>> welcome to bloomberg west, where we cover an ovation, technology, and the future. innovation, technology, and the future. >> president obama sends condolences to canada after a shooting attack on parliament and the nearby war memorial.

more customers are banking online. bank closures will be announced when the company reports earnings. mobilephone carriers battling for market share. verizon,on from sprint, and t-mobile could be taking a bite out of at&t's business. third-quarter sales rose 2%, but to $3 dropped 21% billion. again inred third-quarter revenue. yelp also got more profit of

three and a half million dollars. the company said fourth-quarter revenue would be below estimates. stone in sanrad francisco. our lead story. raises money from yahoo!. they recently completed a deal that values the startup at $10 billion according to people familiar. received funding and is looking to raise even more cash. lou, you invest in social media companies. why is yahoo! investing in snapchat, and is it a good bet?

>> they reported 1% growth in revenue. the stock goes up. that shows how lau -- how low expectations are. by investing, it helps make yahoo! a cooler place. being a cooler place helps. we are moving into a world that is increasingly mobile. more abouthelp learn what is going on. by being involved with snapchat, that is going to be good for yahoo!. >> we talk about this when it comes to dropbox. $10 billion?worth >> everybody is looking for

something to take off. they are making the assumption it would be worth more than 10 billion down the road. snapchat turned down a 3 billion acquisition from facebook. sucker berg says it is worth 3 billion. maybe it is worth more than that. how good does he think it have to be? >> there are other suitors for snapchat. yahoo!? why is their capital more interesting? can beway yahoo interesting is the very early days. they suggested their first advertising deal.

what the core competency is is monetizing traffic. snapchat has a lot to monetize. i think there is a lot of opportunity between the companies. >> this isn't over. where else do they go to complete the fundraising? >> bloomberg reported alibaba was interested. they were in the middle of preparing for their own ipo. it is possible alibaba could come back into the mix. everyone wants a piece of snapchat. they have to go through those options and see who is willing to give the best deal. socialfounder of the media fund. turning to twitter, earlier today they made it easier to build mobile applications on

twitter. they play a key role in the effort to win over mobile developers. is reggie and thomas , the founder of a social software management system. tell us what fabric is, how twitter is making this deal. mobile development kit they can use to get beta and finally monetize mobile apps. when you think about how much monetization can mean to mom-and-pop developers who want to build a nap -- an app. >> twitter has been down this road before.

they are holding back a little bit. the fact they want to come to twitter and use the twitter app, so how much trust loving needs to be done to restore that relationship for those who have been burned the first time around? >> number one, when twitter first launched there was no control over the ecosystem. there is no consistency. twitter has learned a lot. were building on top of twitter and their core capabilities. twitter is making a much broader suite of services available. the twitter login is one component of many of those

features. >> what does it mean for the business? >> twitter is going from a large company to one that needs to be around for the long haul. when you look at companies seen in the past, the ones who have lived longer are the ones who have switched to something that is more of an infrastructure play. twitter is moving from twitter products to more of an infrastructure play, where they are hoping to get a slice of the growing mobile ecosystem. >> to make sure we fully --erstand this, tell me how is a twitter user, how does my experience with these products change?

what they have made it very easy to have a twitter based login. you can use your phone as an identity. you login with your phone number. they send you a message. you confirm you are in. you're going to see twitter ads come in. things like understanding who is using the app and getting analytics on different types of data. >> thank you so much. >> coming up, mark zuckerberg visits china. what does it mean for the company's future? you can watch a streaming on your tablet, phone, and bloomberg.com.

