>> live from pier three in san francisco, welcome to "bloomberg west," i am emily chang. a case that could have huge applications for data collection and technology companies. a european court says consumers have the right to be forgotten. it rules against google. small businesses, are they the key to revenue growth with twitter? i speak with the president of global revenue about how small

companies are using twitter to disrupt all sorts of industries. first, a check of your top headlines. journalist len greenwell, who broke the edward snowden story, is launching more accusations against the nsa. in his new book, greenwall claims the nsa routinely intercepted networking equipment before to plant backdoors indiegogo. eimpanies like cisco and huaw say they are not aware of the practice. microsoft has introduced a lower-priced option for the xbox one console. motion not include the sensing camera and costs $399. it brings the xbox one right in line with the sony playstation four, which has been outselling the result's product. google's motorola mobility has introduced a new smartphone. is aimed at emerging

markets and will start at 100 $29 without a contract and be available in over 40 countries. the previous low tier phone, the moto g, is being upgraded to run networks. google is selling its motorola handset business to lenovo for two $.9 billion. our lead story, a game changer when it comes to privacy laws. the european union's highest court has ruled against google. saving users have the right to be forgotten. that means google and other search engines, microsoft and yahoo! included, must grant requests to remove links to information if a person's fundamental rights are harmed. a spanish man wanted links about his 1998 home repossession taken down. with me.son is

this could have huge implications. this is a final decision. case.s is a fascinating the eu is trying to figure out just what an individual's right is. the phrase they are using essentially means "the right to be forgotten." it is a really interesting concept and privacy law. the decision is unforgettable and this could really change the way google works. not just google, there are for companies like facebook. >> google does not have to do anything immediately but if they do not grant your request, you can petition and then they can ask google to take it down. then the fines could be as much as 2% of worldwide revenue. we're talking about enormous implications for these companies, including companies that are still developing the way to use the internet.

let's look at what they said in that decision. locating and disseminating the promises theom an fundamental right to data protection. >> they do not need to erase the article completely, they just have to take the link out of search results. >> it is not clear what they what theo and do wh ramifications are. google talked about these issues months ago. first of all, there are your posts. if you put a picture of gstand,f, like a cakke you put in the nursing picture, do you have -- you put an embarrassing picture, do you have the right to remove that? what is the right you have of your own image that somebody else might put up about you? these things have not been

sorted out. the fundamental difference is a difference in european and american law. in the u.s., we believe the press has a right to publish things that are cruel. in europe there is a french law the right to oblivion. if you have committed a crime that have served your crimtime,u have the right to have that go away and it is no ones business but your own. different from the american standard. >> this could not happen in the u.s.? >> probably not. but it is a different concept. in europe is a different standard that goes back a long time that people have a right to oblivion that is running up against the way the companies are created. >> cory johnson, thank you. twitter and the company's efforts to grow its user base and revenue. mother ship hit 255 -- membership hit 255 million users

during the fourth quarter but its user base slow. the company is turning to small businesses and launching a small business guide to help entrepreneurs use twitter. i sat down with president of ane andrevenue adam b asked how to get more small businesses signed on and engaged. >> it is the really early days for us, we are just getting started in rolling out the small widerss tools to a audience. we started in the u.s. and now are moving from market to market. we just announced the availability in japan to go along with our activity in the u.k. and dublin and canada. we are rolling it out across the globe. we are seeing from consumers is that they not only see and experience content on the platform but it also drives them to make a purchase. we did a study last year that

showed about 73% of consumers that followed were engaged with a small business on twitter, it actually led to some level of purchase activity from them. >> i spoke with facebook's head of small business last week. they are making efforts to reach small businesses. what does twitter offer that facebook does not? >> what we hear from businesses and people is that twitter is the only platform that is live, public, conversational, and distributed. that combination makes a really interesting for a business to connect to their potential customers or current customers. and also engage and eventually sell. when people touch twitter, they are in a different mode. they are in a mode of what is hot, what is new, what is going on and happening in my world. those questions that they come to twitter with, which is essentially what is up, businesses can help answer those. >> do you think live tv to play

a role? >> sure. small business also often times is online tv, they look at twitter as a live platform to communicate and connect with customers. >> some small businesses have told us twitter has not helped me that much. i have not gotten new customers from it or generated sales. how do you respond to that? >> we are just getting started even in the u.s.. we are seeing great adoption from businesses using the platform. real, tangible a example. about a month ago we lashed a lead generation cars. when you see a promoted tweet from a business, sometimes there is a button that says submit or request information. when a consumer touches that button, they're a militant is sent to the business. it is -- there are e-mail address is sent to the business. discovering between

