Yahoo Hires Katie Couric: Bloomberg West (11/25)

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Nov. 25 (Bloomberg) -- Full episode of "Bloomberg West." Guests include Pivotal Research's Brian Wieser, Walt Disney Co.'s Ronnie Screwvala, Leander Kahney, author of "Jony Ive" and "Inside Steve's Brain," and PogoPlug co-founder Andrea Chavez. (Source: Bloomberg)

Like norwegian and royal caribbean.

He certainly has his work cut out for him.

We will be back on the markets in 30 minutes.

"bloomberg west" is up next.

? ? live from pier 3 in san francisco, welcome to "bloomberg west," where we cover the global technology and media companies that are reshaping our world.

I am emily chang, our focus is on the future of business.

Cap the office string of recent high-profile media hires, linking a deal with haiti couric, but what exactly does the company have planned for her?

Apple has acquired some motion sensing technology companies to our microsoft connect.

And as winter creeps in, the cruise industry is setting up for its busy season.

Find out how carnival cruise is using instagram to attract a younger audience.

To the lead, yahoo!

Has hired one of the biggest names in television news as the internet company dives deeper into content.

Katie couric, best known as the former anchor of "the today show," joining yahoo!

As a global anchor, leading correspondents around the world, but she will continue to host or daytime talk show.

In a post, she writes -- katie couric starts at yahoo!

Next year and her hiring starts at the stock hit a 52-week high.

What could it mean for their turnaround plans?

For more we are joined by our senior correspondent in los angeles.

How big a deal is this?

It is important to watch the transition that we have seen under the ceo, marissa mayer.

When she came on board everyone said -- what is she going to do to put some more power behind this brand and make yahoo!

More relevant again?

We have seen her attempt to breathe new life into the company, we know that they acquired tumbler, you highlighted the fact that she announces through a tumbler post.

I do not think that the katie couric signing is any different than that in the sense that here is someone from traditional media who says -- i am going to go to yahoo!, an exciting place to be.

It also speaks to the business side in terms of advertising revenue.

Here is a company that consistently, quarter by quarter, as generated in the neighborhood of millions in revenue, but it is not seeing the kind of growth that facebook and twitter has seen.

Obviously the video world is one where you can get a lot of advertising money and the hope is if you put some katie couric on the homepage it will bring in more ad dollars.


Has been doing original shows with celebrities, but how are these shows performing?

Who's watching?

An important point.


Has a big office here in los angeles.

The former head of media left, they are looking for a new head of media.

The person overseeing their original strategy has moved on.

We have heard about frustrations with the players, like jack black, who did original shows for them in part because this is a big company and making content is an important thing, but other people control the marketing dollars and the space on the homepage, so it is about getting that strategy lined up in the right way to ensure that you can bring in those additional advertising dollars.

All right, john, thank you.

So, what is yahoo!

Really trying to do here?

For more on how this media strategy fits their business, i want to bring in brian, from the pivotal research group, who has a whole reading on their shares.

I want to ask you the same question i asked john.

How big a deal is this?

Not a particularly big deal in terms of moving the needle from a revenue profit perspective by itself, but it is clearly an indication of intention, if nothing else, but as john pointed out, lacking in actual ahead part of the business that this would fold into makes you wonder where are they going and how will that policy change over time?

How many people actually watch?

How many people do watch their original content right now?

Hard to know.

They would obviously produce data on anything they sell, but as a practical matter it will be a very small audience.

The reality when it comes to online video is that across all online video, including youtube content, half of all online video, it equates to maybe four percent of total television viewing across all online video, including people watching you streaming on

It is really, really fragmented once you get past new to -- youtube.

Small audiences.

How do you think advertisers are going to feel about this versus facebook, twitter, google?

The first step is advertisers want to buy something that is content adjacent.

They want to be associated with the brand, with katie couric.

Depending on the direction that they go, those advertisers have certain places to spend their money and this would be one of those laces.

You would not the competing with facebook money for that goal.

