Icahn Targets eBay: Bloomberg West (01/22)

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Jan. 22 (Bloomberg) –- Full episode of “Bloomberg West.” Guests include AJD President Alan Dabbiere, VMware’s Sanjay Poonen, CreativeLive’s Mika Salmi, Ford’s Greg Stevens and Bloomberg’s Brad Stone and Nick Thompson. (Source: Bloomberg)

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

I'm emily chang.

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

Let's get straight to "the rundown." carl icon -- his newest target is ebay.

The activist investor has taken a stake in the company, less than 1%. he is calling for ebay to spin off paypal into a completely separate company.

He joined us on bloomberg television just a couple of hours ago.

Let's take a listen to what he had to say.

There's no reason they should be together at this point.

In our opinion of fact, i think it would be helped by a management team that is separate and can go their own way, and i think the multiple would go up dramatically, and also the health of the company would be better.

Ebay, not surprisingly, not too happy about this idea, saying in a statement that they have thought about this in depth and concluded that the company and its shareholders are best served by the current strategic direction of the company and does not believe that breaking up the company is the best icahn way to maximize shareholder value.

Icahnhas also --icahn has also nominated to of his own employees to ebay's board.

I want to bring in cory johnson, our editor at large.

Can icahn really get what he wants?

He says he is willing to make -- willing to wait 3, 4, 5 years to make this happen.

He is not alone in wanting this.

It's interesting, not least because he has got -- the headquarters of ebay, where we broadcasted from when we did our special, was actually paypal headquarters.

It is clear that the companies are cleaved in some way.

John donahoe on the conference call for ebay talk about the reasons they need to stay together, saying ebay adds a lot of value to paypal, not just in terms of data and analytics, but also in terms of cash -- do people look at it in reverse?

And that is that paypal is the biggest source of ebay growth right now.

Another way to look at it anyway john donahoe presented in on the call was that half of the revenue for paypal happens on ebay, but that does not necessarily mean they could not structure a deal in some way that would be a stub or ownership in some way were ebay would still have a piece of paypal.

Standalone, you would have a paypal business growing faster.

One of the interesting things about paypal is this quarter, he growth of paypal has read accelerated.

I want to bring brad stone into this combination, author of a book about amazon, and carl icon talked about how amazon is basically trumping ebay in every way -- carl icahn talked about how amazon is basically trumping ebay in every way.

Not in payments, though.

They have tried to replicate the acquisition, trying to build amazon payments, trying to syndicate those accounts across other websites, and it is a space that paypal really owns.

In the sense that there's opportunity for ebay going forward and competing with amazon, it is approaching off- line retailers and offering them a range of services, helping them with technology, infrastructure, and payments.

To that extent, paypal and ebay really do need to be married.

You wonder if amazon in particular might use ebay more and more generously because it would not be perceived as a competitor.

I wonder if that is one of the thoughts that icahn has, that is the market for paypal gets bigger when it is not part of ebay.

What about the future and commerce in general?

They want to be known as the place where you can go to buy just about everything, but people do not think of ebay in that way.

They continue to think of it as an auction house.

The one thing to me that i thought had potential was the same day delivery where i have been able to get things within an hour from them.

The process was pretty seamless.

The goods and inventory is pretty limited, but it is something that amazon right now cannot do.

Right, but i think there is opportunity in being that dealer to all of those retailers that find themselves caught up in amazon's vortex and need a friend and ally.

That is why ebay bought gsi commerce.

It is having some success.

I think splitting off paypal, divorcing the assets but sit at a disadvantageous position in terms of approaching the macy's of the world -- put it at a disadvantageous position.

The capacity to warehouse lots and lots of products -- i think of the quarter they announced today.

71% of the products sold on ebay were "buy it now" at one price.

The perception of ebay from back in the dot-calom bubble is not what it is today.

Drones got a lot of attention.

I asked john donahoe in particular about them when we sat down over the holidays.

Listen to what he had to say.

Long-term fantasies.

We are focusing on things that will change consumer experience today.

You think it is a long-term fantasy?

We'll see.

He came right out and said, "look, that's not happening.

A he may have a point.

That may have been more of a public relations lori -- ploy, but the larger point is that amazon controls and owns distribution to people's homes.

Ebay has always farmed that out.

It turns out to be really central to how customers think when they are making a purchase.

They want reliability.

They want to know when an item is going to be delivered and if it will be delayed.

