♪ chang, this isy the best of "bloomberg: technology." coming up, uber in the third quarter, and stocks shares are a discount. the ceo of a company prepares to ,eave, wide range of topics including her political ambitions. jim's self driving car. my conversation with the gm's president -- gm president.

uber losses widened in the third quarter. almost $1.5lost billion. as reported tuesday night as part of a formal bid from a stock -- a group looking to buy a large portion of stock. there's a 30% discount to its last private valuation, coming in at $69 billion. we spoke to someone intimately familiar with this, lane castleman, the former head of over in the americas, and eric newcomer. opening salvo from softbank. $33 a share translates into this valuation and they will see if they can get enough people to meet the outstanding shares they want to acquire. >> what is the likelihood of

them acquiring that? >> this is the debate we will have an there is an appetite for liquidity. people want to sell and do not want to miss out. some people know that the price could go up. >> you have shares to sell. what are employees talking about? >> there is not a lot of information out. all we know is what we are reading in the press and there is not a lot of communication with former employees. i am wondering if i can sell. >> what do employees feel about a discount like this? it, still, is a lot of money. >> for each employee, it is probably emotional. it is an emotional issue. they have to determine whether the lower value is enough.

>> government reforms are tied to this. the 17-person board that happens and some of the power gets restricted because of the super-voting shares losing power and all of that is contingent on this deal going through. there is a lot of pressure to get this done. >> the employees do not have much of a say in this. this is down to the biggest investors and the biggest shareholders, like travis. >> there is a misconception that they have a say in what happens next. there are a handful of people and mostly investors who have all of the say and we are just along for the ride and we hope it is a good one. >> what is happening behind the scenes? >> the documents contain financial information and risk factors.

you say you are selling your shares and you need to know something about the values of the shares to assess. softbank is making a calculated decision about the share value. >> we also wonder about other skeletons in the closet. what do you make of the news of the big hack? >> i do not believe in a coincidence and this came out two days before thanksgiving in the middle of this deal. it is a little too perfect and there is some intention to make investors make a quick deal with softbank. >> a trial has been postponed

and there have been harsh words for uber about another cover-up. >> another employee indicated that uber used encrypted messages and deleted communications to not be found in court later and that is important here because google is trying to turn up the files and there is a question as to whether they would ever find them, if they were using encrypted services. >> there will be some cleanup for some time. what other skeletons are there in the closet? >> you are worried about what you do not know and what is coming next and you have to do a review of each division and department to find other issues that exist.

hopefully, most of them are exposed, but your job is to deal with these. there are probably other things out there that will come up and they will have to manage it. >> there is london and other investigations. >> sullivan is the chief security officer who was pushed out and he is tied to a lot of questions and his team is being looked at closely. the new general counsel will have to look into what the strategic services group, the uber internal counterintelligence group, what they surveilled and whether there was hacking. there are a lot of questions in relationship to the waymo case and others. there are five criminal probes and a ton of issues that u.s. attorney's offices are looking at to try to figure out whether anything was criminal and that is an ongoing situation.

emily: coming up, we will hear from arianna huffington, her harassment,n sexual from silicon valley to washington. plus, cyber monday sales, we begin to the numbers. this is bloomberg. ♪

♪ emily: the chairman of the fcc is going on the offensive, defending net neutrality protections. since january has issued everyone from web companies to celebrities to lambaste his plan to dismantle the obama era protection. he took particular aim at twitter saying "when it comes to open internet, twitter is part of the problem. the use their boot -- their viewpoint to discriminate. " amazon said cyber monday was the biggest shopping day ever in the company's history. according to adobe analog most -- analytics, a rate -- there were $6.5 billion in online

sales for all online companies. numbers are still rolling in. the things you mentioned, adobe systems there. they have come out with their prediction. they are expecting the most ever in the u.s.. they are seeing half of that. web traffict wed -- was up, and that there would raise today, with traffic growing, 31% and counting for more than 50% of all visits online. it's a trend we have been seeing the growthn terms of of e-commerce, and mobile shopping. 1928 -- g #btv 1928. e-commerce beats all of these.

