how well is dropbox doing?ohn: when you say they are getting pummeled, you can't see it in the numbers. i think i box is doing just fine. i don't know however notes numbers are doing. -- how evernote 's numbers are doing. emily: look at of learnings are you taking from some of these other enterprise soft where -- what kind of learnings are you taken from these other enterprise software companies? brett: consumer companies going after individuals and enterprise copies that sell directly into i.t. departments, we are trying to represent a product that is consumer friendly. and people love to use it. you see the evolution of companies like dropbox, who sort of started in one place and gradually transitioning into another. we wanted to learn from their lessons. we wanted to sell directly into larger companies. emily: my job is to separate reel from imaginary unicorns. given that these are private companies, how are we supposed to gauge? john: what i would tell you is dropbox is doing fine. it all comes down eventua

evernotempanies like and dropbox have been getting pummeled lately. there are concerns there is not a strong business model there. i want to hear from you because -- there was a lot of confusion surrounding the company. if we are confused, clarify it for us. how well is dropbox doing? when you say they are getting pummeled, you can't see it in the numbers. i think i box is doing just fine. i don't know however notes numbers are doing. how evernotete -- 's numbers are doing. emily: look at of learnings are you taking from some of these other enterprise soft where -- what kind of learnings are you taken from these other enterprise software companies? consumer companies going after individuals and enterprise copies that sell directly into i.t. departments, we are trying to represent a product that is consumer friendly. and people love to use it. you see the evolution of companies like dropbox, who sort of started in one place and gradually transitioning into another. we wanted to learn from their lessons. we wanted to sell directly into larger companies.

emily: dropbox, for example. you invested in dropbox but did not get a board seat. why did that happen? john: we were the b round. which is a wildly expensive b. but it'll turn out in retrospect to be a good bargain for us. they were riding a very large wave that just got bigger and bigger. emily: how do you protect yourself as investors? how do you hedge your own risks? david: we do not tend to use financial engineering as the way to do that. emily: you do not have liquidation preferences? david: not in almost anything we do. you're talking about unusual liquidation preferences. as a protection. downside protection. we do not do anything fancy. our biggest thing is alignment with the entrepreneur. those tend to misaligned the entrepreneur. that comes out at these times at the weirdest moments, when you don't want it. misalignment can hurt you. we tend to manage risk by picking well and having a diversified portfolio. emily: there are all of these unicorns worth more than a billion dollars. but are they really? because of the liquidation preferences. and does that m

microsoft and dell are both making pcs, dropbox, ibm. that a newesting york times headline called it, "crazy like a fox" strategy. >> what is it that we can uniquely do? i ask myself each day, i don't want to be in every part of the industry, i want to be in things that are addressable markets. that sense of purpose and identity is what makes companies successful, not just doing everything. emily: what is your response to in somechael: sandboxes, they are fighting with people. it may look like they are trying to compete but that is really at the margin. a big part of dell's businesses are there servers in a run on products.projects -- other companies are hard to partner with. it is hard to partner with apple and google. microsoft is opening the doors. their partnerships with dell and dropbox, all they are going to do is drive business forward. meeting him for the first time, he seems very focused. he is winning over people with his strategies. reporter: what they have done is a smart move to convert to the cloud. that has taken a lot of

microsoft and dell are both making pcs, dropbox, ibm.t is interesting that a "new york times" headline called it a "crazy like a fox" strategy. take a listen at what he had to say. >> we will look at any opportunity that fits what we do. what is it that we can uniquely do? i ask myself each day, i don't want to be in every part of the industry. i want to be in things that are addressable markets where microsoft has a unique contribution to make. i think that sense of purpose and identity is what makes companies successful, not just doing everything. emily: michael what is your , response to that? michael: in some sandboxes, they are fighting with people. and a lot of others, they are playing. it may look like they are trying to compete but that is really at the margin. a big part of dell's businesses are big servers that run on microsoft products. google other companies are hard , to partner with. it is hard to partner with apple and google. microsoft is opening the doors. their partnerships with dell and dropbox and others, all they are

emily: dropbox did not start thinking about salesforce's enough. -- salesforce soon enough. >> there is a question about what would be the most efficient way to grow. advertising. it is easy to stop advertising when you need to. the second choice would be other marketing. , events,e sponsorships things like that. the third choice would be sales. it is much more expensive and harder to make the change. if you hire 1000 salespeople, -- it is an people empirical question. we have been growing historically about 20 or 30% a month. the rate of growth that is difficult for us to keep up with. emily: we were talking about this -- we may be seeing the beginnings of a down route. downgrading the value of their stocks. why will that happen to you -- won't that happen to you? stewart: to take money on a specific set of terms come i've to be pretty sure. 95% sure that this is a valuation we can grow into. people argue sometimes about whether the company is worth that much money. people make investment decisions based on the future value. can this company grow by 10 next x or 20x? 10 it is borrow

