says he expects more military and financial aid for the campaign. more than 20 nations are in iraq i sold -- isil and syria. a decision today came after a request from three nato members, turkey, germany, and greece, for international help targeting the smugglers. two big endorsements today in the u.s. presidential race. john kasich received the back it -- the backing of ken langone. depot founder had given his support to chris christie, who suspended yesterday. and hillary clinton was endorsed by a branch of the congressional black caucus. a southern california utility company said that it has plucked a leak from interrupting well near los angeles, which forced thousands of people from loss --

from their homes. day,l news, 24 hours a hour-by-hour 2400 journalists in more than 150 news bureaus around the world. emily: i'm emily chang and this is "bloomberg west." exploring aandora sale. we will discuss potential buyers of the radio streaming service. plus, cisco up 10%. i will speak with ceo chuck robbins about what is working for the company. and twitter's shares take another letdown. can the company pull its stock out of the gutter, despite no new users in the latest quarter? i will speak with ceo adam bain. ♪

emily: first to our lead, another day of turbulence in the market. the dow taking over 400 points, eventually settling just 250 points down. a half --e hour and final hour and a half of trading, it dropped more than 10%. our editor at large cory johnson joins us now from the newsroom with the breakdown. is this worse than the markets today? the markets -- cory: the markets are certainly ugly, but it is technology stocks that are suffering the most. nasdaq is over 15% in decline this year. look into technology, you see certain companies are suffering more than others. i think that is one of the things that was so well loved in the last year, and it is getting

no love anymore. emily: so which company would you single out? cory: we pulled together some charts of a few companies. this shows you what they are compared to the nasdaq, or compared to the s&p 500 even. some of the names that we have seen move, chief among them, one of the biggest losers of the year, pros holdings. a software services company. the decline is so much greater than what we have seen from other companies. on the s&p 500, it's now more than 11%, which hurts. tableau software, down 61% for the year. and there are companies that are still profitable, growing, adding users, big companies like linkedin, the third worst big tech company and all of the russell 3000. showing a big selloff.

look, i am always quick to at the business analysis, not stock market analysis, but i . companiesthe market would beat estimates and lower numbers a little bit, or even miss numbers and raise estimates. the market is looking at things as a glass half empty. you can see the reactions from stocks being so beloved declining. to talk aboutwant pandora. shares plunging after hours after sales were a tad weaker than analysts had expected. also, active listeners tell by more than 4000 from a year ago. perhaps the bigger news that broke just before earnings came out, the company is said to be exploring a sale. it is working with morgan stanley to reach out to potential buyers. lucas shock covers pandora and music companies in general. he joins us from l.a..

also joining us, the managing partner at uptown pitchers. lucas, i want to start with you. after 15 years of not selling, now pandora is considering a sale. what do we know? theyter: so far, just that are looking into it, and a lot of speculation about who the prospective buyers can be. we have asked pandora about this for many years. they have been a public company for a while and have not been profitable, but i think pandora is starting to feel the squeeze from a lot of competition, whether it is from apple or spotify, and though their advertising numbers get better, their user growth has plateaued , and they areyear having a look at international potential growth, but that won't affect business for at least a year or two. are the potential buyers? google, amazon? elaborate. reporter: i would say that they are all sort of strategic moves.

one would be serious xm, because they are a big satellite radio company, but they do not have the same audience in online or mobile, where pandora is strong. another might be a big tech company with a music service that already exists, but could use a list, like apple or google, and another would be spotify, which is popular with younger users, but does not have the relevance where pandora is popular. apple has been a brainerd buyer of pandora for years, and i asked pandora cofounder tim westergren about this on studio 1.0. they in particular, do ever talk about selling to apple? he could not commentate on that, but he said this. >> i look at them as a partner. it makes sense that they would have radio products that compete with us, but stepping back, they have invented this field that we benefit from. emily: mark, what do you make of this? i think there is a

