, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. host: shares fall despite revenue doubling. why it is a long way off. ♪ emily: i am emily chang. this is bloomberg west. twitter's interim ceo jack dorsey buys shares of the company and tweets he is investing in "twitter's future." and, we hear about the hot main names you may not expect. a first for mankind. astronauts eat food grown in

space. what it means for trips to mars. all of that is on bloomberg west. take two shares dropping. the maker of grand theft auto misses on shares and beats on revenue. joining me now is the coo of superevilmegacorp. corey, i will send it to you -- what is standing out to you about take to, ea and activision? >> we are looking at how they are setting themselves up or the sweet spot in the consul business. -- console business. when the number of consuls out there ramp up. we know their games are well loved because beyond the grand theft auto franchise were other big games. but what we see from the reports is that the sales were very

strong going into this. and there in about 26 million consuls of the newest -- consoles of the newest units. we are going from the xbox one almost doubling in one year. take two is important because they are going into a larger market. none of the release date 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? 2017? guest: i think that take two is

a very good company but they are focused on these mega-hits. you have long periods with no development. it can take 2-3 years to do the next grand theft auto. that is a long time. there are periods where revenue gets hit. we are going into one right now. i think in the fourth quarter 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, and they should this year, it will be a monster game. very high quality. i think they have a great company. it is more of a long-term play in my perspective. if you're looking in terms of the short-term it will likely get hit more and 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.

christian, you advise and straddle these worlds. you focus on mobile gaming and worked at ea. how do you see the company adapting? you have other companies competing. >> it 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 overtime. it is better for gamers and

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

standpoint and a user base yet. it is possible. not proven. emily: eric, cory johnson, we will be talking more. superevilmegacorp is pushing into e-sports. best name ever. you just raised $26 billion and you are pushing into this area of gaming called e-sports. why do you think it will be a big deal? guest: some of the lasting and consolen pc have organized themselves around communities that are competitive over time. you think of league of legends and call of duty or counterstrike. these big, growing franchises are already centered around community-based competitive play. there are 100 million users. our dream of super evil mega corp. is a multiplayer battle

arena with teams of 2-3 players competing. our dream is to build a core gaming franchise and to free up the score getting from your console and tc and allow the billions 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? >> yes. the core gaming market is people who scheduled her lives around gaming and gaming is a legitimate activity. playing games to kill time when you have annexed 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 of for the growth of core gaming. host: all right. we will be following the market. >> thank you for having me. host: 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. >> 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. musk is a real visionary and we wanted to look at the car. to see how good was it and if it is really a benchmark for the industry. were there any issues and if so, what were they. the tesla took a little bit of time. >> it was not just a case of hacking the car. we use a system to get information for another system. we got more information and got a full control over the entertainment side of the car. >> in the case of the car, it means you can do anything on the touchscreen that i can. flash the headlights, switch the

car off. >> the biggest take away is that cars are computers and your car has more in common with a laptop than a model to. -- model-t. >> 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." they can push this out quickly. >> by the time we finish, the vast majority of teslas will already be safe. host: investors look for clues as to who will run twitter as executives buyout shares. we will tell you why this may be key to a future on mars. ♪ host: another big story you are

a watching today. twitter is rising 9.6 percent today after unveiling a content

deal with the nfl. jack dorsey promoted his purchase of shares with 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 us here, james, an analyst. sarah, we will start with you. you reported that someone is leaving the board as soon as another ceo is announced. they are buying shares. williams is selling. >> he is selling hundreds of millions of dollars worth. jack dorsey has been selling shares. if you look at the insiders and order 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 after the ipo, they pledged to hold onto their shares. host: 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. -- new, diverse candidates. twitter is that one of the lowest point since the ipo. why should we buy? >> we have been on the sidelines. with the stock down, we think it is the time. it has broken 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 -- host: all right. >> think about twitter and the >> we have been on the sidelines. with the stock down, we think it is the time.

