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tv   Bloomberg Technology  Bloomberg  February 7, 2017 5:00pm-6:01pm EST

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entry to seven predominantly muslim nations. the decision could be rendered later in the week. it is currently hearing arguments from justice department lawyers and opposing attorneys. betsy devos has been confirmed as u.s. education secretary. she is a longtime gop donor and squeaked through after mike pence cast a tie-breaker, the first time a vice president has done so for cabinet member. jeff sessions has cleared another hurdle in the senate to be the next u.s. attorney general. that is after the senate voted 52-47 to move on the nomination. he is expected to be confirmed on wednesday despite democrats opposition. this weekend, president trump will host the japanese prime minister. trump will host him at mar-a-lago. the trip is ays testament to the close relationship between the u.s. and japan. global news 24 hours a day, powered by more than 2600
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journalists and analysts in more than 120 countries. this is bloomberg. "bloomberg technology" is next. ♪ ♪ cory: this is "bloomberg ." hnology it disturbs and the force of disney, we will break down the first quarter earnings. crackdown on hate and harassment. and meeting the makers. we are live from the .17 makers conference and we have aol's ceo. dippingisney shares after hours.
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the company reporting its first-quarter shares fell short of estimates. the revenue shank -- shrank 3% year-over-year. espn had a lower viewership. the result ofn the cable operations. theme stocks were a bright spot and were 13% higher than one year ago. joining us is paul sweeney, our intelligent structure. off of bloomberg and the take was the numbers weren't terrible but not superstrong. paul: we will call it a mixed bag. what disney has set up the street for, fiscal 17 is going to be a trust -- tough profit growth quarter. at espn, thatct is a new contract, $600 million in expenses, tough of cost
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comparisons. in the film entertainment business, they are only releasing seven films this year, they typically release about 11. that will be difficult, as well. and we have challenges at espn dealing with subscriber losses and the impacts on affiliate revenue and advertising revenue. the company is suggesting, if you look past 317 into 2018, the cost comparisons will be easier, they will have 11 films in 2018 including four from marvel, a couple from star wars and three animation films. they're trying to set people up to look at 2018. the stock today is down a couple of percent and mixed numbers, that is suggesting for the near term. cory: it seems like it picked up a little bit. cost?just about
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it is a remarkable story over the last 10 years. paul: the company did disappoint a little bit on the revenue line. that really calls into question the number one concern for investors, the cable network business, principally espn. when you start to lose loweribers, you have advertising revenue and lower affiliate revenue. a fixed cost business like espn where you are locked into long-term contracts, that is not a good profit outlook. investors for disney are sensitive to the top line because a lot of the costs at this company are fixed in nature. cory: disconcerting. are they losing the subscribers because of cord cutting? is that the reason for the loss? that would be really disconcerting.
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this --ey highlight highlighted this trend in 2015. we know that cord cutting is occurring, all the cable networks are experiencing a 1%-2% decline in subscribers every year, including espn. it is a fundamental issue all the networks have to deal with. do they get some of the subscribers back in the skinny bundles or going direct to the consumer with a service like hbo now? are they going to get some of those subscribers back? , andis uncertain right now i think investors are sensitive to the subscriber numbers and revenue numbers. cory: check out what bob iger had to say. i've been with this company
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43 years and i have been ceo from almost a dozen years and i will do what is in the best interest of the company, which the board will help determine. i'm confident my successor will be chosen on a timely basis and chosen well. if it is in the best interest of the company for me to extend my term, i am open to it. -- paul: i suspect he will board will he find someone internally or externally who can fill his very big shoes. the challenge for the company is they do not have a very big -- good succession plan. the 11th to, but at hour they were not able to confirm tom stack. there in uncharted territory. the good news is that bob iger will stay on. i like him personally. he has done an incredible job.
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i want as you about twitter. one of twitter's issues is abusive tweets and so on. what you think it means for their business? crackgood for them to down on this in new ways, but from a business standpoint, i wonder what you make of this and doesn't matter if we look at it as an investment or business? paul: i think it is the moves they had to take from a business perspective. they are trying to grow their user base, and it is perceived as a somewhat hostile platform and they needed to address that issue. they want to increase their user base. if they increase the user base, you increase advertising, and advertisers want to make sure their advertisements are being displayed inhospitable environment. this is something that had to do from a user experience in advertising perspective. and you can make the argument
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that they had to make this move that to the extent they ever want to sell themselves to another company, say to disney, they need to clean up their act in terms of some of the content on their platform. cory: do we expect revenue impact? might this help them make more money? paul: this is very much a wait-and-see situation for twitter. the company has tried a number of product enhancements, technology enhancements to make it easier to attract new users. we just have not seen in the user numbers. this is a company that is going have to deliver before the street will buy off on it. cory: paul sweeney, thank you very much. coming up, we talk to susan lyne, and venture investor coming live from the makers conference. after this. ♪
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cory: this year's makers conference is currently underway in california. caroline hyde is standing by with susan lyne in sunny southern california. great to see you. the sun is peeking out here. i am joined by susan lyne, president of a venture company. it is fund backed by aol. many of our viewers will know her. she was the ceo of a wellspring group and was a tech entrepreneur herself. great to have you here with us. susan: thank you so much.
