♪ 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-coo. plus, deep dive on how to get more women in tech. former twitter ceo and cofounder ceo dick costolo joins us. former uber board member bill gurley ways in. why he sees a lot of promise ahead.

our coverage this week from the goldman sachs technology conference right here in san francisco. we'll hear from tech heavyweights throughout the hour including the ceos of gopro, ripple, and goldman sachs. let's kick it off with david solomon, goldman sachs resident and co-coo. david: the year is set up in a way in which i think it should be very constructive for m&a activity and ipo activity. ipo activity started to pick up toward the end of we have got a 2017. very healthy ipo backlog, but we also have an environment for a variety of reasons why meeting for a8 should set up strategic year for m&a. private market valuations, are they healthy right now? i think private market valuations have heightened the bit over the last 12-24 months.

capital has been tighter for private market funding. i would not say that valuations are bubbly. in an environment for the last five years 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. when you look at large debt, it is amazing what is going on. you look at a company like amazon, it is growing 30% on $180 billion of revenues. you look at a company like facebook on $40 billion of revenue is growing 40%. these are big companies with large market caps. they are growing very quickly, and that obviously creates interest is around other businesses that touch that space. emily: are valuations going down? david: they are growing very quickly, and that obviously -- david: 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 some semblance emily: lloyd is that it is better for trading. we are seeing a lot of volatility. do you expect that to keep up and how do you take advantage of it? david: 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. people think there is a chance of some inflation in the economy and you see strong growth numbers coming out. that will bring volatility back to a more normal environment. there is 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. emily: you are advising qualcomm on a potential takeover of broadcom. do you think the $100 billion size of the deal would be

-- an outlier. that is still a large number. they are growing organically. they have not participated in the m&a consolidation. they have grown organically and are growing organically. that one of these big companies steps in and enters the space that does something that is significant? sure, it is possible. a $100hink by and large, billion is going to be a big thing. we are watching the cryptocurrency space and risk-adjusted -- we are interested. emily: 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 cautiously. we are trying to watch it like everybody else. we think blockchain is a very interesting technology. what are not cryptocurrencies become valuable and how that works out is something we will watch. emily: you have been vocal about hiring women, what specifically are you doing to make that happen? david: diversity is hugely important for goldman sachs. it is an important part of business. for us to be successful with our 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 course of last year we , have made great progress. we brought the diversity of women in our summer class coming in up from in the low 40's up to the higher 40's. we really focused on that entry points in the pipeline. if your entry point in the pipeline creates a more diverse population over time, it is pretty much the same. you should do better at having a broader pool. we continue to be very focused on that. solomon,at was david goldman sachs president and co-coo. shareholders at the meeting. 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, saying what important roles of being coo is passing is passing theo baton. coming up, we talk gender and inequality. we talk about the twitter turnaround and more. that is next. if you like bloomberg news check us out on the radio. you can listen in the u.s. on sirius xm. this is bloomberg. ♪

♪ along >> uber's ceo has predicted amazon style losses. losses as they expand.

losses as they expand. 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 revenue of $7.5 billion. over the last week, we have been examining a male-dominated culture in the tech industry. my next guest is well aware of the problem. he has made it his mission to hire as many women as men at his latest company, course. i would like to welcome former twitter ceo dick costolo. dick: i generally try to keep it 50% men and 50% women across all areas of the company. i felt like when you fall behind, as is common knowledge based on all of the gender and

diversity studies that come out from all the companies, twitter, interests, etc., once you get behind on diversity on your engineering team, it comes impossible to catch up. you have a women engineers who are interviewing and they want to meet other women engineers here there are still many women engineers. only spending time interviewing other women 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. i decided if it was 50-50 early on and always that way on the leadership team and entering -- engineering, it would be easier to stay that way.

