♪ mark: i am mark crumpton, you are watching "bloomberg technology." abc news reports fired acting deputy fbi director andrew mccabe oversaw federal criminal investigations into jeff sessions nearly a year ago. that probe reportedly looked into whether sessions withheld information when testifying before congress about contacts with russian operatives. president trump is defending his decision to congratulate russian president vladimir putin on his reelection, saying his predecessor, barack obama, did the same in 2012. mr. trump tweeted "getting along with a russia is a good thing, not a bad thing and russia can

, help solve problems from north korea to the coming arms race." authorities searched the home of the texas bombing suspect mark anthony conditt who police say blew himself up as they closed in. authorities believe he was behind the five explosions in austin and suburban san antonio. and whether hees acted alone are unknown. it is the first of spring and eastern u.s. has another nor'easter. new york city is on pace to get between 10-14 inches. it is the fourth storm in three weeks. thousands of flights have been canceled. the worst of the storm is expected after sundown. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton in new york. this is bloomberg. ♪ caroline: i'm caroline hyde.

in for emily chang. this is "bloomberg technology." coming up, zuckerberg breaks his silence after facebook's muted response to the cambridge analytica fallout. our deep dive into the crisis mode at the social media platform. plus musk gets his money. , shareholders approve a compensation package. $2.6 billionwe will map the road to a potential $50 billion in executive pay for the tesla founder. tencent doubles on profit and revenue is up 50%, but celebrate the good news with a warning. we will look at the latest earnings report as asia's most valuable company. first to our lead. facebook is in the midst of its biggest controversy to date, following reports the personal data of 50 million users was obtained by an analytics firm that helped elect donald trump. lawmakers and regulators in the

u.s. and u.k. are scrutinizing the social media giant whose , shares have dropped dramatically since the news broke on march 17. meanwhile, ceo mark zuckerberg broke his silence. in a facebook post zuckerberg wrote "we have a responsibility , to protect your data and if we can't, then we don't deserve to serve you." andmberg's sarah frier another wrote on this in the current issue of bloomberg businessweek. welcome. sara i want to start with you. , the latest mark zuckerberg said, what caught your eye? sara: a few things he is, as , people hoped he would, outlining concrete steps to make sure this does not happen in the future. things ite steps, seems facebook should have done years ago, which is, they are going to restrict developer access to your data if you haven't used to their app in three months, for example.

these are issues that have to do with the developers in their apps on facebook as it relates to the cambridge analytica scandal. this isn't a big privacy overhaul for facebook. zuckerberg, as many note on twitter, didn't specifically apologize. however, he did say he is taking responsibility for what happened here, and sheryl sandberg, the chief operating officer of facebook says she deeply regrets what happened. caroline: they are both taking to the social media platform. i'm digging into our bloomberg terminal. if you type in g #btv and put in the number 9703, you can see how much effect this has had on the market capitalization of facebook. it was slightly higher, 490 $2 -- it ticked slightly higher today, at $492 still a lot but billion. it is down significantly. what is also down his morale inside facebook. >> we were able to talk to

people who were at the meeting yesterday with the deputy general counsel. what was striking there, despite zuckerberg's statement today, is that normally zuckerberg has , been the one to be the damage controller, to come out and address employees. the fact that they put this lawyer in front of the company was a disappointment to some. i think there is a pretty big disconnect at facebook. it is a largely left-leaning staff, obviously based in silicon valley, most of them voted for democrats. on the other hand, this is a company that has to be neutral because they want to have people from both parties. the trump phenomenon, and this specific scandal, presents a bit of a problem for them, because it requires zuckerberg to be balanced, but also cater to these, a lot of bleeding heart liberals who work there. caroline: talking of catering, now needs to cater potentially

the business for the future. sarah talk to us about the , business model now fares from here. some analysts talk about radical action that needs to be taken, more radical action than has been taken in the past, particularly regarding how you might limit segmenting of the audience. you might be able to therefore limit any privacy data breaches going forward. is this not the business model? sarah: let me draw a distinction between what cambridge analytica did, which was gather data that was from an app that a developer used, and the advertising model. cambridge analytica later used data like that to target people in the trump campaign. the advertising model on facebook uses a different kind of data through facebook's actual platform where you can , target certain segments. it is a little different, but this whole situation has raised a lot of questions from regulators. to your question about what the risk is to their business, the

