>> in silicon valley and beyond, this is bloomberg technology with emily chang. emily: this is bloomberg technology. coming up come of the silicon valley era. sheryl sandberg is stepping down after 14 years at facebook and now meta as she's operating officer. i spoke to her in an exclusive interview. >> i made a final decision this weekend and let mark know. emily: more on that decision, why she's leaving now, and what it means for medicine future. if you want to keep working at tesla, forget about working from home. remote lurk -- work is no longer

acceptable. a quick check of the markets. how meta shares moved on news of sheryl sandberg leaving the company after 14 years. ed ludlow here with more. a day for the markets. ed: fantastic reporting. the role that the selloff in meta shares had. it did have an impact on the market. look at the s&p 500. the nasdaq 100. both down by 7/10 of one percent. the clients accelerated as we saw meta shares selloff more rapidly in the last 30 minutes of trading. the biggest points laggard on the nasdaq 100, weighing down that index. yields continue to rise which is impacting tech stocks. u.s. 10 year treasury up to 2.9%. that's a move. all i us on meta. at one point, down 4%. it did parents declines as more details came out about her replacement, the fact that she is going to remain on the board

despite tapping down as coo. one coronet of the market where heavy selling took place was crypto related stocks. bitcoin actually fell back down towards $30,000 per token. you see some of the names involved in crypto, blockchain related technologies. really heavy declines. there was broader impact in the selloff on the social media landscape. you saw that instant reaction in meta shares. twitter also saw declines, paring those losses towards the close. same story with snap. this will have reverberations in the social media landscape because of the role of sandberg in the ad space as well. ed: thank you. sheryl sandberg leaving meta after 14 years as chief operating officer. i had a chance to speak to her

exclusively along with kurt wagner about the announcement. she will leave the company in the fall. she will stay on the board. here's her answer as to why and why now. >> this was a decision i made that i didn't come to lightly and it's really about how i will spend my time. i believe in the company as much as i ever did. and staying on board. i have complete confidence in the team mark and i developed. they will do a great job in the future. for a company that has been a huge part of my life and heart. emily: for more, i'm joined by kurt wagner and david kirkpatrick. you and i both spoke to cheryl exclusively on the phone. we've been preparing for this. we never thought it would happen. give us a little bit more context about why you believe cheryl is making this decision.

kurt: she was very clear in our conversation, it felt to me that this was a much more personal decision than anything for her. she talked about the fact that she's getting married this summer. she will be blending her family with her fiance's family. she's very passionate about her philanthropy work and lean in. those were the types of things that she talked about. when you start to take a step back and look, some of her biggest responsibilities, running all of policy has been handed off to nick clay. so the legal side had already been handed off. you look at the trail that led us to hear. , she's been there a long time. some of her responsibilities started to hand off to other people. we've been asking this for a long time. it wasn't necessarily shocking.

>> she told us that she made this decision over the weekend. here we are with this announcement today. she talked to us about delivering that news. take a listen to what she had to say. sheryl: i made a final decision this weekend and let mark now. you know, once i've made a decision, we don't have a lot of time to announce. that's why the timing is so tight. emily: obviously there are disclosure rules that require facebook to tell the public in short order. you wrote the book on facebook. you know sheryl very well. what do you think? david: i was surprised like everyone else. like many, i expected this to come quite a bit ago. i think for the last few years, it's been easy to imagine sheryl wanting to leave facebook, both because one could have the sense

that she had lost a grip on the issues that she was supposed to be responsible for. by some analysis, she wasn't taking sufficient responsibility for them. obviously, mark zuckerberg has been taking responsibilities away from her in the last year or so. the new york times wrote a piece last summer about the split between zuckerberg and sandberg following january 6 when her statements that facebook wasn't responsible for that, that resonated poorly with some. her whole history there is an astonishing history of a romantic you list effective leader in many ways. i think unfortunately, the end is a sad one. facebook's reputation has fallen in such a huge way in recent years under her leadership. emily: sheryl sandberg became the face of many of the controversies that facebook has weather. i don't think we can overstate her impact on meta.

