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tv   Bloomberg West  Bloomberg  March 13, 2015 6:00pm-7:01pm EDT

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>> live from pier 3 in san francisco, welcome to "bloomberg west," where we focus on innovation, technology, and the future of business. i'm cory johnson. stocks fall today. energy socks -- a stocks sold off. record surplus in crude inventory mason strained u.s. storage capacity. petroleum attracting as it explores according to people with knowledge of the information. it could kick off a number of
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acquisitions in energy. the justice department speaking about $1 billion -- seeking about $1 billion. that is just the starting point. some are asking for more, some for less. it could be as high as $4 billion. pershing square says no one from his office has been question of shares. they are investigating subcontractors. they want to know it's false statements were made. >> we haven't encouraged anyone to make false statements. it don't need to make a false statement about herbalife to be negative about the company. the truth is the company is harming people. >> herbalife insists it is not a pyramid scheme. the fcc is pausing its review
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clock for the comcast-time warner deal. the reason? the fcc is awaiting a court ruling on whether cbs could provide details on programming contracts. the clock has been stopped twice before in its comcast review. snapchat emily white is leaving the company. she joined in late 2013. she has been a key raise on the advertising partners. shareholders meeting and blockbuster usually don't go together. but disney broke blockbuster news. disney talked of a plan for the sequel to "frozen." with the release of a live
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action movie "cinderella" they are thinking of a "frozen" short. and following the fantastic success of "the avengers," disney will make 11 more films in the next four years. shelby holliday is following this story for us. "daredevil" was a terrible movie. they have been putting blockbuster upon blockbuster on all of these franchises. an amazing news. >> one investor discuss the shareholder meeting as wild to. disney continues to do everything right. they are appealing to the masses by expending on these franchises that field to men, women, children. they are expanding globally.
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movies are exploding in china. makes perfect sense. they are also returning to their roots. opening of "cinderella" has did sney going back to the classic films. they could be launching a live action platform with "cinderella." "cinderella" had jimmy choo shoes and mac makeup. cinderella is speaking to a broader, female audience. when you appeal to this many people, you cannot go wrong. >> these are big numbers in terms of box office movies. paul joins us from los angeles. and a guy who does a great rendition of "let it go." >> i do. [laughter] i'll save it for something. >> how does disney do this so
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well? they have had their "lone ranger" and "john carter," but it seems like these franchises are performing for them. >> disney is creating a 100 year plan, i call it. it is a legacy. by having the crown jewels and the lucasfilm and pixar and marvel superhero vertical, and now they are getting into the whole fairytale princess area they are creating such a broad swathe in terms of their audience appeal for all the various movies. by these acquisitions in various companies and by internally going back to the vault for something like "and a and combining that with "frozen" weaver -- fever, it will bring
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in a lot of people just to see that seven minute short. the power of the disney brand is incomparable. is that at this incredible strategy. when they make these announcements, you could feel the excitement in the room. ellen degeneres was tweeting about it. give that star wars. avengers: age of ultron. the follow-up to the biggest weekend ever. the first avengers open up with more than $200 million. every franchise, the branding the ancillaries, the international talks office is huge stage shows product placement, home video, big screen, smallscreen, you name it , disney is strategically planning for it. >> when we look at "star wars" by the numbers is there a
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suggestion -- $4 billion for lucasfilm it is there a suggestion the movies will be better than when they were fox properties? >> i think people certainly want to see them do better. disney has to prove itself. they acquire this wildly popular franchise. one thing i noticed when doing research is the top grossing "star wars film adjusted for inflation did not do as well in the global box office as "frozen." disney has work to do. being under the disney brand is people confidence. -- gives people confidence. disney is focused on long-term revenue streams. themepark rides. the frozen dolls a year after. it is not just about how popular these movies can be but what longevity they have for the
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brand, the franchise. >> i may be alone in this, but i think ox offices is one of the stupidest metrics of success. it seems it is a function of the marketing spend. do you think disney is clever with the frozen short? giving to the spend on marketing would be higher in the earlier editions of the film's? while the box office might be big, they're hoping a big box office with the movie will be too cheaper box offices for the second? >> you make a great point. it does cost a lot of money to get these movies in front of the audience and get them excited about it. the box office at the actual first run does drive everything else. you're right. they spent a lot of money on that marketing push. then these brands take on a life of its own. in terms of getting the word
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out, they had to do that for the opening weekend and build that up. that is a big deal. with a lot of disney properties particularly with the classics people like to own these. digital downloading is important. people like to have disney movies in their physical collection. it is such an amazing play for disney with that brand. we were talking earlier about the marvel movies and how important that is. we're talking about billions of dollars long-term. it seems for each of these verticals, there is an exit off double -- there is an inexhaustible audience to spin off different characters. "captain america: the winter soldier." huge opening weekend. it seems time after time, the marketing is really building a long-term -- it long-term.
