>> live from pier three in san this is "bloomberg west." is buzz feed known for its list quizzes and viral content on its way to becoming the next big media company? millionust raised $50 from andries and horowitz and will use the might to improve its movie studio and expand internationally. can the company deliver or is it just a buzz? at disney.aking aim amazon is locking dvd pre-orders

due toming disney orders a pricing dispute. disney is directing customers to walmart. it is shark week, one of the most critical weeks of the year. -- for the discovery channel. an underwater drone got involved and it is equipped with five cameras designed to swim with the sharks and track their every move. we talked with one of the scientists behind the shark swimming drone. feed them of the website popular for quizzes and increasingly more general news gets a major round of funding to help it grow. andrew buzz feed style, here are the top five things you need to know -- buzz feed is getting $50 million in series e funding from andreesen karo with. , buzz feed valuation is reportedly 50 -- $150 million.

three, buzz people use the money to convert his video division into buzz feed motion pictures which will produce everything short clips to full-length movies. the money will also let buzz feed x and internationally. feed is among the top 10 most visited u.s. news and information sites with an average 150 million buzz feed viewers compared to 31 million viewers for the new york times website. joining us now is a former equity analyst and is a bloomberg contributing editor. he joins us from san diego. buzz he is famous for these lists -- canopy, giant media company as well? i think it is a giant media company. it's just not the kind of company that you and i most like. i was listening to your list of the top five things -- the thing that was missing was a it was in cap.

this is the joke that so many buzz feed things have hacked our attention, the ability to get stuff in front of people and turn it into a list and get it out there and generate traffic and that is a business. whether that means is anything bigger than what it looks like, it's hard to see right now. lots of company look like toys and early growth days and that is the pitch. from this to something more bigger and profitable will be very difficult to see. i struggle to figure out how that works. titansve got many tech investing in new media. mark andreessen has been particularly bullish on new media and journalism.

do you agree? -- we are media living examples -- is going through a wrenching translation -- transition. i think it will get larger but it will not look anything like -- what it currently looks like. as far as asking ourselves of buzz feed is the next "new york answeror bloomberg, the is no. it's something else. we are creating from bottom to top, an entirely different form of media and it will not look anything like the old thing. madef the pitch that was in making this deal is it sort of exemplifies the full stack investing mile that that model that chris dixon had that the whole industry needs to be reengineered from top to bottom. they say the old suppliers will not be there anymore. i think that's what you're seeing so the notion that it will turn into something where from either with his completely

wrong. i think that will make people resort to despair. >> joining me in the studio is and now ar of gigaohm partner at true ventures. you have lived the rise of companies like the huffington post. even though these companies are getting traffic, can they be profitable? look atutely, if you buzz feed, they are profitable according to the new york times article. that one was a surprise. i think paul is onto something. you have to stop looking at these companies as news companies and more as attention companies. if you have the attention, you have the business. advertisers will want to go there. you can sell them other things like movies and music or e-books or whatever. i think buzz feed is essentially in a good position to capture a

big part of the media market. some of the older guys are kind of doing the same old, same old. gawker is an adaptive company and has adapted well from blog to a much more nimble social oriented media company. i think we should stop comparing. they are not the same company and they are very different and what my company is different from what buzz feed is. we are essentially doing generally the same thing but not in the same industry. >> how profitable can they be? we have talked about the value of clicks. one kind of click is more valuable than another. valuablef user is more than another. 75% of buzzy traffic is coming from social media. is that dangerous? are they overly reliant on social media? >> absolutely, that is the risk

every media company runs. , they relied on google and google changed their mind and things went south pretty fast. i think buzz feed has that risk. there are many more large platforms today. pinterestnterest -- and tumblr so there is less risk. on the profit side, i think that is the weakest criticism we can make against them. their costs are minimal compared to a traditional media organization. they are not sending people around the world establishing bureaus. they don't need to do that. you can put together catalyst from anywhere so their costs are much lower than traditional media companies. if anything, it can be intensely profitable but the biggest risk is that the algorithms change

and suddenly the traffic shrinks dramatically and that's what they have to engineer at dance. >> they are not establishing euros but i was looking closely at their reporting in ukraine when the malaysian plane went down. they are working more on longform journalism. are they giving companies like oak wrote the new york times" a run for their money? >> i don't think they are doing the same thing. modelre looking at a new of creating content for all-new generation of viewers or readers , people who want to be entertained. we have this holier than thou notion of news. what buzz feed has done is turn that into a very nice entertainment package. ukraine toomebody to do a story but there is value to that. the reality is that the majority of their this mess will come

