>> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west" where we cover all the global technology and media companies that are reshaping our world. i'm emily chang. our focus is on innovation, technology, and the future of business. let's get straight to the rundown. microsoft has said it wants to name a new ceo by the end of the year. one of its top candidates is now out of the writing. having just being promoted. hopes for the internet tv service to bring to market it

this year. it is close to selling the business before it begins. verizon is the buyer. call it dumb the oscars of silicon valley. some the biggest names among them gathered to honor achievement in science. first, to the lead. nearly four months since microsoft ceo steve ballmer announced he would be retiring. thatloomberg has reported they want somebody replaced by the end of year, the chads checks are dwindling by the day. stevemm promoted mollenkopf to the top job after we reported he was among the top candidates. about -- of a buzz there are renewed concerns about his lack up technology experience. another candidate is on the

shortlist list along with internal candidates. what is going on with the search? paul kedrosky is a ventures.artner at sk he will be with us. what is going on with microsoft search? >> it is kind of odd. a strange cross of reality tv and monty python. listhole idea of a short goes out the window when your talk about microsoft. everybody is gone will stop we have a short list. the obvious problem here is anybody with any sort of understanding of technology knows what they are stepping into. they are walking to labor -- badly broken organization with a stellar marketplace that is very mature. add products that are going to end up on the chopping block. that is not an exciting opportunity. when you step out and look at

and the problem is, it is not easy for them to make those kind of decisions. what stays and what goes? what vision do they bring quest mark and a possible position. -- bring? -- it is impossible position. >> is it the board or people do not want the job? >> i think people do not want the job and a candidate problem. the classic candidate problem when you are out there as a headhunting firm and opportunity, you have a hard time getting the quality of candidates that the board would like to take the position serum and, in. somebodyhey find interesting, that the turnaround and go to their own company as that i have an offer from mac of -- microsoft. that the leverage it into a better position in their company. these are tailor-made opportunities for everybody but microsoft.

--what is most likely here internal, external, anyone? >> no, it has to be natella. they have concerns. they want to bring in flesh throw up -- fresh blood. you have an organization that is floundering. it in the somebody at in the home that is not steve ballmer. a fresh perspective. some were longevity. , hehat mind, the concern is is not run an organization. very few people have. only people would would not come to organization. >> you think natella is the guy for the job? >> i do. i think you would be a strong candidate. the board has its eyes set on an outside candidate. after taking him seriously, babbitt look outside and being disappointed that none of the

outside candidates want to come and. do you think that would name somebody before the end of the year? what is the likelihood? power dided paddy carry lines and abandoned it. and there you go. you cannot get british bookies. they will not to do it by the end of the year. , is going tol extend into early next year. i wish they would not. i wish it will make a decision. i do not see it happening. >> we are watching and preview every twist and turn up by the day. paul kedrosky, we will be back. some are calling it the oscars of silicon valley. milner,acey, yuri answer they bring -- sergey

brin. ♪

>> i am emily chang. hollywood stars and a red carpet entrance, not in hollywood, but right here in silicon valley last night. awards for research and innovation and science and kevin spacey by and conan o'brien. $3 million, money donated by mark czar great -- mark .uckerberg and sergey brin i was on the red carpet at the event. for physics.ig win only an hour long. a remarkable thing. i hope hollywood will learn a

big thing. maybe all we need is science. >> i preferred this. the average sat score is higher. this would be a fantastic evening. >> you make fun of the. can you make fun of scientists? >> and never. no. they are nerds. of course, you can. amazing these people who are wishing them luck all of the time. --t is the latest on arielle aereo? >> we woill win. >> ketone about the robot stuff -- can you tell me about the robot stuff? >> i will leave that up to andy. >> it has a chance to be transformative over time. >> is good to see the geeks and

if you nerds. >> the fundamentals of science and space continuum and time cyclical. are there black holes and particles will start your word about late night television? >> citywide. >> -- >> thank you. for plentyut there of time, conan o'brien. and jonrusty is with us erlichman -- the dross key is with us and jon erlichman -- with us and jon erlichman. how do you rate this on your cool meter? >> you know, it is a get together for folks who wish 2015 was happening right now are traveling to vancouver. i get it, it hasn't been a long- standing amount -- among the

