♪ alisa: i am alisa parenti in washington and you are watching "bloomberg technology." let's get a check of your first word news. president trump praised his administration's efforts to roll back federal regulations today. he spoke about the tax bill currently working through congress. saying he expects senator marco rubio to come around. pres. trump: i think he will be there. he has been a great guy. very supportive. i think senator rubio will be there, for sure. we are doing well on the tax front. we have tremendous support. alisa: senator john cornyn predicts the senate will pass the gop tax legislation tuesday.

the majority whip also says disaster-related aid will be included in a short-term government measure. congressional leaders are scrambling to get compromised legislation for a floor vote next week. vice president michael pence plans to delay his trip to the middle east. pence plans to leave for egypt on tuesday so that he can preside over the senate during that tax vote. five years ago today a gunman shot and killed 20 children and six adults at sandy hook elementary school in connecticut. they are observing the day in private reflection. flags statewide flying at half staff today. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm alisa parenti, this is bloomberg. "bloomberg technology" is next. ♪

emily: i'm emily chang and this is "bloomberg technology." coming up the fcc officially , hits reset on the internet. what the contentious vote to repeal net neutrality protection means for the internet of the future. plus, disney's megadeal for a massive chunk of fox. what the world's biggest entertainment company gets for its $52 billion. and what the deal means for the murdoch empire. and orville revenue rises. their ongoing competition with -- oracle revenue rises, and their ongoing competition with cloud later amazon. first to our lead. net neutrality no more. the fcc voted to repeal the obama era protections. the republican led commission thed 3-2 to remove protections known as net neutrality. there were many protests, by defenders of the rule.

they said it would create an internet of haves and have-nots, in terms of accessing content. but the fcc chair heralded the return to what he called a free speech market approach. he said it was time for us to restore internet freedom. we are restoring the light touch framework that has governed the internet for most of its existence. joining me now, one of the people who earlier voted to repeal net neutrality, brandon carr. he was nominated by president trump. commissioner, thank you so much for joining us. you say today is a great day. many people say today is an awful day. what don't they understand? >> thank you so much for the question and for having me on. it is a great day for consumers, innovation, and freedom. there is a lot of up a full rhetoric. ryphal rhetoric. here is the reality. we are voting to go back to the 2015 regulatory framework, the title i framework that the commission had in place in 2015 at the 20 years before that. this is not moving toward some mad max version of the internet.

isps will not have complete free reign to dictate your online experience. the 2015 a framework had strong legal protections for consumers. consumers will continue to benefit from that without the harms we are seeing from title ii. emily: a number of organizations say they intend to sue the fcc. free press says they will sue on the basis of willful rejection of evidence, and absolute disregard of public input. the attorney generals of washington and new york saying they intend to sue. the attorney general saying it is not just an attack on the future of the internet, but an attack on all new yorkers and the integrity of every american's voice in government, and we will fight back. what is your reaction to those kinds of comments? >> anytime the fcc takes an action on the space of internet regulation, companies sue over the decisions we make. but here is the reality. the supreme court in 2005 took up the fcc's authority to

classify broadband internet access as a title i service. it found the fcc did have the authority. that is the only classification the supreme court has ever blessed. matter as a procedural and substantive legal matter is on extremely sound legal footing. i'm confident where we go from here. emily: we also spoke with former fcc chair tom wheeler. he oversaw net neutrality protection. take a listen to what he told us. >> for the first time since 1934, with this decision, the fcc is washing its hands, walking away from that congressionally mandated responsibility. they are only doing it for the most important network that will define the rest of the 21st century. it is an inconceivable kind of action. emily: what do you make of this accusation that the fcc is absolving itself of responsibility, rather than taking responsibility?

