After 2:00 p.m. when we get the fed minutes and we will see what happens after hours.
That is it for right now, to head west for our early edition for "if bloomberg west." thank you, live from pierre 3 in san francisco, welcome to the early edition of "bloomberg west.
." our focus is a innovation and technology in the future of business.
A federal judge says apple did conspire with publisher to fix the price of e-books, citing the words of steve jobs.
Apple vows to appeal.
We are live from sun valley idaho at -- as the biggest names in tech media gather for summer camp for billionaires'. which deal could get done this year?
Digital note taking app evernote had a hack attack,. ] look at how the company is fighting back.
First to delete -- apple has lost its antitrust case over e- books.
A federal judge sided with the justice department ruling that apple conspired with five major publishers to raise the price of e-books.
The judge said she will schedule a separate trial to determine damages and apple disagrees with the ruling.
Apple shares are more are less flat so how big a blow is this?
Let's bring in cory johnson.
All the publishers subtle but apple decided to fight.
The publishers raised the price but if you were to read this document, the court finding it is amazing.
It is well written and lays out the case with lots of evidence on what happened.
If you look at the apple stock chart, it does not tell you anything about what was going on.
This is an example where the stock chart is look debt to explain this but it did not tell you anything.
When they lost this antitrust trial, the evidence that the judge decides is clear what happened here.
The publishers got together and had the problem which was amazon and apple came along and gave them a way to get together and jack the price is to get about how big a blow could this be for apple?
It is not clear on what kind of damages or what the damages will be awarded.
It could be anything.
The business of selling e- books by not be big.
Throughout this decision, the attached the success of the ipad and whether they can prove that is another issue.
White blame at all that was the publisher is?
The publishers got together quarterly in fancy manhattan restaurants without lawyers to talk about this amazon problem.
They call that a malicious problem that was the low pricing.
There were e-mails between steve jobs and these companies bamut even before he got involved, the history of the publisher is getting together to complain about amazon prices.
When they talked about this pricing, they quoted from the document and the actual case, the price-fixing provided the publisher defendants with a vision -- apple provided division.
It was a conspiracy waiting for an opportunity.
They got that opportunity when apple showed up with their plan for this new ipad.
How did the court threw depressing thing?
They looked at what the prices were before apple got involved and they looked at it after.
It was not just a matter damming excellence.
This chart shows you when the price fixing began on april 1. all the publishers with the exception of random house, jack to prices.
This is the average prising from each one of these publishers.
Random house refused to join the conspiracy and then they got involved six months later and then those prices jumped.
Prices jumped across the industry almost exactly at the same time on april 1 of 2010. that is when this began.
It is irrefutable evidence that the judge to test these conspiracies and meetings and e- mails to the change in pricing and that's why apple lost the case.
Apple says it will appeal, thank you.
Eddie cue made the publishing deals and is currently in sun valley, i hope.
He has joined tim cook.
Jon erlichman spoke with both eddie q and tim cook and joins us now from sun valley.
What do you make of the fact that they're there together?
I think it is an interesting development.
When i got here, i asked if there were any big plans and tim cook said we will see.
It is not uncommon for any of the big media and technology companies to come here and groups or teams.
We see it with facebook and a couple of other facebook executives proceeded with companies like disney and news corp.. it tells you a little bit more about what apple might want to accomplish at a place like sun valley with these media moguls.
Eddie cue was the contact with the publishers and the contact with the music labels along with steve jobs.
These days, he is the contact with all the traditional media players and tv players as far as something like apple tv goes.
Is there more on verizon for apple tv as a result of what they could potentially do here?
We recently saw some new apps and we had a chance to talk to john skipper runs espn.
When we talk about who was involved in that process, he talked about 80cue.
Our main point of contact is 80 cue there is generally a pretty good working relationship between apple and espn.
We have applications on the first ipad.
They have consistently work with us.
We know a lot of deals happen as a result of meetings that occur at sun valley.
A lot of the other executives have agendas that are similar to apple.
I think that is a fair point.
If you look at what we reported recently that there are traditional pay-tv players that are putting a little bit of pressure on the content providers to give them exclusive content because they are feeling the pressure from these new services whether it is apple or anybody else out there.
They want to make sure they get what they want.
There are the traditional tv manufacturers, samsung is here and sony is here and have their own agenda.
Everybody plays nice but there is potentially some tough negotiations behind closed doors.
Jon erlichman at sun valley, thank you.