great -- geeks. i am glad they are supporting. i am so was skeptical. it will continue on a regular basis. their fascination cap and flows with economic times. you put up a brand-new building. thisw much do you think have to do with google just started, the company that is supposed to cure aging? do you think those are the big life questions these guys want to answer? >> pick me. take me. absolutely. this is the longer going obsession and silicon valley. surgically make it. if you cannot find something or you could discover a strange theory to get you to last forever. you give other people money so that they can find ways.

this is the wonderful thing about utopian vision of technology. toy believe it is possible find cures for the a-list problems like they won't exist. s the ceo of 23 and me said agent as one of things she is worried about. i want to say stuff about what yuri milner said. he had the best and facebook and twitter. i asked him what is the hottest company he has not invested in. >> you look at countries like snap chat. a very interesting way to counter some of the problems of the web which stores everything. >> you think they have staying power? >> it is an interesting discovery.

>> i was a little surprised he mentioned snapchat, given that our facebook a big rival. what are your thoughts on it? the hot talking point. a lot of people aren't here is that can turn down $3 billion from facebook. it is an la-based company. when you can get some of this to tech people, that interested about each other since businesses. does not happen every day. you're a sun valley conference and in the summer. and like how it will get media or technology, they do not get to get together. they're lucky when hollywood edges and the snap chat story. the one thing i would add is potentially the richest guy there, i do not know for sure teams have a knapsack on where the millionaires were wearing the pink when outfits.

outfits.n >> sergey brin was wearing a backpack. will not talk about -- we have not talked about snapchat very much. there is interest in information that is not permanent. do you think it is here to stay or a fad? do some variation it is here to stay. i like the analogy. i like the way it sounded. solves it secures communication in a sense. it is a way of having photo sharing week to make sure the communication is pure by making it disappears. trying to problem is solve is one of security of communication by making the richards disappear. that is legitimate problem. whether with snap chat or

absorbed and other things. to pretend it is not a problem for people take photos that will later embarrass them is naïve. is a legitimate problem. like so many things, doesn't it absorbed and everybody else like instagram is trying to take on facebook? i do not know the answer. -- i also talked to kevin spacey. take a listen to what he had to say about whether or not there will be a third season. there's been uncertainty. >> please tell me you are doing a third season. >> i have no idea. >> netflix said you are. he did not make it seem like it was a done deal. you recently spoke with the head of netflix's content and division. he indicated it was on the path of happening. >> i think netflix would like for the show to continue for a long time.

earlier this week, we highlighted that netflix and coco house of cards -- "house of of golden a fair nods globes. they will ride a wonderful marketing story if they can keep it going over the next few years. i'm sure they would have no problem. cents regular dollars and that can factor in. to catcho had a chance up with rupert murdoch. i asked him about aereo. >> aereo? we will win. >> we will win. just like that. rupert murdoch cannot be surprised by his level of confidence. [laughter] i just love it -- we should have a show where we asked rupert murdoch questions on ongoing basis. what is your favorite color?

where do like to go for holiday? remarkable fascinating answers to important questions that amazes me. that is why you so perfect for twitter when he was doing it for a while a wild. inscrutable man. warsn, you cover the cable . traditional broadcasting, where do steve is heading with -- where do you see this heading with aereo? headline thatr they will win. a real serious story. , it raisessuccessful questions for all of the cable companies that are paying this high amounts of money to the content creators to carry their shows, we have reported here that you can see those pay-tv operators create our partner with aereo or crate their own service. there's a lot to left.

but it is a series story. -- >> it is a serious story. we way here from a -- we will hear from aereo ceo. twitter reverses a policy change after just one day. what about management? that is coming up on "bloomberg west." ♪

>> welcome back. i am emily chang. twitter is scrapping its plan to add just the block function after\. it had been changed for just one day before the they decided to reinstate the old policy. it's turned the block feature into a mute function. people blocked could read or retweet. sarah.ined by i will start with you. smart move or not smart to backtrack? was clearly getting a lot of heat from people who said this would cause them to be further harassed either stalkers or people who hated them in other ways. they could still see their profile pictures. they can still interact.

