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tv   Bloomberg West  Bloomberg  February 11, 2014 11:00pm-12:01am EST

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♪ >> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i'm emily chang. you are in are you are johnson. -- here with our editor cory johnson. our focus is on innovation, technology, and the future of business. our lead story today is about apple. they have promoted a woman to
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lead human resources. she was previously leaving the retail side. angela irons just came in to lead retail. >> what is going on with apple? what is the potential for new products? there are concerns that the company that brought us the ipod and the ipad has not made an advancement. >> we talked about how apple has always been one of the most desirable places to work. now we are looking at numbers from glass door where apple has become less desirable. it comes in at like number 35. they used to top the list and now it is lower than google and facebook. >> everyone outside of apple wants to be inside and everyone inside want to be out. when you go over the steve jobs biography, you get this sense of what a tough place it is. maybe the products are perceived a certain way. >> speaking of people who want to be inside, interesting post today from someone who is a
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designer who was hired by apple to work as a contractor. then he decided that it was not all it was cracked up to be. he talked about his immediate boss. boos had aimmediate habit of making personal insults - this designer actually posted this today and walked out of the job today. >> let me get this straight. this guy, who is not even staff, apparently had to show up for work at a certain time every day. he had to do what the boss asked
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him to do. and he is so upset that he just walks out. >> it was interesting. he talked about how apple was a dream job, and then he went to work there and it is not all it is cracked up to be. apple is not commenting. we do not know the apple side of this. >> a spokesman said there would be no comment about this thing. it sounds like a young guy who did not work out there. i have worked some jobs that are a hell of a lot more brutal than that. >> let's talk about it with peter berg. he covers apple for bloomberg news. let's also speak to joe who runs a recruiting company. peter, let's start with you. tell us about the hr change. i visited an area of the company that we never talk about. >> this is an area of the company that we never talk about.
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it was run by a yale professor that steve jobs brought in in 1999. steve was getting sick. the company had paid very little attention to its own management. steve jobs brought in this guy to create apple university. >> so what is apple university? >> it is a management training program. it is very quiet. very secretive. >> this was written about in the book, that the culture of apple came from steve jobs. he was thinking, what happens to apple when i am not here? can we codify this in some way, and jewell was doing that. was doing that. >> this is what makes apple, apple. there is attention to detail.
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they will go through case studies. they get 20 people from around the company -- this is mostly high-performing people. they get them and talk about what apple is. the new head of hr is this woman denise young. she was running hr for the retail division. it was about half the company. it is the other half of the company. >> denise runs the whole company. >> all of hr. >> she may be the highest ranking african american woman. in all of silicon valley. >> so, joe, from your perspective, one individual designer today -- how does apple stack up these days in terms of a place to work? do people still want to work there and enjoy working there as
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much as they used to? >> i think the challenge for apple is that they have rebranded, great skill. it will be in the millions. the challenge is that they are competing with start ups. you see the upside of a company like instagram or snapchat and a year later you have a billion dollar valuation. for apple, you cannot offer impact. >> you hear stories like this? i think here about people leaving like the president who started there and was a former apple employee. >> tony. >> and now, he is at google. >> and the next team is, by the
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way, one third former apple employees now working at google. >> and that is what you see, people who are talented leading out of places like google and apple. and they go from there. >> i met with some real estate people here. they say they are seeing companies of a certain size, 30 like 25,000hing square feet, and they are looking for their next office space, 100,000 square feet, and to use that space. they want to show off. hey, we have got a fancy office, or, hey, we have got a fish tank, but the notion that this is going to be a great, fun place to work. >> yes, everybody offers cop or a foosball table. what do you have to offer? and that is what is tougher and tougher. >> you covered apple for more than a decade. you were talking to steve jobs back in the days.
