Dell Sweetens Bid: Bloomberg West (08/02)

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Aug. 2 (Bloomberg) -- On today's "Bloomberg West" the focus is on innovation, technology, media and the future of business. Hosted by Emily Chang with Editor-at-Large Cory Johnson and Senior Correspondent Jon Erlichman f31om Bloomberg's San Francisco studio, it showcases the personalities, companies and trends that are transforming the global economy. (Source: Bloomberg)

Live from pier 3 in san francisco, welcome to "bloomberg west," where we cover the global technology and media companies that are reshaping our world.

I am cory johnson.

Our focus is on innovation, technology, and the future of business.

Let's get straight to the rundown.

Could president obama get involved in the ongoing dispute between samsung and apple?

And in 11th hour from michael dell has delayed again.

Will this swing shareholders back in his favor?

And google's big debut in the smart phone market.

Lots on the line for this company.

First, michael dell sweetening his bid for the company that cares his name.

Michael dell and silverlake have boosted their offer by $.10. they are also offering a one- time dividend of $.13 per share.

In exchange for the higher offer, dell will get the voting changes he has been seeking.

They've been holding the stock since august 13. the abstentions will no longer be counted as no votes.

But carl icahn will not go away.

He tweeted today, we are pleased to have one another battle -- to have won another battle.

The skoda cristina alesci amount rock, texas.

Will this change the outcome of this deal?

They pretty much made this deal bulletproof.

There is an increase in the price.

That does not have the regular dividends that the company promised shareholders.

Then you have the change to the voter rights.

One that will allow more short- term holders into the name to vote.

Basically, have the vote go in michael dell's favor.

And the extension that will help michael dell look at this deal.

And then they did a huge favor and scheduled the annual shareholders meeting after this deal closes which illuminates a -- eliminate a proxy contest.

It really limits the ability.

I wonder which of these changes is the worst one for carl icahn?

The annual meeting change is probably a big one.

They -- the rice increases is a big.

The dollar court is if he has any shot he is to convince a delaware judge to go forward and stop the vote.

Or potentially accelerate everything and force a meeting to take place either at the same time as this partial vote on this deal, or this -- or before the vote.

Is it hot down there?

I and melting, cory.

No one ever melted so well.

Now let's turn to apple which is facing pressure from the two government agencies.

They been forced to cancel existing agreements with book publishers to read this comes as the ipad maker fixed prices.

Apple has not responded to our request for a quote.

They did say apple did not conspire to fix e-book prices, we will continue to fight against these false accusations.

When we introduced the ibook store, we give the customer more choice injecting much-needed innovation and competition into the market.

They want to say we've done nothing wrong and we will appeal the judges decision.

Jon erlichman joined now from los angeles.

What deadlines are they up against here?

I think we have to look at this from the side of the government versus the side of apple.

From the government side they've been aggressive since the justice department pushed forward this this fashion within this.

The jets permits on opportunity -- the justice department saw an opportunity.

When you look at what was proposed by the justice department, it is difficult to see how apple would be on board with every thing on paper.

The idea that apple would be ok with more -- the ability to more easily link to amazon or reasonable if you're reading on your ipad.

The more important, the idea there would be restrictions on their ability to do content deals with music or tv or film companies.

Those would also be seen as raising prices at rival retailers.

The potential future of apple and television, there were so much important stuff happening with the future of this company.

Which makes what is happening with this case so interesting in terms of what positioning does apple ultimately take.

Outside of e-books, on a lot of their older products there is been a ban.

What is going on with that right now?

Just as compensated, but for different reasons.

-- just as complicated.

In a situation like this, the government has the ability to overturn the decision.

The timing on that is august 4 for washington to step in.

We know it is rare for the president to do so.

Whether it comes to issues like commerce or trade and how the u.s. is viewed on those fronts or how it would affect the relationship with korea.

You have to think about where apple is with its product placement.

This is a ban on specific roddick from specific carriers -- specific products from specific carriers.

We know that with apple it is really important to have older models on the market because those are their lower priced smart phones and that fuels sales for the company.

The question for apple is where we in the product cycle for the next iphone to be launched.

And how would the products facing a been affect future sales.

A lot of hard questions.

With all the speculation for a low-cost iphone, interesting.

Enemies are just plain old foes.

Motorola takes on the smartphone market.

We will give you the relationship between apple google and saint-saens.

You can also watch us on your phone, streaming on your ipad, or at bloomberg.com.

? this is "bloomberg west" on bloomberg television.

Streaming on your phone, streaming on your ipad, or at bloomberg.com.

I'm cory johnson.

Yahoo just acquired a company that increase in horovitz was advancing new ideas for browser.