>> i use twitter all of the time that i definitely block people. what do you think? this is a big public company now . one day reversing. is it a good thing they are so open to this or a bad thing that they change your mind so quickly? >> i wanted to say it is a good thing. what is now a riddle. a public company can change its mind so quickly after really noisy feedback. it seems like it should be a good thing but it is not really. it speaks to the process. how in the world do you make a decision like this and not anticipate the kind of feedback you get? whenever somebody block somebody, people are just being punks about it and the blocking people and say yeah, i block you. there are examples that became public.

people talking about their experience with abuse and harassment. you can still see some of the tweets on public websites. psychologically and fractional, -- impractical, it had implications. a version of the function and not expect people to, crawling down your tweets. >> the argument it is public anyway, why they did in the first place is very different isn't it from how facebook has dealt with things like they made changes? users are very used to seeing a different version of a new speed our change in a feature and being told this is how it is. you will forget it would -- was different. they know best. it also has his own issues. you have to know your users.

a lot of products that have failed with users like facebook home and they are not testing enough. twitter is sort of a knee-jerk reaction could be a risk in the future. your users know if you complain enough, something will happen. >> who has the right -- twitter or facebook? >> twitter. less paternalistic. people have much of about the management approach. , thank you fory joining us. sarah frier, as well. stir after dropping a hole at noon surprise album exclusively on itunes. we look at the strategy -- beyoncé created a stir after dropping a whole new surprise album exclusively on itunes. -- we look at the strategy. that is next. ♪

>> you are watching "bloomberg west" where we focus on technology and the future of business. i am emily chang. google is considering designing it on server chip using technology from arm holdings. a people familiar said google could better manage the interaction between hardware and software. a big impact on intel should google follow through. is intel's fifth largest client. charter communications is per parent and offer letter to acquire time warner cable. charter will offer less than $135 a share and delivered the

letter as soon as next week. keeping andes are -- other companies are keeping an eye and may make arrival -- rival bids. there are new numbers on how popular it is. streaming a poll, viewers a bench watch -- binge watch. they say watching multiple episodes of make the show more enjoyable. intel is close to a deal to launch on q. bloomberg an agreement could be announced as soon as next week. the journal erlichman is back. this is a business that intel has spent a lot of time on. why so? >> that is what is so amazing that you would invest so many

time and energy. we covered what apple has up its sleeve with the future of television and here is intel that has something that people have said is really cool. it has a lot to do with the ceo transition. paul is moving on. this project really started to build steam. intel house and build a lot of technology to showcase what it's chips are able to do and what they can power. , hehis project got a bigger had to ask questions about where it sits on the priority list when you think about the marketing campaign required for something like this. you have outlets and intel does not do that. or contentbscribers to deals from the beginning of stop go out and find a partner and from partner, it turned into --

>> why is verizon willing to pay up for this? >> a few reasons. when you think about what verizon has done to compete with cable companies, have a video. verizon bios is not available in every market. it is costly to make it and all of the new markets. you have to build infrastructure. talking about cable consolidation, the companies come together and can save on costs. the thing about the technology is it is not required big. verizon will be able to enter a bunch of new markets with this technology without having to do a lot of infrastructure. a huge reason why. >> thank you. the who's who list of silicon valley heavyweights hit the red carpet for their version of the oscars. the breakthrough price. and i murdoch was there asked him about the court battle over aereo.

