heart of the anti-trap sediment -- travels to california, he lost the state in a two to one margin and has since but the nation and challenging his policies. president trump says he is waiting for court cases to be decided before acting on raising the age limit to buy certain guns. the president tweeted he will be backing tougher background and willr gun fires allow trained teachers to carry guns. nasa's acting administrator plans to retire at the end of april after a 30 year career with the agency. they are without a leader without president trump's nominee and his recognition comes after the agency is looking to pivot back into human spaceflight after the program ended in 2011. a pilot whose helicopter crashed in new york's east river reported engine failure before

going down. all five passengers died in that crash and the pilot managed to escape and was rescued by a tugboat. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. ♪ emily: this is "bloomberg technology". ambition, dropbox's giving it a valuation while below the $10 billion its neck and private fundraising. we will discuss. and a blockchain at sxsw and will hear from bitcoin rival later this hour. apple passes on acquiring netflix or disney but goes all

in on a digital magazine. first to our lead. it has been a wealth since bloomberg broke the news of dropbox planning for an ipo and what comes into focus is one of the most highly anticipated tech offerings of the year and we learned dropbox is coming to go public -- the number well below the 10 billion dollars clocked -- what is happening here? to answer that, i will come bloomberg news reporter alex barinka who first took the news. breakdown the numbers we are getting here. isx: what happened today they told wall street they are million shares and hoping to sell shares at the initial offering, it is 25% $10 billion

estimate. what i heardning, today as dropbox raise money at a time when valuations are really high, perhaps to elevated and private funding rounds. now they have to take their salt. if you look at the last two years of what your box has done with their business, it has fundamentally improved. you have gotten closer to profit bitterly -- profitability. the some of those premiums, fear of missing out premium, is not something that the public market investors want to bacon into what they pay for the stock make in.o they also announced a reverse stock split for current inside investors, meaning investors who

want be diluted. explain what this means. it means that existing employees hold the rights they had beforehand. the salesforce investment is interesting. this is a concurrent plan of it -- private placement. this comes on the heels of a announcement last week saying they will integrate dropbox's products with customers relation management software so they can upsell each other and the great products. not only is it a partnership but it is clear that salesforce has some skin in the game with this large stake. it is a can to what we saw with comcast and snap when it listed a year ago/interesting move with salesforce. week, this was one

of dropbox is biggest competitors and they were called pseudo-competitors. i asked if he was concerned about dropbox, a company bringing in more money than box. take a listen. >> the numbers are a tale of two companies, one is a revenue business -- that is end-users and you and i using it for professional or personal use. a third of the revenue is b2b. that tilts more towards small business or teams whereas our revenue tilts towards midsized companies and large enterprises. emily: widget angry with his take that they don't compete as much as we think? alex: currently, that seems to be the case. users aremillion paying, so they haven't laid this out but it seems like they

are enterprise accounts. one of the big differences is box has a concerted sales effort and dropbox doesn't. they come from self-service and the product you pay for, and that is the difference. i know he is competing with drew houston over at dropbox, but it does seem like he and his company have been focusing on the large accounts while dropbox is pushing more towards the guerrilla approach. at in with teams internally big companies and tried to figure out how to sell across its customer base from their. re. emily: alex barinka, thank you so much, as always. shares on wall street on april 2 according to people familiar with the matter. instead, existing spotify

stockholders will offer shares to investors in a direct listing. here to discuss more on this trend is david goldman, he has been working in investment banking with a focus on tech companies for over 20 years. what you make of spotify's decision of how to approach this? i think spotify's principal goal is taking the finger in the eye of wall street and doing something a little disruptive and unconventional. they didn't need the money. emily: why do it at all? david: they had a clock ticking that they need to address. the reported at the time indicated that money had a clock that made more expensive with the passage of time. the clock stopped and they were publicly traded. one way is to do a direct listing. emily: you think other companies will follow? david: others will follow, although it is hard to do. you need a dominant brand and

relative dominance in your sector, both of which they have. and you don't need the money. most companies go public because they want to raise cash. there is no shortage of additional capital from private investors so they need to go public to raise money. most companies approaching public markets need the money. emily: how risky is it? david: i don't think it is risky, it avoids the embarrassment of trading down, like blue apron who traded down, and it avoids the roadshow where you have to and meet institutional investors. it puts cash on your balance sheet come and get the spend months getting ready because these -- the sec requires the same amount of work and disclosure. and you are going to be public, which rejected answer to investors every day without the benefit of taking money. emily: you see them offering more shares in the public market and how long will that take? david: i think six to 12 months when the price matches its

