♪ emily: i'm emily chang and this is the "best of bloomberg technology," where we bring you all of our top interviews from this week in tech. coming up, we will hear from goldman sachs president and co t -coo. dick costolo joins us. former cooper board member -- uber board member bill gurley joins us. first tour coverage from the

goldman sachs technology conference right here in san francisco. we will hear from technology heavyweights over the hour, including the ceo of gopro, ripple, and goldman sachs. >> the year is set up in a way in which i think it should be very constructive for m&a activity and ipo activity. activity. we have got a very healthy ipo backlog, but we also have an environment for a variety of reasons why meeting should set up to be a pretty good year. >> are private market valuations private -- healthy right now? >> i think private market valuations have heightened the months. the last 12-24 capital has been tighter for private market funding.

i would not say that valuations are bubbly. environment where growth was sluggish, investors were looking for a place where there was growth, and silicon valley is a place where there was a lot of growth. you look at a company like amazon, it is growing 30% on when hundred $80 billion of and $80 billion of revenues. these are big companies with large market caps. they are growing very quickly, and that obviously creates interest around other businesses. >> by tightening are you saying that valuations are plateauing or going down? >> i do not think valuations are going down. as long as growth continues and the trajectory we are on continues, i think there will be --. arrived -- ambulance

ce --.nce -- ebbulan >> how to take advantage of it? >> the volatility that we have seen as a result of what we were talking about with respect to economic growth. people are seeing signs of wages actually increasing. using the strong growth numbers coming outcome that is going to bring volatility that's why more normal environment. there's no question that volatility spiked over the last several weeks. it is coming off of extraordinary lows. it would be helpful at this point for volatility to be more normalized in the context of a broader market period. i would expect to see more of a normalization on volatility. >> you are advising qualcomm on a potential takeover of

broadcom. million --k the $100 billion dollar size of the deal would be --? >> that is still a large number. they are growing organically. is it possible that one of these big companies steps in and does something that is very significant in size? sure, that is possible. i think by and large $100 billion is wanted continue to be a very big -- is going to continue to be a big --. we are watching the cryptocurrency space and risk-adjusted -- we are interested. at the moment with our clearing some future products for some clients.

that activity is small. we have no immediate plans to start trading these currencies. there is a lot of hype, there is a lot of activity around this. we're watching the space question sleep -- cautiously. with think blockchain is there interesting technology -- we think blockchain is a very interesting technology. >> what are you doing at goldman sachs about diversity and hiring women? >> diversity is hugely important for goldman sachs. for us to be successful with our clients and excel as a capital organization, we have to have a very diverse organization. we have been working at improving the diversity of our business for 20 years. we hire a lot of people every year, particularly young people out of school.

we have been very focused to try to make sure that the diversity of that group of people matches the diversity of the world we are hiring from. whether it is women, black americans, or hispanic americans, we are looking for opportunities to continue to increase the diversity of our population. over the past year we have made great progress. we have brought the number of women up by really focusing on that entry points in the pipeline. if your entry point in the pipeline creates a more diverse it istion over time, pretty much the same. you should do brighter i haven't -- better at having a broader pool. we continue to be very focused on the. >> that was david solomon, goldman sachs president and co-coo. among the issues talked about

was a special dividend due to the tax overhaul and a slowdown in the mobile payment space. he also addressed succession plans. he wants to properly pass the baton to the next leader. we talked to the man who used to run twitter. dick costolo joins us to talk. if you like bloomberg news check us out on the radio. you can listen in the u.s. on sirius xm. this is bloomberg. ♪

predictedceo has amazon style losses.