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audiences know these brands. look at "guardians of the galaxy." >> absolutely. >> huge because it was marvel. >> thank you very much. we appreciate your time. "bloomberg west" will be right back. ♪
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>> i'm cory johnson. this is "bloomberg west." president obama says he is embarrassed when the republicans sent a letter to iran. they say they regret addressing the letter to iran's leader, but doesn't regret the letter's contents.
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>> this is going to be destabilizing. the letter told the truth. i think that is a good thing. >> secretary john kerry said the idea that congress could change a nuclear deal is flat wrong. >> russia cut its main interest rate because the western economic sanctions over the conflict in ukraine. >> the republican sent a letter to the shipping company. brown fired back, saying california is creating more jobs. >> tech frustrations. sometimes they talk about their
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home wi-fi and unreliable connectivity and dead zone. one san francisco startup is going to change it would new hardware and software. why? >> it is one of the most famous architects. >> we met six weeks ago or something. you are launching your product on your website. how did it go? >> better than we ever imagined. and just about two weeks, we did $2.5 million in sales. >> $2.5 million in sales? >> exactly. we are testing in san francisco. we are delivering hardware this summer. >> why does wi-fi sting? -- stink? it could crap out in certain places. >> as you're streaming my video
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and connecting more devices, it is becoming increasingly more important. you're never going to cover a house adequately with one monitor. we designed a system with multiple units that blanket your home with faster reliable connectivity. >> what do most people do now? >> most people buy one massive router that looks like a spacious. plug it in. put it in a closet. leave it there and forget it. >> a couple antennas on it. that kind of thing. >> exactly. >> what do you do technologically different? >> we allow you to buy our three pack you plug one into your cable or internet connection. that starts creating a mesh network for your home. as you plug other units around the house, they mesh together. they blanket your home with fast and reliable connectivity. >> my house has got a lot of wi-fi units.
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technologically why is my not doing that and yours will? >> it comes down to software. look at the software. most of it has not been updated in years, sometimes decades. >> there are always new standards. >> we have seen changes in the radio technology. underlying software that runs the devices hasn't changed in quite some time. when you log into that cryptic ip address to change settings where you set up your network that software hasn't changed in a long time. >> what have you done to fix it? >> we have fundamentally rewritten everything. we have connected that the cloud service so the networks get smarter and more intelligent. we tie the expense together with the mobile a[ps soap -- apps. >> who has worse connection?
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someone in a house? or in an apartment with a different network? >> it depends. in a home, it deals with a range issue. in an apartment you have so much competing noise. there is a lot of interference. >> in terms of the product, what is your plan? >> the biggest thing is in hardware there are components that have -- sourcing and processing and memory come everything that goes in the physical device. how many units do we need to produce? our team is 100% focused on shipping. >> i learned about a 5g standard . i'm sorry, much faster standard p at what chits are you using? -- a standard. what chips are you using?
