. >>> and dave elkington predicts the fate of the unicorn. and mike kray this week on "press: here." >> good morning, i'm scott mcgrew. my first guess this morning is a fellow named bob hammond. now, bob is, no kidding, one of the best bridge players in the world, but that's not why he's here. bob has also made more money off half-court basketball contests than anyone in the world. now, i know you're wondering how does a 77 man hold that record, and i am going to explain that to you, but first let's take a look at one of those contests. >> one shot. one car. a bmwi-3. let's hear it. come on for jason. here it is. one shot. brand new beamer. does he get it? yes. oh, yes. yes. yes. he gets a bmw i-3, jason from san jose. >> these are just the sorts of things that make everybody but bob hammond stand up and cheer because bob and his company sca promotions which pays for the car or free pizza or in one case a million dollars worth of furniture. bob hammond is ceo of sca promotions joined by mike cray and lura mondaro of "usa today." so you are th

marc: the rest of us were not talking about unicorns and that is what everyone is talking about, unicornstweeted, get ready for dead unicorns. and i am a fan of the public markets. i am. and i am a fan of public investors, like fidelity, blackrock, these are great investors. of course, they are going to make bets on private companies, that is appropriate. as i said, the mania, the unicorn mania is dangerous for our silicon valley economy. ♪ >> ♪ yvonne: welcome back. as we wrap up our show this week, more of stephanie ruhle's exclusive interview with marc benioff, chairman and ceo of salesforce. they turn to the accountability and responsibility of the ceo. stephanie: is it dangerous for companies, for ceos leading the companies with activists? you have a shareholders like fidelity and blackrock, but they are not writing public letters. look what marissa mayer is going through. can you run a company and do your job when you have hedge fund managers in new york behind desks, pointing fingers and shouting accusations? marc: yes, that is your job. that is what you sign up for. you are runnin

the unicorn mania going on. ♪ yvonne: welcome back.p up, more stephanie's exclusive interview with marc benioff, chairman and ceo of salesforce. the topic turned to the responsibility of a ceo. stephanie: is it dangerous for companies -- four ceos leading their companies when activist? you have big shareholders and have conversations -- canu but they cannot you do your job when you have hedge fund managers sitting behind desks pointing fingers and shouting accusations? your job. that's what you sign up for. that's not a mystery. your answer and to public shareholders. if you want to be successful today as a public company, let me give you some advice. you have to move from being focused on your shareholders to being focused on your stakeholders. that is what you create success. activist shareholders are a key stakeholder but let me tell you another -- customers, partners, schools.nity, your women are a key stakeholder in silicon valley. au better be ready to run multi-stakeholder dialogue. that's the key to bring a great today.g a grea

emily: there are many unicorns staying private.aybe we can pull it off. >> i wouldn't bet on the uber guys, spending money to make money. the ones that i mentioned that are expected to be in the pipeline are other types of business that we probably haven't heard of. things like act dynamics. these are not sexy names. are business software companies. they have shown some appetite for them. emily: i've heard of those. the executives have been on the show. appetite is there out there for companies like these less sexy companies? guest: if you look at the broader market they have done well this year. when you think of these companies coming to market and timing it seems now is a good time. the bankers and investors are going to be looking at the cost and saying what are the multiples we should grab. the newer ones, not the legacy companies have been able to grab these sexier premiums. some of these buzzy areas within enterprise tack with a new breed getting to the ipo track. emily: our ipo reporter alex, thank you so much for weighing

are we at peak unicorn right now?: every time you ask a question like that, somewhere a fairy dies. [laughter] steve: the unicorn fairy. you have to believe in them. i don't know. it is interesting how the private funding world is reaching valuations we have not seen before. since we had dfj focus on early-stage investing and growth stage investing that is way before the unicorn phase. we are fine if people want to invest at those kinds of prices. in fact, two companies i am involved with on the board just got offers at this new unicorn phase, so new unicorns are being born every week. but it doesn't really mean anything. i think what is interesting is that ipo window may be shutting. emily: is it closed? steve: it seems that way, certainly for biotech stocks. emily: i have to ask you about theranos. dfj was an early investor in theranos, now at a $10 billion valuation. do you stand behind theranos? would you invest again? steve: we definitely stand behind theranos in the sense that we are an investor and want them to

