emily: i'm emily chang, this is the "best of bloomberg technology," where we bring you all of our top interviews from the week. apple rolls out software upgrades from the iphone at the developers conference, and fires a shot across the battle at facebook. we bring you highlights and reactions. plus, microsoft returns to their developer roots with a $7.5 billion purchase of github but not all developers are happy. we speak with the microsoft ceo. a new scandal brewing at

facebook after the company revealed that shared user data with four chinese companies. we will discuss the implications of this disclosure and get the reaction in washington with congressman greg walden of oregon. first to our top story. this week, apple held its annual worldwide developer conference in san jose, where tim cook welcomed developers from around the world. >> i could not be happier to announce we now have over 20 million apple developers around the world. that is more than ever before. emily: while no new gadgets were announced, apple is giving the software that runs iphones and ipads overhaul. software engineering head craig federighi announced i.o.s. 12. with improvements to the operating system performance and operability, this coming in addition to enhanced augmented reality apps and new tools to monitor and moderate tech addiction.

the overall focus, improving speed, efficiency and making us even more connected to our devices and those devices more connected to each other. we were joined by our bloomberg tech senior editor in san francisco, who cover all things apple and was at the conference. >> what stands out the most to me is this ios merger we first wrote about. since we wrote about it, there was a lot of criticism for that story, saying it was not true. but that is what happens. this would allow you to run ios applications on mac computers and vicversa. it is a significant seachange for how apps work, and they are more important to apple than ever before. it is a core part of the service business, which the company says is its most important and fastest-growing segment of 50

billion per year. emily: a little i told you so there. he also talked about how the focus is improving performance, after years of complaints that sometimes software just does not work. >> for ios 12, we are doubling down on performance. [applause] we are working top to bottom, making improvements to make your device faster and more responsive. emily: it is interesting he is saying we aren't going to give you a dramatically different experience, just make it better. >> to be clear, they count performance improvements every year. the president makes more news in his early morning tweets than apple made in their whole announcement. emily: right, no surprises. >> last year, they introduced the home pod and did not even launch it in 2017. this conference was for

developers, they talked about apps combining that was the most monumental news. the speed performance is important for apple because they control the chips, software, and hardware. emily: and now they are making their own chips. , and their users now get their own apps so they can count things like that. they did make a point of saying even iphone users with older models will see performance improve, obviously a reaction to the dustup earlier in the year. where they were accused of slowing down phones. emily: we also got a reaction to accusations that apple is not doing enough to prevent tech addiction. take a listen to what they had to say about that. >> we know there are people who would like a little extra help in managing their use of apps, so for them, we have created limits. in your activity report, you might see an app where you want

to spend less time and you can set your own limits. emily: the irony was rich year, -- the irony was rich this year because the same time, they are giving us these tools to monitor how much time we spend, they are also working on things like group facetime that will only make us more addicted to our phones, correct? >> absolutely right. on the surface, it is quite ironic to give tools that, over time, would inspire people to use their phones less, which in turn would make less money for apple. to be honest, nobody is going to stop buying iphones, using their phones. it will become a competitive advantage, i think they have the best implementation so far, and everyone is going to have them. we might have a case of consumer saying i want to buy the best phone that does the best job of limiting that, and that is what apple is trying to do with this ios update. emily: that was our bloomberg

tech senior editor brad stone. we also caught up with thrive ceo to talk about the tech giant's push to curb tech addiction. >> these features that have like a block notification, sync them with calendar, geolocation, and give us clear visibility into how much time we are spending with different apps, games, etc., and these features are being integrated seamlessly. you know how hard it is to change behavior, and what is so exciting about this announcement today is that because they are so seamless, it is going to be much easier to use that. we know we all need to set boundaries in our relationship with technology, but we are all having a hard time doing that because we are becoming

increasingly addicted. even in this convention center, with 5600 developers from 77 countries, when craig announced these changes, there was applause from the developers at the very moment when he talked about being able to set limits, to decide how much time you spend. these are people making a living from apps, so it's shows how far the culture has changed. emily: the irony is rich, at the same time, apple is releasing features that make the technology even more addictive. like group facetime. i mean, shouldn't we just be turning off our phones? is it on the company, or is it up to us? >> ultimately, it is up to us.