risk is that regulars -- regulators come out and say we , don't trust facebook's privacy. you need to put more walls in their in terms of how you share data, not just with developers but also with other properties , like whatsapp and instagram. we have seen a lot of this concern in europe, which has resulted in the rollout of the gdpr rules. in the u.s. we could see something similar but mostly we , will see calls for zuckerberg and sandberg to testify, for them to come out and explain to congress what is going on, and try to educate them. if congress sees problems here, they can take action. caroline: regulatory issues abound here. max, i want to ask you about the ramifications on you and i and the user. i am looking at a statement from he put onrberg that facebook. it says, this was a breach of trust. he says it was a reach of trust between cambridge analytica and facebook, but also a breach of

trust between facebook and the people who shared the data with us and expect us to protect it. what about the feelings of the user base changing? if you stop trusting the data, how the data is used, before we were fine to sacrifice data for the product, but that is not the case anymore. max: i think a few things are going on. you might say people are falling out of love with facebook a bit. in north america, which is the core market for facebook, the numbers declined for the first time in the most recent quarter. engagement has been down. i think that is a sense that people are thinking about this company a little differently. maybe it is going from, the cool thing you do with your friends to something that is a little bit more like linkedin, something you have to do. i think that changes the calculus in terms of what you are willing to share. the other point is, as the zuckerberg statement alludes, there is a lot of data floating

around between facebook and its app developers and advertisers, and facebook hasn't done a great job of keeping an eye on it. i think what this scandal brings to the forefront is how much of our information is out there in the ether, waiting for somebody to do something with it. that can be a little scary. caroline: can be a little scary for the whole social media arena right now. sara, you not only cover facebook, but twitter as well. are we seeing calls not only for zuckerberg to take to the stands but other social media giants? , sarah: absolutely. we have seen that lawmakers want to hear not only from zuckerberg, but also from google, twitter. they want to hear all of tech explain how this stuff works, because one of the trends we have seen happen, as people see this crisis unfold, not just this crisis but also the issue

, with russia's influence of the presidential election using social media, they are being scandalized by the way things have worked for years. they are wanting to understand the things that years ago, we gave these apps permission to do. now, they are so much bigger, so much stronger, have so much power over the shape of democracy in the world. one of the problems is that they have taken what works for a commercial advertiser, if you are trying to sell someone shoes, and they are doing it for political advertising without much of a differentiator between how they treat those two things. caroline: it is a fascinating time. we have seen twitter reaction. ironically, they are taking to social media to tell us about these issues. tristan harris was at google design and is now the closest thing the atlantic says silicon valley has to a conscience. he says when the stakes are so high, the integrity of

elections, agreements about truth the data of 50 million , people, i ask employees of all tech companies, what is more important? your loyalty or protecting the fabric of society from eroding? max, a longer-term question. is this a time of reckoning? do you think social media giants have realized how giant they are, and are now willing to address this a little faster and discuss this with the public? max: it is tempting to say this is a turning point. the only counterargument would be that we have had many of these turning points with facebook over the years. every time, mark zuckerberg, with the help of sheryl sandberg, when she joined the company, have been able to get past it. revoltsve been user from the jump. what feels different here is the caliber of people who are stepping up. tristan harris is one.

the cofounder of whatsapp tweeted the "delete facebook" hashtag, which is stunning because he sold his company to the cofounder of whatsapp facebook for $19 billion. you are talking about somebody who benefited from facebook coming out and saying something. that said facebook is doing , great. notwithstanding this drop in the market cap, i don't think they want to change too much if they don't have to. that is why there's a bit of a reluctance to come out and do something really dramatic here on the part of mark zuckerberg. caroline: we will see. thank you very much, great reporting from sarah frier and max chafkin. look for their articles in the new bloomberg businessweek. the european union wants to hear from facebook. we look at how they could punish the social media giant, next. if you like bloomberg news, check us out on the radio. listen to us on the bloomberg radio app. this is bloomberg. ♪

the calls for facebook to speak to government officials over the misuse of data are growing louder. theresa may made her demands to the social media giant provide answers. >> people need to have confidence in how their personal data is being used, and i would expect facebook, cambridge analytica, and all organizations involved to comply with the investigation that is taking place. i am pleased to say the bill we are bringing forward on data protection will strengthen legislation around data protection and give the ipo commissioner proper power to make sure they comply.