he told the goldman sachs technology conference that he had joined the company in crisis, and he has seen no lack of surprises. it comes one day after uber reported a loss for 2017 on net $1.5ue of one and -- billion. my next guest is well aware of the male-dominated problem in the technology industry. he has made it his mission to hire as many women as men at his latest company. i would like to welcome former twitter ceo dick costolo. ick: i generally try to keep it 50% men and 50% women across all areas of the company. i feel like when you fall behind, as is common knowledge based on all of the gender and

diversity studies that come out from all of these companies, when to get behind on things like gender diversity and just becomes impossible -- it becomes impossible to catch up. there are only so many women engineers, the end of spending all of their time interviewing other engineers. then they don't spend time writing production code. that is just one aspect of how hard it is when you fall behind. i just decided that the way to deal with it is to start off by not falling behind. by not giving yourself the excuse in the early days, we just have to get the right seven people here on day one and we will catch up later. you don't catch up. emily: why don't more ceos and

founders think like you? >> i think they just don't think about it. if you're a first-time founder, you're trying to raise money. people responsible for you have never been responsible for. they feel like it is something they can do with later. there's probably a general sense of well, there's only 30 people in the company now, that will be an issue, but we will do with the later. the reality is that once you fall way behind, it is almost impossible to catch up. everything in the organization starts to work to favor the existing imbalance and to keep it going. reason,any nefarious but that's just the way that

everything in the company is. if you got 90% men in theneering and 10% women, junior engineer guys are taking out with other junior engineer guys -- hanging out with other junior engineer guys. once you fall behind, the imbalance starts to reinforce itself. emily: is there anything in particular that you learned at twitter where you saw things go the wrong way that could have been better if there had been michelman and women -- more equal men and women. dick: i would frame it differently. i always thought that when i have a more diverse group of perspectives on a decision need -- a needed to be made look when you are a leader, 80% of what you do is gathering input so that you can make the

best decisions. input gather the broadest to make a decision that will be better than a very narrow set of perspectives. if you have got a leadership team sitting around the table that is 10 guys and your user base is 50% men and 50% women, you are going to have a serious lack of what have of your user base-- half of your user might be thinking. matches them that user base at chorus. i always thought that was something you should work towards, to have more of those , let'sf -- you know narrow socioeconomic, demographic, gender-based, etc. perspectives. emily: we continued with dick costolo and moved on to what

else? twitter. he ran the social media platform got his0-2015 and we take. been -- jack has been backfilling the ranks. there was a lot of news about executive departures in 2016, but at the same time he was doing a great job of bringing in people to fill those positions. the new cfo, everybody speaks very highly of him. same with the people on the engineering team -- leadership. -- world-class, he is going to be an extraordinary ceo.

anthony did a great job with jack to keep the financial house in order. emily: do you think the turnaround is long-term or is it just a short-term thing? : twitter is one of the most important mediums in the world. i have every believe in the told that it will continue be an independent company and thrive. things i and/or about jack -- i adore about jack is that he is a very patient and thought the later, which is exactly -- patient and thoughtful leader, which is exactly what you want. i think he is the right person, not that they have got the company on it financial -- on a

financial trajectory that the internal team like and can work against, he is going to continue to be the right person to lead the company. i love that the folks in the company really feel like they have the wind in their sales. you can see it when you go hang out with people in the company now. they feel like they have got momentum behind him now. emily: what do you make of the sale chatter and who could be a likely suitor? comes.hat chatter it did when i was running the company. it seems like every couple months there is a story about someone or another big interested in the company. has been focused on the things that they need to focus on. the people in the company know well enough to not paid any heed

pay it any heed. do you think facebook's loss could be twitter's gain this year? or is this something that all of these platforms are going to have to reckon with? what are the consequences? dick: the biggest consequence for twitter was the statements coming out of facebook just a couple fridays ago that they were going to sort of re-think the way the newsfeed worked to be much more about social sharing and less about news, publishers, and media. ohat to me is a big boon t twitter.

