bloomberg technology conference. talking about the latest trends you have to know about. pimm: an exclusive interview with outgoing twitter chief executive dick costolo, speaking to us days after announcing he will step down from the company. betty: that is not all. also joining us for an exclusive interview is yahoo! ceo marissa mayer. will her turnaround plan at yahoo! finally stick? pimm: good afternoon. i am pimm fox. pimm: -- betty: i am betty liu. a look at the markets. equities are rebounding. stocks up marginally. quite a bitost yesterday. the s&p higher by .3%. encouraging news from greece.

sort of will get some deal. you hear some pretty strong comments that you need a miracle to get anything done in greece. in the oil markets, a bit of a rebound for nymex crude, up almost 1%. speculation about inventories as they continue to be brought down. that is going to be positive for the price of oil. pimm: let's take a check of the bond market and see what investors are doing. and little bit of buying on the 10 year, 2.33. look at how the dollar is faring against major currencies. the dollar weakens against the euro, 1.1235. yen weaker. 123. pound-sterling gaining against the dollar. it comeson greece when to currencies. let's look at some of the top stories at this hour. no sign of a compromise from

greece's prime minister today. in a speech to parliament, lexus tsipras accused the international monetary fund of criminal responsibility for greece's problems. he said the bank's tactics greece are strangling his country. bailout -- greece's bailout ends at the end of the month. not everyone is worried about a default. >> greece defaults on public sector, it is a washout. the ecb has decided to print 1.6 trillion. greece is 120 million. governments have already issued those bonds. it will be a default paid, you move on. have greek officials indicated they will not offer more concessions in exchange for unlocking more money. the congressional budget office is warning the u.s. economy cannot live with rising debt

levels and definitely. the cbo says by the year 2040, government debt held by the public will exceed the size of gdp. it blames an aging population and rising health care costs. a report released in this morning says lawmakers need to make major changes to taxes, spending or both. those are your top stories at noon. technology conference is getting underway in san francisco. an event that brings to get investors, entrepreneurs and influencer. betty: we are talking code and the corner office. in manhood is no stranger to the tech evolution and revolution, dick costolo. of twitter. ceo sitting down with brad stone. brad: when did you realize you would not be with us any longer? dick: i started talking to the

board about it at the end of last year. i said at the end of next year, it will be my sixth year with the company. summer will be the end of my sixth year. i came in as the coo, the board asked me to do this in fault -- 10.l 20 let's start thinking about a succession plan. it was the end of last year. brad: something about the transition as you guys have described it that has not tracked for some people. what happened? particularly at the twitter board meeting -- to instigate the transition. dick: i think it was a week ago thursday. we talked about it at the february meeting and said by june let's figure out the plan. people sort of, a scribe, you can see in the meetingter the board

there was all these nefarious things happening. it was a three-hour conversation where we decided, look, we want to be able to do a full search for the right next leader for the company. if we try to do that in secret, the moment you talk to a couple candidates it will be out there. it will be a bunch of nonsense. .e want to do it in the open we decided if we are going to do it in the open, we should really think about bringing jack in as the interim ceo now, which we are doing. the publict do that, distraction of when is the person going to be here and dick is walking around with a timer on his head. i thought that was going to be ridiculous. brad: did you go into the meeting thinking that was the possible outcome?

there had been criticism, particularly from chris sacher -- chris zaka. did you take any of that personally? you cannot take any of that personally. as the ceo, you better be able to have some balance. i told at the code conference, i told kara great ceos are a balance of resilient, they are greedy, but they are self-aware. arehey are gritty, but they self-aware. we have the blessing of working at a company everyone cares about and thinks about a lot. it has been that way since i got to the company in 2009. everything we do this in the spotlight. people have opinions and they wanted to be more like this or that. that is a great thing. i would rather work at a company

like that then someplace people do not care about. brad: i've heard you say that. zaka, early investors have made hundreds of millions of dollars via twitter shares under your leadership. there has to be something galling about the fact -- dick: it is all a rich tapestry. [laughter] some of theine things he outlined are things that twitter is working on. in the year when twitter unveils those products and he gets credit, doesn't that bother you? marissa: -- ink: there are 4000 people the company and no shortage of great ideas. one thing that has been important is to foster entrepreneurialism in the company and bring in entrepreneurs into the company. the ceo of periscope. it was a combination of delight

