>> life and peer three in san francisco, welcome to "bloomberg west" where we cover innovation and business. is details on when alibaba going public. why they appear ready to lift in the united states. the guy behind the google driverless car and online education company is now offering classes in conjunction with google and salesforce.

we will be talking about that a little bit later. salesforce has named colin powell to the jurors. he will be joining the salesforce as the company tried customers.e he has been involved for a number of years, helping to create the companies chart about foundation. huber and lift our expanding insurance coverage for their drivers. even if they do not have a customer in the car. the issue became a flashpoint andr an uber driver struck killed a six-year-old girl on new year's eve while waiting for a fear. lyft announced a similar program. bank hasentral temporarily suspended the use of smartphone payment using qr codes. they say this is to protect consumers while the government

comes up with regulations. this is a blow to companies like ali baba that have been moving aggressively to provide financial products to users. to our lead story of the day. ali baba per pairing to foul for an ipo as soon as april in the united states. >> of this is a big one that the banks are waiting for, the lawyers. >> someone said the biggest tech ipo ever. >> it could be. we do not know what the ultimate valuation will be. we do not know if this bull market will last this long. it is a big factor. >> analysts have been valuing it at one -- at 153 billion. york.joined from new tell us the details. what do we know? may possibly come

here. it is up in the air with the politicians. hong kong could come up with a last-minute deal. it looks increasingly likely that they will list here. the filing could come as soon as next month. that is something that is pretty newsworthy. they been telling us it is not on a time limit. it looks like it could be coming up pretty soon. said that they are not in a rush. there's not a timeline for an ipo. >> you look at the competitors. there is a battle of the tech giants in china and trying to control the 618 billion internet users in china. the shares have skyrocketed, enabling them to make more acquisitions because they have the currency to do so. this tech company that is looking to look in the

could move up the ipo and in most tier. >> you look at the move in the last year and shares of yahoo!. say investors are getting graded for the alibaba ipo is finding a way to look at the piece of this company before the ipo they hope will get there. >> exactly. you are looking at this as an opportunity to sell shares. you want to get in before they get an ipo. continue toould rise up until that point. that is why we saw a spike in yahoo! shares today. >> you also talk about the possibility that they could still list in hong kong. i know there are regulatory issues. they're heavily leaning toward the united states. "bloomberg west" > >> they have not come up with a

solution. this is over the the partnership structure and the ability to nominate directors to the board. they've not been able to come up with an agreement with the hong kong exchange or regulators to do that. the u.s. regulations allows that to take place. that is why it is looking increasingly likely to be here. >> thank you so much for joining us here on "bloomberg west." we'll continue to follow the story. now to a new twist in the mystery of the malaysian airline. i am upset. > -- i am obsessed. >> we know a little bit. >> the newest bees of information is that the transponder was active for about five hours after the plane transponder was off. was flyinge it several hours above water. this is according to three u.s. officials. systems, i want

to bring in the former inspector general for the department of transportation. i know you have been following this closely. i feel like the first question is what does this leave you to believe? us to believe where i was before. we do not know why these things occur. a lot of people are talking and saying maybe it is terrorism or someone turned up the transponder. no. is that the plane stopped sending data onto events. one was the system where you can send data back and forth. that was turned off. that stopped sending data. 14 minutes later the transponder stopped sending data.

all we know is the datastream stopped. after the point there were four points picked up via satellite from the plane. it is a cool system. we learned this in the investigation. it takes it temperature. it takes a status system update. this system is not ok. something is going on. while the triple seven has the same system malaysia did not pay for the subscription. all we have is the data ping that it is above water and functioning at four data points pass the last known spot. >> take me through the technology itself. you mentioned that malaysia did not pay for the system. what systems come from the

manufacturer of the aircraft? what systems are optional? what systems are mandatory? >> it is the transponder. it lived there traffic control and the whole world where you are.- you know where you it transforms you from a ufo to an airplane with a #two and appeared that was turned off. # sign on it. that was turned off. you can send messages back and forth. is a radio-based system, one is a computer-based system. they stopped admitting signals. the next system is satellite-based. and is built into the 777 takes the temperature of the plane all the time. updates not send status if you subscribe to the system