>> u.s. tech companies are push to improve relations with china. tim cook is in beijing meeting with china's vice premier to talk about cooperation after a report chinese hackers targeted icloud. isnwhile, mark zuckerberg also in china, where facebook has been blocked since 2009. what do the trips abroad really mean? i talked with the chief research operator about the meeting. >> i think this is about communication. steve jobs famously never engaged china.

i think this started with an engagement. you can be the victims or try to open up a dialogue. i think that is what tim cook tried to do. let's start a dialogue. been reports the chinese government may be behind this man in the middle attack. he has got to be angry. what can he tell the vice premier that may make cam him embraced- make the attitude? >> it is interesting. it tends to blend together at times. i think tim cook is saying, i want more transparency. let's open up that dialogue. that's where it starts. he has got to be really concerned with what is behind that. if you don't start the dialogue the distance increases. then you have a real problem, and you end up where facebook is

in a> we will get that second. tim cook says he thinks china will be the biggest market. are they on track? ?s this a setback >> it is potentially a setback, which is why tim cook wants to get on it. i don't think you're going to see anything associated with it. if you look at overall growth for china in general. from a target standpoint, they got to go after it. >> let's talk about facebook for a moment. instagram has been blocked in china. mark is taking a board seat. why are they trying to lower the barriers? not think it starts with

empowering the consumer and insuring any open communication is not great. zuckerberg famously said facebook is not a social media company. we are a technology company. i think he wants to demonstrate they are a technology company and that can be useful to the cities. that starts with trust. i think from their you would give this a trial. a longoing to be journey. >> yesterday's earnings report. they reported a profit. the first time in six quarters the stock is up today. >> there is cause for near-term celebration in the sense of stabilizing the ship.

the market is going to fit between 3% and 4% this year. the market grew by 1%. growing.eing mobile it is progress, but it also partsts there are other of the business that are not doing very well. how do they build a strategy that talks about what yahoo! wants to become and not what it was? >> does it give more runway with the shareholder activist? kind of limiting the ability to reinvest in the company? >> it absolutely gives leeway. i think the onus is on yahoo! to start showing the playbook as opposed to we want to get more relevant in mobile. it needs to be, what is the .lixir associated with tumbler does that compete with youtube overtime.

facebook did that because it is in our pocket. ?ow does yahoo! do that >> that was the chief research officer. the san francisco giants took game one of the world series last night, but was anyone watching?

>> i am brad stone in for emily

chang. the san francisco giants meet the kansas city royals in game one of the world series. the series began with low expectations as the tv audience was lower than previous seasons. who was watching the game? and joined by andy dalit brad in new york. let me start with you. what do we know about who watched yesterday? >> i think most of the viewing was online. i think yesterday's game was the first time the world series was streamed. typically the world series has been aging a little bit, and i think last night preliminary which put and eight, game one.ast year's

that is what fox typically does. what rad is saying about the online audience, age is low. it is down from last year. >> the dynamic has changed. this follows the lowest statistical sport. i don't pay that much attention to the ratings. a localized event. everybody in san francisco was watching. a lot of people and the rest of the country it wasn't a mega event. league is not for major baseball? >> i don't think so. commissioner bud selig is waving goodbye. people are going to talk about the ratings. at its core baseball is a regional sport. when you don't have coastal cities or chicago or somebody like that, the ratings are going to suffer. when we played the giants, it

was the lowest rated world series at the time. if it is not viewed as something spectacular with great legends from legendary teams, people shrug their shoulders, but that doesn't mean the game is suffering in any way. >> major league baseball just signed an epic tv deal, double the annual money they have last time, at the audience is down. there was that famous quote about analog dollars and digital pennies. for majorn equivalent league baseball, or are making -- are they making this work? >> i think they are making some changes, so i think you will see some more initiatives. is the achilles' heel is the blackout. if you are in san francisco you can watch -- you cannot watch a giants or is game, but in los

angeles, you can. that will give the streaming platform a big boost, and more viewing will be done online, which typically brings in younger viewers. that is part of the agreement. it is more than double what the previous agreement was. major league baseball is getting 1.55 billion dollars a year from the networks. >> there was no shortage of offense last night for the giants, but this year offense of production was way down. does that worry major league baseball? getting more boring? >> the game is ultimately the antidote to the stupidity that has been hoisted on it for generations, from the media, from informed that performance-enhancing drugs. the stall really connects organization. it is ultimately a game everyone enjoys.

you can pass time. it might not be the national pastime, but you can pass time at games. i think a game without a clock is a positive. >> are there ways for baseball to amp up production to make it more exciting? >> i think they should the careful to make it not such a three ring circus that people are turned off. analytical matrixes looking at baseball. worthll mass media is more than baseball. you have a strong argument that the people who follow statistics are loving baseball, but also the generational support is not going away, even though they talk about young kids today. >> thank you. coming up, amazon gears up for the holiday season. we given earnings preview and

discuss plans, next.

