tv Bloomberg West Bloomberg August 5, 2014 11:00pm-12:01am EDT
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>> live from pier 3 in san francisco, welcome to "bloomberg west," where we cover innovation, technology, and the future business. i'm emily chang. 24th century fox has abandoned it it's it to take over time warner. blamed timech warner for refusing to participate in talks. operating income at disney's film studio near -- nearly double.
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other products performed well. we will hear from ceo. and mark your calendar. iphone is set to unveil its latest phone on tuesday. we have completed details on apple's media event. to our lead story. fox wouldrst century drool at the offer to grab the owner of hbo, turner, cnn and more. instead, it authorized a $6 billion buyback. engage to explore an offer that was highly compelling. it undervalues our stock and makes it unattractive to fox shareholders. the news said shares of time
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warner plunged in after-hours trading. we are joined in the studio by correspondent jon erlichman from the disney lot in burbank. john, you have been speaking with the fox camp. what do they have to say about this? >> over the last few hours we this isrd people ask if gamesmanship, if fox is making this announcement to put pressure on time warner. my understanding is that is not the case. of money behind a buyback would not speak to that. you heard from her burden --doch in that statement rupert murdoch in that statement, that fox put pressure after they made the announcement. everyone was wondering if time warner would see an increased offer from fox, what would put
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more pressure on fox's own share price. they are walking away instead of getting into a long battle to acquire is this. it nots it over, or is over until it is over? >> this is rupert murdoch we are talking about here. if you believe he has looked at the biggest strategic plan he is set in five years, made a single offer and then said never mind i am going to take my ball, and you can play by yourself -- when i first looked at it and thought well they are pulling away in , it$6 million buyback certainly indicates a company that has taken all of its tools away from an acquisition. but as you said, this is a bid writing aargely about stock check. about levering up the combined entity in a greater fashion. they are using cash to shore up their balance sheet.
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they said eventually a stock via back, as you know most stock buybacks do not usually happen in the way companies announce them. not not convinced this is just one move in their bid to put pressure on time warner. , a falling notice and facing off with investors, some of whom will be picked off -- ticked off that the stock is down that much. john, what about you? could this be just another move towards the ultimate and game? he has an excellent point, and it may be true. but at the end of the day, you are still talking about big public companies who cannot get in the business of playing games. there is the possibility that time warner can report results that do not please investors,
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then you will see the stock selloff and indeed the pressure will be on jeff. it starts with time warner's decision not to engage with fox. they could have chosen that language that could have suggested they would entertain an offer at the right price, but they did not. i think fox is looking at an uphill battle that says we do not have time to waste on a offer like this, nor can we afford to walk away and someone else come to the table -- not bid any names have surfaced. biddersotential other are busy. we did not have a potential bidding war where rupert announces his bid and others counter. no dish, no verizon. busy with trying to buy another cable company. >> busy with stuff not of their choosing. comcast says there acquisition
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of time warner cable would lead attrition. they cannot make a bid for time warner itself while they are trying to bid -- by time warner cable. >> we will be closely listening the ceo has to say tomorrow when time warner reports earnings. disney reported today. $12.5 billion. up 8%. 2.3 billion net income. john, you spoke with disney ceo bob iger about disney. also about time warner just after we found out that this bid had been withdrawn. >> it was a big quarter for disney, but how would you not want to know how bob tiger woods
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reacts to an announcement like this. here's what he had to say. just heard this as well, so i can only speculate. i am guessing the offer that was it, was-- that was made not well received. i am guessing the chairman, unless time warner was a willing to engage, he was going to have a hard time it accomplishing what he wanted to accomplish. it is tough to do under hostile circumstances. i can only speculate that rupert did not wish to pursue it under hostile circumstances. if the walt disney company, if there is an opportunity for you to jump into the mix? are there assets that time warner has that interest you? comment not typically about potential for an acquisition. it should not mean that we are interested in this. they have some great assets, by the way.
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we like content. but that should not mean that we are looking to acquire them all or any part of them. landscape?ut the what does this mean for the consumer? even before the discussion about fox and time warner? direct tv. what does this mean for the direct consumer? merger oft think the two somewhat similar content companies like time warner and 21st century fox necessarily would have any impact on the consumer at all. i do not think that is what it is about. i do not think the combination of distributors is about the consumer, either. pointrstand that selling has been made by those that are combining. i do not think it is about the consumer. gainingit it is about
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scale and creating economies of scale, and not necessarily passing those economies onto the consumer. in theay be value technology side, where greater investment and technology may be , but event to the consumer i do not view those combinations as being consumer-driven. >> as we look at your business, and performance was strong across the quarter, let us start with es pn. a huge part of the profit story, one we heard fox was interested in, people look at what that means for fox sports one and espn. how do you stay competitive when you are on top? >> i am pleased with this quarter. isphighest from an esp -- standpoint than any. this is a quarter that we
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if notr among the best, the best. in terms of staying on top, it is pretty obvious from our strategy and assets. we believe you have to make rate content. create or nurture great brands or franchises that in today's world, with so much consumer choice, more than we have ever seen before, content not only has to be good but rants are very important. is aians of the galaxy great example. people said it came out of nowhere because the characters were not well known. the title was not well known. but the marvel rand is something that an consumer's eyes really means something and it should be arrested because they have a good record of making films. in today's world that serves marvel well. it serves disney well. it will continue to serve companies in this space well.
