>> welcome to "bloomberg west." i am emily chang. raises more money at a valuation higher than the entire hyatt hotel chain. users breaking the law? he take you to tribeca as we kick off a weeklong series about how technology is changing the entertainment business.

is ramping up its competition with google fiber and other high-speed internet providers. at&t is launching a major expansion of its high-speed service, and will bring it to 21 major cities. power our -- giga delivers speed faster than standard web access. 's purchase of "how stuff works" did not work out well. the company sold it last night at an 82% loss after buying it a year ago. discovery will still provide advertising services to the site for the time being. its $7.2 billion acquisition of the nokia handset business will be completed this

friday. microsoft is going to manage the nokia.com domain and social media sites after this year. microsoft will not acquire nokia 's korean factory, which was originally part of the deal. air b&b closing a new round of funding, raising more than $450 million, according to multiple reports. that values the home sharing site at $10 billion, more than established hotel chains like hyatt. there is a legal fight. the company is set to appear in , to answer art subpoena for information about people who may be illegally renting out their homes. the subpoena was first filed this fall. by a bloomberg contributing editor in san diego. paul, what is your initial take on this $10 billion valuation?

higher than many hotel chains. higher than home away, which is a public company. >> i think home away is the more useful valuation. hyatt hotel chain is the one everyone gets caught up on, that the wrong way to look at it. hotel chains are punished for all sorts of reasons, not least of which is all these competitors emerging. a more interesting way is to look at other marketplaces. ebay, a marketplace that does not sell hotel rooms. they buy and sell all kinds of other goods. around a $70 billion market capitalization. these are better metrics and help suggest why people are willing to pay these kinds of prices, and i think that is the right way to look at it. getting trapped in the mindset of saying this is more than hilton or more than something else is, i think, a narrow way of looking at an emerging market.

>> we have been talking about high valuations. very high funding rounds. a ridiculous amount of capital flowing into the tech market. >> they are tapping into this idea of, how can we share what we have? how can we make money from stuff we are already investing in? y'all all have apartments. we all have cars. by rentingbenefit them out. use our car when we are not otherwise using it. use our apartment when we are going to be away for the weekend. force, very disruptive which is why you are seeing two things. really, really high valuations. iscan debate whether this lofty or not, given some of the pressure on the nasdaq and some of the stocks we talk about all the time that are publicly traded. i think it is a worthwhile debate to have. it is disrupting existing media right now, whether it is hotel

chains, apartments. all of these things -- there are a lot of legal battles. huber --uber.ith anytime someone wants to change the ways things have been bought and sold for so long, the incumbent industries have no reason to innovate. they are making them do it. legal troubleing in new york, san francisco, portland, oregon. do these things bother you? air b&b gave us this statement, saying the government accuses them of being bad neighbors and bad citizens. it will call us slumlords and tax cheats. they might say we faked the moon landing. that is ok. we know the truth. does that bother you? >> think about what amazon went through. for years and years, it pretended it did not need to collect sales tax, a cousin it

was not really in your state. the law is the law. eventually, they had to develop a process to collect taxes in the states where they sell. the same phenomenon is happening to uber and will happen to air bmb. you get to play the coy game for a little while, and then you stop. that is part of maturing as a business. when i get upset is where it turns into some kind of restraints to trade. entrantsreventing new to the market, instead of saying, play by the rules. like you are saying the valuation talks do not bother you that much. >> you could come down a little bit, but their timing is impeccable. right at a very crucial time. nasdaq, questions about what is going to happen to publicly traded companies, you are not going to see it show up

in private valuations. there is a bit of a like effect. there are questions about whether these are warranted. their timing is impeccable. they are probably not going to have to come right back into the market anytime soon. we are going to be to the earnings and find out whether the nasdaq declines will be as long as we were concerned about. >> a big takedown in the wall street journal about square. toing to sell themselves google and whatnot. square has denied any acquisition talks. that they lost $100 million last year. losses are widening. profit margins are slim. he lost $20 million on the starbucks deal. what is your take? >> i think square is a troubled business. i am disappointed they have not received more skeptical scrutiny. we are beinguse

hard on jack dorsey, who was being deified last fall, but because of the margin of the business. when he percent of their fees, --ch are only about 2.5% only a 10th of it goes back to square. the more volume, and the more money they lose. it is a difficult business to sustain a small business on current margins. that does not go away. you either change or marketplace or end up being acquired.

