baltimore. it was his first as president visit to an american mosque. commission election wants more information from republican presidential candidate ted cruz on bank loans from goldman sachs and citibank for his 2012 senate campaign. in a letter to the sec, his thate campaign writes loans were inadvertently admitted from campaign documents. the health emergency for four counties zika virus. at the first congressional hearing on the border crisis, the chairman of the house oversight committee said the lead contamination was a failure at every level of government. an official with the epa said it was avoidable. day,l news 24 hours a powered by over 2400 journalists and more than 150 news bureaus around the world.

i'm mark crumpton. i'm emily chang and this is "bloomberg west." theill hear directly about future of yahoo! from marissa mayer. i asked her whether the company is really up for sale. gopro tanking again. sales forecast coming in way below estimates. can gopro get its mojo back? and a changing of the guard at cbs. sumner redstone steps down. we will discuss.

first to the lead, gopro shares plunged in extended trading. investors focused on the sales guidance coming in way below estimates. first-quarter revenue between $160 million and 180 million dollars compared to 287 minute dollars and estimates. the company is also playing the cfo with ryan mcgee from qualcomm. it slashed the price twice since its debut in july. what is next for the company to do? is bob mcdonnell. thank you for joining us. what went so wrong at gopro? >> the problem you've got is this is a company that's been trying to promote themselves originally as a media company and as a bigger vision player. people have recognized it's a hardware company that has an audience that quite radically is

somewhat limited. -- quite frankly is somewhat limited. we pretty much have what we need, and this is the reality they are starting to face. to nicket's listen woodman on the call just moments ago talking about the competition. take a listen. >> in several respects, business is good. however, our growth rate has slowed as some analysts have attributed this to competitive and the ability to address a market beyond our core customer. that is not how we see it. emily: if that's not the reason, if it's not competition, what is? i'm not sure he is acknowledging reality. there absolutely is competition. there are many other vendors who are producing these action

cameras and there is a limited number of people who want action cameras. the bigger question for me is, as they move forward into things like potential virtual reality cameras, what about moving intod just action cams virtual or digital travel, or new kinds of areas? that would be interesting, but i'm not hearing gopro talk about those as potential growth opportunities. let's bring in a guest whose company rents these cameras. what is the trend you are seeing? >> there's a segment of the audience that loves the gopro. adventurers, backpackers, hikers, people who are looking for capturing the moments that are happening as they travel. gopro has worked out great, but started out atct

$400, the same process the original gopro, but it's a smaller one, not as powerful, so it just did not resonate with the audience. it seemed more gimmicky and cheaper, but for the same price. no one really bought it. and then they slashed it to half the price, $200. we had pushed back with customers who had no reason to the second one. gopro has a really strong brand, but their latest product has not been as satisfying as the initial strong product lineup that came up with. is it too hard to use, was it because of all the competition? >> it is harder to use than the original gopro.

they were always good at the instant gratification. if you took a snowboarding video and you saw it immediately, and the second one is lacking. there are so many new products that are exactly like the gopro for half or one fourth the price. some are even better than the gopro so it's really hard for them to fend off the competition by just the marketing and branding they are doing. emily: bob, what will investors take away from this? bob: they did pick up a little bit after the after-hours drop. for theut hopefully, broader market, there were so much in easy as him about this company, and look at what is happening now. -- there were so much enthusiasm about the company. they positioned the company

as a media company. that gets different multiples and a hardware company. now people realize it is a hardware company and it will face a more challenging environment from a competitive perspective. it will be tough on investors for gopro. so you don't think any hardware company like fitbit will go company -- will go public again? bob: i don't think so. with all this with apple and smartphone. we are entering an era where we will see a lot of the categories that have been established are pretty saturated and we will see new areas like with drones and hoverboards and things like that. but none of them will reach the same kind of levels we've seen with the other product categories. there has to be a reflection of that reality. >> there were 50 plus drone

companies in just one floor of the showcase. even for the things gopro is trying to come up with, there are so many drones before the gopro throne is really jim -- releasing in march. you look at companies coming in from china, they don't have the kind of marketing are branding that gopro has. they don't spend a lot so they can focus on production and just getting it over here. it's a tough market for gopro to ,ust keep focusing on hardware to be able to sustain themselves in a public market. shares crashing right now, we will be watching how they open next week. thanks so much for joining us. some m&a in the works.

