Skip to main content

tv   Bloomberg West  Bloomberg  August 6, 2015 4:30pm-5:01pm EDT

4:30 pm
emily: mark pincus gives us a view of where his turnaround investors exist. where the companies that are seeing growth summit. ♪ i'm emily chang and this is "bloomberg west." coming up uber heads to court over whether its drivers should be classified as full-time employees. we just caught up with the company's lawyer. plus, corn companies wreak havoc on traditional media -- corn companies we count on
4:31 pm
traditional media companies. all of that ahead on bloomberg west. zynga shares are down in extended trading. second-quarter sales and earnings per share beat the street, but monthly active users continue to drop. joining us is chris paul mary in l.a., and dan the cofounder of molecular in chicago and lewis on the phone. chris, i will start with you. 100 million users last quarter down to 83 million this quarter. that sounds significant. chris: it does sound bad, but part of mark p gives's strategy -- mark he gpinkus's strategy is that there are not as many games available for players. emily: he returned to the company in april. what sort of lose to you get about how he will turn his
4:32 pm
company around, or if it is even possible? chris: i think it will be -->> it has been a tough slog. i think they are focused on some core franchises and some core genres that make sense to me, but it is difficult because they are relatively late to the mobile game and it's hard to make headway. other companies are already dominating the download and user charts. emily: this is a hit driven business and it seems like gamers have moved on from things like farmville. what about some of the new games, new words with friends? are these doing well? dan: the majority are not doing too well right now. if you look at the top app charts, you do not see zynga in the top 25 or even 50.
4:33 pm
think it is not doing well comparatively speaking. emily: what is the likelihood chris, that zynga can pull another hit out of his hat? chris: it's another earnings report that if you are bullish you see hope, and if you are a critic, there is a lot to worry about as well. there is a strategy focusing on core. they just announced a believe longer slot machine game. -- a willy wonka slot machine game. emily: what about the newer games excited to come out later this year? dan, what can you tell us about those? dan: they are doing a new farmville game. that title has been very successful for them. but these numbers keep going down with the multi-active users. the new battle games they are coming out with, it will be interesting to see.
4:34 pm
but i'm not sure they will meet expectations compared to the other casual games in the market. emily: lewis, are you more optimistic when it comes to having another hit? lewis: i think the natural acquisition is beginning to pay off. they also have empires and allies, which is trying to go get more those -- more of those lucrative gamers. they've done pretty well. that with also shipping back to amazon in terms of infrastructure. that could help with some of the cost. it will propel them in a positive direction. you can take the quarterly results and read them in a positive way. emily: we will continue to watch the headline. we will be listening to the call with mark pinkus at the top of
4:35 pm
the hour. thank you all. a long list of media companies reported earnings this week and investors are binding -- finding plenty of reasons to worry about the future of traditional tv. disappointing quarterly results from ansi, viacom and others viacom had the lowest numbers. disney also sliding 11% yesterday following its report. what is facing all of these companies? the emergence of skinny tv bundles and streaming products. cord cutters cost $50 billion in affiliate fees. there is one winner in all this, and that appears to be netflix. it is one of tvs main competitors. still ahead, keeping drivers at contractors instead of full-time
4:36 pm
employees. we will hear from uber next. ♪
4:37 pm
4:38 pm
emily: car hacking. tesla is one of the hardest to hack into. two researchers will unveil their research on what it took to gain access to the car. they were able to hack into the cars system, but needed to have
4:39 pm
physical access to the vagal and directly connect its -- to the vehicle and directly connected laptop to the computer on board. uber is back in court today to determine whether drivers should be classified as full-time employees or contractors. a san francisco judge is deciding right now whether to grant class-action status to drivers. if the judge grants class-action status, uber will have to reimburse for things like mileage and tips rather than just the three drivers in this current suit. we spoke with one man involved and asked him how it could affect the business model. >> today we are looking at 300,000 drivers -- 3000 drivers in california.
