♪ >> live from pier for three in san francisco, welcome to the early edition of "bloomberg west." our focus is innovation, technology, and the future of business. let's get straight to the rundown. google, hoping that connected cars will hit the fast lane, starting new partnerships with gm, audi, and other carmakers, trying to make the connected car or reality. t-mobile, spending billions on airways to better carry it signal and steal from the

competition after at&t are the offered the credits to more users. the company behind the world's for bitcoin, atm launching in taiwan. how does a bitcoin atm even work? first, the lead, google is joining forces with carmakers to start the open automotive alliance, to customize software for use as an information entertainment system. a number of different carmakers have signed up. gm, audi. the chipmaker is nvidia. at the be a big scene consumer electronics show this year, this week. the managing director of free low advisors is with us today. joining us by skype, john leonard, professor of mechanical engineering at m.i.t. and an

expert on connected cars. how, exactly, would this work? the alliance between google and the carmakers? they are basically trying to get android on the dashboard? >> it has been said to me that the dashboard is the fourth screen. if you have your laptop, your , thereion, your computer is this thing where you could view things in your car that you would normally view at your laptop or your desk. >> your favorite apps, the music you like to listen to, all in one place? like your phone on your dashboard? >> one of the key things is the data coming from the car, so potential for things like map information and the state of the car. there is the whole question of how this interfaces with the straka driving and perhaps self driving cars one day. it is clear that there are a lot

of opportunities here to connect data sources from the car into the mobile infrastructure. >> speaking during this conversation, unfortunately i do not drive a tesla, so the mapping system is behind. trying to connect my phone to my dashboard. why are apps so behind? is this really going to help? this has been historical, they design the cars five years ahead of the market. the technology is always lacking. especially with what comes down to smartphones and ipads. car manufacturers have always been behind the times with expensive navigation systems that were not as good as something that you could essentially get on your smart phone, so there has always been this pressure for car manufacturers to do this, but they really want to control the relationship with the driver, not something that google is that interested in sharing.

talkviously i want to about apple, google's biggest rival. last year they announced in june that the ios mobile operating system would be compatible with cars. different manufacturers have been working to make this a reality. we are starting to see connected cars really hitting the road. can you compare with -- what apple has done with what google is trying to do? is one more ahead than the other? >> i do not have a strong sense that one is ahead of the other. one thing i would watch closely, ford has a system that creates easy interface through android. i think that the potential for the alliance is this idea of broad dissemination across different cars, sort of an exciting vision. but it is hard to say what the relative status is. to anotherings me point. you mentioned that ford has its

own set of apps, so to chevrolet as well, part of gm. gm is now a partner with google. apple is doing things with automakers and partnering with google. is this going to be a disintegrated experience? a disparate experience? or can they find this -- find a way to make this a solid and oneied experience, mark? >> of the battles that has been going on for a number of years that will continue, i do not think this will change, is who controlling the user experience and relationship with the driver. maple, primarily, is in the as this. -- matt business. -- map business. they want to drive that model. which is a very disruptive business model from what some of the other people in their might

want to do. maps,y spaces, especially is coming in to disrupt the business model. there is a certain amount of risk for these incumbents on a business model basis. >> there you are looking at their driverless car, which has yet to hit the road. what about samsung? they are announcing this week the samsung connected home, one at to connect your devices. your devices in your home. samsung has relied on android and google. where does this leave samsung and all of this? to decrease their reliance on android, can they get in the cars? >> a great question. one of the objectives here, i do not know how specifically i can answer, but there is this notion about how long you keep a car versus how long you keep the

phone. when your phone becomes obsolete, you can plug it right in. scenario is open competition, where players like samsung could, by having the best phone, be in cars and be connected. >> one last question. we talked for a long time about how long it takes to connect the car to the road for the average consumer. mark, how far out is this, really? how long before average people have a car that works with their phone, their life, essentially? >> that is the thing. things are coming closer. carmakers, years ago, they kind of cracked on their demand to control the center console and started bringing in people like google and others, who have better experience. i think that will be the thing

