thank you so much. we will be back "on the markets" in 30 minutes." >> live from bloomberg headquarters in new york, this with erik makers" schatzker and stephanie ruhle. >> the nation's high court still has not ruled on a number of crucial cases. business is watching closely. don't write off radio. reports of its death have been greatly exaggerated. we will talk to the head of the nation's biggest radio network. forget about crowded airports. these planes don't need concrete to take off or land. happy friday. you're watching "market makers." .tephanie is back sort of. it is nice to see you. >> it is great to see you, erik

schatzker. i want to say that i have missed you, but it has been an extraordinary week in if you have not heard of this, you're going to. this is the conference that brings together technology, media, and advertising. at a time when digital and innovation, you know i hate saying it, this is the time when our these need to figure the right way to reach the consumers and consumers have more control over what they want to buy and how they buy it. the changes that time is bringing is pretty extraordinary. it take a quick look. >> we took that away. we said this is not working for the business side of the equation. people are more excited about. we are not asking ourselves the question of where violating church and state. we are asking if we are violating our trust with our consumers. we are never going to do that. >> i also talked to jonah

parenti. he says he knows how to go viral. announcements of his coo leaving to go to the daily mail. >> there is an intense amount of interest in what we're doing. we hear from people at big media companies and small startup companies who are doing business in the space. definitely fun to have people watching what we're doing and appreciating what we are doing and valuing it. ago, we wereears not on anybody's radar. it is a different moment for us. we are able to operate and influence the larger industry would people see what we do and get inspiration from it. >> i had another interview, one you can't repair for. kanye west. this is just a few weeks after his marriage to kim kardashian.

is talking about being a cultural leader. you have got to see this. raise theto help pallete of a generation. also, be involved with the production and distribution and providing that thing that everybody is in for. >> those are just a few snippets. we will dig into those interviews and a lot more. i learned a lot this weekend. it you will and just a few. >> knowing how you feel about kim, this does- not surprise me. >> it is time for the news. these the top stories from

around the world. oil shares are trading down. -- oracle shales -- shares are trading down. this is taking a while. in casino and resort atlantic city has filed for bankruptcy protection. they have put themselves up for sale. revenues fell 40% last year. new york has agreed on a deal that would legalize medical marijuana. they would not be allowed to smoke the pot. it could be in used in food and as an oil that can be vaporized. ofore we get to two more stephanie's interviews, darden has lousy earnings. this is raising some questions about the business that will be left once the red lobster sale

is done a couple of months from now. they also own the capital grille and all of garden. this is where alix steel comes in. >> capital grille is not downstream. >> what about red lobster? >> it is definitely downstream. -- >> are you confusing this with oil production? >> this sale could go through any week now. it should go through this quarter for darden. there are investors and hate this idea. they wanted to keep the value in red lobster and spin off the real estate portfolio. activist investors are backing down. they are left with up for debate. it is about the olive garden. 42% of their sales come from

there. the growth is in the specialty restaurants like capital grille. you have yard house. kitsche things that are year and have a theme. about $1.3ake billion in revenue from them. recent does this most quarter tell us about the future? aret says that they optimistic about the olive garden. >> this is been a show me story at darden for so long. >> the sales at olive garden are only down 3.5%. the goal is to get them flatter for the year. the cost issue is a problem. they are seeing inflation rise 2%. they also spend a 5% on marketing. most restaurants spend 2%. what you start spend a lot on tv ads, you might lose sales.

this is a tricky spot that they are in. how you grow while you are trying to contain costs. that is helping them save some costs. margins are 21%. the industry average is 68%. they are way behind the curve. >> where the activist breaking down on red lobster? they have a fact sheet and spent a lot of time to woo them for that. what are the other options? >> they wanted the spinoff. >> in terms of the real estate. red lobster is a huge drag on earnings. down 8% overs were the last quarter. seafood costs are expensive. overall casual dining fall off the cliff. there is an emergence of olean five guys.

