emily: shares fall despite revenue doubling for take two. why its next big game is a long way off. ♪ emily: i am emily chang. west." "bloomberg jack dorsey buys shares of the company and tweets he is investing in "twitter's future." and, we hear about the hottest domain names you may not expect. a first for mankind.

astronauts grow food in space and what it means. all of that is on "bloomberg west." shares dropping for take two. the maker of grand theft auto misses on shares and beats on revenue. joining me is cory johnson. joining me now is the coo of superevilmegacorp. cory, what is standing out to you from these earnings? cory: we are looking at how they are setting themselves up for the sweet spot in the console business. we know the games are well loved and it goes beyond grand theft auto. what we have seen is sales are very strong.

we are going from the xbox one and playstation 4 almost doubling in one year. take two is important because they are going into a larger market. none of the release dates seem to have slipped. the games are seeming to do quite well. at this point in the game, the earnings per share is not as important as it will be next quarter. that was a game joke. emily: pun intended. eric, i want to send it out to you, the investor in activision. why is the next grand theft auto game going to take so many years to come out? eric: i think they are a good company that is focused on

mega-hits. you have long periods with no development. it can take 2-3 years to do the next grand theft auto. there are periods where revenue gets hit. you will see a significant drop and they will have to wait for the next set of games. the wwe game and nba 2k. we may see red dawn. if they do it, that will be a monster game. i think they have a great company. it is more of a long-term play in my perspective. that is why we are seeing the investor response that we saw. emily: you have ea with a new "star wars" game and a new call of duty game. you straddle these worlds.

you focus on mobile gaming and worked at ea. how well do you see take-two adjusting to the taste of gamers? you have other companies competing. kristian: the console base is growing and that is true. if you compare that to the amount of smartphones out there, the industry is in transition and that is going away from selling the game on opening weekend and having a time with no revenue. there is an ongoing revenue stream from these games. the big story is how quickly are the companies adapting to the games being a product you buy off of the shelf to being a service that you consume over time and pay for over time. it is better for gamers and

investors. there is a more predictable revenue trajectory. emily: how well are companies moderating that transition? eric: if you look at ea, they are doing well. take two does not have execution on the mobile side in any significant way and there are platforms to get gaming today. certainly, smartphones, ipads, etc. the quality of gaming in the arena is less. if you look at grand theft auto on the ipad. it is not as good. they have to get it right. they are figuring out how to leverage china and have not been

able to from a significant revenue yet. it is possible. not proven. emily: eric, cory johnson, we will be talking more. superevilmegacorp is pushing into e-sports. you have raised $26 million. you're pushing into this area of e-sports where gamers compete against each other. kristian: some of the lasting franchises and have organized themselves around communities that are competitive over time. you think of league of legends and call of duty or counterstrike. they are focused on community-based competitive play. there are 100 million players in e-sports. our game is a multiplayer battle

arena with teams of 2-3 players competing. we want to free up the core gaming and enable the billions of people with touchscreens to take part. you have to have a great game and build a community around it that plays in the backyard and at the highest competitive levels. emily: do you think a person who plays a social or mobile game on zynga is different than someone who would play great theft auto or the new "star wars?" kristian: yes. the core gaming market is people who scheduled their lives around gaming and gaming is a legitimate activity. it is a hobby of yours. playing games to kill time when

you have for three minutes is different from a gamer. they are both paid. 70% of the computer gaming industry is in core gaming and it has not taken off on touchscreen. we like the opportunity for the growth of core gaming. emily: all right. kristian, we'll be following the e-sporsts market. the model-s is one of the most connected cars and one of the most secure. two hackers say they have cracked the code and hacked a tesla. we got a first-hand look at how they did in las vegas. >> my name is mark and i am a hacker in my spare time. >> i am the founder of lookout.

i am here because we hacked a tesla to build safer cars in the future. >> elon musk is a visionary and we wanted to look at the car. is it a benchmark? are there issues? if so, what are they? i hacked the iphone, google glass. but, the tesla took a little bit of time. >> it was not just a case of hacking the car. we used a system to get information for another system. we got more information and got full control over the infotainment side of the car. >> in the case of the car, it means you can do anything on the touchscreen that i can. horn,e trunk, honk the flash the headlights, switch the car off. >> the biggest takeaway is that

cars are computers and your car has more in common with a laptop than a model-t. we have to think about cybersecurity issues just as much as traffic safety issues. >> things get hacked all the time. i am a hacker. if i am not hacking it, somebody else will. vulnerabilities will be found. you want them to be found by the good guys. this is the software update that we worked with tesla to prepare. we identified these as part of our research. >> all you have to do is click, "install now." it pushes out very quickly. >> the vast majority of teslas will already be safe. emily: up next, investors look for clues as to who will run twitter as executives buy out shares.

man mall bite for -- we will tell you why this may be key to a future on mars. ♪

emily: another big story we are watching today. twitter is rising 9.6% today after unveiling a content deal with the nfl.

ceoher reason -- interim jack dorsey promoted his of shares withth a tweet. the board members also bought shares of twitter, according to regulatory filings. is there the same confidence as the company searches for the full-time ceo? joining me here is sarah frier, david, and james, an analyst. sarah, we will start with you. you reported that dick costolo is leaving the board as soon as another ceo is announced. they are buying shares. ev williams has been selling shares. sarah: he is selling hundreds of millions of dollars worth.

jack dorsey has been selling shares. if you look at the insiders and board members, there are more sales than purchases and the purchase jack announced was the first since the ipo. it is not the first time that twitter has tried to use executive purchases for public confidence. when the restrictions were lifted on insiders after the ipo lock-up, they pledged to hold onto their shares. emily: you are reporting that when a full-time ceo is named, there will be a board shakeup and they will bring in new diverse candidates. james, why do you think by now -- twitter is that one of the lowest point since the ipo. why should we buy now? james: we have been on the sidelines. with the stock down, we think it is the time.