as a carrier. is juston't, the signal on saying we are here. we have four blips. it does not say anything more or where they were going. pings, doesn't mean the plane was above water when they happened? >> yes. it was above water when they happens. it does not mean that a terrorist was at the controls. it could even mean no one was at the control if the plane was on autopilot and they had a catastrophic failure, fire, explosion, rapid decompression. this could be going on. referring to one whose plane was on autopilot and flew for hours although into

wisconsin or minnesota before finally crashed. half the passengers had died long before that. airlinesoned malaysia chose not to subscribe to this program. why wouldn't airlines decide not to? >> "bloomberg west" it is not it is not- -- >> required. it is an additional system. it is an additional charge and expense. they may have assumed they could provide their own. if they do not need the billing ingistance -- the boe assistance. oeing know what is going on out there. these are things they should know about. are there things they can do to improve it? it is an information system that goes both ways. life-linemationw as a to find the plane and find

out what was going on. it said certain systems were engaged or not engaged. the flight systems were literalyl spooling down. the plan shuts off certain things to try to preserve flights. it will keep the control services. it will keep the engines. if it is having a problem, it will shut down anything nonessential. >> where does the investigation go from here? >> the investigation has to follow the four pings. that is all we have right now. significant. i think there is a chance they will find wreckage at the end of the last ingping. be following this very closely what happens.

out to be aing revolutionary year in telecom, potentially. >> a lot of interesting developments. what will happen next as the fcc makes some really important decisions about this tumultuous change? ♪

>> welcome back. big changes underway in the telecom industry. sprint is trying to buy t-mobile. >> there is a lot of stuff going on. the question is who is going to decide if this is a good idea? that these chain of events is going to be germanic. are they the decider? >> we are joined right now to what cano talk about

the fcc regulate? can they truly do with these issues? is no question about it. of course they can deal with them. these are all companies that are beginning to look more and more alike. they are telecommunications. their media. -- they are media. they are old media. they try to recognize to protect the public interest and act on behalf of consumers. >> you are the only guy who cast a dissenting vote. what do you think about comcast twc? >> it should be dead on arrival. consumers have experienced generations with a rising cable bill. now internet and broadband and bills.

a runs roughshod over competition by entrenching this huge company across an entire national footprint. theink it runs over opportunity, creating potential of broadband which is beginning to look on the internet more like the playground of the few rather than the town square of the many. if you want to cable eyes -- internet, then what better than the biggest cable company? it is not what the internet was designed and meant to be. >> very quietly we have seen a revolutionary year in the course of the last eight weeks for issues affecting the fcc. ruling. the big can favorerizon traffic. comcast starts a special deal with netflix. it gives them their own fast

lane on the internet. in these rent/t-mobile proposal. is the fcc ready for this? >> i hope so. i hope they will be looking to program. you assume one merger and then the next competitor isn't saying you have to let us get bigger, too. this is always open. it is speeding up right now. i think there is a dawning realization around the country that something is amiss here. it has gone too far. we cannot allow the internet to go down the same road that cable and radio and television went down to. at some point we have to have policyason to public

oversight over our entire communication ecosystem. that is what it is. i do not think we can talk about telecom on one side or media on the other. we live in one vast ecosystem. there are problems with traditional and new media. that ise responsibility very important juncture to step up to the plate and put a stop to what is wrong and think on from there and start to do some positive and good things to protect the future of the internet and consumers in this country. hot process what happens in the meetings between the lobbyists and the companies and conflicts of interest with in the fcc itself? of the not a fan revolving door. we see more and more of the revolving door. it is a function of the role of special interest in the power of big money. it is seen not only at the fcc

