tv Bloomberg West Bloomberg December 24, 2013 12:00am-1:01am EST
critical founders asked to join the disney board. could his tech magic affect the magic kingdom? tweet was offensive barely followed. we are going to explore new approaches to corporate management and of social media. phone is finally -- will bring the two newest versions of the iphone to china mobile starting next month which is right around the corner. countriesle is to come dominant mobile carrier with a subscriber base that is more than twice the american population. currently vp of american
division. sean, let me start with you. how big a deal is this? >> is a great deal for apple. final they will have access to over 700 million subscribers. china mobile subscribers actually use three g. the vast majority are still using the outdated to g service. it will be very difficult for china mobile apple combined to convince so many hundreds of millions of consumers to leapfrog and skip over using three g and go straight to the 4g system. the new iphone 5 s that will be sold through china mobile must work on a 4g. 4g hasn't really been released yet in china. and they're hoping in shanghai that the end of the month. only in the inner ring areas. that would be like saying you can only have 4g services in
downtown manhattan and greenwich village. you're going to see a lot of coming away with the attitude about whether 4g is stable. and whether or not prices on a data package are reasonable or not. it is good for apple, but it is not going to be 20 million the analysts are estimating in 2014. the bigger gains will be years from now. of 750g only 20% million. that is 150 million people who are already in 4g. what do you see as a likely benefit? >> it is interesting because china is so massive that any small fraction is nothing to scoff at. for example, some of the early estimates we are seeing that anticipate 17 million new iphone subscribers. how big a 17 million? it is a tiny drop in the 750
that cory talks about. -- 70 million is almost the same as the entire smartphone user base in spain. a drop in china's market share is a big thing for any hardware or software company. >> let me stay on that notion. at a certain level there's also the migration. i don't imagine we will have fewer people or a smaller percentage of that user base on mobile, but how big can that migration be given the economics of china and the level of income of the vast majority of the people there? >> that is an interesting question. >> thank you it is my job. the number of 100 million has been floated as the potential for new handsets as a result of this deal. 100 million is much larger than 30 or 40ers between 10-
million we have been hearing. it depends on how much china mobile will subsidize these and the data plans. but to give you a sense, china mobile artie has an estimated 45 million iphone users on its network and its network does not even support iphones functionality. that is a much bigger number than an upgrade. what you make of that. >> of those 45 million users are using iphone currently, most of for long-ot signed up term contract. users prefer to pay-as-you- go -- to use pay-as-you-go contract.
for a lot of these people, they might move to shanghai for six months and guangzhou for six months in beijing for six months finding work for these people will never sign up for multi- year for data plan a voice because the data plans are based off one city, it is not like in the united states or you can take a phone from new york and moved to california and be able to keep the same phone number. in china the prices very. that will be a problem. who area lot of people buying iphones are only making about five euros dollars a year, 30,000-40,000 dollars in the united states. . surely price-sensitive when it comes to data plans. they like to have the iphone a galaxy or handset in order to show prestige, show status to outsiders, but they really are very price sensitive when it comes to data plans. that is why i think you'll see 8-10,000,000 sales increase in
2014. the people who want the iphone 5 s in china pretty much artie have it. one of the issues there was inability of workers to take from one citynes to the next. thatchina mobile changing policy? could they change a policy? >> that is always a possibility. theme ask something to point. one is the rise of the middle class in china, which is expected to grow tremendously in the future. the second thing which we have not heard the press talk about -- we have certain insights
about mobile user behavior. the china mobile user is much more active on mobile than the average first world or western world mobile user. users whona mobile said that midi mobile purchase in the united states or germany. >> a china mobile phone user is more likely, 60% more likely to purchase? >>app yes. they are getting more active users to the echo system. >> that is really interesting stuff. there are more legs to the store than i thought. thank you for coaching me up on that. jack dorsey, twitter, no mickey
