? live from pier three in san francisco, welcome to the late edition of "bloomberg west," where we cover the technology and media companies that are shaping our world.
Our focus is on innovation, the future, and business.
Grouip pon has replaced the ousted ceo.
Eric lefkovsky is facing an uphill battle.
You on mosque's -- elon musk's tesla has delivered a record number of sedans, but still reporting a $30 million loss.
Aol agrees to buy adapttv for $405 million, its biggest acquisition since splitting from time warner.
First, the lead, done deal, groupon has named a new permanent ceo.
He is the cofounder of groupon and a serial entrepreneur and tech investor.
He had been sharing the job with ted leonsis.
Leon says, a former aol exec, will become the chairman of the daily deal.
They are starting a new restaurant reservation site and it appears to be paying off.
Revenue in the most recent quarter rose seven percent and stock is up more than 90%. we will have more on groupon earnings in a bit.
First, let's talk with doug mcmillan about the new ceo seat.
He spoke with him on the phone just a few minutes ago.
What did he say?
It sounds like they came to this decision a few weeks ago at the most recent board meeting.
When they ousted andrew mason, our sources said they were not considering internal candidates.
I don't know if that has changed.
Over time, the stock since then has been on the rise, the company doing better, producing better results.
It seems like eric lefkovsky as ceo has the makings of a turnaround.
They have put up good results.
Perhaps this is the right time for him to come back and take reins.
Any idea how they came to that decision to put him in the seat?
Is it because nobody else wanted the job and he wanted to take over?
He is known at as an abrasive personality, a tough person to work with, a very much hands-on person in the company, the larger shareholder.
It would have been difficult to recruit someone.
The other thing is they do not make much of an effort.
They did not hire an outside search firm, so obviously they had to put some thought into it.
It looks like eric lefkovsky was the guy available who made the most sense.
The common conception is the daily deals business has crashed and groupon has gone down with it.
How have they stayed afloat?
I asked his vision now compared with 2008 when they first start the company.
He tells me that back then it was more about the daily dales, sending people e-mails once per day.
That is essentially the day business has been dying.
People have been inundated with e-mails, so groupon has realized that.
They have shifted from that push model to what they call whole model.
They want you to go to groupon and search for a deal on a pizza, they want you to use your mobile phone and look for a deal on half off spa treatments, instead of them pushing deals to you.
They want customers to come to them.
How do they get customers?
Mobile is one of the key ways, growing mobile transactions.
Mobile in north america is almost half of their transactions.
That is growing business.
But i have to find new ways.
Search on their site still needs to be improved.
The technology on their site.
There is a lot of opportunity for them, but it is groupon and it is still struggling getting out of the daily deal mentality.
How about the restaurant reservation service?
They are competing with established players.
It is a crowded field, but when you look at the opportunity, a lot of restaurants, even though a lot of them are already on opentable and yelp, groupon has a big salesforce and they are out there calling these small businesses all the time anyways.
Why not ditch them on the restaurant reservations?
How confident will investors be in a ted leonsis eric lefkovsky team?
They have gotten behind him so far, they have gotten behind the team so far.
The past nine months, year to date, the stock is up quite a bit.
It has been on a run lately.
I think even though internally there is some division over whether lookups be is a good leader -- over whether eric lefkovsky is a good leader, i think he is very much the investors friend.
Has been known to produce good results, and wall street has been really rewarding them so far.
Doug macmillan of bloomberg news, thank you for the announcement of groupon's new ceo came with the company's second-quarter earnings report.
Groupon brought in $60 8 million in revenue, but had a net loss of $7 million, down a whopping 123% from the same quarter in 2012. for a deeper look at the results, i am joined by our correspondent jon erlichman.
You heard them talking about how groupon wants to move from push to pull.
Tell us more about how the business is doing in terms of finances.
Those comments were spot on.
The character of eric lefkovsky is not messing around much.
