tv Bloomberg West Bloomberg December 13, 2013 1:00pm-2:01pm EST
>> live from pier three in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on innovation and technology, and the future of business. let's get straight to the rundown. he was on the shortlist for microsoft's ceo, but now he has the new job as they had of shall come. -- of qualcomm. time warner cable has been a subject of takeover talk for weeks, and now it could be just days away. charter communications is prepping offer for less than $140 a share. and the royal payout in silicon carpet, as the red
they gathered to support achievements in science. well, is not letting microsoft swipe one of its top executives pa. to ceo andomoted him president. he will take over for outgoing ceo paul jacob said in march. he'll become the executive chairman and focus on the strategy. this is sometime -- the first time someone out of the day of family will hold the ceo position. cory, let's start with qualcomm. 18 efforts a day makes. really incredible, he goes from being a leading candidate for the job at microsoft to becoming a ceo of the company were did
not look as if there would be a ceo job ever available. this covenant was founded by jacob, it was run by jacob gabbana did not look like it would be different that. aboard of qualcomm decided to make a very quick change to keep a guy that they felt was so important to leave this company. if you look at what has happened to the stock since he has been there he has been forever. everything that has happened to this committee, he is been part of it in some small way, and eventually as a big way. when the company had decided to have its chief operating officer , as it has been growing at an incredible pace, and an enormous excess, they do not want to let him go. >> you think this was just a reduction to the news about marker soft -- microsoft? >> is hard to imagine that this was just a turnaround in a couple of hours. we do not really know. a great reporter and bloomberg under --been calling everyone under the sun to find out who was on the shortlist for
microsoft. there are still other outside andidates besides qualcomm and mullally. face a problem as soon as it springs up, losing what they think is the most important later, or one of their most oblique leaders, making a really dramatic adjustment for that is creating a ceo job for someone who is not a failing family member, and doing it right on the spot. they knew what they wanted, they knew they had to do it right away. you seem to make this move quickly. >> cori, how big and losses this for microsoft? where is microsoft with the search? >> what we see going on here is a battle within the board. the board is trying to define with the future microsoft will be. you can see different factions .ith the board you have different names in different camps.
there, withttles up john thompson, who is leading the search. when we hear alan mullally, we are about a former boeing goal -- guy. a man who has refocused companies in the middle of a turnaround. strength.is and then we hear about a qualcomm guy, you think that mobile could be the future. you can imagine how the board is trying to figure out which direction to go in, and the next ceo will help to decide that. >> corydon, our editor at lies, they go -- cory johnson, our editor at large, thank you. the clock is ticking. to what could be a beginning of a wave of call and delegation in the cable business. we have been talking for weeks about time warner cable, the
second-biggest cable provider in the united states as an acquisition target. now i source familiar with the matter says that charter mitigations is preparing to make a bed as early as next week. -- ourr was courts senior west coast course by jon erlichman on this. >> the reason we are hearing about all this can -- cable consolidation is costing competition. rob edition is a tricky one, because the pay-tv providers are all competing with each other, but remember that a lot of them are spaced out over the country. they are not always competing with each other in one local market. really, what cable comedies are computer -- competing with right now is for your time. to keep you with the cable package as opposed to using something like apple tv and netflix. or being on facebook and twitter all day. the realities of a fast-changing market, where people could get video anywhere, anytime they want, that is a really tough thing for the cable companies to have to deal with. because it is moving so quickly. on the cost side, you bring two
copies together, they are the obvious cost synergy, there's a lot of infrastructure that goes into running these businesses, but the other cost is content. remember, if you're a smaller player, generally do not get the same terms on all that content. you have to pay the content companies for, like disney's anne fox, in this case of contact that comcast, generally gets in her terms of all those different shows that it carries than smaller players like time warner cable and charter. consolidationis talk talk about -- affect the content companies? scripts might come together. >> there watching this very closely. if they have to sit around and say there is going to be that many fewer cable companies that we are going to be negotiating these content deals with, do we have the best content to offer? a lot of times what happens is there are a few channels they all own, and then they tried to
get a bunch of other channels that are less washed into these package deals. the reason that there is talk about consolidation with the content companies is you might see a grand coming together with other big brands to sort of say we still have some force in negotiating power. >> thank you, jon erlichman. jack dorsey,ing and others to one red carpet? ,he oscars in silicon valley next. you can always watch it streaming on your phone and a bloomberg.com. ♪
here in silicon valley honoring scientists. celebrities like kevin spacey and conan o'brien headed out awards to researchers focused on innovation in front of an audience of tech elite. yuri milner was once a student himself much turned to tech investing himself. take a look at all of the action from last nights event. is a ligand be in our line -- it is only going to be an hour- long, and i hope that hollywood will learn a thing or two from the science community. >> the average a -- sat score is higher here.