take a listen. >> aereo? we will be just fine. we will win. >> we will find. aereo's ceo joined us earlier. i asked him to comment on murdoch. >> it is going to work itself out. we have been winning. time will tell. but why are you so confident it will work for a your favorite? >> basic, simple reasons. the law is on our side. it has been shown or four times now. ishin the consumer sentiment on our side. we have tremendous support. it is common sense. change inneed this soay expect -- it is important to have competition and alternatives. court and so,eme there is talk it could go to the supreme court, here's the

broadcast petition, do you think that will affect your chances? >> well, yes it we filed in which we urged the court to consider the case as well mainly aom our perspective, it is war of contrition. would've been. they are essentially trying to get us in every possible jurisdiction. -- we have been winning. we want to get on and build our company. that is the status at the moment. if, worset's >> canton area -- worse case scenario, it is found you are not a legal, would you pay? >> i have no idea. >> let's talk about how the business is going. you recently said aereo needs

six thousand or 7000 subscribers in any region. do you need a thousand paying customers to be profitable? >> that's the question everybody wants to ask. at 5000, 6000ven subscribers. we are now in 11 markets. we will hopefully be in 15 and the next few weeks. so far, the growth has been fantastic. we are seminars in every city we go to. be happier about the progress the business has made. company, people, resources -- tremendous year it has been for us. >> how many paying subscribers or do you have? >> we have 2200. >> is he wrong? >> i cannot comment. >> and you have more? it is a simple yes or no.

>> is a simple bet to say yet. >> we got something. you know beyoncé was releasing a new album today? neither did anybody else. ♪

what i am emily chang. beyoncé fans got a big surprise today without any promotion, she released an album is mostly on itunes. the self-titled record is the top seller. a beyoncéd mentioned have spiked up by more than 5000 tweets after the outing came out. jon erlichman has more on the surprise out of and a new hollywood. a surprise to me and i am a big fan. >> you are the fan and i cannot

get "single ladies out of my head today. >> hey, hey. i do not adjust to do that. >> beyoncé's new apple made headlines. how far did she really push the new boundaries. an electronic music company. most artists releasing music on itunes these days. how innovative is a beyoncé being here? >> she is being really innovative the more i think about it. you cannot buy any track right now. you have to buy the full album. it will not be available until next week. she has bungled and videos for every single track. $15.99, it is next. -- almost like an event. it is like you are buying a

ticket to experience a beyoncé in a way on items that you cannot do anywhere else. way, did hethis give her the ability to say you have to buy the whole thing? in a society where we are a one track mind. if you're going to buy one at all. >> she is going against the grain. way to songs.ven songs are being remixed by djs. she is saying stop all of that, i am beyoncé. i am the star. i am going to determine how you consume me. this is how it is going to work. she shows her power as a diva. there are not many more who can command that kind of price point. punke something like daft where there was a lot of hype and prerelease music a leading

to the release, by the time the full apple got relief, we felt like you heard it before. this is all about the music. released,time it got we felt like we had heard it before. my friend said is all about the music, not to the hype. tells about the idea of better connecting with fans. lot of, you said a people like to get their hands on some earlier. the idea of uploading the sound of cloud or ability to put your own spin on an artist's music. this a new world of music. bande is connecting to the is her art and these are her tracks. nobody is going to do anything to them as far as she can tell. she is in control. by breaking this on instagram and having access to twitter and facebook and all the other

channels, she is interacting with her fans. her fans are listening to this at the same time as the critics which is unlike getting a prerelease aversion to the critics and getting feedback. >> is this hard to keep secret? that is what i wonder. how do you fly around the world and put this together and nobody knows? like hers proven husband, they are very, very good at keeping things secret and out of the public and controlling all of the tapes and versions. there are so many leaks and holes for all of the different channels. this is fairly miraculous and that she has kept it under wraps. apple has been working on this with her since the super bowl. it is not anybody decided on a whim. >> amazing. you forgiveness insight.

the beyoncé story and the beyoncé fan. >> i cannot wait to download the full thing when i get home. two hour tv series. when you are a ceo, he is building out launching rockets. they cost tens of thousands of dollars and need faa approval. >> i am dirk. keteer is myoc passion. love seeing big ruckus in the air with lots of noise. racew up during the space and having some fascination. what drives it as a hobby is a bigger and faster and higher. it'd thousand pounds that would apply -- 8000 pounds that would fly. they are very much toys.

