♪ emily: i'm emily chang in san francisco, and this is "bloomberg technology." ivm closes its $34 billion deal with red hat. our conversation with the ceos of both companies on the second largest tech deal ever. plus, ibm isn't the only one making deal headlines. cisco agreed to buy acacia communications. how does it fit into cisco's corporate makeover? and facebook unveils new diversity goals aiming to double

the number of female employees globally over the next five years. why diversity seems to be the one big problem big tech can't solve. itst, ibm has closed purchase of red hat, finalizing the world's second-largest tech deliver. ibm was once synonymous with mainframe computing, but has been struggling to adapt in a cloud-based world. the company is playing catch-up to market leaders and offering software and services over the internet. bloomberg's david westin spoke to the leaders of both ibm and red hat earlier. >> i think, a lot of times people think everything is going to move to one public cloud. that is not what we see clients need, want, and are even targeted to. i have an estate, like a house, i'm going to modernize it. and i have five to 15 public

clouds already, private clouds, app, ii modernize an will put it where i want and secure all that. we give them a platform between red hat and ibm that runs on any can runand they it anywhere, secure it, and manage it. that is a distinct capability, and that is what i mean by the hyper cloud. that makes us the leader in that. others talk it, but they may just have a connection between their public cloud and private cloud. this allows us to be multi-cloud anywhere. >> you've got some other competitors out there in the cloud that are pretty darn big, people like amazon and google. how is this going to help you catch up to them, or is that even the goal? >> i will start from the red hat component. our goal is to be an even better partner with those clouds. our software runs on those clouds.

it runs on premise, on ibm, those clouds. they will continue to be great partners with us. and as we are capable of moving many more workloads onto our software platform, that is more workload that those clouds can go address and run. my conversations with the major clouds have been positive because they see this as an opportunity to get more workloads out of data centers running on their clouds. >> our clients want us to be able to take our platform and run it anywhere. wese are both partners, and cooperate and are in competition on the others. david: you have ram the percentage of your revenue from the cloud dramatically. what is the ultimate goal? ginni: not that there is an ultimate goal -- as you think about the clients moving their work, 80% of their work will move to the hyper cloud. when we look at our revenues, it

transcends everything from our public cloud to our private cloud. these platforms, it will be on other clouds included in our services revenue. the goal is to move with the same journey that our client needed to move with. david: what about moving with the overall size of the cloud expanding? how much of this will just be riding with the cloud up and how much of it will be taking market share from other cloud providers? ginni: 200 basis points of revenue growth cocker over a five-year period. our own cloud, the ibm public cloud and our private cloud together, should be the very best for mission-critical work. clients have already said, i have 15 clouds already. we want our platform running anywhere else. as far as i am concerned, growth anywhere is going to be good for ibm. jim: to emphasize that, this is all about allowing our clients to provide more value to their customers. when a client build a new application, a new website, a

new local application, the opportunities for us to help them build the application, integrate it with data, run on our platform, on our cloud, any of those components are areas of critical value that weekend participate in as our customers create more value for their customers. emily: joining us to discuss further, bloomberg tech's olivia carnival in new york. this is a huge deal, one of the biggest tech deals in history. will this really give ibm a competitive advantage? olivia: i think that is the big question, what does the red hat acquisition actually do for ibm? if you think about ibm's history, we have a 108-year-old american icon that has largely been known for its mainframe cycles. in the past couple of years, they have been trying to

reinvent themselves. the acquisition of red hat is ibm trying to reenter the cloud space as a different company, trying to transform what it has provided so far and change the game. earlierheard ibm's ceo call this a game changer for ibm. it is important to figure out why this will be so significant not only for ibm, but for the cloud space, for other providers, like microsoft and google, who see themselves as partners ibm that partners with ibm rather than rivals. emily: what is the biggest risk and what could go wrong? olivia: i think one of the biggest risks here is whether or not red hat will be able to really fold into ibm. this company has a staunch and old-school corporate work culture. so will this open source, lennix-providing company called

red hat, which has been known to be a revolutionary in this space , really be able to come into the ibm family? we have heard the ceos talking about, within this acquisition, red hat will remain a distinct unit within ibm. it will have its own consulting services, its own sales, its own terms and conditions. the red hat leadership team, including the ceo, will remain within red hat. they will be able to talk to their own clients rather than through ibm. in order toat maintain red hat's independence, this integration will work seamlessly. emily: we have heard ginni rometty talk about the hyper cloud before. how is what ibm is trying to do different than what amazon web googles, microsoft, and

