Is $1 billion that blackberry is trying to negotiate with the and -- with the canadian government.
A couple of?
's that if answered in a positive way on friday it would be more for people to say this gives them more ammo to last another six months to a year.
Amazing to hear about it.
A company grasping at straws ? live from pier 3 in san francisco, welcome to the early edition of "bloomberg west." i'm emily chang.
Our focus is on innovation, technology, and the future of business.
Let's get straight to the rundown.
Facebook is getting ready to unveil its first video ads.
They will play automatically.
Will it be a hit for advertisers or a turnoff for users?
President obama meeting to talk nsa surveillance of healthcare.gov.
And in a year packed with big news events and product releases, nelson mandela was the top trending search term on google.
We break down the other searches topping the list in 2013. first to the lead -- facebook is getting into video ads as the company looks for new ways to make money.
They are launching a limited test program for the videos.
Selected users will see videos for the new film "the virgin" in their newsfeed.
The video will be played without sound, just like they do with users'videos.
Cory johnson is in new york with a closer look at the trial.
What you think about the mechanics of this and how it will work?
Is it going to work?
Advertising is a religious thing.
It is an article of faith.
You believe it works or it doesn't. now you mentioned the stock price today.
The stock price since the ipo has going on -- has been going on along steep rundown and a long increase since then.
So, this ad process -- let's talk more about how this is going to work.
These ads have been selling for a higher price than in the past.
They could generate as much as $1 million, $2 million in one day.
The average length is 15 seconds.
There is no audio unless you click on the add.
The idea is this will be another tool in the facebook quiver.
Let's look back at facebook ads.
Mobile has become a bigger piece of the pie.
Facebook is so big -- no wind with conversation can lump this in with twitter and things like that, but there was nothing like it at the time.
It has billions in advertising revenue.
You can see the flywheel working with mobile advertising.
The year-over-year growth in this segment is also impressive and faster.
It is big and getting bigger at a faster rate.
How could video ads impact the growth we have seen?
Fundamentally the notion is to get higher revenue rate for users.
It is a higher revenue for ads that cost more for the advertiser to run them -- or the marketer as they like to say -- or to see that value increase.
That is one of those metrics i have had to squeeze out of facebook.
Things continue to get better for the company, including mobile.
This is a way to get more revenue per user which is key to facebook as they reached the limits of how many users they can get to.
All right, cory johnson, editor-at-large, thank you.
For more, the ceo of freshwire joins us from new york.
Freshwire provides content for clients like aarp and hershey.
The sound will not be up.
The video will play automatically.
How does facebook do this right without getting a backlash?
Facebook has been testing this a while.
They know that the users are their number one right.
Facebook takes the experience -- it's very immersive.
They have to get it right.
They are touting the fact that users can scroll past these things very quickly.
The audio is off.
I think the gamble is relatively low.
I think the bigger issue is will users engage with them, not will they be upset i them.
-- by them.
Do you think they will?
It depends on the content.
If it is a video ad, game over.
They will cut that thing down and there will be limited engagement.
If they are willing to take chances and play with the platform, it could be a winner.
Tebow taking risks?
What do you mean -- taking risks?
What do you mean?
Look at what ge did with their vine videos.
Something that is not necessarily groundbreaking, but pretty useful and cool and innovative.
The trick is really reading the audience, reading the platform, and stepping outside the comfort zone a little bit to use a tool that is because given them to try something that may be a new territory for them.
The tv advertising market is almost $70 billion.
How much could facebook conceivably steal?
They want all of it.
This is the message every digital platform is saying right now.
This is no different from youtube, all the digital platforms.
They all want to say that tv is dead, tv is over.
All the dollar should come to digital.
Obviously there is some truth to that and facebook is a really good job targeting their audiences, but tv is still a massive juggernaut.
To say it is dead is a little misleading, i think.
All right, shawn emos, ceo of freshwire.
Microsoft says that it is preparing to complete its ceo search by the end of 2014. they originally said they would complete the surge by the end of this year.
Looks like this is not going to happen.
I want to bring in cory johnson for this.
What is your take on this?
They are narrowing it from 20 to a smaller list.
I do not think they would be giving us this kind of heads up.