about the beauty of what they had built and the light about bringing in an entrepreneur like that into the company. these people generate tremendous amounts of ideas. the thing that's important for me as a ceo to do with product and engineering leadership is put the right system of ideas together so you're developing towards a cohesive whole and working backwards as you release things. today we released autoplay video. that was born on vine. it is part of a system we are trying to build towards as part of a native mobile video ecosystem that incorporates fine and it works in a seamless fashion. brad: jack dorsey is now the interim ceo. he has other responsibilities. he's the ceo of square. it surprises me that he continues to have the passion and bandwidth to run two companies. is obviously the

inventor of the product and cofounder of the company. just as importantly and maybe more importantly, he has this about the way he thinks about the product and the way he thinks about its potential that is almost remarkable. i have gone to know him extremely well over the last five years. we had dinner every tuesday night, we are having dinner tonight. we talk about the kinds of things we are thinking about four hours. ism just delighted that he stepping into this role. i think he knows the leadership team, he knows the way they work. have an interest to be the full-time ceo of twitter? dick: jack has said this himself. this is about letting the board do its work weird and providing the board the space and time to do its work. he's going to be great at it. i cannot stress enough that he

has this clarity of thinking about the product that does not bring with it this -- the only way i can describe it is conceptual baggage -- that other people bring. brad: do you think it is important that the next ceo of twitter is an insider that understands the history and the product? differente are many ways to be successful on many different kinds of successful leaders. ae of the things i've had couple conversations with people is weicon valley about tend to create the mythologies about great ceos. those, theywith is sort of get boiled down into this almost comic book notion of what that person was like. and then people stable that person's face on their wall and say i will do everything that person did. you have to be yourself. there are many ways to be successful those, they .ort of get

but -- great leaders are courageous and resilient. and they are self-aware. the characteristics that any of us would look for in the next leader are resilient and self-awareness. any of the other stuff, specifically, is something you could say we need someone who knows x, y and z or has been using this product -- or is a blah, blah, blah expert. brad: how can the next ceo of twitter learn from your tenure? dick: i will continue to serve on the board. i hope that that is helpful. of that kindenefit of institutional knowledge about the team and the product and things we have tried and learned will be helpful. things you want to do when you are running a big company and trying to develop a cadence and move quickly. make sure that you are learning

as fast as you can and you do not hold onto dogmas too long that get in the way of changing or learning. the doubt and skepticism that people have is whether this is a real search. upther jack is being chewed cued up asup -- the next ceo or you are going to cast a wide net. dick: there is a search. there is a lead independent director leaving that and two of our biggest shareholders. xad: some of the shareholders on the board, is that a daunting situation for an incoming leader? dick: i do not have any ego about you have to do this this way. that i and think

self-aware about is that there are so many different ways to be successful. and having some specific this is the only way to do that is never a good way to think about things. one of the reasons i started teaching and management class, i teach a class to my managers, directors and vps, i saw people coming to the company with dogmas about the right way to manage. all they were was success biased from wherever they were previously. why don't you have to pick something at random? ones whered one on ever i was, google, look how successful we were. ok, that is random success biased. brad: do you see yourself as a long-term twitter board member? i think about myself as being on indefinitely. we are always looking for new people to help us and different perspectives. when the time comes that he shareholders decide that it is time for someone else to step into the role, i will be fine. brad: let me ask you about two

members of your management team. adam, your sales leader, could he be a candidate? ick: anybody on my management team, i believe it is one of the best leadership teams in the industry. adam, who runs our global leadership team, he is tireless, he's always and a great mood. he is relentless in his pursuit of the next thing that he happens to be working on, he pushes his team in the best way. i cannot speak highly enough about that guy. his energy level, i will tell you a quick, specific story about him. his energy level is off the charts. we were in chicago getting ready to do an all day marketing

event. we had gotten into the city late and i was talking to him in the lobby at 1:00 a.m.. i said i will go to that and see you at 7:30. ofot five and half hours sleep or whatever. i came to the lobby the next morning and he was sitting where i left him in the same outfit, oh, i have got to go up and change, i will be back. i thought he is going to be wiped out. he ran it flawlessly. being able to have someone like youon board and know that can count on them to always go the extra mile. your cfo who noto, has taken on increasing responsibility. increase in -- occasionally prone to direct message. dick: he gets beat up for that. brad: incredibly competent leader who is also considered perhaps a ceo candidate. about my great thing

