emily: i'm emily chang and this is "best of bloomberg technology." where we bring you the top interviews from this week in tech. elon musk's plan to take tesla profit -- private and the theroversial delivery of announcement. wall street and washington have the same question, where is the money? inp reporting its first drop daily active users. what is the company doing to stay on the radar? google wants back in. in china, the search engine left the mainland in 2010 over

beijing's censorship rules and is working with the chinese government to do it all over again. story, elon musk could be switching lanes. sentay, the tesla ceo shockwaves down wall street after tweeting he is considering taking the country -- company private at $420 a share. tesla directors said they knew last week about his bombshell proposal but both the board and ceo have a long way to go to convince investors the idea is credible. now wall street and washington are asking the same question. where is the money, where is the funding? --caught up with max -- can and the question, did musk's tweet violate fair disclosure rules? they have been clear that companies or individuals can make announcements about material, nonpublic information

through social media, so on its face, tweeting this out on twitter isn't necessarily a violation, but the issue as you talk to people is going to be about if they look into this and we don't know they will or are going to, is whether what he said is true. the tweet we pulled up, funding , that says funding secured so people will be wondering what that actually what thatdoes he have tweet indicates. he doubled down on it a couple hours later on tuesday, saying he did have investors, so i guess we will have to see how this plays out but it will play and how much did it reflect what the reality was? emily: he said "investor support is confirmed," but we don't have any evidence from our sources

are bankers close to the company that investor support is indeed confirmed. hasour point that the fec decided it is ok to disseminate information on social media this way, that dates back to a rule made in 2013 in regard to some pretty in -- important numbers on facebook. the fec decided that was ok, but to the point of funding, what do we know about who could be supporting it, this and if they are? max: the universe of possible funders is pretty small. we are talking about sovereign wealth funds, and of course, the saudi's -- reports came out just before the tweets started that the saudi public investment fund had up to 5% in tesla, so you can imagine the big sovereign wealth fund, a big tech venture investor like softbank or a big tech -- tech company like an

apple or a google. in terms of a traditional -- normally, this would be a leveraged buyout, but companies that are normally targets for this have profits and that is not something tesla has. it would be more like trying to turn tesla into something like uber, basically a high potential private company with a very high valuation. emily: meantime, this is a company -- i have this chart showing tesla's free cash flow. this is a company that has never made money and has been burning billions and billions of dollars, hordes of cash, every year. then, what are your sources on the regulatory side of out what happens next? what are they going to look into? this may be to the point why ceos and corporate executives don't usually announce this stuff on twitter. it is like a long, deliberative

process. even if this moved forward, we are talking months of back and forth where probably the board would have to form some kind of special committee to actually look at this. there are going to be lots of lawyers. there is going to be lots of back and forth and don't forget, investors who feel this isn't also takedeal could legal action. we are basically hearing right now that we have to see how this is going to play out. tack that elon musk ultimately takes will go a long way in determining how he is going to have to deal with delaware state law, too because don't forget, tesla is registered in delaware. sense ofying to get a where this goes and the funding question, i think, is really central to all of that. he says he has funding carried where is the funding going to come from and what does that deal ultimately look like? emily: that was max chafkin and

bending. its 15ths launched mission of the year. elon musk, other company deployed an indonesian satellite into orbit early tuesday. the reusable falcon nine rocket lifted off cape canaveral eight minutes after launch. the first stage landed on a drone ship in the atlantic ocean. spacex is targeting 30 total missions this year, up from the wreck -- record 18. snaps quarter second -- quarter revenue was solid, but users are on the decline. if you like bloomberg news, check us out on the radio, listen on the bloomberg app, bloomberg.com, and on serious xm.

emily: snap posted quarterly revenue gains that showed it can compete in the mobile ad market. the catch, they reported the first decline in daily active users. that worried analysts, who were looking for rapid growth. snap did win the endorsement of the saudi billionaire, who has taken a $250 million stake. has snap hit a peak or is this a bump in the road? who has anth a guest eye on the stock. us that thewarned changes they made to the app last year have caused disruption and so, it is not a great surprise we saw a little softness. investors are

asking is can they return to growth and over what time period? a have also been struggling with the android platform. the user experience on android .s somewhat inferior to ios it is in test right now and we will see if that has the impact of growing android users, returning growth to android users both in the u.s. and globally. as of now, they did slip sequentially and now the question is whether the trend continues? emily: david, this isn't something we saw at facebook in the early days or even twitter. do you think snape's the best days could be behind it, given we are seeing a sequential decline fairly early in its lifecycle? david: they have a problem facebook never had and facebook tried to give to twitter but never successfully gave them, which is they have a head-to-head competitor copying every move and that is instagram. on the other hand, the ability

