emily: i'm emily chang and this ♪ emily: i'm emily chang and this is "the best of bloomberg technology." the house of mouse takes on netflix about we talk to ceo bob iger about how disney plus will reshape streaming. and can congress force change on the biggest players? we hear from mark warner. and softbank announces a new technology fund focused on latin america. hear more in our exclusive

interview with their coo. the first of the top story, disney is attempting to reshape the media landscape as the number of cord cutters grows. the entertainment giant shared new details on their anticipated service. disney plus is expected to drive the fastest uptick of any direct consumer platform to date. i caught up with bob iger in los angeles on thursday. emily: what makes you think consumers will pay for this on top of everything else? >> disney, pixar, marvel, star wars, national geographic. these are brands that are beloved and have a long history of serving the consumer for many, many generations. and they are still popular and still relevant. making them available on a new technology platform, a platform

that is simply more modern and growing in popularity at a price that makes sense with a beautiful user interface, that is why we feel confident people are going to sign up in droves. emily: parents will be happy to know that some of the animated classics are coming out of the vault, but in general, how will you decide what to put where and when? between the theaters, the channels, and streaming services? >> as it relates to films, movies made for the big screen, they will still be and what we will call traditional window. that window has served us extremely well. the studio has done over $7 billion in global box office twice just making about a dozen movies. we have no intention of using this platform to force movies onto this service from a timing perspective. any movie that we make for the big screen will be on this

service exclusively from here on out. the same thing in terms of television, we're still going to make television shows for traditional channels, because they're still of great value, but we will also make original programming for the new service that will only be available on the service. emily: you said you will likely a bundle the services. >> i think you can figure we will bundle espn plus and disney plus fairly soon. hulu, we are still minority partners and everything we do has to be done in a way with them in mind. bundling, it would be something we might take to the board, but would require approval. but we think there could be consumers that want all three and eventually make this possible.

emily: will you be attempting to buy hulu? >> we will see. we have been in conversations with both partners left the possibility, but it's still a little early. emily: you to give up some partnerships. you mentioned some of your distribution deals, he talked about roku, sony. he did not mention apple or amazon, why not? >> it will, in all likelihood, be available through traditional distributors. apple being one of them. i am fairly certain that if people want to buy the app, i'm sorry, subscribe, they will be able to do so and there will be other platforms that will also sell apps, we will do that as well. we do not have any announcements because we have not made deals. emily: you are on the apple board. now that they do have a direct

competitor, will you stay on the app? >> obviously, i mindful of my responsibility to apple shareholders as a member of the board. and when the subject is discussed in meetings, i am careful to recuse myself. i am in constant dialogue about making sure that nothing would cause me to be in keeping with what a board member would do. but it is still relatively small and not really discussed all that much. so far, it has been ok. emily: you've noted a lot of losses. he said disney plus will not break even until 2024. should we assume you will be flat to down? >> don't forget, we're still growing the company and have

delivered great growth over the last number of years. our networks have been healthy and the studio has delivered great growth. we are also observing 21st century fox and their business and will start factoring in going forward. we're not getting projections about the whole company, but we are confident we will continue to deliver value to shareholders both in the near-term and long-term. emily: what do announcements today need for disney content overseas? specifically china and the broader asian market. >> i think you can figure that all of the contents that we make for the service will be available internationally in

different forms in some markets, we will launch the service as a subscription model. it won't ultimately be the case as there are laws in china but still govern services that we have to comply with. we are not sure how the overall disney plus service will enter the market, but ultimately, the product being made for will be available in another form. emily: you are working on three new tv shows for the disney plus service related to star wars. you have a movie in december, are you a little concerned about star wars fatigue? >> no, not at all. first of all, the movie that is coming out in december, the ninth movie, soon, we think is going to be great. and we have not announced specific plans for movies thereafter. their movies in development and we have not announced but we will take a cause and take some time and reset because the skywalker saga comes to an end

with this 9th movie. we will end up in a hiatus, and that is what is great about what lucasfilm is doing for the service. will fill that time with star wars live-action series, which have never been done before and at a quality level of the movies. emily: you have completed the acquisition of fox assets. there have been some layoffs, but not as you some thought it might be. will there be more? >> we still have a lot of integration to go. with the integration comes consolidation government we have already said that. we have not talked about specific numbers were timing, but it will definitely be more consolidation going forward. emily: you are making a huge transition here.

