>> life from here three in san francisco, welcome to bloomberg west where we focus on technology, innovation, and the future of business. kentucky senator rand paul has officially announced his campaign for president. he spoke in louisville, where he said he is running to defeat the washington machine. rand paul: too often when republicans have one we've squandered our victory and become part of the washington machine.

that is not who i am. brad: the 52-year-old first-term senator is headed to new hampshire today, followed by key states like iowa, new hampshire, and nevada. fedex is buying dutch shipping company tnt 44 $.8 billion in cash. that is the same company ups tried to buy in 2012 before but later said they would kill the deal. but fedex ceo fred smith said he is confident they will win approval. fred smith: if you look at our situation in europe and tnt's, a are highly complementary and they will not result in a great deal of redundant these or market share numbers which would appear to be problematic as it was in the case of the previous transaction. brad: the stronger dollar is helping fedex. ups is going to pay 30% more for tnt than what fedex is going to pay. private equity firm primarily in

the canadian tension plan investment board are buying the company for $4.3 billion in the largest leveraged buyout of the year. it comes after activist investor elliott manner pushed for management changes this year. goldman sachs is buying 73.4 million shares, worth about $2.7 billion. the proceeds will help stephen harper to god the budget. canada is looking for new sources of revenue to make up for the drop in oil prices. and dukes win over wisconsin last night was the ratings winner for cbs. it showed a 17.1 rating in major markets the biggest in 18 years and 33% bigger than last year. and now to today's lead.

education is perhaps the last area that has not yet been disrupted by technology. and this week in scottsdale arizona, some of the brightest minds in tech and education are joining forces to improve ways to think about learning. bloomberg west editor at large cory johnson is there now. cory: this thing is huge. i was shocked and i came in last night, 2500 people you're focused on technology, innovation, and not the future of business, but education. and among men mark cuban entrepreneur, dallas mavericks owner, and he has a lot of hats that he wears. he also has a lot of interest in best in the ways that he thinks that technology in particular will change the way education is done particularly at the college level. we had a nice long chat about that. mark cuban: i think there will be a lot of universities that go out of his net. and i'm not talking about apollo

and university of phoenix for profit types. but schools and universities themselves. you will see some changes. what people and investors fail to realize is, let's just say, for the sake of example, school charges $40,000 per year for tuition. if you lose 1000 students that is $40 million per year. there are not a lot of companies, particularly education type companies, that can adjust a $40 million losses. if a kid goes through school in four years college or postgraduate for that matter but if the school keeps a kid and graduates them in four years, it's much more cost-effective graduation for the school. they can make it more cost-effective for kids to get books.

the retention system can help keep kids in schools. that can help reduce the cost to deal with the ups and downs of demographic changes as kids don't go or go to school. cory: you need big data to monitor that. mark: they help schools put together monitoring systems, so when kids are doing things on their own schedules where they have to turn in things, particularly if they are online students, you want to be able to monitor them stop if things -- monitor them. and if things are not happening on time, you want to alert not just the school, but the student as well. -- not just the student, but this school as well. cory: for those schools when a look at this, you've got a whole different interaction with the debate has it is happening digitally. mark: right, it's not the traditional way that we are used

to where you go to class and take roll call and you are either there or you are not stop now -- you are there or not. now it's different. a portion of it can be a line or all of it. you want to know if the kid is tracking to make sure they are reaching their milestones in order to be successful. it's harder to self monitor when you are taking online classes, or just in general the weight classes are today. cory: the one thing that is changing is the way the books were. mark: one of my shark tank companies is looking at books. what they have done basically is to pack back. cory: is my dyslexia kicking in. mark: i get a confused over time. what they do is they are working with publishers now to try to come up with analytically the best approach to selling textbooks not just the physical textbooks, but e-books,

replenishing e-books, and in some cases, a pay-per-view for books as well. you may be like me. i did not buy the books because i could not afford them. i would borrow them. now you can rent them for a limited time frame. trying to create almost a windows system, like the movie business, but you can get the books when you need them, and is a price you need them. cory: do publishers want that though? mark: they are learning they don't have a choice. as school gets more and more expensive -- it's one thing when your books were a set amount. and now college tuition has dramatically expanded and grown. cory: three times the rate of any other inflation. mark: right, and the marginal cost of the books appears to be enormous and kids are not always making the choice to buy them or they are printing them, or bind them used. they are not getting the