that accelerates. you have got to get the hardware in the car, which might last for 13 years, with software that evolves every six months. that is the challenge. i think we are a couple of years out. it will be evolving. but i think it will clearly get there in the next three years. >> we say that this may or may not be the year, so we may definitely be right. thank you both for joining us today on "bloomberg west." gether company trying to into cars is pandora. pandora, the streaming revenue -- streaming radio company, selling advertisements that only people in their cars can hear. this creates a new revenue stream for pandora. shares are up the highest percentage in four months on this news. i want to bring in andy, a bloomberg news reporter who covers pandora, in on this

story. why were they not doing this already? >> they had one advertising platform for all devices. you would basically log into your account and you would be able to hear the same advertisement at a computer or a smart phone, that they had on you. with so many cars able to be built-in with pandora, they have a much broader base, 4 million people who use pandora in their car on a monthly basis. that is the reason they can now take the big audience and monetize it, taking it out to advertisers who are looking for this valuable demographic. if you are selling gasoline, if you are selling movie tickets, if you are selling cars or car insurance, this is a valuable demographic for you. >> does this give pandora an edge over traditional radio? >> absolutely. traditional media -- original

radio has one message that they send over a demographic area. think about new york, the radio station sends an advertisement that is heard by 4 million people or 5 million people, but so much of that is received by people who are not necessarily interested. in this case, pandora can say that we have a listener who lives in this zip code, is male and driving a car. we know three valuable pieces of information about him and as an advertiser you now have much more resonance, which is extremely valuable. are we talkingey about? how big is it? >> it is huge. this has been a top priority for pandora. what they want to do is go after that $15 billion per year that advertisers spend on local radio. to get into that market, they have to be in the car. according to pandora, over half of all radio listening happens

in the car, which makes perfect sense. a format that has not been eaten away by the internet, yet. built intondora is so many cars, nine out of 10 of vehicles in the united states come built-in with pandora. there is a high likelihood that if you are buying a car this year, pandora is built-in. giving them a huge opportunity to go after that $18 million. >> we will be watching. andy, thank you. coming up, our experts, will step chat need a lawyer? they do not need a lawyer, but maybe a lobbyist? will those snap chat problems disappear? ♪

back to "bloomberg

west." snap chat has hired a lobbying firm for the first time. the firm read by -- run by .eather podesta this comes after they faced a security breach where the user names and phone numbers of 4.6 million members were posted online. t-mobile is striking back, striking a deal with verizon to swap a lot of money for a lot of catch-up. $2.4 billion in cash. is of their biggest problems their network capacity, they are making a lot of strong moves to get subscribers to come over. this in part after at&t has been trying to beat t-mobile at its own game, last week offering customers $450 in credit to jump over from t-mobile. i want to bring in our editor at large, cory johnson. not surprisingly, the t-mobile ceo has been tweeting furiously about all of this.

calling out the ceo of at&t directly. why would verizon do something to help t-mobile? >> i have been covering telecom and technology for along time and i find spectrum deals hard to understand, which is why i am lucky that christina is helping me now. helping t-mobile right now? >> they are helping themselves. this is spectrum that they were not using anyway and they are trying to unload it. they have not found a buyer to pay for this spectrum, this was buyer and seller coming together on price at the end of the day. cashber, to $.4 billion in is going to verizon, but t- mobile will be giving verizon some very valuable spectrum that they want to build out their lte network. this is crucial. from the standpoint of t-mobile, they are getting that low band spectrum that goes far and can

asetrate office walls and -- well. >> the 700 megahertz spectrum, not to geek out, it lets them do the things that they have tried to do with data. for t-mobileble because why? >> exactly. credibleing to be a competitor to verizon wireless and at&t, which has been tough as number three. trying to be a more credible competitor in an environment where people are streaming videos for hours at a time, gobbling up bandwidth. number two, it could make it more attractive down the line for the likes of sprint, which has a lot of money and backing from softbank. if they can make themselves attractive, the two of them combined -- although the technologies are different, it .ill be difficult