according to people familiar they saymatter, discussions taking place between advisors of lions gate s andtarz and they are moving forward. earningsny reports thursday. speaking of deals, cisco says it will acquire jasper technologies for $1.4 billion, boosting state in the glowing market -- in the growing market. acquisition,e jasper's ceo will join cisco to run a new software unit. turning to the broader markets, u.s. stocks rallying in afternoon trade thanks to gains in the energy sector. york.s the rap from new >> despite a late afternoon rally, the nasdaq cannot break into positive territory.

the s&p and the dow did make it into the green by the end of trade. that was their first day for this month. .oogle fell more than 4% chief is time search retiring, reversing gains from the day before after better-than-expected earnings. amazon is back in a bear market. they plan to spend money on bookstores, putting barnes & noble stock into a tailspin. onor pc makers also slid wednesday. a contraction of 6% year on year versus a prior contraction of 2% on chronically weak demand and a rising in inventories. apple rose in late trading, reclaiming its title as the world's biggest company with the market cap of $534 billion.

34 s&p companies report earnings thursday including netgear and linkedin. later this hour you will want to stick around for this. i conversation with yahoo! ceo marissa mayer as the company puts out the for sale sign. then we dig into changes that cbs, chairman sumner redstone is stepping down. ♪

emily: two gaming stocks both surging after the bell. a stronger forecast than analysts had projected.

investors also liking what glue had to say. the company announcing a new addition to its celebrity lineup, taylor swift. cbs chairman sumner redstone is stepping down and les moonves will take his place. he will also remain the company's president and ceo. redstone's daughter sherry was altered -- offered a nonexecutive role but she declined it. she will be vice chair. lucas, what is your read on this? lucas: a couple of things. one that this is just a vote of confidence for les moonves. he has said for some time that all things are going well at cbs when you consider the broader media environment has taken a beating where viacom has dropped

the most and there have been a lot of complaints about the leadership. to whater question is happens there. there will be a board meeting with the viacom board tomorrow to decide what happens with the chairman role. there's a lot of speculation that sumner will lead and somebody else will get amped up. emily: shareholders already coming out saying not to point moonves. what do you make of that? redstone, shery issued a statement saying she didn't think anyone who is a trustee should also be the chairman of viacom. that would disqualify both sherry and felipe. what it all comes down to tomorrow is who has the votes on the board. the board of directors will decide who is the next chairman. peoplepe has enough loyal to him, then he can stay.

it's hard to know until you know the loyalties of these different people. emily: how much actually changes? >> not much with cbs. storye of had to write a in the past few months or years about the whole succession at is inhey try to say les control, the board likes what he is doing, so leave us out of all it continue and let at five, p that seems to be what happened here. les moonves is running that company and he will as long as he wants to. his contract runs through 2019. thank you so much, lucas. ending years of speculations about what happens that cbs. we are geeking out on. by 2020, more people will own a phone than have electricity. in four years, 5.4 people have a phone globally.

by comparison, 5.3 billion people will have electricity, 3.5 billion will have running water and 2.8 oh in cars will be on the road. coming up, google says goodbye to the brain behind its iconic search engine. we take a look at his successor and the next generation of product development. take a look at this aerial view of apples future headquarters in cupertino, california. the project began in 2012 and will wrap up next year. the new facility will house 12,000 workers and cover 2.8 million square feet. ♪

emily: a stock we are watching begin trading in the first ipo

of 2016. after pricing at the low end of the first it's publicly traded company specializing in a controversy all medicine technique called crisper, which is said to have the potential to treat autoimmune disorders with a one-time treatment. longtime google -- a longtime today executive announced he's planning to retire and spend more time on philanthropic work. he introduced new features like text prediction, tweaking the algorithm to favor mobile. he knowledge those milestones in a blog post, saying who would have imagined that in a short 15 years you could tap a button, ask google anything, and get an answer. today it has become second nature to us.