As part of this fix it plan, you see some of this and the results.
There are key parts, one that you touched on.
The idea that at the end of the day, for all the stories about how people get a random e-mail with a groupon that makes no sense to them, they are trying to take the emphasis away from that.
The staff they have kept hammering that table on the conference calls -- the stat -- if that is declining as a total number of the deals.
Less than 40% in north america, compared to the marketplace they have been building up to give all sorts of deals that you can go and proactively choose.
For stuff that is relevant to you.
So trying to get more sales , and then additionally, let's talk about the losses, the profitability story.
The international expansion is asked below the dash is absolutely explosive and costly, especially when things are all over the place.
They are right now in 1000 cities, 48 countries.
They are trying to make the experience the same in all those locations as in north america.
If they are having too many problems with locations, it is shutdown time, although they are not saying exactly which markets they might move out of.
That is part of it, cut the loss strategy.
In terms of the sales outlook, for some it was sort of disappointing with a shared today.
Yeah, and they used wall street-speak in describing seasonality, but it is part of the fact there were estimates for them to have $600 million of revenue and they may have significantly less than that.
Is that part to get people to take a deal in august if they are on vacation.
I spoke with a former groupon executive who said historically that has been the case, the third quarter is really tough, people focused on summer vacation instead of a good deal on a haircut.
We also got fresh numbers on how many people are using groupon on their phones.
How significant is what we are seeing in mobile?
I would argue this is as significant to the groupon story as it is to facebook's mobile ad strategy or google's mobile ad strategy.
In june, 50% of the north american trendsetting was on mobile devices, up from 40% at the start of the year and one third last fall.
That means they're getting good traction.
What eric lefkovsky said on the call was people who are looking for deals on their phones are more engaged, more likely to pull the trigger on a deal.
That is really part of the strategy.
International, it is not the same percentages.
I said they are hoping to get that parity.
Jon erlichman, thank you.
Is twitter so powerful that it can influence tv ratings?
We will speak with the twitter vice president, coming up.
? ? this is "bloomberg west." i'm emily chang.
It has been a busy year for tesla, the electric carmaker, with its sights set on global expansion with revenue surging, $405 million, but still a net loss of $30.5 million.
Is elon musk delivering more than hype?
With us is a reporter who wrote a cover story for the company on the magazine.
The title of the story is "why everyone loves tesla," but with the results, can everyone still love tesla?
30 million dollars loss, critics from the government?
It looks bad, but the results seem to show the demand is there.
The tesla forecast of the units this year, and he said there is enough room for 40,000 units through 2014. we saw them beat wall street by $.40, an after-hours hours it is at all time high.
The stock is up, but how is the business doing?
It looks like they are fine- tuning as they go along.
They are sort of new to the manufacturing game.
The gross margins go up every quarter.
They are talking about fixing problems and learning how to make problem -- make cars better from scratch.
Also working at international expansion, saying they will ship to asia by the end of the year.
Musk said he thinks international will be two thirds of sales at some point.
Is that realistic?
He said today that norway alone they think will account for 800 orders this year.
In europe, if you put your ordering right now, they have so much demand that you would not your car until november.
They seem bullish on the coming quarter.
You also got an update on the model x? that is right, they had been talking about coming out next year, but they have not provided much clarity on what that meant.
Elon said at the end of next year, limited volumes, and really ramped up in 2015. that is may be later than some people had hoped.
Gm recently created a team to look at attentional disruption at tesla.
Are they just going through the motions or to the have a lot to learn?
We talked about all of the detroit automakers looking at what tesla did with the software, the huge touchscreen in the cockpit, and they're all trying to build up software teams.
Elon on the call today took a shot at bmw, which has an electric car coming out.
He said it was a good attempt i have a lot to work to do.
Let's talk about the hyperlink, the superfast mode of transportation that he is working on and were released more information next week.
Did he say anything about that?
Are we going to hear what the plans entail?