Ebay has never been able to make those promises in the same way that amazon has, and drones are not -- i think that's why that is a key reason we have seen amazon have so much success and ebay really struggle.

Is ebay at a disadvantage without paypal?

Ebay without paypal is one of the second-biggest marketplaces on the internet -- is the second-biggest marketplace on the internet.

Particularly when i read your book, the thought i had was that amazon is really going after being walmart and having all the disruptive effects, and that's a nice word for it, but think of the way walmart was received in mainstream america, how it destroyed households across america.

Think of a society where you have walmart workers trying to get food stamps because they are not gay in -- not getting paid enough in their community.

It has all happened.

Amazon look at that as a model.

Not that they want to hurt workers or an economy, but ebay looks at itself is a very different model -- as an enabler of small business.

The classic example of selling beanie babies out of a living room but for a fixed rise and selling bigger items as well -- for a fixed price and selling bigger items as well.

They really have emerged as a model of how commerce can happen in the future online.

I think that competition is not going to change, regardless of how it is being paid for.

When you look at activist investors, carl icahn is focusing not just on ebay but apple.

How do you see this playing out?

Right now, he has 0.8% of ebay.

He is in no position to get them to do anything except for having a loud voice.

Name of apple.

He will never own an up of apple to force a change -- same with apple.

He will never own enough of apple to force a change.

What is interesting is i do not think the patient shareholder base that exists with apple exists with ebay.

Ebay shareholders have been through enough where they are going to want change.

Also, the board has a lot of pretty powerful people.

Not that apple does not, but mark andreessen is on the board.

The founder of ebay.

How much does that matter when it comes to a situation like this?

I think that it matters to a certain extent, but the stock rise today -- even despite cory's point that carl icahn has a small stake tom of these are impatient shareholders.

They want to see short-term value.

That is why they have been buying the stock back.

A lot of people are looking for today's news to be bad.

Carl icahn made today's news good.

I think it is also worth going back and thinking about what happened way back in the day.

Brad and i remember -- collect that's why i asked you guys -- that's why i asked you guys.

Meg whitman decided to buy ebay and ebay decided to buy paypal, not because paypal was profitable.

Not because paypal was successful, but because paypal has so much control over the ebay platform.

So many ebayers were using paypal as a payment method, even though paypal was losing a ton of money, that ebay recognizes someone else got their hands on paypal, it would be a threat to ebay.

That is why they bought it.

They had their own payment platform, and it was not taking off quite as well.

You may remember covering this back in the day.

You are bringing it all back.

The big risk for ebay right now is the distraction that is created at a key strategic moment.

You can tell the inflection in his voice changed.

He is worried about this.

The fact that shareholders are swarming around the idea creates a little bit of a self- fulfilling prophecy.

Shouldn't he be able to keep it together?

Ceo's are distracted by everything.

They need to keep their eye on the ball, on the drones every day.

These questions are not going away.

If you're shareholders are short term-minded, they do not believe in the long term vision, we see them wobble a little bit, he will have to keep answering these questions -- if yorur shareholders are short-term minded.

Coming up, some of the biggest names in tech are endowed us at the world economic forum.

We will hear from the ceo's of yahoo!

And salesforce.com.

? i'm emily chang.

Welcome back to "bloomberg west ." netflix reported earnings after the bell, reporting they added another 2.30 3 million invested subscribers -- 2.30 3 million -- 2.33 million domestic subscribers.

Looks like there's a lot of good news.

Is there any bad news?

Quarterly earnings are a snapshot and a larger story, which is netflix has been signing a lot of people up for its service.

This is a global business.

We should cover it as a global business, the same way facebook is a global business.

Twitter is a global business.

On that front, you are talking about a business that will likely have or the 8 million subscribers around the world by the end of the first quarter, compared to around 26.5 million at the end of 2012 -- a business that will likely have 48 million subscribers around the world.

Why are people signing up for netflix?

The shows are a key part of that.

We talk about that all the time -- the original shows and movie deals they have, but it is also the ease-of-use.

Netflix talked about this on the call, the fact that google search has gotten a lot better year by year over the last decade.

So did netflix.

They are trying to make it a better service because they are competing in a lot of ways with traditional television.

If you can make it an easier, more accessible kind of service, maybe you will find a new subscriber for eight bucks a month.

I want to talk about the original content in a moment, but if they are going to expand in europe and invest heavily in europe and the rest of the world, that will be incredibly expensive.