to withstand that thus far is generally impressive, even though they did show a slight decline in daily active users. the fact revenue is going up is the fact that advertisers are still pretty much happy. emily: what about the revenue, peter? significantg revenue growth and they are able to compete in a market where it is kind of a duopoly. even thoughmake of the user trends are not promising, the revenue is? >> revenue growth in the quarter was over 40%, but when you dig eager and look at the regions, you see trends that could signal some alarm. revenue growth in the u.s. was 20% and the question is whether that decelerates further. revenue per user growth is only 12% compared to much higher growth in europe and the rest of the world.

what investors are looking at is how much more room today have? keep in mind -- do they have. it is only 3% the size of facebook in the u.s.. a spoke last quarter grew almost twice as fast. really, you have the question of what is the headroom on monetization per user and is the design of the app in issue and is the demographic skew an issue? that is our thesis. snap userkew of the presents a limiting factor on growth and they have to expand to older users. instagram is a key competitor and they need more -- need more older users to open up advertisers who can spend on the platform. instagram, a key competitor and responsible for copying a lot of snap's features and sometimes doing them better than snap had. david, what do you think of that thesis and whether snap can

succeed in getting older users? david: it is a challenge. a have done a good job of product innovation over time even if every time they do it, it is copied by instagram. i think it is a well-managed and creative company, that they might come up with some way to appeal to older people but even the brand shouts teenagers and young people, so to get older people to use it really would be more than a product design change issue, it would be a branding issue and could turn off the younger people they still depend on. that is challenging. the one thing i don't think anyone should have allusions, snap will never be the scale of facebook. itis a good company, probably still has potential growth, but don't think it is the next facebook. it is never going to be. emily: twitter's ceo continues to defend twitter's refusal to ban conspiracy monger alex jones. on wednesday, he appeared on the sean hannity radio show where he

repeated his stance. >> in the past, we did not communicate why we would take action on tweets, or why we might suspend temporarily or permanently. we want to communicate those reasons to the person who was suspended for tweets in question and also the reporters. simpler -- simple communication but broadly, we haven't done a great job of communicating our principles, the guidelines that help us make the decision in the first place. we are getting better step by step, but have a lot more work to do there. emily: for reaction, we went to someone familiar with apparels of online hate speech, the former intern ceo of reddit. after she resigned, she said "in my eight months as eeo, i have seen the good, the bad, the ugly on reddit. the good has been inspiring and the ugly has made me doubt humanity." for that, she wanted the firm to invest in twitter back in 2007.

accompany past, but eventually invested in 2010 and she later sued for gender discrimination. she lost, but has become a vocal activist for equality in tech and is the ceo of project include. we start with her reaction to dorsey's defense. >> it feels like he is standing on his own and feels he can change twitter on his own without following what has happened in the past, without seeing what other platforms are experiencing and what others are learning. we have learned so much in the past five years and he is not incorporating any of that, building any empathy for the people being harassed on his platform and instead, he believes there should still be this free-for-all on twitter that he can somehow control and manage. emily: it also seems to reverse progress twitter has made in the last two months. that he a surprise

would not take this opportunity -- protectsotest people on his platform and i see people leaving the platform. i am not decided for sure that i will leave but i am not tweeting -- have not for a day and don't feel like participating anymore. you feel you are contributing manus: to this site that is allowed -- site that is allowing harassment and these hate speech and harassment that comes from platform and contributing to it if you are participating in it. emily: despite the fact that facebook, google, apple, spotify have taken action against alex jones, the app info wars is rocketing on the app charts. it is more possible -- popular than cnn, new york times, is all this helping him? ellen: we will see, but at least the people at those companies can feel like we have stopped their platforms from spreading it as much as possible.

apple was keeping it on its platform. i am not sure google -- >> still some of his podcasts. ellen: you make it a little harder, that is better than doing nothing, which is what jack is doing. emily: it was written about how rules won't save twitter, values will. rules, to be fair, have never been clear at twitter, nor has how they enforce the rules. forget about where you draw the line. is there a different way to draw the line? how you draw the line? could twitter do that differently? ellen: i am empathetic to the problem, because the rules can't address all the changing circumstances. so you have this clear rule that people are trying to get around and you will make mistakes and it is always a problem, it never seems clear. a personase, this is who is perpetuating harassment across the internet and your product is being used as a tool for harassment.