It is not the same pool.

It is a small pool of money chasing that ad inventory, it is not a massive opportunity, necessarily.


Has hired other high- profile journalists, like from quote new york -- from "the new york times." do you know if this content is being read?

I have not seen any data on this.

Here's the thing, almost none of it can overwhelm the dominating trend hurting yahoo!

And all publishers on the web, advertisers increasingly expressing indifference with respect to content and the adjacency because they are buying audiences.

It is about people, not pages.

To the extent that that is happening, you will see legacy premium publishers like yahoo!

Continue to not grow, if not decline, on an organic basis regardless of what they do in this area.

You have been pretty hard on marissa mayer in terms of what she will deliver in terms of specific product, but the stock is still going up.

Do you continue to feel that she has not proven herself?

It is all alley bob latta.

No serious institutional investors will believe -- it is all alibaba.

No serious institutional investors will believe otherwise.

A 20% stake in alley bob is worth far more -- alibaba is worth far more than non-ali baba stock.

If you could give her a great so far, how was she doing?

It has been over a year and the stock is certainly doing well.

She has seen some gutsy moves but we are waiting for an impact on the bottom line.

The thing is that it is always about relative to the alternatives.

With the alternative levinsohn, it is hard to say.

They have done some things that have created some value, to be clear, and i am a hard judge.

It is a bad situation that she came into.

You cannot blame her for the erosion of advertiser interesting context.

That is a much bigger secular trend.

I think that they're hiring strategy has been a wise one.

Here is the thing, they matched my expectations, so who am i to give negative grades on that?

That is not incredibly positive.

As always, thank you for your brutal honesty here on "bloomberg west." always great to have you.

Questions are being raised about the winner of the salesforce dream force.

Was the whole thing rigged?

You can watch streaming on your tablet or phone that

? welcome back.

I am emily chang.

This years winners of the salesforce dream force hack upon are coming under fire, the winner of the prize is an app called upshot, but a number of other participants are questioning the results, saying it was first demonstrated weeks ago at a salesforce meeting, well outside the hack upon -- hack a fun -- hackathon's timeframe.

We have reached out to salesforce about these allegations and have so far not heard back.

Microsoft said they sold more than one million xbox one consoles in less than 24 hours.

Their first updated console in eight years went on sale exactly one week after their arrival, the playstation four, hit shelves.

It also had more than one million in the first 24 hours of its released.

What do these record sales mean for the gaming industry?

For more on that, break it down for us, how well did it do?

There is a really lively debate about that.

One argument is that they launched in 13 countries, so they should have done more.

I think, really, what the issue comes down to for microsoft is the severe supply constraint.

They made a note of noting that they pretty much sold out in every location.

Why would there be supply constraints?

They have been preparing for this for years, right?

You would think that they would have enough supply.

I am not sure why.

As we saw from the breakdown analysis there is no -- nothing special about how they are laying out the machine.

I think the issue may be the connect -- connect -- kinect itself.

The playstation for launched in just two countries, i assume more countries are coming for sony.

They will be launching in another 30 countries on friday.

They have basically said that they are feeling pretty good about their supply issues and they have not had many issues in terms of product defects or anything like that as well.

So, they seem to be doing pretty well and they will be launching again in the weeks after that in another 10 countries.

They seem to be well supplied.

What does this mean for the future of the industry when sales are shrinking?

It shows that the console market is not dead, quite alive and well.

When the wiiu sales were so weak for so long, but nintendo even has argued that they will be coming for a comeback once they get their major franchises out there.

What does it mean for the wider gaming industry?

So many different dynamics going on there.

Newly leadership, where is all of this going off of the tumble we have seen?

Because there is so much -- the fragmentation is what causes us all to wring our hands, but what it shows you is that this market is huge and growing and we are starting to see that now.

People are not committing themselves to one particular platform.

They are looking for different types of games with more interesting play and they are willing to look anywhere.

What about the sales of games themselves?

Doing pretty well.