but everywhere else. the meetings and the mind of a commissioner varies from individual to individual. i have no objections with the folks from comcast or any other companies coming in. often we give them preferred access. we are in a position where we can afford more access. without really reaching out we're talking about commissioners. the ultimate constituent is a citizen beyond the consumer. >> let me ask you this really quickly. on to a google website. we have seen cases where at&t slows us down. now comcast will speed up netflix. is that the ultimate concern,

that the very few companies that own the pipes will decide what we can watch in a reasonable amount of time? >> that is right. if they can block content or what news you and i can see or they can say to bloomberg we're going to put you up your on the stratosphere where no one can find you so our own property has easier access or whatever it is, it is getting too much power to one company. think this should be dead on arrival. thank you so much for joining us. lots of things will continue to follow here. we will have more after this .uick break durin ♪

>> how green construction is helping offices save on electricity. we have more. hate going to the dentist, you are not alone. here is an idea that might help you set a little easier. this dental office saves up to 70% on power aims to a first of its kind commercial design, part of a growing wave of green construction. structure's design build is the dream project.s he uploaded his idea. >> it changes the game in terms of energy efficiency. it is now cost that death for a commercial building to be built. >> natural ventilation and an airtight fabric seal keep the air fresh. thises technology like

thermal image camera to seek in seal leaks with precision. >> we are making the league's 20 time standard -- tighter than center construction. >> what you see here is permeable concrete. a goes down into the pit that is underneath this parking lot. >> it cools incoming air through passive coils. all of this is an established design center that has been around since the 1990's for residential construction. there now.is green construction is an industry worth over $100 billion worldwide and expected to more than double by 2020. you can build according to the efficiency standard at market rates.

to promote efficient design and maybe move the planet forward. next, sebastian gone, the same guy who invented google driverless car, talking about education. ♪

>> you are watching "bloomberg west" where we focus on technology and the future of business. has been promising to revolutionize education in one way or another since its inception. the old school classroom has on out. uder you tacitly that -- acity. this forces with salesforce and google. the founder joins us. he happened to invent the google driverless car. we're here to talk about education. having people are using this? where are they from? righthave about 2 million

now. they're from all over the world. new york is the biggest city. brazil. they all want to learn and get a job. the number one reason to come to udacity is to get a job. we teach you cloud computing, big data. >> what are the most popular classes? codings basically a class. you go from no coding whatsoever to [indiscernible] we had over 400,000 students in this one class. >> is there a notion that vocational education is a focus here? is there interest in the arts? how do the students differ. >> i am very interested in arts and humanities. many of our partner companies peoplee type of schools have leaving college are not a good match for what they need in the workforce. at this point, you spend more than when you're searching even

with a college degree for your first job. either unemployed or underemployed. >> google and salesforce are actually teaching the classes? what are they teaching? all the way tops be a very sophisticated app developer. you will organize a rock concert. in google they have about five class is underway. mobile web. game development. you learn a lot about computer science along the way. >> in terms of working with companies, how does that change or business model? where is the revenues and the profit? >> we have a business model where her inner companies pay us other companies pay as. everything we do is available to

everybody. they pay as to make the contents. if care about getting the contents. we make it free to everybody. model willreemium we do model where projects with the students. they're very demanding. they learn the stuff much more deeply. that is for charge only keep the cash. wasnitially everything free. it is still a lot cheaper than what you would get in a traditional classroom. >> everything free is not a good model and education. it is a good starting point. it had its problem. you are very limited. we cannot do very much in terms of motivating students. we set free is our basic word you want to do it if you

want to teach or so. you pay no dimes to us. if you really care about the context in which you can learn something, come to us only help you. costs are about 10% of a college class. cost $45,000 to get a masters in computer science at georgia tech. it only cost $6,000. >> that is what should cause. there's no reason why education is so expensive. make the product really engaging and gray. you are right at maybe 150 bucks a month. do you think georgia tech and harvard are all overcharging? they'renot saying overcharging. i think we can get education much more effectively at a lower price point. in my days as a hedge fund manager, i spent a lot of time and money shorting the stocks for some of the for-profit education companies and was shocked to see the fault rates

and the number students who dropped out after only a couple of years. worse forto be even online. when you looked at those models, what did you see? >> it started much more positively. the government made the money available. not forasically paid finishing and finding a job and signing up. the universities were involved. they try to maximize the intake of students. >> some of them will have 30% or 40% of revenues going to market. it is an abomination. >> we have in marketing. it is viral. honest.st trying to be we want the world best product of education at a price point that is not require a loan.