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with the matter. analysts predict apple will sell a record number of handsets due to demand for larger screens. two new iphones with bigger screens. this one is four inches, right? up, a 4.7 is green inch five point five screen. apple has lost market share as samsung and others announced bigger devices. there is an appetite for these, have thatgoing to size. whether it will be something entirely new, or them keeping -- >> 5.5 inches. that is big. what does it mean for the ipad, given that the ipad sales are slowing down. >> part of that is that people
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are doing more everyday things on their phone. a bigger phone is good enough for a lot of people to browse the web or shop for some thing or look at their facebook or twitter or things like that. so, you have seen those sales pull back. this might exaggerate it. it might not. apple executives say next fall will be the most exciting release for apple ever. is there anything more? is it just iphones? >> they are dangling a little bit there to keep people excited and ultimately we will have to wait and see what they do. there are expectations beyond the phones. pent-up demand for new ipads expected. wearable devices.
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they will eventually come out this year in time for the holidays. these are the sorts of things people are looking for. this is when things really gear up coming out of the summer and going into the fall. making sure shelves are stocked for the holiday. do they normally have market for products like these in the fall? i know there is at least one. >> almost exactly the same day last year, the second tuesday in september, they announced the same one. they have a few events between now and the knit -- the end of the year, historically. >> what about someone who said this is never going to happen? the unicorn? >> exactly. update in the works for a set top box. they are not going to do -- it
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is an open question about a flatscreen tv. it is not particularly profitable. with the setup box, you can plug into existing devices. the big question with television is it comes out to content, and getting those deals worked out with the media companies. >> we have been covering how samsung has been changing, they by the upstart, what opportunity does apple have to win some of samsung's market share? what are analysts thinking? what will happen if these two new iphones are released? >> i think this is going to be apple's biggest release ever. there is a pent-up demand. that could potentially reach into samsung's market share.
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unique is in the situation that they are trying to be the phone company for all people. they have the high-end with the galaxy line, and the lower end popular. been apple continues to be popular at the high-end. and the upstarts are challenging at the low end. they are in a low -- they are challenging themselves. 9.september we will be there. >> the fishermen of deadliest catch risk their lives to catch crab. we will ask one of the stars of the show about tonight's big season finale.
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>> i am emily chang, and this is "bloomberg west." for war on minute -- four more on what makes the show so popular, the captain himself is here. via skype from dallas. for joining us. congrats on the finale tonight. i hear it is going to be an epic finale. give us some hints. what will we see? >> the season was difficult for all of us. we had some severe weather and it ended with a bang up. >> if you are going on a roller coaster ride, that is what tonight's show will be about.
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last, hit with an arctic a hurricane, and had some serious issues on a number of boats. one was actually at the dock. miles from shore in and be in jeopardy or you can be 75 feet from shore and be in jeopardy. >> i can see why you would be in landlocked dallas as opposed to nome, alaska. asked when i watched the show, what is it that makes it successful now? i get the germanic element. i get the suspense and thrill. the why is it such a hit in 2014? >> i think a lot of credit goes to the editors and everybody associated. the cameramen. they have been increased and improved everything.
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they more or less capture everything we do here in and year out in more detail. they do a better job of following up on stories. slowly but surely bringing a documentary about fishing in alaska to live on tuesday nights on the discovery channel. >> how realistic is the show? i understand your job is dangerous, but how much are you theing them -- or cells in situations for television, and how often would you find yourself in those situations without cameras? >> we do not put ourselves in any situations for television or television cameras. my insurance alone is astronomical. evasiveing, i take accidents,revent injuries, severe weather.
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to be honest, as much as everybody loves to watch it, i do not. those are my guys. those are the lives i am responsible for. we do nothing for the cameras. we basically go fish. that is what we do. >> i am told you wear a ski bum in tahoe before this. why do you do this when you have other options? most people fish because they were born with it, or do not fish for long because they do not want to be stuck with it. there are better things to do in the world. no? >> this will be my 30th anniversary in the bering sea. i am a fisherman. that is what i do. even not know or plan or think i would ever become a fisherman. doing it, i started loved the sea but i hated the water -- the work. then i hated the work but i still loved the scene. so what can i do.
