carolyn: i am caroline hyde. visit bloomberg technology. the opposite rental company we work has been slashing his violation before its ipo gets cut in half. more on wife. .- why

this is pushing back any initial shares until 2022. forget facebook lite and what about facebook love? the company is working on a data service. sources are saying that we could as much as 20 million for we work. a lot is riding on the success today. one company could get hit even harder. i am pleased to be joined here. this helps create the hyperfine board. joanne has been covering the story for us.

let's get this all in context. julian has been keeping abreast of the numbers. why the lower evaluation? it could be as low as 20? round ipo's have been increasingly common. bit are projecting a little on we work. it is looking at the revenue and growth assumptions. >> to get perspective on ipo's and how much this is being factored and, kathleen, your perspective on this sale, was 40 million layout of the league -- league?of the >> most of the investors and

analysts are looking at the buy side from we companies. we knew that 47 was a ridiculous number. it did not make any sense. when that round was done by softbank, it did not make any sense. we are seeing the company react to that with the range. range maybe above -- if you group itidg -- iwg would be close to that. we look at we companies for the poster child 20 the disconnect -- for the disconnect between what companies are willing to pay for these companies. thatand lyft have shown this can be very painful for investors. that will spill over into we-w

ork. >> abby, from your perspective, people have been worrying about a particular ipo. intertwined are the chief executives? >> it is a great question. my point of view, they are actually closely related topics. if you think about the disclosures that came out over the last few weeks wendy ipo was filed. there was quite a bit of news that he created around everything from the lack of diversity on the board to pretty excessive amounts of control that adam is keeping. is it really a surprise that we are getting a lot of investor pushback? i have likened this change in the ipo strategy to investors speaking ahead of the offering.

that is not a surprise in this environment. caroline: was there anything in the perspective that caught your attention? was anything out of whack? that is not that surprising. nor is the lack of diversity on board. >> that is right. i think the diversity issue took everyone by surprise. most people would consider that pretty aggressive and cutting edge. to have no women and no diversity on this board, they have remedied it with having a woman post ipo. it feels like too little too late. the other thing that jumped out to me is the ceo succession plan or lack thereof. it is very clear and it stated in black and white that adam newman and family will control the ceo process all the way through. criticaln absolute

response. when the board has been stripped of that, it sends a lot of flags up for investors. caroline: would you think investors are basing the valuations on? it a techonsidering company or real estate right now? >> the company is trying to convince them of the revenue growth. it is tech company because of the revenue growth versus the real estate company. the metric we reported today was 28% revenue growth. adam newman give them certainties that they would be able to achieve that. if analysts by his story, they

will all be covering. kathleen, you have been tracking sales of these types of businesses. david said you should only care about the revenue growth or at least prioritize that. is this something that investors are getting their heads around? are they willing to take the if the of this tomorrow revenue will drive profitability at some point? >> i think it is the rare company that can get away with that. we studied companies and the size of their losses leading up to the ipo's, this is the second most money-losing ipo in history. lyft.ird one is these companies don't perform

well. this history is not a good one for investors. it is very difficult to understand how to value the company. it takes so long to figure out the business model. there are a few troubling trends and looking at the perspective. we are seeing some things like the contribution margin is weak. it has declined from what it has been historically. the average revenue is fairly flat. we like to see certain metrics that can show us this business can really scale to the point where we can get copied it in the profitability. we can't see that and we are having a hard time with unit economics, we will have to see a very low valuation. crowdeek, we will see flare. the public market is getting to be pretty price-sensitive about

these very high valuations in the private market and whether they translate at all to the public market. >> you would have thought it would have been a good time to be coming. talk about a different ipo and pushing back a little bit. there have been talks to raise funding from private investors out of the united states. this could delay the ipo until 2022 or 2023. maybe this is a good time to tap the markets. they have been talking to a range of overseas investors.