also silicon valley culture. she billed google's business model as well. facebook is at an inflection point right now. they have to figure out this metaverse thing and a whole new business model. kurt and i asked her if that had anything to do with this, the fact that she has to write a whole new business plan. take a listen to what she had to say. sheryl: we have a current business which is our current app connecting customers to businesses. i think there's a lot of opportunity there right now. also over the long run. the metaverse is a much longer term business opportunity. it's going to take almost the same form. it will be a place where businesses and consumers can act. the exact form that takes is something we will figure out over the next number of years. much longer term. emily: there's a team in place whose job that is to do now, figure out how businesses interact in the metaverse. talk to us about the new

leadership structure. you've got how viola van who is going to be taking on the role. you've got nick clark who is continuing to run policy and communications. you got chris cox, the chief product officer. of course, mark zuckerberg. kurt: historically, facebook cap the product side of the house under mark zuckerberg in the business side of the house under sheryl. now what you will see from this image right here is that a lot of the people up there with the exception of nick lang are from the product side of the house under mark zuckerberg. chris cox who is a very good friend. these are people who have worked for mark zuckerberg for more than a decade. they are people that he trusts very completely. they are also people who are going to listen to what mark

says and believe in the vision that he sets forth. it's not that sheryl was saying she wasn't going to that -- to go that direction. my point is that mark has surrounded himself with people who he very much trusts and have worked for him for a very long time. when you look at the future and white might be -- what might be uncertain, i don't see the company wavering. people are going to be talking with him, people he's known for a very long time. emily: there are a lot of powerful women at facebook who continue to work there. there are no women on that. david: it's a bunch of white men, isn't it? emily: sheryl sandberg did a lot to change the world of looking -- working women. david: she served as a symbol of women's success in business. there's no question. for most of the last 14 years,

she could have left facebook at any time and become the ceo of any company in the world. i know she was solicited for those kinds of jobs time and time again and didn't show interest because she wanted to stay here. i wouldn't be surprised however if she really has been feeling very left out, quite critical of a lot of the companies moves. i wouldn't even be shocked to learn that she wasn't in favor of changing the company name and didn't really believe in the metaverse shift which i think is still an unproven and highly questionable shift. she's a very rational, grounded businessperson. i want to reiterate one thing. she created what was the best business in the history of capitalism for most of her time. the profit per dollar of revenue of facebook's advertising business that she created is greater than the profit margin of any public company you could

name. that has declined in recent years for a variety of reasons. she really is an astonishingly effective business leader, with whatever other flaws we might want to point to. emily: i've heard many times today, she's one of the most influential people in business. . david: and still is. emily: what is she going to do next? we talked about her philanthropy, her women's advocacy. take a listen to that portion of the conversation. quek -- sheryl: i didn't come to this decision lightly but it's been 14 years. it's been 14 years and i want to make more room to do more philosophically, with my foundation. i haven't been able to do nearly as much as i've wanted to recently. it's a really important moment for women. i know we have spent a lot of time talking about that over the years. it felt like a very important

moment. more focus there would be important to me personally. emily: we are immediate, will you ever go back to business? take a listen to what she had to say. sheryl: i learned a long time ago to never make decisions about the future. i think a lot of that is unlikely. i think there's a lot i can do with my foundation, philanthropically. emily: do you believe it? are we going to see a reincarnation of sheryl sandberg in business or politics? kurt: i'm going to fall on the side of believing what she said, simply because i'm not sure that going back -- he doesn't mean the money. going back into business simply for her own personal wealth or anything like that isn't necessary, doesn't make much sense.

similar to a lot of these billionaire tech founders and successful executives we've seen , their legacy is going to be left in other ways. it's going to be hard for her to do anything out of facebook. now i think she probably sees an opportunity to solidify herself as someone who is truly a champion of women's issues and making that her top priority. i would assume maybe that's the direction she goes. emily: i would agree. she joked that it was of the honor and privilege of a lifetime but it wasn't the most manageable job of a lifetime. thank you for your reporting. i want to ask you one last question. do you believe her? is this officially sheryl sandberg moving into philanthropy? david: she's a multibillionaire.