>> it is in fact concentrated spectrum. what is interesting is yes, it makes a deal more attractive, but if they can have more , they need a better business. is like a nice byproduct of this, if they decide to go down that road, but as emily pointed out, t-mobile has been very aggressive, calling themselves the uncarrier toproviding services customers without long-term contracts that give consumers so upset. at the end of the day they are billing themselves differently from the current options. thend then there was profile from business week couple of weeks ago. >> make sure you include me in that. >> i will. >> i never forget you. on.k you for coming >> thank you. john leger will be right here later this week.

looking forward to it very much. up, the world's first bitcoin atm. yes, there is such a thing. ♪

welcome back to "bloomberg west." i am emily chang. we are talking about the first global bitcoin atm that is expanding into hong kong and taiwan. the first one was in vancouver back in october. i want to bring in our editor in new york today who is in on this. i do not understand. can you print this? i thought it was a virtual currency. >> one of the problems of bitcoin is the availability. was it available to?

joining me by skied from los angeles -- las vegas, i am trying not to be a knee-jerk skeptic, so ignore how my knee jerks, talk about this for bitcoin. the think it increases accessibility of the currency. our goal as a company is to make bitcoin truly accessible to the masses. that is what this machine does. the easiest way for people to buy and sell bitcoin for cash. >> in terms of cash, is this because of the -- i don't know, volatility of the price of bitcoin? is exchanging it for cash a moment of cashing in on a bet because the volatility is so extreme? that is one of the most difficult things about this being an excepted currency, the value changes so rapidly. >> indeed. we do protect against that. , you are not0 bill

really speculating on what you are putting in. it is just the final price you are buying. we took that into a lot of consideration when we developed the software for the machine, which integrates with online exchanges. what we do is we sell the coins to operators all around the globe. we have had huge interest. we also make sure the software protects the operators and takes away the risk when it comes to the selling and buying a bitcoins for customers. >> how much bitcoin does your company or you have in your reserves to manage this process of, essentially, for couple of minutes, you are lending or and owning the risk? >> again, what we are doing, we are operators. these guys look in their exchange account.

they are not even holding bitcoin or speculating on the price. they are owning their exchange account. we are connected. this is a pretty exciting patent pending technology we have developed. >> how many will be rolled out? >> we have already received wires for well over 50 machines. we will be fully global by the end of march. >> 50 is a lot really fast. >> the demand has been absolutely incredible. launched in vancouver on october 29, we have had over one a 100 inquiries around the globe. call after this i have a from tel aviv and after that, jerusalem. and then after that, south america, mexico. it is unbelievable how global

this company will be very quickly. >> interesting. thank you very much. past the hour?s time for "on the markets." julie hyman, what's up? crisis is the first time we have seen a trio of declines in the market on the first session of the year since 2005. it is a little bit unusual. the pullback being sparked after the worst an estimated economic data coming in worse than estimated, pushing the major averages down. that said, we are not down by much. watching the solar industry today. goldman sachs, talking about solar city being upgraded to a by, apparently because of the exposure to the rooftop industry, installing panels on people's rooftops. solar was downgraded at goldman, analysts saying that they are

not looking at fundamentals, particularly prospects for expansion being megawatts, which is what they expressed concern about. we will be back on the markets in 30 minutes. more "bloomberg west," next. ♪

early edition of "bloomberg west." you can also catch us at our later time. now, for your top headlines. the coldest air in nearly two decades is heated -- hitting the eastern half of the country. a hard freeze warning extends as far south as florida, the weather has also caused the travel might mayor. jet lou just announced that they are suspending operations out of boston and new york to catch up after all of these delays. angela merkel has been told to rest after fracturing her ankle in a skiing accident.