information and a lead for the business. we have a software company using the platform. they saw 3.5 times lived in the amount of lead from the platform. twitter is roi, their number one marketing channel digitally and physically. >> is the goal to get these businesses to spend money on twitter? >> our goal is to get as many businesses on the platform and get them used to using the platform. --have a cool medley to be we have a goal ultimately to allow them to be successful. are amplification tools. holisticallyole even from the beginning. getting them on the platform and telling them how to do it in the right way. it is a consultative part of the business. products,develop our are you thinking about what might be good for small businesses? not just small businesses but

also the consumer base. what we are trying to do, the best product we roll out are a win-win for the consumer base and the business. and we have seen as we have rolled out products. what we think holistically about is what is great for the overall audience at the constituents. >> twitter's revenue growth seems to look spectacular. how do you see that evolving? how do you keep momentum? >> it is the early days but we % growth quarter on quarter. the ads part was even higher. we are thinking about all the other things that we have got teed up for the rest of the year. we made a huge announcement of couple weeks ago with our acquisition of one of the world's largest mobile ad exchange businesses out there. what allows us to do is touch over one billion users friday was an android apps and bring an

ad experience to them. we are working with connecting the dots between the twitter for arm and mopub so marker we can run a campaign on and off twitter. >> amplifying your live tv offering is a big part of the future. how do you see that playing into it? like tv is changing so much, people are going to netflix and cutting the cord. >> we have about 70 content partners that are now using twitter amplify. notntially if you are familiar with amplify, it is our live video experience for premium broadcast providers. if you have got video that appears on tv, you can bring it on to twitter through some special tools. and then we co-monetize that experience with you. it has a distribution area and a monetization angle. consumers get to see content they might not have seen

overall. we know it is helping drive adoption and also to and for the broadcast partners and also as a monetization platform. vision foryour advertising, how does it look different in five years? >> we have started planting the seeds around that, which is we want to touch every single business on the planet. we will not rest until we are done. part of the ad experience on twitter is that content is native and organic to the platform. the ad content itself looks and feels like traditional content. you can reach we a promoted -- reply to aweet or a promoted tweet. we are trying to get businesses to be better at promoting content so it provides value downstream. >> that was twitter president of

global revenue. we will be right back. ♪

>> welcome back, i am emily chang. nearly seven years before apple's head to buy the electronics, dr. dre teamed up with a hardware firm to design a line of headphones. the idea was to create a stylish accessory for mainstream consumers as well as audio quality fanatics to create the perfect sound. createdder of monster 70 to 80 iterations of the sound profile that serve as the baseline for beats products. the head monster, as you like to be called. with me here in the studio. struck ars ago, you deal with jimmy ivey and dr. dre to make headphones. tell me how this came about. >> jimmy was looking for something else to do, they wanted to do speakers. i said the new speaker is the headphone. people do not listen to speakers anymore.

he said let's do headphones. that is how it started. i am an audiophile and wanted to get into making the best headphone in the world. dr. dree, $.50's -- da club"y cent's "in as a sounding board. what part of these headphones are you responsible for? theirst of all, those are new ones. we did not do any of that. the previous studio did everything. all the engineering and design, the sound profile. the real great thing about what bassd, it was getting out of headphones. that is what they have been missing. >> what was it like working with them? >> the most rewarding time in my career. first, getting exposed to the music business and to jimmy, who

is like a marketing genius. .re is a music guy we got to meet all these other people. >> what do you think of this deal? >> i think it is a shock to everybody. i think we have the same questions everybody else has on what the final outcome is going to be. we would like to see it because it really shines light on headphones, audio, high quality sound. an evaluation of what a company could be. >> how much of the $3.2 billion are you guys getting? >> like that. >> zero? >> zero. i wish we could have participated more. we have our own valuation out of it. we are getting lots of good press shining a light on our technology. and the things that monster is doing now. theefore we show off

headphones you are working on, do you have any regrets about the deal you struck with them? you guys actually parted ways in 2012 and they sold more than half the company to htc. why do you think they did that? once, noel, you build companies to keep them, i built companies to sell them. he is in a different mode than i am. business, i amd an entrepreneur. i never took any extra income for all the 35 years we have been in business. it is a passion for me. i never thought of selling my company. not upset about not getting a cut of this $3 billion? >> it is not about the money. it is always about the sound whatty and my passion for is happening in the audio business. i do have some regrets on the lack of recognition that monster