explain the concept behind "unicorn," real quick. unicorn veterinarian who is having to break the news to a birthday party of 12-year-old girls that all of the unicorns they just got are going to have to be euthanized, because they have eye infections. [ laughter ] and mostly she's annoyed when they interrupt her about, like, "oh, don't euthanize --" she's like, "let me finish my whole spiel." >> seth: and how would you say it went at dress rehearsal? >> i would say it went bad. [ laughter ] i would say it went the most silent of any sketch ever. and the whole week was kind of awful. i mean, her manager at one point was screaming at me. he was like, "we want nothing to do with any cruelty to animals!" and i was like, "well, we're not going to hurt any real unicorns." [ laughter ] and i'll tell you why. [ laughter ] >> seth: it was -- it was a lot of talk about that. and i remember, like, having to stress they were mythical creatures. [ light laughter ] but i will say, that dress rehearsal and air, as well, betty white was murdering like people were laughing so hard, the building was sh

are we at peak unicorn right now?ve: every time you asked me a question like that, somewhere a fairy dies. i don't know, it is interesting how the private funding world is reaching valuations we have not seen. we focus on early-stage investing and growth stage investing that is way before the unicorn phase. we are fine if people want to invest at those kinds of prices. in fact, two companies on the board just got offers at this new unicorn phase, new unicorns are being born every week. i think what is interesting is that the ipo may be shutting. emily: is it closed? steve: it seems that way, certainly for biotech stocks. emily: i have to ask you about theranos. dfj was an investor in theranos, now at a $10 billion valuation. do you stand behind theranos? would you invest again? steve: we stand behind them and that we are investors and want them to succeed, but we don't have the answers to the questions swirling around, which is can i give you an answer to the questions others have? him i can't do that. i remember meet

with dozens of unicorns, will we see new offerings? ready to default on that tomorrow. blame for the predicament. take a look at the major averages. >> major declines across the board. closing out what has not been strong for many investors. we are looking at .02 of a decline. we will not know if it is a gain or a decline on the year. >> and where we've seen transportation, where is that? >> we track it. not just performing, but underperforming by quite a bit. some of the individual worst performers, it's a pretty mixed bag among different types of transportation companies. these are down with oil prices and fuel prices down as well. typically, it would benefit transportation companies. it's one of the smaller railroads in the united states. david: let's stay on the market that went on a wild ride. i want to talk about the year. >> 11 of the days, it is 1% up or down. [talking over each other] you just make a running talley of that. it happened in august and september when the market was very volatile. we had some selling. andhink about volatility the fear index. but wh

unicorns. >> yes. can i say something real quick about jay-z? that reminded me of that -- we went to the actual marcy project. >> seth: oh, that's right, to shoot. >> and we shot, and the cameraman at one moment, jason vandamere was just walking backwards in front of me. look to your right, look to your left, try to look cool." and unbeknownst to him, like 12 young -- youngsters came out and immediately clocked, like "what the heck is going on here?" and right as we got to them, he said, "now start rapping." [ laughter ] and i said, "i'm not going to do that right now." [ laughter ] i don't want to do that. >> seth: this is a bad time for rapping. >> yeah, yeah, they're not going to like -- they already don't like me. [ laughter ] but sorry, yeah. >> seth: yeah, so "unicorn," i will say -- i have a place in my heart for this sketch. i love it so much. at the table read, it's one of my -- i laughed so hard. and it was for the betty white show. >> you said it might have gotten me rehired my second year, which, getting through the first year is har

so, i want to shift the unicorns -- from unicorns to rainbows.s a pot of gold at the end of the robe -- the rainbow. hasoes public and liquidity. raincorn. billion-dollar companies in health and the biotech sector. >> thank you. >> thank you. appreciate it. >> worked on the fall of the berlin wall and the china dairy of george h.w. bush. when we started the planning for the conference i communicated with jeff at the center and putting together this conference, i hope some representatives from southern methodist can join us. our three distinguished speakers have written extensive studies, professor of political

carbon unicorn. >> do you know the story about "uptown funk"?g quickly because x-factor in england had someone performing the song and she crushed it. so he put, they rushed it out. >> you mean he didn't write it? >> you should be our billboard correspondent. >> throw mine out there real quick. "cheerleader." it's a feel-good summer song. >> this is you. >> so much fun. >> it's got a caribbean feel to it. >> i think it's pornographic. >> all their bodies touching. >> my stomach. >> such a weirdo. >> dana? >> i love to bring country muse toik all of you so you can be a little more enlightened. so dierks bentley had one of the best songs of the year, 2015, "riser" a beautiful song if you haven't already heard it. co-written by travis meadows and steve moakler. who are fabulous writers. >> what is the song about? >> like you're a riser, can you get you know what done on behalf of your bride. >> whoa! >> what's going on here. >> that's not what i mean! >> is it the new cialis? [ laughter ] >> oh, my goodness. >> no! >> awkward. >> one clip for the h