she can do whatever she wants. she will certainly be effective as a philanthropist. it might be a role that suits are better. she's really been interested in politics for a long time. i think for many years, she really had hoped that that would be her eventual direction. my own opinion is that the way the facebook story has evolved in recent years has made it extreme lead difficult for her to move into democratic party publix -- politics which is what she would do. facebook has been shown to have so many social harms. she is responsible for not having taken those actions. emily: what about unappointed office? david: that's a possibility. she's been talked about as the treasury secretary the past. she worked in that office under very summers. i think for a role like that, it would be controversial because of facebook's history. emily: indeed.

we will be watching. she is transitioning the team over the summer. her reports will be transitioned over the summer. she will leave in the fall and she will remain on facebook. david: javier is a very impressive guy. i know him very well. emily: facebook is still growing despite all these challenges. thank you. i'm glad you're here today. good to see you in person. much more on this throughout the show. coming up, we keep talking about women in tech. we talked to the female founders fund to get the full trends. that's next. this is bloomberg. ♪

emily: venture capital funding has surged in recent years but not all founders are treated equally. companies founded only by women nabbed over 2% of total capital investment in the u.s.. still, funding for female founders are cofounded companies has been trending up. 2021 saw the creation of several women led funds, incubators, and new companies. here to talk with me about this more is --. thank you so much for coming. what do you make of sheryl sandberg leaving input -- facebook, given her impact on the tech industry? >> i think it's obviously breaking news. not mucobeyohe fact that she's been an incredibly influential woman in

tech and has a massive network, has made a tremendous impact. excited to see what she does next. emily: in my conversation with her, she talked about this being an inflection point for women's advocacy. she's going to spend more time on that. there's been concerns of women backsliding in the pandemic. how does that translate to amend founders and what they are facing in the industry right now? typically when belts tighten and markets get tumultuous, investors go back to what they know which is male founders. >> i think we are in the early stages of what one would call a downturn. looking back to 2021, it was an incredible year for female founders overall. record number of ipos led by female founders, in the history of the stock market. there have been 20 female lead ipos and last year alone there were six. i think a lot to celebrate their. we had a lot of growth led by

female founders and digital health care. we are starting to see really interesting momentum. emily: how are you thinking about the ploy in capital at this time? anu: we sit in an interesting position. the markets have been largely overvalued. we have the opportunity to sit back and really look at valuations coming down and be patient. in the last year, you had to do three days to get back to an entrepreneur or founder and it will be interesting to reset back to what was more the norm in the coming year. emily: we've heard batten down the hatches, you know. anu: yeah. all of the above. even the best performing companies are going to have a hard time raising capital. if they do, they probably won't get the valuations they want.

the advice that we've been giving is, look at your burn. focus on that path to profitability. try to weather the storm. emily: you started your own fund in 2014. what have you learned along the way? anu: back when i started the fund, the idea of investing in female founders was really quite novel. and i think along the way, there's been so much development in this space. it's important to invest in diverse founders. diversity pays off when it comes to some of the recent exits and ipos that i mentioned earlier. emily: are you looking for the next facebook? anu: a space that we've been seeing activity in is the pandemic. a lot of americans have to deal

with health care and a very different way. whether it's pediatrics, primary care position, women's health, all these categories. we are seeing a lot of interesting disruption. emily: love the name. thank you for joining us. coming up, much more on sheryl sandberg's exit from meta. some controversy around elon musk. workers returning to the office. this is bloomberg. ♪

emily: the world's richest man has had it with working from home. into memos, he said he wants to make sure certain staff are in real tesla office at least 40 hours a week.

joining us is ed ludlow. what exactly did he have to say? ed: two memos saying for those that want to work from home, they need to be in the office for a minimum of 40 hours a week . he stipulated, it is into remote or pseudo-office. it has to be a main tesla office. the second memo to a broader number of tesla employees clarified his position. he basically said, there may be tech companies out there that have a hybrid working model. he didn't see any of those companies innovating or doing anything new on their products. he's basically saying that he wants to see employees back in the office full-time. it raises questions about twitter as well. what if the purchase of twitter goes through? jack dority instituted an indefinite work from home or hybrid model policy, even when

