Taking Tech Inside the Walls of San Quentin

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Sept. 3 (Bloomberg) -- Chris Redlitz, founder of The Last Mile Program, discusses how taking tech inside the walls of San Quentin is giving prisoners a second chance. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

You are watching "bloomberg west" where we focus on technology and the future of business.

I am in the lead verizon has agreed to play -- pay vodafone for a 45% stake in verizon.

It is one of the biggest deals in a decade and gets verizon will control over the most profitable u.s. carrier.

They can use it for network investment.

The company say they expect a deal to close early next year.

Photography pioneer kodak emerged from bankruptcy today.

In order to do so, codec had to cut $4.1 billion of its shareholders.

The new kodak is quite a bit different.

It is smaller and will focus on printing technology and film for the movie industry.

Three shareholder advisory firms are renewing their support for michael dell and the plan to keep the computer maker private.

Iss and egan jones ratings all put out reports endorsing a deal.

Shareholders will meet last week to vote on the buyout plan.

Cbs is back on time warner cable after a month-long feud.

The cable company agreed to pay more for the right to transfer -- transmit cbs signals.

It is still below the two dollar subscriber per month that cbs wanted.

Who is the winner?

Alex sherman covers time warner cable for bloomberg news and joins us from new york tummy tuck.

-- new york.

We have been talking about this.

A deal has been done.

What are the aspects of this deal that stand out to you and why did it happen now?

Time warner cable and cbs have thoroughly exhausted me.

They have come to an agreement finally after a month of delay right before the nfl season, which i do not think is a coincidence.

The key points here are that time warner cable probably lost.

It seems like they were the ones that kate here.

Cbs is getting closer to the two dollar purses driver it wanted.

In addition to that, time warner cable does not get the out of home mobile rights that it wanted.

They can potentially sell those right down the road to one that may not even be there today.

Or potentially a company like amazon and netflix but may want to go into live streaming.

Those are probably the main points.

Is the take away content is still king?

I think so.

The idea here is that content companies like cbs continue to come out on top.

The pay-tv providers continue to be pressured.

Earlier today i was talking to jason blair.

He believes this will lead to more consolidation down the road which is a common theory.

Then we can see them get involved with say a charter or a cablevision and come together building up their customer base and having more leverage on the content of the news which are able to drive the ship.

Cbs may win in a disputed but in the future if time warner cable has a million more customers, it may be time warner cable that has the upper hand.

What about unbundling.

How far away is that?

I only watch about five channels and one is online for free.

Time warner cable actually offer this all at cards -- a la carte solution saying we are ok.

Pick a price and we will sell it for you.

It is not the pay-tv providers that are against it as much as the content providers, the disney's of the world.

The model works really well from them.

They get a certain amount of money per subscriber.

Everything a person that signed that pays them effectively a certain amount of money per month.

That means you may not watch espn but you're still getting paid five dollars or six dollars every month for every person that has cable tv.

That is why this idea of unbundeling probably will not be here anytime soon.

The programmers do not want to do it.

Life a lot remains to be seen as always.

Thank you so much.

One of the things that played a big role in this dispute is the way new platforms like netflix and hulu are changing the way people watch tv.

It is something that les mendez -- les moonves even announced to his staff.

Jon erlichman has more.

The way we have watched television is changing.

Forget black screens.

Many of us turn to smartphones to watch television.

No cable, no problem.

With an internet connection you can watch shows on netflix or hulu or amazon.

As consumers are getting more concerned about higher cable bills, they will push back on the cable providers and say i do not want to pay these higher bills for this big bundle of channels.

He recently called a la carte a fantasy.

Will consumers agree if apple unveils a smartphone style television were channels are more like apps?

Consider the view of advertisers.

People do not actually know what they want inside the bundle until they have it.

Once they have it they really as i do not need 80% of it.

Advertisers will benefit.

For now, everyone is playing nice.

Apple is adding channels like hbo and espn.

If users already pay for the truck ramming through a provider.

Younger demographics in particular are getting more used to watching tv shows when, where, and on what device they want.