she has canceled a number of appointments and will be doing most of her work from home over the coming weeks. waitingeme court is back into the gay marriage debate, putting gay marriages in utah on hold. the hold is temporary as they appeal the lower court ruling that the ban on gay marriage violates the constitution. oh, one more thing, go nine or is. the 49ers, beating green bay in green bay, where temperatures were five degrees at kickoff. windchill was 10 degrees below zero, while a lack of ticket sales threaten the television blackout in local markets, but luckily the game wound up selling out. stadiums need to compete without home viewing experiences, which are always much warmer. savvy.ome more tech

the 49ers may have the right idea. let's take a sneak peak at the new stadium here in silicon valley. >> 69,000 fans. >> i get crazy excited about it. >> 170 luxury suites. >> $1.3 billion. >> we are talking about a world class stadium. >> 49ers are upping their game, getting ready to move to what is being billed as the most tech savvy stadium in the country. free wi-fi? check. game day application? check. fantasy full ball updates? check. >> this is our outdoor hd video board. players on the field will look up and see who is chasing them, no doubt. >> the 49ers may have lost their last super bowl, but their new home has already won the bid to host the 2016 super bowl.

>> this is the chance from the bay area to show the we are not just the tech center, we are a sports and media entertainment center. >> he should know. >> small bands of people can band together and fundamentally change the world. >> most nfl stadiums cannot compete with the high-definition experience you now get watching football at home. the new 49ers stadium is in santa clara, 49 miles south of san francisco, deep in silicon valley. meaning they have to woo the smartphone set. a special game day out, with features like instant replay, even concessions, right in your pocket. >> can we deliver food, beverage, and merchandise to every one of the 7000 people in the stadium? we are working on it. >> imagine a cashless, ticketless experience where you do not even have to bring your wallet.

>> there are dozens of software systems. point-of-sale, ticketing, fan inventory. >> sometimes you cannot get a photo or your instagram, or in some cases not even make a phone call because the lines are tied up or the bandwidth is not there. to a new wi-fi network, fans will be able to update statuses, photos, and tweet with ease. no one is more pumped than the players. >> i cannot wait. i have dreamed about this stadium. >> i think i will make the drive for that. in other football news, prices for super bowl commercials, just announcing a whopping $4 million for 30 seconds of airtime. cory is in new york. alex sherman is also there. first of all, i just have to say that beyoncé, if this was entertainment last year, this is bruno mars, not quite the same thing.

>> it could be between those, honestly. [laughter] >> $4 million? really? that is a lot of money for 30 seconds. >> you have this massive disbursement of lauds, little sites like twitter, and the small voices that are pushing a much bigger presence in the media, but you still have these big tent full of vents getting bigger, like the super bowl, the oscars, and these really big events that are the really only way to reach these mass-market at these prices. >> how our advertisers feeling about this? >> a big question every year. there are a lot of studies to go on -- is it worth it to spend $4 million on a 42nd super bowl? -- 42nd advertisement at the super bowl -- 40 seconds long

advertisement at the super bowl? many people think that they do not watch ads any other time during the year. tv ads are an event for the super bowl, therefore a lot of marketers and brands want to get in on this, they know that there will be those on their commercial that will not happen at any other point during the year. be nearuper bowl will us this year. i want to talk about about the playoff games. one games still not sold out, the patriots colts game in boston. we averted a blackout this last weekend. talked about the blackout rule for the last couple of weeks. is this threat real? >> for a playoff game, patriots fans will go to that game regardless. remember alice, years ago?

bad call, by the way. the raiders should have one. in any case, they will certainly show up. decliningules are of importance, we have seen fewer and fewer blackouts. thenteresting choice that nfl has made in terms of developing the local success of the team. one of the teams that has been blackout the most in the last couple of years are the oakland raiders. it allows the nfl to sell more expensive packages to their viewers, to the serious big fans. >> tying into something that emily talked about in the 49ers package, the games themselves, they have to bring in the fans that watch at home because they watch tennessee football. stadiums, they are looking at how to bring in these people that want to sit on the couch and view multiple games because they follow these different players? how do we bring them into the stadium and get their revenue but also cater.

