with podcasts. apple is the company that basically brought podcasting to the masses. you can't control all the stuff out there. if you want to be in the content business, you have to embrace this. with netflix, you get a deep bench of executives, but the whole backend infrastructure, the cloud infrastructure for

streaming and providing that, which, let's be honest, apple had a lead at one point in that space, and it appears everybody else has leapfrogged, not just netflix, but amazon is the 800 pound gorilla here. i think the big concern is not can apple compete with netflix, but can apple compete with amazon? a few years ago, amazon was 13 in video. they are number three now. jeff bezos is unstoppable. i don't think tim cook and apple by themselves is able to compete with amazon in the streaming video space. emily: that was our bloomberg view columnist. coming up, uber suffers another low to its london operations. this time, its latest legal loss could affect the gig economy worldwide. that is next. this weekend on bloomberg tv, our best interviews, including steve ballmer.

tune in this saturday for the best of bloomberg technology. this is bloomberg. ♪

♪ emily: uber drivers in london scored a victory against the right hailing giant. uber lost in appeal on whether it should pay overtimes and paid vacations. the ruling could have wide ranging implications across the gig economy. apps to makeuse money. uber says the ruling was based on incorrect evidence and will appeal to a higher court. joining me is our guest, just

named a strategic advisor to a ridesharing company. bob o'donnell is still with me in the studio. let's start with this ruling in london. how big of a blow is this to uber? >> it depends on whether you are talking worldwide or europe, but obviously in europe, it is a big deal. london was this shining star for them, where the rest of europe had fallen apart. london was their biggest operation. now you have the government saying, look, not only have we shut you down a few weeks ago. they are still operating on appeal for safety, but now long-term you can't classify your workers as gig workers, and this is a huge deal for them. i don't know if they will be able to operate in london. there is a case pending with the eu that we should hear by the end of the year on the same issue, which does not look good now.

emily: uber has faced similar issues in the united states, but , and i should say, you are an investor in lyft. do you think we will see similar issues happening around the world, and will this affect lyft as well? gabe: let's hope not. you look at the u.s. versus europe and that we are pretty different. you also have a lot of full-time people driving in europe. here, the numbers i saw about a year ago, the average driver for lyft was 15 hours a week and were driving for another service, probably uber. we have to remember there is a supply side and there are people who count on this as their supplemental living, and i don't think we want to discount that. i think we do need to look at a third type of employment for people working full-time or

close to full-time in the gig economy in the united states, particularly because we don't have the safety net they have in europe, free health care and things of that nature, but because of the competition here, i think it is quite a bit different than london. emily: bob, what do you see this as a precursor of? bob: it is a big challenge. i agree, i think especially in europe, this is a bad sign in general and will raise some serious questions. fundamentally, people have been looking at this gig economy, it has been a controversial issue for a while for a reason. a lot of people believe this doesn't feel right. i took an uber to get here today. i was talking to the driver about this issue. one of the interesting things he brought up is that it is difficult for him to get insurance now because as soon as they see that uber sticker, they will not provide insurance support for him.

and other kind of issues around that. maybe that is not legal, but that is the reality people are facing. those kinds of issues are the benefits we have to consider being important to these workers down the road. emily: certainly this is a much bigger issue we will not resolve here, but something we will be watching. meantime, i want to ask you about spin. you have been coming on the show the last couple of years, heralding the future of bicycle sharing, and now spin is expanding, taking on new members to the board. what kind of traction is this having? gabe: it is amazing actually. you know i am a big proponent of biking. i have come on before and said 70% of trips less than a mile in cities are taken by car. we have obesity problems, a lot of things we can do to relieve congestion, make our air cleaner, and make people

healthier by getting them on bikes. i started it here in chicago. what i like about the system is you're seeing people get on bicycles that never did before. a whole new mix. campuses, they are seeing up to 14 rides a day, which is unheard of with bike shares. i think this dockless bicycle share is low capital investment, high return. cities don't have to put up any money. i think you will see it expand like wildfire. emily: what kind of return , quickly, are we talking about? what are the numbers? what kind of return? uber drivers don't make that much money in the first place, so i'm curious how much you get off a single bicycle ride? gabe: a bicycle ride is one

dollar, but the capex is low. if you get three or four people day,ng a day -- riding a and we have seen up to 14 people per day, that is quite a bit of cash flow and operating income. after a few months, you pay for your bike and you are cash flow positive and off to the races come in i think it is very exciting. we are not just talking about big cities. there are 300 cities with 100,000 people or more in the united states. it is easier to launch a service like this in secondary and tertiary markets. emily: we will be watching. thank you so much for joining us. bob o'donnell, you are sticking with me. ok, coming up, a wake-up call as the doj starts cracking down on megamergers. what this could mean for other major media deals on the table, next. this is bloomberg. ♪

emily: media executives dreaming of megamergers got a serious wake-up call this week. the trump presidency was once seen as ushering in a new era of consolidation because republican administrators are thought to be more business friendly. now washington is no longer considered a sure thing. in the first major test of reviews in the trump era, the justice department has pushed back against at&t's takeover of time warner. still with me to discuss what other deals may be impacted is bob o'donnell. what do you make of this and what it means for consolidation in general? bob: the interesting story on this one in particular is the political angle around cnn. emily: is this part of a broader trend or because the president does not like cnn? bob: i have to wonder if it is more about the cnn side of things. i think that seems to drive this discussion. we look back at comcast and the nbc deal that went through before. this is a similar deal.

it does make me wonder. i think there are other legitimate concerns. the broadcom-qualcomm story is a more interesting one. as you discussed, that one is more concerning for a lot of reasons. the fact there is wi-fi conductivity in almost everything and have such a dominant force of a single supplier, i think that is bad news. emily: we saw the ceo of broadcom doing a photo op with the president. bob: of course. he has to play every angle he can. my concern with that one is the fact that broadcom is seen as a cost-cutting company. qualcomm makes an effort to do interesting, innovative technology, and there is concerns in the industry that if broadcom were to come along, it would have a negative impact on qualcomm, let alone the whole apple discussion and things like that. just in terms of what qualcomm has done to drive the industry in a lot of different areas. there is a concern that the

broadcom thing could squelch that. emily: qualcomm is in a tough spot right now. bob: it is a very interesting political battle. it is epic in scale because they have put themselves in this position where all of a sudden their largest customer is arguing with them. they have this other deal they want to pull in to get into the automotive side and other areas, so people see a weakness and pounce. it is classic aggressive tactics here. i think in the long run there is still a lot of value in qualcomm that it is not being reflected in the share price. i think the best argument for the future is we have more value here, more potential here, and that will make this acquisition tougher. emily: quickly, this administration is anything but predictable, but which way will be wind blow on both of these? bob: it is tough to say. i certainly think that if we can

get rid of the cnn piece of that story, the at&t-time warner deal does make sense and i would imagine it could potentially go through. on the qualcomm side, broadcom side, i don't think that will happen because it is a monopoly in a critical area and they would not let that go. emily: and a hostile takeover attempt on top of it. bob o'donnell, thank you for joining. happy friday. that does it for this friday edition of "bloomberg technology ." we are live streaming on twitter. you can check us out at @bloombergtechtv. that is all for now. this is bloomberg. ♪

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