changing landscape in the media sector. a lot of media owners want to move towards its description services, because you get a steady stream of revenue. i don't look at public m&a, but if you look at who is moving hard at them, apple has made a lot of moves at getting into streaming services. there may -- their music service is terrible. i think it is among the worst. emily: wow. mark: but you look at other buyers, i think amazon would be great. they want to invest more in video and music and building subscription businesses. and google. i think the subscription business model is one that is great for media. emily: what's bad about apple? mark: well, have you tried using apple music? emily: i have, but i will refrain from sharing my opinion. mark: post acquisition of deeds, they have done -- theycquisition of beats, are so desperate that i think

they are alienating a lot of who have been traditional itunes users for downloading music. emily: that said, apple and spotify have 30 million songs. andorra, this might be their biggest problem, they have one million songs. i am a huge pandora listener, and i listened to a lot of their songs over and over and over again. i still don't change the channel. what do you make of this? cory: pandora has always had this issue, but pandora has not seen their costs fall. , thereve also, however is a lot of ground with the carmakers and getting pandora installed in the dashboards. that is a strength they have. they share that with i heard adio and cleartr channel. but they are seeing a lot of growth, particularly in this quarter. -- a slowing growth, particularly in this quarter. that is hurting these guys, a good spot are at

for a profitability standpoint, but the growth is really slowing. well we are just getting a comment from pandora, saying they do not comment on rumors of potential sales, but we will continue to follow this story. that call -- that comment came from the earnings call happening right now. thank you both. mark, you are sticking with me. out, groupons beating estimates saying it has almost 49 million active customers, up from last year. the stock is up nearly 20% after hours. meantime, activision blizzard .as lower-than-expected sales shares took a dive down as much as 20% at one point in extended trade. the company has recovered some losses since then. higherbs reporting

profits and seeing revenue more than 6% in the fourth quarter. has worked hard to convince investors that they are resilient in the face of decline, but they have fallen even faster than the rest of the market. hitng up, twitter shares and other all-time low. ceo adam bain tells me how the company plans to prove the world wrong. that's next. plus, scientists unlock one of the most mysterious secrets of the universe, confirming that time can alter its speed under the force of gravity. we will explain later this hour. ♪

emily: yahoo! layoffs have begun. conference rooms across all yahoo! facilities have been reserved to let employees know they are fired. marissa mayer is cutting more than 15% of staff, more than 1500 jobs. this comes at a pivotal point in god who industry, marissa mayer facing -- in yahoo!'s history, marissa mayer facing declining sales. an shares are facing all-time low for twitter. the company lost 2 million court core users, but they say growth has bounced back in january. still, they cannot seem to shake the doubters. earlier, i sat down with adam bain and asked him for a confidence check. in thee are confident product roadmap and the trends we are seeing. the trends are already good -- the trends that are

already good signs are daily , the percentage related to monthly active users went up this past quarter. the signs are there for sure. , productno mistake execution ultimately will drive user growth. we feel like we have a great product roadmap, and we are confident on the road ahead. emily: how confident are you in jack dorsey? adam: jack talked about his ability to manage both jobs. i can only speak from my point of view. i have seen him in action, and from a product standpoint he is unbelievable with the team. he's got a vision with the company. him and histed by ability to execute at the company, and he is doing a great job. emily: you live and breathe twitter. you built the revenue engine. how do you deal with the incessant negativity that surrounds the company, and how

is it impacting morale? we know more people are looking. adam: i think the morale of the company, there is a massive determination of the company to prove the outside world wrong. we have heard this on the business side, too. we have heard, hey, how are they going to monetize? if you look at 2015, we had a strong year in terms of revenue growth, more than 60% year on year. for q4 of this past year, we announced revenue that is over 50%. there are questions about our ability to monetize, but we have proven them wrong over the last five-and-a-half years. i look at the next five and a half years is a good chance to prove them wrong again. emily: on that note, revenue growth is going down. it was 48% last quarter. revenue growth seems to be slowing dramatically. what is going to turn that around? adam: let me talk about what is