>> facebook may be about to launch its own mobile ad network. the social network is offering a database of user information to market to users. facebook could reveal its new ad network at its developers conference later this month. we know facebook has been testing something like this. what would a new mobile app platform look like for advertisers? by the owner of a company that makes technology that helps target users with

ads. how is this different than what already exists? >> today, you cannot currently use what facebook knows about its user base, aside from targeting all facebook owned properties. the website, the abs, and anything they control. as would allow them to create partnerships with third-party app developments -- app developers, and serve ads sold through the facebook ecosystem. facebook would presumably share some revenue with the app developer. details of the program have not been shared. it would be speculation. >> google has been doing this for some time. >> that is correct. even if you look further back with adsense, it was a similar project. -- concept. advertisers were flocking to google to be on the google.com search engine. google thought, all these advertisers are trying to target based on what we know people are doing in their search behavior.

why don't we allow any website publisher to put on and on their we willmarket, and share some of the revenue generated by the ad? facebook is presumably following a similar placement. >> twitter is doing it as well. how does this change the broader landscape? >> every marketer right now is trying to figure out how to solve this problem that consumers no longer have a single computer and research and by, and do everything from that one place. be find oute may about something on facebook, their desktop machine, at work. and then they might be on the facebook app on the bus ride home, and see what their friends are doing there. and might go on a tablet read product reviews. that is a challenge to a marketer that now needs to we've all of that information together

to understand where their users are going, how they should target them. once they do spend money across the different devices, what is the result? what impact did it have? a big trend in the advertising technology space, trying to solve the problem of identifying who people are on one device, targeting them across many devices, and tracking that back. >> they just add -- you just raised 70 million dollars in funding. how are you using that money when it comes to building and developing technology to improve the targeting of mobile apps? >> a big part of us raising such a healthy round was around solving that exact problem. it involves collecting data across multiple devices, being able to integrate with different ad formats, from platforms. launch month ago, we did

our first mobile ad product, which involved identifying users on a desktop device, and being able to reach them across the most widely used apps on the internet. kind of chipping away at that. us, more resources behind continuing to expand upon that and expand the problem for marketers. >> some of the public companies like rocket fuel and millennial media are struggling in the public markets. how are you different? and expand the problem for marketers. > it depends on the time horizon you look at. ipo'edk at where they and where they are today. it shows a generally positive trend. we are still early days. i think back even six or nine months ago. were havingtion we with marketers around but mobile strategy is has evolved so much. marketers are figuring out

ways they want to engage with users on mobile devices. they are building applications. they are developing the metrics toy need to figure out how drive people to different properties, how to reengage people once they install the app. marketers are just trying to figure this stuff out. it is becoming a must-have piece of the marketing toolkit. about trying to keep people engaged on those properties once they are there. >> thank you for joining us. from tragedy to triumph. marathonved the boston bombings and decided to follow her dream of launching her own business. ♪

>> runners in boston are crossing the finish line today in the first marathon since the deadly bombings last year. amanda noris was one of hundreds of victims of those bombings. noris had worked in technology for more than 30 years, including a stint at apple. but after surviving the marathon bombing, she decided to follow her dream and start her own company. the technology editor joining me now in the studio. this is such an inspiring story. a woman went to the marathon to cheer on her daughter. she was injured in the process and decided to make a major life change. from thes 15 feet away first bomb and ended up helping somebody who would ultimately lose her left leg. she subsequently credited amanda with helping save her life. it was hours after that which

amanda and her daughter reconnected in the hospital. we were not able to reach each other. i did not know if the other was alive, if they were ok. also it's of calls to family members to make that connection happen. when that did happen, when they spoke together in the hospital, her daughter referenced the fact their lives would never be the same. that is what led her to answer the question. >> she did that right away. in a year, she has started her own company. it is former chums abroad? >> she is a -- for merchants abroad? traveler whoorld understands the artisan business really well. whether you are a basket weaver make rugs inor bolivia, she has talked to a lot of these people and gotten them to understand the businesses. they have a finite market in

their own company. -- their own country. they have not been able to reach broader audiences. she understands marketing in the u.s. if she can bring this business that only exists in developing countries to the u.s., maybe there is a marketplace. >> and she is in boston today? runningaughter is again. she will be near the finish line, although not the exact same spot. >> they kept in touch. and erica has provided immersion support.otional >> they keep in touch. erica is a big and duration. amanda says she is constantly reminded of the challenges of that day. she encounters the wall entrepreneurs naturally hit as they started their business.