He is sticking with the monday timeframe.
He says he wishes he had never brought it up because it has been a huge pain, taking time away from tesla and spacex, which he also runs.
He will put out a preliminary plan and open source it so that people can provide feedback.
He said he will not pursue it right now, but if a few years pass without anybody else doing it, he may bring it in as part of a tesla project.
Elon musk, have to hand it to him.
I do very much, wesley.
As we mentioned, elon musk is looking beyond electric cars, next week unveiling his idea for for high-speed long-distance transportation system, the hyperlink as he calls it.
We looked at the technology that could drive a hyper loop and competition it already has in high-speed transit.
The favorite method in long- distance travel in the movie "total recoil" went through the earth's core at hypersonic speed.
Elon musk is sinking more than $100 million into this reusable rocket.
Though his latest proposal maybe earthbound, that does not mean it is any less space-age.
This bold idea for a fixed mode of transportation called hyper loop has been generating a lot of hype.
It promises to turn travel from l.a. to san francisco to a half- hour commute.
But it is not the only idea out there.
A, run a company is developing -- a colorado company is developing a tube system they are calling space travel on earth.
The top speed, 4000 miles per hour.
Without critical money from investors, that may remain a pipe dream.
British firm reaction engines is marketing a cooling system for jet engines powered by liquid hydrogen.
The planes could carry 300 passengers halfway around the world at mach 5. but without windows, the view leaves a lot to be desired.
The british government is giving $90 million to them for continued development.
And a fuel-efficient version of a fighter jet maybe just one more for business execs wanting a rapid ride at 40,000 feet.
The company is still looking for investors.
Elon musk is still looking at all sorts of technological solutions.
One thing the paypal billionaire does not need to worry about is funding.
That was the low marks on the hyper loop.
Can a simple text message find missing children?
Authorities think so.
We explain next on "bloomberg west." ? ? this is "bloomberg west." i'm emily chang.
President obama is apparently a fan of zillow.
He talked about the state of the u.s. housing market, broadcast live on the white house website and zillow.
I think you have done a great job in helping make consumers more empowered when they are buying a home, selling a home, and it is a wonderful service.
Zillow 's ceo came on "money moves" to talk about the experience and his wish list for president obama when it comes to housing.
Number one, keep mortgage rates relatively low.
In the forest or fives are relatively ok, but make sure they don't snap back higher.
Number two, harp 3 for refinancing.
And number three, figuring out how to get private capital into the mortgage market and get fannie and freddie off the mortgage balance sheet.
The president would like to get a housing bill through congress this year to let homeowners finance at this year's rates.
Californians got a startling reduction into a statewide emergency stem when cell phones began flashing in amber alert.
The police are still searching for a san diego man suspected of burning two people alive in their home and kidnapping children.
This is after a similar alert in new york.
What goes inside the alert?
I am joined by the vice president of the wireless association, a nonprofit organization made up of wireless carriers.
Obviously, the story is incredibly tragic.
Walk us through from the carrier's perspective how an alert like this get sent and why, starting with the california alert as an example.
Industry recognize the importance of protecting the public, getting these types of alerts and notifications where there are threats to lives, threats to property.
For that reason, they voluntarily agreed to participate in this program.
Right now, wireless carriers representing 98% of subscribers in the country are offering these alerts.
So with regard to -- so who sent out the amber alert in california, and how was the decision made come how many people received this and where they were?
Those are decisions that reside with whomever is sending the alert.
In this case, the amber coordinator, law enforcement.
The wireless industry, once those decisions are made by the originator to send the alert, and they decide where to send those alerts, those are handed off to the wireless carriers, to distribute the alerts.
Now, some people were really surprised by this.
They got woken up in the middle of the night, it made a really loud noise.
Can consumers opt out of this?
What is the assessment of how this went in california?
So that is an excellent question.
We understand these alerts are surprising, sometimes startling.
I am standing is in california this was the first amber alert to go out.