all of garden is for my grandparents. they are spending a lot of money on advertising. red lobster is not part of that ship. is the themed restaurants. that is where their growth is going to wind up being. all of garden is seven in --tube channel survivors subscribers. that is where all of garden and darden are not going. >> they need to find a way to get those young folks to eat at olive garden. >> or capital grille. -- howny millenials can many millenials can afford a $70 check. >> now for a full-blown battle for alstom. siemens has just upped its bid for the energy business to almost $20 billion. they are also trying to make their offer less compliant. hase loses here, that

applications for the ceo. he has staked a lot of himself on this. >> he personally has gone to france a couple of times to meet with the french president to try to push the issue just as the siemens president has. he is coming here. he has staked a lot on it. onet does not go through, could say that he could lay this at the feet of the french politicians and say it was vagaries of french government and politics the cause the deal to not go through. he does potentially have a bit of a fallback. the reason why this is so important is because if you look at how the stock has performed under him, the stock has lost about one third of its value. part of that is timing. he took the position for days

before 9/11. the timing was not fantastic. he wrote it through the financial crisis. he did not help matters through strategy and terms of acquisitions the company made. this is a chance for him to recover some of those losses if the deal is successful. he could boost rockets and a stock prices as a result. >> many people may not realize, g has a highly developed internal m&a department. this would be their biggest deal ever. >> this could be a feather in the cap. jack welch tried to buy honeywell and that would've been an enormous figure. that did not go through and part does he could not get european regulators on well. -- onboard. they can have that sway with

the europeans that welch could not. that would be a right -- bragging rights are him. he has lived in jack welch's shadow. >> what will happen to gef siemens wins? if siemens wins? >> they have been refocusing on their industrial groups. refocus onried to that part of the business. siemens will just be that much more a bigger competitor for it. it is going to be tough. then you have mitsubishi which would be acquiring part of the alstom business. there is a lot driving up -- writing on this bill. if ge wins, siemens has a huge competitor in its backyard. almost they

transformative deal for either of them. >> julie, thank you very much. that is the latest on the battle for alstom. coming up, businesses are watching the supreme court very closely. there are only a few days last -- left. we are going to look at some of the cases that could have the biggest impact. here is a way to avoid busy airports. it is way to avoid all airports, in fact. owner of aing to the new airline. we are streaming ♪ on your mobile devices.

>> this is bloomberg television. you're watching "market makers." the clock is ticking for the supreme court with just 10 days left in the current term. there are 11 cases left it aside.

several of these will have a big impact on business. for a look at what is at stake, we have a veteran supreme court reporter. greg, give us a sense of what nowsupremes face between and the end of the month when it comes to the decisions that are due and the cases we care about the most. >> there are 11 cases they have to decide. the term will end up the week after next. the biggest case from a business dealingnt is the one with the barry diller start up company. they will sell you online broadcast tv. the broadcasters have sued saying it is a copyright violation. the lower courts have said it is not. wins that case, this is a dramatic trans from nation in

the broadcast industry. --will change create and change relationships with cable companies. --before i get to and the, andy, but also they're looking at the has big commercial implications? >> there is a case involving greenhouse gases. that is not the new regulations that the president proposed a couple of weeks ago. this is a much smaller area. this may give us some clues as the cleanll look at air act and greenhouse gases. there is a case involving securities fraud. it wouldt seem like knock out all class actions. they will make it seem like it will echo that far. it is significantly limiting

investors to stew a company. >> that is the halliburton case? andy, which ones would you point to as being the most significant? >>aereo is probably number one on tve of the impact broadcasters and tv stations. is a knock on effect of client services providers. there is a real question that if ereo.ourt rules against this could hurt cloud developers. which doof the cases seem to have implications of business are the hobby lobby quinn.nd harris versus

some of this has more of a social or political consequence. they involve directly or indirectly cap honeys. >> absolutely. take hobby lobby. the question is whether a company whose owners have religious beliefs about not providing certain forms of contraception in health care to their employees can be exempt from the obamacare statutes requirements that that coverage be provided. if the court recognizes that kind of religious exemption, it will not just apply to contraception. it opens the door to all kinds of potential challenges to government workplace regulations. an employee can say i have a religious objection to pain the minimum wage. i should be exempt from those laws. there could be a real uneven playing field exist.

thomas in your reporting, what are you hearing in your reporting the mayee to which the court favor business interests in these cases? >> the court doesn't look at these cases as a pro-business or antibusiness thing. these are just particular statutes or constitutional questions that have an impact on business. there is a tendency with this court to side with business. there are some areas like class-action litigation where the court has shown a real skepticism toward lawyers who bring those lawsuits. i am not sure it is fair to say this is a pro-business court.

businesses win more often than not. to say it isg interesting if you look at the numbers. just about every business case has been decided either unanimously or by wide margins. these are not the five to four conservative splits the uc. they are not waiting on a five to four vote. they are often waiting on a nine to nothing vote. -- when youe, these have nominees from both parties. >> the justices arm most likely to surprise us where? caseguess i would pick a that you haven't mentioned. this is the case about whether the police stop you for any reason they can download the entire contents of your cell phone as a search incident to arrest.

