lex live from pier three in san francisco, welcome to " bloomberg west. emily chang. at&t struck a deal to buy the satellite provider for more than 48 billion dollars. facebook just celebrated two years as a public company. we look back at how they have changed in that time, including a dramatic the mac and mobile. of the topk headlines. john chambers has written a letter to president obama asking

him to curtail the nsa surveillance activities. greenwald after glenn alleges in his new book that the nsa is hacking into networking equipment or overseas customers. he writes if the allegations are true, it will undermine confidence in the industry. we last him about this when he joins us for a live interview this wednesday. the new decision requiring search engines to remove certain links is already having an impact. an increased number of inquiries from citizens asking how to get information removed. google youtube looking to acquire twitch for $1 billion. this is according to multiple for more -- reports. deep fields says twitch requires

peak internet traffic than amazon and hulu. back to the lead story, at&t hoping to become a bigger player in the video business. $48.5 billion. the directvm over closing price. in a statement, randall stephenson says a unique opportunity that will redefine the tv industry. mobile devices, td, laptops and even planes. the cash deal is expected to close in a year pending government and directv approval. partner at media tech capital partner, porter bed and

editor at large, cory johnson. are from a done deal. hurdles togulatory overcome but what are the significant implications of this? obvious business needs for at&t. this is a significant impact for the satellite tv business. this could put directv in a financial hurdle -- a very different financial position than the competitor, dish. it has significant impact from satellite-tv business. is still an outline question of bandwidth and what kind of been with might be repurposed. a lot of the deals anywhere near the wireless sector right now. any deal that might possess stand with is narrowed down by

the big wireless companies. to do is at&t bothering this? is this a good or bad movie? -- move? question. a good randall stephenson has failed to build out at&t from the wireline base. at this from a hail mary, not a lot of strategic sense. less than 3 billion per year. that will not do much to secure the dividends at&t offer shareholders or provide them with capital to the bandwidth. it is all about spectrum.

>> i think it is interesting time right now and companies are trying to figure out a new world, a new way people consume media. things in ao offer way you can use it is changing the way companies have built businesses. are built businesses through a lot of capital expenditure and debt. it changes the ability to navigate when the world is changing around them. >> put this into context in terms of the bigger picture. trying to buy time warner. sprint making a bid for t-mobile. t-mobile.ng to buy how is this all revolving?

video rightcape for now is trembling and quaking under the major providers. pay-tv is basically a legacy business. of -- by appointment whether it is television video or movies, there was not a lot of sense and what at&t is using as a major rationale for the business. they are saying it gives us more leverage with the content providers. that is not going to happen because the business has fragmented so much. it is not the same business it was a few years ago. >> should we be worried about the pay-tv business? >> the consumer union came out thety quickly to point out

customer service lack of appreciation for at&t and four directv, as well as the price going up higher, even as customer service has gotten worse, and i think that is a real concern for consumers. onthis mrs. spend so much acquisitions, they will be further stretched but will face less competition. raising prices. you have watched these deals so much. what is going on at the fcc that the company think they can get the deals through? right now there is a lot more resistance at the regulatory level then i think anybody, especially comcast for the size and administration of congress

to farewell. will probably go they areuicker because totally different businesses. they are not overlapping, shrinking. the fcc has no policy right now. a are without any direction. basically they are about 10 years behind in terms of understanding the technology driving all of this. at&t made a big announcement that street before they announced direct. are plunging into the cloud and wireless. if it concludes it will be $67 billion. why wouldn't they put that kind of capital to work in wireless and become the dominant player? that is where this is all going. bed, managing partner

at media tech capital partners and cory johnson. thank you both. two years since facebook a buell on the public markets. we have the timeline of the social meta-public life next. ♪

>> i am emily chang, and this is on bloombergt" television, streaming on your tablet, iphone and bloomberg.com . this week marks the second anniversary of the facebook ipo. just the beginning of several up and downs for the network. we take a look back at the timeline in the public eye. >> may 18, 2012, facebook makes its debut on the public market. a rocky first day when they aose at $28 apiece getting