4:40 pm
most of the drivers want to keep things the way they are. i'm looking forward to getting in there and arguing today. emily: a lawyer for the plaintiff did not immediately comment on the hearing. but they did respond to ted boutros. >> even though the comments that we estimated from drivers saying they do not want to be independent contractors, the plaintiffs said they don't care what they want. they are saying, we want to represent all those people. it is irrelevant that they don't want us to represent them and they don't want to seek what we are seeking. you cannot have a class action in those circumstances. emily: ted boutros is uber's outside counsel. what is the bigger impact on the economy? joining me is the cofounder of a
4:41 pm
food delivery startup. you guys just announced today that you are reclassifying your workers as employees. why? >> that is correct. brady sp --rig started with one in to make it professional and we want consistency of experience. emily: does not make it more expensive? >> there are increased costs, but we do not make our money solely off the fees associated with delivery. we make our money off the food we sell. we are not as line upon the cost as another company might be. emily: eric, what is at take forever -- at stake for uber? >> independent contractors, they can raise or lower flexibility. it is much more affordable for
4:42 pm
them than full-time employees, or employees that would likely require them to pay social security or health insurance. emily: you are talking about paying taxes, paying benefits reimbursing for mileage or tips. potentially thousands of dollars per employee. and uber driver can decide when to go to work, how long they work for, whether they do it for a day or three months. or they could take a three month break. they really have a lot of flexibility. a sprig employee, they have a different situation. >> that is right, i think they have different situations and relationships with their employees. i will not weigh in on the legal argument, but it may make sense for uber to have independent contractors while we have employees. emily: what you think? >> it is a thorny question.
4:43 pm
they can work for a number of on-demand economy startups. they have the flexibility -- emily: they could work for multiple driving services. >> andover's argument is that every driver has a different situation will stop -- a different situation. maybe one driver meets the complicated definition while another does not. rather than a class-action lawsuit, let's just look at these three drivers and the. emily: we are expected to get some sort of indication about which way the judge is leaning if, indeed he says this is a class-action suit. will other states follow suit question mark how big could this get --will other states follow suit? how they could this get? >> california is pretty vague. that's pretty big. -- california is pretty big. it's where they launched.
4:44 pm
emily: and we need to point out that there is one lawyer that has been targeting a bunch of sharing economy companies. home joy, which is a home cleaning company, said, look our business died because of these lawsuits. were you at sprig worried about this suit coming to you? >> certainly, the public perception provided us with a lot of information as far as understanding the issue, but we treat our people well and have not had any lawsuit. this is about developing a better relationship with our servers. emily: you have been talking with uber investors who has said the company could survive this. what are you hearing? >> as new as it is, uber is pretty entrenched. it is way ahead of lyft in the u.s. they are seen as the incumbent.
4:45 pm
if the government makes it harder through the rules for their employees, they will figure out how to make it an advantage over anyone else who might try to take away the big role in the market they have eaten up. emily: a judge in the lyft case came out and said, they don't seem like contract employees or full-time employees either. and one said, what if we thought of them as owners rather than employees or contractors #and you explain that?-- or contractors can you explain that to me? >> there has been a lot of middle ground that is with debts where you are not a contractor or an employee. senator -- there is a lot of middle ground where you are not a contractor or an employee. senator mark warner has asked
4:46 pm
questions about that. you will see that it will continue. emily: do you think about the future and longevity of your business model? how sound do you believe it is? >> i think we are redefining the food industry, and in doing so we have a $2 trillion market in front of us. i think the business is pretty sound. we have access to healthy, organic meals within minutes. emily: what is on the menu tonight? >> i was just looking at the lunch menu. we had a pork burrito. it's usually unhealthy, but we use all-natural ingredients and we use a lot less flour than a traditional tortilla. it allows us to provide a much healthier dish. emily: i know you will be monitoring any headlines coming out of the courtroom about uber today. thank you both very much.
