Intel’s TV Service Snags: Bloomberg West (9/26)

REPLAY VIDEO
Your next video will start in
Pause
  • Info

  • Comments

  • VIDEO TEXT

Sept. 26 (Bloomberg) -- Full episode of "Bloomberg West." Guests: CBS Interactive President Jim Lanzone, Secondmarket CEO & Founder Barry Silbert, Founder & Partner of Ammunition Design Group Robert Brunner, Eventbrite President & Co-Founder Julia Hartz and Bloomberg’s Nicholas Thompson and Jon Erlichman. (Source: Bloomberg)

Live from pier three in san west," where we focus on the media companies that are reshaping our world.i'm emily chang.

Our focus is on technology, innovationand the future of business.

This intel on the back earner?

A source says it may not launch this year as planned.

The new ceo took the reins.

Ebay pays $800 million in cash to buy a company meant to boost its paypal unit.

We asked how he sees the deal.

And the second market, the place known for trading shares before they go public is now letting users invest in something else, the future of -- first, to the lead.

Intel's plans are facing roadblocks.

A person with knowledge tells us intel is seeking partnerships.

It is looking for partners with rights to movies and tv shows or internet subscribers.

Its goal of starting the service by the end of the year is in serious jeopardy.

The company has been looking for alternative ways to boost revenue as pc demand for pc has slowed.

For more i want to get to jon erlichman who is in l.a. why are these plants slowing down?

How big of a deal is this?

There are a lot of moving parts.

Intel has been talking a long time about this tv project.

They have made several public comments about it.

A set top box with internet enabled television.

Intel in a lot of ways has been part of that conversation on the future of tv that includes names like sony, and apple.

Just like some of those players, one of the key issues if you're going to have a new product is, what are the content deals?

What is going on with that process?

The reporting by bloomberg news would suggest intel's strategy would involve working with a player that has a lot of subscribers.

We do not know who that might be.

If you think about big content subscribers, you think of hulu.

And maybe that takes a little bit of a risk off the table if you are gearing up to go to market, spend some money leading the world know about a product like this.

And you don't necessarily have the mix of content you want.

The second part of the story, there is a new ceo in the company.

When somebody is taking over is there it -- and there is a product on the horizon people are going to associate with the new executive, perhaps there is a concern about the best way to get this to market.

Can we take some risk off the table?

And how does it fit into everything else intel is doing?

One of the priorities of the company is to get its chips into the products people are using and more people are using phones and tablets.

Maybe that is where the focus will be.

It is a story that is continuing to evolve.

We will continue to follow it.

Thank you.

Turning to another top story today, ebay is paying out a lot of money for a rival to improve its mobile payments business.

It has agreed to buy braintree for $800 million in cash as competition heats up with companies like square, google wallet, and others looking for their piece of the mobile payment pie.

It would give paypal access to braintree's app which lets them make payments.

While they have been working together a year, the ceo says acquisition talks started six weeks ago.

Earlier spoke with david markets in new york where the deal was announced this morning.

You know, we feel passionate about being the payment os for all of the innovators that are building the future.

Companies like uber, task rabbit, companies that we could extend.

Braintree's leadership in mobile payments and the white glove service they brought to the developer ecosystem is remarkable.

We fell in love with the team.

We love what they have been doing.

We love what bill and his team has built in the past two years, since he joined.

We are excited to welcome them to the family.

Braintree has been a competitor.

$800 million is a big number.

Why do you think it is worth so much echo -- much?

They have phenomenal momentum with the innovators and disruptors.

They have a great moto -- mobile product.

The touch experience where you can have one touch experience is something we really like.

And we think we could leverage and extend.

And then again, the team is really strong.

The white glove service they are providing is great.

If you are a developer or a startup, when we pick up the phone and you call braintree, you actually speak to an engineer.

That is all the right answers for the market segment that is strategic to us.

You have some observers out there who say you guys are playing catch-up with this deal.

Gus just tweeted it says a lot about how far behind paypal fell in its quarter.

They felt the need to pay big for braintree.

How do you respond?

