do you consult with marc andreessen about startups?eg: he has been a great counselor to me and the company and he still sits on the hp board and provides a tremendous perspective. marc and a couple of other board members have fingers on what is going on in the valley. and we are fortunate to be there, because we see what is going on. emily: are you glad you took him up on the offer? meg: i am glad. there were a few days when i said, "marc, you know, what were you thinking?" it has been a really tremendous experience, and a privilege in many ways. i think it matters what happens to these storied companies, these great american icons, what happens to hp in silicon valley, it matters to california. i would argue it matters to the united states and to the world. so we have such a big footprint that we matter to communities around the world and i think that is a responsibility we have to take very seriously. emily: we talked about a billion dollars in restructuring costs, an additional $2 billion potentially in the services area. when does

amish, first and foremost, what is marc andreessen of all people selling mean to >> you know what it means to me, he wants him to quit. holidays are coming around and been a board member since 2008. how i look at it, time he sees stock at certain point. he wants some liquidity. so selling 15 to 18%. mark is a great guy. if i see other insiders start selling and it's a trend next few months i might be concerned. that is how i feel. trish: as the bull, just to say, some investors might say, look, if this guy, who you can't find a bigger cheerleader, for facebook, is selling, that is a slightly anxiety-producing kind of sign. kim, what is your take? >> well, i'm going to say it's like red meat to me being the bear. i think it is a real warning. we've stayed away from owning social media for many reasons, but namely, i just don't see it being that exciting to advertisers in the long haul. i think we're still in the area, or era where advertisers are trying to figure out what to do in social media. and how to make it work for them. google is the absolute natural for advertisers. if you're

andreessen horowitz has come on the scene and it is the hot new firm.e got a lot of people in recruiting, marketing. steve: like an operation. emily: right, right. where do you see dfj's place in the hierarchy today versus 20 years ago when you started? steve: i try not to compete with any of them. in a healthy economy, you are going to have different firms that do different things, have different strategies. if we are doing our job well, we will not come head-to-head with the same group over and over again, because that might imply we are doing the same thing they are, and why would we do that? i like a different approach, which is looking for industry sectors that are not over-invested. the ones where frankly, no one else is competing for the deal. the vast majority of investments i have made, there was no competing offer. emily: really? the question i was going to ask is, how do you get on the top list for every entrepreneur? steve: when were first investing in space, there was that no one else saying they were in space, so what i try to do is be vis

emily: marc andreessen has warned about burn rates. founders and companies burning through cash too quickly. what is your view on that? drew: it has to start with your business model. we are fortunate that our model has not changed much. we have been largely funded by our users, not investors. emily: how do you balance between the fancy office and the company perks and making sure you are being responsible? drew: we have a great office space, and we invest in things to make our employees lives easier. you will not see super expensive paintings or other, like -- we really make sure it does not look opulent. the danger companies can run into is giving everybody the impression that we have made it. and so we have tried to be balanced. emily: one of the things i have heard -- and this is just word on the street -- is that dropbox is losing some talented engineers. how hard is it to keep good people? drew: i think it is all part of the war on talent, selling information like that. [laughter] emily: ok. so it is not happening? drew: certainl

emily: mark andreessen saying we are in a long-term bust and tech is undervalued.hy is there such a diversity of opinion? believew much do you that new things will be invented that are not invented yet? from anbuild companies idea to something globally relevant in three years, four years, five years. dropbox.bnb, they can move very fast to global relevance. they can be important to a impact all industries. technology will be part of the solution and not part of the problem. on the other hand, ok, a lot of investors are betting on this broadly and you get valuations where you look at a specific valuation and go, why is that valued that way? people are not distinguishing sharply between which companies benefit in which companies do not. that is the key issue where breaks between the bowls and bears.- bulls and emily: is it really subjective that we are in a bubble? reid: no one ever disputes bubbles in retrospect. clearly, that was artificially inflated and had a re-correction. the question comes down to, it looks like some of these valuations are high. when you can

mark andreessen is optimistic about the future.s were saying there is going to be pain, there could be catastrophic events. >> i am more in the paying camp, but i don't say that as a gloom and doom thing. i still believe the number of extraordinary companies is still the amazing thing that we should be celebrating. emily: so if you are in pain, how does that play out? we are seeing a completely different situation than we've ever seen before, fair valuations on the public side and high on the other side. >> in the last bubble in the late 1990's, those companies were going public with zero revenue. when netscape went public, the it had nothing revenue wise. yahoo! went public with very low revenue. these were not robust business models that were scaling, they were promising. now you have business models that are big and scale. twitter, for all its criticism, will do a few billion dollars in revenue. that is a real company. i feel it is genuinely different this time. but there will be a correction. emily: so when there is pain, what