>> that is simply not the case. we are going back to the same regulatory framework that was in place in 2015. i think your listeners and viewers can remember the internet of 2015. it was not a free for all, there were protections. those protections will be back in place. the ftc will be fully powered to -- fully empowered for the first time in two years to police isps, conduct with respect to consumers. stripped 2015 decision the trade commission of its authority to protect consumers against isp's. another come up online privacy protections, which consumers cared deeply about. the ftc is the nation's premier consumer protection agency. they have been prohibited in the last two years because of the fcc's title ii decision. consumers are gaining protection as a result of this decision. this is not going to be a situation where there are no rules in place. emily: comcast has said they will not invoke paid

prioritization, but let's say they do. what will happen in that case? part of what has happened here is a misperception of what title ii did. right now, title ii does not stop providers from blocking websites, creating fast or slow lanes. the paid prioritization you talk about. there are reasons why that stuff is not taking place today. it is market forces regulating that conduct. after our decision, those forces stay in place. i know a lot of people do not believe in market forces, and that is fine. there is positive law we are putting in place too. ,there is also antitrust law. it prevents isps from entering agreements that unfairly block throttle or would create anti-competitive paid prioritization. there will be rules and legal standards out there that are going to be able to police any misconduct that people are talking about. emily: what about the fake comments in the public comment section? doesn't that give you any pause?

a million comments were written, potentially by a robot, to counter the vast majority of comments that were against this repeal. >> it does not give me pause. here's why. we have run an open and transparent process. the administrative procedure act is clear on how an agency like us runs our rulemaking. we have an open record. anyone who wants to file a comment can file a comment. we don't require identification. we got over 24 million filings in our proceding. i think that shows the passion that people have in this issue. our decision is based on the substantial record evidence that we developed. emily: but the vast majority of those comments were against this repeal. >> there was a wide range of views expressed. the question we have to confront is a threshold legal matter. did congress when they set up title i and title ii of the communications act, did they intend the internet to be in one

or the other? when we look at the legal determination that we have to make as commissioners at the agency, it is clear to me that this is a title i information service. emily: when will we see lawmakers actually enact this into law? >> our decision today goes into effect as soon as the omb and other government agency rule the transparency rule we adopted. it'll take affect shortly after that. that is the timeline. emily: how do you see the internet five years from now being different? already it seems like so much power is consolidated in the hands of a few very powerful companies. many of those companies were against this repeal. how does the internet look different to you in five years? >> it is a good question. that's why this is such a great decision. title ii is a monopoly style regulation. a heavy-handed regime. a lot of debate is about at&t, verizon comcast and the big , isps.

i think they have been negatively impacted. but they also have an army of regulatory lawyers that can wade through the title ii. when i talked to consumers, what they want is more competition. that is where title ii heads in the wrong direction. there are thousands of smaller isps out there that either trying to provide service for the first time, or provide competition to some of the larger providers. those are the ones hurt worst by this position. i look forward to, when we repeal this title ii, those providers will have a easier time competing. competing, getting money. consumers will benefit as a result of increased competition from repealing title ii. emily: fcc commissioner brendan carr. thank you for joining us. we will have more on today's net neutrality decision later in the show. we will be speaking to the reddit ceo who says the battle is not over. oracle and adobe reporting earnings after close today. , rising to adobe

$9.60 billion. also beat estimates in the fourth quarter, with revenue coming in at $2 billion. we will have more on the results later this hour. coming up, the mouse eats the fox. disney takes a big chunk of rupert murdoch's empire. how the deal came about. we'll tell you everything you need to know. this is bloomberg. ♪

emily: a mega media deal has been announced after weeks of speculation. disney is snapping up a large chunk of 21st century fox assets in a deal of more than $52 billion, the biggest acquisition of disney to date. jonathan sparrow caught up with

disney ceo bob iger in l.a.. he explained of the deal came about. thisyear ago i did not see coming, not six months ago. rupert and i have known each other for a long time. we have a lot of respect for each other. we occasionally get together and muse about the business. in a get together this summer, we were talking about the disruptive forces we were seeing. and the relative position of our companies. i left thinking there might be an opportunity for us to do something with him. i thought about it for a few weeks, called him after and suggested maybe we get together and talk about it, and we did. we spent some time analyzing whether there is something to be the value proposition might be for shareholders of both companies. we rolled our sleeves up and got into negotiation. here we are today. what we are doing is creating a great company, but the great global opportunity for consumers to not only consume great