It is hard to argue we were not on top of our game with developers for a couple of years.

Now we are focusing very intensely on coming back.

Definitely the deal is part of us accelerating her comeback.

I am committed to making this happen and am committed to making paypal a great company for developers to work with and build amazing consumer experiences on.

What can you tell us about how it will be integrate and what it will mean?

It will not be integrated as such.

Bill will report to me and his team will report to him.

It will act independently.

It will provide apis to integrate paypal branded experiences and extend globally much faster than they were on their own.

But we won them to continue providing great service, managing the risk they are doing it, which is very specific to the developer community and new companies that are growing very fast.

We want to keep them as independent as possible so they can continue growing and potentially even faster without our help -- with our help.

You guys are there, google is there, i sat down with the square ceo jack dorsey and talk to him about the competition.

Take a listen to what he had to say.

We want to provide something that is seamless and easy.

And that is comprehensive.

A lot of our competitors are looking at various parts of the system.

Someone is building a credit card terminal.

Someone is building loyalty and coupons.

Analytics.

We decided that was not for us.

They're all of these scenes.

The customers see all of them and it slows down the transaction.

David, how do you respond?

We have a radically different approach to the market.

We want to create an open platform where developers can actually build great experiences and integrate paypal inside of their own ecosystem and world.

So we announced beacon a couple of weeks ago.

Begacon enables consumers to actually walk into a store and without launching an app or doing anything, pay hands-free.

The beauty is that it integrates with terminals like micros 25 different systems so small businesses and large enterprises do not have to rip out their existing system, which is the heart of their business.

Payroll, they do all of these things.

So we really want all of those retailers, small or large, to be able to use paypal and offer great experiences without having to rip out everything.

And also we do not think we can actually build every single experience for restaurants or for retailers or for taxis or for any of those verticals you want to cover.

We need to enable developers to do that.

If we are supporting that and we can bring 140 million customers who use paypal to these guys, all the better.

We will capture market share faster.

That was.

-- david marcus.

How will this fit into their digital advertising strategy?

We asked the head next on "bloomberg west." ? i'm emily chang.

"bloomberg west this is." -- this is "bloomberg west." they will now be able to embed video clips into their tweets in real time.

How will partnerships like this influence broadcast advertising?

For that i want to bring in jim rejoins me from new york.

First of all, welcome back to the show.

You guys, joining this program, along with a number of other parties, why did you decide to do it?

We operate a number of major properties that do premium video . twitter has become one of the best ways to ditch her view that video.

-- to distribute that video.

With the amplified program, we will be able to embed clips directly into twitter.

Obviously that is going to be great for users.

And the other wrinkle is we are going to be co-selling these clips with twitter to advertisers.

Twitter has filed to go public.

The business has matured over the last couple of years.

What do you think about the timing?

Is it ready?

We will see.

They are obviously in the quiet period.

Social in general is one of the major ways that publishers like us are receiving traffic.

In the old days, it was all about who would come to your website.

And then search engines became a major thing.

We employed people who are experts at that and then came social.

Between twitter and facebook and others, it is a major thing we had to get our arms around as product people.

Especially with the advent of mobile which is 50% of all internet traffic.

We have had to adapt all of our products.

Social is a great lead for mobile product.

I think it represents us coming direct to users.

A lot of curiosity surrounding how you get these deals done.

How did this happen?

Did you go to them?

Who had to do the convincing?

Honestly it is more of a real partnership.

We have a lot of them.

We are distributing video to dozens and dozens of different websites.

Big and small.

That is everything from cbs shows to cnet, to tv guide, which we own it digitally.

So this was a natural partnership between our sales teams and as you saw, they have done others as well this week.

And for us, this is one of many partners cbs interactive has.

You have been at a adweek conference in new york.

You have mentioned that we hear the same trends over and over again.

Using data to crunch the numbers.

Have better advertising.

Are we there yet?

Do we have it right?

If not, why not?

This is the 10th anniversary of adweek.

I think people were wrestling with issues like mobile and data and social and video.

It was about whether we integrate these things.

I think now it is about, what do we do with them?

They are here to stay.

