>> from the heart of where innovation, money and power collide. in silicon valley and beyond, this is boomer technology with emily chang. this is blumer technology and coming up, elon musk is the biggest shareholder in twitter. why does he wanted and what change will he push for? now that shares have shot up 27%, could he just sell?

we have this coming from -- covered from all angles and we will hear directly from todd mckinnon in his first interview since that massive third-party bridge from that hacker group. what really happened and how they are addressing customer concerns. we will have all the details in an exclusive interview. and what trends should you watch more that greater adoption is underway? we will speak with the top executive about the greatest global report. not to the big story of the day. elon musk and twitter. he says he owns a 9.2% stake in twitter worth somewhere around $3.7 billion now. making him the company's largest shareholder. the question is how he will use this new power. let's bring in ed ludlow.

how active will he be? quite the devil is in the. you are only eligible to do this if you have no intention of changing or trying to control the operations of the issuing company. you are a passive investor. and look at the board. at 27% gain on twitter. various asset classes not moving strongly in either direction but that gain is having an effect. come with me to my bloomberg terminal. this is the biggest jump in twitter stock since november of 2013. i know you were there in 2013. you witnessed the masses -- the

massive surge in twitter. this is a stock that was underperforming year to date. but things have lost momentum in 2013. emily: i was on the floor of the new york stock exchange when twitter went public. i will stick with twitter. joining as is the general partner of moxie ventures and an early twitter employee. why did eon -- elon by this take? quincy hinted at why he thinks twitter is not doing well on free speech. news to elon, twitter does not

have a free-speech commitment under the first amendment. just a private company but i do think with this influence and power, even if it is a passive state, he could exert some behind-the-scenes influence over twitter. we don't know what he will do but it could have something to do with their moderation efforts. >> you worked at twitter for almost six years until 2016 and you tweeted today, maybe do this to one of the largest greenhouse gas emitters and accelerate their path toward clean energies? why is he knows the pot as well. he knows twitter is the place for the well conversation but i think it is really difficult.

elon has been very vocal about making twitter and unfettered free speech platform. but it is not absolute and it is really hard on social media. we see the consequences when there is no accountability. it is complicated. if it becomes another distraction for the twitter team but i have full confidence in them because they are used to all kinds of distraction. it is basically what we would call monday. despite all of this activity, president trump on the platform, so many ups and downs. what do you make of the strategy that the current team is taking without jack dorsey there, under new leadership? >> i am a big fan.

i think jack retired extremely well. they are excellent at what they do. they are thoughtful and ethical. he is well prepared. he has been at twitter for a long time. he is technical, he has led the engineering team. >> elon musk, the way that he disclosed this indicates that he is not intending to be very active or join the board. maybe he just wants an expensive edit button but how active do we expect him to be? >> the most interesting thing will be any criticism he makes of twitter now, anything he says on twitter about the company might move the stock. we could be in for a few very

volatile months ahead. there is also the question of whether twitter will feel they can moderate elon musk. that is the question i have. i think that it is worth keeping in mind what katie just said. this is a company that has been through a lot of drama. the reason is because jack dorsey was looking into a succession plan under the activist activity by elliott management. this is a company without founder voting control. unlike facebook, unlike google. this is a company that is very vulnerable to takeovers, speculation, activist investors. all of that. i think elon musk, whatever he

plans to do or even hints he might do, we know how much people follow what he says on twitter. now we can move twitter stock every time. >> what is your take on his potential opinion that may be a new platform is needed? you are placing bets on what could be or what you believe will be the next big thing. do you think there is room for opportunity for this? >> i don't think the world needs another centralized social media platforms. i think we have more urgent needs, innovation and health care. i think there is a lot of room for improvement to make for the -- to make sure that the platforms we connect on our safer and healthier. we have to make sure that we are reducing a lot of the toxicity and hatred. >> jack dorsey and elon musk have had some interaction on twitter when elon posted the

question about whether the twitter algorithm should be open source. a few years ago he says he likes have -- how elon musk views twitter. i respect all the ups and downs that come with it. and yet we have not heard from jack yet today. what do you make of that? >> it is almost asking if elon went out of his way to -- it seems like they have a friendly relationship. it is unclear what happens here. it is clear there are a lot of liability issues. there is some public discussion.