content from both entities, but to consume it under circumstances that are innovative and compelling and much more user-friendly. that is what the consumer of today demands. >> we have learned a little more about your future. what's the future for james murdoch? >> james and i have talked a lot about a potential role for him. he will be integral for planning the integration process. we will continue to talk about where there is a role for him at this company. we have had a good relationship and he has been extremely helpful in this process. >> a lot of people are thinking about a succession plan. maybe james murdoch could be part of that plan. is that something you could see happening? >> i am now extended through 2021. the board of the company will have ample time to consider its options in terms of my succession and to reengage in a planning process for that. it is premature to speculate. ultimately it would be a board

decision. emily: disney ceo bob iger, with bloomberg's jonathan ferro. here to discuss everything we need to know about the deal, we are joined by chris palmeri. first, walk us through, bob iger said he did not see this deal happening, though there was speculation about a for some time. walk us through the nuts and bolts of the deal and what it means. >> the bulk of what we know of fox is most of its entertainment assets are going to disney. the fox studio, the fx channel, the national geographic channel, a lot of international assets. sky in europe, star of india. it is a massive chunk of fox merging with disney. emily: what do you think of the idea that james murdoch could be iger's successor, even if it is years from now?

there was discussion he would be named in a senior role in disney. the surprise today was that nothing happened. neither side rolled it out. bob iger, you heard him say he expects them to have an advisory role in integrating the two companies. nothing clear yet. so, bob saying now he is going to stick around for four more years. it's hard to say at this point that james murdoch has any real clear path to ceo at disney. emily: this is disney's biggest acquisition ever. how does this fit in the context of their prior m&a? >> previously it was about content. they made it smaller technology deals, but it was mostly about bringing all these wonderful marvel,rs, pixar, lucasfilm, into the division. here it is a much broader play. it is a doubling down on the film and tv business at this

pivotal moment where things are changing so rapidly. a lot of exciting things out of disney from a technology standpoint. bob iger's catch of a multi-pronged strategy. he will have an online version of espn next year. a disney channel in 2019. it will have marvel and star wars content. and hulu, which they now have control of by 60% stake. it is the adult version of what they are trying to do. that is where fox comes into play with this programming. they are trying to create an online choice for everyone. emily: what do you think -- how do you think this will impact the bigger media and entertainment industry? i think if you are netflix, you have to be nervous. netflix is losing the disney movies in 2019. bob iger today suggested that a lot of the fox stuff -- they have a new movie deal with hbo.

but there are tv shows that go to netflix. so, we are seeing everyone taking their programming in-house and in disney's case, through their own distribution pipeline. we will see a similar reaction. cbs has already had that with it's all access. we will see a lot of other deals in the wake of this. emily: bloomberg's chris palmeri there in hollywood. we will be digging into this deal and the streaming battle a bit later. one of the most popular cryptocurrency exchanges has added a big name in tech to its board. head of facebook messenger is joining the board of coinbase. they said his knowledge of the mobile space will guide them in creating a truly open financial system to bring opportunity to people across the globe. coinbase has seen an explosion of user growth in the last year

as the value of bitcoin sores. coming up, more on oracle and adobe's earnings. the biggest highlights and mrs.. this is bloomberg. ♪

emily: tech investor shervin pishevar resigned from sherpa capital. he was accused of sexual assault and harassment by multiple women in the tech industry. in a statement the company said , we are deeply committed to our culture of integrity, inclusion and respect. we will continue to put these values into action over all of sherpa capitals activities. including the founders and companies we support. onsays he plans on focusing the ongoing legal actions against those who were unjustly launching a smear campaign against me. he has denied all allegations. oracle and adobe out after the bell.