And who better to discuss this.

Mark covers yahoo and lincoln -- linkedin.

They announced this month ago, i wonder what you think?

You acquisitions shopping spree?

I think that is between 15 to 18 in a short.

Of time that marissa mayer has been ceo.

Whoever came in as ceo had to do acquisitions.

The only one was tumblr.

Bring in smart engineers.

Why not use your r&d budget.

I don't know if this does anything for the business.

Why do you think tumblr is the one that contains things?

It is a website with an enormous number of users.

For the past 15 years we have learned that if you bring enough users to the site, you will figure out a way to monetize that.

Did they need to worry about user attrition?

As i recall, they do not get us hard numbers like facebook.

Tumblr or yahoo?

Both.

Yahoo has been a stagnant asset for the past five years.

They had to decide whether to bring in a growth ceo.

There is no evidence that she has turned around the business.

We should not expect that for another year or two.

I missed linked in's quarters.

There was a strong growth.

Where you might expect them to be slowing down.

I think the market overreacted to this that does happen every once in a while.

God for bid.

They had a little reacceleration since the ipo.

You have 20 million members.

-- 200 million members.

This company should be able to sustain.

There are about 600 million worldwide and one third of them are on linkedin.

You also have their talent solutions business.

That continues to do well.

They had a record number of corporate customers.

Finally, there advertising business that is going to a pivot and they're trying new ad feeds similar to facebook.

They are often mistake it will work for them.

It seems they are dabbling in a lot of different strategies to put content out there by hiring journalists and have people write things.

They seem to like these different ways to offer content.

And why not?

They are monetizing all the people coming to the site, so why not try other ways to monetize them?

You probably noticed in your newsfeed, that content is becoming more relevant to you over the last 12 months.

I think they've done a smart content.

. -- smart content period.

I am very respectful that they have three different ways to make revenue.

That is an unusual accommodation in the internet today.

And it is not an insignificant business.

It is a big growing.

People usually like that.

I knew that, one of us would have to explain it.

Google's motorola mobility unit, they rolled out their new exponent yesterday.

How to google and motorola contribute to this device is design?

That is next on "bloomberg west." ? this is "bloomberg west" on bloomberg television.

I'm cory johnson.

The new phone from google and motorola is entering an already crowded market.

It debuted yesterday.

The phone comes with all the features most smartphones have plus all day battery life and an allegedly instant start camera.

The starting price$199. right now on the u.s. there are three main competitors apple, google and saint-saens.

-- and samsung.

And they need each other these days.

Samsung's phone are based on the google os.

And even apple is google maps.

Even though it they are are at times partners of a different marketing messages.

What does that even mean?

First, they were the anti- apple.

And now they are the cool alternative to apple.

There is a super bowl ad that featured seth rogen and paul rudd.

I'm here to see a guy named sam sung.

They've been so formulaic over the past two years it has gotten stale.

Their latest changeup is talking about how they are made in california and stressing their u.s. roots.

This is our signature and it means everything.

Google coming out with their first phone and they are talking about how they are made in the u.s. as well.

I think it is inching the cap the motorola name because it is not necessarily a cool name.

A lot of younger people, motorola is a blank slate they can re-create.

They will say they are an american brand and assembled in the united states.

That was todd wasserman.

The motorola x smartphone is a collaboration between motorola and google.

So how do two companies with different business models come together and make this phone?

Surely john is jet where he -- weary.

Tell me about the phone.

It is an important story and how culture at a company can effect devices we hold in our hands.

That is why it was interesting to talk with a senior executive at motorola mobility, a design guy that is worked for a number of companies that has been at motorola for basically a dozen years.

I asked him about how that change with google coming and affected the way they thought the design.

What happened with google is the opportunity to reconfigure our business model.

Going from scale and derivative products and incrementally, to reset our brand with fewer products.

And with those fewer products make them fantastic with the quality and design.

What is the medication like between google and motorola when it comes to -- this is our design plan -- how does a work?

The design plans, the creation of the product was one that was born of the people in motorola.

It was less of anyone telling us what to do.

We were developed as a separate business within google.

The biggest opportunity was to reset the brand and go after something you believe is innovative.

That repositioning for design was a big step that open up a whole new set of doors.

So culturally, do you think motorola finds itself in a different position than some other manufacturers today because of it being part of google?

Unmistakably there is a whole business that puts us in a different position.

But culturally it was two cultures.

Motorola has a fantastic heritage.

In terms of the love for the product, the love for technology , bringing those two together.

Us within google as "we have become much more consumer focused and we have before.

That was a jim wicks of motorola mobility.

I asked what kind of feedback yet and he said is very matter- of-fact, just to do it.