has gotten the past few years after our split with beats. moreh we could've gotten recognition. a lot of people do not even know that monster designed all the productsng behind the .let's look >> at some >> of the headphones you are making now, monster headphones. so special about these? lead ofve gone onto a new technologies. but i designed for beats was pretty much five years old. the new stuff is phenomenal. the sound quality, the impact and dynamics. sound,l it pure monster you get closer to the music. we are reinventing the game. that is for ladies. this is with our collaboration with meek mill and james lindsay, the hip-hop audience. this is our new technology. we have a lot of things going. >> how do you view competition

in the headphone industry? like of people do not beats headphones and think there are better options. it is quite a competitive industry. there are beats, monster, skullcandy. >> there are a ton of products. with beats, kids want to hear the bass. that is why they designed them. i think some of the critics say it is overhyped. fine, if you listen to hip-hop, b," want to be "in da clu that is what you want. our pure monster sound is about clarity. the composition has their own versions. i have yet to find a competitor that can compete with either one of us. >> monster founder noel lee, thank you for joining us and sharing your story. >> thank you. >> we will be back with more of "bloomberg west" after this. ♪

>> welcome back to west co-," i am emily chang. we turn to our "wiring the technology is how changing the retail business. customers might be hesitant to swipe card at target after that a breach. studies show that cyber thieves are not slowing down. cory johnson is with us. we have been focused on target over the last year. a lot of other retailers have been hit too. >> we talk about hacking, it is one of the stingers we like to show. do you remember? i wonder if we would have shot differently if we knew 2013 would be the year of the retail hack. so many retail outlets hit by hackers, whether it's a grisly

chain -- whether it is a grocery chain or others. big retailers. target gets all the attention. the neiman marcus one. nearly as much focus and the congress investigations. there was a jump in the number of attacks in the types of attacks. >> when these things happen, how much does it cost? >> it depends on the mitigation efforts before and after. it is always cheaper to stop it then it is to remediate afterwards. one of the things we saw was the level of increase will lead to more money being spent by these companies. according to a study, there was a 14% rise in the attacks on retailers last year. costing companies $35 billion. these are estimates. no one knows how much is being spent that the concerns of the targets ceo losing his job will catch the attention of a lot of boards. >> that restaurant remains how businesses -- the question

remains how businesses are responding. we will continue our "wiring the world series" later in the show. more "bloomberg west" after a break. ♪

>> you are watching "bloomberg west," where we cover innovation, technology, and the future of business. umblrr after to was acquired by yahoo!, there are questions about whether the acquisition will pay off. the ceo spoke to us from new york. here is what he said about integration between the two companies. >> we have partnered on a few objects. we are working together more closely on how we build content. lots of stuff with katie couric, and powered by tumblr, we are

working on a host of projects. we are on our own path. ultimately we are in control of our own destiny. >> referring to david pogue, formerly of the new york times, who joined yahoo!. karp says tumblr has doubled aboutles force and has 160 spending advertisers on the platform. also joining us from wired is the ceo and founder of a social enterprise top form for marketers. facebook andlike twitter are increasingly competing for marketers' attention, your company helps companies connect with consumers through the power of social media. thank you for joining us. >> great to see you. >> we were just speaking with revenue foread of twitter, talking about how small businesses are using twitter. last week i spoke with the head

of small business for facebook. there are a lot of platforms out there. if you are a small business, how should you approach social and choose where to spend your time? >> retail businesses it is four steps. the where the customer is. est, twitter, facebook, linkedin. step two is to grow your fan start investing in paid opportunities. to youree is to listen customer, hear what they are saying. the final step is to respond. it is an iterative circle. >> how much time would you say businesses need to invest? they cannot just set up an account and hope everything will follow, right? >> that is just the first step. it depends on the business you are in. increasingly, consumers are spending time on the site and

using the sharing and the posts on these sites to make important purchase decisions. businesses have to be a part of the conversation. a difference between facebook, twitter, pinterest, and linkedin? is there anyone that is an absolute must? >> it depends on the business. they have emerged to really occupy different places on the social web. just like there was not just one internet company that won out, there were several. the same thing with these few networks. >> how do they decide where to spend their money when it comes to marketing dollars? where would they get the most bang for their buck when it comes to advertising? >> i think we're seeing a lot of businesses, both small and large, fortune 500 organizations, continue the shift in spending from off-line to online. with an online they are still doing a lot with google. they are starting to experiment more and more and seeing great

results on social media. f-8 conference last week, facebook's investment in the mobile ad network underscores the power of social combined with mobile. >> how do you view facebook's mobile ad offering as different from twitter? a different audience and it is a different interaction mechanism. ath business needs to look where their target customer spends time. it might be multiple sites, in which case they should start with one and experiment and then continue from there. you can compare the results from one versus the other. >> pinterest is just rolling out paid pins for the first time this week with a select group of brands. do you think these are going to be questioned when it comes to pinterest people have been trying to get in the door, pinterest has not been