>> can you make fun of scientists? >> never ever. no. no. they are nerds, of course you can. but they're the best minds. that thelly amazing people who are pushing the envelope all the time, are completely unknown. ?> what's the latest on aereo >> on what? >> tell me about the robot stuff he is working on? >> you'll have to wait for an dy. potential to transform. quick it is great to have the geeks and nerds to have a great night. holes, particles,
you're worried about late-night television? it will sort itself out. >> let me tell you, conan went on there for 10 minutes. than he is on his show. he was ripping on everyone. i want to bring you guys into this. like a who's who of the who's who of silicon valley. you are think of an that could beat all the time come together to support one thing. how often or how unique do you think an event like this is? >> i do not know of anything that has happened like this in a very public way like this. the whole red carpet deal is not really a silicon valley type of thing. what i will say is that there is a really tight community in the itley, and people -- because tends to move jobs so often, people tend to get to know each other. events and lot of meals, and dinners, and meeting
groups, and there are idea dinners give an oral these things do happen. i do not know of anything that has happened like last night. >> i did talk to kevin spacey about house of cards. i'm a big fan, but there has been some questions about whether or not there's going to be a third season. take a listen to what he had to say. >> please tell me you're doing a third season. >> i have no idea. maybe they know more than i do. >> you just sat down with netflix content officer, and he sort of all but confirmed they were doing a third season. doesn't sound like it is not a done deal? netflixber that when rolled out this original show series, to hedge a little bit, they decided to have her dissing partners. there is a comedy called media rights capital which produces the show. which means that some of the decision-making lies in their hands. obviously, netflix is very
involved, but you have an actor there who makes the show, but doesn't want to get his bosses angry. maybe that is why he was being a little -- >> let's not forget that this is the same guy that convinced us se,.as not kaiser so . ari've been thinking about aereo. >> they have had a pretty impressive run so far, and putting all traditional media alert.t companies on >> to respond to murdoch's comments, the ceo joins us now from new york. welcome back to bloomberg west, great to have you on the show. , fox,ur major networks
abc, nbc, cbs, they are all suing you. how do you think it is going to go? >> it will work itself out. time will tell. why are you so evident able working -- why are you so confident it will work in your favor? >> the law is on our side. that has been shown four times now. sentimenthe consumer is certainly on our side and we have tremendous support. it is found all think about is common sense. this change.d and think the consumers expect, at desire, and notice so aboard to have competition in the market. court to buyreme and there is talk that this could go all the way to the hears theourt here -- petition, do you think that will
affect your chances? sponsored tour that yesterday, we urge the court to consider the case as well because for our perspective it is a war of attrition at this point. we have been winning, and they are just trying to relitigate this and every possible jurisdiction. we are a small company, and we want to get on with the building of business our company. -- with the business of building our company. o> if it is found that aere is not legal, would you start bearing -- paying the broadcasters? >> we do not know. we have not thought that through. we are pretty confident in our position. we cannot prepare for two or three outcomes. meetingalk about area 5000 to 6000 subscribers in any given region to be profitable. you're in 10 regions are common to does that mean you need 50,000 paying customers to be profitable? everyone wants
to ask. cost structure is so low, we can break even in a new -- in any given market given 5000 or 6000 drivers. -- subscribers. so far the growth has been fast at the couple we are selling out in every city we have gone to. we couldn't be happier with the progress the business has made. the company by the people, the resources, everybody has been tremendous, it has been a tremendous year for us. quite how many paying subscribers to you have? 22last estimate we have thousand. i can't comment. i think it is a safe that to say yes. >> you do have more than 2200 subscribers. always great to have you here on the show.
of course. you know what, i've are to gotten your gift. >> what percentage of your shopping heavy done thus far? >> 75%. >> thank you. monday, $3y, cyber million in revenue in that time. most traffic came from mobile devices, and the ceo of philips media is with me here. retailers, and new online retail, this is it. >> this is it. we set very high expectations, and we knew that is was it, but we have even exceeded those. >> already? >> yes. we blew out our november numbers, and we usually like the summer to be weaker than november, but cyber monday got pushed back.
