>> from the heart innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology." with emily chang. ♪

emily: i'm emily chang in san francisco. this is "bloomberg technology." bitcoin soaring past $50,000 yet again, flirting with a prolonged rally. el salvador is poised to start excepting bitcoin as legal tender. we will take you to other countries like vietnam, india, and ukraine, where grassroots crypto adoption is gaining momentum. a major concession by apple to media companies like netflix and music companies like spotify. apple letting certain apps out of the 30% app store cut that has sparked controversy and stirred regulators around the world. will it be enough to end antitrust scrutiny? we will discuss. the future of audio. david sack launches a new platform that aims to take on clubhouse and wherever you get your media. he will join us live. first let's get a look at the markets. i want to bring in kriti gupta, who has been following the play-by-play. walk us through the day. kriti: we will start off with the positive risk on day. a lot of optimism ahead of tomorrow. and then things went south. a lot of that had to do with regtech. you had facebook and alphabet

shares in particular dealing with antitrust scrutiny headlines from last night. the doj coming out with new headlines targeting both companies. it started weighing onto the market. then you had apple and test last fall. let me show you what is happening in a broader timeframe. alphabet had actually been outperforming on the recovery the business ad revenue doing , well. let's get to the micro story. the three big earnings stories, all of them down after hours, despite broadcom delivering a pretty upbeat forecast. docusign had really good revenue estimates. and hp giving a lackluster forecast. spilling into the after hours, despite earning season. emily: thank you so much. we will check in with you. meantime, it is a concession of sorts for apple, the iphone maker saying it will relax app store rules for some developers. media apps like netflix will be able to link to external websites for payment by users. also affected by the change, video, audio, music, reader

apps, spanning magazines, newspapers, books. it doesn't, however, apply to the most lucrative class of mobile apps, games. the decision comes at a time of rising regulatory scrutiny and criticism of apple and alphabet's market dominance on mobile platforms. let's get to this and other big tech stories of the day. we are joined by david kirkpatrick and mark gurman and naomi nix in washington. mark, i want to start with you on this apple story. a pretty significant concession, i would say, from apple. talk about who this benefits and how, and where it may not go far enough. mark: like you said, this is massive. when this news broke last night, it was really significant. to me, it felt like the ball -game for antitrust scrutiny of apple was over. they are giving developers, particularly what i have said apple should do for months.

this is the same thing the judge in the appx versus apple trial said. they will allow developers for the first time to have a button in their application where you can click that button, and it will take you to their website to sign up for their service and pay for it. it will completely circumvent the 30% commission apple would normally take for applications like the kindle book reader, netflix, spotify. right? but like you said, it excludes games. personally, i don't really care that it excludes games. this is a massive shift for the app store. i'm surprised they ended up doing it. it takes such a long time. that is all you need to know about how controversial this move was internally. this is going to cost apple probably a couple billion dollars per year, but also avoid them a lot of headaches in the future. emily: it is great for companies like spotify, which have been complaining about this for years. but then you have the ceo of spotify today not totally happy, he said it is a step in the right direction, but does not

solve the problem. app developers want clear, fair rules applied to all apps. tim sweeney, the ceo of epic games, said apple should open up on the basis of each individual app on these merits. but he said, they are running literally a day-by-day recalculation of divide and conquer in hopes of getting away with most of their tying practices. david, do you think apple doesn't go far enough here? david: they don't go far enough. and clearly, markets expect they will go further. these comments pretty much presume that all apps will fall under this new regime, but at the moment, it is only media apps. interestingly, it was done in response to japanese regulators. the thing that is so interesting to me is once you become a global platform and you have countries all over the world scrutinizing you, especially when you are in some ways, the most powerful company in

history as apple is, people will not just take for granted that you can get away with whatever you want. i absolutely believe that all apps will get this freedom. but they don't have it yet. epic is still in court. they want it. they want a lot more. we will see what happens. emily: this is in response to a japanese regulator. apple facing regulatory scrutiny from u.s. regulators, regulators in south korea, and india. mark, what is next? we are still waiting for this big verdict in the apple-epic trial, but it will not be enough to end scrutiny around the world. mark: i have to tell you, if apple opens it up to games and all sorts of applications, that should be good enough. everything comes down to money in this world, as we know. what more do developers want? they don't have to pay the 30% fee if they link out to the website. there are developers who want alternative app stores, they want sideloading. it is never going to happen unless apple's hand is seriously