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>> the fastest current standard. >> the think he will face any particular company? -- do you ain't you will face any particular company? >> existing products do not have the same reliable connections you need. >> there is a nest connection as well. >> the gentleman who designed and did that vessel design for the devices is one of the best industrial designers and he worked on our device. a great partnership. >> very cool stuff. the eero ceo. we appreciate it. "bloomberg west" will be back. ♪
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>> i'm cory johnson. this is "bloomberg west." docusign just extended its partnership with sap. is it a big deal? >> absolutely. we are arguably the most powerful enterprise company on the planet. for them to resell as their local customers, they have been a great customer themselves in terms of their sale contracts lee girl -- legal contracts, partner contracts. we are excited about sap joining. >> i think of that thing that saves me from having to sign a mortgage that is about 50 pages. >> it allows anyone to transact
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anything come anytime, anywhere, and any device securely. >> do we see fraud in this area? >> if you look at one of the key things that is driving our business, it is reducing the risk and security -- in complaints. these are people's most important documents. the need to be authenticated and signed. it is huge in terms of our technology. >> if something goes wrong, if the document is forged, where do we see that happening? >> i think you see it for sure in the financial services sector. we speak with a lot of customers. we talked about the average saving and turnaround time. we talked to some of the -- if we had docusign, we would have
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saved $6 million on one document. that is a fraud issue. >> it is hard for me to make sense of what it means and how important it is. >> if there is a high-performance team that has great domain expert t's in the public sector and also in health care -- expertise in the public sector and also in health care -- >> do they have a competing product in that vertical? why is the need in the medical industry so different than the mortgage industry or carl and industry? >> what is interesting -- car industry? >> what is interesting -- when we go to market, we have special
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go to market forces in terms of real estate, finance of forces -- financial resources so we can really focus on the customer solutions. >> an ipo in your future? >> we keep our heads down and keep focusing. we rarely talk about things like that. >> some companies are deciding to stay private for a longer period of time. do think the balance has changed? >> a little bit. what you say companies doing and this is for sure what docusign is doing is making those built to last investments. one is global expansion. we had 50 million unique users on the network. over 100,000 companies. we are focused on that. >> the ceo of docusign, keith krach. "bloomberg west" will be right back.
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you could always watch us streaming on your phone, tablet, apple tv and probably some other places i cannot remember. but check this out. ♪
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>> this is "bloomberg west," where our focus is on technology and the future of business. i'm cory johnson. the greek finance minister says greece has made the necessary provisions to make its payments. he says they need to hammer out an agreement quickly. >> greece is a member of the european union. it is part of the indivisible eurozone. therefore our negotiations within the eurozone and within the european union must to be an affair that is resolved within the european parliament. >> trying to get creditors to
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release the next round of bailout ap the country could run out of money within three weeks. >> the bank is focusing on switzerland as the preferred bidder. people familiar with the matter is says an agreement may be reached this month. >> protesters took to the streets peacefully in ferguson. no arrests were made. persons who shot and wounded two cops wednesday night remain at large. >> soccer fans are cheering their national teams. the national soccer program hasn't won a match since 2008. that changed today. they beat sri lanka 1-0.
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>> porsche is gearing up to challenge tesla. the target audience is environmentally conscious, luxury buyers. tesla has set the standard. now porsche must step up. >> u.s. tech giants like google and facebook have been operating in ireland for years. apple announced a new plan for $2 trillion to open up a data center in galloway. why move to ireland? they are trying to convince companies to jump the pond. a very active presence in silicon valley. glad to see you on the show as well. i wonder how much the nsa issue of surveillance is driving for new data centers. >> i think there are many reasons. our team environment is one of
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those. the investment, education, training, and data bureau lead to companies making investments in ireland. >> why? >> it is important. ireland is one of the most open countries in the world. the government invests in research and development. we provide an attractive rmb -- r&d incentive. >> talk to me about those incentives? >> 25% expenditure on research and development. >> r&d in that country. >> exactly. >> how do you calculate what is
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happening there and somewhere else? >> it is audited. they look at what qualifies. >> you guys have been at this for quite a wild yet i wonder how all of the tech companies in ireland are changing ireland -- for a while. i wonder how all of the tech companies in ireland are changing ireland. >> from microsoft to intel apple, google, and newer companies like linkedin, yahoo! facebook and we now have the next wave coming through. the drop boxes -- dropbosesxes. >> interesting. in terms of jobs, what are you doing? i imagine they look to ireland.