They have taken out some debt to feel that expansion, and they were not specific on which markets they are going to get into in europe, but you are right -- that has always been the knock against netflix, how much they are spending.

Whether it is to expand internationally, whether it is on content, whether the issue of net neutrality will cost them more since they have benefited greatly by being able to just, you know, fill your broadband with all sorts of shows.

Cost is always a factor with netflix, but i think most people have turned a blind eye to it because they continue to get their subscriber numbers up.

In terms of the original content, do we have more information about how much the original content itself is actually driving subscribers?

Well, not really is the answer to that.

They say that it is helping, definitely, and they say the shows are well received.

They do not share those numbers specifically, and that is something they probably are not ever going to do.

That is frustrating for traditional television and traditional cable networks because their ratings are out there, and netflix does not necessarily share those.

But if you look at the announcement that they will be investing in original shows, that is a reminder that if they are going to invest at money, it is probably worth it for them.

Jon erlichman, bank you.

Tesla is trying to revolutionize the car industry with its electric car.

They now have a startup open to do the same thing with motorcycles.

An electric motorcycle may not be that far off.

? welcome back to "bloomberg west." i'm emily chang.

Tech titans have been taking the stage in doubles, switzerland.

There was a really interesting panel with yahoo!

Ceo marissa mayer, salesforce ceo marc benioff.

They covered everything from the nsa to the tech industry at large to what technology has changed their lives the most.

I want to bring in nicholas thompson, editor of thenewyor ker.com, as well as cory johnson, our editor at large here.

Marissa mayer talked a lot about the mobile business, how mobile traffic will surpass desktop traffic by the end of this year.

She also made an interesting comment about hiring.

Let's listen to that.

A lot of it comes with people.

It is a matter of hiring the right people and making sure that those people are really informed.

We try to be very transparent.

We do things that are considered kind of crazy.

Let's focus on the context because she just fired her top lieutenant.

They are hiring the right people, right.


Must be looked at as nothing but a turnaround right now.

They have a couple of products people are hanging onto with yahoo!

Mail and the homepage, but she does not think the team at yahoo!

Is the right team to do that.

What do you think?

I think that she just spent $100 million on hiring henrique castro -- for 14 months, by the way.

She could have hired 1000 engineers for that.

Yes, of course they need to hire the right people.

Everybody does.

It is extremely important, but this raises real questions about whether she can hire the right person because she went all out to get one person, said, "this is the person who is the right person for me.

I will spend up to the mood for this person." then she said, "it's not working ." it is true what she said, but the fact that that happened raises a lot of questions.

Maybe if they paid a talent -- maybe if they paid their talent a little bit less, the bottom line could be better.

The fact that 30% of the revenue -- not only do we find out that 30% of revenue is coming from microsoft and being, but we also find out that they did not want us to know that -- 30% of revenues coming from microsoft and bing.

There's no time to waste for making changes.

I do not fault her for making a change.

On that note, on the one hand, you see that happen at companies where they push someone aside and they go out to run "innovation" or something like that and do not actually touch base.

She said she made a mistake and it was her decision to fire him, and they are going to move on.

She should get a small amount of credit for sending out a memo and being honest and saying that she will take more control and being transparent about that -- absolutely.

The question is whether the buzz and the halo around marissa mayer is starting to disappear a little bit and whether this will continue that trend.

I want to make a quick turn because they also talked a lot about the nsa and government surveillance.

They were all asked, "if you could have one thing from president obama, what would it be?" marissa mayer said transparency.


And a number of companies have been asking the government permission to be more transparent about the data request they are getting, but marc benioff turned it around a little bit.

Transparency is not just about the government.

It is also about vendors.

Vendors have to provide complete and total transparency themselves.

They also cannot pick it all on the government.

-- they cannot pit it all on the government.

What do you make of him saying that?

All three companies on that panel have had to deal with government requests to get information from those companies.

In the case of at&t and yahoo!, in the case of cisco about technology.

Salesforce has not had to do about.

-- salesforce has not had to deal with that.

I think he is in a rare position on that panel to make that request.

Did benioff have a point there?

Should we be looking at the companies' policies as well as the government policies?


Benioff made a great point.

It was excellent of him to say that.

Large companies like google and yahoo!

Get requests from the government and do not disclose them for two reasons -- sometimes because they are not legally obligated, and sometimes because they do not want to disclose them because they think it might scare their customers.