>> this is "bloomberg west" i'm cory johnson. to unloadt trying some of those patents. rockstar recently held conversations to sell a portion of that portfolio which includes 4000 patents ranging from internet technology to ships. why is rockstar getting out of these patents. why did they overpay for them in the first place or did they overpay at all? martin, the founder and -hairman of them cam -- of m cam. you're been predicting
since a dim at you. why? >> if you recall, after some of our early conversations about this a number of people said that we grossly misrepresented how much overpaying has happened on the rockstar portfolio. just like we talked about overpaying that google paid too much for motorola. the reason why there is a dispute between our view and the consensus view is that we look at the actual patents and cells. is problem that rockstar has that there are some very good patents in the portfolio, but of the 4000, probably close to three quarters of them would have a hard time standing up to a true unmitigated and unadulterated view of a re- examination process. one of the terrible pieces of news for the rockstar consortium is the recently and newly appointed director of the patent office, michelle lee -- >> i want to talk to about that, the
new head of the patent office has a job that wasn't working for apple, was working for --rosoft, was working for she is working for -- >> for google. >> that is not good news. >> the funny thing is a lot of people who don't pay attention to these things and don't realize there are two mechanisms the patent office has for the re-examination of patents. parties, but in addition a director of the patent office can institute a director re-examination and who knows, maybe there would be a special interest on the part of a director who is already made great public statements about dealing with patent quality issues. i think she would do a fine job because she is one of the first directors to really call attention to the patent quality issues. the fact of the matter is, a lot of the portfolio could be
subject to re-examination by third parties as well as the director re-examines. this presents a very interesting detriment of value to the nortel portfolio, simply because there is no chance that nortel's patents in their entirety will be upheld. given the fact that the examinations are happening quite a bit lately, the risks are going up for the consortium members. >> 30 seconds, are the patents they havel had, would been more valuable for small companies or for big companies like this consortium represented? >> it probably would've done more defensive cover for the smaller company. they would have been the warheads that little companies could use. added to the already tens of thousands of patents held by the microsoft's and apple's, it probably did very little income mental improvement heard with black very on the potential sale block now potentially off the sale block, finding out that is used to inhabit it wanted in its
potential enterprise sale, i think all of the parties of these large patent estate holders are realizing that they probably bought a whole bunch of paper and didn't necessarily get the value they attributed back at the time of the sale. >> interesting stuff, as always. your prediction came true once again. thank you very much. more bloomberg west just after the break. ♪
david kirkpatrick himself as a of tech economy media. you know jack really well. did the disney board and bob eiger see in jack? example of what a blue-chip company disney really is that they could jack dorsey on its board. somebody whojack has not just social media but internet innovation experience. you would want to know what is coming next. basically, everybody knows that everything is getting changed by the internet. disney has been a well-run company, but it is going to continue to face a lot of difficult choices about how it spends its money, how promotes it stuff. having such a smart guys jack on
the board is going to be hugely valuable. i think it will give him a lot of benefit to be on that word also. >> i have to wonder if this is some sort of steve jobs connection. jack dorsey no steve jobs. thinksyou think iger that he needs? >> obviously you would love to clone steve jobs and have a new one. if anyone could play a role like steve jobs, i think jack can do it. is going to have an amazing role. facebook wants to have all the insights that might the available when they hear the discussion at disney's board meetings. twitter their nemesis is going to be hearing all those insights as well. i think jack brings a unique set of capabilities and taste.
