Lenovo to Acquire Motorola Mobility for $2.91B

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Jan. 29 (Bloomberg) –- Author Andrew Blum and Bloomberg’s Cory Johnson discuss the internet’s infrastructure, Facebook earnings and the day’s other top tech stories with Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

Think about a deal like lenovo acquiring motorola mobility?

Again, we are faced with this question about how big can these companies get?

Do we need to have a checks and balances of different companies separating and having some friction between them . tell me what's going on at microsoft.

Why is that number two today?

Speaking of monopolies, will the justice department use this in a pernicious way?

Look, the way of the people thinking of the world is framed by the antitrust.

They approach their own issues on antitrust as well as the architect their network.

Microsoft looking for a new ceo.

Steve ballmer came in at a time when he was really handcuffed by the rulings of the justice department because microsoft had grown by using the power of their operating system to force people are strongly compelled people to buy their other products.

The browser.

Pre-k's that led to the antitrust problems.

What you saw for microsoft is the inability to get away from that.

That was the central thing that happened during steve ballmer's tenure.

Now when they look for a ceo, that still looms as what is forcing the company to behave in the way it does.

Let's talk about what's going on over at facebook.

We got the details from yahoo!

And we are talking two completely different operations.

Facebook is crushing it with the numbers they came out with today.

Nearly $2.6 billion and 90 days.

91. one year ago, the same 91 days they got $1.6 billion.


And they don't make the thing.

They were going from dust off the mobile where they had about 20% on mobile one year ago.

They're going through this giant transition and we are now over 50% revenue mobile.

Their changing and growing the business at a massive scale and a massive speed.

You are going to have to add a lot of the mobile networks to "tubes." just lay out the steps of making a call in the iesco stand having it move all the way to the west coast with photographs and sound?

Important thing to recognize is the denser it gets, the more like a cordless phone it gets.

The closer we are to our antenna , it belongs to at&t or verizon, but once it is there, i could not imagine it's more than a couple hundred yards from here.

Then it is a fiber network like any other.

It is not about owning the entire pipe or is it?

Another company might own the conduit or three dozen companies might on the wavelength through that glass.

They are all jostling together and you end up with a really layered networks that run parallel.

Of any seo company like instagram -- when you see a company like instagram -- owned by facebook.

Talk about how that changes the internet to handle pictures, netflix, and that role.

Who has most of that ipipe?


That's the easy answer.

You have to draw the line between communication companies and information companies.

Traditionally telecom moves bits from one place to another and now we have companies like google and facebook essentially building their own global infrastructure.

It does not necessarily mean they are digging trenches, but they are running their own autonomous network to grow to scale.

What that means in the case of instagram is suddenly they get to use facebook's big, global network.

They are not laying their own fiber.

Google has their own local fiber initiative, not to be confused.

Is there something that is being consumed by the traffic of netflix and instagram?

Netflix says they are responsible for 30%-40% of the traffic in the evening in the u.s. it's an astounding number.

That's amazing.

At the problem with net neutrality goes away.

-- that is a problem.

Verizon can charge if one customer of the millions is using 30% of your bandwidth, maybe you can charge them more and that could be a problem for the profitability of netflix, their growth, and the cost to subscribers.

Can't you tell that cory johnson does not like an all you can eat buffet/ netflix like the all you can eat buffet.

That is the misnomer about net neutrality.

Do some companies get preferential treatment?

You have google and netflix running their own global networks and they're plugging directly into comcast, cablevision.

They have already established their own fast lanes.

They avoid the public internet for all but the last mile to your house.

That is something that has evolved pretty quietly over the last five to seven years i would say.

It has fundamentally changed the internet in a way that i don't see net neutrality coming up to.


Andrew blum, author of "tubes, a

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


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