>> live from pier three in san francisco, welcome to "bloomberg west," where we focus on technology innovation, and the future of business. i'm cory johnson. headlines -- stocks down for a fifth straight day as crude oil continues to plunge. crude cracked the $50 line once again, falling to $49 a barrel. the new congress has convened in washington, d.c. republicans assumed the control

of the senate with mitch mcconnell as the majority leader. vice president joe biden's swearing-in new members. can they work with president obama? >> we have to assume it is going to be better. divided government usually yields better results. we hope that today will be the start of getting things done actually getting bills passed and budgets passed and doing the work of congress the way it should be. >> meanwhile, john boehner is suspected to win reelection as speaker of the house, but some republicans will vote against it. this is a live shot of the house floor. and it is a no go for spacex. the elon musk company scrapped its launch just a minute before about -- blast off. the reason trouble with one of

two motors used for thrust steering of the rocket. they will try again friday. they are hoping to land the rocket back on a platform floating in the atlantic ocean. uber's latest trouble spot -- south africa. the ridesharing company facing suits in florida where there are cease and desist letters to uber and its competitor lyft. now to the lead -- verizon is looking to expand, acquiring an online media company aol. that could give them some of the hottest ad tech around. verizon's ceo told a conference in las vegas today that the company has not had a significant acquisition discussion.

it is more about partnership. but what about eight a well and it's advertised -- aol and its advertising technology? what would make it attractive to verizon? joining me, al, who broke the story and also we need. al, let's start with you. >> for several months now, it has dovetailed the acquisition of directv earlier this year. the name of the game for these companies is to come up with a mobile package and bundle it in with your wireless distribution service. verizon made several acquisitions. they bought intel's online tv service. they put three different executives in charge of mobile video.

where aol comes to the business, aol has programmatic ad technology. in other words a form were now the rhythm decides where certain advertisements are placed. sort of advertising 2.0. not relying on human beings to make ad decisions. you rely on computers to do that. you can package that with a mobile video service and all of a sudden your content stars to generate money. that is the idea for verizon. whether they get into a partnership with aol or somebody else or a straight up acquisition has yet to be seen. >> i know they have made mobile video a big part of their partnerships. there nfl partnership. they had highlights for the 49ers this year. >> great highlights. >> it has been a big part of the platform for the last two years. what is different today? >> the idea here, cory, is what verizon has not released yet

and we are seeing it today in essence. a package where you can just get your tv service over your phone and you do not need to pay for cable anymore. that is what dish is rolling out today, literally an online tv service. that is what we will likely see from other players like at&t and verizon. >> paul, this is a significant change for verizon to be looking at significant revenues from advertising, is it not? >> it is a little bit. it's interesting with a well, as alex mentioned -- you think about ad spending on the internet. there are a limitless number of websites and a limitless amount of advertising inventory out there. it certainly has been difficult for advertisers and publishers to transact business. what evolved is this automated buying and selling of advertising inventory

programmatic ad buying, and this is something that aol has really made a lot of investment in over the last several years. aol bought a company called adapt tv primarily to get into this business. aol is building a very interesting and robust programmatic ad buying platform and i think that is one of the key technologies verizon is looking at here as they look to monetize online video as you suggested, and i think they are really looking at some of the backend that really needs to be done to be a player in that business. >> it is also fairly amazing that this dial-up business is supporting tim armstrong's messed up business to grow the new business and then give him another opportunity to build another business around aol programmatic advertising. >> tim armstrong has had a couple swings her with some strategies. the local advertising, local

media strategy did not work. it appears that programmatic ad buying is such a significant growth story over internet ad spending and the traditional twenty-year style of business generates cash. that is a business that has been winding down over years. that has allowed tim and his team to make some any strategic investments. >> you have the worst ski slope in the world steady decline over time, but it continues to support aol finding a business for itself. al they see some value not least because what, from that dial-up business that aol still has around? >> it make sense that verizon would like to acquire this dial-up that is in essence what verizon already does, provide