renewable revenue sources that they used to. cory: and you've got that on shark tank. are you making money in those investments? mark: i've had one that goes at -- that has gone out of business and to others that should go out of business but they are not smart enough to do it. i'm fortunate net i do not have to limit my cap at all occasion. i just have to find a great one. shark inc. is one thing, because i'm trying to support entrepreneurs. outside of shark tank, and looking for a home run. i want companies that go out and try new students and find the best outcome based values for students. that's a different type of investment than a what i do at shark tank. cory: snapchat mp interest and companies that are out there for a long time --

mark: but even that is changing. once you've got that and you have that unit one and you have raised -- that unicorn and you have raised $5 billion, now in order to do an ipo, you have to outperform. you cannot just be an increase of 30% per quarter or 40 percent per year. you have to blow up your numbers. that is why u.s. seen snapchat go to what they are doing -- that is why you have seen snapchat go to what they are doing. they don't have that revenue outlet. revenue has become far more important. it has gone full circle. back in the days of broadcast, we could do a $30 million ipo. i just read yesterday they were more $100 million private finances from vcs than there were ipos. cory: during the bubble. mark: no, now. more i.t. investment has grown through this investment then through ipos.

because there is no ipo market and because we have screwed this up dramatically -- i have to get that big in there -- you have to change your ideas with all your companies and how you expect them to grow.

mark: until them market reappears the smaller ipo market, you will see more of that. you will see a billion-dollar education unit warned. the question is, what happens next? because she will also see billion-dollar unicorns go out of business. cory: fascinating stuff from mark cuban. you get a sense that there are big ideas coming into education whether it is charter schools at the kid level all the way to the postgraduate level, real changes in the way that education is being offered. brett: cory johnson at the summit in scottsdale. thank you. coming up, our guest host of the hour talking about how tech is disrupting the travel industry. and later in this hour, andrew mason's next act. ♪

brad: i'm redstone and this is "bloomberg west." coming up, how one company is working to make your trip a more local experience.

andrew mason joins us on his latest adventure. but first, a check of today's top headline. strong's job market -- signed in job market remains strong despite the disappointing labor report. 5 million positions waiting to be filled in february, the highest number of openings in 14 years. construction and food services had the biggest lanes. and samsung showed positive signs in its first-quarter guidance. it is fast -- forecasting a profit of 5 billion for the quarter. it's the strongest number in three quarters. demand for samsung chips and is a panels is making forestalled smartphone sales -- making up for stalled smartphone sales. our guest of this hour is the ceo of a startup that allows travelers to book tours and get insider tips. for the next hour, we'll look at how companies like peak.com have

changed travel. welcome back. ruzwana: thanks for having me. brad: last night, i went on there and do traveling with kids. talk about how it's good for users. ruzwana: it's a one-stop shop for activities. you are bringing together a host of different experiences that might be great for kids. we could write -- curate perfect days coming from people such as wolfgang puck giving you think they love to do in cities when they travel. you give people inside on a great way to spend time in san francisco. brad: one of the reasons i asked you to guest host today's show is there is a much consolidation and competition in online travel right now. expedia's acquisition of orbits and travelocity in january, the

rise in the priceline group, google and amazon getting into trouble, how much room is therefore startups right now? ruzwana: i think in our space, which is activities, it is actually local and travel. it's about a hundred billion dollars global market. what you find is because you are working with small businesses that are right segmented, you really have not had a human come out and be able to do anything great in this space. first tourists, 70% don't even have online booking. it's like the restaurant space before opentable came along. brad: talk about acquisitions that trend and why you are well-positioned with peek ruzwana: 50 years ago, we were all told that buying a car or a house will make us happy.

and a lot of the science is showing that it is not things that make us happy buttocks. is. there's a shift in -- that make us happy but experiences. there's a shift in society. peek.com is providing that in ways that will fulfill and inspire them. brad: what ways are people traveling now you go with a guidebook anymore? or with their smartphones as guides? ruzwana: people are looking really last minute. when he comes to activities, 75% of people are booking in six hours. the much shorter window and much more spontaneous. they want to pull up their phone and say, what can i do you and they want to find cool things to do. and we are even this with hotels and airfare. brad: thank you. stay with us. the founder and ceo of peek is

our guest host today. expedia at the top of the travel industry may be threatened. next, how google is changing the business for startups and the alike. and we will talk to andrew mason white -- about why he is entering the travel business. ♪