will, spot five -- spotify try to raise a couple of billion dollars for its own balance sheet. emily: as we just discussed, dropbox is going to traditional way -- on the private market, what is your take? david: the only people disappointed by that use as investors. anyone who invested early and dropbox is going to be just fine. with all of dropbox's principal competitors being publicly traded companies, they didn't have a choice. they want to use the stock as acquisition currency and even the depth of their balance sheet and raise money. if they can go public, more power to them. emily: a unique position to going public, not by ipo but a reverse merger. explain how this works. isid: the basic idea -- this

new wine and old bottles, these used to be called public shells and line polls and in the 90's it were called special acquisition companies. go raise a public shell, investors put money and, and they have to years to look at something. if it is true they will buy fend will come and go raise a public certainly overnight fend will becomes a public company by merging with a public shell. emily: what do you make of the strategy? david: i think it is a classic example of the true scandal of what is a legal. they are the path of financing a last resort. if you can't go public any other way and cap get thanks to take you out or markets to sport you, you can find somebody to buy you that is already public and accesses as a balance sheet. but it is a bad deal for investors. emily: and they don't have good

interest from investors. problemt is a terrible with adverse selection. here is a little known fact. since 2003, the average return for spec investors is -20%. average return for sponsors is positive 1900%. that is all you need to know. they take 20% off the top from these public shells just by organizing the effort. emily: while i have you on to talk about revolution and the strategy there. we had steve case on the show and to talk about investing in other parts of the country outside of the beltway and silicon valley. how many of your companies are outside of silicon valley? valley? david: all of our companies except for one are outside of the bay area. andind great opportunities

dinners at a better price if you can get out of the echo chamber that is silicon valley. we make everybody when they come through and we have invested from time to time, but the deals are better elsewhere and entrepreneurs are good. emily: the new york times wrote an article claiming silicon valley is over. travelingbunch of vcs to the midwest, maybe they are part -- late to the party of that revolution. what you make of that? david: i wouldn't say silicon valley is over. there's a lot of capital and it is not going anywhere. has been tempered by some arrogance that has been back down to earth, there is 49 other states and they are not devoid of entrepreneurship. they are devoid of significant those of capital, and that is starting to change. it is a good outcome from that nation and my industry. emily: where are you placing your bets this year? -- a $5 million

check, we like entrepreneurs who are scrappy and put companies together without a lot of money and are focused in big categories were incumbents are fat and lazy and that the other way. i can be an enterprise for consumer play or a policy genius, which is a new way to buy life insurance. we are in frame bridge which is a new way different what is traditionally a labor intensive store for photographs or memorabilia. big markets, but new and innovative ways of doing things. emily: david golden, back so much. now to another story, goldman sachs has paid the way for david solomon to be the next ceo will be the sole president, and other copresident will be leaving and goldman has given no timeline for current ceo lloyd blankfein. we spoke with david solomon about the tech sector.

take a listen. david: it is set up in a way that is constructive for m and a activity and for ipo activity. ipo started to pick up a little bit towards the end of 2017 and we have a very healthy ipo backlog. we also have an environment for a variety of reasons why 2018 should set up to be an active year for strategic m&a and technology. emily: coming up, his spot, and talks for a bit of qualcomm and a threat to national security? why the ceo is meeting with u.s. treasury officials. and if you like bloomberg news, check us out on the radio on bloomberg.com. this is bloomberg. ♪

emily: story we are watching, investors want to and talks with dell about the reverse merger. ? capital asset management says it will be a terrible deal for the company and shareholders. michael dell controls vmware and is on interstate company and is trying to put all pieces of his empire under one publicly traded group. broadcom ceo is trying to broadcom ceo is trying to salvage his companies 170 billion dollars takeover of rival chipmaker qualcomm. them with treasury officials to address concerns about potential show security concerns about the deal. human with president trump in november and is meeting came after a letter from the treasury to companies on sunday that said michelle sigourney risks from the takeover macron the president to veto the deal. concerns are the deal could hurt all caps competitiveness to expand its influence on key

wireless technologies. for more i am bringing in ian king covers chipmakers. turn,r twist, another another report on this possible takeover. what is happening here? this morning we got a letter made public from the treasury sayingent on the half -- we don't like this, another letter saying not only do we not like this but we found some evidence that says there are security concerns that we told you not to take bread and we need a next location or else we are going to take this to the president, and he has the power to veto the deal. emily: what is the likelihood of this getting done? >> we have been talking about this for a long time, and shareholders wanted. according to what we reported, all caps shareholders voted with their feet and said we want broadcom to take control of this company.