oracle reported adjusted revenue for the second quarter that met analyst estimates at $9.6 billion. adobe at to talk about all in $2 billion. more detail, we bring in cory johnson. we start with oracle where it is all about the cloud. absolutely, it is a story all about the cloud. as oracle tries to make its move from the dominant seller of enterprise software in the database to a cloud seller, everyone is focused on their cloud business as they should be. the results from oracle cloud are fantastic. ita year-over-year basis, was a very impressive quarter. the stock is down. i will get to that. the stock being down in after-hours trading is a sign of how high expectations were for oracle. every quarter they are talking

cloud, cloud, cloud. investors expect to see lots of cloud and guiding up. when they just do what they said they would do it's not enough , for that market that wants to see them beat and praise. emily: let's talk about how far long oracle has come. for so long they had not caught up with the cloud. now that they are there what , remains in terms of continuing to fight the battle and fend off the competition. >> i think the salesforce loves to say they were first and they are doing bigger jobs in the salesforce software. indeed they have done quite well. oracle has largely attacked every other piece of the cloud. the most interesting thing they are doing is not just database in the cloud. they are doing all kinds of applications, whether it is hr applications to compete with work day, some crm to compete with salesforce. some erp stuff and they are the leader in erp in the cloud. the biggest areas of software, they are there in size.

the cumulative result, oracle is doing very well in the lots of areas. they are going right after amazon and offering infrastructure as a service, whether it is compute or storage. they're building data centers and bringing lots of their customers into their own the cloud. it makes sense with the sun acquisition. they are putting those devices that work in their own data centers, offering top-of-the-line computational power. they attack salesforce, microsoft, workday, and amazon.com. and go after all the major companies in the cloud in everything they are doing when it comes to the enterprise. ceo saying thele pipeline is the biggest they ever had. let's move on to adobe. what are the highlights? >> strong, consistent growth. they did not do enough of a beat and a raise.

we have talk about tax reform, disney doing big mergers. what are these companies doing with a better environment than they might have seen a year ago? they are staying where they were a year ago. 25% growth for the year for adobe but also 25% growth for the quarter. the lack of acceleration might be disappointing for bullish investors. who expect enterprises to be spending a lot more, particularly if there is a big tax cut. if companies spend a lot of money because of a tax cut, they will be spending money in software first. you might expect them to guide up as a result of that but it did not happen. emily: all right, cory johnson in new york. thank you so much. coming up, the vote to overturn net neutrality may be over, but the battle is far from over. ceo abouto the reddit the future of net protection.

if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app. this is bloomberg. ♪

>> it is 12:30 in hong kong. i am debra mao with an update of the top stories. president trump insists the republican tax cuts will help the middle class, even as gop leaders prepare a last-minute plan to cut down the top rates paid by the top earners. marco rubio attacked the party for putting the wealthy ahead of working families. the latest hong kong survey shows japan's recovery remains solid. sentiment among large manufacturers hit a decade high. optimism was unchanged. the economy continues to strengthen. although the outlook among large companies was unchanged and well below estimates. qatar airways said it would not

pull back, despite the saudi-led isolation of the country. they expect a negative earnings year. a diplomatic spat has affected the carrier's performance. but they expect growth to put -- to improve. >> our bottom line will be affected. and we're still giving a profit warning. we will as a matter of fact have a very negative year. regarding our bottom line. we areas passengers, hoping we will be close to the number of passengers we carried pre-blockade. >> global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. let's check on how markets have been trading. here is juliette saly in singapore. >> it has been a downbeat day across asia.

we are seeing a bright spot coming through in the indian market. fintech up over 1%. this as exit polls suggest india's ruling party retaining a crucial state. weakness coming through from tech players. seng down 1.1%. still on the lunch break, sorry about that. having a look at currency this dollar story on the fact whether or not we are going to see u.s. tax reforms pushed through, you have strength coming through in the rupee. the japanese yen has been one to focus on today. fairly flat at 112.34. dollar.out 1% over the that has been japanese equities retreating from the highs reached monday. nasdaq leading declines.