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shift innoticed a true the way that talent out here views this? >> it was a golden age when he was there. everything new. thatretty much knew whatever you were working on was probably going to influence the world. you are not making money salary wise, but your options were incredible. this is a very singular place in time. that is not the case now. hand, a lot of people who go to apple our product people. a our product people. they do not want to build code. there are not that many good product shops in the world. the first time you have seen a little hardware company go and make millions. i bet you there are a lot of people with apple thinking, hey,
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maybe this can be done. >> we will see what happens, and we will see what happens with drop cam and job loan. jawbone. >> another is about to go public, as well. >> kick starter. indigo. giving entrepreneurs the abilities to go out and build their own products. become successful, but hardware is a very, very it's a cult thing to do. you joelry i called earlier. thank you for joining us. well, coming up, more young people watched the walking dead than the sochi olympic games. we will be talking about the hit show, next. ♪
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>> welcome back to bloomberg west. i am emily chang. is twitter trying to look more like facebook? they are trying a design on the pages of selected users today. a big emphasis on photos and the timeline, including content cards rather than the traditional vertical timeline. google reported that they were going to test, and this what was said on the earnings call last week about how they want to change the look and feel of twitter to be more attractive to mainstream users. well, the new amc hit show about zombies, the walking dead, faced tough competition in sochi, but it beat out the synergy games theg young adults, with second largest overall audience to date. jon erlichman joins us from l.a.
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tell us more. i love this show. >> yes, watching when the kids watchingp. if i am on-demand, it gets them out of the room. you are right though. 15.8 million people who watch this show, unheard of for cable, and against the olympic backdrop, that is pretty impressive. the president of abc joins us. charlie, if we think about why this show has been such a hit, what do you say about that? why are there so many fans? >> first of all, thanks for watching. mentioned it is a zombie show, but i think it is resonating more broadly he cuts of themes that have very little to do with the zombies and more with the human elements, the human drama. if you were among the last people on the planet, you would have a lot of decisions. would you stay or go, or hunker
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down, or go look for your family ? many decisions follow in the concept of survival. all of thoseith twists and turns, people like to talk about it. you have a show called talking heads which airs after walking dead, where you talk about the episode. you got close to 6 million viewers. 5.9 million viewers. again, that is the kind of number that most people in cable would crave to get. this show.of >> yes, you nailed it. there is something about live event television, despite much press, that is alive and well. you look at what the water cooler aspects are. it is a really emotional program. it brings together all of the sentiment about that live event, so sure, i think the beauty of that, it is a show that serves
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well, and we had so many speaking online than we thought we would bring the conversation to television. >> so, in other words, netflix, and they are a partner of yours, they can have success with the original strategy, but you guys can stretch it out, you know, one here, one there, and then talk about it, and both models can work? >> i think there is something to anticipation. i believe if you look at the walking dead and the talking dad, -- dead,g there is the live event, and it starts the next day with so many of our partners, on demand, and the electronic sell through and all the opportunities, but what is interesting, into the super bowl, we ran a marathon of the walking dead, which i suppose was the first bench, and that
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did well also. we talk about the ecosystem. there are all sorts of ways to enter the ecosystem. i think as much as anything, going back to the live event, and building anticipation for the live event. >> you have a studio partner. you have the studio behind the show, which makes me wonder, what is the long jeopardy? how long can you go with the show? you have also talked about having companions down the road. to tell, andtory there is a lot more character. you saw a lot of back story about michelle, one of the characters, this week, and i think there is a greater appeal. these characters could go on for a very long time. that sets aller the time that they think the zombie apocalypse can go on forever. is a writing team,
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including robert, who created the look. it is well past its hundredth edition. it is about the relate ability of the human condition. the story can go on. >> a long time. that, one of your big shows, you have a few coming. but there is one in particular, a revolutionary war drama. set the have kind of bar pretty high for programs. you mention your children. i have four. i would say the same about programming. to have breaking bad, walking dead, so for us to go from the walking dead to a story about the first spy ring is actually
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pretty natural for us. we feel that is as strong as anything we have done, and i cannot wait to share it. >> the president of amc. >> all right, thank you, john. and look no further. trackst how this act your interests to give you recommendations on the spot. ♪
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back to bloomberg west. i am emily chang. a new way to explore a country. and recommend restaurants activities based on locations
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and interests, and the app is also available in new york. i sat down with them today. really interesting. our online lives are so connected. andant things to be fast beautifully designed and efficient, and then we close our laptops on fridays to spend time with our family and friends, and we don't seem to have the same high expectations, so we decided, what if we could build a company where we used technology to experience the off-line world as well as the online world. me that this was one of his first investments, and i asked him what it was, and he looked at me aghast. why is this an essential part of everybody's day? >> friends, something like that, and you are wondering where should we go, what should we do.