my dream star trek computer is becoming a reality. >> i want to bring in jack clark who covers google for us and danny sullivan. thanks so much for being here. i love your tweet from earlier today where you said imagine him us how apple, explain to powerful his impact on the google that we all use today is. >> he has been the force that has guided google search over these 15 years. he's the person who took the original recipe that larry and sir gay cooked up when they founded google, turned it into what truth -- the recipe that cooked up.ergei i don't think people tend to think about search engines and

google the way that think about the latest and greatest smartphones coming out, but that's effectively what happens behind the scenes. the constant improvements and changes. he has been the executive at the helm of all that. google and search is what drives the companies revenue. is this a loss? >> is passing the baton to another executive that worked closely with him. they worked closely on a variety of projects to make the changes smarter and faster. it seems more like a continuation. about what does his say -- what does it say about his vision and the evolution of google after this? >> he is continuing to be very forward-looking, not taking things as an assumption that it will always be there. that machine learning is

an incredible opportunity to improve everything, including search. having someone who is at the core of that taking over the search operation at google i think speaks to that vision that this is the future and that we have the right person in charge of it. we also learned that google fiber is the most expensive of them all, $800 million they are spending on it. jack: now they are giving it away for free. targetingy are now low income housing communities. why? jack: they believe they need to stimulate entrepreneurs and give them access to the internet. it's so google can get data about how they use internet services and to give it a philanthropic loss on what is a big fiber plate. emily: i feel like google fiber

is the unsung moonshot in the google portfolio. we talked about self driving cars, robots, but how significant is google fiber, and how big could it really be? >> i don't cover the fiber space that closely, but it's less of a moonshot and more of an atmosphere shot, something that can impact a lot more people right now. we may get the auto driving cars at some point, and that is exciting, but fiber is live for many people and is growing now even more. it has the ability to push the whole internet market in the u.s. and gives google a lot of data on how people are searching and accessing the internet and what they like. is useful for refining search content as well as all sorts of other things. emily: google embracing qualcomm

chip designed for servers, which could be a blow to intel. how big a blow? >> any telegraphing of a move away from that is not breaking news for them. it's a type of chip that has lower electricity bills that google data centers. it's a big incentive to look at other options here. danny, you've covered google for so many years and the company is changing so quickly. it's now the most viable company in the world. there is new leadership and new blood. how do you see google in five years different than what we know it as today? consent --you will continue to see it is a huge search company. it will continue to have huge revenues coming in off that. perhaps the most significant

changes, you might see the consumer market start to go -- to grow. diversifiedtle more away from some of the ads that they are doing. and also very highly personal, desireg about what we before we get there. emily: danny sullivan, thank you so much for joining us today and whovery own jack lark covers google for bloomberg news. thank you as well. marissa mayer makes the case for yahoo!'s future. so far, investors are not buying it. shares falling almost 5% today. ♪

emily: i'm emily chang. this "bloomberg west." a are joined by kerry and lit look at stories making headlines in asia. ahn: good morning.

china is looking to further open up its financial sector despite stock market volatility. sources say beijing will relax the movement of money in and out country. that would apply to funds under the qualified for an institutional investor program, which has already granted around $80 billion" is for overseas investments. tesla is shifting gears, sending its new suv to china before europe. willeries of the model x begin in the second quarter, costing as much as $178,000, with a $15,000 reservation fee. they are also selling a limited edition to celebrate the lunar new year. the model will cost about $225,000. the psionkilling

brand as it enters its teen years. it was targeted create -- purely but sales have been declining for three straight years. from august, the psion models will be sold as toyotas. created in 2003 to appeal to gen x drivers who preferred nonmainstream cars. beat estimates, but quarterly revenues declined for the first time in more than six years, dropping 8% in three minutes -- three months ending december. shares are pledging 10% in the biggest decline in tears. however, the cfo says they are still on track, and they see potential for the mobile phone business. take a listen. >> we are not going to be number one, but eventually we definitely want to be number one. we are numberief, one in pc.