leadership team, anthony, i is i have mentioned, i did not bring anthony to twitter to be an accountant. he came into the cfo role, that is his role, he has taken on additional responsibilities in a number of areas. high bandwidth. i have got that kind of leadership across the board. one of the reasons i decided at a recent meeting that now would be an ok time to move forward is that we are so confident in the team. , has, who runs products been down longer than me. five or six people have been there longer than me and here is one of them. he came as an individual country beater. -- an individual contributor. brad: there have always been -- dick: it is true. brad: you talked about twitter

as public and conversational. a lot of your products, these are curated, algorithm versions of twitter. how much doess the next ceo really need to have a vision? how to reconcile some of the inconsistencies. do not think of them as inconsistencies. your products have to evolve. twitter started out as a text only product. we have evolved dramatically. the two other products we have brought our native mobile video products. you will see those of her time. an into the kinds of services we are building for twitter. i think the next ceo has to have of ability to break out whatever sort of constraints that person might think they need to be able to break out of. brad: you know the difficulties

of getting big organizations to move quickly. aboutpressed frustration the trolling problem on twitter. you have been talking about things like total audience, putting advertising in places where people are not necessarily logged into twitter. they are seeing syndicated tweets on other websites. how should the next ceo thinking about getting this company to innovate at a pace that is satisfying to wall street and its users? about that.ings one, we have a very concrete and specific long-term strategy in service towards developing the total audience. is developing content engaging for logged in users, more than half a billion users who do not log in, and the other -- as we have articulated -- over 700 million users that we reach in syndication. that strategy is about creating content experiences that are both engaging and in the moment and monetize able.

brad: has the pace of execution been satisfying? dick: the pace of execution this year has been more than satisfying. at the end of last year, i sat on one of our earnings calls, i said the pace was not where i wanted to see it. our analyst in november sitting next to me said to the audience and investors in the room, you are going to see pace of execution that year that you have not seen from us before. to his confidence in the team. i have seen that from them. it is going to unfold and continue to unfold over the course of this year. we have got things rolling out this fall that i am over the moon about and cannot wait for people to see. i think once people see that come together, they will understand how we are talking about a strategy and why we feel confident we can monetize that. dick: you and jack keep saying -- jack keep saying

that the direction of innovation on twitter and the pace of execution is good. how much leeway does a new ceo have to come and make big decisions and change things? dick: everyone on the board is .ecognized the ceo needs to have the leeway to do what they need to do. what i am trying to articulate and what jack is trying to articulate and what everyone feels is that we like the strategy in place and we like the team that is in place. until further notice, we are going to continue down that path. i would point to a couple things. appears to be off to the races in its very early days. it is going to be one of the videog new native mobile experiences did it is going to change the way -- as part of twitter -- people think about medications platforms. hillary clinton is using it in her presidential candidacy. , in only its first year

as a mobile software development kit, already the number two mobile application analytics package. that is only one of the elements of fabric. additional gets momentum behind it, the notion that you have got two of the most powerful native mobile that apps, mobile sdk spans the globe, it is a global phenomenon. all along with the total audience strategy of the twitter ecosystem, that is a powerful combination. brad: what is next for you after july? other than responsible is as a board member? dick: i have no plans to i always advise people who are going through these kinds of transitions to take some time off. i will try to do as i say. brad: i have a hard time trying to imagine you reading a novel at home. dick: you do not see me in a jacket?

no, i do not, either. brad: would you ever return to stand up comedy? what kind of material have you derived from the last five years? dick: i do not think it would be a smart move to return to stand up comedy. [laughter] dick: i get heckled for free now. why travel? brad: in the short time we have remaining -- dick: i do not have to do that anymore, i can be heckled in real time anywhere around the world. brad: no interest in returning to creative pursuits? inbox -- itly -- my got back to my desk thursday afternoon. i have a crazy amount of e-mail from all sorts of folks. i do not have any idea what i'm going to do next. brad: dick costolo, thank you very much. dick: thank you for having me. [applause]