where do you see disney and 5-10 years? >> we have always seen disney as a technology company going all the way back. one is to use it to make the product better, this camera and what did the backgrounds. also to improve the experience of the consumer. in five years, i think you will see disney, at its core, being a content telling company that is using technology to do all of the above. make a product better, make the experience better, make it more accessible and more relevant. in other words, distributed in more modern ways. emily: that was bob iger, ceo of disney. coming up, one of the biggest tech ipo in years. we bring you details on uber's plan to go public. and if you like bloomberg news, check us out on the radio and in

the u.s. on sirius xm. this is bloomberg. ♪

♪ emily: it is the biggest ipo this year. uber has officially filed, offering new details on operations and finances. we got a early reaction soon after the filings. take a listen. >> it is because it sold off businesses in southeast asia that it is able to account, this profit was really a loss. if you added up, i think it was 4 billion last year or 3 billion. it is than 10 billion in losses accrued, so this is a massively money-losing company. >> which we are not surprised about. it is another loss making company that has been hammered in anticipation of these numbers. how much is the investor base worried?

>> it seems they are not worried at first. it came at this price and then saw a drop several days later. >> i am fascinated i the fact that these companies can grow so big on vast quantities of private capital and be able to come to the public market. was there anything in the filing that give you pause for thought? >> we are the first investors in the company's i want to make sure we disclose that. i have not got through it in detail, obviously, we are existent investors. they did have uber eats, which is growing crazy fast. here is the reality, public market investors, and we do public market investing, is crazy for growth they are trying to have companies that are

growing really fast and that they can invest into. it grows revenue at 46% a year, this company on the road, zoom communication is one of the hottest software ideas in a decade. it is an enormous company that will trade at an extremely rich valuation. but investors are just dying for growth. three months ago, if we had all sat here and said lyft would be a $21 billion company, i think all of us would consider that a wild success. >> i want to dig into what you mentioned. you talked about uber eads growing fast, i am surprised at how tiny it is. the bulk of the 2.5 billion made in the last quarter was sheerly

the ride-hailing business. is that not a shock? >> i have not gone through all the numbers in detail, it filed an hour ago. but in q4 of 18, uber eats from a volume perspective was 2.6 billion. i only know that as i saw it while back. but i have not look at revenue numbers. >> let's turn our attention to a man who has. i was surprised by how dominant ride-hailing has been what has so many other parts of growing. >> uber wants to sell this vision. it has the suite of services, when you dig in, overeat is very small relative to ridesharing. it is growing on gross bookings basis, and when you dig into net revenue, it looks like it

reverses because of the subsidies. if you are grubhub, you have sort of got to have a little laugh. uber is able to operate their food delivery business unsustainably while trying to grow market share, but just look small relative to ridesharing. >> this is a company focused on growth and growth potential. it is also spending significant amounts to about one billion on driverless cars. can you paint the picture of the future of driverless and how important autonomous is?

they say they might never be profitable. >> every company that is unprofitable always says they are not going to be. i think autonomous is much further away than people think, that is my personal opinion. some think it is two years away, i have a hard time believing that i will get in a over in downtown san francisco and it will drop me off in palo alto with nobody in the car in two or three years. i'll take that bet with anybody. i think it is a lot longer away. >> there is another important thing in terms of the ability to make money. uber is one of these companies, lift would be one, amazon would be one, and alibaba would be one where they have upward sloping curves. when customers spend more and more money over time. thinking about it quickly, think about everybody who joins alibaba in january of 2015. over time, those people spend a lot more money over time. what is important as they don't have to reacquire you as a