there is no reason why we cannot be number one. emily: what is behind the fall in revenue, and what are they doing to overcome this? faced the challenges they are nothing new. stalin demand for causing anduters, -- computers, competition. there are cutting costs, eliminating jobs as well as shifting the focus to the international markets. emily: thank you so much. global news, 24-hour four hours a day, powered by our 2400 journalists around the world. i'm emily chang. ♪ reporter: yellow ceo -- yahoo! ceo marissa mayer has been under fair for months, and speculation

has been getting letter. that did not stop her from unveiling a new turnaround plan that he says makes the company domestic and me. i spoke with her earlier and asked her to explain what she is focused on. yahoo! is pursuing three separate courses. a turnaround that she says it's her priority, a reverse spin, and exploring the strategic alternatives. mean?oes that really does that mean yahoo! is for sale? take a listen. larissa: we view all three of the areas being very complementary, this in the car business we are focused on being the best version we can be for users, advertisers, shareholders, and recognizing the value we had been the assets we build here. in terms of transactional pieces, they are aimed at separating the alibaba stake. they're definitely aimed at maximizing value. we think they can be pursued in parallel, and they are

complementary as opposed to conflicting. as you saw, we announced yesterday that our board will be engaging on strategic proposals, and exporting different strategic alternatives. we are not going to comment any further on the process. until and unless we reach an agreement. emily: your cfo said there have been office for the company. verizon has publicly expressed interest. how have they privately expressed that to you, and how have you responded? not going tore comment on that, and those communications would stay private. emily: let's talk about your vision for yahoo! as it compares to the board. of the facten made that the chairman is the person who made the statement about strategic alternatives. straight -- specifically, there must be debate among board members among the future of

yahoo!. charles schwab just left. do you feel that our board members who do not share your vision? marissa: regarding chuck, i think he was a terrific board member, and obviously a leader i really look up to and i have learned a lot from. overall on the board, managing the board, i will say yes this situation is complicated -- yahoo!'s situation is complicated. particularly the assets we have, in yahoo! japan, as well as alibaba. that said, i think that is one of the reasons we need to have a somewhat complicated solution, and somewhat complicated path forward, because we need to address how do we see the most value we can from the operating business, and how do we realized the most value we can in particular from the alibaba

stake -- and also maximizing yahoo! japan. emily: some have valued the core business at zero or less than nothing. how much do you think the core business is really worth? marissa: everyone models this differently. i would say that my goal is to just make it worth the most it can possibly be worth. that means maximizing revenue, really managing our costs well. that is something we pride ourselves on. and doing the best we can to return shareholder value. we have returned more than $9 billion of shareholder value. we really are trying to manage all those different pieces. i stay more focused on the tactics, and less on the high-level modeling in valuation. our goal is to maximize it. emily: shares are opening down

this morning. i wonder, what is the message you think investors are not getting, and what is the message you are trying to send, particularly to start board? are you prepared for a proxy fight? marissa: our message is really that we have a strong future. we think we have built a great foundation, both in our end-users and audience, in terms of engagement and products, and we feel we have a strong foundation of revenue to move forward on that can really carry us forward through the next few years. i'm very hopeful and confident in what yahoo! can achieve in terms of operating business. we feel that we have sound plans in terms of how we would approach the alibaba stake, both in terms of the reverse spin, and what we might see in terms of strategic alternatives. emily: you said many times, you want to make yahoo! the best it

can be. if you do end up selling the company, would you viewed that as a failure? when you view that as a personal failure? marissa: i would say that what is good for yahoo! is good for me, and vice versa. there is not a personal interest separated their. were. we just want to see the best possible outcomes for users, and shareholders. emily: given the scope of the cuts and cost cuts you have needed to make to attempt to get there, how are you dealing with the drop in more out, and product -- morale and productivity? marissa: i would say when i look at yahoo!, we have a lot of people here who are confident. they like our plan. we are as focused as we have ever been. a lot of people are very excited to work on these things. there is always going to be some morale in a