it has broken 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 -- host: all right. >> think about twitter and the companies that have capitalized on that. host: james -- hang on. we have breaking news out of google. the person who has been running the day-to-day operations at google for a long time will become the ceo. larry page will go on to be the ceo of alphabet inc. we are digesting this news now. i want to bring in david now. you have covered google for a long time and we see that they cofounders of google are moving on, so to speak.

we are trying to learn what off alphabet inc. means. >> he is a great veteran who understands the business and has then hear a long time. i am -- that has been here a long time. what is alphabet inc.? i don't know. the health has been a challenge the entire time he has been ceo. it has been a factor. google is a machine that continues powering forward and i know that sergei will remain involved. you will not lose all the intellectual capital, so to speak.

larry says that alphabet is a collection of companies and the new google is stripped-down. the main product is contained in alphabet. what doing mean by foreign sales? good examples are health efforts. life sciences, calico, which focuses on longevity. shakeup in the operating structure, in general, at google. what is your reaction? >> it sounds like a new name for what we previously called google. aside from a massive advertising engine, a lot of interesting and not usually 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. shareholders of google are now

shareholders of alphabet, i would assume. host: he added that -- stepped up tremendously. what you make of this, as someone who covers silicon valley? >> 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 you said would not happen at google or facebook. -- has been recruited by twitter in the past. they used it to get more power. they are recognizing that he is at it which where he could run the whole thing. -- at a point where he could run the whole thing.

host: what do you say to the charge that they 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 rings are not going well and they need a dramatic change? >> you can speculate about a lot of things. focusing too much on core business can be fatal. business changes fast.

i admire google for having seated all these other efforts. none of them do much to the bottom line youtube, which they minus are acquired, is a huge factor in their business. they are challenged by the increasingly-powerful advertising business and the targeted ability to move to mobile. it poses a long-term challenge. i think they can build the other businesses, however. host: it is interesting that it is after google blew out earnings and added to the market cap with a historic high 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. the competition for google, in its core business which is advertising is different than facebook. you have twitter eating away at things. will the moonshots amount to anything? >> this is the time to make the move. you have a good quarter and you make the big dramatic changes that might otherwise spook investors or be seen as a sign of deceit. they are not doing this while they are being clobbered, they are doing this while they are running high and the 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. host: to recap, larry page became the ceo of alphabet inc., a collection of companies, including google.

the day-to-day runner will become the ceo of google. what will you be watching for in the new world of alphabet, which has been google. >> i'm trying to digest that. i'm reminded -- the other night i was at a dinner party and someone interrogated me with "why does google do google maps?" it does take some explaining what the ecosystem is, but most things they have been doing try to drive you back to their service to see more advertising. maps is one of those. the things 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

earthshaking lee -- earthshakingly significant business we feel the influence of everyday in our lives. we cannot help but watch this with assignation. host: i love that word, "earthshaking." as we digest this news live on the air. google changes its corporate structure to separate search, youtube, and other web companies from other divisions. divisions like google x which will be part of a new company, alphabet inc. james, you cover google. what do you think of the news? >> it makes sense. they have been telegraphing that he would be taking a bigger and bigger role at google and we have seen it relatively disadvantaged. in relative to the five horsemen as we call it. facebook, linkedin, snapchat, and twitter are the companies

optimized for mobile. they are focused and removing moonshots is a good thing. host: what about all the moonshots? what about all the moonshots? what standards will they be held to? >> it is fine. the only asset google has to capitalize on the size of 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. i think there can be a much needed focus in the company that was not there before. host: larry page writes that he believes companies get comfortable and make incremental changes.

our company is operating well today but we think we can make it cleaner and more accountable. david we will leave it to you , for closing thoughts. only 60 seconds left. >> referring to you earlier just, they do not want to be seen as superevilmegacorp. this will put a spotlight on other activities without them being a distraction from the true massive profit generation 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. host: 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." see you later.

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