cyber monday is our thanks giving a christmas combined. >> most people have exactly 75% of their already shopping done. like emily chang. i have about zero percent done. where are you seeing this work in terms of when people are really shopping, it is that changing? >> we saw softness going into the big holiday, thanksgiving through cyber monday. people slow down the week before and the week after, but then picked up again. this we're we did not see that. we saw people shopping all the way through. we were concerned that we might see softness of rob abel shopping beforehand. we're pleasantly surprised to find people continue to shop through and go beyond. we were beating numbers everything will day. oblique, -- presumably, over the numbers last year? >> over the goal.
we refer cap the business quarterly, and have a good idea where we're going. >> we should explain what you are first. i have never bought anything from you. describe it for me. >> we are a brand that helps guys figure out how to live fun lives. we have several different areas of lifestyle. we are the intersection of food, drink, travel. dear, style, fashion, grooming, , cars.used on gadgets muchatch media struggle so try to figure out what to do, i see layoffs. i friends all over the media world asking if bloomberg is
hiring, constantly. i feel like you guys are using an international -- an interesting approach about blending. media is a tough business. we found that we have these great relationships with our consumers. we told them the stuff that we thought was cool, and they went and bought it, or went to the restaurants we recommended. we'll attend this trust a relationship, and we rely to tow their -- a few years ago take that relationship and monetize it to sell products. it has totally changed our business. >> what percentage of sales do you think mobile will be for you? >> over 50%. i think next year it will be approaching 60%. >> it is time for on the markets. olivia sterns, what is up? >> and looks like we're going to end the note on a positive -- the week on a positive note. there you see, it is green on
>> this is the early edition of bloomberg west, i am emily chang. you can also adjust and are later time. for your bloomberg top headlines. ukraine says able to sign a trade deal with russia next week. this comes cap dirt -- after an embattled conversation with leaders. to back away from the russian deal, and sign with the you -- european union instead. official familiar with the board says the additions include replacing the essays military jeep with a civilian, setting up a panel to
review eavesdropping on foreign leaders, and hiring a legal advocate to argue for privacy rights. police have turned away thousands of mourners singing to pay respects to nelson mandela due to cut -- time constraints. more than 100,000 people have shovel pass mandela's coffin over the past three days. they lies extending for miles, and mandela will be buried sunday in his home village. the fda has been cap -- cracking testing, 23genetic me saying the company has not provided enough evidence that those tests are accurate or scientific. i caught up with the cofounder and ceo to get her side of the story. we also talked about her work with breakthrough. >> i think it is incredibly important to support scientists who are making and really taking risks and making breakthroughs. i really want to occurs people to take risks, and think about
how to change the world rate >> is there any big life science question that is still unanswered that you would like to see solved? >> everything. why do we age? that is fascinating. we do not know the basics about how we grow up about aids, and i. it is fascinating a there are so many unanswered questions. >> it is quite a large prize, $3 million in white does it need to be such a big number? >> we want to draw the attention, and make people realize that they can have a significant rise by taking a significant risk and being successful. if you look at $3 million compared to one and -- to what an nba player receives, it is pretty small. but it in the graduate think that is quite large -- random
cheme of things it is quite large. people are making impactful discoveries right away. the lifetime award, it is who took a risk and did something significant. in themade a difference world, and that is what is most exciting. i want people who are making a difference in the world. correct any of the nominees in that particular that stand out? >> i know too much to answer that. there are a view genetics people in there that i root for. there are some amusing things that a happened to genetics. >> you're talking about innovations, science, and the fda has halted part of your tab as big innovation. what is the latest on that? >> we are working aggressively with the fda, and i believe that