i think everyone is trying to be very careful about what they will say if anything. the other day, he tweeted that he regretted what he built, he regretted being a part of contributing to this ecosystem. there is some soul-searching that jack dorsey has done. maybe elon musk has been a part of that or listening as he tweets about it. >> what do you make of that? what do you think jack is thinking? >> i have no idea what he is thinking. i am a big fan of his. i am sure he is very thoughtful and thinking through what the future holds and what this new development may or may not

impact of the product and the team but i have no idea what he is thinking. >> we all want to know. thank you along with bloomberg's sarah friar. coming out, the third-party breach. we will be joined by the co-founder in an exclusive interview. the first since the bridge was disclosed. what happened and what did they learn? this is bloomberg. ♪

>> a security breach at one of the third parties. the breach happened in january but they did not disclose it until about two months later and

after the hacker group claimed responsibility for the attack and posted screenshots of customer accounts on telegram. they say that he has spoken to hundreds of customers about what happened and joins us here in an exclusive interview. i know you have been investigating the incident. what can you tell us now about what happened and how much damage has been done? >> you know that it has been trusted for this. any time something like this happens, it is a big deal. we will talk about details and what happened but we are responsible. third party and third party that, it is our responsibility to make sure that it does not happen. the big take away is we will

learn from our mistakes and we will make sure we did not -- make sure this never happens again. >> there is this third party call center. there are about 40 people that work on behalf of us to provide low level support to our customers. the hackers broke into this site. they used some vulnerabilities. while they were in, they were able to take screenshots of what they were doing on those computers. >>, customers were compromised? >> we are trying to be as transparent and as conservative in our impact as possible. we looked at every possible customer that had any kind of

part on this. everyone is very concerned about this and they should be. there is a critical infrastructure for 15,000 companies. everyone is assuming the worst but the actual technical impact is near zero. but it is incumbent upon us -- what they need to do as a response to this. it is actually near zero. >> 366 companies, how many were compromised? because of the nature of how our system works and our product, it worked well in this case. the way that they limit what a support agent can really do on these systems. the impact is near zero. >> how many do you believe were

impacted? >> it is not clear. the hacker was looking over the support agent's soldiers. so we have shared detailed click by click support logs so that we can work in conjunction with them to verify that the impact was zero. this won't be closed until we get everyone to agree with our point. >> why did you wait two months to share this with the public? >> i have talked to hundreds of customers and this comes up over and over and it is an example and we are accountable for it. when i tell people the facts, they start to get a better understanding. while we knew something happened in this time in january, what we knew was that an account

takeover attempt actually failed and we detected it and it was not clear the impact. we did not know the extent. the first time that we knew about the severity of it and what the hackers actually got was on march 22 when they publicly leaked information. >> your initial statement says that octet itself was not breached. how do you regain the trust of the enterprise community after this and for prospective customers who are saying why should we use dr.? -- o -- octa. >> the communication was not as clear as it should have been. we are trying to communicate more openly, more consistently

and ultimately more clearly. when customers in conversations like this understand the facts and what we knew when and as we share how we will do better in the future to make sure the customer support is in place to make sure that the communication is more timely and to make sure the communication is clear, that is what we are committed to doing better next time. >> have you lost customers as a result of this? >> our result has been on talking to customers and prospects. what is clear is a lot of the same questions,. that is why i am so grateful that you are allowing me to talk about this today. we have concrete plans to remediate this and make sure this does not happen again.