this is a big controversy in the tech community and as people have so much personal information stored on cell phones. this is big for business. a lot of business people have personal devices on which they have a lot of business information stored. the police to get ahold hold of that and go after the business. case thek in that court is going to show a very big concern about privacy in the digital area. they will not go the way the government wants. this will put limits on what the government can do. going to get some fascinating rulings. there's no question about that. thank you very much. we will be back in just a couple of minutes after a short commercial break rid video may but killed the radio star, what has the internet done to radio? ♪

>> is 26 minutes past the hour. it is time to take us on the markets. i want to show you what is happening with our macs. they have a market value of more than $11 billion. revenue topped analyst estimates. more people are bringing their cars to carmax. this is a used auto buyer and seller. sales havet new car been running at a torrid pace. buying new cars are selling the used cars to carmax. stephanie is in london. bring up some more of your great coverage from con. we're going to hear from the one and only bob pitman.

>> alive -- the -- live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> i am erik schatzker in new york city. i have to look at stephanie long distance. >> i have wrapped up a week at the cannes lions festival. you like music as much as i do. we have to talk about streaming. it's is getting all the attention these days. what about good old-fashioned radio? this is just as popular as ever. there are a lot of radio listeners out there.

i talked to the clear channel ceo bob pitman. he runs the biggest radio network in the country. 250 million have monthly listeners. we talked about how traditional radio is competing with those digital places like spotify and pandora. here's what he had to say. >> i thought i heart radio had all the buzz. we are faster than all of those services. we were second-fastest to 30 million and 40 million. i am sure we will be equally as impressive there. when you get into that game, and we are bigger than spotify, that is our digital. all of the guys added up. is still 90% of listening. don't think the shiny new thing

is everything. we are so excited about i heard radio. done onthe listening is broadcast radio. >> does it concern you that i heart radio could take advertising dollars from traditional radio? >> we don't care. like z 100 inion new york or k fim los angeles. franchises. we don't think they are broadcast. we think they are franchise. to get thisas through satellite or nam or fm band, we don't care. it is the same to us. we are looking to serve the listeners wherever they are. we have no problem at monetizing it if we have the relationship with the listeners. >> we hear from artists who granted they don't make enough money. do they not realize that there

are more people listening to music today than ever? >> they are concerned about when you disrupt the model of the music industry, how they make money? makears ago, they did not much money and concerts. they mated in record sales. that is the opposite now. our job is to connect the audience to the fans. we connected so they can sell records. we do it so they can sell concert tickets and merchandise. we view we have a responsibility to the artist. a healthy music business is good for us. interested in the health of that industry. seat 100 canwhen put on a jingle ball and sellout, is that the future of the business? >> everybody wants to go to

concerts. when we do the i heart music for us it is a celebration of live performance. concert.es the cool they do a set. set isall of them do a like a preview for the whole thing. we find it does wonders for their record sales. it does wonders for their concert ticket sales. we are careful that we don't step on their toes. business andsh the we are another way to connect the fans. we let them see an artist. one of the artist told me that she was nervous. shows everybody came to see me. at this show some people came to see somebody else and i have to win them over.

this is a great opportunity to win over new fans. i am always amazed that we have the top artists from all genres that the country artists are so hard-working. they go out and say i am going to win these people over. it is amazing to see the audience. they go, wow. >> he is really really good. >> if you have 110 million if you have the super bowl of concerts, why aren't you killing that more? have 240 million broadcast listeners. i make we are doing a great job. people canven that revisit the fact that the

consumer loves radio. we are america's companion. the media business to curse for granted and forgot about us. we are pushing the image backup. we are pushing the profile up. we have data. it is one thing to say that everybody loves us, prove it to me. nielsen came out with this study. it stunned everyone. at age said it was higher than tv and digital. it is getting there. i am pleased with the progress. we are excited about the possibilities. >> what do you think the ownership future is with clear channel? i think our private equity about theare excited trajectory we are on. they are excited about the possibilities.

excitement going on with outdoor now. some people are calling it an ipad on a stick. the possibilities that are going on are one of the highlights of the festival. the kid walks up on the billboard and a flight is coming overhead. he tracks the airplane and it comes up with british air lines. how do they do that? that is what you always wanted here. our owners are excited about the possibilities and the opportunity that we have. to need toi'm going go to that i heart radio festival. i need to understand it a bit more. we come back from the cannes lions festival, there are going to be some revolutionary changes as a immediate company. thought ofwe

ourselves as a magazine industry. you put yourself in a paper box.