emily: why don't more ceos and founders think like you? dick: i think they just don't think about it. if you're a first-time founder, you're trying to raise money. you wake up everyday responsible for people you have never been responsible for the review want to squeeze your head together and cry about the things you are worrying about. they don't think about it. or they feel like it is something they can't deal with later. there is probably a general sense of well, there is only 30 people in the company right now, that will be an issue because we will deal with that later. the reality is once you fault 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 just because that is the way everything in the company is.

for example, if you have 90% men in engineering and 10% junior engineer guys are hanging out with other junior engineer guys. they know mostly guys. that is who gets referred in. that is what i mean by 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 more equal men and women. dick: i would frame it differently. i always felt that when i had a more diverse group of perspectives on a decision that needed to be made -- look, when you are a leader or manager 80% , of what you do is gathering input so that you can make the best decisions. if you have the broadest

possible set of perspectives, that will be better than a very narrow set of respected. emily: in fact, you can move more quickly because you don't have two go run as people. dick: 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 half of your user base might be about why or how -- be thinking about why or how they use the base. we had a team that matches the user base at chorus. i always thought that was something you should work towards, to have more of those kinds of -- you know, let's -- less narrow socioeconomic, demographic, gender-based, etc. perspectives. emily: i continued with dick costolo and moved on to what else? twitter.

it has been a charmed moment for twitter lately. its first row profit in latest earnings results. he ran the social media platform from 2010-2015 and we got his take. dick: jack has been backfilling the ranks. -- ranks of the management team over the past few years, since there was a lot of news about 2015. executive departures in 2016, same time jack was doing a great job of bringing in people to fill those positions. the cfo from american express has done well. the new cfo, everybody speaks very highly of him. same with folks on the product team and engineering team. anthony is world-class, he is going to be an extraordinary ceo. i am really excited for him. jack has done a great job of going the bench and anthony did

a great job with jack bringing d to keep thee financial house in order. emily: do you think the turnaround is long-term or is it just a short-term thing? dick: twitter is one of the most important mediums in the world. i have every believe in the world that it will continue to be an independent company and thrive. one of the many things i adore about jack is that he is very -- a very calm and 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 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 sails. 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? dick: that chatter comes and 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. i am confident and assured jack has them all focused on the things that they need to focus on. the beauty of that is i think the people in the company know well enough to not pay it any heed.

emily: a big story, inside a hellish year. facebook's -- 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 will be the consequences? dick: the biggest consequence me in my minds to 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. if i heard mark correctly, that is a big boon to twitter. twitter has sort of always been

about that this is happening and the pulse of the planet. to the extent they can now feel like we are the place for publishers again, we are the single distribution vehicle for them to work closely with on things like real-time events and what is going on, that is a boon to contents and advertisers. emily: that was dick costolo, former twitter ceo and founder of chorus. bloomberg operates a global news network on twitter called tick-tock. still ahead, we will hear from wall street heavyweight heather bellini. she covers all the bat facebook for goldman sachs. her take on performance from 2018 ahead. later this hour we will speak with 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. in the new york times, it was said that unilever's recent threat to pull advertisements from the social media giant is just the start of a growing backlash against facebook. he also criticized facebook's decision to dismiss human editors in favor of algorithms saying, "that is -- that started the downward spiral that are in today." i posed this question to our next guest, heather bellini. we talked to her about this week's goldman tech -- sex meeting. i ask her just how important it was pulling the ads from facebook. i think if you are a chief 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 don't think that facebook and google are trying to create an environment where this type of backlash is occurring. i do think they are making a lot of efforts and inroads, whether to trynvesting in people and make sure they are getting rid of this content before it ever gets online or investing in , a.i. to do that. these are platforms that have exploded over a short. of time. 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? heather: at the end of the day, you have to think about the platform, whether it is facebook, or google with youtube. these are multibillion user platforms.