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caroline: talk to us about the state of female entrepreneurship. is womene good news are starting companies at an extraordinary rate. companies with00 a female founder since we started our company 2.5 years ago. obviously that is not all of them. this is a very fertile arena right now. that the vcis world, the legacy pc world still does not have the network to reach into this female entrepreneur base, and women are only getting about 10% of the venture capital that goes to startups in this country. we looked at that and said that as an opportunity. if women are the dominant consumers, and there are more and more women coming out not --t of engineering scores
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schools, but with real vertical expertise, we should be backing the best of these because they understand the into user. caroline: what would be the tipping point for vcs to see talent coming into their own hemisphere? already proves that if you are an s&p 500 company, it tends to be female lead. what is the data not showing for the typical pc right now -- vc right now? susan: it is less about what the data shows. a lot of companies are in early stages. it can take 5-10 years for company to show what he can become. seeingthink what you're is that there is at least a recognition that they need to open up their partnerships, and ,everal of the most storied vcs
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sequoia for example, they just brought in their first funeral partner. caroline: just now? susan: it is understandable on a certain level. most of the early startups were selling to large technology companies. they were enterprise plays, and being able to talk to the guys working at those companies was important. changes and asd technology becomes a part of every company, there is a bigger world out there and opportunities. keyline: a lot of the startups in silicon valley have been led by immigrants, as well. how are you seeing the trump travel been coming into play and how is it affecting females as well as immigrants? we only invest in companies that are u.s. based,
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there are certainly plenty of founders who have come to this country to go to university, really, and stayed, and they are starting companies now. that thiso question particular sector, the startup world, technology startups would be impacted dramatically by this ban. caroline: you spoken a lot cycle,out the election think social media, you social media is becoming accountable? everyone, whether they wanted to take responsibility for the outcome of the election or not, i know for a fact that every company what theired hard at
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current policies were, how they could make sure the echo chambers were opened up if that was a problem, and all of them have gone after the fake what tr current policies were, how they could make news problem, as well. think -- nobody is being cavalier about this. problem everybody recognizes, and i think they are doing a pretty good job of trying to find solutions. caroline: we are here at the makers conference, we can hear the music and shouting behind us, more than 500 women. it is all about relationships and storytelling. it feels optimistic. are you optimistic about the talent pool currently coming through about the stem subjects coming through as an investor? susan: i am optimistic about a lot of things. i'm optimistic about this conference. everybody talked about it coming in as the meeting after the march.
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if you are in d.c. and in any of the number of marches around the country, it was such a spectacular day. it was one of those days that remind you of how much progress has been made and what a unified group women in the united states are, and women around the world right now. the message was very simple, we are not going back, right? great about an gets peoplehis, it thinking about what that is like in practice. what we need to do going forward to make sure our daughters have even more opportunities, and area ofy in this entrepreneurship where you can create your own company, that is key. it is an arena that we need more women in.