Benioff is saying if we are going to demand more transparency from the government, we should be more transparent ourselves.

We have seen some terrible cases where the government has said, "we are going to come in and build a back your.

You have to let us do that." benioff is saying, "it is also on us." i think that is important and too much during this crisis, silicon valley has been able to say, "it's all on the nsa, not on us." look at the delay.

Apple came in much later than other companies, not because they did not respond -- not because they did not file the request, but probably because they fought it.

Certainly a discussion that is not going to die anytime soon.

Thank you both.

Coming up, the aware dropping 1.5 billion dollars to buy a company that helps businesses protect mobile devices -- vmware . we will talk with executives from both companies coming up.

? you are watching "bloomberg west" where we focus on the future of technology.

It has been over 20 years since the cosby show went off the air on nbc, but no cosby may soon make a sitcom return as nbc tries to improve its ratings.

Comcast has hired writers to develop a comedy for the 76- year-old cosby.

A source said nbc and cosby have not yet committed to making a show.

At&t is selling off real estate in the bay area.

The phone giant just told and office complex to sunset -- just sold and optics complex to sunset development for more than 200 million dollars.

Meantime, at&t rival verizon just released figures on how many law enforcement inquiries it received.

Verizon said it received more than 320,000 request from u.s. law enforcement officials last year.

The numbers suggest law enforcement leans heavily on phones rather than internet companies.

Google received just 11,000 such request in the first half of last year.

Virtualization software giant vmware has agreed to buy air watch for $1.5 billion.

The goal is a seamless experience moving from desktop to tablet to smartphone, creating a secure virtual workspace.

Cory johnson back with more.

You got the very people who can tell us more about this.

We call them, a $42 billion company making a giant acquisition here.

Alan, first of all, let me ask you, why sell now it are seeing such growth?

We were seeing great growth, but when we started, we found the cultural fit was amazing.

The strategic fit was fantastic.

We have limited time right now to really go grab market share.

It's a scorch the earth policy we have had for quite a few years.

When we got to know these guys and all the technology they can bring to us, the footprint and synergy in terms of marketing customers and partners and culture, it made a lot of sense.

The cultural fit means you like them.

Much bigger footprint than you guys thought.

I was hearing numbers like 10,000 customers.

How many customers would you expect might use this offering from you within the first year, maybe the first three years?

If you look at our customer base -- we have 500,000 customers.

55,000 partners.

You would have a tough time finding any of them that does not have a mobile device.

In several places, i have three or four.

As we think about this, every one of those customers, we think there's a good segment of those that will bring their own devices, and that is the opportunity in front of us.

You are not really going to add 500,000 customers in the first year using this.

Are these guys ready for this?

I think we could double or triple this.

I think the first company that gets 100,000 customers in 100 million devices is going to be significantly ahead of everyone else.

Airwatch is already two times ahead of everyone else in their market.

We are already buying the gold medal here, but if we can double, triple this, we have a great opportunity in front of us . let me ask you -- i feel like a year or two ago, the biggest issue in mobile device management was the bring your own device, the fact that companies were opening the doors to things like ipads, things like samsung galaxy phones, not just the company-approved devices.

It really stems from all the new use cases in mobile.

E-mail containers for people getting e-mail but are not exactly employees, and you cannot manage their device.

All the applications being built, the things we are building for security.

Finally, there is the telecom avoidance.

When you realize there's a couple billion devices in the world, it is a big market to go out and capture.

Is this enough in terms of security for mobile?

Are you still looking at other companies for mobile security?

A lot of other companies are still stand alone in that area.

If we look at previous segments, talking mobile, cloud, previous security, we were joking about this as like a game of scrabble.

We look at the best assets, and we think right now, we've got a really good transform -- really good platform to build on.

In the enterprise mobility space, which is really starting to take off in its first or second inning, this will be something that our customers love, and that's part of the reason we did this deal.

Our customers were starting to vote with their wallets, and now we are able to take this to many, many more customers.

Let me ask you -- you guys did not raise guidance for vmware, which says to me if you're going to add on this business, you are saying it is going to add so much growth in terms of revenue this year, but you did not raise guidance.

Does that mean the adoption of the cloud or whatever headwinds are happening are slowing down your business this year?

Not quite, to the contrary.

What we were doing is being conservative about the first year.

We talked about the bookings growth.

As we think about the radical revenue that cloud business is doing, you see many companies that have a mix of perpetual and radical cloud revenue, and we are excited because, quite frankly, in the cloud space, air watch is significantly ahead of everyone else.

