you have been on the board of appdynamics.dlock helped this company grow, it was the first offices provided. they were working in graylock with year when this company was first born in 2008. apart from the pride -- of part in the price tag, do you think cisco was the right way to go? >> every company has to make their own determination whether to continue public or be acquired at some point in their life cycle. cisco is a world-class technology company, a world-class management team, just incredible resources rid i think -- incredible resources. they can be an excellent home for appdynamics, both extending reach for the product line very quickly across the world's largest enterprises and also in terms of synergy with the monitoring data that cisco has. combining that did it the application and business performance data that appdynamics has can be powerful. caroline: what does this say to the highly valued unicorns at the moment looking at the market and wondering whether to ipo, to be acquired? you think this might put off oth

cisco is making an acquisition, acquiring appdynamics 43 $.7 billion.pped of the software maker before it planned to go public this week. bloomberg's daybreak american team spoke to the ceo of cisco on the news. >> yesterday was a great day for us. we had two great levers on how we drive innovation. in the morning, we launched cisco smart board, which will revolutionize meetings and business. one of the headlines is that it was one of the coolest products cisco has built. in the afternoon, we made the aquisition of appdynamics, fantastic acquisition for us. what they do is they translate application performance into his news insights for the customer, and they do it across private and public cloud, so we think the synergy of what we see at the infrastructure level and they see at the application layer creates visibility that no other industry cane provide to customers. i was there yesterday. 15 minutes after we made the announcement, i address the employee base, and i think they are excited. >> i have a couple of questions about the deal itself. you hat

up next, appdynamics' ipo was officially squashed. this week. what this means for 2017's pending batch of ipos. and if you like bloomberg news, check us out on the radio. you can now listen on the bloomberg radio app and on sirius xm. this is bloomberg. ♪ ♪ caroline: welcome back to the "best of bloomberg technology". i am caroline hyde. cisco is making an acquisition, the world's biggest networking bank is acquiring appdynamics for $3.7 billion. cisco snapped the software maker before it planned to go public this week. that was the first major u.s. technology ipo. bloomberg's daybreak america team spoke to the ceo of cisco chuck robbins on the news. chuck: yesterday was a great day for us. we had on display two great levers of how we drive innovation. our portfolio. in the morning, we launched cisco smart board, which will revolutionize meetings and business. one of the headlines is that it was one of the coolest products cisco has built. in the afternoon, we made the acquisition of acquisition of -- we made the acquisition of at dynamics, whic

up next, appdynamics' ipo was officially squashed. see what this means for pending tech ipos. check us out on the radio. this is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. anything with a screen is a tv. stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. caroline: welcome back to the "best of bloomberg technology". i am caroline hyde. cisco is making an acquisition, acquiring appdynamics for $3.7 billion. cisco snapped of

up next, appdynamics' ipo was officially squashed. dive into what this means for 2017's pending batch of ipos. and if you like bloomberg news, check us out on the radio. you can now listen on the bloomberg radio app and on sirius xm. this is bloomberg. ♪ >> it is 1:30 in hong kong. the white house says green cardholders will not be affected by president trump's immigration order. so, several companies have come into all of this. google morning staff from the seven listed countries involved to not leave the united states. microsoft calls the order misguided and nike says they don't support the policy. toyota is no longer the biggest selling carmaker. they've had the worst year in its history. volkswagen managed a -- managed 10.3 million. they are struggling with their image. general motors have their numbers out next week, if they fall short, vw will be the number one for the first time ever. it's resident will stay on the role until his term ends. he is taking responsibility for his role. toshiba is considering selling assets includin

cisco systems is buying appdynamics for $3.7 billion. appdynamics was gearing up to be the first tech ipo of the year. it was supposed to price tonight with $2 billion. cisco agreeing to pay about $26 a share, well above the price range of $10 to $12 per share. appdynamics makes software to monitor the performance of applications, don't miss chuck robbins on squawk on the street today at 9:00 a.m. >>> alcoa reporting better than fourth quarter revenue thanks to a rise in aluminum prices. alcoa expects 4% growth in global demand even as the market are mains oversupplied. it sees strong demand from china driven by packaging and transportation sectors. the initial gut reaction was lower stock price. it looks like things are moving in the opposite direction. >> the stock is up like 0% year to date. it's been on a huge run. >> good quarter. >> looks like good enough. at least after this split. we don't know what to compare it to. but seems like the street liked it. >>> the gap says the head of banana republic is leaving as the retailer tries

up next, appdynamics' ipo was officially squashed. this week.ee what this means for 2017's pending batch of ipos. and if you like bloomberg news, check us out on the radio. you can now listen on the bloomberg radio app and on sirius xm. this is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. anything with a screen is a tv. stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. >> this is an update of the top stories. an advisor to the bank o

you know, appdynamics is sold at 275 of the fortune 2,000. we can bring our teams together and penetrate them more effectively. if you look at what we did with that company, we think that's the same play we can run here. >> right. given that there seems to be at least an expectation that you guys are making a greater software play, or focus certainly, can we expect more deals of this type from you? >> you're going to see us continue to drive. we've built great partnerships with companies like apple and we will continue to leverage our company to do m&a where it makes sense. i'll take you back to our last earnings call where our deferred revenue from software subscription and our sass business was up almost $4 billion on our balance sheet. we've been making that transition and you can assume we'll continue to leverage every capability we have to continue that transition. >> all right, chuck, i got to tell you, i know you talked about the nearest competitor. here we're speaking about new relic. i sat down with lew, the ceo of relic, i think he