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women are natural problem solvers. take any consumer problem out there, and there is a woman, i promise you, who is working on a solution for it. ways for morefind women to understand how to use technology in order to solve problems, and then getting more , more investors interested in supporting the next generation of women to do that is great. susan lyne talking solutions, and we will be talking with tim armstrong of aol who is been focusing on equal pay and other areas that can be a force for promotion of women. great stuff. thank you very much. news -- carl that is leaving his company, but he is
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here to talk to us after the break. this is bloomberg. ♪
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carl bass is joining us. this jobave been doing for a while, i've been seeing you for the last 14 years. it has been a while and this was in the works for a while. investors have been asking for some changes. it seems like they finally started to see your plan was working. i think they as well as
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the rest of the investment community. if you look at stock performance over the last year, stock is probably up 60%-70%. 44.26%. -- bad, that was ebay. you were right. carl: help me out a little bit. investmentsactivist as well as the rest of the community. they came along at the trough as worst in thet the company was vulnerable. i think we have proven out over the last 12-15 months he had a good, solid plan and things are going well. they figured they could move on. leaving,n planning on i have decided it wasn't a good
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time to leave and that stable leadership would be helpful. cory: you got the full one-year until, from february 8 the end of the day, 95%. a good number. carl: investors are happy. more importantly than the day-to-day returns are the long-term plans. the other important thing we have been doing is moving all of our engineering software to the cloud. cory: you've seen companies left by the roadside as they have not made that change. carl: i think whenever you look at a technology platform transition, mainframes to workstations or windows comes or mobile and cloud, that is when companies get left behind. a strength becomes their weakness. i think we moved early and decisively. some people thought we were being rash, investing so much ahead of it, but it has been
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borne out by the result. cory: do you think we're going to be in an atmosphere will itld -- where we will see lower across the board because it is being offered a different way? carl: we moved from a perpetual license to a subscription business so we now have an annual subscription, which means over the course of 3-4 years, customers pay more but the upfront payment is lower. that is why the financials of course the short term. if you look at the balance sheet alongside it, you see the move -- money has moved. cory: it seems to me at least that, maybe because you're right across the street, you offered a lot of new products that really take advantage of things you could do in the cloud that you could not do before that open you to bigger markets. carl: we think about it, the thing to do when you get this opportunity is not to repeat
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your last act in the new way. don't take the old idea and do it in the new platform, think what can you do that is different than what has been done before? what customer problems can you solve? i think we've done a good job in the world of construction, we have taken things to the jobsite that weren't there, in manufacturing, we have allowed supply chains around the world to collaborate. you talked about our move into manufacturing. cory: 3-d printing. carl: yes. we look at what we could do differently. lots of ceos when they say they want to spend more time with their family, not you. carl: i wrote a note to the troops this morning and i said, you presume that your family wants to spend more time with you. i joked that i would spend more time in my studio and working with my robots. cory: more time with your robots, good for you. carl: i will see you at the
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local restaurant. cory: congratulations on a great run. we appreciate you coming by we know you're busy. up, tim armstrong live from the makers conference. this is bloomberg. ♪
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strong and secure. good for a door. and a network. comcast business. built for security. built for business. >> you're watching "bloomberg technology." u.k. house of the commons has apologized to his counterparts for overstepping his authority after announcing yesterday that president trump would not be allowed to address rish parliament.
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he agreed he should have consulted upper house lawmakers before issuing the ban, but maintains he was right. a video uploaded by a rebel run media outlet show the aftermath of several airstrikes today that -- a rebelel held held syrian city. the impacts were some of the most intense since a cease-fire with into effect december 30. russia denies its planes launched the attack. vladimir putin and angela merkel have called on rebels to cease-fire in ukraine. it is their first phone call since hostilities killed 33 people last year. the yuan says some 30,000 people have returned to neighborhoods retaken from islamic state in .ultiple -- mosul iraqi forces declared the
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eastern half of the city fully liberated last month. the western half is still held by the militants. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. p.m. inst after 5:30 tuesday here in new york, 6:30 wednesday morning in hong kong. here is a look at the markets. let's start in new zealand. it is trading flat. it looks like investors are looking for direction so far in traits this morning and also looking head to tomorrow, whether is a big decision expected. futures, they are looking a little mixed, the pound is point to a slightly higher open. japan, we have some data out today.
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we have some expected later this morning. change fromtle november to december. the syntel vegas is expected to make a decision on rates. -- central bank is expected to make a decision on rates. that could be a cut from 6%. the corporate world, we are expecting results from nintendo, softbank and the bank in india. more "bloomberg technology" is next. ♪ ♪ this is "bloomberg technology." disney earnings, shares are down. there is some weakness in the
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fallingthis, showing membership. they have suggested to investors that fiscal 2017 with the modest earnings growth. themepark profits are up 13% to over $1 billion. ceo bob iger confirmed he will remain with the company beyond his scheduled june 2018 retirement if it is good for the company. back to live coverage from the makers conference in california. caroline hyde is standing by with aol ceo tim armstrong. caroline: i am indeed. a little bit from his bio. senior executive of google. even cofounded a newspaper in boston. all reallyirst of hit what you are announcing here
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at this female leadership conference. of are at 50-50 in terms female-male executives. how did you do that? as a brain was our first really investment -- real investment in women. there are 4500 women stories on makers, the largest catalog online of women's leadership stories. you want to lead as a company in this space. with ourar to us executive and up-and-coming executives, we asked them if there was one thing we could do to send a message as a company? they said, could we get to 50-50 gender at the top of the company, and we made a commitment to it. we sat on stage about an hour ago, and we are in the process of getting the company reestablished, we are recruiting .