internet service to customers. theoretically of the few people who still use died up, verizon -- you use dial-up, verizon could convert them to either broadband or fios customers. if you look at alibaba. tim armstrong has done a better job than marissa mayer coming up with a new business for aol. but just like investors are poking at yahoo! and starboard has an investment in yahoo! and aol, it you have investors looking at aol the same way and sing, you have a pretty good business here. you have media content programmatic ad technology and an old membership business. that is three different things. it's probably time for you guys to unlock some value, whether that is partnership or acquisitions or perhaps maybe we should just divide the company,

which is the same position yahoo! is in right now. you have to watch those discussions. >> and you mentioned the few people who use dial-up -- that is $60 million in revenue. those people are hanging on real strong, their credit cards continuing to be charged. thanks for joining us. samsung says the next frontier is the internet of things. they are putting big money behind it. how risky is that investment? we will have that ces story next on "bloomberg west." ♪

>> this is "bloomberg west." i'm cory johnson. samsung's ceo took the floor in

san diego at the consumer electronic show, promising the internet of things. take a listen. >> i am making a promise! our components and devices -- [applause] we will -- they can easily connect to other devices. >> what does this mean for samsung's latest investment? ok, you are not at ces. >> i know. cory i met you at ces at a build a pc contest years and years ago. >> i forgot about that. that was so embarrassing.

it was a bunch of journalists and analysts. we were asked to assemble them and the pc was the dominant thing and it was this giant big-box, and i think i finished exactly last in that competition. i could not assemble a pc. now we are talking about little devices, the size of a thumbnail . do you think that samsung is serious? >> i think they are serious. they are trying to get into a space, and they are going over and over and over and the idea in the keynote was, we're going to be an open platform. we are going to connect together. i think that is a shot at apple to read i think that is a shot, somewhat, at android. and that is saying, basically bring as many people to the party as quickly as possible. >> if samsung shooting android

is samsung shooting themselves in the foot? >> i think what they are trying to say, any kind of war that excel between nest products and apple products in the future that is fine. we will connect with everybody and everybody is welcome in our play. so it is not necessarily a shot at their phone business or if they want to continue to invest in that from business and be successful with android. they just do not want to go in a proprietary direction. it is similar to what microsoft is trying to do with their wearable right question mark support all platforms because they want to be relevant in each of the large ecosystems. >> i think it is hopeful that samsung is not describing this as iot but saying that this is

sensors. what are some of the technologies helping this happen now? >> a lot of this will be to have gigahertz wireless. some of it will be big. there are some interesting technologies from broadcom the other day. they are stepping up their ability to project images over wi-fi. what i think what the core here is and what is missing from samsung from -- samsung's messages -- the customer cannot be the integrator. the customer cannot figure out all of these things in their life. that is where apple and google or android with nest will go and say, we will solve the hard backend technology. you do not have to learn about five gigahertz wi-fi.

you can have it work. samsung may be rushing to a world where they think it will all work together seamlessly and the customer loses in that experience. that is the problem here. samsung is getting out over their skis a little bit. nest's acquisition of drop cam -- this is a halt for all of these low energy blue turf devices. -- bluetooth devices. >> that is a perfect example. nest is out there as a point solution. the come together, and now what happens. when you look at a company like

smart things, it is an interesting. it is an interesting company but it requires you to figure out a lot of stuff. how do we integrate with my keys, my lights. does it all work together seamlessly. these are the challenges that will land in the customer's left over the next couple of years -- customer's lap over the next couple of years. >> thank you very much. drones the next generation of camera drones. will they go mainstream? the product in action next.

>> i'm cory johnson. this is "bloomberg west." we talk a lot about drones. what about drones for your personal use? bloomberg businessweek's sam grobart shows us some of the crazy personal drones. >> this is the evolutionary

phantom series. the phantom is the most popular consumer drone in the world, but they also make professional drones for a hollywood production. now they are introducing a new model, the inspire one, the promises to bridge the gap between the two. it is a new camera drones. at if you want someone controlling the flight path and someone else controlling the camera -- you can see what the drone sees. but it is what you can see that has people talking. it has a built-in camera that shoots four k video, which means supersharp images and the ability to zoom in pretty far. it also has stabilization tech. it will connect to as many gps satellites as it can to hold itself steady. even with strong for the gym