you just sign up. isn't there a better model because it may lead to more net income? >> i do not care about the income. i am proud to give away stuff for free. i want everyone to have a chance. that is much more important to me. onlineletion rates for courses are still lower than traditional schooling. how do you overcome that? where do you see this going? everybody wants education to be more affordable and accessible. people are not necessarily taking advantage of that. were inompletion rates the order of like five percent or 10%. they were really lousy. i was troubled. i made is very well known. they resonated with this. now we are places where it is about 10 times as high. we are so optimizing and so on.

some people do drop off because the costs are low and they find themselves more busy than they thought. theall, we're getting to point where we match with a good college can do. >> i know you're into artificial intelligence. how does the education industry look in 10 years? how will it be different from my child in 18 years? >> you have a lot of time. the most important change, i wanted to be available to everybody in the world and i wanted to be lifelong. i want to move away from the idea that education is a one-time thing that we do after high school into college. people in their career need more education. is one of thehing great things about the stock. great stuff. >> thank you so much. it is always great to hear what

you're working on. the battery inside your smartphone causing polluted rainfall in china? theofficials are halting mining of one component powering your smartphone. ♪ suing at least one dozen new york banks over potentially admitted committing the libor rate between 2007 and 2011. they're more than a dozen banks being sued by the fdic. this is due to a complaint fouled in manhattan. this is a continuing investigation into libor raking. ebs had to play one point $5 billion in fines for trying to

rig the libor rate in london. now we have bank of america and credit squeeze also being accused. we will be right back. ♪

>> welcome back. buying an electric car may not help the environment as much as you think. he mining of a mineral that powers previous and -- prius and tesla cars is putting air in china. >> graphite is mined. added into theng air. in china you have polluted rain. this is the stuff that goes into

our cell phones. it goes into our laptops. it goes into our electric cars. on the miningck of this. what does it mean for the makers of electric cars and companies that want to bring clean tech? one of the great innovations of tesla was i want to take a laptop battery. lots of them and use them to power a car. >> absolutely. what we are learning here is their is a bunch of interdependencies associated with the supply chain for these cars as well as for computers. we are just starting to learn the impact of the interdependencies over time. there were things that we understood. there is carbon monoxide. there was oil. now we are learning what the upside and downside is is -- is

in this new kind of vehicle. this is not in an significant issue. time i think it will be manageable over time. meantime, the pullback could lead to as much as a 30% rise in the cost of graphite. if you are the maker of a lithium ion battery, a 30% price increase in the considerable -- consumable that use the much means they are going up. >> well done. you are right. absolute amount in real dollars could be significant. eddie percent might be -- 30% might be an aggressive estimate. when you look at a prius, you're the big $2800 install at prices.

you increased that by 30%. that is real money to the manufacturer appeared that israel money to the consumer. -- manufacturer. that is real money to the consumer. yet you look at additional tax credits or some kind of an of the manufacturers. >> in the tesla, you have $120,000 car. you have a company that will not just be a factor to build factories. serious, one of the articles of faith about the tesla is people really believe once they get the battery factory up and they really learn what they're doing, they will bring it down. if the cost of the most expensive thing in the car is going up, that is not suggested price of the overall car will go down. >> let's take it back to tech.

