Can Bezos Bring Optimism to the Washington Post?

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Sept. 3 (Bloomberg) –- Bloomberg’s Brad Stone discusses Jeff Bezos’ vision for the hallowed newspaper and his aims to experiment. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Live from.

Three in san francisco welcome to the late addition of where we covered the media companies that are reshaping our world.

Let's get straight to the rundown.

We are in a position to accelerate and is only good for windows phones, tablets, and pcs.

Shop that are those are the words of steve ballmer.

So says -- sources say nokia has started talking to banks and could file to go public before the end of the year.

Apple sent insights for a big event next tuesday.

There was a note that said that should brighten everyone's day.

Is it a clue that some brighter colors are on the way for the next iphone?

It was a surprise deal of the holiday weekend when microsoft announced a plan to buy the nokia handset business for $7.2 billion.

Microsoft has come to rely on nokia for it to mean partner.

That means microsoft will have full control of software and hardware.

The same model that apple has use with the iphone.

Microsoft is hoping that they can better weather the slump in pc shipments.

As for nokia, the question is whether this can help and its long fall from grace.

Nokia dominated the phone market in 2008 with 40% market share.

We have seen marketshare dwindle and the stock moves more than 80 -- lose more than 80% of its value.

He spoke with steve ballmer about the deal.

He will be leaving microsoft within the year.

Tom keene started by asking him how he expects it to gain mobile market share.

Take a listen.

This acquisition of the nokia mobile phone business is really all about accelerating our share position by accelerating and improving our agility and innovation, inc.

Able to a clear, concise communication with one brand into the market brand.

And being able to be very agile in our is the strategies intact asked to go to market.

I am excited about what we have accomplished in the 2.5 years we have built.

We are extremely glad to do this as a way to further accelerate our position with windows phones.

When you look at windows phones, by doing this transaction are you going to push away the others that have used the windows platform?

Are they going to say "forget about it?" nokia account for well over 80% of the windows phone volume today.

I think we are in a position to accelerate through this acquisition.

Certainly acceleration in windows phone is only good for windows tablet and pcs.

Our partners in the pc and tablet business that i have all talked to seem white enthusiastic about this acquisition -- quite enthusiastic about this acquisition.

You have seen so many struggles.

You have been a piÑata of the business.

With that said, does that bring to an end any debate about separating your consumer division off of your enterprise position?

We're focused on being a device and service company that focuses on the high-value activities for consumers and for businesses.

That is the strategy that we are on, that our board has endorsed.

It is a huge transformation.

We are glad to be acquiring the talented team at nokia.

We think this gives us extra muscle as we go down down that path.

We are aligned on our strategy.

We're moving forward.

. it is a big transformation.

That is what you need to do in the technology business to move forward.

We are certainly pleased that we have continuously moved forward, improved our position and profitability.

We serve over one billion people around the world.

We may close to $30 billion of profit.

We are proud.

That was microsoft ceo steve ballmer with tom keene.

Now to microsoft and nokia's competition.

Apple and samsung dominate the smartphone market.

About that product releases within the next week.

Samsung is expected to reveal a new and smart watch.

Apple sent out the official invitations.

The event was marked with colorful circles and noted "they should brighten everyone's day." we are joined now in the studio.

What is it going to be?

We are expecting a couple of iphones.

One will be an upgrade to the existing model with some enhanced features.

As well, which could be more significant, is a lower-priced iphone geared toward emerging markets.

Do we have any idea how much it would cost?

Not exactly.

Analysts are guessing from $300 or $400 or more.

Where they fall on the price point will say a lot about how aggressively they want to go after these lower markets.

It is critical timing.

We have been talking about the market share in china.

It looks like they are really struggling there.

Companies like shall meet our -- shoa mi are pushing down the prices.

Every iphone that apple releases is significant to the company.

It creates about half of their revenue.

This is a particularly important moment.

Apple has not released a big project since last october.

A lot of new entrants are coming into the market.

What about the colorful circles?

Is it going to be multicolored iphone?

I do not get too much chronology -- crypto knowledge in trying to figure it out.

