♪ caroline: i am caroline hyde, infra emily chang. closing in on a deal, t-mobile on the cusp of securing a deal from the u.s. justice department for a merger with sprint. will this block the introduction of 5g? speak -- seeking to expand into the profitable software business with its demand attack

acquisition. what a first half for tech ideas, nasdaq announcing 97 initial offerings. can it be sustained? we ask a nasdaq insider. first to our lead and another turn in the sprint-t-mobile deal. the u.s. justice department is on the verge of approving one. dish could become a strong competitor in the u.s. market. let's bring in our cells reporter. you broke it. congratulations. it has been a long time coming. reporter: this is a happy turn of events. the shares are very close -- there are a couple of issues remaining but not insurmountable . metboard of deutsche yesterday to discuss the package that is being discussed at the boj as these other remedies that will help the boj -- the doj

approved the deal. they are selling three prepaid brands as there will be -- spectrum as well. they are talking about how dish gets customers across to their network and there will be arrangement where they share the network and spectrum. caroline: this is what revlimid -- what regulators have been grappling with. this alleviates that element. not just the department of issuee that is having with this. not just regulators, it is the states themselves. some of them have filed -- reporter: 13 states and the district of colombia are against this. they are worried he will be bad for consumers and raise prices, taking away on of the players from the market at face value, never a good thing for consumers. but if the doj approves this, it makes the case weaker because they have to argue to the court

why they are not going along with the governing bodies whose job it is to assess competition and protection. caroline: we waited with -- we wait with bated breath. anotherlk about bloomberg scoop. on wednesday shares of symantec sword after broadcom announced talks to buy them. there was a value of 13 7 billion -- $13.7 billion and this could be an expansion into the profitable software business. make something good for the broadcom portfolio. i want to first go out to you because talk to us about why this is a perfect fit. havingr: thank you for me on the show. i think symantec at the initial stage passes the test for broadcom. broadcom has 52% operating

margin, so for them to consider acquisition, it has to be profitable. there are not a lot of companies that can reach 60% plus i would say would be the threshold for them to look at acquisition. the last deal they did which was to be the associate -- performing extremely well and when we look at something like symantec, it has shares similar businesses, one already 50% operating margin and another possibility of 60%. they could drop into this platform and strip their costs, mostly marketing and sales costs to drive operating margins were there. it would be a profitable deal and extension of the portfolio they have. caroline: we have been waiting for years for what they would and out to go after ca

after qualcomm fell away. what makes symantec vulnerable to being bought out? reporter: there has been a lot of drama. the ceo has been ousted a few months ago. there had been an accounting investigation and star board volume came on the scene, pressuring and got some board seats. it is a vulnerable time for symantec for a takeover. caroline: we were talking about a t-mobile-sprint deal and regulatory issues, are there going to be [indiscernible] considering broadcom in the past wasn't able to get past qualcomm? liana: before this, they had a singapore headquarters. they are now totally in the u.s. to alleviate that issue. cybersecurity is a national security concern and symantec does work for the u.s. government. the review is something investors will be watching to see how it goes.

there to be the e.u. review. no slam dunk for any large deal where there is a national security element. you really have spelled out why you think it is a perfect fit and why it might be good for the business. interesting other analysts are ,uestioning management strategic direction here. do you think it is the right direction to be going focused in the cybersecurity? we have seen others do it. i think broadcom is focused on capital rip currents to the -- capital to the shareholders. this was on the cusp of 50% operating margin, which no other company in the past good approach in the semi conductor land. with this they were able -- ca d

eal, they were able to push it closer. for them to be able to expand and build on that, they need something outside of hardware, something outside of semiconductors. software companies will have high growth margins and spend a lot of money acquiring new clients. the strategy with ca is dig deep and all-you-can-eat strategy. don't worry about getting you clients. was $100 case, there billion of acquisitions year-over-year. with symantec it would be easy to go back to the same clients with a bigger portfolio and drive profitability. that is why we think it is a perfect fit. caroline: we have seen shares of symantec closing 14% higher. what sort of premium to you envisage? this is a company that has been under some duress. could there be getting more?