caroline: the response to facebook. the penalties for violating consumers' privacy are far stiffer in europe and america. they can avoid paying $25 million or 4% of their annual revenue, whichever is higher. the european commissioner for justice spoke to bloomberg about that scenario. what she expects to hear from facebook in their upcoming meeting. >> i will have several serious questions, especially on how this could have happened whether , they have neglected the privacy rules, whether they were careful enough and following the ensuredich should have the trust of the people. >> you are curtailed to some

extent in one -- what kind of sanctions you could impose. you defined facebook negligence in some way. you said you would be imposing drastic sanctions. how? how would you do that? >> at this moment in europe, member states are responsible for imposing sanctions. the united kingdom, in the case of the breach, they can impose a sanction up to half a million pounds, and the sanctions differ from state to state. which will stop in may this year because we are unifying the rules, including the sanctions, and the new protection regulations. the member states to enforce much higher sanctions, which cannot be applied on this current case. >> that starts may 25.

you are asking the working groups, the 29 working party, to investigate all of this. have you contacted every single nation in the e.u.? are they all on board with this. >> all the member states are represented and they met yesterday, and they confirmed that they are unified in launching the investigations. in case of they find out the privacy rules and the rights of people in their states might have been reached. this is an important moment, because i think if they connect and join their power, they can consolidate it. >> could this set some kind of precedent? what are you hoping for as an outcome if facebook were found guilty or negligent?

>> i am not happy at all about this case because in my view, , this is not only about data protection breaches, this is about a threat to democracy and individual freedoms of people. of course this will serve as a precedent for the future, and i can say in europe, we are ready for these cases. also, for the preventive measures, because as i mentioned, regulation is very tough. we require strict rules in the e.u., especially as far as the consent of the people is concerned, because we want providers to have the consent of people. the people who must understand the purpose, why they data is collected, and what the provider will do with the data. of course, the providers are monetizing the data, but the

people must know what is behind that and what are the plans. >> will you be specifically asking facebook for mark zuckerberg to come to europe and speak before parliament or national parliaments? >> there will likely come the request of such hearings. tomorrow, the prime ministers and the presidents of the member states will gather in brussels and at the request of president macron, this will be on the agenda. we can expect a consolidated approach from the member states. it is very likely the national parliaments will require to get the explanation. caroline: that was the european commissioner for justice speaking to bloomberg. headlines crossing the terminal, twitter's chief information

security officer is said to be leaving the company. he joined the company in 2015, and announced his departure three weeks ago internally. it is now going externally. this is hot on the heels of the news that information engineers at google and facebook have been announcing their departures. this is bloomberg. ♪

caroline: now, a story we continue to watch. buyingtravis kalanick is a stake in a real estate company and installing himself as ceo. the company develops industrial and parking real estate. kalanick was ousted as uber's ceo last year and has sold $1.4 billion of the company's stock.

tesla shareholders approved elon musk's $2.6 billion pay package. the electric carmaker's board voted in favor of an unprecedented 10 figure award of stock options. if musk's plans to turn the automaker into one of the biggest carmakers is a successful he could end up with , $50 billion. our reporter has a fascinating story out. he already has a significant amount of wealth tied up with tesla. why did they think this might incentivize him more? >> that is the question everybody was asking, when the package was announced back in january. essentially, it is a way, a very expensive way to show shareholders that elon will be around for the next 10 years. he is not going anywhere. he will remain focused on tesla, and it provides a roadmap for the company, outlining ambitious

goals to become one of the just companies in the world. >> talk to us about those goals. how do 2.6 billion dollars in options become $50 billion? where do the revenues and the size of the company need to get to? anders: the size of the company, there is definitely a goal. the option package will gradually, if the company continues to grow, the top goal is $650 billion, which is bigger than facebook and berkshire hathaway. the company needs to grow revenue and earnings before certain items in tandem with growing the market cap. how that will be achieved is nowhere to be found in this award, so that has led to speculation as to what tesla will do. will it conduct more am in day &a, buy more companies?

one could imagine that this outlines the plan for tesla to go beyond electric cars and solar panels, because there is no carmaker in the world that is, that has a $650 billion market cap. how tesla will get there, we are not sure. caroline: what about those that perhaps didn't like the sound of this payday? not every single shareholder was pro, including the california state teachers retirement association. what are their concerns? max: the biggest concern we have heard is, a $2.6 billion award for one person is too much money. even though musk is really into growth and they understand that in the statement today, saying, we are fully behind elon musk and we like what he is doing with the company, we just think this is a bit outside. it howe: $50 billion, can that be outsized? thank you for joining us.

coming up, the facebook scandal has wiped out more than $40 billion from its market cap. we will hear from analysts with two opposing outlooks, next. this is bloomberg. ♪

