>> live from pier three in san francisco, welcome to "bloomberg west." we focus on innovation technology, and a future of business. i'm cory johnson. a major deal in the health care industry. buying pfizer for $17 million, the biggest move since the+++

collapse. -- buying hotspur us for $17 billion, the biggest reasons the glass. it had 192,000 subscribers in the first quarter. price cuts certainly help. sprint really stays ahead of t-mobile as the nation's third-largest wireless carrier. sprint has posted $ 2.38 billion in the first quarter. the sprint name is not as viable as it once was. disney says the heir apparent

monthly active users were up 20% year after year. that growth rate was lower than last year. twitter says it is said. wall street liked that shares were up in after-hours trading. the question is has triggered --

twitter really turned around. >> what you make of these results question mark it is interesting that they have had such a crummy new edition of users. >> they lost about 4 million users. >> they were up by 4 million. >> their ability to add users like they were a year ago or two or three years ago is down. >> i think that is the one piece that i wrote. the only question that people should be asking twitter is where is the growth? without growth, all of their big plans do not go anywhere. that is the biggest challenge of the company. there is still not clearly able to explain how they are going to overcome that. >> their intention is tweets

will be seen by non-tweeters, if you well. >> like the way it used to be and then they changed their minds. it is a game of hot potato. going from one place to another. i do believe that they have to figure out the growth by thinking about their product not as twitter, but as what is twitter's power. they need to think about twitter experiences from an advertising perspective. if there was no twin or -- twitter interface, but with the product look like #that with the experience be that would possibly relate to the people that are not into twitter. x you are >> you are right i was wrong. sarah what you make of this? >>

the 4 million users that you are referring to were those that they lost due to an integration. their blaming apple for part of that. it is true that the company is under pressure to increase its user base because that is critical to the other moneymaking. there are still tweets created by people who use the service. today what they did is come out and say we have delivered on all of the promises that we made in november about the new product -- about the new product. the seven hour analyst meeting where they said here are all of the things that we are going to do to make twitter more exciting for current users and to expand our opportunity beyond those users. they made steps in -- in those directions. they are not contributing to the fourth quarter. analysts have to look at those numbers and say it is going to get better from here, we know how, twitter has told us how, it we will not see the results for

a while. >> is twitter is still a -- lightning in a bottle westmark? is modernization still the big question? >> the thing -- the way to think about twitter is something you just cannot understand. it is the beauty of twitter, it adapts into new experiences over the history of the company, they have found new use capabilities. people miss the core point of this service. it is almost like a city that adapts to the people. including the management, they are only thinking about it from an advertising standpoint. i can tell you that i have been using it daily in and day out for eight years.

it is now starting to be driven -- every decision is being driven by how people are using it. that is that this is where they have missed opportunities. they need to learn how people use twitter. and adapt. >> there is something about this medium, the limited number of characters, the brevity required . the thing about hashtags and codes. is that the thing that intrigues you as a person that thinks about media? x the only >> the growing amount of snarkiness on twitter. that is starting to become a bit of an annoyance. >> the plan of start, i take that personally. >> that is what i'm going for.

when you are -- when you are involved in media you have to enhance the positive and expose the negatives. what i see increasingly is a little bit -- the tone is becoming more negative. people are very active users and they may back off because of that. >> what we see from lincoln results tonight? >> they beat estimates, they rose in trading. it has been a crazy day to have linkedin and twitter on the same day. they are proving that they can expand into these new product areas. they are finding ways to create services out of linkedin e.on just -- beyond just the place where you need a job.

>> sara, thank you very much. we know you are writing like crazy for business -- for bloomberg.com. >> coming up next on bloomberg west he is filing for bankruptcy. who is going to win from the companies collapse? you can find bloomberg west streaming on your apple tv amazon, your tablet. we will be right back. ♪

>> this is "bloomberg west." i am cory johnson. here is a check of your top world news headlines. resident obama appeared to date with the dalai lama at the national prayer breakfast in washington despite a warning from the chinese government. obama condemned those who use the to justify violence and terror.

saudi arabia continues to fight to protect its oil market share. it is at the lowest in 14 years. they are increasingly competing with cargoes from latin america and russia. lookout apple, a real watchmaker swatch in switzerland is planning to sell its own smart watch in the next stretch. that should come out sometime this spring. it will work with windows and android. radioshack has filed for bankruptcy after a century in business. the electronic retailers name may live on. they will be selling hundreds of stores to sprint. it may allow a store within a store concept. here's some -- in talks to buy 1500 to 2400 stores.