If there is a way to make it at her, go out and do that -- to make it better.

And that's the way we have seen google things about a lot of products.

Just do it.

Time now for on the markets.

Olivia sterns joins me from new york.

Let's take a look at how markets are trading.

Equities are flat and investors are weighing the u.s. jobs report we got this morning.

First we saw equities fall the and a disappointment coming at -- with 16 2,000 jobs added in july.

Two-putt games we want to highlight -- two quick names we want to highlight -- dell.

Also moving today the biggest laggard down about 7% -- carefusion corp.

More bloomberg west after the break.

? this is the early edition of bloomberg west.

I am cory johnson, in for emily challenge -- emily chang.

The stories making headlines outside of technology, the state department has issued a worldwide travel report for americans for unspecified terrorist threats from al qaeda.

America in the middle east and have to are urged to be particularly cautioned.

The u.s. is easing the process for same-sex couples to get visas.

Starting today, the visa process will operate the same as it is for heterosexual couples.

The obama has urged all to review their policies.

A huge brawl breaks out in taiwan's parliament.

Lawmakers put each other in head locks.

The opposition to a power plant poses safety hazards.

The plan is not built.

It looks like data from s&p index shows u.s. recovery in housing and residential real estate is gaining momentum.

Rising a seven-year high and made.

One of the big benefits of the bone, a whopping 703% this year.

More people look for homes and it is truly adding users to talk with growth.

Pete joins me now.

You reported wednesday night?

Yes.

And?

It has been very hot port -- received.

A quarter record users on the consumer side up to 35 million up around 49%. growth accelerate?

It is great.

Heavy product investment.

They the very best products for you as we build great products and giving consumers much more than just data.

Real insight.

We have a team here in san francisco.

Just building great stuff for consumers.

I talked about your beneficiaries and the rising real estate market.

That is surely true.

I would argue you would benefit a matter what the market is giving you to work with.

We feel very fortunate.

We have been building our business during the tough times of the market.

Now you're seeing the housing market comeback.

We are in a fortunate position.

Generally, you see from the data home prices are up but not that much.

We think that driving home sales is more of an impact on our business.

We think right now we are not seeing a huge impact on the housing recovery.

Over the next several years, as more agents spend more money and make more money, they reinvest in the business and we will be a beneficiary.

A lot of hedge funds have been investing in foreclosed homes.

What has the effect been on the housing market?

When you look at the housing data, you see the so-called investment properties or properties bought by professional investors, during the time of 2009, 2010, 2011, that was a significant number of home sales.

Now you are starting to see them pull back so they are pulling back in the number has returned to a more normal number.

We are seeing jobs numbers today, unemployment numbers inching down, the economy is getting incrementally stronger and returning to a more healthy market.

Being a real teller -- a realtor is a generally crummy business.

You have to spend your own money.

Is it different than it was five years ago during the last bubble?

I would not say it is a crummy business.

It is a hard business.

We think real estate agents have been underserved -- underserved by technology.

You see other industries change the world of a recruiter to be a much more technologically enabled -- we see real estate agent being more technologically enabled role.

The leader in providing software tools for professionals, so in the same way we inform -- transform the consumer side, we also now transform the realtor side, information that goes inside and on top of the lease that says, maybe i should give cory a call and just facilitate in that profit.

If some people think it is a crummy job, our job is to make it less crummy i started looking at the role of a real estate agent and it is shocking.

They make money and make a business out it and are surrounded by people who dabble in the business for a few years and find them spending an inordinate amount of money.

Do people understand the business more with technology?

Yes.

You see the ranks start to increase.

The realtor numbers, they have been declining.

Now just north of one million.

An incredible number.

The ranks are rising.

Our belief is that they are younger and tech savvy professionals who are saying, i want to build my business using marketing tools interesting stuff.

Thank you very much.

Nickelodeon and mtv have -- are bringing in ad dollars to their parent company, viacom.

? bloomberg news is one of the top communications considering a commendation with charter communications.

The president talked about the deal with representatives from liberty media, which owns 20% stake in charter.

Also considering an application of time warner will -- time warner cable.

The company posted sales of 14% and doubled its stock to $20 million.

Jon erlichman comes to talk to us.

When you look at this business, what is going right for these guys?

Class when you see a company going to buy a lot more stock, sometimes skeptics will say that is to help your earnings-per- share numbers going forward.

But the man widely credited with coining the phrase, content is king, it is true today.

You look at the results and highlight the growth.

You have spent time over at it -- nickelodeon there is a lot of concern about some of the eyeballs watching key properties viacom holds.

At the end of the day advertisers are struggling to find the best places to put their ad box.

Spongebob has been a safe bet in the past.