forced by government. the point about opening up to the 30% circumvention of other apps, it may happen. i'm looking for apple to loosen restrictions on cloud gaming services. especially because, here is a little tidbit, they had been thinking about turning apple arcade at some point in the future into a cloud service. spotify complaining today that apple sends advertisements through push notifications to users to sign up for apple music. either apple needs to stop doing that, or allow spotify and netflix to be able to do that, as well. they want an equal playing field. they will get that. they will not get sideloading of their own app stores. emily: i want to turn to twitter. twitter is adding more features to protect users' privacy, making it easier to use the app, get a more mainstream user on board. naomi, what exactly is twitter really doing here? naomi: so, twitter is making a real strategy shift in which they are experimenting with new social privacy features. some of those include the

ability to allow users to archive their tweets and that eventually makes them not visible after a certain amount of time, say, a month or a year. the ability to make invisible which tweets they liked or removed themselves from public conversations, or even remove followers. the idea came from internal research showing a lot of users did not really know what was public and what wasn't, and didn't exactly understand the platform. they will experiment with more privacy in hopes of getting the more mainstream user on board and increase engagement. emily: so david, obviously it is not good if twitter users don't know how to use twitter. do you think this will work? david? david: sorry, i had a dog barking in the background. they have a lot of changes they need to make in order to make twitter easier to use. i'm sure naomi would agree, twitter for ordinary people is still way too hard to use.

these are extremely positive steps to give you more control over your privacy, who sees your stuff, how long your tweets last. things that will make ordinary people more comfortable. i still think in terms of the interface and how you approach twitter in general, they have a lot of changes to make. but definitely, this is progress and they understand the problem. naomi: i think there is a risk for twitter, though, and whether these changes if they go forward into permanent way, will change the nature of the platform. given that twitter is a very public spacing, newsmaking place, if politicians, for instance, are allowed to archive their tweets after a year, how does it change the conversation about their record in the past and comparing then and now? so it will be interesting to see the results of this experiment.

david: it shows you the complexity of the decisions these companies have to make. nothing is easy at the scale of influence that twitter or apple or facebook has. emily: absolutely. all stories we will continue following. david kirkpatrick, naomi nix, mark gurman, thank you for joining us. meantime, shares in virgin galactic took a nosedive thursday or news the f.a.a. is grounding the operator while it investigates the july flight that carried billionaire richard to the edge of space. . it is looking into whether the craft, known as spaceship 2, deviated from its approved flightpath. the new yorker has reported the flight few outside of it designated airspace for one minute and 41 seconds due to high winds. virgin says the trajectory did change. however, the ship didn't travel about any populated areas, and was not a hazard to the public. helping companies navigate covid, and the future of hybrid work through software. we speak to the ceo of this

company next. this is bloomberg. ♪

emily: shares of servicenow are at a record high. their business has grown with the development of new workplace tools, in part, to help companies navigate the pandemic. joining me now is bill mcdermott, the ceo of servicenow. great to have you back. obviously, servicenow has managed to capitalize on these trends. not a lot of certainty about what lies ahead from hybrid work. some returning fully in person, some going remote. how are you navigating it? what are you expecting to see from most businesses? bill: thank you, emily. the most important thing is we

are in service to our customers. and they are in-service to providing a great employee experience for their workforce. that includes how you recruit them, how do you hire them, how do you onboard them properly, train them, just for them to really know what they are doing? especially since in most cases, employees aren't even reading their employers. it is all happening virtually. and then, how do you manage a frictionless environment for these employees to have a great experience? it has to be at a consumer grade level. we are doing that for companies and also governments all over the world. emily: doesn't the uncertainty, though, make it difficult for you when you are trying to figure out which products are going to grow the most in the future? bill: what we're seeing is a convergence of digital transformation on the servicenow

platform. this includes it, providing a great service that is highly secure to the business. it includes giving the employees a great experience. and obviously, managing customer relationships in a friction-less world. and this includes things like direct-to-consumer, for service that is completely remote and high quality. one of the biggest things, emily, is there will be 500 million new applications developed in the next couple of years. and there is not enough engineers to do all of that. so most of our customers are now turning to the now platform to build those low code applications to reinvent the business. the best part with servicenow is it is all on one architecture, one code base, and one common platform in the cloud. that is why the company is performing so well. emily: what are you expecting of your own employees? are you calling them to the office?

