ting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. emily: i'm emily chang in los angeles and this is "bloomberg technology." coming up in the next hour, the latest on the broadcom acquisition. a memo sent to lawmakers calling for the deal to be reviewed has been tagged a fake. plus, is the auto industry on the verge of a tech disruption? tesla gets a boost. we will speak to the analyst behind the forecast. slate ofetting a new the original shows can give the

edge of her instagram, but will it be enough to hang onto its key audience? first to the top story, broadcom has said a memo reported to be signed by the u.s. department of defense circulating among members of congress calling for a review of the company's acquisition is a fraud. the products of ca technologies are found in defense, finance, and energy industries. the pentagon is also saying the memo circulating is likely a fraudulent document. where did the memo come from? for details, we are joined by ed hammond in new york. what are we learning about this? >> what we are learning is that this memo is probably a fraud. broadcom came out quickly and said it was a problem. i got sent an earlier draft of what looks like and there looks like there are inconsistencies. it says broadcom limited, and that is not the name of the company. the date on it is august 3, so if it is a real memo, that would

suggest it is kind of historic at this point. there also are misspellings in terms of senator names, which is slightly strange. and as you said, the pentagon has also denied the veracity of it. emily: senator rand paul has said this deal is a security risk and should be subject to national security review as a result of this memo. does that comment still stand? ed: that is interesting and will be the big question going forward. he cites stuff from the memo. i think he talks about 29 reactors in which ca technologies are embedded. 29 reactors in which ca technologies are embedded. that is potentially wrong, but broadcom is a company we know is something that has been looked at in the past. they were blocked from doing the qualcomm acquisition because the n they were a singapore dominated kind -- company, but u.s. based, government did not trust them. do we do the same on ca?

we can only look at deals where the acquirer is outside the u.s. they have been given a broader mandate on what they can regulate in u.s. deals. any companies that has interstate commerce in the u.s., and broadcom and ca are squarely into that, so they might take a look at this. this might be something they decide they don't want to go through. what we do know for now is the pentagon has not ask for any such review. a piece ofwrote couple he weeks ago about how a rise in nationalism and alice's of the trump administration is zapping deal flow. do we expect this deal to move forward, and do we expect other deals to not happen as a result of these policies? ed: the second part of that is yes, we expect some deals to not happen as a result of these policies.

any deal inbound into the u.s., especially where it involves anything related to critical infrastructure, which is a bit of a moving piece, because that can change, but anything that is tech, particularly around the semiconductor space, that is a no go right now. does the deal go through? think broadcom is fairly confident it doesn't spread, but not huge. broadcom is now a u.s. company. there has been some noise about whether business has come to him as an owner, but they have done a lot of deals in the u.s. that came through previously. the only one they have been blocked on his qualcomm which is a different kind of deal but it was an order of magnitude that was significantly different, taking on the largest player in the u.s. of semiconductors. there's a good shot this deal goes through. that said more broadly, we are , looking at a tougher regulatory environment for any foreign acquired company going

into the u.s., or for that matter, you europe or china. emily: it would have been the biggest takeover in history. the white house shot that down. we are trying to find out where the memo came from. thank you so much. moving onto tech investing, softbank continues to plow billions of dollars into just about everything. this time, the target is once again the co-working start up wework. softbank's vision fund is said to want a controlling state, meaning the new financing could total anywhere from 15 to $20 billion. softbank already has a $4.4 billion stake in we work, and masayoshi son says he's not satisfied with one vision fund. he plans to launch new $100 billion funds every few years. here with us to discuss is david

kirkpatrick and bloomberg sarah mcbride, who covers the venture capital seen. interviewed masayoshi son and he told you about his ambitious plans. what do you make of this new news? reporter: it fits in with his plan to deploy $100 billion every two to three years. that's a lot of cash. investment being discussed would fit right in. it works for we work, doing a big expansion into eric -- asia and other areas. the missing piece is, will it pay off? emily: that's the question, david. was reportedly seeking a $35 billion valuation. this would be much less. it is still losing hundreds of millions of dollars and has yet to prove that the revenue it is bringing in is sustainable and if it will continue to grow at its current pace. is this a good bet for softbank? reporter: it might not be a good

