>> live from pier three in san francisco, welcome to bloomberg '"west." i am emily chang. king sets the valuation as much as $7.6 billion as we get an initial rice range for ipo shares. we will talk about that in a moment. also, the world wide web celebrates its 25th birthday from founding father calling for

of magna carta to protect the internet's open neutral system. first, a check of the louisburg top tech tech -- top tech headlines. will take over from antonio perez the becomes a special advisor. clark says he is looking to emerging markets for growth as they focus on selling printer services to the enterprise market. >> starbucks wishing further into mobile. testing a mobile ordering system this year that will allow customers to order before going into the store. the chief digital officer tells bloomberg more than 11% of u.s. transactions are done via mobile and says that it will double in the next year. a massive fire hit san francisco's mission bay neighborhood area. the flames consumed an apartment building under construction. nearby buildings were evacuated. one firefighter taken to the

hospital with a minor injury but no one else was hurt. the first to our top story, new details on kings ipo. will sellcrush maker more than $21 million according to the latest sec filing. that said the valuation as high as $7.6 billion. cory johnson here with me in the studio. they would argue they have a couple of games. that is the whole thing, how replicable is this thing? one thing is they do not get just quarterly numbers on users but they give of february number on users. there has been an increase in users, and that is a good thing for the company, but these guys have to make the argument they have a number of hits in the pipeline that they have been able to develop a lot of different things beyond just candy crush. >> online gaming clearly a hit driven business.

even the big day makers through a major transition right now. the model out there, maybe the cautionary tale. you have a company that has 1.9 billion in sales. there also profitable. over time million in profit last year. david --ioned, the daily active users are increasing. i thought one of the more iporesting things in the filing, talking about having 180 game ip's. >> what is that? intellectual property? >> at 100 games but they have a machine for creating different kind of electoral properties. speaking of pricing, uber defending the price model explaining they are independent

contractors who pocket 80% of fairs and affects less than 10% of trips. the company is very transparent about the policy, they say. we have an over investor and on ore board -- uber investeo and on the board. within the company, how much has it been debated whether this is really the right policy? of thectually came out experimentation process. this was almost two years ago in boston. late at night, 1:00 the drivers would clock off the system and the partygoers were happening the app forpening not getting any drivers. there was an issue where we did not want servers to be unavailable so we experimented to offer different amounts to drivers to affect supply.

since then we have done a lot of experiments with price drops. we have been able to see what -- demand.o the band we found hypersensitivity. that gives you the capability to move supply and demand around in ways that can be helpful to the system. not careu know, i do about people or pricing. were you taken aback by the reaction of the pricing -- the biggest arm to hit the coast? you surely -- we know you alienated a lot of people.

>> we all know hotels and airlines, they all do the equivalent of search pricing. hotel in new year's eve could cost 10 next what it would two years later. they have a benefit relative -- relative to us. for them, the demand is fixed in the supply shift. the exact time of new year's eve, the supply shrinks while demand is increasing. both of those curves are moving for us because the driver does not want to be out on new year's eve either. the time that most humans want tonight -- want to not drive the same time the independent contractors want to not drive either. wee is what would happen, if were to set prices at normal pricing and those almonds while supply is shrinking and demand is increasing, 95% with the no cars available. when you ask about the pr hit, you have to contrast it with what the hit would be if we did

not do it. the companies come to the conclusion and i believe it that the product would be broken if we did that. in these moments when you wanted to work the most, it would not be available. this is a better alternative to that. it hasyou explain why been compared to airline flights and hotel rooms but the price is not exponentially higher. five or seven times the normal price. why that much higher? >> this created a lot of controversy in the press. airline ticket he bought was 10 times the normal price. i think they go to those levels. i happen to believe these types of peaks will go down over time. one of the reasons why the whole toion of the gouging companies out there is companies begging people to be aware of it, being ridiculously

transparent. >> the search drop feature that we just announced. ,> i think all that conversations like this, making the drivers more aware will cause the peaks to be smoothed out. i would argue last to your steve there were large amounts of hours where there was not any search pricing at all and partially getting awareness out. >> right after midnight, no search pricing at all on new year's eve. all. surge pricing at you talk about the number of black cars in san francisco and how it has changed since ubert. >,. >> when i first talked to travis about investing in the concept, there were 600 licensed black cars in san francisco. at any given moment there is a number that is a multiple of that. >> what is the number?