The new things that we have heard that were big, one is program -- programmatic advertising, automated buying of ads on websites.

Right, that is robots buying the ads.

Yes, they are coming to eat our livers.

What is your take?

Is this the next thing?

I think it is a big thing.

It is more important as you go down in advertising, all premium publishers who are going to maintain direct sales forces for our benefit and for the clients', but as you go down the long tail of video, there is a lot of that, banners and everything else, automated is more efficient.

We use it and you are seeing more people use it.

When you look at the landscape, facebook, google, yahoo, how do you see things backing up?

Is there one giant?

Is it google?

They are all different.

If you look at the top 10 companies, we are the only one who got there on the back of being premium content.

You have a search engine, social network.

You have an auction company like ebay.

Aol, which is an isp.

Everybody is different in the echelon.

I think there are different winners depending on which vertical you are in.

Cbs is a content company.

Whether that is television or the internet.

Jim lanzone, joining us from adweek in new york.

Thank you for always for stopping by.

Guggenheim partners is turning to the former interim chief of yahoo!

To help it become a player in the media world.

We will take you inside the strategy next.

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

Guggenheim partners is a household name on wall street but it is also boosting his profile through the hiring of the former interim ceo of yahoo, ross levinsohn.

We caught up with him.

What can you tell us about his game plan?

Earlier in the show we talked about how intel for its tv product is looking for content partners.

On the other side you have people like ross levinsohn who have a lot of content and are looking for distribution.

Here is more on his game plan inside guggenheim.

Near the beach in santa monica, it is common to see skateboarders and during the lunch hour, you might see ross levinsohn.

This is an excellent respite to come out and get a sandwich.

Stare out at the ocean.

It clears your head for 10 minutes.

The onetime fox executive works for financial services giant guggenheim at its office in santa monica.

He joined this year and includes brands like the hollywood reporter, billboard, adweek, and dick clark productions.

We started with some terrific brands and opportunities.

I get to play in a big sandbox.

Big because of their pockets.

It has more than $100 billion in assets.

He recently bid for hulu before its owners opted not to sell.

He owes also interested in v -- is also interested in vivo.

In some ways a river strategy to what he was doing at yahoo.

We were trying to create brands.

Here we have branson we are looking for platforms.

Where it works is where you take great brands and match it with great distribution.

Then you have something that grows exponentially.

While some may view guggenheim as an investor, he sees himself as an operator, like any media company with different brands.

I like operating.

Yahoo was a great experience for me.

Fox was a great experience.

This is the continuation of that.

Jon erlichman.

Now to one of the most mysterious startups and tech, founded by a stanford computer science student and done -- gotten a lot of attention although no one seems to understand what it does.

It calls itself saved payment platform that is modernizing the way the world transacts.

That's about it.

It announced 25 million dollars in funding from andreessen horowitz another high-profile investors a few months ago.

Today they added another one to the list, so richard branson.

How is clinkle attracting all of this money?

Nicholas thompson is the editor of the new yorker.com.

We were just watching an ad, a new one clinkle has put out the tells us nothing about what the company does.

How are they attracting all of this money?

They are amazing in how opaque they are.

It could be an ad for an insurance company, a shoe company.

It shows people disappearing and reappearing in talking about the word connection.

How are they attracting this money?

They have some tech that is very exciting.

We know it has to do with the mobile payments and audio.

Installing software and being able to use it to pay for things.

So it might be the next best thing in mobile payments.

That is a very competitive market.

Google wallet, square, a lot of other players.

They must have something good that has attracted all of these investors.

There is also something very mysterious and strange about the company.

You have been critical because a bunch of stanford students dropped out to do this.

He seemed to have the support of the university.

I spoke with the cfo at stanford and i talked to him about some of your critiques, the way they are handling entrepreneurship.

Take a listen.

We are very proud of the many facets of the university.

Entrepreneurship, we are very proud of something like 40,000 companies being created by stanford alumni and faculty over time.

It is a very important part of driving the economy.

We of created hundreds of thousands of jobs as a result.

Nick, does that satisfy you?