brad: thank you. pimm: brad stone of bloomberg speaking with twitter's dick costolo chief executive. at the bloomberg technology conference in san francisco. having -- let's bring in emily chang. she's standing by. at a technology conference. you heard the conversation between brad and dick costolo. what do you make of their rendition of the transition of power at twitter? emily: it was interesting. dick confirmed a lot of things we have been hearing, that he started talking to the board about this at the end of last year. what is interesting, it was really the recent board meeting, just a couple weeks ago, where they said this is going to happen. we do not want dick to be walking around with a timer on his head. it was a three-hour conversation where they decided they would

announce that dick costolo would be stepping down to conduct a real search. i thought his answer to the question about the search was interesting. they're certainly a perception out here that jack dorsey has the job. but he isrim ceo" going to stay on as permanent ceo of twitter. as well as square. brad asked is this a real search and dick said we are legitimately doing a search, jack is going to allow the space and time. everybody wants to know what kind of person dick costolo would like to see replacing him. we did not get a lot of color there. will this be a tech person, product person, marketing person? costolo says there are many different kinds of successful leaders. echoing the things he has told me over the last several months. does it have to be some other kind of person? he thinks different kinds of people could succeed at the job. why i thinkis

shareholders are frustrated. i'm watching the shares of twitter right now. they are kind of bouncing around at the 52-week lows. this company is now going to be distracted or occupied with who is going to replace jack dorsey. they need to continue to stay focused on how do they make money? talkeard dick costolo about periscope and how it is a fantastic new product and there is a lot of momentum around it. as pimm and i were discussing, how do you make money on this? emily: by the way, i was not just live tweeting that interview, i was live periscope the interview and getting comments in real time. of dick costolo's legacy, periscope could be the most important acquisition in twitter's history. it could change the way you and i do our jobs and report the news on television. certainly the way we get information. will not be a product of

vision change or strategy change. i think all of this needs to play out. we do not know what is going to happen. we do not know how long the search is going to take. as dick said, it is going to be a real search. pimm: quickly, you talked about adam -- all right, we're going to leave it there. there's more at the tech conference thank you, emily chang. coming up, you will hear from marissa mayer of yahoo!. betty: we hear her strategy. an exclusive interview with marissa mayer at the bloomberg tech conference. this is where we leave you. pimm: i will be watching. betty: excellent. we will be back in a few moments. ♪

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bloomberg. donald trump is making it official, running for the republican presidential nomination. he launched his campaign earlier today and said the u.s. has become a dumping ground for other people's problems and out to get tough on terrorists. trump: islamic terrorism is eating up large portions of the middle east. they become rich. i'm in competition with them. they just build a hotel in syria. can you believe this? when i have to build a hotel, i have to pay interest. they do not have to pay interest because they took the oil. isis has the oil. document.released a

fitbit is counting on the prospect -- it has increased its ipo. it would be valued at $4 billion. companies profitable that is willing to show it can keep even with increased competition. it is supposed to price tomorrow after the bell. regulators will ban artificial trans fats from the u.s. food supply over the next three years. partiallyources hydrogenated oil used in frying and for baked goods. the fda ruled the trans-fats contribute to heart disease. republicans want more time to rescue president obama's trade agenda. the rules committee approved a measure that will delay another trade vote until july. it all has to do with the bill that's will compensate workers who will lose their job.

that is look at your top stories at this hour. in the next half-hour hour, a lot ahead, including a next as if conversation with yahoo! ceo marissa mayer from the bloomberg technology conference. can't you turn the company around? -- can she turn the company around? giving employees a tax-free stake. stabilitys financial hanging by a thread, alexis tsipras is going on attack. time to check in on the markets. julie hyman looking at health care stocks reacting to m&a rumors. julie: everyone is looking at everyone. let's look at how these companies have been trading. let's start with aetna. there have been reports united

health is interested. it is still trading at a record. we have been watching united and anthem and cigna. anthem and united both held on to their gains. i went to pick a quick look at something from bloomberg intelligence. case in the garment looks at the medical loss ratio for cigna. this is the percentage of premiums that go toward expenses. you wanted to be lower. this gives you one of the reasons cigna is one of the targets talked about frequently. health care is the best-performing group in the s&p 500 this year. nearly 900%. part of that is due to the consolidation. it has to do with pharmaceuticals as well. we have seen a lot of deal volume, the highest deal volume