>> welcome back to "market makers." i am stephanie ruhle and i am coming live from london. i have more for my week at the "market makers lions festival. is one of the world's newest public companies after being spun off from time warner just last week. joe is very focused on the business part of a company. told me he still believes content is king. you just have to keep those lips tight. >> i am a content industry. i think we thought of ourselves as a magazine industry. the moment you define yourself

that way, you put yourself in a paper box. i have content that can be produced and delivered in other formats. you can see more video and digital from us. there will be more experimental offense must. we will engage the audiences around the concept that we have. >> where is the challenge for you running time ain't and -- the editors that are not looking at the bottom line. >> i have said that before many times. i come back as a private equity investor understanding the value of what i have got. i have got things that are underinvested in over the years.

free for a week and half. we have a lot of cash to invest. we have a lot of ways to think of what else can we do. i love the creative community that i have. we want to ask the hard questions about what else can we do? how can we take the connection with our consumers and work with advertisers in more exciting ways? >> like what? >> a lot of people are talking about that there is something going on there. there is something different going on there. that is helping us attract great talent. people want to come work with us. come up to meies and say now that you are open for business, i would like to talk to about what we can do with time inc.. i know there are five or six or ideas that i have looked at and thought we would do well with it. >> now that you are open for business and in the building, is

it hard for you to unlock the value and get your head around the digital aspects? get your head around native content? >> leadership can change anything. i watched a very experienced turn organizations around. my second-in-command has taught me all the things that he has done. the reality is if you go at it from and take this wonderful organization and say here is where we are going, people will follow and you'll get crazy creative things happening. >> will editors need to lose their religion and open their minds? >> we took that away. the editors are going to be working for the business side of the equation. i think they are happier. they are more excited about it. church andviolating

state. we are not asking ourselves the question of violating the trust with consumers and my editors have much more freedom to think about how they can delay the consumers and work with advertisers and think through the product. they are running a business. do more of that or we can do something different. we can try harder and do more things. we were afraid of trying new things. if it does not work then we will do the other thing. it is very simple. there is an excitement in the organization about trying new things. we have the resources and the management team to do it. i think we have a process that allows our creative people to think about how we can come up with new ideas and services for our advertisers and consumers. >> the people who follow you love to panic when they see panic -- budget cuts or layoffs.

are there obvious ways you can streamline that business and cut budgets? when the creators are in charge they have a different idea. >> hockey talk about investing when you talk about layoffs? they go hand-in-hand. we need to invest in the things that go to the future. sometimes he will spend money on things we don't need. i have multiple kitchens. i don't need that. organizationsle developing recipes for us. we can save money on the things we are saving on so he can goerate the resources to forward with. you want to take the company forward. you want to ask yourself the questions. ask yourself the question is what you are doing everyday taking us forward? if it is not, then don't do it.

>> i highlight all of the things that i want to buy. i go to retail stores to buy it. what am i going to buy it from you? >> we sell things a little bit here and a little bit there. many of our titles sell products. average has eight products recommended in every issue. they get mad because the product sardis sold out in the store. there is a lot of opportunity for product sales. we are going to figure that out. we want to do it in a way that does not violate the consumer trust. consumers are smarter. they are looking for experts and people who have real credentials and say this is a good product. where can i buy it? let me do that. >> you need to get an acquisition to get time to a place where you can sell product? >> we have some technology in house. you may be some small

acquisitions. the the opportunity is to build those platforms that will cut across the place. we are talking about buying or building. the opportunity is to make smaller acquisitions that did not fit into the products. you will see smaller acquisitions for us. >> we will have a lot more ahead from the cannes lions festival. my interview with hip-hop mogul kanye west. richard leffler, you are kind of winning. kanye, you are saying kanye is king. >> he is the king. he is steve jobs. only he could think that way. >> off-line without all the

hassle of going through airports. you are going to hear from the president of a brand-new airline. ♪

>> this is "market makers." business travelers, listen up. if you want to avoid crowded gates, a new airline is going to skip the lines altogether. they will have flights between new york and boston by seaplane. melissa, let's talk about this a business idea that you have. why is there a market for this service? >> the need for efficiency in business travel. pointers need to get from a to point b as quickly as possible. they want to avoid overnight stays. airport congestion and security lines can lead to three times the amount of travel as the flight. altogether,that

seaplanes have the most efficient way to get someplace. >> they can take four hours to get from manhattan to downtown washington. travel to the airport, security lines, how fast can you do it? >> 90 minutes. >> you're cutting it down by more than half. >> most people are not aware that you are in the airline business. tell us about the experience the you have had it with fly the whale. >> fly the whale is a seaplane operator. we have been fine since 2010 out of new york providing weekend shuttles to east hampton. of fly the whale we realize how important people's time is and how they are willing to pay a premium for that time. a lot of our current customers

have expressed interest to me that they would travel during the week to boston or d.c. >> they wish somebody could do it faster? >> exactly. they know how efficient it is. we are provided during the week to them. >> what do you charge? going to be $550 each way. >> it is competitive. >> especially for business travelers. delta tocan go up on about $850. >> you are flying out of the east river here in new york city. where are you landing? >> the private terminals on the tarmac. the planes are amphibious. it is different.