104 billion dollar valuation. less than four months later the share price plummets hitting an all-time low. then in october, a milestone. the social network sees one billion users. facebook shifted opus to mobile and introduces snapchat rival. mark zuckerberg tries to buy the makest the snapchat ceo it 3 billion dollar offer disappear. one year in the public life. home gets mixed review. in mobilewever run advertisements with mobile advertisement soaring to 1.3 billion dollars by 2014. then there is the acquisition million dollars on branch. $19 billion on whatsapp and $2 billion on oculus social reality. it all adds up to a rebound. shares reach an all-time high on

march 10. just in time to celebrate mark zuckerberg's 30th birthday and the end of facebook second year in the public eye. on the two-year anniversary as a public company i want to bring in my roundtable, cory johnson. here with me in san francisco mark mahaney. and former facebook ownership the ceo of currently artillery. currently thelfe. ceo. thank you for joining us. facebook for four years. you left before the ipo. has anything that has happened in the past two years surprised you? >> i think the company has changed a lot. only 40in there was million users. now there is 1.3 billion. with that comes a lot of

organizational change. i think as a publicly traded company there were things we did not prepare for that investors really look for. >> it was rocky along the way. think it is still moving in that direction. >> i think so. the biggest thing we have from the beginning was mobile. once they showed they could make -- generate material revenue and continually improve the user interface and grow the users, that link the list of things, once they got that figured out, the stock took care of itself. we think there is plenty of growth ahead. and markrstand you zuckerberg have been friends since very early on. zuckerberg hasnk done right the past few years? >> he has done a lot of things right.

the rapid flight from web to mobile. more than anyone else has transmitted that to increase revenue for the company that has now far outpaced the revenue. and most importantly, done it in such a way that has not curbed user experience in any way. the second thing that really surprised me is facebook appetite to make large acquisition to prepare them for the future. comes to how far facebook has come, what do you see as the biggest strength and warning sign? the grown-up way the company operates. i also think they have been really clever doing a lot of things behind the scenes, not just the way they architect servers that are really brilliant, but the way the company has used acquisitions

and built an advertisement network holding -- using the awayook logon and getting from the analytical tools so they have created a network that goes well beyond facebook. goes even further to help really understand how users are using the web, and putting advertisers in front of this users that has become that brad burke -- fabric of the internet. as a result they are in the driver seat to really control the way marketing happens online. ofwhat about the idea facebook staying in the same cohesive company it has been amid the companies it has bought and mark zuckerberg claiming they will do this? >> i think they have seen a lot of the companies will probably run independently. instagram is an example.

>> does it worry you all the money he is spending on this? i know it is paper money but still a lot of money. >> cory made that distinction. facebook has had to do three acquisitions. instagram and whatsapp. all those in a way to defend the core user base. flags about the ability for facebook to grow long-term. they be this will require a multibillion-dollar acquisition. google did not have to do that. there is a lot of acquisitions that they are making. does that mean it cannot work, but that is the risk. >> i think we will talk about that more. >> stick around, we will be right back. ♪

>> welcome back to bloomberg "west." chang.ily talking about facebook as it marks its two-year anniversary as a public company. san mahaney joins me in francisco. of there with me the ceo gaming company artillery. former myspace ceo and cofounder. i will start with you. a spoke has become the dominant social network over the past 10 years. how good are the chances it will remain the dominant network over the next 10 years and not go the think therosoft? >> i chances are really strong they

will maintain the position as the top social network. facebook is the social glue, not only for the web on the mobile web, but mobile apps in the universe. if you want to maintain your and -- identity on any type of mobile application, you need to use facebook. i do not see that going away very quickly. they have by far the best advertising monetization platform. we got to buy advertising and we spend the majority on facebook because it has a positive roi. the more users, the more data they get. i do not see them going anywhere very quickly. >> what about the cool factor? not think facebook is cool anymore. >> i think it is a bit