Another big topic there will be the bidding for video streaming service who low.
John ehrlichman will be back with more.
Change has come to the file sharing service we all know as yousendit, will talk to the c e l and you can watch us streaming on your phone, your tablet, and bloomberg.com.
? this is the early edition of "bloomberg qwest." you can catch as an hour later time as well.
It was a change we told you was coming.
The new name for yousendit will be known as hightail, is an easy way to send large attachments and has expanded to offer file storage and management capabilities to 43 million users.
The hope is the new name will reflect that you could do more than just send things using the service.
Here now to talk about is the ceo isbrad garlinghouse.
We used yousendit a lot at bloomberg.
Why are you changing the name?
Headline as a loyal base and it is a thriving business.
We wanted to do more.
It was a great encapsulation of who we were as a company but did not capture where we are today and where we are going.
The cloud is changing and the opportunities there and yousendit did not fully capture that opportunity.
Do you want to go for box clouds?
There are some many other options.
Cloud, sky, syncshare.
We purposely tried to avoid that.
An april fool's day, we did a small joke and lost a web site called pink share.com.
This is an interesting space because there's a fundamental change as to how people store and interact with their data.
There are a bunch of companies in this space.
We are excited to take this forward.
There are a lot of companies in this space.
What makes you different?
It sounds like you want to be a file sharing service like help integrate them all?
One thing we have invested heavily in from the heritage round is to share and control your content.
You have all these horror stories about sharing something and today accidentally deleted it and it disappeared from my computer.
One of the most popular yousendit features popular has been re-receipt,. it's about how your documents are being interactive and will continue to invest in that security and control paradigms.
Also the pricing model is different?
Indeed, if you look at storage as the classic commodity and pricing based on how much story to offer is a difficult proposition.
As part of this relaunch, we are taking storage off the table offering unlimited stores to all of our paid customers.
We have been doing that for our enterprise corporate customers and will now extend to that.
We want to take -- we want to help you get your work done regardless of how much storage you have.
The giants are in this space are companies like drop box.
They said something interesting about wanting to integrate with google and i thought there archenemies.
Was going on there?
Is there consolidation down the line?
I think so but also, there is a fragmentation of interactions.
We alsl use different services.
Even g mel is another cloud service for it would bought a small company earlier this year which is called found where you can cross-cloud that search.
I can find one search across all the services.
This is solving a problem that is increasingly real.
I need to be able to work interactively and manage them in one meta way.
Does no one win?
There'll be a number of companies of consequence.
On our side of the world where it is more professional-oriented customer, there will be multiple winners.
It is not more a consumer play where it is winner-take-all.
I think you'll see several companies in the space because it represents a fundamental change in computing and how people are storing and interacting with their data.
Talk to us a bit about the attraction.
You have been around since the mid 2000's. you are going through a big change but where are you going with this?
What is your vision for the future?
We want to continue to drive that engagement and growth.
Our vision of the future continues to expand from the premium model we have been in and continue to of sell to corporate customers.
We had a record second quarter and cited several more fortune 500 customers.
We want to ultimately help get your work done and part of that is offered on of its stores but features like esign not priced as a separate product but bundled into the same service, when you move files around and you want someone to sign something, we can do that in a simple package.
What did think about these companies selling out?
It seems everybody is selling now.
In the year i have been there, i have tried to get the company focused on our execution.
There's an opportunity and then a tremendous interest in the space because of a fundamental change you are seeing happen.
All options are on the table.
We want to build a company of consequence and if we are ready, we will evaluate what said of next steps that means in terms of i.p.o. and those types of banks.
Since you are the guy who wrote that peanut butter memo add google, what you think about marissa meyer buying out companies.
S? the company is a reflection of people who work there and she has done a good job to get people to come back to the company and x -- and acquisitions.
They have a tough road ahead if she is taking the right steps and as an alumnus, i'm rooting for them.
Thanks so much for joining us.
As media and tektites and descend on sun valley, which company is stealing the spotlight?
That is next on "bloomberg west,"streaming on your phone, your tablet, and bloomberg.com.
? welcome back.
It was a concept that changed the history of mobile computing.
Five years ago today, apple launched the app store and more than 50 billion apps have been lodged -- launched.
Apple has paid mobile developers $10 billion since the start lost and to celebrate the birthday, apple is allowing free downloads of its most popular apps and games.
Direct tv and a partnership of chernin group are offering $1 billion for hulu.