Class it is in dressing.

Nickelodeon was positioning it as if they were a re-energizing road for new shows as a post spongebob and dora the explorer era.

The idea was on the backs of spongebob and so on that viacom was a faster growing business.

Cbs has done well.

Class it is an amazing story.

Stocks traded around 10 bucks in 2009. to the point about slower growth, people were not sure exactly where broadcast television was going.

Cbs has other assets we see as slower growth.

What has changed since six or seven years ago?

The rise of netflix and amazon has created a new home.

Of course, there is also a big fight over retransmission fees.

The cable companies pay broadcast networks more money for their own programming because of what the cable channels are now getting.

Let's not forget today is another deadline day in the battle between cbs and time warner cable, which have been having a hard time agreeing on what exactly those should be.

Thanks a lot.

Mark zuckerberg makes his first public remarks on immigration form monday.

We will get a preview next.

? i am cory johnson.

The cofounder of paypal can trace back to illinois charlie rose sat down and asked matt if he knew her back in the glory days.

When the famous six left to start netscape, bunch of us were hired rapidly.

In that sense, i literally followed him.

Interesting stuff.

You can catch the full interview tonight on the charlie rose show.

We turn out to immigration, an issue many silicon valley have a stake.

Mark zuckerberg is expected on monday to have its first conference on immigration reform.

That group started by the cofounder of hewlett-packard.

It is interesting for me to watch the new guard of silicon valley executives get involved with politics.

We are thrilled.

Our members include facebook and google and other newer companies that have had such an important global resins.

When a step forward on a major policy issue like this, -- i cannot figure out if this is about immigration for store about immigration at all.

If this is the issue or the beginning of more political involvement by not just facebook but the new guard of social media companies here in silicon valley.

It is the beginning of deeper engagement across technology sectors, with some of these newer companies.

Many of whom are members of the silicon valley leadership group.

When david packard started our organization 37 years ago, it was similar.

People said technology is finally engaging.

It has been engaging for decades.

What need -- what we need to be sure of is that newer companies coming up, often with young founders, young ceos, understand the importance of equality.

We are partnering with facebook and the new organization he has formed , collectively worked together.

-- so can valley, somewhat young people getting rich and powerful fast.

It is not the path things move in washington dc.

What is this process by which you are meeting this executive and you want to get something done in washington.

What do you teach them?

We tried to remind leaders in the strip that we are on right now in washington dc for the last three days, as a key example, that members of congress are almost across the board incredibly smart, yet usually lack private-sector experience, let alone technology and innovation and economy experience.

We cannot take for granted they know our world anymore than we know they're the world.

. what we try to do is build the bridge, talk to them in a way that does not put them on their heels or make them stop listening, but explained the importance our success, not only as america's innovation economy, but the economy overall.

How do you kick off a conversation?

What should you not say?

You mentioned the young startups and young him or -- intimate -- innovators.

Everyone loves start up ceo's is.

The only start to hate you when you become successful.

We remind folks to be real, be yourself, head and heart, give them good accurate data and your own stories, and make it relevant to what they are trying to address.

Our ceos are not poly-cy majors or government affairs majors.

They are technologists, innovators, and entrepreneurs.

That shines through with legislators.

Their sincerity shines rue.

They have left their own global businesses to attend to the nation's business is universally respected it is more than writing a check.

The leadership, nearly 40 years old, founded by david packard.

We do not write political contributions as an organization.

We do more traditional types of advocacy.

We do not play in that game at all.

Others do and we think that is legitimate.

But that is not what we do . thanks a lot.

"bloomberg west" just after the break.

? welcome back, i am cory johnson.

Coming up, people spent hours playing video games but gamers are spending hours watching people play videogames.

We will talk to the ceo of twitch, a company that allows people to broadcast gameplay in real time.

Time now for a look at what is moving on the markets.

Olivia sterns is here.

Left look at how markets are trading right now.

Equities are pretty much flat.

The disappointing jobs number coming out.

It is the lowest figure we got in four months.

Perhaps investors looking at other data we got today.

Consumer sentiment figures coming in line and earnings continue to roll in.

Some things i want to highlight for you right now, shares are up as much as 10%. now, 7.5% to its highest level since 2007. the reason for the move, shares rising 2.5% after they said they would pay their first dividend since 2008. shares are now about 36% year to date.

The jobs number today was a disappointment.

How are the markets taking it?

A little bit of a week jobs number.

How are they reacting?

They are taking it in stride.

Sometimes, the market does not do better on a weaker jobs report, pointing out they could hit a low and hit their high around 2 p.m.. if you take a look at what receptors are doing well,

This text has been automatically generated. It may not be 100% accurate.

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