up by about 10% in hong kong on the lunch break, after a raised $1 billion in a share placement. at the top of the hour, this is bloomberg. ♪ emily: this is "bloomberg technology." i am emily chang. the fcc voting to overturn the obama era internet protection known as net neutrality. one of the top sites has been the online community, reddit. its users have been very vocal about their anger over the fcc vote. the ceo wrote a post saying, it is a beginning, not the end. while the fight to preserve net neutrality will be longer than we had hoped, it is far from over. reddit will continue to remain involved in this issue in the way we know best, seeking out every opportunity to amplify voices and share them with those who have the power to make a difference. ceoing me now, the reddit

and cofounder, steve hoffman. the commissioner was talking about why he thinks today is a great day. you think it is not. why? steve: it is a setback for people who believe in a free, open, fair internet. the real winners today are isp's. isp's, whoy large are large media companies, who would like nothing better than to pick the winners and losers online and stifle competition. emily: take a listen. >> those are the ones hurt worse by this decision. i look forward when we repeal this title ii rule, consumers -- those providers will have an easier time competing and consumers will benefit as a result of increased competition. emily: he thinks smaller isp's will benefit. you think he is wrong? steve: i do. i cannot remember the last time deregulating monopolies increased competition. that is nonsensical. emily: what are the

consequences? steve: if net neutrality is absolutely gone -- and to be fair, we have a long way to go before we are at that point, we are back where we were 10 years ago. there are plenty of examples of isp's abusing power back then. for example at&t blocking skype, , at&t charging extra to use facetime, comcast blocking bit torrent. if they had a chance to kill netflix in the womb, they probably would have done it. emily: do you think that will happen now? steve: absolutely. there is only more competition online and the stakes are as high as ever, because the internet is largely replacing other forms of media. emily: you think the netflix of the future will not have a chance? steve: will have a difficult time, yes. emily: what are reddit users saying? steve: it is a rare opportunity for reddit users to agree across the board. they are upset, the same way most americans are upset. what you see on reddit is a reflection of what is going on

in the real world. 83% of americans polled say they are in favor of net neutrality regulations. you see this play out on reddit. emily: you are here speaking out on behalf of the company. what can reddit as a company do? steve: we can organize the voice of our users and point them in the right direction. we believe the most effective course of action is to reach out to your representatives, senators, and voice your opinion. because they have a lot of influence on this. the fight is not over and it is important representatives know what your feelings are so their actions can reflect the will of their constituents. emily: you have been doing more you say to take on online harassment and trolling on the platform. what progress have you made? steve: at the beginning of the year, our responses were 100% reactive. the user would report the activity and then we would address it. we are over 60% proactive, catching bad behavior before it even affects users.

that makes a real impact on your experience on the site. emily: you have your own run-in with the trump trolls, editing user comments. you apologized, said you regret it. but it is that abuse of power people are concerned about, power consolidated. steve: in that case we had some trump supporters doing what they do best, accusing someone they do not like of being a pedophile. what i did was replace my instances of the username with my username as a joke. i do not think conflating that sort of prank with limiting free speech online and limiting competition is a fair comparison. emily: what kind of abuse of power would be possible in a world where net neutrality does not exist? steve: the real challenge is largest isp's in the

country are also the largest media companies. these media companies have disproportionate control over what you can do online. most consumers in the united states can only choose from one or two isp's, so there is no real competition. if your competition is between not having internet and having internet, and that company can pick and choose winners it is a , problem. emily: what activity have you seen among trump trolls over the first year of the administration? steve: calling them trolls might be a little unfair. i will try to take the middle ground. it is not an opinion a lot of americans share at this if you point. look at his latest approval ratings. you see a lot of people blindly supporting trump, which i think is disappointing but not surprising. emily: are those same people against the repeal of net neutrality? steve: it is hard to say, i think they are torn on this one. it is an issue that causes cognitive dissonance for people