A couple of things that play, i was not critical of clinkle because of its connection to stanford.

I said it should stand on its own.

Based on what they bring to the market.

My criticisms were the early investments came from passers.

There was a lot of students became backing up their degrees.

So the initial concerns were the stanford had gotten too close to this company.

Nick, we will continue the conversation after this break.

? you are watching "bloomberg west," where we focus on technology and the future business.

I'm emily chang.

T-mobile u.s. is going to stop stocking blackberry devices.

The company will directly ship blackberries to customers who order them.

T-mobile says it remains committed to the plat -- blackberry platform.

Blackberry will stop marketing to consumers and will focus on business customers instead.

Nokia is reportedly considering teaming up with a french company . however, no talks are underway.

Once its phones are gone, no key is going to become a wireless network manufacture and team up with the company to challenge eriksson.

It could be game over for ea's college football game.

It says it will not publish next year and is weighing the future of the franchise to two ongoing legal issues.

Ea has confirmed it reached a settlement with former college players.

They claimed ea used to their likenesses without permission.

And we are back talking about a startup called clinkle.

In number of stanford students dropped out to start the company.

It has raised several millions of dollars but nobody knows for sure what it does.

Nicholas thompson is a stanford alum and editor of the new yorker.com.

We were discussing whether or not stanford should be supportive of students dropping out.

To be entrepreneurs.

There is a complicated relationship between stanford and clinkle.

Should stanford be giving students incentives to drop out?

To leave their education behind?

That is a complicated question.

It should professors be allowed to invest in companies?

You don't generally want to make finance with coercive power.

That is complicated and something the university has not taught through entirely.

Clinkle lead these conversations about stanford to come to the forefront because it was founded by so many students, because the faculty was invested in.

Those questions were on stanford.

Now there are other questions on clinkle, here is this company, it has raised $27 million, what does it do?

How is it going to succeed?

Those are different but interesting questions.

We are watching this ad they just put out which does not give us very many clues.

There is a shot of a digital mobile wallet.

We can speculate based on that.

Is this something jack dorsey and paypal should be worried about?

Absolutely.

I'm sure they are watching it carefully.

One of the main reasons why they are secretive if they do not want their competitors to know exactly what they are doing.

To know what the secret sauce is.

The best case 4 clinkle, the ceo has talked about it like a google, he has massive ambitions.

It is possible he is talking a big game and it is possible he has figured out something really smart jack dorsey and others have not.

And eventually we will know what it is.

But we did not get a lot of new information from this ad.

They got the publicity.

We are airing it.

We will be watching.

Nicholas thompson, thank you as always.

It looks like the think of lost twins were late to the market once again.

-- vinkelvoss twins were late to the market again.

Jon erlichman is back with more on that.

An exploding market, more than 11.5 billion bitcoins out there.

This is a big virtual currency market.

More from new york on what is called the bitcoin investment trust.

Thank you for joining us.

Break down what it is you are doing.

Second market is a platform that helps companies raise money for their shareholders.

I haven't been a bitcoin believer for a few years.

We decided to enable investors institutional and accredited to invest in bitcoin in an easy way.

What kind of investors are we talking about?

If you want to purchase large amounts of bitcoin you have to open up accounts on exchanges around the world who are not regulated.

You have to wire money that may never get there.

The idea is to create a vehicle that is traded on second market, which is regulated, to enable investors and offices and traders and the people who can write checks to get involved in this.

Fast and exciting but there is a certain mystery and curiosity everyone has.

Worries about risks and all that stuff.

What kind of risk are you taking on as you do this?

Second market is a business.

We are not taking on extra risk.

We are regulated.

We know how to raise money.

When investors getting involved, they need to understand the outcome is binary.

Just like an early-stage startup where you can either lose all of your money or it is enormous for what bitcoin could become if it has success in becoming a global value like gold or the remittance market, which is a $400 billion market.

Were taking on square, paypal.

We did mention the twins, and you take us through your thinking on when you are going to make this announcement based on what they are doing and what is different with what you guys are pushing ahead with?

The concept of an etf, which is what this is, it is not novel.