consumer. every time we get into an uber or a lyft, they are quite profitable because they're not having to reacquire us. one of the more interesting things is that over 50% of people who use uber eats, it is their first time on the platform. so i think the ridesharing business has a huge runway still to go given that 50% of people have never used the ridesharing. >> able to grow off of that user base continually. i'm going to get your perspective about what this says about other companies coming forward, i think zoom even makes a small profit, but what are we expecting in the so-called herd of unicorns? how much oxygen is going to be sucked up by uber? >> herd is not the right word, it is a stampede. zoom is going to go, interest,

post makes going soon if they don't sell, and it just seems they cannot get enough. >> i want to get your view on international growth. did any numbers surprise you? i was surprised by how big latin america is. >> one amusing thing with this contract they draw between the market share and category position. the market share is very small and it sees a huge amount of growth for ridesharing. but category position, relative to competitors, it says that in a lot of regions there is over 65%. whether that is canada, latin america, or europe.

they are saying they have a dominant position all over the world in these regions. and yet, they represent a small share of what is possible. that is certainly the messaging coming out of uber. to confidently say that they have a strong position in the countries they operate in or they own a stake in major players in those regions is a compelling international position. >> briefly on international growth? >> i think international is very strong. one, i think they are a master chessplayer. he understands it from expedia. they have big investments at uber in southeast asia, russia, and china, all exciting businesses. latin america, it will give them an air monopoly in the middle east. australia is very profitable. it is interesting. if you think about lyft, worth

21 billion, it implies uber is worth 40 billion. emily: there is rising investor demand ahead of the directive listing at the workplace software maker goes for double their valuation. and later, he is one of the most critical voices in washington on the topic of big tech, we hear from senator mark warner about his new push to protect personal data. this is bloomberg. ♪

♪ emily: bloomberg reported slacks valuation has risen. ahead of the debut, some investors are buying stocks for more than double the price of the last funding round, which i've been at $7.1 billion. shareholders have sold at prices as high as 25 or $26 a share. this as the company plans to directly list on the new york stock exchange in june or july.

we have more details. >> slack is preparing to go public by a direct listing rather than a traditional ipo. emily: just like spotify. >> in preparation for doing so, there is a thing spotify did that slack is doing as well. starting to really stop on the secondary market, to allow some sales to go through with the idea of two goals. first is to do price discovery around what range they might want to price the shares that also trying to manage volatility ahead of the listing. this is based on reporting we have done with people familiar with sales. shares were almost $12 apiece in the valuation was around 10 billion and based on what we

have seen, it could be small, one-off type stuff, but it does indicate an interest in slack stock at least at double the price. emily: and it is the opposite of what we seeing with pinterest, which is in the middle of a roadshow aiming to raise money at $3 billion less than its last private funding valuation. why is there so much enthusiasm about slack? >> investors see an opportunity for growth. they have always had strong

performance, a lot of people paying for the service. they have a free version, but most people pay. people just see it as a strong software bet. and there are questions that remain especially given lyft's performance. emily: talk to us about the roadmap for slack. what happens over the next few weeks and months? >> it seems like slack is preparing to list on the new york stock exchange, probably june or july. as these things go, we never know how is going to happen. but unlike with a traditional ipo, and direct listing there is no lockup period for employees. it is just that current shareholders have the ability to sell. emily: right away. >> yes, and that is different for a lot of employees were waiting for the moment, realizing the value they have made in their equity. emily: what is the motivation for that? >> it is different with every company. direct listings work well for companies that have a few things going. one of if they have a lot of cash on hand, to, if they don't

need to do a lot of listing and if they are a household name. spotify definitely did broad ranging consumer service. slack is more business focused, but generally something many people have exposure to. they know it, they like it, the product is well-made. they don't need to raise additional capital or do the marketing associated with an ipo, then they could do this direct listing instead which tends to be favorable if you meet those qualifications. everyone says's slack is a strong position to do this. other companies that have been floated as potential direct listings if this becomes more popular is, for example, airbnb. emily: a similarly strong performing company with a lot of consumer awareness. >> really well-known. emily: coming up, lawmakers threatening to build up tech. what does it mean for google and facebook?