The reality is, though, these alerts are saving lives.
We would hope that people would not opt out of receiving these important alerts.
Just last month, in ohio, a cleveland boy, eight-year-old boy was abducted.
The alert went out and a group of people received it on their cell phones, they saw the vehicle, called the authorities, the boy was safely recovered.
Similar incident happened in minnesota earlier this year with an eight-month-old who was abducted.
A teenager received the alert on her phone, notify her father upon spotting the vehicle.
The child was safely returned to her mother.
We have seen tornado alerts in east windsor, connecticut, just last month.
This is not tornado alley.
A woman with 29 campers in a go and receive the alert, they ran into a hard construct a building adjacent, and seconds later they heard the impact of the tornado.
The sports dome was twisted metal and wreckage just moments later.
These alerts are working as designed and we would certainly hope that the public does not opt out of them.
I am a mom, so i am stand why these things are important, but in terms of everybody understanding where they am from, give us a better idea of who can send the alerts.
You mentioned a crime, you mentioned the weather.
What other types of situations are we talking about?
These are imminent threat alerts or amber alerts.
Those would come from law enforcement.
With imminent threats, they could be the weather, as you mentioned, tornadoes, hurricanes, flash floods.
You would most likely come from the national weather service.
But it could be a chemical spill where a local county or sheriff or department of transportation may issue that to warn people away from traveling into an incident zone.
It really runs the gamut , from local authorities to state and federal authorities, and we encourage that widespread participation in order to protect the public, but we also emphasized these alerts be sent judiciously and sparingly.
What we don't want to see is a car alarm syndrome, alert fatigue where people disregard the alerts or opt out.
Brian , thank you so much for joining us on "bloomberg west." coming up, we are talking to the twitter vice president.
? ? you are watching "bloomberg west," were we focus on technology and the future of technology.
Nokia may cut 70% of their workforce.
8500 jobs may be cut at the end of the year as sales decline.
Nokia took complete control of siemens, buying a half owned by siemens.
Note he is also considering shutting factories -- nokia is also considering shutting factories.
The superman film "man of steel" helped boost revenues.
Higher revenue at the tv network also boosted the bottom line at time warner.
Time warner is pushing back plans to spin off its magazine division several months, two early next year.
Facebook's instagram has launched a new update called instagram 4.1, rolling out to android and apple users, allowing users to import videos from their library to instagram.
It also has a ensure straightening tool on apple.
The update comes a little more than a month after instagram unveiled its video sharing service.
New research is out linking twitter activity with higher television ratings.
Using data from twitter, nielsen analyze the minute to minute trends and found the volume of tweets cause significant changes in the live ratings of nearly one third of the tv shows it studied.
What does it mean for twitter?
The twitter vice president of global brain strategies -- global brand strategies joins me on the show.
How much do you think the study matters?
I think this is a really big deal.
When you think about the $70 billion tv industry, 465 years it has been traded on one currency, which is ratings.
-- for 65 years it has been traded on one currency, which is ratings.
Now we are looking at engagement.
Our many people are talking about show and specifically on twitter, how may people are tweeting and engaging with the show.
The fact these currencies have reached an arrangement -- reach and engagement have driven each other.
So much so that nielsen, a prominent organization for measuring tv, is releasing a new rating called the nielsen tv twitter rating.
You guys are doing that in partnership with them?
Exactly, which is a new metric besides grp, which is all about reach.
This is about engagement.
Some people have said we should be skeptical because of the partnership with nielsen.
What do you say about that?
Nielsen is an independent company that took our data and use their methodology.
That is the same way they used to measure other methodologies.
It is an independent look at twitter's datsa.
A couple of different takes, twitter drives up tv ratings for only 25% of shows.
Is that enough?
With his 30% of $70 billion?
It is a huge deal, it is a big deal for networks because they have found a way to drive higher viewership, and that is creating more engagement on twitter.