who want to blindly support trump, but this one is pretty obvious. emily: i am curious about the bitcoin conversation. you have a lot of cryptocurrency enthusiasts on reddit. what are the conversations happening that may be not yet hit the mainstream? steve: the bitcoin community on reddit is as old as bitcoin itself. we have been the center of the conversation for a long time. needless to say, the last couple weeks people have been very excited. probably irrationally excited. if you want to know what is going on in bitcoin, the reddit communities are the best places to start. emily: great to have you back on the show. we will be watching to see how you crusade against the repeal that happened today. amazon is extending an olive branch to google. the e-commerce giant announced it will once again sell google's chromecast streaming device. a stop selling it, which is why they blocked youtube on amazon devices.

amazon is also resuming sales of apple tv devices after a two-year hiatus. coming up, the $52 billion disney-fox deal could leave the house of mouse to become the next streaming giant. could they become a threat to netflix? this is bloomberg. ♪ emily: more on the massive deal

between disney and 21st century fox. ever since they ended the agreement with the netflix earlier this year, you could say the company has gotten serious about standalone streaming. with this deal, disney gets a leg up to more users. here is what bob iger had to say earlier on bloomberg tv. >> we have long expressed the desire to have a direct to consumer business. we think that is the way of the world these days. not only does it provide users -- consumers with better opportunities in terms of personalization and customization, but it provides the company with more opportunities in terms of reaching more consumers in more consumer-friendly ways. it is a compelling argument in terms of creating value. we will use fox assets in terms of intellectual property and creation abilities to grow hulu at a more accelerated pace. also use fox assets to complement our other services,

such as the disney branded direct to consumer service and sports. >> what you did with the disney and the netflix, ending the licensing agreement, does it make financial sense to end any license agreement when he first century fox had with netflix? >> netflix has been a great partner to us. we considered ending that relationship very seriously, because of the revenue generated for our company. but we are in the business of creating long-term value, we're in this for the long term. as we look ahead and saw the world i just described, where direct to consumer proposition was more compelling for the consumer and distributor, we believed it was time. we will take that approach. it was time to exit the netflix relationship. emily: disney ceo bob iger there and our reporter joins us from l.a. to talk about how disney can become a streaming

powerhouse thanks to this acquisition. i want to start with hulu, disney now has a majority stake with hulu. what does it mean for hulu? >> for the short-term it does not mean much because disney will not be able to change anything until the deal gets approved. but in the long term it means for the first time in hulu's existence, it has one company in control with the ability to make decisions. hulu was founded by nbc and fox. then disney comes in. it suffered with fights between different board members, different strategies, it has had a bunch of ceos. if disney can settle on one strategy to execute and a leader it believes in, that will be a positive for hulu, moving forward. emily: what does this deal give disney that would position it well competitively, versus

netflix? lucas: fox's tv studio has some of the best assets and movies in the world. whether it is the x-files, the avatar movie franchise. that goes to disney, which also owns some of the most valuable tv shows. you would be hard-pressed to find a company with more of a treasure trove of intellectual property. that is what you need to make these streaming services work. we talked about disney taking movies off of netflix. that is forced netflix to try to build its own studio in house, which it is in the process of doing. it takes a lot of time. disney now has the benefit of owning two different studios. and the wealth of ip they have. emily: netflix is spending billions of dollars to make that happen. the deal puts disney into debt. but who is in a better financial position? lucas: right now, probably disney, because of all the cash their businesses throw off.

for netflix, but that is on -- the bet is on long-term growth. they are barely profitable, worldwide. disney makes far more in revenue and profits every quarter. emily: i am curious for your thoughts on these disney succession issues. now it is four years out, but there is talk of james murdoch. succession questions will probably not come down. what shape do you think those conversations will take? lucas: you find people hard-pressed to believe bob iger wants to leave and give up control, give up one of the best jobs in corporate america in the world, unless he has a clear next act. we have seen several times he has extended his tenure. through 2021 there will continue to be talk about it.

