? alive from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie will.
The new microsoft ceo makes his public debut and is expected to introduce office for the ipad.
Will this be enough to save the companies flagship software?
What's a labor dispute that affect how colleges pay their top athletes -- if colleges campaign the top athletes.
Why she think this is a bad idea.
Sheldon adelson -- potential gop candidates are going to las vegas to try to win his support.
But more importantly, his money.
You are watching "market makers" on bloomberg television.
It is 11:00. i am erik schatzker.
I am scarlet fu,tephanie wu, in for sarah ruhle.
He wears hoodies -- take that, mark zuckerberg.
That is how they do that.
One day after missing the stress tests, citigroup is falling.
The quality of the revenue and loss forecast across the business -- for more than 100 countries means that citigroup is not allowed to raise the dividend over one penny per share or buy back stock.
A music streaming service has held early talks with investment banks -- and formal talks for spotify may begin next month.
Spotify has declined comment.
After 2 years of testing, it is here.
The waffle tocco.
A breakfast sandwich rolled up by taco bell today, a waffle shaped like a tocco stuffed with eggs in your choice of meat, bacon or sausage.
This is a move by taco bell to break into the breakfast business.
Locations will open at 7 a.m. to lower the early morning crowd.
What do you think?
I am not into that.
I think that they have done too far with the waffle tocco.
Would you feed that?
is is where you don't fit into that.
I am not eating a waffle tocco.
I am an advertiser's worst nightmare.
My kids will not be eating waffle toccoacos.
Microsoft ceo satya nadella is making his debut, he will make his debut in san francisco and introduce office for the ipad.
Joining us is our bloomberg west editor at large, cory johnson and the senior analyst at stanford bernstein.
He has a $47 price target on microsoft shares.
Cory, why don't we start with you.
You are out there and you will see office for the ipad in a few short minutes.
How important is this for someone like nadella and microsoft?
It is a symbolic thing for microsoft to embrace this platform.
There are more apple devices being sold the microsoft devices.
They want to be like lotus 1-2-3. they don't want to -- that to happen to them, they want to be across platforms.
Satya nadella brought oracle to the microsoft cloud.
This is something they did not expect microsoft to do.
He knows they have a different place than they did 10 or 12 years ago.
This is a way of reaching out to the consumer.
This is all about the enterprise and offer 365 in making this relevant to corporations that find themselves filled with ipads.
They want to do that with microsoft software.
Mark moore dollar is here in new york city, nodding his head.
Does this mean something to satya nadella?
Microsoft cares much about this move to cloud subscription, and what satya nadella has been the last couple of years working on, the move to the cloud.
I disagree a little bit -- i also think about the consumers and the $3.7 billion consumer office revenue and had we make sure this is protected and if they can move that, even a portion of those users can drive all of that revenue to the move to subscription.
Both sides of the story drive to corporate and make it more relevant, part of the move and protect where they can on the consumer side.
Here is one thing i am wondering about.
$3.7 billion in consumer revenue.
How valuable is that to microsoft?
What does this get versus the enterprise revenue?
Right now, the street gives it zero, no value whatsoever.
Why not get rid of that, why don't they become an enterprise business?
Forget about the xbox and all the questions with office and if it goes to the ipad.
They can do that but they cannot get rid of that.
They can get rid of the debacle that has been the surface.
This is revenue and there is no reason to throw it away for a good margin business.
What do della -- nadella will do is drive aggressively on the enterprise.
This is the enterprise story but where they can, they might as well keep that if it will generate profits.
In the end, don't throw away what is working if you can keep that going.
As cory said, he is absolutely right.
This will be an enterprise story company with them protecting where they can.
Cory, i want to talk to you.
Institutionally, what is the relationship between them and microsoft?
If this will be a boon to microsoft and the additional 365 revenue coming from the introduction today, 30% of the revenue from this project is going to go to apple, through the apple i store.
There is the point of enterprise versus consumers.
There has been a fundamental change, a really dramatic change in the way that decisions are made about corporate use of technology.
Because what we have seen because of the ipad, with the iphone people would find a way to use them at the company all the way to the ceo level.
But with the ipad they said, make that work on the network.
We will have that in the business right now and i will not wait for microsoft to come along the way.
And bring your own device.