bet for some people, but both visionand the softbank fund our shoot the moon operations. wework is a shoot them and company. the softbank investment fund is a shoot them an investor. willing tosically make humongous bets and enabling one another. doesn'ty if wework raise another $10 billion plus from soft rank some that allows them to do a lot more. it begins to be possibly a self-fulfilling prophecy. they're not making any money and far from it. but if they can expand fast enough and maybe go public, maybe when the markets remain frothy as they basically continue to be in the public sphere, maybe softbank can get their money back and it will be great. even if it does not long-term be the only place we work. by the way, i work in a wework. [laughter] pretty good. emily: i hear they have good drinks on tap.

has been clear that he thinks this is a big opportunity and they are not going to lose money on the vision fund in general. take a listen to what he had to say last year. the vision fund deal is the preparation for a god-given opportunity similar to the goldrush era that is approaching. we have acceptable money from partners to avoid building debts and we are sure the fund will be a success. we should be thinking big for this lifetime business opportunity. emily: that said, what kind of returns are investors in the vision fund expecting? are they thinking 2x, 5x? a typical fund is closer to 10x if it does a good job. year, masayoshi son said it had already returned in excess of 20%. most funds are definitely

operating at a loss for the first you years of existence. this is barely a year in. he said his personal rate of return since 2000 has been over 40% annually. perhaps asking him what it has been since 1999 or 1998 before com run-up and crash, but that is still impressive years.e last 18 investors are hoping some of the personal magic he has had will rub off on the vision fund. big,prepared to make these bold bets, even if the bulk of them don't work out, he thinks he will have one or two that knock it out of the park, just as he did with yahoo! and alibaba. and almost became irrelevant that he had dozens more investments that went nowhere. because of that track record, investors are prepared to buy in and listen to him. with wework, he and the wework's

ceo adam newman have kind of a personal connection where they are both prepared to make these big, brash plans and think the world will follow along in their -- and they are betting on social movement as well as wheel -- real estate that more and more people like david are going to end up working out of offices that are more convenient to them then perhaps the offices of perhaps the companies that they work for. emily: the vision fund has already invested and we are looking at some of the companies. uber, a construction company, the indian e-commerce company flip card. david, you might love your spot in your wework office, but i wonder if there is a concern that softbank, by investing so much money, is keeping companies afloat that maybe should not be kept afloat. david: i would not go that far yet. there is a real risk of that.

we are in an extraordinary up economy. a really dramatic upmarket beyond what most of us expected. these companies are growing. some of the softbank investments like nvidia is a really strong company and the other chip company, the name of which who is escaping me, arm. it was just on your list. thank you. and nvidia, these are really powerful companies already hugely profitable. those are different kind of investments. i think the amount of money that softbank is trying to deploy with the help of saudi's and others is a little dangerous for the economy in general. they have to find these huge bets. huge bets can go hugely wrong. so far, they haven't. let's hope for them that they haven't.

emily: let's talk about the saudi investment. the saudi investment fund investing another $45 billion in softbank's vision fund. talk to us about the dynamics there. what does that mean? sarah: it means that the saudis have been pleased with how the vision fund is performing. they have a big investment conference coming up in the next few weeks in riyadh, and masayoshi son is expected to be there, and will probably talk about the performance of the fund. mohammad bin salman and masayoshi son seem to have forged a relationship that is very simpatico with each other. they seem very happy with it so far. thing atesting softbank might be more internally. are all the investment managers on board with this investment? this would be one of the bigger