we've also heard from this, the biggest mobile payment company in the u.s.. they were signed that cyber monday has gotten off to a solid start for e-commerce. strong and steady growth throughout the morning in into the afternoon. overall through the first 14 hours of the day, they showed has shot up.nday >> talk to us about who the likely big winners are, or is it all about amazon are -- amazon? companies, many think they will be the winners. we know they're continuing to offer deals today. --lly, it is considered amazon, all big online marketplaces will be winners. flatscreen televisions, a big push towards electronics.

the loan is expected to catch -- half volleys contest e-commerce, spending growth. g #btv 8686. while amazon, the blue line here, is soaring ahead of norma when it comes to market cap, and you look at sales -- this is underneath -- walmart continues to outperform amazon. >> emma, i was surprised to see in-store sales, physical store sales to account for 90% of retail purchases. when it comes to e-commerce, there is still a lot of growth to be had. talk to us about the trend we are seeing when it comes to online versus off-line commerce. >> that's true. so is surprising to see that.

up 10-11% ofkes all retail sales. whichs with e-commerce, is why there is such a big focus on e-commerce. analysts and investors in the industry -- and of course, these pay for themselves. if you look at some predictions for the holiday season, they say sale -- see sales growth as a and 4.iing between 3.5 percent. if you look at the estimates of e-commerce growth, they are up towards more like 20%. that's why we are seeing traditional retailers, like they havelmart, that been ahead of the game for quite a while now, focusing on what they are offering online. saw forhe things we black friday, this is promising this year among traditional retailers. they had better integrated the for products that you can

buy, in-store and online. >> the day is not yet done. still a few more hours to capitalize. emma, thank you. staying with e-commerce, the increase in online action also means an increase risk of cyber attack. in the fourth quarter of last year. there was a 20% jump in attempted attacks in the text. patrick, what are you seeing so far this year? are you seeing a similar type of increase? >> the analysis we did based on the data we collected was done in 2016. we saw an increase, as you said, 20% in the month of december. we anticipate that this year, we are going to see that same -- the same type of increase year-over-year.

this provides the attacker, the people trying to make money basically, all the noise happening, like what you just spoke about in regards to cyber monday. all of that provides great cover for attackers to go and get their prices. phishing i understand, attacks have been the most comment -- common. attacksinly, phishing are used in a big way by attackers; they leveraged social engineering. receiving in our inbox many offers from retailers, shipping companies, holiday cards, etc., and we are trained to open those. we want to click on those links, and yet an attacker knows that just as well as we do. they leverage that to get us to click on the length, go to a malicious website, and actually to drop a bunch of code onto an unknowing consumer, or unknowing employee.

then, they are actually able to make an attack. emily: we spent a lot of time covering the equifax fax earlier this year. have consumers been more wary this holiday season? are retailers doing anything differently as a result? >> i think it comes of ways for consumers. this has been in the news a lot. certainly, a lot of the ransomware -- there's an awareness that goes up. the holidays are big-time problem is, for our jobs, and of a time to get presence, the end of the year. all of that noise, a lot of us put our guard down a bit, and take additional risks, for sure. retailers are smart about this. recognize this, online as well as those who go to physical stores. they definitely put additional ofurity around this time

year in order to protect their consumers. ♪ that was carbon black ceo patrick morley. a possible movie merger announced this week. the u.s.'s number two movie chain regal entertainment is in talks to be with the u.k. world group. the deal would create a bigger international rival to industry and see. they try to find a buyer in 2014, but were unsuccessful. coming up, general motors is taking its self driving flagship car out of the showroom and in -- on to the streets. how it is there in real life traffic, next. the rivals in the race to dominate china's mobileye checking out. now, they're joining forces next. this is bloomberg -- bloomberg. ♪

♪ general motors finally let at self-driving car loose on the street of san francisco. chevrolet unveiled its autonomous car, powered by technology. we got the chance to take it on a hand free ride, or should i say -- it took me on a ride. ♪ waiting for a car. the name of our car is pickled. here!all right. let's do this. ♪ all right, we made it. we covered 2.4 miles, drove past a hundred 78 people, nine bikes and a 148 cars. definitely a little jerky, stopping and starting at times. you could sense the car trying to figure out what people are going to do.

