emily: the nsa's phone dragnet remains in limbo as congress wrestles with the patriot act. does big brother deserve our big data? i am emily chang and this is "bloomberg west." intel defending its data center business by buying altera or over $16 billion. what it tells us about the growing m&a wave in the semiconductor industry. the rise of the one-stop button. i'm joined with the entrepreneur whose technology is integrating uber into foursquare with just one cap.

-- tap. i will be joined by the brains behind many of google's most innovative products, including glass and the self-driving car. sebastian is here to talk about his new partnership with google and the future of the internet. all of that ahead on "bloomberg west." there is a standoff in congress as three key spy programs were allowed to expire. a measure would stop them collecting phone records in bulk. republican senator rand paul is taking credit, saying the expiration of the illegal spying program. i am joined by the chairman of the house judiciary committee. congressman, what do you think the amendments the senate at this point is proposing? >> i don't think much of them because they weaken the house passed bill which passed by a large majority -- 196 republicans, 142 democrats. it strengthens the protection of americans' civil liberties by

ending bulk collection of data but it maintains our strong national security ability to locate and determine terrorists and if the senate weakens that it causes serious problems. they should simply pass the house bill. there is majority support in the senate for doing that and they should get about getting it done. intentionally allowed these laws to expire after having months of notice that this deadline of may 31 was coming. yet there intransigence it puts us where we are today. they should fix that by passing the house passed bill immediately. emily i was reading an : interesting criticism of what is going on in congress right now by christopher of the aclu who said this is really just a distraction when these phone records are not actually that useful. should we be looking more closely at what the nsa does with regards to internet traffic and other ways of collecting data besides our phones? >> certainly we have committed

to looking at other aspects of how the intelligentce community gathers information. for example, under section 702 of the intelligence at. -- act. but these three provisions, the business record provision that the nsa with a court order misinterpreted and used in ways that most americans did not intend, the congress did not intend to gather this bulk data which i agree i don't think is tremendously useful to them -- but that underlying business record is an important one as is the roving wiretap and lone wolf provisions used on a day-to-day basis by law enforcement to prevent terrorist attacks. those provisions all expired so this bill was about addressing that and ending bulk collection of data. and by the way, not just ending it under section 215 but under several other statutes.

and not just bulk collection of telephone records but of any kind of record whether they be financial, medical. this bill passed by the house ends government bulk collection of data, and that is what the senate needs to pass as well so we can stop that practice but still give law enforcement and intelligence agencies the tools they need to prevent terrorist attacks. emily: if the senate amends the bill, when does the house take it up? >> if they pass the house-passed bill, we can act quickly on it and be done. but if they make a number of amendments to it, they will drop -- draw out the process, leave these provisions expired, and jeopardize the ability to reach an agreement between the house and the senate, and thereby make the expiration of programs permanent. they should pass it quickly. if they do, the house will respond quickly.

emily: chairman of the house judiciary committee. thanks for joining us today. what is next for u.s. spy programs? i want to bring in a panel of experts. the ceo of a cloud storage provider and the global threat strategist of v armor. also with us for the rest of the show, sebastian, founder of google acts and the ceo of udacity. what does this mean for me right now? the fact the senate has lapsed on this one issue. how is my life different? >> it is a positive thing because there is always this challenge about balancing the need for national security versus individual privacy. i think this gives us the opportunity to really look at a post 9/11 world. it has been 15 years. and see how do we create a refined or redesigned version where we still have the nsa being able to control and

provide security that our nation needs but respect each individual's privacy which was , getting trampled on as all of the things that were in force. emily: what does it mean for business, the tech companies? ryan: i think it brings the discussion around access to data not just from a policy and government standpoint but to a third-party attacker to the forefront of the discussion. it will probably begin for the -- it will probably be good for the consumer because this companies are forced to pay for protecting these consumers did -- data, not only from a government intervention but also from the third-party breaches. emily: you used to work at google and have your own business. sebastian: i wonder what is the real threat these days? north korea, private companies? is the nsa a real threat? ryan: i would say the real threat is probably more the people who are looking to do malicious intent but the broader

discussion around knowledge of who has access to my data is is someone is leaking it without me knowing or stealing it or just a -- and unwarranted attempt of my government to have access becomes an important discussion. >> we see these massive discussions when sony gets hacked. to what extent does the nsa help detect these things? how much is the patriot act a problem? >> i don't think they are directly correlated because some of these examples are driven by malicious intent on certain individuals' part, or organizations which are different and disconnected from the nsa. the issue at hand here is how pervasive and overreaching you

want the nsa's reach to be and i think that it came to an extreme end in terms of the pendulum swing. the fact is expiration has happened will be forced to have improvement and by losing the amount of pervasiveness that had become too pervasive. emily: there is a work around. it is not like the government is not going to be able to do its job. they can get a court order, ask the phone companies for this information and they will have it. i wonder why are we focusing so much on the next few days when these powers have supposedly lapsed? does it make that much of a difference? david: the replacement with the freedom act is putting some controls in place. i think that is the important differentiation between bulk collection of the data without an wanted access versus putting in enforcing those processes. emily: what are you as a business owner? what concerns you most? sebastian: i see the balance. i care about the privacy of our customers and so on.

