cory: live from p three in san francisco, welcome to bloomberg west where we cover innovation, technology, and the unit -- and the future of business. ebay and paypal reveal details about how the companies will operate after they split. the businesses are drawing up a five year operating agreement between the two. it will ensure 80% of merchandise sales are routed through paypal over the next five years. ebay director thomas tierney will become the chairman of the

online marketplace. blackstone and wells fargo nearing a deal to buy general electric's real estate holdings. blackstone has built the largest global real estate investing business seeing $81 billion as of last year. for ge, the strategy of unloading assets, ge shares rose on the news. iran's supreme leader has refrained from endorsing the framework of the deal last week. the ayatollah said he was neither for nor against the deal. the ayatollah did insist sanctions be lifted as part of any final agreement. california regulators ordering the state's largest utility, pg&e, to pay $1.6 billion for failures under the national gas pipeline explosion that killed a bunch of people in 2010.

is the largest in history. more than 2400 safety violations in the decade leading up to that san bruno blast. the company faces a billion dollars in potential federal criminal fines. and global pc sales are falling again. they fell 5.2% in the first order -- quarter. the decline as corporate budgets are cut and consumers are facing an increasingly valued smartphones and tablets. management changes at zynga. the social media gaming company has struggled to adapt to a world no longer of says with farmville and mafia wars. don may trick is out after 21 months at the helm. zynga rocketed to success with farmville and poker on the

facebook platform. they valued zynga at $7 billion. now it is valued at $2 billion. sales tumbling 21% in the last year. shares down on the news. david kirkpatrick. let's -- this raises interesting issues. >> they are better depending on the time the company is in. pincus is an inspired leader. if he can tune his inspiration, so to speak, to really suit the time zynga is and is a tough question. not only does it need to revive the production of really big hit gains but they are slimmed down

even further and becoming a more efficient company. cory: his visionary entrepreneur seems to be accounting tricks in the ip you to change revenue recognition. you called for this. you were saying that he is not working at zynga. what was he trying to do their? -- to do there. >> i am watching fulton are stars on sling tv and it looks beautiful. cory: i thought you were going to say you are playing mafia wars. what was different under the matrick year and a half or whatever? >> the problem with don matrick that we believe he needed to be terminated by the board is that he made some very key mistakes.

remember, he's not a mobile guy. could he have gotten the game to work? it's possible. but we saw a rapidly shifting strategy. profitability targets never seem to actually get hit. and one of the most important franchises damaged. they made it hard to believe that he was the right person. the question now is, we know he was wrong.

is mark pincus coming back the right thing? cory: look at this company. maybe it wasn't matrtrick. the founder and ceo still hanging around. he is thinking about the corner office. do we know if these changing directions was him fighting against the founder? >> i think he stayed involved with chairman of the board. it has been somewhat his responsibility as well. it is funny how we can say they've got to move to mobile. nothing is simple and tech these days. the hottest thing in getting right now is riot's league of legends. it has a huge user base and making tons of money. who knows what they should do? just doing slightly better with studio producing games for mobile will not cut the mold

here. cory: it's worth noting that don mattrick really cleaned up. he may just a boatload of money. even though it was the incentive. >> it's important to note that when he was last ceo, he could sell stock at $12 and got an early exit out of the ipo lockup. cory: rich greenfield and david kirkpatrick, thank you for this great story. bloomberg west will be back with sir richard branson in just a minute. ♪

cory: still to come, he dropped out of school at age 15 and started handling $7 billion

businesses. richard branson on his next big education and what it means. a check on some top headlines. the j.p. morgan chase ceo jamie dimon said last october possible till it he was an event that was not supposed to happen. fluctuation of treasury yields and almost .4% was unprecedented. bill ackman's maleate pharmaceuticals have agreed to and their long-standing legal battle -- [indiscernible] over insider trading. just after an unsuccessful bill last year. they have since been purchased by activists. sir richard branson, one of the wealthiest entrepreneurs in the world is also a high school dropout.

like mark zuckerberg, bill gates, steve jobs, they'll quit college before graduating. i talked to branson last night. we had a long talk. it comes with the challenges of educating entrepreneurs as well as the future of virgin galactic. >> it is possible that school is not necessary. i left school at 15. i learned the art of entrepreneurs himism by getting out there and doing it. i educated myself in the real world. and i have seen my life as one long education that i never had. that is for entrepreneurs. other professions, schooling can be quite useful and universities

can be quite useful. but for most entrepreneurs, the sooner they get out of there and get their hands dirty, the better. cory: do you think there is something about this education and technology being applied -- i wonder about the role that the individual has. what is it about entrepreneurs -- [indiscernible] >> i think an entrepreneur is somebody that wants to change things. it does not want to be put in a box. schools are there to educate the masses. and entrepreneurs rebel against that. if you have a good idea that you feel can make a difference, i suspect you will be better off not building up debt.