if you look at daily active users for facebook, 1.4 billion. there is a billion and a half plus active users on youtube. 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. -- day to u.s. advertisers. i think this is a call to action. i think the cmo's of these big companies want to see more done. i also think facebook and twitter are responding in kind. 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 grow? heather: yes, they declined. 700 or 800,000 users. 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 in daily active users given the percentage of the population they are already hitting. i don't think that should be a very big surprise. if you look at where growth and usage has been, it has been predominantly outside of the u.s. in emerging economies. it was not surprising to me. you have to continue to focus on the value that advertisers are getting from the platforms despite what they may be saying in back channels. they are getting a lot of improved targeting, better targeting then they can get on any other medium. they are we seeing return of investment on these ads continue to go up. facebook continues to do things that improve the reach and targeting. therefore, you are seeing ad pricing go up for the company, and it is working the way it should. emily: you mentioned youtube and

they said they should get back to baby pictures. the dichotomy see there and facebook has been changing all the are grow them changes. what do you think the big headwinds are for you to? -- for youtube? heather: we talked to agencies a lot and i would say they are just as concerned about that on youtube as they are with facebook. i think 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 been a sign of the times how this message has evolved. -- notlatforms maybe did 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. youtube is focused on it as well. emily: that was heather bellini, analyst at goldman sachs. still ahead, bill gurley joins us for an exclusive interview trial whywaymo uber wraps up. he is very optimistic about uber under new leadership, next. all episodes of "bloomberg technology" are live streaming. you can check us out at technology weekdays. this is bloomberg. ♪

♪ emily: welcome back to "best of bloomberg technology." i'm emily chang. bill gurley has been making headlines. gurley took the witness stand during the waymo uber trial. he spoke to us for an exclusive interview days after from the goldman sachs technology conference in san francisco. we asked the capital partner about the state of venture capital. take a listen. bill: this is something that has been going on gradually for a 20-year period 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 and demanding. hyper competition has made it so that the majority of the biggest fears is missing out on the next investment. they are afraid of having a reputation of someone who asks too many questions or pushes too hard. i think it has led to a situation where there is not a lot of stewardship for discipline and results. >> what can be done 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. i think it is something that when i talk to a lot of investors here who are reaching down into the private companies. when they hear that, they say, that is what we just experienced. i think it is a broad-based problem. >> speaking of that competition, how is the rate increase going to impact the industry?

bill: the smartest investors in the world tell you macro is impossible. i offer that caviar before i -- caveat before i offer any commentary. i think it is extremely likely. a lot of issues that exist in our industry and investment categories are due to the successfully low interest rate. a man was made a name in macro investing says if you give texas oilman the ability to drill all's, they will drill as many as they possibly can. low interest rates are speculation, and there is more money in late stage available to these private companies than ever before. $500 billion private rounds was unthinkable. i don't know what changes it. smart people would say inflation is on the calm, and that will cause the fed to raise. there may not be a wall we want

to look over. we see. 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? bill: one of the things i talk about on stage is that it is a and national park of the company is to -- companies 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. i equate it to being in the nfl versus playing in college. these massive amounts of money, which are doing delay 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

evolve. evolve --co- 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? bill: i 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. you are starting to hear they -- the ubereats business being very successful. i am very optimistic. we have a great new team on board who know how to run profitable companies. it will take some time. and you are forced to play this game on the field issue. there is still quite a bit of capital. emily: we are making that it t-shirt for you. uber and waymo settled, 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, waymo, 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, there may be 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. investors ine those, did you know anything about the hack? bill: i did not. emily: do you think this will have an impact? bill: both uber and hacker one spoke in front of the senate and

went throughout the details. emily: do think the developments will impact the bounty programs? bill: it is possible. i think people want to make sure the structure and the system -- systems that are set up are being used in appropriate ways. dara has made comments and martin has made some comments about if they could do it over again, they would change those and 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 security solutions are defensive, where you are building a bigger dam and trying to hold people out. this is the most leveraged way to attack. book: we heard about the for increasing diversity in silicon valley. one of your founders, we tell her story, one of your investors, when people said no, what specifically are you doing at benchmark to get more women on the team?