you will not have to correct its position. it will do it itself. if it loses contact it will automatically fly home. a canadian startup, pleiades, is launching its first product. it's still very much under development, but it is worth keeping an eye on but it sort of things for its self. users can write programs. it can respond to music, moving up and down with a clarinet. while it is fun having a pet drone that can do tricks, it gives you a look -- some might say a scary look -- and what the future of drones may be. the online cameras and sensors allow it to avoid obstacles and fly it self. the hexo plus will appeal to the

narcissistic sportsmen in all of us. it follows you around and of your presumably all some sports endeavors. it will fall you wherever you go. you can tell the joan to do special camera moves like circling around your position. there are drawbacks. it cannot avoid obstacles while following you, so you want to stick to open areas with no trees or power lines to crash into. plus, you have to do something extreme enough to make an aerial tracking shot worthwhile. but lots of people are looking to do just that. in the future, could we all have our own pet drones live swimming every moment of our existence? that possibility just got a little bit closer. >> bloomberg businessweek's sam grobart from las vegas. we will ask a former fbi agent

what is in store for 2015. you can watch a streaming on amazon fire tv and apple tv. ♪ >> it is 26 minutes past the hour. that means bloomberg television is on the markets. let's see where stocks are trading. we are seeing the longest losing streak in the s&p 500 since 2003. five straight days of losses and we are at the lows of the session with oil prices still taking a hit. energy stocks are the biggest dragon the s&p. there you have oil prices. a bright spot in today from so off -- the restaurant chain shares selling for the most in two months after an announced price target of 27 bucks per share your it michael coors is trading at an 18-month low,

credit suisse lowering its rating to neutral. the slowing handbag market has led to extreme discounting. more "bloomberg west" next. ♪

>> you are watching "bloomberg west" where we focus on the future of business. nation states like north korea targeting companies like sony. is this what companies should be prepared for in the new year of cyber threats? security experts and law-enforcement officials are discussing those very questions and this week they talked it over at a cyber security conference in new york. our correspondent talked with mary galligan to learn more. >> i think we will see more and

more threats that are in the mobile atmosphere. almost 50% of our holiday shopping this year was done on a mobile device. we are using more and more mobile devices, but the security is not as good. i think you will see us restrict what is on mobile devices in 2015. companies will be looking at where is their risk? >> we may be sacrificing security on a personal note for efficiency, but how can that affect businesses? >> using a mobile device? >> yes. >> it can bring investors into their network. anything that is a vector, that is something you are going to see bring more attention in 2015. look at the overall risk. not just our firewalls and our systems, but things that connect with that.

that brings the internet of things are about. our elevators are connected to the internet. our mobile devices. how do i protect them? >> companies -- are they prepared for attacks? now it is not necessarily if, but when. >> correct. >> do they have procedures to deal with the facts -- with attacks? >> we saw at the end of 2014, companies particularly in the financial and oil and gas industry paid more attention to plans. what if this happens? it is not just about the nile of service or theft of information. we are seeing destruction of hardware, destruction of data. i think you will see a significant increase in companies actually testing the business side of what if.

how are we going to respond? and those that have a plan will do better in the marketplace than those who do not. >> they can mitigate those risks? >> 2015 will be the year of how quickly we can identify a risk how quickly can i mitigate, and how quickly can i be mediated -- remediate it? >> in the past we have seen hackers steal a bunch of data, credit card numbers. now we're seeing them launch these more personalized attacks. is that something we will see more of in 2015? >> i think we will, because whether you look at it as old-fashioned extortion or arresting companies, that is always around. it is a question of how do you do that? hacktivism, as it is called, is

definitely on the increase. if someone is upset about something, how do they get that message across to companies? >> is the government sharing enough information with businesses and vice versa? do you see the need for increased communication? >> i think it will see both sides say that there is not enough information sharing. there is a reason for that. right now it is a very optics driven environment. there is not a safe place for or print america to share information. you see the government wanting to share information, but it is classified. i think if you talk to both sides, there is a frustration and much more information sharing needs to be done. that is why the industry needs to look it sharing among themselves. the industry of sharing cyber