If you look at the analysts forecast this year, it is expected to be about 118 billion dollars next year, 120 $6 billion after that.

It is a pretty large market that is growing.

Cliff edwards, thank you so much for bringing us that update.

Still ahead, we speak to the man responsible for launching the first cable tv network in india.

Next, you can also watch that streaming on your tablet, your phone, and on

? ? this is the early edition of "bloomberg west." streaming on your phone, your tablet, and

I am emily chang.

Bono has a new favorite app, reverb.

At a sotheby's event he told bloomberg why he loves the news reading app.

Take a listen.

There is this thing just online called reverb and it is a remarkable way to collect the news.

It gets to know who you are, no questionnaires, just by the choices you make over a week or two.

You wake up and you have news from twitter and other sources.

Everything on the subjects you are interested in, it gets to know who you are.

Just last week "bloomberg west," we spoke with their vice president of marketing.

You can catch that interview on

Our next guest is an entrepreneur who made his mark by launching the first cable tv network in india.

The founder of you tv soccer communications, a media entertainment conglomerate in india.

He is now the managing director of disney you tv and how they have grown under their influence.

It has been a fantastic partnership and final acquisition for the last two years, it has been incredible working for the walt disney company.

In 2006 they acquired a kids channel that we had originated in india, which was a beginning for a very strong relationship.

Over the next four or five years we played a big role in the growth of utv, watching it from the outside, and in 2012 it was appropriate that the company that they supported became part of the group and the walt disney company for its strategy, to give it its breath and scope.

Why is india such an important market for a company like disney?

You can go with the numbers, first, talking about the fact that 1/7 of the humanity is in india, but if you look at the media market anywhere else in the world it is one of the most deregulated or unregulated markets in the world.

Look at the brick countries and the opportunities emerging there, it comes out pretty much on top right merrily because it is a risk for entertainment.

It is in india consumption story we are playing overall, it is not about television and movies alone, it is consumer products, the entire india consumption story and for that i think that one/seven of humanity was an important part of the story.

Disney and marvel are two of the brands that help to make it up, but there are a lot of brands that perhaps people in north america know less about.

Tell us about those brands.

Overall when you get into a country like india, is as much about the flavor as it is the global brands.

The topmost agenda for us is the walt disney company and the brand overall.

That has moved forward a lot in the last few years.

Marvel is definitely one of them and this has been a strong part of the cultural growth of the industry in india.

That is a strong brand for the company with some brands, like our number one channel, if you look at the demographics for the youngest country in the world and you look at them overall in the space, and you look at some of the brands that we have been allowed to bring to the forefront in what i would call the 15 to 35 space, you are pretty much catering to the story across all demographics.

You mentioned movies, you have made your fair share of bali wood hits.

Tell us about the rise of the bali would genrew --oo -- b ollywood genre.

There is tremendous amount of work to be done in that context.

For us, really, the focus has been differentiated context for the last 10 years we have been in the business and it is now an incredible opportunity.

We look at franchises, sequels, how we will build strong brands with content that can go across all media.

That is really the trend that the walt disney company looks at when they look at the brand coming out.

I think that india will be one of the few places in the world where original production of movies happen under the disney brand.

You will be moving on, what is next for you?

In a nutshell, half of me is looking to contribute to the rule of social space in india, this is the time that someone can look at the social challenges there.

70% still live in toronto economy.

That ecosystem is not going to change, but we can be one of the top economies in the world.

On the for-profit stage, all i can say is that all of my learning over the last 15 years and media will go forth into one of two sectors that i will call the high-impact sectors.

That is all i want to share with you right now.

That was jon erlichman with the managing director of disney utv india.

It is now time for "on the markets," a look at what is moving in the markets every hour, with olivia sterns in new york.

The nasdaq is trading just one point away from 4000. earlier today i broke out above 4000 for the first time since september of 2000. the dow jones is up by 24 points , the s&p is up again today less than one point after closing above 1800 for the first time ever last friday.