>> the nfl is finding different ways to expand their medium. here they are, doing what we are talking about, having the biggest of tentpole events tom of the super bowl, creating multiple channels to grow out the wallet of their fans. >> let's talk more about stadiums trying to create this amazing experience, to make it worth it to go to the game. we spoke to jerry rice himself. hear what he had to say about the new warty niners stadium. >> i would give my right arm, my right leg to play in that stadium today. i think technology is everything . instagram, twitter, stuff like that, where you can communicate fans, you can just have a good time. i think that kind of action is good. >> i think it would be difficult to play without your right leg,

but if anyone could do it? the greatest player of all time. >> i think he needs that to catch the ball, you know. but when jeremy was with us, you might have been out that they, he was on in part through intel doing something around fantasy football, they were doing a computational test for what is required on the network. you ever met jerry rice? i know you are a big 49ers fan. he has these freakish, giant hands. i will tweak the picture again. i am taller than him and his hands were twice the size of mine. >> greatest player of all time. hence. >> ago niners. >> go niners, indeed. jeff bezos orang and new year with a helicopter ride and a hospital bed. more on that, coming up. ♪

>> welcome back. jeff bezos, ceo of amazon, was airlifted by the ecuadorian navy by helicopter over new year's. he was on a cruise over the galapagos islands and had some sort of health emergency where he needed surgery and was rushed back to the united states. turns out the culprit was kidney stones. our senior writer and author of "the everything store," brad is here, resident amazon expert. i have to ask, are we sure it was really kidney stones? >> there is no reason to believe it was not. should still say that technology companies do not have a great record of transparency when it comes to the health issues of their ceos, but from all we know from the reports, that is what it was. he went back to the united states and did not require surgery, actually. other than that, we do not have many grisly details. >> so, he is ok.

what is his condition right now? >> he released a statement saying that he was fine and resting comfortably. the quote was galapagos, five stars, kidney stones zero stars. >> your book is a perfect example of why jeff bezos was so critical to this company. i do not know who the number two at amazon is. >> an interesting discussion to have, regardless of these health issues. amazon kind of hides the bench a little bit. the big name is a former executive at alliedsignal, who made those fulfillment centers work at amazon. retail business in north america. clearly the number two guy, the guy to step up, if anyone could fill his shoes. >> what about these other guys? >> running the cloud, he was in the shadow of jeff bezos for many years.

running the retail business internationally, coming from apple, there was a lot. the bench is deep, a lot of those guys have been at amazon for many years. they know how he operates and how the company should run. >> something like this, you think about steve jobs. i sort of knew a lot of the higher-ups at apple. tim cook, johnny ives. why do we know so much about the bench at apple than we do at amazon? >> amazon has been strategic in terms of hiding a lot of their talent. maybe from other companies? you know, they are very strategic and quiet and how they communicate with the press. more recently, and the jaffe has been running that annual cloud business, the conference allows vegas. he has more of a public profile. amazon does not want to share a lot of details about their operation, which is why we do not really know.

something happened to jeff bezos, would amazon be in trouble? >> they would go to the same evolution that apple has. wall street would treat the new ceo differently. expect something different in terms of profits. some of the magic would dissipate, but jeff is going to turn 50 years old in a couple of weeks. it is a conversation that we will be happening -- we will be having one day, but nothing soon. >> working on drones, we assume. we will be right back after this quick rate. ♪ -- quick break. ♪

>> welcome back. i am emily chang. if you made a new year's resolution, it was probably something along the lines of -- be better, better at work, more productive, more organized. apparently there are a lot of apps for that, but there is one that stands out from all the

rest. we want to bring back cory johnson, from new york. have had major headaches trying to fit everything into one place in our calendar. will this fix things? >> maybe, we should talk off the air about getting schedules together, but it is an interesting challenge, this idea of being for you need to be, but -- letting the right people know where you need to be. these people make a product called the mind calendar. max, i guess i am curious about -- we all know that this is an the majoriously all -- google has their answer, their calendar for android, apple has their own thing. what is the big problem that is not met when this is recognized as a problem? >> it is the whole reason why people need personal assistance, right? a calendar is just a static record of what you have going on, but you need help getting through your busy day.