happening in the business. in our revenue stream on the advertising side, we had two categories of advertisers, big branded advertisers, which are people who run tv commercials and the like, and we have smaller performance advertisers, people looking for clicks and conversions, and mostly inside digital. business advertisers is the largest percentage of our business, and the growth t here is going to come from growth of budgets. ae performance business is smaller set of our advertiser revenue, but it is extremely fast-growing, and ultimately we have a problem -- a product driven approach ahead. emily: that is why people are concerned about direct response advertising. why are you having trouble? adam: we are not having trouble. we started with the branded

advertising first. this is the king we looked at when we first started. the big brand advertisers were already on the platform. we did not have to pied piper them to the platform. we knew that if it would make them easier to expand business on twitter, we would be successful. we saw it during the super bowl. 90% of the television advertisers were also running ads on twitter, and over 50% of that budget was actually running inside of our video platform as well. the rumorsear constantly about twitter selling. have you considered selling? have you gotten offers? from the management perspective, our goal is to increase shareholder value. we believe that the roadmap we have ahead and the team we have in place is a strong team, and we are continuing to see growth. emily: why not innovate faster or bigger? why not do away with the 140-character limit and see what happens? adam: yesterday we turned on a

feature. i courage you and the people at home -- emily: i've seen it. adam: to turn it on. it is an extension of the white -- the while you were away feature. we bring the best tweets to the top of your timeline. what's great about it is, we have content creators on the platform who are getting incredible insight. twitter is a platform that will continue to really dominate. emily: you are known for being so nice. but recently, i have been seeing more attitude from adam bain. when wendy's and burger king had a smack down on twitter, facebook said it happened on "social media," and you are not too happy with that. adam: i love twitter cannot -- i love twitter, and i want people to understand its true impact

and power on the world, and it is powerful. emily: are we going to see you being less nice? adam: i can be. emily: adam bain of twitter, thank you for joining us. maybe we will see more of last night's adam bain, the twitter coo. for more, i want to talk to mark sister. what you think about this? putting it into context, five years ago when adam joined, they had zero revenue. they are approaching almost a $300 billion run rate in revenue. that is outstanding. emily: their core users declined by 2 million. his is a social media site with declining users. mark: they obviously have a problem, and they know it, which is that they have not innovated enough on the user interface, and that is what jack is committed to. if you look at how much facebook has changed over the last three or four years, and how little twitter is -- twitter has changed, that is the real change

they need to bring. but going from zero billion -- zero dollars to a $3 billion itway is astounding, and if were anyone other than twitter, we would be talking about what a next outing success it is. the problem is, you are to the most successful company since google, and on that metric, facebook has done better. facebook,s not just though. instagram now has more users than twitter. look, i love twitter, i use it all the time. i wanted to be better. -- want it to be better. i don't want to say a death sentence, but it seems really bad. adam wouldure even not say it is good, and i'm sure they are addressing it. what twitter does is it provides a unique service in the market. when world leaders are talking about what is going on in their countries, they are talking about it on twitter. .e have are at handles

we don't do the same thing on facebook. i am not doing a comparable facebook scrape, but i think twitter is a unique asset. the biggest challenge is how to get new user growth. mom, she wouldmy not come to twitter and know what to do, and she knows what to do on facebook. emily: personally, have you seen a change in engagement? have you considered using facebook and other platforms more because of the lack of engagement? mark: i have been pretty public about this. my consumption on twitter has not come down. my production on twitter has not gone down. what has gone up is my consumption of the timeline on facebook. like many my age, i'm 47, and i got on facebook i had kids, and it was my tight network of people, so it was about a community and not broader media. or i changed that about nine 10 months ago, because i realized how much volume facebook drives, i invested much

more heavily in facebook than i ever have before. back with meuster later this hour. , donaldwe're following trump and univision have settled their lawsuit over the miss usa pageant. terms are confidential, but trump had sued for $500 million in damages for breach of contract. the billionaire sued the spanish rock castor after it not to air the pageant after his controversial remarks -- brandish broadcaster -- spanish broadcaster decided not to air it after his traversal remarks on immigration. more coming up next. ♪