there is no difference between megaupload and services like dropbox or the new mega today. you can use it for good things, and you can use it for bad things. you can buy a knife and stab someone in the heart, or you can use it to slice your bread. you know, you're not throwing the knife maker into jail because someone is murdering someone with a knife. emily: copyright holders say you robbed them of hundreds of millions of dollars. kim: well, how can i have done that if i, myself, have never uploaded a single copyright file onto megaupload and shared it? emily: did you try hard enough to stop it? kim: we followed the law. when we got copyright notices, we took them down. in addition to that, we gave over 150 copyright holders direct access to our servers to delete links they did not like, that were infringing on their copyright. emily: you also -- you had a rewards program. you paid users to upload content. they made more money, the more popular their content was. what is popular? movies that have not been released, music that is free. in that case, weren't you complicit? k

we are competing for the top people with google and facebook and, you know, dropbox, all of these -- uber -- these hot silicon valley companies, but we aren't able to give the stock packages. we find if you give them a good salary, you give them a good mission, you give them intellectually challenging work, and then you give them other great people to work around, it just naturally feeds on itself. so i feel good about the model, even though it is a bit of a strange model. emily: and what about your own financial position? i know you have three kids now. sal: i pinch myself every morning. i feel like i came to terms with this is what i really love doing in life. we can buy a honda accord every eight years. [laughter] sal: that's all i need as long as i can pursue my passion. we get to dream about what could it be in the future. are we creating the harvard or the oxford for this next stage of civilization that could reach not 1000 or 2000 students a year but could reach a billion students a year. i could not imagine being in a luckier position. emily: you are hanging out with tech bil

i passed on dropbox, i passed on airbnb. when i was at google, i told eric not to invest in gopro. are the times that i focus so much on the negative case that i miss all of the positive. i said that airbnb was really dangerous. i think somebody might get raped or murdered while they are staying at someone's house and the blood will be on your hands, i literally said this out loud. $24hose guys who now have a hands. company on their emily: you didn't pass on uber. you own 4% of the company. chris: i was lucky to be one of the very first investors. i had deep convictions about what it could be. emily: you don't think uber has used very dirty tactics? chris: i don't. i think they have used aggressive tactics. i think travis has been invented in his tactics. emily: how big do you think uber can be? chris: that is truly limitless. i do not think it is worth less than $150 billion to $200 billion by the time it goes public. they are nailing down the food business. that is a whole other business. emily: taking on fedex, is that some think they would do? chris: they are delivering package

note-taking app evernote recently announced layoffs, and mutual fund investors in dropbox reportedlyked down the value of their holdings in the company by 20%. venture capitalists have already invested more than $47 billion in the first three quarters of this year. the next few quarters will be critical in determining whether the party continues or whether startup founders will have a tougher time raising those big rounds of funding. for "nightly business report" i'm josh lipton in san francisco. >>> daily fantasy sports sites have been dealt another setback. nevada regulators are bang them from operating in the state until they get a gambling license. the decision was made by the nevada gaming control board. thursday evening both draft kings and fan duel pulled out of that state. comcast ventures and nbc sports ventures have stakes in fan duel. comcast is the parent company of cnbc, which produces this program. >>> now to the race for the white house. john harwood recently interviewed a number of presidential candidates from jeb bush to donald trump about their plans for the economy

taken today represented a healthy endorsement of the bill proposed by companies such as apple and dropbox said it lacked key privacy protections and may result in personal information ending up in the government hands. officials in israel say to palestinian stabbed a jewish man at the school bus stop outside jerusalem. the least fatally shot one of the attackers and gloom did another. it was the latest incident in more than a month of violence. ast night police killed jewish man thinking he was an israeli attacker. benjamin netanyahu talked about this in berlin today with the u.s. secretary of state. john kerry said he will present plans for defusing the violence over the weekend. russia is pushing for early presidential elections in syria. the official said the president would decide himself whether or not to see reelection and syriae conditions in should not be an obstacle to the boat. united states, european union, and the gulf cooperation council all refuse to recognize the previous election. el niÑo is back and could be hearing up to wreck havoc. it has not really reached north ameri