ones of the vision fund. that is another question for softbank. emily: david, what are the political implications of the saudis having a huge stake in this fund investing in american and globally ambitious companies? david: the political implications of anything connected to saudi arabia and the crown prince are different this week than they were before. if it really does turn out that the saudi's murdered and possibly dismembered a dissident istanbul,onsulate in which is looking quite likely, i think the reputation of that country and that leader will plummet. many of us who'd believe in democracy has been very distressed by the things we have seen and the more or less autocratic approach the crown prince has taken to changing the country. some of that sounds good on the face like letting women drive, etc., but if the way they are

doing it is by becoming a state that will assassinate its citizens when they criticize them, that will color and taint anyone associated with it long-term, i believe. i would say messias you son should be careful of how close he stays to the crown prince. emily: david kirkpatrick and sarah mcbride. i should add that saudi officials have denied allegations that they are connected to that, but it is something we continue to follow. coming up, isn't technology pushing the automotive industry into a new era one that could , put tesla on top? we talked to one analyst who is betting big on that area next. if you like bloomberg news, check us out on the radio. listen on the bloomberg app, bloomberg.com, and, in the u.s., on sirius xm. this is bloomberg. ♪

emily: a big name being dropped as a potential replacement for elon musk as tesla chair. none other than james murdoch. this comes as tesla snapped a five-day losing streak shaving valuationn from its tuesday after macquarie indicated the company is on track to reach profitability. meantime, a short seller is betting on a dramatic drop in tesla shares, saying the electric carmaker seems to be between a rock and a hard place, because it needs to raise money through debt or equity. has tesla reached a turning point? to discuss, we are joined by in the query senior analyst who sees the auto industry entering into a period of unprecedented growth. also, max chafkin who writes on tesla. what is your take on this james murdoch situation? reporter: i think it makes

sense. there is this paradox with tesla that they want to rein in elon musk, but not too much, because , elon is part of the appeal. what's happening with murdoch is he is pretty close to elon musk. i think they are friends. he has been on the board for a wild he has his own profile. a veneer of independence that the board has compared to what it had before. your note is likely the reason tesla shares have run up over the last couple of days. murdoch'ss, is james potential making you more or optimistic? >> the most important thing really is that elon musk is focused on building model threes and getting deliveries out. anything that kept the focus down to that is a positive thing. if james murdoch is the one who can rein him in and prevent some

of the tweets going out, and the focus really comes back to the deliveries, which is the fundamental, i think it would be positive for the company. emily: the question is, can he rein him in? james murdoch has been on the board and elon musk's behavior has been as it has been. reporter: i think the reigning in will have to come from you on himself. just because of his larger-than-life profile, the extent to his personality has defined tesla, i think if you believe in the company, what you are hoping is elon will see the light. not that the sec or a board member will do that for him. i think if we have learned anything over the last few , even whent elon tesla has been doing for various reasons, he is still willing to be his own person. i think the chairmanship is important. it is an important milestone for the company, but i don't think that alone will bring change.

emily: maynard, talk to us about how you came to your conclusion , and ins is a by -- buy the face of staunch opposition who believeds, tesla shares will go in the opposite direction. >> my big call is we are taking an angle of looking at the sector from a disruptive perspective and technology angle , which i have covered for 20 years. a lot of people talk about electric and autonomous as being the disruptors. we look at it as the enablers. i think this will enable a platform ecosystem. inc. about developers building applications on top of the car, which will turn the car into an application. you download something, press a button, and turned the vehicle into a ridesharing vehicle, or download a different app and turn it into a delivery vehicle. ultimately, the reason why we are so bullish on tesla is that if you look at the commercial technology that's already built into the car, a lot of those platform ecosystem technologies

are already there. that is what makes us positive on the long-term story for tesla. emily: we know production numbers over the last several weeks have looked good. we don't know if they can sustain that level of production over the next few weeks. you are optimistic. you believe production numbers will look good and believe tesla will reach profitability. what has to happen for that to happen? maynard: you are right. our performance is definitely predicated on the near term and being able to generate cash. we have done a lot of work on zero emission vehicle credits. we think in the back half of this year, they can generate somewhere in the neighborhood of about $500 million. there is no cost associated with this so this is pure cash flow , which i think helps in addition to the free cash flow generations they will get into the fourth quarter. i also think they have unused debt commitments they could also cap, which would be more than enough to cover the debt commitments coming up over the next three quarters. emily: max, we get new