complicated situation like this. i really believe in the resilience of the people here at yahoo!, and i believe in their vision, because it is a shared vision we built together. emily: there are concerns that stay,erpaid executives to overpaid big media personalities in an age where companies like busty art payi -- both uzzfeed are paying their creators almost nothing. marissa: certainly a letter to media reports are inaccurate, and there are misperceptions that are not right. i won't address anyone in particular, but i will say some of that perceptions of what we paid or overpaid are just that, misconceptions, .when i look at yahoo! --t is a three lead install

stool.ea-legged each lead provides a fundamental element. search is a key part of that. it is also really lucrative overall to the business. communications drives a lot of frequency. in terms of the digital content and media, that is what differentiates us. emily: my interview with yahoo! ceo marissa mayer. bloomberg has reported tpg and other private equity firms have expressed interest in buying yahoo!. earlier i spoke with the co-ceo at the investor conference in san francisco. here is what he told me about their "interest." he said, we are rooting for them and they are an icon. if we were interested, this would be the last place i would say it, but we are a strong believer in brands. the question is, how you unlock

value. up, how virtual reality might be a game changer for understanding concussions. very important to the super bowl, coming up. ♪

emily: with the super bowl quickly approaching, the dangers of repeated head trauma are front and center. researchers just diagnosed ken stabler, a former nfl player who died in july, with chronic traumatic encephalopathy. be disease can all -- only diagnosed after death. researchers believe repeated head trauma can lead to this. new technologies being developed

to better understand medicine through virtual reality. joining me, the founding director of a company that creates vr software to manage medical data. explain to me how this could change the game when it comes to concussions and football? guest: certainly when you mentioned chronic disease, we can certainly look at the brain in a human that is living, instead of after they have passed away, which certainly helps diagnose instead of figuring it out after the fact. emily: talk to me about the technology. guest: the technology comes from very large image data. bigger andtting bigger. it is hard for researchers to understand that. humans tend to look at these 3-d images on a 2-d screen. into virtualrward reality so you can really explored the brain and the complex structure in a much better way. >emily: how is it being used no,

and who will use it in the future? guest: we have people all over the world using it in research. we are big in neuroscience. we have researchers looking at all different disease states looking at our technology. traumatic brain injury is one of the things they are using it for. emily: what are some of the obstacles? is it more expensive, harder to use? guest: it is using traditional mri technology, just showing it in a different way. as the images get bigger and bigger, it becomes more and more difficult to visualize those. it is not more expensive. we think it is an incremental cost in comparison to the current technology but it makes it a lot more, effective. certainly if it will be used in diagnosis, it will take regulatory approval. we have a lot of experience in that. that is the way forward. see thisw do you potentially being implemented when it comes to sports medicine in particular?

guest: there are certainly new technologies. is a new imaging technology that allows you to look at the brain in a living human. we can look at these proteins that are built up in this disease, very similar to alzheimer's. we can count and identify and keep track of those. if a player has dramatic rain injury -- traumatic brain injury, we can monitor that, and help doctors make a decision as to whether he can go back on the field. emily: thank you, very interesting stuff. thank you for stopping by. microsoft is pushing deeper into artificial intelligence, buying a u.k. start of. text known for powerful prediction software running on over 300 million phones. it learns your typing style, to offer suggestions while you type. swift keith may be better known for creating at surfaces this --

astrophysicist's stephen hawking tool. we caught up with them. tomedicine has not been able cure me, so i rely on technology to help me communicate and live. emily: that vital system that professor stephen hawking relies on has recently gotten an upgrade. three to foure minutes to open a word document, can now take around 10 seconds. intel has been working with stephen hawking for decades, and the latest upgrade was over two years in the making. >> be completely change the way he's interfacing with aspects of the system, to have and not rely on the mouse. whatever he happens to be doing, we would surface the most logical things he might want to do. emily: that also applies to his -to-speech program. it has doubled speech rates.