this is one thing he shares with steve jobs. it is relatively in short supply in silicon valley, sorry to say to severance is good denizen like you. we new yorkers are very aware of that. >> i thought you going to say we new yorkers are very tasteful. >> we are, that is what i mean. >> sure you are. how does he manage his time? claimed heoint he was working full-time at both square and twitter. >> that does not sound like someone who manages his time very well. >> he -- it is not an executive full time position at twitter if i were an investor in either company i might have some reservations except that disney is such an important company and the discussions there happen at such a high level that i think what he learns on the board will benefit both companies. that is a good thing. do think he steps back of a more from twitter now that the
ipo is happened and he has management their? he has enough on his plate was square, let alone disney. >> i think squares is primary and session at the moment but he is unbelievably devoted to twitter and i don't think he is stepping back. i think he does have enormous energy. he's not married and does not have kids, he works 26 hours a day and he does spend a lot of time on twitter, even though square is his obsession. i don't see him stepping back. made a bigy investment with square. he is not changing, he is just adding. ceo davidonomy kirkpatrick. the great tom carroll using 3-d cameras for cutting tech innovations and not for biggest waves ever served. i caught up with these guys recently to get a first look on
how technology is changing what they serve and how they showed. take a look. waves, andurfing then there are surfing the big waves, three and four stories tall that terrify even the world's greatest surfers. you get sucked it was some violence that it almost appeals to much sometimes. >> thanks to some technological innovations, this experience has been captured in a cutting-edge surf movie called storm surfers this couldn't happen without the latest in tech. they start with imagery from weather satellites following the changing direction a big storms, then google earth pictures looking for unknown big wave spots.
some a different resources we can tap into now and understand the weather. carol races to unexpected wave spots with van loads of new equipment. on ergo handles and helmets. trick out powerful jet skis with more 3-d cameras that ~ mentor wave. ,hree cameras on helicopters experimental beam splitters for 3-d focus on both the foreground and background. , a blastlens got wet of compressed air. >> there's a jet ski shooting me, there's a helicopter shooting and there is a boat shooting me. it is like overkill. some techere
casualties. >> we lost eight cameras. you did more damage than me. >> to be sure, 3-d tv is struggling for air. three dtv sales have disappointed. espn killed its 3-d station, but in the surfing arena, treaty technology may have found its niche. house could have you ever feel the freakish tasmanian wave known as chip stern bluff? in slow motion and then into a big tubing barrel. that's when we realized this is different. something really special here. >> forget the storm surfers, all this tech proves that mother ocean is the real star. >> she is always moving. movingan is constantly and that is the big challenge is understanding the best angles and showing what waves can hit the right spot. the prizem took on
"bloomberg west." >> you're quiteng "bloomberg west." a package. let's get straight to your bloomberg top headlines. the apple store in berlin was robbed. a gang that has robbed other stores has used a similar dramatic fashion driving cars to the windows and stealing everything inside. itslion, grace note of
song music and other software. the new tax law for web advertising. the time company purchased trinidad from locally registered companiesinstead of registered in tax havens like bermuda. director, prg rector -- has apologized for twitch made last week. she tweeted that going to africa, hope i don't get aids. just kidding. i'm white! she landed in south africa and was instantly terminated. the offensive comment does not reflect the views and values of iac. we take this issue very seriously. we have parted ways with the employee in question. our next guest looked at this thing and talked about all the -- morgan you have worked
at google in the hr context. firing, thee offensive comments, whatever humor was at tempted was lost on some people, maybe everyone. i am interested in this from a corporate perspective. companies hired social media managers to look out for this? >> yes. lot of companies i've worked for have a policy. orientation they say if you want this on the front page of the new york times at your name and photo next to it, don't write it on the internet and don't say it to a blogger or a reporter. he don't see a lot of those issues coming from google or facebook or twitter employees. here, it is a gray area. .ac does own a company that sardonic morbid comedy is consistent with the brand. >> this really pushes up against in aimits of what may be,