>> amazing the number of cars has increased as opposed to the cars of their being diverted. >> i think this company has the opportunity to really transform how we live. it started as a black car alternative and has become a taxi alternative and now a rental car alternative. for many people i know it has become a car ownership alternative. i know many people have gone rid of cars and using this as the primary means of transportation. >> roger mcnamee has talked about the number of people under the age of 20. >> i think that is part of it. >> in the past five years car ownership has fallen by 30%, a dramatic number. it ties into the urbanization while the startups are in san francisco. certainly changes happening.

>> we will continue the conversation after a quick break. also, what wasd on the first website? the history of the web as it turns 25 today. you can watch a streaming on your phone, tablets, bloomberg.com and apple tv. ♪

>> welcome back to bloomberg 'we "west." we are debating uber surge pricing. snapchat, aor, great record you guys have. sends a text on valentine's day to drivers saying they were close to surge pricing and they will be out on might and earnings will be higher.

they did respond to that, saying the goal was to get more drivers on the road. things like that that sometimes make you both think it is shady. how do you respond to that? >> they did respond to that and i think it was misrepresented. just on boarded a bunch of new drivers. if you bring on supply and demand has not adjusted yet, they will make less money. there he sensitive to how much money the drivers are making. a lot of the press is out there looking for a bogeyman. surgearch pricing -- pricing is so unusual -- >> it also has such an impact. think about travis it? does he debate these things in his own mind? whatever i talked to him, he is firm. >> this one i think he has gone on -- gone over and over in his

mind and i have had long conversations about it with him. you have to make a decision as to whether availability is more important than that. if you want the system to be usable, it has to be available. people say i cannot use it because i do not know what the price will be. you really cannot use it if you cannot get a car. >> one of the thing that amazes me is it is just a car service. it reminds me of opentable, just a restaurant service. there is something about the technology that is the vertical applications that are just one thing, but a really excellent one thing. do you think we will expand to other types of services? about it. has talked i think it is highly possible. when people first look at the company as an investment they would calculate how big the black our market is in north

america and say that is the limit. they have long way through that at this point in time. a ton happening in the background with the optimization technology that is conning you -- causing utilization to go up. one thing that has caused it to drop four times is because every time we drop price, demand goes up. have people in them far more frequently than they would have traditionally. you basically have a properly -- traveling salesman problem where they are able to be more effective as a whole. >> what do they show? they're not dispatching cars to certain areas because they know they get busy at a certain hour? >> absolutely. a certain demand model for every city and i were. >> could you see them taking on fedex? what is next?

ambitions are big. >> absolutely ambitious are big. that moresaying companies die of indigestion than starvation, which is tuesday to the importance of focus. right now the company is hyper focused but they are thinking about those things. as you have noticed, over time we do experiment. ice cream, valentine's day, roses. in some ways those things are about pleasing consumers and pr, but they also survived a ton of data to help us analyze other opportunities. i want to ask you about valuations in general. you think about violations right now? to being been old enough around during 1999, this is certainly the best it has been since then. i am a venture capitalist.

>> this is the point where they say it is too expensive for me, public archive are cheap? >> we have a couple of things going on in the backdrop, we have never had this flow of global interest rates ever. it is creating a ridiculous amount of supply of capital. theee it most acutely in venture world in the late stage markets, where some of the valuations argue are talking about. but it is also in the public market. very common to hear anchors talk ta.ut 30 times ebit of the wayt to know thi this is different. differentk it is because of the interest rates. there is a lot of capital searching for home and also because of growth. global growth is missing. there is a search for growth in the search for where you put

your money. then there is a game we get into every time, and this is more similar to how it was, which is one ipo goes out and goes up 100% and that causes everyone to be in the next one and the next one early. >> how sustainable are these prices? do you see a point in the near future when it is going to come down? >> near future is a hard word -- hard phrase. field, youoff the missed the three best years in the history of major capital. it is tough. we get intothe way the cycles happens very slowly. they build on each other. when they do come apart, they come apart very quickly. when that is.ct i suspect more of a global catalyst than something similar