overblown. i was watching people use their , college kids. i see a lot of kids using twitter but right after that internet and facebook. when you think about it as a multi-acid product, having things like instagram and whatsapp allows them to really reach the audience. it does not matter, still the same set of products. engaging with gmail or google? >> he uses the fact that he wants to be a utility. i am a huge believer and a coupler of utilities on the internet right now. google is one. maybe one other in that group. that is an extremely powerful position to be an. i would much rather be a utility. see as theyou

biggest challenge over the next regarding the age thing, there has been a great discussion about that. is justmark's point that, that at a certain point the users will grow out of it. greatestve seen the days of user growth but finding ways to make advertisers pay think that is what is recognized as the real leverage. >> quickly. about whatsapp and instagram. you are in gaming now. what about oculus? that puzzled me when i first read about it. i think the real key is the 10th anniversary note. one third do not have access to

the internet. this foreshadows the aerial robotics. one of them was about new experiences that connect people. the one they have not talked is marked talking about how people want to query the network for complex information. i think that is where it will unfold in the next couple of years. right, chris dewolfe and our own cory johnson, thank you all. we will watch the next few years of facebook. we will be right back. it is 26 minutes after the hour, which means bloomberg television is on the markets. i am michael mckee. stocks are up at the moment after brief slump. i now the nasdaq is leading the

way higher 30 points. individual stocks we're keeping an eye on. micron technologies moving up. astrazeneca down on the rejection of the takeover offer. ♪

>> you are watching bloomberg "west." i am emily chang. the u.s. has raised the stakes substantially in the ongoing fight with china announcing criminal charges against five members of china's military for cyber espionage. phil mattingly joins us now. a huge step for the justice department. why this, why now? >> a big question. a huge step is right. government officials were taken aback by the announcement of the charges against these individuals. the justice department has been

working on cases related to these types of issues for more than a year. they have been gathering resources. throughout that time officials have been pointing out this is a major problem. on some level u.s. officials have just lost patience. the nature of the charges, how groundbreaking they were were underlined by the attorney general and a press conference. >> take a listen. >> the seriousness of the ongoing cyber threat. the criminal charges for percent of ground breaking step forward in addressing that threat. >> as you see, the attorney general not mincing words about how important this is. something we will have to watch. law enforcement officials say this is something we will see more of going forward. , if thehese individuals jury finds them guilty ever

going to see the inside of a u.s. jail or is this more symbolic? >> very unlikely they would step but in the united states. very symbolic. is whatwhat you heard you would expect. we hope they would cooperate. we hope they will end up in the united states. the chinese government not mincing words. these charges are ridiculous. the u.s. to correct what they have done. very little chance you will see these individuals come over. i think the point has been made. i think if you ever needed a stronger instance of the u.s. taking this very seriously and becoming frustrated for what law enforcement officials say are billions and lawsuits, this is the example. >> phil mattingly and washington, thank you very much. say that theynts have stolen sensitive information, including trade secrets from a medical and solar

industry. cory johnson back with us from new york. volante joining us from washington. you can only imagine the back-and-forth going on behind the scenes between u.s. government officials as to whether officially filed these targets. what do you make of such a public indictment? we're are seeing a lot of eagerness this morning. what really stood out to us is this is exactly the type of response that we have been seeing on the front lines for years. back in 2009 and 2008 large-scale cyber operations like this are something we're very familiar with. >> the former head of the nsa, keith alexander, calling it the greatest transfer of wealth in history. what has been stolen by the

chinese. give us an idea of what has been stolen. what companies are they targeting? >> this took place in pennsylvania. something interesting when we think of cyber security, we're not thinking about alcoa and u.s. steel. these are the kind -- types of companies that were mentioned in the indictment. it shows how the products work and want to replicate that. >> i wonder what kind of impact the revelation actually has? i understand there is another big report. what was the actual impact of the report? >> we trace the impact of the disclosure. what that was was a report that laid out the details behind what we believed to be widespread