from being entertainment oriented. >> what about major motion pictures? what do you think of buzzy doing full-length feature films? but marcuslike it smart or than i am. -- but mark is smarter than i am. the graveyard of broken media companies and investment is very long. withat roger mcnamee elevation partners. there are many different times to build investment vehicles around entertainment and around building the content products in movies but the cost structure of movies is so broken, it's very difficult to see how that's a profitable venture. to get that. i understand the movie industry is broken. that does not turn into a justification for creating a movie investment vehicle. >> i am interested in the future of video -- it seems like no one

has been able to crack the real value of video. it's difficult to organize and you cannot look at it quickly. is there something to be said for them putting investment there? >> i think youtube has done a good job of making money off of video and so has netflix. >> sure content is the key. -- you doeither that short content or the netflix model where you aggregate the tv which affects the age of today. no one wants to watch a two-hour movie but you can watch two or three episodes of television in a row. i think that's where the opportunity is for somebody and not just buzz feed. i have heard other companies will do this as well. this is an interesting time. the challenge for buzz feed is

not to get overly ambitious contenteating the grand and instead focus on what they have done and do it that are in smarter and faster in different environments. i think that will be a good balance for them to find, some news but more entertainment. let's see how that goes but i don't think this is such a bad investment. >> all right, thank you both very much. coming up, we will talk about amazon blocking pre-orders of the disney summer hit movie "captain america." it is part of the amazon negotiating expert when we return. ♪

"bloomberg west."

amazon is taking on disney in its quest to get more control over pricing. has blocked pre-orders of disney's summer hit movie "captain america," the winter soldier." and some other titles. it has used amazon recent disputes. which side will come out on top? back with us from san diego is sky and mike morehouse. obviously these disputes with amazon are now very familiar. so what ising this your take on amazon throwing its weight around again? >> i would love to believe it's for the consumers but i don't. we know what the consumers want -- they want to get their content when they wanted. it used to be a cliché and now it is a truism. i imagine it has to be for them and their continued effort to

claw their way to some form of profitability. >> what about you, paul? we see this again and again from amazon. hette dispute is the going on for months and no one is backing down. entrenchedot pretty interests in both sides which is a good example of where the problems are in the system. you have someone with the lock hold on monopolized distribution which is amazon and a relatively of contentr producers going through various publishing houses. they are focused through their and those choke points creates people who think they have an awful lot of power in terms of distribution. classic gang. problem where everyone thinks they have monopoly power. they stay out for long periods of time. it will be interesting to watch whether this will cause more of a push toward different just

edition of disney. they won't say they want someone standing between them and the consumers. >> in this case, it's amazon making the move. however, disney is known for pulling its own content. i tried to buy "the lion king" at home and i would've paid $25 and it's nowhere ar. from the point of view of lam the people making this content, who has the power? >> disney has always tractors the dynamic inventory. they have titles that are not available at certain times but fundamentally, they are usually proconsumer. we tend to say content is king. i think there is a lot of distribution avenues. blocked disneye

dvds today and had no problem finding them on google. they both have a little bit of power. prices will come down. digital streaming will go up. it's hard for me to see how amazon comes out looking like the good guy on this one. >> does amazon when anyway? -- win anyway? who will be the victor? run, amazon is likely to extract some concessions but i don't know how much. there is the potential for consumers to get lower prices and amazon to be more profitable. in the longer run, the winner is going to be consumers who will find that they can get product through different channels and don't have to rely on places like amazon. ups is just going to speed the process by which everything comes over the top and around points.ds these lock it's remarkable how shortsighted people can be.

people find ways to get around this kind of blockage. cannoton is saying you buy it here but you can buy it at best buy. they are directing people to their competitors. i don't understand. what is the point? >> there isn't one. it's purely punitive. it sounds like a lot of manipulation and some testing and it sounds like digital analytics on steroids. >> i'm curious to hear your bots on the cachette dispute. amazon: authors to literally e-mailed the ceo of hachette./ at the same time, you have authors as famous as malcolm gladwell and stephen king mounting an anti-amazon to petition. we talked to authors on both side of this dispute. shouldis saying e-books

be cheaper and publishers are driving prices up and then you have authors who are loyal to publishers and some want to sell books. >> and there is the tension. at the idea of even publishers advances. -- most of teachers and the system has been broken for some time so this represents a rearguard attempt to support those broken economics in the publishing industry. one way or the other, it is going to break down. it has to because consumers want to break down. they have no rationale for e-books being the same prices print walks. -- printed books. . it doesn't watch when you are a consumer. i think this way very difficult to hold back the tide. >> thank you both very much.