emily: how many unicorns are there?definition of a unicorn is a company that is private and valued over $1 billion. in our portfolio, i would say we have at least three. what do you call them before they are $1 billion? emily: ponies. david: i hate to name names, but the three that seem they are dancing towards that value range, credit on rack, which is headquartered in the boston israel, which provides merchant acquiring on a global basis, and another one based in san francisco called fundbox, which allows small businesses to clear receivables and get financing easily and guickly through e-invoicin systems, like zero or intuit. that is a lending company. another one in payments, a company called zooz, and another one called yatpo. emily: are there any technologies that israeli companies are better at than silicon valley companies? where do they have an edge? shuly: anything related to data. as we know -- emily: that is quite broad. shuly: i think when it comes to cyber security, data security, analytics, things that to

could this be a sign of a brighter ipo market, or at least some unicorns next year?enmark partner of connectivity capital partners joins us now here at post nine. >> i think the advice people ask for tends to be consistent. they tend to ask for help raising capital. they tend to ask for help in staffing. they tend for help through scaling. when you have seen a shift is more people are thinking about strategies for how much do i raise, how long should i think i'm going to need to keep my current round open or more importantly, how much time should i plan for between rounds? >> i think that's half right. i think they're more common. i don't know if they've lost the stigma. i think that people are definitely much more open to the fact that that's a possibility, but no one is thinking i want to have a high valuation now so i can get a down round later. that's still something that is relatively frowned upon from a branding exercise. >> is there an eagerness to ipo in this environment? i mean, atlassian was just yesterday, and it was unique in that it went so well, or are

corey: what you think of the ultimate plans for these unicorn companies?in the new york times about a fallen unicorn in good technology that was supposed to be acquired by blackberry. fromhad to borrow money blackberry during the negotiations. it went out at less than $500 million when it was finally acquired. brian: if you have fundamental performance, you are profitable and your sales are growing. positive cash flow. then the ipo market is still very attractive. for 2016 it is not going to be bad if the market keeps going up. companies, if you have some realm of reasonableness about performance, you tend to do well in the ipo market. you may not get that market .aluations like twitter had those were really odd times. you can't expect that. if you are really growing and you have a good business model, the ipo market is still a very attractive choice. corey: we have seen these offerings where you see them selling such a small number of shares. they actually cash out. what companies you see on the horizon that may go out into this market? twillo,utanix, ube

michael: earlier, you said, is this the end of the unicorns? stillg funds, they are going to be very interested in a lot of the later stage startups. a lot of the write-downs recently have really been more technical. in reality, they want to be part of this market. this is still the less riskier side of it. the shakeout comes at the earlier stage, not at the later stage companies. emily: matt, you were nodding your head. thank you so much for joining us. michael wolff, you are sticking with us throughout the show. you are a former board member of yahoo!. watching,at we are uber and facebook teaming up in a way that might sound familiar to our viewers in asia. facebook messenger users will be able to summon and uber by tapping on a street address in a message. you can split the fair with friends -- fare with friends. wechat's to uber, owner has blocked over. -- uber. butterfieldstewart why he is giving away $40 million. our exclusive interview is next. ♪ emily: new data shows amazon's dominance this holiday season. amazon claimed more than 39% o

up next, it's not all unicorns and rainbows. at ally bank no branches equals great rates. it's a fact. kind of like playing the boss equals the boss wins. wow! hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you. >>> today's missing link. a beaten down sector that's made a nice comeback. it's up 15%. stephanie link, the portfolio manager with tiaa-cref, one of our colleagues as well, joins us live from new york city. i have to warn you, we could have this battle royal over mlps at any moment. let's talk some semistocks. >> my pleasure. >> what do you see that you like? >> well, i want to just highlight, i attended a conference last week. and what i heard was very encouraging. across the board, many

that said, i can't blame ted cruz for not being aware of the unicorn you because as everyone knows unicornshemselves to little girls who don't cry when mommies and daddies fight. (laughter) so i give cruz a warm memory. you got, this desi, lydics are winners. all right. next. governor chris christie, he made some big promises about di plom see. >> but i will tell you this, when i stand across from king hussein of jordan i say to him, you have a friend, again, sir, who will stand with you to fight this fight. >> chris christie says will stand across from king hussein of jordan and say i will stand with you. and king hussein will say, thank you, but i have been dead since 1999. (laughter) and finally, the most las vegas candidate on the stage. >> our country doesn't win any more. nothing works in our country. >> well, certainly not con domes, am i right? place plaws. >> our country doesn't win any more? do you follow women soccer? we win at sports that we don't even care about. (cheers and applause) and nothing works in our country? seal team 6, fast and fur yus of, these spanx are hold on pr