do you expect them at the office permanently at some point? enterprise software involves a lot of selling in person. have you restarted those practices? do you expect it to pick up into the long-term? bill: we're so proud of our employees, and the most important thing is really communication. i believe anything worth communicating is almost always under communicated, so we want to stay really close with our employees. we said january as a goal date to get folks back. we also know with the now platform and return to work safety applications, the importance of asking people if they are ready, mentally, physically, emotionally. are you vaccinated? so we have all the data in our system to understand where our employees are at. they're coming back to the 50 locations that are the biggest ones around the world, and, in

some cases, they will continue to work remotely until the new year. but the most important thing is we are leaning in on employee motivation and satisfaction. there is a talent war, and we want to make sure service now is the ideal place for people to work. emily: on that note, we have seen a huge migration in the tech industry outside the bay area. many tech employees are going to texas, where you have several offices. we are seeing a rightward shift in that state, a decision this week clear the way for potentially a de facto ban on abortion. what is your opinion on that? do you think it will affect your ability to recruit talent? bill: first of all, we are located as headquarters in silicon valley. we are located in santa clara, we founded the company in san diego. we are very focused on remaining a california-based company and believe strongly in the massive innovation possible in silicon valley. we have offices in a lot of different locations. there's a lot of different state

and local political scenarios that we understand are out there. but we make sure servicenow is a happy company and a place where people can work from anywhere and do it in a highly productive and successful way. so we are in good shape. we are not relocating to texas or anywhere else. we are a silicon valley-based company. emily: you say you want to the company to be a software juggernaut, 15 billion dollars in revenue, that it will get there. but investors want detail. how are you going to do that? bill: the most important thing is we stated that servicenow has already become the fastest growing organically innovated company in the cloud ever. we said by 2024, we would achieve the $10 billion revenue gate. and then i said, in the next five years, we will be a 15

billion-plus cloud company, because of our incredible engineering. the innovators that we have, the pride we have in engineering is second to none, and we will continue to invest in that and make our customers happy, because they really need the now platform. so, think of us as a platform company, think of us as an i.t. employee, customer, and creator. all of these businesses can be major corporations in their own right, at the beauty of servicenow is it is all on one common platform born on the cloud. emily: servicenow ceo bill mcdermott, good to have you back on the show. thank you for joining us. meantime, whatsapp has been fined more than a quarter billion dollars for failing to be turned aren't about how it handles personal information. the penalty was handed down by the data protection law.

it was after amazon was hit with a record 888 million dollar fine for violating the european block 's data regulations. the campaign to recall california governor gavin newsom is heating up, with the deadline for votes fast approaching. we will get an update after the break. find out which silicon valley's elites are using their influence in the election. this is bloomberg. ♪

emily: alibaba has become the latest tech giant to bankroll china's broad aim to share the wealth. they pledged $15.5 billion over five years toward the common prosperity vision. the money will be spread between 10 initiatives involving tech investment and support for small companies. and we are now less than two

weeks until voting ends in the california governor recall election. voters are deciding whether governor newsom should remain at the job, and if not, who should replace him. the latest poll suggests he will probably survive the vote. however, californians have a lot to weigh, including how he has handled the pandemic amid a spreading delta variant, and the wildfires that have forced the evacuation of south lake tahoe and closing the national forest. i am joined by our guest who is covering the election campaign for bloomberg news. tell me what the polls are saying right now. >> the governor got some really good news from the latest poll. a majority of likely voters, 58%, said they would not back his removal. just 39% said they wanted to remove him. and when it comes to job approval rating, he has been doing pretty well. about 53% approved of his job performance as governor. but the poll did show a huge

enthusiasm gap remains. republicans are galvanized for the selection. they think it is their best chance to get a republican governor. the state has not elected a republican as governor since that's before the advent of the 2006. iphone. according to the poll, 64% of republicans are more excited than usual to vote in this election. meanwhile, democrats, just 40% of democrats say they are pumped up, enthusiastic about this election. it shows the newsom campaign has a lot of work to do to rev up that democratic base. emily: we are looking at the top replacement candidates. there are also some major tech heavyweights for and against this recall. tell us who they are. >> the replacement candidates, larry elder is by far the voters' favorite. in the latest poll, about 26% of