information tesla is closing in on a $145 million plot for the china factory. china is a huge portion of the potential. what does this mean? reporter: this is a big deal. the chinese market for electric cars is massive. tesla has not made much progress there at all. if tesla is able to get into the market and really sell some cars, that will go a long way to improving its bottom line and generating huge amounts of revenue. of course with china, especially in the donald trump era, there are regulatory hurdles. being able to find a location is an important first step in terms of building the factory. emily: "bloomberg businessweek" max chafkin and maynard, we will have a lot to look for and thank you both. a reminder, "bloomberg technology" is livestreaming on twitter. check us out @technology, and be sure to follow our global breaking news network @tictoc,

on twitter. this is bloomberg. ♪

emily: ai could enable your smart phone to respond to messages on your behalf. consumer electronic startup essential products is said to be working on a new kind of phone that would mimic the user using ai to respond to emails and texts, or book appointments on its own. the design of a new mobile phone is not like a standard smartphone, with smaller screens requiring users to interact mainly through voice command. an internal memo underscores amazon's growing momentum in cloud computing. amazon web services signed a contract worth an estimated $1 billion. the memo says microsoft has also competed for the symantec deal. uber is pitching a $1.5 billion jump on sale, marketing a time when fixed income has proven

receptive by cash burning tech companies. uber is said to go public in the second half of next year. social media giant snap announces a large slate of original content, but will it be enough to take on instagram? waze making a big bet on carpooling. we will talk about that next. this is bloomberg. ♪

emily: this is "bloomberg technology." i'm emily chang in los angeles. snap announced it will lazaridis -- it will release a dozen new original series, betting it can maintain the grip on teenage users and have an edge over instagram. the programming slate announced wednesday the biggest push into funding and producing its own content. here to discuss is sarah frier, who covers snap and facebook, and raymond james, senior analyst. walk us through what snap is unveiling here. they already had original shows. now they are adding new ones?

reporter: they have had original shows for a while, but this is a new slate of programming. for a wild they encouraged outside content partners to make media for snap, and then build their brand in separate channels on the companies discover page. now they are doing it themselves in-house. i think they really want to amonstrate that they can do show that is mobile first, that goes directly to that younger audience that snap is known for reaching. the question is whether it will really attract users in growth down the line. emily: all the shows are shot vertically. one of them is called "endless summer." it's a successor to mtv's "laguna beach." is this the secret to their future? >> that is going to be a big question. it snap has had limited traction with content offerings. if you look at the discover side, most of the time on snap is the messaging part. the problem is messaging does

not monetize as well. monetize, they will have to do things like discovered with more content and original programming. that is the big question. have facebook with watched had, and instagram announcing instagram tv recently. there's netflix and amazon prime. there's a lot of fragmentation on the content side. but for snap to do well, they have to show more traction on these offerings. emily: snap executives have come out saying the shows have been a ratings success and they have multimillions of viewers. how many people are watching? what matters is not just how many people are watching individual shows, but whether that number grows. quarter, announced a decline in daily users for the first time. that has caused a shock waves through the markets, thinking maybe this company is not going to get to a size big enough to compete with the facebooks and

googles of the world for advertising dollars. what they really have to do is prove that the media aspect side can be a big moneymaker down the line. there isn't enough public information on how the shows are doing to instill confidence. certainly, wall street is not that excited about these shows. the stock is down today, hovering below seven dollars for the first time. emily: original content aside, how optimistic are you that snap can continue to grow? they are losing high-profile executives. has been a bust. evan spiegel has said they have to get back to their roots, which is about communicating quickly. is it all enough to get back to growth? >> that is a good question. we have not seen it yet. getting we are still cautious on snap overall. getting back to the