my guess is it will be muted a bit because he is here the next three or four years. unless they were to give inclination james murdoch or someone else from the fox portfolio or someone else within disney were next in line, if at some point in this process they name a coo or make it clear there is a successor, that would obviously change the terms of the conversation. until they do that, i think iger bought a couple years from this speculation. emily: lucas, thank you so much for that update. target's attempts to challenge amazon in e-commerce orders. the shipt acquisition, next. $550 millionand bloomberg real yield on location at j.p. morgan this friday talking about fixed income, and this week's special bank decision. this is bloomberg. ♪ emily: a stock we are watching,

shares of twitter rose as much as 7% in thursday's session, the highest level in more than a year. industry watchers exciting creasing odds of a possible twitter tie up following , disney's deal to buy 21st century fox. also helping fuel m&a speculation this tweet from , goldman sachs' chairman blankfein. it shows him posing with twitter's ceo, jack dorsey. a story in the u.s. target is , getting ready to bring same day delivery to most of its stores next year. the retail giant is purchasing the grocery delivery start up

a $550 million, all cash deal. it will be at about half of its 1800 stores by next summer. joining us, ian sigalow from greycroft. and also one of shipt's board investors. >> shipt has two assets target is interested in. the first is an e-commerce business. they power e-commerce shopping carts, check out. they do this for many merchants across the united states. the second half that, a delivery fleet which numbers around , 21,000 active drivers. put that in comparison, roughly 1/8 the number of active drivers uber has in the united states. emily: is it all about fending off competition from amazon? ian: on one hand, yes. on one hand, no. amazon's fresh business is small.

post-acquisition of whole foods, it got a lot bigger. though whole foods is still a relatively small grocer. i think target is very forward leaning with this acquisition. they are thinking about how to bring their grocery business online and power other grocers' online business. emily: it is a question how much grocery shopping will move online. in fact, it has moved online fairly slowly. some consumers saying they just prefer to go to the store. do think this is ultimately a majority online business, or that it will be fairly split? ian: i think it is a majority online business. for a category right now, it is about 1% to 2% online out of $800 billion to $1 trillion of consumer spending. our internal best guess is that in the next five years, it will be somewhere between 5% and 10% online. that is a very large movement,

$80 billion of purchase behavior moving from in-store to online. once that starts, it ends up growing very fast. grocers are relatively low-margin businesses. if you take away 10% of their customer base, they start to fold. emily: looking at your other investments, you have invested in other food tech and payments. what are the trends you are focused on going into 2018? ian: right now i would say health care is a major trend for us. we're looking at walls and -- tools and software to provide efficiency and care to individuals in the home. we're expending a lot of time looking at fintech health care, consumer markets. i think the third trend is direct to consumer products. every day there is a new consumer products company that pops up that is attacking a legacy business, such as png or unilever, built entirely online.

emily: you invested in venmo and braintree. is cryptocurrency on your list? or decidedly not on your list? ian: we have invested in a handful of companies that use blockchain, we invested in one company that is a cryptocurrency based business, although it is not on the consumer side. they help businesses move money out of africa, largely, because there are a lot of currency controls in those countries. p&g is a customer of them. but largely i am not investing -- speculating in cryptocurrency itself. we have been reporting on sexual harassment and assault allegations against venture capitalist shervin pishevar, who just announced today he is resigning from sherpa capital. what is your reaction to these kinds of allegations?

and plans to address the climate for women in entrepreneurship and vc going forward? ian: i do not know him, so i cannot comment on sherpa. but from a greycroft perspective, we have a female pounder, one of the three founders. my partner who runs the l.a. office and the one in new york -- at the time, there were not very many females in the venture business 11 years ago. there are quite a few today. we did this internal study. over 40% of our portfolio companies have a founder that is either a minority or a woman. emily: ian sigalow, greycroft partners, thank you for joining us today on "bloomberg technology." that does it for this edition of "bloomberg technology." we are live streaming on twitter. 5:00 p.m. in new york, 2:00 in san francisco. this is bloomberg. ♪ is this a phone?

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