likely voters said they favored him. kevin faulconer. the one time republican establishment favorite, he is trailing far behind, with 5%. and caitlyn jenner, she launched her campaign to a lot of fanfare, but the latest poll showed her at 1%. emily: we were looking at a slate of silicon valley folks who are supporting gavin newsom remaining in office. marissa mayer, eric schmidt, we reed hastings. we have also been following some top silicon valley folks who are for this recall. they want gavin newsom to be removed from office. walk us through what kind of sway they might have. >> it is significant that some tech titans want the governor removed. i mean, one of them is david dash. chamat property -- chamat

palihapitiya also wants newsom removed. he even floated the idea that he would be a replacement. larry ellison of oracle donated to caitlyn jenner. it shows tech is not a monolith. there are people who want him removed because they feel that the problems of california just intensified under his watch, according to their opinion, and they do not like the measures be put in place to control the pandemic. emily: alright, you can vote right now, a couple more weeks of voting. thank you so much for that update. coming up, i will be speaking with the ceo of chain analysis. his insight on the rapid adoption of cryptocurrency and what it means for the global economy. that is next. this is bloomberg. ♪

and there you have it— -woah. wireless on the most reliable network nationwide. wow! -big deal! ...we get unlimited for just $30 bucks. sweet, but mine has 5g included. relax people, my wireless is crushing it. that's because you all have xfinity mobile with your internet. it's wireless so good, it keeps one upping itself. switch to xfinity mobile and save hundreds on your wireless bill. plus, save up to $400 when you purchase a new samsung phone or upgrade your existing phone. learn more at your local xfinity store today. so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress, and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com.

emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. bitcoin broke above the $50,000 mark yet again. let's get all the crypto market moves with our kriti gupta. take it away. kriti: back above $50,000. on a day that other currencies were not doing well. gold and the dollar, assets bitcoin is thought of as a substitution for, down on the day. i want to compare bitcoin to ethereum. it wasn't so long ago that ethereum was leading bitcoin.

now you see a divergence. people choosing bitcoin over it. something to watch. another thing to watch here is the spillover into stocks in particular. cryptocurrencies bradley were higher, whether it was bitcoin, ethereum, or dogecoin. all looking the alternative payment methods. that did not spillover into other stocks. you can see it in the bitcoin specific companies. dealing with a lot of the exchanges and companies like paypal and tesla. or start to accept bitcoin in particular. watch the divergence between stock and asset class coming together, emily. emily: thank you so much for that roundup. part of what could be driving the bitcoin rally is the official launch of cryptocurrency as legal tender in el salvador next week. el salvador and will be the first in the world to use bitcoin as a medium of exchange. they will receive $30 of bitcoin automatically if they download the government's bitcoin wallet. looking beyond central america, global crypto adoption is

skyrocketing. chainalysis saw an 881% uptick in the last year. for more in the world of crypto, let's bring in the ceo, michael gronager. michael, thank you so much for joining us. how significant do you think this move by el salvador is? michael: el salvador is important. it is an example of a relatively small country, quite nimble, as many countries are in south america, and they are able to capture that a lot of their revenue in the country, a lot of their gdp is tired to remittances. bitcoin and other cryptocurrencies are really good for transfer of funds and remittances. i assume that already the adoption was already high in el salvador. moving into making it legal tender there is kind of the logical step. i think that has not been part of the movement of the price, we will come back to that later. emily: what do you think is

driving the price that? michael: so basically, bitcoin and ethereum, we have seen ethereum growing a lot of the past couple of weeks. a few months ago, we saw platform changes. the network got stabilized, so i think it facilitated more trust in ethereum as a whole. on top of that, we have seen the trend of de-fi that has been growing and growing, de-fi is decentralized finance, where you can exchange services directly on the blockchain. you can run building and other things directly on the blockchain. that has been pumping interest in ethereum. it is then dragging along the other cryptocurrencies with it. emily: when you look at some of the numbers out of el salvador, you have 65% of people saying they would not be open to being paid in cryptocurrency. and you have got to get merchants and people to accept it. and yet we are seeing adoption