For advertisers, the other part of the equation, they see this as a way to be up to measure which shows they choose to advertise on.
They have a whole new metric to measure and negotiate on.
It is a huge deal.
One of the things we don't know yet is why, why the shows are playing so well with twitter . reality shows, do they play better?
We don't know the demographics.
Why is it, is it because twitter has younger users?
It is because twitter is a live platform.
It is live and public.
The conversation that is happening about what is on tv is happening on twitter because everyone can see each other's tweets and because it is a real time activity.
It is people are doing.
That is why it is unfolding on twitter.
You have said in the past people are tweeting mostly during commercials, right, but they are tweeting about the show, they are not tweeting about commercials, so what does that mean for brands?
We actually released a targeting methodology, or you can find people who are watching tv and tweeting about your shows were commercials, and what we have found is when people find the same audience on tv they're finding on twitter, when they add those together, we are proving in the study that it is a 95% increase in awareness and 58 are sent increase and purchasing.
What has been the reaction from brands?
It is phenomenal.
They want to find ways to connect tv and twitter together.
This is your job, attracting more ad dollars from advertisers.
What does this study mean for your business?
It is a whole new way to look at tv.
It used to be that when a commercial was airing on television, the conversations stop there.
Now it completely continues and it happens on twitter.
How you create your tv commercials, how you buy them, and for the networks how they create their shows and contents, it changes everything.
You are trying to expand the power of the tweet, the functionality of the tweet, adding video.
The video ad landscape is dramatically evolving.
Facebook is launching a video ad campaign, two point five million dollars today.
How fair is that price?
Twitter, we are about live video.
So breaking moments, things that happen in the moment, things on instant replay.
That is the value we see for advertisers, which is get breaking video and put it on the platform and allow advertisers to be part of it.
What about the rise in netflix and a decrease of appointment viewing?
Twitter it is a great place for discovery.
Just like people are talking about shows on netflix, other people see that and decide to tune in as a result.
I think it is a net positive for everyone.
I know you are constantly working on ways to get brands and keep them more engaged.
What is the coolest thing you are working on now and that will see from twitter in this arena?
The coolest thing i am seeing right now is rands that use hashtgaags to continue the stories.
We're also saying things to call to action to buy, using technology before saying ads on tv, giving them the rest of the story, giving them a chance to purchase now, giving them a chance to sign in and opt in for e-mail communication.
Their continuing the story, what is the extra call to action.
The twitter vice president, thank you for joining us so much on "bloomberg west." we will be watching.
It is the biggest deal yet for aol ceo tim armstrong and even bigger than buying the huffington post.
Armstrong explains the purchase of a dad tv -- of adapttv , up next on "bloomberg west." ? this is "bloomberg west." i'm emily chang.
Aol is looking to video advertising to boost its business, or -- agreeing to buy adap.tv for $405 million in cash and stock.
Adap.tv is the biggest acquisition yet for aol ceo tim armstrong, even bigger than his purchase of the huffington post.
Earlier, he spoke about the deal.
If you went back three years ago, most people thought that aol is probably not going to be around.
Today, the acquisition we are announcing with adap.tv makes us the second-largest player in video and more importantly a leader in programmatic video.
If you have been following the changes in the media landscape, you know that video, ip- delivered video will affect the $240 billion global tv space.
Aol also reported second- quarter earnings with a two percent gain in revenue.
Earlier today i had a chance to speak with someone directly involved in the deal, the ceo and founder of adap.tv.
Take a listen.
I think when you take this in the context of the $250 billion tv industry and the massive revolution, very similar to what we have seen in digital photography and music.
I think it is easier to understand the impact this deal can make.
This is something we at "bloomberg west" feel everyday as the technology of television shows streamed live online.
There was competing for ad dollars with google, facebook, twitter, yahoo.
How does aol compete with these giants?
We are a technology platform.
We provide technology for buyers and sellers.