twitter has sort of always been about that. working closely with media companies, this is the bull's of the world -- pulse of the world. twitter can feel like they are the single distribution vehicle these media companies. that is a huge boost for twitter and its relationship with content providers. emily: that was dick costolo, former twitter ceo. bloomberg operates a global news network on twitter called tick-tock. next we would hear from heather bellini. her take on performance from 2018 ahead. later this hour we will speak a ceo about the cyberattack that has already plagued the

olympics. this is bloomberg. ♪

♪ emily: the ceo of salesforce says a movement is coming at facebook and it will not be pretty. he said that unilever's recent threat to pull advertisements from the social media giant is just the start of a growing backlash against facebook. --.ays i posed this question taunus guest,-- to our next heather bellini. this?ow important is a chiefnk if you are marketing officer, you want to make sure that your protecting your brand. brand safety is top of mind.

it is not just for facebook, but it is also for youtube and google. it has been experiencing the same type of feedback. i think maybe some of this might be a little bit overdone. i think -- i don't think that facebook and google are tried to create an environment where this type of backlash is according -- occurring. i think they are making a lot of efforts and inroads, whether it is investing in people to try and make sure they are getting rid of this content before it's online, or investing in a i -- a.i. to do that. i think they are truly focused on it. emily: how much do you think it will impact revenue? do think it will have a material impact on revenue? >> you have to think about the platform, whether it is facebook, or google with youtube. these are multibillion user

platforms. 1.4 daily active users for facebook. if you are an advertiser, you going to walk away from that many eyeballs? you have heard sheryl sandberg say many times that we could deliver the super bowl, in terms of reach, every day. i think this is a call to action. this --that ceos of these big companies want to see more done. i don't think they can ignore these platforms. emily: what about the fact that for the first time users in the u.s. did not go -- grow? >> yes, they declined. the u.s. and canada are about just under 190 million users.

you're at a point where we don't really model a lot of growth, if any government and daily active in daily active users for the company. i don't think that should be a very big surprise. ir growth has been in a lot of emerging economies. you have to continue to focus on the value that advertisers are getting from these platforms. they are getting a lot of improved targeting, better targeting that they could get -- then they can get on any other medium. they are seeing return of investment on these ads continue to go up. your sink at pricing go up -- pricing go up.ad

emily: facebook has been making all the rhythm -- algorithm changes. interesting to see the dichotomy there. youtube is struggling with its own issues. what do you think the big headlands are for you to -- headwinds are for youtube? >> i would say they are just concerned about that on youtube as they are with facebook. again, in partnership with the advertisers, and from a measurements perspective, people just want to see the standards continue to move in the right direction. i think unfortunately it has how a sign of the times this message has evolved. these platforms, not that they went off the rails, but the

issues is what users have been posting, i think collectively everyone is more focused on it. you have start to see some of that change with some of the algorithmic changes on facebook. emily: that was heather bellini, analyst at goldman sachs. still ahead, bill gurley joins us. why he is very optimistic about uber under new leadership, next. bloombergdes of " technology" are live streaming. this is bloomberg. ♪

emily: welcome back to "best of bloomberg technology." bill gurley has been making headlines. gurley took the witness stand during the waymo uber trial. from the goldman sachs technology conference in san francisco, we asked about the state of venture capital. this is something that has been going on gradually for a 20 rather than something that happened yesterday. if you go back years, decades, there are famous people who are

known for coming into a board room. competition has made it so that the majority of the biggest fears of our mixing out on the next investment. they are afraid of having a reputation of someone who asks too many questions or pushes too hard. it has led to a situation weather is not a lot of stewardship for discipline and results. >> what can you do about that? bill: i don't know, it it is a tricky problem. >> did that happen at uber? bill: i did not bring it up related to that. there are a lot of investors here who are reaching down into these private companies. when they hear that, they say that is what i experienced. i think it is a broad-based problem. competition,f that how is the rate increase going

to impact the industry? investors inrtest the world tell you macro is impossible. i offer that caveat i-4 i offer commentary. likely.it is extremely a lot of issues that exist in our industry and investment categories are due to the excessively low interest rates. if you give the ability to drill holes, they will drill as many as they can. low interest rates are speculation, and there is more money in late stage available to these private companies than ever before. $500 billion was unthinkable. what changes it. smart people would say inflation is on the calm, and that will cause the fed to raise. it may not be a wall we want to