>> it is 11:29 a.m. in -- the european union has plans to tax big tech, saying it must tax companies that make money and other nations, even if they are not physically present, it would any countrytax and that reaches the equivalent of a $.6 million. they estimate that up to 150 companies could be affected. around half from the u.s. a man tasked with drumming up business for the uk's said they could leave the european union before a trade deal is agreed. brexit is 12 months away, and it

could happen with the no clear idea for the future relationship. however, he is confident the city of london will retain its status as one of the leading global financial business centers. -- ae winter stiff-armed late winter storm in new york canceled 5000 flights and many schools. it is the fourth system to hit the -- a late winter storm in new state . previous storms left 2 million people with out power and cost an estimated $2 billion in damage. >> i am sophie kamaruddin. turned moression mixed as it shares slide in china and hong kong. tencent leading the drop on the hang seng. in shanghai, the losses are accelerating after the pboc moved in lockstep with the fed,

raising rates by five basis point in open market operations. chinese operators are the biggest laggards. the kospi with it the korean won after the be ok governor shrugged off concerns. the won could be set to break out of its reason -- recent trading range. the aussie down 0.3% after the miss in february jobs data. 390 ringgit eying the handle. pressure on japanese stocks. the nikkei 225 headed for the first gain in four sessions. boding well for japanese exporters and electronics makers. i want to check in on bonds. ratesg ahead of a decision. hawkish and dovish messages over the last month. indonesian bonds ticking up.

its regional peers are tightening. we have worries of demand from china. we see copper gaining ground in shanghai, and iron in singapore. ♪ caroline: this is "bloomberg technology." i am caroline hyde. let's return to our top story facebook embroiled in its , biggest controversy over the exposure of personal data from millions of customers to cambridge analytica. the news has wiped billions from the social media giant's market cap, while the price stabilized today. headline risk is not going away. we are joined by brian, an analyst. ell rating onh a s facebook. on the phone, an analyst with the opposite view. an outperform rating on the stock. welcome both of you. brian, i will start with you.

systemic mismanagement is your worry. how will this hit the business fundamentals? >> i saw it accelerating before all of this. the reason for that is because most of wall street was ignoring limits to growth, that all digital advertising faces. they are ignoring costs that would be rising, and people are looking past this when you go beyond 2020. we had a lot of issues over the last 18 months that were concerning. we had advertising measurement errors, an inability to take down inappropriate content when requested without a police report, a ton of other issues. selling illegal ads and not having processes in place to stop that. you can look at any one of those things in isolation and say, oop s. and then you get this and read the original guardian article

from december 2015, and it lays out this path that was so clearly not followed. facebook can claim that, we sent a letter. you sent a letter, that is it. good for them. it sounds to me like there is some operational problem. that is a new risk. caroline: ben, you are expecting more than just letters in the future. you say there could be more radical actions taken, but this won't dent your view that this is a buy? ben: the stock is relatively cheap. based on what we expected earnings to be in the for seeable future. a lot of interesting issues are raised by the recent headlines, but my job is to be an equity analyst and figure out what the financial impact of this is. thus far, we don't see significant impact. i don't see changing my model dramatically based on these things. lots of interesting social issues to discuss. some of those could impact the company, but in terms of the

actual financials now, a lot of negative headlines, but i don't see a lot of negative impact to the actual financial model. caroline: respond to that, brian. brian: it makes it worse than i would have expected. again, i don't think i am far from consensus on current year or next year. that is not the issue. it is beyond that where there are issues in terms of growth. where there are new risks that are amplified, when it comes to something like gdpr, in europe, that is the most important thing that will impact digital advertising. caroline: what about gdpr, it comes and action may 25, it is e.u. rule. brian: this is the general data protection regulation. it is unclear how this will play out in terms of what decisions advertisers will make. ambiguity and uncertainty rules, even among large advertisers two months away from implementation, about how you can use data. it is probably negative for the overall industry, but it is not certain.