and these families who have had to go into hiding, where is your empathy for them? is this what you want your platform to contribute to? i don't understand how you can -- encourage this type of information and use of your platform. emily: it is also a question of how off-line behavior should be considered. the ofnes could begin perpetuating violence against these families off the platform. how much should a platform like twitter or facebook consider that? this horrible experience at reddit in 2013 in april where people were trying to figure out what was happening in the boston marathon bombing, and somebody incorrectly a student has -- as a potential person who -- a

potential bomber. that person was a missing person, and his family got harassed. they said terrible things about him all over the internet and what i took from that is no, you can't just look at what is going on on your platform and it doesn't matter what people's intent is, trying to find the bomber. the frenzy that social media creates and the immediate actions people take without thinking, and the immense harm that inflicts on individuals for no a pair reason. reason, thatparent is something you need to take into account. that doesn't mean you are not a contributing factor and don't abdicate all response ability. emily: given the hard choices you made, if you were running twitter right now, what would you do? would take a content

off. i would look hard at off-line and online and i think harvey sent out a message saying they are doing that. i think she is a very smart person. this is your opportunity to be transparent. where are the rules? where do you want people to want -- behavior and where would you take people off the platform? harassment should be a key thing. coats,ople like west and when others are coming off your platform because they don't feel it is safe with them to share ideas and these are people who out insources, who are the public eye, in general, and they don't feel your platform is safe for them, where is the flea -- free speech? where are the healthy conversational environments? up, a closer look at xe's massive turnaround with the ceo josh silverman. uber.this hour, more on

this is bloomberg. ♪

emily: since taking over as ceo last may, josh silverman has overseen an impressive turnaround in his tenure. the company is expanding business and eliminating areas that weren't growing. now, etsy has rated guidance in earnings reports. josh: it is the beginning of the opportunity for xe -- etsy. if you take just our top six categories in top six markets and look at only the online -- it is aic it is a

$150 billion market opportunity. we are just beginning and it is about creating a better buying experience, which translates into more successful sales for sellers. emily: no pressure, though the share price has increased over 300% since you took over as ceo. do you have concern investors are being too enthusiastic? josh: the job of my team is to focus on delivering results for all of our stakeholders, sellers and buyers and employees and shareholders. we will continue to deliver the best results we can. we are very focused on doing the fewest things we can exceptionally well and we are seeing great gains from that. we think the results of the past few quarters have been encouraging and we are looking forward to continuing. emily: what areas are you exploring that may be new or unexpected? etsy -- josh: part of where we lost our

way was losing focus and trying to turn to quickly to too many new things. let's just take three of our biggest categories. home furnishings, jewelry, and apparel. each of those are multi-hundred billion dollar categories where we have more than $500 million of sales today, but so much room to run. we have to make it easier for buyers to find the products they love and to buy those products and come back and buy more and more. with over 2 million sellers selling over 50 million items, items that are beautiful, made with care, there is so much opportunity to do better just in the core categories and core markets we are in today. emily: the supreme court made a big decision that states can now force retailers to collect sales tax, even while they -- without a physical presence. that means more taxes for online shoppers. how does that impact etsy, the business, your buyers and sellers? josh: it is not a existential

threat to etsy, but creates more friction for our sellers. about 10,000 different tax jurisdictions in the united states alone, and each of those have different classifications for what types of goods are subject to what types of tax. that is very difficult for anyone to implement with excellence, so we think it is bad law and we will be working with the congress and the state legislators to come to something that is more effective and easier to implement. in the meantime, we will have our sellers' back and have tools to reduce the burden and make sure we comply. you also said at the time of the decision you would continue to lobby congress. what actions have you taken? josh: we are engaged in dialogue with congress. the nice thing is i don't think this is a partisan issue. we are trying to help states achieve their financial goals, but in a way where we can succeed and where e-commerce can succeed and innovation tank

succeed because that has been a key driver of the u.s. economy. for us, we have 2 million sellers, 80 7% are women. they exist in 99% of the counties of the united states. host of them are businesses of one running a global enterprise from their living room. thesenk needs of micro-entrepreneurs are important and are -- we are making sure their voice is heard. josh: that was etsy ceo silverman from new york. still ahead, samsung unveils its priciest phone yet, hoping a larger screen will rejuvenate sales. is it enough for the struggling flagship line? bloomberg technology is live streaming on twitter. watch tictoc on twitter. this is bloomberg. ♪