>> marc andreessen has sold of facebook. >> he has a great basis.obody ever got hurt taking some profits. >> i remember when -- there have been or margin calls, typically in the oil patch, aubrey mcclendon had a big margin call. that's usually a tell that the executive was a little too exuberant to have been on margin to begin with. horizon pharma reported a great number. a lot of people say that's a similar roll up to valeant. they raised prices. we have to look at that. horizon pharma had been a hot stock but because of the valiant taint. healthcare very tough to go up here. >> you made a point of talking banks. regions, zion, state street, every -- the top 25 are almost all banks. >> that group thing. the hedge funds and mutual funds are not there. very underweighted these and overweighted healthcare. the battleground will be oil. eog reported a remarkable quarter, it's not up. they found a billion barrels in their delaware base. nobody cares. that group had its couple of days. the market is fair standard by one area, hates other areas. decided i

mark andreessen and continues to unload his holes in the social network.million shares of facebook in the last two weeks. that totals $160 million. is 73% of his total ownership in the country. the company beat earnings stillations and there is class the stock. there was a preset trading plan. changeup, how does this the world's opinion on cyber security? check us out on the radio. you can listen on the bloomberg radio app. more from "bloomberg west." ♪ emily: i am live in new york. following edward snowden's revelations, tech companies have taken a hard line on government intervention. creativegetting more with eluding detection. is thesman jim himes ranking member of the committee on intelligence. thank you so much for joining us, congressman. out,the revelations came the pendulum swung so far in the other direction and people are so upset about the government potentially monitoring our data. the you see it swinging back after this? congressman: it will. after the snowden revolutions, these pendulum swung too far back. i had to disabuse people of the not

mark andreessen also says that we are in a long-term best. tech is undervalued.such a diversity of opinion? >> the question comes down to --how much do you believe that new things will be invented that will be solutions to the problems that are not invented yet? inherently, you could build companies from essentially an idea to something really globally relevant and three years or four years or five years. you look at uber or airbnb or dropbox or these new companies and they can move very fast to global relevance. and they can be important to affect all industries. that is the case that says we will create more of those. it will be part of the solution not the problem. that is should focus on. on the other hand, a lot of investors are betting on this very broadly so you get valuations we look at a specific valuation and you go why it is that way and the answer is people are not really distinguishing very sharply between which companies really benefit from a globalized network age and which companies do not. that is the key issue where it breaks between the bulls o

mark andreessen just tweeted " the fate of square today will determine the fate of all technology companiesn the arere." i think people looking at square as a potential of an over value of tech companies in the private market. betty: maybe he is digging into the hyperbole that he cares in the media. what happened where mutual funds, investors, with a less hot on this company? emily: you had people on both sides, people walking in saying they were not going to a vast and people saying they were going to invest. the revenue is growing but they are losing more money. the revenue is growing 57%. square is targeting long-term 20enue growth at closer to to 25%. betty: amalie, what changes now? -- emily, what changes now? jack dorsey will become the ceo of twitter and is now with square. what happens now? emily: they just hired jackie reese from yahoo! to head square capital. they are trying to figure out how to build some of these non-core businesses, like square cash. we might see them make interesting strategic decisions regarding a company they acquired earlier this year, caviar. dorsey,g to a

scarlet: it is something to keep in mind because marc andreessen, who owns one point three 7 million facebook according to bloomberg data, reportedly sold 50% of the stake according to "the wall street journal pic." long-term investors perhaps pairing mistakes. alix: what does that say ahead of earnings results? sarah: there's a lot about the potential growth in other categories. facebook, obviously the main product, has been maturing, but it still has almost 1.5 billion users. product is getting very close to the billion user marked that mark zuckerberg said would be interesting to start monetizing it that. they think the people buying facebook stock right now say that it's only a small portion of what facebook can monetize has been monetize. maybe down the line we will get more detail and we will get more growth than we have seen here. i do not know if growth is going to speed up. i think when you have this big debate, it is unlikely. you do have a lot more opportunity and they are growing the base of users on the internet, too. alix: when it comes to facebook, it is really hard to

today, that is also driving our business on light truck side, driver least cars talking to mark andreessenmpanies tesla uber apple, google what do you say about that. >> well, i don't think that is going to be the case. >> you are driving drillerless cars what is the strategy. >> i think you have to you have to look at how you define autonomous cars, we believe that you are going to have a driver in the control of the car behind the wheel. you have aircraft that are not pilotless. >> if you wanted to drive press a button then -- >> sure, that is in some point in time you will have drillerless cars going to have to evolve a mix of driverless car in a city like new york of you going to to maker there is a lot of artificial intelligence in those cars to maneuver streets and changes. >> if you were to spin out toyota like innovation department or guys and gals that are working on that, how impressive would they be versus tesla tesla public company, we don't get to see your people. >> well that is because we are a little bit more secret we don't tend to brag as much about what we're doing, and

is a question for the car buyer -- tell me we got to go quick the other day, i is a you a mark andreessenoogle -- >> four car companies bob what do you have to say. >> i think, i think -- they have tremendous technology that can bring, i know everything you talked about, lane protection, advance positive separation breaking that is great as many not get into manufacturing cars. maria: i think that is the point, do not -- they are not manufacturers somebody has to manufacture stuff. >> they should bring all the technology, we should put the apple in there you don't need a redundant gps redundant phone redundant -- >> there is a reason toyota hiring all thesy see people to get driverless expertise investing in artificial intelligence i may see that is where future is otherwise left in the dust. >> we will get there i am not ready to get into a cab in manhattan in a driverless cab let me say that. >> the car crashes, we know what happens. >> absolutely. >> donald trump set to take center stage fox business debate next week does he have right stuff to take the white house we will talk to cand