It could mean more colors for the phone.

They are also releasing the iowa seven -- ios7. the colors are much brighter.

The e-mail on the calendar and the photos that people take with their own everyday, it is going to look radically different than before they made this upgrade.

Why cupertino rather than san francisco?

They jump about to where they want to have these events.

Last time they had one at this place where they were going to release the iphone 4s. that was a few years ago.

They have done it in san jose and san francisco.

They have put a lot of thought into why they pick one.

This time we will be tracking down to their headquarters.

You will be down there next week to see potentially two new iphones.

Thank you.

Adam's atari auto -- adam satariano.

Samsung is set to release its much hyped smart watch.

Jon erlichman is in new york where he will be covering the event for us live.

Put this into context for us.

How important is a given everything that is happening out there from apple to microsoft and nokia?

This is hugely significant for samsung.

Are there other smart watches?


Is there a company that has come out with enough devices that it already offers to make a smart watch strategy successful?

Samsung is the largest seller of smartphones on the planet.

Some would argue it has some apple.

Envy because apple has a way of buying -- talking people into buying multiple devices.

That nice experience at mrs.

Them altogether.

-- mixes them together.

This is a chance for them not only talk about the innovation story but to say we can take that experience with the smartphone to the next level if you use a device like this.

If you buy the smart watch, it could be great.

If you buy the phone it could be great.

If you buy both of them the experience gets better.

Maybe that is where the storyline will be going.

What is the market for the smart watch?

Not a lot of people wear them.

Not a lot of people wear watches at all anymore.

The lay up customers they will have are the tech enthusiast, early adopters and the fitness fans.

They have spent a lot of time making sure this is a product that will appeal to the same he will better using fitness apps.

I go back to the issue of experience.

If they can convince people to keep your phone in your pocket but is connected to your watch and you can see the phone calls, check twitter, if they can make that all work well seamlessly, they might have the edge on players like sony that has smart watches on the market but do not have the nutrition in the smartphone market.

What about the significance of this launch?

Microsoft buying nokia the handset business and looking to not be number three or four.

Microsoft sends the message once again that owning software and hardware today is important.

Microsoft is not missing the hardware component.

From samsung's perspective, they have been missing the software component.

They have pushed their own operating systems but heavily reliant on the android operating system.

There is a possibility that it will be part of the storyline with this launch even though it will be an android supported device.

Maybe it is an opportunity for samsung to push its own software.

Jon erlichman, thank you.

Of course we will have much more for us live tomorrow from the samsung event in new york.

Still ahead, we did it for -- deeper into microsoft.

Could this be a big sign into who will be the next ceo?

? this is "bloomberg west"." i want to get back to our top story.

Microsoft has agreed to by nokia's handset unit for seven $2 billion.

What's with the future of microsoft look like?

Will it impact the search for a new ceo?

Earlier we spoke to cory johnson about the deal.

I started by asking what if they will be a happy union.

One of the things people do not talk about enough when it comes to this acquisition is through cultural fit.

It is hard to make the case that these two organizations other than their financial need for one another have a great cultural fit.

This is a strongly and proudly finished engineer driven organization.

We have a classically pacific northwest and trying to meld the two across is going to be really hard.

I think one of the but big challenges is trying to make that work.

Leaving aside the troubles microsoft has had historically.

They are going to rely on nokia to drive most of the process.

I do not see anything that reassures me that they will be able to make that itfit be anymore more.

Are they going to be stronger together or weaker?

Their argument is that if they get some again in the market share they will get $40 in profit per phone incident a $10 profit per phone.

That means they need the gains in market share.

Their argument to get there is by offering really cheap phones in developing markets so that people's first commuting experience is in the place where the growth is happening and on their phone.

What do you make of them by nokia and not blackberry?

It is interesting.

They do see this as a consumer opportunity, not an enterprise opportunity.

Got very would be a quick and cheap way for them to get into the enterprise.

-- blackberry would be a quick and cheap way for them to get into the enterprise.

Maybe blackberry is not a great opportunity for them on the consumer or enterprise side.