will -- a bidding war? harsh: it is possible other people could come in. i am not an expert on m&a or banking aspects, but the premium of current prices would still work as far as radcom's ability to -- broadcom's ability to take it given success with software in the past. caroline: both of these companies have private equity background and history. [indiscernible] the involved with this? liana: symantec's board has representatives from bain and silver lake. they will have to involve major shareholders. broadcom was built up through private equity roots, worked with silver lake and other firms. heavye equity does weigh here but we don't know the structure of the deal and how it will participate. caroline: we will wait you to

break that next. the anna baker, harsh, thank you harsh, thankr, you. cracking down after facebook. we bring you the latest next if you like bloomberg news, check us out on the radio and bloomberg app, bloomberg.com and sirius xm. this is bloomberg. ♪ ♪

caroline: facebook is the latest company to come under the e.u. scrutiny. they sent questioners about a range of practices as they seek to determine whether the social squeak uses its size to out competition.

they are looking at the sales platform and how it uses shares data from apps. the company will respond next week. the e.u. is also looking at dmazon and they have fine google. david kilpatrick at max chafkin joining us. max, we will start with you. does facebook have something to worry about? have companies, competitors voiced this about concerns? max: at the end of last year there were internal emails that were made public that were read by some to imply facebook was cutting rivals out of its platform, other social networks like vine, the twitter owned video network, which kind of reminds you of allegations levied against microsoft in the late 1990's were the allegation was microsoft has the dominant platform, it was forcing it on

to peoples computers. it is a problem and place in to a larger narrative -- plays into a larger narrative of tech power. caroline: something you know well. we have heard facebook particularly saying bring on regulations to a certain extent. the tactic has been to go out and -- the gdpr, it has been a good way of means of regulating that. how will they react to this anticompetitive regulation? itangie: he may say he wants but not antitrust review wants help with the speech controls and that sort of thing, privacy advice from the e.u. which he claims has been beneficial. the kind of thing you were talking about with max and this new investigation, it is potentially problematic -- we have seen in so many instances they didn't have the controls or

the internal behavior to get through these deeper scrutiny situations without malfeasance being discovered. the chances there might be something there is reasonable but the other reason it is problematic is everybody uses facebook for marketing. any company, you can't not use it if you have a consumer product. it is necessary and that includes digital products which might be seen as competing with facebook. it is easy to imagine that companies that facebook perceives as competitors have used facebook in order to advance their own cause. and facebook had data about them it gets from operating platforms that they could have used against potential competitors. in the case of vine there was reason to think from mark zuckerberg emails that it happened. caroline: you talk to the wider

same here and what is coming from capitol hill in particular is [indiscernible] 2020 hopefuls like elizabeth warren. margaret of the you has -- the e.u. doesn't think splitting this company up is the right way but how do you envision this, the e.u. debating this company? max: the u.s. kind of had a -- it washis win strange to say we will turn back the clock and change things. it is likely to be regulations around data usage and sort of fair access to data, or big fat fines. the thing with both of those sort of outcomes is neither necessarily hurts facebook badly. it is a bad platform that if regulators are paying away our

business at the margin it doesn't do much damage. caroline: what does a $5 billion fine get your when they bring in billions for quarter? quarter? are they starring to seem to handle scrutiny in the right way? they have made progress in the way they talk about challenges they face. i was in aspen and heard zuckerberg give a speech that was more contrite than some. he does acknowledge a lot of things that they are doing differently and need to do differently than they have in the past. i also want why they let things get so out of control in the past. they are moving slowly in the right direction but have structural problems that will make it hard. andnature of their ad model the way it demands attention and we are targeted, it tends to encourage the use of content

that is incendiary. they will be fighting against that particular problem. caroline: what about the announcement of the so-called cryptocurrency libre even though libra even though it is not until 2020? you seeing this as a way the company can navigate this successfully remaining [indiscernible] max: the real risk to facebook is less regulatory and more about brand risk very people forget it is the subject of more negative headlines the last couple of years but facebook has a wonderful brand. say facebook has this amazing story. mark zuckerberg is still a relatively popular guy. you go through a couple of years of this three or four years and it turns into a study drumbeat