You heard me talking earlier with alex sherman about this very question.

Can customers really force this kind of change if the content providers are resisting and the cable providers are resisting?

We highlighted that comment from chase carey.

The fantasy does not give you a lot of context.

A giddy more context when he said this is a conversation -- it gives you more context when he said this is a conversation over 10 years, not over three.

I think that is where you can have more debate.

Are we going to see a lot of new, innovative services that are going to put pressure on the traditional way television is delivered?

One of the comments i got to this is what about area -- aereo?

You are right.

We will be uncovering a new samsung watch tomorrow.

It depends on how many new products and services will be offered over the next three years.

By the way, bloomberg is one of the channels you can catch on aero.

Jon erlichman.

It is one of the most anticipated tech ipos.

How close is twitter from going public?

We will tell you next on "bloomberg west"." you can also watch a streaming on your tablet, phone, and bloomberg.com.

? welcome back to "bloomberg west"." one of the most anticipated tech ipos could be getting closer.

Twitter has started talking to banks about handling its ipo.

According to two sources with direct knowledge, the companies waiting -- the company is waiting on third-quarter results.

It could happen this year.

I am joined now.

Doug, what more can you tell us about the timeline of twitter filing to go public?

The filing could happen as soon as this year, perhaps next year.

They're waiting for their third- quarter results to come in.

After that it is a lengthy process of going back and forth with the sec and making sure that perspective for investors is in good shape.

It is looking like 2014 is the time.

What sort of discussions have they had with inks -- banks?

They are feeling out the banks.

The cfo it sprang to get a sense of who they want -- is trying to get a sense of who they want.

Working stanley led facebook ipo.

Got some flack for that.

Probably feeling it out at this point.

They're probably starting to get an idea of who will get that coveted position.

Tell me more about mike duke dump -- mike gupta, the ceo of twitter.

He has been around the industry for more than one decade.

He was at yahoo before that.

He will probably draw most on the zynga experience.

One of the things that kept coming up is that he really has a knack for explaining complicated or new emerging business models to the laymen, to the investor.

That was important with the net to explain things like virtual goods.

It makes it important for twitter to explain how they make money.

Their new online advertising business is not well understood by wall street.

The other thing he did as inge with secure a $1 billion dollar line of credit from the wall street banks -- i'd zyngaaat zynga was secure a $1 billion line of credit from wall street.

What is going to keep them from making some of the same mistakes facebook when -- made when it went public?

We talked about timing.

Timing will be important here.

They know not want to go to early.

They want to have an established revenue growth.

They do not want to show too much maturing and slowing down.

The other inc.

Is that -- the other in that they are taking a proactive stance on is employee shares.

While facebook let private market investors get their hands on the shares, that had an effect of making the ipo were chaotic and more speculation about the valuation that eventually drove up the value.

Twitter has been more firm about keeping track of who had those shares and two has information about the value.

We're going to be on top of making sure this does not go out.

Setting the price will be a key factor.

Thank you so much.

Speaking of twitter, one of the social platforms of that has come away for brands to reach potential companies.

Lithium creates software to help companies do this and counts companies like best buy and support a in its clients.

They just completed another - sephora in its clients.

They just completed another round of funding.

Lithium allows customers to talk to other customers about brainsnds they love.

You can think about the advantage of finding her at and experts out there who can help spread word and get people to buy more products or get them to help other customers fix problems.

Some companies provide new innovation.

Your competitors are salesforce, jive.

What makes you different?

The big competitors have the old way that things have been done.

There have been billions of dollars that have been spent on digital customer care and marketing initiatives that really do not serve the need for customers anymore.

The real question is how do you take the old way of doing things and turn it into the new way?

Salesforce and jive are involved in that as well.

There are public companies.

While ay raise 50 million incident looking for a public exit?

We have raised capital.

We had plenty.

We saw an opportunity to partner of one of the leading mutual fund companies that manages over 2.5 trillion in assets.

It helped us establish an anchor shareholder that can help us perfect our strategy for going to the public markets.

I think you have seen a number of companies trying to work out to many of the kinks in the public markets.