We are going to talk about half a billion devices that we think is our opportunity to manage and secure.

We will see if that actually occurs.

Thank you very much.

Thank you.

From photographing your own wedding to finding ways to make your day more productive, you can take an online class on just about anything, but our online videos really is active -- really effective for students?

I'm emily chang, and this is "bloomberg west." you can watch news and sports 24 hours a day seven days a week if you want to, but what about educational content?

A startup taste in seattle has launched an online network that airs video courses all day long.

You can take classes on anything from live-action photography to finance.

Jon erlichman joins me now with more.

You can watch all day, but do you want to?

There's only so much time in the day, but when i think of traditional broadcasting, i think of television.

I do not necessarily think of education, but that is what creative lives is -- creative live is.

You have this background in the world of entertainment.

You work in a senior role at viacom.

You help discover nine inch nails, which is pretty awesome.

At what point did you say education is where you had to go?

It's interesting.

The cross of media and tech has been throughout my entire career, and when i saw what was happening with education, i thought it would be an interesting opportunity.

And you are doing this cross of media business with tech and a very disruptive industry, which also gets me excited.

We should clarify, we should -- we are not just talking about something that is the equivalent of a youtube tutorial.

We are getting beyond that.

Stories of stuff you guys have done include going to an actual wedding to teach a wedding photography class, or trying to teach people about making an action shot for a movie by going out to a remote lake.

Tell us about the process of making these videos.

We get these instructors who are experts in their field.

Best selling authors, the top of their field, and they want to give back and teach their skills.

They have a deep, deep knowledge they want to teach.

We actually have for the long classes, and they are live and interactive and social -- we actually have for the long classes -- pretty long classes.

Also, we have real students, so we will have people sitting there taking the class.

It's live, interactive, and the best part is it is free.

We get thousands of people.

It is a very different mode.

Kind of entertaining, but also very deep, skill-based learning, going after the continuing education market where people want to learn real skills to apply to their life or career.

If you are watching live free, but you're talking about a group of people, if you're interested, they would want to perhaps go back and get more information, that is when the paid factor comes in.

Talk to us about that business model, how it works.

Has it been successful for you?

It is a premium business model, kind of a classic internet model where you get a lot for free, and it pulls you in, and if you want more, you have to buy it.

It's all free, but if you want to watch again or you missed part of it or you cannot watch any of it because you cannot watch the live broadcast, you have to buy it.

It is going pretty well, i think.

I think we have raised over $30 million at this point, so we are getting well-funded and also pulling in real revenue.

Beyond traditional venture capital money, you have some financing from the hollywood agencies.

They represent talent, and some of their talent are offers, speakers.

We had an instructional speaker who came to do a class for us.

They saw that they have -- we have also talked to some of their celebrity clients who also want to teach.

Teaching is almost like a charitable thing.

It is giving back.

Do not get me wrong -- we actually pay our instructors, so it is not just a do good in, but there is a do good element about teaching and giving back.

Interesting stuff.

Thanks for joining us.

Thanks, john.

As we head to break, a quick look at what is coming up tomorrow.

Mike abbott will be joining us.

I think that will be a great conversation.

Coming up next is this -- the motorcycle of the future -- coming up -- is this the motorcycle of the future?

It very well might be.

I'll tell you more about this coming up.

? "bloomberg west welcome back to "bloomberg west." i'm emily chang.

Tesla has set itself apart in the name of electric cars.

I recently went inside a company that hopes to do the same for motorcycles.

From the front, it looks like a normal electric scooter, but from the side, it is anything but.

A big hole in the middle of its frame means the scooter has as much trunk space as a small car.

Cargo scooter is a pickup truck on two wheels.

It is a vehicle were carrying everyday things.

Danny kim is the vehicle behind lit motors.

They have two vehicles in the makes.

One, their take on the scooter, and the other looks like something out of a sci-fi movie.

Part car, parked motorcycle, it will cost about $24,000. it has high-tech safety features that keep it upright, even in a collision.

It takes all the safety and convenience of a car and marries that with the efficiency and romance of a motorcycle.

It is also electric, but is $6,000, it is a quarter of the price.

Car startups are tough.

If you take the money and many years to take a new vehicle on the road, but after years of development, they hope to get both in the production this year.

I am part of this generation, and i am developing a car for me and us.

To do that, he has teamed up with the chief creative officer at jawbooks.