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what do due to develop talent so it is available? >> the ability of talent is one of the reasons companies are coming to ireland here it have a strong education system. one of the highest participation rates in the world. we also have access to the european labor market here ireland is a very attractive place to live. >> talk to me about negotiations you have with companies. >> we are very active in the markets. ireland has a presence in the bay area and in the valley. we have a presence across north america. everything from knocking on doors and introducing myself to the fact we are well known i think now. ireland is well known as a tech hub. >> what is the biggest deal for you?
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is apple one? >> undoubtably. a datacenter in ireland is a huge deal. it adds to apple's existing presence in ireland. they had people employed there. they are doing everything from manufacturing to servicing. >> in what ways is that a game changer? >> it would be one of the largest data centers on the planet. >> in terms of data centers and power generation, to build up capacity -- >> we have the capacity currently. all of the major players have data centers in ireland. we have the wind blowing a lot in ireland. we capture that. >> martin shanahan, thank you
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very much. "bloomberg west" will be right back. ♪
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>> i'm cory johnson. this is "bloomberg west." a lawsuit against mark zuckerberg could reveal all personal finances. new documents shed light on the long-standing dispute between mark zuckerberg and it would be neighbor. that neighbor sold zuckerberg part of his locked in a deal that made facebook founder -- how strong is the developer's case? an assistant law professor has been closely watching the case. is this a good case? >> if what the neighbor alleges is true, it is a strong case paid what he is alleging is this house was worth $4.3 million or more and that mr. zuckerberg
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wanted to buy the house and when he ended up promising was $1.7 million as a cash payment or some sort of payment, along with promises to reduce him to his bible social network -- introduce him to his valuable social network. if that promise was made and exchanged as part of this deal for purchasing his house, it definitely has a strong case. >> talk to me about the law behind this. there is no written agreement from what i can understand your there is no formal contract of any kind. >> right it we think of contracts as written documents. there was a written document here. there was a document -- are you still there? >> still here. >> i'm sorry. my laptop when off for a second. we had a written contract for the sale of the estate.
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nowhere in that written document was there any mention of these promises for mr. zuckerberg. you might think that was enough to turn the tide in favor of mr. zuckerberg. anyone who has taken a few days of contract laws no oral promises could be just as good as written promises. california takes a liberal approach as you might suspect with allowing oral promises to come into written document. even though that is not within what they called the four corners of the written document if he can provide evidence that make her made this promise and that the promise was made in exchange for purchasing the home , then i think he will prevail. so far he has come it up -- so far, he has come up with good evidence that zuckerberg has made that promise. >> this is not his first lawsuit . does that matter here?
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>> from a procedural or purely legal matter, no. the jury takes lots of things into account it at the end of the day come the jury might look at the vicious tactics or hard knock tactics being used as well as his previous actions. might hold that against him. on the other hand, you might have the jury looking at mr. zuckerberg and holding an unfavorable opinion. you control people on the panel. did them time to discuss the matters. who knows what verdict to come out with. >> potential business deals -- how can they be measured? >> that is a great argument. this promise is so indefinite. i think his attorney has found a way around that. it is difficult to measure the types of damages, but what
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they're asking for is not the value of the promise. they're asking to rescind or undo this deal. he'll give back to $1.7 million plus interest. he will receive the house back. i'm winding the deal is perfectly within the court's authority. it would get around the problem -- unwinding the deal is perfectly within the court's authority. it would get around the problem. >> any chances zuckerberg will lose? >> if everything is true, the neighbor might prevail. the law is probably on his side. second, we have had pieces of evidence that come -- came out that ports to supporting his version of the facts. today, "the new york times" reported that the attorney of the neighbor filed an affidavit, saying he had an offer on his
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phone. given that he sold it for $1.7 million -- then that is one strong data point that he was exchanging this for something else of value, this promise potentially. the second piece of evidence that is pretty damning against mr. zuckerberg is an e-mail from one of his advisors in which they state zuckerberg it make a promise to make some introductions. that e-mail seems to indicate that the neighbor's version of the facts may be true. taken together, i think this tends to support his allegations. >> interesting stuff. we appreciate it. tempora check of your bloomberg top headlines.