Our platform is demand and inventory agnostic, independent, unbiased.
It basically provides buyers and sellers with the tools and information they need to make small -- smart decisions.
Any of those things are trivial when you take them to other products.
It is the ability to know exactly what you are buying, to control what you are buying.
It is a process that is really simple.
Everything with e- commerce, we are now doing for tv and video advertising.
That was the ceo of adap.tv . catch the full interview on your phone, cap let at bloomberg.com.
Technology giants are making moves that they say will allow people to search more in-depth articles on broad topics after google research shows about 10% of searches are for broad topics like love and happiness.
Facebook has changed what shows up in your newsfeed.
Instead of just listing the most recent post, it will feature the most relevant posts for each user, including some older post you may have missed.
What could be driving this change is?
We are joined by the editor of the new yorker.com and a bloomberg contributor and editor.
Let's start with google and the move to highlight these more in- depth articles.
Why do that?
I think you are trying to find more sophisticated signals.
What makes them succeed is if they give articles and documents that make people happy.
It is hard to figure that out.
Google has traditionally relied on incoming links.
People who click on those click on a particular story.
His is a more sophisticated metric that says, look, if this is a story about a complicated subject and there is a long in- depth version, you're probably more likely to be satisfied that -- satisfied with that than the shorter version.
It is like the sale of the washington post.
The washington post publishes a long story about censorship in china, it is probably something really good.
The washington post is a trusted company.
They probably hired a very good reporter to figure it out.
As soon as the washington post publishes that story, other sites will take nuggets and publish the road versions.
Those ends, the way google has traditionally worked, will often get as much attention and links.
You might find something from the lush new post or a link from the huffington post.
That is something that has hurt the washington post overtime.
Now by servicing the in-depth article, google will be more likely to lead you to the original, longer version of the story.
What do you make of jeff bezos buying the washington post and the price?
Is extremely low, compared with a net worth of bezos and the importance of the washington post.
It is losing money, so that is why he spent so little for it.
A lot of unanswered questions.
Why did he buy it, what will he do for it?
We don't know the answer.
The most interesting is what will he do with it?
Will he be up and take the great capabilities he has shown for data mining, giving customers what they want for making a site incredibly quick and giving you what you need.
And he bring the same kind of innovations to the washington post?
It will be fascinating to watch.
It might be a disaster, it might be incredible.
I imagine this is something you're watching particularly closely given your role at the new yorker.com.
How does this fit into the bigger picture, what google is doing, facebook, and affect -- and the fact jeff bezos is interested in a newspaper?
What has happened in the media landscape, what newspapers did is they packaged long, complicated, hard, deep reported stuck with easier to get things like classified, sports scores, the weather, all of that.
All of the easy stuff that was sort of people love to consume quickly has been taken away from the internet.
There is no point in newspapers doing that.
Newspapers don't have classified sections, there is no point of the sport scores because we get them from a thousand places beforehand.
That has left newspapers with the core thing, and it has been hard to make the economic model work for the hard news reporting stuff.
What is happening with jeff azo's, he is taking a distressed property that lost the old packaging that made the system work, and he will try to figure out how to save this great thing the washington post does, the thing the washington post and very few other publications can do that is incredibly hard.
Can he save it using technological wizardry, if that is his intention?
That is difficult.
Ogle is coming at the same problem, there is this deep, obligated stuff.
We need to get it to the users because they it, but how do we figure that out?
We have had one system with mixed results.
Let's try a new system.
About a year ago they started putting author modules in searches.
Now it is a trusted brand.
We will see.
Thank you very much, nicholas thompson.
Up next, stick around for one number that reveals a whole lot.
? ? this is "bloomberg west." i'm emily chang.
Gogo, the company that puts wi- fi on airplanes, brought in $74.9 million in sales, up or december percent, but still ended the quarter with a loss of $56 million full stop this comes as gogo expands, saying they added wi-fi to dozens of new plant the last quarter.