Change in the way that this is purchased on a corporate level.
This is a fundamental change and it is very threatening to the guys who would go in, not just microsoft but the oracles of the world.
We can see that in the falling sales of those companies.
Right now what is happening its software is being -- devices are being introduced by the users and the corporate i.t. department, does not have the power that used to have within the corporation.
I would agree.
I think that the endgame related to office is subscription.
Rented by users and across all the mobile devices that the user has, being able to monetize.
Office is a product where over 50% of the office is pirated.
Even within corporate there is a sniff again portion that is ms.
They think this is per user, and this is per user per device.
I kristoff has a huge opportunity to monetize this on the consumer and corporate side, and anywhere they can they will drive that story and they will use office on the ipad as a key way to drive that.
Which market are they chasing, is this the united states or overseas in china, where more of the mislicensing is taking place?
Ipad is a developed country, not a developing country solution.
They are not as prevalent in china as they are in the u.s. and therefore microsoft is going to drive into that more.
But anything that microsoft can do to eat into the piracy in china and more emerging markets will be good.
Are enterprise workers going to go along with this?
Adobe is doing the same thing with their photoshop and the customers are resistant.
They don't want to pay $10 per month and $120 per year, they will go with something else.
If you are a microsoft office user or a pirated office solution, microsoft is trying to force you into user-based licensing, why not go for google docs?
In the corporate world it is not free, you have to pay a fee for it and there are things like opening excel spreadsheets, that don't work well in the google docs environment.
Think of the filing.
Corporate comes in and they have to buy office, from 250-400 $95 per user.
-- $250 to $495 per user.
If they come in and do the audit and they find that you are out of compliance, they will nail you to the wall.
They will charge you an enormous amount, in terms of fees and other things to be under compliance.
Microsoft comes along and say that for $12 per month, you can put this on up to five of that person's devices, and we will give you a single license so the software police will leave you alone and you will go from laying -- paying cash up front to having this -- and this protects the revenue stream and makes the more relevant, on more devices and it drives the whole story.
Microsoft is all about moving to the recurring revenue and the clout subscription, protecting and driving growth where they can.
Mark, thank you.
Cory johnson out in san francisco, waiting to see office for the ipad with his own eyes.
Backlash on kickstart her.
Turns out the early investors in oculus are not happy with the t-shirts that they got.
And big changes may be in charge -- and big changes may be on the way for college sports.
We will talk to the commissioner of the big east.
"market makers you are watching -- you are watching "market makers" on your mobile device and on television and on bloomberg.com.
Early backers of the oculus kickstart her campaigns are mad about the bloomberg facebook acquisition of the company.
Here to join us is a man who studies crowd funding at the new york school of business.
Thank you for joining us.
Before we get started, set the record straight.
Kickstart it was designed to fund nonprofit organizations and other charitable work, not small businesses.
This is a reward-based platform.
On this platform, the reason why people donate to these products, comes from the cloud running platform.
And so, it is constructed to think about why people donate on these platforms.
They donate because they are getting something out of them, pre-ordering a market product, or because they believe in the identity and the cause.
My counter is him.
What is the reaction from those who put money into oculus early on, and now see that facebook is reaping the demo -- the benefits.
This is buyer's remorse?
You have to look into why they buy these platforms, and who these people are.
It has disappointed them and now they are outraged.
The reason they are outraged because they did not see a big tech giant coming in and buying up this company.
They did not donate money for commercial reasons.
You are in the crowd funder -- whose fault is that?
It is their fault.
If you can see that oculus is trying to build a commercial product, ultimately, the guys in business to try to develop something.
You may not know, as a kickstart her donor, whether or not this will become -- kickstarter donor, you don't know if this will be a commercial success.
That is the whole focus, to make that and sell that.
There is a difference in expectations between those who work on these platforms versus those who donate, on crowd funding sites.
So they were had?
A lot of people are disappointed and outraged because -- you studied crowd sourcing.
What are some of the trends that you see out where and what is the -- out there and what is the impact of kickstarter on there?
It and indiegogo are between a rock and a hard place.
If you're an entrepreneur, this is a way to pump in money to kickstarter, maybe they will do something spectacular.
But if you are a donor, you are outraged because you did not give this funding and that is not why you put in this money.