this helped to delay it for two or three years. softbank.tioned do you know what path of this in any other way? it is a very secretive business. >> it has the government work. a lot of people maybe familiar with it. this technology has played in aiding immigration, separate at the border. they have another side of the business that provides data mining and analytics. the big challenge is that it has

always been building for the long-term. it is 15 years old. that is more than two times the length that it normally takes for a company to go public. this company has had a very tightknit group of investors that have been extraordinarily patient in waiting for the big payoff. the challenge has been that they have not yet turned in annual profit. >> we have heard that one before. we will see how much longer they wait patiently. caroline: let's turn to another key story. the trump administration has unveiled a sweeping plan about the housing market. release -- from government control. coming up, why this company has gone free with its new speaker

despite competition from apple and amazon. if you like us, check us out on the radio. this is bloomberg. ♪

caroline: this smart speaker maker unveiled three new products. apple, as competitors amazon and google come under fire for listening to voice recordings. >> today marks a new era for sonos. sonos goes beyond the home. we have been known as the leading home audio solution. we take everything to the

backyard and to the beach with our new product. we are extremely excited to usher in this new era. >> why an outdoor speaker as the new product? -- foras a request as our customers. customers have been asking for an outdoor speaker and a portable speaker. it builds on a lot of our expertise around the home and it allows us to expand into these new spaces and learn a little bit more about bluetooth and battery life. it really builds on everything we have learned over the last 17 years. emily: why not headphones? >> there is opportunity long-term in all areas of audio outside the home. that is what moved signifies. that opportunity to go beyond the home. productsnouncing new for the home. this helps extend our

leaderships -- leadership in the home. also, the next generation of connect. those are actually strengthening and building on our momentum in the home. he think there is tons of opportunity outside of the home. the sonos one without a voice assistant goes against the trend. do you think that they don't want that capability? providewe want to do is freedom of choice. we think it is important to give customers the choice. we have heard from customers who are uncomfortable with microphones in their homes. as well we want to make sure we have an option for those that

are comfortable with microphones. that is what we are. with amazonartnered . >> we are very open to all of the voice assistants out there today. we would welcome that. we have not seen apple putting siri and other products yet that we are open to putting siri in it when apple is ready. emily: do you have any concerns about partnering with the big companies? patrick: we have partnered with the big tech companies were already decade now. ofiously we have seen a lot big tech companies jump into this space with competitive products and we have grown right through the new entrance entering our category. it is something that we have to navigate as we go through. i think if you look at both the timeframe of the 16 years of us

as a company and as a public company, we can navigate some tricky waters at times. this is being able to build a solution. that is something that sounds great and provides an easy experience and also provides customers choice. that is something the big tech companies offer. they can choose whatever streaming service or voiceovers that they want. emily: this is something that people have talked about for years. with apple struggling in the homes bigger space, the home pod is not what it would have wanted it to be. they want to be the best but they're not dominating the market. would you ever sell to a company like apple? patrick: i try to make sure that we are launching the best products possible for our customers. that is what i'm focused on. that is what we are doing with .ove and court -- port

we have had a your public doubts where we did exactly what we said we would from a model line perspective. we are feeling good as an independent public company that offers a lot of freedom of choice. emily: apple, amazon and google are all under fire for having humans listening to the conversation that customers are having with their voice assistant. how badly do you think these ped.anies overstep patrick: at the end of the day, every tech company has a responsibility to treat its customers information the right way. i think this has been an important lesson for companies. whether you are acquiring it through voice or an email form, i think the duty as a tech company is to make sure that you are using the date of the right

way and being transparent with customers about how you are using that data and who else might be accessing it. that is what we have tried to do in our privacy statement. do ank the industry can better job of that and we are trying to lead the way. caroline: coming up, fingerprint features on smartphones. apple could be playing catch-up with other smartphone makers in a big way. bloomberg is livestreaming on twitter. on our to follow up breaking news network on tictoc on twitter. this is bloomberg. ♪

caroline: the company by nokia brand has sold within 10 million handsets. now it is redone for the phone.l in -- flip

it costs less than $100. it secret weapon is still the videogame snake. developing in screen they are print technology. the feature could be available in next year's fun. apple has had a fingerprint scanning. this would allow you to scan fingerprints on a large portion of the display. discuss, why is it good to have it on the screen? it is good to have both types of biometric technologies. there are lots of prose to face eddie but there are times. some of the features are more useful during certain times of the day. such as if you just wake up and get out of bed, it is harder to

enable face eddie and have that work with touch idea -- touch idea. face id and have that work instead of touch id. caroline: are you insinuating that we are unrecognizable in the morning? mark: samsung has been doing to last doing this the several months. apple was the first to take fingerprint scanning mainstream with the 2013 loss of the iphone five s. it was extremely impressive. when apple was getting rid of isch id for face id, that surprising because touch id was

working so well. caroline: talking competition and a new generation, and android maker is also none other than samsung. we get the portable phone on sale. mark: yes, i don't have want to test this time around. samsung is launching a full redesign on the sixth. we are told it will launch around the 27th of this month in the u.s.. it is right on the back of the iphone launching. the benefit is hiding behind the iphone. if this thing is really working how it is supposed to work, they will also miss out on some of those marketing dollars because of all the eyes being on apple. caroline: there was an assessment of how it was not working as it should have been. big will this be?