Sears, eddie lampert is denying the claim that he is looking to sell their tv unit.

As you know, their sales have surged this year on the hopes that he would be able to turn around the struggling department store in part by selling off assets.

We are also watching shares of alcoa today, moving growth from their high-margin downstream business with uses for aluminum contracts traded on the london exchange, which is typically how they are traded.

Down 14% this year, another day of modest gains in the market, ready for record highs in the market, more "bloomberg west," coming up after the break.

? ? this is the early edition of "numbered west." i am emily chang.

You can also catch us at six p.m. eastern.

Headlines, president obama is headed to san francisco today to speak about an issue of importance to the tech immunity, immigration reform, at his speech in chinatown.

Fund raising, two events in the area, one of them at the home of mark denny off.

A hunger strike as she sits in jail, the strike is a protest after the ukrainian government decided to forgo a trade deal with the european union and force closer ties with russia and set -- instead.

The storm system that dumped snow on parts of the south and southwest is headed eastward just in time for the busy thanksgiving travel system, expected to combine with another system to bring rain and gusting wind to the northeast with heavy snow in the interior area.

Thousands are without power after the storm pounded parts of texas, oklahoma, and other states.

All day today we are going inside carnival, the world's biggest cruise ship operator after a string of disasters and incidents in the last few years.

They are looking to bring new passengers on board.

Carol massar sat down for an exclusive interview with the company's new ceo, he plans to use technology, particularly social media, to help to right the ship, correct?

Absolutely, and he used it big time, they did big-time international advertising campaigns and overall are doing a lot to bring younger passengers on board, inviting instagram users and families to vacation on board.

With younger passengers, talking about going to places like haiti, where they could help to build a house on the island.

The right be opportunities given today's purpose oriented -- there might be opportunities to do different things there with today's purpose oriented generation.

It is tough to go after things like millennial's. the millennial's are a different group, but so are the folks who are already retired and have never cruised, the reality is we have only penetrated like three percent of the population and there is so much opportunity across all the segments.

We are focused on accessing that.

Also wanting to appeal to younger and potential passengers, carnival uses facebook, instagram, and twitter to launch an ad campaign, the largest in five years, asking passengers to send in videos from cruises they have already taken.

The result was 30,000 responses.

Those videos were used in their national television campaign.

All of those passengers are out there as part of the campaign.

Suite, thank you.

Apple has just agreed to acquire an israeli company, prime sense.

They developed tracking technology to allow devices to convert data into depth of color.

They relied on this technology into their connect game console.

I want to bring in adam, who covers apple.

Tell me more about this company, prime sense.

They are best known for developing the motion detecting chip in the connect -- kinect.

That is where they are most well known.

This gesture-based technology.

What is my iphone going to be able to do because of this?

That cannot do now?

We will have to wait and see that.

Apple has a history of buying companies and then incorporating the future technology.

In the most recent iphone 5 you can unlock your phone by using your fingerprint, but it could be television or something we are not thinking of.

There is a lot of speculation out there but a lot of it is just that.

Seems like it could be pretty useful.

That is some of the speculation out there.

Apple has been buying up chip companies.

What does this mean for samsung, for example?

Apple has done a lot of that, you are right, and they are designing their own chips that they can customize to make the iphone work in a more efficient way.

Samsung is still a big partner of theirs and they make a lot of the chips that apple designs, they are kind of the manufacturer of it.

This is a move towards distancing themselves from samsung down the line?

It is still such a bizarre relationship.

They are huge rivals and yet samsung makes many of their components.

It is absolutely a complicated relationship.

I do not know how much this company has to do with that, it is more customized to 3-d imaging.

Obviously they see it as a technology that differentiates them from other companies.

As far as that relationship, it is a funny one.

We will have to see how this technology acquisition plays out in future products.

Thank you.

Coming up, who is the most important person at apple?

It may be the design chief.

We will go inside his groundbreaking career with the author of the book, next.

? this is the early edition of "bloomberg west." you can also catch us at our later time, 6 p.m. eastern.