to investel continued in vertical integration. they believe there is value. is driving it heavily into vertical integration. they can control that costs. there is this aggregated value chain. when you can control the costs, you have some options. this is elon musk's vision. he wants to control some of the cost. dates --to in the innovate in a turtle space. >> we are talking about batteries, not semi conductors. moore's law works in semi conductors but not bulldozers. he was talking about broadband. the notion that everything in technology will fall in price by half and performance will double every 18 months does not hold

onlysemi conductors -- holds with semi conductors. you can put a focus on this to try to invest and try to advance the technology faster than it has advanced so far. everyone has innovated around the battery. very few people take on that battery. >> we're glad to see you here. thank you very much. >> cory johnson, thank you. seven years after the television show was taken off the air, "veronica mars" the movie hits theaters today's. junior from the producer next. ♪

story.pdate to a a target is now comment on the

handling of the massive data breach. ignored earlyweek reports indicating the point of sale systems were compromised. target says in a statement to our investigation we learned that after the criminals entered our network a small amount of activity was a logged -- it affected up to 70 million customers. target is facing dozens of lawsuits now. teenage private detective veronica mars is headed to the big screen. fans brought it back to life seven years after it was canceled thanks to a vessel kickstart her campaign. nearly 100,000 people put up $5.7 million. john ehrlichman spoke to the creator of the new veronica mars movie and why he used kickstart

er to raise the funds. >> a friend of mine used to raise $12,000 to fund his 's albums.- band it was the first time i knew what crowd funding was. i backed his project. i learned how crowd funding works. back of theing cocktail napkin math. it seemed crazy at the time. could we raise a couple million dollars on kickstarter to fund our movie? at the time, the biggest project ever was 900,000. we would have been asking for more than twice the largest project ever. it seemed a bit crazy when i thought of it. we cap pursuing it. we got a yes. have thousands and thousands of backers as a result. what do they get? are we going to see a world record of producer credits at the end? wasiving producer credits

one of the things i originally was going to offer. the producers guild of america vetoed that plan. big various things. level wasommon backer $35 where people would get a digital download of the movie, a t-shirt, and a copy of the script. for $50 extra they also got the includes ad which making of documentary on it. and it went all the way up to $10,000 for one backer who got a speaker role. people can donate at the dollar level. they can get all of the updates over the course of the movie. events gilligan on this program. he talked about, has or not them platforms like netflix where people can stay up to date or even do some binge viewing? he does not think the show could have reached its conclusion. your show on television was canceled in 2007/

it continued to have this life on other platforms like netflix. what was the effect from that? >> i think we have more viewers today than when we were on the air. had of the belief that going atnd itunes been full speed that we might have had a better chance to survive. we are one of the shows that does very well in the aftermarket. people are really dedicated to the show. our dvds get bought and rented the downloads happen all the time. we gained a light over the seven years we have been off the air. strangely, or people know about the show today than when we were actually >> on every week. >>there's also a digital spinoff series through the online network. what kind of opportunity desire present?

>> we are going to do a funny, spin-off of veronica mars. it is going to be ryan hansen attempting to get a dick casablanca spin off of the show. it will be very meta-. internally it will be closer to my other show "party down." it will include a lot of lebron um -- veronica mars regulars in it. >> i know you see a potential james bond play but future for veronica mars and all of her adventures. how many films do you think you could potentially do? >> i think we could keep going , kristen bell said she would go until she was angela lansbury age. we may be doing these for the next 50 years.

if they will let us. we are hoping this first movie does well. a low-budget bond franchise. there's no reason why there could be a new veronica mars years -- movie every couple of years. >> i did see one headline that said it is so good you can expect a sequel. everyone dozens of times. the movie out this weekend. time for the bite. >> one number that tells us a lot. how about $30,000? it is the dollar amount being waived. the company got funded. received $25,000 last year. >> a great story. it seems like it is not going really well. people are not staying very long. we do not know what they're actually working on.

have a great wink will -- have a great weekend. ♪

>> from bloomberg world headquarters in new york, i'm mark crumpton. this is bottom line. today, secretary of state john kerry and russian foreign lavrov discussed the crisis in ukraine. college basketball is in the spotlight as march madness it's underway. underway. to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today.