within the s&p 500. betty: thank you so much. refocusing on tech. after speaking to dick costolo, and ahead of our conversation with marissa mayer, i want to bring in jay. entrepreneur who has worked with linkedin, sony, universal. he does a lot of the folks associated with these companies and he is an author. about how to copy, thrive in an era of innovation. i know that you are listening along with us to the dick costolo interview. brad asked a relevant question. how do you keep fostering innovation? we have seen missteps by

twitter. jay: success is it occurs when you are a public company because you continue to do the same thing, you will go out of business. it is the 60th anniversary of the fortune 500 and only 60 have survived. what twitter has done, they're innovating through acquisition, not internally. , thehave an advantage original founder, jack, is still there. they had the ability to be disruptive. there is a day when bill gates said, wait a second, there is the internet. ceo toough for a higher do, it is easier for a founder. betty: throughout your career, you have consulted with many of these ceos. you have worked with steve jobs.

jay: i have worked with many of these amazing people. with thee list goes on number of ceos that you have consulted for and worked with the company. jack dorsey, what would you recommend jack dorsey do, hearing from dick costolo? there are two things. one, to continue to disrupt and innovate. of writing, we communicate through video. periscope is a good direction. at the same time, it is about profitability. you are now public company. you have grown in audience. betty: now you need to make money. jay: and do it every 90 days. dick talku heard

and howriscope profitable it is going to be. jay: you are not just a click away from 6 billion people. monetizing them should be easy. consistently as all the competition chasing it, is the hard part. betty: what is so difficult about that? jay: you have the balance of introduce monetization so you do not alienate your early users. it is coming up with -- when you look at facebook, facebook has done an amazing job of andgrating advertising their revenue per employee is off the charts. is to continue to innovate and your users will respect that you are a business and you have to have that balance. betty: you had that balance --

what is the message for twitter? o?at is their m people say that facebook the world, instagram through pictures. jay: twitter has been many things, it has not been one thing. it makes it difficult. i am one of the few public ceos that lives on twitter. i find it a great way to communicate and do business. betty: hang on, as i understand, marissa mayer is on stage at the bloomberg technology conference. let's head straight there to listen in. there is awill say bunch of things we have been waiting years to be able to do. rings like really understanding where we should play in search,

getting the freedom to innovate in search. which you that with our partnership with microsoft in april, things like the nfl trial we are going to do in october. we have been hearing about the nfl's plans to go digital for years and really wanted in on that. some of these things are things that we literally have been waiting and planning for years to do. i am as excited as i have ever been. the opportunity has become as vibrant and well shaped for the company. stephanie: it is still fun for you? marissa: yes. last night, at the ofning dinner, the cto airbnb talked about how powerful it is as an executive to understand the building blocks of its company, to be somebody who really understands the product at a fundamental level. i want to explore that with you.

when you got to yahoo! three years ago, what were some of the problems and opportunities you are able to see through the lens of somebody let's been so much time in product and the the lens of a computer scientist that perhaps your predecessors not able to see? marissa: i talked about the fact that working at yahoo! has been the most amazing design problem i have ever gone to work on. taking about today, when you are doing a startup, you are building a startup, it is a design problem. in a transformation, a annaissance, it is i engineering problem. looking at the organization and trying to understand where the lever points are. what an organization is not working. what needs to be reengineered. people, ourrom our products, how we look at traffic and revenue, when i look at

them, i see engineering problems and the prototypes -- and we need prototypes. all those basic engineering principles, they apply to everything from the culture of the company to how we run our product and think about our business line. stephanie: can you give us a specific example of how you looked at a business scenario, whether an acquisition or a people management issue, that you think really crystallizes and reflects that engineering perspective? which specifics that people in this room can potentially relate to? marissa: sure. our content strategy last year. 2014 was our time to do a lot of different experiments. big scrimmage with partner we did, live nation, original content.