we hear from senator mark warner. we are live streaming on twitter, check us out at technology and follow our global breaking news network tictoc on twitter. this is bloomberg. ♪

ofwelcome back to the best bloomberg technology. a new bill was presented to u.s. congress that takes aim at tech with proposals to ban deceptive features on facebook as well as other big sites. there has been a rising tide to increase oversight of tech. caroline hyde spoke to one of the most critical voices thursday. this is the first of a series of bills i will be introducing to try to put some ground rules around social media.

it is focused on something that may appear to be a nuisance or annoyance, where you have agreements you can't really understand. flashing arrows trying to get you to agree. you cannot get the unsubscribe component on a particular site. what experts have shown is there is a great deal of manipulative behavior. good startingis a point. we have decided to take a light touch, and industry driven standard body that would be quick enough to move toward the larger users, 100 million individual users a month. we would have the ftc as the fallback regulator. from a financial standpoint is like the security industry standard. i think it is a good place to start.

i have other ideas around identity, content, transparency. there will be more legislation in those areas. >> on this particular bill, do you think it will get the committee behind it to pass such a bill, because it does not seem to have that backing? sen. warner: this is an area, my background is in technology, so i hope i bring some knowledge to the floor. i believe all the approaches i will take our bipartisan, less about liberal-conservative, and more about future-past. there is a growing recognition that the wild west days of social media platform companies is coming to an end, and i think a lot of the commerce committee, deb fischer, my partner on that committee, there is work going on around the privacy domain.

it follows some of the european models. i hope to add these other pillars that may be wrapped into a larger piece of legislation. >> let's talk about privacy where the consensus is building. would it be based on the rules in europe? sen. warner: there are members in both parties working bipartisan, there are certain areas that are clunky, that will not alone address the issues. there are issues around rights we got to have, knowing when we are being contacted by a human being versus a bot, or putting up a geo locator if someone says they are in new york but they are in moscow. it may not be a true post where it originates. we have to have a debate about identity. one way to look at this would be

to have some level of identity validation. there are other ideas we have on transparency. we need to make sure for users to realize these platforms are not free. if we knew how much data they are collecting about us and the value of that, there might be new operators who can come into the market. >> doesn't frustrate you how limited the u.s. has been getting legislation through? the eu has made facebook be more transparent to ensure people know their data is being used. amid brexit turmoil, they have pushed through issues about hate speech. when will the u.s. play catch-up?

sen. warner: i think that is a good point. most of the technology innovation rules of the road over the last 50 years have been set by the americans, and i think we are defaulting that leadership. not only to the europeans, but a more bifurcated approach where california has taken european models to do that at the same level. america acting in the best interest, they can end up with a hodgepodge of rules. recently, australia placed extraordinarily challenging rules and regulations on content. these are issues that will be touched. if our government can step up to the task, and i think the good news is most of these issues do not fall on a partisan basis, as long as we can get focus, some members do not understand how these platforms work, so there is an education process going along.

emily: that was senator mark warner with caroline hyde. not content to wait for social media and police to regulate themselves, the u.k. is proposing its own new law. if companies like facebook, google, twitter fail to prevent the live streaming of a shooting or violent act, they can face fines, that could include penalties on managers. we spoke with tom giles and mark mahaney. >> they made a technical challenge which no company can overcome, same with youtube and the question all quality of content. emily: is it a technical challenge? >> there is a technical element to it, it could be a values challenge. the facebook founder is looking

for regulation, a sign of maturity. competition, maturity, regulation, regulation has risen, and in terms of stocks, it puts a cap on what they can sustain. it is already in facebook's numbers, that is what led them to lower its guidance. this will be ongoing risk. i do not think it is existential, and the extreme things about having them divest, that is highly unlikely to happen. there is an advantage of wildcard regulatory risk by bringing in mainstream regulation. emily: there was a new law passed in australia in the aftermath of the christchurch shooting which would require the company to pay 10% of the revenue if they violate the law. they are violating the law every

day. hateful content that is up there. could that be material to their business? >> i guess it could be, i would be surprised to see that. it is a global media platform, we have never seen anything this size. one area of regulation we have not talked about, facebook accounts for 90% of social media usage worldwide. 95%, they own instagram. they should be regulated. whether it should undermine the business, that is the open question. emily: you have been walking through the potential new laws, it is dense, but tell us what different countries are looking at. >> it depends country to country. in europe you have gdpr.