twitter's offices reopened in september of last year. that's been the kind of big question. it's very clear, elon musk is not a big fan of return to the office. emily: jack dorsey was one of the first executives to tell workers they could work from home permanently. we will continue to follow it. thank you. coming up, much more on sheryl sandberg's departure as meta's chief operating officer after 14 years. more of my conversation with her later in the show. this is bloomberg. ♪

sheryl: i didn't come to this decision lightly. it's been 14 years. it's been 14 years. i want to make more room to do more philanthropically, to do more with my foundation. i haven't been able to do nearly as much as i've wanted to recently. it's a really important moment for women. i know we have spent a lot of time talking about that over the years. it feels like an important moment when i think more focus their would be important to me personally. i made a final decision this weekend and let mark know. the rules are such that once i've made a decision, i don't have a lot of time to announce. that's why the timing is so tight. this was a decision i made that i didn't come to lightly. it's about how i will spend my time, not how much i believe in the company. i believe in the company as much as i ever did. i really have complete

confidence in the team mark and i have built. they are going to do a great job building the future. the company is a huge part of my life and my heart. i think there's a lot of opportunity right now. the metaverse is a much longer term business opportunity. it's going to take almost the same form. the metaverse will be a place where businesses and consumers can connect. the exact form it takes is something we will figure out over the next number of years. much longer term. emily: welcome back. that was part of my exclusive interview with sheryl sandberg. she announced she is leaving meta after 14 years at the company. she's is now 52 years old. she joins facebook when she was 38 and mark zuckerberg was just 23.

she will officially leave the company in the fall but she will stay on meadows board. for more on what this means, i am joined by sarah frier along with stephen leavy. you heard sheryl's words. her explanation for why. what is your read on this? stephen: i think the surprise is that she stayed so long. a lot of people thought it would have happened earlier. it's not a big surprise that she's going on to something else. no one could say she cut and run when facebook ran into trouble. she wrote it out. some people thought she would. once the company changed its name every focused on the metaverse, she could tell the clock was ticking. emily: what is your take? she talks about whether she will go back into business and politics. she said, that's unlikely.

she wants to work on her philanthropy. still, never say never. not something that we should expect to see her do. what do you think? sarah: i think she wanted to leave facebook in a good place. it has been a difficult time to find a good place to leave facebook. the company is in constant terminal oil -- turmoil. they've had scandals. sheryl sandberg contributed to that through the company grow it all cost advertising business, user growth, and then solving the problems after the fact. she did try hard to make sure that facebook could change the way the public sees it, the regulators could see it differently. this is a company that is such a powerful force, that continues to have issues. so there was no bright horizon moment for her to leave facebook.

she had to make the call. what she was saying about the transition to the metaverse, that gives a clean moment for her to say, i built facebook up to a nearly $120 billion business. it's time for the next era to begin. that's not really the era that she needs to be a part of. emily: let's talk about that. sheryl sandberg did become the face of many of facebook's controversies. i imagine it was difficult to find not good time to leave. yet, she is inarguably one of the most influential people in business today. how would you assess or explain her legacy? stephen: mark was only 23. she was 38. she built a big business at google. she changed facebook's culture. when she got there, it was still very much a dorm room flavored,

bro engineering based culture. she knew how to build to something bigger, welcoming to a more diverse group of employees. she built up the business. you could say, the way she belted up was to build it up on personal data and targeted advertising. that was something that sheryl really nurtured and delivered in a spectacular faction to advertisers. she was also in charge of the policy aspects of facebook. that's where they ran into a lot of trouble. again, it's interesting. a few months ago, that part of it was shifted to nick clegg who took over that part of the company. that had previously been sheryl's domain. before that whole policy thing

-- you think sheryl would be so adept because she came from d.c.. that went to someone else. one way for her to ease herself out of the company. emily: let's take a look at the next generation of facebook leaders. there's nick clegg, chris cox, andrew bosworth. you just wrote a book on a lot of these people. stephen: i know them all. emily: what is your take? stephen: the one person that people might not know well is haughey who came out of the growth organization. he was lieutenant to the growth at all costs tenants. zuckerberg really drove the company in dicey ways as it

grew. he came to trust one of the top executives that facebook. i think you are going to learn more about him now. of course, andrew bosworth is someone who has been with the company since 2005 i think. he helped launch the newsfeed. that's how far back he goes. you didn't have any women unfortunately in that line. naomi blight is someone in that inner circle, one of the earliest facebook employees. it is striking that now, as meta faces its next big focus, the people behind it are people who've been with mark zuckerberg since almost the very beginning. emily: a number of powerful women who come up in facebook have left.