but being empowered with tools and with the knowledge about how much time we are spending is good. a lot of people don't even recognize how much time they are spending on different social media, games, etc. apple announced very important parental controls, so with one touch, you can limit how much time your child is spending on certain apps. you can put down time on their phone, so when they go to sleep, they cannot access apps and social media. it is much deeper in this very important area. we know how difficult it has been for parents to navigate their children's relationship with technology, and we know there is an increased in mental health problems amongst teenagers, anxiety.

so this is really the moment when we need to respond to what is happening. emily: my conversation with thrive global ceo from the apple worldwide developer conference. the u.s. has reached an agreement with zte, the chinese telecom maker that would have been shut down for using u.s. suppliers. they will pay a billion dollar fine and put another $400 million into suspended penalty money in escrow. plus, a u.s. compliance team will monitor the company. they were initially analyzed -- penalized for breaking a sanction agreement. coming up, microsoft growing back to the roots by buying github. our conversation with microsoft ceo, next. if you like bloomberg news, check us out on the radio. you can listen on the bloomberg radio app, bloomberg.com, and sirius xm. this is bloomberg. ♪

emily: the dutch payment processing firm is heading towards one of the biggest european ipos in years. shareholders plan to raise $1.1 billion, valuing it between $7.1 billion and $8 billion. ebay had previously been a partner of audience rival paypal. microsoft announced they will purchase the programming site github. the deal helps microsoft which is increasingly relying on open source software to add programming tools. i spoke with the ceo and asked what github adds to microsoft now and in the long run. satya: if you think what's

happening in the world around us, computing is in everything. it's impacting our daily lives and economy from precision agriculture to precision medicine or personalized education, personalized banking and is driven by software and every company is becoming digital and that world is being built by developers. in fact, a linkedin stat, s that development in nontech companies like retail, energy, is growing double digits. 25% higher growth rate there than even in the tech companies. that shows we are in the very early innings of what is going to be a set of tools and staff services that are required to empower every developer out there. so that's the real strategic rationale. if you think about microsoft, we've always been a developer first company. that's how we got started with the developer tools. now we're all in on open source. and so with that really becoming together, with microsoft then

github, we can contribute a lot and stay true to theriginal ethos of github and that's how we'll operate going forward which is being developer first. emily: github has had issues finding a way to grow revenue significantly, turning a profit. they raised $2 billion just a few years ago. what is microsoft going to do differently to justify this $7.5 billion price tag? satya: you know, we feel very, very good about the growth rates github has. when it first started, whether you were a hobbyist, a student, or a small startup or a person working in a large company, to be able to use github as a free service and then they have done a good job having a premium model going from that free service to paid versions of it for organizational use. we think we can scale that by first staying true to building

that service up and making sure it's an open platform for all tools, all clouds, all platform targets as well. so we think we can bring a lot in terms of scale and reach to additional customers and additional channels but we feel very bullish about what we can do for developers just on organically growing github. emily: there has been some consternation in the developer community about this acquisition and i'm sure you've seen some of this. some critics out there saying this is a sad end to github's independence, and the list of reasons why is endless. how do you reassure them and bring them along? satya: it's a very critical element to this. we are very committed to keeping that developer-first ethos of github going forward and that's why we have really, you know, between chris, who is the c.e.o. of github and me we decided to run this company independently, even postclose. operate it as an open platform

and matt friedman who came to us has a lot of open source credentials. he will be the new maintainer if you will, of github and will stay true to what github community really demands. we have to earn the trust, no question about that. our actions from the recent past should help assure every open source developer of what microsoft intends. of course, they should measure us by what we do going forward and hold us accountable. emily: speaking of trust, there are new revelations today about data facebook shared with its device partners. you know, these ensuing controversies could have an impact on microsoft. how concerned are you about increasing tech regulation? satya: i mean, overall, i think each company is different here in terms of what their core

products are and core business models are. in our case, our entire business model is all about being custodians of data and providing services to both consumers and organizational customers. and trust is everything. in other words, we have to secure the data and use the data to benefit our customers because that's really our business model. without it there is no microsoft and no microsoft products. so to me, making sure that we live up to the high standards and expectations of our customers as well as the regulations that are already in place. take gdpr. in fact, we are taking the core tenants of gdpr and making it true for consumers and customers all over the world with our services. that's the approach we are going to take going forward. emily: you made big buys, including linkedin. i was speaking with your chairman, who said he was more supportive of big buys that are as successful as linkedin. should we be looking for you to