that puts these countries to 4% of overall revenue, fine, you have the u.k. considering something extra that goes the on that to punish these guys for failing to curb the content we saw in the aftermath of the new zealand shooting. france, a digital tax. there are questions what it would look like. those things need to be seen, what is interesting mark zuckerberg needs to be careful what he asks for. he says we are willing, ready, we need and welcome regulation, but what kind of regulation does that look like? i do not think they are saying, fine us, take our revenue. they are saying, help us come up with guidelines, definitions to help us navigate, instead of standard for what is acceptable and what the repercussions should be when we fall short.

i do not think they were talking about 4% and plus of revenue intake. emily: tom giles and mark mahaney. a new $5 billion tech fund, our exclusive interview next. and no longer something to be imagined in a galaxy far away, we will tell you how scientists capture the first image of a black hole. this is bloomberg. ♪

emily: a major move for softbank, the japanese conglomerate with j.p. morgan to oversee a $5 billion technology fund focused on latin america. i spoke to the coo about this new fund and about the opportunities in the region. >> when you look at the market,

the latin american market is half the amount of china, it has the right technology, we are looking at tech companies that are growing and the leveraging data and artificial intelligence to disrupt traditional business models. in the first few weeks we are looking at 140 companies, way above our expectations, and the investment we plan to launch in the latin american region. emily: 140 companies in just a few weeks. the fund is raising record capital when dry powder is at record highs. how does softbank stay disciplined and put so much capital to work at the same time? >> i think we have been quite

disciplined. we have a clear investment mandate. we are looking for that company, that entrepreneur who has the ability to leverage artificial intelligence, leverage data, disrupt traditional models. that is broad in terms that we believe because of artificial intelligence, the level of disruption in a next few years is significant. pretty much every industry will have disruption, so we choose a winning company we can't but our capital and growth strategy, and basically grow. we cannot replace, we have over 70 companies, we have invested, they are doing great. we apply the same logic and discipline to latin america. we traditionally focus on china, india, u.s., and now latin america because it applies to that region of the world.

emily: how much time will you spend on this latin america part of your job and your duties as coo of softbank group? >> we are pretty well-organized. we have a division fund, i run softbank international. companies we have a majority ownership, such as energy groups. i am launching a new technology fund. we are spending time in latin america but the core of my business is running the corporate group as well as the coo. the four leaders in the company are able to accommodate possibilities accordingly. we have an amazing group of people through the world that supplement us. we are busy, there is a lot of

activity. we are applying the same rigor and discipline. emily: you have a big ipl potentially coming up. what are your expectation for uber's ipo? >> we try not to comment on the potential we have invested in with the ipo. we have invested in a lot of tech companies that are growing at an amazing rate. we are hoping the investment we made will be translated into great returns for the investors in our fund, and the shareholders of those ipos.

i think travis did an incredible job disrupting transportation, and a great job taking the company to another level. when we decide to do an ipo, it will be a great ipo because it is a great company. emily: you were reported to get one of softbank's uber board seats. what is happening with that? >> it is complicated. we invest in so many different companies, and we are a foreign investor, that is processed through the different agencies. to be fair, we believe in many cases because we are investors in so many areas, there is no area for us to join the board. the company is doing great, management is doing great, and they have a sizable board. emily: that was our exclusive interview with softbank coo