look over. emily: you have talked to softbank, and a first look at deals with more money than anyone. is that a concern for you? is it boxing you out? things i talkhe about on stage is that it is a national -- natural park to the company's evolution. i believe that being public helps the company run better. it is an enforced discipline. these people are extremely smart. they ask provocative questions and you have to be on your a game. college. to being an these massive amounts of money, that natural evolution, here is how i look at it. like it or not, it is a reality we have to adapt to. we are spending time figuring

out how to coevolved. we are forced to play the game on the field. >> goobers financials came out yesterday. help us make sense out of the spread. are those losses going to go away? switched with my partner, so i am not involved in those things being distributed. i am further way and excited. the things they are accomplishing, there are some strong profit drivers at the high-end of the market. theyre starting to hear are being very successful. i am very optimistic. we have a great new team on board who know how to run profitable companies. and you are forced to play this game on the field issue. emily: we are making that it t-shirt for you. uber and waymo, how do you feel

about that, and what does it signify now that they have avoided a long drawnout trial? how do you feel about the new guard and are you hopeful there are not more skeletons? bill: i am super excited about where we are now versus where we were. i think it is clear from london, dara is starting to build up a track record to put out these fires and attack these problems. i don't know if there are more, but i have a high degree of confidence that our probability of moving through them is better than it was. i think he is starting to earn credibility in that role. did you know anything about the hack? bill: i did not. >> do you think this will have an impact? they spoke in front of the senate last week and answered

questions, and went through those details. >> do you think the developments will impact programs? bill: it is possible. i think people want to make sure the structure and the system that are set up are being used in appropriate ways. made comments and martin has made some comments about if they could do it over again, those would become new policies built in everyone's program. sheryl sandberg said it is the very best way to protect yourself. it is the only offensive solution. most solutions are defensive where you are building a bigger dam and trying to hold people out. this is the most leveraged way to attack. emily: one of your founders, we tell her story, one of your no,stors, when people said what specifically are you doing at benchmark to get more women on the team?

and to improve diversity at your portfolio? there are a couple trends super helpful in this regard. people like you sounding the alarm and raising awareness is super helpful. what you have done is amazing. attention.s peoples i also think the other thing we can do is point out the progress a little bit more than we have. our look at all of companies in the executive room, it is remarkably different today as a percentage than it was. even in the board room. based, it is an outlier. it is a day appointment. just by happenstance, it relates to the progress being made, i've been on for boards where women are the founders.

things are happening. i think it is continued attention from here is the problem, and continued attention about progress. by drawing attention to progress, you invite more people to try, which is helpful in the overall process. emily: that was benchmark capital partner, bill gurley. art. betting on a the online marketplace will roll out reality features for shoppers, and is exploring a credit program it helps sellers will keep money on the platform. ea had a strong quarter with a 10% increase in gross merchandise volume. coming up, hackers took aim at the winter olympics. on the front lines of cybersecurity, and taking stock of the dangers there. next. this is bloomberg. ♪

♪ most inhares jumped the

two months on year and sales that the analyst estimates. they're predicting narrow losses this year. blue apron is leading customers. to the goldman sachs technology conference where we caught up with one of the biggest players in the currency market. the ceo of ripple. ripple has gone up and down with the market. >> we have already seen markets bounced back some. i don't follow day today. the peak of the market the total asset class was $800 billion. a drop down to 300 billion. it is back to 450 or so. that is a ton of volatility.