it considers what he was last writing, whether there were errors, and tries to predict which character he might choose next. to do that, the program has to learn how hawking writes and speech -- writes and speaks, by analyzing documents. >> the tests we ran shows that of a given body of text, made up of a certain number of characters, professor hawking would only have to enter around 15%-20% of those, and the rest would be inferred. emily: here's the crazy part. everything stephen hawking does on his computer is triggered by one muscle in his cheek, and infrared sensor detects when it moves up, the way our smartphones can sense when it is close to the face. versions of this technology are aiming to take a bigger range of movement into account. you financially today say yes and no by moving his eyebrows and pulling his mouth. one of the things we have been working on is using essentially, a camera system to detect these movements. now he can undo things by saying

no, rather than manipulating the whole screen to get to a backspace button. emily: intel is even trying to develop brain control interfaces, that can help people who can no longer move any muscles at all. that won't necessarily have been to stephen hawking, but with the market forecast to reach $55 billion in 2016, it represents the next leap for assistive technology. incidentally, one of their initial backers, index ventures, is also in the news. it is famous for siding skype and dropbox in the early days says it is acting -- adding $550 million. they are spending on eight biotech investment arm into a new firm. up, who is having the worst day ever? why the granite state is up for some pretty intense tv time. ♪

emily: now to the online marketplace that lets people buy and sell cars entirely on their phone. the company raised $70 million in funding six months ago, at a valuation of about $500 million. bp just added an end by three board with heavy hitters including the u.s. treasury secretary, and president obama's former deputy chief of staff, who has also consulted with uber . joining me is the ceo of beepi. so what did they bring to the table and how involved are they going to be? guest: i think it is important to highlight that in washington, the way we see it is you have the best and the brightest minds that are actually running the country. compare withu

silicon valley, the most for us it companies, is a natural transition to understand that people that are doing well in washington like these two men, can help navigate. emily: we are looking at other washington, d.c. heavyweights involved. condoleezza rice at dropbox, etc.. how much are these people figureheads, and how much are they helping? guest: they are actually very involved. inpi is involved in markets nine states. they all have their own set of regulatory rules. it has owned its unique way to interact with consumers. jim has been helpful in that regard. larry, we expect him to help one we need to go to wall street. i think they are going to be very involved. emily: jim's relationship with uber, how can that be helpful?

would you ever consider a partnership there? guest: we would consider that. the most important thing is this company has always been on the right side of the law. but always regulates the past. when we think of people like jim, we think of being protagonists and helping shape the regulation of the 21st century for used car buying and selling. er, google and apple working on self driving cars. what does that mean for your business? guest: i think it means something really cool. with our company, you buy a car online and we deliver it to your door. you have 10 days to test on it it.nlwn you told a journal you expected to raise $300 billion in a month at a $200

billion valuation. it ended up closer to 500 billion -- million dollars. what happened? china has slowed down. the most important investor we brought in the round, the largest chinese auto manufacturer, with 25% of the market share in china. nothing special. we are happy where we are. we have a lot of funding to continue expanding. it is a 20 month old company that has raised millions. we are considered the future car buying and selling. emily: i appreciate your candor. much for joining us. time now for the best day ever, or in this case, the worst day. the people of new hampshire get this price today. residents of the state are getting bombarded with more than $100 million worth of political

ads this month. to put that in perspective, they only thought only $2 million worth of that in 2012. this is as gop candidates like to differentiate themselves. the lack of an incumbent is also calling for massive media buys. that does it for this edition of "bloomberg west." tomorrow, april roundup of earnings from companies like activision and symantec. ♪

announcer: from our studios in new york city, this is "charlie rose." charlie: we begin tonight with politics. last night, the iowa caucus about the rates for republicans and democrats. senator ted cruz took first place, beating donald trump. >> tonight is a victory for the grassroots. tonight's is a victory for courageous conservatives across iowa, and all across this great nation. >>