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light quality. nana leaf is an interesting startup. can last 20 ball times longer than regular bulbs. this is your light. bonkers looking hair. it looks like a rubik's cube. talk to me about your design. led is not particularly new. >> really, the innovation is around the energy efficiency. everything we do is around the energy efficiency, including the shape. is shape of the light bulb purposefully done that way to emit light in all directions. incandescent light bulb. >> why this shape? >> it is a dodecahedron. side is the same shape,
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and every angle is the same. it makes it structurally sound. every single side is the same shape. every angle is the same. >> why? why is this more energy-efficient? the problem with the led is that it emits lights 180 degrees. degrees,to get it 160 we had the fold the light into the shape to get it to go in all directions. this is custom designed by our engineering team. we custom package these to make it more efficient. >> which -- what makes the chips more efficient? led technology. much better than cfl. cfl is condensed mercury and harmful to the environment. >> are those who do not know, that is the curlicue blights.
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they have longer life. but terrible quality of light. like doctors office bright. one, you introduce a problem. >> led operates more efficiently. and it is cooler as well. this is a lightbulb. this is a light. this is very unique. created a lightbulb the dams without a dimmer switch. it's dim now. now it's light. it?do you do >> you switch the light on and off very quickly. in, clickt to lock it it again very quickly. there is a built-in microchip that allows you to dim the light with just the control signal from a regular on the-office
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switch. on first.o turn it it takes three seconds to wrap up. then you can lock it in. you have to do it quick. on. off. on. it is really an efficiency aspect. when you dim your lights, it helps save energy. for example, at 50% brightness that uses only quarter of the energy. instead of using 10 watts, it uses 2.5 watts. will getume people sticker shock. what is the cost? >> right now it is on kickstarter at $40. that includes free international shipping. is cheaper than leds out there? >> no. prices are dropping 20% per year. >> i want to go back 15-20 years. it was color. i went on a crazy staycation day
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when i got so frustrated that i ordered every single kind of led light on amazon and tried out every color in the room to pick up what i wanted. they are all over the map. talk about the evolution of color. >> when we first introduced it, it was a cool white. we upgraded it to a warm white. lightics the incandescent . it does not have that hospital feel to it. also a color rendering index, right? >> yes. this one is at 80. for consumer lighting, this is a new standard. >> talk to me about the funding of your business. why kickstarter? is what made us a
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company today. we had a kickstarter last year for the world's most of -- the world's most energy-efficient light bulbs. we have a kickstarter campaign right now. we are about $120,000 raised. it is amazing to get support from so many people who believe in our cause. it has helped us get on our feet. >> better from venture funding? >> we did get some venture funding this year. from horizon ventures and another. there is a lot of big players out there in the led market, we are the little guys. >> i am all for better light. thank you very much. yourhave been looking at calendar and i noticed you have some vacation days. if you want to take another day off, i would gradually -- i would gladly have you over my house to help. i have tried some stamps -- some
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>> welcome back to "bloomberg west." i am emily chang. is hostingbama several dozen leaders and just announced 14 billion dollars in commitments from u.s. businesses to invest in africa. among those making the pledge, and ibm. our correspondent joins us now. take it away. >> take you for joining me. he isoined by j ireland,
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the ceo of ge in africa. ge.llion is coming from walk us through that. is 2.4 billion, actually. over the next two years. it will be across a number of different countries and areas. localization, capacity building, skills building, and investment in facilities. it is a combination of some manufacturing assembly facilities that we will see in algeria, nigeria, angola, south africa. innovation center in south africa. skills building and localization work in mozambique. ethiopia, some local assembly. growth in one.e it will be broad-based. >> what is remarkable is you
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told me you are going to take across the map and hit almost every region. you have a good sense of africa-wide growth. i know it is hard to talk about africa as one single unit. it are recharging about 4% growth? 5% growth? >> if you -- exclude south africa, it is five for-five and a half total. the growth is tremendous. .5%. 5.5 total -- 5 or we have jobs in the u.s. that make engine's and we ship them to south africa where we finish assembly. it is about a 50-50 split.
