Why Is Facebook's Zuckerberg Buying Four Homes?

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Oct. 11 (Bloomberg) -- Bloomberg's Mark Milan reports on Facebook CEO buying four homes ostensibly for privacy reasons. Milan speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

This is the early edition of "bloomberg west." i am emily chang.

You can catch us at our later time.

The justice department has opened a criminal investigation into the possible manipulation of the foreign exchange market.

The fbi is in the early stages of the probe.

This comes after regulators open an investigation into whether bankers cooled information and used orders to change rates.

John kerry has arrived in afghanistan for talks with hamid karzai.

They're trying to finish a security deal by the deadline that would maintain a limited u.s. force in afghanistan after next year.

Negotiations stalled over undisclosed issues in recent weeks.

India is bracing for what could be the strongest storm to hit the country in 14 years.

The cyclone is currently a category five with winds of more than 136 miles an hour.

It is expected to make landfall on the northeast coast tomorrow.

More than 200,000 people have been ordered to evacuate.

In washington, talks continue but there is still no deal.

Peter cook is with us.

The president's meeting with senate republicans is over.

What do we know?

Conversations are continuing.

A productive meeting is how it was described by senator chuck grassley of iowa.

We did not have senate leadership stepped to the microphone.

Much of the focus has been on house republicans.

Senate republicans also have the opportunity to forge a deal.

They have been floating their own ideas.

They want concessions in return including spending cuts.

I spoke with ron johnson ahead of the meeting with the president.

Our attention is focused on the problems.

If we let him get off free, is he going to sit down and work with us to solve these problems?

I sort of doubt it.

They want concessions and framework for a bigger budget deal down the road before they give up leverage over the shutdown and debt ceiling.

Republicans know they are paying a political price.

The latest poll shows republicans bearing most of the blame for the current shutdown with 53% of americans blaming republicans.

Republicans in both chambers want to get this over with.

I know we focus a lot on house republicans.

What about talks there?

Talks are continuing.

They went into last night and resumed this morning.

The problem is the republicans still want something to show for reopening the government.

They do not want to end the shutdown until the president gives them something to show for their efforts.

They have a long list of items they want to see.

It is not clear they would get much in return.

Harry reid in the senate feels strongly democrats have the upper hand and leverage.

They're pushing the white house to drive as hard a bargain as possible.

Heater cook, thank you.

These days it seems every automaker is working on some form of autonomous vehicle technology.

A new study says consumers are more likely to a self driving car from a technology company like google.

The study was conducted by the advisory firm.

They pulled a group of drivers in l, chicago, and new jersey.

Joining us from chicago is the author of this report.

Consumers want robotic cars from technology companies rather than car companies?

Why is that?

It was a surprising finding from our paper.

I think you need to step back and think about what is a car.

If you think of it as a highly complex computer that provides mobility, i do not think it is a quantum leap to think if i am not driving it, is this a robot or a computer?

In the focus groups you were mentioning, consumers came back to say i think it is more like a computer.

You have radar, cameras, sensors, millions of lines of software code interacting with software and hardware.

It certainly is possible in the consumer's mind to think of technology.

I think that is why they were very open to the concept of a leading technology company making the car.

It was fascinating.

I am a car guy and was very surprised they said that.

We have been following the google self driving car for years.

Do we have any idea of when this will be released to the public?

Most of the traditional equipment manufacturers are invested significantly in self driving cars.

Each week you hear a new announcement.

People think at the end of the decade, there should be self driving cars.

It will not necessarily be ubiquitous.

By mid decade, you could have a significant amount on the market being self driving in western markets.

You broke down the age group of those people who would be the most open to this.

What did you find?

Terrific question.

It was interesting.

You would think younger people might be very interested in this.

I talked to my children.

They are always willing to spend my money.

The real dollars that came were for older people.

One of our purchase of guns in his mid 70's, the former ceo of a large fortune 500 company.

When he saw the concept of the self driving car, it was, when can i get one?

The reality is he wants to have mobility for the rest of his life.

He wants to be will to go where he wants to go when he wants to go there, and this is fantastic for him.

So much so that he was willing to pay a premium for it, a significant premium actually.

You think self driving cars could mark the end of the two- car family.

This is an interesting finding from the report.

We asked the focus groups.

We said if you are a two-car family and tomorrow you have the following option, you get to pick whatever car you want.

If you pay premium, you will get more.

It shows up where you want it when you want it.

When you finish work, you could have your show -- car show up at 10:00 at your offices and tell it to take you home.

It will know it is you and take you home.

Under that scenario, we asked the question, would you be willing to not own or lease a second car and just use this concept of mobility on demand?

The overwhelming response was yes.

They were very interested in having this option alan e -- optionality.

It will be profound when you think about how many cars will be sold and if that will be a significant decline in the number of vehicles sold every year if this concept takes off.

Hopefully i will not be working until 10:00 p.m., but it is an intriguing concept.

Fascinating study.

Thanks for sharing it with us.

Mark zuckerberg likes his neighborhood so much he just bought four more houses.

We will explain the reason behind his buying spree next.