we'll continue to watch others plays out. it is that time of year again -- shark week kicked off on the discovery channel and we go behind-the-scenes with one of the creators of the shark cam coming up next. ♪

>> you can always get the latest

headlines at bloomberg.com and on your mobile device. snapchat fundraising talks with alibaba are over. the mobile app known for its disappearing messages was in talks with investors including alibaba for a financing round that would value snap chat at $10 billion. people have said last week that alibaba has reported -- has reportedly left the door open to resume conversations after its public offering and snapchat is preparing to raise cash. it authorized 17.4 million shares of new preferred stock earlier this month. for many tech companies, the dress code is slack or nonexistent. it is the mark zuckerberg look with genes, sneakers but leave it to ryan seacrest to is adding designer to his resume. radio and tv personality and producers now trying to dress up going into technology

and other fields and make a good first impression and build the brand. he is launching a new clothing line called ryan seacrest distinction. he sat down with bloomberg to can about how one's outfit set an important first impression. >> we want to get it right out of the gate. the first impression, the suits are about first impressions. andtalk about millenials going out for the first interview or meeting for a job. that's a first impression. this launches a first impression. >> his line launches in september at macy's. nigeria has confirmed that ebola has spread to africa's most populous nation. we will speak to one of the doctors treating the two americans who contracted the virus about how technology is helping their recovery and helping to keep others safe. ♪ >> it is 26 minutes past the

error which means bloomberg television is "on the markets." we are seeing an increase today building on some of the gains we had last week. there seems to be some reassuring news on the geopolitical front. we will have more of that later are in ♪

>> you are watching "bloomberg west." i am emily chang. the outbreak of the bowl in west africa is the worst ever with the world health organization confirming that more than 900 people have been killed by the virus. the vast majority of cases are in sierra liaison, guinea, and liberia, the virus is now spread to nigeria. there saysminister there are 10 confirmed cases in his country, africa's most populous. dr. kent brantley, one of the two american aid workers being treated at emory university hospital said he is going -- is growing stronger every day.

team that was on the transported these two americans to emory and joins me now from atlanta. thank you so much for joining us. i know you are very busy right now with very important things to do. you cannot comment on the status because oftients privacy rules but i want to ask you in general -- talk to me about the operation at emory hospital. this is one of the most state-of-the-art hospitals in the country. what kind of protections and technologies are in place to make sure that this disease does not spread? >> thanks again for the invitation. in the entire transport of the patients from liberia back to and toanta metro area the emory university of hospital isolation unit, the primary mission is to take appear the patient and provide the support of care while protecting the health care workers and understand get exposed.

much of the technology that is applied in both the transport element and in the hospital is the same. the goal is to not he come in contact with some of the infectious bodily fluid. typically that requires is to try and provide the health care worker the appropriate protections. you have seen this on the videos. they are typically wearing a water impervious suit that pretty much covers them from head to toe. then you also see these workers wearing what's called a hodded purifying respirator. i want to stress this -- the centers for disease control publishes the guidelines that we are well aware of to help prevent the transmission of this illness. standardire all three, , contact, and drop-off percussions. no help worker in and what else can get in contact with any infectious bodily fluids. some of what you see on

television around the powered air purifying mechanism in the are more practical because it keeps the provider covered head to toe and keeps the provider cool because that powered respirator is low in cool air over their face. some of what you see on television is a result of practical considerations, the cdc guidance that stresses standard, contact and drop-off percussions. that is strictly required to prevent transmission of the illness. has been quite controversial whether these american should have been brought back to the united states and the kind of drugs they are being given. now that they are here, how confident are you that you can keep the disease contained and not of the people working with these patients will contract the disease? are you 100% confident? >> my confidence is absolute

that the health care workers that have come in contact with ande two patients are safe they did not get exposed to any infectious bodily fluids and i'm also very familiar with all of the procedures to ensure that no one and the health care setting or outside the health care setting could get exposed to any infectious bodily fluids. my confidence on this issue is that it is 100% safe. >> one of the nurses from emory hospital wrote an op-ed in "washington post" that got some backlash but her point was that we want these patients to come here and we want to learn from them. what have you learned so far? grant to is the chief nursing officer for emory health care is the one who wrote that article. i thought it was very well written. what reminds us is that while there is a lot of discussion about policies and procedures in different technology being applied, the real story is about two american humanitarian aid workers who got ill with a