This is a company, with one notable exception, has really struggled.

Hardware is a very difficult business.

They have difficulty getting this right.

They are hoping the nokia guys will help them get it right.

They have not had the same type of problems lately.

Nokia had been big-time time over the past decade.

I am dying to hear your thoughts about who should lead microsoft after steve ballmer leads.

Internal candidates, outside candidates being discussed.

Sheryl sandberg.

What you think of the names?

Who do you think is right to lead the company?

Like i hate them all.

I do not see any as realistic.

One will become the candidate.

I do not think any of them , in part because it is the correcting influence of having been at microsoft for so long anyone who had any capacity to make material change would have felt stifled and completely suffered in this organization.

Definitionally, you do not want anyone who has been there any length of time.

They can be in a structure that suffocate innovation and leaves it in a back room to die with middle managers.

I said in the past i wish i would see reed hastings come there.

I do not think it will ever happen.

There are a lot of interesting people who could be strong ceos and make change and probably end up doing some significant asset sales.

None of them are people who have spent any time inside the organization.

They have to be people with strong operational experience.

What do you think of sheryl sandberg?

I think she is a great marquee candidate.

I think she would be fantastic from the standpoint of what it represents in terms of the industry and what can be done with a company like microsoft.

I do not think she brings the dealmaking experience that i wish the new candidate would have.

They are going in there and saying i am fully prepared to break this up into three pieces.

Let's go out there and really test what it would get as to on a sale.

I do not see her as that person.

I really do not.

Dallas paul kedrosky -- that was paul kedrosky.

Shedding some light on the plan to turn around the "washington post" or an attendant to do so.

That is next on "bloomberg west"." ? amazon is rolling out a new program called kindle matchbook so they can buy physical books of what they arty own.

This will go back to 1995. kindle editions will cost anywhere from two dollars and $.99 to nothing at all.

More than 10,000 books will be available -- $2.99 to nothing at all.

More than 10,000 books will be available.

Jeff bezos has been in the news for his purchasing of the "washington post." he says he plans to apply the same business philosophy.

In an interview, he says we have three big ideas at amazon that we have stuck with for 18 years and they are the reason we are successful.

Put the customer first, in the event, and be patient.

-- with us now is brad stone who has covered amazon for more than a decade.

He has interviewed jeff bezos numerous times and is about to come out with a book on amazon.

What did you think of his comments, wanting to bring back a golden era?

Let's give him this.

In an age of increasing distraction, they sow's has willed and empire -- bezos has notes and empire based on longform.

If anyone can pull it off it is jeff bezos.

What makes him an expert?

He has never had to deal in media before.

That is right.

He has with the kindle and amazon's music offerings.

The thing that struck me about that interview is he preaches patience.

Jeff bezos is strategically patience.

He is not operationally patient.

If there is a good idea at amazon and you are told to execute it you are basically late.

They're going to have their hands full making him help he happy.

Is a to return to the golden era?

The thing people do not understand about a print newsroom is the culture of decline.

Everyone is so pessimistic tummy tuck.

It imbues every lin dunn -- of everything.

You feel like you're playing a game of layoff musical chairs.

I think the big thing that will change as there is going to be optimism and experimentation a long runway.

He threw out a few ideas and he was very realistic about his own ability to do this.

He said i am not a magician.

What do you think you will start experimenting with?

He's very self-effacing.

One is the pay wall i would expect to see go.

It is not reader friendly.

The post does not need to make the budget that every quarter every more.

The second one is hiring.

With his backing, they can go out and this is an arms race, compete for the best people and best loggers -- bloggers.

He's going to be visiting the post in a few days.

What are we expecting?

Everyone there, if you talk to the reporters, they are scared.

I do not think they should be.

There are a lot of opportunities.

Hopefully he will give them -- they will give him a good grilling and ask him what he has in mind.

I do not think he was straightforward in the interview and now he is in a roomful of journalists.


Brad stone.

Thank you.

Cbs is back on time warner cable just in time for football season.

We have the details of the agreement that ended a month- long feud next on "bloomberg west"." ?

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


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