we did each of those that are really small scale, to understand what worked well, what was quality, what did the audience respond to? now returning to it we are looking and saying, ok, what we sell works really well was the magazine content, the deep verticals yahoo! has been known for. how can we build up more video there and content? when we do things like the ultimate dj, we are running a linesith simon cowell, really deeply with yahoo! music. shape our content and think about a bunch of different experiments and prototypes and seeing what works and what are users respond to. things like live nation and verticals that we had been strong in. had we build more content in that vein? stephanie: does it ever become

a hindrance? it is your nature to be iterative. at a time when you need to be bold, and you have to remind yourself to be bold, is that developer mindset ever feel like it is holding you back? marissa: engineers love data. i love data. one has it that can happen is analysis paralysis. you end up looking at so much data where there is a moment where it is working and it is time to scale it. d miss that moment? miss that moment? because you did not move on its? you have to have healthy tension -- is now the right time to scale? stephanie: do shareholders care that the ceo of a company has a technical background versus a more traditional management

background? marissa: i guess that background matters less than actual results. i think that it should matter to shareholders and i do think it matters to our shareholders that we are well engineered company. and actually fixing some of the engine, getting our traffic growing in response to the quality and building new revenue streams, such that we are not just maintaining declining revenue strains, but building new businesses like yahoo! gemini. little bittalk a about gemini for people who may not be familiar with it. marissa: sure. i did a major at stanford called symbolic systems, it is psychology linguistics and computer science wrapped together. the brain is a terrific pattern

match or. er. see patterns, i anderson and how they work as a system and able to recognize it. ads, au go to design lot of the ads we have individual are interactive -- interruptive. it tries to be as loud and animated to pull await your eyes. are much more native, secondories -- 30 stories. when thing that we developed with yahoo! gemini. twinning.ion of that leverage the

fact that users come to the page and if we make content easier to recognize, it has more of a pattern and rhythm and repetition, you can us help them use the site more efficiently and have advertisers deliver their message more efficiently. stephanie: you mentioned your academic work in symbolic systems. in the some other people room might refer to it as artificial intelligence. one of the things that i've been interesting about her conversations about code and developing, there are multiple flavors of computer science and keep who have studied it. little bit about artificial intelligence specifically and why you think that has -- how has that informed your career? things like gemini or the work you do that google do seem like they are of a piece. marissa: it is funny, for me, from very early on, i was

committed and interested in being a neurosurgeon, particularly a pediatric neurosurgeon. was less interested in cutting up brains and was interested in how do people learn and reason and expect themselves. -- express themselves. psychology and with six are interesting to study, but the computer science piece of it is can you cause the computer to do the same? that notion of can you have a computer start to learn and do things that are more advanced and not necessarily going to be contained within the confines of a program you gave it is really amazing. and a lot of these artificial intelligence methods are the most interesting and complex mathematical problems you have ever seen.

basically, artificial intelligence does not work the way the brain works. it is not about connecting neurons. in computing, the way you achieve that is the lots and lots of mathematical simulations and a lot of feedback in terms of this is the right outcome, this is not the right outcome and that computer can brute force it and simulate learning. it is a different type of learning, machine learning. stephanie: in your current role, you are still busy. do you have time to get behind a keyboard and code? marissa: some of the most interesting projects we get to work on -- terms of coding, the company would not want me to code professionally. i am rusty. it would be hard to -- i do like to code for fun. i have done a couple of little artsy things i like to do at home, scripts and like to write.

i do keep my hand in it so i am familiar with the syntax. i certainly have read some of the papers on deep learning. i want to have coded any of them recently. stephanie: how do you stay current? do you talk to your developers, get a deep dive from time to of the you are aware latest and greatest in coding languages and trends? myissa: i dedicate a lot of thursdays and fridays at looking at products. when you look at products, it is not just how you see how they look and feel, but how or are they built? re: making the systems the smartest? the product engineering are married in those reviews. stephanie: you talk a lot about data. how does data play a role in the

financial decisions you have to particularly!, about stock volatility and how you think about the relationship you had to your shareholders. do look at data, or is it something driven by other forces? marissa: we'll get data as to how the business is performing and what opportunities we have. one of the most interesting coding and business decision related pieces was split a b testing. i want to take a percentage of my users and give them this fear and and another percentage and give them this experience. will the search more or less, read more or less articles on our homepage? how will that affect ad impressions? we can put it one experience and not the other two understand how

users respond to it. in that world, you can say the signs of having a controlled experience, where everything is the same except for the change you have made, you can ask the get really good at predictions in terms of where the business is likely to go if you make a change to a search or the homepage or ad format. it is something very much driven by the fact that this is all running on code and you can and give themers two different experiences and alternate experiences. i think that is something that is really helpful. i look at a lot of data like that to really understand if we make changes, will they be positive? will they be revenue positive? times, what we call an , you do anking experiment and it gets better, but if i change a variable, does