make more big acquisitions like this? netflix, there's perennial speculation about microsoft's interest there given it's the only big tech giant without a huge foot hold in the streaming space. satya: our first focus is organic growth and investments. we have big spenders in r&d, and that is the core. we are always going to look for secular growth markets whether it's mindcraft or linkedin or now github. we look for things where we can grow and going forward will be expansive. we need to be able to contribu's something very important to me. i don't want to get into businesses where microsoft can't contribute and execute superwell with those customers andneed to be able to operate them. emily: my conversation earlier with microsoft ceo satya

nadella. coming up, elon musk gave an upbeat outlook for tesla, but did investors buy it? and a reminder, all episodes of "bloomberg technology" are livestreaming on twitter. this is bloomberg. ♪

emily: spacex has marked their 11th mission of the year. the falcon nine rocket carried a satellite for a long time customer on monday. they are targeting roughly 30 missions total, up from a record 18 in 2017. their valuation has climbed to $25 billion, putting it on course to become the third most valuable venture backed startup in the united states. in the meantime, tesla held its annual shareholder meeting and the company faced a slew of issues from production delays to

the capricious behavior of founder and ceo elon musk. we dug into another point of contention, tesla's board and who is on it. tesla's annual shareholder meeting this year is a big one. first off, mounting pressure to shake up the board. an investment group came first, opposing the reelection of three directors. a private equity investor, elon's brother, and the ceo of 21st century fox. these three directors are up for reelection, as tesla's nine-member board shows staggered terms. the largest proxy advisory firm followed suit, urging investors to vote against murdoch and pushed a separate proposal to split the role of chairman and chief executive officer. then, steve, who has been off the board for six months, an unusually long time for the director of a public company to

be in limbo. he just parted ways with hiswn firm in november after allegations of misconduct. so why all the pressure on the board? two words, production delays. tesla has struggled to mass manufacture their model three and stock has suffered. iss is also concerned that valor capital management corp. provided consulting services to tesla, for which it was reimbursed over $34,000, a potential conflict of interest. tesla's board has long drawn flak for being comprised of elon musk's closest confidence. -- confidants. in the regulatory filing, vouching for the company directors, tesla stressed their mission to accelerate the transition to sustainable energy quote requires a board willing to commit to long-term goals. musk himself has said producing the model three would take tesla through production hell.

still, shares are up over the years, and got a boost after a break fix help the model three win a coveted recommendation. emily: those were some of the key issues on the agenda. in the end, tesla shareholders sided with the company's board, rejecting proposals to split musk's roles and reelecting those three directors. elon musk also gave an optimistic outlook, saying he expects to hit the next goal for sedandel three sudan -- by the end of the month. >> the biggest constraint is general assembly. i think we can get to 5000 a week with the two general assembly lines, but with the third one, i am highly confident we can exceed 5000 vehicles per week. emily: we spoke with an analyst who holds tesla stock and max chapman in new york.

>> the stock opened the morning after the meeting really strongly, and i think that is what investors are reacting to. for the last few months, it has been all about how many of these model 3's can they get out the door. the demand is there. it is just a question of is tesla able to get through this quote unquote "production hell." emily: he says they can get to 5000 cars per week. but production goals have been pushed back and pushed back. do you believe him this time? >> i'm optimistic. i think elon musk is capable of great things. he is literally capable of rocket science. even if he were to miss the goal by a week or two, even a month, we are long-term investors. we have high confidence in tesla. it is one of the top positions in a few of our funds. we are looking to the long-term here. it goes past the production numbers.

we think this is an autonomous electric vehicle story. that's the largest opportunity ahead, we think it is a $10 trillion market globally. we are excited that musk has realized that opportunity. it seems like he is on track to get there. emily: in the meantime, tesla is turning its attention to expanding its manufacturing capacity, talking about opening another plant, which will produce cars, battery packs, and power trains in shanghai. take a listen to tesla's leader of worldwide sales. >> we are incredibly excited to build our first tesla factory outside of the u.s. in china, specifically in shanghai. we have been holding discussions with various governments in china, really great discussions, great partners. we really look forward to