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this, this answers the question, and two, it curates a lot of it out. it is not everything. it is just the top 10% of things. it is access to the coolest stuff. you were a nasa astrophysicist. >> yes. >> why worked on a social mobile app, another one? >> that is a good one. that dates back about 15 to 20 years. my dad started a tech opening in the garage when i was a kid, and to watch them go from three guys in a garage to over a million dollars, it told me there was something about being creative, and when you do that with astrophysicists, it is cool, but it is not really known as being creative. creating things. for me, being creative meant building things. >> so how do you make money, or
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how do you plan on making money? is predicated on people. you get a sense of what people are interested in, what parts of the city they are interested in, what days of the week they go out on, and as they move around the city, what they are looking for, so then you can look at the interesting things. -- au are a chef thomas chef, i do some pasta making classes that are incredibly defined. they live on the corner of the web. we try to structure that, recommend that to the right people. let's say 100 people look at an activity like that. who did not get to experience something life-changing and wonderful. we believe this is helping people to create that bridge, close that gap. >> we have been covering somewhat extensively some of the launches.
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what do you think of that? >> i think the tension there is worrying, and i think that we actually can do a lot more on our side. this is really exciting for me because it does project out in a lot of ways. there is an amazing triathlete who offers a run plus yoga. thing in ats the tiny window in the yoga studio, a little piece of paper, and when we find something like this, we find an structure and then ultimately recommend that to a lot of people. i think about 700 people saw it. it obviously sold out. that is a really interesting opportunity to make a living, connect with people. and not necessarily in there.
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h> my interview with the sos ceo. we will have more of "bloomberg west" after this break, and you can find more on bloomberg.com and bloomberg tv also. ♪ . .
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>> you are watching "bloomberg west." i'm emily chang with your top headlines. nokia will launch some new android phones before the deal to sell its handset business to microsoft closes. people familiar with the matter say that nokia will offer low-end android phones in places like india. the official announcement will be coming at the mobile world conference in spain later this month. sprint is showing signs of improvement after the nation's third-largest wireless carrier was bought by japan's softbank.
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noss -- loss narrowed. sprint lost about 59,000 monthly subscribers in the quarter, however. charter communications is upping the stakes in its takeover fight with time warner cable, nominating 13 candidates to the time warner board. all of the candidates are up for election in the spring, giving charter an opportunity to take over the board completely. ays his, the twc ceo s company will not be pressured into accepting what he calls charter's lowball offer. the income inequality debate has moved north. we are seeing protests around shuttle buses in seattle transporting microsoft workers. we have been covering what is going on in san francisco. companies from apple to facebook to ebay have buses going down silicon valley.
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>> of all the places were income inequality exist it is not , walmart workers on welfare, it is technology companies that are ticking people off. >> listening to an angel investor speaking about this last night, he said two or three years ago the goal was to combat unemployment. they had brought the unemployment down by bringing more technology companies into the city. by keeping technology companies like twitter in the city. yet it has had an adverse consequence. housing prices have gone up. transportation issues have arisen. parallel transportation systems. the technology shuttle buses and workers not taking public transportation. he made a call to action to all these companies to do more, to assume greater responsibility. take a listen to what he had to say. >> it is important for all of us to realize that you do not have to be jack dorsey to give back to the community. if you do not have a high net worth, you can start by
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volunteering service hours. actions speak louder than words. we need to start acting now. >> he set a goal of 1000 companies in san francisco giving 1% of their time, 1% of their profits, and 1% of their equity to philanthropy. what do you think about that? >> i thought it was really interesting, not citing salesforce, but yelp. a company that was a start up not long ago. the small commitment that really turned into a foundation with more than this suggests that $50 million. that should be part of the way that technology companies think about themselves. >> something we will continue to follow. i want to talk about google and comscore teaming up to measure the success of their campaign. amazon is expanding advertising. they are working with the
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company freewheel, which works with abc and nbc universal to put relevant ads in front of customers. i would like to bring in the ceo to talk about the relationship. what does that mean? >> we are working with amazon in a nice, close relationship. amazon has announced plans to build a video advertising network, a video platform. the goal of that is for them to get close to their customers. they can really help their customers figure out what they want to buy. >> the advertising business is the mathose things -- in this, the numbers are right. probably if it were a stand-alone business, a publicly traded company, it would be the third-largest advertising company in the u.s. >> i don't have knowledge on that, but i know amazon is taking a unique spin, trying to advertising to get
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closer to customers. >> how does your technology work? >> we are essentially a technology platform. we are mission control for television companies. for cable companies, cable operators. broadcasters. we do all the things they need to do to manage their advertising. wherever the content goes. if you watch content on a laptop, and mobile phone, or a tablet, we manage all of the infrastructure behind it. >> when are we going to see this relationship at work? >> you are already seeing it now. you can see what we are doing across all of these mediums. >> is there one particular place where we can go and see these? >> wherever amazon is serving video, -- >> where is that? >> video-on-demand platforms. >> what kinds -- we see so many
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places that video seems much stronger when it comes to content. we have seen great traction on bloomberg.com, i encourage everyone to watch that right now. but i wonder when it comes to advertising, what works more effectively? amazon adds shows you a place to clicked to buy. do you need that in video? >> no, you don't. video is just like television. you have to think about what happens in the online video space as being just like television. we think tv is tv. you watch the ad and you may or may not take action. brand advertising. that is what we're focused on. on behalf of all our customers. we are doing exactly what other networks are doing. >> we will be watching you guys. we will be watching your relationship with amazon and how it develops. thank you for joining us.