brad: i'm redstone and this is "bloomberg west." today, we are taking an in-depth look at how technology is changing the travel industry. there are dozens of ways to book a hotel or flight online but only a handful of companies that

handle the site. cap startups like google and airbnb are posing new challenges. travis katz joins us now with more. thanks for joining us. we are talking about this consolidation in the travel industry with six edm buying orbits -- expedia buying orbitz and travelocity. travis: what we see is most consumers like to have choice and options. our whole business gogo bought -- gogobot is built around this. when consolidation happens there are fewer options and consumers are less happy. ruzwana: what do you think about people having smart phones in their pockets and using that to do more? travis, i think that is revolutionizing the way people

are feet -- are doing things. and the millenial's have grown up with smartphones. they are getting used to having information at their fingertips. people are planning a lot less and finding spontaneous things to do. they don't feel like they need to book their hotels ahead of time. it's changing a lot of people's behaviors. the industry is trying to catch up with what people are doing on the consumer front. brad: travis, you recently secured a lot of funding from a vacation rental site home away. tell us about that and murder the partnerships you are looking to strike. travis: home away led a $20 million round in gogobot this fall. there are not special preferences with it, but the idea is that holloway is looking to expand beyond just rental and to the -- home a way is looking to expand beyond just rental and to the holistic traveling thing

generally. there is a lot of synergy there with where to eat and sleep and have fun. we will be working on both the application and on the web to help people look at where they should they, but also the whole context of the trip. where are the best beaches? where are the best places to eat? we will help make the experience richer and it will help more people discover gogobot, so it's a good fit. we are having a lot of interesting discussions about that particularly with this idea of mobile. if you don't have a frequent use case, people might download an app and then forget about it. gogobot will be used not just for traveling, but also when you are in your hometown looking at

where to go for dinner tonight. that can bring these travel asked to life. -- travel apps to life. ruzwana: what do you think is happening in terms of priceline and making a transition to opentable and getting into online booking as well? dravis: i think the opentable move on priceline was an interesting one. it's an example of people thinking about the travel space and it's not just about selling the hotels, which is where the biggest margins are. we have to think about where the consumers are on their phones and what they're doing more frequently. and we have to look at ways to make that last. having the habits that people can use, and then using that to upsell for other products. that is the space where we play very heavily in the mobile space. i think a lot of companies are looking for ways to get into that base to make sure they do not lose -- that space to make sure they do not lose the consumer when they get into the

act. brad: we've got to leave it there. coming up groupon cofounder andrew mason talks about his next act. you can also watch us streaming on your tablet phone, apple tv, and amazon fire tv. ♪

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♪ brad: this is "bloomberg west," where we focus on innovation technology and the future of business. i am brad stone. oil prices are rebounded hitting their highest level in nearly two months after u.s. crude output l rum a record high. a total u.s. count of rings in its lowest level in five years. arizona senator john mccain announced that he will run for another term in 2016.

the republican will be 80 years old at the time of election day but tells the news that critics who say he is too old are wrong. senator mccain: i said watch me. watch me. take a look at my 18-hour days and my legislative accomplishments. listen, i am just getting started. brad: mccain also cited the long jeopardy of his mother, roberta, who is 100 three years old. voters in chicago are heading to the polls for the election for mayor, with rahm emanuel going up against chuy garcia, and whoever is elected will turn around the budget issues, which have left this city ratings on the verge of being called junk. and in online media service dailymotion, a french conglomerate is negotiating for a stake in the youtube rival at

a price of around 235 million dollars. vivendi is under pressure to grow its business. and tiger woods says his golf game has finally returned into a place where he is confident he can win, and that includes this weekend at the masters. he has not played on the pga tour since the tournament in february, where he withdrew due to back pain. his first green jacket since 2005. and we are back with our travel special and the founder and ceo of the travel startup has changed dramatically. and joining us is brad. thanks for joining us. i want to start where we were last segment. all of this consolidation, is it good for regular people? brad 2: priceline will be doing

500 million, expedia 500 million. that enables them to reinvest the profits and have more innovative services or consumers, so i have to be in the camp that it will be a positive thing for consumers. guest: looking at last minute bookings. brad g.: they are taking advantage of a huge platform disruption. maybe the biggest since the intervention of the internet is self, and they are servicing can boomers who want that last-minute booking, and so they have grown incredibly fast. notwithstanding the giants, like media and orbitz and priceline, and i think that will continue as more and more people have these supercomputers in their pockets.