they are dealing with margins all over the world. >> such an inspiring story. runners are crossing the finish line in boston today, a year after the deadly bombings. ♪ >> it is 26 minutes past the hour, which means bloomberg tv is on the markets. check out where we are trading. if we continue to hold, it will be the fifth straight day of gains. the dow jones adding about 30 points, 16,438. two stocks we are keeping our eyes on today -- talks to merge the largest gold miners broke .own amid minor disagreements the companies were said to have agreed to an all stock merger, as they plan to announce this week. the merger plan was said to hit a snag. they failed to come to complete mines to on which include in a spinoff.

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>> you are watching "bloomberg west here go -- west." like boxes have been in the headlines as the search for flight 370 has gone high-tech. that makes black boxes, in addition to turbines, is honeywell, which has been a pioneer in aviation technology and invented the use of autopilot on flights. they hope to bring connectivity worldwide by 2015.

we are joined from the headquarters in phoenix, arizona. bob, thanks for joining us. we will get to the malaysia investigation in a moment. first, what is the cutting-edge in aerospace right now? what are the most exciting things you are working on? >> thanks very much for having me today. it is a pleasure to be on air. there are a lot of things i am excited about, and we do not have time to cover it today. i think we have great trends at our backs. we have conductivity of aircraft, reducing this island where we do not have connectivity in the world on aircraft. being connectivity to the caught it and the aircraft, changing way we fly -- that is a big part of what we are doing. hybrid technologies -- we are trying to introduce free taxi capabilities, using electric power as opposed to waiting for a time. -- for a tug.

i think that will change the way people have experience on a commercial airliner. >> you have new jets, the airbus 350. you have been working in drones since long before companies like google, facebook, and amazon got interested. what do you think about their new interest in drones? , unmanned that uav's aerial vehicles, will change the way a lot of flying is done in the world, whether defense or commercial applications. we have figured out different ways these unmanned air vehicles can be used, that there is a lot of technology we can apply. autonomy, guidance, capabilities that require or allow these aircrafts to fly, are going to be vital to how they operate in the commercial airspace, which is an area we have a lot of capability in. we are very bullish on where

those are going to go. i think the things we have to work through our around, how do you certify these and operate them so you do not run into things in the commercial airspace? and how do we make sure they are absolutely safe? a 40 pound vehicle falling out of the sky would be a bad fink to happen for a lot of people. we have to make sure the safety regulations are there. >> i do not need a drone crashing into my house when it is trying to deliver a package. on that note, in my interviews with other experts, it sounds like drone package deliveries or connectivity connecting parts of the world is very far off. how far out are these things happening on a routine basis? >> i think this is one of the comeology areas that may to the left as opposed to go to the right. i think there are a lot of technologies we will see that will allow

people to have a uav. i think people will be able to get those in the relatively near term. what is going to be the utilization? how do we make them safe in a commercial air market? >> i know you are involved in the malaysian airlines investigation and cannot give us the specifics, but black was -- lightbox technology sounds to the layman as outdated. why not upgrade to something better? >> i would say the sophistication of those black boxes is quite high, if you think about the environmental conditions i have to go through. it is tremendous. we have to certify them underwater. we have to have none survived huge g forces, really bad heat and other conditions you would imagine them going through an impact. when we find these boxes, they

are flawless in terms of their performance and getting the data off. i call you back to the air france 477 flight from brazil to france. we found the box two years after being underwater. got toflawless and we the bottom of what happened in that investigation. the technology is quite sophisticated. wherer area in terms of we may go next is, longer battery life. and what is the connectivity solution we really need? in the particular 370 case, we came into one airspace had a bit of a different environment than you see on most routes. it did not have the same radar coverage you experience in other parts of the world. i think we are going to learn from this investigation about where we want to go next with the technology. >> and longer battery life is something that could have helped , because it would have been singing for longer. for longer. is that correct?