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the closing of riggs is not having a big impact. u.s. oil inventory production is still at a three decade higher sending oil prices down for the fourth straight week. john brennan says the edward snowden leaks have not stopped for an partners from collaborating with the cia. he calls cyber threats and urgent national security priority. watch out, weather channel. accuweather is launching its own tv network. it is relying heavily on disney. >> we are the world's leader of presented by the information on digital media. we have about 1.5 billion people throughout the world that watch us and consume as in that way. >> right. >> we took that digital ability and moved it into television to give people a different experience. >> verizon fios has dumped the
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weather channel for the new accuweather network. "bloomberg west" will be back. ♪
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>> i'm cory johnson.
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this is "bloomberg west." the bwest byte, one number that tells us a whole lot. bob joins me. how about how many times i mispronounced her name? [laughter] >> -.05%. that is my forecast for worldwide pc shipments in 2015. a couple of things to remember -- people count things differently. like the surface pro and other interesting categories -- i see them as a pc. there are differences. the tablet numbers are actually growing. mine are declining. it is a different perspective on the way you think about the market. despite what we are seeing with
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a little bit of some of the intel numbers i know we want to talk about and what they announced, i really think we need to think about this perspective across pcs and tablets. the world is becoming very messy. >> it is interesting. you have got your small phones big tablets, tablets that are much more like pcs. then you got laptops and desktops. i wonder what we have seen. you pull be using all of those devices. let me start with the tablet business. what do you think is happening? apple has seen four quarters of declining sales. the last quarter saw the biggest decline. it is getting worse. >> exactly. i believe 2014 was the peak of the worldwide tablet market. in the u.s. -- part of the
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reason we are seeing it from a couple of perspectives we look at the tablet market. 60% of the market used to be small tablets. the ipad mini and android tablets. that market is getting creamed by the large smartphones, the tablets. >> the iphone 6 is hurting. >> exactly. if you have a smart phone, that is a much more compelling thing than caring about a tablet that probably doesn't have a 4g connection anyway. that affects the tablet market. by 2019, my prediction is we will to the large tablet category take over as the majority versus the small tablets, which is how things started in the tablet business. that also played into the pc business. we look across the pc business.
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with a movement more forwards 60% notebook share versus desktop. a lot of that is driven. the other thing we're seeing is growth in the percentage of the commercial share. >> idc says from negative -- ythat -- that is a big change. >> short-term, we see challenges. q4, without the windows 10 intro. i think it will make a difference. i think we will see short-term challenges. q4, it will be more consumer versus commercial. it is still there. >> this is where i say the
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headline is death is written for the pc. >> it is obviously not the case. that is another thing. we do see a slowdown that intel talked about. windows 10 doesn't have any real benefits. companies are not going to jump. they're going to go from windows 7 and skip windows 8 and go to windows 10. near term, who got the consumer piece that will get benefit from windows 10. >> the mac numbers in the context of this, they set 2% increase in sales year after year.
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really spectacular. are we going to see strong market shares? >> i think we well. it is tough -- we will. it is tough. i think they could get close to doubling that over the next four or five years. i think it is possible. i think it is absolutely possible. more in the u.s. than worldwide. that is where lots of the strength is. the is showing there is innovation on the pc side. it is a great statement for pcs in the long run. >> thank you very much. we appreciate it. you can get bloomberg headlines on your phone, tablet, and tc, of course -- pc, of course.
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see you later. ♪
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