but if you fail, you don't have an education or degree to fall back on. you will have had a pretty good education trying to set up and run your business. you've got to pick yourself up and try again. cory: you talked about difficulties in school and dyslexia and troubles. it has that helped you in your business career? >> i am dyslexic. i am very good at keeping things simple. as a dyslexic, i need things to be simple for myself. and virgin, i think, when we launch a financial service company or a bank, we do not use jargon. everything is clear-cut and very simple. people have an affinity because

we don't talk above them or down to them. what is the other thing? cory: when you talk about new ideas, do you think you do that in some way that you have a different approach? vetting new ideas? >> the other thing is thinking about was simply delegation. if you have a learning disability you become a very good delegator. you know what your weaknesses are and you know what your strengths are. you make sure you find great people to step in and deal with your weaknesses. and whether you are dyslexic or not, the delegation is such an important thing for a leader to be good at doing. they want to cling on to everything themselves and never let go.

cory: another emerging fame -- theme is not just school and college but the career development wanting them -- launching them to get jobs. i wonder from your perspective who do you look to hire? what does a resume look like to you? what are the strengths you look for? >> personally, i don't look at how many great levels they had or what their academic career was. i look at what experiences they've had in life. what kind of person they are. if they will go to a leadership position. it will they be good at motivating people?

it is more that kind of area those academic abilities. however, if we are building rockets, we will look at that. cory: the tragedy with the test flight, what is the latest with virgin galactic? >> i was there this morning in the mojave desert. they are working day and night getting the next spaceship finished. they are confident. you know they have a great future.

cory: richard branson virgin group founder. quite a guy. crazy cool stuff. we will talk to the silicon valley producers. and you don't want to miss this. solid. ♪

cory: i'm cory johnson. this is bloomberg west. hbo's silicon valley returning. my partner emily chang caught up with mike judge and executive producer at the premiere last night here in san francisco.

>> the second season is the story of what happens to a company. techcrunch just finished. they are a hit. it's them going to the next level. series a financing and all the bad things and good things that can happen. emily: the winkle boss twins make a cameo. and we will see the snapchat ceo at some point. >> this is true. emily: is there a good joke in this series? >> at least one. emily: is it as dick-joke worthy as season one? >> look. it love all our babies. who is to say what dick joke is better than another? emily: it might be the most talked about moment from season one and i think it's indicative of how you guys of what the show

together because it is technically correct. i know you spend a lot of research on the technical part of things. tell me how that came to be. >> we bonded over the fact that we said, i hate technically incorrect dick jokes. we vowed if we do dick jokes they will be technically correct. they may not be funny but they will be correct. emily: mike, you are an engineer. you worked in silicon valley once upon a time yourself. >> i had fun on that one. believe it or not, this guy who's got his phd just after we finished season one was sort of the compression consultant. we asked him for that dick joke. we had a lot of the technical

stuff about the various anglees ans. he went to town on it in a way that i couldn't believe. it came about. we were early on and i thought it would be cool to have a beautiful mind moment like he did with the men and women in a bar leading to this mathematical epiphany. 80 we should have something like that with compression. we were looking for something maybe dumb. one of the writers mateo, he was just completely separately talking about discussions with his roommates about how you could --i don't know how to say it on this show. >> manipulate? >> manipulate for men at the same time. alec overheard this.

>> it was like my own personal beautiful mind moment. emily: i just got spit on. >> you ok? >>emily: i'm good. very meta. [laughter] you guys do a lot of research for this show. you have come up here often. >> a lot of the stories come from real stories up here. when alec started on it, i think we both have this desire to dig in and find out more about the real world and what these people really do. we were sitting after the pilot when it went to series. it just kept occurring to us that i don't know what these people are doing. i wasn't building apps and platforms. i was doing a different kind of test engineering thing.

the more we dug into it, the more great stuff we found. emily: hot shows were doctors and lawyers. why write about computer geeks? >> we asked her that on a daily basis. why do we do a show about people that sit and type all day? what they do is inherently un-filmable. emily: un-sexy. unglamorous. un-plenty. >> but it couldn't be more relevant. look at the speed at which tech is moving and the roles that it plays in our lives. everybody has at least one mobile device on at all times. it is super relevant. cory: emily chang with mike judge and alec berg.

up next, how technology has changed with hip-hop and why they are giving it away. up next on "bloomberg west." ♪

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cory: this is bloomberg west were we focus on innovation, technology, and the future of business. americans vying front employment benefits at a 15 year low. averaging 200,000 a week. the lowest level since 2000. u.s. consumer confidence rose to its highest mark since may of 2007. will european politicians drive greece out of the euro area? the french economist says it is a real risk. spoke in paris.