communication, sharing fast messaging and fast photos is important, but it does not generate revenue. that's the problem. you can't have it both ways. you cannot be a good messaging app and make a lot of money on advertising. you can have a little bit of both. we like to see more product innovation. i think originals can help on that, but so far i think there is a stat app on a daily basis. that only that's a pretty low percentage that are using these content services from snap. emily: evan spiegel recently released a very long memo to employees were he talked about how the companies had -- the company had lost focus, how it had to get back to its roots. some were making fun of his use of the code word cheetah which is the name for this redesign. from thatback away entirely, but said certainly it wasn't working so far, but that everyone, as a case --

consolation prize, would be getting a cheetah themed sweatshirt. what do you make of this memo? what do investors think? reporter: i spent a lot of time with evan spiegel earlier this year. the memo echoed a lot of the same things he was trying to get across to me then, which is that the company sees it so differently from the other social media platforms, they don't even really see themselves as social media. it's more of a messaging platform with a social media component, and they want people to experience the world differently. while evan is trying to communicate more directly to his employees and address issues with clarity around the company's direction, a 15 page memo is not always the best way to get that across. certainly while some people thought this was a good eye into how he thinks, others thought it was a little rambling and a little concerning. he is still in that place where he has to prove that he is the

visionary leader for the next era of snap. otherwise, an analyst yesterday said they may have to raise money, there might be an and a down the line. the next quarter will be crucial for the company's future. emily: i'm sure many of these tech ceos don't love speaking to the press, but now they do. we have seen mark zuckerberg mentor. -- mature. spiegel, he doesn't love speaking to the press, but this many years into being a public company, do you think he has to grow up?do you think he is still the right person to be leading this company? >> that's a good question. i think it's less important whether he's speaking to the press, more about company execution. the shareholders talk about competitive modes, but you are also using -- losing a lot of users to instagram. they say their competitive mode is speed of delivery.

you really haven't heard of users complaining on instagram or facebook at they are not getting pictures or texts sent fast enough. it's a little confusing. i think investors were confused, which is why the stock did not rally off of that letter. emily: a lot left to watch. aaron kessler from raymond ch'ss, and bloomberg te sarah frier, thank you both. waze is announcing a rollout of carpool. the feature enables users to request rides from other members. the ultimate goal is to decrease the number of cars on the road. the company has spent the last year testing in states like california and texas. the ceo and asked about how the company sees itself competing with the likes of uber and lift. >> we don't see ourselves as taking on uber or lyft. we are taking on single occupancy vehicles.

to drive alone in your car to work, that is our competition. we want to give you a better experience so you are willing to take someone with you. they are part of this, but they will be part of a full mobility solution. there are scooters, cars, all kinds of components. we are focusing on the long haul. san francisco to mountain view, we will give you a price that is a fraction of any other alternative. we will give you an experience that will actually be a lot more fun. emily: how big do you think this business can be? >> that's a great question. we don't know. we don't know how big this can be. if you think about it, there are trillions of at waste in our dollars economy from traffic. the cost to our environment and health, it is all coming off this sort of illogical way we choose to commute. there will be a tremendous amount of value to be created here. how does that split up between partners,, the rider, and ourselves, that we have to see. emily: as a user, i am constantly wondering why google

are not waze integrated. the last time i spoke to you, it was before the acquisition. i get to an uber and the drivers complained that they are not integrated. why haven't that happened yet? continued to run as our own company with our own mission around traffic. this allows us to do things like carpool. up andthat are bottom community-based. it is a different application and experience than google maps. we obviously share data on the backend, but we have different approaches and different missions. for us, it is about removing cars off the road. three or four years from now, if you think about waze, you will not think about it as the navigation app, you will think about it as the way you get to work every day. emily: are you saying this will never happen? is it on the table? good integration happen at some point? >> right now, that's not what we are focused on. we have more than enough to do in the new changing mobility space. emily: so what has the benefit