They gave themselves a full year from the announcement to find someone.
If they are going to say publicly it will be faster than that, it has to be getting close.
It has not just been a discussion about the person.
They have to get their head around the strategy.
We know there has a 10 -- there has been a big corporate reorg.
This gives them a chance to review what they are doing and what is going on in the world of computing.
They have really talked about genetic changes in the way technology works.
Really just in three years time.
Microsoft really seeing so many changes going on has got to address that with the pick of the next ceo.
All right, we will continue to follow the story.
Microsoft hopes to complete the ceo search in early 2014, early next year.
Silicon valley heads to washington.
We have the details behind president obama's meeting with top leaders in technology after this break.
You can also find us streaming on your phone, your tablet, and bloomberg.com.
. ? welcome back to "bloomberg west." i'm emily chang.
Tech ceo's our meeting with president obama at the white house today.
Tim cook was just spotted leaving the meeting.
Eric schmidt also among the leaders meeting to discuss healthcare.gov.
We are joined by julianna goldman.
What's we have on a reading on this meeting?
What do we know?
So far we have only heard from saying cook -- from tim cook.
Our producer that tim cook on his way out.
He said it was a great meeting.
We could expect it was a frank talk.
Especially when it came to the nsa surveillance.
We know that the tech industry is really under fire for participating in the nsa surveillance program, particularly when it comes to collecting metadata.
It is hurting business abroad.
They are facing tighter regulations overseas.
The white house wanted these tech execs to come to them to talk about health care efforts to fix healthcare.gov and the group said they would only come if the nsa could be on the agenda.
Again, we expected -- it is certainly right for them to be talking with the white house about this given the ongoing review that president obama is undertaking.
We know that facebook ceo mark zuckerberg has been pretty critical of the administration when it comes to nsa saying they basically blew it in exactly those words.
What were executives hoping to get out of this meeting when it comes to that portion up?
-- portion of it?
Apple and yahoo!, the companies whose representatives were at the table -- they sent a letter to president obama and members of congress raising issues with the nsa program.
One of the things they said was that the u.s. should be taking the lead going forward.
They also want to be able to rein in the program, to determine ways that they can determine how their culpability is limited, to prevent the government from participating in the collection of some of this data.
This comes on the heels of the administration's review of these policies, the president receiving the classified version of his outside panel of x boards -- of experts recommending changes to the program.
Also the white house had a meeting a couple hours after the federal judge ruled the metadata collection problem -- program is probably a violation of the fourth amendment.
We also got a big announcement about healthcare.gov, who is going to be running it.
And it is someone from the tech community.
Yes, it is someone from the tech community.
Probably welcome news.
Everyone has wondered who would replace jeff zients when he goes to the white house, and it will be kurt del bene from microsoft who will oversee the website fixes.
Thank you for that update.
One of the key tools that the government used to repair healthcare.gov is new relic, and for more i am joined by new relic's ceo.
Thank you for joining us today on the show.
The government basically came to you and said, we need help, right?
Tell me what happened.
We got a call in october and i noticed that an organization called hhs signed up for our software.
I ask, is that the hhs i think of, health and human services?
They said yes.
We thought that this was an opportunity to do what we do well to provide visibility to complex systems to help tough where people fix problems in production.
That was essential to helping healthcare.gov improve performance.
How did you do it?
How did you help fix the site?
There are many people and many products involved.
What our product does is it puts visibility into the code that is running inside the white site, inside healthcare.gov.
We will detect and help those people figure out what to do to make things faster.
So what were the problems?
There were many problems and i do not think there was a silver bullet.
These are very complex systems.
And these complexities are not just in healthcare.gov.
These are most reduction web applications.
The nature of the problems we had are related to complex integration of software talking to many external systems as well as the code it self.
-- the code itself.
What feedback did you get?
It seems like there was a lot to work on.
There were hundreds of people and the question is what you put your people on?
Where do you get the most bang for the buck in fixing the software?
We saw at reduction on the error rate from six percent down to less than one percent.
That is a dramatic reduction in errors.
Obviously you guys have been doing well outside the government using your software.
You have so many different web apps, smart phone apps.
What are your plans going forward?
Is there an ipo in your future?