>> it is as a rule. [indiscernible] cory: greece is currently negotiating with officials on the terms of the bailout. christine lagarde said that the fed could be in for a bumpy ride if they start raising interest rates. >> we would say that macroeconomic risks have decreased. the global recovery continues. it is moderate and uneven. cory: they have decelerate it over the last six months but threats to the financial system

-- [indiscernible] shutdown by hackers that claim allegiance to the islamic state. it has been off the air since wednesday night. the islamic state posted on the homepage and french, english and arabic. the national cyber protection agency is working to restore operations. andean court says the founder of computer services sentenced to seven years in prison after being found guilty of india's biggest ever corporate fraud. he admitted to inflating assets by buying about it billion dollars in 2009 that triggered an 80% decline in the share price. it was discovered -- nine others were also found guilty. up next, a wireless world with breakthroughs in wireless

charging and technology. and what it means for robots. when bloomberg west continues. ♪

cory: let's do a check of some top headlines. walgreens going to close more than 8000 drugstores. they will also overhaul its technology. they cut $500 million in cost by the end of fiscal year 2017. microsoft filed a reply over access to customer e-mail in data stored in ireland. microsoft said the court should honor president that limits reach beyond u.s. borders.

here is brad smith. >> when you create an e-mail it's yours. you own it, you should control it. if the government wants it, they should have to follow the law just as companies that have control of your e-mail in their servers need to respect your rights as well. cory: microsoft calling on congress to update privacy laws that are 29 years old. retailers trying to win over broke millenials. key findings report the bulk of consumer spending has shifted. those younger than 45 and those 45 and older. some of the best in the business. the 30 year average has been 12. cooler weather in the ellagic and el niño in the pacific.

imagine a reality where you don't have to plug-in to charge it. the company is breaking through with wireless charging. >> welcome to the world of wireless charging where power is transmitted through the air. it is magnetic resonance. alex explains. he is ceo. outside of massachusetts, his goal? >> get rid of power cords. we carry them around a charge phones. we have these nasty adapters to power notebooks.

we are just going to get rid of them. >> replaced by magnetic coils inside of our gadgets at the cost of just a few dollars. the download transmitter and receiver help to explain. when the first powers up, it energizes the second. several devices can charge fast as when they are plugged in. how safe is it? >> they really don't interact with the human body right now. we probably would get a bigger dose of these magnetic waves from hearing a hairdryer. >> i am not getting fried. you are sure? >> i'm positive. >> there is a power source built underneath. we have built a source into the consulole.

it begins to charge. in this system, there is a transmitting coil in this pad here. this was hit on the floor of your garage. a receiving coil would go on the bottom side of your vehicle. drive into the garage hang out, and it will turn on. >> toyota aims to bring one of the largest charging consumer products to market by 2016. the company is one of several investors including others like intel. >> snap the transmitter into place. >> it will debut a wirelessly charging pc type device later this year. >> like marriott emirates airlines, they are deploying

wireless charging solutions at the hotels and the airport. >> when will this be reality? >> five years. all consumer electronics use wireless charging. >> the need to power everything does and why electricity could be the answer to wireless power. cory: that is really cool stuff. is this different from things are ready on the market where you can plug it in and charge it at your desk? >> a little bit different because you still have to plug-in those gadgets. with this, you don't. it you just hold it over a field and let it sit there. cory: what is the rollout plan? how many devices in the near future? >> alex did not have that and is working with other companies.

they are still ironing that out. but maybe over the next year. 2015 could be the start of the era of wireless charging. if you look at the forecast floating out there we set to see an explosion in revenue and by the year 2019, it could double from half $1 billion to a full $1 billion. cory: cool technology. it could be interesting to see it rollout. bloomberg west will be right back with de la soul. ♪

cory: bloomberg west, i'm cory johnson. 25 years ago, they change the music world with hits like -- ♪ outstanding. me, myself, and i. de la soul the consciously recs. --conscious lyrics. it's been years since they've had a full length album and it is changing dramatically. the soul of hip-hop is not just the words, the beach, but the source of the beats. who owns those? they raise $400000 on kickstarter to fund this recording.

two of the three members kelvin mercer in atlanta. who owns the samples to those great records? >> man, there are a lot of hands in it. >> a lot of hands in the pot. >> artists and musicians. partly de la soul. we own a little bit of it. cory: it's hard to imagine the early days of hip-hop even before you guys when people would hear a beat and put music on top of it. it might be james brown or something they heard in a commercial. the licensing sort of snuck up on them. what was the process of sampling and finding things to use to put behind your music? >> just like you said. making music early hip-hop was

rhyming beats just back and forth by the dj. sampling was moving the dj. they are experimenting with james brown or any other record that normally you would have a rhyme over from the hip-hop perspective. we did not think about the fact of who you had to pay for writing or publishing. and we learned. we definitely learned quickly. cory: what was it like back then? a notion of, let's make the music first and figure out who we have to pay later? >> that was pretty much it. the creative aspect was most important. creating a song out of your favorite stuff, good sounds that you found was first and foremost. and business time came.