We now go to john ehrlichman in sun valley.
A breathtaking backdrop, perfectly groomed golf courses, and they both love of tech media moguls.
The annual conference in sun valley, idaho may be the perfect place for billionaires' to do business and this year, much of the deal buzz surrounds hulu.
Hulu will be a big deal.
Everyone will talk about it.
In the driver's seat is rupert murdoch and disney's bob iger, two sun valley retailers.
Their companies are the controlling shareholders of hulu.
They on 1/3 of the business and interested bidders include directv.
The ceo's often spotted at sun valley produces not the first time hulu has been a hot topic at this gathering.
It was up for grabs two years ago before its owners decided not to sell.
It will come down to what rupert murdoch and bob iger think is the best direction for hulu.
It can get a deal done, at least the mobile scud work on their golf games.
Jon erlichman is back with us live from sun valley but not on the golf course yet.
We know the bidders are down to directv, at&t, and time warner cable.
This sends a strong message that the owners have decided that they want an owner they could be a business with.
What has been the reaction to the auction from executives there?
From some of the content players, they say it could be an interesting opportunity.
Discovery communications is a major media company and here is what the ceo had to say.
Having hulu as a strong player in the market disadvantage to content buyers.
The more players are out there that wants our content in different windows and a willing to pay significant dollars to get the content, the better for any content owner.
That was david zaslaz.
We will have more from you and sun valley throughout the day including interview with former disney ceo michael eisner on the late edition of "bloomberg west." we will be right back with more of the early edition of " bloomberg west." ? house republicans are meeting today to debate immigration reforms.
The bill passed last month they detected in a but the sticking point is whether there should be amnesty for millions of undocumented workers.
Steve case has been an outspoken advocate of getting this bill passed.
It is not just a problem with me to solve.
It is an opportunity to seize and remain the leading economy in the world.
We've got to win this global battle for talent.
House speaker john boehner is meeting with members later today but he has said the chamber will not take up the bill as it stands and his focus will be on border security.
? this is the early edition of "bloomberg west." let's check on other stories making headlines.
Let's get to deirdre bolton in new york.
Asiana pilots realized five moderate the from landing that they had slowed down too much and not making a proper approach.
The ntsb released the information after interviewing four pilots on board that flight that crashed landed in san francisco.
South korea says it has started a sweeping inspection of eight airlines and may toughen its trading rules.
The chinese company is trying to buy the u.s. smithfield foods.
The ceo will get brill before the senate agriculture committee over everything from food safety to the effects of chinese ownership on the u.s. agriculture business.
More americans are living with more diseases and dying sooner than citizens of poor countries like portugal, slovenia and she led.
The u.s. also failed to keep up with other nations in improving population health despite spending the most on health care.
Those are your top headlines.
Let's show you what is going on in the markets.
There's not much going on in stocks right now and that is because the ben bernanke and the fmoc we will get minutes from the last fed meeting and about half an hour.
That is what investors are waiting for and then ben bernanke will speak after the close of trading today.
Investors are really waiting to get more information about when the fed may taper its bond buying program.
We're not seeing a lot of changes that of that.
In treasuries, which just at an auction of 10-year notes, $21 billion, drawing about highest yielding two years which mes demand is falling for treasuries.
The yield on the 10-year is 2.66%. family dollar is the best performer in the s&p 500 today after the discount chain, but earnings that beat analysts' estimates and their fourth quarter forecast was disappointing to some analysts.
However, the stock is gaining today.
Best buy is going in the other direction after a cleveland research company said the sales trends are slowing.
They are seeing slowing in tv and personal computer segments.
This is a stronger slowdown than we tend to cease seasonally.
And now coming out on pandora, there is a competitive landscape especially competition for pandora from at all.
Are they competing with pandora?
They're looking at the hands free iradio it is on various apple devices.
If you are in your car and you say to your service, it would stop and/or radio and start playing a itunes radio.
Investors are taking this seriously and the shares are down by 7%. interesting, julie hyman in new york.
Evernote had a security breach in march and that meant millions of users had to reset the password.
Cory johnson is back with more.
The two-step verification will include a 6 digit code.
I would imagine security is important to you guys but probably helps to get new customers.
Rights, part of our value is that we will keep them for four years or decades.
You have to be able to trust us with your information and memory and knowledge of gains we have to make sure it is secure in all ways and make a transparency and know what we are doing.
It is two-step verification enough?