Hillary ran as the president of sales up until just last week . now she is joining us to hopefully create a company that has the kind of impact a salesforce has.
We want to make companies around the world just make their software work in production.
That is a massive opportunity.
Yes, we hopefully planned to be a public company that has an impact for decades.
Thank you for joining us on "bloomberg west," great to hear how you helped work with the white house.
It is our honor.
In the digital age, live performances.
That is next on "bloomberg west ." ? set both this is "bloomberg west ." i'm emily chang.
The music industry is going through a tremendous change.
How are artists getting people to those concerts?
My partner cory johnson is back to explain.
That is the great irony, right?
Apple, pandora, napster decimated the music industry, but they are turning to them for live revenues.
These stage set is dominated by a technology driven firm.
1, 2, 3, 4! ? the concert business setting up for a high technology.
These days the best show off and is the best stage.
It is an arms race and the leading armed dealer is a private company in the heart of amish country in rural pennsylvania.
These days you build your relationship with your customers in the line of experience.
Justin timberlake, elton john ,u2 -- all have turned to tait.
We have people who went to airing school.
The process starts with 3-d modeling on software.
They are shipped all over the world, slapped together, disassembled, and shipped to the next gig.
The man behind it all is james whitten ferrell.
He started it when he was in college.
We have to do it financially responsibly, which is usually the most difficult thing because everyone has champagne wishes and caviar dreams, but they do not have that budget.
There is a lot more money to be made from live shows than recorded music.
Michael boucle -- buble used tait towers for his biggest chore yet.
If you are going to ask people to come to an arena and sometimes set a foot ball field away from you, this is necessary.
They are changing the music industry.
? [cheering] thanks in big part to tait, buble's tour has been a bit success.
It is the seventh largest tour this fall, grossing 850 thousand dollars a night.
The average ticket cost is 88 rocks.
Christmas is approaching -- have you?
You have to tell me what you like.
A very nice guy.
We talked about music, jazz music.
He is an interesting guy.
He is focused on that performance.
It's really not so much the music or trying to get the right sound but he wants the performance to be special to people.
It was interesting to hear him ramp that business of the tour, make it a bigger and bigger deal.
We will listen to tomorrow a similar artist -- phone, thugs, and harmony -- well, maybe not that similar.
They did a tour this year and i spent some time with those guys.
Who were little different from michael buble.
When you interview beyonce, i will be impressed.
I think she lives upstairs.
I will get on that.
All right, time for on the markets.
Olivia sterns is in new york.
Coria is going to be speaking to bone, thugs, and harmony and has not mentioned it yet.
We are off the session lows.
The s&p off .3%. we had inflation data earlier that show that inflation was unchanged from the net -- month of november.
His stops we want to highlight.
Irobot upgraded to a buy.
The new vacuum robots and extension of the mopping robot should extend sales in 2013. ? this is the early edition of "bloomberg west," i'm emily chang.
Now for your bloomberg top headlines.
The bipartisan federal budget deal has cleared a key hurdle.
The u.s. senate voted to end debate on the spending plan, setting up a final vote on the measure tomorrow where is he expected to pass without a problem.
German chancellor angela merkel has been sworn in for a third term.
It took her three months to build a grand coalition.
Today's swearing-in date -- comes two days before any eu summit in brussels.
Tonight's mega millions jackpot has just soared to six hundred 36 million dollars.
Lottery players rush to buy tickets, it is the second- largest lottery jackpot in u.s. history, it is closing in on the record $656 million jackpot that was split between three winners last year.
The odds of winning are one in 259 million.
Google has released its top trending searches of 2013, which are the queries that have seen the highest spike in traffic and the last year.
The anti-apartheid leader nelson mandela who just passed away top the list.
Here to discuss with me more about the top 10 searches is google trends expert kate mason.
It is sort of surprising that nelson mandela still top the list even though it happened so recently.
You saw some interesting trends when he came to him.
He had quite the popularity throughout the year, but with his passing recently, there was a spike around his name.
Tell us how you put this list together, because it is not the most popular, it is actually trending, and those are different things.
There's a difference between what is most certain for, which is like weather and information quickly, versus what is trending.
Eggs bikes happening, those of the searches that give us a better insight into what is on people's minds.