sophomoric way, about what is decent, what is funny. you can watch one of these videos of a kid getting knocked over by a door and say, hey, that is not right. i'm not saying what this woman said was funny, but the notion that a company that built its reputation of college humor is offended at another failed attempt at humor is odd. >> she had 200 followers when this is picked up by buzz feed. she truly thought she was just talking to a friend and for buzz feed to pick this up and say this was the worst treat of all time, we know this wasn't the worst tweet. nonetheless, because she is in public relations, this was seen as something that was really damaging for iac. >> i feel like a lot of companies say we need to have a social media person, you get
this phone calls from recruiters you -- we have someone do have some in their mid-20s i can explain twitter? gogo in-flight wireless had to apologize for piggybacking on -- 48 gaffe. seeingere, we are pitfalls from every angle. it doesn't prevent having a social media policy or employees from making the same mistakes. >> i read a piece in forbes online where a cao was that in an era where anything you say in public or private becomes public, may be people need to get a thicker skin and not take everything
seriously and look at that jokes . re: more sensitive than ever before because we're not used to seeing part comes in public? >> readers to really worry about having college drunk photos that would come back to haunt you because everyone was taking those photos on facebook. we did see this a little bit when facebook first became big and was first released to the wider public. wereose bad pictures of me destroyed. i had harvey keitel come in. >> not everyone has that option. we are nothing those photos destroying people's reputation that we are seeing tweets. it can only go in the direction of gosh, everyone is flawed, everyone is going to make terrible jokes or say things in a vacuum that look really terrible without context. yeah, i agree with that. perspective, we
saw the chief financial officer, get aer cfo of microsoft new surprising job at the new iac william morris combined talent agency. the combined threat is investor silver lake. silver lake works with microsoft to sell them skype. worked with them on a dell deal and now brought him in to do this combined talent agency. that lot of the hiring takes place in silicon valley really controlled by these groups of venture capitalists who work with executives and private executive people? >> this thing happens with the vcs. i liked this story because it is happening at a later stage at post merger integration. a private equity firm is involved.
the work he will be doing is in it is alhouse, but counterintuitive move that he would go to a talent agency after microsoft. >> does indicate that i ag william morris is looking at technology to be the new way to build a company. the purpose of the show we're doing now is that lots of companies carry about tech not just tech companies. >> is the same as for vcs. the snap e-mail from dragged out there is. ntactsa igger firm you, you're interested. >> thank you very much. them, there iste no escaping the self ease.
facebook, instagram, even the dictionary. a suggestion and hint. not blaming the kardashian's. >> i'm not blaming the sulfate. is a natural and human instinct to capture self in the way you would like to be remembered before history does it for you. this is how artists use to survive. norman rockwell. a softy of himself painted a sulfate. it is possible that having a camera in your pocket all the time has perverted this ancient and natural human instinct and turned it into unbearable narcissism. it is possible, but if we're going to indict ourselves, we have to remember the role of the self the industry. twitter makes you post a selke when you sign up. if you don't have a selke on facebook, it will remind you until you have sell feed yourself right onto the page. instagram is the house itself is built. these are not social clubs, their companies and they need you to sell fee so they can make money. the self it is my twitter icon
was taken in a photo booth at my wedding. my facebook profile picture is me walking away from the camera with a child or my shoulders. these are selke which imply that i'm too cool for self ease. he gets out of here alive. you cannot beat a partner of twitter, facebook or instagram without making a decision about what you want the world to think you would like to he seen as. is that even grammatical? silicon valley is run on self ease. if these companies can't see me and everyone else self eating all the time come every day, they have no reason to exist. when i'm done with his video i'm definitely going to put on facebook and see what my friends in high school will say. rad, eric, paul, morgan, alex -- yo. i don't think the rise of the self he has anything to do with the decline in humility. it's just a business strategy and it is working. >> sorry, i was busy from him and choosing the sulfate.