it is about telling you where you need to go into you will be meeting with and the information needed to be successful. >> what is intriguing about your product is not just that it takes a different crack at organizing schedules, but it uses new technology to do so. what kinds of technologies are you using and incorporating into the calendar? >> we are merging your smartphone with your calendar. learning for your home and work is, where traffic and time -- where the traffic is. bit,cking up just a little this is a wild, trippy idea. talk to me about that. >> we look at where you currently are at, where you want to go based on your calendar, we

on historicalased traffic, how long it will take to get there. as you get closer and closer to leaving you will be getting real-time traffic reports that tell you when to leave. if the traffic it's really bad, we will let you know. leave a little bit early. >> also interesting to me, how work has changed. how has the worklife of people change? demanding and complex? >> there are no real boundaries and barriers between work and life anymore. you can go to your kids music performance during the day, work until midnight, 1:00 a.m.. everything is kind of mixed together, which is why your calendar is now a mixture of your work and home life. the tools that you and use need to reflect that. >> thank you very much. more "bloomberg west," right after this break. ♪

>> coming up on the late edition of "bloomberg west," want to buy wine as you are drinking it? we have an nap for that, too. for that, too. time for "on the markets." julie hyman is with us. >> we came back from earlier declines to some extent, the kleins relatively small for the session, the dow jones down now just 13 points after a third- down day for the major averages. first time that has happened since two thousand five. in terms of individual movers,

let's take a look. men's well -- men's wearhouse, on the list once again. the takeover is continuing. this time there is a hostile bid for smaller rival, they took a smaller -- slightly higher number, intending to nominate two independent directors to the board. shares falling by the most in three months after the montgomery cut from mutual to buy, nine dollars per share on wendy's. we are also watching blackberry, discovering the smartphone maker suing the american idol host, ryan seacrest, for patent infringement. the announcement comes just days after they ended their collaboration with alicia keys. can the company afford to possibly alienate celebrities? for more on their plans, i am joined by hugo miller. hugo, we will get to the seacrest situation in a moment.

there was another announcement that black area made today. they have hired a former htc executive to run their business. what is the goal therefore the device business at this point, and for this personnel change? hired a former executive at sony ericsson and htc. do not know if we should point out that both of those companies have fallen on hard times compared to where they were five years ago, but he has been hired to potentially oversee the device business. the question is -- are they still in the device game? they signed a large deal with fox, last month. essentially what he is going to be doing is managing that change over. foxconn is going to start not just reducing, but increasingly doing the design and marketing of these phones. the role may not be a permanent role, but he is there to act as a liaison to oversee the device strategy, even if, odd as it sounds, more and more of the

device production and oversight is moving over. >> speaking of odd as it sounds, switching gears, ryan seacrest actually has a company that blackberry is suing, saying that he stole the design for what, one of their cases? >> yes, they say that imitation is the sincerest form of flattery? black area clearly thinks that this is a case of imitation, but they are not flattered at all. they are ticked off and have sued his company. not have a -- i do phone with me, but if you can imagine, it is a plastic racket on the bottom with a miniature keyboard along the bottom. i think the main beef is not just that it is a keyboard, but that it has the frets on it that are very similar to the keyboard you have on a blackberry. they cases without merit, blackberry says that this nameading on their good

and good design. i'll be asleep will be for the lawyers to decide. even if they said that they were still people that love their iphone and needed something with the keyboard to handle their messages, with so many people on wall street, still you see they have both. >> hugo miller, thank you so miller will be talking to the ceo of blackberry. interviewing you that tomorrow. we will be back on the markets in 30 minutes. "money moves" is next. >> welcome to "money moves," where we focus on alternative assets. i'm deirdre bolton. we show you what is going on in private equity, real estate, and more. today, sprint main