horrible disease and are looking for their best opportunity for a full recovery. i think that emory university hospital and the staff and others working together to make this happen is going to provide these two americans their best opportunity for a full recovery. as an academic health center, that is something we are committed to every day. these two patients as well. >> as i understand, emory hospital is actually prepared to handle diseases that are much more serious and much more contagious than ebola. you explain the capabilities of the facility and what kinds of diseases are we talking about? >> this particular isolation unit was developed with novel emerging infections in mind -- in other words, you have all heard about novel influence of in 2009 which1n1

did not make people that set. 11 makes people very sick and other novel influenza viruses we have not considered. as they emerge, the scientists and the epidemiologists don't know that much about these novel emerging infections when they first come out. we are not so sure how sick it will make people and we are not sure about all of the modes of transmission or what the range of the modes of transmission are. and isolation unit like the one here is specifically designed to accommodate those individuals that might get sick with a novel infection where not everything about that infection is well-known that all the containment procedures are in all the health care workers and anyone around that unit are completely isolated from that individual. that is what this isolation unit does. it separates other patients from -- from othery university patients and those

patients would be isolated. at you are right, the means by which ebola virus is transmitted mostly understood and contact and drop-off percussions but other infectious diseases like sars require additional protections meaning that illness can be transmitted from person to person by airborne means or by aerosol. this unit would be capable of doing that as well. many hospitals, maybe all hospitals in the united states, have a capability to manage a patient that requires aerosol precautions but in the case of illnesses that are novel and new and not every mode of transmission is well understood, that capability has to be executed with extreme and a meticulous oppression of the health care workers in the isolation unit are educated and trained to do -- to exercise those percussions up through airborne and aerosol

transmission with meticulous care for their own safety and the safety of those around and in a way they can provide the best care to the patient and hope we can get a full recovery from that patient. one last question about the experimental drug that has not been approved -- i asked you but your confidence level in the facility but how confident are you that this drug is indeed the right drug and you are not going to be seeing negative side that people are concerned about. of respect for the patient's family, we're not talking about any specific treatments the patients are receiving. that makes it difficult for me to comment about any specific intervention. that the vastis majority of care provided to patients suffering from ebola virus disease is in that category of supportive care meaning supporting their

breathing, supporting their blood circulation and supporting their kidneys ability to function and other vital organs. that kind of care would be healthd at any capable institution in the united states with the resources they have. specific interventions on experiment will treatments, out of respect for the privacy of the family, we are not talking about that so much. more information about those experimental interventions can be found for example on the cdc website. there has been so much interest in that. there is good information on the cdc website now that the entire top elation can access to learn more about that. >> thank you so much for being with us. care forelping to these two american patients who contracted ebola and are now being treated in the united states. what happens when you throw an 80 pound autonomous vessel

covered in go pro cameras off the gulf of mexico? we will cover sure quick next on "bloomberg west."

>> welcome back. year, shark week has kicked up on the discovery channel and this year, discovery will feature footage captured by the oceanographic institutions at 9 p.m.k cam eastern. this specially designed autonomous underwater vehicle or prosquipped with six go was dropped off the gulf of mexico to capture sharks. look at what happened. wow, it almost doesn't look real. was part ofngineer

the team that developed this shark cam and joins me now via skype. that is pretty incredible. are you surprised at what you captured on this thing? >> we were absolutely stunned. we were following another shark and the shark, the one you just saw, attacked the vehicle. we had no idea this was going to happen. we have been teased that all the sharks will go after it. but he that publicly said they will live alone and he did not expect it and we did not expect it. then we saw this. >> is that the craziest thing that happened? how many more moments like this were there? >> i think in all, the vehicle was attacked about 10 different times. them ant a number of excellent camera footage such as what you saw but also shots of the vehicle being attacked -- you see the chart -- the shark

coming up in the depths. you got great close-ups. also we got other footage of different behaviors where the indicated territorial behavior. how did you build this thing and how did you direct this thing inhabited nowhere to go? the oceanographic systems lab has been working on this vehicle for 20 years now. it is autonomous or you can give a set of instructions and it follows them. essentially, we tagged the shark and that puts a transponder on it. we ping the transponder and get a response and the round-trip travel time gives us the range and using an acoustic estimate, we can determine the bearings to catch up to the shark. >> i am completely stunned.