scientists have recorded the sound of two black holes colliding, billions of years ago. the single -- signal was picked

up by a giant antenna located in washington state and louisiana. perhaps the biggest scientific rate through since the discovery of the hanks particle. it shows that huge bursts of energy in the universe can alter the flow of time. here we explain this extraordinary discovery in a little more detail. detected fory they the first time ever signs of gravitational waves, a byproduct of seismic events in the universe, like the collision of two lack kohl's or a major star explosion. moving at the speed of light -- a major starr explosion. this discovery comes after decades of searching, and confirms a final prediction from albert einstein's scary of general relativity, something be physicist put forward about 100 years ago. researchers say the discovery will help us to fully understand gravity, and even learn more about what happened in the big bang.

emily: if einstein were here today, i am sure he would be delighted to see science finally prove his theory right. ,fter sitting on the sidelines qualcomm is looking to make acquisitions. to raiseo looking revenues 10%. coming up, chuck robinson says there is no reason to panic about the economy. he joins us next after a sales forecast that will boost investor confidence. ♪

is "bloomberg west." to look at the stories making

headlines in asia. it is already friday there. definitely, emily. global stocks of falling into a bear market. that afternoon come back failing to erase losses. street closing lower. and of course in asia on thursday, having said that, gold had its best a day in seven years. it is close to a bowl market. rio tinto says it may cut dividends by 50%. it has abandon a pledged to boost payments with the commodity slump, cutting profits by half. it will cancel or trim dividends altogether. it is hoping it will help maintain its credit rating after it could be downgraded. looking for extra

investment. beijing promoted the hang seng alongside the saudi exchange, but no decision has been made. of theuld make it one biggest companies in the world. it has made it clear saudi oil reserves are not up for sale. 15-monthas surged to a high, fueling speculation policy makers may intervene. now getting very close to levels it was at before it announced that expansion of stimulus in october 2014. next week we get japan gdp numbers which are expected to show the economy shrank in the final quarter of last year. emily? emily: what more will or can kur oda-san do? analysts are saying they will have to do something, whether that is more rhetoric, or outright currency

intervention. that is up in the art. david bloom thinks they could be forced to cut rates further. bank of america is saying officials will try to talk down investors from pushing that exchange rate too far. the experiment is turning out to be a failure. it was meant to fight in inflation and instead the yen has surged by 8%. it is unclear what policymakers have left in their toolbox. emily: all right. thanks so much. global news 24 hours a day powered by our journalists around the world. from the bloomberg newsroom, i am emily chang. ♪ now to cisco. shares are up 10% today, extending a gain after they reported a 2% increase in

revenue. at the same time, they added $15 billion to the share by voc program and chuck robbins said cisco was able to deliver a despite a challenging environment and he does not think there is any sort of panic in regards to the sliding global stocks. he joins me in the studio. thank you for joining us. you guys are the shining light in a bloodbath today. why doubt you think there is widespread panic? first of all, we are very pleased with our team's performance. they did a fantastic job twogating a tale of quarters, finishing the third week in january. very uncertain. created a lot of uncertainty for our customers.

through 10 weeks, everything was expected. the last three weeks were uncertain. our customers paused. i think there is a fair amount of emotion in the markets. what we attempted to do was stick to the facts, talk about what it is we saw, what do we think our business is going to do and not feel any more of the motion in the market right now. emily: you said you did not know the stock was going to go up or down. it that is how uncertain it is. we were privileged to increase our dividend by 24% which is the other part of the capital allocation story we delivered on. given the uncertainty in the markets, we actually were wondering how would the markets receive this? it has been such an unknown reaction, or a dramatic reaction.

