talk to us about soundcloud. >> soundcloud is this thing from -- distinct from all these other ones.spotify or apple music, paid or subscription streaming service, they just have 30 million songs on-demand, but it is the same catalog everywhere. what made soundcloud distinct when it started in 2007, was that it was this playground for artists and true music fans where you would see musicians upload raw cuts or demos or something they were working on that they wanted to show fans before it was ready to be released, and that proved to be incredibly popular. soundcloud has more than 100 million users. at times, close to 200 million. but what they really have struggled to do is turn that into a business and make money from it. advertising off of audio is difficult, so they realize they would do what they could to improve the audio business -- advertising business, but they also needed to have a paid service. they tried to create one at a lower price point than spotify and could not get the music industry to sign on, so they finally introduced this paid service in 2016, but these other se

soundcloud, talk to us about soundcloud. is distinct from all these other ones.le music, music about a paid or a subscriptions granting service -- streaming service. same catalog everywhere. what made soundcloud distinct in 2007 and for the years after that was that it was a playground for artists and for true music fans where you can see musicians upload raw cuts or demos or something they were working on that they wanted to show fans before it was really ready to be released to the mass public. that proved to be incredibly popular. soundcloud has over 100 million users. what they really have struggled to do is turn that into a business and make money from it. advertising off of audio is really different -- difficult. to improve the advertising business. they need to have a paid service. they try to create one at a much lower price point and spotify at about four dollars a few years ago and could not get the industry to sign on. they finally introduced this page service and 2016 -- in 2016. by that time, other services had taken off. they had nothing to offer th

fans get the tracks from soundcloud. one guy has made ate literal sound cloud. >> this is the work of ate guy named jamie campus. he glued chinese lanterns together and installed sensors. and the sensors allow him to change the colors when he claps. he also dressed the whole thing up to look like an actual cloud. and it also allow hem to control the color, brightness and sequence of the lights. >> he made a real life sound cloud. >> does look like a cloud. >> we rigged our lighting to try to make it. >> give it a shot. >> yeah, one, oh, wow. ♪ deon't let me down ♪ >> look at that. oh, my god, all the tinlts. that is beautiful. we keep it the se tone. but at least we have it. >> can we do the whole show like this. ♪ don't let me down >> wow, that is pretty. brilliant. >> i got one. ready? >> wow. look at that. that's great. let's see. wait. oh. >> uh-oh. >> what did you do? >> did we break it? >> break the whole thing? >> oh, boy. are we going to be purple for the rest of the show. >> wow. all right. coming up -- well we

alarm bells coming from soundcloud today.he online music company warning ifrisks running out of money the service doesn't gain traction. 250,000 compared to spotify's 40 million, or 20 million for apple. it has already explored a sale of the company. that is your business flash update. we want to stay with company news intake a deep dive now. find ourr that you can search using the function at the bottom of the screen. i am taking a look at macy's. it is cutting jobs. the holiday sales have been disappointing. i wanted to take a look at how macy's stacks up. what you will see here is that the same number for the third quarter -- again, macy's only pre-announcing the fourth quarter. they have been reported with a drop of 3.3%. it sounds bad but it is doing better than its peers. its peers have a low of a 7.4% decline. following on that, the margin at macy's is much better than its peers. 12.5%, near the high of the rate. the median is somewhere in the neighborhood of positive 6% or so. you can come if you wanted to, .ook at mo

soundcloud may have to raise additional funding to meet financial obligations.oftbank's global technology fund. they want to raise $100 billion. saudi arabia may come up with half of that. apple will invest $1 billion. that is your bloomberg business flash update. david: donald trump's pick for secretary of state has disclosed assets worth as much as $400 million. rex tillerson's personal investment portfolio includes stakes in exxon and competitors. this and a 38ll page filing. what else did we learn? what's interesting is how much of his wealth is tied to exxon. he has some stakes in his competitors, which is very interesting, including shell, opec -- one company he does not own any shares in, bp. how will he extricate himself from this huge portfolio he has? tina: a lot of it has to be sold for cash. dekes on chairs have to be put into a trust. aboutare open questions how he will go forward and handle the job which involves -- which expands the globe. david: put this into the context of the confirmation process. was he required to detail all this? what's next