Shares have fallen more than 24% since the company went public.
Earlier, i spoke with the go-go ceo to talk about the highlights in the report.
We had a very strong quarter financially.
Revenues are up substantially, particularly the service revenue up over 50% year-over-year, and we continue to add many new aircraft.
We at well over two aircraft per day every day during the quarter, as we have been doing the past five years.
What makes the technology special?
How does it work?
We designed a cellular system for the skies.
We started with a 92 towers that cover all of the of the united states.
Now we have over 180. the antennas point up towards the airplanes.
We have a lot of proprietary technology that makes it work, but it was the first economically viable, scalable solutions for sending broadband to the aircraft.
I am sure you are constantly trying to improve the technology.
There have been complaints it is slow.
How do you make it better?
That is what we do is work on improving bandwidth two aircraft.
What we have been doing is building more cell sites, we are installing a fire network -- fiber-optic network on the ground and we have a new technology that basically triples the speed to an aircraft.
Let's talk about the cost.
Some people say that gogo is too expensive and they don't want to pay for it.
How do you deal with that, especially airlines offering other services like directv, for example?
There is clearly a segment of the marketplace that will pay most anything to be connected while they are flying.
We even had people get off flying jets onto commercial to have connectivity.
There is a segment of the market that is very price insensitive and a are the core customer right now.
The productivity seeker, the business passenger, but will be introducing more services that will be oriented towards the leisure traveler.
For example, gogo vision, which is video-on-demand service, will preload movies on the airplane that you can view on your own personal device.
We are also working on a texting service that will be lower- priced.
Is your goal to remain a more premium product for smaller number of travelers or do you want to reach everyone by potentially lowering prices in some of the services?
In the long run, our vision is that all aircraft around the globe will be connected with broadband, and ultimately all passengers will benefit by that.
Some will pay expensive full internet service, others will choose lower-cost entertainment or low bandwidth services.
There will be all kinds of services the airlines will offer two passengers, such as connecting gate information, backtracking, re-booking if necessary, lots of benefits and connectivity.
One of the things you are doing to improve speed is blocking netflix?
Tell me more about that.
How does that work?
When you are managing bandwidth, there is video and there is everything else.
Video uses in next ordinary amount of bandwidth.
If we allow the video to be used on the airplanes, from the ground, streaming video, it would clog the system.
We block that , and to create an alternative, we have created gogo vision so the customer has a chance to see preloaded movies and other video content already on the airplane.
Gogo's ceo, michael small.
It is time for the bwest byte, one number that tells a lot.
Jon, joins us from l.a. i have $5 million.
That is the potential value of the stake that new york mayor cory booker has an a young company called way walk, based on a filing that puts the value at between $1 million and $5 million.
This is a story gaining traction after the new york times piece which basically raised the question, why does the mayor who was in the middle of a race right now, have a stake in a startup company?
Tell us about what way why areas.
I know booker has called it a pandora of video.
What does that mean.
Obviously he is somebody who was known as being social media savvy, and knows a lot of people in the world of technology.
The concept is there is a lot of video out there and the need for video duration, finding video that you want.
What ohchr seemed to be passionate about with this idea of people being able to bash what booker seemed to be passionate about was people who don't have a voice on cable news channels to be able to put it out there and people to be up to easily find some of the alternative views.
It seems to be based on some of the reporting that has been done there are growing pains with this business, as there are sometimes with startups.
Jon, the new york times story is shining light on high-profile connections that cory booker has with other high-profile people in silicon valley.
Yeah, obviously talking a lot about the ties with eric schmidt and his willingness to invest in the company.
As we talked about on the early edition of "bloomberg west," we know that mark zuckerberg has a strong tie with cory booker.
Just held a fundraiser for him.
Booker has a lot of ties in silicon valley and is taking advantage of that network over the years.
Jon, thanks for the back story, and thank you all for tuning in.
We will see you back here tomorrow.