working with them in the years to come. emily: max, are there any concerns that tesla is moving ahead too quickly with its global operations, given that it cannot move fast enough here at home? >> it depends on your point of view. when you talk about the tesla optimists, what they are looking at is this future story. for the future story, china is huge. because china has this enormous market, even today. people don't realize this, but many of the best-selling electric cars are being sold in china. the country just changed the ownership rules for factories, allowing tesla to open this factory without doing a joint venture. there's a lot of opportunity there. emily: coming up, facebook's latest data controversy. we get the latest view from greg walden. plus, a former apple and google exec tony fidel joins to discuss

apple's moves to curve tech addiction. and if he thinks other tech giants will follow, too. this is bloomberg. ♪

emily: welcome back to the best of bloomberg technology. i am emily chang. another day, another round of outrage over facebook's handling of user data. only this time it is not over a consulting firm with connections to president trump, it is with four chinese consumer device makers. the companies in question are huawei, lenovo, and to others. huawei was one of a few chinese companies barred from having its products sold to the pentagon and armed forces. it is a part of federal funds being spent on the company. facebook is in a spotlight, having to answer concerns it is failing to be transparent with how its users data is being handled by third parties.

our reporter has more. reporter: it adds a lot of fuel to the fire, but i want to be clear that huawei and facebook say no data was served -- stored on the servers. the problem with that statement is we don't trust facebook anymore, after all the revelations and the policies of the last few years. lawmakers are not really taking that as a clear response to this concern. they want to know why mark zuckerberg did not mention this when he had 10 hours of congressional testimony, and he was talking about third-party relationships. why not bring up these relationships too? and so there are a lot of angry people on the show about facebook. emily: senator mark warner saying we need answers from facebook, the whole story now, not six months from now. senator marco rubio asked why they didn't reveal this deal with huawei months ago, and don't compare deals to other telecoms.

huawei.china uses what do we knew -- what do we know about the nature of this data? reporter: so this data, basically what facebook was allowing these device makers to do is build facebook app experiences into their phones. these are kind of legacy partnerships from before the app store even existed on these phones, and some people are still using these devices that have these old versions of facebook apps. so they haven't unwound these partnerships. facebook said in april it was planning to -- they did this big review of all of their relationships to find privacy holes, and they themselves noted that this was one potential privacy, potential harmful relationship should they and. -- they should end. they said that in april, that the blog was full of jargon for a regular user to understand, that this is your information flowing through a device in a

way that you didn't necessarily expect. emily: i want to go back to the memo that facebook executive andrew bosworth sent to the company where he mentioned china and talks about the lengths facebook will go to achieve growth. in 2016, he said that is why all the work we do in growth is justified, all of the questionable contact importing practices. all the language that makes people searchable by friends, all the work we do to bring more communication in, the work we will likely have to do in china some day, all of it. you know, it certainly is not a good look. sarah: it is a terrible look. but the huawei phones are used all over the world, including in the united states. right? and so what facebook is arguing that they need to have their app on one of the motorist -- the most important phone manufacturers around the world. and so that is kind of the way facing this. other companies including google and twitter have their services

on huawei phones too. yet to be seen if there is any harm that has come out of this field that we have not seen yet in the report. emily: we then turned to the view from washington and spoke with congressman greg walden. he represents oregon's second congressional district and is the chair of the house energy and commerce committee, which questioned facebook ceo mark zuckerberg in april. mr. walden: it is about communication between silicon valley and washington and silicon valley and trust and communication with their customers. that is what this is all about. that means you need to have clarity in the conversation, full disclosure, whether that is a witness table before congress or in a agreement with your customers. that is why i think users are frustrated and why members of congress as their representatives are frustrated. and we got a lot more work to do here. emily: do you think mark zuckerberg was truthful in his testimony? was he misleading? mr. walden: you know, i don't

know about either of those things. i think he was truthful. i think there was obviously more they had found out along the way, more than they knew, some they may have nuanced. i don't know, but in situations like this, you are much better to get it out on the table early on and especially when you're dealing with congress. we are trying to figure out what happened, where did it happen, with whom did it happen, and what kind of exposure did user'' data have, and to whom, and what control should they have over that? that really gets back to this trust and communication issue that is so important, whether it is with us in congress or with consumers or users. emily: other lawmakers are incensed. senator mark warner tweeting, "we need answers from facebook, the whole story now, not six months from now." senator rubio saying, "why didn't facebook just reveal this data sharing deal with huawei months ago?" don't compare this with deals to other telecom companies. the south korean government doesn't control samsung the way