Tim cook may have taken over apple from steve jobs, but is he even the most important person at the company?

A new book suggests that their design to real, jony ive, may discern that -- deserve that distinction.

He most recently overhauled their mobile operating system.

But little is known about how he really works behind their secretive wall.

We bring you the author of "jony ive, genius behind apple's greatest products here go apple did not participate, johnny did not -- jony ive did not talk to you, how did you write this book?

It was difficult.

I spoke to old teachers, colleagues, friends, knocking on a lot of doors.

He has actually gone back and shut down access to a lot of his old records.

It was not easy, but i got a couple of lucky breaks.

You have covered apple for many years, but it is actually a painful process?

They are very secretive.

More secretive than the nsa.

People are not allowed to tell things to their spouse is, their kids.

There are stories of cubicles with people sitting at desks next to each other and there is a curtain between them.

The veil of secrecy is such a part of the culture that people do not want to talk.

Did anything surprise you?

I was surprised at how central jony ive was to the success of the last 12 years.

Did steve jobs get too much credit?

No, no, he was a genius, look at what he has achieved, but there was no back story.

The story has not been told.

What surprised me was how central jony ive and his design team was to those products.

Does jony ive deserve more credit?

I think yes, i think he deserves to has his place in the spotlight.

Here is a question, does jony ive feel that he deserves more credit?

He does.

He said so.

Right, yes.

I think he was a little stunned, personally, that he did not get the credit for these products that have really changed the world.

Now that steve jobs is gone, what is the role of jony ive today?

It is like steve jobs before he died.

He is now in charge of software, hardware, the overall design lead for the company.

This is the position that steve jobs held before.

For years he concentrated on developing new products.

Does he have the same charisma that steve jobs had?

He does, funny enough, but you never really see it.

They do not want you to get a chance.

He does not go to the product announcements.

He does not like doing media.

Individually he is very charismatic and personable, passionate about design.

It is strange to hear him talk, the passion really comes through.

You wrote a lot about his secret design lab.

Tell us about what you learned, who works there, what are the look rules of engagement?

It is super secret, even some of apple's own executives are not allowed in there.

That used to upset some of those top executives.

How do you get in?

They would not open the door.

And he is gone?

He is gone.

Was jony ive part of that?

Those are the rumors i have heard.

I could not that, it was tantalizing.

I think that some of the other departed executives departed because of differences with jony ive.

I think that his rise through the executive ranks has been a fascinating story and unfortunately i did not quite get the reporting on that.

What does jony ive have up his sleeve?

What is next?

Some amazing things.

People have been saying that for years.

They have, but there are clues.

They have been hiring designers in textiles and fabrics, hiring engineers with expertise in biometric electronics.

I do not think that they are making a watch.

I think they are making wearable clothing, technology enhanced clothing.

Interesting, like what?

The $6 million question.

Cool running suit?

Something to model for your health, possibly.

What else?

Apple tv has been rumored for years, but the timing is not right and they are very patient.

They could wait for years until they have the right market strategy.

How do tim cook and jony ive get along?

A great.

Tim cook can be a peacemaker.

Steve jobs loved to get a fight going.

Tim cook is much more of a consensus, quieter person in the atmosphere.

Well, it will be interesting to see what jony ive comes up with next.

Thank you so much for joining us today.

We will be right back with more on "bloomberg west," after this break.

? is the early edition of "bloomberg west." a record opening brockett -- box office open for the sequel to "the hunger games." setting the record for a november opening.

Analysts say the film to dominate over the next three weeks and gross as much as $400 million over time.

It faces little competition until "the hobbit" sequel opens on december 13. is it possible to search the internet without broadcasting your name, the patient, or favorite website?

One devices harnessing technology developed by the navy to make that possible.

They have just released safe cloud, which makes you anonymous online by bouncing your traffic on an indirect route through the internet.

It depends on complex software developed by the u.s. naval institute.

The cofounder joins us now in the software.