if you give the same multiple to dropbox, saying their revenue is half a billion dollars, you are just barely above half that $10 billion valuation where they last raised money. duh wit for excitement to come back, or do you go public and take your lumps and make due with what you get? >> facebook will be -- >> it dpoendz what the companies -- sorry, jason. go ahead. >> no. i was going to say facebook would be a good core lear for that. they went public and went up a little bit and then tremendously down. oh, my god, are they going to be able to figure out mobile. they have a huge liability. then all of a sudden it comes back, and they're absolutely crushing it. over $200 billion company. you know, these companies have to figure out each of these waves, and then you have massive competition. this is -- there's multiple factors at work in each of these valuations, and what's really 2k3w509d about what's happening, i believe, is that now people are putting really hard metrics to each company and everybody is slowing down. i don't think we're going to have this massive wipe-out where peop

we're talking about apple and dropbox and twitter. the list goes on and on. why? because these companies have got to be concerned about both cybersecurity and protecting their employees and their customers' privacy. unfortunately, this legislation does very little to protect cybersecurity, which has now been acknowledged by the lead sponsor of the legislation and has major problems with respect to protecting the liberty of the american people. i urge colleagues to vote no. a senator: mr. president, are we out of time on the democrat side? the presiding officer: 20 seconds remain. mr. carper: keep in mind ient one and ient two are already in effect. they do not block these intrusions. einstein three authorized by our legislation puts a new player on the field, defensive player to be able to block these intrusions. this is new and requires agencies to implement that. and that's -- for no other reason than that, it's a good reason to support this proposal. thank you. the presiding officer: the senator's time is expired. the clerk: cloture motion, we, the undersigned

society organizations from across the political spectrum and major tech companies such as apple, dropbox, twitter, yelp, sales force.com and mozilla. neither the business software alliance nor the computer and communications industry association support cisa as -- as written. in a letter i received from the department of homeland security this summer, the agency which has a leading role on cybersecurity for the federal government expressed concern about specific aspects of cisa. d.h.s. explained that under the bill's approach -- quote -- the complexity for both government and businesses and inefficiency of any information sharing will marketly increase -- end quote. the letter explained that cisa would do away with important privacy protections and to make it harder, harder, not easier to develop a -- quote -- single comprehensive picture of the range of cyber threats faced daily, unquote. now, senator burr and senator feinstein, the bill managers, have worked very hard over the last months to improve various aspects of the bill and their substitute amendment offers a significantly impro

somebody was telling me for example dropbox, right?ecause it's included in -- >> david that's a -- >> it gets hurt by microsoft. >> microsoft will be a 15 year high today. google amazon will be record highs. >> at one point i got up this morning and i said to myself, i am not as smart as anyone who works at those companies. i just felt very defeated. i was patting .315. >> don't kick yourself like that. you're good enough. you're strong enough. and you're smart enough. >> these are nfl. okay. google is the patriots, okay. all right. amazon is green bay. all right. and microsoft, we're trying to figure out which is real the panthers, are the panthers real? that's who they are. i got to say, i know, i know. >> who is facebook which hasn't reported earnings yet but see its market cap eclipse $300 billion today. >> who comes out? >> the cardinals. >> carson palmer is real. these are nfl, there's a great piece about pa rrrity in the "n york times". there's two leagues developing. there's the ibm league, no offense because they are sweet and

dropbox, twitter, sales force, yelp, reddick, the wikimedia foundation. and i'd point to the strong statement by the computer and communications industry association. their members include google, amazon, facebook, microsoft, yahoo, netflix, ebay and paypal. their statement and those companies, mr. president, those individual companies that i've mentioned, they have millions and millions of customers. and the organization that speaks for them says -- quote -- "sisa's proscribed mechanism for sharing of cyber threat information does not sufficiently protect users' privacy." and, of course, on top of this, mr. president, there has been widespread opposition from a larger spectrum of privacy advocacy organizations. here the groups range from the open technology institute to the american library association. i was particularly struck by the library association's comments in opposition to this bill. i think they said -- and this is really paraphrasing -- mr. president, i think the library association leadership said something like, when the library association

cybersecurity and protecting the data of our customers, have opposed it as well, companies like apple, dropbox, twitter, sales force, reddi thank you. , and yelp have all said they oppose the legislation because it does not include adequate privacy protections. the trade association that represents google and amazon, facebook, microsoft, yahoo, netflix, and paypal said, "cis "cisa's prescribed mechanism for sharing of cyber threat information does not sufficiently protect users' privacy." now, reflect, if we might, for a minute, mr. president, on what that means. these are america's leading technology companies. they are advantage america because they are the envy of the world for their innovation and their way of serving, you know, customers and businesses, not just in this country but around the world. these companies that have millions and millions of customers and have spoken out publicly against the bill in its current form before these, you know, amendments are considered, they sure know a lot about the importance of protecting both cybersecurity and individual privacy. the reason i say