drumbeatve -- steady of negative criticism. people around the world stop seeing it as their friend. that hasn't happened yet but i think if i were sitting in their shoes, that is what i would worry about. harsh: i would to suggest david: i would disagree because i think with educated users it has happened good people have been affected by the endless coverage of facebook mistakes and serious problems we have hold -- we have heard since the election of donald trump. in the real key markets where they are growing around the world, developing countries, india, south africa, brazil, it isn't a factor really and there is still really just raking in the growth of those markets. is -- ition of libra think it is a promising them.unity for

we have heard about blockchain and bitcoin. a big company is doing something that sounds to get might work and people say it is a threat to the global banking system. maybe they will be soft, but i think it is one of the smartest -- stopped, but i think it is one of the smartest things they have done. caroline: david kirkpatrick and mark -- and max chafkin. record deliveries for tesla. how it is affecting the outlook from here. this is bloomberg. ♪ ♪

caroline: tesla has set a new record for quarterly vehicle deliveries. they had handed out 95,000 quarter,in the second beating estimates. this is due to accelerated shipments to europe and china and consumers in the u.s. rushing to buy model 3 sedans before the tax credit shrank in half. the musk told employees

company was close to setting an online -- all-time record. quarter, beatingjoining us now is a tradg analysts. and from new york a bloomberg reporter. does this and the fears over -- nd -- does this reporter: there was definitely reason for people to sort of freak out about how much demand there was based on the first quarter numbers which were ugly but you heard elon musk make excuses about seasonality, early part of the year is the worst time of year for car sales which is true and also there was this issue of the tax incentives you referred to. from decembered to january so there was the rush effect in the fourth quarter. you have this big payback first

quarter. they have come back on the model three with the model -- model 3. others, theyand are getting older, much more expensive and you may he seeing cannibalization going on. that is causing concern about profitability. caroline: and you have said every day the value of the brand is going down. you said that in the past. do you still see that? brad: i do. -- researchon indicates liability is a big problem. by the end of this year tesla will have one million cars on the road and without a service network to support that -- we have seen everything from paint withs to cars being sold 1000 miles on them and prior accidents. i think they had the real challenge with the model 3.

forgot most of the model s 60% less and that is the problem for they missed the mark with the model three, and the company will keep earning cash unless s index rebounds. declines forear the models. caroline: what do you think of the next generation of models, the y, the likes of the suv? is it not enough? brad: the focus should be on neighborhood electric vehicles, lowers need, all electric cars, like the one which has a max speed of 25, 30 miles per hour but is a great neighborhood car, inexpensive. if we want to offset the carbon footprint for transportation as a country, what we need to do is

use local cars that are electric that are more inexpensive than 80% of the troops take in the u.s. -- more inexpensive. 80% of the troops in the u.s. are only a few miles. san francisco to monterey, it is too much. caroline: some people love the power of these cars. is it enough to make sure guidance holds up? it was interesting they didn't reiterate guidance. craig: you had this nightmarish first quarter deliveries number that was reported and even so 360,000 we stand by the forecast for the year. they left our information -- reaffirmation of that. to get to that number they would need to average 100,000 units the next two quarters through that is challenging for them to do and it would get them to the low-end of that guidance.

there is reason to be concerned about their ability to stand by that forecast. thinkne: even though you tesla should go down, i am interested in what you take of the executive leadership. ofre has been more trip people leaving. we understand europe and a key engineer is gone. is this a worry? there has been a ton of turnover and i think it is alarming and brings questions to the overall continuity of the story. the investor messaging has changed a lot from 2012 when the company went public. it was about the mainstream electric vehicle. now the model 3 is still a $48,000 selling car and far from the $35,000 level. the price as it comes down, they will burn more cash. caroline: thank you for spending

time with us. coming up we will be talking about [indiscernible] and what it means for momentum to continue. the nasdaq executive. this is bloomberg. ♪ is bloomberg. ♪ .