Two actors, paul walker, cory monteith, died suddenly this year.
Is that something that can happen to comes to celebrities?
It is a reflection of why people search.
They look to get clarification but on other times they just look for breaking news.
The iphone 5 as was number three, the samsung alec -- galaxy as for was number eight.
Devices, what kinds of trends do you see when it comes to devices?
Isn't only the sort of top down -- gadgets?
We break out a whole separate list for gadgets.
Anything new or exciting in technology always searched a lot.
It is fun to look at this list, because it is interesting to see what has happened in this year.
The royal baby, i almost forgot that happened this year.
I'm surprised that was not higher.
That is always something that a surprising.
Everything from really serious issues, all the way to things like a memoir.
Anything that surprise you that was not on it?
We are always surprised not to see certain events that you personally think resonated more.
The list is always a really fascinating snapshot into the u.s. dear.
What will be the trending searches import -- in 2014, we'll have to wait and see.
These lists are always a lot of fun.
Suffering from breaking bad withdrawal?
You'll get some comic relief with the spinoff show better call saul.
You can always watches stripping on your tablet, phone, and now apple tv.
-- streaming on your phone.
? this is the early edition of "bloomberg west," i'm emily chang.
Charter communications lining up more banks to help with its bid for time warner cable.
It is all -- adding goldman sachs and others, according to people familiar with the matter.
Charter is offering less than $135 a share, which may attract rival bidders including cox and comcast.
It has been a few months since more than 10 million v iewers watch the finale of breaking bad.
But good news for those suffering breaking bad withdrawal, a spinoff show is in the world -- works.
Better call saul will start next year.
Our senior west coast correspondent jon erlichman hot up with america's favorite cd -- sleazy lawyer.
Take a look.
We had a pretty cool career from directing to producing films to writing for saturday night live.
If you're a fan of the tv show breaking bad you probably know him as -- saul goodman.
Better call saul.
Many other shows i've written for do not channel that sort of negative energy.
This has been really fun to just show up and get the cat or kurt -- the character was not me at all.
Did you think the world is going to fall in love with a sleazy lawyer?
I do not think that everyone would embrace this sleaze ball of the comb-over.
I think they love him because he is inside the tv.
That's not my tiger.
You could really bid watch, watch from one moment to the next.
The audience just snowballed as such a big way to we are done what i say we are done.
We are going to be coming back?
Better call saul?
It is slated to be run on amc.
We'll start shooting in may.
But her call saul -- better call saul.
It is not way to be breaking bad 2.0, it is going to be its own unique project.
Three things we all thought we knew about saul goodman that we didn't really know?
He sleeps with a teddy bear that is -- i do not know what is sown inside and would not be surprised if it was money.
He writes all his own commercials.
Better call saul.
By the way, he likes to remind people that saul goodman is just a character, bob boden kirk is a family guy.
People come up to him and say, i love paul goodman -- saul goodman.
It is good that saul goodman is staying inside the television, but i love him too.
Breaking bad was one of the most bins were the shows on netflix.
Do you think that better call saul will have the same appeal?
Netflix is betting on that.
They're going to make this show available on the netflix platform shortly after it airs on amc.
Additionally, it will be available through netflix in the international and that market, like let america and europe.
That will speak to the new hollywood, the new business model being able to take a show, ride that wave of success the last day on cable -- success, stay on cable, and immediately taken around the world because ecology allows netflix to have that mobile platform.
There is a relay board story here for both netflix at amc with the show and trying to capitalize on all of that wreaking bad buzz.
Kevin spacey has talked about the netflix fx, get a big the audience control and not resisting that.
What does he think about their approach about releasing everything at once?
He highlights -- breaking bad was a show that came at a time when people's attention were in few different places.
It took sometime for the audience to really pick up steam.
We had the creator of breaking bad on them and he says that without netflix, this show would not have been able to get to where did you bob oden nkirk says it makes the difference because they were able to watch those first few seasons, and get into the characters.
You can really know a character like saul goodman, whether bob is a dribble with you know him that well, or not.
Fun story, thank you for bringing that one to us.
Hp and google work together to bring you the chrome book 11. now they are bringing you a recall.