where the kids playing with a ball? where their construction workers that weren't going to move? but, i am in for round two. ♪ right after that ride i sat down with general motors to see why they decided to let us ride in a self driving car that is not quite ready for consumer launch. take a listen. >> our objective is to deploy these cars, that is why we are testing in san francisco. we want to deploy with a high level of safety. that is what we are marching towards. we are moving at a fast rate of development. we wanted to give you an opportunity to experience the car. we are moving quickly. we are heading toward commercial deployment. we where some quarters away. emily: how many quarters? >> some quarters, quarters not years. emily: i understand it is a

complex environment. there were a couple of times a try to merge but there was a car there and we jerked back in. there was a time we pulled up to kids crossing a crosswalk, and you can see the car realizing it

was a line of children. it got confused. how long will it take to smooth over those issues? >> safety is the number one priority. the car is relatively cautious, but that is all about safety. safety will be the defining metric that tells us when we are ready to deploy these cars. we are moving quickly in terms of continued improvement. in some number of months, people can get another read on where we are and see the rate of change. emily: how do you know you're at the point that the car would make a decision ice human would? >> we want to make sure we can deliver the same level of performance. emily: there is still a steering wheel and pedals. how far are you awake my car without a wheel and pedals? >> as soon as we get to the level of safety performance we will pull the safety driver out of the car. that will afford us an opportunity to rethink what the car might look like. emily: what about affordability? >> we think a rideshare environment is the logical place to deploy these cars, and the early days when the cars are expensive, we will still have a compelling business case, and be able to offer rides at a more affordable rate then where human drivers are at. emily: how much does it cost to make one right now? >> i could, but i'm equity give you a number. -- not going to give you a number.

emily: what is the strategy to bring these to the market? >> to get a level of performance we want. we see the first appointment in a shared network in a complex urban environment. a rideshare type model. emily: you have hard with lyft and an agreement with uber. whose side are you on? >> our objective is to get this deployed in the largest scale possible with the right level of safety. as we think about how we do that, we could have more than one partner, we could potentially have no partners.

emily: what looks like the most plausible scenario? >> at this point, all options remain open. as we get closer to commercial launch, those plans will crystallize. emily: we seek iterations of the car here. looking for the next iteration, how do you get the equipment smaller? >> we are iterating at an unprecedented pace. you see three generations of a car here, we are working on a fourth generation. all of that has happened in less than 18 months. we are to continue those iterations as we get closer to commercial launch and afterwards. emily: how critical is the technology, >> we think it is a important part of the equation. we are getting the cost of the sensors down dramatically. we think we can reduce that by 99% from where we are today to where we could be in the relatively near future to get the performance of, and get the reliability up. with that combination of characteristics, we can have really compelling sensors.

emily: one of the experiences was to see the app, see the objects on the road and across the screen. how did that come together? >> the car is evaluating everything going on around it, and making predictions as to what those characters are going to do. it plans its path around that. what you saw was a representation of what the car is seeing and how it is taking about that. emily: is that other technology? >> is all internally developed technology. emily: how does it differentiate itself? >> we are making sure we control the pieces of the system. we are doing a lot of our own mapping work. we're doing a lot of work on the hardware side. we want to keep iterating the system as quickly as we can.

emily: can you give us an update on the chevy bowl in general? >> chevy volt sales have been a record month last month and we feel really good about the trajectory. emily: a year from now where will gm self driving efforts be? >> we will be in an interesting position a year from now, and we look forward to keeping you updated. emily: what has been your most interesting experience? >> the rate of progress we are making. it has been exciting over the last 18 months from the time we acquired cruze. to get a sense of where we are, and a clear line of sight on getting to the point where we can launch this commercially. emily: would you take your family on a road trip in this yet? >> we still have some work but that is ultimately the objective. emily: coming up, her exclusive

conversation with meg whitman. news, youe bloomberg can listen on bloomberg radio app, and on sirius xm. this is bloomberg. ♪

♪ emily: "bloomberg: technology." -- welcome back to the best of "bloomberg: technology." i'm emily chang. meg whitman joined us from ht's discover conference in madrid. we discussed her decision to leave, and why the time is right for her now. transformation that might be one of the biggest transformations in global business history, from a single company that was facing a lot of challenges to a nimble and agile company with hewlett-packard enterprise. it is well positioned for the