caroline: this is "bloomberg technology." 2019, first half of several exchange traded offerings. joining us now in san francisco is the nasdaq head of western u.s. listings. congratulations. there's a big hall. you claim to have won 88% of vc-backed deals. how do you hope to continue this? >> it has been an incredible

first half of the year. as you mentioned, we had 97 new members join the nasdaq emily. we have a great lineup for the second half. we will continue working with companies throughout all phases of their life cycle from the earliest stages through nasdaq private market, helping companies evaluate the right time to go public and providing great support to them throughout their lives as public companies, and, hopefully, the markets will cooperate. caroline: in some cases, it felt like they did not quite, particularly for the older lyft listingf it's on nasdaq or uber, which did not. >> one of the major differences now and between five and 10 years ago is the amount of capital available on the private markets which allows these companies to stay private so much longer, creates challenges around providing liquidity to employees and shareholders and really making a judgment about when public markets are right

for them. as you mention, companies that wait longer, there's fewer gains for new investors in the public markets, so we are there to help companies evaluate that and supply the liquidity that they need and make that decision. uberine: how do you win next time? >> a number of great, iconic brands are looking to come to market, and our playbook is really the same on all. it supports them as they are evaluating the public markets and provides the best trading platform, the best investor relations solutions and the best marketing and trading platforms for all companies. caroline: interestingly, some public companies perhaps have done badly from a not always intuitive manner. t,m thinking of beyond mea which i think was completely mispriced. what went wrong? pricing ipo'st correctly, considering we get more and more popping in price on the day of trade? >> one thing is clear, that

investors are willing to pay for future growth. many are still lossmaking, so investors are willing to bet on the fact that these companies are going to continue their growth rates and eventually turn to profitability. as you try to gauge how much forward growth, what investors are willing to pay for, that is definitely a delicate balance, and is also some great consumer brands out there, like beyond meat, where they have a heavy retail following, which drives a lot of interest in the name and makes it tougher to gauge what that interest will be. carolyn: it went ways -- in what ways can nasdaq help with that? >> we have a whole team helping companies identify the likely buyers not only in their ideal but throughout their lives as a public company. we hope to provide that our investorhrough relations services. caroline: why did it not work for beyond meat? >> every story is different. one thing that is clear is that

companies that start out on an upward trend, it is a lot easier to continue that momentum than the opposite. caroline: even though we have had a phenomenal number of these companies going public through you, there's still fewer public companies than there used to be. is this something that you think the tide will shift in some way? are we starting to see more companies attempt to go public? will the balance be restored in some way? >> we think that is a super important question. over half of u.s. american households are invested in u.s. equities. having a fewer number of companies to invest in is a big challenge in terms of keeping america competitive, both on an income as well as a wealth/equality front. that's why we launched an initiative to abuse ago called project revitalized to update some of the legacy regulations around going public, to make it easier for companies to go public, but i still think one of the biggest drags on companies' motivation to go public is the

amount of capital available to private companies. as long as there is access to capital and liquidity in the private market, that will reduce companies' desire to into the public market. caroline: given that we are expecting further liquidity in , thisrm of cheap money pool of liquidity from private holders searching for yields does not look like it is going anywhere any time soon. is that store -- is that sort of status quo here to stay? >> we think it is a structural shift and that is why we launched nasdaq private market five years ago. we have completed over 250 private market transactions through company-sponsored secondary liquidity programs. we think it is a very important art of the life cycle, as companies wait to go public, to be able to recycle part of that capital, provide liquidity to employees and early investors to help them stay engaged with future growth. caroline: is it going to be 97

in the second half? >> we usually benchmark a good year for us as about 100 40, so we are well ahead of pace, and we would love to see a double in the second half. we are going to have some great ipo's come to market in july that have already filed public leave. .- filed publicly we will see how many more we can sneak in in december. we sure would love to see a double in terms of the numbers we did in the first cap. caroline: we thank you very much for making some time ahead of a busy playbook. thank you. coming up, more on the twists t-mobile-sprint

merger and why it might finally be getting the ok from the doj. this is bloomberg. ♪

caroline: a number of u.s. tech companies may shift production out of china as a result of ongoing trade tensions. according to a japanese news outlet, hp and dell plan to move as much as 30% of the note book projection -- production out of china. last year, apple hinted it might have to raise prices because of tariffs on products made in china. as we mentioned, t-mobile is on the cusp of securing approval for its merger with sprint. it establishes more of a general line of asset sales been dish network according to people familiar. the justice department is hammering out final issues ensuring this can become a strong competitor in the u.s. market. joining us now to discuss is a

technology and media consulting firm representative, michael wolff. you are a man who knows content, and men who knows communication. what do you think of the chances of dish becoming a real competitor? the think dish -- one of things it has going for it is dish has 9 million tv subscribers and being able to add another service to this people is going to be rather easy. dish's chairman since basically the single alley -- the svengali of spectrum. they are likely to get off to a great start. they are not likely to be hampered by all the stores that verizon and at&t have. caroline: interesting. the question of 5g, how quickly it can be here, verizon has already released it to some extent in the united states.