to high-tech. something like a google market collapse or nasdaq retreating 30%. >> facebook buying whatsapp, what does that mean for snapchat ? >> i do not know that there is any specific implication, other beingacebook clearly sees in more one-to-one messaging as critically him orton for various reasons, and i think that might cause other people to look at whether they are or not. evans is completely committed to the long haul. that is why he has stared down the m&a opportunities that have come before us. >> thank you for joining us. always great to have you here. i back after this quick rick. -- right back after this quick break. ♪

>> welcome back to bloomberg "west." one of the biggest names in the tech role. and his teenage days he was in aspiring -- was an rapper. >> excuse me. you can't tell me nothing. you can't tell me nothing. hip-hop is the music of entrepreneurship. againstcoming the man rallying against. anyone in hip-hop thinks about them selves and talks about themselves as an entrepreneur. blog post,e a

generally it is to teach an entrepreneur how to do something. the post can take you how to do it. like i am feeling exactly what he meant and complements and that way. i wrote a post, which is about positiveng cash flow is important because then you can control your own destiny and not be completely dependent on outsiders. "til i put in kanye's thing wait until i get my money right, then you can't tell me nothing, harder to is a little understand. i wrote a post once on why we think founder should run their companies and why they can often perform better than professionals can.

said -- >> cofounder of andreessen horowitz. you see him quote the lyrics. you do not often hear him rap them. crews still searching for missing airlines 370. how does a boeing triple seven go missing just like that's? we will discuss next. ♪ after the hour, which means bloomberg to be is on the markets. getting you caught up on where the markets are trading as we head into the early afternoon. the s&p and nasdaq and a red. one thing i want to point out is a herbalife, shares are halted in the company even though they are on the rise. ackman presented research claiming the company

was violating chinese laws. positionn shares, a that has lost money on, the biggest losing position so far. back on the martin -- market again and 30. ♪

>> you are watching bloomberg "wetst." i am emily chang. crews are still searching for missing malaysian flight 300 -- 370. malaysia is investigating an unexplained radar blip 45 minutes after contact with the plane was lost. we are joined by a commercial airline privates and the author of " caught it confidential -- cockpit confidential."

it in wondering how is the 21st century first century in the 21st century could >> you used the word radar. is traffic control radar something that only exists in certain parts of the world. there are vast stretches that are not covered i radar. they can make -- communiqué other ways by high-frequency radio or what we call fms datalink or satc call. there are different ways of depending on facilities in what you're working with. i keep getting asked, why wasn't this lane being tracked? it was.

what seems to have happened here is all of that equipment, one way or the other failed or was shut off. we do not know. , you cannotr communicate. all of the tracking and communication suddenly does not work. that is where we are and we do not know why it happened. was it foul play, which is conceivable, or some sort of bizarre and catastrophic power failure on the aircraft? >> there are reports of the plane being cited on military radar. how do those kinds of radar am the wrong person to ask about that. and who was tracking the airplane where come and that

seems to be very confusing right now. i think what is happening is you have different entities focused the plane in a very distant location. getting from there and filtered through the media and finally out to the public is becoming garbled and i do not think we really know who was watching what and where. i think we are confused right now. eventually i think the message will be more clear but not yet. >> how unique is the situation? to have short memories. when you go back over the history of commercial aviation and the different accidents that have occurred over the years and decades, there have been strange ones. i think what is important is people need to be ready for the that we just might

not ever learned the whole truth about what happened. that is kind of bold for me to put out there at this point. they have not even found the wreckage yet him and i suspect they will. my hunch is that we understand what happenedt but we might not. at the very least it will take some time. people want fast and easy answers, and that is just not the way this works. air crashes, it sometimes takes weeks or months or longer before we really understand what happened. >> conceivably if they find the record or the black box, they may get more clues but what is your gut feeling? it is so unusual the plane would far off course. why do you think that could be? >> things were making more sense up until the point that the news

came out that the plane had apparently wandered around for an hour or so for hundreds of miles after contact was lost. that really pushes the whole conversation literally in another direction. is thet happened million-dollar question right now. sick very unusual, and it just to me, one of two things, which is the possibility of hijacking or other foul play or some sort of really unusual that catastrophic power failure that would have shut off the transponder and the datalink system. very strange. i do not want to say what my hunches are, because i do not speculating on an accident when so little is known.