♪ emily: welcome back to "the best of bloomberg technology." samsung unveiled its galaxy note nine this week at an event in brooklyn, new york. the phone will be faster and last longer without a recharge, and will come with some automatic photo editing. these changes come with a hefty price tag. the 6.4 inch screen will start at -- $.99 and maxing out 149999 and maxing out at dollars $.99. they are struggling to fend off

apple's upcoming iphones over the holidays. mark gurman and volvo donald went to the samsung unveiling in brooklyn and went to cash came to us with a full report. mark: they are positioning it as this new big thing for consumers, but what looks into his new to consumers and this phone does not look much different than its predecessor. it has a slightly bigger screen, much upgraded stylus, more storage capacity, but i do not think that is enough to move the deal to spur upgrades. emily: would you agree? bob: generally i would agree. people are not upgrading every year for any phone anymore, so the market realities have changed. people are upgrading every two to two and a half years. mark is right, it is incremental at best. the pen technology is kind of

interesting. there were more interesting announcements later in the event and if you look at the time spent across the entire event, the time spent on the phones was modest because it was a relatively modest upgrade. emily: you have done some incredible reporting on the iphones to come. how does what was revealed today compare to what you expect apple to unveil in the fall? mark: that is very kind of you. at fits right into what we were expecting from samsung and apple this year, not really significant upgrades. apple's upgrades are not significant on the feature side but significant in how many versions of the iphone x they will have come a different screen sizes and pricing strategies. it will be an exercise in marketing and that is going on with the note eight. been questionsve about whether customers are going to pay that $1000 for the iphone x.

same question here, do people really want to pay that much for a samsung phone? apple fansung has any girl, fan boy equivalent it is the galaxy note owners. there are people in that group who want the best android phone. is 512 gigabyte model actually going to be $1200 $49 -- $1249. this is not the entire market. samsung knows that. this is their dedicated galaxy note people who like using the pen, which is why the primary focus of the new features were around the pen. to me, what is more interesting is the spotify news. that was interesting because it reflects a bigger picture strategy story from samsung across the board, across all the different devices. emily: how does that compare with apple, which has apple music?

mark: that is a good question. spotify at a low level is not in-house and not building up the streaming music service themselves. they have had a few over the years and they have terminated their projects. spotify which still has the best brand recognition, it is a smooth move by samsung. spotify investors seem pretty impressed. the stock is up several percent this morning. emily: other announcements or revamps, smart watch, home, the doodle speaker. .- digital speaker you have been tweeting about the speaker, one and a half times the home pod which is quite large. mark: the galaxy watch is a revamped version of the smart watch strategy. i do not think it will move the needle. the market has truly become saturated with the apple watch.

i am not sure where samsung is going to fit in. on the other hand, the home speaker is also coming in extraordinarily late. the amazon echo came out 3, 4 years ago, announced in 2014. the home pod was late as well, coming out in february. amazon and google have a handle on that market, so i'm not sure what percentage of the market samsung will be able to grab, especially with such few details they are provided. i would not be surprised if it is not released until the end of this year or 2019. they areot appear bringing any new innovative functionality to the table that would inspire anyone to buy one of these. too late for samsung and apple in smart speakers? bob: is it that it is challenging. -- it is challenging. you have a strong position for

google and amazon. for the galaxy products, samsung is talking about galaxy brand. they changed it to galaxy watch and call it galaxy home. they are trying to build this overall connected story which is a unique opportunity for samsung . they are the only company in the world that potentially could do that. the real test will be in the execution, how well this actually works. having spotify bundle with a smart speaker i think is attractive and a unique opportunity from a general music perspective. it will be an uphill battle. emily: that was mark gurman and bother donald. coming up, -- bob of donnell. -- bother donnell. nnell. o'do -- thisre run will fix is bloomberg.