i see a world that is very different from the world of the past. we live in a cyber security world. i think we are seeing the tip of the iceberg of what is going to happen. we see different attacks. the last two years have been different than the 10 before. about the u.s. government protecting me as a business, me as an individual. emily: we are going to keep watching what the senate does with regard to these amendments. sebastian, you are with me for the rest of the show. thank you so much for joining us. today in mega deals it is finally confirmed. intel scoops up all terra -- altera for $57 billion. why? to defend its earth in the data center space, its most profitable business, intel is paying 11% premium over the closing share price on friday. it is the same price it offered in april. that was initially rebuffed.

the deal still pales in comparison with the $37 billion purchase of broadcom last week. coming up, connecting the dots in the world of applications. the man who wants to make your online life more seamless. he is behind a new partnership between foursquare and uber. plus, is this your old junk? the apple original dumped at a recycling center is worth a small fortune. ♪

emily: foursquare has announced a new partnership. you can order an uber ride from inside the foursquare app all powered by a button by a company called button. these buttons link between apps so you don't have to navigate between them. once you have used foursquare to find a place to eat, the touch of a button will order an uber to take you there. we have the button ceo michelson -- michael. tell us how this works. how much business will button drive to uber? michael: the goal and the objective -- what we are trying to accomplish is building a network that enables app

developers to connect. and what we see in the internet and developers is their craving to build solutions that help make connections easier. we are trying to take really obvious use cases -- you are in a wonderful local discovery application like foursquare, looking at restaurants or venues you are likely to travel to, the natural next step is to invoke a button to show an uber to take you there. the beauty of this is we are trying to predict where you want to go, and ultimately render a simple way to do that and facilitate that process. emily: your business model is directly linked to the amount of traffic you are driving to the other app. how much traffic do you expect to drive to uber? michael: the goal with uber and any of the partners we are lining up to work with is obviously as much as we can through as many channels as we can. foursquare is one case where the amount of time and investment and cost it takes button to launch another foursquare is not that significant. for us with uber being the

primary first step and first partner within our network, it is a pretty good endorsement of two really respected companies , endorsing this thesis that atpp connections should exist. sebastian: i have a question. every time i open my phone, i am bothered by the fact it is organized -- each button is a different company. is that the end of it? will we see that connectivity? michael: i think it is a model that we see a lot of companies play with in different markets. you see in the chinese market, fei company has done a phenomenal job of building a number of features and services into their one umbrella portal. you see companies can't do bundle these services. what we are building to is that there are a lot of use cases that should be connected whether

that is reviewing flights inside of a different airline application or looking at a beautiful product on pinterest and wanting to go purchase that product. the best environment, the best experience you can give as a developer is bringing that user into your application. we are trying to make those connections easier. if it is bringing out a hub and spoke model, where you have a number of companies that have traffic, generating and developing relationships with consumers, there has to be revenue story associated with that. that revenue story in a lot of cases is ads. in mobile, this is not really inspiring. what button is trying to do is bring in a model of affiliated commerce, saying in this experience, based on what you have done and what you are reviewing, it is likely you are going to want to make a purchase in another application. that is where button comes in. sebastian: one you make these deals with these companies, are

they very open? have they always been waiting for this, or they saying i want them to come to my app? michael: the beauty is we facilitate the connections into the applications. for us, it is not saying we want to bundle the experience into one app. what we are doing is actually letting the developers love -- who have invested so much in experiences, in the consumer journeys they have built we let them bring consumers into that. we just create the system to make that connection very simple. they love us. frankly, the truth is, the fun part for us is that a lot of the partners we are signing up are -- those that are public and those that have leyet to be announced -- are the best as a development pipeline out there. they are building these partnerships on their own. they just need someone to go out there and build the pipes to connect them. emily: thank you so much. interesting with google just

unveiling a "buy button." i learned a new word today. deep linking which is how apps connect to each other. sebastian: it is the future. emily: is it going to be as complex as the web? sebastian: people do not want to know what company is behind this. they just want to be connected and do what they want to do. emily: thank you so much. spring cleaners, the recycling center in the bay area is looking for an anonymous woman who dropped off this computer. is not an ordinary piece of junk, a piece of history. a vintage apple one computer one of only 200 first generation desktops made by steve jobs and wozniacki in 1976. it recently sold for $200,000 to a private collection. they split all proceeds with the donor, meaning the mystery woman can claim a $100,000 check.