all we really know is the plane wandered off course and disappeared. you throw outwhen the reason, they turn out in the incomplete or completely wrong. i think the same -- same thing to do is to hang on, and i think we will probably find out more in the coming hours in coming days. single piece of technology do you think is a reasonable thing that might give us more information that might be added to cockpit or whatever? >> that is a great question. rare thisstand how sort of thing is. is it a good idea from the airline industry perspective to invest billions of dollars in some sort of high-tech, real-time failsafe tracking technology for something that happens once every 20 or 30 years?

i do not know. >> you are a commercial pilot. are the pilots trained with losing contract like this? is the power to shut off, what do you do in that situation? >> electrical failures and problems, the loss of communications, those are all things that pilots are trained for. another thing coming up is the itsibility of any sudden or plosive decompression. the fact that the plane deep crisis -- reap -- depressurized and the crew became incapacitated and it wandered around and eventually crashed. that is conceivable. trained to deal with that. i do not want to say that reacting is routine. that is not the word, but something that is practiced in the stimulator and that

something -- a procedure that all are familiar with. the worst case of depressurization is survivable. i am not ready to go there yet, unless something crew did not react the way they were trained to react. that is a possibility. unlikely, but then all of this is unlikely. , butof these is unlikely maybe a combination. we just do not know. >> the mystery still unsolved. we will continue to follow the story. interesting stuff. thank you for sharing your insight with us. back with more after a quick break. ♪

>> welcome back. i am emily chang. the world wide web celebrates its 25th birthday today.

not the internet, just the world wide web. ago submitted a proposal for an information management system. he released a video this morning. take a listen. >> together we have built an amazing web, but we still have a lot to do. he wants to connect people and no internet access create a web that can run on any device. we have a couple of great guest to discuss. the first message transmitted over the internet was sent from his lab at ucla. mark webber who leads the internet history program at the

computer history museum joining us. thank you for joining us. al gore once claimed he invented the internet. who really invented the internet? >> the internet and web are different as you said. al gore did put a lot of support and important support to funding the expansion of the internet in the 1980's. is from the late 1960's. theberners-lee proposed world wide web in 1989, around the same time al gore was beginning to fund the massive buildout of the internet, which is the plumbing for system like the web. >> what was it that was so unique? there were notions of hypertext. apple had a hypercard project. thatwas it about the web

was so revolutionary different? >> the revolutionary part was twofold. one, the idea that multiple computers would be able to communicate using the web technology. the other amazing part is the time when tim berners-lee suggested the idea of live connectivity where you could click on things and reach out to other documents came exactly when it was needed. you heard mark talk about al gore contribution to laying out the global infrastructure, the backbone. at the same time, .com's were coming online at -- asking for access to the wonderful thing they had same. what was missing was an easy user interface. what he did was to suggest a concept that was later implemented in a variety of ways , in this case browser, internet

explorer emma which gave the consumer and business man a wonderful simple, graphical -- graphical user interface to access the wonderful parts of the internet they were seeing. >> how quickly did it develop? did itow baby steps or explode? >> first of all, when tim did propose a web, there were no .asy to use systems several competitors. not only proposal. it was coming out of the physics institution, not competing institution as the least likely to become the world's standard. at the time, the big money, commercial interest was in compuserv a nd aol. hour for pay by the

access. the idea of having an easy to use system on the internet was radical. it was a academic and research to us the time. abouts there something the browser specifically, mark andreessen coming out of university of illinois that really accelerated this you go again, it was the graphics capability. text anded on documents, but allowing photographs, images, pictures and video to be easily accessible was extremely attractive to the consumer and business man. one of the main things they were interested in was e-mail. researchattached to do

portion. they wanted access. it was not easy to do. at the graphics, images, and video tom and easy interface that the human computer interaction was the key missing elements we saw emerge in the early 1990's. >> so do we know where the web is today? 25 years from now, how will it so it isent? >> actually not very well-known that the weather started off as a graphical user interface later ones.lar to it did support multimedia of the very beginning that there was a catch. machine.ne on a very sophisticated machine from steve jobs after apple and no one else could see it. his partner on the project, someone on the team asked for support to put browsers on pc, mac etc..