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well, it is new york fashion week. could 3-d fashion be the answer to future fashion? >> i thought all fashion was 3-d. >> we will talk about that coming up. ♪ >> welcome back to "bloomberg
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west." of all the different directions of high-tech, perhaps no technology is achieving more hype than 3-d printing. stocks gained last year. the technology has found its way into everything from prototyping on the factory floor to music videos and now fashion. am i going to be able to buy a 3-d printed dress anytime soon? >> it depends how much money you have. for $100,000, you can buy this amazing dress. it captures everything that is possible and impossible about
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3-d printing. it is skintight, check this out. >> high-fashion has gone high-tech. behind the scenes, technology is changing the fabric of fashion. from sketches to virtual design, from sewing machines to 3-d printers. couture has embraced 3-d printing. >> i'm looking to make the technology of 3-d printing as sensuous as i could. >> he took the fashion world by storm with the world's first 3-d printed dress for burlesque icon dita von teese. they are using very innovative technology.
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>> we took an image of her body. then we worked over skype to create a code which we sent to shapeways. they printed that the parts. together for a lot -- nylon design. >> it is literally built from nylon powder. >> it is a fascinating application of technology. but is it a passing fancy or the future of fashion? withis where it crashes hard reality. this dress took hundreds of hours to make. it cost well over $100,000. these skills require mechanical science and assembly. this dress may prove that the future of 3-d printing is as imaginary as the fantasy of dita von teese.
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>> i don't see this as the future. i see it as another tool that allows you to create forms you could not create any other way. >> for now, this remains an experiment in the realm of high-fashion. >> this is not a dress you wear every day. it is a flight of fantasy. >> i know that is high-fashion, but i am not sure it is my style. >> i think you would rock that dress. >> can they print normal looking dresses? >> that wasn't normal? but the point, first of all it is a piece of art. it took a lot of work by hand to assemble this. that was part of the idea. >> can they do things that are more accessible to average consumers? >> that is the point. we talked about the rising stocks. the earnings, there were practically no earnings. revenue is growing at less than 20%. >> the stock has taken a big hit in the last few days. >> a little bit. but there are enormous
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valuations. >> because they have gone up so much over the last year. >> yesterday, we had the chief financial officer of a company that does 3-d printing. we talked to him about the business. the movement in stock has been incredible. since it went public, it has been up and to the right. despite the fact that this company has paltry revenues, nearly a $600 million market cap and revenue in the last year was $11 million in the first nine quarters. it is a small company. >> how many printers have they actually sold? >> i put that question to the cfo yesterday and i want you to pay attention. i asked him a simple question. how many printers did you sell last quarter? >> the last quarter we disclose -- by the end of third-quarter 2013 we sold 55 printers.
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our numbers for the full year will be released by the end of march. >> 55 unique orders, in the quarter? >> we were founded in 1999 and we sold 55 printers by the end of q3 in total. of 55?all base >> last quarter we sold 3 printers. >> the number is 3. he wanted to say 55 since 1999. they only sold 3. this is the chief financial officer, who presently knows how much he sold and he is giving me the 55 number. i said, are these sales? did the customer like the product and pay cash to get it? how much of it was giving loans to customers? listen to when i asked him about this. how many required company financing. >> the last quarter we disclosed was q3.