do with their clouds? olivia: they all provide different public cloud networks that have particular kinds of strengths. example,strength, for is its infrastructure services, or salesforce's cloud's strength is its customer management platform. you see companies buying and using these clouds for different reasons. what ibm is attempting to do is become the glue that will stick together or connect all of those different clouds onto one platform. you may be a company that needs to use salesforce for a particular reason and amazon for another reason. that means you may end up with up to 15 different cloud providers that all operate independently, and you have no way to bring them all together. ibm is hoping it will be able to become the connective tissue that aligns all of these clouds

under one platform. one of the really interesting things here is this idea, this kind of strategic move to become partners with their former competitors, like amazon, microsoft, or google, is what ibm actually did in the 1990's regarding the global services platform. it kind of partnered up with software providers and said to them, we will allow you to run your applications smoothly on our hardware. we will partner with you instead of run against you. that's what saved the company. so they are trying to do the same thing again. emily: a potentially huge technological transition underway if they can execute. that is bloomberg's olivia carville. olivia, thanks for that context. coming up, facebook seeks to soothe consumes on capitol hill to any potential backlash from its libra cryptocurrency project. what to expect from next week's

hearing. this is bloomberg. ♪

emily: facebook is seeking to mitigate concerns around its crypto currency project libra amidst growing backlash from regulators. in a letter to senators monday, facebook's cocreator of libra, david marcus, wrote, "we know that big ideas take time and we know we can't do this alone. we want and need governments, central banks, regulators, nonprofits, and other stakeholders at the table and value the feedback we have received." this, after members of the house committee told facebook last week that they should halt the project, citing national security and monetary policy concerns.

marcus will text a finest week and hearings on the cryptocurrency. obviously, you are both in the crypto industry. but i'm curious what you are expecting from these hearings. hunter, you also worked at facebook for a long time. what are you expecting to hear from david marcus? >> i think the approach they have taken throughout bringing libra to market has been one of being collaborative and open. i expect what you will hear from them, which we have been hearing for a while now, is that they want to work with regulators and they want to make sure they protect consumers, that they are developing this out in the public. as we think about libra as we know it today, they have actually chosen to share a lot of details of the project before even launching it. what we heard in the middle of june was the unveiling of a white paper well in advance of

when they planned to reduce the protocols. i would predict it will have a collaborative tone. and it will express a desire to work with central bankers and policymakers. emily: are you optimistic about it, if it actually launches in a year? >> the announcement recently was a little bit more of a pregnancy announcement than a birth announcement. i think it is incredibly admirable what they are attempting to do. also, they are competing pretty directly with financial institutions and, frankly, countries. on one hand, that is really interesting that they are basically coming out and saying, we have two billion people who spend at least an hour online with us every day. that is really meaningful. we have potentially greater mind share and wallet share on what

the countries out there do. potentially, we could better serve these people by providing eventually better financial services, better products. it is true, they have a lot more data than fico credit scores do. on one hand, that's really interesting, but it goes back to the same debate we see about facebook, is there too much power in having that extensive data? emily: hunter, can we trust facebook to not take advantage of the power it would have in this situation, which is the concern of lawmakers? hunter: the team working on this at facebook has tried to address this head on. two things they have spoken to on this front, first, they put together this consortium. they said, we are going to have 100 firms involved and be one of those firms. this is clearly an attempt to

won't best that they the only people behind the wheel. secondly, people have asked, will you be mining data, looking at what people are doing on this blockchain? what they have communicated, it is an open blockchain, so anyone will be able to interact with the ledger, but they have no special rights in doing that. i expect they continue to operate as an advertising company, but there's nothing about libra specifically that has an insidious intent. lily: i think they have architected libra such that it is not only their project. they are initially helping to get this off the ground, but potentially there are 100 other institutions that you can trust who are going to be helping bring transparency and a diversity of different other services to this network. i think that is really what they

are trying to kick off, because there aren't many folks who would be able to put together a global consortium of folks like that. it remains to be seen. i think there is obviously a lot of pressure initially from countries. when you issue your own currency, that is who you are kind of competing with. emily: india's cultural affairs minister said india would not be comfortable with a cryptocurrency, and facebook says they have no plans to have libra in india. doesn't that undermine sort of the point of having a democratized currency that people can transfer anywhere? hunter: the first reaction from a lot of central bankers, policymakers, the bank of england, the ecb has been, wait a minute, what's going on, we are not ok with it. that's the same as the response from congress and the senate. i think that makes sense as the default response.