particularly with the iseresting note of huawei, 5g front and center for the united states? >> there's a lot of people who wondered if this deal would take away competition. actually, it's going to enhance the petition because we will have three companies who will be fighting for 5g, which is likely to lead of some of the things from augmented reality to virtual gaming and all of these things are likely to really change the outlook for the sector. huawei is the leader in 5g and thegy today administration's loosening the ban on huawei and i think some comes from the recent china negotiations. that's a good thing, but u.s.

companies have to develop their own technology. caroline: i've been speaking with the nokia ceo who says it's , and i'm to switch sure ericsson would like to give it a go. is integral to the american chip companies and so many other things. thisis happening now at moment is huawei engineers are figuring out how to pull out every american component out of their products, and that just does not make sense for us. we want to have a very vibrant chip industry a net the same time, we want there to be competition for court equipment. we don't want the equipment to stopo expensive, to wireless operators from rolling out their networks. caroline: interesting to let's shift from 5g to another area that you are involved. what do you make of the push into sports networks that much more? we had the interesting bidding with its merger of

fox and having to spin off its sports network. we have seen at&t with dish work -- dish network and having to do the same thing. networks, foxorts was required to divest -- actually disney was required to divest the 21st century fox network. they sold it for 10.6 billion dollars to sinclair. what was interesting about that process is you already saw some interest from tech companies. amazon at one point was one of the bidders. one of the networks that was pulled out of the -- that was the or $3.5 billion to yankees, but also amazon was one of the players. ite generally, at&t says wants to sell its regional sports networks, which are much more limited. they have the rockets, the penguins, the mariners. they are not nearly as big as the fox networks, but you are not integral to warner media.

warner media is largely national media. networks are likely to be very interesting to companies that are local, like sinclair, two butr regional broadcasters, we step back and see all of the tech companies are now getting into sports more generally. amazon, which is doing simulcasting of thursday night football. we had twitter, which is doing mls. we have facebook, which is supposedly bidding on international sports rights. teche about to see the companies get much more interested in sports. regional sports networks are likely to get a piece of that. caroline: and then sports teams will be able to cash and all the more. we thank you for being on. happy fourth of july. a drone device that people can build at home and turn into a battle but complete with lasers, bullets, and loads of ai

software. we got an exclusive first look at the product. >> this thing right here might be the loch ness monster with an iphone 11, with footage of an alien drinking a milkshake in area 51. it is a highly guarded secret, and anyone who knows about it or has seen it has been for bid -- to bid and --forbidden admit it. that is, of course, until it made its way to my kitchen counter and now to you. dji's latest creation. .ou all know dji it is the world's largest drone maker and perhaps china's most popular tech company. people obsess over its products with an apple fan boy-like lust, delivers, bringing out

one new drone after another, but now dji has decided to bring its .alents to the ground wit it has built a robot and that consumers who want to drive around really fast and then shoot each other with pellets and lasers because if there's one thing the world really needed, it's the violence of video games brought to real life. the idea for this new robot started here -- the annual robo masters competition that dji holds in shenzhen. college engineering students show up for a couple of weeks and try to destroy each other with a variety of robots. as you can see, it's a lot of fun. the big idea, then, was to shrink these robots down to little ones that regular people could build and then use in their own battles. here is the lead of

the design team who helped bring this device to life. can you walk me through some of these different parts? >> a video transmitter, and here is the camera. >> the bullets in their? >> yes, 90% of them are made out of water. when you hit things, it smashes and disappears. on each robot, the line here indicates the hit point. game is toct of the chase each other around and hit these plates? is it like a laser? >> yes, and if you always aim at the center, you should be fine. >> because a dji's founder is a cruel, cruel into near, you cannot just buy it and play with it. must first assemble it