What i'm excited to do is to really look at the complete package.

How does this new type of vehicle become really attractive to people who know and ride motorcycles, but also people who never have?

Back in the office, kim and one of his engineers are working on their prototype.

Traffic and gas prices make owning a normal car less desirable, so kim thinks lit is ready for the fast lane.

We are not trying to replace the car.

We are trying to create a new class of vehicle for any kind of short commute.

Danny can actually has a pretty fascinating story.

He was inspired to design more efficient vehicles after an suv he was working on fell on him and nearly crushed him, which is why that animation of the collision and the motorcycle not falling over is so important.

From motorcycles to cars, now, ford is partnering with m.i.t. and stanford to study self- driving cars.

M.i.t. is looking at predicting the movement of pedestrians and other cars as well.

Stanford, meantime, is researching obstruction habits.

I want to bring in greg stevens, ford's global manager of research and innovation, with me now from washington, d.c. what does this announcement mean for you guys?

We've been talking about how self driving cars are pretty much still years down the road.

What does this partnership actually involved?

It's really a tremendous, revolutionary technology, this automated driving.

To really make progress, we need to leverage some of the best minds in the field.

Previously, we have announced that we are working with the university of michigan to really develop the sensors and the brains on our automated driving vehicle, and now we have announced that we are bringing in stanford and m.i.t. to leverage their expertise to help us in figuring out some of the challenges of getting computers to take on some of the driving tasks that currently humans do fairly well.

What are the biggest challenges to getting self driving cars on the road?

Is it "we do not know where pedestrians are going to be going?" is it potential road hazards?

Is it what other cars are doing?

There's lots and lots of challenges.

The two specific ones we chose and what stanford and m.i.t.. the stanford one is to have our sensors know not only what they can see but also what they cannot see because maybe their view is blocked by a big truck ahead.

We want to have our vehicle maneuver so that our sensors can get a peek around either the right side or left side of the vehicle to see what is around in case something like an emergency accident avoidance situation happens with the vehicle would suddenly need to steer into that area.

And you guys actually have a ford fusion automated research vehicle right now.

What is the capability of that car?

How will this research be incorporated?

That vehicle has really advanced sensors.

It is hybrid fusion we have taken and put for scanners on the roof, and they actually are lit a laser sensor -- they actually are a laser sensor that uses light like backdoor dolphins used sound, by sending a signal, waiting for did come back, and using that to judge how far everything is around us.

Using that, we can make really accurate 3-d maps of the world and see in great detail where all the obstacles are around us.

In terms of a timeframe, people always say years -- many years, but can you be more specific about when you guys think self-driving cars might actually be on the road?

Our perspective at ford is that it will be a progression.

It will roll out -- automated driving will roll out in a series of stages.

We have active park assist that can do all the steering for you to park you and a parallel parking slot, and we have adaptive cruise control that can do all the acceleration and braking to main your distance from other traffic.

We can take those features and eve all them to next-generation features where we take over more and more of the driving tasks.

We see in that way we will get experience as to what works and what does not work, and likewise, customers will get experience as to what they see ads value and where they see that value is not added.

Fascinating research you guys are working on.

Thank you.

Now, it is time for the "bwest byte." we will be focused on one number that tells a whole lot.

Jon is in l.a. cory is here.

I'm a good driver.

Were you insinuating that i was a bad driver?

I was not in the session.

Jon is a great driver.


i'm the worst.

I heard that about you.

I hope you are brushing up because you live in l.a. 32 is the byte today.

32 feet of a glass panel shattered at apple's flagship store in new york city on fifth avenue.

An errant driver of a snowplow hit something that went flying out of the snowplow.

That was a great segue, actually.

It shot from the snowblower into that last panel, shattered his whole 32-foot thing.

Right, and this is an iconic storefront, by the way.

I have seen it.

It's amazing the city let it get built, given the landmark gm building is their right across from it, but the whole thing shattered.

It has to be replaced by apple.

There are some estimates of the cost.

I do not know what the cost will be.

I do not think anyone really knows.

Do we know -- you know, the iphone has that gorilla glass, right?

The glass that will, you know, last forever.

That's a good point.

Even though it is gorilla glass, how come it always breaks when i dropped my iphone on the floor?

That is true.

Maybe they are using gorilla glass.

That was built in 2006, if i recall.

It is impressive it is still standing like that.

Very bad driver there.


We will see you back here tomorrow.

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