marcel claure. this is bloomberg. ridesharing getting off the ground. ♪

emily: it is being called a breakthrough, and pushing the boundary of science. the first image of a black hole in space, you are looking at a black hole in the center of a massive galaxy. 65 million light years away. up until this point, a black hole was something we'll me saw in simulations. it took eight telescopes from around the world from hawaii to antarctica to make this possible. to tell us about this exciting new frontier, we spoke with

an experimental physicist. what questions a six-year-old might ask a scientist? >> i think children have the best questions. the reason they are excited is why i am excited. they look at it, and it is something you would never see on earth. the laws of physics going on and making that image are the what you only hear about in harry potter novels or comic books. emily: here are questions for my son, where did it come from? where do black holes come from? >> these are the best questions. this is what we talk about at an astronomy conference, where do black holes come from? everyone has their own opinions. this observation will help us figure it out. the only way to get a big black hole is put together a lot of little things, and this is a

billion times heavier than the sun, which is thousands of times heavier than the earth. a lot of things smashed together, and what we do not know, do black holes make galaxies, or do galaxies make black holes? emily: what are the opinions? >> for the heaviest ones, one of the opinions is when these are flying around in the center of the galaxy, it is crowded, and their gravitational pull drags on each other and slows things down, and they land on the black hole. part of the reason you see this glowing orange material around the supermassive black hole is the friction of these gases rubbing together as they fly at the speed of light. rubbing together, just like rubbing your hands makes them hot. if you rub gas together, it makes x-rays and radiation, and that is why we can see it from so far away. emily: my son said, why is it so hard to take a picture?

why can't you a drone? >> we will send a drone in their re someday, i hope. this is taken with -- it is like what you see in the movies, people use sonar or radar to figure out what is going on in the ocean, it is a different kind of radiation. in this case, we use this, the people who observe use this because they can put radio telescopes on different sides of the earth. it is like how something would look if your eyeball was the size of the earth. a black hole is about as small of a thing as you can make, as far as we know from einsteinian physics. if you took 5 billion suns and collapsed them together, this is the smallest thing you could make from that.

it is millions of light-years away. we think it is something small, like an airplane in the sky that looks small, or the moon looks small, this thing is millions of times further away, billions of times further away. the moon we look at, it is a half a degree across in terms of angle, but it is hundreds of times further away from the earth than it takes to get from l.a. to new york, if you do that 100 times, that is about how far away the moon is. you would have to do that hundreds of billions of times to get as far away as this black hole is. emily: finally, back on earth, you can take to the skies in a new way. by the flights were once reserved for the rich and

famous, but all you need is a smart phone to hitch a ride with one of these aviation startups. imagine you want to take it quick flight, instead of shuffling through security lines and navigating terminals to board a commercial airline, you can opt the private flight experience with the touch of an app. two startups are pushing a private flight industry forward. >> we think of ourselves in the same they know is on-demand transportation companies like uber or lyft. we are a journey that goes farther. emily: blackbird is focused on the 5200 mile journey. it is backed by enterprise associates. >> aircraft is utilized for 1% to 2%, and it is an expensive asset. when you can advertise the cost basis, and enable a lot of pilots who want to fly, you

really create a flywheel. emily: valued at $1.5 million advertisers semiprivate flying with not so private affairs. not so private fares. other private aviation companies offer the private flight experience by putting passengers on private jets. >> what i see is a lot of technology minded people who think with the right algorithm you can make money from inefficiencies in private aviation. you have big players in the industry, they are operating on schedule. emily: like established commercial airliner delta offering discount flights. >> on the other side you have the technology component.

that is not to say this is a business that can grow leaps and bounds, it is just to date we have not seen the regulatory regime keep up with a lot of tech innovation. emily: private pilots are forbidden from profiting. blackbird pilots are commercially certified and own their own plane, keeping the startup cost low while meeting faa regulations. the charter flight has grown 2.6% in the last five years to reach revenue of $25 billion. tech startups want a slice of that market. that does it for this edition of "best of bloomberg technology." we will bring you the latest tech throughout the week. we are live streaming on twitter.

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