>> the thing is, we do not know if we are over the site. it may have been operating for longer than its design life. we just do not know where the debris field is. that is part of the investigation we will have to keep following. ask bob smith of honeywell aerospace. thanks for joining us today on bloomberg. still ahead, we will begin our special series, wiring a world of entertainment. is changing the business of hollywood, including some festivals. and we are streaming on your phone, tablet, apple tv, and amazon fire tv. ♪

>> technology is changing the movie business, from 3-d filmmaking two new distributors like netflix.

all this week, we are going to be exploring hollywood's tech evolution in our series "wiring the world." jon erlichman is in new york this week and joins us from there. give us a glimpse of what we will be seeing in the series this week. >> i think that when you talk to the creative types, the storytellers, the filmmakers, the producers, they are excited about the technology that is available. the biggest question becomes, what are the technologies that are practical for use? you mentioned 3-d, an area where we saw explosive growth. we also saw film makers pull back after some of the early 3-d films. even with things like virtual reality, you have directors like james cameron who are already saying they can use virtual reality in a bigger way. we saw facebook make a splashy announcement in that way. we willat is something continue to focus on. also, things like google glass.

we have profiled students at usc who are now, as part of their curriculum, trying to see what is possible, what kinds of different projects they can launch that would be using something like google glass. there is a lot of opportunity out there. we are going to focus on those various things over the course of the week. >> let us compare that with the changes in the movie watching experience. >> a lot of filmmakers and producers will say, the end of the day, it is about good stories. that is true. but there is no doubt that new technology and new platforms allows for the story to change in some ways. we talk so much about netflix. we talk about binge watching. there are great examples and some of the shows that have been successful on those platforms being successful because people can gobble them up all at once. tot is being factored in future productions that are taking place. that is definitely a big theme.

>> when it comes to movie financing, things like kickstarter have had some impact. isn't making a big impact in terms of how movies are funded? or is that the exception? >> i think we have to see how some of these films do. a toneronica mars, raised of money on kickstarter. but we are still waiting for some of the other movies that are going through that process. everyone from spike lee to zach braff have shown excitement about going to platforms like kickstarter to raise cash for films. are in new york this week for the tribeca film festival. big focus on technology there. what are we going to see? >> tribeca >> to use the festival as a way to highlight new technology. they introduced innovation week to hammer them home. the president and ceo of tribeca enterprises is here. good to see you during a busy week. there are so many tools that

storytellers have at their fingertips today. what are they gravitating toward? >> i think you are saying adoption across a range of platforms. we ran a contest over the last couple of months with interlude, interactive film making technology. renderslly brought the -- the winners to new york. we had submissions from over 26 countries. you have the makers across the world who are willing to adapt brand-new technology. 125 million videos ended up being submitted. >> when you give filmmakers a few weeks and put this new technology out there, the fact they were able to adapt, and none of the winners were from the united states -- it was incredible to see this global search of production of technology.

>> as far as the big names in the business, some seem as comfortable with hollywood blockbusters as they do with new ways of disturbing films. joss wieden, a very well known name, working on the next film, is comfortable with hollywood movies. he is also comfortable with making a film for five dollars on video. for $5 on vimeo. >> it is totally disrupting the way people are used to having films distributed. >> what about when people are watching films? we have spoken about new technologies allowing for filmmakers to offer multiple endings. there was a time when multiple endings meant going to the theater and seeing the movie "clue." you would all share one of those endings. does he get complicated for the filmmaker to know it? if there is too much choice, do

they want the shared experience? >> it is knowing how the audiences are going to adapt to this. we have a great program with bombay sapphire. these new forms of storytelling, many of which have some kind of filmed portion. a physical experience in a gallery setting. we have one called "choose your own documentary.." we are still figuring out how audiences are going to react. back andt want to sit watch something passively. others want to be more active in their viewing. a filmmaker who is committed to the next generation , but there is a traditional way of getting paid, if you are selling something that ends up on television, selling something that ends up in a movie theater -- if the link is different or the interaction is different --