they are in a much better place at the end of the conversation. >> bloomberg has reported that the alleged mastermind is a 16 vote who lives in england. what do you think of the fact that this teenager may have pulled this off? >> it is interesting but it does not really matter. we have to protect adults from everyone. it is incumbent on us to make sure this never happens again and that is including and learning from all of the mistakes made. one of the biggest weaknesses is people are afraid to share what happened. if you look at this time after time again, even this subcontractor, they were afraid of being sued and of reputational damage. this hinders our response as a

community over and over again. we are trying to lead the way and be a leader. if you look back at the facts we disclosed, they are all consistent. we have not had to change anything. we are proud of this transparency. crimes are you worried about or bracing for bracing for regulatory scrutiny? >> i am confident and proud of how we behaved in light of those facts. i know the sec is working on things. the federal government is working on things. we think the best thing is more openness and more transparency. >> this is an ongoing investigation. i think they are doing a good job in this case. >> what will you be doing differently going forward?

>> we are committed to not only taking those learnings and putting things in place to make sure that these problems never happen again but we are going to publish this report to our customers and they can collaborate and have a part of this. ironically, the problem with this is while they used octa, they did not use it to protect their own front door as a company. it was a competitor product and the competitor product was at fault for this breach. we will make sure that these companies use dr. to make sure the technical controls are up to snuff that we should require. >> this is cite out. do you no longer work with them? >> >> we don't. >> the biden administration has

warned of cyber attacks. my understand is this did not have anything to do with that. but how would you describe the environment in cyberspace? is there chaos or a greater risk of any kind of cyberattack happening? >> a couple of things. all of our information shows or indicates this was not belated but we are very diligent and we are checking every possible scenario. everyone knows the power of technology is so great and with that power comes risk. everyone has a general heightened awareness and in addition to that, what is happening geopolitically has everyone on edge. that explains what people were so concerned and some are so stressed. what has ultimately turned into something that is very minor and technical.

>> thank you for explain what happened. we appreciate it. >> apple employees are pushing back on returning to the office two years -- after two years at home. this is bloomberg. ♪

>> a few other stories we continue to watch, workers at apple are pushing back on a return to the office after two years working from home. the company relatively impossible. workers are required to be back in the office.

this is tom brady. we will be back with more of lumbar technology and elon musk's big stake in twitter after the break. this is bloomberg. ♪

>> welcome back to bloomberg technology. let's get back to the story of the day. a surge in twitter shares after elon musk closed at two point 9% stake and boosted some of its social media rivals as well. ed ludlow is back. quite interesting, you did see the meta-company of facebook come out and made gains. caught up in optimism and interest in social media stocks. that surge in twitter raises the

question, is this a positive move? elon musk taking a 9.2% stake in twitter? we heard from kathy wood. she actually showed twitter shares. this is what she had to say. >> this could be setting up for another leadership change in twitter but i am not jumping to this conclusion automatically. i am saying it is one of many possibilities. it could be changing the policy of the company to open source. be it censorship or calling people out on censorship or a management change. i don't know what will happen. >> kathy is saying she is not sure what will happen but this could be a shot for the twitter ceo. it could be a warning from elon

musk. she talked a little bit about the landscape of social media stocks. they have not been great this year. just a quick point. that jump in twitter shares we saw actually took twitter pretty positive into positive territory where you have the likes of facebook down more than 30% and snap down more than 10% year to date. did this put more attention on the space? >> during the falcon nine launch, the edge ai enable satellite was deployed. a milestone that could significantly speed up the delivery of data sent back to earth. joining me now is the coo. sean, great to have you back with us. what is satellite doing right now?