information, i think will be very big and 2015. >> what about legislation? there is a new congress coming in. are there legislative tools or roadblocks that need to be removed? >> there is a question that has been in congress a number of times of can you give corporate america a way to share information? and the second thing we need to look at when we talk about frustration, when we talk about regulation. we will overlook the bigger threats of cyber threats. >> what are some of the incentives? >> i think the first thing if you talk to corporate america, let me give this information to the government, but let me be anonymous. let me be able to re-mediate and get my house in order before a number of regulators or lawyers

come in. i think that would be -- i think you will find more companies want to be good corporate citizens and share the information. >> what about the consumer? we hear so often about companies that we use or purchase from. a bank we may use. when to consumers know? >> i look at the consumer issue a little differently. when will the consumer take responsibility for how we protect our own information? we want to have the efficiency of being able to shop anywhere, anytime, and yet we do not want to take the extra step to particular information. the consumer should know as soon as there has been a breach but i think that we the consumer need to start taking more responsibility off our information. >> that was the director of deloitte's cyber risk services.

mercedes -- we will sit down with the automaker's chief executive at ces later on "bloomberg west." you can watch a streaming live on bloomberg.com apple tv amazon fire tv, you name it. ♪

>> all right, so this happened at ces yesterday. sony's ceo spoke for the first time about the notorious cyber hacking. listen to this. >> former employees and certainly current employee is, they were unfortunately the victims of one of the most vicious and malicious

cyberattacks that we have known, certainly in recent history. i have to say i am very proud of all of the employees, and certainly the partners that we worked with as well, who stood up against some of the extortionist efforts of the criminals that exact sony pictures and its employees. >> of course, sony did not initially defend its movie "the interview, but eventually it released that movie to art houses and online. >> we work tirelessly -- literally 24 hours a day sometimes days on -- to bring "the interview" to audiences here in the united states and canada as well, and to online venues as well as motion pictures venues across the united states. >> stoner film and world politics. yes.

and it is actually a hovercraft. a cool new product, a hover board, skateboard turning heads. including one head. i know that head. that is brad stone. he is on theonewheel. he took it for a -- i guess it was a spin. >> it is similar to skateboarding in some ways, but it has more in common with tail boarding, wake boarding, and surfing. they have digitally enabled board sports. >> you were a principal designer at ideo. a great job. why did you leave to start onewheel? >> it is a dream job. i have this idea and like any inventor, i was working on it and, you know, my garage, my basement and we have the first prototype working. pretty cool, just some friends.

it was on the back burner for a while. brought it back. and i said, i think we need to bring this thing into the world. it really makes me smile. and i see this thing is getting some attention. >> how does it work? what is happening inside? >> there is a powerful motor inside the wheel. that is not something everybody gets when they first see it. the next question is -- and must be really hard. it's not really that hard. it has sensors and algorithms to help it balance. really the rider leans forward to go, back to slow down, on their heels and toes to make turns. >> tell us where you are now how much it costs, what does 2015 look like for you? >> yet, it has been an amazing

year for us. we built a team we are building to manufacture. we are building the product in san jose california, really close to our r&d center. we can work on it locally in california. now our manufacturing is fully online. a lot of our backers have already gotten their boards. we have a long list of preorders we are working through. and after that, we are selling some stock and looking to get into retail later in 2015. >> last question -- how to make it easier to use for the newbies like myself, but also for the hard-core skateboarders and borders who will love to ride? >> what we love today is something called digital shaping. that is the ability to buy an iphone app. this went into the app store this morning. from the app, you can change the way that onewheel rides.

once you get the hang of it, you can slide it all the way up to extreme, maximum acceleration. really that feeling that board people really love. >> all right, i would love to try it out. >> awesome, let's go. yes, there you go. ♪ >> [indiscernible] [laughter] >> that's a lot of fun. >> awesome. >> thank you. >> brad stone with the worst all he ever. awesome. mark crumpton knows all about skateboard tricks. >> i just really don't. >> mark crumpton knows it all. >> really? >>what have you got coming up on