that is not something we would traditionally see on television or on the big screen. what does that mean for how these end up getting paid? >> it has not taken root. we do not have a lot of clarity on that front. i look at filmmakers like eddie burns, who has come numerous times. he was one of the first to go to itunes directly, the same way josh wheaton is doing now. wheedon isden is -- doing now. it is reallyms, important to control your costs, control your investment, and hopefully give yourself the option to take a little more

risk when it comes to distribution of your film. it is really important to control your>> a wl roth, says he wishes he was starting out now. there are places you can make a small film and get out there. netflix is very hollywood now. they are going after the biggest content, the biggest original shows. does that result in some independents-- getting pushed pushed to the side? >> vimeo is a good example. years ago, everybody was talking about netflix. the reality is places like vimeo and youtube, there is a lot more discussion. we have seen opening up short-term film storytelling. these are companies using the ecosystem, using the video platform. i think that is partially a result of companies like netflix and amazon may be moving to the

established. >> disney went out and acquired maker studios for a lot of money. what message do you think that sentence? -- that sends? >> everyone is looking for new voices. it is about aggregating audiences. it is about scale. there are talent on youtube that have millions of subscribers. we launched a program called tribeca now that is not just showcasing films. it is showcasing serial content, web-based shows. that is where we see a lot of the great new stories. emily, i will send it back to you. physicists could predict cyberattacks before they happen?

>> using technology to predict security threats may sound futuristic, but one san francisco startup is turning to data analytics and crowd sourcing to do just that will stop the aggregate data about potential threat indicators from across the internet, and created a platform called optic that allows companies to share cyber attack data without revealing business practices or even company identity. thanks for joining us today. can helpour technology prevent attacks before they happen. how so? the first cyber threat sharing platform available in the sharing -- in enablesate sector that sharing of cyber threats, breaking down organizational barriers. this allows them to do that in real time by providing control

and the concept of trusted circles. >> how exactly does it work? >> i have a demo. platform,og onto the in the typical scenario, the ceo of bank of america would get a phishing attack in an e-mail account. they would upload it to the platform. they would select whether they wanted to do that public or private in a trusted circle. i will share with my financial services trusted circle, made up of citigroup and j.p. morgan. analyze the threat and share it with the organizations that belong in the trusted circle. we have talked about this issue at length. i sat down with the chairman of the house intelligence committee

to talk about the benefit of information sharing. >> remember, the government is not on private sector networks, so they miss a lot of what the chinese are doing, the russians are doing, when they are trying to steal information, what the iranians are doing on private sector networks. robust sharing of only those threats can go a long way to get the private sector to protect itself. >> how receptive or companies to share this information and to actively get form your software -- get on your software and take the steps needed to share it? >> after events like target, the compromise, organizations are starting to have the shift. if they do not start sharing cyber threat's -- threats with their peers, they will never get

ahead of cyber criminals. it is going to all organizations. >> give me an example of an attack you saw before it happened. >> absolutely. one of the most recent attacks you might have heard about in the news is the heartbleed attack on the encryption that powers the internet. you can watch you is attacking heartbleed in real time across the entire geo map. >> what about when you guys detected something? >> we have many customers that use our platforms, such as facebook. they share cyber threats with each other on a daily basis. they can use firewalls to block these attacks in real-time. >> the ceo of threatstream. >> thanks for having me.

>> it is time for the bwest byte, one number that tells a lot. >> i have 48 million. that is the total number of subscribers for netflix or around the globe. the company will be reporting its latest results. that was the math they shared. the expected $36 million in the u.s. -- 36 million subscribers 12 million, overseas. the more people they can add to -- theyice, the fewer are getting free trials, so the more subscribers they can have, the better. get all the you can latest headlines at the top of the hour on bloomberg.com/technology. ♪

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>> from bloomberg world headquarters in new york, i am mark crumpton. this is "bloomberg bottom line." today, vice president biden visits ukraine. amid tight security, an american wins the boston marathon. versuse or break case t.v. broadcasters. to our viewers in the united states and those of you joining us around the world, welcome. we have full coverage of the stocks and stories making headlines. we have a preview