the fda is committed that there should be a direct to consumer path for individuals to get access to this, and it should be some kind of way that we can have this kind of big sides of that everyone can get access to their don't know him -- therir genome. any stew be a comedy like 23 and me that improves health care. >> to the big -- do you think they're trying to make an example of you? >> we fell behind in our communications, and that is a public in an area. and it is notome a clear path on how to regulate all the genetics. we are committed to it, and we are going to do everything we can to show the fda that we are really committed to this process is going to do it. >> when you think it is going to be back on the market? likelihood it will be a mac on the market? -- be back on the market? >> we are hoping we can work
with the fda to get it back on very soon. i would love to get heated, but i do not know. we're going to work hard to make sure that the consumers can get access to it. -- and me ceo.o the upcoming qualcomm ceo has a spoken with the outgoing one, and this was the plan for a long time. what was the reaction to the microsoft news. both.y said it was they had a long-term succession plan, it just came to a lot shorter term last night. when his name came out of the public, they had to finalize the plans. the plan was to get him to ceo. going to beis not chairman, he's going to be executive chairman. he will be an executive of the
company, you will continue to be there, running the company as a chairman. the ceo will be running it as a ceo. he will be on the board where he was not before. paul jacob saying this has been in the planning for quite a long time. just push things along. >> let's talk a little but about -- a little bit about qualcomm's business. they are in mobile devices, but is that their strength? >> it is a company that has really excelled about -- by designing chips, and not worrying about the man chips.e of those about theng processors that would move the data. they been ahead of the curve and when smartphone sales exploded,
their sales exploded. their revenue numbers put themselves in the position to be on the take. $11 billion, to $25 billion, growing at a fantastic pace. their growing buffets at a substantial pace, the year-over- year for the company has been very impressive as they have really racked up a lot of money in the process of spell -- selling these chips. as we have seen, they have also reinvested quite a bit. this is not game over at all, this is not a place where they are going to just read been -- just reap inad in profit profits. >> if you are looking forward to seeing be nfl sunday games this weekend, directv may be close to his extending the deal with nfl
>> welcome back, i'm emily chang. netflix shows like house of cards have popularized the term bins watching when people watch multiple episodes in one sitting. now, we're getting a clear picture about just how popular been watching it. according to a new harrision interactive poll, 61% of tv streaming viewers didn't watch watchly -- binge regularly. late tv provider directv is near an agreement to renew its exclusive and i felt ticket feel with the league. according to people familiar with the negotiation, the current for your contract is and weor -- $4 billion,
are back with more. >> the nfl is one of the most powerful barons in sports -- brands in sports, which sells ays a lot for a league that doesn't have any teams outside the united states. it cost them about a billion dollars a year, but here is some of the numbers for them. directv, about 2 million of their 20 million subscribers also subversive crime to sunday -- subscribe to sunday ticket. people are looking for sports content on their phone, or tablet, they have football on your phone rate there was a commercial with demanding brothers rapping about football on your phone on behalf of direct ed. there are couple hundred thousand people who will pay additional so that they can get sunday ticket on their phone, and watch live run their favorite teams.
directv knows that if they let this go away, despite the potential price tag, it is the question if they will lose subscribers. >> there has not been that -- there has been some rumors that google might be after that ticket. interest is that youtube wants people to stay on its platform for longer stretches of time. youtube already has a lot of live events, live music event, they just had a life music event in new york city. the sport to be the larger goal extension of that. the problem is that i lot of the sports rights are tied up, and they do not come up top -- often. that is why people were wonder if they would jump into the ring for sunday ticket, but it may obviously be a more viable operative for the bulk that directv. >> thank you. bitcoin has a lot going for it to these days. the price is back up, but does that mean that more people know how to use it?
our washington correspondent joins us now with the results of a recent survey. what did we learn? >> no, no they don't. they can be used to buy anything from t-shirts to tablets, but people do not know how to use them. a lot of people do not even know what they are. bloomberg phone survey, 46% of people had no knew it was a virtual currency, and six percent thought it was a new iphone app, another six phone -- six percent but it was a new xbox game. some of them heard from the they thought, so it was being used for crime. those under 35 were most likely to know what bitcoin is, that could be an indication of its future prospects big >> this is not to say it will not be an xbox game soon.