>> welcome back to "bloomberg west." i'm cory johnson. can you save the planet and get a financial award for investment at the same time? for as low as five dollars, a solar energy platform is letting everyone take a financial stake in going green. talked to the cofounder and ceo billy parish and asked them to describe the business model for mosaic. >> mosaic is a first clean energy investment platform. people go to join mosaic.com. they can browse lots of different projects that they want to invest in and this project make money by selling electricity. investors are paid back with interest. >> you have been working on different ways to bring solar
since you dropped out of some college back east could which college was at? >> heel. >> you dropped out of college to do what? >> to build a clean energy movement. in this generation we can shift from fossil fuels to clean energy. i want all of us to be part of it third >> you want to wait. i think this is an interesting financial model. what is the problem, why do we need this model? >> one of the things we hear from our investors is that they like a transparency of our investment, even more than the yields. we offer four point 5-7% yields. eight% is not nothing in zero percent environment. >> people like them, they like the yield. more than anything, they know what they are investing in. >> i can understand the basics of financing. let's call it a five percent yield. the said 4.5-7.
does that five percent pay in perpetuity or does it pay for 25 years of war and tea, how long does it go? the we make loans in five to 10 year space. payments monthly. is similar to fixed income. >> at the end of that. who is the owner of the panel? >> whoever develops the project. >> river sitting on it, basically. one of the things we're seen as a capacity for making solar panels is a much greater than the use of solar panels today. one of the effects has been a collapse in prices. as happened twice. it is not happening right now but maybe it is about two. to. >> about t >> for one of the projects, the
panel manufacturer has gone into bankruptcy. most of our projects, the manufacturers are still around. count onntees you can for something, but it is really the technology that your -- we have zero defaults. >> how much total transaction volume have redone? >> 6 million in loans. >> what is the size of the average company or loan? >> our projects are typically in the 200,000-$500,000 range. cofounder andsaic ceo billy parish. speaking of solar, earlier this year there something unusual anchored in manhattan's north cove. the largest solar powered boat. million to build this freaky giant catamaran that
solar energy. it is the biggest solar boat in the world. is a huge floating solar field. we don't go from a to b. we adjust our route and our speed with the forecast of the sun. it is quite a challenge. is good to have a partner like the sun. was the captain of the ar.ar powered boat, planetsol triggers natural target is now turning to interest to sell items that are targeted in stores.
big and small ares a trying to decide how to best use social media. my partner emily chang went to a target store in seven cisco pinterest is featured. >> why don't you show me a little bit about how that works? >> they are calling out items that have been popular on saying i. they're love that frog. i'm going to say that a special collection. it is happening over and over
again. they did this on their own to call out the items that users have decided are the most popular. pione of the most popular nned items is elf on the shelf. apparently, this is a big thing with kids these days. >> that elf will sit in your house and make sure everyone is on the nice list. this sits in some really fun places in the house. target has managed to catch some pictures of where the elf sits on a beautiful board they have created which is called elf on the shelf inspirations. >> what are others doing with their products? in asedpinterest
creative way. users a number of our were coming up with innovative ways. starting tore experiment with ads, but do see an opportunity down the line to make money through e-commerce and through these partnerships? to take some commission on the things people are buying? some things.ng we are in the early stages. how do users react to seeing this and what kind of results drive our partners. >> obviously, facebook has been experimenting for a long time. twitter hired a head of commerce, how do you think pint erest stands out from other
potential partners? >> to think of it more as a complement to google. we think google is good at when they know someone wants to find something. the other side is at an order want and i don't have a well formed idea but when i see it i know i will like it. it is like coming into a store and you may walked down an aisle . you see it and wanted her that is the experience we're trying to provide. we are hearing from partners that we are filling that gap. >> that was emily chang's steveatrici p p patrici from pinterest. >> i don't know what that number is. for 12 ort it be
4/12/1960? it is the last game, the last 49ers game to be played at candlestick. >> monday night football. seven cisco 49ers versus the atlanta falcons. -- san francisco 49ers versus the atlanta falcons. >> the stick hated by players and fans. >> we're resenting the fact that we are losing it. i don't mind losing the stick. latest headlines at the top of the hour on bloomberg radio.
as bloomberg spoke down with the russian prisoner -- former prisoner in one of his first interview since being released or it china's money rate doubled the most since 2011. the move comes as the central bank injects cash. german dinner markets -- grocery mark is taking a seat at your dinner table. backstreet's back -- all right. band's new the boy deal and what it means for the record industry.