>> this is "bloomberg west." fedex is expecting record shipments for the holiday season , estimating 200 90 million packages will be shipped. what does this mean for amazon? the four we get to the holiday -- before we get to the holiday news, amazon reached an agreement to sell books on the website for agency pricing. meetingnow, amazon is

with another publisher. is this the beginning of the end? >> it seems like it could be. some of the reports about what happened is there would be some exceptions at which amazon would be able to discount the prices, but there seems to be what has been playing out. i am sure they are anxious to see what the terms are and want to see this and. >> you kind of wonder. she sent a note to her publishers saying this is a , and we sortr them of wonder if amazon is accommodating to publishers and .ouldn't go strike deals >> this has been a tough fight for amazon. from the been bruised

public relations side. there has been a lot of bad publicity. the new york times columnist came out and said they need to be investigated like standard oil. i think they are things amazon does not want next to its name. in the advisor, scott. he joins us via skype. hello. adam just talking with about -- amazon has a book publisher. we saw that deal. >> specifics were not discussed. amazon across all categories his

furry protective of the ability to -- is very protective of the ability to set rice. thesey work through different publishers, there is flexibility. i think that is one of the most important things. as the holiday season approaches, we are going to get earnings tomorrow. you had a fascinating blog post about the amazon fulfillment buildout. distribution centers they have built to make sure last year doesn't happen this year, how inoculated are they? >> it is interesting. they have been tracking fulfillment centers. amazon is very secretive about fulfillment centers, and they have more than you would inc.. what is interesting is they

said, we have 15 centers operating. that was interesting because we have never heard them use that term. fulfillment center -- let's say you order a package. it gets routed to the appropriate center in new jersey. withload up the truck packages destined to anywhere in the region. then it gets delivered to you. out to 15 ofled it the largest metros. they are doing a little more of happened isw what soy sort them into zip codes they are smarter about putting that package closer to you. this helps to sunday delivery with the u.s. postal service, but i think it also gives flexibility.

they could ship with other couriers or even deliver packages themselves. retro -- metro regions are doing the map. they say, for this zip code it is cheaper to drive our own amazon truck effectively than to ups.pm -- >> what kind of earnings does amazon delivered tomorrow? let me guess. and profit isp nonexistent. they are projecting a loss. this question about at what point will the spending stop, and to prove they can be a profitable company that people are going to be watching for. ofo maybe some indication the phone baked in their projections.

they have cut the prices to $.99, which is never a good sign. into some of the expectations. >> this is a company investing in so many different areas. down 20% this year. going to seely another lost tomorrow. does this management team pull back on any front? >> i don't know. prettythey have had a good pass from wall street on profitability. as ayou look at amazon whole, they are not profitable, but when you peel apart the onion you find there is a profitable core. that is the third-party marketplace. you know about it. about 40% of amazon items are sold by third parties. what is

interesting is amazon's revenue is lower. id. as aold a $100 retailer the revenue is $100. if they sold to a third-party revenue is $15. they don't buy it. they don't take inventory risk. they put the burden of fulfillment onto the third-party seller. and is very profitable essentially funded all of these. the investors sticking with -- they lookk at at -- the retail businesses doing better in certain geographies and is possible as well. you have parts of amazon that are profitable. to keepes the ability investing. they have proven they can keep making things profitable over time.

>> we will even there. -- leave it there. inc. you. up, -- thank you. focuses onupworthy viral content. we take you inside the growing media company next. ♪

>> i am brad stone in for emily chang. social media is everywhere, but getting people to engage and share what is important to them can be a fine art. alex takes us inside the series.