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♪ emily: new york city council dealt a huge political blow to uber and other app based car companies. a one-year cap on new licenses. minimum pay standards for drivers. the passage is sweeping industry revolution is showing the change toward the so-called gig economy and card hailing -- car hailing services. another day, another shakeup at uber. a former employee is returning. ron will startor uber freight, the trucking service. he left after google centered with -- uber centered -- settle with alphabet.

now, ron is returning to uber after a month-long behind-the-scenes negotiation to rework the two-year terms -- to re-work the terms of the auto deal. andpoke with lane kasselman also with us, eric newcomer. what seems to have been happening as behind-the-scenes there has been this renegotiation of this part of this auto acquisition two years acquisitions so uber could invest in uber freight. once those negotiations got settled with anthony levandowski and lee are ron, it -- lior ron, and cleared the way for ron to come back. emily: is he at peace? is there a risk of bringing back someone who has some baggage? lane: there are a lot of people who maybe are

entertaining coming back now that there's new leadership in place. the reality is, there's not a lot of people with expertise in the space. uber does not have a deep bench to pick from. emily: we have seen the head of hr resign. in the midst of an internal investigation into whether she was ignoring complaints from employees, a very high-profile woman at the company. what really happened? lane: there is a lot we don't know. there was this investigation -- eric: there is a lot we don't know. there was this investigation. a whistleblower contained and lawyers told the whistleblower there are some things we can confirm, some things we can't, we will not tell you which. their chief legal officer trying thesed,

issues in the court of public opinion is not a great idea and it can be unfair, but ultimately she resigned right after an all hands meeting. it was sudden and unexpected and it came amidst media scrutiny. we do not know what particular incident convinced her to resign or uber to push in that direction. that was brought in to help right the ship, "the new york times" has some remarks -- off-color remarks he made about mixed race couples. eric: the defense -- lane: the defense is analyzing the ad, trying to understand whether it represented the people they were targeting. people in the room felt it was off-color. we do not know what he said. he is certainly soul-searching and trying to get leadership help around exactly what he should say. it was a terrible moment for

uber to have. the turnaround crew get hit with the same type of allegations that travis kalanick and his leadership team have faced. , so you have this guy doing a lot of the heavy lifting , now is sort of emblematic of the behavior they were trying to leave in the past. emily: dara has made some other high-profile hires, has not made high-profile theme i'll hires -- female hires and also seems to be having trouble getting the ship in order. lane: it is not a question of if but when. dara has a lot of work to do ahead of an ipo next year. he will look to the existing bench outside the tech sector. a lot of folks in corporate america have proven themselves in various capacities and he has to convince them this is a

company it is ok to come to now, and bring them on board. it is not overnight. emily: i spoke with tony west and he said it was a tough decision to leave his job at pepsi and come to uber. peoplee you hearing from who work inside the company as to whether there has been a true culture shift? lane: the culture shift is being felt among the entire team. folks who have been there long time, four years plus, because in tech that is a long time but in the real world it is not. those who have been there for more than four years feel like it is a new day, new leadership, and the problems are behind them. emily: meantime, regulatory issues continue in new york. the city council is poised to approve a cap on licenses for uber and other ridesharing drivers. eric: terrible for uber, terrible. i am curious what lane thinks.

de blasio back and game it -- gave it room to grow. it has locked in some of those gains, but any idea of the cap would be terrible for uber and minimum guarantees on drivers would disport desk distort the marketplace. it is pretty shocking and definitely travis kalanick crowd invest in thera war room style fight with new york i had done? i am curious. emily: terrible. did he mess up? eric: there is a question of whether or not tech companies need to hire policy people, and this is definitely an example. i think most tech companies will need more and this is why. regulations always come back. in this case, this is the easy way out. pricing, changing the price of taxi medallions,

helping the most honorable people in new york is a huge problem to solve but an easy one, capping uber. emily: before you came on the show you sold some of your tesla was speaking elon about it being private. you still have some shares. lane: maybe not enough. emily: what is your take on this as an investor? lane: i am hopeful the news means something big is happening and is good for my remaining stock. i am hoping i did not really screw up. to gouber preparing public next year and now tesla floating going private, it is such a reversal, two ships passing in the night. emily: we have not determined how serious elon musk is about this, but does his capriciousness and unpredictability bother you? lane: one of the reasons i am an investor in tesla is because it is so exciting. emily: that was lane kasselman

and eric newcomer. coming up, google abandoned china in 2010 come at taking a moral stand against censorship. now it wants back in, but at what cost? we will discuss next. this is bloomberg. ♪

♪ emily: a semiconductor company that makes chips for iphones says it was crippled this week by a cyber virus similar to last year's. the outbreak shuts several factories down just as the company was ramping up for the new iphone. ksm c has -- says full operations have resumed and they expect a full drop in revenue. google is secretly trying to get back into china with a censored search engine comes the news that it is working with chinese companies on cloud offerings.