ready. very wise of pinterest to focus on their user base and go from there. the brands that are launching this month are very exciting. i am curious to see how gap, disney, etc. will perform. it reallyins, underscores the maturation of social business. the fact that consumers want to interact and have been interacting with brands they these websites. its base to the social nature and also the importance of customersual experiences online. >> what brands do you think are doing social well these days? so difficult to compare. every industry has their leaders. i am biased, i think starbucks does a terrific job. is partgap, lululemon

of the pinterest launch. those brands are cutting edge. they are willing to experiment and it goes to show when it comes to innovation you do not always get it perfect the first time but you start to build muscle memory and eventually it becomes part of the organization and the culture. of hearsay from new york, thank you so much. beauty bloggers flock to social media platforms to raise about their favorite products. how do the brands turn digital chatter into sales? watch as streaming on your phone, tablet, bloomberg.com, apple tv, and amazon fire tv. ♪

>> welcome back, i am emily chang. blackberry unveiled a new phone in indonesia today. it will be available exclusively in that country, where the company is still having success. john chen spoke with bloomberg

tv interview show about whether blackberry will be releasing any tablets. >> eventually in the market we will have to do something. i think you will see from us a fablet sooner than a tablet, in my opinion. by the way, i like both. my enterprise focus, there is a place for a phablet and a place for a tablet. >> blackberry is producing the z3 in partnership with foxconn, that chen says gives the company the ability to compete in emerging markets. back to our "wiring the world" series. a more connected world is changing the retail industry. letal social platforms

beauty bloggers share products and tips. how do brands turn content into cash? so far is tackling this challenge. a website allows users to upload photographs and tag the products they used to create their looks. sephora's vice president of interactive media joins me in studio. we were talking about how this used to be your night job. sephora said we have got to focus on digital. many moons ago, about six years ago, sephora was launched on all the social media platforms and trying a lot of different things. our clients were clamoring to speak with us. they love posting about beauty products and asking us a lot of questions. we realized this was a real thing for sephora. we wanted to answer those beauty questions. in the evening, my boss, cmo of

sephora and i would respond to science. we realized we needed to focus and create an interactive digital group and focus on social media. >> there seems to be something special about beauty products that makes it a particularly -- a subject people love talking about. you have got people posting pictures of themselves and their makeup and asking questions. is there something particular about the beauty community? this is like sales gold. >> makeup has always been a natural conversation for women. women can talk about makeup in the ladies room, anywhere they are. women really come together and bond of her makeup. especially at sephora, women can speak and talk to each other and our experts in store. >> how do you translate into sales? >> we have found that our clients love creating these beautiful looks and sharing them

online. they were doing that on instagram and sharing on beauty talks, our beauty community. we found that the number one question is what are all the product you use, not just may be the one. that on a lot of platforms. we created the ability for a client to upload a photo and tag every product be used, it might be 10 products. that can show someone how to create the look themselves. >> can you give us any sort of before and after numbers? before the beauty board, if you saw a bump? >> one thing i think it's fascinating is that our clients, 55% are tagging product. 6 products or more on every photo they are uploading onto the board. if you think about social media, you can typically link it to one spot. definitely a fabulous way that we have increased the

number of products people can focus on. also the fact that mobile has been such an instrument to clients. they have their mobile phone and photos that i can upload so easily and now the contact products. we have seen 60% of views on 45% of photos uploaded from mobile devices. >> to any products do better on social? >> anything that pops, it is the 3.an decay naked palletette >> that is specific. >> nails and lips are the other two categories clients can demonstrate a beautiful nail art or look on their lips. >> you are harnessing beauty influencers, describe that term for me. linkedin likes the same thing, influencers. >> there are women out there who

have gained a following. it is amazing how many women can create absolutely brand-new looks every week and show people how they are doing it. these women have immense followings and they are now coming onto beauty board and showing their fabulous looks and tagging every product. women really love helping other women. >> i love talking about makeup. this is a fun one for me. presidentsenior vice of interactive media, thank you so much. check out their beauty board online. beaging creative workers can an art form. we asked yahoo!'s chairman maynard webb about the science behind that art. watch us on your tablet, phone, and bloomberg.com. ♪