china uses huawei. what is more concerning about the fact that these are chinese telecom companies that are already under scrutiny by the u.s. government? mr. walden: right. and i think that's the heart of the matter here, specifically. it is really twofold. one is the alleged past practices or current practices of some of these companies is troubling. that's why there are these discussions in national security settings. but beyond that, it is wouldn't -- why wouldn't you tell us? it's a pretty big question, but a pretty easy question. why wouldn't you fully disclose? you should. they should have. this gets back to why i think silicon valley would be well served by the ceo's, other than when they are in a crisis situation like facebook is now, to come and share with us in congress what their strategies are, what their agreements are, what their recommendations are. it is why i've invited them to do that before my committee, and so far we don't have any takers voluntarily, but we'd benefit from their presence. emily: are you going to demand

that mark zuckerberg come back? mr. walden: first of all we are going to follow up on our demand that he answer the questions we have submitted. for the record, there are some 3000 questions that came from congress to facebook, so i realize they have got to sort through all that and give us a honest and full disclosure and communication back. but clearly, with each one of these revelations, it starts a whole other cycle of what did you know and when did you know it, and did you know it in time to have disclosed it, but didn't. that's not good for facebook. and facebook is a great american company. it's a great innovator. it is like these other companies are. but they have gotten to a place where they are under intense scrutiny now, and they have to get it right, and they have to be fully transparent and improve their communications and their disclosures. that's how you maintain trust. emily: so facebook's spokesperson said the relationships didn't need to be disclosed because they were already public and announced by huawei at least twice in 2011. facebook mentioned huawei as one

of its partners in a 2012 blog post and has said other tech companies had similar arrangements. what is your response to that? greg: sounds like it was written by a technical lawyer. and that is not -- i don't know that we were going back and looking at every blog post ever posted. this gets to the point about trust and communication, whether it is in a relationship in your family or with congress. you got to realize and understand what's fair and what is fully disclosing. we are going to go back, we are looking at the questions that our members asked and the answers that we were given in much greater scrutiny of the detail, because if we are going to lawyer this up, then things get pretty technical pretty quickly, and that's not good for facebook or other companies. but if that's what we have to do, i guess that's the path we have to go down. emily: you have been pushing other silicon valley ceo's to testify. and i know you recently met with twitter ceo jack dorsey. are you concerned that other

tech companies, like twitter, google, have similar relationships with the chinese government or chinese companies in a market they have been trying to court for a very long time? mr. walden: well, let's face it, we don't know the answer to that fully, do we? clearly when we had mr. zuckerberg for the committee for five hours, this was not disclosed. they felt they had disclosed it in the past. so we don't know. we should know. you know, this is again where these companies would benefit from coming before our committee voluntarily and sharing and answering questions. the american people have a right to know, and they have a right to know more than some legalese in a disclosure agreement that, frankly, nobody reads or understands. and beyond that you can't edit , it anyway. they are just ignored. you hit click and agree, and off you go. who knows what is behind it? i think that's what really troubles consumers. they are not sure they can trust now some of these agreements,

and how their data are used or not, and with whom or not and what has been scraped or not. and i think they are saying in this information age, something needs to change here. my preference is that the tech companies would realize this and come to terms with it on their own. otherwise, they're going to end up in a regulatory scheme that may not be what's good for them or, frankly, the country. because frequently, congress tends to overreact, and we don't need to do that if we can get the answers and trust in those answers and improve that communication. so again, the invitation is wide open for the ceo's to come, and i hope they will, because different companies manage this differently. they ought to come and make their case before the representatives of the people, much like they do at conferences all around the world. emily: i do want to ask you about zte. if the trump administration does do this deal to save zte, are the national security risks that the u.s. government has

associated with the company , are they still valid? is zte as much of a national security risk as it once was? m walden: you know, i have gotten more into this discussion with the administration as late as last night, because i was concerned and have been about zte and these other companies or any foreign company, and their role in the u.s., and what they do, and how they do it. based on what i have learned, i'm a little more at ease that they would put in place requirements, and audits, and things that would make sure independently of what these devices do or do not do. if that's the case, it fixes it a bit, but i think we have to be on guard. we know the kind of cyber attacks our country faces from bad actors all around the world, whether it is china, or north korea, or iran, or you name it. we have got to be vigilant here. they are playing for keeps in these other countries. often this is state-sponsored. and we have to understand the