and to improve diversity at your portfolio? bill: there are a couple trends that are super helpful in this regard. people like you sounding the alarm and raising awareness is super helpful. what you have done is amazing. all these people are talking about it. it heightens peoples attention. i also think the other thing we can do is point out the progress a little bit more than we have. if i look at all of our companies in the executive room, it is remarkably different today as a percentage than it was. even in the board room. katrina employee based, it is an outlier. it is majority women. it is a day appointment. it highlights it being successful. 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. ai. is betting on 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. ebay had a strong quarter with a 10% increase in gross merchandise volume. coming up, hackers took aim at the winter olympics. we sit down with the ceo of one of the firms on the frontlines of cybersecurity, and talk about the dangers there. next. this is bloomberg. ♪

♪ emily: shares jumped the most in two months on year and sales that the analyst estimates. -- that beat analysts estimates. they're predicting narrow losses this year. blue apron is bleeding customers. let's go back to the goldman sachs technology conference where we caught up with one of the biggest players in the digital currency market. brad garlinghouse, the ceo of ripple. ripple has gone up and down with the market. take a listen. brad: we have already seen markets bounced back some. i don't follow it day to day. the peak of the market the total asset class was $800 billion. a drop down to $300 billion. it is back to $450 billion or so. that is a ton of volatility.

my counsel for anyone following these markets is don't follow the day today. if you believe this is fundamentally a movement that is changing the nature of a new asset class, then measure it over months and years, not day-to-day. >> ripple was doing really well last year. there is talk about it being a the next bitcoin. is that a benchmark for you? 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. bitcoin is not going to solve the payments problem. the time it takes to confirm a bitcoin transaction is three to four hours. per transaction, these are $15 fee per transaction. that is faster than thrift. in contrast, xrp 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 and how the overall market caps have been trending. emily: a lot of the volatility is due to regulation. what are you expecting? brad: i hope there is more 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 libertarian view. one of the reasons why ripple has been successful is because we are working with the system. we count the bank of england as

a customer. the saudi arabian monetary authority is 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. what any by that is when you are executing a transaction using rep. posey: software, you're going to one regulated financial station to another regulated institution. your requirements, your anti-money laundering requirements, 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. from my point of view, the regulatory dynamics, we should continue to have regulated financial systems. when people are, oh my gosh, the regulations are going to change, i think xrp is not circumventing any regulations. i'm not worried about that. emily: what about what is

happening in asia, does that concern you? brad: it concerns me if we throw the baby out with the bathwater. we have to understand that not all digital assets are the same. we did an op-ed piece written by our chief compliance officer to talk about some of the differences. you have some digital assets 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. in contrast, xrp is working with central governments and a central banks and within the regulatory framework. you certainly were embracing the fact that there should be regulatory framework supplied to the crypto market. you just partnered with a

digital wall company? what does this mean and what other partnerships are to come? brad: 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 rep ripple's value proposition, our pipeline of customers has grown, and i am excited to come back and keep you posted on those announcement. emily: cryptocurrency, 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 developing a new asset class. you will continue to see volatility. emily: my conversation with brad garlinghouse, ceo of ripple. the winter olympics are off to a

roaring start. complete with metals and feel-good stories, and a cyber attack. it cause network communications to fail during the opening ceremonies. while authorities have yet to name a suspect, it underscores the ever increasing need for vigilance in the face of future attacks. we set down with 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. we are in the fourth. 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? how do you conduct espionage. -- espionage? we know espionage, secrets are in the media. there are no repercussions for 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.