another thing people are talking about with libra, it accidentally is the demonstration of the merits of a protocol like bitcoin, where you don't have a corporation behind the wheel, you don't have a set of directors you have to believe in, and central bankers don't have to worry that there is some other agenda being pursued. i think that is why, in june, bitcoin was up 40% around the time of this news. i think one of the reasons is people said wow, look at this demonstration of the decentralization thing that you can see in practice. emily: bitcoin, a big upswing in the last few weeks, but also a lot of volatility. lily, how is this impacting the industry, the companies you are investing in, and your decision to invest in them? lily: bitcoin has been extremely volatile from the beginning. it is known to have these 80%, 90% swings over the span of a couple of years.

that has been the case for many years now. that will probably continue. when the price is up, it brings sort of a huge amount of interest and excitement back into the space, because people are happy, they are making money. there is no surprise about that. i have seen a real uptick in sentiment, a lot of excitement, folks coming back into this space, building new products, continuing to innovate. a lot of that has been happening over what we would call crypto winter. but i would say that is taking on a new pace, and there's just a lot happier people, a lot more smiles around. emily: facebook hasn't given birth yet. hunter: it is a good time in crypto. we spend a lot of time with private advisors and institutions, and we have gotten phone calls in the last few weeks from people who have not returned an email in a year.

emily: what is the over/under on libra coming to fruition? hunter: we see it as being architected in 2020. lily: i think that something is going to launch. i think it is a question of scope and which countries they will be launching. emily: and will regulators come on side? will lawmakers understand? lily: i think some will, but the well-established frameworks around kyc aml will have to be in place. i think a lot of the same rules, regulations, experiences we have as consumers when it comes to benbow, thoser are absolutely going to be a part of libra as well. but i do give facebook credit for thinking about the problem of many people not really having access to financial services. that leaves an idea of making that accessible, which is

something that will happen. emily: lily liu and hunter horsley, thank you both. coming up, uber says it wants to be more than just a ridesharing service. one way it plans to do that, uber eats. the man who is running that business in asia. that's next. this is bloomberg. ♪

emily: the global food delivery business could be in for a major windfall. according to euromonitor, global spending on food deliveries may rise by double digits to $300 billion by 2022. that seems like good news for uber as it seems to solidify its uber eats business. the head of uber eats in the region spoke about what this means for their

service in japan, india, and beyond. >> overall, the delivery landscape in markets like india and japan is being pulled forward. we are seeing a huge exchange -- behavioral change with new customers coming online. it is still very early days in markets like japan, india. i think it is only like 7% of the addressable markets are actually doing online food delivery on a regular basis. huge opportunity for growth there. and for us, we are really focused on moving beyond food delivery and helping the broader food and beverage ecosystem. that is a really exciting chapter. >> in japan, uber has had to adapt its business model to fit in with regulations. india is famously protective when it comes to some of these industries. do you think you will have to work with regulators there to

make it work? raj: what we have seen with uber eats across asia-pacific, we work very closely with all stakeholders. we are very invested in working with restaurants, restaurant associations, the safety boards, and regulators. in all of our markets, we are operating very well, working in very collaborative relationships with regulators as well as with the restaurant partners. being a quality partner to the thousands of restaurants we work with is a corporate of -- a core part of what we do. how can you help think about marketing, expansion, integrating with architects tax to make it -- with our tech stacks to make it more seamless? across all sides, regulators,

restaurants, policymakers, it has been productive. >> how about grocery delivery? will that be part of your asia strategy going forward? that ist we are seeing really fascinating is, from a customer standpoint, there is a blending of just wanting food that is available seamlessly. some of that may be restaurant delivery. some of that may be grocery. some of that may be convenience stores and alcohol. we do have grocery stores on our platforms in asia-pacific across our markets. we do have convenience stores, alcohol. we are also launching services that get great traction like pick-up. you can order on uber eats and pick it up at your favorite restaurant. we are seeing an expansion across the spectrum, beyond delivery, and we expect to push further into that with asia-pacific. emily: raj beri, the head of uber eats in the asia-pacific region. coming up, cisco switches to buy

in and is spending billions to do so. an update on cisco's corporate makeover, next. this is bloomberg. ♪ we're the slowskys.