repercussions for national r intellectual property theft. i mean, it is just out of control. emily: coming up, apple moves to help curb tech addiction. we will hear from a tech leader who has been championing this cause to tim cook. and later this hour, our exclusive interview with the match group ceo. how the company is responding to facebook's push to launch their own dating service. this is bloomberg. ♪

emily: fox has gotten approval in the u.k. for their takeover bid of sky media. u.k. lawmakers said fox $6.6 billion acquisition can go through, provided they sell off sky's news division and could pave the way for fox to increase their bid and keep rival comcast at bay. rupert murdoch says he plans to sell sky to disney, which is part of a $52 billion sale of most of fox, which comcast is also trying to buy.

at a conference this week, apple rolled out new tools to curb the amount of time customers use apps and help monitor screen time. the men who helped start this revolution has been speaking about about the nature of tech addiction. tony fidel, a former apple and google executive, is now a principal at shape and joined caroline hyde to weigh in. >> we had tim cook actually going on record saying he was very surprised once he got the tools how much he was using his devices, more so than he thought. i think now it is no longer an open secret. we are talking about it and we are moving ahead with these new tools such as screen time from apple. i think it is a great first step, but there is a lot more we can and should do, because this is a problem that won't go away. caroline: what further steps could be taken than? -- then? tony: interestingly, if you look

at it the data they are going to be telling you about how much you are using these devices is really just about your iphone and ipad together, which is great. it is combining the two. but it is not actually going into your time on a computer. if you look at it, most adults and older kids, they are actually spending 30% to 50% or even more time on a computer. to have only one part of your digital life being represented, by that data, along with your connected tv or your connected watch, all of those things need to be put into this data package for transparency to see how much you are really using devices, not just the ones in your pocket. caroline: and what about going a cross-platform? how do you see that working out? many people don't have just one particular apple product. they might have an android or a different format. tony: well, that is a really interesting question, and that is something we are going to have to grapple with. if you look at it for the most part, most people are android

platform, or they are apple platform, what have you. right there, if we can fix that, that is 2 billion users we can get going, but you are right, we do need to address that. that is going to be a little more difficult, because it will require the two companies working together on platforms, those kinds of things. but hopefully, that might happen over time. caroline: i mean in many parts, , this is your advice. you said you were having with conversations with those on the inside of apple about these concerns of yours. did they really action what you advised? are you still having these conversations? did you speak to tim cook? tony: over email i did, but i also spoke to the other people who i have known for years. i don't know if it was based on my advice or what they were already working on, but you know, it was really great to see these kinds of steps being taken. but again, i think we need to go further, and that means these new tools need to be available to third parties.

api's and data, api's for control and data, so that third parties can create specific solutions for different types of people who have different types of needs. apple cannot make these kind of specific differences in the platform, but that is why they have the app store, to allow third parties to make customized things. you can pick up a digital weight watchers, or being able to combine your physical activity with digital activity in one calendar. apple is not providing that today, and maybe they don't need to, but they should allow third parties to be able to make access to it so we can get a more robust solution for various different needs. caroline: talk to us about other third parties. there seems to have been tension brewing in many respects between facebook and apple. we saw a demo of facebook.com being blocked or indeed some of the cookies there in the apple

new products. how do you see that falling out? if you looki think at it really, there is a set of companies who are in a position to really enable security and privacy of your data and devices. that is companies like apple. facebook, in some ways, people are saying that they are exploiting that, and not being as good to their customers or their users as they should be. so i think this war is ever going to be there. are you serving your user or your advertiser customer? i think apple is taking the high road, saying it is about security and privacy and not contract, and i think they are absolutely right. we can see what facebook is doing in the press about you know apologizing and trying to fix things. i think they have a long way to go. but the industry in general, not just facebook, has a long way to go to address these kinds of issues.