they did not get support. they called for volunteers to build browsers. that is where mosaic came out of. it is not the graphic and music -- mosaic added graphics in the text, which was in the long-term plans for tim berners-lee but did it quickly in the way that caused tension in the community. >> we're going to be watching for the next 25 years and discuss what will happen next after the quick break. mark webber of the computer history is em, and professor at ucla, thank you for joining us on this special day. we will be right back. ♪ want to get you breaking news on herbalife. the ftc has opened an investigation into a nutrition company. they have now confirmed as civil investigative demand from the federal trade commission today. the shares are halted.

they are up about 4.5% before the news came out. asked men behind pershing square capital who has accused herbalife of operating illegally as a peer amid scheme. he renewed his attack just yesterday, accusing them of operating illegally in china. up by asis they were much as six point five percent. now opening up a civil inquiry into what is going on at the nutrition company accused of acting as an illegal pyramid screen -- you illegal pyramid scheme. more after the break going up. ♪

>> breaking news on bloomberg. herbalife shares are tanking after the company has confirmed the ftc has opened a civil inquiry into the company. they confirmed earlier they

received investigative demand. shares were up i as much as 6.5% but now moving sharply lower on the news they have in fact opened an investigation. the news is considered a win for who is accused herbalife of operating illegally as a peer amid scheme. here is emily chang. amounts of data store across the internet every second. broadband demand increases 20-30% every year. >> 2 billion people online. the very structure of the internet is going through interesting changes. one of the reasons is a big heart of the way the internet is working. the longest standing ceo in the optical space if you will. what happens in the internet in ?ne minute you go > usersdreds of millions of

are using hundreds of thousands of applications. wanting to socialize and entertain themselves and much opportunity to be able to do different things on the internet. >> you save bandwidth increases 20-30% per year. is that sustainable? >> it has been sustainable over the past decade or even longer. new applications are coming each and every day. we see that continuing with the combination of bandwidth growth, we need to manage with new technology, something they have been doing for the better part of 20 years. >> there is the way the back bone -- backbone of the internet is changing. oris not the addition of it extra fiber but finding networks. the same way that optical does, using the existing capability in new ways to essentially add new

lanes onto the information superhighway. >> correct. this is up-and-coming technology. it will take some time until it is implemented in the large networks. being used by a number of content writers and enterprises today. we see that as a massive change. people have to virtualize hardware. need to manage investments more effectively, especially the telco group because of the faxtal equipment tours expenditures are not growing. therefore we seek continual pressure on investment dollars and the changing of the way they build business -- the way they build networks. >> how do you innovate with the existing infrastructure? what are the challenges? >> very challenging.

enterprises are little bit different. they can move quickly. theyit comes to telcos have operational processes that are very fixed. billion's of dollars in investing capital. so when they moved to the next generation of networks, often they build overlays on new networks. they are taking specific services and rolling them out in the new technology as a separate solution based. step-by-step they roll new services for old services over to the infrastructure. >> yes or no, could the internet ever break? >> i think it would take a lot to do that. we will be watching the next 25 years. thank you so much for joining us on the web's 25th earth day. thank you all for watching this

edition of the show. we will see you tomorrow. ♪

>> from bloomberg headquarters in new york, this is "bottom line." today come ukraine's prime minister needs president obama at the white house. two people are dead following a massive building explosion in new york city's east harlem neighborhood. a daredevil attempts a win suit flight off mount everest. -- a wind suit flight off mount everest. to our viewers in the united states and those of you joining us from around the world come welcome. we have full coverage of the stocks and stories making