>> thank you for having me back. we are so excited to have this satellite. this allows us to move the ai model. you think about the pictures you can get from space, these are massive files. it takes so long to get those things down. it introduces tremendous latency in terms of how long it takes you to leverage insight. by moving ai, you can do that in seconds or you can get the information down to earth in this than a minute. that is a fundamental game changer. >> can you share some examples of what will improve because you have this capability? >> when we moved -- the commercial space has exploded. we are drowning in collection. when you think about it from a military commander perspective,

they are not interested in saying when can i get the next picture over this, they want to know how many director launchers are there? how often can i revisit that? with this capability, you can never reduce all of this to provide real-time insights. real insight into what is happening in the world. >> the war on ukraine has sparked backlash against russia's continued dominance. you have a lot of companies looking for partners as a result. has pelletier seen any new -- any new business because of that? quickly mobilized this. in many ways, we believe this situation was foreseeable. we talked quite publicly about how we would work with the government and russian companies

given the overall context. now, the software is being used to power refugee operations. i talked before about how the supply chain is a software problem. our software is helping match all of the goods coming in, the feds available. everything is coming from the end of the donors to the hands of the refugees and those who need it. given the incredible scale, millions of refugees that need help in this. we are helping commercial companies with their supply chain. there are a lot of automotive parts that would help production plans. changing those production plans. they are responding to the supply chain shocks. we have been helping with the military response. not just in the u.s.. >> are -- >> how are you helping

them? quite a lot of that is coming from space. a lot of those are coming from different information sources. a lot is happening on social media right now. it is helping to drive coordination around the logistics. a lot of that plays into refugee operations. where do we need to provide housing for? >> you have talked about supply chain trends. i am curious given your unique view, how is the supply chain crisis at this moment? is it using? >> into many parts of the world, we are short on food. >> i wish i could say it was easing.

i think it is getting worse. we had inflationary pressure from covid. inflationary pressure from ukraine. we have inflationary pressure as it relates to energy. we are seeing that company that has a granular transaction level enterprise profitability data asset. those are the ones that will thrive. this is a better way to find substitutes and be more competitive and offer the lowest price. and those that don't are really struggling to understand what this means for their own profitability and how they should be reacting. the greater challenges lie ahead of us. >> what you think will happen with the markets? pelletier shares have taken a nosedive since the first part of the year. since the war started, pelletier is trending upwards. >> we had a very strong 2021.

this has to do with free cash flow. we are excited to see that strong revenue growth on a cash generation basis. the u.s. commercial business doubled for the second year in a row. we came out of our q3 earnings call thinking we are so excited about the business. it is clear from the feedback that investors are mixed. we went into the end of the q4 call, it allowed investors to see what we were seeing. i think the market is reacting to that. emily: always good to have you on the show. thank you. coming up, 2021, it was crypto's breakout year. we will talk about the new report on global crypto trends

and what is to come in 2022. this is bloomberg. ♪

emily: time for crypto report. crypto markets looking like they are rallying. these are the biggest gators in the crypto universe. a sign of the broadening rally in digital tokens while bitcoin had little changed and still trading within a tight range. i want to talk about this and much more with the chief operating officer of the crypto platform, gemini.

great to have you with us. what is your take on what is happening in crypto markets given all of the buzz and the activity we have seen around crypto? >> great to be back on the show. thank you for having me on to discuss the global report and all things crypto. there has been so much buzz about crypto over the past year. we were really excited to dig into the action data. our survey looked at 30,000 respondents. first, increased adoption globally. 2021 was a big year. about half of the people bought their first crypto in 2021. second and interestingly we saw that in addition to increased

ownership we saw orville broadening of the base on crypto investors with more women and diverse investors coming into the space. finally, consumers worldwide continue to seek out more education and regulatory problems concerning digital assets. >> it looks like they had some big uptick. where are you seeing the most adoption right now? >> we are seeing the most interest in developing countries where there is historical currency and instability. our theory is that where your currency is stable, crypto may be something to help diversify your portfolio. we seek currencies that have been devalued, we found that people are five times more likely to buy crypto.