economic ease. a espionage coming from chinese military unit against a variety of different companies. after the disclosure of the report we saw very public not beingout this engaged. later behind the scenes as we were tracking the group we saw what we referred to as chinese military, a base of activity of disclosure, and when it did come back to us to start continuing operations of the network, we saw the infrastructure had changed. there were accusations and denial the behind the scenes we saw a very different story. this reflectoes weak security measures implemented by companies as opposed to determination by

chinese hackers to get the information at any cost? >> one thing we have been saying is perfect offense is not reality. the way many of these have person has once the closed down the link, there is the ability to get into the network, it is that simple. defense andwork having the right resources behind it is crucial, it is also about awareness and educating employees. i wonder if it would be realistic to tell the chinese economic espionage is one thing, but economics but the benefit of more companies is not ok. >> i think it shows the irony of when alexander at the nsa the nsa has been accused of stealing information.

i think this shows a moving target. what we see is the foundation of our security. thisw would you compare capability a chinese hackers to u.s. hackers? are they far more advanced or just breaking the rules the u.s. believes are in place? the chinese activity we deal with on a daily basis. we see multiple engagements occurring with the same groups we have been tracking. against adespread variety of industries. >> all right. laura go on take, managing senior threat analyst with fire i. cory johnson. thank you both. though abramson speaks out for the first time for this -- for the first time since her exit from the new york times. ♪ ll ambramson.

♪

>> i am emily chang. this is lo bloomberg "west." addressed her firing sends -- at a commencement address. >> losing a job may hurt but the work that holds powerful institutions and people accountable is what makes our democracy so resilient. this is the work i will remain very much a part of. for more on what this could mean for other senior executives, we are joined by the company who helps other companies like facebook, salesforce with recruiting and employee retention. fromjohnson still with us

new york. so much debate about this in the media. what are your thoughts on this firing? been called a bloody episode of the game of bounds. >> very lucky. i have not watched game of their own so i will stay away from that but it is a fascinating story. cruxally broke down to the of what she fired for something that a man would have gotten away with or not? i do not think we have all of the details yet but a lot more will emerge in the coming weeks i am sure. >> she had issues with arbitrary decision-making, failure to consult colleagues, inadequate communication with the public. some say if she were a man with this issue she would not have been fired. >> there is the word pushy that has been bantered about. is tom is pushy a good thing or bad thing?

tough and amanda not a good thing and a woman? if that is the case, there is something sexist at play. if she was fired for performance, think the man would have been fired for, she should have been fired. >> i know everyone in new york is talking about this. ? the performance of the paper under her was very solid. well what goes on behind the scenes in the making of news can be a very difficult process. the pieces she had about a month of of retelling the story getting run over and how she has recovered that was a really interesting piece. feel like it sat well and ihe new york times"

wondered if that was the direction she wanted it more to go. if that was her direction that did not jive well. >> what about the issue of equal report she was not getting paid as much of her male predecessor. >> it absolutely matters. i think the question is, who is on the right side with it? there is tension, stock compensation. i think it is an everyone's best interest for as much of the information to come out as possible to people understand pay as a central part or a bit of a red herring covering up other things that may have been more important. menre women paid equally as or paid overall $.77 on the dollar? >> we do not have

compensation data for a lot of the companies we work with at the companies we work with are increasingly focused on how to build a more diverse workforce. specifically, how do they train, recruit, develop junior people to become leaders in the organization? i think it is endemic to many companies right now. something we help a lot of folks with. >> how do you think this impacts the brand? >> i do not know that it does at all. i think what this reflects is a big newsroom with a very talented group of people putting out a great paper. shakeup with a difficult tenure. this is not the first time we have seen the new york times run into troubles with the head of management area the important thing to note run the financial standpoint, that weighed heavily into the decision and the

urgency with which they had to deal with this. the future of the paper being dropped at the front doorstep is long gone. >> what about recruiting and retention? how have employees receive this? >> it will be telling to see what happens in the coming weeks and months. the? is she treated differently because she was a woman? if so, you might see high-profile departures. is if she was truly fired for poor performance reasons i'm afore acceptable things, then they did the right things. i think a lot of the women who work there will respect that. they will respect she was not treated differently just because she was a woman. women at the end of the day, that is what they want, they want to be treated equally, on the same level as the male counterpart. rex i want that, too.