it is the fines. it is not clear whether the e.u. would pursue facebook and google aggressively, it is unambiguous, they will go after them. this is the problem. you get that element of regulatory risk where you could think, maybe they can out-litigate or out-last. that will happen. you can look at the possibility of that in the u.s., these are taylor risks -- these are tail risks you can't anticipate. they will have to incur more costs and will have to do things that will intentionally to manage the business. those will impact the model. those are risks. caroline: have you incorporated regulatory risk within your model? is it baked in, from your perspective? ben: i have been covering this space for almost 20 years. political, regulatory, legal risks have been around since the beginning. they are legitimate concerns, however we have seen the , internet and advertising in particular grow at dramatic levels over the entire

period. i don't want to dismiss these are get too comfortable with these issues. brian raises some valid points, but the fact is this is where , users are. as long as users are there, advertisers will have no choice but to follow them. if the headlines do lead to more people leaving these platforms, that is a real legitimate risk, something we will watch for. not a lot of these issues are dramatically new. they are not dramatically different from the past. again, there are interesting social issues to discuss. but our role is to focus on the model and i don't see a lot of meaningful changes now. caroline: both you and ben cover facebook. many a stock, one is twitter. i want to delve into the twitter and bring up g #btv 9702. are shows the impact we

seeing on twitter and the cost of hedging twitter at the moment. we have seen issues of facebook have a contagion effect. people are having to pay up more to hedge their exposure on the twitter stock. what about twitter? what about google's youtube? how much of this could be a contagious element? brian: i don't see much of an impact on twitter or snap because of this. it is possible tertiary players or independent publishers could benefit. gdpr is the issue at hand. anybody who has a direct relationship with consumer probably does relatively better, but i don't think the regulatory risks meaningfully impact twitter. they are niche offerings aren't affected. they may be a beneficiary. advertisers can say, where else will you spend the money? the obvious place is alphabet and google.

they are relatively better positioned if facebook becomes the whipping boy. caroline: ben, can you respond to that? what about the impact on the rest of the social media giants? ben: overall, the political, regulatory, legal risks are risks for the industry. can we take the data to better target advertising? how will that work in the context of political advertising and the context of issues around news we have seen. those are systemic issues around the industry. they have been around since the beginning of the internet. it is not necessarily dramatically new. there is a lot of focus today. you are seeing new regulations put in place, but i don't see it dramatically changing how advertisers are able to use targeting across these platforms. caroline: that is why the price target remains at $200 for facebook. thank you, gentlemen. coming up, one social network ceo is betting big on bitcoin.

jack dorsey's thoughts on bitcoin. this is bloomberg. ♪

caroline: cryptocurrencies have not been off to a hot start in bitcoin hasn't been able to come 2018. close to its all-time highs of jack dorsey is staying positive. december 2017. he believes bitcoin will be the world's single currency in 10 years. he has doubled down on the cryptocurrency in an interview published by the times of

london. dorsey said back in bitcoin january provided an opportunity to get more people access to the financial system. staying with the current landscape, i want to bring in bloomberg technology's selina wang, who is standing by in new york. >> that is right. i am here with the chairman of ldj capital. it is a multifamily office and he is also the head of a crypto-focused hedge fund. thank you for joining us today. i want to talk about the bitcoin rally. we're seeing optimism after the g20 conference, where we did not see a unified clampdown on the currency. what is your take? david: it has been a very cold winter. we got involved in 2011. hoping to get it passed job sacks. it will be a cold winter. regulators haven't given us guidance on how to deal with this. this is the biggest market in

the world, and asia is hot for cryptocurrencies. this year is the cryptocurrency wall street time. said, we think cryptocurrency and bitcoin, will be worth $30,000 at the year end. selina: do you think there will be a single currency of the internet, or will there be multiples? david: right now, we have 1500. hit the cousin a of the other ones chasing its tail. they are starting to execute and create products that are similar or at least supplying quicker solutions. now they are starting to chase the top five. the top five will change order. do you'd -- selina:

disagree with a dorsey that there will be just one single currency for the internet? david: there will be today, we hundreds. have 1500. he may have meant that will be an acceptable currency on a global basis because it was the first one in 2009, but there are too many out there. again, some of them are fraudulent and weird and strange. there is too much hype. we have to calm down. selina: your fund invests in many of these initial offerings. of all the ways you can get money and be funded, it is one of the easiest to run scams are. how are you screening for legitimate investment? david: i said at last year was the cryptocurrency era. the revenge of occupy wall street in 2009 was bitcoin. today, it is crypto wall street. this year, public companies, i am on the board for six of them and the real companies are saying, how do we create more loyalty and tracking of what we are doing with coins? how do we know what is going on?