in other countries, we saw that in vietnam, india, ukraine, pakistan. how do you expect this to shake out? michael: with everything that is new, a lot of the people in the country that you would ask this question would hardly know what bitcoin is, and it would be, like, i want my dollars, what i am used to, and so on. and then we will see they can download the wallet from the government and start to use it and they will realize it is simple, or simple than what they are used to. so it is normal resistance you see in other countries. so i am not super concerned about it. emily: what is next in your view? especially as we see looming regulation, we are waiting for more signals from the sec and in the u.s., for example, and you have got this tension between early adopters and excitement, and distrust from a lot of people. michael: i think one of the things that is important to know about cryptocurrencies, first of all, it is far more transparent than any other asset class that

we are used to look at. the perception about cryptocurrencies is that it is dark and anonymous and so on. it is actually the opposite. it is far more transparent. it is something regulators are starting to see and understand, and will utilize and actually see that benefit as a better medium of exchange, as a better investment platform. further on, we have seen a lot of financial innovation happening on crypto. i would say financial innovation is far bigger on the crypto side of the market than in traditional finance world. that will also drive a lot of adoption. of course, that will challenge a lot of conversations with the sec and others, but i look relatively positively on the future. emily: you are also cofounder of the exchange, kraken. jesse powell is on our show frequently. we love to ask where he thinks bitcoin is going.

listen to what he had to say most recently about just how far up the price can go. jesse: the moon is the base case for crypto. we are going to other dimensions with bitcoin. i think people need to hold on. we are still early days, still early in the cycle. i think we could see $100,000 plus a coin late this year, early next year. emily: do you think we can get past 100,000 dollars before the end of the year, and that other dimensions are? michael: i would say for most of the cryptocurrencies, like bitcoin, ethereum, the more stable ones, we do see that trend where they grew year-over-year. sometimes they grow faster than others, sometimes it is a bull market, sometimes a bear market. in a bear market, a lot of interesting things are being built, so that facilitates a new bull market. i think we can see above 100 k by the end of the year. i would be bullish on that as well.

long term, i would probably -- you can say the moon is the limit, we can go beyond that as well. so we can see higher prices for those assets. i would agree. emily: i love both of your metaphors. thank you so much. chainalysis ceo, michael gronager. appreciate you stopping by. ok, coming up clubhouse, take , note. there is a new social podcasting app in the house. veteran entrepreneur david sachs joins us to talk about his next big bet in an increasingly crowded market. this is bloomberg. ♪

emily: youtube has become the world's fastest growing paid music service.

the company announcing that it signed up more than 50 million paid subscribers. a major milestone for the video site that has been criticized by record labels and hollywood studios for giving away their worth for free. youtube now accounts for about 8% of the worlds subscribers, spotify in the top spot, with 32%. inspired by his frustrations producing episodes of his own podcast, david sacks is launching a new social audio app . the goal is to make it easy for anyone to launch their own show with the full software stack of transcribing, recording, editing, and social distribution. the big difference from clubhouse? creators can actually save their conversations for listeners to find later. i want to bring in david sacks, longtime silicon valley investor, what do you think had been wrong, or missing from clubhouse, twitter spaces, and other podcast platforms?

david: well, they are all ephemeral, emily. when you create a room on any of those platforms, it is not saved. it gets thrown out. that was really the starting point. we are creating a form of podcasting. when you go to callin, it is like a podcast in front of a live studio audience. you have the ability to take questions from an audience. you have a creator, show, they are in charge of the room, can bring people up to answer questions. and then, very importantly, after they record the episode, and every room is recorded by default, you can go into the post-production features, cut out anything you like, and publish it or share it, and it becomes part of the backlog. there is a library, it is podcasting, but a new social podcasting. and that is the reason why we don't actually think that space is that crowded. yeah, there are about five other companies doing the same thing, but they are not doing what we're doing social podcasting.