it is said to be working with tencent and others to offer its cloud services. just eight years ago, google abandoned mainland china because it refused to comply with beijing's censorship practices. what has changed? we spoke with shira ovide and bob boorstin. that, a fence seven years as google's director of public policy and was on the original team that determined google's entry into china in 2006. bob: there are three factors at play, first is economic. they see a market and i think that is incredibly important to them. they want to be a player. the second thing they have to look at, and now we go negative, is the political side. you are seeing senators in washington asking questions about why they are doing this,

and also you are seeing a number of human rights groups taking exception. finally, there is a moral question. wasreason google pulled out moral, and certainly nothing has changed on that front. chinese internet regulations are now a lot harsher than they were back then. emily: exactly. the laws are even more severe today than they were eight years ago. senator marco rubio did speak to bloomberg thursday about this very issue, speaking of the reaction of lawmakers. .en. rubio: i am outraged by it they will not work for the department of defense because they knew not -- they do not want to be involved with killing people but they were closely with a university in china to provide technology to the chinese military. they are prepared to go into china and help the chinese government censor information and deny people access to

information. it is hypocrisy. it is sickening. emily: you have a piece weighing the pros and cons of this. talk to us at what cost this would come to google. and you user trust point out, does google have a potential to break back into the market at all given the dominance of the chinese services? does seem on the commercial front that china has moved on without google for better or for worse. for people like me who want the world to come closer together, the internet was supposed to help make that happen. it is sad, what we have seen over the last few years is not just in china but in other countries around the world where the government has used the internet as a tool to make the world a more closed place, to crack down on global information, to censor, to shut down dissent, and that is certainly what we have seen in

china to a large extent, without google being there. now they are trying to make these compromises to potentially come back. emily: the economic potential is obvious, 722 million internet users in china, but on the moral side was in it larry page and sergey brin who personally decided to pull out in the first place? they are still at the company. what is different? how has the moral calculation changed? bob: i cannot answer that one. sergey argued he did not like the authoritarian totalitarian nature of the regime. he had come from the soviet union with his parents, so he clearly took a personal offense to what was going on. also, the chinese had essentially invaded google's search engine, and that did not make anyone there happy. what has changed? it has only gotten worse as far as i can tell. emily: talk to us about the

political atmosphere here. not beuld certainly something that i imagine president trump would be pleased about as he is waging the trade war on china. shira: the politics are interesting. you had that clip from senator rubio, and he has been very clear from how is it that google on the one hand can refuse to do work with the u.s. department of defense on this military john isject, on the other hand it willing to help the chinese government censor information from its own citizens. that is a little bit of a hard sell in some corners of congress . the politics will be very interesting, given the trade tensions or trade and beyond tensions between the united states and china. it is not even clear to me that google would be permitted by the chinese government to reenter the country with search or its other commercial services. emily: that is certainly another

question. bob: i would agree with that. one of the things we have to look at very closely is uncertainty, both in terms of what the chinese government will allow and in terms of what google wants to do. people are treating this as a done deal and it is by no means a done deal. the fact that just a beginning of a story about this has outraged so many should be taken as a pretty serious thing by google. emily: it is anything but a done deal, you are right. it also sets the standard potentially for a country specific internet. alibaba or ask tencent or baidu executives about censorship that they all abide to, they say they are following the law in their home country. google could say the same thing. if this happened, what standards what it set for other companies like facebook, for example, which is still blocked in china? could you see a domino effect

and accessst freedom to information? bob: i would argue that facebook will never get into china, and the reason for that is that it's fundamental utility, it has an organizing tool that allows people to organize. that is the last thing the chinese government wants its people to have. google is in a different place here than facebook is. there are already plenty of search engines ever there, and one of the big questions is, is it worth it economically when baidu, the chief competition, already has about 75% of the search market? shira reminds us of a hack attack that originated in china in 2006 on google come up the hackers were trying to access human rights activist information.

what was it like being on the inside of that? bob: i was not there for that exact attack. but it is definitely one of those things you worry about a lot, ever since something called the -- case. partnership and had to turn over information on that dissident to chinese government. they put him on trial and put him in jail for 10 years. any company operating in china, their data is fair game for the chinese government. ,f so, they could be seen as and in reality, complicit us with that government. that is not something most companies want to have on their hands. emily: that was bob boorstin and shira ovide. that does it for this edition of "the best of bloomberg technology." tune in every day, 5:00 p.m. in new york, 2:00 p.m. in san

francisco. we are streaming live on twitter. follow our global breaking news network tictoc on twitter. this is bloomberg. ♪ this isn't just any moving day.

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