blockchain online cryptocurrency allows you to track everything from the beginning, and it is a forensic accounting solution. right now we get companies like cbs mainstream , companies saying, this technology is great on the blockchain because you can track things. the crypto portion of it is the next step, when you start trading these blockchain exchanges. the rest will come in and say, can we take these tokens, loyalty programs, software solutions, and add value to shareholders by adding more to it? selina: obviously, there are legitimate reasons for doing an ico, but what proportion are illegitimate? david: the way i look at them today is like i did in the bc days. does the entrepreneur understand shareholder value? they have a solid team? do they have a solid problem we need to have solved? until recently it was hard to

engage, because there were all ideas for building something that didn't exist. we will see more of those. the rest, such as dogcoin, jesuscoin, there are all these strange coins and there is no business. focus on real businesses. that makes my life easier. selina: seems like it is the wild west when it comes to ipos. the fcc said they should be registered with agency. david: they are right. there are countries like korea and other markets that have said too early that they will do this or that, and they have made the market go up and down. the fcc is taking their time and they are right now clamping down. there were 80 subpoenas last month, as well as changes. they might be breaking the rules by having coins. we are supposed to be utilities. they are shaking the tree, cleaning things up and telling everybody, we have rules in the u.s. an act is to make sure we don't

get fleeced and get a depression like 1929. selina: twitter is trying to ban ads that promote cryptocurrencies. what is the impact? david: it shakes out and removes all of the fake ico's. i am behind it. i think they are doing the right thing. it legitimizes my investments. it gives us more value by taking away the easy ways to pump and dump. it is not illegal to pump and dump in crypto, but it should be according to me. selina: fascinating insights thanks for your time, david , drake of ldj capital. back to you. caroline: fascinating conversation, thank you very much. we are coming up, tencent raking it in. thanks to wechat, in part, just how well the chinese internet giant did during its fourth quarter.

this is bloomberg. ♪

caroline: president trump is planning to announce trade sanctions on china thursday. this time amounting to $60 million worth over intellectual property violations. last year the president instructed his trade representative to investigate allegations that china steals intellectual property and forces american companies to transfer technological know-how to chinese firms as a condition of doing business in the country. the wall street journal is reporting china is preparing to retaliate with levees aimed at industries in states that employ trump supporters. sticking with china big news for , chinese internet giant tencent, announcing wednesday doubled to during

$3.3 billion its fourth quarter. drivers of growth tend to be weaker, as tony ma pointed out. >> our platforms continue to gather steam. combined mau of wechat increased year over year to $999 million. it is at after the 2018 chinese $1 billion new year. caroline: for more, let's bring in stephen engle live in hong kong. talk to us about this. the profit goes up, but there is no warning about that margin. is still stuckt to its bread-and-butter, mobile and pc gaming. such as honor of kings. also, leveraging off its more than one billion users in its wechat social messaging platforms.

also, qq. to drive the user base to other services that they are spending a lot more money to build out, to go beyond the core competency, like cloud computing like artificial intelligence, like the financial services and the like. the margins have been squeezed. when you have more than a billion users on wechat alone in the first quarter of this year, it begs the question, and these questions were begged to tony ma at that news conference -- is there a chance to have a security breach ala facebook at tencent? , theis what martin lau president of the company, had to say basically saying there is no , chance that could happen. >> this is at the top of our concern, because we felt this is really our responsibility, and the basis of our users' trust with us. so that is why we have a lot of

different measures, including technical measures, to prevent the leak of data. stephen: a couple other notes from the tencent press conference, another reason why the margins are being squeezed is, the cost soared 72% in the fourth quarter. they have been acquiring more content in video and music and martin lau saying they are getting closer to a possible ipo for the music division, saying if the market conditions are correct, they could return to china with a domestic listing. a cdr listing. the chinese rules would need to be changed. the chinese government wants these big tech companies to list on the mainland. tencent is listed in hong kong. caroline: it is fascinating how much tencent is spreading its investment, even in europe. earlier this week we had tencent put money into a fintech startup based in germany called n26.

contributenaging to to overall profits. you say about listing at home, what about the general focus of the business going forward? are people worried about investments they make in these areas? stephen: this is a heated competition with the likes of alibaba which creates an ecosystem in china. tencent has acquired more than 600 companies, acquired or invested in more than 600 companies. they are definitely going beyond their bread and butter in gaming and social media, into payment and financial services and other developing parts of the world, including europe. caroline: fascinating stuff. stephen engle, thank you for getting up so early to join us. that does it for this edition of "bloomberg technology." be sure to catch thursday's show. we have a chief technology officer joining us.

let's take a look at one last chart. 9701, sure, the stock has fallen, but tech is trading at a premium. this is bloomberg. ♪

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