The idea of investing in a liquid currency and creating a vehicle is not novel.

He started this process six or seven months ago.

We are live today raising money for the vehicle.

Distinction between what second market is doing and what the winklevoss are attempting to do is number one, our vehicle is open to sophisticated investors.

I do not believe this is ready for prime time given the risk profile.

Number two, from a practical perspective, etf's can take years to get into the public market.

It is questionable as to when the sec will allow this to go public.

How big is it going going to be?

If you look at paypal, and it is a $25 billion company.

It going is one point $5 billion.

Could it be as big as paypal?

-- bitcoin is $1.5 billion.

We are talking about enormous upside and significant risk.

As for your business, some people have written this is a way for them to diversify the business.

From a business that got started based on private share trading activity.

What do you say to that?

How big of a part of your business could this be?

Second market was around four years e4 we got involved in private company stock.

-- before we got involved in private company stock.

We have been making those assets available.

That is exactly what we are doing again here.

We are in no way getting away from our fast-growing business for private companies and private funds.

I appreciate the time, barry silbert ceo of second market joining us from new york.

Samsung has a galaxy gear and google has glass.

Will apple enter the wearable computing market?

We ask the former head of industrial design next on "bloomberg west." ? welcome back.

I'm emily chang.

Samsung beat apple to the wearable computing market when it introduced the galaxy dear smart watch this month and google already has google glass.

Now apple is working on a smart watch as well.

Is apple delaying it assigned it is struggling with innovation?

I am joined with the former designer.

In addition to designing the nook and beats, how is johnny i've doing?

I think he is doing great.

Obviously very busy.

So when you hear these claims or concerns innovation that apple has stalled, do you agree?

I do not think so.

I think apple has always been innovating and will continue to be innovating.

I think what is going to be interesting is what is next from apple.

They obviously, every iteration they get better and better.

It has gone to the point where you're not surprised anymore.

So i think tom and not even the external pressure, there is -- think, not even the external pressure, there is internal pressure.

The bracelets, galaxy dear from samsung, glasses from google, what does apple need to do to make a dent in this market?

I thought about this other day, in terms of wearables, we have the most successful line, which is our beats headphones.

Three things we have learned a lot of tech companies do not understand.

The first thing is a wearable product, it is not so much about fit, it is about how you feel about it.

That expression it makes.

It is part fashion in part a personal representation.

That is something a technology company is not used to understanding.

If apple put out a smart watch, what does it need to have?

Like i said, it has to feel good -- people have to feel good about wearing it.

That is one of the challenges google glass has.

A number people actually put it on the head is relatively small.

If you think about the number of eyeglasses and watch variations in the world, here is one thing, we want you to wear it all the time.

It is going to be difficult to be adopted.

Apple understands fashion.

They will do something that is different and much more, something people will want to put on.

What you think of ios 7? i think it is great.

Is an amazing?

It's an evolution.

And it's really back to some simple design principles apple got away from an software.

The idea of flat design being new, it is not new.

It is going down to the simplicity and purity and the simple approach.

I think johnny is the right guy to do it.

Then you have an editorial thread through the product.

The new phones are incremental.

I am most excited about the fingerprint scanner because i think it can lead to a different level of functionality.

Some new materials and finishes.

The gold is interesting.

What do you think of the gold?

I was surprised.

It has been amazingly popular.

I'm kind of eating my words on that one.

I thought it looked like desperation.

People seem to love it.

It is the hardest one to get right now.

What would you like to see from johnny ive?

I would like to see apple surprise me and doing something i'm not expecting.

Apple is an amazing company and in the last decade it has been getting better and better at doing great products.

And every time it is an incremental leap but it is incremental.

I would like to see them do some things that are really driving innovation, in design and tech knowledge he.

So i'm expecting to see something that just blows my mind.

That is what i have been missing.

I would like to see that, too.

Robert brunner, like you for joining us.

-- thank you for joining us.

How are events bringing in billions?

We will sit down with a cofounder next.

You can also watch us on your tablet, phone, and bloomberg.com.

? welcome back.

I'm emily chang.