, emily: you are leaving in old-school radio futures, like a queue for audience participation. i am curious, are you putting podcast producers out of a job, or is it something the platform still cannot do? david: we are still doing a podcast with all in, the podcast i have been doing with friends. that inspired me to do this. i learned how difficult regular podcasting is. you know, we have a guy in the sound studio, an engineer who does six hours of postproduction every episode. we just automate all of that work. but our goal is not to win some small sliver of the existing podcasting market, our goal is to grow that market exponentially, 10x, 100x, by enabling anyone who has something to say to create show. now they can do it with their iphone. they don't need a sound studio or engineer, they can just get started using an app.

we bring podcasting to anyone who wants to create a show. emily: speaking of breakthroughs, creators are expecting a lot more from social platforms these days. are you going to pay individual show creators? how will you decide how much to pay them and when? >> we have -- business model yet. the obvious ideas our advertising and subscriptions. and so, the sort of tried and true playbook on this is firstly you amass an audience, and then introduce monetization. our plan would be to share with the creators. it would be more like a youtube philosophy than a facebook philosophy. monetizing or subscriptions, it would be a very healthy rupture with creators, as opposed to facebook, who keeps the revenue. emily: what do you think about clubhouse these days? i have heard people go so far as to say clubhouse is dead. would you agree? or dying? david: i just think they have a very different kind of vision.

i have heard about what the co-founder wants to do. the vision is very much around creating these life experiences. almost like a digital cocktail party. there is definitely a place in the world for those experiences, it is a new kind of social experience, almost like a digital party line or sentiment that. i think that's great there is nothing wrong with. that -- i think that's great. there is nothing wrong with that. we are trying to do something different, trying to create shows. when you go on callin, you are not just going into a room with a many to many conversation, you are going into a room where there is a specific creator who has a goal in mind, a concept or show in mind, and they are trained to produce episodes of that. so when you go with a different intent, there is a very different culture and expectation in the app. so really, we're just trying to create something different than clubhouse, not trying to do the same thing. emily: in the post-pandemic world, when at some point, people are going to go back to the office, they are not

necessarily going to be on lockdown, what is the future of audio and social audio as a piece of the media pie? how much bigger does that piece get? david: i think you get a lot bigger. i think audio could be even bigger than a youtube for the simple reason that it is so easy to create. video has gotten easier to create. the thing about video is that video can be very compelling if it is good, but it is not good, it is actually a worse experience. bad video is much worse than no video. the reality is, the microphone on the iphone, it has gotten so good. it is kind of like the camera, that you can create podcast-quality audio just using your phone. it is so easy, that i think we could see audio be the biggest user-generated content category. we are still just scratching the surface. the reason why people have not thought about it that way until

now is because doing a podcast is very hard. you have to have the postproduction facility to do it. so i think this could be a very, very big category of user-generated content. emily: all right. meantime speaking of the , pandemic, you are a big proponent of the recall of california governor gavin newsom. at one point, you were supporting your bestie, as you call him, chamat palihapitiya. he pulled out. why do you think he is so bad for california, and who do use of or to replace him? david: i was on here six months ago and we talked about this. i think we have an opportunity here with the recall to send a message to the political class that runs california. the reality is that california is pretty much a single-party state, run by an entrenched political elite. i don't think most people in california are super happy with the way it is going. we have seen crime is out of control, homelessness is out of control. school closures were the most

severe of covid -- most severe during covid of any state in the country. we had the most learning loss among our children, which affects disadvantaged kids the most. we have the most severe lockdowns in the country. lockdowns on businesses that gavin newsom himself did not obey his own rules. the hypocrisy of the french laundry thing. it was not the fact that he was eating at a five-star restaurant, the fact that he was breaking his own rules well others were suffering. -- while other businesses were suffering. i think these are the issues california's are up in arms about. at the end of the day, i don't know exactly what happens here. it was always going to be a long shot to recall a governor who won by 22 points just three years ago and has outraised all of his appointments by like $70 million. this was always going to be a long shot. i thought it was important to

address these issues and the need for california to send a message. emily: you support the recall, but who do you support to replace him? are you supporting a republican candidate? david: you know, i am yes on question one, and i am leaving it for people to decide for themselves and who they support on question two. newsom is really trying to scaremonger on this issue. no matter who the replacement governor is democrats will still , have majority in the legislature, the assembly. in fact, they will have a super majority. which means that even if the governor vetoed a piece of legislation, and that veto could be overridden by the legislature. so there is not much a replacement governor could do. the one thing they can do is keep schools open to avoid a repeat of the school closures we had over the past year. i think that would be healthy. that is about the only thing they could do. and that is why i think it is really important to use this