it is different than flying to the commercial terminals. the only need to arrive 20 minutes prior to take off. there is no need to check in one hour ahead of time. it enables the business traveler to leave in the morning and go to boston and have their meeting and return at night for dinner. had you get people over the fact that they are unfamiliar with seaplanes and might find them scary? >> people have that trepidation. the reality is aviation is the safest way to travel. it is just ase, safe as any other plane. you are equipped to land where other -- wherever. >> the plane to have our small. i have seen larger seaplanes. the ones that fly out of huge it sound in seattle. onlyght now, new york is

equipped to have these nine passenger planes. toare working with the city build a new seaplane infrastructure that will be similar to what they have in vancouver. >> how are you marketing the service? how are you making people aware? what about everybody else? >> we have various corporate sponsorships. we are opera -- offering corporate rates to large companies. they may have clients in need to travel back and forth regularly. problem flying in a seaplane. i am looking forward to trying it. think of are spending some time with me. they are going to be flying between the east river here in manhattan and boston and washington. uprket makers" will be back

in just a minute. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> mapping out in atlantic city. the casino files for bigger see just two years after opening. this could be good news for the gaming industry. revolution on the tube. richard hear from plepler, ceo of hbo. and you will hear from kanye west and others changing the business. welcome back. when are you coming back to new

york city? >> i will be by your side on monday. what will i be doing on my flight home? watching some movies that have been put on hbo go. i got the chance to sit down with richard plepler, and talk about the fact they got the supervalu book content, and did they need to have these mas sive partnerships with these major players? find out how he feels about his competitors. west things that the only people who should be sitting on corporate boards are kanye and will i am. at alicia keys and blackberry, that did not work. for him it is all about authenticity, and it is all

about kanye. >> i cannot wait. it will be great to see you back here on monday. city. meantime, atlantic we have to talk about the rubble rebel casino. the opened back in 2012 at cost of $2.6 billion. they may be forced to close for good if a buyer does not turn up. brian covers bloomberg gaming industries. so picture was not quite gloomy when we talked last time. e future of gaming atlantic city -- in atlantic city? >> the future has continued to get worse. rabble has gone through their second bankruptcy in a year.

the marketers continue to decline. a question of more capacity that needs to combat -- needs to come out? >> other than the bore got it, no one is positioned well in atlantic city. most of the properties are losing money. what needs to happen is that supply needs to come on the market, as ambling has been legalized and surrounding markets like new york about delaware, and maryland. that has taken away its customer base. ebel is a nice, new building. there are other older buildings. hopefully someone will by rebel and that will lead to others in the market. two $.6 was worth

billion to develop and build, and now it is making its second trip through bankruptcy, what is it going to fetch? not have anwe do exact price, we are going to figure out what it is not worth. coming out of the first bankruptcy, the property value was cut to about $.5 billion. it was rumored to be on the market for 300 million dollars -- $300 million. it is likely that the building ofl go for somewhere south that when it finally sells. >> atlantic city, by one measure, is not that small. it is still less than half the vegas, and that is st gaming market in the country. where does the market need to

need for atlantic city to be profitable? >> they really had their haiteyy back in the 1980's and 1990's. what happened is they squandered their opportunities, and that market is still the second is down fromthat over $5 billion in 2006. they continue to bleed market share to other markets in the area. philly is a great example. i did it to get a lot of -- eh a lot out ofke the market, or they turn themselves back into a destination market. >> why are market forces not at work here? why are so many songs routing, nasty incidents continuing to

operate, -- casinos continuing rebel and, while the other new ones are not? >> they do not want the casinos to close so one of the issues going on at atlantic city right now is that they subsidize the other operations in the city as a whole. ata is a great example. the market is not functioning as t should. >> we're not talking about the business of casinos, we are talking about the politics. now i understand. that is brian miller, with bloomberg gaming industries.

and now we need to talk about the world older stock market regaining its independence. in wave of european companies are headed to public markets this year. jonathan, it is important to point out that until recently your next was part of the -- euroext was part of the stock market. they were blocked for antitrust reasons. we might see some consolidation off the back of that, but it is just another ipo and a long list of ipos in europe. a lot of activity picking up right now.