i talked to my traders about that. we do think that we are poised for continued growth and a number of things are driving it. we have inflationary pressures here in the u.s. and then also, the were in ukraine has demonstrated some interest in ensuring the countries are looking at their currencies and making sure they are not as dependent on world events and we have seen crypto as a mechanism of using friction for cross-border payments. we will see if that increases

price movement here. >> what headwinds are you bracing for? is it regulation? question regulation and education continues to be the headwind. despite the fact that the crypto markets continue to have tremendous investments, we saw more than 10.5 billion in investment in this space in the fourth quarter of 2020 alone, we still have regulatory uncertainty and a lack of clarity. this is not just in the u.s., it is worldwide. we have the sense that government regulators know they have to do something. often they don't know what to do so they will make statements that are not always helpful. what the markets want is certainty. we are more than happy to work with this. we will get some clarity. >> good to have you back. coming, more on elon musk's big

twitter state. what does he plan to do with it? that is next, this is bloomberg. ♪

>> let's get back to the story of the day. shares of twitter soaring after elon musk announced he has taken a 9.2% stake in the company. as an activist investor yourself, what you make of this?

>> it is hard to say. i think the critique is that social media companies need to be better managed. that is something we have been saying for years. they need better governance. it is so interesting. i don't see elon musk as a golden child of governance. even if you just look at tesla where he inhabited the role of sia and chairman. originally. that was bad governance. tesla has struggled with allegations of racial discrimination. they can look to improve the diversity of their board. musk has gotten in trouble on twitter before with the securities and exchange commission. for saying that funding was secured to take tesla public when it wasn't. was that free speech or a regulatory violation? that is part of the sec

settlement. he actually had to step down as chair of tesla's board. we don't think he should have been in both roles anyway. we have seen the same with mark zuckerberg. another social media mogul who struggled to learn that lesson that unchecked power is detrimental to facebook or metta. i think that musk has the ego and the capital. in the best way possible. to launch a new social media company to try to reform twitter but i don't think he has the expertise. >> you brought up the funding secured tweet. he can tweet about does and bitcoin and then sell a bunch of it tomorrow. he can sell this twitter stake

and he would have made a lot of money in a single day. is there something wrong with that? >> based on this week, it appears that -- is he upholding free speech? this is about playing games like that. it is about racism, sexism, abuse along those lines. violence, think about the mass killings in el paso.

all of those issues need to be dealt with. i think musk might be simplifying things in a way that just is not possible. >> the capital still has a small stake in twitter. smaller than it once was, why is that? >> take a look at the stock. >> elon musk is a brilliant engineer.

i don't see anything in his background that makes him the man for the job. i would like to see him support stronger governors at twitter and an outside shareholder. that could be in the form of board members that do have human and civil rights expertise to address free speech. we stepped back our positions in twitter because of all of the issues it has had. we have a proposal going to a vote on may 25, asking twitter to add board members on human and civil rights expertise. that gets exactly to his point on free speech. maybe the best outcome is that musk can throw his weight behind that proposal and support that effort. >> jack dorsey left fairly abruptly last year.

it is a fairly large shareholder. we have not heard from jack. what is your experience in dealing with him as an activist investor and what do you imagine he is thinking? >> i think it is a tough job. it was tough for jack dorsey who is also splitting his time. i think he was a well-intentioned individual that tried to do the right thing at twitter. and took some steps to do that. becoming such a huge mosaic. i think it was the right choice for him to step down. and have the new ceo, have it be his full-time job. there is work to be done to transform the town square if that is what this is. a lot of people spent a lot of time on twitter but it is this

small chunk of the population and the manipulation that is happening over these platforms that is really unfortunate. we will see what happens. there is room for improvement. >> lots of open questions. thank you so much for weighing in and that doesn't for this edition of bloomberg technology. we are back here tomorrow. we will be joined by kristin smith, the executive director of the boxing association. don't forget to check out the new podcast as well. find it anywhere you get your podcasts. i am emily chang in san francisco. this is bloomberg. ♪

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daybreak: middle east." yousef: president biden says vladimir putin could face a war crimes trial for atrocities. manus: we get a rates decision from the reserve bank of australia in under a half-hour. investors look out for any signs of whether policymakers will start the tightening cycle next month rather than wait