density,ocused on high high-capacity wi-fi. some the toughest problems in the industry. rocketry is a passion. it lets my inner engineer comes out. the difficult part is the down part. .igure out you have to think about electronics. it is similar to running a business. you have to know how your supply chain works. you have to have all of the pieces functioning. here, how youy will put a project in the air. to me, rocketry is a family affair. we support a one way or another. it's great to see the kids put together the first rocket and

launch it. it is worth all of the effort. >> that was dirk gates on his hobby of rocketry. of 23a has halted sales me saying that not provide evidence the test are accurate. how is the ceo responded? do not miss at that next. you can catch of streaming on your tablet and phone and bloomberg.com. ♪

>> a welcome back. me is facing a crackdown. the mva has ordered them to stop marketing the kit -- the fda has ordered them to stop marketing the kit. they have not proved enough evidence. >> is incredibly important to support scientist who are taking a risk in making significant breakthroughs. i really want to encourage people to take the risk and think about how can you change the world. >> you have a personal passion about a genetics. it's a big life science question on answered that you would like to see soft? -- see soft -- solved?

>> everything. how we age. we do not know the basics. it is fascinating. there are some in on answered questions. -- $3te a large prize million. why such a big number? >> it needs to be a huge number because we want to draw the attention and make people realize they can have a significant prize by taking risk and being successful. if you look at $3 million compared to what it can be a player makes, it is small. we want stop this significant abut and the grand scheme, nba players are making more. >> the nobel prize has been criticized for stoking the egos. how do you respond how do you make sure it does not happen? whoe want to find people are making impactful discovers right away. not a lifetime award. people who took a risk and did

something significant. it'll be somebody young. somebody who had an idea and took a risk and made a different. i want people are making a difference. >> any of the nominees in particular that stand out that you are rooting for? >> i know too much to answer that. a few genetics people that i read four. -- root for. >> we are talking about big renovation and big science when fda has halted part of your big innovation. what is the latest? >> we are working aggressively with the fda. i believe we are committed there should be a direct path. there should be some kind of way where would that have this kind of big science so everybody can get accents -- access to their genome and a massive community where we are solving the world's

problems. >> and you feel it is unfair they are trying to make an example of you? >> we fell behind in our communication. exec located area. we recognize at the fda. -- it is a complicated area. we are working and we are committed. we are going to do everything we can to show the fda we are committed to the process. >> when do you think it will be back on the market and the likelihood? >> we are still selling now. we are hoping that we can work with yesterday to get it very -- work would be at the a to get a very soon. i would love to give you a date. e ceo and cofounder. time for the bwest byte where we focus on one number that tells a lot. a friday byte.

he best ki. >> 23. conan o'brien has 23 months on his contract for the show he does for tbs. i didn't know if he will consider a career in science after the contract ends. he seemed to be having a good time. >> and you know what? i think he is good at his daytime job. personven funnier in than on television. we have a little bit more of it. let's take a listen to his r iff. >> we got here. we taped the show. i do not know what is happening. >> yes, i do. >> the cause is a good one. we are putting the focus on where it should be. the focus should be me. we are putting it on science.

>> he also said it when he was growing up, the jocks had the upper hand and it is now the nerds. he will be on the wrong side of history. >> a patent on his hair? >> i do not know. town, youe is in might we'll see what the folks at google can help you with. that hair -- >> maybe he can play basketball with you. he is tall. he has tall here. a tall, funny guy. definitely great to see him in person. conan up the and with to have a point guard. good i not sure how would be. i would give a good try. thank you for joining us. have a wonderful weekend. we will see you on monday. ♪

. .

"bottom line -- from bloomberg world headquarters in new york, this is "bottom line." tonight the battle lines are tron in washington as the senate works towards a vote on the budget deal. we will heal from the majority leader harry reid on the budget and more. and we will have the results from in exclusive -- an exclusive bloomberg: what americans think about bitcoin. to our viewers here in united states and those of you who are joining us from around the world, welcome. we have full coverage of the stocks and the stories that are making headlines tonight. su keenan has details