a get better gekko you can kind of climb the hill. stephanie: how do we square that with something like the nfl opportunity? that comes up, it is a once-in-a-lifetime opportunity, you know there is another bi a prisoner's dilemma thing going on. can you test for that or is that something that is. state and you have to go for it? -- pure instinct and you have to go for it? i was worried they .ould do their own letter a-b stephanie: you are making a decision as well. marissa: sure, but when we look at our legacy in sports and the opportunity we have for our users, the fact that we have a network andve

server capacity, there's a lot we can bring to the table. i made this comment last week at our meeting. when i first got to yahoo!, they asked, is yahoo! a media company or tech company? in the media driven tech or tech driven media? for a long time, that was one of the companies achilles heel. it becomes a real opportunity and strength now. when something like the nfl goes digital, we may not be the biggest technology company, we are the biggest technology company that gets media. partner to natural figuring out how to help some of these media companies come online and really find great distribution and a great experience and ultimately build

great businesses. stephanie: record this potentially lead? moresa: we hope to do with amazon. we like to do a beautiful job with this trial and have something there. packerse: the green bay podcasted? -- broadcasted? the other news is the status of the spinoff of alibaba and yahoo! small business. is believe the transaction going to proceed as planned. what gives you confidence? marissa: we are proceeding with our plan as proposed, based on the understanding of a few key things. changeshe contemplated do not apply to previously

received requests for rulings and are ruling was -- we filed for 12 in advanced of these changes. the other thing that gave us confidence is that these proposed changes are not changing the applicable law, it is more the auspices around the type of transactions. thisve also been reassured is not something specific to you who are in response to this particular transaction. there are many of these transactions of various size and scale. then't presume to speak for irs, but given our understanding of that fact pattern, we feel that we should proceed with the pose transaction as planned. stephanie: with what you now know, is this the way you think about yahoo! japan in anyway? marissa: i think it is too early -- we are working with our

advisors about the opportunities to maximize the value of yahoo! japan. that is the thing that's we will communicate with our shareholders in the future. i don't have a lot to say on it today. we have not made request for a ruling. a lot of it has to do with the underlying applicable laws. there is a lot of acquisition activity happening in the world of media and tech you are from earlier. how is yahoo! thinking about acquisitions these days and are you still talking about aqui-hires? marissa: they basically have a three prong strategy. the talent acquisitions are about hiring teams. i'll come back to that. our needs have become less

acute. got to yahoo!, and i understood, because i remember when the board hired me, i was much more worried about the team i would be able to hire around me, people i would be able to track. yahoo! had been a very tumultuous and scary place to be. when i would meet with entrepreneurs and technologist and say, would you come to yahoo!, they would say i would love to come to yahoo! and work with you, that i am not coming alone. everyone wanted their team to come with them. they have a great team, they hundredgreat product, million daily active user, they did something great. we do fewer talent acquisitions. -- we saw a great team th

building blocks, we make sure that they are aligned with come todigital, -- they the technology. a great example of this is on thmni. they focused on mail and contacts, how do the best possible contacts. to create a contact book, even if you change e-mail or jobs, taking that building block and building it into yahoo! mail. that pullbusinesses us in new directions. about -- we talk about

mavens. , video, native and social are growing. we have great opportunities in each of them. .e want to build up platforms have them pull us into new directions and really find growth these new large, strategic opportunities. stephanie: there are a lot of people in the audience who are world, butogy we have ceos who are outside of technology. they are your partners, potential partners. what advice do you have for companies that may not necessarily have the deep engineering and technology talent that a company like yahoo! has? look and they do to extract that's talent in their organizations and really use it

to their advantage? samesa: the issues the across all different industries. it is about empowering your employees and empowering teams. get notion of being able to a problem, you have a problem in your organization or problem in your product lineup, put yourself in the user state, or your customer state and say, to solvehe best way this problem? it is about how you unleash creativity, design creativity, engineering creativity, technical creativity. the question to ask each day is how can i best empower my employees to be really in creative best to be really creative in the way they look at these problems and solve them. stephanie: as look at the technology landscape, you talked about mavens, what is the next big thing, the area that you feel most excited about? it may not necessarily be in your