schoolpondents were all -- also asked about regulating bitcoin. do people think or need to be rules here? fronts is a hot topic in of washington right now. 45% of respondents said there should be some regulation, 39% said no there shouldn't here's what is interesting, if you isolate those who knew about it going, who knew what was, almost half of them think it should be unregulated. that is counter to what we been hearing mary jo white. issued a letter saying they could be subject to sec regulation. this is a debate we will see play out in washington in the next year or so. >> megan hughes, thank you so much. beyoncé caused a stir on social media today after dropping a whole new surprise album by glue
>> welcome back, i'm emily chang. he on say fans got a big surprise today, without any pre- promotion, she released a new album exclusively on itunes just before midnight. the album was quite a stir on social media. spike byof beyoncé more than 5000 feet after the album came out. cory johnson is back with more. you know i am back with -- i am a big beyoncé fan. >> you saw her last week? >> i did. i listened to some of the new songs on itunes today. there are some collaborations there with justin timberlake, jay-z is on there. i'm a little annoyed that i asked went to the concert and she just has a new album. i do it to the next concert to see it. >> the same week i was on a
spotify announcement here in new york, where they announced they to ledexclusive rights zeppelin catalog, you see itunes scoring a big coup here, getting beyoncé, a more contemporary and bigger artist right now, only on apple's itunes. >> didn't jay-z do something ilar earlier this year? >> jay-z took a lot of hits for partnering up with samsung. people wondered if that hurt the jay-z brand. you have a lot of music fans today that are comfortable being all about renting and not owning. this is getting a lot of buzz on social media, but beyoncé said in her statement, she wanted to go directly to her fan base, take the music direct lead to
them. maybe in 2007, this would be have seen -- would have been today, innovative, but perhaps you let the music community have some dan -- fun with that tracks. this is really about how i find a with this new material to sell a bunch of albums in a short amount of time. prices is going to be something that other artists do? is this going to be a waiver artists to make money at outset without having to share it with others? >> maybe this isn't a new story in the music industry, but as the model for the music industry is cheney, there is a tremendous bifurcation for whom the business works. if you're beyoncé, if you are jc, if you are justin timberlake , if your shakira, you can control what ever you have. you have different economics
about whatever you do, and change the way you deliver the music, and get sponsorships, and use the sponsorships, and the it a lot of money up front. other smaller and middle artists are not able to do that, but surprise releases, i have is for -- have one for you. i'm not going to be on the late show him a three is a bit -- bwest byte. >> i do not know. three musketeers? >> three years ago today was the first personal ever for bloomberg west. >> wow. >> this is why we're going to show you a loop of your our styles. no were not would you do that. but this is your third anniversary. >> wow. this has been so great to work with you. three years ahead.
>> welcome back, i'm emily chang. coming up, we talk about beyoncé's new album, and how it could impact the digital music business. ceo jeffurntable goldstein. markets,e for on the olivia sterns is in new york. >> stocks have been picking up as we head into the late afternoon. you can see all the major benchmark indexes up. up about seven points. for the week, the s&p is about to fall one percent, this is as investors are upping their
the fed is going to consider taper. ea's big titles like grand theft auto and call of duty are doing reasonably well with battlefield sales coming in and an impressive 1.5 million units. we are also watching shares of ge but globally diversified company is increasing its quarterly dividend. it has increased its dividend every year except for 2008 and 2009. it is lunchtime, and if you have not even, and -- eaten, there's an app for big mac and fries. alix steel has been looking into that, what is this all about? >> think about it like a giant
coupon. you can download the app onto your phone, the new bonds will come to your mobile device, and you will take that to the story order to redeem it. what they are trying to do is lower in younger people, and people with higher income. it is not a way for you to order and buy any kind of food on your mobile obligation. to betty liu at the bloomberg look ahead 2014 conference about this push into digital, here's what he had to say. we weren't going hard after digital, so we have markets around the world that are doing some things in digital, we have some areas where we are testing mobile payments. we have mobile payments in some areas, we have some areas where we have mobile ordering. we have some online ordering in certain areas. manye have not had markets, we have a couple now, but not many markets that have really holistic digital engagement offering. is in 1000 stores,
mostly of empresses go, st. louis, and boston. you should see a dedication to leat mike -- what mobi will mean to mcdonald's in the future. the idea is that if you go into the story might add on action items, which increases the ticket price. the issue is the mcdonald's might not have the researcher to pull it off. starbucks is seen as the crème de la crème of all mobile apps, because they do not have any franchisees eared it is easy for you to buy in one store and redeem in another. areof mcdonald's franchisees, and that is where i felt might run into some trouble -- mike donald might run into some trouble. >> thank you. ," start right now.
♪ >> welcome to "money moves" where we focus on alternative assets. we show you what investors are doing as well as what is going on and hedge funds, private equity,. real estate, and more. a new wrinkle in the fund manager case. he decides not to testify at his trial for insider trading. the head of an angel investor network will join us on the early-stage investment landscape. using social media and mobile webaming, the ceo of the video startup is going to be here. we're going to take you downtown to the lower manhattan courthouse. a gameti