Is and the job that -- the jobs act going to take care of this?
A are now waiting for comments from the public.
When this is past, what we will see is the credited investors -- and the investment.
Right now, only an investor with a certain amount of income can contribute to the crowd funding platforms, but as time passes you can see the definition is anyone who is making $100,000 per month can put in five percent of their income and people below can put in up to two percent.
You are looking at basically a tool of investors, expanding -- we will see platforms, kickstarter platforms where people can buy small equity states in oculus ventures?
When you put in $100 you will get a piece of the company.
And if this is taken out by facebook or the public -- or goes public, you can have something just like the venture capitalists who have bought in.
Because you studied this, how much of a game changer do you think it will be?
Right now this is about $30 billion.
Predictions project that this will come in to place and you are talking about a $300 million investment.
This is also for the investor -- the investor, and event -- and an investor like me, across this platform.
This was $30 million to potentially $350 million in a matter of a few months.
The people who donated to oculus on kickstarter knew that they would not get a return.
Real crowd funding -- they know that they might get a return and they would be that much more disappointed because there is the prospect of return, not guaranteed zero.
With these equities, they are aligned.
You can get part of this or you can get none of this.
What happened with kickstarter -- they did not have any of this for the cofounders.
This had to happen at some point.
Thank you so much.
The professor at the stern school of business.
He studies crowd funding and crowd sourcing, and now he knows how -- now we know how those people on kickstarter feel.
Next, we will have the commissioner of the big east conference.
They will be right here.
President obama is in rome today, continuing on his european tour.
He has started a press conference with the italian prime minister after meeting with italian officials and pope francis.
White house correspondent phil mattingly joins us.
Is he making any progress on the ukraine?
What you have seen from him today is what you have seen over the last few days.
He is with prime minister renzi and he is trying to reunite europe with the united states as they continue to confront this issue.
The big question going into this trip was europe and the major sanctions right now and the way that the europeans have lined up behind the united states and the president during this trip is something the administration is taking as good news.
What is going on behind the scenes?
John kerry is involved in this as well.
He is trying to make sure that any middle east peace process is not derailed.
You have seen this all hands on deck on the foreign policy side of things.
One thing that we were very interested in, the nsa allegations from edward snowden have resonated more in europe than anywhere else.
We have been asking senior officials about this and this is a point of contention during the behind the scenes talks.
The officials say this comes up but they feel that they have dealt with it, they deal with that in a way that is open from their perspective.
European officials have acknowledged that publicly, these are issues that still exist and they still want more answers from the united states.
This is a source of tension.
What about the u.s. discussions with russia.
Have there been any conversations scheduled to take place between the u.s. and russia?
We don't have any allegations -- any conversations directly from vladimir putin and president obama.
The state department has a fact channel open and secretary john kerry has a good relationship with his cohort, i guess you would call it, in russia, mr.
That has been unnerving over the last couple of days and everyone who has seen the troops massing from russian soldiers -- you're different areas of the ukraine on the border, they have also heard nothing from russian officials.
There is a silence going on right now and people are very worried about what the russians are planning, whether or not the forces inside the ukraine are next and until we get public knowledge -- the administration officials will be very concerned about what this may mean.
Where is the president going next and what is his next stop and what will his next message be?
We will see him hammering on the issues of unity behind the ukraine.
He had that visit with the pope this morning.
This is not only good for him internationally, this is good for him domestically -- the pope as a 65% approval rating, way above the president, they can use that with a political perspective and he aligns closely with the vatican when it comes to income equality.
We have seen it back home and in the united states.
We have heard of the administration officials working to try to push the agenda when the president comes back.
The ukraine and using the pope's visit to try to hit again on that message but he started with the decision.
Thank you, phil mattingly.
Our white house correspondent.
If you want to tune into that live is conference of this happening with president obama and the foreign minister mikael renzi, go to bloomberg.com.
The live press conference is taking place right now.
It is almost 11:30. i am going off to radio.
You have a lot coming up.
A busy half-hour.
Big changes in store for college sports.
The commissioner of the big east conference.
A big conversation there.
Can you pay college athletes or should they be able to unionize?
We will be right back on "market makers," at eleast erik will be.
This text has been automatically generated. It may not be 100% accurate.