we will get more details about appdynamics. we are going to watch that.scinating, this is supposed to be the first tech ipo of the year but it looks like that is not happening with the cicso acquisition. it was going to be a big test of investor appetite. cicso's it is a test of appetite can it will be interesting to see if there's any cisco reaction. yvonne: in the meantime, bhp an 18on is that -- at month high. reporterover to our joining us live from sydney. what has driven bhp's performance? it has been another strong quarter. iron ore is their biggest money spinner. they beat expectations, 16 million tons for the quarter. petroleum off a little bit. petroleum and iron ore have been doing the business. shares are responding accordingly. yvonne: it was no surprise, given the rise we have seen. the company is also looking to boost its petroleum investment. yeah, they describe this as sort of a little bit countercyclical. have recovered since last year, but still a way off the highs from a few years ago. they are pumping a lot more money into exploration

but talking to sources around the appdynamics deal, it was bought for $3.7 billion when the market was looking at closer to 1.7 billion dollars. that premium is a good thing. a fantastically growing company, the fastest growing software company, would have been the fastest growing software company, also cash positive and profitable. >> and investors are excited. , once aming up, paypal tool in ebay's battle against teamn, is now in talks to up with amazon. what snacks? human sacrifice, dogs and cats next? together, -- what's human sacrifice, dogs and cats living together, mass hysteria? we will discuss. this is bloomberg. ♪ cory: paypal is stepping up its push for partnerships. the css paypal is in talks with amazon about setting up a -- the ceoationship says paypal is in talks with amazon about setting up a payment relationship on the site. david, really glad to have you on. i remember when paypal was the anti-amazon. ebay acquired paypal right after its ipo to keep it away from amazon. it's kind of amazing that these guys might finally get together. >> right, right. of course, when t

cisco systems is buying software maker appdynamics. had been expected to price tonight and go public tomorrow. so there's an ipo that's been shortchanged. cisco ceo chuck robbins will be talking about the deal when he joins "squawk on the street" at 9:00 a.m. eastern time. >>> and tech strong, the company behind cessna and beach craft, reported quarterly profit of 80 cents a share. that missed expectations by 7 cents. the company also announcing a weaker than expected 2017 outlook. separately, they announced the acquisition of arctic cat for $247 million, or $18.50 a share. >>> dow component boeing is set to report its quarterly numbers at the bottom of the hour. boeing expected to earn $2.35 a share on revenue of about $23 billion. >>> european central bank policymaker -- this is unfair. it's unfair. it's not fair. now they're showing what's in the teleprompter. i knew you were up to no good. you had to be behind this. >> and i've been practicing. sabine lautenschlaeger. >> i knew something was going on over there. here's the thing. i

ones, mill soft aiming to go public as as the first quarter but talking to sources around this appdynamics deal, i will say the fact that it was bought for $3.7 billion when the market value $1.7ooking at closer to billion had it listed, that good thing for companies considering, to potentially helping valuations for companies. fantastically growing public software company, flow, profitable. >> investors are excited. was bloomberg i.p.o. editor. and tech up withp, talks to team amazon. what's next? human sacrifice? dogs and cats living together? mass hysteria? we will discuss. >> paypal talking with amazon remember of old, i anti-amazon.as the it's kind of amazing that these guys might finally get together. >> right, right. of course, when they split from ebay a couple of years ago, this was the thought that this was the one big retailer they would like to have. the question is, does it make sense for amazon? aazon is the one site, destination site where you go cardsve various payment already stored. so i'm not sure what they gain by adding paypal, especially in the u.s., as a new option.

the purchase comes just one day before appdynamics planned to price it's ipo. >> today uber self drive cars are returning to san francisco, the same cars put on the streets last month, but time the company said they will only be used for mapping purposes and will be driven man youally at all times -- manually at all times. >>> a facility providing ferry service to alcatraz is one step closer to becoming a reallety. it named the pier hat was the preferred location. the report had valued four different locations, and officials said if the pier is chosen, it would allow for cite seeing cruises to parks around the bay. >> the san jose sharks keep on rolling. >> yeah, but more wins mean a bit of pad news for fans with the price of tickets going up. details on that right after the break. . you have to be here, with us. th only one way to travel through this natural wonder and get a glimpse of amazing. and that's with a glass of wine in one hand, and a camera in the other, aboard rocky mountaineer. canada's rocky mountains await. call your travel agent or rocky mountaineer for special offers

. >> sysisco bought appdynamics f $3.7 billion. the deal is cisco's largest under chuck robbins as the company seeks to expand in areas outside of its corone networkin business. let's go to our guest who salt through a long read about generali. all of these companies are trying to shape up their business. is it out of desperation because growth is so hard to come by in this environment or because they see plenty of opportunities out there? >> i think there's another factor as well in that work about generali, that countries are beginning to encourage national champions. it's part of this populism protectionist move that a number of companies are talking about, that desire to build big, you know, global leaders, big champions. there is part of that mindset companies are latching on to. i think it's more about a lack of growth than it is about a reflection on strong growth. if you look at when big m&a cycles tend to happen, it's not at the bottom of market cycles, it's very much at the top and about trying to replace slowing growth o

they look at cap dynamic -- appdynamic and they saw a company growing very fast.mazon web services, google cloud, and others that -- businesses are oveributing their apps such a wide variety of networks that finding out how the apps are working is really finding out how customers are using your product and cisco recognized this would be an important part of networking going forward. vonnie: you have sound from the cisco ceo i believe. let's check what he said earlier today. >> there are a few things we looked at that are important to understand. first, they are absolutely the best company in this space. secondly, they are growing twice as fast as the nearest competitor. third, they are growing faster than any publicly traded software company today. david: growing faster than any publicly traded software company today. that may be what was instore for the ipo. imagine that product with the cisco salesforce and you can see how they might get more value out of the business right away. >> very quickly, qualcomm reporting that they are squarely in apple's crosshairs. c