opportunity to send a message to the political elite by voting yes on question one. emily: i am sure that you will continue this debate on twitter and on callin. some would say that it is the teachers union that is making the decisions on the schools, not necessarily the governor. what do you think about these big tech companies mandating vaccine disclosures? do you think it is a good thing? does it take the power of a corporation too far? i have about one minute left. david: i think private companies should be able to impose those requirements on their employees. for private enterprise, one has to say, to come back to the office, you have to be vaccinated, that is their right as a private enterprise. i'm fine with it. back to the point at the beginning of the question. you said it was the teachers unions calling the shots on school closures, not gavin newsom. i would point out that the teachers unions are gavin newsom's biggest single donor. so yes, the education unions are

calling the shots, they are telling gavin what to do. the problem i have with him is he does not stand up to these special interests. that is what we need from a governor, someone who is willing to stand up to entrenched special interest. emily: we will continue following your debate on this topic on other platforms. david sacks of class venture, founder of callin, thank you so much. coming up, we hear from todd mckinnon after they reported better than expected results. that is next. meantime,, you might have waited 35 years to once again fulfill your need for speed. what you will have to wait longer. paramount pictures pushed back the release date of its long-awaited sequel to "top gun." the film was supposed to debut in november. it will now be released next may. the change is part of a broader reshuffling as hollywood continues to wrestle with weak theater attendance due to the delta variant. this is bloomberg.

♪

emily: shares of clout identity provider okta up after performing results better. our sonali basak spoke with the ceo todd mckinnon. ,todd: well security is a big , issue for every organization. not just the fact they want to secure things and lock them down deal with and avoid ransomware attacks and supply chain attacks, you hear these terms thrown out, but they want to do it while still making it easier for customers to do business with them, make it easier for employees to be productive at work. a combination of heightened importance and priority of security, but at the same time, they went to get their

businesses moving forward make , it easy, drive revenue, make employees more productive. it is balancing that combination that is the challenge. romaine: what is the general spending plan with a lot of these corporate clients? we know there was a big push during the pandemic where companies found employees working from remote locations and had to figure out how to keep everything operational and secure. once we come out of it, and hopefully people go back to their offices, what is the demand requirement in that environment? todd: what has been changed forever, you saw all through last year and this year, companies have adjusted to this new reality of people working from anywhere. not that every company is going to have everyone work from home forever, or any company will be only in-office, but every company needs flexibility. that genie is out of the bottle. employees want flexibility. they want the capability. and that comes possible. okta made that happen.

we help companies secure employees no matter where they are logging in from. whether home, a cafe, their phone. that has been at the investment level. it has been investment level. what returns to customers, they are thinking about how they can invest and build better applications and better digital products to connect with our customers. that really helps them drive revenue, adapt to competition if there is an upside in their industry and they want to get online before the upstart, they need a better website, better customer experience. that is what customers are working on. we are seeing that drive our results as well. sonali: todd, some of these industries have been looking at the cloud forever. the transition has been choppy, at best, in some of these industries. the financial industry, where it has not always been a clear-cut. what is the threat they should be most aware of into 2021 that you may come in to help with? todd: when i talked to chief

security officers and ceos of big companies, they want to talk about compliance, security, the bits and bytes of identity. but inevitably, the conversation turns into disruption. how these big companies cannot be disrupted by the digital upstarts. whether you are a big automobile manufacturer, you don't want to be disrupted by tesla. when they are in the financial services industry, you don't want to be disrupted by de-fi or crypto or the upstarts. how can you be the disruptor? how can you take the game to your competitors? that always comes down to having the best workforce, the best employees working on the problem with the best tools, and getting those products and services out to the customers in a secure way that is easy to use and cannot be compromised. about 35% of our business is connecting our customers to their customers, making sure their identity is solid, they know who is logging in, they are secure and easy to use. that is why we are seeing the

results we are seeing. emily: todd mckinnon there. that does it for this edition of "bloomberg technology." i am emily chang in san francisco. tomorrow, i'm joined by hpe's ceo, and docusign's dan springer. this is bloomberg. ♪

(announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases muscle activity. abs, back, obliques, hips, and glutes. get incredible results in just five to ten minutes a day. the aero trainer supports over 500 pounds, and inflates and deflates in seconds. check it out at aerotrainer.com. that's a-e-r-o trainer.com.

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation furnished by rare collectibles tv llc. breaking news. an exclusive new hoard of american liberty high relief gold coins was discovered at the west point mint and now is your opportunity to add these up your gold coins to your collection. in