thank you. we will be right back with more of bloomberg "ewest." ♪

>> welcome back to bloomberg "west." 26 --s. army is turning technology to help keep soldiers healthy. they have teamed up to develop an army fit program. it is an online program now used by more than 300,000 soldiers. cory johnson sat down with dr. dan johnson and jeff arnold to hear more. he started by asking how it works. platform is ait new program that launched in january. the purpose of the platform is to house what we consider one of the best self assessment tools around total health and fitness. it has been around for

hundreds of years. what is new about this? enhanced whatlly we call the global assessment tool. it is truly comprehensive to represent physical, emotional, spiritual, and then with the easy to really make it it and to make the resources tied to assessment, make it personal and make it so we can reach important health and fitness information throughout the year. a really comprehensive strategy with social connectivity and applications and activity monitors and a really exciting project. it seems like that is the key to get them to be active with companies. good for insurance cause. the world we're living and called consumer

driven health care. a diseasenot become management company but become a potential business by taking social and mobile technology and aggregating other health and wellness programs and inspiring digital caregiving so johnson & can use this. >> i think of soldiers as fit people. talk to me about the role of soldiers and the lifestyle comment not just active service. >> that is a great point. what we're learning is you have to understand what is fitness? historically the army has taken somewhat of a fragmented ionic -- my on the -- myopic approach to fitness. behave learned we need to resilient whatever comes our way with soldiers whether it is move

it to another station, another part of the world, you have to focus comprehensively on the fitness. us about how this happens. >> we have an annual requirement for every soldier in the army to do. it is voluntary. it is offered to farm -- family members in the department of civilians as well. box,ed to be checked the go in and answer questions and bar graphs and did not hear from them until they had to take it again. we looked at army fit and have gone from 42 seconds average per visit 224 minutes now. like taking the social technology, how to take information and action and support to get the soldiers engaged. we have built a skyscraper called army fit that is really engaging soldiers and army

members. 2000 soldiers every day. over 300,000 ticket this year. >> we calculate all of this. these used to be blonde. >> page of the goatee. >> exactly. difference? a big redbrick health or something like that. what is the big difference for what you are doing? >> what we have been doing is putting a social age platform. don hopkins to dr. oz. >> we are getting good engagement. we are getting feedback on devices. is helped me with fitness quite a bit. >> today was a cardio day.

i see your first appointment is at 9:00. it is 90 and sunny. i go to your run keeper account. i will play music from your itunes account to get your best time. i will give you today's under real age for a micro-payment. >> colonel dr. dan johnson. cory johnson in san francisco at the time and in new york. joining us now for the bwest byte. he was in san francisco that matt miller -- that matt miller. >> i am going to be racing around a private racetrack the next couple of days. so i drop by the office to say hello. >> getting awfully comfortable. feel like i belong here. >> i have to say, i am enjoying it. you have the bite. what you have for us? >> 1.4% is the amount of

internet usage on the web that twitch tv is occupying right now. the top internet bandwidth right now. is near the usage of facebook or amazon video. reports out that google is looking at the company that we have not been able to confirm. >> i am not a gamer. i have no idea what twitch is. >> twitch is a place where you can broadcast yourself playing video games or watch other people playing video games. lex isn't that cool as a gamer -- >> is that cool as a gamer? >> no. at all.t the cool i am not cool i am a gamer. right now it is on the fringe. rex this is one we will be watching. a lot of questions about this. great to have you here.

cory thank you as well. try not to miss you too much. thank you all for watching. ♪ ..

>> from bloomberg world headquarters in new york, i am rock come to an -- i am mark crumpton. the united states charges five chinese officers of economic espionage. the russians president orders troops near ukraine to their home bases. and at&t's planned purchase of directv gets a federal review. to my viewers 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