You can also catch our early edition at 10:00 a.m. alibaba's vice chairman has written a blog post explaining why the company ended talks for its upcoming ipo on the hong kong stock exchange.

He says the exchange refused to accept alibaba's structure.

He writes we understand they may not want to change his position for one company but we believe hong kong must consider what is needed in order to adapt to future trends and changes.

In the united states it would be able to move forward with its ipo under its partnership structure.

Event brite is giving ticketmaster a run for its money.

It is announcing it has brought in $500 million in the last six months.

$2 billion in total ticket sales since it was founded in 2006. what is driving its growth spurt?

Congrats on the milestone.

What happened in the last six months?

I think it is a lot of the same.

In 2006 we founded eventbrite.

We wanted anyone to be able to create a live experience.

So that global platform has been growing.

People are finding it.

We have hosted millions of events on the platform.

Right now there is 150,000 of them on eventbrite.

Millions of attendees are finding them.

It is just a cycle that is fueling growth.

It is really exciting for us.

How do you keep having growth spurts?

Global is the operative word.

Our platform has been used in 170 countries.

We are localized in 14 countries in seven languages.

You have really pushed on international.

I know that is challenging.

Every country is different.

We opened our london office two years ago and we have seen explosive growth in the u.k. in london it is about 40%. and we acquired a company in latin america that is also growing on the big trend of latin american growth in ticketing.

Is that the bigger concerts or is it more of the meet ups or the festivals?

It is exciting because it is the people we built eventbrite for, the masses.

It is the bookstore owner that is hosting a book signing party.

The shaft hosting a cooking class.

I think the platform is so easy to use, but we also have built great technology that can take on big events like governors balls or tough mutter -- tough mudder.

It seems like ticketmaster still has the beyonce concert.

How'd you get more of those?

A question is do we want them?

Ultimately we see as being ubiquitous with life experiences.

This website will he.

But it is all about timing.

We are going to walk the -- so absolutely.

But it is all about timing.

We are going to walk before we run.

Some other ipos have done well.

You guys have been open about your plan.

Where do you stand now?

We have been open about the fact we are building an independent company.

By virtue of that being our goal, of course an ipo is in the future.

I am not being cheeky by telling you there is no timeline.

It is a combination of the market being right and ready for something like eventbrite and also our team being ready for the challenge.

We will not hesitate.

What goes into being ready and getting the company prepared for a milestone like this?

It has to do with technical aspects.

Are we ready to become a public company and really be able to deliver on the growth we are seeing as well as being able to operate within the public market?

We want to be responsible.

We have an amazing team and we want to set them up for success.

He mentioned kevin, the ceo and your husband.

You are a husband-and-wife team.

I'm sure as you are moving toward this milestone, starting a company going public is not easy.

How do you guys do it together?

We happened to greet -- be a great partnership.

He is an incredible mentor.

We have complementary skill sets.

Not only are we founders, we are parents.

We do a lot of things together which makes it interesting life.

I know you have been focused on the company culture.

How do you infuse the culture -- do you make it more flexible, do you have more flexible options for some of your employees?

I try to model what i think is human decency.

I think often when companies grow fast, that is lost.

So a lot of what happens at eventbrite, i try to be a resource to fan the flames of innovation.

We will be watching for an eventbrite ipo someday in the future.

Julia hartz, cofounder of eventbrite, thank you for joining us.

It is time for the bwest right, where we focus on one number that tells a lot.

Jon is in l.a. i have 15. happy birthday, google.

15 years ago the magic got started.

To celebrate google invited members of the media to the house where it all began, the garage.

Larry page and sergei brin, they were renting some rooms at this home.

Google ended up buying the home.

There you go.

Amazing.

15 years since google was founded.

We are going to have a great show tomorrow with some of its earliest employees to talk about the good old days.

I am sure there was some hard days.

But they got it to today.

Apparently they like to play ping-pong in the grudge -- garage and hit the hot tub.

Maybe we will get insight tomorrow.

Wonderful.

Thank you all for watching this edition of the show.

See you back here with the special edition about google tomorrow.

? . .

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

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change