We'll tell you why, next.
You watches stripping on your phone, on your tablet -- streaming on your phone, tablet, and at bloomberg.com.
? this is the early addition of "bloomberg west," i'm emily chang.
Google and hp are recalling the chargers used for the google chrome book 11 due to overheating issues.
They were overheating and belting with one user suffering a small blue -- burn.
The recall affects roughly 140 5000 from books.
We hear a lot about crowd funding sites like kickstart her, but one of the biggest names in a.d. has launched a new funding platform of its own.
The new digital capital network will do investors with those seeking money and our editor at large cory johnson back with more.
22 million dollars in angel and privately funded ventures was completed in 2012. but the goal of this new platform is to bring similar exposure to private deals.
The government as exciter meets the nasdaq meets the ceo of merriman.
It is a cloud-based technology, and has been developed by a great team.
The guy leading the team ran the sungard transaction network, so it is getting bob to join our board recently.
He knows networks, so he of seen over 650 institutions leading up to 300 broker-dealers.
With open of this process to everybody.
22 billion and crowd funding in 2012, as divisions are doing things in a gain of 1969. it is being raised in a very old-fashioned way.
You call a team of, run round new york, maybe you get a limo, and the guys go in there and it is a long line.
The only thing that wall street has done is create virtual data rooms.
That is a utility processor, and nothing to really create a network.
I'm talking about reaching the 10,000 institutions small to large.
There are 90 million retail investors, i'm not even talking about that audience, i'm talking about the institutional buyer network.
There is not a network right now, and the mission is to create that network.
Tell me how this will work, and how these institutions will get -- you still the problem of getting deals blow, yes?
-- flowm,, yes?
On wall street, the hurdle for innovation on wall street, and aunt could jump ant could jump over.
Ed billion dollars in market cap down.
Facebook, twitter, linkedin, there are a lot of smaller companies that are starved for capital.
There's a lot of good opportunities, is like a dating site for institutions.
There is a lot of opportunities out there that deserve capital, that deserve the funding that can allow them to grow and create employment.
For that matter, they are not being is -- met by these years because the institution should not hear about them.
Remember what has happened on wall street the past couple of years, past five years, wall street particularly in the smaller site has been decimated.
Thousands of brokers and investment banks have gone out of business.
That has created a big gap.
What about the jobs act?
Does this make this possible?
The accredited institution could do this anyway, it wasn't a mechanism.
The jobs act was the first time that you saw that washington knew that there was a bit offer.
-- bid offer.
Sometimes you get the idea that washington is completely is connected from the process, but unemployment became a problem, and they realize that wall street was connected and was not just bad, it created jobs.
The jobs act doesn't get us there, but it is a movement in the right direction.
If they would invest in companies that they would invest in anyway, they just have not had a chance to screen for those transactions.
Will have more of "bloomberg west," after this quick reich -- break.
? welcome back, i'm emily chang.
Coming up on the late edition of "bloomberg west," bloomberg is catching some -- uber is catching some heat from its writers, charging three times in destinthan normal.
Users are really notified and must exalt the elevated prices before they can request a car eared we have a debate on the searched pricing coming up on the late edition of "bloomberg west." it is time now for on the markets, 56 past the hour.
Markets reporter olivia sterns is in new york.
It is all lies on the bed as it holds policy -- final policy meeting of the year.
The big question, will they, won't they taper?
Mohamed el-erian said that in addition to any announcement from the fed, he will be a listening for add-ons.
When they taper, we can tell you they will also do other things.
If they will do something with forward guidance, they will also do something with rush holt -- threshold variables, and they will also do excess reserves.
The fed is going to offer the market a package, and the market is going to be reacting to the package and not just one element which is the taper.
Which will be the most important among the three you mentioned?
The credibility of the forward guidance paid what the fed is trying to bed as evident from the use of a direct and cement because they're worried about the cabral damaged -- the collateral damage to a priced internet.
It could be critical whether they can offer the markets of the bed is credible, as a link that succeeds in limiting the disruptions to the financial conditions.
So the $4 trillion that we have seen in the bond purchases, what is the effect on gdp, do you think?
I think the unambiguous
This text has been automatically generated. It may not be 100% accurate.