that is the phase we are in right now. 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 sent. emily: it is interesting you're in the idea of right and wrong meeting there are some attacks that are ok? kevin: every nation needs to defend itself. every nation wants other nations -- nation's 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. emily: how would you describe threats from russia versus china versus north korea, and how heavily involved? kevin: they are all getting better. 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. these to a broad birth of targeting purity -- targeting. they are narrow targeting, but they are more obvious. they are more widespread. north korea is less protectable. they hack for more purposes. they hack to make money and espionage purposes but they have , to be destructive. if you look at other nations, we have seen vietnam on the radar. we are seeing other nations also. iran is getting big and cyber operations. it's a level of capability and different targeting. emily: any insights into who is behind opening hacks in the olympic opening ceremony? there is speculation about russia. kevin: from right now, the information i have seen, i am not sure who is behind it. we do not have the attribution just yet. that is another example. anytime you do a major event, there are no repercussions. you have to do physical security

at major events, but you also have to do your cybersecurity. emily: how is cybersecurity changing relative to last year? kevin: i haven't noticed a big 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. it used to be when you are hacked and you knew it, it was a business problem. it has gotten to be much larger now. when you're hacked and you know it, consequences are growing, therefore you have more attention, and people are making sure that at least they get what they spend more on security. emily: have you seen any market corrections? kevin: i don't know if i have. i keep looking around. 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 many companies the market can support. thousands feels like too much to me. emily: that was kevin mandia, speaking to us at the goldman

sachs technology conference. after one of the biggest cybersecurity attacks in history, equifax has hired a new head of data security. he will join the credit reporting company has chief information security officer and report directly to the ceo. he previously held a similar job at home depot. coming up, gopro is out of the drone business. what is next for the extreme adventure camera company? we sit down with the ceo, nick woodman. this is bloomberg. ♪

♪ emily: with the latest revolving door at snap, jeff lucas joins cap and was crucial to building relationships with advertisers. he is the third leading executive to depart 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. the company's ad revenue depends less on direct sales with a ship to automatic bidding -- shift to automatic bidding. 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. it was an exclusive interval about the new revenue stream and if 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 if that is a standalone company that is a terrific. , if we can achieve that more easily and quickly, week would -- we would jump at the chance to look at that opportunity. selena: any interested suitors yet? nick: no comment.

selena: no comment. if you change your mind, let us know. according to a recent filing, your chief operating officer will be leaving 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 the 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 a terrific job, and we thank him for that. now that gopro is even more focused in 2018 and moving forward on our camera app and cloud businesses, the scope of the job just got 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. selina: talk about your efforts to attract and retain top

talent. nick: it starts with having in a -- having a big enough vision and opportunity for people to grow their careers. gopro is known as being an innovative company, and we have been extremely innovative with our products and pioneering a new category, helping people capture and share themselves in new ways. we also have to continue to innovate as a business, and grow our business model in today's world. that is something we are doing with new programs like subscription. we are going to growing the subscription 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 and grow gopro moving forward. selina: we learned that the drone business will be shutting down. that is something investors were excited about to turn around the business and rejuvenate growth.

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. to give you an example, we are spending roughly half the advertising dollars right now to sell approximately the same number of cameras we did it year-over-year. that tells you gopro's lineup is selling more easily, and we see an opportunity to increase our advertising to grow our business this year. we will do that within our operating envelope of sub $400 million. there is significant opportunity to grow the business even without the 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. 5:00 p.m. in new york, 2:00 p.m.

in san francisco. all episodes are live streaming on twitter. check us out at technology weekdays. that is all for now. this is bloomberg. ♪

♪ nejra: coming up on "bloomberg best," the stories that shaped the week in business around the world. the white house puts out an a budget and infrastructure, but push back. >> tough to say how they get infrastructure done. >> i hate to say it, but it is irrelevant. nejra: markets work through jitters as inflation jumped. jacob zuma gives up his grip on power. ray dalio raises his short bets against european stocks. >> all the conditions are in place for shorts, a countercyclical view. nejra: market swings have investors running but two of the biggest names in banking explain why volatility is making them smile. >>