it may not matter because the u.s. government a have to veto. emily: is it a threat to national security? >> that is part of the problem. the government through everything and there, there is a huge brady of things in their. -- a combination of r&d. the issue is they don't have to say specifically what is going. all they have to say is we have an issue, come and explain yourself. emily: broadcom is spitting up the process of moving headquarters to san diego. how does that fit in? >> the idea is if they move back to this country, then it will be a u.s. company again. what city said his hold on a minute -- we don't like that. you should have told us. emily: no rest for the weary or

ian king, this a few the wall street journal reported that intel is considering a bid for broadcom. >> on friday. emily: your day off. >> my day off, a competitor came out with that, and it is logical for a large company like intel, which may impact indirectly by the still to look into playing scenarios. emily: so not advanced at this stage that could it become more realistic? there,uple of things which ever way you stack it. will be a huge deal to try the by qualcomm or broadcom, and the government is in favor of these giant combinations, or at least that is what it looks like the wind is blowing. it may not be that likely, but who knows at this point? fory: what is the timeline

a broadcom and qualcomm deal to be blocked or not? now, 30 days,s which in theory to take us to early april. in time for the new shareholder meeting -- but, as we reported, theylly what happens is come back and say it is complicated and we need 45 days, which would take us to the middle of summer. keep fightingg, the good fight and thank you for the play-by-play. coming up, our exclusive conversation with sadiq khan and his message to uber. and "bloomberg technology" is livestreaming on twitter. this is bloomberg. ♪

emily: sxsw is in full spring -- full swing, the mayor of london to drum up business for the city spoke to the daybreak asia and yet stern words are companies like uber, saying that the play by the rules if they want to do business in london. he also explained why london is the place to be when it comes to technology. a number of are reasons why tech companies and scallop startups moved to london. we have access to talent, accounted operation in london and invested in the next generation of having the skills of tomorrow. axis the capital. london is a place -- access to capital. thoroughly, our ecosystem. tech,e of creativity and

all caps, regulators, and finance, explains why 40% of the world's companies have european headquarters in london. number two is paris with 8%. london is a great city to start a business, to skillet a business. if you are -- scale up a business. google and facebook investing in headquarters in london, and has been the big headline in terms of being under fire with your administration in terms of the license being revoked. what you need to see from the company to continue to operate in the city of london? sadiq: uber is a popular service around the world. the link and at two taxes that is popular, but my message to no matter howone,

many employees you employ or pr experts. you have to play by the rules. if you played by the rules can do business in london. i want london to be a place for disruptive companies come, where tech companies come. but, you have to play by the rules. the good news is they knew global ceo of uber has a different attitude of the previous ceo. the noises and language coming from him bodes well for the resolution of differences the regulator has ovewith uber. emily: this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us."

that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. alisa: i am alisa parenti in washington and you are watching bloomberg technology. here is a check of first wrote news. tripillerson shortened his

to africa and will return after spending a few hours and niger today instead of spending the night as originally planned. before takinghad off for nigeria. a partner in this region and we know chad faces borders and of its we appreciate the role in providing security for its own citizens and its contribution to the security of its neighbors as well. alisa: chat is a u.s. ally and expressed disappointment about trumps inclusion of the band travel list. the russian spy exposed to a nerve agent is a type that was from russia and theresa may said it is highly likely that russia poisoned the former spy and his daughter. it is too soon to call early

elections but the option is on the table and the coalition is feeding with granting exemption to military service to orthodox men. dox men. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am alisa parenti. this is bloomberg. it is just after 5:30 p.m. in a 30 a.m. int is sydney and where joined by paul allen with a look at the markets. good morning to you. >> good morning, lisa. the market is up and running and in 30 minutes, trading is up at two dents of 1% now. this is after a mixed lead with the dow and s&p weekend and the nasdaq is hitting a record high, up a third of 1%, and still uncertainty remaining with tariffs and exemptions. take a look at futures around

the region. futures are stronger, meanwhile nikkei futures is weaker, and the aussie dollar looking steady. the don't change to the japanese yen. a quick look at commodities, all looking weaker. gold unchanged -- and crude irong off a little, and also off. things happening in hong kong, belowading band that's seven dollars and 85 u.s., the authority will have to intervene. more from the brick technology -- more from "bloomberg technology" next. emily: i'm emily chang and back to our top stories. tech companies going public.