>> welcome back to "bloomberg west," i am emily chang. the banker who helped take twitter public is leaving goldman sachs. he was the cohead of the first technology media and telecom group and was the top-ranked analyst in the internet sector from 2003 2007. over the course of his career, anthony has made a contribution in growing our franchise and has been a trusted advisory to a number of clients and played a central role in several industry-leading transactions. noto is joining a hedge fund. time for our "office hours" segment with yahoo! chairman maynard webb. he currently sits on the board of salesforce and visa. this week we focus on managing creative talent. as well.son is with us always great to have you here. creative talent, how is that

different from other town? >> creative talent likes to be free and challenged. you have to give them something unique to do. they are notoriously difficult. someone is called creative in the workplace, it is code for pain in the butt. to bellenging and wanting inspired. in many ways, a lot of our workforce is more creative today than they had ever been and they went to be inspired and challenged. they do not want to be told what to do, they want to find their own path. even more so with millenials. to managingomes them, how are you supposed to manage them without giving them more priority than everyone else? >> first of all, i try to give them hard things to do. i try to make sure they have something really meaty to chew on. i make sure there are checkpoints along the way. it is not ok to just not deliver something.

we spend time up front making sure everybody agrees on what the end goal is. then i let them find their own path a little bit. it is an art form. some people, when they tell you i'm a trust me, you cannot. some people when they say trust me, you should check more. >> a technology company who qualifies as a creative? is it a designer, can a product person or engineer be creative? >> all three of those can be. and business people as well. all of us are wired differently. some of us like to respond -- i don't know if you are familiar with myers-briggs personality types. some of us like to find our own way and set our own path. some of us like to have structure and say i will deliver this by this time with checkpoints all the way through. it is really trying to manage everybody based on what works best for them. >> i always thought creativity, creating room for that falls

with managers and not with talent. hases i have worked that been the most creative, all of them shared a similarity where all of the people on the team would sit around a round table and talk about ideas for hours and go back to them week after week versus one stupid couple paragraphs. people would say you have hired creative people. it is about a creative process. space forng the creativity and letting people find a way to deliver what they are called to deliver. i do not think it is about -- by the way, i worry about words. when you say creative people, that does not mean there are not creative people. you have to channel people's energy to do the best they can do in the form with which they most are inspired to do it. you have to make room to let people do it their own way and let them create a

path to get to your objective. object is upfront and being clear and then saying so how are we going to do this? >> can you use an example of an occasion. this is mushy stuff. >> an example from when i started at ebay, it was not a great time for creativity. the site could not stay up so it was a site for getting stuff done. i asked when do we hit the wall? i know we cannot keep the site up, when do we hit the wall on growth. they said we have never been asked that. i said how about we get an answer. they said we have three weeks to live. i said time to get creative, what do we do? update?the next 18 months. that will not work. we found a way to do a lot of things, tune, tweak and go crazy. >> in that case it was thinking

of a creative solution to the problem. >> in that case it was shear terror. >> what is the alternative management choice someone might have made that would not allow for creativity? in a creative situation, you said here is the goal, find an answer. someone else would have done what? >> people will say here is the goal, here is the way to get there and i need to micromanage you every day to make sure you have done what you're supposed to do. often that turns people off. they want to deliver but at the same point they want to work and they want to work, maybe they want to work from 8:00 at night to 2:00 in the morning. if you tell them you are going to be here at six in the morning because i need to see you and make sure you have made progress, they not going to work so well. foraynard webb, thank you joining us and sharing your life lessons in our "office hours" series.

great to have you. it is time now for one number that tells a whole lot. jon is with us from l.a., cory has the bite. 544,6000, the revenue of michael jackson's music. >> just in 2012? >> michael jackson, even in death, killing it financially. >> three years after passing away. speaking of being creative, here is a day where there is a new michael jackson album and some well-known producers were brought in to take stuff we have never heard before and make it popular. to cory's point you have a ld that isuable wor michael jackson and you don't want to mess it up. it will be interesting to watch the performance of the album. >> you have so many artists

using debt to manage finances. if you look at a business like michael jackson's, it shows that those are some big numbers. >> since you are sitting here i'm going to ask, can you put a price on creativity? should creative people get paid more? >> absolutely. >> how much more? >> a lot more. >> is it a measure on a contribution to the team or everything? >> everything. creative people that get things done should get paid more. >> i should get paid more than cory. yua [laughter] l.a., corychman in johnson, thank you to everyone for watching this addition of "bloomberg west." get all the headlines at the top of the hour on bloomberg radio and all the time on

bloomberg.com/technology. see you later. ♪ .

>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line," the intersection of business and economics. with a main street perspective. for the latesth treasury secretary tim geithner looks back at the financial crisis. and continuing coverage from the wired is this conference. to our viewers in the united states and to those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. peter cook