Is this an ongoing battle?
Does this fundamentally change things?
Passwords are fundamentally insecure.
People can remember long passwords and i can have different pass code for every side.
Shifting to something more -- other than a password is just.
10 years from now, there might be better ergonomics.
Evernote as been in business a while and you have probably seen changes in how people use their mobile devices now.
One thing that is changing is that some people treat mobile as an end.
. we are saying that mobile as part of your overall light.
You might have a blood pressure coffin or mobile device and needs a handy dandy pocket to keep it all.
Mobile is one part of the ubiquitous technology lifestyle.
Are the user is using cross device things?
We increasingly hear about people who only have cell phones are people who are not buying pc's but will buy a tablet.
I think the death of desktop computers is a little overstated.
About 85% never stops come from people using a mobile device of that is extremely important as a user acquisition . people that make the conversion from mobile to desktop computing, we're getting a 10-20 times more revenue from them than a mobile only use are worried.
I read the court finding on apple but it takes you back to the days before ipad.
There was talk of the new e- reader from apple.
Are you seeing tabla usage change in the way people use the devices?
What is the most common use of the devices?
It is less of a desktop replacement and more of a supplement.
People will have a desktop the sub access to a loud sound.
It tends to be a supplement where it is a more useful way.
We appreciate your time.
The publisher of the "l.a. times, " and the chicago tribune" turning its attention to local tv stations next and you can also watch us streaming on your phone, your tablet, and bloomberg.com.
? 29 -- t mobile added contract customers for the first time in three years.
This comes after the fourth largest u.s. carrier lost 2.1 million contract subscribers last year.
T mobile is holding a press event in new york later today to up to its turnaround progress after a complete a merger with metro pcs.
Let's get back to the annual conference in sun valley, idaho, often called summer camp for billionaires'. it is an exclusive gathering of media and tech moguls.
It is a chance to build relationships and it is like going back to school.
Jon erlichman is live from sun valley.
Relationships is the first thing you see when you get here.
I saw barry diller mark zuckerberg talking.
They are on the same page when it comes to policy.
Upon arrival, you saw a lot of execs hugging and and that can be the foundation for partnerships and deals . we spoke to bob johnson who founded bet and did a deal here.
Coming from my guy who did a deal when i sold bet to viacom, it happens.
For other people, it is more of a relationship building and maintaining and talking about opportunities.
I don't think anybody waits to come here to do a deal.
There may be some relationships that help get the deal done but people come out to enjoy the camaraderie.
These guys can potentially learn a lot, too?
Yes, they have these sessions and day attendance sometimes they are about the industry but many times they are not there was a session this morning about the future of education.
There's also an opportunity for them to learn about young companies.
Look at price line.
Their five-year stock chart is incredible.
Many would say the cbo estimate good job but does that have to look at every step -- every new small-company.
One thing he likes in sun valley is learning about the new tech players.
I -- they do a good job of bringing up new companies that are coming up.
It is always interesting to see how they are doing.
That was jeffrey boyd.
We will have much more coming from you and sun valley throughout the day and on the late edition of "bloomberg west." a big media move is happening outside sun valley.
The tribune company is spinning off its newspaper business and shifting its focus to local tv tapes stations.
Tribune has 42 stations in 33 markets and the move comes after the company acquired 19 more stations earlier this month.
Cory johnson is here with more.
Local tv stations?
There is big money in local tv now.
It has changed a lot on the last few years.
Tribune is coming out of bankruptcy and has gotten these two businesses that are very different.
They are both local media but the newspaper business is shrinking and the tv business is growing.
One of the reasons why it revenues in tv are growing so much is because the carriage beat of the new competitors and the satellites and gone up quite a bit.
There are as low as 15 cents stick to $1 for each cable subscriber.
That kind of growth mes is not just about advertising.
Is about having the stations and putting out content on those tv stations.
Splitting the businesses up makes it clear what these businesses are unmakes eat less obscure.
How close did the tribune get to selling?
There were some big names sutures of the newspapers.
They wanted to buy a piece mellon attributed don't want to sell them that way.
Warren buffet, rupert murdoch, david koch were mentioned as possible suitors for these newspapers.
Rupert murdoch may have been specifically interested in "the l.a. times." warren buffet may be interested in small-town newspapers.
Everything is for sale.
We will see if they want to come to that price.
It is clear that the tribune company will split them in two which is not easy because of debt issues.