is it more of a flagship kind of product? mark: i was shocked that that got 10 million sales. i know it is cheap. i think samsung could so quite a bit of those fold phones. >> we love a bit of vintage. it was great to get your expertise on the latest gadgets. caroline: coming up, getting tough on big tech. google, facebook and beyond. taking aim at silicon valley. we will discuss next. later, revving ai. ai.these -- grabbing how these asian powerhouses are looking to get ai everywhere. this is bloomberg. ♪

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. caroline: this is "bloomberg

technology." now to the regulation of big tech companies by the u.s. government. google agreed pay to settle claims the company violated children's privacy laws. people will go to the u.s. -- the bulk of that will go to the u.s. federal trade commission, but that ruling has not gone over smoothly with some u.s. lawmakers area a congressman from rhode island blasted the agreement in a series of tweets saying, just a few weeks after the ftc gave facebook a sweetheart deal, they are giving google the same family and friends treatment. he added that knows ingle single executive is being

held accountable and the settlement does nothing but add an incentive for google to break the law in the future. joining us, a partner who specializes in antitrust matters. great to have you with us, maureen. what do you make of the criticism first and foremost that the fine is not very much? >> the fine is only one part of the remedy in any of these cases -- the facebook case, the google case, and there are extensive provisions that require google to go above and beyond what the children's privacy act requires. now they are having to screen content and to go ahead and impose parental notification and consent provisions on that kind of content. i think that the fine is only

one part of the equation. you really have to look at the conduct obligations that are being imposed going ahead. caroline: the u.s. led the charge in the suspect. do you think other geographies might look into the child part of the equation, if there are any other laws being broken or not abided by in quite the way they would like in other parts of the world? >> it is certainly possible. each country might have a different approach to children's privacy. the way congress struck the balance of the children's online privacy protection act is to have parents make the decision if information about their children could be collected through online sites and services. in that way, what they are trying to balance is the incentive to create child directed content against the desire to make sure children are

being protected, and that is the way we have struck the balance in the u.s., through congress making big decisions. caroline: some lawmakers not always thrilled with policies enacted by the ftc, as we heard from svitolina. he mentioned the sweetheart deal for facebook. that sweetheart deal was a $5 billion fine, so a significant chunk of change, even though it pales in comparison of facebook's overall revenue. what do you make of that ruling when it comes to privacy and how it changes the mode of conduct and the way that business practices will on full for the business is going forward? >> the facebook order, the settlement is quite extensive, and it required facebook to create new types of oversight and monitoring and reporting, having obligations going up to the board level. it is quite extensive, and of

course, a $5 billion fine dwarfs any other privacy find that has been imposed really anywhere, so i would not call it a sweetheart deal. -- the $5 billion fine dwarfs any other privacy fine that has been imposed. i think it sends a strong message. caroline: do you think tech companies are getting the message that rather than having to respond to regulations, they can in some part get ahead of the curve and ensure that they are abiding by the letter of the law and the general meaning of the law before they are hounded by you, for example? >> i think you are right about that. i think they are paying even more attention to some of these issues. a lot of the companies have paid close attention to some of these issues, but i think it has really become a board level

issue in a lot of companies because there's not just the impact, you know, from an investigation and a fine, whatever the fine may be or what the obligations going forward are. there is also a reputational impact on these companies, so i think they care about that. i also think it highlights the fact that the privacy laws that we have in the u.s. -- the federal trade commission has done a good job with the law that has been given and congress did pass the children's online privacy protection act, but i think it is highlighting the desire to have maybe an additional federal privacy law that would give additional guidance to consumers and enforcers and industry itself. caroline: do you think we are coming upon a time when more laws will be written? can we get bipartisan approach to privacy, size of technology, how it affects competition? we are certainly seeing senate hearings going on, but do you think policy will be enacted? >> i think it's possible we could get a privacy law on a bipartisan basis. it would have to be on a

bipartisan basis to get one past -- passed, but i think there is a strong interest in congress in moving ahead on this. it is really coming from a lot of different areas of concern where i think industry wants more guidance. i think regulators want more tools. i think consumers are looking for better protections. of course, we have the impact of a looming california law going into effect at the turn of the year which may then effectively set a federal standard except or the fact that other states are looking at this, too, so we may be faced with the situation of conflicting laws that will actually make it harder to determine what is the right course moving ahead. caroline: it feels like the ftc and regulators are spoiling to