the ceo of injured -- instacart. her thought on whether or not this was a good idea. take a listen to what she had to say. >> i personally don't love spending a lot of time in vr. i'm incredibly motion sick which would have been a big problem if i stayed at to build the metaverse. emily: it's interesting. i wonder if sheryl had a moment of like, i have to rewrite a whole new business plan. how this was all going to work in the metaverse now. maybe a part of her just didn't want to do that. what do you think? stephen: i agree. when i saw that the company changed its name i thought, finally sheryl has an exit ramp. if you look at the history of sheryl, i think she wanted to leave originally after the company went public. that really didn't go very well.

it would have been a bad note to levon. she said, let me wait until it all comes together. and then the next horrible thing that happened was her husband died. that wasn't a good time to leave for her personally. she leaned on mark and the company to get her through that. and then came the 2016 election and all the troubles then. she was thwarted at every turn. when the senatorial post-came up in california, a lot of people thought it was something that sheryl was waiting for. she wanted to go into politics. again, she was in no position to do that. a lot of people thought that the person who took over that seat was in line for that. again, sheryl has some pretty bad luck in terms of an exit ramp from facebook. she only wanted to stay for five years. that was her original thing. emily: she told me that today.

she thought this was a five year gig. here she is, 14 years later. what is your level of confidence in this team that is left behind? the team that is still there, that's going to have to come up with this business plan for the metaverse. obviously, all the products that will make it come to life. sarah: when i think about facebook and what facebook has invented over the course of its history, it's this sort of very methodical strategy of growing. growing in ways that a lot of other companies wouldn't have thought of, like making sure that there's no barrier for companies using your product. javier who will be the new coo of facebook was really the person spearheading that at facebook for many years. he was in charge of growth, in charge of making sure that facebook resonated in new markets.

i think the fact that he's in the coo position, it just means that facebook needs the metaverse to work. that's the next bet. because of their legacy platform, facebook is stagnating in terms of user growth. instagram is struggling to keep up with tiktok. this is a really rough time for facebook to not have a sure bet for its next 10 years. by putting javier in the drivers seat of operations, they are saying, we want this to work. emily: it is interesting to think about the pivot to the metaverse as an offramp if you will for sheryl sandberg to leave. i'm sure she's been planning to do that eventually. thank you. thank you both. coming up, bitcoin back down. how risk aversion is weighing on

global asset markets. crypto report, coming up next. this is bloomberg. ♪

emily: bitcoin seemed to be on the good track but that was short-lived. it fell for the first time in five trading sessions. good to see one person. so thrilling. that's the word. what happened? >> it's not good. that correlation when it comes to bitcoin is stacked in a big way. it's bad news for bitcoin because the nasdaq 100 has dropped for two straight days, down about 1% so far this week. if you look at what this meant for bitcoin, under a lot of pressure. dropped 7% on wednesday alone. back below that $30,000 per coin level. it hasn't broken out of the lowland. it can't get off of the ground. emily: what should we expect to happen tomorrow? >> that's a good question. if you look at the ratio, close

to a record high. that stands at 1.6. if you pair that with what we are seeing in short interest, 10% of shares are sold short at the moment. you add that together, it tells you that even though bitcoin is down well over 30% so far this year, they are preparing for more losses ahead. emily: i have to tie this back to sheryl sandberg somehow because that's the big news of the day. facebook had a big cryptocurrency project, libra. david markets ended up running that. he's no longer at the company either. how much hope is there for facebook to have a role in the crypto space? >> this company has a tortured relationship when it comes to the entire crypto ecosystem. it never really got off the ground. took a long time for that to unravel. now facebook took a hard to fit the metaverse. the digital world. i haven't had a good or finish in for it yet. we heard from zuckerberg just

late last month saying that it's going to be a long task to return on investment metaverse. that meda is going to lose significant money in the metaverse for the next three to five years. facebook needs the metaverse to work. that could take a borrow -- while. emily: there's a whole different team of people in charge of figuring out the business model for that. thank you. coming up what sheryl sandberg's departure means for women leaders intact at large. we talk about that and more, next. this is bloomberg. ♪

sheryl: i didn't come to this decision lightly. it's been 14 years. it's been 14 years.