"bottom line" that is not skateboarding or surfing? >> the markets are in retreat this afternoon, led by falling oil prices. jim polson will give us his perspective. and nobel laureate joseph stiglitz was poised to handle advising the securities and exchange to mission on issues facing u.s. equities markets but that nomination has reportedly been blocked. i will ask him about that when he joins me next hour. you then. back to you in san francisco. >> he was also a big spook goalie fan -- spiccoli fan. >> i did not know that. >> i made that up. ok, when we come back --the self driving car race. that is next on "bloomberg west ." ♪

>> on cory johnson.

this is "bloomberg west." there are more automakers than ever before the consumer electronic show, proving their cars are more connected than ever. now they are developing new kinds of vehicles that you do not have to drive. one of the brands making a splash at the conference -- brad stone is standing by with more. brad? >> hi cory. i am here with the ceo of daimler. dr. z, what is this? is this a glance of the future or technology to come? >> it is totally realistic. it is fully autonomous. it gives you space and room. you are sitting in there. you can sleep. you can work. you can have videoconferencing.

all of the walls are touchpad. you are in the middle of the internet. this is absolutely new and complete. >> tell us about the design. he appears of the vehicle is so striking. what inspired the design? >> we wanted to design the future of the automobile. obviously, when we invented the car in 1886, it was a carriage. you are sitting opposite your passengers like a carriage in former times. we are going back to the future. >> it is interesting how companies are talking about google and its role in the auto car future. where is google play? >> [indiscernible]

it is at home. that is in the car. it is dangerous to get data, but that is what people are doing everywhere -- >> they are spending a lot of resources. >> that is fine. but we come from the obvious side of this. both of these worlds are merging and it creates great new opportunities. >> what needs to happen for the regulatory environment for this kind of car to drive on u.s. roads? >> we are more or less ready. we have to go step-by-step. [indiscernible] at that point of time, this kind of car keeps growing autonomously. >> [indiscernible] >> of course i did. >> i want to ask you about two

silicon valley disruptions. the first is uber. how does that affect your business and could it be an accelerator as they buy mercedes cars? >> the customer decides. if it is more convenient for customers, it might become disruptive. we have to get ahead of the wave. so, we are happy seeing this development. so, that is all good for us. >> tesla. you sold your steak blaster, 3%. why? >> that was a pure financial situation. we work together with tesla. we continue to do so. >> but you compete in the luxury car market against tesla. what is it like to compete

against an entrepreneur like elon musk? he can command a lot of attention with a single tweet . >> he is a great guy. very impressive. what he has accomplished so far is very impressive. i give him respect. at the same time, we know what we are doing and we are not a rate up -- we not afraid of anyone. it inspires us. we work together. we continue to. we are competitive. but most people who own a tesla on a mercedes. >> thank you, dr. z. >> all right, the b-west byte one number that tells you a lot. a new reporter we are breaking in on "bloomberg west." 70 million? >> that is how much that they raised for the lead investors in google.

>> capital. >> really --google capital. >> really? >> very interesting site. where do they see the value in this nascent business? >> right, we can go on and talk about our current employer, pass employer, give feedback. that brings in all of these jobseekers and they can leverage these people looking for jobs in evaluating companies to build this huge business. >> i can tell everyone i love my current employer. my current employer is very interesting. who uses this data? >> reporters love it, because we can use it to look at other companies, but besides that, more profitably look at current hires. >> it seems like the kind of thing that linked in would have already acquired or had to build the rhône? >> --had to build their own?

>> linkedin is a competitor. >> in the $70 million round, what do we do find about future plans and where they are in the stages off growth? are they thinking on public stock offerings? >> yeah, they certainly seem to be thinking about an ipo. the valuation is in the range of $1 million so that is getting pretty huge even by tech company standards. they are headed toward an ipo. they have raised one $60 million now. it gives them an opportunity to expand globally. >> thank you for joining us on "bloomberg west." we are online all the time on your phone, your tablet bloomberg radio. more "bloomberg west" coming up later. ♪

>> from bloomberg world headquarters in new york -- this is bottom line with mark crumpton. to our viewers here in the united states and those of you joining us around the world, welcome. we have the stocks and the stories making headlines today. our chief washington correspondent peter cook and white house correspondent phil mattingly join methe 100