we did not know. today we are pleased. is worth half of what it was a week ago. are you sure there is not panic? when i think about how we looked at our business, let me describe the panic comment. we look at the first front, how do we execute? we are going to run our business very well regardless of the macroeconomic environment. what i meant was there was no panic in the first three weeks relative to customers. we did not see doomsday from customers. we saw a pause. the second front we are focused on, which the market may give us an opportunity, to invest into the future, into cloud, security, this next wave of digitization. so we think we are going to

execute and continue to invest. emily: does this expand your potential target list? there are unicorns out there who might not be unicorns anymore. talked about the valuations. at the time i said there had to be some sanity come back into it. we have seen some sanity, i think. as we look at our strategy and we think about what our customers are going to be doing with technology to redefine their business strategy or their model, we do believe not only will we drive our own innovation, we will think about the value of these partnerships. theave always used m&a and valuations will make that more attractive. emily: do you see more aggressive deal hunting? where could you benefit from acquisitions? chuck: as we think about m&a, i

not going you we are to go out and make an acquisition because of a valuation. we will still stick to those companies that actually fit in the strategy we want to execute. many of them are better value to now. the obvious place would be cloud. security. analytics. and the one we announced last week, jasper, which provides a tremendous platform in the cloud that enables us to really allow our customers and help them achieve the benefits of this iot wave. have: on the one hand you said not everything is moving to the cloud. yet you are betting on the cloud. how would you describe cisco's cloud ambitions with regard to amazon and google? it is important to start

with the customer and understand what they are trying to accomplish and what benefits they derive from consuming different technologies from the cloud. when we look at our portfolio, there are natural pieces are customers want to consume. of ourunced all collaboration portfolio would be available from the cloud to our customers. we have our business that grew again. it is now on a billion dollar run rate. the web is no screw double grews -- web business double digits. we will accelerate elements of our portfolio so our customers have a choice. some of them want it on premise. we will enable them to do either. emily: you're making this transition from a hardware business to a software and services business. there is concern you will be yourself off

hardware. how is that transition going? chuck: if you think about these ways in which we do business, we will execute our business well why we invest toward the future. not only enabling our customers, but you will see us invest in recurring revenue businesses. if you look at the acquisitions is a made, almost everyone software business because that is how those naturally needs to be consumed by customers. it is going to be a combination. component onrdware premise and there is a cloud component as well. collaboration is the same. it is going to be a hybrid world. tough?will it be chuck: we were asked, would it

be safe to assume you have prudent guidance? we agreed with that word. we assumed what we felt in the first three weeks might continue through the corridor. we modeled that out and extended our range more so than normal. usually we give two points. this time we gave three points. that was reflective of the uncertainty. isit gets better, that great. if it deteriorates, that is another issue. emily: in terms of an economic slowdown in places like china and india where you have big business, what trends do you see that are different than the united states? of ourthe value portfolio is diversity. across technology. down, routing was out. we had service provider strong when the global enterprise was weaker.

on a geographic basis, we saw some challenges in the u.s. at a time where china strengthened and a great performance out of india. two reasons. in india we have engaged with government leaders on a digitization strategy. john chambers is on a plane right now to lead to that charge for us. we are happy for him. also in china, what we have done, we worked through a lot of the geopolitical issues. our team has done an amazing job of traversing our business across customer segments and in the quarter, our wireless businesses were in double digits and are video business was in the 30's. they have done a good job and i think they have executed really well. emily: all right. cisco, the shining light of today's market. chuck robbins, thank you so much.

money on cap to start drying up? ♪

emily: a sharp turn in ridesharing company lyft. andreessen horowitz selling some $75 million worth of shares. that is according to people familiar with the matter. both firms continue to compete with uber for the u.s. market. it is part of a billion dollar round of funding in december where the saudi prince was also a big investor.

current funding levels are .alling from the 2014 peak venture firms had raised to $31 billion. at the close of 2015, it was $28 billion. levels continue to fall. back with me to discuss the changing environment, first of lyft, is that a bad sign? >> i don't think so. we are supposed to return money. sometimes that waits until after companies go public or are acquired. sometimes people want to buy your stock. sometimes this happens because a new investor wants to invest more money so sometimes that means they bright -- buy stock. that is ok. emily: we have been talking

about fidelity write-downs of some of these massive private companies like dropbox. of this stuff impacting your psychology as an investor? people what they expected to happen in 2016. 91% predict valuations in the private markets are going to go down. emily: they are already going down. mark: 30% said they are going to go down sharply. everyone expects valuations to come down in 2016. emily: what does that mean? let's start with why it is happening. 10 years ago they invested one dollar in a startup company and aw for every dollar, two and half times that goes into startup companies.