brad: there was an acquisition of ita a few years ago, and they have these bookings right in the search engine. how disruptive can that be to some of the portfolio companies? brad g.: today, we start it on our smartphones, so i inc. in a post-google world, search becomes more relevant, not less relevant, in the way we shop and buy travel so he gives us an opportunity for vertical travel app that can give it on the phone and the homes green of the loan and opportunity for consumers. and i think that mobile apps are going to be more significant than hurt. brad: and how closely is the industry watching google's activity in terms of the search results?

brad g.: of course, everything they do is scrutinized. and there is the baidu acquisition, the search application for travel, and it will be much more difficult or google to do any less. guest: the activity space as been a forgotten area. it is worth billions in the global market. what do you think? brad g.: i think as we move to on-demand mobile purchases where we can optimize these on location i think it will really start to gain momentum towards the activity space. we are seeing people in location who want to find that guide, want to find that special service, who want to find that special restaurant, and now they have their phones, and they can do that, and now we have companies like peek, which will become increasingly important. brad: brad, hold on.

i want to bring in brad -- another who is with us on kype from lonely planet. historically as a guidebook publisher, tell us how you are in just -- are adjusting to this. skype guest: we have been in it on long time. it is much more important, what has been placed on the digital side of the business, and we do not even look at ourselves as a book publisher. you can see 500 books behind me that we published in nine languages, but we really look at ourselves as a brand and a content business. books is a part of that. the digital ecosystem is a part of that. it has always been important for us, but it hasn't wired that our

business constantly shift to adapt to those new environments. 19 satellites at a command. what an amazing tool with a traveler. guest: what about the airbnb? daniel: i think airbnb is an amazing bank that if come to prominence here in the last couple of years. i have had several great experiences with airbnb. it is interesting with us because we are trying to guide people to have unique experiences. that is what lonely planet is all about. survey the earth on behalf of people who want to travel, and airbnb, their egos is to provide that experience, so we are a big fan. -- there -- their ethos is to

provide that experience, so we are a big fan. brad g.: priceline and expedia continue to grow quickly, notwithstanding that airbnb is on a rocket ship, changing the way we do this. brad: amazon, they have started to integrate travel bookings. is that a model that fits with the amazon paradigm? brad g.: i think at the end of the day, they have to provide something unique. in fact amazon, most people forget, tried to get into travel 15 years ago and ultimately decided to get out of their partnership with expedia after it really failed to gain consumer attraction, but in japan, korea, other parts of the world, we are in those horizontal marketplaces like amazon get into travel successfully, so if they tailor it, it can work. brad: all right, we have to

leave it there. daniel and brad, thank you. it is no bigger than a hockey puck, but it could help you spot medical problems early on, and later on, talking about a news startup.

♪ brad: this is "bloomberg west." i am brad stone. in the future, you can diagnose your own problems and send them right to your doctor. a new device is in development and in the first of our eight-part series of wiring the world, we talk about creating the device. >> ok, star trek fans, this is the health try quarter -- tricorder from the 1960's, and this black box was science fiction, but today, this little white wonder if science fact. this is the scanadu, and it measures your vitals with a touch of your four head. they are at the research park in silicon valley. show me how it works.

>> he put it here. put your finger on your head. reporter: he has to keep it secret, but i was fine with sharing mine. blood pressure is good. over 63. my heart rate, is that normal? walter: yes, yes. reporter: i run pretty much every day. wait a minute, you can run also. joking aside, walter says this kind of information can lead to course corrections, like for patrick, one of 8000 beta testers. he discovered a problem. patrick: i realized i had a trend of high blood pressure. it is something that happens every day. i have actually taken action, and i am getting treatment for

it. reporter: liquids. walter's wife heads up a section that test for 12 different problems, from diabetes to the presence of blood protein. today, i and the guinea pig. reporter: i will spare you some of the details, but the process involves a paddle with test squares, and in about a minute my results. >> and you are very healthy, my friend. there is no blue. reporter: so this is good. >> it is very good. reporter: i can sleep well tonight. thank you. we build our health, day by day. >> these indicate something very big. mr. spock: --

reporter: your very own is ahead of schedule. brad: this is part of the qualcomm xprize competition. reporter: this has about a year left to go, and the winner of it is going to get $7 million. in total there are about $10 million to be won, and includes companies from around the rope canada, india, as well as to slovenia and ireland, so a lot of people are trying to make the tricorder of the future the tricorder of now, so this is definitely something to take a look at. brad: thank you, ramy. ♪

brad: this is "bloomberg west." i am brad stone. after leaving groupon, may send launched an act, providing audio tours of cities based on your location. thanks for joining us. when i last saw you, we were traipsing around. andrew: i knew you were going to bring that up. nothing funnier. brad: that was the launch. that was, what, four months ago? andrew: we launched about two months ago in the app store. it was the beta we were doing. we have got 90 tours launched just in the san francisco bay area, and each one lasts about 45 minutes, and it takes you to a different part of the city and helps you see it through somebody else's eyes.