So, how exactly does this work?

It is very simple, you plug it into your router and attach our.

What it does is it just bounces your address all over the internet.

It is very hard to track.

One way to think of it is if you are being followed at night and you know someone is behind you, what would you do?

Continue to your destination or go back home?

You would probably take a lot of twists, turns, and pitstops to throw off who is following you.

How much does it cost?

$50. the technology behind it was used by the navy?

It was developed by the naval research lab.

Fly would every company not be using this technology?

Ironically, it was developed because the navy needed a very secure and safe, free way of communicating.

That is why they developed it.

I think the reason everybody is not using it now is because there has never been a device like this.

We have tried to make military grade technology available to everybody.

Without a device like this, it is a bit hard to set up.

It involves installing software on all of your computers.

Taking this indirect route, could it slow down your service?

It could've little bit, but it is easy to turn on and off, so you can kind of decide -- when you do not want people to be watching you, essentially?


I had a terrible day, i will be owing to vent about my employer, maybe you want to turn this on, but if you have little kids like i do, i worry a lot about safety and any time they use an ipad or a computer they are telling the whole world -- hey, this is where i live.

It is as if they went around handing their address to everyone, if they did that you would probably want to shut it down.

Is it an essay proof?

It has never been breached and there are no backdoors.

How would you know?

[laughter] reputedly it has never been breached.

What is the target guardians here?

Regular people?


It is all about families, unlimited cloud storage is offered to families for five dollars per month.

We are always trying to think of ways to make it that are, safer.

People are putting their most precious memories in the cloud.

We wanted to be the best possible.

While we were thinking about that this just seemed like a natural addition.

What about it being used for bad things, like criminals, hackers being used to protect themselves?

There are always some bad apples in the bushel, all technology poses that risk, but by and marge the network is used for very legitimate purposes, used by journalists, dissidents, law enforcement.

All right, interesting stuff.

$50? $50. all right, plug yourself.

Thank you so much for joining us today.

We will have more of "bloomberg west," after this quick break.

? welcome back.

On-demand transportation service uber has seen explosive user growth, what are they doing to get new drivers on the road?

We will ask them at 3 p.m. pacific, 6 p.m. eastern.

We are on the markets, olivia sterns has more.

Over the course of your show the nasdaq has opt up over 4000 again for the second time today.

The first time since september of 2000. we are seeing modest gains extending into new record territory after the s&p closed above record territory for the first time ever on friday.

Two individual stocks we want to highlight for you, the first is jetblue, cut to underperform from market due to rich valuation.

We are also watching shares of burger king and goldman sachs, covered with a buy rating, sustaining earnings growth with 18% to 20% per year.

We are also watching walmart, making a see suite change, announcing this morning that doug macmillan will replace [indiscernible] as ceo when he retires next year.

For more on that, i want to bring in our analyst.

We knew that doug macmillan was a leading candidate.

Was he the right pick?


He has led growth internationally.

If you look at the track record it was 24% walmart sales when he joined, but now it is close to 30% of sales.

You can see him driving the business forward.

Obviously walmart had a great run under mike to.

But mcmillan comes in when things are very different.

There are a lot of headwinds with walmart cutting it -- cutting its forecast this month for the second time this year, sales sliding for three straight quarters, what will be his biggest challenge?

Diverting traffic to u.s. stores, but that is nothing new that they are facing.

They have been facing traffic declines for a long time.

The key will be -- can you accelerate online sales growth and the online format?

That is where the key turnaround lies for walmart in the u.s.. which is interesting, the other leading candidate for the job, his focus was u.s. stores.

Do you think the fact that we have had these lackluster same- store sales is the reason they picked?

Like i do not know, this is a boardroom discussion, but i'm sure his development was there as he was involved in the u.s. stores, said he has probably already told mike duke what he thinks they should be doing for the u.s. stores, offering different perspectives, seeing things internationally well- versed in merchandising for a very long time now.

Obviously another big challenge will be e-commerce.

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


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