we took a look at dropbox and spotify's plans for public debuts, dropbox the traditional route and spotify bucking tradition. for more on what to bring in caroline who is standing by with an early spotify investor for an insider take to the route towards an ipo. satline: it is the man who on the spotify board for years and made sure they were in the 08.ding round and 20 listing way of spotify? not need tooes raise money, it is a company with lots of cash, as you can read through the filing documents. they are a well-known brand. conventionalis a -- but serves the company's

purposes. caroline: they are up against competitors like apple left phenomenal amounts of cash. surely they will tap the market, what else have to availability of going public at all? par-jorgen: it really starts with the relationship with the consumers that are using the product. spotify has -- since the launch in october of 2008, consistently one step ahead of the competition. they have been extremely good in delighting customers with products, suggestions, playlists, and to ration that is heads and shoulders above the others. which is what everyone is thinking about here, came to the market for late. they bet on download as being the predominant way to deliver

music. it turned out it was the wrong choice to make and they came to late to the party. you think willfy remain a step ahead even if they find avenues becoming blocked? we look at voices this as a way to consume music. we now have speakers from apple as well. while they put roadblocks to allow such seamless use of spotify? par-jorgen: it could be a change in how people want to consume their music with their voice assistants. is one of the skills and alexa and is functioning really well there. we also see no reason why it should not be in other devices. that is the hallmarks of spotify's success. dampen ubiquitous in every

device there is. there is an integration that spotify has done. caroline: so they don't need to tap the market now. why come to the market now than, what is driving them? par-jorgen: it is fair to say understood that this was a capital intensive business and needed to rely on the private capital markets. they raised a lot of money over the years, and the underlying promise to most of those is thats, including us, there would be a liquidity event. when you build a phenomenal company as spotify, the best way to get to that point is to a listing. caroline: so you will be sellers on the first day of trade? owners sincee are 10 years and this is the latest stage of its existence.

it is natural that we will at some point in time exit our position there. ways, be done in various one is to sell, or distribute shares we hold as investors. we know that quite a few fund investors are intrigued of the long-term prospects of spotify. be aquently, that could very well functioning option as well. caroline: what price will you have to see for spotify to exit? par-jorgen: that is hard to say. good comparables and peers that you can peg spotify against. caroline: like who? par-jorgen: netflix is a good one for many reasons. caroline: can it get to the evaluation?

par-jorgen: it has similar margins, spotify has stronger growth rate. it is international. it has a massive amount of subscribers. i think what is perhaps stronger with spotify is it is much more cash efficient model. spotify gets paid on day one with subscriptions and don't have to fund entire productions that netflix does. consequently, the cash is required to run the operation and spotify is substantially less. caroline: you said it is a liquidity event that investors need. eventoes this liquidity mean for european tech? par-jorgen: it is phenomenal that we have the biggest listing ever a vacant elegy company happening -- technology company

happening. happening from a small country a north, it has fueled ecosystem him of the are in my 22 years as a vc. it has surprised even me. nowe are lots of companies in the shadows of spotify. a few other big players consists of people who have done their first experience with these great companies, and spotify is probably the biggest and the finest of them all. caroline: will we see these listings? par-jorgen: i think a few companies could match the kind

thinknding required, so i the goldman sachs and morgan stanley's can see a good this is ahead. caroline: has been wonderful having you here. partner. emily: caroline hyde in london. new york wants a bigger piece of wantsoming toronto office to occupy 20 locations in toronto by 2020. offices in toronto were 90% occupied and wework is benefiting off of global shared offices and freelance contracts. apple is making another big push in video and it is not by acquiring netflix. all the details next. this is bloomberg. ♪

emily: tesla temporarily suspended election of the model three sedan for a week in late february. it was a plan that ultimately will help increase output of the closely watched vehicle and model three production was i don't and the production rate has been a source of fascination i fans and investors alike and the work has developed a tool to estimate output. february, the tracker indicated the weekly production rate had plunged. cheap at sxsw suggest that apple isn't interested in buying netflix or disney and instead will build out its own original video content. the tech giant is wide a digital

magazine for in undisclosed amount. it will boost efforts of online services and media and that app will that user subscribe to 200 magazines for nine dollars and a nine cents a month. joining us is tom. what is he saying? his response was that he was that he wasn't talking about netflix directly but how they don't make big acquisitions and want to focus on quality, not quantity. he mentioned that they are not looking to buy a studio. they don't want to get into that business. apple is focusing on its own video content creation business. has 40 people in this business. they hired a couple of