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emily: this is "bloomberg technology." i'm emily chang in san francisco. fresh off a bullish sales and profit forecast for the quarter, cisco is not standing still. cisco whose equipment makes up the backbone of the internet and corporate networks and announced it would buy acacia with a deal worth $2.6 billion. cisco pays $70 a share. that represents a 46% premium to the closing price on monday. that company makes products for cloud infrastructure operators and communication service providers. the deal is expected to close in the second half of fiscal 2020. to tell us more, we have liana baker in new york and ian king

who covers cisco for us. ian, what is the motivation behind this deal? ian: if you are cisco, you don't want to be selling the same box everyone else is. they are getting technology, optical technology to put in that box and hopefully differentiate what they are offering and make the likes of google and aws come back to them and say we need cisco technology. emily: talk to us about what this does for cisco competitively in a market where we are seeing somewhat of an uptick in m&a. liana: there has been a lot of tech consolidation in recent years, but cisco has not been the most active acquirer. this deal does not really move the needle for them. chuck robbins, the ceo, has been doing bolt-on acquisitions for cisco in many different areas. this has been about the core networking business, but cisco going to software with the deal

two years ago at over $4 billion. they are no stranger to deals but not massive ones. emily: ian, chuck robbins took over from someone who ran the company for two decades and he had a big challenge to make over the company. how well is he doing on that count? ian: he would say it is a work in progress. investors like it. first thing he did was restore growth which had not been the case for a long time. there were a lot of critics who said cisco is finished. cisco is a company, yesterday's networks. what he has done is a lot of small deals, a lot of additional things. recurring revenue for ciscos makes cisco more sticky, more of a partner than it was. a company that sold these huge, expensive boxes. now all kinds of things. he's arguing we made the company

for the cloud. emily: shares are up significantly since the first half of the year. liana, does it complicate cisco's supply chain or put cisco in a position where it is now to some extent competing with its own customers? liana: that was an interesting angle in ian's story. a lot of customers are competitors to cisco. cisco was a customer but now nokia, huawei are all customers of cisco. they have to decide how much they want cisco to know about their supply chain. cisco has done deals before where the companies they buy, they are a customer of. we will see how it plays out in these business relationships. emily: ian, talk to us about the priority that cisco is placing on hardware versus software. ian: it is interesting because they had added a lot of services, cloud software layers.

now we are seeing a push back to the fundamentals, hardware. i think this is chuck saying boxes still matter. we need to absolutely make sure these things are distinctive. they are something different than anyone else will offer and something people have to have. emily: we were talking about the ibm-red hat deal earlier. in the enterprise world, are we expecting more m&a this year, big m&a? liana: as we reported before, broadcom and symantec are on track to announce a deal worth over $22 billion that could includes debt that could come the week of july 16. that is one my sources are looking towards as the next the but there could be more in the works. conversations are definitely going on in the industry. emily: what is your take on this broadcom deal given the ceo's ambitions, but his goal to make this company bigger and bigger?

ian: he has a template. his template is a company that has a nice market share, but it is overrun. it has ambitions beyond its capability. run it for cash. symantec fits that move. emily: any deals you are watching out for? [laughter] ian: liana is the expert. emily: i will wait for both of you to keep us posted. ian king and liana baker. coming up, shooting for the stars. our conversation with richard branson and social capital ceo chamath palihapitiya on their plan to list the virgin galactic space business before it ever takes a trip into space. what it means for the space race, next. this is bloomberg. ♪

emily: houston, we have a listing. richard branson's virgin galactic will become the first ever space tourism venture to hit the public market. this after receiving an $800 million investment from the publicly traded firm social capital. branson and social capital founder chamath palihapitiya joined bloomberg earlier today. richard: when we couldn't go ahead with the saudis, i decided i would fund virgin galactic myself through the virgin group. then, i got a call from chamath who said he was keen to have a look. he went to see our space people. spent some months looking into it.

and, you carry on from there. chamath: i have been an admirer of the business from afar. we had a bunch of mutual friends that were early customers so i was always wondering what was under the hood. when i got to see the business, i was floored about what they built and the quality of business. it took us nine months but we got here. >> you were chairman of the board with a $900 million personal investment. richard, did you talk to other funds, did you look for other backers in asia or the middle east? richard: no. as i said, we did have the deal from the saudis. that was not possible. and, we were actually to take this public ourselves -- i think chamath's approach worked very well for us. >> was that the last roll of the dice for you? the fund would have had to return investment money in

september. richard talked about the fact this has been nine months in the gestation. you are coming in a bit fine? chamath: i don't think so. we met over 200 companies in many countries over the last two years. it did take us nine months to do the diligence required to get under the hood and understand, and to feel comfortable. could we have done it in another one? sure. could we have invested in something else? yes. but i think we found the absolute best company that will thrive in the public market. something that will capture an enormous amount of consumer interest. giving the average person a chance to own a bit of space and there is nothing more exciting than that. >> the average person will own a bit of space. when is the first flight going to be? let's try to nail that down. richard: now that we are a public company, i have to be certain in what i say.