anyone in these markets, do not follow it day-to-day. if you believe this is fundamentally a movement that is changing the nature of a new itet class, then measure over months and years, not day-to-day. was doing really well last year. there is talk about it being a benchmark. brad: i don't think it is one-size-fits-all. i think bitcoin increasingly is digital gold and it is a store of value. . not going tois solve the payments problem. the time it takes to confirm a bitcoin transaction is three to four hours. per transaction, these are $15 per transaction. than thrift.r in contrast, x rp is a thousand times faster and cheaper. it is a fraction of a cent to confirm a transaction and it takes three seconds to complete

a transaction. i look at bitcoin solving a different problem. i don't think there will be one digital asset to rule them all. i think you will see multiple players have success in the market, and that is how the market is behaving. you have quality rising to the top. emily: a lot of the volatility is due to regulation. what are you expecting? is morehope there regulation. if we want this asset class to grow up and mature, of course there should be regulation. those that combat regulation are not thinking about the benefit. the revolution of the blockchain is not going to happen outside the system, it will happen within the system. governments are not going to go away, and banks are not going to go away. some in the -- bitcoin community come from the anarchistic .iberal view ripple has been successful because we are working with the

system. we count the bank of england as a customer. central banks are working with ripple today. we expect that to continue in the future. emily: what do you think the regulations should be? brad: regulations should not change much. when you are executing a transaction using software, you're going to one regulated financial station to another regulated institution. your requirements, your anti-money laundering your bank secrecy act requirements, that does not change. the bank is doing that on the both ends. we are making the plumbing more efficient, faster and cheaper. regulatory dynamics, we should continue to have regulated financial systems. when people are, oh my gosh, the regulations are going to change, is not circumventing any

regulations. i'm not worried about that. emily: does a show where you? throwit concerns me if we the baby out with the bathwater. not all digital assets are the same. we did an op-ed piece written by our chief compliance officer to talk about the differences. assetse some digital that are designed for anonymity. they're designed to circumvent regulation. i saw a founder of a company talking about his digital assets. he said we are for drug dealers and tax evasion. of course there is going to be enforcement against that. it is crazy to me that he would say that in a public setting. is working with governments and central banks within the regulatory framework. there should be regulatory supplied tome -- the crypto market. largest digital

wallet companies in china -- emily: what does this mean, and what other partnerships are to come? the atm's of the world, the paypal's of the world, we think about how do we offer low friction between them. we are going to continue to work with players across the world. if people understand ripples value proposition, our pipeline of customers has grown, and i am excited to come back and keep you posted on those announcement. currency 20 what are you expecting? brad: despite the volatility, i think you will see a lot of bullish behavior. emily: the volatility will continue? brad: the volatility will continue. we are in adolescent stage of building an asset class. emily: my conversation with brad garlinghouse, ceo of ripple.

the winter olympics are off to a roaring start. complete with medals. while authorities have yet to name a suspect, it underscores the ever increasing need for vigilance in the face of future attacks. this ceo at the technology conference to talk about the hack and what threats he sees. >> i've lived through four different waves or phases of cybersecurity. what i mean by that, we have modern nations engaging in cyber operations. nobody knows what the rules should be. what is off-limits, what is fair game? , secrets arenage in the media. fore are no repercussions cyber operations. it is hard to figure out who is doing it. a lot of times it is like a gray area.

people do not know they're doing the wrong things in cyberspace. we are seeing a lot of attacks from nationstates against nationstates. i don't think the gloves will come off yet. there are different signals being set -- sent. emily: there are attacks that are ok? every nation needs to defend itself. every nation wants other nations secrets. there will always be espionage and some ideological differences. i think every nation is developing a modern capability for cyber operations, and we have not figured out as a global community how to operate. you describeuld russia versus china versus north korea and how they have evolved. as defenses get better, the offenses have to get better. the russians are great at this. they know how to be surreptitious and commit operations, but they cannot