i know a unicorn isn't real, but that may be the point. so many of these valuations don't seem real between all the rachets and other provisions that are in some of these deals, they may never really be worth even $1 billion, let alone higher numbers. if and when they do go public, will we effectively be having public down rounds? >> i hate the term unicorn, by the way, but i think the valuati valuations are really high. there's many that were built on fluff and hype. you'll see many of those fall away, i think, and we've seen some of that happen here at the end of 2015. >> there's a big reason about employees having paid more in taxes on their shares than their shares ended up being worth at the end of the day. i'm wonder whatting lessons we should take away from that situation. whatsoever protections employees at many of these companies should be thinking about as they're negotiating or attempting to negotiate some of their compensation? >> that's a great point, kayla. i think a lot of these so-called unicorns have a ton of preferences,

emily: some want to hold you up as an example of a unicorn that had done it right.felt additional pressure from these comparisons to square and other tech unicorns? >> we cannot make any comparisons. i think we build a unique company. collaborate and be more productive. we spent a lot of money on retail development all the way through 10 years of profitability and passed growth. i do not know if you could use our company for other tech ipos. youy: bill told me to tell he is remarkably impressed with the business you build. for othere you have private technology companies out there about how to manage cash, and unit economics in this environment? >> we have always been a disciplined and patient company and tried to focus on the and balance sensible levels of growth, president -- profitability, and cash flow all at the same time rather than putting all the chips in one basket. i advise entrepreneurs to remove or you're running a marathon and not a sprint and discipline. emily: we are seeing a lot of private technology companies waiting longer and longer to go public,

a lot of people suspect the ipo today could open the market for some more unicorn tech ipo's.ust 17% of tech companies that have gone public this year have been profitable. here we are again, henry, with another litmus test, right? another case study on whether unicorns can do this and do it right. >> this is an easier one. this is a great company that has been making money from the beginning. they have this wonderful enterprise model where it's individual users are distributing the product to each other. there's lock-in what you find is the longer customers in the company. the more they spend, so new customers are driving it. more from old customers. it's profitable. it's a great company. it's worth something. it's just a question what investors are going to pay. >> john, do you see it as much sunshine being shown on this one? >> yeah. i mean, it's indicating now at, let's see, 26.19 or so. considering that this was expected to price between $19 and $20 a share, $26.16 we see on the screen now, that's impressive, and i think the real question with this one, i mean, it's boots

we believe in early-stage investing that is way before the unicorn phase.are fine if people want to invest at those kinds of prices. there are new unicorns being born every week. it doesn't really mean anything. that ipo window may be shouting. .- shutting emily: i have to ask you about theranos. would you invest again? steve: we don't yet have the answers to the questions that are swirling around now. remember meeting her when she was still a stanford student. was it homes. .- elizabeth holmes i rather my partner tim saying she is like steve jobs. she had that mesmerizing zeal to revolutionize. the entire field of medicine. these special kinds of needles and things. we wrote a $500,000 check before anyone else. she has been somewhat independent. i do have the answer. emily: you want to invest in breakthrough technologies. how do you have the earliest stages separate something possible from something impossible? steve: there are people walking in every day where someone has an idea that is equally exciting and you keep hearing about the potential. scratchin

that's what's happened to the unicorns.y -- the value of these private placements has gone up to tens and billions of dollars over the last three years. isn't it through that these fidelity's over the world, not only are they marking up valuations, but are also asking for protections? mr. janeway: that's right, they are looking for downside protection through the ratchet to produce fundamental conflict, not just with the earlier investors but with the entrepreneurs and talent. this is where -- that's one source of watching out for how the bubble deflates. sooner or later there is going to be one or two different kinds of a march towards reality. betty: is this why they have been getting marked down? mr. janeway: there is a joke now that square is the rome up -- role model for this, the ipo is the new ground round. whenarked to reality is the shares get valued in the trading market, and active trading market with liquidity. that's where you can see that with liquidity they are worth less than when they were ill liquid. soone

there are unicorns that are not real, valued based off of page counts. think they will go away, they will die. companies like dropbox or box, annuity businesses, i have my executive team, they have all been through ipos. i love this. emily: thank you so much for joining us. back with moret of "bloomberg west." ♪ exec: another google maps jumps ship for uber. formerly director of product management at google maps. at uber, he will eat its mapping unit -- he will lead its mapping unit. my next guest has a long history in the business, having run google's geo-division. he then took that experience and built a game making position within google. the first company spun off in the alphabet restructuring earlier this year. why did you guys split off? >> what we were doing made more sense as a separate company. emily: how do you go from running maps to running games? >> what we are doing in the gaming industry is based on maps. we are doing real-world games, you play them outside. the fundamental technology builds on that foundation of maps emily:. emily:mapping