we are moving the whole operation to new mexico. that is where the space port is. we are moving our rockets there. we are moving our motherships there. we will do a few final test flights from new mexico in the new situation. then, i will go up and then the public will go up. i will not give a specific date because i am told i am not allowed to. we have had two very successful flights into space recently. we have made five, the first five astronauts to be made in america since 2009. we're -- after 14 years of hard work getting this far, we feel we are on the verge of something very special. >> you specialize in suborbital flights. different from jeff bezos'

outfit and elon musk's, looking at other segments of space. 60 miles above the earth and three times the speed of sound, which you have now hit. you said you would go up in 2019. will you? richard: if our brave test pilots are ready to say to me they have tested the craft through and through, i will go up when they tell me to go up. whether it is by the end of this year or next year, we will see. have any customers have paid a quarter of a million dollars? richard: we closed out booking people five years ago because we had 600 customers. $80 million on deposit. since the test flight, we have had 2500 more people saying they want to come in. our research indicates there is a very large number of people. chamath: an incredibly capacity constrained market.

just servicing the customers we have will take two, two and a half years. once you convert these 2500 people, the first years of operation is already mostly spoken for. emily: richard branson, virgin group founder, and social capital ceo chamath palihapitiya. for more context, i want to bring in max chafkin who is here with us in san francisco. it is a little complicated how they actually pulled this off because a publicly-traded company associated with social capital, but virgin galactic essentially. max: that is exactly what happened. as we heard in the clip, social capital raised money from investors to acquire a private company and to get public. the pitch we heard from chamath was basically this would be a more efficient way to go public. when he started talk about this a couple years ago, it was the

ipo process is broken. it takes too long, too much regulatory oversight. i think it kind of makes sense for virgin galactic because virgin galactic, you are talking about extremely high potential. this could revolutionize air travel. this could be the new disney world. on the other hand, it is super speculative. it is the kind of thing that i think is hard to value and you can see what it might make sense to go public. emily: on the other hand, it could never happen or not happen for 100 years. how big of a milestone is this that is space company that has never taken a person into space will very soon be a public-traded company? max: when branson and his partners started talking about this 15 years ago and had this test flight in 2004, the idea that private space was going to be a big industry was kind of a joke. elon musk, i think was just at the beginning of spacex. it was very niche. having this happen, having a

privately held space company go up public is a big deal. we should also say virgin galactic has test pilots in space. it is not like they had no humans which is different from the jeff bezos and elon musk companies. it should be said the kind of space travel we are talking about is not like going to the moon. it is like going to space for a few minutes. you are going just to the edge of space, experiencing weightlessness and then coming down. it is in between a trip on the soyuz, which is currently the main option for private space travel and the idea where you take a 747 and they divebomb. emily: the tower of terror at disneyland. does this give virgin galactic an advantage over spacex or blue origin? more flexibility, visibility? max: i don't think so especially. spacex is a higher valuation. i think it is somewhere around

$30 billion. they've got billions and billions of dollars in government contracts. that company is well-positioned. blue origin has the pocketbook of one of the world's richest -- the world's richest man. those companies have nothing to worry about. branson obviously is a wonderful marketer. i think being public and having that additional outlet for his sort of doing his thing will probably help the company. emily: look, branson, bezos, musk, they all said they would personally go into space as well. branson had said he is going to space this year and he kind of waffled a little bit, might look into next year, but i don't know. is that going to be the test? max: branson has probably more credibility and that he has done all kinds of weird stunts in his career. you kind of believe at some point he will be the test pilot. although, i think one thing we have learned tracking these private space companies is timelines always flip.