use their teeth, but do you think they have been behind the curve? i used to report in europe often about how the eu was leading the charge when it came to regulatory perspective over big tech. has the u.s. been behind the curve responding to public outcry? >> i would disagree with that. in europe, they certainly have put regulations in place, but the question is how much they enforce those regulations, whereas in the u.s., we have the federal trade commission act. it is a general act, but the ftc has used it fairly effectively. the ftc has brought more than 250 privacy security cases, so it has been active on the enforcement front. the ftc is looking for additional tools now. certainly the internet has grown, some of these issues have grown along with it. privacy concerns along with it, so i think, not to denigrate what has been done so far, while

at knowledge and that may be congress does need to step up, and congress has not passed a general privacy law, and consider if they could come to an agreement and enact a bipartisan general privacy law. caroline: going forward with general privacy being the one thing focused on, what about more broad -- have you thought of more broadly about how we will see -- about if we will see the competition aspect building up?

i know you are more about antitrust, but is there anything we could see particularly with a change of president, if we might see an impact on big tech? >> there is activity now at the department of justice and at the federal trade commission to specifically take a hard look at big tech. the agencies have looked before. when you look back, there are many cases that have been brought. it's not that antitrust has never looked at tech issues before. they certainly have. i think that the question, though, is we have our antitrust laws. they have been enforced by the court, and we have a consumer welfare standard in the u.s. the question is -- are these companies in gauging in behavior that is anti-competitive and that ultimately makes consumers were soft? not competitors worse off but consumers worse off. i think it is pretty clear that is the standard they are going to hold any government enforcement action too. i think it is important to

always see, can we improve our tools? are there any competitive behaviors we are missing after the ultimate goal of antitrust law is to ask if consumers are being well served. i think courts, unless congress changes the law, will continue to hold to that standard. caroline: great to get your expertise and your experience. let's switch gears to southeast asia because a tech startup is looking to invest $150 million in ai over the next year as it seeks to expand business beyond food delivery and ride-hailing. grabbed is working with microsoft to explore mobile, facial, and image recognition. speaking exclusively of bloomberg's sooner than you think conference, the cofounder explained where that money is coming from. >> i think it is a two-way thing we're thinking about. when we're thinking about

further investment in ai, we're thinking about moving from ai power to ai everywhere. ai is very important technology that we want not just technologists to think of globally and be empowered and skill to use, but we also want strategists to know enough about ai so they can understand how it can be more smartly used to solve different customer problems. it is further investing into further technologies that are extremely relevant to the kinds of problems we are trying to solve. for example, mlp for translations for the many different dialects, probably 50 different languages and dialects, and beyond that, as i mentioned, personalization, market-based optimization, and also mapping ngo. >> you have talked about getting

inspiration from china for ai. what exactly do you mean? >> i think there are some things we could get inspiration from all the global players in the world. what is most important for us is using technology for solving specific problems. we do not build ai for the sake of ai. i think of what china, the u.s., europe, and different companies across the world have been able to do. they built great platforms that are very localized to the problem they are trying to solve. we have a partnership with microsoft right now that is focused on ai. they have actually helped us a lot on teen of different fronts. one is facial recognition for

safety, improving verification for drivers and passengers. secondly, also on mlp because the localized languages in southeast asia are underserved by existing global translation platforms. targeting local segments of technology specific to microsoft at this time. caroline: coming up, we will break down what the tech sector is expecting tomorrow. that's next. this is bloomberg. ♪ caroline: on friday, we will

get yet another health check on the u.s. economy with the latest workforce numbers. expectations say 160,000 new jobs will be added with the unemployment rate staying stable, but we want to know just

what this means for workers involved in software and beyond. to answer that, let's head to chicago where the president of the north american region for manpower boost joins us for our work shifting segment. great to have you here. 160,000, 3.7%. all looks pretty healthy. dig into the technology sector. how much are they contributing to net gains? >> yes, we are seeing demand for i.t. jobs, tech skills continue to grow across the nation, outpacing supply. interestingly -- you know, traditionally, we talk about the west and east coast. we are seeing that hit the middle of america in cities like dallas, boise, chicago. i am really seeing demand outpaced supply across the country. we anticipate another month of strong gains in the technology sector. caroline: if demand is outstripping supply, where is that supply coming from? is it about having to upscale -- upskill within your own business?