of the google acquisition been? >> one of the big benefits is we can approach something like carpal. it will not happen overnight. this will take many years to change behavior. people have to change their habits. that takes a long time. when you are part of google or alpha that amount which has the resources to make it a long bedt. if you were a startup, if you did not have the ability to think that far, you can never make change. change really brings together different players. we've got municipalities and employee years and universities, a variety of companies working together for this mission, and that's not exactly the traditional corporate environment. emily: google is at the center of another privacy scandal, the latest one involving google plus. this time the reporting is that the company did not disclose it, even though they knew about it, and you have trust in the company being undermined yet again. how do you collect and use data

on the users of waze and protect that data? >> the data within waze stays within waze. we are very transparent with what we do with it. and partly, we ask users to share with us. the whole platform is built from users sharing data. it is very clear. you use the app, you share the data. you don't have to use the app if you don't want to share the data. fundamentally, the data users share is what builds the service for everyone else. emily: companies like hoover and background checks on their drivers. you put the decisions in the driver and passengers hands. how do you make sure it is safe and what happens in an accident? who is liable? >> we have designed this cannot be a commercial service, which is different from uber and lyuft . -- lyft. we limit the amount you drive and the amount we pay out to you, under $.50 per mile. the service is designed not to

create an accounting profit in terms of taxation, and to be about to work within your existing insurance as a consumer. that is the model we have built. we go through great lengths to make sure that you can't get out of that envelope which creates that space. in terms of background checks, we provide the users with a lot of information. we do see it as up to the user to decide who do they want to drive with. we think about safety, but there are a lot of other things. who do you feel comfortable riding with? one of the big things we ask for is that women want to ride with their own gender. and coworkers only want to ride only with coworkers. we have provided all of these things. the big challenge is getting people to do their ride. firstonce you do the first ride, you can see that fundamentally, we are pretty good people. you discover your neighbors and coworkers like never before. i have heard stories of people becoming lifelong friends through this experience.

more with are doing the public and private sector to encourage carpooling. >> fundamentally, carpooling will have to be a joint effort. we are working with municipalities, san diego, orange county, all over the u.s., to provide incentives to users. think about hov lanes. those are incentives for you to take another person in your car. if we can find that person in the car for you and use the hov lane, you save 20 minutes to work. these are the incentives that municipalities can do and provide. we think there is a place for everyone to work together. employers are struggling with how to get employees to work, how to do with parking. parking is a huge problem for most employers. these provide incentives for part -- carpooling. municipalities and transportation systems have budgets for removing cars off the road. coming together in one platform is the way we think we can make this change in society and how we actually drive to work. emily: our conversation with the waze ceo noam bardin,

coming up, we continue our conversation about lock chain week. how one woman is changing the way we think about blockchain and crypto. this is bloomberg. ♪

emily: we continue our coverage of san francisco's of blockchain week. that brings together consumers and developers in hopes of pushing the boundaries of innovation. cryptocurrency industry is male-dominated thus far, but the cofounder of ios t is pushing for progress for more women. the company is one of the top three crypto companies by market cap launched in 2018, and has enterprise blockchain infrastructure and apparently faster speeds than ethereum. first of all, talk to us about have ios t, you believe fits into the broader blockchain and crypto landscape.

what makes this a good bet? >> thank you for having me here. is a blockchain infrastructure that we are on dual resistance. at the same time, we are having not only the infrastructure itself, we are building the whole ecosystem including our we are helping with partnerships at the same time. it is kind of like ethereum, providing a more user-friendly and developer friendly ecosystem. emily: it was trading around $.12 as of february, but now it's closer to one cent. how long can you continue to operate without widespread mainstream use of blockchain technology? >> actually, this is a good question. right now, we know the market is kind of bad at this time.