by hand and learn things along the way about robotics and coding. here's a group of youngsters dji turned into its product testing guinea pigs. something they built at a summer camp. >> this robot is also a tool for teaching. they can be used as an autonomous driving car, but we do not have building functionality for this. to programo learn and solve to achieve functionality. >> the hope is this will teach kids a few things, get them hooked on robotics, and turn into a worldwide sporting phenomenon of sorts. >> we hope that in the future, robotics will become a major sports like football, basketball . that's our vision for this product.

>> am coming for you! caroline: still ahead, could travel trend electric? ound next. ♪

caroline: bloomberg has learned samsung has completed a redesign of his galaxy fold and will debut its galaxy smartfound in time for the holiday season after problems with the screen were reported on test versions. tesla is surprising the street with record second quarter deliveries that beat estimates, .asing concerns over demand for more reaction, i wanted to from the ceo of

a car-sharing marketplace that offers, among others, teslas. how popular is the tesla to your customers? >> tesla is very popular. 3 are all in our top 10 most popular vehicles last year. we recently looked at the latest. we now have tesla as the third most popular searched for make on the platform. caroline: are people making businesses out of this? i have done stories on turo on the past where people gather high-end cars and make this their main moneymaking scheme. are people buying tesla on the proviso that they can help finance it via turo? >> a lot of people are looking at the economics of turo, which is helping people earn money on their car when they are not using it, and they are making

the math work. a lot of people who could not afford a tesla are able to afford one with the earnings they are making. last year, the average host earn around $6,000 a car on average. tesla would deliver more earnings for hosts that own a tesla. many people realize that by sharing their car seven to 14 days a month -- so, a third to half the time -- they can afford a tesla and the car can pay for itself. caroline: what are the trends, do you think? clearly, there's a desire to get your hands on a tesla of the weekend. what are people about to be using for this fourth of july break here in america? are they part of the holiday season. july 4, we are seeing record bookings of ev's. over the last 12 months, ev's have been growing 50% faster than the entire marketplace,

both on the supply side and demand side. people who feel that turo is a great place to try an ev before buying one. ev's are a big part of july 4. another big trend we are seeing the vannigansn of ,f the world and toyota tacoma and all these amazing vehicles that have been designed for camping or designed for van life or have been a retrofitted with the extras our hosts are providing to enable a unique camping experience. caroline: paint a picture of regulation and how able you are to grow the business at the pace you would like. i have to go over the bridge to new jersey to rent a turo.

how are you dealing with regulatory scrutiny and the ability to grow the business? >> unfortunately, we are not yet available in the state of new york, but the state of new york is, unfortunately for you and for all of our new york customers, an exception. we are operating in all other 49 states. there are some unique insurance related limitations in the state of new york and we are working with the right regulators and legislators to, hopefully, make a change over the next year, maybe even earlier. we are very hopeful to be able to operate in the state of new york. elsewhere, everybody is excited about seeing what this platform can do. i think everyone is realizing that cars are very underutilized. got 300 million cars in the united states alone. people are in sometimes

financial difficulties and unable to afford their car. last year, almost 7 million americans were behind on car payments. likeions like tour of -- more people afford cars and make transportation more accessible, so we are going out and telling that story to legislators, to regulators, and i think most people are very open to encouraging peer-to-peer car sharing. we are also open to regulating peer-to-peer car sharing. we have had many successful sessions this year with many states passing peer-to-peer car sharing regulations that was actually very positive framework for the growth of our model, so we are hopeful more states are going to join that bandwagon. carolyn: we thank you. that does it for this edition of "bloomberg technology." bloomberg technology", of

course, is livestream don twitter. happy fourth of july 2 our american viewers. this is bloomberg. ♪

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in need. live healthier, live happier - by resting deeper. get 15% off, and 2 free pillows. go to leesa.com today. paul: welcome to "daybreak australia." sophie: we are counting down to asia's major market opens. ♪ hall: here are the top stories we are covering in the next hour. major indexes set new highs the phone while beijing and brussels are accused