>> perfection. see what happens next. headlines have been inundated social media feed. up worthy was started in new york. the founder build it with a mission. get people to share social media. >> new york is a place of opinionated people. something.o start >> despite encouraging users to hear stories on topics ranging to gun laws.change >> you can make it accessible and compelling rather than make

people start to learn about something this important. then we could start this audience. >> those are part of the secret sauce that drives visitors each month. it is made it the 11th most popular spot. is upwardsngredient content creator. >> they hope some of it sticks. we spend that time watching things that are not good enough. >> it is on all of us. by sponsoredoney content. these are paid for by businesses who want to use an editorial to pay for business. >> they need a purpose. consumers, especially younger consumers, want to know what the

brand they are buying from actually stands for. upward is a great way to tell that story. -- upworthy is a great way to tell that story. "bloomberg west" is coming up next. ♪

>> welcome back. google is announcing a new e-mail product, calling it in box. how is it different from gmail? to point out i have

only learned about inbox recently via a google log post. aerything i know sounds like product commercial. inbox is a new system. supposed to work with a little bit of artificial to help you with your e-mail, which is constantly a problem. know what the important information is. it is not connected to live .pdates on the internet if you get an e-mail that the flight is in san francisco, that will be highlighted, and it willing to the internet and tommy whether or not my flight is on time, whether or not my flight has been canceled. plus it will hook up with the

other things on your phone. and reminders if the flight is delayed. >> is it both? ,> according to android police it is going to be tuned especially to this mobile experience. remember when gmail was first and only the cool kids had it? that is going to be the beta idea. are going topeople get it, and they will send it to their friends. >> i will do that.

down and talked about great leaders in silicon valley. >> when i was working with steve jobs and during his biography, you think he is a hero. then you realize the best thing was apple. he created a team. he knew how to get the most loyalty. they said they would walk the wall for him. he got the most talented people. is a team sport. you cannot do it alone. >> given all that. nowe is a different company

than when steve jobs was running it in the heyday. biggest purchase was $3 billion. steve jobs did not make those purchases. is tim cook doing the right thing for apple? would you steer the company in the right direction if he were around? >> i cannot channel what steve would say. the most he did say was that tim cook and the people at apple should not wake up every morning and say, what would steve do? they should say, what would apple do? i cannot wait for the watch. all iterations. >> it is part of that narrative of the digital revolution, to take the technology, make it arsenal, as opposed to creating machines that are going to think it personal, as

opposed to creating machines that are going to think for us. i think you are seeing apple move ahead on something like that. ask you wrote that book, the innovators. you talked to steve jobs. and is treasuring the youth putting the emphasis on getting things done in the 20's and 30's. where are the 50-year-olds and 60-year-olds in silicon valley? what do they do? >> i think you have to question authority. that better when you are in your 20's or 30's. >> do you have to focus exclusively on what you're doing that works. steve jobs was a great father later in life but not the best father early in life. is that what it takes? >> for better or worse you have to have a lot of passion. whether you are bill gates or surrogate brain -- or sergei

brin, you have to have a passion. in, you haveo lean to be sheryl sandberg. you have to have this limitless energy. >> not everyone has to be a ceo. >> there are many ways to make contributions. build thet going to entire company. >> everybody is looking to be a superstar. planet.is a wonderful we have all sorts of people. >> this is important. thanks for bringing this up. showingsteven ballmer some emotion. let's listen and watch.

>> i am unique in this world. the guys have done great work. bill gates obviously. steve jobs obviously. you can say, they are amazing. i wasn't just a passive or discipline. i look at the body of work and say, i feel really good. most-watcheds the and most listen. i would say that is the opposite spirit of your book. >> bomber was able to form teams. and run the company. >> yes, but if you look at the great innovators, they send the right people to surround them. bomber, paultes, allen. , paul allen. >> his book is out now.

bite is whenht -- we focus on one number that tells a lot. what do you have for us? number 26.e that is the number of years the legendary editor presided over "the washington post here go they made the post a journalistic force to be reckoned with. was he so special? maxi was a fearless editor. he steered the paper through controversial stories. the pentagon papers, watergate, and he weathered ups and downs when it came to issues such as accuracy with the janet cooke story that turned out to be a fake.

>> unbelievable. you are an editor. take from that story? >> i draw the inspiration of fearlessness. it is when you have people coming down on us. one we know our sources to be true, we go with it. we don't stop. >> inc. you. -- thank you. you can get the headlines online. we will see you tomorrow.