the rest of them may shut down. senior analyst knoll is with us now. noel, talk to us now. who gets the good stuff? >> i think we're going to wait and see. you have effectively what amounts to a stalking horse bid. for up to 2400 stores with the agreement to have 1700 stores to operate as a store within a store concept with sprint. jeff to look at a real estate book and pick the best assets. because this is a luminary bed and it could stop -- eight preliminary bid, and it could stop the deal. >> is this when the bidders will go from store to store and pick out exactly which of the stores

they want? >> they will certainly be working by demographics. you will be looking at your class a states class b space. you want to watch out for redundancies with sprint. radioshack has a time of redundancy within its own story based. >> get a look at the duration and age. yet the look at the lease. >> i do not know if that will be a problem. if you have a good quality tenant and there, they will be able to renegotiate the lease. the radioshack restructure is not terribly dated. they are mostly five and 10 year leases. it is not like there is some much value in securing the leases as it is securing the location. >> what business is it that

radio shade -- radioshack wants to keep alive in this store within the store #? what is it that radioshack wants to keep? >> that is an interesting thing. they are probably going to keep a lot of their branded products. things that they were trying to relaunch. we will also see them do a lot of accessories depending on how the business splits out if they do the deal with sprint. accessories for the smartphone with sprint. >> it is an -- it is interesting in this era. the kids making these 3-d printers and drones and yet you have this company that could be in the perfect -- should be in the perfect situation to take advantage of this and yet nothing. >> earlier in the year, last year, they thought they would

roll out some 3-d printers. apparently they ran out of capital to do this repositioning and remodeling of their stores. heart of the restructuring is going to be getting sprint to pick up part of the cost to free up enough capital that they can actually reinvested back into the store so they can get the inventory turned over from where it was. if you think back to march or april, they were thinking -- they were talking about a third of their inventory being obsolete at that time. if you look at it matched up with sprint may be taking up a third of the square footage, it kind of works out. they feel good about two thirds of their products. it is a function of will people use radioshack for long-term. >> cables and connectors and speakers -- it was a pretty good little business. >> it is a good business. it is relatively commoditized and people are obviously going to competitive outlets online

because if you can have it delivered to your door versus going to the mall, and in particular for radioshack when you're 4200 stores that are not in great locations. they really have to offer something unique and above the on the commoditized products. >> could another bidder is still a merge? >> i'm not sure about amazon per say, but you could get some other competitors. someone that might want to own some more of the pie. >> coming up, hackers strike health insurance anthem. that story is next on bloomberg west. ♪

>> this is "bloomberg west." i am cory johnson. hackers strike again, this time at health insurance giant anthem. this is the nation's second largest health insurer. they swiped information of tens of millions of customers and employees. investigators are now pursuing evidence. could it have involved china state-sponsored hackers? here are three people that have more information about this. we are going to talk to the connecticut attorney general who is written a letter to anthem demanding details about the attack. >> we immediately pressed an inquiry with him him as to how many consumers were affected, we know it was up to 80 million.

the kind of information impacted, which is far more concerning, and what is being done to make sure this cannot happen again. >> it is a fascinating conversation, let us see what they had to say. >> the big problem here is that hackers see a lot of value in all of this kind of data. whether it is health data financial data -- regardless of the nature of the information, they are after it for a lot of different reasons. they are highly skilled and highly motivated. they got a lot of data -- 80 million potential social security numbers from people. that is the worst kind of data that you can get about someone. that opens up so much criminal activity. >> jordan, to tie that into income, they can sort that and

decide who exactly they want to target, who has the most money. >> income is an interesting aspect. certainly, there is a strong correlation there between folks you would like to target for financial fraud and those folks that make the most money. >> michael since anthem is not here, can i blame you? your job was to help companies not suffer from this kind of attack. ridiculously a company whose main job is to collect sensitive information. >> you cannot blame me. this continues to happen for several reasons. one is, the system that people are putting into place is very large and very complex and very interim dependent. -- interdependent. this is huge amounts of data, it and millions of customers.

they are a very target rich target -- data rich target for the bad guys. and they are going to work very hard to get it. >> to what and michael? --end michael? what do you do? jeff to worry about what they will do with the information? >> this information in particular has already been discussed it is very valuable information. credit cards are what people are used to having be stolen. here we really see a rich data set about individuals that can be used by criminals to create false identities or conduct identity theft. in the cybercrime well, this data is very valid -- valuable and worth money. they can sell this large number

of records on the black market. that is how it will be distributed. it will be sold in bulk. >> jordan when north korea allegedly attacked sony pictures, we knew what they wanted. they did not want a movie released. now amy pascal, has been fired perhaps. what do these hackers want? >> it is unclear. anthem is looking at this question very carefully. we will say one thing, we know they wanted a lot of information. we do not know exactly what they want to do with it. but they wanted a lot of it and they wanted to keep their options open. this is pretty standard for hacking attacks. if you have access to a company that has not secured its stata center properly, an individual or a small group of individuals who have access to 80 million social security numbers you will

take all of it and sort it out later. some of the tools indicate this could be state-sponsored attackers but they are certainly sophisticated attackers. >> and they got it bloomberg west will be right back. ♪

emily: founder, ceo, mad scientist. max levchin is one of silicon valley's most iconic entrepreneurs. he has played a role in some of tech's biggest successes, from yahoo! to yelp. today, you can find him in his innovation lab, tackling issues like fertility, health care, and banking. many years ago, max levchin had no country to call home. he fled the soviet union, and ever an entrepreneur, built a