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by 2020, we want to be 50-50 across the board in our executive team and top management of the company. it is a bold goal but we will figure it out. and equal-- caroline: pay by 2020. give us the step-by-step approach you need. tim: we diagnosed the issues we have around it, and i think it starts outside the company with a lot of fools -- pools where we get talent from. we need to get our talent efforts into -- recruiting efforts into bigger pools. i said, let's go faster, we cannot go to the same areas, we are rewiring our recruiting. secondly, at the company, when you come in to interview, we have to represent what you think the company is an what we will be doing. if you are a female executive coming in, part of the interview
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with sure -- should be you meeting with female executives. the last part is internal development process. a female executive and you want to move your career along in general, we have to put the fundamental steps in place, which we have been doing to do that. our plan over the next 2-3 years is to put a plan in place, we are going to do a deal around this issue and we announce that today. you're serious about it, just like any other start of issued you deal with, we will figure out how to do it and our employees are engaged and excited. how: -- caroline: optimistic are you about the yahoo! deal? talente yahoo! brand and , i think the brand remains a brand we care about as many people care about around the
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world. the talent, we have had great experience with them with the integration process. caroline: that is going well? tim: it has been on track. they had the data breaches. a,re waiting for information from yahoo! on the second breach and to find out if there it are any changes -- caroline: a timeline on that? by q1 we'll have more information. we can sit down with them a discussion in a -- and discuss in a coherent way next steps. i'm hopeful the deal closes. we have a high appreciation for yahoo! overall, we just want to figure out if there are need to be changes based on the breaches. caroline: the driver for yahoo! is to bring on more web users. google dominates the space your can you be the number three player?
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tim: we bring something unique to the table. google and facebook are gold medal athletes. they have done a very good job and continue to do a good job. the one space we want to be an olympic athlete in is the brand space. the same way google cares about search and facebook cares about social, we care about brand. social networks with fake news and things like that, and the search space where people have been -- it is more ai menus are directed, brand has become an important role. we want to have a brand advertising system that really helps find new consumers for customers and pushes them all the way through the conversion funnel. facebook's social, google's search and we want to be brand. isrything we are doing around brand and we are really excited about the future of advertising brand for digital, because it has not really been
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cracked yet and we are one of a few companies that can do that. caroline: thank you so much, it is wonderful to have you. it is a joy. thank you so much. ceo of aol. you: good stuff, thank caroline and tim. come in's have lined up against president trump and san francisco continues to be the front line of the fight. this is bloomberg. ♪
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cory: facebook expanding paid leave for families facing hardship. sheryl sandberg spoke about why. >> this is personal for me.
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i lost my hunt -- has been suddenly almost two years ago and facebook provided me the flexibility i needed and we are doing even more. cory: it will allow for up to 20 days in the case of an immediate family members death and today's for extended family. san francisco has become ground zero for the debate over donald trumps immigration policy. san francisco's night circuit court is deciding its fate. leaders from the tech sector for the first and most outspoken critics of this executive order. 120 companies signed a legal brief opposing the order. alphabet is organizing the funding for this fight. we're going to talk with mark and greg. google's role is really remarkable. weekend, one of the
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family fledle, his soviet oppression. he was at the airport protesting in person and also backing this legally. >> google has played an outsized role to coordinate funding and is working with a bunch of companies to organize this brief. sergey brin has been a vocal in they of the order had lockout protests at the google campus last week that he participated in and spoke out. google is taking a principled stand. cory: it is remarkable to see corporate america involved in politics in such a way. mark: it is not just silicon valley, which is traditionally liberal, but you are seeing the biotech industry, what we did a story on today in bloomberg, they are taking a strong stance against this because the scientists developing some of
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the drugs are coming -- many of them are coming from other countries to develop them here. cory: there is a legal battle, as well, it is not just the meta-issue. greg, let's turn to you. there is going to be a decision of some kind out of the court, perhaps today or perhaps tomorrow. either way, this looks like it might be headed to the supreme court. greg: the supreme court said they would not have a ruling today, but probably this week. i would think the losing side would go to the supreme court. ,t might not be a full blown please hear this case, but it might just be intervene some of the band can go back into effect temporarily or to stop it temporarily. there is a good chance the supreme court will be involved in the next few days. cory: and it only has a members. -- eight members.
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say the administration loses that the ninth circuit, they will go to the supreme court. ultimately, the court probably sometime was in the next few months will take up the issue of the constitutionality of the issue and whether the president has power under the immigration laws to do this. there's a good chance we will have a nine justice court for that, but for the time being we just have the eight. cory: doesn't matter how the ninth circuit frames their decision? greg: it does. the technical question before them right now is whether to put a hold on the nationwide order that has halted the travel ban. the court does not have to go beyond that, it does not have to say whether the ban is constitutional and in accordance with immigration laws.