at thesere looking numbers, when you look at that region as a whole, you were seeing the best first quarter this year since 2007. previous add up the first quarters of the previous four years, and they still would not equal this year. a rebound into see europe, and when you see stock markets a six-year highs, it is time to exit. >> is that a regulatory requirement of the europeans do notr is that they want to own -- >> it was always in the cards that euronext what always gets spun off, and here it is today. what i did see is that it is priced of the bottom of the range, and it has fallen below the price this morning. a lot of concern about what this

means for the company going forward. >> thank you. . coming up, hot money. this is not your average amusement park. you will hear from the ceo of digger land. we're living in the golden age of television, and i think hbo is a golden brand in television. >> we have the hbo ceo richard plepler. ♪

>> it is time for some bloomberg west top tech and media headlines. the japanese company hoping to customers towants have faster speeds and lower bills. the industry one of

the world's least satisfactory. shares of oracle are down as can't tell you right now, but they are falling. more than 5% is where they are right now. ceo larry elliston has been trying to transform the business into cloud computing. offer for t-mobile seems to be pretty popular. up for thele signed iphone test drive as soon as it was available. innhanie ruhle has an the south of france this week, but now she is in london. and i do bring us another of your interviews.

working.sm, favorite tv shows, and hbo is leading the way. 133 million subscribers, is onw original content amazon prime as well. watching, about and the new way we are consuming our media. i sat down with richard plepler to discuss the way his company ry adding value to aeve facet of the business. >> hbo go is an extraordinary, beautiful product. what we're doing right now is adding value to our subscription by allowing our consumer to get hbo however they want, when they want, where they want, whatever device they want. the vibrancy of hbo go is

increasing all the time. the product is improving all the time. right now this is the right business model for hbo, which is to work with our partners to expand our subscriptions. here is the key, value. hours of live programming, we think that is a good value even coupled with a more extensive cable package. hbo go in as you see usage improved, that makes that troop. ue. >> game of thrones, true detective, on and on. are people even watching movies anymore? >> absolutely. we have four hollywood studios licensing under hbo go. we have 80% of viewing on television on

hbo go. it is very important to remember that our consumers still love their movies, and they watch them. >> when can we expect more on amazon? when can we expect more outside hbo delivering it to us? the deal we made with amazon, which is a wonder for a while for us to monetize our library -- wonderful way for us to monetize our library, and because amazon prime customers do not get hbo go, it is intended to way for another -- and be away for another group to try it. many have not seen the first of boardwalk empire, true blood, and it will be a great way to bring those people into the hbo go.

>> five years ago it seemed to be a terrible time to be a of originalrms content, reality tv is everything. now content is king, is a great to be in that business? >> the array of talent at our door. writers, producers, show runners who want to bring their product to hbo go is extraordinary and more vibrant than ever. you can take the guy who wrote two detectives -- true detectives, he was a novelist. if you looked at us and say how did i want to tell my story, he decided television was the way to do that. next year will be every bit as extraordinary. it is a wonderful time for writers and show runners to bring their product in.

someone years ago asked martin scorsese why are and heng television, said where all-star 12 hours to tell a story -- where else do i have 12 hours to tell a story? again we have become a magnet for the best writing of the best director in, and the best acting in the business. in terms of original programming everyone else there is trying to chase after hbo. they are trying to create what you have. is it going to be a cost grind for you now that it has become more competitive and expensive to find that original content? >> we have about 100 30 million subscribers around the world. we own our own content. seeing the cost per subscriber be cheaper for

us. we have advantages, and the commands resources -- immense resources and an extraordinary brand. talent wants to be inside our house. as long as we keep playing our game, and playing it to our fullest capacity, we are going to have more than our fair share of attention, a claim, and more than our fair share of people who want to work at hbo. game of thrones has been out sopranos in terms of your ship, do you attribute this to quality of the show, or hbo go, and we do not have to be home on a sunday night, we can use our dvr? >> i think once in a while, you have the great blessing of having a show on your network which bricks into the -- brea

ks in impossible to predict ways. it is very excited to see the numbers and the growth of the show over the last years. the first year we started out at and nowillion viewers, we are 12.5 million viewers. it is word-of-mouth, the power of social media, the power of the branscum and most importantly, the power to the -- of the brand, and most importantly the power of the show. network tv at this point cannot product that people want to see? >> i think network tv is doing just fine. there is a lot of april doing good-- people doing numbers. what hbo is trying to do is make sure that we are allowing to speak points

of view, to have an opportunity to speak their perspective. we will do what we do really well. we have more subscribers than any time in our history, more growth, more global subscribers, and more useful or electability than any time in our history -- timeflexibility than any in our history. we're are going to keep playing bestame, and look for the talent in the world because you're only as good as the people who work for us. that's what we try to do. >> that was richard plepler, the ceo of hbo. when we come back, do you want to havewhat it is like a grenade in your mouth for two hours? that it is what it is like to interview kanye west. ♪