we are waking up to it, and we are no longer just letting it be. emily: that was tony fidel, former apple and google executive, now at future shapes speaking with bloomberg's , caroline hyde. still up, match's ceo joins us, and what she thinks about facebook trying to get in on online dating. this is bloomberg. ♪

emily: last month, facebook announced they would be rolling out a new dating. a fairly bold move as the social network tries to win back public trust over how the company collects and uses customer data. >> it is going to be in the facebook app, totally optional. it is opt in. if you want, you can make a dating profile. i know a lot of you are going to have questions. i want to be clear that we have designed this with privacy and safety in mind from the beginning. your friends are not going to see your profile. you are only going to be suggested people who are not your friends who have opted into

dating. through your preferences. emily: match group owns the dating apps tinder, okcupid, plenty of fish, hinge, and our time. shares fell 10% on the news, the most since 2016, but the company says it is not worried about facebook putting the moves on its business. according to data from piper jaffray's millennials are using , tinder more than any other dating app. mandy ginsburg, the ceo, joining us for an exclusive interview. mandy: we have been in the dating business for 20 plus years, and our philosophy is every day we come to work, and if we can deliver great products and what people are looking for connect and meet, we should be as a market leader. but i do think that for our , biggest growth engine, tinder, which is really the twentysomethings, i notice there are two facts. i don't think twentysomethings are going to go to facebook to date. and number two, we have seen

people want to separate their dating life from facebook. emily: you put out a pretty snarky statement when facebook announced this, and i know you have been an important developer for them and actually worked on dating features in the past. do you feel betrayed? or is there any bad blood? mandy: no, we work with facebook even today on the advertising and development side. we work with facebook all the time. i don't think it is hugely surprising. we see it in our data. we survey every quarter thousands of single people and see that people meet and connect on facebook all the time. it is just more implicit. at this point, they are launching something more explicit. we will see what they do. emily: facebook is 2 billion people, even though they have all these problems, 2 billion people still seem to be using it. that is a lot, they have a lot of data on a lot of people that could be put to helping match people up. i mean, doesn't the skill or potential scale of it concern you? mandy: it is a little bit of a

double-edged sword. what we have found, and i have been in the dating category for over 10 years, we really have grown through product innovation, chipping away at that stigma year after year. there are still lots of people resisting the category. so if we have the ability for older users internationally to say facebook is doing it, maybe it will open up more people and people will be more open to trying a dating app. we can see that people use three to four dating apps a time. it is not a one-size-fits-all industry, for sure. emily: i want to ask you a bigger, philosophical question. do you think online dating good is for society? it seems like it would be hard to deal with swiping left and swiping right, and being a millennial right now would be kind of stressful. mandy: i think that -- emily: that is the silver lining for me not being a millennial. mandy: really, before tinder, people in their 20's, just, they were not bound -- they were not on dating apps, they would meet at bars and restaurants, the

park. i think what tinder has done is open people to more possibilities. emily: can it make dating harder or worse? mandy: at the end of the day, you still have to meet for a beer or coffee and see if there is chemistry. so i think that that doesn't change. emily: but now you know you have 30 other people in your pocket. mandy: not just the millennial dating, but for people, matches, ages 30 to 50, and if you are get divorced and 35 and working all the time, how are you going to meet people? i think it is a create -- it has created an opportunity for people to meet that they literally never would have otherwise. you mentioned our time, which is our 50 plus app, where are you going to meet people? my goal is opening up those opportunities for every age group. emily: now people's views of online dating are directly correlated to the level of success y have. i fully understand that. some people have said i have been on match for 10 years, and it has not changed. where is the innovation in

online dating going to come from? mandy: we are constantly innovating on all of our products. if you look at what you have seen in the last probably couple of quarters three quarters, we , have launched location on match, which is missed connections where you can see crossed paths and on tinder. which places, which we just launched recently. we are launching video units, so you can get a much better sense of who people are. we feel like on all of our products, you have to innovate. ultimately the holy grail is to figure out how you predict if you are going to have chemistry when you meet face-to-face, and all of the innovation is about getting people a better sense of if someone is interesting to them. emily: that was match ceo mandy ginsberg. that does it for tition of best of bloomberg technology. we will bring you all the latest in tech throughout this week. next week tune in for our coverage from the entertainment software industry, the annual e3 conference in l.a. we will talk with nintendo,

microsoft studios vice president . tune in each day, 5:00 in new york, 2:00 san francisco. remember, all episodes of bloomberg tech are live streaming on twitter. that is all for now. this is bloomberg. ♪ s bloomberg. ♪

betty: 24 hours to go, president trump is in singapore. he says he will know within seconds if the summit will succeed. kim jong-un also here. you lost balance of the western investment, giving up the nuclear bargaining chip. haidi: the g7 ends in disarray with hopes under attack. washington says canada is dishonest and weak. the summit, the fallout,