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by the end of q3 2013, we have sold 55 printers. i think you should read our report. we disclosed more than 3. two of them paid in cash. i think we should give you enough information. >> there are no quarterly numbers available. i was trying to rely on -- >> the q3 numbers are available. out of the 55 printers, 3 were financed. >> he is referencing this citron research report online. i looked at the exact numbers of how many printers they have sold, and the answer was zero. check out the answer with those -- the terms of the three sales. >> one with a loan.
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>> the other two were 73% cash. the other 27% was "research services to be delivered." 827% discount off the retail price and the company would receive some kind of vague research service that they counted as revenue. >> how much do the printers cost? >> it looks like they cost about $341,000. this is not a big business. especially if you have to loan your customers money to buy this stuff. >> who are the main customers? >> they are talking about automotive companies. that raises another question. their cost of capital will be higher than it would be for a volkswagen or ford. yet if they have to loan a volkswagen and ford or these customers money to make the purchases, it says to me that this is a business in a very highly specialized business. it is for printing $100,000 dresses. >> not dresses for emily chang. >> i think you deserve a $100,000 dress. [laughter] >> i know that you will keep on
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this. thanks so much for giving us the detail. coming up, panoramic photos can be beautiful. but they can also be a lot of work to get right. we will take a look at cycloramic, an app that takes hands-free panoramic photos on your phone. ♪
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>> welcome back. i'm emily chang. these days it is all about the selfie. cycloramic has figured out how to take smartphone photography to another level. the phone spins itself in a circle to take a panoramic photo. after an appearance on the abc show "shark tank," it shot way up in downloads. the ceo of cycloramic is in the studio.
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you will show us how it works. basically i can take a selfie without having to take a selfie. >> you are still taking it. we have another one that is specifically for selfies. it does the same thing. >> ok. >> you press start and then i do a 180 so i can take people around the table. how does it turn like that? >> i use the vibrator inside the phone. at the right frequency it rotates the phone and takes individual shots. at the end it puts the shots together. >> it is the high-quality camera in the back? >> yes. at the highest available we do 40 megapixels. the -- then it opens in the 3-d viewer. >> how long have you been working on the technology? >> it has been one year. when we launched it was
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exclusively for iphone 5, just a video. the hands-free is for iphone. for iphone 4 we have 40 megapixels. we have a video converter. a partnership, a full-blown suite. >> is this done now? can you show us? cool. i think it filmed it. there you go. is this special, or any platform? >> i want to understand the programming better and learn about the business. the vibration thing, what is the science behind that? >> a long time ago, i saw that my nokia phone was moving. i wanted to do an act that was unique. let's try to use something that was not meant to be used for that. i thought about making the phone move. i did some tests. could changep that
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the vibration and i tried on different services. as soon as i was able to do a 360, i thought we should do a panoramic. it will be fun. >> mark cuban invested in your company after your appearance on "shark tank." how has he been involved? >> he has been involved because we are working on other apps. we launched another one that is more for selfies. but 3-d, so you scan your face and it does a 3-d. >> let me ask you. how has it been to work with the app store and get this thing approved? to do things apple did not intend? >> i was afraid it would not be approved. to tell you the truth. when we submitted it, it was the day before christmas. you know they closed on christmas, so i was not sure. we got rejected at first and i had to do a video to show it. i said it was magic, and so i did a video. the video went viral.
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600,000 views in a few days. that is what launched the app. >> that is how you got into the app store? >> yes. >> what is going on with the back of your phone? >> that is just a signature. >> whose signature is that? >> that is 50 cent. >> permanent, on your phone? >> i kind of collect signatures. this is my favorite one. >> do you have another phone? we can sign it. all right. >> i always have the latest phone. >> this technology is fascinating. thank you for joining us. it is time for the bwest byte. jon is in l.a. with the byte. what do you have? >> i have 50. there is a great story by the team at bloomberg news.
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the google deal machine. the last couple years, this m&a team at google has increased by 50%. amazing how many deals google is involved in. in every category. would be -- would we be surprised if they bought the company with a guy you were just speaking to? probably not. >> 50%. not 50 cent. >> they are different people. curtis jackson does not work at google. >> did you guys sign it? >> he says when he gets a third phone, we can sign it. >> we can sign your ipad? thank you for showing us that technology. thank you for watching. ♪
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>> the following is a paid program. the following is a paid advertisement for omega xl. >> my name is larry king. a few years ago, i had to have open heart surgery. when i recovered, i established a cardiac foundation to help people like me avoid heart problems with proper foods, medicatian

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