we sampled from and figured out if it will be difficult doing this. will it be hard to find this publisher? and really trying to get clearances on each song. it was a process, but the creative aspect evidently came first. cory: that was back in the day with silverman and monica lynch. now we look at the business, you want to get your music played on beats audio, pandora, spotify. what has happened licensing that music since the origin of some of those tracks are unknown? >> unfortunately, a lot of the earlier stuff we did, from what we understand, a lot of the legal language that needed to be part of the contracts between ourselves the master, and the

publisher, it did not include the word "digital." so it was specifically to vinyl, cassette, cd. a lot of the contracts needed to be reworked. dealing with that, it has taken a lot of time to take -- reach out to those people. >> to make that language, obviously, exist for the benefit of eating the individuals involved. it is a long process. that is why our stuff is not available in the digital world. cory: but you get around the rules by giving it away. >> it is frustrating. we don't want to break any rules but the fans are screaming and they want the music. they enjoy the music and at the end of the day, you want the fans to be able to enjoy the music. or you do what we are doing now

through the kickstart her campaign -- kickstarter campaign. cory: do you see yourself getting paid for that music or ultimately supporting touring and live events were artist say they make more money there? >> that is one of the options for us. we have been able to tour for the last 20 years. without having music out. the idea of stacking profit or anything rewarding what you have done via publishing or anything like that. that's not available to us, really. cory: what a pleasure to have you guys on. and how much fun to listen to this music again. de la soul, thank you very much. let's go from innovation and music to robots. we need people that make robots.

there are a million stem jobs expected to exist in 2018. even the u.s. bureau of labor statistics says that. we don't have those people right now. companies like irobot looking to get kids excited about robotic camp's -- it is national robotics week. via skype thanks for joining us. what are you try to do with this national focus on robots this week? >> very few things get cited about science and technology like robots. in its sixth year, it was envisioned and created to try to encourage events around the nation. it is happening to engage kids

with robots and excite them. runs from april 4 to april 12. go to nationalrobotweek.org to find an event near you. through exposure and hands-on working with robots, the goal is to ignite this passion. cory: it is such cool stuff and gets everyone inspired. no one has more experience with what actually works then you guys do. or me because i have a roomba running around my living room this very moment. your business has grown more slowly lately. i wonder what it means for the future of robots in the home is even right -- irobot is seeing slowing growth.

>> at this point in time upright vacuuming is dead. the future is a hand vacuum or a roomba. we have seen stronger growth on a global basis. there are regions in the world where we have seen some slowdown in the growth. this is areas where currency fluctuations have caused issues. we can see the continued acceleration on a global basis. we continue to see very strong performance. we are still actually at very early days as far as the acceleration of robot vacuum waning. robot vacuum cleaning is not just

the first big foot in the door. cory: you start to think of all the things that are possible. you guys try some stuff. he said it will be -- you said it will be material. do we really know what the use of robots is going to be? if it will be lots of different vacuums or lawnmowers next? >> there is a lot of x -- exploration going on. trying to figure out all the technical challenges to get the adoption where it needs to be. it needs to be worked out. we had some delay with technical issues. but i am still very bullish on the future of that. it fundamentally changes what it means to be somewhere. remember that we are still at

the early days even though the idea of robots has been around for decades. the early days as far as what are the true applications? vacuuming, absolutely. 20% of money spent on vacuums today, it continues to grow. cory: i want to thank you so much. it great things, kids getting stoked. we really appreciate your time. the bwest byte, one number that focuses on -- that tells a whole lot. >> $1.5 billion, the amount that linkedin has paid for lynda.com. an education and training site that sells subscription to skill building videos and career training videos. it is a big deal for linkedin. linkedin is basically trying to turn itself into a content

company. cory: we will talk about that more on the next "bloomberg west." we will see you tomorrow. ♪ .

>> from our studios in new york, this is "charlie rose." charlie: dzhokhar tsarnaev was found guilty today of all counts in the april 2013 boston marathon bombing case. he carried out the bombings along with his 26-year-old brother, tamerlan tsarnaev. the explosions left three people dead. and more than 260 injured in the worst act of terrorism on american soil since the attacks of september 11. the brothers killed and m.i.t. police officer during the six-day manhunt that followed. tamerlan tsarnaev was killed during a shootout with police in massachusetts. the second phase of the trial will begin next week. the jury will