clean bay told us it is getting a lot of claims but has not found the real woman yet. up next, this is not your grandfather's shazam. the music identification app is moving into augmented reality. he started from the bottom. now he is making $90 million. we tell you which tech giant may be writing drake a massive check. ♪

emily: it is time now for the daily byte, one number that tells a lot. today it is $19 million, that is how much money apple may be willing to pay drake to be a guest dj on itunes radio. "the new york post" says apple is in similar talks with pharrell williams. and a french dj, david guetta.

bloomberg has reported the company is looking to sign artists to exclusive contracts for the anticipated revamped beats service. apple is expected to announce its new streaming music model at its worldwide developers conference next week. we will be there. shazam. it is best known for identifying music and audio. now they can recognize images scanned within the app. why did they enter this space and does it hit at the rise of augmented reality? here with me again, sebastian and rich riley, ceo of shazam. qr codes didn't work out. why will this be any different? rich: shazam has been installed hundreds of millions of times. it has over 100 million monthly active users. we make connecting with music, tv, and printed content just a tap away from an application already on your device. sebastian: what is a good example of what i can do now that i could not do before? rich: one example was, last

friday, disney ran a full page ad for their new movie. by opening shazam, tapping a button, we took you to experience this new world, meet the characters and have an immersive experience that prior to this you would've had to download a different application. it was a lot more friction to get into a great experience like that. emily: as a guy behind google glass do you see augmented , reality and virtual reality hitting popularity? where is this going? sebastian: i think it will move forward. i love what shazam is doing. they should do facial recognition. emily: you would not have to tell the person you do not recognize them. what is the potential rich? , could this go? -- where could this go?

rich: it could go to making everything shazam-able. you could go to discovery. people will want to connect to the world around them from their smart devices. 87% of millennial's have their phone with them 24/7. it is the first thing they check in the morning. it is the way people are going to want to engage with the world whether it is to learn more, by more -- buy more, share. the world world will get connected to the smart device really quickly. emily: i know you guys are a hot company out there. what kind of dollars does this add to your bottom line? rich: what is nice for this on the revenue side is it lets us partner with brands in a strategic platform way that now a brand can talk about connecting their packaging and make that connection to a mobile experience, which is something most brands are trying to increase their mobile engagement. sebastian: do you think with advances in deep learning, you can recognize jeans and clothes

and let me buy the same thing? rich: i think someday. these devices are only getting smarter and faster. i think we are just getting started. emily: richard riley, ceo of shazam. thank you for joining us. to google and online education. udacity is teaming up to offer android 101. this has been your dream. going off to start this company. you left the most amazing job at google to do this and i wonder what kind of result are you seeing? are the people who are getting nano degrees getting the jobs at at&t? is this a way to get a job at google? sebastian: we had a professional golfer in south korea that could not make the cut and became a software engineer. the number is actually quite large and quite amazing to see people who have never had a chance before.

women who raised kids for 20 years suddenly have a chance in the workplace again. emily: we saw a lot of announcements last week. it has been eight months since the sindelar takeover. a lot of responsibilities from larry page. how pleased are you? where do you see the most promise in google's new products? sebastian: he is an amazing manager. a lot of great products. i was pleased to see udacity in the keynote. the most important announcement. overall, i love google. emily: how amazing is it for you to have a partnership with google? like the it picked to for engineers. -- like the epitome for engineers. sebastian: it is a sign to the world there is a pass to employment. you can learn online and it is very cheap and you can possibly get a job at google. emily: thank you always for joining us on the show. always good to have you here. that does it for this edition of

"bloomberg west." do not miss our special live tomorrow. from las vegas, the hewlett-packard discover conference. hp ceo martin frank is my guess. i will also be speaking with meg whitman later this week. ?

." charlie: the great jim parsons is here, a four-time emmy-winning actor, the star of "the big bang theory." it is the highest-rated comedy on television and one of the most successful series in syndication. he now returns to broadway starring in a new play as none other than the almighty himself. it is called "an act of god." i'm pleased to have you at the table. jim: thank you.