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but it could go there in the course of its ruling. that would be more sweeping and make it more likely the supreme court would feel the need to get involved earlier in the case. cory: it would also give the companies behind this, or during this fight, more time to draft their support of it. mark: it showing no signs of slowing down. just this morning, more than 200 startup founders and vcs signed an open letter that is becoming oppose thesort of immigration. cory: what is an open letter? mark: it essentially means very little, but they are voicing their opposition together saying this is not something we believe in. cory: it means something. think -- is interesting because there is a sense of theting a movement, and
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businesses and technology companies in particular are not just making it easy because of the technology platforms like facebook and twitter, it also putting their money where their mouth is. mark: it is interesting to see some of these companies often have the religion of the platform and want to remain neutral and seeing -- seem a place for both sides. the executives of facebook are taking a very logical stance against this immigration order, which has been a key part of donald trump's platform. cory: thank you very much, and greg, as well. let's get more reaction on the travel dan. -- ban. caroline hyde spoke with a former chief security officer at the makers conference about the restrictions and what it means for bringing talent to the u.s..
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we have to keep the pressure on and make sure we can keep great talent on our shores. it is critically important. really, our opportunity is here. the artificial intelligence work we do for the president. we really need everyone. there is training an extraordinary work happening. we just had called miners -- coal miners graduating with new knowledge. coding is being taught at school. let's get it done. also continue to welcome the talent. list all americans and bring everybody in. do it in a smart way. there are tremendous programs where we review those coming in,
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they are very capable. expand to continue to how we do that, not than people. they're taking executive orders on visas, and concerns have been raised on how those have been deployed. are there more efficient ways we could be bringing in the top talent? more: we could be doing with modernized visas. you see it in britain and canada. we want to have entrepreneurs creating jobs here. , i thinktment of labor we should call it labor and a lot of the money from the fees from those visas were used for grantmaking. they are accelerating veterans and people coming out of prisons
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and foster care. you see people go from $10 per hour to $60,000 per year in three months. that is a real thing and exciting to see. 70 different regions are growing in making the system work and training people. we welcome people in. we have to do that because ai and automation will drive our economic cost -- transformation and we need to get ready. make it smith and caroline hyde. a former a loan ceo joins us at 7:30 in the morning. rivalry has turned criminal. this is bloomberg. ♪
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cory: a battle is getting
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interesting, a contentious fight . a fascinating legal battle going on. shares have been down a lot, but they succeeded fantastically in the marketplace. them.competitor is suing the case is getting weird and criminal. >> the case is getting uglier and uglier. it started back in may 2015 when this case started, they said have gottenfitbit secret information from jawbone. five months ago, job own started opening -- they went to homeland security to open a criminal grand jury investigation into that jawbone is
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not backing down just because part of the case got thrown out. they are not stopping. cory: let's unpack that a little bit. employees left jawbone. >> five employees. cory: they go to fitbit. it seems strange to me that they went to the itc. i think quite often they go to the itc. a spoke to some lawyers who said it was unusual they went to the criminal courts. they brought compelling evidence to go through the grand jury process, and the timing is interesting. usually the cases are not made public, and they mentioned it in the filing that just came out. it is jawbone's opposition to fitbit wanting to throw out the trade secrets case. they are saying no, the ships to be investigated and on top of
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that, we have escalated this to criminal status and there has been a grand jury investigation going on for the last five months. fitbit says they are complying and this is completely false and ridiculous and job own is in deep financial -- jawbone is in deep financial trouble. cory: i talked to jawbone in they would not comment. fitbit says, the itc already looked at this and they said there were no trade secrets stolen. they say, there were point 5000 -- 25,000cuments digital documents the had to begin them back to jawbone. only ones making money off of this are the lawyers. cory: shocker. a booming was industry, they could probably sell their differences and get
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over it, but because of the market conditions, they are still writing. jawboneis still deep -- is still deep in this. selina wang, thank you so much. that does it for this edition of "bloomberg technology." remember all of our episodes can be live streamed on twitter at bloomberg tech tv. that is it for now. this is bloomberg. ♪
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>> this is charlie rose. charlie: president trump stirred controversy in a pre-super bowl interview. aesident trump suggested moral equivalency between the united states and russia. trump: there are a lot of killers. do you think the country is so innocent? bill o'reilly: i do notdo you to know of any government leaders that are killers.


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