>> we are approaching 26 minutes past the hour. it is time for on the markets. begin with smith & wesson, the gunmaker dropping the most in almost two years. 9.82%, almost 10%. the profit and sales disappointed investors. this company has benefited tremendously from fears that the killings that have taken place in places like denver, orrin newtown, connecticut, would drive the obama administration to tighten gun regulations. that has not happened. the stock is up more than 3% over the past five years -- 300% over the past five years.

shares of radioshack dropping below one dollar since 1980. we are into penny territory. $.93 stock. anre is not that much of explanation for it. they have been on a downward slide to oblivion. coming up, we will talk to one he biggest waterpark's ceos. ," live onarket makers bbg television and streaming on your phone, tablet, and at bloomberg.com. now on apple tv. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> good morning once again. stephanie is in london, you will see her in a few short minutes. as you may know, and is still spring, summer officially starts tomorrow. and we are counting on those businesses to help us stay cool. we found a what it is like to be splash.g of you are the living, breathing americant of the

dream. you're born in russia, and are now here as an american entrepreneur. our theme parks a great business for you? >> they are a great business. you make people happy, send them home with smiling, and make great memories. thend make some money at same time. >> that is the goal. sahara sam's is a bit of an anomaly. it is a freestanding indoor water park, which is untraditional since most indoor water parks our hotel resorts. you buy a day ticket, you spend the day with your family and you go home. we also have an outdoor waterpark as an additional component that we open in the summer. our customers come from the tri-state region. philadelphia, new york city, delaware, maryland. people really to travel for a good experience.

we get over 300 60,000 visitors a year. >> what do they pay? >> average ticket price is over $30 per person. >> figure land is your new project. what is that? land is a construction themed themepark. you can drive and operate construction equipment. it is a very unique experience. if you grew up playing and watching construction tonka toys , it is a lot of fun. >> i could see why young kids would be mesmerized and fascinated by digger land. the equipment looks dangerous. how do you make sure they don't get hurt? safety switches, limit switches, cutoffs, we sort of make sure that the machine

while it is real, is toned down. most of the experience has been phenomenal. there are four of them operating in the u.k., our sister locations. issues withbout thegeevey busis the retaining and attracting talent, but you want good talent with the aquatic industry pumpuse you have maintenance, lifeguards, and people are putting their trust in you. you need to have the right resources to help them. you also need operators in digger land to trust with your safety. thatve a lot of employees are teenagers, we also have met your staff and the managers make a nice living.

lot of safetya training, and we treat them well. they love to be at our facility. >> is immigration reform something you care about? >> immigration reform is important, but we hire because weemployees need to be able have consistent employees, and like to bring them up the ranks and start out with us and as they progressed through the channels we give them more responsibilities. energy cost are number one utility consumption. huge, energy is number two. energy for us coming up to make sure you buy it on the market and hedge your bets, and by long-term which is what we do. utilities are spiking up and down, for this past winter gas prices soared and we had a nice gas bill that we had for two

years. we coasted with a good utility cost, we were happy. >> tell me about your experience with social media. it is not always been a smooth ride. quick social media is always challenging. it is open to opinion, and everyone has an opinion. you have to be careful what you how you try to spin it. great comments, some people of bad comments, and you have to balance what you put out there. traditional family fun activities and questions. >> you need to find a way to get off theirlls iphone or ipad, once they see the tweet. >> that is only one point of

r advertising strategy. we have other resources we can go to to drive our consumer traffic >> good to meet you, thank you for joining us. stephanie? back, mye come exclusive discussion on culture, creativity, and technology with kanye west. whenill be all about kanye we we come back. ♪

>> we have some breaking news.

a 20% stake by france with montebourg. thatve an agreement a they will take a 20% stake, and they will take a percentage of the gas business. general electric will be the business, we do not have any numbers on that. little change before the headlines came out, and that remains the case for the

moment. >> as i mentioned earlier, i spent the week in cannes, france speaking with dozens of the biggest names in tech. west andn with kanye ben horowitz, and we talked about the changing nature of hip-hop and the influence it has had on technology. >> hip-hop is encompassing and throughrough -- breaks style, branding, poetry, melody, storyline, all at one time. thereason why it crushed r&b john recommended beginning the new rock 'n roll, and me and at in front of the

american flag is because we are watching bruce things brings springsteen. feet would have been no steel without the samsung deal thatse it showed that now steve has passed ball although that he might have seen it was a company with the importance of connecting to culture. calling out tim cook and saying why do you have a performance by south by southwest, and you do not want to pay them? that the wholed point of what we are saying is that you have to go and pay these guys. culture and creativity is worth something. the best thing about the follow act brother -- fall of blackberry and the rise of apple is the win for creativity.