everyone is worried about the price. actually, it is a great period of time for a project like us, because the market has washed projects note focusing on the technology or social value. projects like ios t and the building social value will stay in the market in spite of this bad market. we are not worried about the -- we want to bring a social value project to the world. emily: are any customers using your product yet? if so, how many? >> yes, we have partnerships right now, although the main network will be launched at the end of this year, may at the beginning of next year. right now, we have a lot of projects going on right now where there are definitely a lot of use cases. for example, last week we had a

partnership with a security company helping children in a province. you bought will donate one pair of glasses to the children. that is how we can cross the gap between the community and a company. put otherping them to transactions on our blockchain said that people know that the money that they donate to the charity logo specifically to a -- will go specifically to a children's nonprofit. we are trying to use the blockchain technology to cover the gap between a charity company and the communities. emily: the majority of people working in crypto are men. the majority of wealth held in crypto are held by men. i'm curious what it has been like for you to navigate the blockchain industry as a woman. do you think that experience

will change for other women? that is an interesting question. at the beginning, it is definitely a more male-dominated industrial -- industry. it definitely brings difficulties at first, but it has changed to that pressure. we know women in blockchain keep learning. we keep learning not only about what's happening in society, but also about the whole blockchain thing. with more and more talented women coming to the blockchain world, it is changing the male-dominated society. that is a concept of blockchain. moreoncept is to build a equally, more social friendly environment, that genders, races, social status shouldn't be a factor at all. emily: right. we certainly also don't want women left out of new wealth creation either. , thanker and ceo of iost

you so much for stopping by. coming up, tech regulations seems more like a when the -- than if. how much longer will it take? we find out next. this is bloomberg. ♪

emily: reid hoffman got his start at paypal working alongside peter keele and elon musk. he went on to cofound linkedin, became a partner at greylock and is now one of silicon valley's most prolific and successful investors. he bet big on facebook early on and has always been captivated by the dynamics of social networks. our bloomberg anchor david westin caught up with him earlier and asked about the certain distrust surrounding social media and if the government should play any role. >> it is possible that some regulation could be good. it's a lot easier to do a lot of tech industry, to our position in the world, to

the invention is in the future, to this lead in the industry, then it is to be helpful. i think we should be careful. i think where the dialogue should be right now is not as much should we regulate or not, as much as what should the be?et for example, what do we want out of the social infrastructure of social media companies?what do we want on the handling of data ? what do we want on the new evolution of these technological platforms, ai and so forth? and what are the guidelines? we want you guys as companies telling us about these issues, reporting on them, and we want you to be more transparent about them so we can see how we need to push you. whether or not the push is a dialogue, inquiry, or regulation. i think that is where the conversation needs to be. reporter: if there were constructive regulation, would it be on the subject of meaningful disclosure? that is to say, disclosure i can understand?i don't have to spend three hours trying to sort through this thing.

perhaps some control saying yes, i want that or no i don't? why don't we have that? >> the question would be to figure out what kind of transparency do we think would be most helpful and meaningful to us? the first thing would be to tell us about this stuff. disclosingnot being enough, we will make regulation to make you disclose. then, for example, data security, is it an ability to have controls and your understanding how your data is being used and your buy-in? those probably are the zone, but how do you do that in a simple way that also leads to the ability to innovate in the future? reporter: as we talk with the sheryl sandbergs and mark zuckerbergs of this world, what are the discussions of how to get in front of this, instead of the appearance that you are being dragged kicking and screaming? how do you address the grand challenge? do? could they

have could you say that this is what you could do, this is to get us moving in the right direction? >> i think the key thing is to transparent and discursive about the things you are investing about. by the way, they are. they are investing in election integrity and data security. not just to do it, but to show people you are doing it. you say, i hear what your worries are, and we are working on them. by the way, it may take a few iterations, but we care about it and we are investing in it, and then to be talking about that. i think they are on the path to exactly those conversations. emily: linkedin cofounder reid hoffman with bloomberg's david westin. you can catch their full interview on the next episode of "bloomberg big decisions," november 7 here that does it for this edition of "bloomberg technology." tomorrow, do not miss our exclusive interview with microsoft ceo satya nadella.

i am emily chang coming to you from l.a. today. this is bloomberg. ♪

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