it boils down to a couple of things. there is some risk with the transition. ultimately, twitter has strategic value and they are synonymous with real-time content. when you think about the future , mobile and native, facebook and twitter are in the best position to capitalize. emily: we have big breaking news out of google. the person running the day-to-day operations will become ceo of google. ofry page will be ceo alphabet inc. we are still digesting this news now. i want to bring in david now. you have covered google for a

long time and we see that the cofounders of google are moving on, so to speak. we are trying to learn what off alphabet inc. means. not a surprise that he is coming on to lead all of google. what do you make of this news? david: he is a great veteran who understands the business and has been there a long time. what is alphabet inc.? i don't know. larry has rebuilt confidence in a lot of pieces of google. been a challenge the entire time he has been ceo. it has been a factor. google is a machine that will continue powering forward and i know that sergei will remain involved. you will not lose all the intellectual capital, so to speak.

emily: larry says what is alphabet -- it is a collection of companies and the new google is stripped-down. the main product is contained in alphabet. good examples are health sciencesm,, life ses onlico which focues o longevity. there is a shakeup in the operating structure, in general, at google. what is your reaction? david: it sounds like a new name for what we previously called google. aside from a massive advertising engine, a lot of interesting and not hugely profitable entities, like the cars, the glass effort.

maybe they are folding it in and showing that it does not stop their ability to be a monster search engine. presumably, shareholders of google are now shareholders of alphabet inc., i would assume. emily: he added that -- stepped up tremendously. sarah, what do you make of this news as someone who covers silicon valley and has been following google for many years? sarah: it is interesting that we are seeing one of the top people at a company that is getting elevated to a ceo position. it is something that people have said would not happen at google or facebook.

he has been recruited by twitter in the past. he used it to get more power. they are recognizing that he is at it which where he could run -- at a point where he could run the whole thing. emily: there has been criticism on how they are running the company and not spend too much time on moonshots and do not focus on the core business. google has potentially ceded territory, especially on mobile advertising, when it comes to facebook. is this a recognition that things are not going well and they need a dramatic change? >> you can speculate about a lot of things. in general, focusing too much on core business can be fatal. business changes too fast. i admire google for having ceded these other efforts which have

not had much impact on their bottom line. youtube, which they are acquired, is a huge factor in their business. they are challenged by the increasingly-powerful advertising business of facebook and the targeted ability to move to mobile. it poses a long-term challenge. i think they can build the other businesses, however. emily: it is interesting that it is after google blew out earnings and added 20% to the market cap with a historic call and a new cfo. he closed by saying that they were exciting about getting more ambitious things done, taking a long-term view, and empowering companies to flourish. investing and improving the transparency and oversight of what we are doing to make google better through greater focus. hopefully, improving the lives of as many as we can.

that sounds great but competition for google, advertising, is different than facebook. we have twitter eating away at things. there are questions as to whether the moonshots amount to anything? sarah: this is the time to make the move. you have a good quarter and you make the moves that would otherwise be seen as a sign of defeat. they are doing this while their stock has been on the increase. so, you know, this may be where they can get away with it and it shows commitment to the core business in a different way. emily: to recap, larry page became the ceo of alphabet inc., becoming the president -- a collection of companies,

including google. the day-to-day runner will become the ceo of google. david, as someone who has covered facebook for a long time, what will you be watching for in the new world of alphabet, which has been google. david: i'm trying to digest that. i am reminded that -- and somebody was interrogating me, "why does google do google maps?" most things they have been doing try to drive you back to their service to see more advertising. maps is one of those. the new stuff like the car, the life extension products, those do not do that. there may be logic to a holding company model. it is an extraordinary company and all of us would have to admit that this is the most

earthshakingly, world-changing business that we feel the influence of every day. we cannot help but watch this with fascination. emily: i love that word, "earthshaking." google changes its corporate structure to separate search, youtube, and other web companies from its research and development divisions. it will be part of a new company, alphabet inc. james, you cover google. what do you think of the news? james: it makes sense. it have been telegraphing that a bigger role at google and we have seen it relatively disadvantaged. facebook, linkedin, snapchat, and twitter are the companies optimized for mobile.

they are focused and removing moonshots is a good thing. emily: what about all the moonshots? what about all the moonshots? what standards will they be held to? james: the moonshots are fine as long as they are optimized for the future. the only asset google has to capitalize on the shift is youtube. youtube is doing fine and dandy. you have facebook breathing down your neck in a curated fashion that gets the right videos in front of the right users. that is something youtube doesn't really have. focus bring much-needed to the company that was not there before. emily: larry page writes that he believes companies get

comfortable doing the same thing and make incremental changes. he says that he can make it cleaner and more accountable. david, i will leave it to you for closing thoughts. david: referring to your earlier guess, they do not want to be seen as superevilmegacorp. this will put more of a spotlight on other activities without them being a distraction from their true, massive, profit generating machine. i always look at these people with fascination and i will continue to. i think they are amazing, brilliantly led, and they will continue to be. emily: google now goes under the name alphabet. it is a major shakeup to the corporate structure. we will have this throughout the day. thank you for joining us on "bloomberg west." we will see you later. ♪ >> from our studios in new york

city, this is charlie rose. charlie: the top 10 republican nominees faced off on fox news. all of the contenders highlighted conservative themes. donald trump declined to rule out an independent bid. it was good television and one of the most awaited political events of the year. here is a look at some of last night's most memorable moment.