we are watching footage of these sharks stalking the camera. how did the drone return? wasn't alive in one piece? we went through three stages with this thing -- journey,as the initial we saw anomalies and the data, things that did not look right. we asked the captain how deep the water was. we figured maybe it was running into the bottom and we found out it was hundreds of meters deep. then we recovered the vehicle and was astounded to see clear jaw marks, teeth marks in the stern of the vehicle. the third time when we got to view the footage, they filled as of viewing the footage for the first time and we are all just absolutely shocked. we jumped out of our seats. >> you have been using these

vehicles in other situations. what else is the strong capable of? vehicle is part of a family of vehicles. rated forremus 100 100 meters down but there is a 600 which is a little bigger and eight remus 6000 which is rated for four miles depth in the ocean. that vehicle is the one that was used to find in air france 447 when it crashed off of brazil. we have done a lot of different tasks and jobs with us. >> how about the missing malaysian jetliner that still has not been found? they believe it is at the bottom of the indian ocean? >> i think they'd decided to use a tone system but once they find the wreckage, we may be involved. >> what about the footage? i am impressed by what these g opro cameras captured.

this is being integrated into the discovery channel and shark week but what about movies and motion pictures? of what thatress technology has done. and ire fairly low-cost give superb video. there is a lot of shots in the of a drone mounted helicopter of aerial views and we have terrific footage. drone thaty a small is maybe two feet in diameter. >> it's amazing stuff. we will be watching tonight at 9 p.m. eastern on the discovery channel to see your footage. thank you so much for joining us and sharing your story. the competition is fierce when

it comes to filesharing and a longtime tech giant is making serious inroads against startups. we hear the secret behind emt's success next. ♪

>> as competition heats up in the cloud, filesharing leaders are emerging. is giving dropbox stiff competition. cory johnson spoke with the simplicity general manager about what they are doing. >> productivity is a big problem. -- if you think about what is happening in the enterprise, looking to provide secure systems but the secure systems don't have a good user experience and one of the most insecure things you can do is give a secure system a bad user experience. then users will go to other tools. that puts intellectual property at risk. appleook at the news that

is doing a content delivery network as evidence they may be thinking about this exact kind of service and thinking about ways that icloud could offer a solution like yours. >> the nice part of those vendors like apple is we treat every platform as a first-class citizen like android or ios or windows. apple does not do that. we are focused on the enterprise needs. in time, you will see these markets develop capabilities that will be very different. we might have capabilities very focused on the individual while they are at work rather than at home. >> in the 3.5 years i have been doing the show, i don't think we have had this -- ever said the word magic quadrant. the magic quadrant that you score highly on is so important for i.t. decision-makers. on the one scale, it shows the breadth of your ideas and the

other scale shows your ability to do that stuff. you guys scored high on all of that. what does that mean for you in the marketplace? >> fundamentally, this is a mass-market plight prayed we believe there'll be hundreds of mines of users that will start using this. quadrantk at the magic as an indicator of who they will go with. >> you could have scaled back your offering but you have not. why not? how do you decide to go after somebody things at once? >> we feel we are just a started so there is a tremendous potential for going out and making users productive. one thing that is offensive to us is how that enterprise software is for the user. we want to make sure when we make a delightful user that is secure for the enterprise and that combination is a rare combination that no one does well. >> give me a software spirit that is delightful. moste 32nd rule -- and mobile applications, you typically have the user and gives you 30 seconds. you don't30 seconds, emotionally connect with the user, they will not use your

software anymore. it's that fast. we have set 32nd spot be too much for it let's go with the first swipe. the first time you swipe on the application, you should fall in love with it. our tagline is " love at first ."ipe you >> there is a suggestion that you have the breadth of offering come you don't have a lot of users. competitors like dropbox have more. consumerave a lot of users but if you think about the enterprise, it's different serving 20 or 30 million consumers that it is serving large enterprises. we've got 150,000 seat customers. our goal is to go out and focus on the enterprise market making sure you can address those needs rather than going into sharing apps for consumers. >> what is next? when you score this grade rating, does it help you march

into plants that were not able to buy before and it changes their mind? >> we have seen that a lot where customers have been dissatisfied with some of the competitor offerings and have come back to us. they have seen the magic quadrant and we see this as a mass-market plight. over the next three or four years, i think it will be -- there will be four or five major players in this market. it will be us, google, microsoft, and from a small company perspective, dropbox. it will be a race for these five and who will go up when. following this to ipo and will continue to do that. thank you so much for watching this edition of "bloomberg west." you can get the latest headlines on on bloomberg television, streaming on your phone, your tablet, and bloomberg.com and now available on apple tv and amazon fire. and we are on-demand as well. we are everywhere. thanks so much.

from bloomberg world court in new york i am mark crumpton. this is bottom line. the intersection of business and economics with a mainstream perspective. today we look at the effectiveness of u.s. airstrikes in northern iraq. and then amazon takes on the disney superheroes. to our viewers here in the united states and to those of us around the world, welcome to we have full coverage of the stocks and the stories making headlines