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in nigeria, we will be doing oil as gas equipment as well power generation packaging. in angola, it will be distributed energy. in algeria, it will be gas turbine manufacturing. in ethiopia, some ultrasounds. we will do final assembly in-country. it is a wide range of product and countries. -- and companies. so 4000 by 2018? >> definitely. maybe sooner. >> on electrification, are they gas-fired? coal-fired? the animal spirits here are excited. >> without power and electricity, africa will not continue to grow. of needs to be a portfolio
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fuels to drive the power. whether it is hydro, wind, geothermal, gas, coal, as well as all of the other potentials. from our perspective, we are big in gas and steam. we need to get the fuels to is.e the power we are putting projects in gas-two-power. we're trying to do a holistic generation power from fuel to utility. that is not typical of what we do. the project is in ghana. it is called ghana 1000. we're looking under the -- working under the power africa agreement of the united states. we are putting in development capital along with some u.s. partners. we're going to continue to grow that and do the holistic view of it.
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war,ana, next a court of we have library, syria. there has been a lot of talk on ebola. we have the travel advisories put out. we have put out our own medical advisory with employees. from our perspective, we are very concerned and we take the health of our employees very seriously. >> let's talk about critical stability. not all of the countries you're in our paragons of good government or stability. what must you do to convince investors to make a long-term investment? >> the perception of risk versus reality. a lot of it is around a local. having your contracts, projects, continued across multiple administrations is key. we are seeing that in many countries. the stability on the political -- you know,ll
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they are still a relatively new country. gone i is about my age. when you think about us in the in our 59-60 years, there is a lot of growth. you see a lot of improvement. governance. transparency. the role of law. >> some challenges in kenya, where you are based. is athink. but that security thing. we understand that. we are in 160 countries around the world. we know how to do that. we understand the best thing is to grow the economy. get able employee. continue to see growth. then people are happy and want to be part of the solution. >> it sounds like you are part of the solution. you are certainly part of the
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bill gates. what is the technology behind hampton creek? joining us here now is the founder. mayonnaise fore the first time today and preparation for your arrival and it is really good. you try the aaa? >> i tried it. we have some jars here. this is the most politically incorrect thing to say, but i love mayonnaise. none of the low-fat stuff. >> you think like most people, and that is why we started out with mayo. our big eyed a is that food just needs to get better. it needs to be healthier, it needs to be more affordable. we are starting out by saying there are 400,000 plant species around the world. we can use them to make everyday food at her. not have to talk about
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sustainability, although we believe in it. the trick is figuring out how to make the good thing work for you. out oft mayonnaise made eggs? what is in there? >> eggs are one little piece of the food system. most of them do not always come from the best place they come from places that are not the safest. some environmental issues. we identified one piece of this food system to make better with plans. instead of an egg giving you that nice mouth feeling, color, and texture you want to make a aod potato salad, we use plant, we you news biochemistry to make everything better starting, but not ending, with the conventional egg. >> is it healthier?
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have anys not cholesterol. let's say you're having a hamburger. the hamburger suddenly has 18% less cholesterol because you are using this instead of the other. hurting million americans have egg allergies or sensitivities. so it is good for the moms of those kids. bit less saturated fat. you also may cookie dough. another favorite of mine. this has no egg in it. you are selling this stuff now. you've got a new retailer. >> we do. we have been really fortunate to making food idea of better for everyone with the -- thatgy that take makes awesome products. we are going to begin this movement was started on august 24. one of the retailers in the line onat really has a
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how we are doing this and why we're doing this in the first place. onother grocery chains are board too. >> safeway, whole foods, an incredible amount of traction. >> what is next? what else can we make without eggs. will we be eating fake chicken next? nextll the key to what is is outside the congressional egg. we have rising rates of diabetes. maybe sugar is not the best thing we should have. thate identifying plants are better than sugar. we are identifying plants that could be a hyper source of protein for developing people. -- people in the developing world. i think i may have to throw out the best foods i had started up at home. we will keep our eye on you guys
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and watch what is going next. now it is time for "bwest byte," where we focus on one umber that tells a whole lot. >> give me a bite, emily. why don't you tell us? is 100bite i chose million dollars. that is the amount that beyoncé enter on the run tour are expected to bring in. they are arriving in san francisco today. i have to give my producer some props, because i was on camera when these went on sale. so bunch of us are going to the concert. a lot of speculation about whether the concert is happening, whether they're going to remain married, but i do not care. i don't care. i just want to see them perform. >> you will see them. [laughter] thehat is going on with
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marriage? >> marriage aside, and following on your mayonnaise segment, they are still the real deal. you are still going to go see them, regardless. they put on a big show here. i have no scoop for you tonight. >> i do not think he quite understands our love. you have a conspiracy theory that they stay together of the -- until the end tour. >> this is the second to the last day of the tour in the united states. they are going to paris in september, they have two shows there. if they are going to keep up the forde, they need to do it another two weeks at least. >> we will send you there. >> i will go to paris, and you can change all the lightbulbs in my house. how about that? is definitelyat
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