>> the defining problem in the tech space is upskilling our workers. skills are changing at the pace of tech, so partnering with companies to make sure we are creating the workforce we need is critical for the tech base. our real-time view on tech is we have more than 500,000 jobs today. 50% or so our software engineers, another quarter i.t. project managers. we have jobs open, but with a 1% unemployment rate in tech, it's going to be about upskilling and bringing new workers into the space. caroline: challenger had run

some interesting data binding jobs lost because of trade or trade uncertainties. they say 10,000 job cuts have been made in technology companies largely because of trade difficulties, and that is 10,000 in just august alone. is this something you are hearing, and if so, where from in terms of the tech space? >> our real-time view on the market is not that. we continue to see demand coming in for jobs and we have companies willing to hire. jobs for people 90 are still i.t. are still abundant, and again, there is 1% unemployment, so we have a lot of room in the economy to bring people into this space, so we are not seeing the impact from trade. back in march, april, we saw a little pause. i would call it observation. we saw it pick up about six month later and it has not slowed down since. her line: how long do you think this remains the same? are there any brewing's of slowdown, or do you think this unemployment will remain the

same? >> we know recession will come. the question is when. we are not seeing a slowdown today. if anything, we are seeing employers start to move from talk to action around this concept of upskilling without about. we are partnering with microsoft around gaming jobs, helping upskill people to be software testers and really contribute when they did not have the skill to begin with. caroline: interesting. great to get your expertise. thank you for joining us. still ahead, more than just friends. they spoke is breeding -- bringing its dating service to the u.s. -- facebook is bringing its dating service to the u.s., but will it catch on with players like match already on the scene? this is bloomberg. ♪ caroline: facebook is getting

into the data game. the social giant officially launched its matchmaking service in the u.s. over a year after it

was first announced. the feature has been tested in 19 companies so far and allows users to combine elements of their facebook and instagram accounts. the product also offers a "secret crush" feature. match shares fell sharply on the announcement amid concerns of competition. joining us to discuss is kurt wagner. does tinder have much to fear? kurt: i think so, if only because facebook has millions of users around the world. the one thing facebook has that many of these others don't is the built-in network. the company will not necessarily match people with their friends, because that is weird on the

dating front, but they know who friends of friends are. i think those are valuable connections for the company to know when you're dealing with a romantic dating app. caroline: talk to me about how this works. my parents are not exactly on instagram, but i know some people's family are, and the weirdness factor of how separate is the dating profile from the rest of what you are up to? kurt: the dating profile is supposed to be completely separate. the profile itself is different than what you would have for your normal facebook profile. the idea is you could carve out this little world that is dating specific that does not touch on the rest of your facebook experience. what is interesting is that that profile can pull elements of your instagram profile as well. you can have pictures from instagram. eventually, you will be able to

have your instagram story there as well. it is kind of a blending of your facebook life and instagram life in this new separate dating profile and that is what they are trying to create. caroline: why has it taken so long to come to the u.s. when they have been playing added in 19 countries already? kurt: i imagine the u.s. is probably the most critical market for them from a pr or business standpoint. not only is it the market where you will have those stories of experience, but also there is an element of business. if facebook is to turn this into a moneymaking endeavor, the united states has been their biggest market for advertising and i assume that is ultimately how they will try to make money from this some time down the road. i think they wanted to have some kind of proof of concept that it works in other markets before they brought it to what i would consider the most important one. caroline: every single facebook reporter is rolling their eyes as a redditor asks to go and check it out. kurt: i think this will be limited from a use case

regardless of the privacy element, but when you look at the kind of stuff facebook has done over the last year, you know with portal, there in home chat device, they are rolling out dating, it does not seem like they are slowing down when it comes to privacy related things. they are pushing into areas that are very intimate, being relationships or in the home. i do think consumers in the u.s. care more about privacy and think about facebook differently on privacy than other parts of the world, so i think it will be part of the pr and the conversation, but clearly, facebook does not seem so concerned a are willing to pull back on launching new stuff altogether that might be considered fringe. caroline: elegantly put across the board. we thank you. finally this hour, you could

call it a match made in heaven. we are so pleased to announce that bloomberg technology anchor emily chang has a new addition to her family. madeline was born wednesday night. both mom and baby are doing really well and the entire "bloomberg technology" team sends our support and love to emily and her family as they begin this new chapter. taylor riggs will be hosting the show from san francisco starting next week and it will be a busy week at that. we will be covering apple's big iphone in a tuesday and throughout the week we will be bringing you our medical technology series called "wired ." be sure to follow our global news network at tictoc on twitter. from new york, from san francisco, this is bloomberg. ♪ ♪

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