4:47 pm
we walk robotics, the wearable exoskeleton for individuals with spinal cord injuries announced today that second-quarter growth was slower than expected. the doc was down 2.3%. we got reaction from the ceo. >> the primary focus is not a lack of people that want it . is a lack of getting people to pay for it. we have a strong internal reimbursement group to take everything from zero to finish for every individual and to help them through the process. we are trying to get insurance prices to be predictable and quicker. we currently have 70 users are -- users who are using them every day. and we have roughly 100 systems that are used in rehabilitation and training centers around the world. it is clear that the product
4:48 pm
makes a substantial difference in the health of an individual. the data is all very positive. the next thing is mostly working on reimbursement. we don't forecast the time frames, but we believe very active. -- we will be very active. emily: that was rewalk robotics ceo larryjasinsky. coming up, we take a look at why a key settlement deal falls apart. and one expensive ticket to ride. nasa reveals how much it is paying russia to keep using their rockets in space. ♪
4:49 pm
4:50 pm
4:51 pm
emily: it's time now for the daily byte, one number that tells a whole lot. today's byte is 400 and $90 million. that is how much -- $490 million. that is how much nasa is paint for its extension -- paying for its extension with russian rockets. we knew it would have to extend his contract, but did not know until now how much it would cost. that works out to 81 point $1 million per seat -- $81.7 million per seat. nasa is hoping to have u.s. commercial crew vehicles in service by 2018, but there is a three-year leadtime for flights. googled antitrust fight with the eu continues. where did google go wrong?
4:52 pm
the biggest miscalculation, it assumes a deal with the last commissioner would eventually come through. and it didn't. and what's more, the eu investigation has snowballed under the new leadership. i'm speaking to the managing director of the antitrust advisory boutique premerio. can you tell us what you think went wrong? why was google so sure a deal with going to happen and why did the last commissioner failed to get the support he needed?good seeing you again , >> emily. it's a good question -->> good thing you again, emily. it's a good question. i'm not sure anyone can say anything really went wrong. if the nature of the beast in politics -- it is the nature of the beast in politics and is
4:53 pm
inherently political. while the predecessor wanted to get his settlement with google under his own belt command under his aegis of the dg comp and wanted to resolve this big case, he failed. as one of the prime reasons, one must look at the brussels lobbying that went on behind the scenes. a lot of lobbying occurred both from the google plex as well as its competitors. emily: let's talk about the lobbying. the businessweek story focuses on this guy who basically spread this idea of fear of google. tell me about that. and dress -- andreas: there. he used to be in charge of enemy and -- of energy and now he is
4:54 pm
in charge of the digital economy. and they are launching a sector wide investigation into digital marketplaces at the moment. it is a hot topic. what does he have to do with this? you might say google competitors and detractors even here in the u.s. have used both the commissioners as well as the commission itself in terms of the enforcement powers, as a cap -- as a cat's paw, if you will, because they decided not to bring formal charges and decided to agree to the voluntary terms that google proposed. whereas the european commission is now being used, if you will, by the lobbyists to bring charges. emily: and we should point out that other u.s. tech companies are part of this complaint from
4:55 pm
expedia to yelp. but the new competition commissioner it is interesting that this investigation, this pro has gotten even bigger. -- this pro has got even bigger. -- probe has got even bigger. should other companies worry? andreas: on the one hand, you're right. i would not necessarily say it is a general trend at the european level to fight or otherwise undermine american companies. i'm not saying that i'm right, but my opinion is that it is infighting all across the board. as you pointed out, the detractors of google include microsoft and all of the others you mentioned, and those are american companies. are we being targeted? i'm not sure. our new economy companies being
4:56 pm
targeted? probably yes. and there is a certain sense -- and the story also mentioned a very well known and old-school german publishing house. you have to look at these entities that are bringing complaints the have missed the digital boat if you will, and are now trying to use antitrust or competition laws to get back on the bandwagon and get a competitive advantage. emily: we will be following how google comes out in this legal battle. thank you so much for giving us back story. the first republican presidential debate is tonight. the #gopdebate has been trending. snapchat will be carrying photos throughout the bait -- and the debate and featuring them on my story. we'll be watching.
4:57 pm
i will be live in vegas tomorrow. ♪ . . .
4:58 pm
4:59 pm
5:00 pm
al: i am al hunt. john: and i am john heilemann. and "with all due respect" we are getting our last here in cleveland. ♪ john: happy thursday, sports fans. in our lineup tonight, the suez canal gets an addition. but first, the republican debate. tonight it is all about king trump and his subjects. we are here at the quicken loans


info Stream Only

Uploaded by TV Archive on