? "bloomberg west." welcome back to "bloomberg west." "bloomberg west." google will be able to put a user's name and picture in ads for certain projects.

An endorsement may show up in ads for the business on a google partner site.

Users under 18 are automatically excluded.

Adult users can opt out as well.

The new policy goes into effect november 11. we will have much more coming up on the late edition of "bloomberg west." among the most interesting new devices are the do-it-yourself home security cameras running over home wi-fi networks.

The king of that business has launched a new and improved security camera.

Cory johnson is back with more.

The notion of big companies starting in san francisco seemed ridiculous a few years ago.

Companies like drop camera are showing it can be done.

I know from trying to get in touch with your customer support people yesterday, dropcam was blowing up yesterday because you have sold so many of these new devices in the first day.

It was the biggest day of sales in our history with the launch of the new product.

I want to talk about the product and what it means.

The product is similar to the last one.

I have one for my dog.

The image quality is so much better.

How much does that change your cost?

What is the evolution in technology that lets you do that?

We have been harvesting some of the same technology that goes into smartphones and invest more in the camera.

We have a better camera than the iphone 5s. the size is a little bit bigger.

It is not appreciably different.

That is right.

It is the march of technology going forward on that side of things.

To same technology that goes into your cell phone goes in to dropcam.

We have some of the same economies of scale the driven forward by that market.

We take the best camera technology and pack it into a package all about video.

I saw a study this week talking about the amount of data going on networks from cameras.

The numbers are huge.

859 petabytes is the prediction for 2015. it is a huge amount of traffic.

I think that is low.

Dropcam is the number one streaming service on the internet.

Say that again.

The number one inbound streaming service on the internet?

It is crazy.

We did not notice until we looked at the amount of data coming in.

We designed the cloud service to support this.

We take in more video than youtube by an order of magnitude that is ever-growing.

I think that is on the low side.

In terms of starting a business in san francisco, i think it is interesting you are doing this here when it was believed you had to do consumer electronics in asia.

I wonder what it is about san francisco that makes your business work better.

A big part of dropcam is the software.

It is a new renaissance of hardware brought on by software.

San francisco and the bay area are the best place to do that.

You have the great schools and technology people thinking about software usability.

That is key.

You do not want to spend a lot of time setting it up.

You just want to see what is going on at home while you are away.

Thank you.

He made billions of dollars helping the world connect through facebook.

Now mark zuckerberg is spending his millions to guarantee his own privacy.

We will explain next on "bloomberg west." ? this is "bloomberg west." i am emily chang.

Facebook ceo to real estate mogul, mark zuckerberg reportedly spent more than $30 million buying up homes adjacent to his palo alto home.

Apparently he is not building a giant compound, but he is leasing the homes back to the current residents.

Why do we think he is doing this?

Is it all about his security?

According to the news article, they say he is concerned some developer is going to come in and build some megahouse and bill it as living next to mark zuckerberg.

I think he wants to maintain the environment he has right now and maintain some of his privacy and control the situation.

This is also a window into palo alto in general.

There are not dated communities -- gated communities.

They keep a modest environment.

In his zip code, you have larry page from google and steve jobs' home where he lived when he was alive nearby.

It is not this extravagant, rich lifestyle.

They want to keep it modest and be able to take walks around the neighborhood.

Modest is relative.

Not in price.

You're paying upwards of $1 million for a two-bedroom home.

$30 million for four homes sounds like a lot to everyone else in the country.

It does not sound like bad -- too bad of a deal.

When you consider this neighborhood in this city and country, it is not that crazy.

I would assume he did give them a game you -- give them a premium to secure the situation.

These are not giant homes.

He has the five bedroom home which is bigger than most of the others in the neighborhood.

Why do guys like steve jobs and larry page choose to stay in palo alto rather than move where they can have more privacy on their own property?

Traffic, there is one perk of the unable to get to work quickly.

I think they do not think of themselves as celebrities.

They like to maintain this man of the people air and want to be able to have a walk around the neighborhood when they want to.

Steve jobs used to have a famous halloween party at his house.

Jobs would famously take larry ellison and others for walks around his neighborhood.

Mark zuckerberg has done the same.

Thanks for weighing in on this story.

We will be right "bloomberg west" back with more of in a moment --we will be back with more "bloomberg west" in a moment.

? welcome back.

Coming up at 3:00, is the bubble about to burst?

The company is seeing shrinking web traffic and has fired 37% of employees.

Can the shopping site turn in around?

That is on the late show.

Bloomberg t.v. is on the markets.

Julie hyman is in new york.

The second day of the rally for stocks on optimism the impasse in washington may be coming to an end even if nothing concrete has emerged.

You can see what stocks are doing.

The nasdaq has been leading all week.

Today it is the biggest gainer of the averages.

It looks like we are setting up for a higher week on the s&p 500. i want to check on what is going on in the treasury market.

We have seen investors buying stocks.

It looks like they are buying treasuries sending yields lower.

They are all seeing their yields change.

Lots of headlines in consumers.

Gap chairs are calling the most after they fell 3%. retail metrics is forecasting gains.

Sales were weakest at banana republic where sales dropped 5%. according to retail metrics,

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


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