Do you think there are too many risks to going public?

I think there is a separation between markets where you are replacing technology that has been used and new markets like social.

In social we're still learning what the very large shareholders want to see to help fuel the growth growth of multigenerational billion-dollar companies.

In this case, we had a chance to partner with a shareholder who could really help us.

What about rewarding employees?

One of the great things about the bm is our values about building long-term success.

Most of our companies -- about lithium is our values about building long-term success.

Most of our companies are helping build change in the way large brandss are doing business.

It is exciting to perfect this path on becoming a public company, building the right business model and helping us avoid mistakes.

Quite how can you help brands that are struggling?

Let me give you an example.

Can you talk about them in particular?

Best buy transformed their business.

What they are really finding is that getting in touch with their customers over social channels is a great way to stay connected as they transform into other product lines or perfect more of their e-commerce capabilities.

In the case of hp, there is over 500 million posts on the hp communities.

We handle 20% of their traffic.

As they transition to be able to address the opportunities of mobile, we help them stay connected to their customer base.

We have other customers like sephora where women are talking about which mascara to use.

We have companies like skype where 200 million people are answering questions about how to install skype on new products.

Conversations on a network across all of our brands are happening every day.

Thanks so much for bringing that story to us.

Thank you for joining us today on "bloomberg west"." here's a look at what is coming up tomorrow.

Samsung is releasing a couple of new products and we will be there live to show you the new galaxy smart watch, tablet tom and anything else they unveil.

That is tomorrow at 10:00 a.m. pacific.

Up next, can technology will be key to reforming some of the nation's toughest criminals?

Some veterans think so.

We explain next on "bloomberg west"." ? this is "bloomberg west"." imagine a startup incubator in prison.

This group teaches inmates about technology and then has participants at their startup ideas to the likes of ceos and mc hammer.

How are they doing?

Chris is the cofounder of the last mile and joins me here outside on this beautiful day.

Tell me a bit about the program and what it involves.

It is a six month program.

We teach them about technology.

We actually teach them about business skills.

Most of the men in the program have never experienced technology like you and i are used to.

Many have never been on the web.

We teach them basic technology through bringing in experts to the prison and through more traditional means.

What kind of prisoners have you worked with?

What kind of things are you teaching them?

There is a social media part.

All the participants actually do participate in social media.

They blog, tweet and answer questions.

It is all done manually.

A write it out.

We create a tweet sheet where they fill in.

Our volunteers upload the content.

It is published to the web.

What kind of ideas are coming out of the incubator?

What we asked them is to come up with what they are passionate about and we will build a business around that.

One is the guys came up with the idea of creating mobile barbershop, inverting old school buses around college campuses.

The technology component was to create an app where you scheduled, paid, and you uploaded your playlists and send it to your chair before you actually sat down to get your hair cut.

That sounds like something i could use.

You are also working with some high-profile people.

Mc hammer, the first lady of california.

How do you get these people on board?

How much of their time do you get?

I have asked a lot of people to come in.

There has not been one person that has declined at this time.

There is an entry about into a prison.

Once they see the enthusiasm and the passion that people have insight, they come back.

Thank you so much.

It is such an interesting program.

Thank you so much for sharing that story with us.

It is time now for the bwest byte, a one number that tells a whole lot.

What do you got?

It is $250 billion.

That was no key is peak market valuation-- nokia's peak market valuation.

The market valuation is $19 billion now.

A lot can change in 14 years.

It has.

It is incredible.

That was it the market cap.

The peak market share was in 2008 with 40% of the world wide mobile phone market.

It has plummeted spectacularly.

I saw an interesting stat about their chinese market share.

They had 54% of the market in 2010. now that is 1% percent.

Can you believe that?

Those are big numbers.

They are still selling a lot of phones even with the declines.

One that i thought was fascinating was that the board had met no fewer than if tee times -- 50 times to talk.

We have seen this as though many of the companies.

All right.

Thank you for that.

We will see you tomorrow in new york at the samsung event.

Thank you all for watching this addition of "bloomberg west"." we will be back in the morning.


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


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