virgin galactic has been talking about sending tourists into space as of 2009, 10 years ago. it's definitely a moving target. i would not hold your breath. emily: interesting development in the land of silicon valley venture capital with chamath's firm being associated with virgin galactic. chamath has always been a bit of an iconoclast. is this a trend? max: he has sort of been pivoting. social capital was supposed to be kind of that new standard bearer, the next kleiner perkins or next sequoia. the company has pivoted away from the traditional image of venture capital. talk about doing automated deals and doing these kind of special-purpose acquisitions. emily: a number of partners have left the firm. max: there have been internal problems. i think for social capital and for chamath, he's got to feel like this is a positive

development. yeah, it's virgin galactic and it is a risky one, but they have impressive technology. they sent test pilots into outer space before. emily: it will be fascinating to watch and we will be seeing if branson makes good on his promise for 2019. max chafkin, good to have you in town. still ahead, facebook is attempting to drastically increase minority representation in its workforce. how the social media company is tackling its big diversity problem, next. this is bloomberg. ♪

emily: a federal appeals court says president trump cannot block his critics on twitter. the decision upholds an earlier ruling where trump violated the first amendment where he blocked users who are critical of his policies. the three judges wrote, "the first amendment does not permit a public official who utilizes a social media account for all public purposes to exclude a person to open online dialogue because they expressed views with which the official disagrees." facebook has unveiled ambitious goals to improve workforce diversity. in its annual diversity report, they announced plans to double the number of female employees globally over the next five years and the number of black and hispanic employees in the u.s. facebook also says it wants half of its u.s. workforce to be from underrepresented groups by 2024. joining us to discuss is kurt wagner. it is no secret that facebook

struggles with a diversity problem. they release a diversity report every year but this is new. setting fairly ambitious goals. tell us more about it. kurt: this is the first year they have planted a flag of sorts and said this is where we want to be five years down the road. when you look at the goal around women, i believe it is currently 33% of their company is women. emily: 36.9%. kurt: thank you. i should know that by now. that is about 14,000 people. when you think about doubling that over five years, that is not an insignificant goal. they have routinely made between half a percent to a percentage increase in these categories year-over-year. to do that in five years is going to be interesting. emily: the number of women in technical roles is 22% and people often argue those are the roles are the most important. they have a huge impact on the product. and, that is harder to change.

kurt: it is. black and hispanic employees, only 5% of those technical roles. when i spoke to the company, they were saying it is a sad irony and that is where they spent the most time trying to diversify their workforce, within the technical space. they have at the most trouble doing that. there is not really one answer to why that might be. there is some frustration they have not been able to diversify that specific group. emily: we actually spoke to mark luckie, a former facebook employee, last year who came out last year saying facebook has a "black people problem" and it is not a problem that affects the people that work there but also the black users who use facebook. take a listen to what he told us. mark: they don't think of the black experience, which is a shame because black users are overperforming on the platform. so, it is a missed opportunity, missed financial opportunity for facebook to not engage with those users in a meaningful way.

emily: that is why this is important, not just because it is the right thing to do but because it matters for the business. kurt: and it matters -- one of the examples they gave was portal, a new video chat device. they had an employee of color who was working on it and she found out she was not being picked up by the camera as well as her white colleagues. it was a thing that only white people have been working on the camera, they may have not realized it does not work as well for people with darker skin tones. that is the example facebook likes to use, saying this actually impacts our products and makes them better for people use them. emily: how does facebook intend to do this quickly? kurt: it is not going to happen super quickly. as we have seen over the last six years that they have been unveiling this data, it is a slow-moving process. one thing they said that works really well in the interview process when they have a new position, there is a rule that they have to bring in underrepresented groups to interview for that position.

it is their version of the rooney rule, requiring minority candidates to be brought in for nfl head coaching positions. facebook says that works. by bringing more people through the door to interview with these jobs, shocker, we are now diversifying and hiring more of those people. if they knew the answer, we would not be talking about it right now. emily: facebook with the leadership of sheryl sandberg has tried to lead on these issues. she has been a leading voice in the world on these issues, but i have to point out this is good timing or is this good timing for an announcement like this? facebook is not looking so good. kurt: normally when we talk, what disaster did facebook have this week? here, it seems like they are trying to do the right thing. they are trying to build a workforce that reflects the people who use their product. i don't think it hurts that they view this as a positive announcement. they do this every year.

they announce these numbers every year. it is not like the first year they have ever done it, but it does not hurt we are giving them a bit of a compliment today. emily: we will hold them to it. kurt: check back in 2024. emily: kurt wagner, thank you. and, that does it for this edition of "bloomberg technology." we are always streaming on twitter. find us @technology. you can follow our global breaking news network, tictoc, on twitter. this is bloomberg. ♪ hey! i'm bill slowsky jr.,

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