Still ahead, new york is the first city in the next states to lend its own dame -- domain name.
We will show you how the web could introduced new york businesses.
You can also watch us streaming on your phone, your tablet, and bloomberg.com.
? this is "bloomberg west, "streaming on your phone, your tablet, and bloomberg.com.
New york is the first city in the united states to land its own domain name.
It was awarded before others requested by big internet companies like amazon and google who want domain's like .book.
Joining us from new york is kevin ryan, chairman and founder of many companies, great to have you back here.
You are a serial entrepreneur and co-founded guilt and also the insider and doubleclick and in chairman of a number of companies.
What kind of impact will this have on the business of the startup community in new york city?
I have been pushing for this and i think it will be great.
It expands the number of great addresses that companies can use.
There are so many new york based company who can use the . tyc because the .com is taken.
New york is expanding and doing better in the its on-line and internet space.
It is a huge success and a good sign.
New york is an international city.
Does it make sense for other cities to follow suit?
I think that cities should and will follow suit.
It will be helpful.
There are so many local businesses and in makes sense for them to be identified as coming from la or san francisco or new york.
New york is a global city so it is more important here.
There are fashion businesses that are located here but want to be known as located here.
It is helpful for them.
It is disproportionately helpful porn york but it is good for every city.
I know your launching another set up.
We don't have a name yet and i will be launching something this fall.
We want to see if the timing can work.
Can you give us any hints about what you are working on?
No hints yet but there will be at least one launching in the fall and at least one next year.
Let's talk about the multiple things we know you are working on.
Guiltgroup where you are ceo and you said guilt was on track for an ipo in 2014. what does the timing look like now?
If we don't have any fixed deadline.
2014 would be the earliest so somewhere between that and a year or two after that.
You wonder whether going public helps your business.
Most companies are going public as late as they can, not as early as they can.
Gilt is a company that could have gone public years ago.
I feel pretty good but no rush.
Have talked about the benefits of starting in silicon valley.
A lot of the early adopters are out here.
There is no $10 billion a tech company in new york.
When will it -- when will there be?
That takes a long time.
I don't agree on the former.
But in certain sectors, new york is pretty dominant.
If i look at the media companies, on-line media companies created the last five years, i was the biggest ones are huffington post, business insider, but as feed, gawker and they are all in new york.
If you are enterprise software, a san francisco is still dominant but you see the rate of growth in new york better and is leveraging the businesses that are based in new york.
There is the talent, the writers, the fashion designers.
It is not nearly as big as that the system yet but it is doing extremely well.
The city has made attempts to be more friendly to the technology community and build that technology community.
I understand there has been buzzing about you running for mayor?
I am not running for mayor.
Some people did approach the one year ago to suggest that.
I think we have a number of candidates and it will be interesting.
I think each mayor now comes into power in new york has to be tech friendly and wants to be tech friendly and almost all the candidates have been reaching out to the tech leaders to get support and get ideas.
New york is becoming a texas city among other things.
-- a tech city.
What about jacket dorsey?
Would you like to see him in that job?
A number of people can't do it and jack does not live here.
There have been rumors recently that jack hittery may run for mayor.
I think he would be a fantastic candidate from tech community.
I think tech will be an important part of the conversation.
We will certainly be watching.
Kevin ryan, thanks so much for joining us today.
Coming up, more of "bloomberg west." ? welcome back.
Coming up on the late edition of "bloomberg west," we will have more from summer camp for billionaires.
Our jon erlichman is on the ground there with the latest on the big deals that could be brewing.
He will speak with warmer disney ceo michael eisner.
Well, the u.s.-a you trade talks are taking place this week in washington.
Today, corporations and other stakeholders get the chance to make their opinions heard, including the tech community.
What other companies hoping to get out of this?
This could have a huge business impact.
We are talking about producing $10.5 billion in tariffs.
Important to point out -- another big bowl in negotiations replacing a patchwork of rules with common standards.
A lot of companies talking about ebay, a lot of tech groups.
They have a lot to say about that.
They are among the stakeholders making presentations at this complex near the white house today, and that is going on as we speak.
What are the big tech priorities then?
Intellectual property is one.
Cross-border data flows.
Another big hot topic -- privacy.
The eu has been trying to put in more protective rules, give consumers more control.
Meanwhile, major u.s. tech companies are against that, and several consumer groups are going to argue that the issue really should be addressed separately.
This text has been automatically generated. It may not be 100% accurate.