i want to make more room to do more philosophically, with my foundation. i haven't been able to do nearly as much as i've wanted to recently. it's a really important moment for women. i know you and i have spent a lot of time talking about that over the years. it feels like an important moment, when i think more focus their would be important to me personally. emily: i want to come back to sheryl sandberg leaving meda. sheryl sandberg was part of the conversation that i'm sure got you there. she was a supporter of girls who code. what is your reaction to this news? after a long time, sheryl sandberg is leaving facebook. >> i'm excited for her. she was an early supporter of girls who code. we used to have these town halls where her and i would have a

conversation with hundreds of our students and she opened up facebook to this movement. i think she's absolutely right. women are in crisis. roe v. wade is about to be overturned. so we need leadership. we need her leadership. i'm excited to see what she does. emily: what do you make around the controversy around her leadership? >> i mean, i don't agree with all of lien in. i wrote a book. it was revolutionary at that moment. things have changed. she would agree with that. we need a different type of fight in workplaces. we need to stop trying to fix women in need to fix the structures. the reality is, you have to applaud how far she got to and what that means for women. we always say, you can't be what you can't see. there are so many young girls who are looking at her as the coo ed phase -- of facebook and

saying, maybe i can do that. emily: a high-ranking family executive told me, you can't lien in if the door is nailed shut. is the door still nailed shut for a lot of people? has it cracked open? >> no. it is nailed shut. it definitely is. look at the state of affairs right now. we are living in a country that is forcing birth for women, the highest infant mortality rate. no paid leave or affordable childcare. our kids are being shot in schools. the number one reason why kids die is guns. so yes, the door is nailed shut. we need to force it open. there's been a moment to call for revolution, to call for thinking about things differently. we launched a coalition to make sure that childcare is a benefit that every single company offers. emily: we have talked about women backsliding in the pandemic and the fear that women will come out of this in worse

shape than how they entered. elon musk is saying, can't work from home. i'm curious what your reaction is to his memo, given the thought of hybrid work. there's a thought that it's good for women. >> i get it. people want people back in the office. they can't come in less they don't have support. we just did a survey and half the women that we surveyed left because childcare is unaffordable and unreliable. today, half of our day care centers are still set down. we still have new variants and instability in schools. most people pay more for their childcare than they pay for their mortgage. it's their largest cost. if we want people to come back to work, we have to think about new policies to help them come back to work which means paying for their childcare. which means having paid leave. which means thinking about how you do design hybrid workplace to make it possible for people to fulfill the roles.

it's not just moms. it's dads. so money father say, i don't want to commute 2.5 hours to work and see my kid for five minutes a day. i won't live like that. emily: you have a very unique view into how our young people and girls are being prepared for the future. are they ready? are they getting new tools to succeed in the world? >> it's interesting. i gave a commencement speech last week. i've been asking young people, how do you feel about this moment? do you feel like you want to change the world? when i talk to so many kids they say, the past few years have set us back. we are exhausted. our mental health is drained. we look at the adults in the room and they aren't leaving us. we aren't inspired. we don't feel like we are ready. we need to do something different. emily: what is the good news? inspire us. you are out there doing good

work. clearly, women are inspiring. >> the good news is that we are pitstop. the rages going to take us to power. emily: how significant do you think it is that sheryl sandberg won't be leaving on the business side but might be more influential on the policy side? >> i think we need it. i give so much gratitude to melinda gates. melinda has single-handedly funded the movement that i'm a part of. in terms of making sure that we have paid leave and affordable childcare. we need more women philanthropists doing this work. emily: so good to see you here. thank you. that does it for this edition of bloomberg technology. right back here in new york tomorrow. -- guest. that's all for now. stay tuned to bloomberg. ♪

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