executives from sony pictures tv. that came out several months ago. they have their own effort underway and is an seleka want to go and create this big splash, big acquisition along the lines of netflix. it is not in their dna to make these big tens of billions of dollars acquisitions. emily: he said a.m. to produce a small number of quality shows rather than quantity. i could ask tim cook the same question on earnings day and he told me that we look at companies and ask ourselves if these companies will improve the license customers? can we build a better product with it? required 19 companies in 2017, that is a company every few weeks. again, certainly not a definitive answer, but i specifically said, why not buy netflix? and he did not close the door. tom: maybe he sent you a signal

thatthat he wasn't trying to coy at sxsw. you saw the other acquisition, texture. that is keeping with the kinds of deals that apple likes to make. this is another service they can add and develop that service revenue, the stream of revenue to have got going there. they want to make a big push their and is a good way for them to favor with publishers who are feeling snubbed by facebook and google these days. emily: how does it fit into the apple news strategy? tom: you can go to apple and get access to the kinds of publications that you subscribe to. show that a way to you are working with the subscribers, you are on their side. facebook make changes to their algorithm recently whereby publishers feel shortchanged. google -- there is a love-hate

relationship with publishers on google. it is a great platform and great way to distribute stuff but are we getting the play we deserve? and can we actually built our subscriber base through google? google has been making efforts in that direction, but apple is trying to say that we are from the publishers too. emily: tom giles, thank you for stopping by. we head back to sxsw and the man who cofounded the second largest cryptocurrency. that is next. this is bloomberg. ♪

netflix, iting of is still the year's best s&p atformers and the shares not between the blister make market cap has ballooned by $70 million this month alone, but issued

shares at $300 a share. and back to our coverage of supper southwest would be complete without our spotlight blockchain. a decentralized future through blockchain, but he is perhaps better known of being the cofounder of the roads second largest cryptocurrency. he talked about luck chains role -- blockchain's role. >> we had four or so thousand , and wen attendance have a woman in blockchain event going on right now as we speak. mathematicas with -- and a full slate of those types of activities. what around and being in the front events around the area,

everybody is talking about blockchain in the event or peripherally. >> to what extent are they highlighting the coin? i point that out because the bitcoin bubble burst once you check out the ice action of some of the demand for blockchain the currencies at large. it may be hard to tell because we are focused on building centralized applications on the platform. we're not focused on the currencies like the coin, either is a fuel that powers applications on the decentralized world wide web. i would argue that we have seen a correction in our space, but calling the bubble to have been topped is a little shortsighted. i think there is tremendous foundational fundamental work

being built into our ecosystem and it is the very early days of the ecosystem. the severalt quarters of 2017 we saw an explosion of initial coin offerings, many of which were built to run on top of the and for young network and there is a lot of anxiety about the crackdown and status of the many coins. how much does that certain the m if the inethereu applications of it is under scrutiny? joseph: we are extremely happy with how things are going regulators -- there is tokenized securities or utility tokens that would be's considered securities. that is actually true in this country as well in the u.s. there are many great applications being felt worldwide, and with other blockchain technologies, but

there are many bad and fraudulent projects so it is pauseable for a bit of a in our ecosystem. it is important for many projects to do their legal homework and issue tokens properly. >> we talk about the projects um ashed on ethere promising, but the underlying the form is not robust with scaling. a few months ago there was a card game that brought the whole thing to a halt. what is the timeline of a roadmap that someone can launch something and be expected to run without slowing down the network? remarkably robust, and throughout history some poor developers have been pushing the bounds on scalability for every platform to have been on. transactions and

put that enables better collaboration. we are seeing technologies like state channels and technologies like plasma that is going to ratify this year and the next months about all kinds of different applications. application was one ask test showing where clients will week and where those issues have been fixed already. it shows us how we can build a better and more scalable architecture. short-term there will be excellent fixes in 2018 and will see dramatic scalability increases. emily: that was joe lubin, cofounder of consensus speaking with bloomberg at sxsw. last week, all the talk was about amazon checking accounts and now it is about a new amazon credit card. amazon plans to offer credit cards to businesses who shot on the site, and the new product

will feature reward points and at offerings like business insurance through a portal designed for a small business customers. in the meantime, jeff bezos says he is committing is time to travel winnings to space , and said he wants future generations to a world that is expanding and growing. he spoke at the explorers club dinner in new york city this weekend where he sampled iguana. yes, iguana. and received a buzz aldrin space exploration award. that does it for bloomberg technology. a reminder that we livestream on twitter. check us out on weekdays. that is all for now. this is bloomberg. ♪

♪ >> uncertainty over tariffs and job driven gains and investors rating,the inflation the cost of immigration in the long-running economic expansion. betty: nds