operate on the scale and scope that the chinese do. the chinese, especially in the united states, have been operating with rules of engagement. they are narrow targeting, but they are more obvious. they are more widespread. north korea is less protectable. they hack for more purposes. a hack for money and espionage purposes, but they have to be destructive. other nations, we have seen vietnam on the radar. iran isther nations, getting big and cyber operations. insights into who is behind opening hacks in the olympic opening ceremony? right now, the information i have seen, i am not sure who is behind it. that is another example. anytime you do a major event, there are no repercussions. you have to do your

cybersecurity. emily: how is cybersecurity changing relative to last year? a big i haven't noticed change. if you are hacked and you know it, the impact and consequences seem higher than in the past. it has gone up in the last decade. businesso be a problem. it has gotten to be larger now. when you're hacked and you know it, consequences are growing, therefore you have more attention, and people are making that they spend more on security. emily: have you seen any market corrections? have. i don't know if i i go to the conference every year, and i can't remember how many companies are there, there are thousands aiming to do cybersecurity. it seems there are only 10 or 11 ideas. i question how much the market can support. thousand seems like too much to me. ,mily: that was kevin mandia

speaking to us at the goldman sachs technology conference. after one of the biggest cybersecurity tax, equifax has hired a new head of data security. credit join the reporting company has chief information security officer and report directly to the ceo. he held a similar job at home depot. gopro is out of the drone business. what is next for the extreme camera company? this is bloomberg. ♪

emily: the latest revolving door at snap, lucas joins snap cap parents, and was crucial to building relationships with advertisers. he is the third leading executive to leave the company in the last four months.

snap lost their head of products in january. snap says it will not be looking for a replacement for lucas. gopro has recently gotten out of the drone business. that has not dampened the ceos optimism for his camera company. he spoke with selina wang at the technology conference. his position on a partnership or acquisition has changed. my job as ceo of gopro is to look for opportunities to realize our vision, and create as big an opportunity for investors as possible. and as a standalone company that is a terrific. if we can achieve that more easily and quickly, week would jump at the chance to look at that opportunity. selena: any interested suitors yet? nick: no comment.

selena: if you change your mind, let us know. filing,g to a recent your chief operating officer will be leading the company, and he is something he was supposed to turn around the business. what explains all of this executive turnover? nick: cj was a terrific asset to our company. he helped build our software team. he was part of the team that has been leading us to turn around, and he has done great job. that gopro is even more focused in 2018 and moving forward, on our camera happen cloud businesses. the scope of the job that smaller. in addition to becoming more focused with our product line, our management team has become more focused. we are a smaller more focused business and we have a great leadership team that will grow gopro in 2018. talk about your efforts

to attract and retain top talent. ack: it starts with having in big enough vision and opportunity for people to grow their careers. being anknown as innovative company, and we have been innovative with our products and pioneering a new category, helping people capture and share themselves in new ways. innovateo continue to as a business, and grow our business model in today's world. that is something we are doing with new programs like subscription. growing thisto be obstruction part of our business in 2018 and moving forward. its initiatives like this that continue to excite, attract, and retain talent who want to come and help invent business models going forward. that thee learned drone business will be shutting down. that is something investors were excited about. what can we expect in 2018 to be

new revenue drivers for the business? nick: we have a lot of opportunity in our core business. roughly half the advertising dollars right now to sell approximately the same number of cameras we did. lineup is you gopro's selling more easily, and we see an opportunity to increase our out rising to grow our business this year. we will do that within our $400ting envelope of sub million. there is unique opportunity to grow even without our drone business. emily: that was gopro chair and ceo nick woodman speaking exclusively to selina wang. that does it for this edition of "best of bloomberg technology." we will bring you the latest in

tech throughout the week. you can tune in every day. all episodes are live streaming on twitter. check us out at technology weekdays. that is all for now. this is bloomberg. ♪ retail.

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nejra: inside the crypto landscape, digital currencies globale attention of regulators. will more oversight be good for investors? in washington, we look restrictions put in place after the crisis of being quietly unwound. renews its brexit warning, saying it won't tolerate empty shell firms. welcome to "bloomberg markets: rules & returns." i am nejra cehic.