you know how mutual funds and hedge funds and corporate investors and everyone is investing money and as you have this huge amount of dollars that have gone into the sector, valuations go up. that is going to correct and you will have a cohort of companies that are going to struggle to raise money. it is hard to raise. laughs?ho vc said portfolio companies are cutting costs. 62% said that. what does that mean? you have raised a lot of capital and you have a strong balance sheet, you want to make sure that you survive and that you survive long enough that you can grow into an increased valuation. part of that is revenue growth and not burning as much money. an unprecedented

private market. are they also do for a write-down? mark: it is possible. it's a private company. we talked about the success of google, facebook, and those are generational companies. the generational company of the last six years is uber. that growth continue? will they have regulatory problems? so far all signs and say no. it will be continued growth. emily: would you say the same about airbnb? is a great company. they continue to grow. there are parallels with homeaway and airbnb and i think there will be some questions about the long-term limits of their growth. it is a great company.

i don't know if it is valued properly. emily: mark, thank you. we could talk about this for hours. banned ishave been getting a new shot at life and new funding. we will discuss the controversial messaging app next. tech and pro basketball collide in toronto. at 8:15 a.m. without adam silver and later qualcomm chairman paul jacobs and mark cuban. more of "bloomberg west" next. ♪

emily: remember myspace from the pre-facebook era? it seems it hasn't lost its luster. the company that owns myspace is nc.ng bought by time i

in 2011, justin timberlake and others at bought it from news corp. terms of the most recent deal were not disclosed. ago, after year school was banned from the app store for violating guidelines. fast-forward and the controversial app is back in business raising $16.4 million. the cofounders are with me now in studio. thanks for joining us. you guys have seen some insane growth. where is the apt now? >> in over 75 percent of high schools. >> that is huge. what trends are you seeing? >> tons. kids are looking for a new way to communicate. my generation grew up with facebook. they don't see the value in

something like facebook because it is for old people. emily: why make this anonymous? cyber bullying is a problem. can't of this breed hate and unhappiness? >> it definitely could. focus a ton of resources and effort toward safety and you can think of this from a high level that if you had content users were creating that was a mixture of positive and negative, if you had the capacity to squash the negativity, you would have this chunk of positivity. have beener apps controversial. secret is gone. how do you overcome some of the preconceptions about an anonymous app for teenagers? >> social networking was controversial. if you put your personal information online,

someone is going to come to your you and youre family. that was misconceived. has so muchs potential. it is up to creators like us to really shepherd all of the positive cases. emily: how do you police that content? goes through moderation. every post is seen by a human before it is life. -- live. that is why we raced all that funding, to increase our safety team. we have partnered with the company, a free support line for teenagers at risk. post a cry for help, we will connect you to a crisis counselor. 57,000 teenagers have been helped. emily: how do you see this

evolving? is this like facebook for teenagers? twitter? >> facebook for teens. for teens.ook a greatut building product. it we connect with our users on a daily basis. the truth is high schoolers are setting the trends. they are the early adopters of the things you will be using in many years, the same way college kids were the early adopters of social networking. emily: all right. we will keep rin you guys. thanks for joining us. it is time to find out who is having the best day ever. here, itmay not be would probably be albert einstein. scientists have confirmed one of his last predictions from the general theory of relativity,

completing his vision of a universe in which space and time are interwoven. that does it for this edition of "bloomberg west." keith.w don't miss that is all for now from san francisco. ♪

from our studios in new york city, this is "charlie rose." politics.e begin with donald trump and bernie sanders were the big winners of the new hampshire primary tuesday night. chris christie announced on wednesday he would suspend his cempaign after his six pla finish. carly fiorina also suspended her campaign. the battle shifts to nevada the next states to hold primaries. joining me now, maggie haberman, a political analyst for cnn.