companies that are based off of not just how much product they can put out. >> hip-hop is the first is john ead that -- genre that bridged style and culture? toblack people are allowed ar big chains and say stuff costs.much >> why was make tagger not allowed -- mick jagger not allowed? >> we go through cycles of this. i would name drop all of these

people by association, like i name dropped spike jones to make myself look cooler. peoplesiation, gaining confidence. one thing i wanted to point out with jimmy iovine and dr. dre is that they are geniuses. both of them were cultural geniuses. what they had done for so many years, they connected with the right company. and it's all about the legacy of steve. convictiond of iron do you have to have to be one of those breakthrough innovators? first few days, people thought you were making fun of them, and then teachers were teaching courses on it. >> i do not write self-help

books or anything like that. [laughter] you have to be able to take the lashes of people not understanding. two years of people not interracialg relationships. the pop world meets the art world. you need to be able to swim in backlash. alot of times driving to get bad rap for saying i could do creativeswe are the with teeth. we know that the idea is more important than our personal wellbeing. that is a lot of why i will say

things that are not for my personal well-being. if you're creating to make your --e better, that a selfish is selfish. -- ba-- i getch create somuch, but much. if you're a boxer, you will get hit constantly, but you might be mohammed ali at the end of it. >> more of my interview coming up. why he says the ceo of instagram could learn something from them. stay with us. ♪

crazy -- want a

little crazy? how about this. this photo of kim and kanye's wedding has millions of likes on instagram. the internet as a whole, the world as a whole is ugly. but the internet is ugly too. i am not in the construction knowess, that means i people who could help me paint. instagram is nice. i am not knocking it. [laughter] general, everyone

spends the majority of the time looking at their screens or their phones, and just as a simple task we could clean that up. >> we will have more of my interview throughout the day. do and afternce to -- an after cannes lions interview. theou will be hearing from several other businesses. >> i am not sure i am comfortable with the idea of kanye being the arbiter of all things. >> a black leather kilt. ood taste,r of g

last i checked on the broader scale, it is not high craft. >> i will see you on monday. ♪

>> thank you for watching. you go and enjoy a fantastic weekend, let me tell

you about what is coming up on monday. it your motors running, harley davidson will be here, showing us what may turn out to be an incredibly polarizing product. an electric motorcycle. appeal tot might these green minded millenial's, but what will the legions of hog owners have to say? here on monday. it is 56 minutes past the hour, which means we are on the market. i want to update you, and recap the headline that you spoke about 20 minutes ago. ge will support the french government's bid to buy alstom. according to the french

economy minister. this comes after siemens of together andut $19.9 billion bid for alstom. this move will publicly end up end upttle -- probably in a battle for the assets. but it looks like it has ended for now. s&p and dow building on yesterday's record high. me now for today's ex.ions insight is al for theeen a big week policy meeting and financials. thislike the reaction

week. a technical key reversal that was voided out. we have a lot more downside. it was an instrument used to latelyhat risk, and we have been seeing a lot of call iris on july escape all -- 16 bud.n the july it is like walkable -- whack-a-mole, every time the fixed pops up that they push it down. software company reported profit and sales that missed analyst estimates. what are you seeing in options? >> there is a big vutbut

there. it has doubled the nasdaq. a pullback this as after outpacing, but i look at this as often taking after the big run we have seen on oracle bigrofit taking after the run we have seen on oracle. e taking in $500,000 if it stays bullish. picking up a is cheap options, the 45 called for eight eight 2000 law order a that adds up to $8,000 -- 2000 stock order of that adds up to $8,000. apple is up 50% of the last year and up 15% year to date.

the trend has definitely change. and now the split-adjusted price seems attractive. stock traded between 70 and 80 for the longest time. is goinge money call hasabout $13 dollars, and four month for good things to happen. >> thank you so much. we are on the markets once again in 30 minutes. "money clip" is up next. ♪

"money clip" where we tied together the best business news. i am adam johnson. the ceos of hbo and time are there. anything you can do i can do better. it's a sing-along in france. new york, meanwhile, going into a pot state of mind. another state legalizing marijuana. , the new york