these are immersive like very high quality walks, where a two or guy is telling you where to go. your phone is in your pocket the whole time. brad: and you have great tour guides too. andrew: we try to find people who were part of the community. its fisherman's wharf, we found a fisherman, and he takes you beside the touristy facade. and we had a collaboration with sxsw, but other than that, we are just in sanford is go. guess: you have to tell us what your favorite tour is. andrew: there is one recently and it takes you down to the bayview area of san francisco, where a lot of the trash processing happens, and it talks about the city's goal to be

landfill neutral by the end of the decade, not something you typically think of when you go on a tour but it is an amazing experience, where you really learn a lot and are entertained, and these are ways in which we are trying to push the medium. brad: how big of a market is it? andrew: i am never thought about things that way. if some he asked how big the market was for groupon at the very beginning i do not think they would predict we would have a $5 billion company today. i just think that it is something people want. this is something i want. this is an idea i had. whenever i travel before groupon, i thought there has to be a better way than being in a tour group with a bunch of people that you don't really know, trapped in this three-our experience -- three-hour experience that is hit or miss. it had to allow people to explore, and i think technology has hit a tipping point, where this loan in your pocket can

provide that kind of experience. guest: what kind of experiences do you bring to bear? andrew: i have learned how to dress better. it is all like monday and stuff. and let me think of something pithy. brad: the value of building a pristine consumer experience -- andrew: not compromising on that at all is something that we saw proven out again and again at groupon, and it is something that we are really trying to stay true to. we believe this is a space where a lot of people have tried to build something, and none of it has been any good, so we are seeing we are just going to not do that. we are going to make sure it is good, no matter how hard it is to and it has been hard to you

we are building the tools to build the content at the same time we are building the consumer app to consume it, so it is almost like we are building a two startups at once, and then we also have a team that is building content, so it is like three startups at once. i am really proud of the experience we have created, and i think people will be surprised. brad: just to follow-up, you had a very public experience at your final years of roop on. has building something more intimate that you control, has it been sort of a healthy experience? doesn't help recover from the battle scars you got at groupon? andrew: i felt pretty good and happy about the whole groupon experience and happy to be part of it, and we had a enormous ups, and we had some downs, but that is just part of the territory, and i would say everything about that experience has -- i mean that was kind of

one thing, and this is the next thing, and i healed really grateful to have the opportunity to work on it. it is a lot of fun. guest: you are talking about how technology impacts our experience in the off-line world. what else can we expect? andrew: i am not much of a prognosticator or industry expert. i will leave that to the vc's. brad: earlier in the show, there is all of this consolidation with transactions and travel, but people are hungry for experiences, services that give them something unique, and is that sort of a thesis you believe in? we can buy all of the stuff we want, but particularly when they travel, it is something that they need. andrew: i tell you what i think. i personally think -- i feel a

great shame every day when i go to sleep after spending 10 to 16 hours staring at a screen, and then sometimes months will go by, and that will have been my life, and i feel like -- i feel like i am missing something, and i feel like so much of the technology that we are building today where success can be measured by its ability to get us to look at this screen even more, and so much that is interesting about life is when you encounter its rough edges out there in the world, so trying to make the real world interesting, faster than the oculus rift makes the world interesting. brad: all right, andrew mason, thank you. thank you, guys, for joining us and, remember, you can get the information all of the time with bloomberg on your tablet bloomberg on the radio, and bloomberg.com. we will see you tomorrow. ♪

>> from our studios in new york city, this is "charlie rose." charlie: we begin tonight with our continued coverage of the nuclear agreement with iran. a framework deal was announced last thursday. iran agreed to scale back its program in return for a gradual suspension of sanctions. critics say the deal poses a danger to israel's security and concedes too much ground to iran. president obama spoke with "new york times" columnist tom friedman this weekend. he tried to ease israeli fears and would consider it a failure if the country was rendered more vulnerable. he called the deal a once-in-a-lifetime opportunity.